TJX - As Retailers Cancel Factory Orders a Potential Windfall for Discounters Grows
Most retailers across the country have closed their stores because they've either been ordered to do so through state shelter-in-place orders or have voluntarily shut down to help contain the spread of the coronavirus.
Yet with China's factories back up and running again, they're finding their customers refusing shipment of the merchandise orders they previously placed because, without consumers shopping their stores, there is little need to replenish their inventory.
That creates an opportunity for off-price discount outlets like Burlington Stores (NYSE: BURL), TJX (NYSE: TJX), and Ross Stores (NASDAQ: ROST), which stock their own clothing racks with close-out merchandise, over-runs, and other other opportunistic buys. Ross has announced that it will cancel all merchandise orders through mid-June.