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The cool new store to hit up may be…TJ Maxx?
In the face of inflationary pressures, the discounter is performing well across age groups and income brackets, TJX Companies CEO and President Ernie Herrman said during a May 22 earnings call. TJX Companies—which operates TJ Maxx, Marshalls, and HomeGoods stores—saw its net sales for the quarter rise to $12.5 billion, up 6% from this quarter last year. It raised its EPS guidance for the full year to $4.03–$4.09, up 7%–9% over last year.
TJ Maxx and Marshalls’ same-store sales grew in areas with incomes both above and below the $100,000 household income level, EVP and CFO John Klinger said. Herrman noted that stores are attracting “more new customers that are skewing to a younger age,” a trend the retailer’s noticed for several quarters now. He’s also seen an increase in customers choosing to shop at TJX stores for holidays in the first half of the year, like Valentine’s Day and Mother’s Day.
Ross, which serves lower-income shoppers, also had a strong first quarter. During an earnings call on May 23, EVP and CFO Adam Orvos struck a cautious tone, stating that “ongoing uncertainty in today’s macroeconomic and geopolitical environments, including prolonged inflation, continue to squeeze our low- to moderate-income customers’ purchasing power.” Nevertheless it, like TJX, beat expectations for EPS and revenue. Its Q1 sales were up 8% YoY.
Smile, you’re on camera: TJX has outfitted its loss prevention staff with body cameras in an effort to control shrink, a move Klinger said is working. “It’s almost like a de-escalation, where people are less likely to do something when they’re being videotaped,” he said. He expects shrink to stay flat year over year. Many retailers are now experimenting with using body cameras for loss prevention, Forbes reported.