TJX Plans to Stay True to Hands-On Shopping Post COVID-19

TJX, the parent company of TJ Maxx, Marshall’s, and Home Goods, claims it doesn’t need to rely on e-commerce. In regard to the company’s plans post-coronavirus, CEO Ernie Herrman was quoted in Forbes magazine, saying, “Strategically, nothing will change. We will not look to e-commerce as our major leverage point to get us through Covid and out the other side.”

Both before the COVID-19 pandemic and now, it is clear that TJX does not see e-commerce as a worthwhile path to pursue. Before the pandemic, TJX’s online revenue accounted for just 2% of their total sales. Compared to other retail stores whose online sales averaged closer to 15%, it’s clear that TJX stores present considerable strength in their brick and mortar settings. In fact, TJX’s websites were actually shut down for two weeks at the end of March, while it seemed every other retailer was scrambling to get their online sales up amid physical store closures. Even now, TJ Maxx’s website limits the number of orders placed per day in order to “get back up and running.”

TJX prides itself on being a bargain-hunting style of retail, where loyal customers explain the experience of excitedly searching through items and finding the best deal as central to the TJX brand. When stores reopened earlier this month, TJ Maxx and Marshall’s had lines out of their doors of eager shoppers looking to feel that sweet high of a major discount after months spent in quarantine. This “treasure-hunt experience” is why TJX executives are leaning away from rather than into the growing land of e-commerce.

While some experts say TJX’s decision to mostly steer clear of online sales will come back around to hurt them later, some say the opposite. The company’s sales are skyrocketing after their grand re-opening. It seems there is a built-up demand for lower priced items as many people try for financial caution during a time of economic crisis.

Photo Credits:

https://www.cincinnati.com/story/news/2019/11/27/t-j-maxx-homegoods-marshalls-sold-products-after-recalls-were-announced/4317120002/

https://seekingalpha.com/article/4073764-buy-tjx-companies-discount-price

https://www.heraldcourier.com/news/large-crowd-greets-marshalls-grand-opening-this-morning/article_4e555208-c8b7-11e4-a459-f3d74e9b807c.html

https://www.forbes.com/sites/stevendennis/2019/10/08/late-to-the-e-commerce-party-what-marshalls-at-home-and-others-got-wrong/#49615d812470

Report: Grace Carlos