One of the big concerns that investors in retail chains have is the ability of a department store to clear out dated inventory which has been sitting in stores ever since lockdowns began. It still isn’t clear how customers will spend on apparel and home fashions given the economic damage and job losses that have transpired over the last couple of months.
In such an uncertain scenario, businesses like TJX Companies Inc are well placed. The off-price retailer might benefit from higher demand for value purchases. When customers return to shopping, they could focus on making purchases that allow them to save money.
When many people think about TJX, they think about TJ Maxx stores. However, the business is very well-diversified. It has brands such as HomeGoods, Marshalls, HomeSense, and Sierra Trading Post under its belt. Together, they sell most of the things that people need in their homes. So, TJX Companies can be a decent bet for the future.
TJX has started to get back on its feet. It has been selling goods through its website. However, the number of orders each day is capped so that safety protocols can be followed. According to CEO Ernie Herrman, “As various states and countries re-open businesses and we re-open our own stores and e-commerce websites, health and safety will remain a very important consideration.”
TJX Companies Inc stock is currently trading at $50. The stock fell more than 40% from its pre-pandemic highs and has since pulled back by more than 35%. It is following the S&P 500 in its bounce back. TJX shares closed at $50.26 on 19th May 2020, up 2.47% for the month.