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How TJ Maxx and Ross offer such deep discounts | CNN Business

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It’s a great time to be a closeout store like TJ Maxx

. Traditional brands and retailers are overstocked on clothing, home goods, electronics and other merchandise. In July, they were sitting on $713 billion in inventory, according to the latest data from the Census Bureau. That’s a prime opportunity for “off-price” retailers such as TJX\n \n – the parent of TJ Maxx, Marshalls and HomeGoods – as well as Ross\n \n , Burlington\n \n and Ollie’s Bargain Outlet\n \n .

The inventories of Nike\n \n , Gap\n \n , Kohl’s\n \n , Target\n \n and other companies have ballooned from a year ago. “We effectively have a few seasons landing in the marketplace at the same time,” Nike\n \n CEO John Donahoe said on a call with analysts last month. Factory closures last year and in 2020 delayed shipments, as did widespread container ship shortages and supply chain backlogs. Inflation also has pinched shoppers’ pockets, leading them to pass on discretionary items.

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