TK Maxx now sixth biggest UK fashion retailer
TJX’s TK Maxx operation in the UK now has a larger market share in fashion than Topshop, a report said at the weekend.
The company, which sells globally sourced close-out merchandise from mass, middle and high-end labels, as well as its own brands, said it now has sixth place in UK fashion. And it added that it’s confident for the near future with expectations of plenty of stock being available to help create a “very exciting” mix in the second half.
Deborah Dolce, director of TJX’s, European division, told The Guardian that the firm’s agile buying approach means it can take advantage of the large amount of inventory currently in the market due to the Covid crisis. She also said the firm’s business model allows it to respond to hot categories such as beauty, homewares and kidswear currently, with its modular stores able to adapt quickly to the product mix.
Its strategy also allowed it to cope with the lower demand during lockdown as it buys “little and often”.
The newspaper said that in the month between stores reopening in July and 1 August, sales in the international arm that is mainly the UK business (but also takes in Germany, Ireland, Poland, the Netherlands and Australia), were down by only 1% year-on-year. And the the UK e-store performed better (although no figures were shared by the firm).
Not that the company’s recent few months have been a triumph. In the quarter to 1 August, international division sales fell 31% to $880 million (£690m) due to store closures and the unit made a $131 million loss from a $50.4 million profit a year earlier.
The UK arm of the company will report its results for the year to February 2020 next month.
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