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Under Armour, Ralph Lauren and Steve Madden are walking away from TJMaxx. Here's why:

Earns TJMaxx
Posted at 12:38 PM, Nov 13, 2021
and last updated 2021-11-13 13:38:28-05

Bargain hunters, it may be harder to snag designer clothes at T.J. Maxx, Burlington, and Ross, according to an article from CNN.

Discount chains normally thrive when there is a glut of clothing in the market. The can scoop up and buy premium clothing and shoe brands' excessive inventory for cheap, and then sell it at bargain prices.

The problem right now, there's very little unsold clothing sitting around.

Supply chains are choked off, they report, and brands don't have much, if any, extra inventory to dump. And since inventories are slim and customer demand is red hot, brands don't have as great a need to discount merchandise, they can easily sell items at full price.

Under Armour (UA), Ralph Lauren (RL), Carter's (CRI) and Steven Madden (SHOO) are among the brands, they say, that have said in recent weeks they're retreating from discount chains, sometimes called "off-price stores." Levi's (LEVI) is also walking away from discount stores.

Even before the pandemic, these brands were trying to move away from off-price companies because they are the least profitable outlets for brands.

To read more about the adjustments these brands are making, click here.

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