Finding a bargain in your favorite department store is always a thrill. Digging through the racks in the back of the store just to find that they have something in your size or something that fits in just the right spot in your home has become something of a way of life for Americans, especially after the 2008 recession hit. As a result, stores like T.J. Maxx and Marshalls have soared to new heights as some of the go-to places to find great deals.
Given discount stores’ popularity with Americans, it should come as no surprise that the parent company of T.J. Maxx, HomeGoods and Marshalls, TJX, reported a solid second quarter. Its sales growth for the last three months is being reported at three percent, which is higher than analysts’ estimates. Following this positive quarter of growth, alongside TJX’s home furnishings store HomeGoods seeing a seven percent boost in same-store sales, it makes sense that the company would take this forward momentum and run with it.
With this, TJX is opening up a new home goods store dubbed HomeSense. Some are saying that the popularity of home furnishings being sold online through places like Wayfair, Amazon and Joss & Main are the main reasons for opening up a new store in this category. GlobalData Retail’s managing director, Neil Saunders, wrote to clients about TJX’s new store launch and said that HomeSense “will allow the company to better take advantage of the strong growth in home retail and to grow its presence in categories like furniture and larger furnishing items, which are a relatively weak part of the HomeGoods proposition.”
Through this new store offering, the hope is that TJX will help to continue grow the more feasible price-point area of home furnishings in the country. If Q2 results are any indicator for TJX, it looks like the opening of HomeSense may prove to be another win for the discount giant.