TJX Cos Inc, the corporation that runs the discount store T.J. Maxx, recently revealed that it is in a good position with its inventory and expects strong holiday sales, even amid the global supply chain problems that have many analysts and consumers worried. Because of this large inventory, T.J. Maxx will more than likely not have to worry about its store shelves being empty.
For the past few months, analysts have been warning both businesses and consumers about the global supply chain problems that could potentially hamper the holiday shopping season. Supply chain bottlenecks have clogged many ports in the United States, causing businesses to be forced to wait weeks, and even months, until it gets their products.
These supply chain problems were directly — and indirectly — caused because of the COVID-19 pandemic which began to affect countries around the world in 2020. In 2021, when consumer demand for countless goods surged, the supply chain struggled to meet this demand because of COVID-19 restrictions and regulations, as well as because of the massive labor shortage in the United States. Clogs at ports and major bottlenecks ensued.
While bigger corporations, such as T.J. Maxx, Target, and Walmart, were able to ensure that they stock their shelves accurately, smaller businesses haven’t necessarily been able to ensure that their inventory is large before the holiday shopping season begins. For T.J. Maxx, all of their holiday inventory has either already arrived at their stores around the nation, or is scheduled to arrive in the coming weeks. This all but ensures that their inventory will be large, meaning T.J. Maxx stores around the nation will not be as empty as others may possibly be.
Previously, many analysts worried that discount stores or off-price outlets, like T.J. Maxx, would struggle to build a large inventory for the holiday season. Other stores like Ross and Burlington were also thought to struggle. However, T.J. Maxx, which also owns HomeGoods, is proving these analysts wrong with these latest announcements. The total inventory of the large corporation is currently at about $6.6 billion. Two years ago at the same time, the company’s inventory was about $6.3 billion.
Discount stores have done well for the past year after COVID-19 restrictions and regulations were taken away. For the third quarter, T.J. Maxx beat quarterly sales estimates as many people bought clothes from their stores as they prepared to return to school or the workplace.
As a result of all of this, T.J. Maxx expects a strong holiday shopping season. Its stores will be well-stocked, ensuring consumers will have the opportunity to buy whatever they’d like for the holidays. T.J. Maxx isn’t the only large corporation that has already come out to raise its end-of-the-year sales forecast. Already, Target has done the same.
Many consumers have already started shopping for the holiday season, attempting to get ahead of the rush to ensure that they get the items they want before shelves empty. This may have allowed T.J. Maxx to feel strongly in estimating a rise in sales for the end of the year.