Ryan Craver was recently a guest on #PreMarket Prep, a daily trading idea radio show hosted by Joel Elconin and Dennis Dick.
Retail Expert & Lamour Group Senior Vice President Ryan Craver discussed TJX Companies Inc TJX and Ross Stores, Inc. ROST on the show.
Craver said that off-price retailers provide a compelling value proposition to customers because they see large, national brands at “significantly discounted prices.”
The reason the off-price retailers can can be so successful involves how they source products, Craver noted, as they may buy from wholesalers 20 to 30 times per year rather than just in the spring or fall.
“Why that’s so beautiful to wholesalers, is because they often times over-make something and they have extra runs, or clearance, and they need to figure out a way to get rid of that product,” Craver said.
Wholesalers will significantly discount the products, according to Craver, and companies like TJX or Ross will buy the excess products.
Ross Stores closed at $99.43, down 1.79 percent, while TJX Companies closed at $65.64, down 0.34 percent.
Listen to the show here:
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