TJX Cos. (NYSE:TJX) has had consistently strong financial results – the envy of most retailers – but is this the result something specific to the company or a consumer trend that can be tapped by others?
The NPD Group asked that question, and using data from its Checkout Tracking service, got a few answers.
First, TJX is enjoying slightly more than its share of off-price dollars spent overall, but category-specific data is revealing.
"It seems that off-price buyers are, first and foremost, loyal to the idea of off-price shopping. And such buyers are increasing in number. But the growth appears to be widely distributed across the universe of off-price retailers," NPD told FierceRetail in an email.
"There seems to be little loyalty among consumers to specific off-price retailers," according to analysts at Checkout Tracking. "T.J. Maxx buyers gave T.J. Maxx 4 percent of their apparel wallet, while giving 3 percent to Marshalls and 2 percent to Ross. Marshalls buyers give 5 percent of their apparel wallet to that retailer, while giving 3 percent to T.J. Maxx and 2 percent to Ross. Nordstrom Rack buyers give 5 percent of their apparel spend to that chain, while giving 3 percent each to T.J. Maxx and Marshalls."
As rivals grow new off-price formats, TJX's dominance could be threatened.
New formats are opening at a rapid clip. Nordstrom is looking to its Rack stores for growth, Macy's is developing Backstage and Saks Off Fifth is Hudson Bay's growth vehicle.