TJX — the parent company of TJ Maxx, Marshalls, HomeGoods and Sierra — has entered a joint venture with the South American multi-brand retailer Grupo Axo to expand its off-price business into Mexico.
Axo is a leading retailer of apparel, fashion accessories, footwear, beauty and personal care, with a slate of full- and off-price brands that operate across Mexico, Chile, Peru and Uruguay. The company has more than 970 boutiques across these four countries and also sells via 6,900 points of sale in department stores.
Under the partnership, TJX would own 49% and Axo 51% of a joint venture that will comprise what is currently Axo’s off-price physical store business in Mexico, which includes more than 200 stores that operate under the Promoda, Reduced and Urban Store banners.
“As the world’s retail leader in off-price apparel and home fashions, we are excited about the opportunity to expand to Mexico through our partnership with Axo, and grow and enhance that country’s leading off-price retailer,” said Ernie Herrman, CEO and President of The TJX Companies in a statement. “With TJX’s decades of experience as an international off-price retailer, and Axo’s established base of over 200 off-price stores and 30 years of operating experience in Mexico, we see excellent potential to grow in another region and deliver our value proposition to a growing population of fashion- and value-conscious consumers in Mexico.”
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The transaction is expected to close later this year, subject to applicable antitrust clearance in Mexico, after which the financial terms of the deal will be disclosed.
“We could not have found a better partner for our off-price physical store business than TJX, the leading off-price retailer of apparel and home fashions worldwide,” said Andrés Gómez, Co-founder, Chairman and CEO of Axo in a statement. “We are thrilled to have the opportunity to work with them to reimagine the off-price retail experience in Mexico.”
The new deal is part of Hermann’s larger plans for TJX, which already operates 4,900 stores across nine countries. During a recent call with analysts, Hermann shared that he plans to expand that number by at least 1,300 stores “over the long term.”
