Some of the companies have best policies to attract the customers even in economic crisis. But are they really success in doing so. Cutting the prices may be the solutions for a middle class customer to buy goods. This study is going to explain briefly about a retail market that always promises to its customers of giving 60% discount in price. That is T. K. Maxx. Most of the data to complete this study is based on data collected from the official website of T.K. Maxx itself and other website and statistical data. To critically analyze the companies trends, various techniques has been used. For this study 3 techniques PESTEL analysis, Porters Five Force Model and Industry Life Cycle has been used. Introduction
In UK the first T.K. Maxx was opened in 1994 in Bristol. Till the year 2006 T.K. Maxx open its 210 stores in All over the UK in present time there are over 238 stores in UK including Ireland and some stores are Germany. T.J. Maxx is the parent company of T.K. Maxx that is located in United State. If we study the history of T.K. Maxx the we need to start from 1919 when the New England Trading Company was founded by the brothers Max and Morris Feldberg in Boston, Massachusetts. After 10 years, Feldberg opened its first retail store and started to sell ladies hosiery. In the mid 1950, Stanley and Sumner who was the next generation of Feldberg established a new company called Zayre discount department. This Zayre stores was providing convenience selection of the family product with outstanding price. In 1970, Ben Cammarata a talented young merchant built a off-price chain which was working in his leadership. And this is how the T.J. Maxx Company was born. And with success of T.J. Maxx, the company got growth and named TJX Companies Inc. TJX Companies Inc. is one leading off-price retailer in the United State and worldwide. That offers to its customer new fashion, quality with brand name at excellent values to the reach of its customers.
In all over the UK, T.K. Maxx is only one off-price retailer. This off-price retailer concept is from America and came to UK in 1994. (T, K. Maxx website http://www.tkmaxx.com/icat/whatstkmaxx ). What does it mean by off-price retailer? That means a store that is providing merchandise at the price less than other retailer. How off-price retailer performs their task and gain profit is discussed in later topics. T.K. Maxx, according to TNS Fashion Tracker is the 10th largest retailer in fashion industry in the UK. It means that market position of the T.K. Maxx really excellent. In fashion the policy of T.K. Maxx is very different than other fashion retailer. T.K. Maxx buyers do bargaining every week of the year while other fashion retailer buy 4 times in a year. For the lay customer it does not matter how the retailer is working if it dose fulfill the demand of customers. According to the official website of T.K. Maxx, the buyer of this company have 10,000 vender to negotiate the deal in over 60 countries they do this deal on daily basis, and it is unpredictable for the customer what he can get in the store in his next visit. And that makes T.K. Maxx a favorite selection of customers. TK Maxx is the fourth favorite retailer in clothing and shoes in the UK for 2009. (Verdict Retail Group Report). In a typical store of TK Maxx, there are 50,000 items available and every week store receives 10,000 items. T.K Maxx core target customer is middle to upper middle income shopper PESTLE Analysis
PESTLE analysis stands for Political, Economical, Technological, Legal and Environmental these are the factors that can affect the industry as a whole. Or in other words PESTLE analysis is the tool that is used to understand the situation of the industry. http://www.marketingminefield.co.uk/marketing-plan/pestle-analysis.html We are going to understand the company situations of T...
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