HomeGoods to Launch Online in 2021
The TJX Companies Q3 FY21
- Reported Q3 FY21 net sales of $10.1 billion
- Q3 FY21 overall open-only comp store sales decreased 5%, which was well above the company’s plans
- Q3 FY21 diluted earnings per share were $.71, which was well above the company’s plans
- Net income for the third quarter was $867 million and diluted earnings per share were $.71 versus $.68 in the prior year.
- For the first nine months of Fiscal 2021, net sales were $21.2 billion. Net loss was ($235) million. Results for the first nine months were negatively impacted by the temporary closure of stores for approximately 27% of the first nine months of the year due to the COVID-19 global pandemic.
TJX Companies will bring its HomeGoods brand online in the second half of 2021.
The e-commerce site HomeGoods.com will allow parent company TJX to leverage both its strength in the home category and the power of its global buying organization and sourcing universe, according to president and CEO Ernie Herrman.
“We believe this will allow us to satisfy our current customer base which is expanding and continue to attract new shoppers,” he said in the retailer’s recent earnings call. “The passion of our HomeGoods customers is terrific to see, and we are looking forward to bringing them our great brands and values 24 hours a day, 7 days a week.”
A lot of home business is being done online and there is “just such a big territory out there of market share we can go to grab from,” he later noted.
HomeGoods.com will be complementary to HomeGoods store, he said, “because the way we might orchestrate HomeGoods.com will be different than some other home retailers, because we have so many brick-and-mortar HomeGoods stores where we feel we can encourage a visit based on an online purchase and encourage, not just the return, but a potential visit to the store as well, as well as obviously do straightforward [online] purchases.
When talking about the long-term business overall, he noted as vaccines kick in, you could argue people will be less at home more, but the retailer expects the working from home trend to stick around.
“I do believe businesses across the country and in other countries do have an X amount of employees stay at home that weren't at home,” he explained. “So if that's 25% of the office workforce base at home that wasn't that should still give win to the HomeGoods business I think for a handful of years.”