TJX Dives into Online with $200M Sierra Trading Post Acquisition

TJX Companies is developing online shopping sites for its brands. To help, the retailer has acquired Sierra Trading Post, an off-price Internet retailer, for $200 million, adding online operating capabilities and infrastructure. As part of the transaction, TJX will also acquire Sierra's office, fulfillment center, photography studios and customer call centers in Wyoming as well as its four outlet stores in Idaho, Nevada and Wyoming.
"We are very pleased with the addition of Sierra Trading Post to the TJX family," said Carol Meyrowitz, CEO for The TJX Companies. "We continue to plan on launching e-commerce sites for TJX brands and this acquisition adds immediate scale, capabilities and infrastructure in e-commerce, which we can leverage in that regard. We believe we will be able to build upon this platform as we continue to develop our e-commerce strategy. Further, we are confident that TJX can help grow the Sierra business profitably through our buying scale, marketing and other capabilities."
Meyrowitz continued, "As an off-price online retailer, Sierra Trading Post shared many characteristics with TJX. As we do, Sierra offers branded apparel, footwear and home furnishings at great values, has a very loyal customer base, strong vendor relationships, and operates with a low cost structure. We also see Sierra's management team, with their deep Internet retailing experience, as a complement to the strong e-commerce team we have built within TJX.
Further, we see the organization and company culture at Sierra Trading Post as a great fit with our own. The addition of Sierra Trading Post further strengthens our opportunities for growth and we welcome its management team and organization to the TJX family of companies."
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