On the heels of a strong fiscal 2025 (which ended Feb. 1, 2025) TJX Companies is ramping up store expansion plans across its roster of banners, which include TJ Maxx, Marshalls, HomeGoods, HomeSense and Sierra.
In fiscal 2025 TJX recorded net sales of $56.4 billion, up 4% from the previous year, with consolidated comparable store sales increasing 4% year over year. The company also opened its 5,000th store, a milestone for the company, and its 1,000th HomeGoods location. Over the course of fiscal 2025, the company opened 131 net new stores to land at 5,085, and that momentum is set to continue, with TJX CEO and President Ernie Herrman saying on a call with analysts that he sees “a significant opportunity to grow our global store base” in the coming years.
New Opportunities to Participate in Off-Price Around the World
The company’s new long-term target has been increased to 7,000 stores, which would mean the addition of 1,900 new locations across all its banners. Much of that long-term growth will come from the HomeGoods brand, accounting for 1,800 stores, with the difference made up by the addition of 325 Sierra stores and 100 stores in Spain, where the company’s first store is set to open in 2026.
As the first step in achieving this long-term target, TJX plans to open 130 net-new stores in the next 12 months, including 40 TJ Maxx or Marshalls locations, 30 HomeGoods stores, 20 Sierra locations and nine HomeSense stores in the U.S. The company also will add 12 new stores in Canada, 22 in Europe and six in Australia. Additionally, 500 stores will be remodeled and approximately 40 stores will be relocated.
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“In addition to our future store growth opportunities, I want to reiterate my excitement for our newly formed joint venture with Grupo Axo in Mexico and our recent investment in Brands for Less in the Middle East,” added Herrman. “We see both of these as a great way to participate in the growth of off-price in different areas of the world.”
Other Brands’ Demise Represents Real Estate Opportunity for TJX
Hermann said this growth will be fueled in part by the closure of a number of large chains in recent months, including Big Lots, Party City, Joann and Bargain Hunt.
“We do see a lot of [real estate] availability going forward,” said Herrman on the call. “As we’ve talked about in the past, we see an opportunity to expand into some more rural areas where the department store of the area closes and we can fill that void. Also, you’re still seeing large-box closures that we have the opportunity to either go into a new area or to relocate a store to a better shopping area.”
TJX Model Makes it Resilient to Tariff, Economic Concerns
With regards to the current upheaval caused by President Trump’s tariff rollercoaster and other economic headwinds, Herrman expressed cautious optimism. He pointed to the fact that direct imports from China represent a very small portion of TJX’s business and highlighted the strength of the company’s buying model.
“The silver lining is that with consumer confidence down and a bit of a rocky environment out there and the way our buyers operate — which is that the buyers go out and they really assess at the retail level what we can retail the product for and then they work backwards to what the cost should be — their strategy is not to factor in tariffs or any other costs that actually can play into the picture here,” Herrman said.
“A few years ago with extreme inflation, we navigated right through that, just as we will on this,” he added. “It’s a different headline, [but] the same approach. So whether there’s tariffs or no tariffs, our buyers’ focus is on buying the goods, determining the cost based off retail that we can put the goods out at. And because of the environment we’re in, where there’s a loss of consumer confidence, stores closing, etc., I’m thinking there’s more availability out there over the next six months, even more than there has been, which is going to create more buying opportunities for our teams.”
