Bargain-hunters drive up profits at TK Maxx, as new store plans are revealed
Discount fashion retailer TK Maxx has reported soaring profits as it announces plans to open a slew of new stores across the UK in 2017.
The US-owned firm saw profits jump by 11 per cent jump in the 12 months ending January 30 2016, increasing from £2.2bn to £2.4bn. Pre-tax profits also rose by 11 per cent from £128m in the year ending January 30 2016, to £142.3m one year later.
The store’s directors claim that they were able to keep costs down by cutting back on advertising and store fixtures and “focusing aggressively on expenses”.
TK Maxx is known for offering off-season designer clothes and accessories at discounts of up to 60 per cent. It describes itself as being “unlike traditional retailers” as it doesn’t offer promotions, sales or other gimmicks, and stocks brands from thousands of vendors across the world.
Earlier this year, TK Maxx celebrated its 500th European store opening in Chichester West Sussex, as part of an ongoing expansion plan which saw 25 new retail shops and six HomeSense stores open across the UK. Another 24 store launches are planned for next year.