What: TK Maxx sales top GBP 4bn for the first time.

Why it is important: It highlights TJ Maxx’s strong sales growth despite a sharp drop in profits, underscoring consumer demand for discounted goods in a challenging economic climate.

TJ Maxx’s UK arm, which operates TK Maxx and Homesense, reported a significant drop in pre-tax profits for the 53 weeks ending February 2024 despite achieving record sales of over GBP 4 billion. Pre-tax profits fell by 42%, from GBP 172.4 million to GBP 120.7 million, largely due to a one-off exceptional credit of GBP 58.8 million in the previous year. However, sales increased by 3.6% to GBP 4.03 billion, driven by a growing demand for discounted designer items. Like-for-like sales also rose by 3%, boosted by higher foot traffic as consumers returned to in-person shopping following the pandemic.

The retailer expanded its presence by opening four new TK Maxx stores and one new Homesense location, bringing the total number of UK stores to 432. It also plans to open a second flagship store on Oxford Street later this year, having secured a 22,500 square foot space at Mount Royal in March. This expansion reflects the company's confidence in the continued appeal of its value-driven business model as more shoppers seek bargains in an inflationary environment.

TK Maxx sales top GBP 4bn for the first time