Whatever the prevailing economic circumstance indicate, US apparel discounter TJMaxx seems to be doing well. And so it is with the latest set of numbers which denotes both the strength of TJX’s business model and its consistency in delivering growth. While growth rates were slightly lower in the last quarter, the company came out strong to remain well above the growth rate of the overall market at least in the US.
As of today, TJX continues to take share across both the home and apparel sectors. While within the US, TJX posted growth across both its main divisions, the more mature Marmaxx, that incorporates both TJMaxx and Marshalls, saw comparable sales increase by 4 per cent. However, HomeGoods was, once again, the star of the show with a sales growth of 10.3 per cent supported by a 5 per cent uplift in same store numbers. Both divisions have been benefitting from a number of favorable trends which TJX has been turning to its advantage.
These benefits have always been fundamental tenants of TJX’s business model, but they are now arguably more relevant than ever and they are helping the company to maintain growth at a time when so many other retailers are struggling.
