9 December 2013
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Britain loves labels, with shoppers flocking to stores like TK Maxx and the prestigious shopping destination Bicester Village in search of designer discounts. It’s a sector that’s boomed despite the recession.Channel 4 Dispatches airing tonight Monday 9thDecember at 8pm) reveals the secrets of the discount stores.
Our investigation found instances of:
· Despiteadvertising promising big labels and famous brands, manyitems sold in TK Maxx are actually own brand “private label” products – using a multitude of names such as like Arabella and Addison, Kenar, Amaryllis Amphora and Frederik Anderson of Copenhagen
· Price tags that a trading standards expert says breach government guidelines on Recommended Retail Prices (RRPs), discounts and savings:
- With some products having a TK Maxx RRP significantly higher than the price we could find the products on saleat elsewhere
- RRPs onsome own brand products in contravention of TK Maxx’s own policy which says that own brands should not carry RRPs
· Misleading labelling of a productas ‘Current Season’ at TK Maxx
· Previous designer products made bespoke for TK Maxx
· We hear from a former production manager who worked for the Nicole Farhi brand until 2009 when it was under different ownership than it is now , producing a bespoke Nicole Farhi line for TK Maxx. She said the garments were “cheaper level products”
TK Maxx
With advertising promising ‘Big Labels, This Season, Always up to 60% less,” TK Maxx is a retail phenomenon. Whilst others have felt the pinch, TK Maxx has grown and grown, with 260 stores in the UK and 11% growth this year.
TK Maxx says a typical store has 50,000 items in stock with 10,000 new items a week.
TK Maxx Own Brand Labels
TK Maxx advertising and in store signs promise shoppers “big labels” and “big brands”. But Channel 4 Dispatches discovered on the rails,mixed in amongst the well known labels are brands like Arabella and Addison, Kenar, Amaryllis Amphora and Frederik Anderson of Copenhagen.
Our reporter found no website for many of these brands and tracked many of them down to a Watford industrial estate which is UK HQ for TJXCompanies Incorporated– the parent company who owns TK Maxx and registers the brand names.
In total we found more than 150 brand names like Frederick Andersen of Copenhagen, Refectory, Kernar, Mark Law were registered as trademarks by TJX Inc, parent company of TK Maxx..
What this means is that some brands, despite the exotic sounding labels that are attached to it, are made for TK Maxx. They are own brand labels.
Recommended Retail Prices
Reporter Harry Wallop visited TK Maxx stores to examine their labels.
Government guidelines say “you should not use a recommended retail price if it differs significantly from the price at which the product is generally sold.” (Pricing Practices Guide, Department of Business Innovation & Skills, 1.6.1)
In other words the RRP should be the price the item is generally sold at. However, Channel 4 Dispatches found instances where this was not always the case at TK Maxx.
Examples:
· TK Maxx RRP for Rohmir Super Lilli Coat = £2,225. But Rohmir’s told us the original selling price was £800
· TK Maxx RRP for a Diesel Cardigan = £251. But Diesel told us the price was £200
· TK Maxx RRP on a French Connection sweater = £115. But TK Maxx forgot to snip off the original French connection price tag showing the original price was £85. French Connection confirmed this was the original price
Alonso Ercilla, Lead Officer for Fair Trading at Trading Standards says:“If you want to rely on RRP when showing some price discount, you need to be confident that that RRP really existed, in other words that your competitors are using that RRP and if they’re not you shouldn’t be referring to that RRP… because it is clearly misleading to refer to an RRP that nobody else is using.”
When we asked TK Maxx they told us these RRPs were established after conferring with the seller. They also said they “only cite an RRP which has been provided…independently by the third party seller” and that they carry out “random spot checks” to ensure this.
Our reporters also found own brand products being sold as if discounted.
For example a Jobis handbag is one of TJXs own brands, yet they tell customers they’re selling it below the Recommended Retail Price. It is sold for £24.99, yet there is a RRP of £68.99 on the label. We found more than 20 examples like this on the TK Maxx website.
Alonso Ercilla from Trading Standards, says: “When you have a business that’s setting their own RRP… You have to look at the law and the law says you shouldn't mislead with price and to the public, when they look at an RRP, they do not think and do not expect it to be the same business setting the RRP as the business that is selling the product, therefore I would say that by definition that's misleading.”
TK Maxx told us a very small fraction of their products are own label and it is their “policy not to put RRP on own brand products.” In the few instances where this hasn’t happened, it is “a product of human error.”
“Current Season”
TK Maxx say that the majority of their stock is ‘Current Season’.
To put this to the test in one case, our reporter bought a Nicole Fahri jacket from TK Maxx £58.
The TK Maxx label clearly says it’s from this season’s collection, and the original price was £450.
However, when the jacket was shown to the manager of Nicole Fahri’s central London flagship store she said it was just unbelievable that they would ever sell a jacket for £58 when it was originally £450 if it was this season’s. She couldn’t have been clearer. The jacket is not this season’s jacket.
Alonso Ercilla from Trading Standards, says: “If you’re claiming that your clothing is current season, it should be current season, if it’s not, you’re making a misleading or false statement, if you’re making a misleading or false statement it breaches consumer protection law, it’s really, really that simple.”
TK Maxx said this was a single instance of an error in labelling.
Big Brand “cheaper level products”
TK Maxx emphasise that they Deal Direct with Designers.
Channel 4 Dispatches spoke to a former insider at the Nicole Fahri brand who used to produce versions of the designers diffusion line for TK Maxx until she left the fashion industry in 2009. (Since the insider worked there, the Nicole Fahri brand has changed ownership.)
She revealed to Dispatches that TK Maxx would get a bespoke line to fit their price.
The former production manager speaking about her experience up to 2009 explained that at every stage of the process they tried to save money and as a result it was basically a ‘different product’:
“Well, you work back the price… So if TK Maxx want to retail something at £10, then we know we’ve got to sell it to them at say £5…. in order to make the money that we need to make…and the money that TK Maxx needs to make, and then that is like the target price, that I work with all the different factories, someone’s got to hit that price for me to be able to make that garment…
“First thing we look at is fabric- because that’s usually the biggest cost within a garment – Then you look at the way the fabric is produced, you might look at ways of dying the fabric, that might be less expensive.”
The actual shape of the garment the pattern –- you can simplify the pattern a lot – and that will lower the amount of man hours going in at the factory… Yeah, everything is looked at – the way the garment is branded example - if there’s an embroidery on it you might change that for a printed logo…to save money…you might change some beautiful real shell buttons for some imitation shell buttons or some plastic buttons… It’s a different product basically.”
Since the insider worked there, the Nicole Fahri brand has changed ownership, and the current brand owners stress they do not and never have made products for TK Maxx, indeed they say they don’t make “cheaper level products” for any company whatsoever.
TK Maxx confirmed they were supplied bespoke Nicole Farhi products until July 2010. They told us they buy “from all types of ranges of goods made available… by brands…No-one is being misled…”. They told us they deliver “high standards of value” and said “we strive to ensure that our customers are properly informed about the products they purchase from us. Further we work closely with Trading Standards to help us to do the right thing for our shoppers”.
Bicester Village
Specialising in luxury brands and with over 130 boutiques, Bicester village is a huge shopping destination. Last year its owners claimed it had the highest sales per square foot in the world.
The Bicester website tells us that “World-leading brands offer their authentic previous seasons’ collections with savings of up to 60%”
Channel 4 Dispatches did find the majority of items in Bicester to be impressive bargains on unsold previous season’s designer gear.But we learned from staff in some of the shops that they offered products specifically manufactured to be sold in outlet stores,
Posing as customers we visited over 100 of Bicester'sboutiques to ask about the ‘authentic previous season’ claim - almost half that we visited said that at least some of their stock had in fact been manufactured specially to be sold at discount outlet stores.
Value Retail PLC, the Bicester shops’ landlord, told us their marketing described “the broad offering of the village”.They said, “We are satisfied that everything sold at Bicester Village is of the highest quality and value for money. One hundred and thirty of the world's leading brands at the Village ensure they offer the customer great bargains from across their ranges and from their previous season’s collections. Inmore than ten million transactions last year only one complaint related to the quality of the product.”
Secrets of the Discount Stores – Channel 4 Dispatches, Monday 9thDecember at 8pm
FAQs
Our buyers are opportunistic and entrepreneurial. So when a designer overproduces, or other stores overbuy, we swoop in, negotiate the lowest possible price and pass the savings on.
What's the deal with TK Maxx? ›
Real value for our shoppers
TK Maxx is an off-price retailer. For us, value is a combination of brand, fashion, price, and quality. Unlike traditional retailers, we generally don't do promotions, sales or other gimmicks - just exciting merchandise at amazing prices, every single day!
What are the code labels on TK Maxx? ›
“The main three codes are 'one, two, and seven'. 'One' means produced for TK Maxx, 'two' is 'close out buy' that is unsold from another brand, and 'seven' is 'packaway' which means it's been packed for a previous year, like Christmas crackers bought in January for the following year.” he added.
Why do products end up at TJ Maxx? ›
We take advantage of a wide variety of opportunities, which can include department store cancellations, a manufacturer making up too much product, or a closeout deal when a vendor wants to clear merchandise at the end of a season, as well as lots of other ways to bring our customers tremendous value.
Why are things so much cheaper at TJ Maxx? ›
These chains have flexible buying models and are able to scoop up unwanted merchandise from suppliers at steep discounts to their initial wholesale price. Unlike brands and stores that lock in their inventory six months to a year in advance, TJX and other off-price chains buy surplus merchandise to sell it right away.
Is TK Maxx an off-price retailer? ›
TK Maxx is an off-price retailer. For us, value is a combination of brand, fashion, price and quality. Unlike traditional retailers, we generally don't do promotions, sales or other gimmicks, just exciting merchandise at amazing prices every single day.
How often do TK Maxx reduce prices? ›
While Tk Maxx is known for not putting on sales, fans of the chain will know that their "clearance" offers basically amount to the same thing. These discounts and offers run all week long, but there are two special times of year that will see prices cut to as little as 30p.
Who is the target audience of TK Maxx? ›
tkmaxx.com Audience Demographics
Audience composition can reveal a site's current market share across various audiences. tkmaxx.com's audience is 42.13% male and 57.87% female. The largest age group of visitors are 25 - 34 year olds (Desktop).
What questions do they ask in a TK Maxx interview? ›
TK Maxx Interview
- Describe a time when you have veered away from the status quo.
- Describe a time when you disagreed with how things are done.
- Tell us about some TK Maxx stores you have visited and how they are different from each other.
Channel 5) That means the item is "genuine excess stock" that was sold at a higher price somewhere else, so you've nabbed a good deal. Daniel adds: "The main three codes are one, two and seven.
A 'one' on the label means the product was “produced solely for TK Maxx”. Meanwhile, 'two' is described as “genuine unsold stock” and 'seven' means that the item “was packed away from a previous year.”
What does 01 mean on TK Maxx label? ›
The number '1' on a price tag means that the product was produced by the brand specifically for TK Maxx. Number '2' – as we mentioned – is 'close out buy', which means that it is unsold stock from the designer.
How often does TJ Maxx mark down items? ›
When you shop matters. Most T.J. Maxx Stores do markdowns on Monday mornings, making this the best time of the week to shop if you're looking for a deal. You'll want to take a look around the store for yellow tags on items, showing they're on clearance.
What does a blue tag at TJ Maxx mean? ›
“Blue price tags indicate coordinates; however, these items can be sold separately,” a representative for T.J. Maxx explained of the blue-tinged tags, which indicate that a matching piece may be available nearby.
Does TJ Maxx negotiate price? ›
4. Learn to Haggle at TJ Maxx. When shopping for home decor, furniture, luggage, and even mirrors and prints it's worth knowing that you can haggle an even lower price. Simply look for any imperfections like dents, scratches, or even damaged packaging, and politely ask an employee for a discount.
Is TJ Maxx better than TK Maxx? ›
T.J. Maxx and T.K. Maxx are the same. Their logos look the same, they share the same concept (selling deeply discounted goods from department store brands), and they're part of the same parent company, called TJX Companies.
What is the difference between TK and TJ Maxx? ›
Outside of North America, TJ Maxx is known as TK Maxx. The name was modified to avoid confusion with the British retail chain T. J. Hughes. The European headquarters are based in Watford, Hertfordshire.
What is the off-price strategy? ›
The off-price retail model relies on the purchase of over-produced, or excess, branded goods at a lower price, thus being able to sell to consumers at a discount compared to other stores which purchased an initial run.
Who is the leading off-price retailer? ›
Who is the largest off-price retailer? In the US, the highest low-price retail market share is owned by TJX Companies, accumulating approximately 70% of sales. It is followed by two other rivals, the Burlington and Ross stores. In addition, TJX owns TJ Maxx, HomeGoods, Marshalls, Sierra, Trading Post, and Homesense.
Who is the largest off-price retailer? ›
The era of personalization in retail
Together, the three leading off-price companies, TJX, Ross and Burlington, enjoy 13.9% market share in clothing and accessories and “are acquiring and retaining consumers from pre-pandemic levels,” Cowen found.
TK Maxx owner TJX last week unveiled a record annual performance as global turnover rose 7% to hit $41.7bn and profits rose by the same proportion to $3.2bn, reinforcing its position as the world's largest off-price retailer – a category it invented itself and the key to the retailer's power.
Why is TK Maxx different in America? ›
But they modified the name to TK Maxx to avoid "confusion with the established British retail chain T. J. Hughes (which is not affiliated with TJX)". T. J. Hughes is also a discount department store, selling similar goods like electrical, beauty products, toys, furniture and clothing.
What does yellow sticker TK Maxx mean? ›
But with thousands of items, from furniture and clothes to beauty products and shoes, on sale at any one time, not all of it will sell. That's when TK Maxx may reduce the price even further - and if you're lucky, it will even slash the price a second time and put a yellow sticker on the item.
Why is TK Maxx so successful? ›
World-class buying organization. Global sourcing and distribution capabilities. Integrated global business with all major divisions having well over 25 years of off-price operating expertise and knowledge in the U.S., Canada, and Europe. One of the most flexible retail business models in the world.
Why is TK Maxx so popular? ›
TK Maxx is a popular off-price department store that offers a wide range of discounted fashion and home goods products. The company is known for its unique shopping experience, where customers can find high-quality products at a fraction of their original prices.
Is TK Maxx doing well? ›
TK Maxx owner TJX Companies has recorded a recovery from the pandemic in its results for the 52 weeks up to the end of January. The company, which also owns Homesense, said that turnover rose to £3.3 billion from £2.2 billion a year earlier.
What are 3 commonly asked interview questions? ›
Common interview questions
- Tell me about yourself.
- Why are you interested in working for this company?
- Tell me about your education.
- Why have you chosen this particular field?
- Describe your best/worst boss.
- In a job, what interests you most/least?
- What is your major weakness?
When asked in an Indeed survey about the difficulty of their interview at TJ Maxx, most respondents said it was easy. Indeed's survey asked over 2,414 respondents whether they felt that their interview at TJ Maxx was a fair assessment of their skills. 88% said yes.
What are the 7 commonly asked interview questions? ›
How to master these 7 common interview questions
- Where do you see yourself in five years time? ...
- What are your strengths/weaknesses? ...
- Why should I hire you? ...
- Tell me about yourself/your work experience. ...
- Why do you want this job? ...
- What are your salary expectations? ...
- Why are you the right fit to succeed in this role?
Code 5: Shelter in Place
Unsafe situation.
In 1976, TJ Maxx was founded in Framingham, Massachusetts, United States, by Bernard Cammarata. The first international store opened in Bristol, UK, in 1994. The company modified the name to TK Maxx to avoid confusion with the established British retail chain T. J. Hughes (which is not affiliated with TJX).
How do I use my TK Maxx staff discount? ›
Use code ASSOCIATE10 which will display additional boxes to enter your associate information. Yes! They will have you create an account and will help link it to your employee number so that you get the discount.
What is the number 2 on TK Maxx? ›
Meanwhile, 'two' is described as “genuine unsold stock” and 'seven' means that the item “was packed away from a previous year.” A number two is a key number to look out – it's likely that the item retailed for a way higher price elsewhere before it hit the shelves of your local TK Maxx.
How to read a price tag on TJ Maxx? ›
Items with white, blue or purple tags can also be further discounted with red or yellow pricing stickers — red indicating “clearance” pricing and yellow indicating “final clearance” or “final markdown.” Items with yellow tags will not be discounted any further, according to T.J. Maxx.
What are the best TK Maxx numbers? ›
The three numbers you need to keep an eye out for on your favourite products are 1, 3 and 7. Alex explains if you see the number 1 printed at the top of the price label, it means the item had been produced specifically for TK Maxx.
Can you spend one for all in TK Maxx? ›
The One4all Multi-Store Gift Card can be spent in over 22,000 outlets, including TK Maxx! Give the gift of choice with a One4all Gift Card.
What does Maxx stand for? ›
Maxx is a masculine name of Latin origin. Meaning “greatest”, this moniker signifies the awe and delight you will feel when you look at your little one. Maxx's unusual spelling makes it perfect for those who want baby to grow into a unique individual who stands out from the crowd.
Does one for all cover TK Maxx? ›
One4All cards work in the same way as a pre-paid Visa or Mastercard. Enter your 16-digit card details in the Credit card payment space when checking out on tkmaxx.com.
What are those pricing strategy? ›
What are the 4 major pricing strategies? Value-based, competition-based, cost-plus, and dynamic pricing are all models that are used frequently, depending on the industry and business model in question.
What is pricing strategy target pricing? ›
Target pricing is a method that businesses use to calculate the selling price for a product based on market prices. First, a company decides on a competitive price for its product based on market research and what similar products are selling for.
Your retail price can be determined using three pricing models: cost-based pricing, competition-based pricing or customer-based pricing. Cost-based pricing sets your price based on product and operating costs. Competition-based pricing uses local competitors' prices to decide on retail charges.
How many times can you be late at TJ Maxx? ›
For tardies, T.J. Maxx employees first receive a formal counseling if they are tardy six times within a twelve-month period (Doc. 39-1, p. 12).
How many breaks do you get at TJ Maxx? ›
Yes, only one break and a 45 minute lunch is allowed.
Why do stores mark down items? ›
Markdowns are used to temporarily increase demand for low-demand products, ideally long enough to sell through all stock. Markdowns are caused by excess inventory at the end of a selling season. Further, markdowns are almost always inevitable.
What do purple tags mean at TJ Maxx? ›
Here's what the T.J. Maxx tags mean: White Tags (with no sticker on top): Regular Price. Purple Tags: High-end Items from “The Runway” Section. Yellow Tags: Final Clearance Price.
Can I return at TJ Maxx without price tag? ›
The good news is that the T.J. Maxx return policy will give you a full refund even if your item doesn't have tags. There are a few exceptions, though. Swimsuits, underwear, bras, and other intimate apparel must have the tags intact if you want to make a return.
What do yellow tags mean at Marshalls? ›
Although yellow tags mean final clearance, stores can still slap a new yellow sticker with an even lower price over an older yellow sticker. This tends to happen as the sale continues. The prices will drop even further because they want the goods sold.
Are brands in TK Maxx genuine? ›
Are the branded items in Ross and TJ Maxx authentic? They're genuine. However, don't expect to get MSRP for the items. Several vendors mark their items in such a way that they can't be returned to the original store.
What does 7 mean in TK Maxx? ›
“The main three codes are 'one, two, and seven'. 'One' means produced for TK Maxx, 'two' is 'close out buy' that is unsold from another brand, and 'seven' is 'packaway' which means it's been packed for a previous year, like Christmas crackers bought in January for the following year.” he added.
Is TK Maxx a thrift? ›
TJ Maxx is not a traditional thrift store but rather a discount retailer that offers designer brands at lower prices than department stores. The easiest way to think of TJ Maxx is simply as a clearance center for a bunch of different retailers. What is this?
Daniel said the numbers typically go from one to nine, and these are the three to spotCredit: Channel 5. 5. Former senior merchandiser Daniel Baker said you should look out for a single number on labelsCredit: Channel 5. 5. One means the item has been produced for TK MaxxCredit: Channel 5.
Why look for number 2 at TK Maxx? ›
In a clip from the show, Daniel can be seen revealing that the number code used on TK Maxx price tags tracks where the items were sourced from. He explains that items marked with a number '2' are genuine pieces of stock from the original designer or brand.
What is the difference between TJ Maxx and TK? ›
Outside of North America, TJ Maxx is known as TK Maxx. The name was modified to avoid confusion with the British retail chain T. J. Hughes. The European headquarters are based in Watford, Hertfordshire.
Why is thrifting so expensive now? ›
Thrift stores have everything donated to them. Resellers are taking the time to sift through racks of clothing to create a curated collection of items, which they then purchase. Although it may seem unethical, this is what fast fashion companies often do- purchase from manufacturers to then sell at a higher price.
Why is thrifting so cheap? ›
Clothing in thrift shops is usually from generations past, things that have withstood the test of time. Sustainable clothes tend to cost a bit more, thanks to the fair wages and sustainably-produced fabrics and textiles, and you can find them potentially much cheaper than new in a thrift store.
What questions are asked at the TK Maxx interview? ›
Interview questions at TK Maxx
Varied, about experience, personality and commitment. Tell me about yourself? Any known knowledge about Tkmaxx and it's st… asking you what hours you can do and when will you be able to start and also making you fill in a questionnaire.
How do you spot a bargain in TK Maxx? ›
Alex explains if you see the number 1 printed at the top of the price label, it means the item had been produced specifically for TK Maxx. If you see the number 2 typically on the second line from top - Alex reckoned it's genuine unsold stock from popular brands.
Why is TK Maxx called TJ? ›
In 1976, TJ Maxx was founded in Framingham, Massachusetts, United States, by Bernard Cammarata. The first international store opened in Bristol, UK, in 1994. The company modified the name to TK Maxx to avoid confusion with the established British retail chain T. J. Hughes (which is not affiliated with TJX).
