Following a successful fiscal year, TJX Companies plans substantial growth with new store openings and international ventures.
TJX Companies is poised for significant growth following a strong fiscal year ending February 1, 2025. The company reported net sales of $56.4 billion, a 4% increase compared to the previous year, with consolidated comparable store sales rising at the same rate. This period marked several milestones, including the opening of its 5,000th store and its 1,000th HomeGoods location. Throughout fiscal 2025, TJX opened a total of 131 new stores, bringing the total to 5,085 locations globally.
Ernie Herrman, CEO and President of TJX, highlighted the company’s ambition to expand beyond its current footprint, stating during a call with analysts that there is “a significant opportunity to grow our global store base” in the coming years. The company has now set a long-term target of increasing its store count to 7,000, signaling plans to add approximately 1,900 new retail locations across its various banners, which include TJ Maxx, Marshalls, HomeGoods, HomeSense, and Sierra.
The majority of this anticipated growth is expected to come from the HomeGoods brand, which aims to account for around 1,800 new stores. Additional plans include the establishment of 325 Sierra stores and 100 new locations in Spain, marking the company’s first foray into that market, with the first store expected to open in 2026.
To kick off this ambitious growth strategy, TJX plans to launch 130 net-new stores within the next year. This expansion includes 40 new TJ Maxx or Marshalls locations, 30 HomeGoods stores, 20 Sierra locations, and nine HomeSense stores across the U.S. Other regions will see expansions as well, with 12 stores planned in Canada, 22 in Europe, and six in Australia. In addition, approximately 500 existing stores will undergo renovations, and around 40 stores will be relocated to enhance customer access.
In his remarks, Herrman expressed enthusiasm about TJX’s recent joint venture with Grupo Axo in Mexico, along with an investment in Brands for Less in the Middle East, viewing these partnerships as advantageous avenues for participating in the global off-price retail growth.
This expansion is expected to be facilitated by the closures of several large chain stores in the recent past, including Big Lots, Party City, Joann, and Bargain Hunt. Herrman noted that the availability of real estate resulting from these closures presents a strategic opportunity for TJX. He remarked, “We do see a lot of [real estate] availability going forward.” He indicated potential for growth into more rural areas where existing department stores have shut down, allowing TJX to fill the resulting gaps in the market.
Additionally, Herrman conveyed cautious optimism regarding the economic challenges currently facing retailers, particularly those brought on by tariffs and shifting consumer confidence. He emphasized that direct imports from China constitute a minimal portion of TJX’s overall business model. “The silver lining is that with consumer confidence down and a bit of a rocky environment out there…their strategy is not to factor in tariffs or any other costs that actually can play into the picture here,” Herrman said.
He noted that the company’s purchasing strategy—where buyers assess retail pricing and work backward to determine acceptable costs—positions TJX to navigate economic volatility effectively. Herrman concluded, “whether there’s tariffs or no tariffs, our buyers’ focus is on buying the goods, determining the cost based off retail that we can put the goods out at.” Overall, he anticipates that the current retail landscape will increase availability and further enhance buying opportunities for TJX in the foreseeable future.
Source: Noah Wire Services
