TJX CEO: Potential to Add Up to 1,300+ Stores
The TJX Cos. Inc. CEO Ernie Herrman wants to capture additional market share around the world, and he plans to do so by opening more store locations.
“We are convinced that significant market share opportunities remain across the U.S., Canada, Europe, and Australia over the long term," Herrman told analysts on Wednesday during the off-price retailer's conference call on first quarter earnings results. "We see potential to further expand our store footprint by at least another 1,300-plus stores with our current retail banners in our existing countries."
TJX operates more than 4,900 stores across nine countries under the banners T.J. Maxx, Marshalls, HomeGoods, Homesense and Sierra in the U.S.; Winners, HomeSense and Marshalls in Canada; TK Maxx and Homesense in Europe; and TK Maxx in Australia.
Total Retail's Take: TJX is looking to strike while the iron is hot. For the first quarter ended May 4, net sales rose 5.9 percent to $12.48 billion. Consolidated comparable store sales rose 3 percent, on top of the 3 percent gain in the year-ago quarter. Net income jumped 20.1 percent to $1.07 billion. The bottom line is that TJX's offprice model is becoming more appealing to a larger segment of shoppers, most notably higher income segments (annual household income above $100,000) and younger buyers (Gen Z and millennials). This is a very promising development for TJX given its current strength selling to lower-income shoppers and families. With economic concerns leading to consumers pulling back on spending, TJX's assorted banners offer shoppers various merchandise options at value pricing. Given this dynamic, TJX can't open new stores fast enough.
