While many brick-and-mortar retailers are feeling the effects of online shopping–leading to store closings, layoffs and bankruptcies–one company is doing so well that they will be opening new stores worldwide. Thousands of them.
TJX Companies, owner of TJ Maxx, Marshalls, and HomeGoods, is planning a significant expansion over the next year. CEO Ernie Hermann said they are hoping to have 5,600 stores open by the end of their expansion, while their current number is around 3,700. While something of an outlier in today’s retail market, TJX has been expanding for awhile, opening 219 stores last year and 47 during this year’s fiscal first quarter. Even better, TJX has no plans of closing any stores anytime soon.
Stores like TJ Maxx and HomeGoods sell both high-end and mid-line products at discounted prices, which is probably why they are one of the few retailers out there who are still doing well. However, Walmart, Kohls, and Target (all companies lauded for their lower prices) are closing stores and facing financial woes at all levels. TJX has managed to stay afloat by offering good products and happy staff, most likely due to raising salaries for their store employees.
TJX can boast impressive numbers, with sales growths of up to seven percent last year alone. Because of these numbers, Hermann says we shouldn’t count out an even bigger expansion somewhere down the line.
“We believe significant opportunity exists beyond this,” said Herrman. “To reiterate, our [store opening] estimates do not contemplate the potential to expand into additional countries or open new chains in existing markets.”