TJX Cos Inc-The Stock

The TJX Companies, Inc., together with its subsidiaries, operates as an off-price apparel and home fashions retailer in the United States and worldwide.

The company has stores and distinctive branded e-commerce sites that offer a rapidly changing assortment of quality, fashionable, brand name and designer merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty, and major online retailers) regular prices on comparable merchandise, every day.

In the company’s stores and online, the company offers consumers its value proposition of brand, fashion, price and quality. The company’s opportunistic buying strategies and flexible business model differentiate the company from traditional retailers. The company offers a treasure hunt shopping experience and a rapid turn of inventories relative to traditional retailers. The company reaches a broad range of customers across income levels with the company’s value proposition on a wide range of items. The company’s strategies and operations are synergistic across its retail chains.

Segments

The company operates through four main segments: Marmaxx and HomeGoods, both in the U.S., TJX Canada and TJX International. In addition to the company’s four main segments, the company operates the Sierra business. The results of Sierra are included with the Marmaxx segment.

Marmaxx

The company’s T.J. Maxx and Marshalls chains in the United States (‘Marmaxx’) are collectively the largest off-price retailer in the United States. Both chains sell family apparel (including footwear and accessories), home fashions (including home basics, decorative accessories and giftware) and other merchandise. The company primarily differentiates T.J. Maxx and Marshalls through different product assortment, including an expanded assortment of jewelry and accessories and a high-end designer department called The Runway at T.J. Maxx and a full line of footwear and a broader men’s offering at Marshalls, as well as varying in-store initiatives. This differentiated shopping experience at T.J. Maxx and Marshalls encourages the company’s customers to shop both chains. Marmaxx operates e-commerce sites, tjmaxx.com, launched in 2013 and marshalls.com, launched in 2019.

Sierra, acquired in 2012 and rebranded from Sierra Trading Post in 2018, is a leading off-price retailer of brand name active and outdoor apparel, footwear, and gear (including sporting goods, snow and water sport, camping, fishing) for the whole family, as well as home fashions and pet. Sierra operates retail stores in the U.S. and sierra.com.

HomeGoods

The company’s HomeGoods segment operates HomeGoods and Homesense chains. HomeGoods is the leading off-price retailer of home fashions in the U.S. Through its stores and its e-commerce site, homegoods.com, launched in 2021, HomeGoods offers an eclectic assortment of home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop and cookware, as well as expanded pet and gourmet food departments. In 2017, the company launched its Homesense chain in the U.S. The company’s Homesense stores complement HomeGoods, offering a differentiated mix and expanded departments, such as large furniture, ceiling lighting and rugs, as well as a general store and an entertaining marketplace.

TJX Canada

The company’s TJX Canada segment operates the Winners, HomeSense and Marshalls chains in Canada. Winners is the leading off-price family apparel and home fashions retailer in Canada. Winners operates stores, with select stores offering jewelry and some featuring The Runway, a high-end designer department. HomeSense introduced the off-price home fashions concept to Canada in 2001. This chain operates stores and offers an array of home decor, basics, furniture, and seasonal home merchandise. Marshalls, launched in Canada in 2011, operates stores and offers off-price values on family apparel and home fashions. Marshalls has an expanded dress department, and The CUBE, a juniors’ department.

TJX International

The company’s TJX International segment operates the T.K. Maxx and Homesense chains in Europe and the T.K. Maxx chain in Australia. T.K. Maxx introduced off-price retail to Europe and remains Europe’s only major brick-and-mortar off-price retailer of apparel and home fashions. With stores in Europe, T.K. Maxx operates in the U.K., Ireland, Germany, Poland, Austria and the Netherlands. Through its stores and its e-commerce site for the U.K., tkmaxx.com, T.K. Maxx offers a merchandise mix similar to T.J. Maxx. The company brought the off-price home fashions concept to Europe, opening Homesense in the U.K. in 2008 and in Ireland in 2017. Its stores offer a merchandise mix of home fashions similar to that of HomeGoods in the U.S. and HomeSense in Canada. The company acquired Trade Secret in Australia in 2015 and re-branded it under the T.K. Maxx name during 2017. The merchandise offering at T.K. Maxx in Australia's 74 stores is comparable to T.J. Maxx.

Distribution

The company operates distribution centers encompassing approximately 26 million square feet in six countries. These centers are generally large, and built to suit the company’s specific, off-price business model, with a combination of automated systems and manual processes to manage the variety of merchandise the company acquires. The company ships substantially all of its merchandise to the company’s stores through a network of distribution centers, fulfillment centers and warehouses, as well as shipping centers operated by third parties.

Strategy

Expansion of the company’s business through the addition of new stores continues to be an important part of the company’s global growth strategy.

Trademarks

The company has the right to use its principal trademarks and service marks, which are T.J. Maxx, Marshalls, HomeGoods, Winners, Homesense/HomeSense, T.K. Maxx, Sierra and Sierra Trading Post, in relevant countries.

Seasonality

The company’s business is subject to seasonal influences. In the second half of the year (year ended January 2023), which includes the back-to-school and year-end holiday seasons, the company generally realizes higher levels of sales and income.

History

The TJX Companies, Inc. was incorporated in 1962.