Research Question: Can discount retailers T.J. Maxx and Ross continue their impressive sales run for the next three to six months?
Companies: The TJX Companies (TJX) & Ross Stores (ROST)
Initial research by Blueshift indicates effective marketing campaigns by Ross and well-positioned new store openings from T.J. Maxx, with possible competitor threats looming.
- Ross (5%) and T.J. Maxx (6%) posted positive same store sales gains in September. Helping boost sales for the companies is a trend among consumers seeking strong brand names at lower prices, with more low- and middle-income shoppers deciding to buy their clothes at discount stores, rather than at mid-market full-price stores.
- Ross’s current marketing message, which places an emphasis on bargains, appears to be effectively reaching both male and female consumers. A young female posted pictures on a tumblr page dedicated to Ross, expressing her excitement about a new dress she bought at the discount retailer, while a male consumer blogged about finding new ties at Ross that were cheaper than similar items at Goodwill Stores. Additionally, a recent T.J. Maxx store opening in Bellingham, Washington welcomed 230 customers during its 8 a.m. grand opening.
- Concerning for Ross and T.J. Maxx are low-priced competitors like H&M and Zara that offer trendier, more form-fitting merchandise. Additionally, Yelp reviews of T.J. Maxx stores from California, Texas, and New York indicate complaints about the small size of store locations and disorganized inventory.
To gain insight into current sales trends at both Ross and T.J. Maxx and determine any looming threats for both companies, Blueshift with gather data from sources in the following silos: Ross and T.J. Maxx retail locations, customers, supply chain, and industry specialists.
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