CivicScience | TJ Maxx Earnings Surprise, but Kohl's Favorability Still Higher

Retail

TJ Maxx Earnings Surprise, but Kohl’s Favorability Still Higher

Image Credit: Photo by Becca McHaffie on Unsplash

TJ Maxx and Kohl’s are two well-known retailers in the U.S. that offer a wide variety of products–from clothing to house furnishings, kitchen appliances and more. However, the companies’ recent third-quarter earnings reports shed light on differences that may exist between the two brands. While TJ Maxx reported earnings that beat expectations, Kohls’ missed the mark. To better understand consumer interest in discount stores, CivicScience asked more than 500,000 respondents about their experience with a variety of discount retailers, TJ Maxx and Kohl’s among them.

To this day, Kohl’s has been the more favorable discount retailer with a steady streak nearing 50%.

Everyone Is Looking for a Deal

When asked about the importance of brand and price, both TJ Maxx shoppers and Kohl’s shoppers said brand and price were equally important at 49% and 48% respectively. Despite the fact that TJ Maxx offers a number of popular and designer brands that Kohl’s does not, the data suggests that people head to discount stores for the discounts just as much as the merchandise.   

When evaluating TJ Maxx and Kohl’s from a gendered lens, it becomes clear that men much prefer Kohl’s to TJ Maxx. Women like the two stores at about the same rate, with TJ Maxx very slightly in the lead.

And it isn’t just the sexes that feel differently about these stores. Age is also a factor when it comes to choosing which company to support. Younger adults ages 18-24 frequent TJ Maxx, while those 25-54 love Kohl’s. That said, across the board, income is not an issue, with income-earners of all levels frequenting both stores. This may suggest that, once again, when it comes to scoring a deal, everyone is game. 

The Importance of Online Shopping

Both TJ Maxx and Kohl’s have an online presence; However, this seems far more important for Kohl’s customers, who do their shopping online at a 25% higher rate than TJ Maxx lovers.

The Allure of a Splurge 

Although consumers may enjoy a budget-friendly shopping experience for more regular spending, there are times when it’s appropriate to spend a little more. When it’s time to splurge, those who prefer TJ Maxx are more likely to opt for a clothing shopping spree. Whether or not that shopping spree happens at TJ Maxx or another clothier, is up for debate. Kohl’s shoppers, on the other hand, much prefer an expensive meal or liquor to a shopping spree.

Ultimately, TJ Maxx and Kohl’s appeal to different subsets of value-driven consumers; However, given TJ Maxx’s success in the third quarter, it seems that their favorability with younger female shoppers could continue to strengthen brand recognition and popularity in the future.  

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