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Deep discount chains like TJ Maxx and Marshalls are reaping the benefits of the shrinking middle class. For department stores, it's a different story

Deep discount chains like TJ Maxx and Marshalls are reaping the benefits of the shrinking middle class. For department stores, it's a different story




The shrinking middle class is bolstering deep discount chains like TJ Maxx and Marshalls, which cater to shoppers looking for value and efficiency amid a time of high unemployment.




On the other end of the spectrum, those unaffected by the economic downturn have continued to shop at high-end luxury stores, which is keeping this sector stable.




The problem exists for the stores in between, mainly department stores like Macy's or JCPenney, as the middle-class shrinks and people limit spending on non-essential items.




Visit Business Insider's homepage for more stories.



The middle class is shrinking rapidly. And that means a shift in the places people are choosing to spend their money.
Data from the Pew Research Center showed that from 1971 to 2016, the size of the American middle class decreased by 9 percentage points. Results from a 2019 INSIDER and Morning Consult survey of 4,400 Americans reflected trends of a shrinking middle class amid higher living costs.
Read more: Here's why department stores like Nordstrom and Macy's are banking on deep discount models as TJ Maxx and Marshalls emerge as winners in the pandemic
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