TJX to open first 'HomeSense' store next month

Dive Brief:

Homesense, a new off-price home concept from The TJX Cos., will open its first U.S. store next month in Framingham, MA, with four more planned by the end of the year, the company said in a press release on Tuesday. The Framingham store will open on Aug. 17 and the others will be in East Hanover, NJ; Ocean Township, NJ and Westwood, MA.
While the new fleet shares a name with another effort in Europe and Canada, the Homesense concept in the U.S. will offer a different assortment from stores bearing the same name overseas, the company said. Merchandise in the U.S. will include oversized upholstery (sectionals and sofas, futons and day beds); game room items like pool tables; office furniture like desks, bookcases and filing cabinets; garden furniture; rugs; art and a “general store” with toolkits and hardware.
The concept was first unveiled (though not then named) in February, when CEO Ernie L. Herrman said the company would differentiate it from the company’s HomeGoods to encourage customers to shop at both.

Dive Insight:

Despite a first-quarter sales report that reflected uncharacteristic weakness, the off-price stores run by TJX Cos. have stayed above the retail fray, with its T.J. Maxx and Marshalls giving department stores a run for their money. Now TJX is boosting its offerings in another category that department stores have long depended on: bigger ticket home goods like furniture.

"Just as our customers enjoy shopping both TJ Maxx and Marshalls, we are confident that loyal customers and new shoppers alike will be excited about shopping both Homesense and HomeGoods," John Ricciuti, President of HomeGoods and Homesense in the U.S., said in a statement. "As the U.S. home market continues to grow, we are excited to bring consumers an expanded selection of quality merchandise at incredible prices, along with a new shopping experience in which they can discover and curate the home of their dreams."

TJX this year is also boosting its number of HomeGoods stores, which sell a variety of products like bedding and bathroom supplies, frames and candles, and some furniture. Though Herrman didn’t elaborate on what the new concept would be, he said it would be different enough from HomeGoods to avoid cannibalization of the existing chain, first launched by TJX in 1992 and now encompassing 568 stores in 45 states.

Like home improvement sales, home goods sales are benefiting from the strong housing market. HomeGoods in particular has gained traction among U.S. consumers: Though there are far fewer HomeGoods stores than J.C. Penney, Macy’s or Sears stores, female primary household consumers were more likely to shop for housewares there, according to a recent study by Kantar Retail. The move to expand in this area bodes well for TJX, according to analysts at Jane Hali and Associates.

“The home goods sector has been strong across the market and many retailers have opened up floor space to this category,” Hali says, according to a note emailed to Retail Dive. “The TJX group has seen positive results in this market across their stores for a few seasons now. Consumers have been spending their dollars in this market (both the millennial and baby boomer consumer groups) and we believe their new concept will bring more positives to their business.”