Tuesday Morning Files for Bankruptcy

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Re: Tuesday Morning Files for Bankruptcy

Post by storewanderer »

For years in Reno they ran in a not well occupied shopping center with a space that only operated some days of the week and wasn't really finished much (something else had been in the space prior). Then they moved to Sparks to a new shopping center but again a poor space and that space they did not finish- just threw in some aisles and makeshift checkout counters and did their thing. Then in Reno they moved into a former Ben Franklin Crafts- there they did rearrange the shelves and put in a new checkout counter, but kept the old flooring, old lighting, some of the old signs, and did not paint the walls. These three stores were rather interesting what they received but as time went on it seemed less and less interesting.

Then they decided to move into a former Office Max (which was a former Pak N Save and former Phar Mor). They basically gutted Office Max, put in a cement floor, tried to put some "decor" into the store, and I don't know why but the vibe in the store is just very weird. The color of the walls is ugly, the cement floor is ugly, the store has an odd empty/depressing feel to it. I think they have some energy efficient lights that may not help. The store kind of gives me the creeps, and it never had that effect in its previous tenants at all (Office Max wasn't a bad looking store and was in great condition for being a 1995 or so store that was never remodeled when it finally closed around 2017).
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Re: Tuesday Morning Files for Bankruptcy

Post by norcalriteaidclerk »

For your life,Thrifty and Payless have got it.
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Re: Tuesday Morning Files for Bankruptcy

Post by storewanderer »

Not too surprised.

This chain changed over the years and not for the better.
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Re: Tuesday Morning Files for Bankruptcy

Post by mbz321 »

And....they are all closing now.
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Re: Tuesday Morning Files for Bankruptcy

Post by architect »

I'm in the DFW market and have witnessed the chain's decline first hand. Up until the last few years, Tuesday Morning sourced the bulk of their inventory from actual closeout merchandise from other retailers, and much of it was very good quality. Each location had its own feel and the merchandise often varied between stores, giving the chain a scrappy local feel which added to the anticipation of the hunt. Then, several years ago, the chain did a major rebranding in an attempt to imitate Homegoods/Target, and in the process introduced more trendy-looking but generic products that were made specifically for the chain and were of a quality which would have been home in a dollar store. Additionally, they shifted much of their store base to larger and more visible locations which added to their overhead costs while also alienating longtime customers used to the smaller, neighborhood feel of the stores.

For years, their biggest store has been on Inwood in North Dallas and is carved out of excess distribution space. This store has been a well known and well regarded home decor destination for years in the area. However, since their chainwide remerchandising effort, they struggled to keep the store full, and many product categories became quite sparse (luggage, children's, along with several others). Since that point, the store has clearly been a dead store walking, and has been rumored to close for some time.
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Re: Tuesday Morning Files for Bankruptcy

Post by rwsandiego »

architect wrote: May 5th, 2023, 4:34 pm I'm in the DFW market and have witnessed the chain's decline first hand. Up until the last few years, Tuesday Morning sourced the bulk of their inventory from actual closeout merchandise from other retailers, and much of it was very good quality. Each location had its own feel and the merchandise often varied between stores, giving the chain a scrappy local feel which added to the anticipation of the hunt. Then, several years ago, the chain did a major rebranding in an attempt to imitate Homegoods/Target, and in the process introduced more trendy-looking but generic products that were made specifically for the chain and were of a quality which would have been home in a dollar store. Additionally, they shifted much of their store base to larger and more visible locations which added to their overhead costs while also alienating longtime customers used to the smaller, neighborhood feel of the stores....
I can't agree with you more. When I lived in Chicago, Tuesday Morning stores were always in out-of-the-way locations but had fantastic merchandise. I bought Ralph Lauren sheets for dirt cheap, nice towels that lasted forever, and Calphalon cookware for next to nothing when it was still a premium brand. Same thing in San Diego. It had been years since I shopped at a Tuesday Morning, but upon moving to Phoenix I needed a few things for my corporate apartment and was happy to see a Tuesday Morning. Like you said, it was a bunch of cheaply made junk. Never shopped there again. Apparently, I was not the only one.
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Re: Tuesday Morning Files for Bankruptcy

Post by ClownLoach »

There's a lesson to be learned here. We are seeing a extinction of closeout merchants. Before the days of computerized inventory management systems, ordering prediction algorithms, etc. Stores would just plain order too much stuff. There would be tons of product available for chains like Ross, Tuesday Morning, MacFrugals, Big Lots, TJX and their brands etc. Plus there were giant packed outlet malls like the various Premium Outlets, Mills, and others.

Now far less gross overstock of product exists. A "glut" today is nothing like a decade or two ago. The last major recession really forced the issue and taught most retailers that computers can and will do a better job forecasting and ordering for the entire organization than people can, at least with "everyday items." Now chains overall are much better at managing their ownership than ten or twenty years ago. As such these closeout businesses are having to pivot to either sourcing their own goods or going out of business. The outlets are mostly made for outlet goods. And where there are winners, like TJX which is really about 75% very well sourced product and 25% overstock/closeout buys, there are losers like Big Lots and Tuesday Morning and Nordstrom Rack.

I don't think there is a very bright future for any of these chains that are entirely dependent on true overstock or closeouts. There are going to be a few survivors, like the highly aggressive Ollie's, but the pivots of Tuesday Morning and Big Lots clearly are failing. I do wonder when Ollie's will attempt to land on the West Coast, I know it's pretty junky but there is still a place here for a true closeout store like the old Pic N Save. Big Lots ain't it. Plus, you've got to smile at a store that can post a giant sign on the wall saying "you think this is a mess? You should have seen it yesterday!"
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Re: Tuesday Morning Files for Bankruptcy

Post by rwsandiego »

ClownLoach wrote: May 5th, 2023, 11:21 pm There's a lesson to be learned here. We are seeing a extinction of closeout merchants. Before the days of computerized inventory management systems, ordering prediction algorithms, etc. Stores would just plain order too much stuff. There would be tons of product available for chains like Ross, Tuesday Morning, MacFrugals, Big Lots, TJX and their brands etc. Plus there were giant packed outlet malls like the various Premium Outlets, Mills, and others.

...[T]he pivots of Tuesday Morning and Big Lots clearly are failing. I do wonder when Ollie's will attempt to land on the West Coast, I know it's pretty junky but there is still a place here for a true closeout store like the old Pic N Save. Big Lots ain't it. Plus, you've got to smile at a store that can post a giant sign on the wall saying "you think this is a mess? You should have seen it yesterday!"
@ClownLoach, this comment should be awarded "Spot-On Comment of the Year." (and it's only May!) The closeout nature of yesteryear's Tuesday Morning, Pic 'c' Save, Big Lots, et al is what made them fun to shop and led to their stores being busy. Sure, they had some staple items (plastic bags, cleaning supplies, etc) but there was always the chance of a "find" lurking in the aisles that made shopping there an adventure.

To an extent, this is still the case with Marshalls, TJMaxx, and Home Goods when it comes to furniture, lamps, and some household stuff. They will have the odd name-brand furniture that was over-produced or discontinued. They will also have discontinued kitchen gadgets. Currently, Marshalls is selling a discontinued version of OXO's POP containers, and you can still find random Calvin Klein sheets and pillowcases.
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Re: Tuesday Morning Files for Bankruptcy

Post by buckguy »

The decline of overstock merchandise has been going on for a long time and the decline in availble merchandise was getting media attention before COVID. Outlet malls have been filled with increasing amounts of made for outlet merchandise since the 90s. The 2008 death of Value City, which was owned by a liquidator and had pioneered this sector as a chain business probably should have been seen as a beginning of the end. Filene's Bsement closed a few years later and more recently Stein Mart which kept changing its model, closed too. Stores like Big Lots moved toward fewer closeouts and more in the way of obscurely sourced cheap, poor quality items quite awhile ago and Nordstrom Rack went in the same direction at the upper end.
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Re: Tuesday Morning Files for Bankruptcy

Post by storewanderer »

buckguy wrote: May 6th, 2023, 9:53 am The decline of overstock merchandise has been going on for a long time and the decline in availble merchandise was getting media attention before COVID. Outlet malls have been filled with increasing amounts of made for outlet merchandise since the 90s. The 2008 death of Value City, which was owned by a liquidator and had pioneered this sector as a chain business probably should have been seen as a beginning of the end. Filene's Bsement closed a few years later and more recently Stein Mart which kept changing its model, closed too. Stores like Big Lots moved toward fewer closeouts and more in the way of obscurely sourced cheap, poor quality items quite awhile ago and Nordstrom Rack went in the same direction at the upper end.
I think more successful off price retailers like TJX are gobbling up all of the inventory that used to be spread among a lot more parties.

The inventory is still out there or I should say, has still been out there, the past couple years. While a few years ago it looked like supply shortages would kill this segment's ability to get merchandise, they got a bit of a saving grace. With the issues out at the ports and the delays in shipments, there has been a ton of stuff (delayed freight, canceled orders, orders from retailers who failed to pay so the stuff goes to off price instead, etc.) in the logistics cycle for off price retailers to pick up. The problem is some of these smaller off price retailers have poor financial situations or have not been operated properly. The product has still been out there the past couple years, it is just going to different places.

The stuff at Nordstrom Rack is mid tier at best and at worst it is close to Ross level (varies by location). It is hardly upper end.

Tuesday Morning had a mix problem, a price problem, and they were not operating with consistent hours anymore due to supposed staff shortages in my area. This was a weak link in off price and I am not surprised it closed. I did find some things there over the years I was very happy with but there are a lot of other places I can go dig around for similar surprises. Nothing about the store environment, its service, or its programs made me want to shop there repeatedly or frequently.

I'm still waiting for Grocery Outlet to figure out how to properly do off price retailing of general merchandise. They have a couple aisles but their mix and pricing is very ineffective. On grocery they get it so well, I have to think eventually they'll figure things out on general merchandise.
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