TJ Maxx is a popular store among Americans, and big brands also appreciate its appeal.

Americans are increasingly choosing to spend their money at off-price retailers, with TJ Maxx being the largest player in the industry and changing the way Americans view discount shopping.

Neil Saunders, managing director of GlobalData, stated that in the past, it was a popular destination for those with limited funds who were trying to save money. However, nowadays, it is viewed as a trendy and fashionable channel.

Over the past decade, TJX Companies, owner of Marshalls, HomeGoods, and T.J. Maxx, has nearly doubled its annual sales, reaching $54.2 billion in fiscal 2024. A significant part of this success can be attributed to changes in the way the company merchandises its stores.

Simeon Siegel, senior analyst at BMO Capital Markets, stated that their assortment has shifted from being a collection of errors to the product that people are searching for.

To benefit brands, selling to off-price stores should be done discreetly. T.J. Maxx achieves this by making designer brands unsearchable on its website. According to Siegel, selling inventory to T.J. Maxx results in less brand dilution compared to advertising clearance sales in one's own stores.

According to Siegel, if a shirt with a logo is picked up and purchased from TJX, it is not a T.J. product. It is the brand's product. This proposition is powerful because it allows for the sale of a large number of units without the typical degradation that brands experience as they scale.

Discover why both consumers and brands adore T.J. Maxx by watching the video.