Tj Maxx and Ross Comparison
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Tj Maxx and Ross Comparison
Tj Maxx
It is a department store chain located in the United States of America. Tj Maxx has branded itself as a unique company in the market by offering lower prices than its competitors. It has approximately 1270 stores all over the country. The retailer deals with home fashions and apparel in the United States and other parts of the world. Its headquarters are in Framingham, Massachusetts, founded by Bernard Cammarata in 1976. Zyre corporation had an idea of creating a new store line that would offer apparel and home decor; the company invited Bernard to help launch the new store. The new store was then called TJ Maxx. Between 1987 and 1989, Zyre Corporation has regrouped and relaunched itself with a new name as the TJX companies, including Marshall’s stores. Ben Cammarata was appointed as CEO but went to retire in 2015, leaving Ernie Herman as the current CEO of TJX. Also, the company has created new lines of stores that include TK Maxx, HomeSense, and HomeGoods. TJ Maxx accepts the use of credit cards, master cards, and TJX rewards credit cards for payment in its outlets. Most of its stores restock on Wednesday. Therefore, customers wishing to get the best products are encouraged to visit the stores on that day. There are luxurious products in the stores. Luxury products have a high cost, therefore, attracting few customers (Choi & Shen, 2016)
Ross
It is a discount department store in the United States of America; it operates under the brand name Ross Dress for Less. Ross is found in more than 37 states in the United States and employs more than 1400 stores. Its headquarters are in Dublin, California, founded by San Bruno in 1982. The department store has more than 88,000 employees as of 2019. in 2016, Rose had annual revenue of more than $12.8 billion.
Rose identifies itself using the trademark “dress for Less.” it is an off-price home fashion chain and apparel retailer. The retailer operates along with other competitors like Kohl’s and TJX Cos. The discount stores offer closeout merchandise that includes children, men’s, and women’s clothing. Their prices are far less than those of specialty and department stores. Apparel accounts for more than half of the total sales, but the retailer also sells bed and bath, small furnishings, toys, beauty, games, luggage, cookware and accessories, home accents, and gourmet food. Their target customers are white color shoppers aged 18-54, who are middle-income earners (Kohan, 2020). In more than 60 states, the retailer stores are found in Strip Malls, mostly in Guam and the western US. The retailer mainly targets 75 to 80% of ladies who like quality brands and can bargain. Ross offers value to customers through an extensive retail network, brand reputation and recognition, reasonable prices, and a wide variety of products. Ross has a website that acts as a source of information for customers on various products in the stores at Ross stores are usually located within the community in shopping centers where there is a high population. The company utilizes its economies of scale through advertising, field management, and distribution of other products like real estate. The company assists customers by responding to concerns, questions, and inquiries. Rose operates under close collaboration with many partners to ensure that customers are getting the best services. These partners include supplier and vendor partnerships, strategic and alliance partners, and social and community partners.
Differences
| TJ Maxx | Ross |
| Has 1,273 stores | It has 1,412 locations in 38 states. |
| The average item cost between $14 to $15 | Average item cost $10 |
| Customers can shop both in the store on foot and online. | Customers can only shop in the stores on foot. |
| Deals with fashion and apparel | Dedicates its products to fashion, homewares, and furniture |
| It operates internationally, therefore, stocking a wide variety of mix of brands. | It operates only in the United States of America. |
| It gets its products from 100 countries with over 20,000 vendors. | It sources its products from more than 6000 vendors, and it has over 800 merchants. |
| Has a glitzier store design with an impressive layout | The stores look and feel like the cheaper stores. |
| Low customer base because of relatively high prices. | Attracts more customers because of low prices |
| Uses targeted mobile ads for advertising | It relies on TV channel advertising and bloggers. |
| It has 270,000 employees. | Has 88,100 employees |
Similarities
- Both chains sell a wide variety of well-known brands at a 20-60% discount and provide customers with a chance to offer a bargain.
- Both use a structural, organizational model. In this kind of structure, the decision-making powers are vested in one or two people (Onday, 2016).
Several factors can influence customers from choosing one over the other. These factors include interior design, prices of goods, brands, and the availability of stores. Most people prefer Ross because the prices are low.
References
Choi, T. & Shen, B. (2016). Luxury Fashion Retail Management. Springer.
Kohan, S. (2020). Clash Of The Off-Price Titans: Ross And TJX Go Head To Head. https://www.forbes.com/sites/shelleykohan/2020/08/22/clash-of-the-off-price-tita ns-ross-and-tjx-go-head-to-head/?sh=788beae49d2f
Onday, O. (2016). CLASSICAL ORGANIZATION THEORY: FROM GENERIC MANAGEMENT OF SOCRATES TO BUREAUCRACY OF WEBER. International Journal of Business and Management Review Vol.4, No.1, pp.87-105. http://www.eajournals.org/wp-content/uploads/Classical-Organization-Theory.pd f.