The TJX Companies, Inc. ( TJX Quick Quote TJX - Free Report) is benefiting from strength in its HomeGoods segment. Also, the company’s marketing strategies along with robust loyalty programs are noteworthy. Moreover, it is taking initiatives to enhance offline and online businesses. Such upsides have helped shares of this Zacks Rank #2 (Buy) company gain 26.6% in the past three months compared with the industry’s growth of 13%. Let’s delve deeper and see if this renowned off-price retailer can keep its splendid run on in 2021. Strength in HomeGoods Segment
TJX Companies’ HomeGoods segment has been seeing robust demand off late. During the third quarter of fiscal 2021, open-only comp store sales were up 15% year over year in the HomeGoods (U.S.) segment. The company’s aggressive expansion of HomeGoods in the last five years has positioned it to capture outsized home market share. Incidentally, management plans to rollout e-commerce services on HomeGoods.com during the end of the next year to leverage its strength in the home category and capitalize on market share growth. We believe that continuation of this trend is likely to keep driving the company’s performance in the future.
What Else is Driving TJX Companies Growth?
TJX Companies is committed toward boosting growth, through effective marketing initiatives and loyalty programs. Incidentally, the company’s aggressive marketing and advertising campaigns through multiple mediums (TV, radio and social media) have been adding growth. In fact, the company’s marketing campaigns aided top-line growth in the third quarter of fiscal 2021. Moreover, management expects its holiday marketing campaigns to drive customer traffic.
Apart from this, TJX Companies’ gift-giving initiatives, unique among off-price retailers and loyalty card program (which offers consumers a non-credit card choice and soft benefits such as early shopping hours) have been helpful in improving customer engagement. TJX Companies has been benefiting from its solid store and e-commerce growth efforts. With increasing number of consumers resorting to online shopping, management has undertaken several initiatives to boost online sales and strengthen its e-commerce business. Notably, the company is on track to add new categories and brands to its U.S. and U.K. online businesses. In fact, it is planning to offer a wider range of gifts online during the holiday season. Apart from this, the company regularly opens stores and expands fast across the United States, Europe, Canada and Australia. Notably, TJX Companies opened 17 new stores in the fiscal third quarter, taking the total count to 4,574. We believe that TJX Companies’ off-price model along with its strategic store locations, impressive brands and fashion products are likely to aid its performance, both in stores and online. All said, it looks like TJX Companies is set to keep its robust show going in 2021. More Solid Retail Picks DICK’S Sporting Goods ( DKS Quick Quote DKS - Free Report) , which sports a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 5.6%. You can see . the complete list of today’s Zacks #1 Rank stocks here Five Below, Inc. ( FIVE Quick Quote FIVE - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 21%. Target ( TGT Quick Quote TGT - Free Report) , which carries a Zacks Rank #2, has a long-term earnings growth rate of 8.5%. Just Released: Zacks’ 7 Best Stocks for Today
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