The last time we saw the SWOT Analysis of Zara, this time let’s have a look at the SWOT Analysis of TJ Maxx.
TJ Maxx is an apparel and home fashions retailer store chain in America. It sells products or services at lower prices than other similar stores. It is one of the biggest clothing retailers as it has over 1,000 shops.TJ Maxx is the leading chain of TJX Companies. They have a trade of household stuff extending from furnishing to kitchen accessories. TJ Maxx has an exceptionally trustworthy customer base.
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In this blog, we will have a look at the SWOT analysis of TJ Maxx but before that let’s have a look at the company overview.
About TJ Maxx
(TJ Maxx Store, Source: Financial Times)
The brand named TJ MAXX was founded in 1976 in Framingham, Massachusetts, by Bernard Cammarata and the Zayre chain of discount department stores. In December 1988, a restructuring plan named “TJX Companies, Incorporated” was announced by Zayre. This company bought Marshalls in 1995. In 1998, TJ MAXX unlocked the store chain, AJ Wright. Unfortunately, it closed in January 2007.
In 2009, it came up with an e-commerce site. Gradually, it increases the range of products and accessories. Soon TJ Maxx became the United States largest off-price retailer of apparel and home fashions. In countries like the UK, Poland, Netherlands and Germany – TJ MAXX is known as TK MAXX.
TJX is one of the main organizations in its industry. Also, it maintains its dominant position in the market by critically analyzing and reviewing the SWOT analysis of TJ Maxx. This interactive process requires effective coordination among various departments within the company such as marketing, finance, operations, management information systems, and strategic planning.
|Origin||Framingham, Massachusetts, US|
|No. of Employees||270,000|
|Market Cap||$ 83.408 Billion|
|Annual Revenue||$ 38.937 Billion|
|Net Income/ Profit||$ 3.06 Billion|
Products of TJ Maxx
- Men’s, Women’s and Children’s apparel and shoes
- Bath and Beauty Accessories
- Home products range from furniture to kitchen utensils
Competitors of TJ Maxx
- Home Goods
- Ross Capital
- Saks Fifth Avenue
Now that we got to know about the company’s function and their vast business globally, now let’s dig into the SWOT analysis of TJ Maxx.
SWOT Analysis of TJ Maxx
SWOT analysis of TJ Maxx explores the company by strengths, weaknesses, opportunities & threats. Under the SWOT Analysis of TJ Maxx, the internal factors are strengths and weaknesses whereas the external factors are opportunities and threats.
So let us first start by looking at the strengths of TJ Maxx from the SWOT analysis of TJ Maxx.
Strengths of TJ Maxx
- Price Levels are Minimum: As we said in the introduction above that TJ Maxx is the United States largest off-price retailer of apparel and home fashions as compared to other stores.
(TJ Maxx Getting More Bangs For The Bucks, Source: CNBC)
- Proficient Manpower: TJ Maxx recruits one of the best manpower in their stores which are not only pro efficient in selling goods but are also attentive in giving the best customer service.
- Good Revenue Generated: TJ Maxx offering their apparel and home fashions at lower prices doesn’t mean they are lacking in generating revenue. TJ Maxx tries to minimize their internal costs as much as possible to provide the goods at a discounted rate with the best quality to the customer end.
- Recognized Internationally: TJ Maxx popularity is not only limited to the United States. They are also popular on an international level in countries like the UK, Poland, Netherlands and Germany.
- Wonderful Rewards for Customer: TJ Maxx always offers great rewards & deals to the customer who purchases some goodies from TJ Maxx. One of the biggest strengths of TJ Maxx is that they always try to retain first time purchasers.
- Mighty & Fruitful Marketing Team: TJ Maxx appoint a small marketing team which are packed with both traditional & digital marketing skills that make them stand ahead of their competitors in terms of effective marketing strategies.
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Weaknesses of TJ Maxx
- Inventory Management: The firm has very poor inventory management. It has to work a lot internally otherwise it may fail to retain customers.
- Global Presence: Exclusively, TJ Maxx exists in seven countries whereas other competitors have a strong global presence.
- Customer Dissatisfaction: Though the company offers the products at a cheaper rate due to poor inventory management, the customers may not get the products at the time as a result has to face dissatisfaction from the customer.
- No Good Hands-on Technology: Talking about the technology it has to work a lot because the staff is not well equipped with the upcoming trends so needs to hire the youths who have a good awareness of technology.
Opportunities for TJ Maxx
- Launch of New Products: As the brand has a magnificent portfolio, it can increase the number of products offered which will indirectly build up customers’ trust.
- Home Essentials: Demand for home essentials products is boosted up in the US. This change can be a great opportunity for TJ Maxx as they also deal in home apparel.
- Going Global: As we said, TJ Maxx one of the weaknesses is not being presented globally. This weakness can be an opportunity for TJ Maxx to research a foreign market and delve into it with the help of its brand image.
- After Sales Services: Right now also TJ Maxx is providing the best after-sales services. But, if they can improvise on it, this can work as one of the USP’s for TJ Maxx.
Threats to TJ Maxx
- Government Regulations: As there are no special incentives or no special favours given to the company so all efforts have to be made by the company itself and being the fashion brand it has to pay lots of taxes.
- Credit Giving Facilities: The company offers credit facilities to many of its customers that’s why the company has to face many losses and has poor ROI, as a result, needs to work to overcome such situations.
- Rising Competition: Nowadays several new companies are entering the market and have also gained a lot of market share. They are gaining the trust of consumers through innovations brought by them. So, if TJ Maxx does not make its move then it can lose its customers to these new entrants.
- Frequent Change in Customer Taste: With the speed of innovation, customers are demanding something new day by day, this frequent change in consumer tastes and preferences could become a threat of rising dead stock for businesses like TJ Maxx.
This ends our in-depth SWOT analysis of TJ Maxx. let us conclude our learning below.
TJ Maxx is one of the best American stores which is an off-price store providing consumer, fashion products at a very cheap rate. It covers a wide range of products like fashions, beauty products, shoes, furniture, and many more. It is a subsidiary company and has a wide scope of growth.
Though there are some weaknesses and threats to the company as it is a well-managed company, if it starts working on it, it can overcome those easily.
As we all studied or saw that TJ Maxx was not good at accepting new changes due to this they had faced many losses. Similarly, if you too do not keep yourself updated with the new trends like digital marketing which is most important nowadays, then you are somehow losing somewhere. So, if you want to upskill your skill-set then don’t hesitate to check out our IIDE’s 3 Month Advanced Online Digital Marketing Course.
We hope this blog on the SWOT analysis of TJ Maxx has given you a good insight into the company’s strengths, weaknesses, opportunities and threats.
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