Thanks for Visiting!

Register for free to get the full story.

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

TJX Brands - Bringing Off-Price to High-Income Consumers

By 
Shira Petrack
March 9, 2022
TJX Brands - Bringing Off-Price to High-Income Consumers
SHARE
Explore our free tools to get timely insights into key industries
Check out the latest trends for
No items found.
Key Takeaways

TJX, which operates off-price chains in categories ranging from apparel (T.J. Maxx and Marshalls) to recreation gear (Sierra) to home furnishings (HomeGoods), is a retail powerhouse. Foot traffic to the company’s portfolio brands was strong in 2021, and early 2022 data indicates that this year will be just as robust. We dove into foot traffic trends and consumer demographic information to better understand the secret to this heavy hitter’s success. 

T.J. Maxx & Marshalls 

The off-price sector has been over-performing the apparel average ever since stores opened back up in 2020, and T.J. Maxx and Marshalls are no exception. Year-over-two-years (Yo2Y) monthly visits to T.J. Maxx were up every month for the last three quarters of 2021; Marshalls also saw impressive visit surges over the summer and managed to keep its visit gaps extremely small in months where foot traffic didn’t quite reach growth. 

Visits did fall in early 2022 – likely due to the rise of Omicron – but if 2021 foot traffic trends are any indication, both brands should see a visit increase again as soon as March.

T.J. Maxx and Marshalls Within the Wider Off-Price Sector 

Two main elements set Marshalls and T.J. Maxx (Marmaxx) apart from the other two off-price visit leaders Burlington and Ross. First, T.J. Maxx and Marshalls both operate ecommerce channels, which Ross and Burlington do not. Although Marmaxx’s online stores represent only a small part of their overall business, this channel still allows customers to maintain a relationship with the brands during times when coming to the brick and mortar store is not an option. 

Second, and perhaps more surprising, T.J. Maxx and Marshalls appear to cater to a higher income customer base when compared to Ross and Burlington. Every brand has its own trade area, which represents the geographic areas where the brand's customers reside, and looking at the average demographics for all the trade areas of a given brand's locations can tell a lot about that brand's customer base. 

The chart below shows the household income distribution for the trade area populations of six brands - T.J. Maxx, Marshalls, Target, Ross, Burlington, and Walmart. Whereas the household income distribution among the trade area population of T.J. Maxx and Marshalls is closer to that of Target, the household income distribution among Ross and Burlington customers is closer to the income distribution among Walmart customers. This means that TJX's off-price apparel companies brand themselves as discount retailers and offer value prices – while attracting customers with more spending power compared to customers of other off-price retailers.

HomeGoods 

HomeGoods is another TJX brand that has been having an amazing run. The brand aggressively expanded its store fleet in 2021, and overall monthly visits have risen accordingly. Even more impressive, HomeGoods' average monthly visits-per-venue also saw a Yo2Y increase all through 2021 – December visits were up 11.4% overall and 7.4% on a visits-per-venue basis when compared to December 2019.

HomeGoods Attracts High Income Consumers 

Like T.J. Maxx and Marshalls, HomeGoods also operates an ecommerce website. And like T.J. Maxx and Marshalls, HomeGoods customers tend to come from areas with a higher household income distribution compared to other home furnishing retailers. 

The chart below presents the household income distribution for the trade areas of HomeGoods, Tuesday Morning, Ashley Furniture HomeStore, IKEA, At Home, Bob’s Discount Furniture, and Big Lots. Compared to the other six home furnishings retailers, HomeGoods’ trade area stands out as having the lowest share of customers with household incomes below $100K, and the highest share of customers with household incomes above $100K. This means that, like with sister brands T.J. Maxx and Marshalls, HomeGoods has successfully branded itself as a value retailer that can attract higher-income consumers. 

Sierra 

TJX also operates Sierra, a recreation and fitness gear retailer. The brand started as a catalog company before establishing its ecommerce business in 1998 – so although Sierra has been operating brick and mortar stores for over three decades, its initial focus was on DTC distribution. TJX’s acquired Sierra – then named Sierra Trading Post – in 2012, and has since worked on growing the company’s physical footprint. This store fleet expansion continued in 2021 – between February ‘21 and January ‘22, TJX opened 11 new stores for a total of 59 US-based Sierra stores by the end of January ‘22. 

The increase in store count is reflected in the massive jump in overall visit numbers. And although new stores often take time to build a consistent customer base, Sierra has also managed to maintain extremely strong visit-per-venue growth: Every month for the past fourteen months has seen double-digit Yo2Y growth in average visits-per-venue. 

Comparing Sierra and REI Consumer Demographics 

Interestingly, although Sierra brands itself as a value-priced retailer of outdoor and recreation gear, the income distribution among its trade area population appears to skew higher than the income distribution among REI’s trade area population – even though REI brands itself as a premium retailer that emphasizes quality over price. So Sierra, like HomeGoods and Marmaxx, has succeeded in attracting customers from higher income areas despite branding itself as a value retailer that can also appeal to lower-income consumers.

Takeaway 

TJX operates a number of companies in several categories, and these companies share two things in common – they are enjoying strong visit performances, and they have succeeded in positioning themselves as value-priced retailers that can attract customers from higher income areas. Could that be one of the keys to TJX’s success? 

For more up-to-date, data-based retail insights, visit our blog

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

Stay Anchored: Subscribe to Insider & Unlock more  Insights
Subscribe
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.

Get 3 brand & industry breakdowns every week

Subscribe to the newsletter
Old Navy's Foray Into Occasionwear
JonasCon Brings Even More Experiential to American Dream 
What Happened to Family Dollar? 
The Impending Transformation of Bev-Alc Retail
CVS and Walgreens in 2025
Target’s Bet on Babies 
The Changing Apparel Landscape in 2025
Trader Joe’s and Aldi’s Continued Success
Retailers Betting on High Income Households
Brooks Brothers Rightsizing Success
The Rise of Smaller-Format Home Improvement Retailers: How Ace Hardware and Harbor Freight Are Outpacing Big-Box Chains
Walmart’s Mall Purchase: Towards a More Diversified Portfolio 
Placer.ai Named One of America’s Best Startup Employers 2025 by Forbes
Darden Weathers the Storm
Diving Into Breakfast Chains: What “Eggs”actly is Going On With Eggs Right Now? 
Placer 100 Index, February 2025 Recap 
Why Chipotle’s 2025 Outlook Looks Conservative
Sportswear in the New Year
Placer.ai February 2025 Office Index: Is The Recovery Stalling? 
Discount and Dollar Stores in a Strong Position to Start 2025
Placer.ai Mall Index: February 2025
Allbirds: Flying Towards New Opportunities
Beauty Retail: Changes, and Challenges Ahead
Who Attends the Super Bowl and the Daytona 500?
The $1B Question: Why Dave’s Hot Chicken Is a QSR Powerhouse
Kroger’s Grocery Dominance in 2025
Walmart Goes to the Mall: Insights From the Monroeville Acquisition
Gap Inc. in 2025 – Recapping 2024 and Uncovering Banana Republic’s Athleisure Opportunity 
Department Stores Providing Value in Today’s Retail Landscape
Dine Brands Maintains Their Broad Appeal
Best Buy: Fully Charged for 2025
Shopping Centers Provide Havens for Residents Affected by the LA Fires
National Retail Chains Utilize Stores to Support LA Fire Relief Efforts
Dutch Bros. & Sprouts: Beverage-Led Success
Off-Price Apparel: Off to a Strong Start in 2025
Visitation Trends and Shopping Behaviors at Walmart & Target 
Restaurant Success in 2025: Experience, Convenience, and Familiarity
Home Improvement Segment Shows Stability
Fitness Starts Strong in 2025
The Meat of the Matter: Bloomin’ Brands in 2024
The Beat of the Bowl: Visitation Patterns for CAVA and sweetgreen
Women's Sports on a Roll: Packed Stadiums, The Sports Bra Bar & Restaurant, and Impacting CRE
Year of the Dragon, Luckiest Animal in the Zodiac: Will that Luck Hold for Asian-Themed CRE?
Washington DC: How the Population in Our Nation's Capital has Evolved Following the Pandemic
What First Half 2024 Visit Trends Tell Us About What to Expect in the Second Half
What Does Walmart’s Results Mean for Other Discretionary Retailers?
Warehouse Clubs: Younger Visitors Support Growth
Wayfair: Early Impressions from Wayfair's New Wilmette Store
We're All Mad for March Madness: NCAA Women's Basketball is Breaking All Sorts of Records
Warehouse Clubs: Finding the Perfect Timing
Ulta: A Thing of Beauty
The Sweet Smell of Success: How CPG Brands are Bringing Their Brands to Life with Experiential Stores
Urban Outfitters: High Income, Specialty Fleets Still Thriving
The Silver Lining to Mall Anchor Department Store Closures
Ulta Beauty: Store Visits and Target Partnership Driving Category Market Share
The Secret to Trader Joe's Success in 2023
Tractor Supply: Visitation Share Gains Continue Despite Weather-Related Disruptions
Takeaways from the 2024 Fast Casual Executive Summit
The Lure of Waikiki and Beyond: The Feel of Fifth Avenue on Oahu?
Target: Circle Week Shows Signs of Success
Suiting Up in Boston: Newbury Street Suitsupply Store Showing Signs of Strength
Takeaways from Shoptalk Fall
Stew Leonard’s: Specialty Grocery Still a Shining Example
Small Towns, Deepening Pockets: How Migration is Changing the Face of Boise
Studs: Reinvigorating the Accessories Category
South Asian Influence on Sports, Groceries, and Malls
Starbucks: Silver Linings After a Difficult Quarter
Shopping "High-Low": Escada and Club Monaco share space in Beverly Hills
Round1 Entertainment Expands with Spo-Cha Concept
Self-Storage: More Industry Consolidation Ahead
Self-Storage: Consolidation Driving Year-Over-Year Increases in Visits
Return to Office is Hot in Miami: Placer's New Return to Office Dashboard Launches
Restaurants: Bifurcation Here Too
Self-Storage: More Consolidation as Public Storage Acquires Simply Self Storage
Return to Office Insights: Miami and New York in the Lead
RFDC Takeaways: Lessons from CAVA and Other Restaurant Visit Share Winners
Pop-Ups Drive Excitement and Foretell Brand Demand
Restaurants: Where Do We Stand After Q1 2024
Restaurant Outlook 2024: Year of New Location Expansion Plans?
Reformation: Building an Apparel Destination
Pickleball and Padel: Saviors for Malls, but Threats to Tennis Courts?
Regional Grocery Update: Consumers Seeking Out Lower Prices
QSR Visit Trends: What Gives?
Performing Arts: Takeaways from the California Presenters Conference and Spotlight on Arizona Venues
Public Storage: Self-Storage Demand Resilient
QSR Chicken: Driving the Industry's Growth
Planet Fitness: Signs of a More Resilient Fitness Club Visitor?
Parks, Recreation Centers, and Redeveloped Malls: Community Glue
Outlet Malls: Ontario Mills Leads Black Friday, Arundel Mills Tops November Visitation
Olympics Boost: PR is Priceless
Olympic Inspiration: Is the Fitness Category Bringing Home the Gold?
Outlook for Holiday Thrifting: Inflation, Sustainability, and Gen Z Fuel Growth
Oklahoma, OK!: The Opening of Tulsa Premium Outlets Kickstarts Excitement
"Must-Have" Tenants for 2025: Top Brands to Elevate Your Outdoor Shopping Center
National Restaurant Association Show Takeaways: Who’s Winning the Food Fight?
Non-Traditional Anchors: Cheers or Jeers for Those Replacing Sears?
McDonald's: Where Do Whitespace Opportunities Exist?
Megamalls: All-Day Experiences, Entertainment, and Dining
Mercado Gonzalez: This Mexican Food Hall is a Magnet
Messi Mania hits Miami and LA