New chain will complement HomeGoods
Savvy shoppers may be scratching their heads right now because TJX Companies already has a home furnishings concept in HomeGoods. And HomeGoods is pretty good at what it does, offering home fashions in kitchen essentials, rugs, lighting, bedding, bath, furniture and more all at up to 60% off regular department store prices!
But the idea with the as-yet-unnamed second chain will be to complement — not compete — with HomeGoods.
‘Our approach will be to differentiate these two U.S. home concepts to encourage customers to shop both stores,’ TJX CEO Ernie Herrman said on a Feb. 22 earnings call.
‘We’ve been testing many of those home categories for the last year, year and a half [and] that’s allowing us to plant the seeds and feel a high degree of confidence on what this store can do for business,’ he added.
Few details about the new chain have emerged beyond the fact that it is coming. But we do know that it’s expected to make use of TJX’s existing distribution centers, supply chain and buyer organization to get up and running.
That idea of two similar stores under the same umbrella that both encourage repeat visits in a cross-promotional kind of way is nothing new for TJX. It’s the very business model that’s propelled the success of T.J. Maxx and Marshalls, which have 1,186 and 1,035 locations, respectively.
HomeGoods, meanwhile, is more like the little kid brother of TJX Companies that doesn’t get the attention its older siblings get.
But don’t downplay the store’s impact. With just 579 locations, HomeGoods is able to pull more female primary household shoppers looking for home decor than the old guard of J.C. Penney, Macy’s or Sears. That’s according to a recent study from Kantar Retail.
Meanwhile, 80 new HomeGoods stores are on tap this year in addition to the imminent launch of the second home furnishings chain.