TJX Companies' Not So Secret Weapon
"Motley FoolApril 18, 2018. As the current retail environment winnows out the weakest players, it's also rewarding muscular organizations which are happily thriving, despite disruption wrought by Amazon.com, not to mention rapidly shifting consumer shopping habits and preferences.", "Recently I was reminded of what a resilient enterprise TJX Companies(NYSE: TJX) has proven to be, when writing about, of all things, Dollar General Corp.'s (NYSE: DG) current-year ambitions to improve profitability.", 'A philosophy of avoiding predictable product inventory runs across TJX\'s multiple brands: T.J. Maxx ("T.K. Maxx" abroad), Marshalls, HomeGoods, Sierra Trading Post, and the recently launched Homesense.', 'Primarily, organizations avoid the carrying costs (financing, warehousing, insuring, etc.) associated with holding goods for long periods. And selling inventory quickly trims the potential for product obsolescence. But perhaps not so obviously, companies with high inventory turnover rates simply need less infrastructure to grow sales. For example, TJX was able to able to sell approximately $36 billion worth of merchandise in 2017 across just 4,000 stores globally (e-commerce accounts for just 2% of total revenue).'