Tiffany and TJX: Comparing Financial PerformanceCharles Lewis Tiffany opened his first store in downtown Manhattan in 1837.
Question:
Tiffany and TJX: Comparing Financial PerformanceCharles Lewis Tiffany opened his first store in downtown Manhattan in 1837. Today, Tiffany & Co. operates as a high-end specialty retailer worldwide. It is mostly known for its exquisite jewelry, but also has additional luxury items in its product assortment. The Tiffany robin's egg "blue boxes" have become a ubiquitous status symbol, representing the company's brand quality and craftsmanship. Tiffany & Co. has a different strategy and marketing approach than other national retailers. Throughout its history, the company's mission has been to enrich the lives of its customers by creating enduring objects of extraordinary beauty that will be cherished for generations. Tiffany & Co. has accomplished this by crafting beautiful designs, using fine-quality materials and expert workmanship, and presenting those products to its customers at stores in high-end locations, within some department stores, and online.TJX Corporation, on the other hand, consists of a mix of stores under the names of T.J.Maxx, Marshalls, HomeGoods, and Sierra Trading Post in the United States (with additional stores under various names internationally). TJX strives to offer exceptional value through its four pillars of great fashion, brand, quality, and price. It works with a variety of national brands so that its merchandise assortments at these stores are ever changing. It is willing to purchase less-than-full assortments of items, styles, sizes, and quantities from vendors and pass on the cost savings to its customers. So that it doesn't have to completely rely on merchandise from national-brand vendors for its assortment offerings, TJX also offers private-label merchandise, which is produced specifically for TJX only. It keeps moderately low inventory levels that help produce relatively fast inventory turns while maintaining lower operating expenses, resulting in relatively higher net operating profit margins than its competitors (see Exhibit 1).Exhibit 1 Financial Data for Tiffany and TJX (in thousands)Sources: TJX Annual Report; Tiffany & Co. Annual Report.
Business Statistics
ISBN: 9780134705217
4th Edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman