Global ‘off-price retailer’ enters Australia
TK Maxx will convert all 35 existing Trade Secret stores to TK Maxx from April 2017, with a handful of new locations also planned for opening throughout the year. Both TK Maxx and Trade Secret are operated by The TJX Companies, Inc., which is a leading off-price retailer of apparel and home fashion in the U.S. and worldwide, headquartered in the United States and operating over 3,800 stores around the world.
Speaking to IR, Tessa Buenen, TJX spokesperson, said there are opportunities within the discount department space in Australia. “Our off-price model is unique to the market,” she said.
“Australian shoppers are extremely savvy and value orientated, so we think our offer is going to be a winning formula here and we’re very excited about our growth opportunities for this market.”
When asked if there were concerns about competition from the likes of Kmart, Target, Big W and to a lesser extent Costco, Buenen pointed towards the retailer’s value proposition.
“We wouldn’t comment on the competition, but what we can say is that we believe we have a fabulous store that offers customers a unique selection of merchandise with an exciting shopping experience, and we think customers here will absolutely love it.”
TJX plans to open “a handful of stores this year” alongside the conversion of the existing stores.
Buenen said TK Maxx is known for its treasure hunt shopping experience and customers “love the thrill of the find”.
“Our stores are bright, modern, easy-to-shop and we have a flexible store layout.”
TK Maxx sells a huge assortment of big names, major brands, up-and-coming labels and ‘one-offs’ at a discounted price to that of a typical department store or on the high street.
On the supply side, TK Maxx differs to retailers that buy seasonally – it buys throughout the year and works in an opportunistic buying and no frills operation fashion, according to Buenen.
“Because of the way we buy, we have several deliveries per week with thousands of new products hitting shop floors. This means that no two stores are the same, and with new products arriving regularly there will always be something new & fresh for shoppers to discover on a visit to our stores.
“We don’t have walls between our departments, so we can easily expand or contract categories to respond to the newest trends or latest deliveries in our stores.
“We also merchandise by size to make it easy for customers to shop – so for example, if a customer is looking for a dress and they’re a size 10, you’ll find all the size 10 dresses in one rack together. It makes it really easy to shop with us.”
TK Maxx currently operates over 500 stores across six countries – the United Kingdom, Ireland, Germany, Poland, Austria, and the Netherlands – with a global buying network of more than 18,000 vendors.
“We expect Australian shoppers will love TK Maxx, just as we have experienced across the UK and Europe,” said Buenen.
“ There’s certainly lots of expats and Australians here who are already familiar with the brand so we’re excited to bring TK Maxx to Australian shores.”
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