TK Maxx. The engineered bargain.
TK Maxx does $60 billion a year, on one idea: that you're getting something for less than it's worth. A lot of it was never in another shop.
THE GIST ON TK MAXX: "Reduced to Clear"
How big is TK Maxx?
TK Maxx does $60 billion a year in sales. It's the fourth biggest retailer in the US, and it's built entirely on one idea: that you're getting something for less than it's worth. It hasn't changed how fashion is sold. It's changed what you think things are worth.
Is it all surplus?
The story is that TK Maxx buys up surplus from the big brands and sells it on the cheap. Wrong. A lot of it is surplus, but a lot is made just for TK Maxx. It was never in another shop.
That primal foraging thrill you get hunting for a bargain is a ruse. The bargain is engineered.
Why do the brands play along?
TK Maxx has taught a generation that paying full price is what people who don't know about TK Maxx do. The brands need TK Maxx to shift the surplus, and TK Maxx needs them to keep full prices high so it feels like a bargain.
Why is it growing?
In an economy that's stretching out the middle, TK Maxx is the only place left where you can get the brand without the price. The middle class get to hold on to the life they expected for the price they can afford.
The bigger the squeeze gets, the more people walk through the door. So when did you last pay full price for anything?
Is TK Maxx the thrill or the stress?
Your take. One tap, then see how everyone else voted.
Quick answers
Is TK Maxx stock all surplus?
A lot is, but a lot of it is made just for TK Maxx and was never in another shop.
Why do brands work with TK Maxx?
They need it to shift surplus, and it needs them to keep full prices high so it feels like a bargain.
Why does TK Maxx do well in a squeeze?
It's where the middle class can get the brand without the price.
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