Why are The TJX Companies Making Money?

I ask why are The TJX Companies making money, because TJX operates in an ailing industry. In fact, many of TJX’s competitors are dead or near collapse.

In fact, the stock of one competitor; Pier 1 Imports (NYSE: PIR) was trading at 61₵ a share on 24 April 2019. Significantly, Pier 1 is a direct competitor to TJX’s HomeGoods, Sierra, and HomeSense brands.

Thus both TJX (NYSE: TJX) and Pier 1 are discounters that sell high-quality home furnishings and other merchandise at a deep discount. In addition, both stores cater to lower and middle-class women in suburban and urban areas.

However, Pier 1 could close 145 stores while HomeGoods is expanding so fast TJX is building new fulfillment centers for it. Specifically, TJX will build a HomeGoods distribution center on 290 acres in Lordstown, Ohio, WKYC 3 reports.

Nor is it just, Pier 1 Imports, Bed Bath & Beyond (NYSE: BBY) is closing 40 stores, USA Today reports. Bed Bath & Beyond operates large home furnishings stores similar to TJX’s TJX and Marshalls discount department stores. Concurrently, BBY shares were trading at $16.89 on 24 April 2019.

Why is TJX Making Money?

In contrast, TJX Companies (NYSE: TJX) shares were trading at $55.75 on the same day. It is easy to see why TJX reports a…