TJX sales rise; plans to shutter 34 A.J. Wright stores
The TJX Cos. in Framingham announced their November sales results, along with plans to close 34 of its 162 A.J. Wright stores in an effort to focus its assets on more profitable markets.
November sales were up 7 percent over last year, rising to $1.6 billion in '06, compared to $1.5 billion in the same period in 2005. For the 43 week period ended November 25, sales rose 9 percent to $13.9 billion, up from last year's $12.8 billion. In the month of November, consolidated comparable store sales rose 3 percent over last year, and for the 43 week period ended November 25, consolidated comparable store sales increased 4 percent over 2005.
In January, the company plans to shutter 34 A.J. Wright stores, all of which have profit contributions below the balance of the chain. Though the stores represent 21 percent of the A.J. Wright store base, their sales contributions account for 16 percent of the brand's year-to-date sales. The firm predicts that its net income will be reduced by $37 million as a result of the closings, but that the actual cash cost of the closings will cost approximately $17 million.
Commenting on the soon-to-be displaced employees, TJX Cos. chairman and acting CEO Ben Cammarata said, "We are committed to offering these Associates other opportunities within TJX, where appropriate, and to seeing that they are provided assistance during this transition."
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