TJX Eyes 1,800+ Store Openings: A Long Runway for Growth Ahead?

The TJX Companies, Inc. TJX continues to reinforce its position as a key value retailer by delivering a strong proposition that blends brand, fashion, quality and price across the global markets. TJX drives its expansion by increasing its store base in existing and new markets, leveraging its global scale and off-price model to offer fresh, branded merchandise at unmatched value.

On its last earnings call, management highlighted a long-term potential for opening more than 1,800 additional stores across the company’s existing countries and Spain. It further cited that it views TJX’s joint venture in Mexico and investment in the Middle East as having higher growth potential. The company is quite confident that there remains ample quality merchandise to aid its store-expansion targets.

As of the end of second-quarter fiscal 2026 (Aug. 2, 2025), The TJX Companies operated 5,134 stores, increasing the count by 13 new stores and total square footage by 0.3% from the prior quarter. Management notified that it is on track to reach a target of more than 130 net new stores. Simultaneously, TJX views relocations as a major growth opportunity and is making strong progress in relocating stores to sites that provide better shopping environments. Management intends to remodel nearly 500 stores this fiscal year.

Management remains confident of achieving about 3% net unit growth in the next few years. Flexibility across buying, store formats, systems and supply chain helps the company efficiently merchandise stores with a dynamic mix of curated products across diverse price points.

TJX’s Competition in the Store Expansion

Ross Stores, Inc. ROST and Burlington Stores, Inc. BURL are the companies competing with TJX.

Ross Stores has been consistent with the execution of its store expansion plans over the years. In first-quarter fiscal 2025, the company opened 16 Ross Dress for Less and three dd’s DISCOUNTS stores in 14 different states. It has a goal of adding 90 stores in fiscal 2025, including 80 Ross and 10 dd’s DISCOUNTS stores. Ross Stores’ total store count was 2,205 stores as of May 23, 2025. In the long term, Ross Stores expects to expand “Ross Dress for Less” to 2,900 stores and dd’s DISCOUNTS to 700 stores. This represents a 20% increase in potential store growth targets, bringing it to 3,600 stores.

Burlington executes its store-expansion strategy well, with 30 openings, four relocations and three closures in the second quarter of fiscal 2025, resulting in 23 net new stores and a fleet of 1,138 locations at quarter-end. Burlington remains on track for 100 net new stores in fiscal 2025. Combined with the rollout of “Stores 2.0” layouts that enhance conversion and average basket size, the productivity potential of both new and remodeled stores is significant. This engine of unit growth and comp contribution underscores Burlington’s multi-year runway for expansion.

TJX’s Price Performance, Valuation and Estimates

Shares of The TJX Companies have gained 16.6% year to date compared with the industry’s growth of 5.6%.

From a valuation standpoint, TJX trades at a forward price-to-earnings ratio of 29.06X compared with the industry’s average of 31X.

The Zacks Consensus Estimate for TJX’s fiscal 2026 and fiscal 2027 earnings implies year-over-year growth of 7% and 10.3%, respectively. The company’s EPS estimate for fiscal 2026 and fiscal 2027 has moved north in the past 30 days.

TJX stock currently carries a Zacks Rank #3 (Hold). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research