Richard Seesel

TJX Sees Future in Cheapskates

March 1, 2010

FROM RETAILWIRE:
TJX Cos. believes it can nearly double its size primarily by expanding its core T.J. Maxx and Marshalls concepts. The prediction came last week after the off-pricer reported a fourth-quarter earnings jump. Do you see value-oriented consumption persisting after the economic recovery, supporting TJX's expansion?      [more...]

TJX is the best operator in the off-price retail space. It has an opportunity to pick up market share from weaker stores in the same segment. More importantly, there is a big difference between the merchandise assortments available at competitors like Burlington compared to the product at TJ Maxx in particular. The "new normal" of consumer behavior has tapped into a growing segment of "aspirational cheapskates," and I agree with TJX that this new shopping habit isn't going to die off anytime soon.