Perhaps you’re in your local shopping plaza for some other reason but decide to stop by one particular apparel store “just to see what they have.”
You know the drill. Pushing clothing hangers along the clearance rack, you think – no, no, no, definitely not, and then, all of a sudden, “Oooh…maybe?”
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Of course you didn’t intend to buy anything, but this is a good deal. And you’re certainly not fooled by this retailer’s clever trick of featuring a higher “Compare At” price on the tag, a practice that inspired a couple of class-action lawsuits the company quietly settled.
As you leave the store, “treasure hunt” find in hand, you’re absolutely positive it will not languish in the back of your closet.
Multiply this experience by millions of shoppers, and it’s no surprise that based on sales, the largest apparel retailer in the U.S. is none other than TJ Maxx and Marshalls owner TJX Companies, according to a 2025 CapitalOne Shopping report.
TJX rules a massive retail empire
U.S. retail brands under the TJX umbrella include TJ Maxx and Marshalls, as well as HomeGoods, Homesense, and Sierra.
With over 56 billion in revenue in FY 2025, TJX (TJX) ranked 15th on the National Retail Federation's Top 100 Retailers 2025 list.
So how has this off-price apparel and home fashion retailer remained a sales juggernaut as its rivals have shuttered locations left and right in the wake of the Covid pandemic?
It boils down to three surprising reasons many people may not be aware of.
1. TJX buys merchandise on a staggering scale
“Product availability has been outstanding,” said TJX CEO Ernie Herrman on the company’s Q2 2026 earnings call. “Our global world-class buying organization of over 1,300 buyers source from an ever-changing universe of over 21,000 vendors across more than 100 countries.”
With this kind of unmatched reach, TJX can buy tons of stuff, constantly.
“We buy from all kinds of vendors: big brand names to boutique, designer labels, as well as up-and-coming labels and exciting gems from around the globe,” the TJX website explains.
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“Unlike other types of retailers that buy seasonally, we have new quality, brand name, and designer merchandise arriving in our stores several times a week.”
Consumers know that TJX acquires overproduced items from manufacturers or unsold pieces from other retailers.
What they may not realize is that its stores also stock made-for-them clothing – these are lower-tier replicas of designer pieces from brands like Tommy Hilfiger. TJ Maxx even carries its own house brands, such as Frou Frou.
Based on customers’ love for the company (Stacker ranked it number 1 in customer satisfaction in 2024), a vast array of vendors plus constantly changing inventory equals a winning shopping experience.
“That’s what makes us so exciting to shop,” the TJX website shared. “We tell our customers, ‘If you love it, grab it!'”
2. TJX wields serious inventory-management clout
Smaller and less financially secure retail competitors often must buy merchandise on credit and ask for concessions, such as markdown allowances and return privileges, in case the items don’t sell, explains Simply Safe Dividends.
Yet retail giant TJX can pay in cash, without concessions, and buy only what suits its needs (for example, partial lot shipments).
With more than 1,300 TJ Maxx stores and 1,200 Marshalls stores in the U.S., TJX has the capacity to buy huge quantities of product and send them precisely where they know shoppers are most likely to snap them up.
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“The company has spent decades building an in-house data analysis system to allow it to optimize its inventory and logistics chains,” reports Simply Safe Dividends.
And if your favorite TJ Maxx or Marshalls is located in an affluent suburb, you’ve won the off-price lottery, says Home and Texture.
“Suburban TJ Maxx and Marshalls locations offer a dramatically different experience….though this isn’t necessarily because these locations receive better merchandise. Instead, the combination of lower foot traffic and larger storage capacity means items remain on the floor longer and in better condition.”
3. The more other apparel retailers fail, the more TJX succeeds
As other retailers’ footprints shrink, more vendors that would have served them have come to rely on TJX instead.
As reported by Supply Chain Dive, analysts with Telsey Advisory Group are particularly impressed with how TJX’s purchasing team capitalizes on competitors’ struggles.
“The training, experience, and tenure of the TJX buying teams are a major competitive advantage,” Telsey Advisory Group said in a December research note.
Related: TJX earnings show shoppers keep flocking to lower-priced outlets
The analysts cited by Supply Chain Dive last year also noted that – incredibly, in the current retail climate – TJX did 30% to 40% more business with most vendors compared to three or four years earlier.
“When a designer or manufacturer overproduces or other stores overbuy, we swoop in, negotiate the best possible price, and pass the savings on,” the TJX website added.
This all serves to maintain TJX’s seemingly unstoppable position: Net sales were up 4% in FY2025 ($56.4 billion) versus FY2024 ($54.2 billion).
Key TJX takeaways:
- TJX sources from 21,000+ vendors in 100+ countries, ensuring constant new inventory.
- Its cash-buying power gives it leverage over competitors who rely on credit.
- Suburban locations often yield the best finds due to larger storage capacity and slower merchandise turnover.
- As competitors shrink, more vendors rely on TJX, fueling continued growth.
