Will TJX's Off-Price Model & Expansion Efforts Fuel Growth?

The TJX Companies, Inc. TJX is the leading global off-price retailer of apparel and home fashions, offering exceptional value to consumers. The company reinforces its position as a key value retailer by delivering a strong proposition, with a compelling mix of brand, fashion, quality and price. In fact, the flexibility in the company’s business serves as a key advantage in navigating the evolving macro and retail landscapes.

As part of its expansion strategy, TJX has been broadening its international footprint. TJX is seeing opportunities in its joint venture in Mexico and investment in the Middle East. TJX’s role as a trusted value leader across the US, Canada, Europe and Australia provides a strong competitive edge.

Backed by decades of international experience and a strong leadership position, TJX is poised to attract value-seeking customers across Europe and Australia. During second-quarter fiscal 2026, TJX International’s (Europe & Australia) net sales were up 13% year over year while comparable store sales rose 5%.

TJX drives its expansion by increasing its store base in existing and new markets, leveraging its global scale and off-price model to offer fresh, branded merchandise. The TJX Companies has a long-term potential for opening more than 1,800 additional stores across its existing countries and Spain.

TJX’s marketing strategy emphasizes multi-channel engagement, spanning traditional advertising, social media and influencer partnerships to have a wider consumer reach. The company’s marketing campaigns are expected to play a pivotal role in driving higher shopper traffic and sales in the forthcoming holiday season. Hence, The TJX Companies is well-positioned to leverage growth opportunities to grab market share and attain long-term success.

The TJX Companies’ Competition

Ross Stores, Inc. ROST and Dollar Tree, Inc. DLTR are the companies competing with TJX.

Ross Stores’ marketing efforts emphasize on its off-price model and consistent value through digital channels, traditional advertising and store expansion to reinforce its position as a leading off-price retailer. Ross Stores is focused with its store expansion over the years. Further, the company’s efforts to expand base by making efforts to increase penetration in the existing as well as new markets. Hence, Ross Stores aims to attract and retain a diverse customer base seeking high-quality merchandise at affordable prices.

Dollar Tree is on track with its expansion strategy, and it is working on expanding its assortment that offers highly compelling products at reasonable prices. DLTR’s focus on value, assortment and treasure hunt experience to aid store traffic appear encouraging. Dollar Tree has made significant progress in optimizing its store portfolio through store openings, renovations, re-banners and closings. Dollar Tree is encouraged by the robust sales trends on value proposition and multi-price efforts.

TJX’s Price Performance, Valuation and Estimates

Shares of The TJX Companies have gained 18.3% year to date compared with the industry’s growth of 2.3%.

From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 29.33X compared with the industry’s average of 29.68X.

The Zacks Consensus Estimate for TJX’s fiscal 2026 and fiscal 2027 earnings implies year-over-year growth of 7.5% and 10%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has been stable in the past 30 days.

The TJX Companies stock currently carries a Zacks Rank #2 (Buy). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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