TJX Companies

The TJX Companies, Inc.
Public
Traded as
Industry Retail
Founded 1956 (1956) (as Zayre)
Headquarters Framingham, Massachusetts, U.S.
Products
  • Clothing
  • footwear
  • bedding
  • furniture
  • jewelry
  • beauty products
  • housewares
Revenue IncreaseUS$29.1 billion (2014)[1]
Number of employees
 198,000
Divisions
Website www.tjx.com

The TJX Companies, Inc. (NYSE: TJX), is an American apparel and home goods company based in Framingham, Massachusetts. It claims to be the largest international apparel and home fashions off-price department store chain in the United States. The company evolved from the Zayre discount department store chain, founded in 1956, which opened its first branch of T.J.Maxx in 1976 and its first BJ's Wholesale Club in 1984. In 1988, Zayre sold its nameplate to rival Ames, and T.J.Maxx was renamed "The TJX Companies, Inc.".

Since 2007, the company's CEO has been Carol Meyrowitz. The board has elected the new company CEO to be Ernie Herrman who is due to take over January 31st 2016. The corporate headquarters are located at 770 Cochituate Road in Framingham, Massachusetts.[2]

TJX nameplates

 United States
 Canada
 United Kingdom
 Republic of Ireland
 Australia
 Germany
 Poland
 Austria
 Netherlands
Former chains

History

Stanley Feldberg was one of the 1956 founders of Zayre Corp. He served as president of the company until 1978, and afterwards remained on the Board of Directors, until he retired in 1989.[4] Once the company had sold off the "Zayre" name, the company consisted of its one core remaining store brand, T.J.Maxx.[4] The next year, in 1990, TJX expanded into an additional store brand division, and at the same time it first went international, as it entered the Canadian market by acquiring the five-store Winners chain.[4] Two years later, it launched its third brand, HomeGoods, in the United States.[4] TJX's expansion beyond North America came in 1994, when the fourth brand division, T.K. Maxx, was founded in the United Kingdom, and then expanded into Ireland.[4]

In 1995, TJX doubled in size when it acquired Marshalls, its fifth brand. T.J.Maxx and Marshalls later became consolidated as two brands under a single division, The Marmaxx Group.[4] The following year, TJX Companies Inc. was added to the Standard & Poor's S&P 500 Composite Index, which consists of 500 of the largest companies in the United States.[5]

TJX launched a sixth brand, A.J. Wright, in 1998 in the eastern U.S. The brand went national in 2004 when it opened its first stores in California on the west coast.[4] The company's seventh brand division, HomeSense, formed in 2001, was a Canadian brand modeled after the existing US brand, HomeGoods.[4]

In 2002, TJX revenue reached almost $12 billion.[4] In mid-2003, TJX acquired an eighth brand division, Bob's Stores, concentrated in New England. In Canada, TJX began to configure some Winners and HomeSense stores side-by-side as superstores. The superstores feature open passageways between them, with dual branding. TJX's revenue in 2003 reached over $13 billion.[4] TJX began to test the side-by-side superstore model in the United States in 2004, combining some of each of the two Marmaxx brand stores with HomeGoods. The company reached 141st position in the 2004 Fortune 500 rankings, with almost $15 billion in revenue. That year was also marked by the death of retired Zayre founder Stanley Feldberg.[4]

In April 2008, TJX launched the HomeSense brand in the UK, with six stores opening throughout May. The brand is more upmarket than its Canadian namesake. Later that year, in August, TJX sold Bob's Stores to Versa Capital Management and Crystal Capital.[6]

In December 2010, TJX announced that the A.J. Wright stores would be closed, cutting about 4,400 jobs, and that more than half of them would reopen under other company brands.[7]

In July 2015, TJX acquired the Trade Secret and Home Secret off-price retail businesses from Australian company Gazal Corporation Limited. The deal will be completed December 2015.

Computer systems intrusion

On January 17, 2007, TJX announced that it was the victim of an unauthorized computer systems intrusion. It discovered in mid-December 2006 that its computer systems were compromised and customer data was stolen.[8] The hackers accessed a system that stores data on credit card, debit card, check, and merchandise return transactions.[9] The intrusion was kept confidential as requested by law enforcement. TJX said that it is working with General Dynamics, IBM and Deloitte to upgrade computer security.

By the end of March 2007, the number of affected customers had reached 45.7 million [10] and has prompted credit bureaus to seek legislation requiring retailers to be responsible for compromised customer information saved in their systems. In addition to credit card numbers, personal information such as social security numbers and driver's license numbers from 451,000 customers were downloaded by the intruders. The breach was possible due to a non-secure wireless network in one of the stores.[11]

Eleven men have been charged in the theft, and one (Damon Patrick Toey) has pleaded guilty to numerous charges related to the breach.[12] One man, Jonathan James, professed his innocence and later committed suicide, apparently out of the belief that he was going to be indicted.[13]

The alleged ringleader Albert Gonzalez was indicted in August 2009 with attacking Heartland Payment Systems in which 130 million records were compromised.[14]

Restatement

On February 11, 2000, the company restated the quarterly sales and earnings of 1999.[15]

Notes

  1. ↑ CNN Money: Fortune 500 FY2010
  2. ↑ "The TJX Companies, Inc. Announces CEO Succession Plans". http://investor.tjx.com/phoenix.zhtml?c=118215&p=irol-newsArticle&ID=903202. External link in |website= (help);
  3. ↑ http://www.financialpost.com/open+Marshalls+Canada/3300522/story.html
  4. 1 2 3 4 5 6 7 8 9 10 11 2004 Annual Report
  5. ↑ Sam Stovall, Sector Investing, McGraw Hill, 1996, Appendix A, The S&P 500 Composite Index, ISBN 0-07-052239-1
  6. ↑ Financial Wire (2008 August 20). TJX Sells Bob's Stores Chain To Versa Capital, Crystal Capital, Terms Undisclosed. Financial Wire, Retrieved September 22, 2008, from http://www.tradingmarkets.com/.site/news/Stock%20News/1836096/
  7. ↑ US Retail News (10 December 2010). TJX Plans to Close A.J. Wright Stores, Cut 4,400 Jobs. Bloomberg.com, Retrieved December 10, 2010, from http://www.bloomberg.com/news/2010-12-10/tjx-plans-to-convert-or-shut-its-a-j-wright-stores-cut-4-400-positions.html
  8. ↑ "THE TJX COMPANIES, INC. VICTIMIZED BY COMPUTER SYSTEMS INTRUSION; PROVIDES INFORMATION TO HELP PROTECT CUSTOMERS" (Press release). The TJX Companies, Inc. 2007-01-17. Retrieved 2009-12-12.
  9. ↑ Lavoie, Denise (2007-01-18). "Credit cos. watchful after TJX breach". Archived from the original on 2007-01-23. Retrieved 2007-01-18.
  10. ↑ Largest Customer Info Breach Grows. MyFox Twin Cities, 29 March 2007.
  11. ↑ Joseph Pereira. Breaking the code: How Credit-Card Data Went Out Wireless Door. Wall Street Journal, May 4, 2007. Subscription might be needed
  12. ↑ Tomsho, Rob (2008 September 12). Hacker pleads guilty in TJX security breach. The Wall Street Journal, Retrieved September 12, 2008, from http://online.wsj.com/article/SB122122769957627957.html?mod=hps_us_whats_news
  13. ↑ Poulsen, Kevin (2009-07-09). "Former Teen Hacker’s Suicide Linked to TJX Probe". Wired. Retrieved 2009-10-29.
  14. ↑ Hacker Charged With Heartland, Hannaford Breaches - wired.com - August 17, 2009
  15. ↑ "The TJX Companies, Inc. Adopts Provisions of Staff Accounting Bulletin No.101 Related to Layaway Sales".

Sources

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