TJX Companies (NYSE: TJX) is the parent company of some of the largest off-price retailers in the world. An off-price retail store sells merchandise at prices 20-60% below department store prices, buying the goods in bulk from major labels like Polo Ralph Lauren (RL), Calvin Klein, Tommy Hilfiger and Express who are shedding excess inventory. These savings are passed on to customers in the form of low prices. TJX company operates the two largest off-price retailers in the United States, T.J. Maxx and Marshalls, and the largest off-price retailers in Canada and the U.K., Winners and T.K. Maxx. The company also operates the A.J. Wright and Bob's Stores chains. The company earned $20.2 billion in revenue and $1.2 billion in net income in 2009.
As an off-price retailer TJX is positioned to gain significantly during times of economic distress when consumers are more price sensitive; in these times consumers tend to avoid higher priced apparel retailers in favor of discount stores and off-price chains. The sluggish economic environment, caused by the supbrime lending crisis, has benefited stores like T.J. Maxx and Marshall's as more people look for discounted shopping options. As a result, the company's sales increased by 7% in 2009.
TJX is the parent company of 8 different off-price retail chains: T.J. Maxx, Marshalls, Winners, HomeSense, HomeGoods, T.K. Maxx, A.J. Wright and Bob's Stores. In total TJX operates 2,743 stores in the United States, Canada, England and Ireland.
TJX's stores and other off-price retailers such as Ross Stores (ROST) purchase retail merchandise directly from suppliers and manufacturers, primarily looking for supplier surpluses due to overruns and canceled orders to acquire retail goods at an opportunistic discount. TJX also purchases seasonal items at discount at the end of a season, then stores the merchandise until the next appropriate season for sale. Through this manner TJX's stores carry branded apparel, footwear and accessories at prices 20-60% below traditional department store prices.
TJX generates more than three times the sales of its main rival in the off-price retailing sector, Ross Stores (ROST). TJX is also considerably larger than Ross in terms of stores; TJX has 2,743 locations from its 8 different chains while Ross Stores (ROST) only operates 2 different chains with a total of 1005 locations.
Other competitors include: