2013 Annual Report Bringing Value Around the World
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THE TJX COMPANIES, INC. COMPANIES, THE TJX 2013 ANNUAL REPORT BRINGING VALUE AROUND THE WORLD The TJX Companies, Inc. 770 Cochituate Road Framingham, MA 01701 508-390-1000 THE TJX COMPANIES, INC. tjx.com 2013 ANNUAL REPORT The TJX Companies, Inc., the leading off-price apparel and home fashions retailer in the U.S. and worldwide, is a Fortune 200 company operating four major divisions: The Marmaxx Group, HomeGoods, TJX Canada and TJX Europe. With over 3,200 stores, three e-commerce sites, and approximately 191,000 Associates, we see ourselves as a global, off-price, value retailer, and our mission is to deliver great value to our customers through the combination of fashion, brand, quality, and price. We operate with a rapidly changing assortment of brand name and designer merchandise at prices generally 20% to 60% below department and specialty store regular prices on comparable merchandise, every day. With our value proposition, we reach a broad range of fashion and value conscious customers across many income levels and demographic groups. UNITED STATES TJX CANADA Winners is the leading off-price family apparel and home fashions T.J. Maxx was founded in 1976, and together with Marshalls, retailer in Canada, acquired by TJX in 1990. Select Winners stores forms The Marmaxx Group, the largest off-price retailer of offer fine jewelry and some feature The Runway, a high-end apparel and home fashions in the U.S. T.J. Maxx launched designer department. Winners operated 227 stores at 2013’s year its new e-commerce site, tjmaxx.com, in September of 2013. end, which average approximately 29,000 square feet in size. T.J. Maxx operated 1,079 stores in 49 states and Puerto Rico at year-end 2013. T.J. Maxx offers family apparel and home fashions with expanded fine jewelry and accessories departments and in some stores, The Runway, a high-end HomeSense introduced the home fashions off-price concept to designer department. T.J. Maxx stores average approximately Canada in 2001. This chain offers a broad array of home basics 29,000 square feet in size. and home décor merchandise. It operates in a standalone and superstore format, which pairs HomeSense with Winners. At 2013’s year end, HomeSense operated 91 stores in Canada, with standalone stores averaging approximately 25,000 square Marshalls was acquired by TJX in 1995, and with T.J. Maxx, feet in size. forms The Marmaxx Group, the largest off-price retailer of apparel and home fashions in the U.S. Marshalls operated 942 stores in 45 states and Puerto Rico at 2013’s year end. Marshalls offers family apparel and home fashions, Marshalls launched in Canada in March 2011. In Canada, including expanded footwear and men’s departments and Marshalls offers great, off-price values on family apparel with an The CUBE, a department specifically for juniors. Marshalls expanded footwear department and The CUBE, an exciting juniors stores average approximately 31,000 square feet in size. department. Marshalls operated 27 stores in Canada at 2013’s year end, averaging approximately 31,000 square feet in size. HomeGoods, introduced in 1992, is a destination for off-price TJX EUROPE home fashions, including giftware, home basics, accent furniture, lamps, rugs and wall décor. HomeGoods operates in a standalone and superstore format, which couples HomeGoods with T.J. Maxx or Marshalls. At 2013’s year end, Launched in 1994, T.K. Maxx introduced off-price retailing to the HomeGoods operated 450 stores in 43 states and Puerto U.K. and Ireland and is the only brick-and-mortar, off-price retailer Rico, with standalone stores averaging approximately 26,000 of significant size in Europe. T.K. Maxx expanded into Germany square feet in size. in 2007 and into Poland in 2009. T.K. Maxx offers top-brand family apparel as well as home fashions at great values, and in some stores, the Mod Box, a department specifically for younger customers, and Gold Label, which features high-end designer labels. T.K. Maxx ended 2013 with 371 stores, which average approximately 31,000 square feet in size, and it also operates Sierra Trading Post, acquired by TJX in December 2012, is tkmaxx.com in the U.K. a leading off-price Internet retailer of brand name outdoor gear, family apparel and footwear, sporting goods and home fashions. Sierra Trading Post launched its e-commerce site, sierratradingpost.com, in 1998. As of 2013’s year end, it also HomeSense introduced the off-price home fashions concept to operated four stores in the U.S., averaging approximately the U.K. in 2008. This business offers our U.K. customers great 28,000 square feet in size. values on top-quality home fashions, including home basics and home décor merchandise. At 2013’s year end, HomeSense operated 28 stores, each averaging approximately 21,000 square feet in size. SUCCESSFUL U.S. AND INTERNATIONAL EXPANSION… 37 YEARS IN THE U.S. OVER 2 DECADES IN CANADA 20 YEARS IN THE U.K. NEARLY 2 DECADES IN IRELAND 7 YEARS IN GERMANY IN POLAND SINCE 2009 AS OF 2013, 3 E-COMMERCE SITES IN THE U.S. AND U.K. …WITH MORE TO COME TO OUR FELLOW SHAREHOLDERS: The year 2013 was another successful year for TJX on top of many great years! Our off-price values continued to resonate with U.S. and international consumers, and we delivered above-plan results in a competitive retail environment. We believe this underscores the resiliency and flexibility of On a 52-week comparable basis, consolidated our off-price business model and ability to drive top- and comparable store sales grew 3% over last year’s 7% bottom-line growth in both strong and weak environments. growth and several years of strong increases. Net income Marmaxx continued its consistent, excellent performance rose to $2.1 billion, and on an adjusted basis, diluted as we furthered the penetration of T.J. Maxx and Marshalls earnings per share were $2.83, a 15% increase over the in the U.S. HomeGoods posted terrific results as we prior year’s strong gains.1 The year 2013 marks the 18th brought this chain to more U.S. markets. TJX Canada met consecutive year of earnings per share growth, and on our expectations for the year and Marshalls continued an adjusted basis, our five-year compound annual EPS its successful expansion in that country. TJX Europe growth was a strong 24%.2 Overall, we grew total square achieved outstanding performance again in 2013, which footage by 5% and netted a total of 169 new stores to is very exciting as we see such vast growth potential for end the fiscal year with 3,219 stores. our Company in Europe. We also successfully launched our new e-commerce site tjmaxx.com, which, along with KEY ADVANTAGES FOR GROWTH sierratradingpost.com and our tkmaxx.com site in the As we approach $30 billion in annual sales, we see U.K., gives more consumers the ability and convenience to tremendous growth opportunities ahead for our Company, shop our great values 24 hours a day, 365 days a year! both in the U.S. and internationally. Core to our confidence In 2013, net sales for the 52-week fiscal year reached are the key strengths that we believe differentiate TJX from $27.4 billion, up 6% over the 53-week fiscal year in 2012. many other major retailers and have led to our long history 022 MARMAXX 2,021 3,000 STORES IN POTENTIAL 2013 STORES of success, as well as set us up extremely well for today 16,000 vendors in over 60 countries and have over 900 and the future. We see TJX in an excellent position to bring merchants in our world-class buying organization. We value around the world! establish long-standing, mutually beneficial elationshipsr In fact, it all begins with value, our mission since day with vendors and believe we have some of the best vendor one. For us, value is a combination of fashion, brand, relationships there are! We see ourselves as leaders quality and price. Our value proposition has resonated in innovation, constantly testing new ideas, seeking with consumers for 37 years, and throughout our history, the right categories, current fashions and top brands, we have seen it play well in different geographies, retail and leveraging information from our worldwide buying climates, and both strong and weak economies. We presence. We have more than 3,200 stores with flexible operate four large divisions, all leveraging value. We layouts in which to test new initiatives and the ability to roll believe our values will continue to be a compelling draw out rapidly what works. We are never complacent! for shoppers in the U.S., Canada and Europe…and We operate seven retail brands in six countries and eventually, beyond! are one of the few large U.S. retailers to have expanded We are one of the most flexible retailers in the world. Our successfully internationally. We have been operating in flexible business model gives us great ability to act nimbly Canada for well over two decades, and 2014 marks in the vendor and real estate marketplaces, react quickly our 20th anniversary in the U.K.! We believe our deep international experience, knowledge and infrastructure are important advantages as we continue on our path of global growth. HOMEGOODS GROWING U.S. / INTERNATIONAL CUSTOMER BASE We are convinced that we will continue to attract more U.S. and international shoppers with our values. While 450 825 we have grown our customer base significantly over the last several years, our U.S.