STATEN ISLAND, N.Y. -- If you’ve ever browsed the racks at T.J. Maxx, you know all about the thrill of the hunt. One simple shopping trip could net you a Dooney & Bourke handbag, North Face puffer and two sets of Calvin Klein sheets -- all for under $150. Throw in a little Manuka honey and a bottle of Juicy Couture perfume as you snake your way to the register, and you’ve had a pretty impressive day.
But as the entire world seems to be stepping away from in-person shopping habits, and big box brands like Walmart and Target continue to close locations throughout the country, does the idea of digging for designer merch still work? According to the company’s latest quarterly report, it most certainly does.
“The strength and flexibility of our off-price business model, depth of our organization’s expertise, and our wide demographic reach all give me great confidence in our ability to continue to succeed in today’s retail environment,” noted Ernie Herrman, CEO and president of TJX, the parent company of T.J. Maxx, Marshalls, Homegoods, Homesense, Sierra and Winners. “Every day, our global organization is focused on bringing customers around the world excellent values on great fashions and great brands and an exciting, treasure-hunt shopping experience. We are pleased that the second quarter is off to a good start, and we are seeing phenomenal off-price buying opportunities in the marketplace. We are set up extremely well to continue shipping fresh and compelling merchandise to our stores and online throughout the spring and summer.”
TJX’s numbers are proof of the global organization’s success: The company finished out Q1 2023 with $11.8 billion in net sales, indicating a 3% increase compared to the first quarter of the previous fiscal year. The company also experienced a 3% growth in overall comparable store sales. Net income for the first quarter of fiscal 2024 amounted to approximately $891 million.
And while Bed Bath & Beyond, Party City and Christmas Tree Shops all recently filed for bankruptcy, TJX increased its store count by 30 locations since January, now operating a total of 4,865 sites across the globe.
“We offer vendors a very attractive way to grow their business and clear their excess inventory quickly and discreetly,” Herrman said during TJX’s earnings call on May 17.
The corporation, which operates eight stores in Staten Island -- three T.J. Maxx, two Marshalls and three Homegoods -- said the secret to its success is targeting young consumers.
So why does the brand strike a chord with shoppers? The company said it has something to do with the variety of its stock, combined with an overall “fear of missing out” felt by its consumer base.
“We tell our customers, ‘If you love it, grab it!,’” TJX noted on the “How we do it” portion of its website. “We don’t hold replenishment stock in our back rooms, and often the store managers don’t even know what’s coming until they throw open the delivery truck doors. That’s what makes us so exciting to shop.”
The company noted its merchandise is the result of “a wide variety of opportunities,” which can include department store cancellations, a manufacturer producing too much product, or a closeout deal when a vendor wants to clear merchandise at the end of a season.
“Going forward, I am confident that we have significant opportunities to grow sales, drive customer traffic, capture market share, and improve the profitability of our company,” Herrman concluded in the quarterly report.
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