HomeGoods has become 'a bit of a cult,' TJX CEO says (2024)

HomeGoods stores offer a mix of utilitarian basics and eclectic finds at low prices that keep customers coming back. Foto: AP Photo/Elise Amendola

• HomeGoods is the housewares and furnishings brand in TJX's off-price retail family.
• The stores offer a mix of utilitarian basics and eclectic finds that keep customers coming back.
• "It's become a bit of a cult," TJX CEO Ernie Herrman joked about the brand's popularity on TikTok.

Anyone who has ever set foot in a HomeGoods store has likely walked out with at least one thing they hadn't planned on purchasing.

HomeGoods is the housewares brand in the TJX off-price retail family, which includes megastars T.J. Maxx and Marshalls, plus the outdoorsy Sierra.

Like its siblings, the store taps into that same balance of everyday essentials and unexpected gems, all at prices that keep customers coming back in droves.

Some of those customers are increasingly bringing their phones with them, broadcasting buying tips and finds to millions of viewers on TikTok.

"It's become a bit of a cult," TJX CEO Ernie Herrman joked during the company's fourth-quarter earnings call on Wednesday.

"People know you can't go in there and spend less than a couple hundred dollars,even though you were planning on going in just for a bed pillow," he added.

Herrman said his merchandising team is focused on cultivating that sense of excitement with an eclectic mix of products and brands for the home, drawing on the expertise homed in fashion and apparel at T.J. Maxx and Marshalls.

He also credited other e-commerce and physical retailers with "creating additional opportunity for our home business because of their execution and their lack of excitement."

"We believe HomeGoods is one of the most exciting store shopping experiences on the planet — really," he said.

The brand is also punching above its weight in driving sales for TJX.

HomeGoods represents about a quarter of TJX's total retail footprint in the US, but Herrman said housewares will represent more than a third of TJX's business, ticking even higher in the coming years.

That's in spite of the company winding down e-commerce operations for the brands last fall to focus on brick-and-mortar stores.

Of course, shoppers are less likely to make as many unplanned purchases on a website or app as they are in-store, and TJX is counting on that.

"HomeGoods is such an eclectic treasure hunt," Herrman said. "It's really a special place in terms of impulse buying, and I think just a huge market share opportunity there."