TJX operates major off-price retail divisions including Marmaxx, HomeGoods, TJX Canada, TJX International, and Sierra Trading Post. In fiscal year 2016, TJX had over 3,600 stores globally, selling brand-name merchandise at lower prices than department and specialty stores. TJX relies on opportunistic buying from over 18,000 vendors in over 100 countries to provide constantly changing assortments to its core customers of fashion and value-conscious women ages 25-54.
2. TJX… A Portfolio of Four Major Off-Price Divisions
Store Count
Year End FY16
Avg. Store
Size (sq. ft.)
Primary
Classifications
Marmaxx1 (U.S.)
HomeGoods (U.S.)
TJX Canada
Winners
HomeSense
Marshalls
TJX International
T.K. Maxx (Europe)
HomeSense (U.K. only)
Trade Secret (Australia)
2,163
526
245
101
41
456
39
35
TOTAL3 3,614
29,000 Family Apparel, Home
26,0002 Home
28,000
24,0002
30,000
Family Apparel, Home
Home
Family Apparel, Home
30,000
21,000
22,000
Family Apparel, Home
Home
Family Apparel, Home
1 T.J. Maxx and Marshalls
2 Stand alone stores
3 Total includes 8 Sierra Trading Post stores
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3. What is Off-Price Retailing?
• Brand-name merchandise at great values
• Opportunistic buying
• Substantially lower prices than department and specialty
store regular prices
• Rapidly changing assortments
• Lean inventory management
• Low cost structure
3
4. Consolidated Comp Store Sales
23 17 9 4 10 6 10 5 1 6 2 5 2 0 -2 7 6 5 5 2 3 3 1 3 1 3 2 1 6 4 4 7 3 2 5
Consolidated Comparable Store Sales %
= Recessions
Comparable store sales for fiscal years commencing in 2005 are on a constant currency basis.
Prior years include the impact of foreign exchange to the extent it was applicable.
FY ’82 ’83 ’84 ’85 ’86 ’87 ’88 ’89 ’90 ’91 ’92 ’93 ’94 ’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13 ’14 ’15 ’16
4
5. Who Is Our Core Customer?
• Female
• Between 25-54 years old
• Middle to upper-middle income
• Fashion and value conscious
• Shops high-end and moderate department / specialty stores
and online
5
7. Global Sourcing Machine
• 18,000+ vendors
• Top 25 vendors approximately 20% of purchase universe
• Source product in more than 100 countries
• 1,000+ people in buying organization
• Over $30B in sales in FY16
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8. Key TJX Success Factors
• Commitment to off-price value since the beginning
• World-class buying organization
• Strong, mutually beneficial vendor relationships
• Global supply chain and distribution network
• One of the most flexible retailers in the world
• Wide customer demographic reach
• Ability to leverage highly integrated international teams /
infrastructure
• Successful growth in different economies and geographies
• Financial strength, excellent returns
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9. The TJX Companies, Inc. Safe Harbor Statement
UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:
Various statements made in this presentation are forward-looking and involve a number of risks and uncertainties. All
statements that address activities, events or developments that we intend, expect or believe may occur in the future
are forward-looking statements. The following are some of the factors that could cause actual results to differ
materially from the forward-looking statements: execution of buying strategy and inventory management; operational
and business expansion and management of large size and scale; customer trends and preferences; various marketing
efforts; competition; personnel recruitment, training and retention; labor costs and workforce challenges; data security;
information systems and new technology; economic conditions and consumer spending; adverse or unseasonable
weather; serious disruptions or catastrophic events; disruptions in the second half of the fiscal year; corporate and
retail banner reputation; quality, safety and other issues with merchandise; expanding international operations;
merchandise importing; commodity availability and pricing; fluctuations in currency exchange rates; fluctuations in
quarterly operating results and market expectations; mergers, acquisitions, or business investments and divestitures,
closings or business consolidations; compliance with laws, regulations and orders and changes in laws, regulations and
applicable accounting standards; outcomes of litigation, legal proceedings and other legal or regulatory matters; tax
matters; real estate activities; cash flow and other factors that may be described in our filings with the Securities and
Exchange Commission. We do not undertake to publicly update or revise our forward-looking statements even if
experience or future changes make it clear that any projected results expressed or implied in such statements will not
be realized.
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