TK Maxx to open in Australia
8 Mar 2017
London - International discount retailer TK Maxx has confirmed it is set to open its doors in Australia. Owned by US firm TJX Companies Inc, TK Maxx, known as TJ Maxx in North America, is said to be the first major 'off-price' retailer to expand into the country.
TK Maxx is set to open at least 35 stores across the country in former locations of Trade Secret stores by April this year, and aims to open a number extra locations throughout the year. The move comes more than two years after TJX Companies acquired local discount retailer Trade Secret from Gazal Corporation for more than 80 million AU dollars and follows on from TK Maxx return to the Benelux, a little over a year and half ago.
TK Maxx gears up to open 35 stores in Australia
TJX Companies, which currently operates over 3,800 fashion and homeware stores across the globe under a number of retailers, believes there are many opportunities for discount retailers in the Australian market. “Our off-price model is unique to the market,” said Tessa Buenen, a TJX spokesperson to Inside Retail. “Australian shoppers are extremely savvy and value orientated, so we think our offer is going to be a winning formula here and we’re very excited about our growth opportunities for this market.”
Unlike local department stores David Jones and Myer, TK Maxx offers customers new designs and styles each week, at the fraction of the normal retail price which encourages consumers to buy more on the spot, in fear the item will be gone next week. TK Maxx is famously known for its "treasure hunt" shopping experience, which sees customers enjoying the thrill of the find. "Because of the way we buy, we have several deliveries per week with thousands of new products hitting shop floors," explained Buenen. "This means that no two stores are the same, and with new products arriving regularly there will always be something new and fresh for shoppers to discover on a visit to our stores."
“We don’t have walls between our departments, so we can easily expand or contract categories to respond to the newest trends or latest deliveries in our stores. We also merchandise by size to make it easy for customers to shop – so for example, if a customer is looking for a dress and they’re a size 10, you’ll find all the size 10 dresses in one rack together. It makes it really easy to shop with us. Our stores are bright, modern, easy-to-shop and we have a flexible store layout," said Buenen. In addition, TK Maxx does not purchase its goods seasonally, but rather purchases items throughout the year, for its global network of over 18,000 vendors, ensuring it has a unique mix of product in each store that are not necessarily seasonal bound.
Although some insiders note that the arrival of TK Maxx could be upsetting for local department stores, due to its discounting approach the 'off-price' retailer is more of a contender against the mid-price retailers Kmart and Target. “We wouldn’t comment on the competition, but what we can say is that we believe we have a fabulous store that offers customers a unique selection of merchandise with an exciting shopping experience, and we think customers here will absolutely love it," added Buenen. Buenen declined to reveal more on TK Maxx strategy for Australia, or what brands the stores would be carrying, but she did noted that the stores would offer a "huge" assortment of men's, women's, and children's fashion, footwear, accessories, lingerie, beauty as well as homeware from a number of local and international brands at different price points. “We expect Australian shoppers will love TK Maxx, just as we have experienced across the UK and Europe. There’s certainly lots of expats and Australians here who are already familiar with the brand so we’re excited to bring TK Maxx to Australian shores.”
TJX Companies has yet to reveal the exact location and date of the opening of its first TK Maxx store in Australia.
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