There’s something about off-price fashion. The segment, which includes retailers such as T.J. Maxx, Marshalls (both of which are owned by TJX Companies), Burlington, and Ross Dress for Less, has been a winner for the past few years, boasting consistent year-over-year (YoY) foot traffic growth. And the success of off-price is not just limited to apparel – discount home furnishing chains have also been outperforming their full-price counterparts.
Today, we dive into the foot traffic of the four industry leaders to explore how discount home decor chains are faring following a year of retail ups and downs.
Visits, Visits Per Venue Up For Major Retailers
Following several years of economic uncertainty, shoppers have adjusted their spending habits to focus on cutting costs where possible. And the off-price segment is reaping the benefits of this consumer trade-down.
T.J. Maxx, Marshalls, Burlington, and Ross Dress for Less all saw consistent year-over-year (YoY) visit growth between June and October 2023, a metric that becomes even more impressive given the strength of the segment’s foot traffic in 2022.
Some of the visit growth is likely due to the off-price chains’ expanding brick-and-mortar footprint. But the increase in average visits per venue indicates that the rise of the off-price segment is not just a product of larger store fleets – the individual stores themselves are increasingly crowded, highlighting the continued rise in demand for affordable apparel.
Home Brands: Taking Home The Goods
TJX Companies also owns two home furnishings and decor stores – HomeGoods and Homesense. The two stores sell different product lines, with HomeGoods focusing on smaller decorative items, and Homesense on furnishings, lighting, and general home needs.Homesense recently made headlines when it announced the shuttering of its e-commerce site, choosing to focus on its brick-and-mortar business instead. To that end, the store has been adding more locations recently and has grown its U.S. fleet by 9 stores between Q2 2022 and Q2 2023.
And the decision to focus on brick-and-mortar stores may prove to be a strong bet for TJX Companies. The two chains also experienced impressive foot traffic growth for all analyzed months, with September 2023 YoY foot traffic to HomeGoods and Homesense were 12.1% and 11.0% higher than last year, respectively. Homesense is now focusing on opening stores in the country’s south, a bet that may well pay off as more high earners relocate to Sunbelt states.
Off-Price And On Target
The off-price segment continues to shine as customers look for ways to spruce up their homes or wardrobes without breaking the bank.
Will this retail strength continue into the holiday shopping season?
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