The Off-Price Sector, Long Retail’s Favorite, Could Be Losing Steam In 2018

Retail’s darling could be in trouble in the new year. As shoppers have flocked to off-price stores like TJ Maxx and Marshalls for a less-expensive, one-stop shopping fix, sales mushroomed and put added pressure on America’s department stores. For much of 2017, Wall Street cheered the unique “treasure hunt” experience these stores provide, saying the model is largely “Amazon proof” and difficult to replicate online. That said, soaring sales in the sector may be slowing, according to Wells Fargo analyst Ike Boruchow. In a Wednesday note to clients, he wrote that TJX (owner of TJ Maxx, HomeGoods and Marshalls), Ross Stores and Burlington could see lower sales in the fourth quarter and into fiscal 2018. Read more at CNBC.