Are Discounters Losing Their Edge to Department Stores in Off-Price Marketplace?
Tuesday, February 24th, 2009To apparel wholesalers and retailers, a recent Fortune magazine headline on the rapid spread of off-price product sourcing was not cheerful:
Discounters Lose Their Edge
Department Stores Venture Into Off-Price Territory
That warning headline by Suzanne Kapner used her surprise as a clothing bargain hunter at finding the exact same women’s jacket, at the exact same low price, in two very different clothing stores: (1) “upscale” Bloomingdale’s Department Store, and (2) deeply discounted, “off-price retailers” like Loehmann’s and T.J. Maxx.
Should smart buyers and sellers of off-price inventory be worried about this trend, which Fortune’s Kapner says is “bad news for discounters, who lure customers on their pricing edge alone?” (That’s our emphasis added.)
And, will more “upscale” department stores, now venturing into off-price product-sourcing territory, “only become a bigger headache for discounters,” as the Fortune article warned?


