What changed in this filing

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Item 1. Business

2023-03-29 compared with 2022-03-30 · 44 added, 36 removed, 200 unchanged (29% of the section changed)

2 unchanged sentences

(together with its subsidiaries, “TJX,” the “Company,” “we,” or “our”) is the leading off-price apparel and home fashions retailer in the United States and worldwide.

We have nearly 4,700 stores and five distinctive branded e-commerce sites that offer a rapidly changing assortment of quality, fashionable, brand name and designer merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty, and major online retailers) regular prices on comparable merchandise, every day.

We have over 4,800 stores and five distinctive branded e-commerce sites that offer a rapidly changing assortment of quality, fashionable, brand name and designer merchandise at prices generally 20% to 60% below full-price retailers’ (including department, specialty, and major online retailers) regular prices on comparable merchandise, every day.

Our mission is to deliver great value to our customers every day.

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Further, we can leverage the substantial buying power of our businesses with our global vendor relationships.

During fiscal 2022, our business operations continued to be impacted by the COVID-19 pandemic.

In addition to the temporary closures and reopenings of some of our stores, the pandemic has led to continued modifications of our operations, and has had an impact on our results of operations, financial position and liquidity, as well as consumer behavior.

See Risk Factors and Management’s Discussion and Analysis of Financial Condition a nd Results of Operations below for more information.

In this report, fiscal 2022 means the fiscal year ended January 29, 2022;

fiscal 2021 means the fiscal year ended January 30, 2021 and fiscal 2020 means the fiscal year ended February 1, 2020.

Fiscal 2023 means the fiscal year ending January 28, 2023.

In this report, fiscal 2023 means the 52-week fiscal year ended January 28, 2023;

fiscal 2022 means the 52-week fiscal year ended January 29, 2022 and fiscal 2021 means the 52-week fiscal year ended January 30, 2021.

Fiscal 2024 means the 53-week fiscal year ending February 3, 2024.

Unless otherwise indicated, all store information in this Item 1 is as of January 28, 2023, and references to store square footage are to gross square feet.

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We primarily differentiate T.J.

Maxx and Marshalls through different product assortment, including an expanded assortment of jewelry and accessories and a high-end designer section called The Runway at T.J.

Maxx and Marshalls through different product assortment, including an expanded assortment of jewelry and accessories and a high-end designer department called The Runway at T.J.

Maxx and a full line of footwear and a broader men’s offering at Marshalls, as well as varying in-store initiatives.

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Sierra, acquired in 2012 and rebranded from Sierra Trading Post in 2018, is a leading off-price retailer of brand name active and outdoor apparel, footwear, and gear (including sporting goods, snow and water sport, camping, fishing) for the whole family, as well as home fashions and pet.

Sierra operates sierra.com and 59 retail stores in the U.S.

Our HomeGoods chain, introduced in 1992, is the leading off-price retailer of home fashions in the U.S.

Through its 850 stores and its e-commerce site homegoods.com launched in 2021, HomeGoods offers an eclectic assortment of home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop and cookware as well as expanded pet, kids and gourmet food departments.

Sierra operates 78 retail stores in the U.S.

and sierra.com.

Our HomeGoods segment operates HomeGoods and Homesense chains.

HomeGoods, introduced in 1992, is the leading off-price retailer of home fashions in the U.S.

Through its 894 stores and its e-commerce site, homegoods.com, launched in 2021, HomeGoods offers an eclectic assortment of home fashions, including furniture, rugs, lighting, soft home, decorative accessories, tabletop and cookware, as well as expanded pet and gourmet food departments.

In 2017, we launched our Homesense chain in the U.S.

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Our buying and inventory management strategies give us flexibility to adjust our merchandise assortments more frequently than traditional retailers, and the design and operation of our stores and distribution centers support this flexibility.

Our buyers have more visibility into consumer, fashion and market trends and pricing when we buy closer to need, which can help us “buy smarter” and reduce our markdown exposure.

Our buyers have more visibility into consumer, fashion and market trends and pricing when we buy closer to need, which can help us buy better and reduce our markdown exposure.

Our selling floor space is flexible, without walls between departments and largely free of permanent fixtures, so we can easily expand and contract departments to accommodate the merchandise we purchase.

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Our global buying strategies are intentionally flexible to allow us to react to frequently changing opportunities and trends in the market and to adjust how and what we source as well as when we source it.

Our goal is to operate with lean inventory levels compared to conventional retailers to give us the flexibility to seek out and to take advantage of these opportunities as they arise, close to the time it is needed in our stores and online and when we have more visibility into fashion trends and price.

Our goal is to operate with lean inventory levels compared to conventional retailers to give us the flexibility to seek out and to take advantage of these opportunities as they arise, close to the time the merchandise is needed in our stores and online and when we have more visibility into fashion trends and price.

In contrast to traditional retailers, which tend to order most of their goods far in advance of the time the product appears on the selling floor, our merchants generally remain in the marketplace for goods throughout the year, frequently looking for opportunities to buy merchandise.

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We also acquire some merchandise that we offer under in-house brands or brands that are licensed to us.

We develop some of this merchandise ourselves in order to supplement the depth of, or fill gaps in, our expected merchandise assortment.

Manufacturers, retailers and other vendors make up our expansive universe of approximately 21,000 vendors, including thousands of new vendors in 2021, across the globe, which provides us substantial and diversified access to merchandise.

We develop some of this merchandise ourselves, which allows us to supplement the depth of, or fill gaps in, our expected merchandise assortment.

Manufacturers, retailers and other vendors made up our expansive universe of approximately 21,000 vendors across the globe, including thousands of new vendors in 2022, which provides us substantial and diversified access to merchandise.

We have not experienced difficulty in obtaining sufficient quality merchandise for our business in either favorable or difficult retail environments and expect this will continue as we continue to grow.

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We are typically willing to purchase less-than-full assortments of items, styles and sizes as well as quantities ranging from small to very large;

we are able to disperse merchandise across our geographically diverse network of stores and to target specific markets;

we typically pay promptly according to our payment terms;

we generally do not ask for typical retail concessions (such as advertising, promotional and markdown allowances), delivery concessions (such as drop shipments to stores or delayed deliveries) or return privileges;

we are able to disperse merchandise across our geographically diverse network of store s and to target specific markets;

we pay promptly according to our payment terms;

our practice is to not ask for typical retail concessions (such as advertising, promotional and markdown allowances), delivery concessions (such as drop shipments to stores or delayed deliveries) or return privileges;

and we have an excellent credit rating.

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We do this by offering quality, fashionable, brand name and designer merchandise in our stores with retail prices that are generally 20% to 60% below full-price retailers’ (including department, specialty, and major online retailers) regular prices on comparable merchandise, every day.

We do not generally engage in promotional pricing activity such as sales or coupons.

Our practice is to not engage in promotional pricing activity such as sales or coupons.

We have generally been able to react to price fluctuations in the wholesale market to maintain our pricing gap relative to prices offered by traditional retailers as well as our merchandise margins through various economic cycles.

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Human Capital

As of January 29, 2022, we had approximately 340,000 employees (who we refer to as Associates), many of whom work less than 40 hours per week.

As of January 28, 2023, we had approximately 329,000 employees (who we refer to as Associates), many of whom worked less than 40 hours per week.

Approximately 86% of these Associates worked in our retail stores.

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Many Associates in our distribution centers in the United States and Canada are covered by collective bargaining agreements and other Associates are members of works councils in Europe.

Our large, global workforce supports the execution of our flexible off-price business model, including the timing and frequency of store deliveries and the management of a rapidly changing mix of merchandise in nearly 4,700 retail stores in nine countries and across five distinctive branded e-commerce sites.

We believe our Associates are key to our business success, and we have remained committed to prioritizing the health and safety of our Associates and customers throughout the COVID-19 pandemic.

Our large, global workforce supports the execution of our flexible off-price business model, including the timing and frequency of store deliveries and the management of a rapidly changing mix of merchandise in over 4,800 retail stores in nine countries and across five distinctive branded e-commerce sites.

We believe our Associates are key to our business success, and we have remained committed to prioritizing the health and safety of our Associates.

Workplace and Culture

1 unchanged sentence

We use defined cultural factors and leadership competencies throughout our global business to express our organizational values, such as personal integrity, relationship-building and collaboration, and respect for our business model, and to promote consistency in leadership development.

We have expanded our cultural factors and leadership competencies to include an explicit reference to inclusion and diversity.

Our policies and practices, including our open-door philosophy, encourage open and honest communication and engagement with the business.

The health and safety of our Associates continued to be a top priority during fiscal 2022, as we continued to manage health and safety protocols to address the evolving pandemic across our global operations and maintained many of our broad-based initiatives during fiscal 2022.

Inclusion and Diversity

We are committed to building a more inclusive and diverse workplace.

Our priorities include a focus on three core areas:

increasing the representation of diverse talent through our talent pipeline, providing leaders with the tools needed to successfully manage individual differences, and integrating inclusive behaviors, language, and practices throughout the business.

Our teams globally are working to support these focus areas with many new programs, including recruitment strategies, mentoring programs, training and education, Associate-led Inclusion and Diversity advisory boards, and additional Associate Resource Groups.

In fiscal 2022, we included new leadership competency and cultural factors focused on inclusion-based values and behaviors, which we began to incorporate into our Leadership Development Toolkit during fiscal 2023.

We believe our policies and practices, including our open-door philosophy, encourage open and honest communication and Associate engagement with the business.

Inclusion and Diversity (“I&D”)

Our global workforce reflects a diversity of races, ethnicities, cultures, nationalities, and genders, and we are committed to continuing to build and support an inclusive and diverse workplace.

Our global strategies include increasing the representation of diverse talent through our talent pipeline;

providing leaders with tools to support difference with awareness, fairness, sensitivity, and transparency;

and integrating inclusive behaviors, language and practices throughout the business.

Over the past two years, our teams globally have developed and launched many new programs, including recruitment strategies, training and education, Associate-led I&D advisory boards, and additional Associate Resource Groups.

Training and Career Development

Our culture prioritizes Associate development and advancement within our organization and we have many Associates in managerial positions who have been with the Company for more than 10 years.

We are highly focused on teaching and mentoring to support the career growth and success of our Associates, and we believe these efforts have promoted retention, stability, and increased expertise in our workforce.

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For fiscal 2023, we continued our One TJX approach to annual incentive compensation, with all eligible Associates measured against global TJX performance goals.

We also paid discretionary bonuses to the vast majority of our Associates, including those in our stores and distribution centers, that recognizes the significant contributions of our workforce.

We have the right to use our principal trademarks and service marks, which are T.J.

16 unchanged sentences

Various financial positions with TJX from 1988 to 2008.

Scott Goldenberg 68 Senior Executive Vice President and Chief Financial Officer since April 2014;

Scott Goldenberg 69 Senior Executive Vice President, Finance since January 2023.

Senior Executive Vice President and Chief Financial Officer from April 2014 to January 2023;

Executive Vice President and Chief Financial Officer from January 2012 to April 2014.

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Various financial positions with TJX from 1983 to 1988 and 1997 to 2000.

Louise Greenlees 60 Senior Executive Vice President, Group President since June 2022.

President, TJX Europe from January 2015 to June 2022.

Managing Director, TJX Europe from January 2014 to January 2015.

Group Buying Director, TJX Europe from April 2013 to January 2014.

Homesense Managing Director, from December 2010 to April 2013.

Ernie Herrman 62 Chief Executive Officer since January 2016.

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Various merchandising positions with TJX since joining in 1989.

John Klinger 58 Executive Vice President and Chief Financial Officer since January 2023.

Executive Vice President, Corporate Controller from 2019 to January 2023.

Senior Vice President, Corporate Controller from 2015 to 2019.

Senior Vice President, Divisional Chief Financial Officer, TJX Europe from 2011 to 2015.

Vice President, Corporate Finance from 2011 to 2011.

Vice President, Divisional Chief Financial Officer for AJWright from 2007 to 2011.

Various financial positions with TJX since joining in 2000.

Carol Meyrowitz 69 Executive Chairman of the Board since January 2016.

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Various store operations positions with TJX from 1988 to 2004.

Richard Sherr 65 Senior Executive Vice President, Group President since January 2012.

President, HomeGoods from 2010 to 2012.

Chief Operating Officer, Marmaxx from 2007 until 2010.

Various merchandising positions at TJX from 1992 to 2007.

The executive officers hold office until the next annual meeting of the Board in June 2023 and until their successors are elected and qualified.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business