Market Hit: Leverage CE Data to monitor off-price retailers traffic growth and age demographics

Following another quarter of sales growth, off-price retailers TJX and ROST cited increased traffic and marketability across age demographics as drivers of performance. CE data shows that TJX is growing among the youngest and oldest shoppers, whereas ROST experienced a rise in traffic among the middle-aged cohorts. 

Off-price retailer TJX Companies, Inc. (TJX) recently reported US Sales Growth of 5.3%, close to CE Implied Reported Growth of 5.0% and below consensus of 5.6%. 

Attracting a Diverse Shopper Base

Off-price retailer Ross Stores, Inc (ROST) reported net sales of 8.1%, in line with CE Implied Reported Growth of 8.1% and above consensus of 7.4%. 

After another quarter of revenue growth, TJX management noted their ability to “attract new Gen Z and millennial shoppers,” boding well for future growth, while ROST mentioned an increase in traffic being the main driver of quarterly growth. CE data shows that among Gen Z and millennial shoppers, defined as shoppers under the age of 35, TJX outperformed competitors ROST and BURL, though the growth was minimal.

One positive sign for TJX is that it experienced an increase in transactions among both the youngest and oldest cohorts, which could speak to how its product offerings appeal across age demographics. Shifting to ROST, the retailer experienced an increase in traffic among the middle-age shoppers, while experiencing slight declines in traffic among the youngest and oldest demographics.

This could spell trouble for ROST as their brand may not be resonating with younger shoppers as much as competitors such as TJX.  Clients can utilize CE cohort tools to monitor traffic among different age demographics at off-price retailers such as TJX and ROST in the months ahead. 

Consumer Edge is the leading provider of alternative data for consumer spending behavior, and the only provider of global revenue signals. If you’d like to benefit from using CE Transact US, CE Vision, or other products for department stores insights, market intelligence, and other industry data year-round to track trends and market hits like these, reach out to request a demo.

About the Authors

Michael Gunther is the VP Head of Insights for the CEIC. Explore more of his insights here and follow him on LinkedIn.

Harsh Masher is an Insights Analyst for the CEIC.