Franchising is a business strategy used by companies to expand their footprint across different markets without needing to make major infrastructure investments.
So, since TJ Maxx is a popular retailer with thousands of stores in nine countries across the US, Canada, Europe, and Australia, you may be wondering if the company operates franchises. If you’d like to find out, keep reading!
Is TJ Maxx a Franchise In 2023?
TJ Maxx is not a franchise, and its stores are owned and operated by the company in 2023. TJ Maxx is part of the TJX group of companies, which includes Marshalls, HomeGoods and Sierra Trading Post. The TJX group is not a privately held company but is publicly traded on the New York Stock Exchange.
To find out more about the TJ Maxx growth strategy and who owns the company, carry on reading to find all kinds of interesting information below!
Does TJ Maxx Have Franchise Stores?
Since the first TJ Maxx stores opened in 1977 in Massachusetts, the company has grown to include thousands of stores in nine countries.
TJ Maxx is owned by the TJX group of companies, which have been ranked #97 in the Fortune 500 company listings for 2021.
You may have wondered how the company achieved this impressive growth, and if the TJX group uses the franchising strategy to expand its presence in different markets.
Franchising is a process by which a company licenses individual owners to operate stores under the brand name. Many major corporations, especially in the food and restaurant industry, have used franchising to expand.
However, neither TJ Maxx nor any of the other TJX stores have franchises. All stores are owned and operated by the company.
What Is the TJ Maxx Growth Strategy?
The expansion of TJ Maxx stores is not based on franchising, but is due to the popularity of its business model. TJ Maxx is an off-price retailer, selling brand name fashion clothing, accessories, and home goods at low prices.
With over 1200 stores in the US, TJ Maxx is the largest clothing retailer in the country. This company also sells home goods, toys, accessories and handbags, shoes and more.
The off-price retail model has become increasingly popular in recent years, offering serious competition to large department stores like Macy’s.
There are a number of explanations for the popularity of the off-price retail model. First, the low prices for quality goods are always popular, and especially so during economic hard times.
Further, the constantly-changing inventory at TJ Maxx stores make bargain shopping something of a treasure hunt, adding the lure of thrift shopping to designer labels.
Why Doesn’t TJ Maxx Franchise?
The popularity of the off-price retail model makes it unnecessary for TJ Maxx to franchise for growth. The expansion and growth of TJ Maxx stores is driven by customers voting with their feet and wallets to pay less for prestigious designer labels.
In fact, the growth of off-price retailers like TJ Maxx and Ross is offering serious competition to traditional department stores like Macy’s.
Further, owning and operating stores gives TJ Maxx control over its operation, and also gives the company higher profits, which they would lose with franchise stores.
Who Owns TJ Maxx?
TJ Maxx is part of the TJX group of companies, which includes Marshalls, HomeGoods, and Sierra Trading Post.
The TJX group is not a privately owned company, but is a publicly-traded company listed as TJX at the New York Stock Exchange.
TJX is not owned and run by a single individual or family, but is managed by a Board Of Directors, assisted by Board Committees and Executive Officers.
Who Are the Major Stockholders at TJ Maxx?
The major stockholders at TJ Maxx are not individuals but institutions. Over 92% of shares are held by 2,059 institutions, and the top shareholders for TJX, along with the stock, are as follows:
- The Vanguard Group, Inc. – 7.60%
- Wellington Management Group, LLP – 7.40%
- Blackrock, Inc. – 6.71%
- State Street Corporation – 3.94%
- Bank of New York Mellon – 2.65%
- Price (T.Rowe) Associates Inc. – 2.22%
- Royal Bank of Canada – 2.22%
- JP Morgan Chase & Company – 2.00%
- Bank of America Corporation – 1.79%
TJ Maxx doesn’t franchise, and all its stores are owned and operated by the TJX group of companies. TJX hasn’t needed the franchise model to expand its presence in various markets, as the company’s growth is driven by the popularity of the off-price retail model.