T.J. Maxx parent steps up expansion

FRAMINGHAM, Mass. — Department stores just got a double dose of bad news.

The parent company of T.J. Maxx and Marshalls, which have taken a bigger share of clothing spending by selling popular brands at deep discounts, plans to expand even faster and test a new home store that’s different from its highly successful HomeGoods chain.

TJX Cos. said Wednesday it will add 1,800 stores for a global total of 5,600 over the long term. And though it didn’t offer details about the new home store, company executives said the goal is to make it distinct enough from HomeGoods that people will shop at both. The first four are planned for this fiscal year.

The expansion plans were announced as TJX announced fourth-quarter results that topped Wall Street expectations, bolstered by strong sales during the holiday season.

“Looking ahead, we feel great about our prospects for growth in the near and long-term and building our market share,” CEO Ernie L. Herrman told investors.

TJX has been one of the bright spots in retail since the Great Recession and has drawn shoppers away from mall-based stores as it rapidly expands and offers more merchandise. It now has more than 3,800 stores with annual sales of $33.1 billion, compared to just under 2,800 stores with $21.9 billion in sales six years ago. Traditional department stores are testing the off-price concept as they look to bolster sales, but they’re also cutting back on their number of stores.

“It is a testament to the strength of TJX that this full fiscal (year) marks the 21st consecutive year of positive same-store sales; there are few in retail that can boast such a long period of sustained performance,” Neil Saunders, managing director of research firm GlobalData Retail, said.