TK Maxx operator TJX UK swings to big loss on Covid impact
TJX UK has reported plunging turnover and a loss for the year to January (its fiscal year 2021) in a results filing at Companies House.
The firm is a subsidiary of TJX Europe and part of the wider US-based TJX operation. It runs the value-focused TK Maxx and Homesense stores in Britain.
As mentioned, turnover fell sharply with a 34.6% drop to £2.278 billion during the period after having risen 10.3% in the previous year. The company also made a net loss of £205.9 million after being in profit to the tune of £84.4 million in the 2020 financial year. The pre-tax loss was £254 million after a previous profit of £104 million.
The company said it was "significantly impacted" by the pandemic due to the temporary closure of its stores, distribution centres and offices. It also meant it had to modify its operations generally and that consumer behaviour changed. And it added that it “also felt the impact of uncertainty regarding the length of time stores were closed”.
In fact, its shops were shut for around 41% of the period, while its distribution centres were closed for 27% of the time. And even its online business was actually offline for 10% of the reporting period, although it clearly managed to get it up and running and adapted to the new normal relatively quickly.
The company also took measures to shore up its finances and borrowed £200 million under a revolving credit facility linked to its parent company. And it used government business support measures to help it through as well.
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