Flexibility Leading to Success - Tjx Company

Flexibility Leading to Success

The TJX, Companies Inc.

2010 Annual Financial Report

ACC100 – Accounting I

Week 8 Assignment

Winter 2012 - Strayer University

TJX Companies Inc., a 34-year-old company, is commonly known as TJ Maxx, Marshalls, Home Goods and formally AJ Wright. They have a “flexible store format”, as described by the report (TJX Companies Inc.), which allows them to shift merchandise categories quickly as market trends and consumers’ taste change. Their flexibility also allowed them to operate stores in a variety of locations, often having TJ Maxx and Marshalls in a close proximity. Their 2010 annual financial report highlights the variety of their store locations, including Manhattan, Miami, London, and Toronto and how they were able to capitalize of real estate opportunities as well. This summary will discuss the findings of the report, analyze the key points contributing to the company’s successful performance, discuss the companies assets as well as explain how management handles internal control of the company’s financials.

TJX Companies, Inc.’s financial report includes information on how they increased their customer base through increased advertising and upgraded stores. They have a global buying presence of over 14,000 vendors world wide, which is utilized by the more than 700 members of its merchant organization. This “flexible buying program” (TJX Companies Inc.) allows them to keep a lean inventory by purchasing great brands reasonably priced according to the needs of the business as well as keep them on par with the current fashion and pricing trends. They have learned to tailor their merchandising mix for various climates, regions, and customer preferences allowing them to predict the flow of products to the right stores at the right price at the right time. The report also discussed how being a low cost operator has often allowed them to see profit within the first year of opening a new location due to the...