- TJX Companies — the parent company of both TJ Maxx in the US and TK Maxx in the UK — reported positive sales increases across the brand portfolio in May, pointing to the strength of discounted goods.
- Though both TJ Maxx and TK Maxx are similar stores in their respective home countries, the shopping experience differs, particularly at its city locations.
- We shopped at stores in the financial districts of New York City and London and saw why TK Maxx has an edge over TJ Maxx.
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As several major department stores flounder, TJX Companies — the parent company of TJ Maxx, TK Maxx, Marshalls, HomeGoods, Homesense, and Sierra Trading Post — continues to find a sweet spot in discounted goods, both in the US and abroad.
In a call with investors in May, TJX reported that comparable store sales across the portfolio rose 5% and total revenue rose by 7% to $9.3 billion in the first quarter. The growth was led primarily by the company’s core brands — TJ Maxx, TK Maxx, and Marshalls — and point to continued consumer demand for lower-priced options.
Though TK Maxx — which has 575 stores across Europe and Australia — has a similar reputation to TJ Maxx’s 1,257 stores across the US, many consumers fail to recognize the connection between the sister companies due to their different names.
When TJ Maxx opened in the UK in 1994, it changed its name to avoid confusion with the popular department store group TJ Hughes.
Read more: TJ Maxx has a different name in Europe and Australia, and there’s a simple reason why
Despite a lack of shared moniker, both stores continue to boast legions of loyal shoppers and attract foot traffic that is outpacing its full-price department store peers.
"We believe this is a great indicator of the enduring appeal of our great values on an eclectic and exciting mix of merchandise and our treasure-hunt shopping experience, as well as the resiliency of our off-price retail model," TJX Companies CEO Ernie Herrman said during the earnings call in May.
While TJ Maxx and TK Maxx are, in essence, the same store, there are some pointed differences in the shopping experiences. We visited two comparable stores in the financial districts of New York City and London that both target a demographic of busy urban professionals.
Ultimately, TK Maxx’s organized store layout and displays, paired with its stronger product assortment, came out on top:
When we entered the TK Maxx we were greeted by a large neon sign advertising the two biggest perks about shopping there: it’s cheap, and there’s a constant turnover of clothing.
Business Insider/Mary Hanbury
It is instantly apparent that TK Maxx stores in the UK share the same fairly chaotic layout as their US equivalents.
Clothing is grouped by the garment type — dress, t-shirt, and trousers, for example — and size. This means that lots of different brands are jumbled together, and you might only find one piece in particular sizes and styles, which is why it’s known as a treasure-hunt shopping experience.
At the front of the store is a small area marked as "Gold Label." These are TK Maxx’s premium and pricier brands. In the US, this is comparable to TJ Maxx’s "The Runway" section.
Business Insider/Mary Hanbury
We instantly spotted a garish Versace t-shirt here.
The other side of the entrance was a large makeup, beauty, and skincare section.
Business Insider/Mary Hanbury
See the rest of the story at Business Insider
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SEE ALSO: Here’s how TJ Maxx keeps its prices so low
Source: Business Insider – feedback@businessinsider.com (Mary Hanbury)