Are Off-Price Retailers a Coronavirus Safe Haven?
Off-price retailers TJX Companies (NYSE: TJX) and Ross Stores (NASDAQ: ROST) haven't escaped the coronavirus crisis. Like department stores and smaller apparel chains, TJX and Ross have temporarily closed stores as consumers stay home. And both companies have seen their shares drop this year -- 16% for TJX and 17% for Ross.
Earnings in the current quarter are surely suffering, and share recovery will take time. But TJX and Ross are better positioned to perform in the post-lockdown world than their full-price peers.
TJX owns TJ Maxx, Marshalls, and Homegoods stores, while Ross Stores owns stores by that same name as well as dd's Discounts. As businesses reopen in the U.S. and people return to work, these off-price players may benefit from the woes of department stores and apparel chains.
Source Fool.com
