TJ Maxx Is Raising Prices on Some Upscale Brands

TJ Maxx may be known for its bargain deals on designer items, but the store has been raising prices on some of those same upscale products, its CEO revealed in an earnings call with analysts Wednesday, as reported by CNN. Ernie Herrman, CEO of TJX Companies, the parent of TJ Maxx, Marshalls and HomeGoods, revealed the strategy to “surgically raise” retail prices on select items was “well underway” and “working very effectively.”

The companies are facing a number of pandemic-related challenges, including the global supply chain crisis that has resulted in significant delays getting merchandise into the country, an increase of demand and the retailers’ need to pay higher wages to its employees amid what’s been coined the national worker shortage. The company didn’t reveal which brands or types of items had their prices increased. 

“The foundation of this is what’s going on in this country, which is that wages and supply chain costs are hitting really like never before altogether,” Herrman said of raising costs. “And it is forcing retailers around us to either promote less or raise their retail. So it is just creating a window of opportunity.” Herrman added there had been “very good success” in the third quarter and no shopper pushback, despite the company’s initial concerns. 

“We were starting to [hike prices] pretty aggressively,” he said of the third quarter. “We thought there’d be a handful of items here or there that we would run into challenges with but that has not been the case.” With the supply for luxury products “a little less” at the moment, Herrman said he wasn’t concerned about providing for the holiday season. “Most of the inventory we need for the holiday season has already been delivered to us or is scheduled to arrive in stores and online in time for the holidays,” he revealed.

Holiday shoppers are being advised to begin their shopping early this year as Moody’s Analytics warns the supply chain problems show no sign of abetting. “Supply-chain headaches show no sign of subsiding just yet,” Moody’s economists wrote in a Tuesday report.