Consumer Knowledge Spurs T.J. Maxx and Ross' Success
TJX delivered a three percent comparable store sales increase and a 17 percent increase in net income in the second quarter. Ross Stores comps gained four percent in the second quarter in addition to a strong increase in earnings. Neither TJX nor Ross is getting their comp gains by pushing unprofitable discounts. Evidence that both stores have proven particularly good at translating customer knowledge into additional sales comes from their track record with new product categories.