We sell designer clothes for below retail price and sweets for well above, says TK Maxx
TK MAXX has explained that it makes a profit on £50 Gucci jeans by selling liquorice whirls by the counter for £3.50.
The designer clothing retailer reassured shareholders that their business model of selling a £1,200 jacket for £105 was entirely sustainable because of what they rake in on small tins of toffees.
A spokesman said: “The Armani or whatever is a loss-leader to get the punters in the door. It’s in the queue we make all our money.
“No matter how many discount Calvin Klein shirts and Radley bags the punters have got in their arms, they can’t resist paying £5.80 for a gumball machine full of off-brand jelly beans.
“£2.50 for a packet of Yorkshire Crisps? But they pay it because they think they got a good deal on the clothes. It’s a reward loop.”
Shopper Carolyn Ryan said: “Funny thing, I don’t think I’ve ever seen anyone actually buy the sweets.”