Framingham, Mass. – The TJX Companies is expanding its reach south of the border through a joint venture with Grupo Axo.
Under the terms of the definitive agreement, TJX would own 49% and Axo would own 51% of the joint venture. The joint venture would comprise what is now Axo’s off-price, physical store business in Mexico, which includes a total of over 200 stores for its Promoda, Reduced, and Urban Store banners.
he proposed transaction is expected to close later this year and is subject to applicable antitrust clearance in Mexico along with other customary closing conditions. TJX said the financial terms would be announced after closing. The transaction is not expected to have a material impact on TJX’s recent sales, profit or earnings per share guidance for the current fiscal year.
Axo is a multi-brand and multi-channel retailer of apparel, fashion accessories, footwear, beauty and personal care product categories, with a brand portfolio of recognized brands sold through more than 6,900 points of sale in department stores and more than 970 boutiques in Mexico, Chile, Peru and Uruguay.
The off-price segment accounted for 23% of Axo’s 2023 sales, which totaled approximately US$13.7 billion.
“With TJX’s decades of experience as an international, off-price retailer, and Axo’s established base of over 200 off-price stores and 30 years of operating experience in Mexico, we see excellent potential to grow in another region and deliver our value proposition to a growing population of fashion- and value-conscious consumers in Mexico,” said Ernie Herrman, CEO and president of The TJX Companies.
Outside of the U.S. market, TJX operates 82 off-price banners in Australia, more than 560 in Canada, more than 700 in Europe.
“We could not have found a better partner for our off-price physical store business than TJX, the leading off-price retailer of apparel and home fashions worldwide. We are thrilled to have the opportunity to work with them to reimagine the off-price retail experience in Mexico,” said Andrés Gómez, co-founder, chairman & CEO of Axo.