Off-Price Retailers Grab Market Share, Sales While Department Stores Falter
For years off-price retailers (stores that sell high-quality products cheaply) have taken sales away from department stores, forcing many to close stores and issue massive layoffs, and experts do not expect that trend to change anytime soon.
Moody’s Investors Service recently projected off-price retail sales will grow 6% to 8% this year, Retail Dive reports, while department stores' sales continue to limp along. Among the various off-price retailers, including attempts by Macy’s and Kohl’s to enter the market, experts said TJX Cos, Ross Stores, Burlington and Nordstrom Rack are expected to dominate this year.
TJX is the only one with a strong global presence, and the firm said it plans to operate 5,600 stores in the long run, up from its current 3,785. Other off-price retailers have plans to build out, and for now experts said there is still room for competition in the sector. [RD]