Tjx Companies Global Strategy
2395 words 10 pagesGlobal Strategic Management
A Case Study of the TJX
Kestrel L. Ambrose
American Public University System
TJX Companies, Inc. is known as the world’s leading off-priced retailer of apparel and home fashions. With its steadily growing brand portfolio, the company aims to offer consumers better value proposition than department stores. Keywords: global strategic management, corporate governance, off-price retail,
Global Strategic Management:
A Case Study of The TJX Companies, Inc.
Based in Framingham, Massachusetts, The TJX Companies, Inc. (TJX or “the company”) is the leading retailer of off-priced fashion and home goods merchandise in the United States and worldwide. The company’s brand …show more content…
The company’s opportunistic buying model allows for very flexible, rapid inventory turnover. Most TJX stores receive at least 3 to 4 shipments of new merchandise each week. This buying model is what differentiates the niche off-price segment of the retail industry from traditional retailers. The company acquires its merchandise at substantially low prices as the result of the flows and unpredictability in the apparel and home fashions market which create excess inventories. TJX is able to take advantage of low-price buying opportunities such manufacturer overruns, closeouts, and order cancellations, and in turn is able to offer this merchandise to its customers at significantly reduced prices in comparison to traditional retailers in the industry [ (Annual Report 2012, 2013) ].
In 2011, TJX announced that it had revised its management structure as part of its leadership succession planning [ (The TJX Companies, Inc., 2011) ]. The revision was approved by the company’s board of directors, and delegated the redistributed the responsibilities of the company’s executive officers. Carol Meyrowitz’s contract as the company’s chief executive officer was extended for another 2 years. Meyrowitz still holds the position today, and is also a director of the Board. Nan Stutz heads the HomeGoods and TJX Canada retail divisions; Richard Sherr heads the Marmaxx Group; and Michael MacMillan currently leads TJX Europe.