Off-price retailers like TJX and Ross are thriving, offering trusted brands at discounted prices

From CNBC: 2024-05-26 08:00:01

Off-price retailers like TJX Companies and Ross are attracting shoppers amidst rising prices for essentials like food and gas. They offer trusted brands at discounted prices, attracting both low and high-income consumers. Both companies posted strong earnings, with TJX reporting a 6% sales increase and Ross posting an 8% jump.

Consumers are prioritizing value in today’s economic climate, leading them to off-price retailers like TJX and Ross. These retailers are appealing to a broad array of shoppers and have become popular among younger consumers. Even high-income shoppers are turning to discounters for both necessities and discretionary items.

Off-price retailers are experiencing steady growth and gaining market share over department stores. Brands are increasingly viewing off-price chains like TJX and Ross as growth channels, providing quality branded products at value prices. The dynamic is changing, with consumers seeing off-price stores as fashionable and exciting places to shop.

Off-price retailers are no longer just a place for last season’s inventory. They are now destinations for big-name brands like Nike, Adidas, and Michael Kors to grow wholesale revenue discreetly. The relationships between off-price chains and brands are strengthening, as brands recognize the value of selling their products through these retailers and can do so without diluting brand equity.

TJX and Ross have strong vendor relationships and are providing better products at scale. Both companies have managed to continue growing sales amidst economic challenges and changing consumer perceptions. They have become essential players in the retail sector, attracting customers from various income levels with their value-driven offerings.



Read more at CNBC: TJX and Ross won’t be slowing down anytime soon — here’s why