As discount retailers such as TJ Maxx and Saks Off Fifth get comfortable in e-commerce territory, closeout retailer Tuesday Morning is bowing out of the digital space, according to reports.
The retailer shut down its e-commerce business so it could focus on its more than 800 brick-and-mortar stores, according to an article in Highlands Today. At first glance, the move may seem like a step backward, especially when one considers how H&M recently took the e-commerce plunge in the U.S. and discount retailer TJ Maxx is getting ready to give online business a second go.
But some experts, said the Highlands Today report, don't think Tuesday Morning has made a bad call.
Closeout retailers like Tuesday Morning face challenges that larger retailers don’t, namely, ever-changing inventory that moves off shelves far too fast for these retailers to keep their e-commerce sites updated. Software has come a long way, which is why it makes sense for Saks Off Fifth to delve into the world of e-commerce. However, rather than end up with unhappy consumers and lost revenue — the issues which took TJ Maxx out of its initial foray into the digital arena in 2005 — Tuesday Morning is pointing to the fact that it made 99% of its revenue in its physical stores and is therefore going to stick to doing what it does best.
Click here to read the entire Highlands Today report.