Tjx- Harpreet-(18)

AMM Submission on

TJX Submitted By:Harpreet Singh

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Brothers Max and Morris Feldberg founded New England Trading Company in Boston, Massachusetts in 1919. This business prospered and in 1929 the Feldbergs opened their first retail store, devoted to selling ladies hosiery 20 years later, their one store had grown into a chain of women's apparel stores that stretched from New England to Washington D.C In 1977, The first two T.J. Maxx stores open in Auburn and Worcester, Massachusetts, offering off-price, upscale apparel for the whole family

1956 : Stanley & Sumner Feldberg opened first Zayre discount store in Hyannis, Massachusetts. 1977 : First T. J. Maxx in Auburn, Massachusetts. 1987 : Zayre’s off price chains are organized as the TJX companies. 1990 : Acquired Winners Apparel Ltd. “The king of off price - Forbes” Address: USA, The TJX Companies, Inc. 770 Cochituate Road Framingham, MA 01701

Address: USA, The TJX Companies, Inc. 770 Cochituate Road Framingham, MA 01701

"Our vision of TJX is as a global, off-price, value Company. We remain focused on driving profitable sales through sharp execution of the fundamentals of our offprice business model. "

Mission See potential for growing with 4300 stores in new countries.  19 billion $ turnover in 2007.  2500 stores.  130,000 associates. Ranked 132 in Fortune 500.

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The leading off-price retailer of apparel and home fashions in the United States and worldwide 7 segments, 8 stores, and 2062 points of sale       

Marmaxx-T.J. Maxx & Marshalls A.J. Wright Homegoods Bob’s Stores T.K. Maxx Winners HomeSense

Retail Chains Under TJX

 Opened in 1976.  Largest off price retailer in US.  20-60% price below departmental & specialty store.  847 stores at the end of 2007.  Avg. area 30,000 sq. feet.  Deals in apparel & home fashion

 Second largest in US & acquired by TJX in 1995.  Similar to T. J. Maxx , it expanded shoe & junior departments.  At the end of 2007, have 776 stores.  Avg. area 32,000 sq. feet.

 Acquired by TJX in 1990.  191 stores in Canada at the end of 2007. Plans to open 9 new stores in 2008.  Family footwear, children’s apparel, home fashion & men’s wear.  Avg. area 29000 sq. feet.

 Opened in 2001. Now have 71 stores in Canada. Plans to get 4 stores in 2008.  Furniture, lamps, accessories & giftware.  Operates standalone & superstore format with Winners.  Avg. area 28,000 sq. feet.

 Opened in 1994. The only major off price retailer in Europe. Have 226 stores across UK, Ireland & Germany.  Family apparel, home fashion, women’s footwear & accessories.  Plans to have 10 stores in Europe & 5 in Germany In 2008. 

 Opened in 1992. Now have 289 stores. Plans to have 500 stores in future.  Giftware, home basics, accent furniture, lamps, accessories, children’s furniture, & seasonal merchandise.  Operates in standalone & superstore with Marshalls and T. J. Maxx.  Avg. area 27,000 sq. feet.

 Opened in 1998. Now have 129 stores & plans to get 1000 stores in future.  20-70% price below departmental & national discount chains.  Family apparel, home fashions, more emphasis on footwear, juniors, and children’s assortments.  Avg. area 26,000 sq. feet.

 Acquired by TJX in 2003. Value store, targets to upper middle income group. Casuals , footwear, work wear, active wear & licensed team apparel.  34 stores in Northeastern US.  Avg. area 46,000 sq. feet.

Country Brand

Total No. Of Stores

Primary Classification

U.S.

874

family apparel, women's shoes and home fashions

T.J. M axx

Marsha lls

806

footwear, broader men's selection basics, children’s, women’s plus sizes, juniors apparel, young men’s, and footwear

A. J. Ri ght

135

Canada

Win ners

200

women's apparel, family footwear, fine jewelry, children's apparel, lingerie, accessories, home fashions, and menswear

Europe

T.K . M axx

235

family apparel, women's footwear, lingerie, accessories, and home fashion.

150%

Target customer for their off-price concepts is a middle- to upper-middle income shopper, who is fashion and value conscious and fits the same profile as a department store shopper,  A.J. Wright, which reaches a more moderate-income market.  Bob’s Stores has a customer demographic that spans the moderate to upper-middle income range and a higher percentage of males in its customer base. 

The firm’s debt is reasonable at 30% of total capitalization.  The company’s cashflow is solid, giving management the opportunity to redeploy capital in search of additional growth.  Buybacks have reduced TJX share count by 31% since 1998, greatly increasing earnings per share 

SALES GROWTH

Ref:

EARNING PER SHARE

REF:https://www.researchandmarkets.com/reports/.../tjx_companies_i nc_the_tjx_annual_report.pdf

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TJX Companies' major products include womenswear, menswear, childrenswear, homewear, gifts, lingerie

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Also offer shoes, fine jewelry, and accessories at select Marmaxx and Winners locations

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The Homegoods and Homesense segments offer giftware, accent furniture, lamps, rugs, accessories, and seasonal merchandise for the home

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Bob’s Stores offers family apparel and footwear

Jeans

Tops

$ 9.99-16.99

$ 7.99-9.99 Polos $ 7.99-16.99

Dresses

Graphic Tees

$ 16.99-19.99

$ 7.99-12.99

As TJX Companies, Inc. is essentially an “off-price retailers” , there is NO as such buying or selling seasons.

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The company buys clothing that is on sale, such as stock overruns or discontinued lines, and passes these savings on to consumers TJX has a large “buying” department, which stays in constant contact with manufacturers so that they can take advantage of unexpected opportunities. The company benefits manufacturers by taking large quantities of unwanted merchandise off their hands, and helps consumers by selling quality apparel at 25% or more below retail price.

ENVIRONMENTAL RESPONSIBILITY Reusable shopping bags are offered for a nominal charge, giving customers who prefer not to use plastic bags, a choice.  Recycling cardboards.  Energy management department.  T5 fluorescent light, 50% less electricity. Reducing no. of trucks & improving trailer loading methods.

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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. The hackers accessed a system that stores data on credit card, debit card, check, and merchandise return transactions. In August 2008, TJX sold Bob's Stores to Versa Capital Management and Crystal Capital.

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Federated Department Stores, Inc. The May Department Stores Company Sears The Gap, Inc. Limited Brands, Inc. Ross Stores, Inc. Value City Department Stores, Inc.