Chains including Marshalls, TJMaxx, and Costco have made the treasure hunt a key part of their business model. Merchandise changes regularly, so you never know what you might find, and the prices generally beat traditional retail.
That’s supposed to drive repeat visits from shoppers looking for a deal.
“These stores represent a kind of treasure hunt for consumers,” Jaime Ward, the former head of the Retail Finance Group for Citizens Bank, told REjournals. “They don’t know exactly what they want. They know they need something. They go in and find top brands at deeply discounted prices. It feels like a total bargain and a rare find. That is a shopping thrill that consumers like.”
JCPenney thinks that at least some consumers who want value also want to know that the items they’re looking for will be in stock when they visit a store. That has led to the company’s new ad campaign, which takes on retailers including Costco, Marshalls, TJMaxx, Ross Dress for Less, and others that use the treasure hunt model.
JCPenney tries to take down treasure-hunt retailers
JCPenney has a new advertising campaign that’s trying to position the brand as an alternative to treasure-hunt chains such as Costco, Sam’s Club, Marshalls, and TJMaxx.
The chain calls the program “Retail Rejuvenation” and explained the premise in a press release.
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“You walk into a store, hopes high, only to walk out disappointed. You saw a shirt you loved, but couldn’t find it in your size. Or worse, you settle and buy something that didn’t quite fit to avoid leaving empty-handed,” the retailer shared.
“Trust us, we’ve all been there. But we’re letting you in on a secret — you don’t need to settle to get the best deal. That’s why JCPenney is inviting you to discover a better way to shop.”
It’s an effort to convince people that they can still get good deals without having to submit to the uncertainty of a treasure hunt.
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Consumers, however, like the treasure hunt
As a shopper who has covered the retail industry for over 30 years, I’m mixed on the treasure hunt. I like when I’m shopping at Costco and find a book, some candy, or even some clothing I wasn’t looking for.
I will never shop at a Marshalls, TJMaxx, or similar store when I actually need something, however. Many people don’t agree with me, but I shop for clothes when I’m looking for something specific, not hoping to find a bargain on something I may not need.
Former Ross Stores CEO Barbara Rentler explained why the treasure hunt model works during a 2024 earnings call.
“It’s really about the value you’re putting on the floor, the products and the value, it always comes back to the product and the value. And then it will turn quickly because the customer knows in a treasure hunt environment, if I don’t buy it, it won’t be there next week,” she said.
The treasure hunt model also offers flexibility to the retailers operating it.
When brands produce too many clothes or department stores cancel orders, the discount treasure hunt chains step in and buy the leftover inventory.
“Ross calls them ‘opportunistic purchases.’ It can either quickly ship the product to shelves to meet in-season looks or pack the products away in warehouses to sell later. Both methods help the company constantly rotate through a wide assortment of styles and fashions,” CBS News reported.
JCPenney is going on offense
RTM Nexus CEO Dominick Miserandino applauds JCPenney for trying to give itself an identity that makes it stand out to shoppers.
“Look, calling out the elephant in the room works because younger consumers hate corporate fluff. Wendy’s proved a decade ago that shoppers reward brands that speak plain English and call out the competition directly,” he told TheStreet.
The struggling department store, he noted, is trying to differentiate its shopping experience from its rivals that use the treasure-hunt model.
“JCPenney taking aim at Marshalls and Costco isn’t just a marketing stunt — it’s an attempt to cut through the noise by stating a blunt truth every discount shopper knows: Digging through messy clearance racks or standing in a hundred-person line at a warehouse club can be an exhausting headache,” he added.
The company is being bold, he explained, and that’s a positive for the brand.
“In retail today, being polite gets you ignored. Gen Z and Millennial shoppers appreciate a brand that drops the formal PR speak and calls out the trade-offs of competitor models directly. If JCPenney can back up the talk with clean stores and inventory that’s actually in stock, calling out the competition’s flaws directly is the exact play to get people’s attention,” he wrote.
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