TJX’s Gen Z Momentum Proves Youthful Shoppers’ Hunger for Deals

The TJX Companies is seeing young consumers join the mix, suggesting that Generation Z shoppers are looking for bargains.

The off-price retail company, parent of TJ Maxx, Marshalls, HomeGoods and others, shared on a call with analysts Wednesday (Feb. 28) discussing its fourth-quarter and full-year fiscal 2024 earnings results that it is making gains with these younger generations.

“With new customers, we continue to skew a little younger, which is what we wanted,” CEO, President and Director Ernie Herrman said during the call. “It bodes well for the future. We actually are at the point now where we over-index in the age 18 to 34.”

Gen Z seeks deals more often than the population overall, and more often than the next-youngest generations, according to PYMNTS Intelligence’s study last year, “Consumer Inflation Sentiment: The False Appeal of Deal-Chasing Consumers.” The report, which drew from a survey of more than 2,100 U.S. consumers, noted that 48% of Gen Z retail shoppers are deal chasers, willing to go wherever they will get the best price, while just 46% of the population overall, 42% of millennials, and 41% of bridge millennials fall into this group.

Plus, deal-seeking behavior remains heightened as consumers face ongoing financial uncertainties. The PYMNTS Intelligence study “New Reality Check: The Paycheck-to-Paycheck Report: The Pessimism About Pay Rises Offsets the Effect of Falling Inflation” found that 83% of consumers are at least somewhat concerned about current and near-future economic conditions.

Additionally, given the surprise-and-delight nature of TJX’s stores, with consumers unsure what the selection will hold, its banners have benefitted from social media trends such as viral hashtags.

“We believe HomeGoods is one of the most exciting store shopping experiences on the planet, really, and you’ve seen whether you look on TikTok or any of the third-party endorsements that come out on different talk shows [that have] had segments on HomeGoods lately,” Executive Vice President and Chief Financial Officer John Klinger told analysts. “It’s become a bit of a cult.”

Social media discovery plays a role in attracting Gen Z consumers, with a substantial percentage of them searching for products on social media and completing purchases at a higher rate compared to other generations.

The PYMNTS Intelligence report “Tracking the Digital Payments Takeover: Monetizing Social Media” drew from a study of nearly 3,000 U.S. consumers. It found that 68% of Gen Z consumers searched for products on social media, and 22% ultimately completed a purchase, the highest shopping rate across all generations. In contrast, 43% and 14%, respectively, of consumers across the population did the same.

This outsized engagement indicates the power of social media for retailers like TJX in enabling them to reach and convert younger consumers.

TJX Companies’ recent financial results reveal a trend of increasing engagement with younger consumers, particularly those from Gen Z, highlighting the generation’s inclination toward seeking bargains. With social media trends amplifying the stores’ surprise-and-delight appeal, the company is making further gains with these young shoppers, laying the foundation for long-term loyalty.

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