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The Street

Jena Warburton

TJ Maxx and Marshalls closing permanently in these major cities (here's why)

MA TJ Maxx Marshalls (Organization) Chicago TJX TJX Companies NY Bronx Brooklyn

For many expert shoppers and deal hunters, one of the most popular destinations for gifts, home staples, furniture, clothing and more is TJ Maxx.

But it's not just variety in stores that keeps things interesting.

Parent company TJX Companies TJX owns and operates TJ Maxx, Marshalls, HomeGoods, Sierra Trading Post, and in the U.K., TK Maxx.

The TJX Companies business model is to give customers selection – and a lot of it. Its success it quite literally staked on other brands not being able to push all their inventory, thereby selling it to TJX in a pinch, and typically, on the cheap. Pair that with its bounty of discount (overstock) inventory it sources from hundreds of suppliers and you've got a winning formula to delight all ages, and, increasingly, genders.

Add to that the fact that it's got a scant online presence – meaning, you have to come in person and shop, and probably pick up more than you anticipated, and the whole shopping trip becomes just that, an experience.

But a changing retail landscape has affected nearly everybody in a post-covid world. From Target TGT to Walmart WMT, Dick's Sporting Goods DKS to Best Buy BBY, nearly every large retailer has raised the alarm on an increasingly budget-conscious consumer and other profit ills – including inventory shrink.

TJX Companies had largely been able to stay above the fray for a while. Its aforementioned winning business model had been enough to largely insulate it from market vacillations and its lower price points only strengthened its position among penny-pinching shoppers.

"I am particularly pleased with the performance of our largest division, Marmaxx, which delivered high single-digit increases in both comp sales and customer traffic," CEO Ernie Herrman said on the Q2 earnings call in August. "Our overall apparel and accessories sales were very strong. And our overall home sales significantly improved and returned to positive comp sales growth. Clearly, our terrific mix of branded, fashionable merchandise and great values resonated with shoppers when they visited our stores."

But at such great heights, TJX was probably bound for something of a correction. And while its stock is still up 2.5% over the past month, a recent announcement about store closures is hitting close to many homes.

TJX closes multiples stores in large cities

TJX has already shuttered one location in St. Paul, Minn., and has further plans to shutter more stores in the coming months.

Framingham, MA - August 24: Shoppers at a T.J. MAXX store go through racks of clothing. (Photo by David L. Ryan/The Boston Globe via Getty Images)
Boston Globe/Getty Images

Here's what's closing:

New York:

Marshalls: 610 Exterior Street, Bronx, closing early January
TJ Maxx: 503 Fulton Street, Brooklyn, closing early January

Chicago:

TJ Maxx: 1008 S. Canal Street, closing early January

Some of these locations had been in business for 10 years or more. TJX Companies, for its part, cited the reasoning for its New York closure as "economic."

It added that it is "assessing and reviewing our real estate strategies, and our decision to close this store reflects that thinking."

TJX runs nearly a dozen other stores in the New York borough and Chicago areas that will remain open following the closure of the three stores above. They include:

Bronx: