Off-Price Retail Is Turning Into a Bad Bet
Both TJX, which also owns Home Goods, and Nordstrom are making big bets by adding more off-price stores. Meanwhile, comparable store sales at Nordstrom Rack plunged 5%, and are down 2.3% so far this year. Retailers generally look to open more stores as long as underlying growth can support it, but what happens when comparable sales suddenly slow like they are with TJX and Nordstrom Rack? Opening new stores will only work until it doesn't, and even the off-price retailers like Ross and Burlington that are still seeing growth need to keep that in mind.