May 28, 2024
Off Price Retail Market

Off Price Retail Market Is Expected To Be Flourished By Expansion Of Off Price Retailing Stores

Off price retail stores offer a variety of clothing, footwear and accessories at 20-60% lower prices than traditional retailers. They purchase overstock inventory or cancelled orders from various brands and manufacturers to offer products of premium brands at discounted prices. Off price retailers aim to maintain an ever-changing selection of merchandise in order to create a “treasure hunt” shopping experience for customers. Large inventory and frequent changes in product assortment is a key strategy for off price retailers. The global off price retail market is dominated by prominent chains such as TJ Maxx, Ross Stores, and Burlington in the US. The global Off Price Retail Market is estimated to be valued at US$ 315.78 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The growth of the off price retail market is driven by the expansion of off price retailer store networks across major regions. For instance, TJ Maxx plans to open approximately 30 net new stores in fiscal 2023 across the US and Canada. Similarly, Burlington aims to open 40-50 stores annually through 2025. The growing focus of off price retailers on improving omni-channel capabilities to strengthen online and in-store shopping experiences is also fueling market growth. For example, Ross Stores has been expanding its e-commerce platform and expects digital sales to reach 10% of total sales by 2025. Furthermore, off price retailers’ strategy to offer trendy products at affordable prices is attracting newer customer demographics such as Generation Z and millennials, thereby propelling market expansion.

Segment Analysis

For the Off Price Retail Market, the top dominating segment is apparel. This segment accounts for over 35% of the market share due to affordable prices of clothes offered in this segment. People tend to buy clothes from off price retail stores in huge quantities which drives the segment growth.

PEST Analysis

Political: The off price retail market is not directly impacted by political factors. However, changes in import and export duties can affect the buying cost for retailers.
Economic: A slowdown in the overall economy impacts the consumer spending power which negatively influences the off price retail market growth. During recession periods, this market witnesses relatively higher demand.
Social: Changes in fashion trends and shopping preferences have increased the social acceptance of off price retail market. People from various income groups now regularly shop from these outlets.
Technological: Digital innovation helps off price retailers to better understand customer behavior. Adoption of AI and automation aids in optimizing sourcing, pricing and inventory management. Use of mobile apps and websites improves online shopping experiences.

Key Takeaways

The global Off Price Retail Market Share is expected to witness high growth over the forecast period of 2023 to 2030.

Regional analysis: North America dominates currently with over 40% market share due to widespread presence of large players like TJX Companies in the region. Retailers in the US source inventory from all over the world to offer extreme values which drives its market share.

Key players operating in the Off Price Retail Market are Amphenol Sine Systems, Easter Companies, and TJX Companies. Key players: Amphenol Sine Systems is a leading provider of interconnect solutions with strong presence across US and Europe. Easter Companies has significant market share in toy and juvenile products categories in North America. TJX Companies is the largest off-price retailer globally operating chains like TJ Maxx and Marshalls with stores across US, Europe, Canada and Australia.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it