![]() US market indices are shown in real time, except for the S&P 500 which is refreshed every two minutes. Your CNN account Log in to your CNN account Johns said: “What we have we just simply sell full price.” Historically, half of REI’s cycling business - bikes, helmets, apparel, parts and maintenance products for cycling, car racks - come from full-price sales. REI is seeing strong demand for outdoor goods, so there’s “very little product leftover” to sell at its outlet stores, Ben Johns, REI’s general merchandising manager for action sports, told CNN Business. Goods are scarcer at some companies’ own outlet stores, such as outdoor equipment retailer REI. TJ Maxx parent TJX’s stock is flat this year, Burlington has inched up 2%, and Ross has declined 6% Off-price chains’ stocks have trailed the S&P 500’s retail index, which has increased 18% in 2021. Top brands’ sportswear was less available than usual, he noted. Still, “quantities of seasonal goods look lower than normal” at off-price chains, particularly at Ross and Burlington, UBS retail analyst Jay Sole said in a November 8 research note. Ross Stores did not respond to requests for comment. Maxx says not to worry: Stores will be “frequently updated with new and on-trend items” and customers will be able to find a strong selection of gifts and home decor during the holiday season from its “ever-changing mix of merchandise,” a spokesperson for the company said in an email. “Our first priority is always feeding full-price channels,” CEO Edward Rosenfeld said on an earnings call this month. Steve Madden is also dialing back on unloading inventory to off-price stores because it has to allocate its limited supply of goods. ![]() In particular, Ralph Lauren has pulled back on the amount of products it makes specifically for T.J. Ralph Lauren has “significantly reduced” the amount of inventory it’s sending to discount chains, including T.J. (Photo by Joe Raedle/Getty Images) Joe Raedle/Getty ImagesĬhristmas is going to be great for stores, if their names are Walmart or Target The announcement came after the Centers for Disease Control and Prevention said that fully vaccinated people do not need to wear a mask or stay 6 feet apart from others in most cases, whether indoors or outdoors. Walmart announced that customers who are fully vaccinated against Covid-19 will not need to wear a mask in its stores, unless one is required by state or local laws. HALLANDALE BEACH, FLORIDA - MAY 18: People wearing protective masks walk from a Walmart store on in Hallandale Beach, Florida. Carter’s is also cutting back on the number of different products it sells overall, leaving less room for off-price stores to pounce. Instead of delivering to discount chains, Carter’s will rely on its own stores and website when it has excess inventory to unload – or it will hold onto products and selling them during a different season, a spokesperson said in an email. Compared with 2019, Carter’s has reduced its sales to off-price stores by nearly 50%, CEO Michael Casey said on an earnings call last month. When Under Armour does sell to discount chains, they are “going to pay a little bit more to us” because Under Armour has less product to ship, Bergman said.Ĭarter’s is shipping fewer of its baby items to TJ Maxx “Those partners would like more product.” “We have reduced the amount that we’re selling to the third-party off-price channel,” Under Armour chief financial officer David Bergman said on an earnings call this month. They’re able to pull it off right now because of the huge imbalance between supply and demand. She said discount stores could suffer in the long term if brands keep their inventories tighter.Ĭlothing and footwear brands have increased their efforts during the pandemic to pull away from discount stores. “Off-price is a last resort,” said Susan Anderson, a retail analyst at B. These brands want to sell their stuff through their stores, websites, premium wholesale partners or their factory stores, which are all more profitable. Offering too many products at a discount also dilutes brands’ image and erodes their pricing power over customers. Christopher Lee/Bloomberg/Getty ImagesĮven before the pandemic, these brands were trying to move away from off-price companies because they are the least profitable outlets for brands. Top apparel brands are moving away from discount chains such as TJ Maxx, Burlington and Ross amid supply chain pressures.
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