Shopping Centers Today

APR 2015

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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made-to-order goods produced ex- pressly for the channel. The off-price sector's sheer scale means that suppli- ers, many of which had long bristled at selling to this discount channel for fear of diluting their upscale brand equity, are now expanding their partnerships with the chains. Indeed, the sector is too large to ignore. By the end of 2013, Burlington, Nor- dstrom rack, ross Stores and TJX were generating about 8 percent — nearly $28 billion — of the clothing and footwear sales in the U.S., according to Tuhy. "More branded companies want to do business with this channel," he said. "They've all been expanding their ven- dor relationships over the past few years." The channel's flexible purchasing strategy gives it a unique leg up. off- price retailers buy inventory at big discounts from manufacturer over- runs, canceled retail orders and spe- cial production runs. and whereas department stores demand volume orders, off-price chains are willing to buy in small quantities known as odd lots. "While Macy's might want 10 different styles in 20 different sizes — the full collection of a brand — T.J.Maxx is fine if all you have is black size 32 jeans," Tuhy said. The off-pricers' fast merchan- dise replenishment minimizes the risk of fashion missteps as styles change, drives more frequent visits per shopper and limits the number of profit-margin-eroding clearance markdowns, experts say. What's more, established off-price retailers are somewhat cushioned by the en- croachment of e-commerce bearing down on the rest of the retail sec- tor. "By nature, off-price retailers have high inventory turnover, a large number of SKUs and incomplete color-and-size sets. These features make it costly and time-consuming to update products on the website," according to Morningstar. "also, given average price points, we think profitability levels will keep pure-play "While Macy's might want 10 different styles in 20 different sizes, T.J.Maxx is fine if all you have is black size 32 jeans." 40 S C T / a p r i l 2 0 1 5 r e T a i l i n g T o d a y Qualified leasing calls delivered… faster than a speeding bullet! Starts With Super Prospecting LEASING LEASING (714) 309-4548 Shopping Center Management n Leasing n Redevelopment Bruce Strumpf, Inc. 2120 Drew Street, Clearwater, FL 33765 727-449-2020 • Fax 727-449-2212 email: johnstoner@brucestrumpf.com www.brucestrumpf.com Jill Strumpf, CSM President John F. Stoner, CCIM Director of Leasing MEMBER T u r n Y o u r P r o p e r t y O v e r T o T h e E x p e r t s S e r v i n g F l o r i d a f o r o v e r 3 0 y e a r s w i t h o v e r 3 . 7 m i l l i o n s q u a r e f e e t

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