Feb 27, 2013|
Boston Herald Business Editor Frank Quaratiello on TJX
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
Frank Portillo is the business editor for the Boston Herald and he joins us to talk about TJ Maxx who had an earnings announcement this morning at 9:30 eastern time. The most out of been too bad because their stock prices up 53 pennies a share good morning frank. Good morning -- -- good good so what -- tells the TJ Maxx. TJX. The owner and TJ Maxx and they're based out and framing him there actually. As they've done for the last several years. -- really good earnings. But you know it. It's a little bit of a cautionary tale. It doesn't seem like things are slowing down there there and off price retailer. And even know earnings soared. And it's the 25 billion dollar company in terms -- the annual sales. And the CEO is saying that they're well on their way to being a forty billion dollar company they are projecting slower growth in the future and that has some. Some people a little bit concerned. Well and I can see that I mean that payroll tax hike alone the couple two things right the payroll tax increase in the market price of gasoline. That's got to be impacting TJ Maxx customers just as it impacted the Wal-Mart customer last week. Yeah I think that's really true I think did you know off price retailers and you know and and retailers like two like Wal-Mart. Tend to benefit. When times are tough. But maybe we've seen a lot of that benefit already behind I don't know if if there's that would -- front about. One of the criticisms towards TJ Maxx has been there. Late entry if you will to the e-commerce he'll look at a company like staples of Massachusetts company. Basically the number two online retailer in the world next Amazon. TJ Maxx very slow to implement and. That is true they they took a run at it back in 2005. They closed down there there effort. After a little bit more than a year and really put it on the shelf for now what it's been eight years. But in December. They made an investment they spent 200 million dollars to buy off price -- -- Sierra trading post. And it looks like they're gonna use that infrastructure. To built on two and that expertise and they're gonna get back in the online game. How did they do that frank without cannibalizing. Their own stores you know one of their key measures. Ford judging a retail company is same store sales year over year rights of they'll say OK and we -- -- store in Brighton. How did that store and -- due in January -- thirteen when compared to January 12 does an e-commerce. Strategy. Impact the year over year earnings for. A retailer like this. Yeah it's certainly has potential I think -- -- and and I'm not being TJ Maxx shoppers or Marshal shoppers are not in the stores a lot. But my understanding is. There is an element of you go into the store and it's it's almost like a -- He never quite know -- going to be in the air. And that's something that to make there. There online platforms successful. With their customers that are gonna have to recreate but that's also something that's going to help sustain their brick and mortar stores. If there's this notion that if you show up there you might find something that you're never gonna find somewhere else and that will keep people coming to their stores. Very good very good -- frank thank you very much for the update on TJ Maxx. Thanks for having me very take care. -- francoeur chill Boston Herald talked into this a battle to TJ Maxx and.