TJX Companies (TJX) has just laid down the gauntlet to any retailer selling home furnishings.
The company will launch a second home concept later this year, TJX CEO Ernie Herrman said on the company's earnings call on Wednesday morning.
The move comes after "many years" of successful growth both at its HomeGoods stores (which now has 579 locations in the U.S.) and in its home business across the company, he said.
"Our approach will be to differentiate these two U.S. home concepts to encourage customers to shop both stores," Herrman said on the call.
TJX plans to leverage its existing distribution centers, supply chain and buyer organization, which is similar to what the company did when it launched Marshalls in Canada.
While the company is "proud" to have grown HomeGoods' customer base for many years, it believes the company remains significantly under-penetrated in the total U.S. home furnishings market.
During the most recent quarter, HomeGoods domestic comparable-store sales climbed 5% vs. an increase of 7% last year.
Comparable-store sales for the company rose 3% in the quarter driven by customer traffic, topping analysts' expectations for growth of 2.6%. Executives on the call said they were pleased with traffic trends this year and growth in new customers across all divisions, particularly with millennial shoppers.
But Herrman said there is still "enormous opportunity" to keep growing U.S. and international market share.
TJX also beat fourth-quarter earnings and revenue estimates today. Shares rose slightly to $76.21.
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