GROWTH
The Most Overlooked Growth Lever in CPG Right Now
Most founders hear “off-price retail” and immediately think: clearance racks, excess inventory, brand dilution.
That thinking is outdated.
Off-price isn’t where brands go to die.
It’s where brands get discovered.
The $60B Secret Hiding in Plain Sight
Let’s start with this:
TJX Companies is a $60B+ retail machine.
They didn’t build that by selling junk.
They built it on discovery.
Walk into a TJ Maxx, Marshalls, or HomeGoods and watch how people shop.
They’re not browsing for discounts.
They’re treasure hunting.
And that subtle shift changes everything.
The Customer You’re Missing
The off-price shopper is one of the most misunderstood consumers in retail.
She’s not cheap.
She’s curious.
She’s looking for:
Something new
Something cool
Something she hasn’t seen before
That’s the exact same customer you’re trying to reach through:
Meta ads
TikTok creators
Influencer seeding
Except here’s the difference:
She’s already in buying mode.
When your product sits on a shelf next to brands like:
Goli Nutrition
Drunk Elephant
Stanley
You’re not being discounted.
You’re being validated.
And introduced to millions of consumers you would have never reached online.
The Math Most Founders Get Wrong
Here’s where things get interesting.
Most founders look at off-price and say:
“Margins are lower than DTC. Not worth it.”
But they’re comparing the wrong numbers.
They’re comparing:
DTC gross margin
vsOff-price wholesale margin
What they should be comparing is:
Net profit per unit.
Because in DTC, you’re quietly spending:
$30–$50 to acquire a customer
Plus creative, agency, and platform costs
Off-price?
No CAC
No ad spend
No creative testing
No influencer gifting
And often:
Faster payment terms
No slotting fees
No retail media spend
When you run the real P&L, something surprising happens:
Off-price can put more dollars in your pocket per unit than DTC.
The New Buyer Behavior Nobody Is Talking About
This is where it gets even more interesting.
Buyers at:
Burlington
Ross Stores
Bealls
…aren’t relying on old-school data anymore.
They’re not just looking at Nielsen reports.
They’re watching:
TikTok trends
Amazon velocity
Social proof
If your product is already moving online…
You’re basically pre-sold.
The Flywheel Smart Brands Are Building
The brands that understand this aren’t treating off-price as a one-time inventory dump.
They’re turning it into a system.
Here’s what it looks like:
Launch and validate on DTC + TikTok
Build demand and social proof
Leverage that momentum into off-price POs
Reinvest cash into growth
Repeat every 2–4 weeks
The result?
Consistent purchase orders
Predictable revenue
Expanded brand reach
Lower blended CAC
It becomes a cash flow engine, not a clearance channel.
The Real Risk Isn’t Margin. It’s Perception.
The biggest thing holding founders back isn’t strategy.
It’s ego.
There’s still this outdated belief that:
“If I show up in TJ Maxx, I’m discounting my brand.”
But the reality is:
Your customer doesn’t think that way anymore.
She’s excited when she finds you there.
It feels like she discovered something special.
The Bottom Line
Off-price retail isn’t a fallback.
It’s a growth channel hiding in plain sight.
The founders who figure this out early:
Expand distribution faster
Acquire customers cheaper
Build stronger cash flow
The ones who ignore it?
They keep pouring money into paid ads…
And leave millions on the table.
A Thought to Leave You With
As Matt Goldbloom, founder of Common Shelf, put it:
“Off-price retail is one of the most overlooked growth levers in CPG right now.”
He’s right.
The question is:
Are you going to treat it like a liquidation channel…
Or a distribution advantage your competitors haven’t figured out yet?
