Despite announcements of store closings, particularly in the New York City and Chicago markets, TJX Corp. continues to add locations in the United States and worldwide.
Some adjustment of retail strategy at TJX is evident, including its recent decision to end e-commerce operations at HomeGoods, something the company confirmed but did not further explain.
In the TJX second quarter conference call, John Klinger, TJX CFO, noted the company would open about 125 new stores in the current fiscal year, with some scheduled for earlier debuts pushed back until fall. The growth would represent a 3% gain in store count. In the second quarter, TJX, which operates Marshalls, TJ Maxx, HomeGoods and Home Sense, opened 19 new stores with 10 in the United States, including six HomeGoods locations.
TJX, according to published reports, TJX confirmed it plans to close one T.J. Maxx store and one Marshalls store in Chicago; and one TJ Maxx store and one Marshalls store in New York City. The affected stores are set to close by January 6, 2024, according to reports. The four stores are part of a store base of 4,884 TJX stores worldwide, according to the retailer, which said it typically closes a small number of stores each year.
The closings in Chicago and New York City come amid challenges in those markets related to retail theft. On November 8, New York announced it was launching a retail crime task force under Deputy Mayor for Public Safety Philip Banks due to a significant rise in pilferage. The task force comes as the city released its Retail Crime Report, which indicated New York had experienced a five-year retail crime complaint increase for 77% to 2022. Perhaps more disturbing was a gain of 45% from 2021 to 2022.
Chicago leaders, meanwhile, have launched multiple initiatives to combat retail crime. However, Chicago still faces challenges, ranking tied with Sacramento, CA, for seventh among U.S. cities that are affected by organized retail, according to the National Retail Federation’s Retail Security Survey for 2023. New York ranks fourth.
TJX is closing only two locations each in the New York City and Chicago markets, representing a small change in penetration of the two metro markets. The four stores are part of a store base of 4,884 TJX stores worldwide, according to the retailer.
TJX acknowledged an email from HomePage News requesting clarification on its closing initiatives, but the company had not responded to specific inquiries by press time.
