Macy’s launch of its own chain of off-price discount stores under the banner Backstage is but the latest entry in the category to both mirror and challenge TJX, the dominant player in the space. This fight could end badly — for Macy’s. Framingham, Mass.-based TJX operates banners such as T.J. Maxx, Marshalls and HomeGoods. Its stock has rode the parent’s market leading position and growth over the years to close at $76.78 per share on Tuesday, not only near a 52-week-high, but also close to an all-time-high of $76.93, due to solid second quarter results. Those results included a 6% increase in both comparable store sales and net sales, and a boost in earnings for the quarter ended Aug. 1. The off-price retailer has reached this lofty status while its department store rivals have largely struggled in recent years. Macy’s and its brethren clearly see the discount category as a growth area. But it is one in which TJX enjoys several important advantages.
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