T.J. Maxx Takes a Unique Approach to Post-Pandemic Recovery

Reopening Stores

While most retail stores rushed to move business online during the pandemic, T.J. Maxx (TJX) took a different approach. The discount department store chain only had a small online presence before the pandemic hit and stopped taking online orders altogether during lockdowns. The company is betting customers who have been stuck at home or only visiting the grocery store will be more eager than ever to browse its aisles in person.

TJX Cos., the parent company of T.J. Maxx, also owns Marshalls, HomeGoods, and several other discount chains. It operates over 4,500 stores around the world, and as of June 17, about 85% of its stores have reopened.

Other Retailers Shift Away From Brick-and-Mortar Stores

As TJX works to return to pre-pandemic normalcy by drawing shoppers back to brick-and-mortar stores, many other retailers are doing the opposite. Some are making permanent changes to their business plans and shifting focus away from physical stores.

Index group (IDEXY), which owns Zara and other fast-fashion brands, plans to permanently close up to 1,200 stores. Walmart (WMT) is investing heavily in ecommerce, anticipating that people will keep shopping online for groceries and other items, even after the pandemic subsides.

The Draw of the T.J. Maxx Experience

For T.J. Maxx and other discount retailers like Ross Stores Inc. and Burlington Stores Inc., margins are small for online sales. In fact, before the pandemic, only about 2% of T.J. Maxx’s sales came from ecommerce. So instead of shifting their entire business model, TJX and similar stores are leaning into what they do best: offer an experience.

The company’s CEO, Ernie Herman, explained how the T.J. Maxx shopping experience might be just what people are looking for after being stuck inside. He says, “In today’s environment, we believe this kind of shopping experience can serve as a break in the day and as some ‘me time’ for our customers and in the future will continue to be a major draw for consumers to our stores.”

Herman reported that for now, the strategy is proving successful. Shoppers are flocking to stores, driving sales higher than they were this time last year.

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT SoFi SoFi helps people achieve financial independence to realize their ambitions. Our products for borrowing, saving, spending, investing, and protecting give our more than one million members fast access to tools to get their money right. SoFi membership comes with the key essentials for getting ahead, including career advisors and connection to a thriving community of like-minded, ambitious people. For more information, visit SoFi.com. Want an easy and convenient way to manage your financial life? Get the SoFi app. For iOS and Android.

TLS 1.2 Encrypted
Equal Housing Lender