E Under The Spotlight: The TJX Companies, Inc.

The TJX (TJX) Companies is the leading global off-price retailer of apparel and home fashions. As of Aug. 3, 2019, TJX operated a total of 4,412 stores in nine countries, including 1,260 T.J. Maxx, 1,107 Marshalls, 783 HomeGoods, 39 Sierra, and 23 Homesense stores, as well as tjmaxx.com and sierra.com in the United States; 274 Winners, 132 HomeSense, and 91 Marshalls stores in Canada; 580 T.K. Maxx and 72 Homesense stores, as well as tkmaxx.com, in Europe; andT.K. Maxx stores in Australia. 

TJX traces its roots back to 1976 when Ben Cammarata, general merchandising manager of Marshalls, was recruited to develop and lead the launch of a new off-price chain selling family apparel and home fashions. Under Ben’s leadership, T.J. Maxx was born, with its first two stores opening in Massachusetts during 1977. TJX has continued to grow steadily over the years, opening stores in new markets, countries and continents. TJX is also launching new chains and acquiring other retailers to bring its popular off-price model to an even wider network of customers. In 1990, TJX acquired a five-store chain called Winners, which has grown into a winner by becoming Canada’s leading off-price retailer. In 1992, HomeGoods was introduced to expand TJX’s presence in the booming home fashions market. T.K. Maxx was launched in 1994 and introduced the off-price concept to the United Kingdom. In 1995, TJX acquired Marshalls, which doubled the company’s size. The newest divisions include HomeSense and Sierra Trading Post, an online retailer rebranded as Sierra. TJX launched its e-commerce site in 2013 and opened its 4,000th store in 2017. 

TJX delivers a rapidly changing assortment of quality, brand name merchandise at prices 20%-60% less than department and specialty store regular prices. TJX can offer these savings because of its opportunistic buying strategies. As the largest offprice retailer, TJX has tremendous buying power and solid relationships with more than 21,000 merchandise vendors in 100 countries. This retail recipe engenders strong brand loyalty from consumers of all ages.
Over the past five years, TJX has grown sales at a spiffy 8% annual rate. During the same period, earnings and EPS compounded at 8% and 12% annual rates, respectively. TJX’s return on equity averaged a highly fashionable and profitable 53% during the past five years.

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Cents For Sense 8 months ago Contributor's comment

Looks like a good stock pick. $TJX