TJX is an American off-price departmental store. It specializes in selling apparel and home fashion products that are priced competitively for the value-conscious buyer. The post-pandemic period can be particularly favorable for TJX as consumers may look for value purchases more than premium purchases. TJX is ranked 85 in the Fortune 500 list, has tremendous scale, and operates 3300 stores across 6 countries.
TJX Company Background
TJX Companies was officially founded in the year 1987. However, its roots go back to 1977 when the first T.J. Maxx store opened in Auburn, Massachusetts. TJX expanded internationally in 1990 when it entered the Canadian market through the acquisition of the five-store chain Winners. Then in 1994, the company expanded in Europe with the founding of T.K. Maxx in the UK and Ireland. TJX Companies buys its inventory from a network of more than 21,000 vendors globally. TJX is well known for undercutting conventional retailers with prices anywhere from 20% to 60% lower. TJX offers a “treasure hunt” shopping experience through its low-frills stores. The company runs a network of 4500 stores as of fiscal end 2020. Some of the prominent brands owned by TJX are T.J. Maxx, Marshalls, T.K. Maxx, Homesense, Winners, HomeGoods, and Sierra.
Retail has been one of the most severely affected industries by the COVID pandemic. TJX Companies also experienced a significant drop in revenues during the year 2020. In spite of all the challenges, TJX is still up more than 6% over a 1-year period. The stock closed at $64 on 29th January 2021. At that time, the dividend yield was 1.62%. Since the lows of the March 2020 crash, the stock is up 74%. On a 5-year basis, the stock has almost doubled and is up 88%. Ross Stores, another discount retailer, is down about 1% of the past year having closed at $111 on 29th January 2021. It traded at a dividend yield of 1% at the close of day on 29th January 2021.