Not good times for TJX companies!
The American fashion giant, which owns iconic brands like TJ Maxx and Marshalls, fell big in more than 4 months following its prediction that there could be a drop of 20 per cent in sales in the current quarter.
The retailer also said that it expects comparable store sales to fall by 10 to 20 per cent at stores that opened in the quarter.
Notably, TJX reopened over 4,500 stores in as many as 9 countries in last 3 months.
The prediction made by the fashion retailer has put to rest all its efforts to bring back the discount-seeking consumers to its stores.
Here it is important to note that the retailer has shunned e-commerce operation and has focussed on providing out-of-the-world in-store experience to its shoppers – something that hasn’t been working with shoppers still wary of going out.
Also, there have been piles of apparels at TJ Maxx, especially during lockdowns, but TJX says that the overall product availability in the marketplace remains excellent.
Yes, lean inventory and merchandise strength, according to Bloomberg’s report, are good signs for the retail group, but the biggest concern will be the material deceleration in sales in the present quarter.
It will be interesting to observe how the quarter and the remaining year turns out for the retailer.
