Business Analysis

Submitted by: Submitted by

Views: 470

Words: 2668

Pages: 11

Category: Business and Industry

Date Submitted: 05/22/2012 07:46 PM

Report This Essay

TJX Business Analysis

Esha Patrick


February 30, 2012

In today’s economy, consumers are always trying to save a dollar. That is why the TJX Companies, Inc. takes advantage of this competitive business opportunity by being conveniently located, carrying the latest fashion, offering a 30 day layaway plan and providing consumers with the best bang for their buck. The website for the TJX Companies, Inc (2011) stated their mission is to “Deliver a rapidly changing assortment of fashionable, quality, brand name merchandise at prices that are 20-60% less than department and specialty store regular prices, every day”.

The recent down turn in the economy has introduced a new group of consumers to the TJX companies; during a time when the economy is down the TJX companies have experienced record revenues. According to the website for the TJX Companies, Inc. (2011) “Whether the economy is weak or strong, we believe that value is here to stay!” The TJX Companies are based on value and offer consumer’s name brand items a lower cost than regular department stores. With that in mind there’s no wonder why this company continues to see consistent sells during a time when most consumers are cutting back. The TJX companies everyday low price strategy, which is great during a recession or down turn in the economy. TJX has initiated cost reductions this allows the company to continue to offer lower prices on merchandise. The website for the TJX Companies, Inc. (2011) reports “We have seen the benefit of our major cost reduction initiatives over the past several years and in 2011, we are planning $50-$75 million in cost reductions”.

Business Opportunity

The retail apparel and home fashion business is a highly competitive market, but TJX is the leading off-price retailer of these items. The TJX companies own some of the most upscale off-price stores in the world such as T.J. Maxx, Marshalls, HomeGoods, and A. J. Wright. These off-price retail stores offer consumers...