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Will TJX Companies' Marketing & Saving Efforts Aid Growth?
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The TJX Companies, Inc. (TJX - Free Report) is undertaking initiatives to enhance offline and online businesses. Also, the company’s marketing strategies along with robust loyalty programs bodes well. Moreover, cost-saving efforts amid several coronavirus-led woes like retail store closures are noteworthy.
What’s Aiding TJX Companies’ Growth?
TJX Companies remains committed toward boosting growth, through effective marketing initiatives and loyalty programs. The company’s aggressive marketing and advertising campaigns through multiple mediums (TV, radio and social media) have been adding growth. Moreover, TJX Companies gift-giving initiatives, unique among off-price retailers and loyalty card program have also been helping to improve customer engagement. Notably, the company offers consumers a non-credit card choice and soft benefits such as early shopping hours under its loyalty programs.
With increasing number of consumers resorting to online shopping, TJX Companies has undertaken robust initiatives to boost online sales and strengthen its e-commerce business. Although the company had temporarily shut down online businesses via tjmaxx.com, marshalls.com, and sierra.com amid the coronavirus outbreak, it has now resumed four e-commerce websites in the United States and the U.K.
Moreover, TJX Companies has an aggressive store-opening strategy. The company regularly opens stores and expands fast across the United States, Europe, Canada and Australia. While many retailers are resorting to permanent store closures, TJX Companies opened 16 new stores in first-quarter fiscal 2021, taking the total count to 4,545 as of May 2. Although the company has made certain adjustments to its new store opening strategy amid COVID-19 it is an integral part of its growth story in the long term. We believe that TJX Companies’ off-price model along with its strategic store locations, impressive brands and fashion products, are likely to drive performance in stores and online.
Hurdles on the way
TJX Companies’ top-line plunged about 53% year over year in first-quarter fiscal 2021. Sales in the quarter were affected by temporary store closures due to the coronavirus pandemic and expenses related to inventory write-down as well as payroll. Apart from these, an unfavorable foreign currency translation is a concern.
Nevertheless, TJX Companies’ has cut down on capital spending to the tune of $400-$600 million compared with the previous projection of $1.4 billion for fiscal 2021 to strengthen its financial position amid the crisis. Additionally, the company has lowered operating expenses and other costs related to distribution center, home office, ongoing variable and discretionary costs as well as IT. With restrictions to check the coronavirus outbreak being lifted, TJX Companies is on track with reopening closed stores as well as online operations.
We note that shares of this Zacks Rank #3 (Hold) company have gained 15.4% in the past three months compared with the industry’s growth of 14%.
Big Lots (BIG - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 7.1%.
The Kroger (KR - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 5.5%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Will TJX Companies' Marketing & Saving Efforts Aid Growth?
The TJX Companies, Inc. (TJX - Free Report) is undertaking initiatives to enhance offline and online businesses. Also, the company’s marketing strategies along with robust loyalty programs bodes well. Moreover, cost-saving efforts amid several coronavirus-led woes like retail store closures are noteworthy.
What’s Aiding TJX Companies’ Growth?
TJX Companies remains committed toward boosting growth, through effective marketing initiatives and loyalty programs. The company’s aggressive marketing and advertising campaigns through multiple mediums (TV, radio and social media) have been adding growth. Moreover, TJX Companies gift-giving initiatives, unique among off-price retailers and loyalty card program have also been helping to improve customer engagement. Notably, the company offers consumers a non-credit card choice and soft benefits such as early shopping hours under its loyalty programs.
With increasing number of consumers resorting to online shopping, TJX Companies has undertaken robust initiatives to boost online sales and strengthen its e-commerce business. Although the company had temporarily shut down online businesses via tjmaxx.com, marshalls.com, and sierra.com amid the coronavirus outbreak, it has now resumed four e-commerce websites in the United States and the U.K.
Moreover, TJX Companies has an aggressive store-opening strategy. The company regularly opens stores and expands fast across the United States, Europe, Canada and Australia. While many retailers are resorting to permanent store closures, TJX Companies opened 16 new stores in first-quarter fiscal 2021, taking the total count to 4,545 as of May 2. Although the company has made certain adjustments to its new store opening strategy amid COVID-19 it is an integral part of its growth story in the long term. We believe that TJX Companies’ off-price model along with its strategic store locations, impressive brands and fashion products, are likely to drive performance in stores and online.
Hurdles on the way
TJX Companies’ top-line plunged about 53% year over year in first-quarter fiscal 2021. Sales in the quarter were affected by temporary store closures due to the coronavirus pandemic and expenses related to inventory write-down as well as payroll. Apart from these, an unfavorable foreign currency translation is a concern.
Nevertheless, TJX Companies’ has cut down on capital spending to the tune of $400-$600 million compared with the previous projection of $1.4 billion for fiscal 2021 to strengthen its financial position amid the crisis. Additionally, the company has lowered operating expenses and other costs related to distribution center, home office, ongoing variable and discretionary costs as well as IT. With restrictions to check the coronavirus outbreak being lifted, TJX Companies is on track with reopening closed stores as well as online operations.
We note that shares of this Zacks Rank #3 (Hold) company have gained 15.4% in the past three months compared with the industry’s growth of 14%.
Top 3 Retail Picks
Dollar General (DG - Free Report) which sports a Zacks Rank #1 (Strong Buy), has a long-term earnings growth rate of 12.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Big Lots (BIG - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 7.1%.
The Kroger (KR - Free Report) , which sports a Zacks Rank #1, has a long-term earnings growth rate of 5.5%.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>