Outstanding year for TK Maxx
Like-for-likes sales up 6 per cent for branded fashion discounter
February 25 2004
T.K. Maxx has had an ‘outstanding’ year following new store openings and expansion of existing outlets, according to US parent company TJX.
The UK chain exceeded sales and profit expectations across the year, with total sales of $992m up 26.5 per cent, and comparable store sales up 6 per cent in local currency. In the fourth quarter, including the key Christmas and New Year period, comparable store sales were up 5 per cent.
TK Maxx’s profit growth was driven by its merchandising and inventory strategies, said TJX. The focus is on branded fashion and homeware at discounted prices.
Some existing stores were expanded with the addition of mezzanine floor space, while 24 new stores were opened to bring the UK and Ireland total to 147.
There are plans to open 25 TK Maxx stores this year, with the company believing the UK and Irish markets could support up to 300 outlets.
TJX, which also operates the TJ Maxx and Marshalls chains in the US, has reported sales of $13.3bn for 2003, up 11 per cent.
Comparable store sales increased by 1 per cent overall, with the US chains hit by what the company said was a ‘very promotional retail landscape’.
Edmond English, President and Chief Executive Officer of TJX said: “While comparable store sales were below our expectations, our new stores across all of our divisions posted excellent results, which bodes well for the future growth of our Company. We added 219 stores company-wide and grew our selling square footage base by 10 per cent.”
The acquisition of the Bob’s Stores chain in 2003 brought total store numbers worldwide to 2,062.
