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

T.J. Maxx/Marshalls parent TJX says it is seeing robust sales ahead of the holidays.

The off-price retailer released earnings Wednesday (Nov. 19) showing a 5% uptick in comparable sales for the quarter, driven by lower-income consumers.

“We believe this is a testament to our value proposition and treasure-hunt shopping experience, which continue to draw consumers to our retail banners worldwide,” Ernie Herrman, TJX’s chief executive, said in a news release.

Speaking to analysts during the company’s earnings call, Herrman said TJX’s stores are increasingly becoming a destination for the holiday shopping season, which he said was off to a “strong start” for the year.

“Every year, our Q4, as you’ve seen, it’s been one of our steadiest performing quarters where we have become more of a gift giving destination,” he said.

“And I think that’s at the root of it. I think we’ve also talked about this, the social media, the coolness of shopping at a TJX store, whether it’s Marshall’s or Sierra or HomeGoods or T.J. Maxx, you probably, I don’t know if you see them. A lot of our reusable bags show up with shoppers that bring them to their supermarket. Because we’ve made such an impact on consumers and they find us to be a desirable place to show their brand.”

TJX is expressing confidence at a time when others are expressing doubt about this year’s holiday shopping season.

For example, the latest Holiday Spending Survey from The Conference Board found that consumers will be showing more restraint this year when it comes to holiday gift giving.

The survey, released last week, found that the average consumer plans to spend about $990 on holiday-related purchases. This number represents a 6.9% decline from $1,063 in 2024 and is almost in line with holiday spending plans from 2023.

“Several years of relatively high inflation have raised price levels and squeezed consumers’ wallets,” Conference Board Senior Economist of Global Indicators Stephanie Guichard said in a news release.

The downturn is particularly noticeable in both gift budgets, which dropped 3.9% to $650, and spending for non-gift items such as food and decorations, which fell by 12% to $340. Adjusted for inflation, these figures come to multiyear lows.

“What’s interesting to note is that younger and wealthier consumers are cutting back the most on holiday spending,” PYMNTS wrote about the findings. “Contrast that with those over 65 and households earning under $50,000 expecting to slightly increase their spending compared to last year.”