The TJX Companies (NYSE:TJX), parent company of TJ Maxx, announced the acquisition of Trade Secret, an off-price retailer that operates 35 stores in Australia. The purchase, worth $80 million in Australian dollars, gives TJX an opportunity to enter the Australian market, where it currently operates one of its 13 buying offices.
Subject to customary closing conditions, TJX expects the transaction to be complete by the end of 2015.
Trade Secret sells branded apparel for women, men and children, along with footwear, accessories and home fashions. Most of the stores are located in the eastern part of Australia. The first store opened in 1992 and today is worth $164.5 million in Australian dollars.
"We are excited about the anticipated addition of Trade Secret to the TJX family of companies and expanding to another continent, which underscores the strength of our international growth opportunities," said Carol Meyrowitz, chairman and CEO of The TJX Companies. "TJX is one of the few major U.S. retailers to have expanded successfully in international markets, including Canada and Europe, which gives us confidence in our potential growth in Australia."
Meyrowitz went on to compare the Australian market to the Canadian demographic, predicting Trade Secret will be another strong acquisition. TJX entered Canada in 1990 with the acquisition of Winners.
TJX is one of three off-priced retailers growing at a faster rate than the retail industry. These retailers are expected to grow 6 to 8 percent in the next five years, compared with a 4 percent predicted growth for retail in general.
-See this TJX Corporation press release
Carol Meyrowitz, chairman and CEO, TJX Companies, Inc.
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