Slow traffic. Store closures. Chain bankruptcies. This litany of bad news has dominated the headlines recently.
But today, TJX announced it would be rolling out a new store format. And it’s no surprise that this bullish move is coming from the off-price market, since it’s often been the one bright spot at retail. Moody’s predicts market share for the off-price sector will grow to 10 percent of apparel sales by 2018, up from 8.8 percent in 2015.
But if TJX is successful in its grab for market share, it will have to come from somewhere. Full-line department stores, which all offer at least a limited selection of home products, should beware.
The company, which already operates its namesake chain, Marshall’s and HomeGoods—the latter of which boasts an almost cult-like following–is developing a new home décor format, according to TJX CEO Ernie Herrman.
Similar to the positioning of TJ Maxx and Marshall’s in the marketplace, the new store—which doesn’t have a name yet—will be designed to complement not cannibalize HomeGoods’ sales.
In the company’s latest earnings report, it announced comp store sales increased 6 percent in HomeGoods stores in fiscal year 2017. Net sales were $4.4 billion for the same period, compared to $3.9 billion for the previous year.
“While we are proud to have grown our HomeGoods customer base for many years, we believe we remain significantly underpenetrated in total U.S. home market and enormous opportunity remains for us to grow market share in this space. Our customers are passionate about home goods and we are confident they will love our new home concept, too,” Herrman said.
In addition to the launch, the company also intends to boost its fleet of HomeGoods stores from 579 to 659.
Retailers the country over can breathe a collective sigh of relief now that the border adjustment tax is officially, fully dead.Read more
How can manufacturers take advantage of the opportunities in new markets while mitigating their exposure to fraud?Read more
This week Amazon's inside track on cheap shipping, American-made brands sounding off on the Trump administration and consignment's new normal all made headlines.Read more
Sometimes it feels like speed is all anyone’s talking about these days, as retailers and brands look for ways to increase the efficiency of their supply chains. Unfortunately, most companies are only able to pay lip service to reducing time to market.Read more
It hasn’t been smooth sailing for footwear sourcing in this shifting retail landscape, and with imports faltering and duties per pair rising to new highs, brands are looking to reorient themselves in new ways and spaces.Read more
Cargo volume set a record in the first half of the year in the Port of New York and New Jersey and are on pace for the highest annual volume for the year.Read more