2009 Retrospective Retail Sales: Major Retailers: TJX Cos., Saks Inc.
A declining economy has been a boon for off-price retailers, and in 2009 few have performed as well as The TJX Companies Inc.
The Framingham, Mass.–based off-pricer runs a powerful fleet of more than 2,173 stores under nameplates such as TJ Maxx and Marshalls. It has enjoyed an uninterrupted, upward climb in its sales since the mid-1990s, and in a year when most retailers declared their worst business in memory, TJX reported two quarters of record sales in 2009 and raised its outlook for each of its four fiscal quarters during the past year. The retailer forecast its business will keep getting better.
In November, TJX forecast it would exceed its projected sales growth of 12 percent in the next three fiscal years. It expects its square-footage growth to be 4 percent to 6 percent during its upcoming three fiscal years. Wall Street also cultivated high hopes for TJX. Analysts surveyed by Thomson Reuters predicted a 9.3 percent rise in its same-store sales in November. When TJX reported an increase of 8 percent during that month, many of the analysts considered the numbers a relatively poor showing for a high-performing retailer. TJX President Carol Meyrowitz blamed the missed forecast on unseasonably warm weather in November and pledged to get on with the business of meeting her company’s high potential.
Business at the venerable luxury retailer Saks Inc. has been the polar opposite of TJX. It suffered through much of 2009, reporting same-store-sales declines in the high double digits. In November, it recorded a steep drop of 26.1 percent in its same-store sales. Saks started 2009 with the announcement that it would lay off 1,100 employees, or 9 percent of its work force. Layoffs and slashing administrative costs seemed to have helped the retailer’s bottom line. Saks credited controlling costs for a modest profit in the third fiscal quarter, which ended Oct. 31.
Despite a horrible year, there were some things to celebrate. Saks opened a store in Saudi Arabia in 2009. During its third fiscal quarter, its e-commerce shop, Saks Direct, posted a 26 percent same-store-sales increase.—Andrew Asch
