The department store company announced plans for a new chain that will focus on the home decor market.The TJX Companies family of stores is about to get larger, as the department store company recently announced plans for a new chain that will focus on the home decor market. The parent company of discount retailers TJ Maxx and Marshall’s already has an expanding presence in the home furnishings market thanks to its HomeGoods stores, but the company sees bigger things on the horizon for the home-focused market in general.
As shared on Clark.com, the currently unnamed chain will serve as a complementary offering to HomeGoods and not as a competitor.
"Our approach will be to differentiate these two U.S. home concepts to encourage customers to shop both stores. We've been testing many of those home categories for the last year, year and a half that's allowing us to plant the seeds and feel a high degree of confidence on what this store can do for business," explained TJX CEO Ernie Herrman on the company’s recent earnings call.
The earnings call was held after the company’s fourth-quarter results were released, and the company as a whole knocked it out of the park by beating earnings and revenue estimates. As for the HomeGoods division, the brand saw a robust increase of five percent in comparable store sales, and the department as a whole has continued to grow since its inception.
Few details are known about the new concept, outside of the fact that it will be a complementary brand that will likely use TJX’s existing distribution centers, supply chains, and purchasing organizations to hit the ground running. That gives it a strong leg up on any other new entries into the home decor market, as TJX’s business model and infrastructure have already been put to the test via other successful brands under the company’s umbrella.
The company has also proven that the complementary brand strategy can work quite nicely, as it’s well known that TJ Maxx and Marshall’s are sister stores. As such, cross promotions have encouraged repeat visits to both stores, and shoppers have grown accustomed to searching out both spots for the best deals. That same strategy could be a home run for HomeGoods and its still-to-be-named sister concept, especially if the complementary products angle is marketed successfully.
There’s no word on when we can expect the first of the new concepts stores to open its doors, but it’s safe to assume other retailers have sat up and taken notice of TJX’s new foray.
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24 FEBRUARY 2017, USA