What does domestic sale “apprentice” learn from TJX?
Editor’s note: This article from the micro-channel public number “ US Stock Research Society “(Public Account Number: Meigushe).
TJX’s business model is a typical representative in the field of sale economy. As the nation’s largest brand discount operator, TJX ranked 317th in the Fortune 500 companies in 2019. According to the financial report results released by TJX this year, the third quarter financial year 2020 financial report continues to bring strong performance, which also makes its stock price performance this year is generally upward trend.
Under the impact of Amazon’s efforts in the fashion industry, why do the products sold by TJX win the favor of many global consumers? The domestic sales economy industry is also emerging. There are many TJX imitators both online and offline, but unfortunately everyone seems to have only learned its superficial skills and failed to focus on core competitiveness. Why can’t the domestic sales economic environment give birth to the Chinese version of the brand discount giant?
Thanks to the “cold wave” of US retail sales, TJX is supporting growth pressure with earnings performance
This year has been a difficult one for US retailers. Towards the end of 2019, the number of US store closures reached a new record. According to the latest data from Business Insider magazine, this year, as many as 9,300 stores in the United States closed, breaking the record of approximately 8,000 stores closed in 2017. Among them are Victoria’s Secret, GAP, Forever 21 and other well-known global chain brands. Even traditional department store giants such as Macy’s and Sears Department Store are inevitable.
Under the slump of the retail market, it is not easy for well-known retailers to maintain a good growth momentum, althoughThe development of most retail companies is not ideal, but there are still some retail giants that have withstood the development pressure in adversity, such as Costco, Wal-Mart, Target, and clothing retail giant TJX.
Based on TJX’s stock price performance this year, most of the time it is still on the rise. As of the publication of this article, TJX’s stock price is US $ 60.82 and its market value is US $ 73.178 billion, an increase of more than 37% from the beginning of the year. The performance of TJX’s stock price can be recognized by many investors, the key is that it has a good growth momentum in its financial results released this year.
In the third quarter of fiscal 2020, TJX’s sales increased by 6.4% year-on-year to $ 10.45 billion, exceeding analysts’ estimates of $ 10.32 billion. The company’s same-store sales rose 4%. TJX’s adjusted earnings per share rose 7.9% in the third quarter to $ 0.68. Analysts had previously forecast earnings of $ 0.66. The stock repurchase has boosted its earnings per share.
Meanwhile, same-store sales in the United States of Marmaxx and HomeGoods increased by 4% and 1%, respectively. In addition, same-store sales at TJX Canada and TJX International (Europe and Australia) increased by 2% and 6%, respectively. Revenue growth was driven by higher consumer traffic, which increased for the 21st consecutive quarter.
TJX currently estimates that earnings per share for fiscal year 2020 will be between $ 2.61 and $ 2.63, compared to previous estimates of $ 2.56 to $ 2.61. Its latest guidelines reflect 7% -8% growth compared to fiscal 2019. In addition, the company currently expects adjusted earnings per share for fiscal year 2019 to increase by 7%. TJX also expects same-store sales to increase by 3% in FY 2020, compared with a previous forecast of 2% -3%.
The key to the success of the TJX business model lies in its three links: buyer, supply chain, and buyout. These three links are linked to form a solid internal structure, which also allows consumers to Buy cheap seasonal products here. Currently there are multiple product lines. The United States is mainly based on TJ MAXX, Marshalls and HomeGoods. Canada has Winners, Homesense and Marshalls. Europe has corresponding T.K.Maxx and Homesense.
TJX can reach a market value of more than 70 billion, which is naturally enviable. In fact, there are many online and offline special sales routes in China, but there is still a large gap between TJX and market value. Why can’t the Chinese market give birth to a sales giant?
There are many “TJX” imitators in China. Why did Vipshop not make the sale bigger and stronger?
With the business model of sales, TJX has become a giant in the sales economy. The market value growth is also obvious, which also has many domestic imitators. The sales platforms represented by Vipshop, iStock, and Baicang are typical representatives. Among them, some shopping malls will also hold sales events, but they are all scattered, and no representative company has succeeded.
Although Vipshop is the earliest platform for special sales, it is also a little bit splashy, but Vipshop, which specializes in special sales, has failed to exert its competitive advantage. Currently, the stock price of Vipshop is US $ 14.59 and the market value is US $ 9.761 billion. Both emphasize limited-time sales, products are genuine and other selling points, but the sales form still cannot be a big wave in China. Why can’t China create a second “TJX”?
1. The influence of mainstream e-commerce platforms is greater, and the presence of special sales platforms is squeezed.
According to data from iiMedia Research, the number of mobile e-commerce users is expected to reach 788 million in 2020. Although there are such a large number of users online, most of these user traffic are still divided up by Ali, JD.com and Pinduoduo. Taking Ali as an example, Alibaba Group announced the quarterly results as of September 30, 2019. China ’s retail market has 785 million monthly mobile active users, a sharp increase of 30 million compared to June 2019; annual active consumers have increased 19 million to 6.93 Billion.
On the mainstream e-commerce platform, in order to attract users to consume frequently, a series of activities are organized around products, and special sales are one of them. In the middle of the year 618, the promotion efforts of the major brands on Double 11 on the end of the year are all attracting the desire of consumers to consume. At the same time, because the mainstream e-commerce platform has reached cooperation with larger international brands, users can meet their shopping needs on the platform. For special sales platforms such as Vipshop, iStock, and Puidian, the scale of their users is not very high, and they also face the overwhelming majority of users being divided up by mainstream e-commerce platforms. It is not only cost that Is growing, and getting more difficult.
2. It is very difficult for the sale company to establish a good cooperative relationship with the supplier. The supply chain is the “lifeblood” of the sale
TJX, for example, why can it stimulate consumer desire? The main reason is that the international brands it cooperates with are users