Where consumers are seeking out value in an uncertain economy
January 30, 2026
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2 min
Mirova Equity Analyst Cindy Huang breaks down why both affluent and lower-income consumers are flocking to off-price retailers amid ongoing inflationary pressures and geopolitical uncertainty. She takes a closer look at the TJX brand, how it is winning over consumers at all asset levels, and why its sustainable footprint is attractive to investors.
Key takeaways
- Today, both higher- and lower-income consumers are increasingly shifting toward value-based purchases due to inflationary pressures, diminishing purchasing power, and geopolitical uncertainty.
- Companies that can address this shift and align with consumers’ priorities could be well positioned to capture a larger market share.
- One example of a company successfully capturing value-conscious consumers is TJX, parent company of off-price retailers such as T.J. Maxx, Marshalls, and HomeGoods.
- By offering products at substantial discounts – typically 40% to 70% off traditional retail prices – TJX significantly enhances its appeal with customers and strengthens its retail advantage, especially during challenging economic environments.
- Although TJX offers a diverse range of products that may not be inherently sustainable, we believe the company is actively providing solutions that align with the principles of the circular economy and the waste hierarchy (Reduce, Reuse, Recover ).
- By giving many products a second chance to be sold at a discount, TJX offers a preferable, and more sustainable, alternative to products being discarded.
