TJX Announces Expansion into Mexico Through Joint Venture

TJX, the parent company of TJ Maxx, HomeGoods, and Marshalls, is set to expand its presence into Mexico through a joint venture with Grupo Axo. This partnership will focus on growing Axo’s off-price, physical store business in Mexico, which includes over 200 locations of Promoda, Reduced, and Urban Store. TJX will own 49% of the venture, while Axo will own 51%.

Before the deal can be finalized, it must receive antitrust clearance in Mexico and meet customary closing conditions. The financial details of the transaction will be disclosed after closing, which is expected to take place later this year. TJX reassured that this move into Mexico will not impact its guidance for the year.

This collaboration with Axo is part of TJX’s broader expansion strategy, which includes plans to open 10 stores in Canada, 15 in Europe, and five in Australia this year. Executives also hinted at the possibility of adding over 1,300 more stores within their existing banners and countries of operation in the future.

Analysts view international expansion as a key growth opportunity for TJX, especially as consumer interest in off-price retailers continues to rise both domestically and abroad. In the first quarter, TJX saw a significant increase in net sales in Europe, Australia, and Canada, signaling the potential for further growth in these markets.

TJX CEO Ernie Herrman expressed optimism about the partnership with Axo, citing the company’s decades of experience in the off-price retail sector. He believes that this collaboration will allow TJX to reach a new segment of fashion-conscious consumers in Mexico.

Overall, the expansion into Mexico marks a significant milestone for TJX as it continues to solidify its position as a global leader in off-price retail.

This article was based on a story originally published on Retail Dive. For more industry news and insights, subscribe to the free daily Retail Dive newsletter.