In this article ROST TJX Follow your favorite stocks CREATE FREE ACCOUNT A T.J. Maxx store in Pasadena, California.
Mario Anzuoni | Reuters Off-price retailers like TJX Companies and Ross are still posting sales gains and taking market share from rivals, but it's not just because consumers are under pressure and hunting for value. Persistent inflation and rising prices for essentials like food and gas have pushed shoppers to trade department stores like Macy's and Kohl's for discounters like TJ Maxx and Ross. But they've also become cooler places to shop, particularly among younger consumers, and their assortments have gotten better because brands increasingly view them as a growth channel as department stores continue to shrink and lose share .
"They have trusted brands at a cheaper price. They're more on-trend, they're designer-led, they lean into categories that the customer is much more interested in," said Jessica Ramirez, a senior research analyst with Jane Hali & Associates. "In terms of categories that maybe are not resonating as well, they pull back from them and they have that ability because of their .
.. strategy.
A department store doesn't have that." TJX and Ross both reported fiscal first quarter earnings last week that came in better than Wall Street expected, even as both companies lapped outsize growth from the prior-year period. TJX, which runs brands like TJ Maxx, Marshalls and Homegoods, saw sales grow 6% to $12.
48 billion, compared to estimates of $12.46 .