The UK arm of TJ Maxx achieved £4bn in sales for the first time, a notable milestone amidst financial challenges.
- Pre-tax profits decreased by 42%, primarily due to an exceptional credit item of £58.8m from the previous year.
- Sales increased by 3.6% to £4.03bn, driven by consumer interest in discounted designer labels.
- Like-for-like sales rose by 3%, bolstered by increased foot traffic in physical stores post-pandemic.
- Four new TK Maxx and one new Homesense stores were opened, expanding the UK presence to 432 locations.
The UK division of TJ Maxx has achieved a significant milestone by reaching £4bn in sales for the first time. Despite this success, the company’s pre-tax profits witnessed a sharp decline of 42% from £172.4m to £120.7m during the 53 weeks ending 3 February 2024. This drop is attributed to an exceptional item of £58.8m in credit recorded in the prior year, as per recently filed accounts with Companies House.
Sales for TK Maxx showed a modest increase of 3.6%, rising from £3.89bn to £4.03bn. This uplift in sales reflects a growing consumer trend towards purchasing designer labels at discounted rates, thus benefiting the company’s overall turnover.
The retailer’s store portfolio experienced a 3% increase in like-for-like sales, which correlates with higher foot traffic as more consumers returned to high streets and retail parks following the pandemic downturn. This resurgence in customer activity has played a pivotal role in driving sales figures upward.
To further strengthen its market presence, the company opened four net new TK Maxx stores and an additional Homesense location, bringing the total number of UK outlets to 432. Among these expansions, a significant development includes plans for a second flagship store on Oxford Street, expected to launch following the acquisition of a 22,500 square foot unit at Mount Royal in March.
TK Maxx’s strategic focus on store expansion and consumer demand for discounted high-end fashion has bolstered sales, despite profit challenges.
