TJX UK, the company behind TK Maxx and Homesense stores in the UK, has reported a substantial loss for the fiscal year 2021, which ended in January. The company’s turnover plummeted by 34.6%, reaching £2.278 billion, compared to a growth of 10.3% in the previous year. Furthermore, TJX UK experienced a net loss of £205.9 million, a sharp contrast to the £84.4 million profit recorded in the previous financial year. The pre-tax loss amounted to £254 million, following a profit of £104 million.

The Covid-19 pandemic played a significant role in the company’s poor performance. Temporarily closed stores, shut down distribution centers, and office closures severely disrupted TJX UK’s operations. The company had to quickly adapt to comply with pandemic restrictions, and consumer behavior changed drastically during this period. The uncertainty regarding the duration of store closures added to the challenges faced by the company.

Throughout the reporting period, TJX UK’s stores remained closed for around 41% of the time, and its distribution centers were affected for 27% of the time. The company’s online business also experienced downtime for 10% of the reporting period. However, TJX UK managed to swiftly adjust and resume online operations to meet the demands of the “new normal.”

To strengthen its financial position, the company borrowed £200 million through a revolving credit facility connected to its parent company. Additionally, TJX UK took advantage of government business support measures to navigate the difficult business environment caused by the pandemic.

The losses suffered by TJX UK highlight the significant impact of the pandemic on the retail sector, especially for companies operating in the value-focused segment. As restrictions ease and consumer spending gradually recovers, TK Maxx and Homesense stores will focus on regaining momentum and restoring profitability in the coming months.

Useful links:
1. TK Maxx Store Finder
2. Homesense Store Finder