T.J. Maxx, a department store chain in the US owned by the TJX Cos Inc, plans to launch an online store before the year ends. Its rival, Off Fifth of Saks Inc. would also open a store online. These plans would make 2013 the year when technology was able to catch up with fashion's speed.
The plan would be TJX Cos Inc's second try at e-commerce following its failure back in 2005. The company dumped its initial efforts after a year of chaos in the constrained office, struggles at its smaller retail outlets and weak sales. The fiasco cost the company US$15 million. However, due to the company's turnaround, the TJX was able to purchase Sierra Trading, an online retailer, for US$200 million. Sierra Trading's expertise and technology could be utilized by TJX for its new undertaking. Avondale Partners estimated that TJX could quickly generate US$1 billion yearly through online sales.
On the other hand, Saks Inc's Off Fifth would follow the recent launch of a price cut website done by Barneys New York. Saks would also utilize its current facilities to keep the prices in check. The company would carry out a three-year, US$95 million worth overhaul of its system. Saks spent an additional US$6 million to push up the opening of the site of Off Fifth this fall rather than next year.
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