Strong Earnings From Walmart, TJX and Ross Show Consumers Are Seeking Value

Amid a generally rough earnings season, off-price and discount retailers are winning over cost-conscious consumers. Ross Stores, Walmart and TJX Companies, which owns T.J. Maxx and Marshalls, all raised their full-year outlooks last week after reporting stronger than expected sales in the second quarter. These retailers, which live in the off-price and discount sector, benefited from a value-focused trend pushing consumers to save where they can during an uncertain economic environment. “Customers are stretching their dollars further and seeking better value across more categories more often,” said Walmart CFO John Rainey in a call with investors last week. He also noted that sales of grocery staples and in-home meals saw an uptick, in addition to kitchen tools that can assist in at-home meal prep. “They’re also buying more necessities and focusing on lower-priced items and brands,” he said. Ross Stores’ CEO Barbara Rentler noted in a call with investors that consumers responded well to its “improved value offerings” throughout its stores. TJX Companies’ apparel business, including accessories, saw a high single-digit comp increase, despite the discretionary nature of that category. “Across the board in retail, we see a flight to value as shoppers look to make their budgets stretch further,” said managing director

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