T.J. Maxx Parent Opens Up to Online Sales as Pandemic Persists
November 18 2020 - 2:23PM
Dow Jones News
By Renata Geraldo and Micah Maidenberg
The owner of T.J. Maxx said it would launch an e-commerce
platform for its HomeGoods home-and-furniture chain in the second
half of 2021, changing course from earlier in the pandemic when it
resisted an industrywide push to ramp up online sales.
TJX Cos. Chief Executive Ernie Herrman said customers have been
reluctant to return to bricks-and-mortar stores, a trend he expects
to continue through the holidays. More than 4,000 T.J. Maxx,
Marshalls, HomeGoods and other TJX brand stores are open, while
about 470 are still temporarily closed, mostly in Europe.
A HomeGoods e-commerce platform would "satisfy our customer base
and attract new shoppers," Mr. Herrman told investors on Wednesday.
This past May, Mr. Herrman told investors the Framingham,
Mass.-based company would "not look to e-commerce as our major
leveraging point to get us through Covid and out the other
side."
HomeGoods customers prefer to shop in bricks-and-mortar stores,
and the company aims to create an online shopping experience that
complements and encourages in-store shopping, Mr. Herrman said.
"Not everybody wants to buy their apparel even online," he said.
"They don't always want to buy a sofa, a chair, an accessory item.
They want to feel the fabric."
Off-price chains like TJX, Burlington Stores Inc. and Ross
Stores Inc. have largely avoided e-commerce, preferring to have
shoppers comb through stores for discounted goods and changing
inventories. In March, Burlington said it would pull the plug on
its e-commerce operations, which represented less than 1% of its
sales.
TJX said overall sales declined at a slower rate than it
expected for the quarter ended Oct. 31. Comparable sales at open
stores slid 5%, compared with the 10%-to-20% decline the company
had forecast in August.
TJX reported growth in sales of home products, a sector that has
fared well during the pandemic. Mr. Herrman also said TJX saw a
rise in sales of beauty products and activewear in both its
international division and U.S. stores.
The company earned a profit of $866.7 million for the quarter,
up from $828.3 million for the year-earlier period. Net sales
slipped to $10.12 billion from $10.45 billion.
(END) Dow Jones Newswires
November 18, 2020 14:08 ET (19:08 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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