GLENDALE (CBSLA.com) — It’s the thrill of the hunt that retail analysts say is driving shoppers to off-price stores like Marshalls, T.J. Maxx, and HomeGoods.
Their profits are soaring while many department stores are suffering.
“One of the things that we found is that the reason that a lot of consumers are using these bargain stores is because they do like the lower prices but actually they like the experience as well,” said Neil Saunders, a retail analyst for Conlumino.
Analysts say consumers at off-price stores believe they are getting a great deal for their money.
Marshalls, for instance, compares its prices with suggested retail prices on their tags.
“I’ll go into Nordstrom Rack and then I’ll find something that’s like designer name that’s like let’s say $100 cheaper there than at a different store,” said Hera Der-Gevorgian, a shopper.
And retail analysts say department stores sales often can’t compete.