Value-focused shoppers drive Q2 traffic at off-price retailers

Cost-conscious consumers continued to fuel momentum for US off-price chains in the second quarter, with Placer.ai data pointing to strong year-on-year traffic gains at TJX, Ross and Burlington ahead of their earnings releases. By contrast, department store operators Kohl’s and Macy’s saw notable declines, underscoring the bifurcation in consumer spending.

TJX, which reports Q2 FY26 earnings on August 20, recorded same-store traffic gains across all its major banners, according to Placer.ai. HomeGoods led with a 7.4 per cent year-on-year increase, followed by T.J. Maxx at 5.9 per cent and Marshalls at 5.2 per cent. The data suggests resilience in discretionary home and apparel spend within the value segment.

Ross Stores, set to announce results on August 21, also saw robust growth. Overall visits were up 5.8 per cent in Q2 and accelerated to 7.1 per cent in July. The chain demonstrated particularly strong shopper loyalty, with 28.9 per cent of visitors returning at least twice a month.

Burlington, which reports on August 28, outperformed its peers in traffic growth. Visits rose 8 per cent year-on-year in Q2, with same-store visits up 2.5 per cent. Momentum carried into July, when traffic advanced 7.4 per cent.

In contrast, department stores struggled to sustain footfall. Kohl’s, due to report on August 27, posted a 3.4 per cent year-on-year decline in Q2 same-store visits. June proved particularly difficult, with visits down 8.8 per cent, before moderating to a 2.2 per cent decline in July.

Macy’s, which will release results on September 3, faced sharper declines. Traffic across its three banners, Macy’s, Bloomingdale’s and Bluemercury, dropped 4 per cent in Q2, with Macy’s stores alone down 10.1 per cent year-on-year in July.

Taken together, the Placer.ai data underscores a widening gap between off-price players, which are capitalising on consumers’ hunt for value, and department store chains, where traffic remains under pressure amid discretionary spending cutbacks. Investors and fashion brands alike will be closely watching whether these traffic trends translate into revenue performance when Q2 earnings are released in the coming weeks.