Online competition has dampened most of the chain-store retail sector, with two exceptions: off-price retail and home retail. That may help explain the success of HomeGoods (TJX - Get Report) , which crosses both categories.
Sales growth grew by 7% in the second quarter, following three consecutive years of noteworthy performance: a 7% annual comp in 2014, 8% in 2015 and 6% in 2016. A strong housing market has helped sales at the store, which heavily discounts home goods.
Compared to other sectors, high single-digit growth may not look impressive, but HomeGood's competitors are hardly close. Macy's (M - Get Report) reported a comparable store sales decline of 2.5%, JCPenney (JCP - Get Report) reported a decline of 1.3%, and Urban Outfitters (URBN - Get Report) leads the pack with a decline of 4.9%, while the department store Nordstrom (JWN - Get Report) managed to eke out just 1.7% comparable-store sales growth.
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