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With fewer shoppers heading out to brick and mortar stores, companies have been re-examining their footprint and many are choosing to close down underperforming locations. Pizza Hut, CVS, Sears, Boston Market and Walgreens have all recently shuttered stores as a cost-cutting measure and TJ Maxx and Marshalls are now doing the same.
The stores, which are owned by the TJX Companies, are well known for great deals on all sorts of items, sometimes even designer clothes. While many similar department stores have been severely struggling, because of their lower prices, TJ Maxx and Marshalls have not just been staying afloat, but pretty successful. However, not all their stores are performing that well, and that is affecting the company's bottom line. To fix it, they've decided to close some of their stores, specifically in larger cities.
They've already shut down a TJ Maxx location in St. Paul, Minnesota and a Marshalls in Philadelphia, and in the coming days, they'll be shuttering the Marshalls on Exterior Street in The Bronx, NY, the TJ Maxx on Fulton Street in Brooklyn, NY and the TJ Maxx on Canal Street in Chicago. A spokesperson explained the decision in a statement that reads, "We are always assessing and reviewing our real estate strategies, and our decision to close these stores reflects that thinking. We have offered all our associates in these stores other jobs in nearby locations. We are grateful for the loyalty of our New York City, Chicago, and Philadelphia customers and invite them to visit our nearby stores to continue to find great values."
There is no word yet if TJX plans to close more of their 3,500 US stores this year, but along with shuttering locations, they also plan on opening new ones. CEO Ernie Hermann said in an earnings call last year, "Long term, we see the potential to open more than 1,400 additional stores across our current geographies, which we believe will attract even more shoppers to our great assortments and values."