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New Gucci Bags at Marshalls, Cline at T.J. Maxx: Is that Legal?

But before we get ahead of ourselves: How do T.J. Maxx, Marshalls and co. gain access to such bags to offer for sale if the brands with which they are associated do not want their wares in these stores? According to a statement from T.J. Maxx, “We buy from all kinds of vendors, and we take advantage of a wide variety of opportunities, which can include department store cancellations, a manufacturer making too much product, or a closeout deal when a vendor wants to clear merchandise at the end of a season, as well as lots of other ways.” This broad language tells us very little in actuality. What we do know is that stores ranging from Macy’s and Nordstrom to Neiman Marcus and Bergdorf Goodman employ buyback clauses in their contracts with brands and vendors, in which they are required to buy back merchandise that does not sell. Traditionally, off-price retailers then buy this overstock from manufacturers at a discount, drastically reduce prices, and offer the goods for sale in their stores. This is likely how Michael Kors bags, for example, end up in discount retail stores. However, this model – and the fashion media in general – does little to explain how Yves Saint Laurent or Céline bags end up in T.J. Maxx. And rather unsurprisingly, the retailers have been less than forthcoming in terms of disclosing how their most high end goods come into their possession.

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