In the rapidly evolving digital era, The TJX Companies -- parent company of T.J. Maxx, Marshalls, and HomeGoods -- would seem to be an unlikely winner. The retailer is highly reliant on sales from brick-and-mortar stores, which afford a treasure hunt-style shopping experience, and it has unpredictable inventory because it sources excess goods from manufacturers and retailers.
- TJX operates under a unique off-price retail model, focusing on selling brand-name and designer merchandise at deep discounts.
- TJX sources its merchandise from various channels, including department store cancellations, manufacturer overstocks, and end-of-season closeouts.
- Constantly rotating inventory keeps customers engaged.
- Meanwhile, TJX cultivates strong relationships with vendors, often purchasing incomplete assortments of stock and not requiring return privileges, allowing them to acquire merchandise at attractive prices.
- This enables a streamlined supply chain that ensures stores are well-stocked with in-demand merchandise.
The company's comparable store sales increased 4% in the most recent fiscal year, driven by mid-single-digit growth across all its core divisions. The company also reported net income of $4.9 billion, up about 9% from the prior fiscal year. TJX stock is another long-term value play among apparel stocks, and it pays a decent dividend to boot.