One of my favorite retail analysts is Adrianne Shapira of Goldman Sachs (NYSE:GS) . In a recent interview on CNBC, Shapira said that two trends would define this year’s back-to-school shopping season: value and brands. Value, as in consumers wanting to get the most for their limited dollars, and brands, as in the time-tested names consumers already know and trust. That means there are two types of companies that will likely do well—value oriented stores and the most trusted brand names.
In the former category is discount clothing/department store retailer T.J. Maxx, which is operated by parent TJX (NYSE:TJX). The company, which also operates Marshalls and HomeGoods stores, saw a 7% surge in the all-important same-store sales metric in July. That was far better than most on Wall Street expected. This company is a profile in value offerings, but it also offers discounted brand-name items popular with consumers. TJX is perfectly positioned to take advantage of both the value trend and the brand trend.