Joey Baghdadi’s Post

Industry Insight Off-Price Retailers Gain More Momentum As budget-conscious consumers continue to seek high value items at low prices, off-price retailers are experiencing growing sales and expanding their brick-and-mortar footprints to accommodate increasing customer demand. TJX Companies, which runs various off-price retailers in the U.S., Canada, Europe and Australia, saw its Q2 net sales rise to $13.5 billion. Ross Stores, which runs over 2,000 stores, has been expanding rapidly, recently opening 24 new locations in two months. In Q2, its net sales rose to $5.3 billion. Off-price retailers enjoy a real estate advantage, with most located away from malls in small centers with convenient parking, and are poised to take market share from department stores as retail store closures continue. #retail #offpriceretail #brickandmortar #retailers #consumers #stores

I am a huge fan of The TJX Companies, Inc., appreciate the business as a consumer, industry observer and investor. This CNBC video dives into their success story. My POV: It's an amazing business model. Assortment bought @ discount to wholesale that resonates w/customers + Lean Cost Structure (i.e. lower rents from not being in A locations) = Profit 💵 💎 Business Insights ▪️Shopping there is like a treasure chest – you never know what gem you’ll find. They’ve turned bargain hunting into a badge of honor. ▪️Keeps business model quiet and takes measures to help brands preserve brand equity (i.e. can't search online by brand). Win-win bc they get in store traffic benefit. 💰 Financials ▪️ $54B in revenue for 2024 (80% from the US), +4% comps last quarter, driven by more transactions (not price increases). ▪️Revenue has 2x'd in the past 10 years – a stark contrast to department stores. Stock price has 2x'd in the last 5 years. 👥 Broad Appeal   ▪️Capitalizes on value trend, speaks to "smart and savvy" shopper. ▪️Attracts shoppers across all income levels, from lower-income to middle-class and even higher-end consumers. 🏬 Formats & Expansion ▪️5 major brands, including MARSHALLS LLC and Homegoods   ▪️Plan to open 1k more stores domestically and also expanding internationally 🛍️ Assortment Strategy ▪️ 1k+ buyers sourcing globally, curate a "compelling and engaging assortment" of branded merchandise. ▪️Many brands create exclusive items for TJX, I've seen this first hand This retailer it’s thriving! 🌟 https://lnkd.in/gjhVMAKX #futureofretail #futureofcustomerexperiences #retail #OffPriceRetail #ConsumerTrends #businessnews

Off-Price Treasure Hunt: TJX's Expansion Plans Amidst Retail Shifts TJX, the world's largest off-price retailer, plans to expand its global footprint by 1,300 stores. This growth is likely due in part to department store closures. TJX operates Marshalls, HomeGoods, and Sierra stores. Analysts predict continued growth for the company. Here are some key points from the article: -TJX is the world's largest off-price retailer, with over 4,500 stores in 9 countries. -The company plans to expand its global footprint by 1,300 stores over the next five years. *This growth is likely due in part to department store closures, which have created opportunities for off-price retailers. -TJX operates Marshalls, HomeGoods, and Sierra stores, which offer a wide variety of discounted merchandise. -Analysts predict continued growth for TJX, as the company benefits from its strong brand recognition, loyal customer base, and experienced management team. #retail #treasure_hunt_strategy #retail_math #GMROI

Off-Price Retailers Continue to Shine in 2024 🌟 Despite economic challenges and shifting consumer behavior, off-price retailers TJX Companies, Ross Stores, and Burlington continue to deliver strong results 💼 🔹 The TJX Companies, Inc.: Net sales grew 5.6% YoY to $13.5B, driven by a 4% increase in comps. Gross margins expanded slightly, while net income rose 11.1%. TJX's ability to attract value-conscious consumers is positioning it to capture significant market share from department store peers 🔹 Ross Stores, Inc.: With a 7.1% increase in net sales YoY to $5.3B, Ross is seeing success with its sharper value strategy. Comps were up 4%, and operating margin expanded to 12.5%. Ross’ CEO cautioned that the latter half of the year may present tougher year-on-year comparisons 🔹 Burlington Stores, Inc.: The standout of the group, Burlington’s net sales surged 13.4% YoY to $2.5B, with comps up 5%. Net income more than doubled to $73.8M, reflecting broad-based momentum, particularly as value becomes a priority for a wider range of consumers across income bands As consumers focus on value, off-price retailers are poised to keep thriving, even as department stores close and discretionary spending tightens. 📊 #Retail #Ecommerce #Business #ValueRetail #ConsumerTrends #RetailGrowth

📊 How do the country’s biggest retailers stack up against Dollar General? When most of us think of the biggest brick-and-mortar retailers in the country, we naturally think of Walmart, Target, maybe Costco Wholesale and The Home, among others. As a follow-up to my post about Dollar General's impressive 20,000-store milestone yesterday, here's an eye-opening snapshot of how they compare to the country's biggest retailers. 📌 In terms of retail sales, Walmart, of course, takes the top spot. The retailer delivered over $611 billion in worldwide retail sales in 2023 (Walmart). 📌 Net sales at Dollar General came in at $38.7 billion for DG's 2023 FY (Dollar General). In terms of store count, however, Dollar General is going where other retailers aren't and that's in the country's nooks and crannies to reach customers around the corner in their neighborhood. Here's how that plays out in numbers. 📍Five states are home to 5,800 Dollar General stores--Texas, Georgia, Florida, North Carolina, and Pennsylvania- that's more stores than Walmart has across the country. (via Retail Dive) Check out the great graphic by Retail Dive below which shows how the stores compare in store count. Read more here: https://bit.ly/4aOt31T #TSCG #CREtail #RetailStores #CRE #Retail

Changes at Macy's are opening up opportunities for other retailers to set themselves up for growth. According to a recent report from Retail Dive, one indirect byproduct of all the store closures is the increasing importance of the vendor community for merchants amidst less brick-and-mortar competition. Read more about how this shift is affecting the industry here: https://lnkd.in/gwJWGURk

As traditional retailers like Macy's scale back physical stores, The TJX Companies, Inc. is strengthening ties with suppliers. CEO Ernie Herrman highlights the increasing importance of vendors in a shrinking brick-and-mortar landscape, hinting at improved margins and expanded market share. In an era of retail transformation, TJX's robust supply chain and experienced buying teams remain key competitive advantages. #LifeWorkSearch #SupplyChainProssionals https://lnkd.in/egd_CEmW

The CEO of The TJX Companies, Inc. wants to capture additional market share around the world, as the popularity of off-price shopping at their stores continues to grow and attract customers of every age and annual household income. “Our off price business model is extremely flexible and resilient, and I believe we are set up for a long runway of exciting growth in our geographies around the world,” Ernie Herrman told analysts last week during a conference call on first quarter earnings results. According to Sourcing Journal, for the first quarter ended May 4, net sales rose 5.9 percent to $12.48 billion from $11.78 billion. By division, U.S. Marmaxx—T.J. Maxx and Marshalls banners—sales rose 5 percent to nearly $7.8 billion, with comps up 2 percent. https://lnkd.in/eYprTN6a #gbtrealty #offpriceretail #TJXCompanies #TJMaxx #Marshalls #buildingvalue #retail #shopping #growth

As Macy’s and others close stores, TJX is picking up the supplier base #cre #commercialrealestate #goodmanre #TJX #TJMAXX #retailers #retail #retailnews #retailrealestate #retailindustry #realestate

US Retail Shake-Up: Over 1,290 Stores Closing Amid Industry Transformation In a significant industry shift, 1,290 stores across the US are slated for closure in 2024, according to a Business Insider analysis. While this number is lower than previous years, the retail landscape remains dynamic. Analysts predict that over the next five years, a staggering 45,000 US retail closures may occur, primarily affecting smaller stores. Despite this, retail giants like Walmart, Costco, Target, and Home Depot continue to expand. Dollar Tree’s Family Dollar tops the closure list, while companies like Express and Foxtrot face financial challenges. As shopping behaviors evolve, retailers adapt their strategies to stay competitive. #RetailNews #StoreClosure #ConsumerNews https://lnkd.in/exWBcQhD