What changed in this filing

/stocks — the workspaceLOADING

Item 1. Business

2024-04-03 compared with 2023-03-29 · 46 added, 69 removed, 175 unchanged (40% of the section changed)

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(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 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.

We have over 4,900 stores and six 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.

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

In this report, fiscal 2024 means the 53-week fiscal year ended February 3, 2024;

fiscal 2023 means the 52-week fiscal year ended January 28, 2023 and fiscal 2022 means the 52-week fiscal year ended January 29, 2022.

Fiscal 2025 means the 52-week fiscal year ending February 1, 2025.

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.

Unless otherwise indicated, all store information in this Item 1 is as of February 3, 2024, and references to store square footage are to gross square feet.

Our Businesses

We operate our business in four main segments:

Marmaxx and HomeGoods, both in the U.S., TJX Canada and TJX International.

Marmaxx and HomeGoods, both in the U.S., TJX Canada and TJX International, including Europe and Australia.

In addition to our four main segments, we operate the Sierra business.

The results of Sierra are included with the Marmaxx segment.

Maxx and Marshalls chains in the United States (“Marmaxx”) are collectively the largest off-price retailer in the United States with a total of 2,482 stores.

We founded T.J.

Maxx in 1976 and acquired Marshalls in 1995.

Our TJ Maxx and Marshalls chains in the United States (“Marmaxx”) are collectively the largest off-price retailer in the United States with a total of 2,516 stores.

We founded TJ Maxx in 1976 and acquired Marshalls in 1995.

Both chains sell family apparel (including footwear and accessories), home fashions (including home basics, decorative accessories and giftware) and other merchandise.

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 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.

This differentiated shopping experience at T.J.

Maxx and Marshalls encourages our customers to shop both chains.

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

This differentiated shopping experience at TJ Maxx and Marshalls encourages our customers to shop both chains.

Marmaxx currently operates two e-commerce sites, tjmaxx.com, launched in 2013 and marshalls.com, launched in 2019.

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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.

Through its 919 stores, 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.

Our 46 Homesense stores complement HomeGoods, offering a differentiated mix and expanded departments, such as large furniture, ceiling lighting and rugs, as well as a general store and an entertaining marketplace.

Our 55 Homesense stores complement HomeGoods, offering a differentiated mix and expanded departments, such as large furniture, ceiling lighting, rugs, and an entertainment marketplace.

Our TJX Canada segment operates the Winners, HomeSense and Marshalls chains in Canada.

Winners is the leading off-price family apparel and home fashions retailer in Canada and was acquired by TJX in 1990.

Winners operates 297 stores, with select stores offering jewelry and some featuring The Runway, a high-end designer department.

Winners, acquired by TJX in 1990, operates 302 stores and is the leading off-price family apparel and home fashions retailer in Canada.

HomeSense introduced the off-price home fashions concept to Canada in 2001.

This chain operates 151 stores and offers an array of home decor, basics, furniture, and seasonal home merchandise.

Marshalls, launched in Canada in 2011, operates 106 stores and offers off-price values on family apparel and home fashions.

Marshalls has an expanded dress department, and The CUBE, a juniors’ department.

This chain operates 158 stores and offers an array of home decor, furniture, and seasonal home merchandise.

Marshalls, launched in Canada in 2011, operates 106 stores and offers off-price apparel, footwear, and home fashions.

TJX INTERNATIONAL

Our TJX International segment operates the T.K.

Maxx and Homesense chains in Europe and the T.K.

Maxx chain in Australia.

Launched in 1994, T.K.

Maxx introduced off-price retail to Europe and remains Europe’s only major brick-and-mortar off-price retailer of apparel and home fashions.

With 629 stores in Europe, T.K.

Maxx operates in the U.K., Ireland, Germany, Poland, Austria and the Netherlands.

Through its stores and its e-commerce site for the U.K., tkmaxx.com, T.K.

Maxx offers a merchandise mix similar to T.J.

Our TJX International segment operates the TK Maxx and Homesense chains in Europe and the TK Maxx chain in Australia.

Launched in 1994, TK Maxx introduced off-price retail to Europe and remains Europe’s largest major brick-and-mortar off-price retailer of apparel and home fashions.

With 644 stores in Europe, TK Maxx operates in the U.K., Ireland, Germany, Poland, Austria and the Netherlands.

Through its stores and its e-commerce sites, tkmaxx.com, launched in 2009 and tkmaxx.de and tkmaxx.at, both launched in 2023, TK Maxx offers a merchandise mix similar to TJ Maxx.

We brought the off-price home fashions concept to Europe, opening Homesense in the U.K.

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and HomeSense in Canada.

We acquired Trade Secret in Australia in 2015 and re-branded it under the T.K.

Maxx name during 2017.

The merchandise offering at T.K.

Maxx in Australia's 74 stores is comparable to T.J.

We acquired Trade Secret in Australia in 2015 and re-branded it under the TK Maxx name during 2017.

The merchandise offering at TK Maxx in Australia's 80 stores is comparable to TJ Maxx.

Flexible Business Model

Our flexible off-price business model, including our opportunistic buying, inventory management, logistics and flexible store layouts, is designed to deliver our customers a compelling value proposition of fashionable, quality, brand name and designer merchandise at excellent values every day.

Our flexible business model, including our opportunistic buying, inventory management, logistics and flexible store layouts, is designed to deliver to our customers a compelling value proposition of fashionable, quality, brand name and designer merchandise at excellent values every day.

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.

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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.

Manufacturers, retailers and other vendors made up our expansive and changing universe of more than 21,000 vendors across the globe, including thousands of new vendors in 2023, which provides us substantial and diversified access to merchandise.

We believe a number of factors provide us excellent access on an ongoing basis to leading branded merchandise and make us an attractive channel for many vendors in the market.

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Inventory Management

We offer our customers a rapidly changing selection of merchandise to create a treasure hunt experience in our stores and to spur frequent customer visits.

We offer our customers a rapidly changing selection of merchandise to create a treasure hunt experience in our stores and to encourage frequent customer visits.

To achieve this, we seek to turn the inventory in our stores rapidly, regularly offering fresh selections of apparel and home fashions at excellent values.

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Low Cost Operations

We operate with a low cost structure compared to many traditional retailers.

We focus aggressively on expenses throughout our business.

We operate with a low cost structure compared to many traditional retailers with a prudent focus on expenses throughout our business.

Our advertising is generally focused on promoting our retail banners rather than individual products, including at times promoting multiple banners together, which contributes to our advertising budget (as a percentage of sales) remaining low compared to many traditional retailers.

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We strategically renovate and upgrade our stores across our retail banners to enhance our customers’ shopping experience and help drive sales.

Although we offer a self-service format, we train our store Associates to provide friendly and helpful customer service and seek to staff our stores to deliver a positive shopping experience.

We typically offer customer-friendly return policies.

We train our store Associates to provide friendly and helpful customer service and seek to staff our stores to deliver a positive shopping experience.

We believe we offer return policies that are customer-friendly.

We accept a variety of payment methods including cash, credit cards and debit cards.

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through a bank, but do not own the customer receivables.

We operate distribution centers encompassing approximate ly 26 million square feet in six countries .

We operate distribution centers encompassing approximately 31 million square feet in six countries .

These centers are generally large, and built to suit our specific, off-price business model, with a combination of automated systems and manual processes to manage the variety of merchandise we acquire.

We ship substantially all of our merchandise to our stores through a network of distribution centers, fulfillment centers and warehouses as well as shipping centers operated by third parties.

We ship substantially all of our merchandise to our stores through a network of distribution centers, fulfillment centers and warehouses as well as shipping centers operated in many cases by third parties.

Expansion of our business through the addition of new stores continues to be an important part of our global growth strategy.

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Fiscal 2023 Fiscal 2024

Maxx 27,000 1,284 1,299

TJ Maxx 27,000 1,299 1,319

Marshalls 28,000 1,183 1,197

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TJX International:

Maxx (Europe) 28,000 618 629

TK Maxx (Europe) 28,000 629 644

Homesense (Europe) 19,000 78 79

Maxx (Australia) 21,000 68 74

TK Maxx (Australia) 21,000 74 80

Total TJX International 781 803 1,125 (a)

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4,835 4,954 6,275

(a) Reflects store growth potential for T.K.

Maxx in current geographies and for Homesense in the United Kingdom and Ireland.

(a) Reflects store growth potential for TK Maxx in current geographies and for Homesense in the United Kingdom and Ireland.

(b) Includes 78 Sierra stores in fiscal 2023 and 95 Sierra stores for fiscal 2024.

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The retail apparel and home fashion business is highly competitive.

We compete on the basis of numerous factors including brand, fashion, price, quality, selection and freshness;

We compete on numerous factors including brand, fashion, price, quality, selection and freshness;

in-store and online shopping experience and service;

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Human Capital

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.

As of February 3, 2024, we had approximately 349,000 employees (who we refer to as Associates), many of whom worked less than 40 hours per week.

Approximately 85% 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 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.

Our large, global workforce supports the execution of our flexible business model, including the timing and frequency of store deliveries and the management of a rapidly changing mix of merchandise in over 4,900 retail stores in nine countries and across six e-commerce sites.

We believe our Associates are key to our business success.

Workplace and Culture

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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.

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 use leadership competency and cultural factors focused on inclusion-based values and behaviors in our Leadership Development Toolkit.

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 workforce reflects a diversity of races, ethnicities, sexual orientations, gender identities, abilities, experiences, religions, and much more, 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;

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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.

Over the past two years, with the benefit of information gathered from a global inclusion and diversity survey of our Associates, 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

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Compensation and Rewards

Our compensation programs are designed to pay our Associates competitively in the market and based on their skills, experience level, qualifications, role and abilities.

Our compensation programs are designed to pay our Associates competitively in the market and equitably, based on their skills, qualifications, role and abilities.

Our approach to compensation across the organization reflects our global total rewards principles, which include encouraging teamwork and collaboration, being fair and equitable, and sharing in the success of the Company.

For fiscal 2024, we continued our One TJX approach to annual incentive compensation, with all eligible Associates measured against global TJX performance goals.

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

Maxx, Marshalls, HomeGoods, Winners, Homesense/HomeSense, T.K.

Maxx, Sierra and Sierra Trading Post, in relevant countries.

We have the right to use our principal trademarks and service marks, which are TJ Maxx, Marshalls, HomeGoods, Winners, Homesense/HomeSense, TK Maxx and Sierra, in relevant countries.

We expect our rights in these trademarks and service marks to endure in locations where we use them for as long as we continue to do so.

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INFORMATION ABOUT OUR EXECUTIVE OFFICERS

The following are the executive officers of TJX as of March 29, 2023:

The following are the executive officers of TJX as of April 3, 2024:

Name Age Office and Business Experience

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Various financial positions with TJX from 1988 to 2008.

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.

Executive Vice President, Finance from June 2009 to January 2012.

Senior Vice President, Corporate Controller from 2007 to 2009 and Senior Vice President, Director of Finance, Marmaxx, from 2000 to 2007.

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

Louise Greenlees 61 Senior Executive Vice President, Group President since June 2022.

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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.

John Klinger 59 Senior Executive Vice President and Chief Financial Officer since February 2024.

Executive Vice President and Chief Financial Officer from January 2023 to February 2024.

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

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Chief Executive Officer from January 2007 to January 2016.

Director since 2006 and President from 2005 to January 2011.

Director since 2006 and President from October 2005 to January 2011.

Consultant to TJX from January 2005 to October 2005.

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President, TJX Canada from October 2011 to February 2018.

Managing Director T.K.

Maxx, UK from April 2010 to October 2011.

Managing Director TK Maxx, UK from April 2010 to October 2011.

Executive Vice President, Chief Operating Officer, WMI from February 2006 to April 2010.

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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