TJ Maxx vs. Marshalls: A Deep Dive Comparison for Savvy Shoppers
TJ Maxx and Marshalls have become staples of the American shopping scene. As the two largest off-price retail chains in the country with over 2,200 stores combined, they are trusted destinations for brand name fashion at up to 60% less. Though sister brands under TJX Companies, each has carved out distinct strengths in merchandise that savvy shoppers should understand.
The Rise of Off-Price Retail
TJ Maxx paved the way for off-price retail when it was founded in 1977, with the first store opening in Auburn, MA. Based on a disruptive concept of selling excess designer inventory at discounted prices, the chain grew steadily in the 1980s and 1990s. Marshalls followed a similar model after its acquisition by TJX in 1995.
Thanks to the thrilling “treasure hunt” shopping experience of finding high-end brands at low prices, TJ Maxx and Marshalls continued to gain popularity. By offering department store quality at lower cost, they appealed to aspirational yet value-driven consumers.
Growth Statistics:
TJ Maxx has grown to ~1,200 stores with $41 billion in sales (2021)
Marshalls operates ~1,100 stores with $14 billion in sales (2021)
Combined they account for 4% market share of total US retail sales
From 2010 to 2021, TJ Maxx sales grew at a 6.8% CAGR and Marshalls at 4.9%
Key Executives:
Ernie Herrman – CEO of TJX since 2016, with the company since 1989
Scott Goldenberg – CFO of TJX since 2014
With a winning formula, TJX, TJ Maxx and Marshalls continue to perform well even amidst economic uncertainty, proving the resilience of off-price retail.
Differentiated Merchandise Offerings
While their pricing structure is aligned, TJ Maxx and Marshalls differentiate based on product assortment. Each chain has its merchandise strengths:
| Category | TJ Maxx | Marshalls |
|---|---|---|
| Shoes | Primarily womens‘, limited mens‘ | Broad selection including designer and mens‘ |
| Mens Apparel | Solid assortment of basics, some suits/outerwear | Large range of suits, sportswear, 1 couture |
| Accessories | Diverse jewelry, handbags, beauty | Modest accessories collection |
| Juniors | Mixed with womenswear | Trendy "Cube" boutique section |
This table summarizes the major product differences. To dive deeper:
Marshalls offers a noticeably wider array of men‘s shoes and apparel. Brands like Cole Haan, Kenneth Cole, and Calvin Klein are more readily found here.
Women‘s shoes are a strength for TJ Maxx. Marshalls shifts focus to men‘s.
For accessories like sunglasses, handbags and beauty sets, selection is far superior at TJ Maxx. Big names like Ray-Ban, Coach and Clinique commonly appear.
Marshall‘s "Cube" delivers trendy juniors clothing in a boutique setting. TJ Maxx does not differentiate juniors merchandise.
According to retail analysts, this differentiation is strategic – TJX nudges consumers to shop both chains to satisfy all their needs.
Current Initiatives and Performance
Despite tough macro conditions, TJ Maxx and Marshalls continue to implement growth initiatives:
Ecommerce sales grew rapidly since the launch of e-commerce in 2021, rising 24% YoY in the most recent quarter. However, in-store shopping still accounts for ~95% of sales.
340 new store openings are planned for 2024 including the smaller Urban Edge format.There is a long runway for growth in the US and internationally.
Sustainability efforts like eco-friendly supplies, clothing recycling and reducing landfill waste aim to appeal to eco-conscious consumers.
Omnichannel initiatives like BOPIS (Buy online, pickup in-store) are key digital investments to serve customers.
Loyalty programs and targeted mobile marketing drive engagement and retention.
The Verdict: Which is Better for Shoppers?
For discount designer goods, TJ Maxx and Marshalls both deliver. But which chain is best?
In my analysis as a retail expert, TJ Maxx takes a marginal edge for the superior accessories and brand mix catering slightly more to female shoppers. However, the lead is small. Marshalls wins for male shoppers thanks to its strength in menswear.
Ultimately, TJ Maxx and Marshalls offer comparable value. Both chains surpass alternatives like Ross and Burlington on brand availability and treasure hunt environment. To maximize deals across categories, I advise shopping at both stores and taking advantage of their differentiated product strengths. TJX has cleverly developed TJ Maxx and Marshalls to complement rather than cannibalize.
Savvy shoppers should incorporate visits to both chains into their routine to enjoy the full “thrill of the hunt” while securing designer steals across apparel, shoes, accessories and home goods.
