HomeGoods finally has a home online
HomeGoods, founded in 1992 and now with 846 locations, has launched an e-commerce offering for the first time.
“We believe this is something our existing customers have been waiting for, and there’s another way for us to attract new shoppers,” Ernie Herrman, president and CEO at HomeGoods-parent, TJX Cos. said recently on his company’s second-quarter call. “Similar to our other online businesses, HomeGoods.com will be complementary to our physical stores and allow customers to shop our great values 24 hours a day, seven days a week.”
HomeGoods employed “a little tweak” to its e-commerce strategy versus TJX’s other sites, he said. TJMaxx.com and Marshalls.com employ separate buying teams and inventory to ensure a “treasure hunt” in-store experience continues. With extensive SKUs that “turn so fast” in the home category, differentiation is less of a concern for HomeGoods so buyers and inventory are shared.
The coordination supports home customers’ buying needs, Mr. Herrman said. A shopper finding furniture in the store to outfit a room, for instance, may head online to find complementary items.
The home category remains on fire with the benefit of the stay-at-home economy during the pandemic. HomeGoods’ comps jumped 36 percent in the second quarter compared to the same period in 2019.
The home category faces freight challenges selling online given some of its inherently bulky and heavy items, but has seen an accelerated digital shift over the last year.
Whether online selling works for moderate off-price businesses, however, remains debatable. Ross Stores and Burlington Stores don’t offer e-commerce because those businesses believe the treasure hunt experience can’t be replicated online and their average prices aren’t high enough to offset shipping, returns and other online costs.
TJX launched e-commerce in 2013 and it only makes up about three percent of sales, but officials have said e-commerce meets the needs of customers seeking an online option. The order threshold at TJMaxx.com.com and Marshalls.com to qualify for free shipping is also comparatively-high among apparel-focused sites, at $89, and even higher, at $119, for HomeGoods.com.
- HomeGoods Launches Online Store, Giving Consumers Another Way to Shop Exciting Finds – HomeGoods/PRNewswire
- The TJX Companies, Inc. Reports Above-Plan Q2 FY22 Sales And Profit Results; Q2 FY22 Overall Open-Only Comp Store Sales Increased 20% Versus Q2 FY20 – TJX Companies, Inc.
- TJX Cos. Q221 Second Quarter Conference Call – Seeking Alpha
- HomeGoods finally launched its online store — the wait is over – Today.com
- HomeGoods’ new online store launches with decor, bedding, kitchen goods and more – USA Today
- Williams-Sonoma (WSM) Q4 2020 Earnings Call Transcript – The Motley Fool
- Burlington Stores walks away from e-commerce – RetailWire
DISCUSSION QUESTIONS: Does e-commerce make sense for off-price selling in the home category? Do you see a bigger opportunity for TJX with HomeGoods.com than with TJMaxx.com and Marshalls.com?