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/BloombergThis article is for subscribers only.
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-low, 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.