TJX Companies Plans to Add 2,000 More Stores - Sachse Construction
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TJX Companies Plans to Add 2,000 More Stores

TJX Companies, the off-priced retailer that operates brands including T.J. Maxx and Marshalls, plans to open more than 2,000 stores “long-term,” according Chief Executive Ernie Herrman.

The company’s “extremely wide customer demographic” gives it the ability to open new stores in urban, suburban and rural locations across the country, Herrman said on a call discussing earnings, noting that the company opened 53 stores in the second quarter.

TJX and other off-price retailers are defying e-commerce trends and a decline in big-box store sales by offering consumers a “thrill of the hunt” experience they can’t find online, a trend real estate brokers are taking advantage of in retail development.

Walmart, Gap, Five Below and Ross Stores Inc. are also adding stores at a rapid pace. Ross last month said its opening 30 stores this summer as part of a plan to add about 100 this year.

“We’ve great confidence in the enduring appeal of our treasure hunt shopping experience,” said TJX’s Herrman. He didn’t detail a timeline for the addition of 2,000 stores.

Another discount retailer, Menomonee Falls, Wisconsin-based Kohl’s Corp., is holding to its “standard-to-small” initiative, where it redesigns low-performing stores to carry less inventory.

First introduced in 2016, the initiative cuts the physical space of inventory to 35,000 square feet, or 60 percent less space and inventory than its larger stores.

It has converted 200 stores this year and now has 500 such outlets, Chief Financial Officer Bruce Besanko said in an earnings call. The company also said it would consider building smaller stores.

TJX, based in Framingham, Massachusetts, currently operates 4,194 stores in nine countries. About 75 percent of those are in the United States. Kohl’s operates 1,158 stores in 49 states.

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