Off-Price Retail Is Turning Into a Bad Bet

For years, off-price chains were the "sweet spot" in retail as discount brands put up steadily growing comparable sales as they opened new stores. As department stores floundered, analysts said chains like TJX Companies (NYSE: TJX), the parent of T.J. Maxx and Marshall's, were succeeding with a model that couldn't easily be outsourced to the web. With low prices and the "treasure hunt" effect, which draws shoppers to find an ever-rotating selection of items, TJX was thriving.

However, that golden age of off-price retail seems to be coming to an end as recent results from TJX and Nordstrom (NYSE: JWN) Rack show those chains are starting to experience the same problems that have plagued other apparel retailers.

Image source: Getty Images.

Source: Fool.com