Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Moldova Criticizes Russia Amid Transdniestria Energy Crisis 
Oil Prices Dip Slightly Amid Focus on Russian Sanctions and U.S. Inflation Data 
Indonesia Surprises Markets with Interest Rate Cut Amid Currency Pressure 
Moody's Upgrades Argentina's Credit Rating Amid Economic Reforms 
U.S. Treasury Yields Expected to Decline Amid Cooling Economic Pressures 
Wall Street Analysts Weigh in on Latest NFP Data 
Trump’s "Shock and Awe" Agenda: Executive Orders from Day One 
U.S. Stocks vs. Bonds: Are Diverging Valuations Signaling a Shift? 
UBS Projects Mixed Market Outlook for 2025 Amid Trump Policy Uncertainty 
S&P 500 Relies on Tech for Growth in Q4 2024, Says Barclays 
Global Markets React to Strong U.S. Jobs Data and Rising Yields 
Geopolitical Shocks That Could Reshape Financial Markets in 2025 
UBS Predicts Potential Fed Rate Cut Amid Strong US Economic Data 
US Futures Rise as Investors Eye Earnings, Inflation Data, and Wildfire Impacts 
Energy Sector Outlook 2025: AI's Role and Market Dynamics 
Fed May Resume Rate Hikes: BofA Analysts Outline Key Scenarios 
The US off-price apparel and home products segment continues to grow rapidly as consumers who developed a taste for cheaply priced luxury goods during the recession keep up their hunt for bargains, Moody's Investors Service says in a new report. The off-price segment is expected to outperform the broader US apparel and home sector for at least the next five years.
Off-price stores sell a wide array of goods from major-label brands at 20% to 80% less than their original price. Offerings include clothing, jewelry, cosmetics, kitchen goods, linen and home décor.
"The off-price segment will continue to do better than the overall apparel and home sector into the foreseeable future," says Vice President - Senior Credit Officer, Scott Tuhy. "Major incumbents TJX, Ross Stores and Burlington are leading the way at a time when the broader and highly fragmented apparel sector is growing at a tepid pace."
Moody's expects growth in the off-price segment to be in the range of 6% to 8% over the next five years, compared with 4% for the wider apparel and home industry, Tuhy says in "Off-Price Apparel and Home Will Continue to Lead Overall Retail Sector." And the segment continues to gain traction. Macy's, Inc. is the latest company to seize on the concept, announcing it will open six Macy's Backstage off-price stores in metropolitan New York this fall, while Nordstrom, Inc. opened 27 of its 31 planned Nordstrom Rack stores last year.
While there is still plenty of room for competitors, they'll face challenges in competing with the established players. "Consumer appetite for discount luxury is such that newcomers will hardly make a dent in the incumbents' already significant market share," Tuhy says. "While high-end department stores will continue to open off-price stores at an above-average pace, we expect incumbents such as TJX, Ross Stores and Burlington to remain the leaders in the off-price segment."
Those companies benefit from significant scale, flexible purchasing ability, strong vendor relations and adaptable real estate strategies, Moody's says. High demand for bargains and a lack of supply constraints will continue to boost their growth. Indeed, collectively these retailers plan to open 185 new stores this year, following up on the 180 that opened their doors in 2014.
