TJX Cos. CEO Ernie Herrman did a pretty big about face last week when he announced that his company’s HomeGoods brand would enter the e-commerce arena. E-commerce will “satisfy our customer base and attract new shoppers,” Herrman told investors in a statement that contrasted sharply with sentiments he had made earlier in the year, and in which he had claimed that his company would “not look to e-commerce as our major leveraging point to get us through Covid and out the other side.”
But, oh what a difference six months makes.
Since the start of the year, the pandemic has shone a bright light on two important things — one, that home furnishings is a great margin business (especially, when people are trapped at home), and, two, that e-commerce is kind of a big deal in 2020.
Both of which are why Mr. Herrman’s latest pair of flip flops looks really good on him.
While TJX’s overall comp store sales fell 5% this past quarter, HomeGoods’ store comps, in comparison, helped TJX exceed analyst expectations as they rose by what on the surface appears to be an almost ridiculous 15%.Forbes