US clothes chain targets Britain: TJX plans up to 100 discount stores for top brands

THE US retail group TJX is to open as many as 100 clothing superstores in Britain, selling leading brands such as Christian Dior, Joe Bloggs and Liberty at discounted prices.

TJX, with annual sales of dollars 4bn (pounds 2.7bn), opened its first TK Maxx store on Friday in Bristol. A second shop opens this week in Liverpool. TJX is negotiating leases on four more scheduled to open this autumn.

Ben Cammarata, founder, president and chief executive of TJX, said: 'Over the long term we think we have an excellent chance of opening 100 stores in Britain.

'British clothing prices are extremely high, and I think the consumer deserves more. We sense there is a great thirst for value here.'

The expansion rate would depend on the success of the first shops and the ability to cut through planning red tape and secure leases on suitable properties.

The group is talking to several landlords, and there is speculation that it is negotiating with Tesco to take excess space at some of its town centre properties.

Paul Morris, stores analyst at Goldman Sachs, said: 'This is as significant for the clothing industry as CostCo's arrival last year was for food and hard goods.' CostCo provoked intense industry interest with its no-frills, members-only format.

Department stores such as House of Fraser and Allders were most obviously vulnerable to the TK Maxx format, Mr Morris said. Some of the weaker own-brand garment retailers, such as Burton, might also be exposed.

TJX is able to discount 20 to 60 per cent by sourcing less fashionable lines and by taking incomplete ranges, in which some sizes or styles or colours are missing. The choice is often limited.

It also sites the shops in non-prime locations. The Bristol shop is on the top floor - the least visited part - of the Galleries shopping centre. The no-frills format is known in America as 'off-price retailing'.

The stores, of 18,000 to 25,000 square feet, the size of a medium-size supermarket, will stock around 50,000 items of men's and women's fashion, shoes, lingerie, accessories and some gifts and kitchenware. There are changing rooms and centralised tills.

British products will be sourced by a separate UK buying team, numbering nine, which will confer with its counterparts in the US, where combined buying muscle can be brought to bear upon suppliers.

TJX's main chain in the United States, TJ Maxx (the name was altered slightly for the UK), has 520 stores, and the format has been transplanted successfully to Canada.

TJX is quoted in New York with a stock market value of around dollars 2bn. Mr Cammarata's personal holding is worth about dollars 8m.

TJX contrasts itself with discount chains such as Mark One and What Everyone Wants, which sell cheap but largely unbranded clothing.

The closest Britain comes to the format is Matalan, a privately owned, club-style chain, which charges customers a membership fee.

Matalan, based in Preston, has grown to 36 shops, with turnover of about pounds 90m and pre-tax profits of pounds 5.3m. It is thought to be considering a stock market flotation.

(Photograph omitted)

Voices
voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
Sport
The Pipes and Drums of The Scottish Regiments perform during the Opening Ceremony for the Glasgow 2014 Commonwealth Games at Celtic Park on July 23, 2014 in Glasgow, Scotland.
Commonwealth GamesThe actor encouraged the one billion viewers of the event to donate to the children's charity
Sport
Karen Dunbar performs
Entertainers showcase local wit, talent and irrepressible spirit
Sport
Members of the Scotland deleagtion walk past during the opening ceremony of the 2014 Commonwealth Games at Celtic Park in Glasgow on July 23, 2014.
PROMOTED VIDEO
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
film
Life and Style
fashion Designs are part of feminist art project by a British student
News
Very tasty: Vladimir Putin dining alone, perhaps sensibly
news
Life and Style
Listen here: Apple EarPods offer an alternative
techAre custom, 3D printed earbuds the solution?
Arts and Entertainment
Top guns: Cole advised the makers of Second World War film Fury, starring Brad Pitt
filmLt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a uniform
News
The University of California study monitored the reaction of 36 dogs
sciencePets' range of emotions revealed
News
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
News
ebookA unique anthology of reporting and analysis of a crucial period of history
Arts and Entertainment
A scene from Shakespeare in Love at the Noel Coward Theatre
theatreReview: Shakespeare in Love has moments of sheer stage poetry mixed with effervescent fun
News
Joining forces: young British men feature in an Isis video in which they urge Islamists in the West to join them in Iraq and Syria
newsWill the young Britons fighting in Syria be allowed to return home and resume their lives?
Arts and Entertainment
The nomination of 'The Wake' by Paul Kingsnorth has caused a stir
books
News
i100
Life and Style
food + drinkZebra meat is exotic and lean - but does it taste good?
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

PMO Analyst - London - Banking - £350 - £400

£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...

Cost Reporting-MI Packs-Edinburgh-Bank-£350/day

£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...

Insight Analyst – Permanent – Up to £40k – North London

£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...

Test Lead - London - Investment Banking

£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...

Day In a Page

Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
The quest to find the perfect pair of earphones: Are custom, 3D printed earbuds the solution?

The quest to find the perfect pair of earphones

Earphones don't fit properly, offer mediocre audio quality and can even be painful. So the quest to design the perfect pair is music to Seth Stevenson's ears
US Army's shooting star: Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform

Meet the US Army's shooting star

Lt-Col Steven Cole is the man Hollywood calls when it wants to borrow a tank or check a military uniform
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Farewell, my lovely

Should emergency hospital weddings be made easier?
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
Will The Minerva Project - the first 'elite' American university to be launched in a century - change the face of higher learning?

Will The Minerva Project change the face of higher learning?

The university has no lecture halls, no debating societies, no sports teams and no fraternities. Instead, the 33 students who have made the cut at Minerva, will travel the world and change the face of higher learning
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Commonwealth Games 2014: Great Scots! Planes and pipers welcome in Glasgow's Games

Commonwealth Games 2014

Great Scots! Planes and pipers welcome in Glasgow's Games
Jack Pitt-Brooke: Manchester City and Patrick Vieira make the right stand on racism

Jack Pitt-Brooke

Manchester City and Patrick Vieira make the right stand on racism
How Terry Newton tragedy made iron men seek help to tackle their psychological demons

How Newton tragedy made iron men seek help to tackle their psychological demons

Over a hundred rugby league players have contacted clinic to deal with mental challenges of game