Will TJX Slow Domestic Growth in Years to Come?
Elaine Misonzhnik / Retail Traffic
Today, a few outperforming chains seem to drive most of the retail sector’s growth. The TJX Companies, the operator of discount powerhouses T.J. Maxx, Marshalls and HomeGoods, has been among the most active retail tenants out there, leasing space at malls, at strip centers and on urban street fronts…
“We have significantly widened the demographic reach of Marmaxx [T.J. Maxx and Marshalls combined] in all directions, and are capitalizing on real estate vacancies in urban markets and filling in smaller markets where we operate very profitable stores,” Meyrowitz said. “Our new store performance [is] exceeding our plans and as we expand T.J. Maxx and Marshalls, our cannibalization levels are in line, all of which we’ve very encouraged by.”
What’s more, while TJX has traditionally concentrated on strip centers, owners of class-B and class-C malls would love to get the chain into their properties and would be willing to offer very aggressive deal terms to do so, notes Davidowitz. Over the past few years, TJX has been able to secure rental rates in the mid-single digits for locations in distressed centers, according to Jeff Green, president of Jeff Green Partners, a Phoenix-based retail real estate consulting firm.
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