TJX Companies

The TJX Companies, Inc. (abbreviated TJX) is an American multinational off-price department store corporation, headquartered in Framingham, Massachusetts.[5] It was formed as a subsidiary of Zayre Corp. in 1987, and became the legal successor to Zayre Corp. following a company reorganization in 1989.

Not to be confused with THX.
The TJX Companies, Inc.
Formerly
Zayre Corp.
Public
Traded as
ISINUS8725401090 
IndustryRetail
Founded1987 (1987)
FounderBernard Cammarata
HeadquartersMA,
Framingham, Massachusetts
,
U.S.
Number of locations
4,412 (August 3, 2019)
Area served
Worldwide
Key people
Carol Meyrowitz
(Executive Chairman)
Ernie Herrman
(President, CEO)
Scott Goldenberg (CFO)
Raina Avalon (CLO)
Mark Beyerly (CIO)
Products
  • Clothing
  • footwear
  • bedding
  • food
  • furniture
  • jewelry
  • beauty products
  • housewares
RevenueUS$38.937 billion (2018)
US$4.17 billion (2018)
US$3.060 billion (2018)
Total assetsUS$14.326 billion (2018)
Total equityUS$5.05 billion (2018)
Number of employees
270,000 (2018)
Divisions
  • HomeGoods
  • Marmaxx
  • TJX Canada
  • TJX International
Websitetjx.com
Footnotes / references
[1][2][3][4]

As of 2019, TJX operates the brands TJ Maxx (in the United States) and TK Maxx (in Europe), Marshalls, HomeGoods, HomeSense, Sierra in the United States, and HomeSense, Marshalls, Winners in Canada. There are over 3,300 discount stores in the TJX portfolio located in more than six countries.[6] TJX ranked No. 85 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[7]

History

Stanley Feldberg was one of the 1956 founders of Zayre Corp. He served as president of the company until 1978, and afterwards remained on the Board of Directors, until he retired in 1989.[8] Once the company had sold off the "Zayre" name, the company consisted of its one core remaining store brand, T.J.Maxx.[8] The next year, in 1990, TJX expanded into an additional store brand division, and at the same time it first went international, as it entered the Canadian market by acquiring the five-store Winners chain.[8] Two years later, it launched its third brand, HomeGoods, in the United States.[8] TJX's expansion beyond North America came in 1994, when the fourth brand division, T.K. Maxx, was founded in the United Kingdom, and then expanded into Ireland.[8]

In 1995, TJX doubled in size when it acquired Marshalls, its fifth brand. T.J.Maxx and Marshalls later became consolidated as two brands under a single division, The Marmaxx Group.[8][9] The following year, TJX Companies Inc. was added to the Standard & Poor's S&P 500 Composite Index, which consists of 500 of the largest companies in the United States.[10]

TJX launched a sixth brand, A.J. Wright, in 1998 in the eastern U.S. The brand went national in 2004 when it opened its first stores in California on the west coast.[8] The company's seventh brand division, HomeSense, formed in 2001, was a Canadian brand modeled after the existing US brand, HomeGoods.[8]

In 2002, TJX revenue reached almost $12 billion.[8] In mid-2003, TJX acquired an eighth brand division, Bob's Stores, concentrated in New England. In Canada, TJX began to configure some Winners and HomeSense stores side-by-side as superstores. The superstores feature open passageways between them, with dual branding. TJX's revenue in 2003 reached over $13 billion.[8] TJX began to test the side-by-side superstore model in the United States in 2004, combining some of each of the two Marmaxx brand stores with HomeGoods. The company reached 141st position in the 2004 Fortune 500 rankings, with almost $15 billion in revenue. That year was also marked by the death of retired Zayre founder Stanley Feldberg.[8]

In April 2008, TJX launched the HomeSense brand in the UK, with six stores opening throughout May. The brand is more upmarket than its Canadian namesake. Later that year, in August, TJX sold Bob's Stores to Versa Capital Management and Crystal Capital.[11]

In December 2010, TJX announced that the A.J. Wright stores would be closed, cutting about 4,400 jobs, and that more than half of them would reopen under other company brands.[12]

In July 2015, TJX acquired the Trade Secret and Home Secret off-price retail businesses from Australian company Gazal Corporation Limited. The deal was completed in December.[13] In October, Ernie Herrman was named CEO of the company, replacing Carol Meyrowitz.[14] He took over in January 2016.[14]

In November 2019, TJX purchased a 25% stake in Russian retailer Familia.[15]

Computer systems intrusion

On January 17, 2007, TJX announced that it was the victim of an unauthorized computer systems intrusion. It discovered in mid-December 2006 that its computer systems were compromised and customer data was stolen.[16] The hackers accessed a system that stores data on credit card, debit card, check, and merchandise return transactions.[17] The intrusion was kept confidential as requested by law enforcement. TJX said that it is working with General Dynamics, IBM and Deloitte to upgrade computer security.

By the end of March 2007, the number of affected customers had reached 45.7 million[18] and has prompted credit bureaus to seek legislation requiring retailers to be responsible for compromised customer information saved in their systems. In addition to credit card numbers, personal information such as social security numbers and driver's license numbers from 451,000 customers were downloaded by the intruders. The breach was possible due to a non-secure wireless network in one of the stores.[19]

Eleven men have been charged in the theft, and one (Damon Patrick Toey) has pleaded guilty to numerous charges related to the breach.[20] One man, Jonathan James, professed his innocence and later committed suicide, apparently out of the belief that he was going to be indicted.[21]

The alleged ringleader Albert Gonzalez was indicted in August 2009 with attacking Heartland Payment Systems in which 130 million records were compromised.[22]

List of brands

Current brands
Brand Year founded Year acquired by TJX No. of locations Countries in operation[23]
Australia Austria Canada Germany Ireland Netherlands Poland UK US
HomeGoods 1992 N/A 783 NoNoNoNoNoNoNoNoYes
HomeSense 2001 N/A 227 NoNoYesNoYesNoNoYesYes
Marshalls 1956 1995 1,198 NoNoYesNoNoNoNoNoYes
Sierra 1986 2012 39 NoNoNoNoNoNoNoNoYes
TJ Maxx 1976 N/A 1,260 NoNoNoNoNoNoNoNoYes
TK Maxx 1994 N/A 631 YesYesNoYesYesYesYesYesNo
Winners 1982 1990 274 NoNoYesNoNoNoNoNoNo

Former brands
Brand Year founded Year defunct Year acquired by TJX Year divested by TJX Notes
AJWright 1998 2011 N/A N/A Stores liquidated or converted to other TJX brands
BJ's Wholesale Club 1984 N/A 1988 1989 BJ's and HomeClub spun off from TJX to form Waban
Bob's Stores 1954 N/A 2003 2008 Sold to Versa Capital Management and Crystal Capital
Home Club 1983 2002 1985 1989 BJ's and HomeClub spun off from TJX to form Waban
The Maxx 2006 2006 N/A N/A
StyleSense 2008 2012 N/A N/A
Trade Secret 1992 2017 2015 N/A Stores converted to TK Maxx
Zayre 1956 1990 N/A 1988 Sold to Ames Department Stores, which facilitated the Waban spin-off and TJX reorganization

References
  1. The Wall Street Journal, "TJX Chairman, Founder Bernard Cammarata to Retire".
  2. Fortune 500, TJX.
  3. Annual Report 2018 .
  4. Form 10-Q (Q1 2019) .
  5. "The TJX Companies, Inc. Announces CEO Succession Plans; Carol Meyrowitz to Be Named CEO" (Press release). TJX. Business Wire. September 7, 2006. Retrieved November 13, 2018.
  6. "Carol Meyrowitz". Forbes. Retrieved July 10, 2018.
  7. "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved November 10, 2018.
  8. 2004 Annual Report
  9. Gilpin, Kenneth N. (October 17, 1995). "TJX Will Buy Marshalls Chain From Melville". The New York Times. ISSN 0362-4331. Retrieved February 8, 2018.
  10. Sam Stovall, Sector Investing, McGraw Hill, 1996, Appendix A, The S&P 500 Composite Index, ISBN 0-07-052239-1
  11. "TJX Sells Bob's Stores Chain To Versa Capital, Crystal Capital, Terms Undisclosed". Financial Wire. Financial Wire. August 20, 2008. Retrieved September 22, 2008.
  12. "TJX Plans to Close A.J. Wright Stores, Cut 4,400 Jobs". Bloomberg.com. US Retail News. December 10, 2010. Retrieved December 10, 2010.
  13. "TJX acquires Australian retailer Trade Secret - The Boston Globe". BostonGlobe.com. Retrieved February 8, 2018.
  14. Convey, Eric (October 7, 2015). "Meet Ernie Herrman, the new CEO of T.J. Maxx-parent TJX Cos". Boston Business Journal. Retrieved April 2, 2020.
  15. Carlock, Catherine (November 20, 2019). "TJX buys $225M stake in Russian discount retailer". Boston Business Journal. Retrieved April 2, 2020.
  16. "THE TJX COMPANIES, INC. VICTIMIZED BY COMPUTER SYSTEMS INTRUSION; PROVIDES INFORMATION TO HELP PROTECT CUSTOMERS" (Press release). The TJX Companies, Inc. January 17, 2007. Retrieved December 12, 2009.
  17. Lavoie, Denise (January 18, 2007). "Credit cos. watchful after TJX breach". Archived from the original on January 23, 2007. Retrieved January 18, 2007.
  18. Largest Customer Info Breach Grows. MyFox Twin Cities, March 29, 2007.
  19. Pereira, Joseph (May 4, 2007). "Breaking the code: How Credit-Card Data Went Out Wireless Door". Wall Street Journal.
  20. Tomsho, Rob (September 12, 2008). "Hacker Pleads Guilty In TJX Security Breach". Wall Street Journal. ISSN 0099-9660. Retrieved September 12, 2012.
  21. Poulsen, Kevin (July 9, 2009). "Former Teen Hacker's Suicide Linked to TJX Probe". Wired. Retrieved October 29, 2009.
  22. "Hacker Charged With Heartland, Hannaford Breaches - wired.com - August 17, 2009". wired.com. Retrieved April 21, 2018.
  23. Shaw, Hollie. "TJX to open Marshalls in Canada". Financial Post. Retrieved April 21, 2018.

Sources
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