Why is the TJX Companies Making Money?
Impressively, Business Insider lists the TJX Companies (NYSE: TJX) as the “number one clothing company” in the United States. Notably, TJX is thriving while mall brands like The Gap (NYSE: GAP) are struggling. Thus, one reason for TJX’s success is its’ refusal to follow competitors into the mall.
The TJX Companies is far larger than you think; it operates over 4,000 stores in nine countries. In addition, TJX operates three e-commerce sites.
TJX brands include T.J. Maxx, Marshalls, Marmaxx, HomeGoods, Sierra Trading Post, Homsense, HomeGoods, and Winners. The strategy is paying off because TJX claims to have delivered 22 straight years of store sales increases.
To supply its stores TJX works with 20,000 vendors in 100 countries. Therefore, TJX has built an impressive ecosystem it can easily expand online.
An obvious opportunity for TJX is to add an existing online discounter; like eBay (NASDAQ: EBAY), Alibaba (NYSE: BABA), or Overstock.com (NASDAQ: OSTK), to its ecosystem. Importantly, TJX is offering to ship-to-store for items ordered through Sierra Trading Post.
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