In the second half of the retail sector, discount retail rose

Juniu Technology

2024-07-02 20:27

In the past two years, many people have lamented that business is difficult to do, and they also take Walmart hypermarkets as an example, Walmart closed 21 stores in 2022, 26 stores in 2023, and 12 stores in the first half of this year. In other words, in two and a half years, Wal-Mart closed 60 stores.

But on the contrary, Sam's Club has opened one fire after another, and it is not at all difficult to do business. In 2023, Sam's revenue will exceed 80 billion, and not long ago, Sam's opened another new store in Nanjing, and it is said that it will open 6 more new stores this year, showing a thriving trend.

Sam and Wal-Mart's "one advance and one retreat" is actually not an isolated case, if you look at the United States on the other side of the ocean, you will find a similar situation. Macy's, the largest department store in the United States, proposed to "close 150 stores in the next three years", as well as "99 cent stores", and recently announced the closure of 371 chain stores......

However, in such an environment, TJX, the largest clothing and home furnishing discount retailer in the United States, is growing against the trend. In Q1 this year, TJX sales reached $12.48 billion, a year-on-year increase of 6%. Its market capitalization has also risen, approaching $125 billion, equivalent to 1.8 Target, 24 Macy's, and 48 Cole's.

From Sam's Mart to TJX, these two well-to-do retail companies have one thing in common, both of which belong to discount retail. Sam's food and TJX's clothes are of good quality, but the prices are relatively affordable, giving consumers a feeling of good quality and low price.

TJX, for example, has very few promotions in its stores, instead "selling exciting items at amazing prices every day." Compared with traditional hypermarkets, the price of TJX can be 2 to 6 percent cheaper. Among them, although a small number of products are out-of-season or classic styles, most of them are seasonal styles.

In the consumer industry, "better things are more expensive" is a long-ingrained perception of many consumers. But nowadays, this perception has gradually been broken by discount retail, and you can really buy big brands for a small amount of money. Regarding this, Sam and TJX may not be familiar to everyone, but the domestic discount e-commerce platform Vipshop is estimated to have been used by many people.

The same Armani T-shirt is sold for four or five hundred in other places, and Vipshop sometimes discounts only more than 200 yuan, and the original price of more than 1,000 Coach bags is less than 500 yuan after the discount of Vipshop, which is not a small discount.

Objectively speaking, Vipshop is relatively niche compared with Tmall and JD.com, and TJX's revenue and market value are 2 times and 17 times that of Vipshop, respectively. However, it is such a niche e-commerce platform, but it has developed steadily with its cost performance, and its performance is not as ups and downs as other e-commerce platforms. In 2023, Vipshop's GMV will exceed 200 billion yuan for the first time, a year-on-year increase of 18.7%, of which wearable products such as clothes and shoes will increase by 24%.

In fact, from Sam's to TJX, these companies have grasped a key point: cost performance. Although they emphasize low prices, they are by no means absolutely cheap like 9.9 free shipping, but are deeply discounted on the basis of ensuring the quality of the brand. This is in line with the general trend of consumption upgrading, and also caters to people's rational consumption concept.

After experiencing the era of savage growth, today's global consumer market is undergoing profound changes. Consumers who pursue a quality of life while saving money, want to buy better products, but want to spend less money, Sam's has become the new choice.

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