TJ Maxx is one of the few companies that has been in existence for such a long time. The company is recognized as one of the largest retail chains in the United States for its many successes. For over 45 years, TJ Maxx has maintained excellence and has been operating with excellence. While driving around the city, you see their commercials on television and social media platforms. You probably know their motto; "Get the maximum for the minimum." However, what else do you know about this company?
In addition to being a prolific discount department store, TJ Maxx is a favorite among shoppers. Consequently, if you are working on a budget and enjoy fashion, it is easy to choose the Maxx as your destination. "It" refers to your budget, and "Maxx" is the budget retail store that saves you money. The department store is where you can spend a few dollars. However, few people understand the company outside of its work.
We will explore TJ Maxx's history in the following paragraphs of this article in order to familiarize you with the company.
- The Origins of TJ Maxx
- The Establishment of TJX by Zayre
- Tj Maxx: Wins and Losses
- Interesting Facts About TJ Maxx
The Origins of TJ Maxx
TJX Companies, Inc. is the parent company of TJ Maxx. However, TJX Companies were founded in 1962 by two brothers, Stanley and Sumner Feldberg, who established a discount department store chain, Zayre Corp. In the early 1970s, Zayre Corporation enjoyed significant success and had more than 200 stores. The company then ventured into specialty retailing before acquiring other retail stores.
Initially, Zayre acquired Hit or Miss Chain, which caught the attention of Zayre, a giant by comparison, due to the significant success they achieved after only four years. As a result of the acquisition, Zayre continued to expand and become a success, and Bernard Cammarata was appointed as President and CEO.
Having entered the membership warehouse-club market in 1984, Zayre launched BJ's Wholesale Club. Despite the fact that neither of the ventures became profitable immediately, Hit or Miss and TJ Maxx continued to thrive. By 1986, Hit or Miss had opened 420 stores in the United States, and revenues had reached $300 million.
When Zayre's profits targeted at low-income earners began to dwindle in 1986, while those of Hit or Miss and TJ Maxx continued to increase, they opened 31 new Hit and Miss stores and 35 new TJ Maxx stores. As Zayre Corp's off-price retailing chains began to increase, they believed it was prudent to consolidate them under the same brand, giving them autonomy from their parent company.
The Establishment of TJX by Zayre
At a time when Zayre was experiencing rough times, Zayre founded TJX Companies in 1987 and sold about $9.35 million of its shares in its initial public offering, but owned approximately 83% of the company at that time. Despite the challenges resulting from poor maintenance, technological inferiority, stockpiling, and inappropriate pricing, TJX Companies continued to prosper.
During 1988, management decided to sell the entire Zayre chain to concentrate on TJX Companies. They received $431.4 million in cash, an Ames cumulative convertible preferred stock valued at about $140 million at the time, and a receivable note in return. As a result, they continued to focus on profitable new core business and spun off a warehouse division known as Waban, Inc.
As a result of the merger, shareholders were given a Waban share for each two shares of Zayre that they held. Additionally, they received a cash payment of $3.50 per share. The following month, they merged with TJX and changed their name from Zayre Corp. to TJX Companies, Inc. and began trading on the New York Stock Exchange. This transition was relatively seamless.
Tj Maxx: Wins and Losses
For many years, TJX's operations continued to experience solid successes, and by 1991, TJ Maxx was the company's largest and most successful division. Over 430 stores across 46 states have made many achievements in the past fifteen years. Several of the company's existing stores were to be expanded and following up on the success of its shoe and jewelry sales, various departments would be opened in areas where these items were not available. As part of its expansion plans, it intends to open more stores in regions that have yet to be penetrated, such as the southwest region of the country.
Several non-apparel categories, such as domestic items, are performing well according to TJ Maxx History, so they planned to expand these high-performing categories. Since it was necessary to expand some stores, especially the housewares and giftware category, some plans were developed to expand them from 30,000 to 40,000 square feet. In 1966, TJ Maxx opened 21 additional stores and closed 30 others. During that year, the company experienced a five percent increase in sales.
It was determined that TJ Maxx's success was the result of the off-price concept. The concept required rapid inventory turnover at the store level, as well as the use of opportunistic purchasing to obtain items close to the customer's need in the appropriate season. As part of the distribution process, they utilized a sophisticated inventory tracking system and a state-of-the-art distribution system to move merchandise out of the warehouse to the store. By clearing shelves and adding value to customers, they also played an important role using Markdown systems. Thus, about 10,000 items were shipped to each of the over 1,000 stores.
Interesting Facts About TJ Maxx
Let's clear up some misconceptions about TJ Maxx by looking at some of the facts. There is a relatively large amount of unknown information behind the store's concept and inception, as noted below.
The First TJ Maxx Store was Established in 1977
Approximately eight years ago, Bernard Cammarata was hired by a discount retailing corporation, where he was the general merchandise manager of Marshalls when the company began selling home décor and apparel off-price. In accordance with TJ Maxx history, the company opened its first stores in Worcester and Auburn in the year following. The company acquired Marshalls after approximately 18 years as a result of the store's long-standing success.
TJ Maxx has over 1,200 Stores around the World
In January of 2021, TJ Maxx had over 1,200 locations worldwide. The company is a franchise for off-price retailers with many stores that have been highly successful. Additionally, most of these stores have undergone an upgrade or have scheduled an upgrade, or have recently undergone a complete renovation. The result is that the company is creating an environment conducive to and attractive to shopping.
TJ Maxx is not a Discount Store
TJ Maxx operates as an off-price retailer, which means it stocks excess inventory from merchandisers. Discount stores buy merchandise at wholesale prices and sell them at a markup price, though lower than traditional retailers. Inventory is sourced from a number of sources, including manufacturers that produce too much product, department store cancellations, and closeout deals by merchandisers who wish to empty their stores at the end of the season.
TJ Maxx Products are not Damaged or Irregular
TJ Maxx is rumored to sell products that are irregular or damaged, and that is why the products are so inexpensive. However, according to the SheFinds research report, about five percent of all TJ Maxx inventory is defective or damaged; the remaining 95% are products sold to retailers in excellent condition. It is usually TJ Maxx's policy to indicate on the product's tag any condition issues it has, though instances such as those are relatively uncommon.
TK Maxx is the UK’s and Ireland’s version of TJ Maxx’s
The UK division of TJX Corporation was established in 1994 by the company, however a department store chain called T.J. Hughes already existed in the UK at that time, so a slight name change was required to avoid confusion with the existing company. That is why we now have TK. As the UK's equivalent of TJ Maxx, Maxx is now available.
Wednesday is the best shopping day at TJ Maxx
Insider information indicates that TJ Maxx receives the highest number of shipments on Wednesdays, which is why the store marks down the majority of items on Wednesdays. This is the best day to get the best deals and score new products. In addition to markdowns, deals, and offers that can occur at any time of the week except on weekends, some insider information indicates you will likely score the best deals and beat the crowd if you shop during midday during the week, particularly on Wednesdays, Thursdays, and Fridays.
Yellow means “Go” at TJ Maxx
Yellow tags on merchandise at TJ Maxx indicate that the product is at its lowest and final price markdown—it is at its lowest and final price. Regular price merchandise is marked down with white labels, which are close to the retail price of the item. However, be cautious of those products with white labels since, according to some reports, the price may be inflated when you believe the product is the best value.
Everything is at a discount price at TJ Maxx
In order to help people find what they need at a low price, the store prides itself on helping them find what they need without costing them a lot. You can get almost anything they sell at a discounted price at TJ Maxx, including designer merchandise sold in certain regions. You will find such top designer deals in a special section referred to as The Runway. The Runway merchandise is usually marked purple when shopping at TJ Maxx. Fashion items such as Gucci, Saint Laurent, Celine, and others have been found by some shoppers.
Customers at TJ Maxx continue to be excited about the store's offerings. People both within the store and outside are looking forward to discovering new things. Tomorrow, you may enter TJ Maxx to buy something, but you may end up with exciting new items you never imagined you would be able to obtain at such a reasonable cost. In light of TJ Maxx's history of outstanding achievement and adaptability and innovation, we can only look forward to what the store will become in the future.