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What Are Off-Price Retailers’ Expansion Plans?

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Extensive store network

Among the major off-price retailers, TJX Companies (TJX) is the largest player with an extensive store count of 3,675 stores as of July 30, 2016, in the US, Canada, UK, Ireland, Germany, Poland, Austria, the Netherlands, and Australia. As of July 30, 2016, Ross Stores (ROST) operated 1,317 Ross Dress for Less locations and 184 dd’s Discounts stores in the US. Burlington Stores (BURL) operated 569 stores in the US as of July 30, 2016. Unlike TJX Companies, Ross Stores and Burlington Stores lack an international presence.

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New stores

In fiscal 2Q17, which ended on July 30, 2016, TJX Companies opened 14 new stores. In the US, TJX Companies operates its stores under the T.J. Maxx, Marshalls, HomeGoods, and Sierra Trading Post brand names. In Canada, the company operates stores under the Winners, HomeSense, and Marshalls brands. The company’s stores in the UK operate under the T.K. Maxx and HomeSense brands. Aside from these, TJX Companies also operates 35 Trade Secret stores in Australia.

In fiscal 2Q16, which ended on July 30, 2016, Ross Stores opened 24 new Ross Dress for Less stores and seven dd’s Discounts stores. For the full year fiscal 2016, the company aims to open 70 new Ross Dress for Less stores and 20 dd’s Discounts stores.

Burlington Stores didn’t open any new stores in fiscal 2Q16. For fiscal 2016, the company expects to open 25 new stores, net of store closures.

Long-term store growth plans

Over the long term, TJX Companies aims to grow its store count by more than 50% to 5,600 stores. This long-term growth plan involves an estimated 1,400 additional stores in North America and a plan to open 500 new stores in Europe and Australia.

Ross Stores plans to increase its store base to 2,500 locations over the long term. Burlington Stores aims to grow its store count to 1,000 stores.

We’ll discuss analyst recommendations for off-price retailers in the next part of this series.

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