HomeGoods Loves the Strong Housing Market
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.
Watch More with TheStreet:
- It's Been a Wild Week for Trump Tweets
- How Do You React to Coworkers Discussing Politics at Work?
- There Is a Reason Why Retail Is Crashing
- Consolidation Can Cut Down Your Student Loan Payments
