Younger Consumers Can Lift These 3 Retail Stocks, Bank of America Says

Core Insights - Bank of America analysts believe that younger shoppers seeking value can positively influence the outlook for off-price apparel retailers [1] - The bank indicates that shares of Burlington Stores, Ross Stores, and TJX have significant growth potential [1] - Spending on value apparel among millennials and Gen Z has increased, which is seen as a positive indicator for future sales [1] Group 1: Market Trends - Demand from younger consumers is expected to benefit off-price apparel retailers like Burlington Stores (BURL), Ross Stores (ROST), and TJX (TJX) [1] - The share of spending on value apparel by millennials and Gen Z has risen by 4 percentage points over the past year [1] - Capturing younger consumers early in their earning years is crucial for maintaining brand loyalty as their incomes increase [1] Group 2: Economic Context - The recent popularity of off-priced brands is attributed to sustained high inflation over multiple years [1] - The challenge for companies in this sector is to retain customers as their incomes grow and inflationary pressures decrease [1] - Bank of America maintains a "buy" rating on Burlington Stores, Ross Stores, and TJX, all of which have seen their shares rise year-to-date, with Burlington up approximately 40% [1]