TJX Companies

Last updated

The TJX Companies, Inc.
FormerlyZayre Corp.
Company type Public
Industry Retail
Founded1987;37 years ago (1987)
FounderBernard Cammarata
Headquarters Framingham, Massachusetts, U.S.
Number of locations
4,954 (2024)
Area served
  • United States
  • Canada
  • Australia
  • Austria
  • Ireland
  • Germany
  • Netherlands
  • Poland
  • United Kingdom
Key people
Products
  • Clothing
  • footwear
  • bedding
  • food
  • furniture
  • jewelry
  • beauty products
  • housewares
RevenueIncrease2.svg US$54.22 billion  (2024)
Increase2.svg US$5.979 billion (2024)
Increase2.svg US$4.474 billion (2024)
Total assets Increase2.svg US$29.75 billion (2024)
Total equity Increase2.svg US$7.302 billion (2024)
Number of employees
349,000 (2024)
Divisions
Website tjx.com
Footnotes /references
[2] [3] [4]

The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts. [5] It was formed as a subsidiary of Zayre Corp. in 1987, and became the legal successor to Zayre Corp. following a company reorganization in 1989.

Contents

As of 2019, TJX operates TJ Maxx (in the United States) and TK Maxx (in Australia and Europe), its flagship store chains, along with Marshalls, HomeGoods, HomeSense, and Sierra in the United States, and HomeSense, Marshalls, and Winners in Canada. There are over 4,557 discount stores in the TJX portfolio located in nine countries. [6] TJX ranked No. 80 in the 2024 Fortune 500 list of the largest United States corporations by total revenue. [7] TJX is a publicly listed stock on the New York Stock Exchange (NYSE) under the ticker symbol TJX and has a capital value of $132.27 Billion (August 2024).

History

Zayre

In 1977, the first TJ Maxx store opened in Auburn, Massachusetts as part of the discount department store chain Zayre. In June 1987, Zayre established The TJX Companies as a subsidiary. In the first half of 1988, Zayre stores had operating losses of $69 million on sales of $1.4 billion. Observers blamed technological inferiority, poor maintenance, inappropriate pricing, and inventory pileups, and Zayre appeared ripe for takeover. Throughout all this, however, The TJX Companies subsidiary continued to yield a profit. In October 1988, Zayre Corp. decided to focus its energies on TJX. It sold the entire chain of nearly 400 Zayre stores to Ames Department Stores Inc. In exchange, the company received $431.4 million in cash, a receivable note, and what was then valued at $140 million of Ames cumulative senior convertible preferred stock. [8] [9]

The company continued focus on its core business, spinning off unrelated operations including BJ's Wholesale Club and Home Club, leaving it with just one brand, T.J. Maxx. [10] [11] In June 1989, Zayre Corp. acquired the outstanding minority interest in TJX and merged with the subsidiary, changing its name from Zayre Corp. to The TJX Companies, Inc. in the process. The newly named company began trading on the New York Stock Exchange. [12]

Expansion

In 1990, TJX expanded into an additional store brand division, and at the same time it first went international, as it entered the Canadian market by acquiring the five-store Winners chain. [13] [11] Two years later, it launched its third brand, HomeGoods, in the United States. [14] TJX's expansion beyond North America came in 1994, when the fourth brand division, T.K. Maxx, was founded in the United Kingdom, and then expanded into Ireland. [15] In 1995, TJX doubled in size when it acquired Marshalls, its fifth brand. T.J. Maxx and Marshalls later became consolidated as two brands under a single division, The Marmaxx Group. [16] The following year, TJX Companies Inc. was added to the Standard & Poor's S&P 500 Composite Index, which consists of 500 of the largest companies in the United States. [17] TJX sold Hit or Miss, a discount mall based clothing store in 1995 as well through an employee leveraged buyout. [18]

Marshalls, HomeGoods, and T.J. Maxx co-located at a building in Boston's Downtown Crossing (2020). Marshalls HomeGoods TJMaxx Boston Downtown Crossing.jpg
Marshalls, HomeGoods, and T.J. Maxx co-located at a building in Boston's Downtown Crossing (2020).

TJX launched a sixth brand, A.J. Wright, in 1998 in the eastern U.S. [19] The brand went national in 2004 when it opened its first stores in California on the west coast. [20] The company's seventh brand division, HomeSense, formed in 2001, was a Canadian brand modeled after the existing US brand, HomeGoods. [21] TJX revenue surpassed $10 billion that year. [13]

In 2002, TJX revenue reached almost $12 billion. [11] In 2003, TJX acquired an eighth brand division, Bob's Stores, concentrated in New England. [22] In Canada, TJX began to configure some Winners and HomeSense stores side by side as superstores. The superstores feature open passageways between them, with dual branding. TJX's revenue in 2003 reached over $13 billion. [11] TJX began to test the side-by-side superstore model in the United States in 2004, combining some of each of the two Marmaxx brand stores with HomeGoods. The company reached 141st position in the 2004 Fortune 500 rankings, with almost $15 billion in revenue. [11] That year was also marked by the death of retired Zayre founder Stanley Feldberg. [23]

In April 2008, TJX launched the HomeSense brand in the UK, with six stores opening throughout May. [24] The brand is more upmarket than its Canadian namesake. Later that year, in August, TJX sold Bob's Stores to Versa Capital Management and Crystal Capital. [25]

In December 2010, TJX announced that the A.J. Wright stores would be closed, cutting about 4,400 jobs, and that more than half of them would reopen under other company brands. [26]

In December 2012, TJX acquired Sierra Trading Post, an off-price internet retailer of outdoor gear and apparel. [27] Since its acquisition, the retail chain has opened over 70 brick-and-mortar stores in the United States. The chain rebranded to Sierra in 2019. [28]

In July 2015, TJX acquired the Trade Secret and Home Secret off-price retail businesses from Australian company Gazal Corporation Limited. The deal was completed in December. [29] In October, Ernie Herrman was named CEO of the company, replacing Carol Meyrowitz. He took over in January 2016. [30]

In November 2019, TJX purchased a 25% stake in Russian retailer Familia. [31]

COVID-19 impact

On August 19, 2020, TJX Companies continue to deal with the COVID-19 pandemic's effect on its business. The company announced that revenues dropped 31% over the months of May, June, and July, primarily due to extensive closures of the shop for around one-third of the period. TJX Companies reported a second-quarter loss of $214 million. [32]

Incidents

Computer systems intrusion

On January 17, 2007, TJX announced that it was the victim of an unauthorized computer systems intrusion. It discovered in mid-December 2006 that its computer systems were compromised and customer data was stolen. [33] The hackers accessed a system that stores data on credit card, debit card, check, and merchandise return transactions. [34] The intrusion was kept confidential as requested by law enforcement. TJX said that it was working with General Dynamics, IBM and Deloitte to upgrade computer security.

By the end of March 2007, the number of affected customers had reached 45.7 million, [35] and prompted credit bureaus to seek legislation requiring retailers to be responsible for compromised customer information saved in their systems. In addition to credit card numbers, personal information such as social security numbers and driver's license numbers from 451,000 customers were downloaded by the intruders. The breach was possible due to a non-secure wireless network in one of the stores. [36] Eleven men were charged in the theft, and one (Damon Patrick Toey) pleaded guilty to numerous charges related to the breach. [37] Another, Jonathan James, professed his innocence and later committed suicide, apparently out of the belief that he was going to be indicted. [38] The alleged ringleader Albert Gonzalez, was later indicted in August 2009 with attacking Heartland Payment Systems, where 130 million records were compromised. [39]

Brands

Current brands

BrandYear foundedYear acquiredNo. of locationsCountries in operation [40]
AustraliaAustriaCanadaGermanyIrelandNetherlandsPolandUKUS
HomeGoods 1992—818NoNoNoNoNoNoNoNoYes
HomeSense 2001—253NoNoYesNoYesNoNoYesYes
Marshalls 195619951,236NoNoYesNoNoNoNoNoYes
Sierra 19862012101NoNoNoNoNoNoNoNoYes
TJ Maxx 1976—1,271NoNoNoNoNoNoNoNoYes
TK Maxx 1994—654YesYesNoYesYesYesYesYesNo
Winners 19821990279NoNoYesNoNoNoNoNoNo

Divisions

  • Marmaxx – TJ Maxx and Marshalls (US)
  • HomeGoods – HomeGoods and HomeSense (US)
  • TJX Canada – Winners, HomeSense (Canada), and Marshalls (Canada)
  • TJX International – TK Maxx (Europe & Australia) and HomeSense (UK and Ireland)

Former brands

BrandYear foundedYear defunctYear acquiredYear divestedNotes
AJWright 19982011——Stores liquidated or converted to other TJX brands
BJ's Wholesale Club 1984——1989BJ's and HomeClub spun off from TJX to form Waban
Bob's Stores 1954202420032008Sold to Versa Capital Management and Crystal Capital
Home Club 1983200219851989BJ's and HomeClub spun off from TJX to form Waban
The Maxx2006 [41] 2009——
StyleSense20082012 [42] ——
Trade Secret 199220172015—Stores converted to TK Maxx
Zayre 19561990—1988Sold to Ames Department Stores, which facilitated the Waban spin-off and TJX reorganization

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Marshalls is an American chain of off-price department stores owned by TJX Companies. Marshalls has over 1,000 American stores, including larger stores named Marshalls Mega Store, covering 49 states and Puerto Rico, and 61 stores in Canada. Marshalls first expanded into Canada in March 2011.

A discount store or discounter offers a retail format in which products are sold at prices that are in principle lower than an actual or supposed "full retail price". Discounters rely on bulk purchasing and efficient distribution to keep down costs.

<span class="mw-page-title-main">TK Maxx</span> International discount department store chain owned by TJX Companies

TK Maxx is a subsidiary of the American apparel and home goods company TJX Companies. Its first store opened in 1994 in the United Kingdom. The chain uses a different name from TJ Maxx stores in the United States to avoid confusion with the British retailer T. J. Hughes. TK Maxx now also operates in Australia, Ireland, Germany, Poland, Austria and the Netherlands.

<span class="mw-page-title-main">Zayre</span> Defunct discount retailer in the United States

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Winners Merchants International L.P is a chain of off-price Canadian department stores owned by TJX Companies. Its market niche is similar to the American store TJ Maxx, and it is a partnered retailer to department stores HomeSense and Marshalls.

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References

  1. 1 2 3 Form 10-Q (Q3 2024) .
  2. ↑ The Wall Street Journal, "TJX Chairman, Founder Bernard Cammarata to Retire".
  3. ↑ Fortune 500, TJX.
  4. ↑ "FY 2024 Annual Report (Form 10-K)". U.S Securities and Exchange Commission. April 3, 2024.
  5. ↑ "The TJX Companies, Inc. Announces CEO Succession Plans; Carol Meyrowitz to Be Named CEO" (Press release). TJX. Business Wire. September 7, 2006. Archived from the original on August 14, 2022. Retrieved November 13, 2018.
  6. ↑ "Carol Meyrowitz". Forbes. Retrieved July 10, 2018.
  7. ↑ "Fortune 500 Companies 2021: Who Made the List". Fortune. Archived from the original on November 10, 2018. Retrieved December 28, 2021.
  8. ↑ "The TJX Companies, Inc. History". FundingUniverse. Retrieved February 1, 2013.
  9. ↑ Cowan, Alison Leigh (September 16, 1988). "Ames to Buy Discount Unit From Zayre". The New York Times. ISSN   0362-4331 . Retrieved August 20, 2024.
  10. ↑ "WHOLESALE CLUB PLANS THIRD STORE IN SOUTH FLORIDA". The Sun-Sentinel. July 19, 1989. Retrieved August 20, 2024.
  11. 1 2 3 4 5 "The TJX Companies, Inc. 2004 Annual Report" (PDF). Annualreports.com. March 30, 2005.
  12. ↑ Flynn, Barry (December 6, 1988). "Zayre to become TJX Companies". UPI. Retrieved August 20, 2024.
  13. 1 2 "The TJX Companies, Inc. - Annual Report 2001" (PDF). SEC.gov. Retrieved August 20, 2024.
  14. ↑ Howland, Daphne (February 23, 2017). "TJX plots new home decor chain concept, HomeGoods expansion". Retail Dive. Retrieved August 20, 2024.
  15. ↑ Cork, Tristan (April 14, 2024). "The massive US chain that made its UK debut in the Galleries". Bristol Live. Retrieved August 20, 2024.
  16. ↑ Gilpin, Kenneth N. (October 17, 1995). "TJX Will Buy Marshalls Chain From Melville". The New York Times. ISSN   0362-4331 . Retrieved February 8, 2018.
  17. ↑ Sam Stovall, Sector Investing, McGraw Hill, 1996, Appendix A, The S&P 500 Composite Index, ISBN   0-07-052239-1
  18. ↑ Nussenbaum, Evelyn (January 6, 1999). "Hit or Miss Gets New Owner". New York Post.
  19. ↑ Duff, Mike (October 5, 1998). "TJX opens first three A.J. Wright locations". Discount Store News. Archived from the original on September 20, 2004.
  20. ↑ Garcia, Shelly (August 15, 2004). "National Retailer Sets Plans for Valley Location". San Fernando Valley Business Journal. Retrieved August 20, 2024.
  21. ↑ "TJX to move Marshalls into Canada by spring 2011". Home Textiles Today. July 20, 2010. Retrieved August 20, 2024.
  22. ↑ Press, The Associated (December 27, 2003). "COMPANY NEWS; TJX COMPLETES $59 MILLION PURCHASE OF BOB'S STORES". The New York Times. ISSN   0362-4331 . Retrieved August 20, 2024.
  23. ↑ Saxon, Wolfgang (May 16, 2004). "Stanley H. Feldberg, 79, Retailer Who Helped Build Zayre Chain". The New York Times. ISSN   0362-4331 . Retrieved August 20, 2024.
  24. ↑ Flood, Chris (May 2, 2024). "Homesense filling andThat! location near Rehoboth". Cape Gazette. Retrieved August 20, 2024.
  25. ↑ "TJX Sells Bob's Stores Chain To Versa Capital, Crystal Capital, Terms Undisclosed". Financial Wire. August 20, 2008. Archived from the original on October 22, 2008. Retrieved September 22, 2008.
  26. ↑ Burritt, Chris (December 10, 2010). "TJX Plans to Close A.J. Wright Stores, Cut 4,400 Jobs". Bloomberg.com. US Retail News. Retrieved December 10, 2010.
  27. ↑ "The TJX Companies, Inc. Acquires Off-Price Internet Retailer Sierra Trading Post". investor.tjx.com. December 21, 2012.
  28. ↑ "TJX Rebranding Sierra Trading Post To Simply 'Sierra'". sgbonline.com. February 28, 2019.
  29. ↑ Mehrotra, Karishma. "TJX acquires Australian retailer Trade Secret - The Boston Globe". BostonGlobe.com. Retrieved February 8, 2018.
  30. ↑ Convey, Eric (October 7, 2015). "Meet Ernie Herrman, the new CEO of T.J. Maxx-parent TJX Cos". Boston Business Journal. Retrieved April 2, 2020.
  31. ↑ Carlock, Catherine (November 20, 2019). "TJX buys $225M stake in Russian discount retailer". Boston Business Journal. Retrieved April 2, 2020.
  32. ↑ Kalogeropoulos, Demitri (August 19, 2020). "TJX Companies Posts a $214 Million Second-Quarter Loss". The Motley Fool. Retrieved August 26, 2020.
  33. ↑ "THE TJX COMPANIES, INC. VICTIMIZED BY COMPUTER SYSTEMS INTRUSION; PROVIDES INFORMATION TO HELP PROTECT CUSTOMERS" (Press release). The TJX Companies, Inc. January 17, 2007. Retrieved December 12, 2009.
  34. ↑ Lavoie, Denise (January 18, 2007). "Credit cos. watchful after TJX breach". Archived from the original on January 23, 2007. Retrieved January 18, 2007.
  35. ↑ Largest Customer Info Breach Grows. MyFox Twin Cities, March 29, 2007.
  36. ↑ Pereira, Joseph (May 4, 2007). "Breaking the code: How Credit-Card Data Went Out Wireless Door". Wall Street Journal.
  37. ↑ Tomsho, Rob (September 12, 2008). "Hacker Pleads Guilty In TJX Security Breach". Wall Street Journal. ISSN   0099-9660 . Retrieved September 12, 2012.
  38. ↑ Poulsen, Kevin (July 9, 2009). "Former Teen Hacker's Suicide Linked to TJX Probe". Wired . Retrieved October 29, 2009.
  39. ↑ "Hacker Charged With Heartland, Hannaford Breaches - wired.com - August 17, 2009". wired.com. Retrieved April 21, 2018.
  40. ↑ Shaw, Hollie. "TJX to open Marshalls in Canada". Financial Post. Archived from the original on March 19, 2012. Retrieved April 21, 2018.
  41. ↑ "The TJX Companies, Inc. 10-Q". Investor.TJX.com. October 27, 2007.
  42. ↑ Transcripts, S. A. (February 22, 2012). "The TJX Companies' CEO Discusses Q4 2012 Results - Earnings Call Transcript | Seeking Alpha". Seeking Alpha . Retrieved September 27, 2024.
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