Preview

While off-price stores like TJ Maxx and Burlington have existed for decades, the 2008 recession—the biggest since the dot-com boom—incited retailers to turn more heavily to the off-price business model. At the time, consumers across all socioeconomic levels were stretching their wallets and seeking out off-price and other discounts to extend their purchasing power.

But a decade later, this recession-era relationship between brands and shoppers is still in place, despite the improving economy. Now brands and retailers are attempting to match consumer expectations and combat falling revenue and profit by selling more off-price products, even though they often carry lower margins.

This report details success stories and cautionary tales around off-price business, warning retailers and brands not to fall into the off-price trap. It also outlines ways to help those already entrenched in it to climb their way out. Some, like Neiman Marcus, are dialing back their off-price stores to tap into their strengths. Others, like VF Corp, are creating or enhancing avenues that will raise the value of their products and bring in full-price shoppers.

This report also includes our first Playbook, How to Navigate the Off-Price Epidemic, which features actionable directives and questions that you can take back to your business to drive positive change.

This article is exclusive to Loose Threads Members, who get access to actionable analysis, insights and private events that drive growth.