Bright Future for The TJX Companies (TJX): Ross Stores, Inc. (ROST), Stein Mart, Inc. (SMRT)

Three growth prospects are expected to contribute handsomely to TJX going forward. Meyrowitz called the company’s vast global opportunities “nothing short of staggering,” adding that Germany is particularly hot amid “broad-based strength” across the region. The profitable division is expected to deliver 2-4% same-store sales growth this year, higher than any other, and long-term store total expectations have been raised as a result. Also important is TJX’s plan to launch a small-scale foray into e-commerce for T.J. Maxx in the second half of 2014, and that its December purchase of online retailer Sierra Trading Post will provide important scale and infrastructure for the endeavor. It’s fascinating to me how well TJX and its industry brethren are able to fare without offering an online component, of course the shopping mode du jour for consumers. Watch out when that changes. And finally, Meyrowitz said that as customer traffic has increased every year for the last five, the company’s concerted effort to lure younger demographics has proved successful—and importantly hasn’t hurt its important ladies apparel business as a result. Lining up future shoppers is the key to all businesses, and here TJX is doing a nice job, too.

Bottom Line

I’ve been a fan of the off-price retailing space for some time because of its resonating concept, and particularly of TJX and Ross Stores because of their operational acumen amid economic uncertainty. TJX may encounter some atypical headwinds this year based on difficult comps, consumer concerns and maybe even lingering hits due to weather, but its management team is sound and continues to build for a profitable future.

The article Bright Future for this Retailer originally appeared on Fool.com and is written by Chad Heiges.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.