Essay about Plan: Tjx Companies and Retail Sales

Submitted By Burstxoxo
Words: 557
Pages: 3

2.1 Key to Success The global retail landscape is changing in some dramatic ways. Retail sales are currently improving. At the same time, competitiveness of both the U.S. retail and global marketplace is escalating. Women’s clothing stores tend not to be recession-proof, with skyrocketing unemployment rate and reduced per capita disposable income, consumer sentiments has downed significantly since the recession. These factors have led to diminished demand for discretionary products, including women’s clothing. However, IBIS World anticipates revenue will grow faster over the next five years as consumer confidence returns and disposable income rises. Companies in this industry operate physical retail establishments that sell clothing and accessories. Major companies include TJX Companies (TJ Maxx, Marshalls, Home goods), Gap, and L Brands (all based in the U.S.), along with Hennes & Mauritz (Sweden), Inditex's Zara chain (Spain), and Arcadia Group's Topshop (U.K.). Revenue for the global apparel and footwear industry is expected to hit $2 trillion by 2018, with emerging markets accounting for a majority of the industry's growth, according to Euro monitor International. The U.S. clothing store industry includes about 100,000 stores with combined annual revenue of about $180 billion. Designing the retail space to accommodate the world's most discerning customers is very important. As a retailer providing luxury sales and superior service, a store is an opportunity to not only present upscale clothing lines, jewelry, or home furnishings, but to do so in a way that evokes the essence of the lifestyle your customers are either accustomed to, or aspire to. According to the Globe, "These customers aren’t necessarily merchants’ wealthiest shoppers, but rather their most valued ones: Those who, for the sake of convenience or product choice, often pay full price rather than wait for a sale. They make up just 30 per cent of consumers, but generate about 50 per cent of retail sales and 70 per cent of gross profit margins."

2.2 Industry Trends Many of the top brands are embracing the current green and organic movement with their choice of interior design color, textures, and store fixtures. Green, steel, glass and wood are found throughout today's luxury retail sales