Worcester Business Journal

wbjournal.com | October 16, 2017 | Worcester Business Journal 19 M E T R O W E S T F O C U S "It'll be interesting to see how it plays out, because HomeGoods is such a hit," said Isaura Beltre, a marketing professor at Bentley University in Waltham, who expressed confidence in both chains succeeding because of quality products, low prices, and lower leasing costs for TJX in cheaper retail plazas. A $664B market TJX has exploited shoppers' desire to find something unexpected when they visit a store, said Lauren Beitelspacher, an assistant marketing professor at Babson College in Wellesley. "They're trying to leverage that loyal- ty," she said of the new chain. "Given how effective they are with their current chains, I think there's every reason to think they'll be success- ful," said Frank Hoy, a business profes- sor at Worcester Polytechnic Institute. The home-decor market is expand- ing beyond just TJX. Texas retailer At Home, for example, has 125 stores today — up from 81 in October 2014 — and says it foresees long-term growth to at least 600 stores. The international home decor industry is projected to grow by 4.2 percent through 2020, reaching $664 billion, according to the analyst group Research and Markets of Ireland. TJX's foray further into the sector will shake up the furniture market sig- nificantly, said Farla Efros, the presi- dent of HRC Retail Advisory, a Chicago-area firm. For TJX, the home market offers bet- ter profit margins than retail, and includes the loyal customer base other furniture stores don't have, Efros said. TJX believes it can draw shoppers into stores instead of buying online by having what Hermann called "one of the most impulsive treasure-hunt experiences." That sense of discovery is important to customers, Beitelspacher said. Many still like brick-and-mortar stores, she said, "and they want to be wowed." HomeGoods demand HomeGoods has shown steady growth for TJX in recent years. A similar chain, HomeSense, is mean to expand on home decor. Source: TJX annual reports 2013 415 $2.7 billion 2014 450 $3.0 billion 2015 487 $3.4 billion 2016 526 $3.9 billion 2017 579 $4.4 billion Fiscal Store Year count Sales W

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