TJX Companies just posted a successful quarter, in part driven by demand from its younger shoppers.
“We have been attracting a disproportionate number of new Gen Z and millennial shoppers, which is what we really look at in terms of future growth because that’s the future higher spend,” said TJX Companies CEO Ernie Herrman in a call with analysts discussing the company’s second quarter earnings results. “So when we look out on our strategies for five to seven years, we purposely go after that.”
The off-price retailer, which owns T.J. Maxx and Marshalls, reported net sales growth of 8 percent to $12.8 billion in Q2, which beat the exceptions of analysts surveyed by Yahoo. Diluted earnings per share were $.85, up 23 percent compared to the prior year and also ahead of analysts’ expectations.
TJX said that comp store sales growth and customer traffic got increasingly better each month throughout Q2, with the trend persisting into the third quarter.
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Recently, TJ Maxx has been a popular name among young women participating in the ‘Bama Rush’ trend on TikTok, in which would-be sorority girls post their outfits of the day as they rush different sororities at the University of Alabama. As the back-to-school season gets underway, this trend has ramped up on TikTok. The hashtag #bamarush currently has 3.2 billion views on the platform and several creators are crediting Marshalls and TJ Maxx for their accessories, shoes and outfits.
In 2021, Dolce Vita was the unofficial shoe of Bama Rush. Other go-to shoes were flatforms espadrille from Steve Madden, Vince Camuto sandals and Marc Fisher wedges. Last year, sneakers had a moment moment — more specifically Golden Goose shoes. And this year, amid higher than usual prices due to inflation, some Bama rushers seem to be turning to off-price chains to get quality products without breaking the bank.
Founding partner at The Retail Tracker Marni Shapiro noted in a question to TJX executives on the earnings call that the chain is “all over” Alabama Rush on TikTok. “They all shop there, those Gen Zers,” she said.
TJX CFO John Klinger said that transaction increases have led the company to determine that it is attracting new consumers to the brand.
“They tend to be more younger customers, the more Gen Z customers, that we’re attracting, which we’re really excited about because that speaks to the longevity that we see,” Klinger said.
