Consumer

Discount Retailers’ Sales Rebound With Anxious Shoppers Seeking Deals

  • Off-price retailers to see strong quarterly earnings growth
  • Analyst says consumer pressure leads to ‘flight to value’

Cost-conscious consumers will continue to lend momentum to the yearlong sales recovery for discount retailers. 

Photographer: David Paul Morris/Bloomberg
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Value retailers are holding up against a broader spending pullback as persistent anxiety over the economy and a softening job market drive shoppers to seek out discounts and deals.

Even with holiday-spending growth seen slipping to a five-year-lowBloomberg Terminal, off-price retailers TJX Cos., Ross Stores Inc. and Burlington Stores Inc. are set to post higher sales in their upcoming third-quarter reports. This is in stark contrast to high-end and luxury names such as LVMH Moet Hennessy Louis Vuitton and Tapestry Inc., which have reported slowing growth.