TJX Expanding To The Land Down Under

The TJX Companies, Inc. , with its worldwide headquarters in Framingham, announced it has signed a definitive agreement to purchase Trade Secret, an off-price retailer that operates 35 stores in Australia, from Gazal Corporation Limited for $80 million in Australian currency or about $58.5 million.

The potential acquisition of Trade Secret provides TJX an opportunistic entry into Australia, where TJX currently operates one of its 13 buying offices.

TJX expects the transaction, which has customary conditions to closing, to be consummated by the end of calendar 2015.

Trade Secret offers branded apparel for women, men and children, as well as footwear, accessories and home fashions at great values. Virtually all of the Trade Secret stores are located in the eastern part of Australia.

Trade Secret opened its first store in 1992 and since then, has grown to $164.5 million in revenue (Australian currency) for its fiscal year ended June 2015.

“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. 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. With consumer demographics similar to Canada, we see Trade Secret as a strong platform to grow in Australia similar to how we entered Canada with our acquisition of Winners in 1990 and grew that business into a leading Canadian retailer. We believe TJX can further develop Trade Secret by leveraging our international leadership experience, buying scale, vendor universe, marketing, and other capabilities. We view Trade Secret as a good fit with our own corporate culture and are looking forward to growing this business for the future,“ said Carol Meyrowitz, Chairman and Chief Executive Officer of The TJX Companies, Inc. in a statement.

The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide.

TJX operated a total of 3,441 stores in seven countries, the United States, Canada, the United Kingdom, Ireland, Germany, Poland, and Austria, and three e-commerce sites. These include 1,126 T.J. Maxx, 987 Marshalls, 498 HomeGoods and 6 Sierra Trading Post stores, 239 Winners, 97 HomeSense, and 39 Marshalls stores in Canada; and 416 T.K. Maxx and 33 HomeSense stores, as well as tkmaxx.com, in Europe.