A third generation family business, TJ Morris, the company behind Home Bargains is both a success story and an enigma. Well on its way to £1 billion of sales in the UK, it is highly profitable. In 2009 operations director Joe Morris spoke to the FT about its reasons for success:
1. Word of mouth
2. Good products
3. Low prices
4. Honesty
5. Transparency.
Its strategy for good products and low prices:
1. Only sell brand names
2. Only sell products it can make a profit on. No loss leaders.
3. Don't confuse shoppers with offers that are here today and gone tomorrow [opposite of Zara!].
4. Stock changes depending on what can be bought cheaply [manufacturers who overproduce are use TJMorris to get rid of volume.]
Run by four brothers. The driver is Tom, who is renowned as a great buyer. "If you buy right you can make money even if the stores are not perfect," says Joe.
The shop experience:
1. Is about browsing: let's see what is in there motivation for shoppers. "Part of the buzz is that there is always something new," says Joe [same as Zara: this is a blog not a primary interview!].
2. 10,000 sq ft to 15,000 sq ft and 3,000SKUs.
3. Beer and wine but no spirits or cigarettes.
4. Household items to toys and food but no fresh or frozen.
Key strategic ingredient: family worked long hours, invest in their business.
1. Word of mouth
2. Good products
3. Low prices
4. Honesty
5. Transparency.
Its strategy for good products and low prices:
1. Only sell brand names
2. Only sell products it can make a profit on. No loss leaders.
3. Don't confuse shoppers with offers that are here today and gone tomorrow [opposite of Zara!].
4. Stock changes depending on what can be bought cheaply [manufacturers who overproduce are use TJMorris to get rid of volume.]
Run by four brothers. The driver is Tom, who is renowned as a great buyer. "If you buy right you can make money even if the stores are not perfect," says Joe.
The shop experience:
1. Is about browsing: let's see what is in there motivation for shoppers. "Part of the buzz is that there is always something new," says Joe [same as Zara: this is a blog not a primary interview!].
2. 10,000 sq ft to 15,000 sq ft and 3,000SKUs.
3. Beer and wine but no spirits or cigarettes.
4. Household items to toys and food but no fresh or frozen.
Key strategic ingredient: family worked long hours, invest in their business.
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