T.J. Maxx (the TJX company) is the “black box” of retailing–one of the most secretive retailers around– writes Fortune(Aug. 11, 2014). With over 3,200 stores in the U.S., the TJX off-price business is a volume game: selling a ton of goods and selling them fast. The measure of speed here is how quickly a company turns over its inventory: TJX does that every 55 days, vs. 85 for its peer group. Indeed, the company is structured to whisk items through its distribution centers and stores: TJX shipped some 2 billion units to its stores in 2014, up from 1.6 billion in 2010.
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In 2007, airlines world-wide mishandled 47 million bags, or 19 per 1,000 passengers. Lost baggage was costing the airline industry $4 billion a year. Returning delayed or lost luggage to passengers cost an average of $100 per bag, and there had been a steady increase in the frequency of mishandled baggage. But airlines last year mishandled only 22 million bags, or 7 per 1,000 passengers, reports The Wall Street Journal (June 5, 2014). Why the dramatic change? Continue reading →

Chains such as Chipotle and In-N-Out Burger may rely on a stable menu of popular items, but Taco Bell engineers a constant rotation of products in hopes of not only keeping consumers coming back but also uncovering the Next Big Thing. Explains the firm’s chief marketing officer: “We want to be the leader in food innovation and believe there is no finish line when it comes to being first and staying relevant.” Crafting a breakfast hit, like the new Waffle Taco, is lucrative. In recent years breakfast has been the fastest-growing day part for the industry. Continue reading →