Marshalls and TJ Maxx buy directly from the designers. When the designers manufacture their items, they first go to big stores like Nordstrom, Macys, Bloomingdales, Lord & Taylor, Saks Fifth Avenue, etc They only buy a certain amount of inventory. If the designers end up with leftover stock, they want to get rid of it to whoever will take it. So Marshalls and TJ Maxx essentially take it off their hands for waaaay less than normal wholesale prices because they are actually doing the designer a favor by buying.

Then they put this season’s fashions in their store for way less than retail, because they got it for way less than wholesale. TJ Maxx and Marshalls can still make a profit like that and we get to wear on-trend clothes for ridiculously low prices!