P, what TUES does is buy the leftovers from the big Department stores and E-Tailors at a tremendous discount and then sells it primarily to the Public at wholesale prices. I don't think it is fair to refer to it as "junk", as Carolyn does. It is quality merchandise that the specialty retailers no longer want on their shelves. This merchandise has come from Bloomingdales, Sterns, Nieman Marcus, etc. Sure, there is not much of a selection to choose from. And there is no dressing rooms to try on the clothing. What you see at Tuesday's is what you get. Some people buy and alter the clothing themselves or give it to a tailor.
Now my wife wouldn't shop at Tuesday's either because she likes a wide variety of styles to choose from. Plus, we don't need to shop at Tuesday's, as I'm sure you don't either. But there are tons of people who do shop that way and they buy. Tuesday is a deep discounter. Moreover, TUES sells their merchandise to a lot of very small local retailors whose store is to small to buy the kind of bulk that is necessary in order to get the Manufactorer's discount.
In short: TUES buys the unwanted merchandise from the Manufactorer, E-Tailor and/or Specialty Department store. They want to get rid of their Quality merchandise so they sell their leftovers to Tuesday at a huge discount. What they can't sell any longer, TUES does sell very easily at whole sale prices to the Public.
Tuesday is the only company that trades on the NYSE and NASDAQ that operates this way. It is a very profitable business.
No doubt, very few people who post on SI need to shop at Tuesday's. But Tuesday has a tremendous market and a very loyal following. Margins are good and increasing. |
