The Lower The Price Of The Department Store, The Stronger The Performance, The Higher The Location, The Higher The Street.

With the new earnings season of department stores last week, this trend is becoming more and more obvious. The more high-end department stores are, the weaker the stock price trend is, the lower the position is, or even the discount.

The stronger the performance of the company's stock market is.

As a discount

The benchmark enterprise TJX CompaniesInc. (NYSE:TJX) has not seen two in the past three years, and its stock price has been constantly innovating. In stark contrast, Macy'sInc. (NYSE:M) Messi department store, NordstromInc. (NYSE:JWN) Nord stelon, Kohl "sCorp." (NYSE:KSS), and the location of high-end and mid end department store retailers have been sluggish in sales, leading to layoffs and layoffs, and their performance in the open market has continued to be weak.

After the financial crisis, the global economy has gradually recovered, but now there is a new trend of recession. The BRICs, which have led the growth of the economy, have suffered from varying degrees of serious trouble except India. Brazil and Russia even experienced a recession.

Economic weakness has made consumer spending more cautious, coupled with technological development and lifestyle changes, more technology consumption and experiential consumption. Traditional department stores can not resist the impact of declining passenger traffic and tight customer packages, but without competition or habitual discount consumption, consumers are willing to take no discount without promotions.

Consumption of products.

Over the past two years, the higher the brand positioning is, the worse it is.

Under the above background, TJX CompaniesInc., which is the main concept of low price and discount, is undoubtedly one step ahead. Under the sharp decline of passenger traffic in the United States and even the global department store, all the people have lost to the brand department stores such as TJMaxx, Marshalls and Home Goods of TJX CompaniesInc..

TJX CompaniesInc. (NYSE:TJX) Jensen Quality Growth Fund investment manager Kevin Walkush said that TJX is the best retail mode. The company is killing a blood stream in the current market howl, and it is most sustainable in the process of accelerating the retail industry.

There is no doubt that the best mode is the lowest price, especially in the retail market under the current economic downturn, fierce market competition and pparent exchange rate fluctuations.

At the same time, the low price brings TJXCompaniesInc. traffic to the company at the same time, it also brings sustained sales growth for the same store. After that, only TJXCompaniesInc. is the only thing that can be achieved after the financial crisis.

KimForrest, a senior stock analyst at FortPittCapitalGroup, said that such low discount department stores like TJX CompaniesInc. and Ross Stores (NASDAQ:ROST) can continue to outperform the market because their businesses are very robust and have the right mode.

She also regretted not holding shares of the two companies, especially the former, and expressed the hope that if their shares fell, they would absorb.

However, KimForrest should take a big chance of falling down.

TJX CompaniesInc. (NYSE:TJX) has surged over 50% in the past two years, and has also risen 17% this year, while the S&P500's S & P 500 index was only about 7% higher during the same period.

While TJXCompaniesInc. has better expectations for the upcoming quarterly results, and the previous department stores have released super expected quarterly results, TJX CompaniesInc. shares are still more likely to continue to refresh their new highs.

ChristinaBoni, a senior analyst at Moody'sInvestorsService Moodie, a rating agency, said that the ability of low prices to retain consumers in the retail industry is hard to catch up with.

He said that there is a sense of urgency for consumers to enter such a department store, so they must immediately pay for shopping because they do not want such cheap products to be taken away by someone else.

In the past few years, luxury goods have been known as a "niche market", but such words and reputation are getting weaker and weaker. On the contrary, the low price industry with TJXCompaniesInc. and Primark is the real niche market, because its mode can stand in any economic environment and fierce competition market.

On the contrary, you can't imagine how luxury and high-end industries can enter the low-end market, though luxury goods and high-end department stores have actually gone down through high discounts, low prices and low priced products.

Burt Flickinger, general manager of Strategic Resources Group, a retail consultancy, said consumers were actually inclined to divert to low-end brands of high-end department stores.

In the past few years, Macy'sInc. Messi stores, NordstromInc. Nord and Kohl sCorp. have been developing low prices.

Macy'sInc. Messi stores and Kohl 'sCorp. sCorp. launched Macy'sBackstage and Off-Aisleby Kohl's's low price brands respectively last year, while NordstromInc. North Teflon launched NordstromRack earlier, while Nordstrom Rack has been doing well, maintaining double-digit growth and increasing the number of stores.

The low-priced brands of the high-end department stores can provide as low as ninety percent off of the products, and in such a trend, consumers will no longer buy full price products.

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According to NPD Group's data tracking agency Checkout Tracking, 2/3 of consumers in the United States spend at low price channels, while consumers at low prices occupy 75% of the total clothing consumers. Therefore, it can be seen that consumers of fashion categories are more keen on low-priced channels. This is also an important reason for the continuous decline of sales of high-end department store clothing and leather goods such as Macy'sInc. Messi department store, NordstromInc. Nord and so on. Now, the cooperation between brands such as Coach, MichaelKors and other brands has been getting worse and worse.

The department stores blame the luxury brand for its lack of customer loyalty and hard sell, while the luxury goods complain that the discount is too severe and the brand image is damaged.

NPD Group said that the growth rate of the low price industry is second only to the growth rate of the electricity supplier industry.

Columbia University's Graduate School of Business, Professor Mark Cohen of Columbia University business school, said that the retail industry has not had much increment, and the increment of individual enterprises is only the pfer of other enterprises.

He also said that the low-priced brands launched by these high-end department stores in Messi's department store in will damage the brand of Macy's Messi store in the long run.

In fact, the worries of Mark Cohen also exist in the luxury industry. In early 2015, Chanel Cohen took the lead in China's discount and triggered a collective price cut in the whole industry, which also led to differences in the luxury industry. Louis Vuitton Louis Weedon sneered at the practice of Chanel Chanel, and ChanelSA Maureen CEO Maureen Chiquet was fired.