TJX to Launch HomeGoods E-commerce as the Category Fuels Stellar Q3
Retail Dive | November 23, 2020
In a performance that topped analyst expectations in several measures, off-price retailer TJX Cos., which runs T.J. Maxx, Marshalls, HomeGoods, Sierra and Homesense, third quarter net sales fell 3.2% year over year to $10.1 billion.
Store comps, excluding e-commerce and locations closed due to the pandemic, fell 5%, according to a company press release. Total inventories as of Oct. 31 declined to $5 billion from $6.3 billion in the year-ago quarter, due to planning, stronger-than-expected sales and supply chain bottlenecks.
The company's strong play in home worked to its benefit in the quarter, as stay-at-home orders fuel a boom in the category. The company announced it will roll out e-commerce for HomeGoods later next year. Like most off-pricers, TJX otherwise maintains a slim e-commerce effort in order to encourage an in-store treasure hunt. Rivals Burlington and Ross don't sell online at all, citing difficult logistics and slim margins in selling apparel through the digital channel.
"We believe the launch of homegoods.com next year could expand the consumer base and attract a younger consumer," MKM Partners Managing Director Roxanne Meyer