Setting Sail for Mexico: TJX Onward with Grupo Axo
TJX planning Mexico expansion
Let's get this straight, TJX, the name behind TJ Maxx, HomeGoods, Marshalls, and other off-price retail goodness, is stepping into the Mexician market with a bang, partnering up with Grupo Axo. This badass group operates a plethora of full- and off-price brands across Mexico and South America.
The deal? Running and growing Axo's off-price, brick-and-mortar business in Mexico - more than 200 Promoda, Reduced, and Urban Store locations. TJX snags a 49% piece of the pie, while Axo grabs the rest, 51%.
Keep in mind this deal is still pending antitrust approval in Mexico, and it hinges on other typical closing conditions the companies describe in a press release. The financial details will be spilled after closing, expected to happen a bit later this year. TJX confidently jokes that this deal won't rattle its guidance for the year.
TJX is following in another beauty retailer's footsteps, Ulta, who also linked up with Axo earlier this year. You might be wondering why these companies are joining forces, and that's where Axo's impressive portfolio comes in. It spans apparel, accessories, footwear, beauty, and personal care products, currently peddled via department stores and over 970 boutiques in Mexico, Chile, Peru, and Uruguay.
As for TJX, it's planning to drop 10 stores in Canada, 15 in Europe, and 5 in Australia in 2022. If that's not enough, the company's long-term goal is to crank out more than 1,300 additional stores within its existing banners and countries of operation.
Several analysts are stoked about TJX expanding abroad, viewing it as a potential goldmine for growth. In the first quarter of 2022, net sales in Europe and Australia jumped 8.8% year-over-year to $1.5 million, and in Canada rose 7.2% to $1.1 billion.
So, there you have it! TJX's recent Mexico venture, its budding friendship with Axo, and the lure of economic uncertainty that pushes consumers to snap up off-beat deals, both stateside and internationally. The off-pricer is roaring into the future like a wild stallion.
- TJX, known for its off-price retail businesses like TJ Maxx and Marshalls, is venturing into Mexico's market by partnering with Grupo Axo.
- The collaboration involves TJX overseeing and expanding Axo's off-price, brick-and-mortar business in Mexico, which includes more than 200 Promoda, Reduced, and Urban Store locations.
- TJX and Axo own 49% and 51% of the partnership respectively, with the deal pending antitrust approval in Mexico and subject to typical closing conditions.
- Axo's portfolio includes apparel, accessories, footwear, beauty, and personal care products, sold through department stores and over 970 boutiques in Mexico, Chile, Peru, and Uruguay.
- In a strategic move, TJX plans to close 10 stores in Canada, 15 in Europe, and 5 in Australia in 2022, with a long-term goal of opening over 1,300 additional stores within its existing banners and countries of operation.
- Analysts are optimistic about TJX's international expansion, viewing it as a potential avenue for growth, especially considering the increased demand for off-beat deals amidst economic uncertainty.
