T.J. Maxx Benefits from “Revenge Spending”
Unlike many other retailers, T.J. Maxx changed nothing about its strategy when the coronavirus pandemic hit. While others scrambled to compensate for closed stores with big online sales, T.J. Maxx bet that customers stuck at home would flock back to its stores, ready to indulge in “revenge spending”, once restrictions eased.
So far, it is happening as T.J. Maxx hoped. In-store sales are higher than they were last year. But experts warn that the continued neglect of e-commerce could still hurt T.J. Maxx, especially if there is another lockdown.
“Strategically, nothing will change,” TJX Chief Executive Ernie Herrman told analysts in May. “We will not look to e-commerce as our major leveraging point to get us through Covid and out the other side.”