Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Off-Price Apparel Update - Q1 2022

By 
Bracha Arnold
May 10, 2022
Off-Price Apparel Update - Q1 2022
SHARE
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
Key Takeaways

Off-price stores, which sell branded clothing at a discount, have overperformed compared to the wider apparel sector throughout the pandemic. Much like the grocery segment, this market seemed to thrive in an uncertain world. Now, with a new set of challenges – including inflation, gas prices, and supply-chain disruptions – impacting almost all retail segments, we checked in with the category to see how it’s holding up.  

How These Retailers Weathered the Pandemic

When COVID’s retail impact first began, the future of retail seemed uncertain. 

Analysts predicted a pivot to e-commerce and some even questioned whether we were seeing the end of brick and mortar retail. But while the e-commerce sector did indeed grow in the past two years, and some offline stores did shutter, many other brick and mortar retailers found themselves thriving. 

Off-price retail was one such success story. We analyzed four industry leaders - Marshalls and T.J. Maxx (owned by TJX Companies,) Burlington Coat Factory, and Ross Dress for Less. Over the past two years, these companies outperformed many of their retail counterparts, even though two of them – Ross and Burlington – do not operate online stores at all. With omni-channel shopping increasingly being touted as the future of retail, the success of these brands is all the more impressive. 

Yearly Visit Trends Remain Impressive 

Comparing foot traffic trends to prior years reflects the industry’s overall success. Even amidst a wave of unique challenges - from Omicron in January and February to the lingering impact of inflation and the sharp effect of rising gas prices - the sector has managed to show strong relative performances. 

While those months that were more impacted by these challenges did see year-over-year visit declines, visit rates proved resilient as shopping behaviors quickly normalized. Following sharper declines in March, visit rates returned to growth or near growth for all four chains. Considering the magnitude of the challenges faced - especially for apparel - the quick rebound speaks for itself.

A glance at year-over-three-year (Yo3Y) visit trends are equally noteworthy, as visits are up even compared to pre-pandemic levels. In February 2022, Burlington visits were 11.7% higher than in 2019, while T.J. Maxx saw an 8.7% increase compared to the equivalent month in 2019. 

And despite March’s YoY slump, by April all the chains but Marshalls had pulled forward, with T.J. Maxx visit trends 1% higher than they were three years ago, and Burlington receiving 10.5% more visitors. 

And while many predictions assumed omni-channel would be the lifeboat keeping retail afloat, the two stores with the strongest Yo3Y foot traffic – Ross and Burlington – are the two that don’t offer any online shopping. The data here shows the clear value that the offline experience offers in this segment, but also the jump forward that the sector took as a whole during the pandemic.

Monthly Foot Traffic Pulling Ahead

Off-price’s resilience becomes even more apparent as we dig deeper into foot traffic patterns. A glance at Q1 2022 shows a significant downturn in January ‘22, with visit shares down between 40 and 50%. This pattern can be attributed to the Omicron wave and to regular seasonality. December is generally one of the strongest months for off-price retailers. 

By February, visit shares were pulling forward, with all four retailers seeing more visits than in January, despite February’s fewer days. And month-over-month (MoM) visits increased again in March and April showing the strong momentum the sector is seeing, even in the face of elements like inflation that can reduce demand. As the segment continues to normalize, it may actually benefit from these trends as they tend to give an added boost to value-oriented retailers.

Final Thoughts

As prices continue to rise, we may see more and more shoppers opt for bargains at their local off-price retailers. And despite a rocky start to the quarter, the recent upturn may signal real reason for optimism. 

Follow placer.ai for more data-driven insights.  

Learn how downtown regions across US cities are measuring up with our free tools.
Check out the latest trends for
No items found.

Related Topics

Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
SHARE
Get 3 brand & industry
breakdowns every week
Subscribe to the newsletter
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.

Recent Publications

Get 3 brand & industry breakdowns every week

Subscribe to the newsletter
Home Depot and Lowe’s Heading Into the Holidays
Starbucks and Dutch Bros: Short Visits Lead the Way
Planet Fitness: Raising the Bar(bell)
Checking in With Full-Service Restaurants: First Watch, Chili’s, and Outback Steakhouse
RBI and Yum!: QSR Resilience in 2024
Boot Barn and DSW: Stepping Up Their Game
Target’s October Circle Week: A Data-Driven Snapshot
Chipotle, Shake Shack & Wingstop: Dining Success in Q3 2024
Playa Bowls and Tropical Smoothie Cafe: Berry Big Business
Cheesecake Factory & BJ’s Restaurants: Full-Service Success
Checking in on McDonald's and Wendy's 
Sprouts Farmers Market: A Specialty Grocer With a Traditional Twist
CAVA: The Craze Continues
Placer.ai Reaches $100M Annual Recurring Revenue
Catching Up With Carter's 
A Texas Roadhouse and LongHorn Steakhouse Showdown
Placer.ai Mall Index: September 2024 Recap – Labor Day Peaks and Holiday Season Predictions
Albertsons Q3 Check-In
Looking Ahead to the 2024 Holiday Season
Trader Joe's: Continuing to Thrive in 2024
Bowlero and AMF: A Ten-Pin Knockout
Recreational Retail: Store Performance in 2024
Placer.ai White Paper Recap – September 2024
A QSR and Fast-Casual Face-Off
Sam’s Club’s In-Store Retail Media Network Opportunity
The Rising Stars: Six Metro Areas Welcoming Young Professionals
Costco in 2024: A Deep Dive
Sherwin-Williams in 2024: Brighter Than a New Lick of Paint
Life Time and Orangetheory: Premium Fitness Flourishing
C-Stores: More Than A Pit Stop
Darden: Dining Dominance Undeterred 
Placer 100 Index for Retail and Dining: August 2024 Recap
Placer.ai Office Index: August 2024 Recap
Placer.ai Mall Index: August 2024 Recap – Back-To-School In Full Swing
Auto Parts Retailers: The Traffic Continues
Pumpkin Spice Works its Magic Once Again
School Season Sparks Retail Growth
Placer.ai White Paper Recap – July & August 2024
Big Lots’ Big Rightsizing Move in Four Data Points
Fun Away From The Sun: Checking in With Eatertainment
Domestic Migration and Population Growth: Strong Currents Off The Carolina Coast
The Civic Impact of Summer Events
Retail Trends in College Towns: A Back-to-School Snapshot
Five Below and Ollie’s Bargain Outlet: Consumers Still on the Hunt for Discounts
Macy’s & Bloomingdale’s: Into 2024 and Beyond
Limited Time Only: The Trend Continues
Beauty in 2024: Many Ways to Win
Dollar General & Dollar Tree: Powering Ahead in Q2 2024
The Home Depot and Lowe's Foot Traffic Remodel in Q2 2024
Superstore Update: Summer Savings Spree
Placer.ai Mall Index: July 2024 Recap – From Fourth of July to Back-to-School
Placer.ai Office Index: July 2024 Recap
Summer Movie Madness: Blockbuster Films Boost Foot Traffic
Driving Success: Toyota in 2024
Denny’s and IHOP: An All-Day Breakfast Matchup
Warby Parker: Seeing Clearly Now
Planet Fitness at the 2024 Halfway Point
Serving Summer 2024: RBI and Yum! Brands Q2 Foot Traffic
Starbucks, Dutch Bros., Dunkin’: Finding Summer Success
Fast Food and Fast Casual Favorites, Plus CosMc’s Takeoff
Chipotle and Sweetgreen: Fast-Casual in Q2 2024
First Watch, Texas Roadhouse, and Applebee’s: An FSR Roundup
Albertsons Companies: H1 2024 Recap
Teaming Up For Success: Sports Stadium Sponsorships
Limited Time Offers: Price Wars Boost Visits
Placer 100 Index for Retail & Dining: June 2024 Recap
Placer.ai Mall Index: June 2024 Recap
Placer.ai Office Index: June 2024 Recap
Inside Out 2: The New Blockbuster Bringing Crowds Back to Theaters
Petco and PetSmart: A Head to Head
Frozen Delights: Exploring Ice Cream Chains Across America
Placer.ai White Paper Recap – June 2024
Barnes & Noble: Writing a New Story
Small Format Stores - Sprouting, Blooming, and Expanding
Retail and Dining on Father’s Day
Thrift Store Visit Scores
Charting Value Grocery’s Visit Growth
Placer 100 Index for Retail & Dining: Introduction and May 2024 Recap
Digging Into Darden: Q2 2024 Update
2024 Retail and Dining Trends Update
TRU and avid: Midscale Hotels on the Rise 
Diving Into Kroger: A Strong Start to 2024
Placer.ai Mall Index: May 2024 Recap – Mall Visits on the Rebound
Placer.ai Office Index: May 2024 Recap
2024 Memorial Day Recap
Las Vegas: A Tourism and Migration Deep Dive
Eatertainment Chains: Full on Food, Fun, and Foot Traffic
The Promise of Luxury Apparel
Catching Up With Ulta Beauty & Gap Brands
Ollie’s Bargain Outlet and Five Below: Q1 2024 Treasure Troves
CAVA Still Going Strong
Driving Success: Auto Parts Chains in 2024
Checking in With DICK’S Sporting Goods
Mother’s Day Shopping and Dining Trends
Placer.ai Mall Index: April 2024 Recap – Retail Resilience Heading into Spring
Dollar Stores Still Gaining Momentum
Off-Price Apparel Chains After Q1 2024: Demographics in the Balance
Walmart, Target, and Wholesale Clubs Continue to Thrive
Home Improvement and Decor Check In
Placer.ai Office Index: April 2024 Recap – Recovery Continues