The news: Off-price retailers’ momentum accelerated in Q1 2026 as consumers flush with tax return checks flocked to their stores.

• Ross Stores recorded a 21% YoY increase in revenues, while same-store sales jumped 17%.
• TJX’s Marmaxx division increased comparable sales by 6% YoY, while its HomeGoods brand saw an even larger 9% increase.

Behind the numbers: Both companies credited their robust growth to an increase in customer traffic.

• Ross Stores said that its comparable sales growth in the quarter was mostly driven by higher transactions, which in turn was fueled by an increase in customers across income levels, ethnicities, and age groups.
• TJX noted that sales trends were strong across regions and income demographics, underscoring its broad-based appeal.

While fellow off-price operator Burlington Stores has yet to report Q1 results, foot traffic data from Placer.ai indicates a similar trend, with visits up 7.7% YoY.

Implications for the retail industry: TJX’s and Ross’ continued success speaks to the appeal of the off-price model in times of uncertainty. With price being by far the most important consideration for US adults when deciding where to shop, off-price retailers are ideally placed to continue vacuuming up discretionary dollars.

At the same time, their growth reflects investments these companies have made in assortments, marketing, and store experience.

• Both Ross and Burlington are elevating their inventories to attract a more affluent customer, which appears to be paying off.
• At the same time, off-price retailers are honing their marketing strategies to attract younger shoppers and emphasize their value to price-sensitive consumers.
• Store investments are also playing a key role in increasing off-price’s appeal to shoppers, with both TJX and Ross devoting more resources to improving the in-store environment and ensuring a steady flow of fresh, on-trend inventory.