Despite Retail Decline TJMaxx Sees Growth In Customer Loyalty & Sales

With almost every retail chain closing stores across the US, many believe that the retail apocalypse is upon us. Thanks to the skyrocketing traffic and sales at the e-commerce giant Amazon, the foot traffic in most retail stores is declining and as a result we are seeing cutbacks. However,TJX is an exception, the company behind the favorite TJMaxx. They have reportedly seen growth in promoter score and continues to have positive store traffic.

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TJMaxx’s low prices and great value are what is driving this positive outcome even in the murkiest of times for the retail industry. According to a survey by Morgan Stanley, TJX had a growth of 3% in customer loyalty which placed it at number two. Obviously at the top was Amazon but the difference in the score was quite significant with the e-commerce company showing 14% increase. However, in price satisfaction TJMaxx beats them as 60% of the respondents said that their prices were the lowest for clothing.

It looks like the positive numbers will continue to sustain in the upcoming months too as in the same survey, 28% respondents said that they would buy from the retailer again. Other brands that saw some positive growth this year are Zara, Old Navy and Victoria Secret. These are not exactly from the discount territory where Amazon is slowly taking the reins. The ease, low prices and variety is allowing the company to take market shares from some of the biggest names in retail. Nevertheless, stores like TJMaxx have strong online presence as well and continue to offer great discounts. Another advantage of shopping online from this store is that customers can use coupon codes to bring the prices further down. This is exactly what is allowing it to sustain the competition.

This is some good news but the retail decline is still rampant. Low prices which is basically the motto of TJX has helped them sail through but for others especially those targeting specific niches the times are not so good. Not just TJMaxx, the other two chains Marshals and HomeGoods of TJX are doing pretty good too. They too have reported positive foot traffic in their retail locations and have seen growth in customer loyalty.