TJX to Open a Chain of Home Goods Stores
Off-price retailer TJX has been stealing apparel sales from department stores for several years. Now, it has another category in its crosshairs: home decor. The parent company of T.J. Maxx and Marshalls told investors on Wednesday that it will open a new line of home goods stores this year. The concept will be complementary to its existing chain of HomeGoods shops that sells pillows, lamps and accents. TJX CEO Ernie Herrman said the company will open four U.S. stores under its new nameplate this year.
Total Retail's Take: TJX is trying to strike while the iron is hot. The off-price retailer has been an outlier in recent years as a brick-and-mortar company that has managed to grow sales without an e-commerce presence. In fact, those increased sales are coming at the expense of department store chains such as Macy's, J.C. Penney and Sears. A move into home goods is another challenge issued to those department stores, as well as others in the space such as Pier 1 Imports and Ikea. As others try to adapt their businesses to today's digital consumers, TJX is doubling down on brick-and-mortar. An interesting approach, to say the least, but I guess you don't fix what's not broken.