I share with you my first purchase of a classic long-running stock:
TJX Companies has been under the radar of many investors, with the stock's performance in recent years resembling a home run.
The retailer with over 2,500 TJ MAXX and 900 HomeGoods stores in the USA is known in this country as TK MAXX and is pursuing an extremely successful sales strategy.
What made me buy it was the outstanding business model in which TJX presents the shopping experience as a treasure hunt. High-quality remaining stock from brands such as e.l.f. Beauty, Balenciaga, Bottega Veneta and co. are sold for unbeatable prices - the stock varies from store to store and is changed at regular intervals, encouraging customers to keep an eye out for new treasures every week. This goes down incredibly well with the younger generation in particular, who post the treasures they find on social media, which in turn creates an incentive for other young consumers to check out the TJX stores and make impulse purchases.
The fact that most middle-class customers of LVMH, Kering, Burberry and co. have less money in their wallets but still want to "treat themselves" only strengthens TJX's business.
Added to this are the generous dividend growth rates with a current dividend yield of 1%.
Now I would like to know: Have you guys ever been shopping at a TK MAXX? What were your experiences in the stores? Unfortunately, there is no TK MAXX near me :(
