THE TJX COMPANIES, INC.

[Pages:101]BRINGING VALUE AROUND THE WORLD

THE TJX COMPANIES, INC.

2013 ANNUAL REPORT

SUCCESSFUL U.S. AND INTERNATIONAL

EXPANSION...

37 YEARS IN THE U.S.

OVER 2 DECADES IN CANADA

20 YEARS IN THE U.K.

NEARLY 2 DECADES IN IRELAND

7 YEARS IN GERMANY

IN POLAND SINCE 2009

AS OF 2013, 3 E-COMMERCE SITES IN THE U.S. AND U.K.

...WITH MORE TO COME

TO OUR FELLOW SHAREHOLDERS:

The year 2013 was another successful year for TJX on top of

many great years! Our off-price values continued to resonate

with U.S. and international consumers, and we delivered

above-plan results in a competitive retail environment.

We believe this underscores the resiliency and flexibility of our off-price business model and ability to drive top- and bottom-line growth in both strong and weak environments. Marmaxx continued its consistent, excellent performance as we furthered the penetration of T.J. Maxx and Marshalls in the U.S. HomeGoods posted terrific results as we brought this chain to more U.S. markets. TJX Canada met our expectations for the year and Marshalls continued its successful expansion in that country. TJX Europe achieved outstanding performance again in 2013, which is very exciting as we see such vast growth potential for our Company in Europe. We also successfully launched our new e-commerce site , which, along with and our site in the U.K., gives more consumers the ability and convenience to shop our great values 24 hours a day, 365 days a year!

In 2013, net sales for the 52-week fiscal year reached $27.4 billion, up 6% over the 53-week fiscal year in 2012.

On a 52-week comparable basis, consolidated comparable store sales grew 3% over last year's 7% growth and several years of strong increases. Net income rose to $2.1 billion, and on an adjusted basis, diluted earnings per share were $2.83, a 15% increase over the prior year's strong gains.1 The year 2013 marks the 18th consecutive year of earnings per share growth, and on an adjusted basis, our five-year compound annual EPS growth was a strong 24%.2 Overall, we grew total square footage by 5% and netted a total of 169 new stores to end the fiscal year with 3,219 stores.

KEY ADVANTAGES FOR GROWTH

As we approach $30 billion in annual sales, we see tremendous growth opportunities ahead for our Company, both in the U.S. and internationally. Core to our confidence are the key strengths that we believe differentiate TJX from many other major retailers and have led to our long history

022

MARMAXX

2,021

STORES IN 2013

3,000

POTENTIAL STORES

of success, as well as set us up extremely well for today and the future. We see TJX in an excellent position to bring value around the world!

In fact, it all begins with value, our mission since day one. For us, value is a combination of fashion, brand, quality and price. Our value proposition has resonated with consumers for 37 years, and throughout our history, we have seen it play well in different geographies, retail climates, and both strong and weak economies. We operate four large divisions, all leveraging value. We believe our values will continue to be a compelling draw for shoppers in the U.S., Canada and Europe...and eventually, beyond!

We are one of the most flexible retailers in the world. Our flexible business model gives us great ability to act nimbly in the vendor and real estate marketplaces, react quickly

16,000 vendors in over 60 countries and have over 900 merchants in our world-class buying organization. We establish long-standing, mutually beneficial relationships with vendors and believe we have some of the best vendor relationships there are! We see ourselves as leaders in innovation, constantly testing new ideas, seeking the right categories, current fashions and top brands, and leveraging information from our worldwide buying presence. We have more than 3,200 stores with flexible layouts in which to test new initiatives and the ability to roll out rapidly what works. We are never complacent!

We operate seven retail brands in six countries and are one of the few large U.S. retailers to have expanded successfully internationally. We have been operating in Canada for well over two decades, and 2014 marks our 20th anniversary in the U.K.! We believe our deep international experience, knowledge and infrastructure are important advantages as we continue on our path of global growth.

HOMEGOODS

450

STORES IN 2013

825

POTENTIAL STORES

to changing consumer and pricing trends, and navigate various economic and retail environments successfully. We believe our tremendous flexibility has been a driving force in our long history of consistent, strong results. Our annual comparable store sales have declined only once in the last 37 years, and over this time, we have delivered steady earnings growth. Not only do we believe that this solid track record is rare within the retail industry, it also gives us great confidence in the future!

We believe that we have one of the widest customer demographic reaches in the retail sector. We attract shoppers with household incomes anywhere from $50,000 up to millions of dollars. To bring our diverse customer base exciting brands and fashions from around the world, we have built a value-driven, global sourcing machine over almost four decades. We source from more than

GROWING U.S. / INTERNATIONAL CUSTOMER BASE

We are convinced that we will continue to attract more U.S. and international shoppers with our values. While we have grown our customer base significantly over the last several years, our U.S. consumer penetration levels remain below those of most major department stores, which speaks to our opportunity to gain consumer share. We believe Marshalls in Canada will help us grow in that country, and the opportunity to expand our reach in Europe is huge. Throughout 2013, we saw a greater percentage of younger shoppers among our new customers, while continuing to serve our core demographic, and we will continue to target a very broad customer demographic.

To reach even more consumers, we are capitalizing on our global marketing capabilities. During the holiday season, our tri-branding campaigns for T.J. Maxx, Marshalls and HomeGoods in the U.S. and Winners, HomeSense and Marshalls in Canada, allowed us to lever three of our retail brands at the same time. Further, we know that customers who shop more than one of our chains, on average, spend considerably more with us. In Europe, we increased our television presence in 2013 and aired our first-ever German TV commercials. In 2014, we plan to become even more aggressive with our marketing, planning several more weeks of advertising activity than last year, across TV, radio and social media.

5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download