TJX Gets Pre-Holiday Sales Boost From Lower-Income Shoppers

Company Overview - TJX, the parent company of T.J. Maxx and Marshalls, is experiencing strong sales growth ahead of the holiday season, with a reported 5% increase in comparable sales for the quarter, primarily driven by lower-income consumers [2][3] Sales Performance - The company’s CEO, Ernie Herrman, highlighted that TJX stores are becoming increasingly popular as holiday shopping destinations, noting that the current holiday season is off to a "strong start" [3] - Herrman emphasized that the company's value proposition and unique shopping experience continue to attract consumers globally [2] Consumer Spending Trends - Despite TJX's positive outlook, a recent Holiday Spending Survey from The Conference Board indicates that consumers are expected to show more restraint in holiday spending this year, with average planned expenditures dropping to approximately $990, a 6.9% decrease from $1,063 in 2024 [5] - The survey also revealed a decline in gift budgets, which fell by 3.9% to $650, and spending on non-gift items, which decreased by 12% to $340, marking multiyear lows when adjusted for inflation [6] Demographic Insights - Notably, younger and wealthier consumers are cutting back the most on holiday spending, while those over 65 and households earning under $50,000 are expected to slightly increase their spending compared to last year [7]