Location, location, location. Off-price shoppers are drawn to the off-price brand that is most convenient for their shopping journey and not the specific brand. Location and inventory rotation that introduces new products on a consistent basis will keep bringing those returning shoppers back. Keeping the inventory fresh will allow those shoppers to discover a hidden surprise that will spark their shopping adventure and keep them coming back for more surprise and delight!

The lack of off-price brand loyalty suggested by this research indicates that retailers that hitch their wagon to the off-price horse are traveling down a slippery, downhill slope. But this not to say that customer experience cannot generate loyalty. When the off-pricing is similar, the brand owes it to itself to gain traffic and conversion through consumer visit preference. In-store branding, merchandising, vitality and ambiance through modern media, such as dynamic signage, is a differentiator in the “us too” world.

First, the shoppers are loyal, as Monk said, to the PRICE. The off price. The price is first, so TJX needs to keep the prices aligned. Next, the assortment and the right number of surprise items and really great ranges of fits of grand deals need to be aligned. Last is location. People will drive further to have a great discount shopping experience.

Budget shoppers are not loyal to off-price discounters when they are not really off-price. Playing the price ticket is tricky just because the budget shoppers are by their very definition not loyal to any retailer.

Loyalty to off-price retailers is the same as loyalty to the almighty dollar. If dollars can be saved buying an item that looks the same as the big-name product, go for it. Who will know the difference except your wallet? I do not understand spending more for the same item just to buy it at a big brand store.

TJX success can be found in its merchantS and supplier relationships. It’s the treasure hunt! Shoppers are loyal to great “on-trend” finds at a great price, and TJX has the market cornered. They know their customer, and that customer has changed very little over the last couple of decades, as digital has not had the same material impact on them, as compared to other retail segments. Their customer knows that if I need a fashion item and/or home good, there’s a great find waiting for me at a TJX store. Customers will keep coming back, as long as the merchants keep working their magic.

Disclosure: I worked at TJX for quite a few years.

An off-pricer is looking for value; that’s obvious, but what isn’t being noted is if customers perceive all retailers of these goods as the same. TJX may have a higher perceived offering than Ross in the eyes of the customer, but lower than Nordstrom Rack. If these brands can better understand the consumers that shop at their stores, they can be more strategic in their offerings and highly targeted in their marketing efforts.

I just can’t lump all these brands into the same category. While Marshalls and TJX are pretty much a hodge-podge of discounted merchandise, Off 5th and Nordstrom are much more about the brands they represent. If the consumer is a fan of Saks and their very high-end merchandise, then shopping Off 5th is going to be a choice, not a convenience. Marshalls vs TJX? Which ever is closer will do.

And that’s my 2 cents.

I’m not sure how loyal people really were with department stores. The image I have is of women faithfully checking newspapers for sales, then shopping at a few favorite stores more than a specific one.

But back to the issue at hand. “Loyalty” is earned when a retailer differentiates itself; price, service and selection are some of the common differentiators and clearly, if you’re in a field that offers little/no service and concentrates on price, selection is what remains. But can this work in off-price, where the ability to sell by brand is often restricted, if not by formal restriction then by the necessity of offering whatever is available? It’s a challenge — the idea of a “curated” selection at this type of store seems almost mirthful — but what other option is there?

To earn a customer’s loyalty it is essential to consistently understand and satisfy their needs better than the competition. There is a group of shoppers who have a primary need for lower prices on products that are perceived to be of higher value. If off-price retailers are going to compete on this basis alone then it would be challenging to earn a customer’s loyalty relative to the competition, who may have a similar undifferentiated offering. The fuller-priced retailers look to differentiate through their product selection, an enhanced shopping experience and better customer service. Some of the fuller-priced retailers look to build personal relationships between store associates and individual customers with the explicit intent to earn the loyalty of those customers through relationship building. If off-priced retailers want to earn the loyalty of their customers they will need to better understand the needs of their customers and ensure they’re satisfying them beyond the simple mechanism of lower prices.