TJX’s Value Orientation Should Resonate Globally As Economic Uncertainty Mounts

Despite inflation, freight and labor challenges, and an unsettled economy, we believe TJX and the rest of the off-price sector are better suited than most retailers, with potential for improved merchandise availability as supply chain dislocations and shifting spending patterns upset full-price stores’ merchandise orders. We still believe TJX and its peers benefit from durable advantages over full-price apparel and home décor sellers, with strong brands, store experiences, and scale working to keep returns on invested capital high (roughly 30% average over the next decade).