Tuesday Morning Files for Bankruptcy

ClownLoach
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Re: Tuesday Morning Files for Bankruptcy

Post by ClownLoach »

storewanderer wrote: May 6th, 2023, 11:44 am
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.
TJX at first appears to be buying overstock, but they're really sourcing from many of these brands. They will have the "last year's model" made new for them many times over, and also get a lot of licensed brand product that on the surface is a fancy name but then you realize that they don't normally make anything in the category you're looking at (like fashion brands being used on candles and furniture). But most of TJX product, especially HomeGoods, is sourced for them. HomeGoods actually starts off most seasons with a planogram in many categories; it looks like they got a collection of citrus color plates and such but then you realize that every store has the same set the same day with the same items. As it sells down it is all flexed together. In clothing it is a bit more of the overstocks and such, but TJX has evolved past being a pure closeout buyer because when there isn't any product available then there isn't anything for their stores to sell. They'll be opportunistic, if say Stein Mart had ordered eight shipping containers of towels before bankruptcy they will buy them but then cut their order of Made for TJX towels at the same time. They've become incredibly good at balancing their inventory and that's how they get customers to keep coming back every week - there's never a "bad week" or month or quarter or year... Can't say the same at Ross, etc.
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Re: Tuesday Morning Files for Bankruptcy

Post by storewanderer »

ClownLoach wrote: May 6th, 2023, 4:27 pm
TJX at first appears to be buying overstock, but they're really sourcing from many of these brands. They will have the "last year's model" made new for them many times over, and also get a lot of licensed brand product that on the surface is a fancy name but then you realize that they don't normally make anything in the category you're looking at (like fashion brands being used on candles and furniture). But most of TJX product, especially HomeGoods, is sourced for them. HomeGoods actually starts off most seasons with a planogram in many categories; it looks like they got a collection of citrus color plates and such but then you realize that every store has the same set the same day with the same items. As it sells down it is all flexed together. In clothing it is a bit more of the overstocks and such, but TJX has evolved past being a pure closeout buyer because when there isn't any product available then there isn't anything for their stores to sell. They'll be opportunistic, if say Stein Mart had ordered eight shipping containers of towels before bankruptcy they will buy them but then cut their order of Made for TJX towels at the same time. They've become incredibly good at balancing their inventory and that's how they get customers to keep coming back every week - there's never a "bad week" or month or quarter or year... Can't say the same at Ross, etc.
I am surprised so many brands are willing to keep making last year's model out in the future. I think Big 5 has this same strategy for shoes also, or used to.

TJX definitely does a great job keeping its stores well stocked week after week unlike Ross and Burlington. Stein Mart was always consistently (some sections full others never full) stocked but I think that was due to lack of customers/strange items that did not sell quickly. Stein Mart also had its own private labels at least on some men's clothes.
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Re: Tuesday Morning Files for Bankruptcy

Post by buckguy »

Essentially they've replaced the old department store bargain basement. These had their own buyers and usually sold a mix of lower priced brands, items bought for the basement often branded for the store in some way, and various close-outs, seconds, and overstocks bought from manufacturers, as well as closeouts from teh main selling floors. I always suspected that Target was developed as away to get out of the hardline and basement business for Dayton's by simply shifting the buyers to something else. A few stores like Lazarus and Hudson's tried freestanding budget stores but eventually closed tehmor converted them to B-grade full-line stores.

The off-price chains took off around the time that department stores phased out the budget/basement stores, although some stores like Marshall Field's had clearance areas (the State Street sub-basement was a real treasure hunt with sharp elbowed shoppers) long after the budget store was gone. It shouldn't be surprising that they have evolved into something more varied than they once were, and more like the traditional basement, including their own "made for" merchandise. All of them started with low rent locations--some went for slightly obscure locations---much like actual outlets of manusfacturers or direct mail retailers like Lands End, or else they went into community shopping centers that had been eclipsed by malls taking spots that once had been JC Penney dry goods stores or variety chains like Kresge's. Now they have higher rent locations and less outlet merchandise, so they have to make profits in more different ways.
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Re: Tuesday Morning Files for Bankruptcy

Post by veteran+ »

Yeah, I remember those basement scenarios very well, having lived in NYC as a kid.
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Re: Tuesday Morning Files for Bankruptcy

Post by Romr123 »

buckguy wrote: May 7th, 2023, 7:44 am Essentially they've replaced the old department store bargain basement. These had their own buyers and usually sold a mix of lower priced brands, items bought for the basement often branded for the store in some way, and various close-outs, seconds, and overstocks bought from manufacturers, as well as closeouts from teh main selling floors. I always suspected that Target was developed as away to get out of the hardline and basement business for Dayton's by simply shifting the buyers to something else. A few stores like Lazarus and Hudson's tried freestanding budget stores but eventually closed tehmor converted them to B-grade full-line stores.

The off-price chains took off around the time that department stores phased out the budget/basement stores, although some stores like Marshall Field's had clearance areas (the State Street sub-basement was a real treasure hunt with sharp elbowed shoppers) long after the budget store was gone. It shouldn't be surprising that they have evolved into something more varied than they once were, and more like the traditional basement, including their own "made for" merchandise. All of them started with low rent locations--some went for slightly obscure locations---much like actual outlets of manusfacturers or direct mail retailers like Lands End, or else they went into community shopping centers that had been eclipsed by malls taking spots that once had been JC Penney dry goods stores or variety chains like Kresge's. Now they have higher rent locations and less outlet merchandise, so they have to make profits in more different ways.
I worked at LS Ayres in Cincinnati in the mid 80s (twilight of the budget store...) and what you say's correct...at that late stage they just had apparel in the budget department. I worked in domestics (linens) which would from time to time get in "irregulars". They were typically flawed in some manner, but the sneaky thing was that the buyers would arrange for full sets of patterns; it seemed like there would be irregular flat and fitted sheets, but the pillowcases would be first quality. They asked us to clip tags as we sold towels (same thing--we'd get irregular bath towels but first quality wash/tip/hand towels (or any iteration, tbh). I still remember--good better best in solid sheets was 180 count blend Wamsutta/200 count blend/250 count all cotton, at 5.99/9.99/14.99 for twin size flats or fitteds; up 5 dollars a size as I recall. . A-category stores got deep color cotton designer (Ralph Lauren, I think) at 19.99
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Re: Tuesday Morning Files for Bankruptcy

Post by storewanderer »

Way off topic here but Macys used to brand its home department as "The Cellar" or something. Was that branding always for home? Or was it previously like a basement?
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Re: Tuesday Morning Files for Bankruptcy

Post by veteran+ »

storewanderer wrote: May 7th, 2023, 8:51 pm Way off topic here but Macys used to brand its home department as "The Cellar" or something. Was that branding always for home? Or was it previously like a basement?
As far as I remember (I was just a kid) it was in the basement in NYC (also food stuff and restaurant(s).
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Re: Tuesday Morning Files for Bankruptcy

Post by Romr123 »

Believe in the 70s Macys (which was always a relatively promotional department store) was getting out of the bargain basement business and thus had some space at the Herald Square store. The branding folks decided that they could pull together home textiles and housewares and brand them "the Cellar", along with remaking the ambiance in the area (making it more upscale). I think they left furniture etc upstairs (which probably wouldn't have worked well in the basement given the broken-up floorplans/pillars/etc). They had several divisions at the time so needed something which would work in Macy's NY/Bambergers/Macys San Francisco/Macys Midwest (Kansas City/Toledo) and Davisons (Atlanta) so the Cellar was born.
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Re: Tuesday Morning Files for Bankruptcy

Post by SamSpade »

Off Topic
storewanderer wrote: May 7th, 2023, 8:51 pm Way off topic here but Macys used to brand its home department as "The Cellar" or something. Was that branding always for home? Or was it previously like a basement?
I knew I'd read it in the NY Times obit!
There's a whole wikipedia page about the concept now.
https://en.wikipedia.org/wiki/The_Cellar_(Macy%27s)
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