All manner of retailers are losing sleep over Amazon — but not the off-price players.
These days, two-thirds of consumers buy their duds at off-price retail chains like T.J. Maxx and Nordstrom Rack, according to a new report from The NPD Group, the global market research firm.
Indeed, off-price merchants, which sell high-profile brands and designer goods for 20% to 60% percent below department and specialty store prices, represent 75% of apparel purchases across all retail channels, according to NPD’s receipt mining service Checkout Tracking, which analyzes store receipts and tracks consumer-purchasing behavior over time.
Off-price merchants represent 75% of apparel purchases across all retail channels.
“Off-price retailers are resonating with fashion and cost-conscious consumers alike, and are stealing department store business for good reason,” said Marshal Cohen, chief industry analyst for The NPD Group, in a statement. “Off-price is second only to the online channel in terms of growth rate.”
Shopping visits made to off-price retail stores — whether a purchase was made or not— increased by 4% in the year ending April 2016, compared to 2015.
In the same period, off-price retailers converted 50% of consumer shopping visits into a purchase, according to NPD’s Shopper Insights Service, which tracks where and how consumers shop, measuring traffic, shopping conversion, demographics, and other variables.