TJ Maxx and Home Goods Parent TJX Companies, Inc Hits All Time High

The low cost retailer WalMart has carved out a huge niche in the United States and abroad.  This niche started with the idea that a retailer could offer extremely low prices on all products.  A more recent retail model similar to this is TJX Companies, Inc.  TJX Companies, Inc owns TJ Maxx, Home Goods and Marshalls.  All of these retail locations offer brand names at very affordable prices every day of the year.

No Sales and Deals Needed

Just yesterday RWB Press mentioned the JCPenney pricing model and how it was not working.  By not having weekly sales and deals customers are getting frustrated as they are not saving as much money as they desire.  TJX Companies has stores that do not offer weekly sales and deals but they offer rock bottom prices on all of their merchandise.  It is not uncommon to find a $450 Michael Kors handbag for $220.  This pricing model has worked for quite some time for TJX Companies and they do not have to color coat their deals like JCPenney.

Photo by RetailByRyan95 via Flickr

Although Memorial Day, Labor Day, July 4th and Black Friday bring huge sales and deals at most major retailers stores like Marshalls, TJ Maxx and Home Goods do not take part in these events.  In all reality, there is no reason for these stores to do this as they all ready have the best prices around.  It is very difficult for customers to find any better deals than the ones offered at these locations.  This is the reason this retailer has hit an all time high of $43.48 while JCPenney is at yearly lows under $25 a share.

Low Cost Retailers Continue to Produce Record Profits

WalMart, Dollar Tree, Dollar General and TJX Companies have all reported record earnings in the last several quarters.  This comes as no surprise as there are several analysts who feel as if there are two places to make money in the current retail environment.  Retailers should be a speciality retailer like Lululemon or Micheal Kors or a discount retailer.  If a retailer is stuck somewhere in the middle they are struggling greatly.  If investors need a visual to see this at play they can simply look at the stock price of Walgreens, JCPenney or Sears Holdings over the last few years.  These stocks hover at break even while names like Lululemon and Dollar Tree are up over 250% since the credit crisis bottom.