Last year, HomeGoods' parent company birthed a new home decor destination. The first Homesense location opened in August 2017, but according to TJX, there are plenty more where that came from.
This week, TJX CEO Ernie Hermann announced expansion plans during the company's fourth quarter earnings call, and the goal to turn Homesense into a full-fledged chain. (TJX already has a brand called Homesense in Canada and Europe, though it's more on par with U.S. HomeGoods.)
According to trade publication Home Textiles Today, Hermann said that reaction to the four existing U.S. stores has been "terrific" and announced that the goal is to have 400 across the country.
"We see an enormous opportunity for growth," he said. "We believe we are still underpenetrated in home, and we see lots of white space we can move into."
It was back in February 2017 when Hermann first announced the new home store, saying that "the approach will be to differentiate these two home concepts to encourage customers to shop both stores," which is similar to how the company has grown its T.J. Maxx and Marshalls businesses in the United States.
As I noted when I previewed the first U.S. Homesense store in Framingham, Massachusetts, there are more large furniture pieces, an expansive lighting section, and importantly, more of each item (no more finding just one bar stool/end table/throw pillow and wondering how you'll get one or three more).
And people are buying it. According to HTT, TJX exceeded planned earnings in Q4 and rose 16 percent to $11 billion. Four total Homesense locations opened in 2017, and TJX plan to open 15 additional Homesense and 85 more HomeGoods stores across the country in 2018.