T.J. Maxx and other retailers under TJX to benefit the most from Macy’s closures
- Macy’s plans to close 150 underperforming stores in the next five years
- Off-price retailers, particularly TJX’s T.J. Maxx, will benefit the most
- Competitors and other Macy’s stores could gain billions in sales from the closures
- 63% of Macy’s stores operate within a mile of a T.J. Maxx or Marshalls
- Nearly half of TJX and Macy’s customers have an annual household income above $100,000
- T.J. Maxx is the leader in overlapping customers with Macy’s
- Macy’s customers dedicate the largest portion of their department store spending at TJX retailers
- TJX has been steadily gaining market share in apparel and footwear
- Bed Bath & Beyond closures are also expected to benefit off-price retailers
- Increased market share-gaining opportunities exist for TJX
Macy’s plans to close 150 underperforming stores in the next five years, and this is expected to be a boon for off-price retailers. According to research from Jeffries analysts and Earnest Analytics, TJX, particularly its T.J. Maxx banner, is predicted to benefit the most from these closures. Competitors and other Macy’s stores could potentially gain billions in sales from the closures. Proximity plays a significant role, as 63% of Macy’s stores operate within a mile of a T.J. Maxx or Marshalls. Nearly half of TJX and Macy’s customers have an annual household income above $100,000, indicating commonalities between their customer bases. T.J. Maxx leads in overlapping customers with Macy’s, with 37% of Macy’s customers also shopping there. Macy’s customers allocate the largest portion of their department store spending at TJX retailers. TJX has been steadily gaining market share in apparel and footwear, while Macy’s has experienced a decline. The closure plans align with the trend of off-price retail gaining market share. Bed Bath & Beyond closures are also expected to benefit off-price retailers, providing increased market share-gaining opportunities for TJX.
Factuality Level: 8
Factuality Justification: The article provides detailed information supported by research from Jeffries analysts and Earnest Analytics. It presents data on the overlap between Macy’s and off-price retailers, particularly TJX, and how Macy’s closure plans could impact the market share of different retailers. The information is specific and relevant to the main topic without including irrelevant details or biased opinions.
Noise Level: 3
Noise Justification: The article provides a detailed analysis of the impact of Macy’s store closures on off-price retailers, particularly TJX. It includes data and insights from research analysts to support its claims. The article stays on topic and does not dive into unrelated territories. It offers actionable insights for investors and industry stakeholders.
Financial Relevance: Yes
Financial Markets Impacted: Off-price retailers, particularly TJX and its T.J. Maxx banner
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Rating Justification: The article discusses the impact of Macy’s plans to close 150 underperforming stores on off-price retailers, particularly TJX and its T.J. Maxx banner. It highlights the potential for billions of dollars in sales to be gained by competitors and other Macy’s stores. While this is significant for the retail industry, there is no mention of any extreme events or their impact.
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