DESPITE trouble for other home goods stores, TJ Maxx's parent company, TJX, has been doing quite well.
On Wednesday, the company, which owns TJ Maxx, Marshall's, HomeGoods, and Sierra, shared its earnings from the first quarter of the fiscal year.
Ernie Herrman, chief executive officer and president of the TJX Companies, and John Klinger, executive vice president, and chief financial officer, reported on the extremely profitable first quarter during an earnings call.
Herrman said the results "well exceeded expectations."
The profit increase was largely due in part to steady traffic, including from new, younger customers who have been slowly trickling in over time.
"Our first quarter results are a testament to the strength and resiliency of our flexible off-price business model," he said.
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SHOPPING CHANGES
Part of the business model includes stocking stores with a curated mix of "good, better and best" brands to provide a wide array of price points, attracting people from all different income levels
To do this, the company is always seeking out the best opportunities and "hottest trends" in the marketplace.
Constant new products offer customers a "treasure hunt" shopping experience that they can't get elsewhere, Herrman said.
The company improved its marketing teams and digital media to reach a wide array of shoppers.
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"We don't want to be pigeon-holed into any group of income demographics or fashion looks," he said.
"We want customers from all demographics."
AVOIDING THE 'APOCALYPSE'
All of this comes amid what some are calling a "retail apocalypse."
The phrase was first used by Dennis Dick, a trader at Las Vegas-based Bright Trading LLC, in a conversation with Reuters.
While talking about the 25 percent fall in Walmart's quarterly profit back in May 2022, Dick said: "This is a little bit of a retail apocalypse, it was Walmart and everybody thought it was a one-off."
"Now that Target missed earnings [by] a lot more than Walmart even did, they're scared that the consumer is not as strong as everybody thinks," said Dick.
One of the most notable victims is Bed Bath & Beyond, which plans to close down all its remaining stores by next month.
Some findings have alluded that stores like TJ Maxx could be capitalizing off of merchandise that must be sold off.
There was no mention of that, but the execs did say they "strongly believe" that makes market share opportunities.
They also mentioned that when a Bed Bath & Beyond location closes, "We are taking advantage of that situation," said Herrman.
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For more related changes in the retail space, Kroger's CEO issues a major update after closure plans.
And Sephora has tweaked its popular rewards program.
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