Ross Leads in Q2 2026 as Off-Price Growth Concentrates at the Value End

Off Price Still on a Roll

Off-price apparel has spent four years winning traffic share from department stores, as shoppers cut back on discretionary spending and sought out more ways to stretch their dollars. 

In the first half of 2026, that growth became increasingly concentrated at the value end of the segment, with Ross leading the way.

Ross Leads the Way

Ross Stores led throughout H1 2026, with Ross Dress for Less visits up 16.4% year-over-year (YoY) in Q2 and Ross’s dd’s DISCOUNTS up 8.4%. Burlington grew traffic as well, holding a steady pace across both quarters, while visits to TJX’s T.J. Maxx and Marshalls hovered around last year’s levels.

Deep Discounts Deliver

Ross's place at the deepest-discount end of the segment has positioned it well as inflation and trade uncertainty have tightened household spending. And with no digital storefront, all of its shopping activity takes place offline. Comparable store sales climbed 17% in the company's most recent quarter, significantly exceeding its own guidance. And in June and July of this year, the chain’s YoY same-store traffic momentum increased further. 

Burlington, meanwhile, saw accelerating YoY overall traffic gains in June and July 2026 as it continued to aggressively grow and reposition its footprint. Against that backdrop, steadily improving same-store traffic – edging into positive territory in July – suggests that its expansion strategy is gaining traction. Management has also pointed to improving productivity across the fleet, with downsized stores cutting occupancy costs significantly and relocated stores typically delivering a 5% to 10% sales lift.

TJX Holds Onto Gains

Meanwhile, visits to TJX brands T.J. Maxx and Marshalls generally hovered near last year’s levels, even as traditional apparel fell 3.5% YoY. That relative resilience highlights the continued strength of off-price, though the chains’ slower momentum compared with Ross and Burlington may reflect some pullback in the more discretionary, treasure-hunt side of their offerings. While all four chains sell branded merchandise, T.J. Maxx and Marshalls skew toward higher-income shoppers and somewhat higher price points, with greater emphasis on the kind of nice-to-have purchases consumers may be more inclined to postpone when budgets tighten.

Higher gas prices may also have played a role. With the national average for a gallon of regular gas reaching $4.09 in late July, up from $3.16 a year earlier, some TJX shoppers may have opted to skip the drive and shop online instead – an alternative offered by TJX.

Still, Marshalls saw a modest YoY visit bump in July, while same-store visits at T.J. Maxx were just 0.6% below 2025 levels. That resilience suggests back-to-school shopping helped draw shoppers, particularly at family-oriented Marshalls, where the category is a natural fit.

Value Still in the Driver’s Seat

Off-price continues to thrive, with Ross leading the way in the first half of 2026. With household budgets still under pressure, consumers appear to be rewarding retailers that stretch their dollars furthest.

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