TJX Companies finalises Trade Secret acquisition and enters Australia steadily
By Angela Gonzalez-Rodriguez
Oct 26, 2015
The American leading off-price retailer of apparel and home fashions announced over the weekend that it has completed its acquisition of Trade Secret, an off-price retailer that operates 35 stores in Australia.
The TJX Companies, Inc. (NYSE:TJX), has bought the Australian retailer from Gazal Corporation Limited (ASX: GZL) for a purchase price of 80 million Australian dollars, subject to customary post-closing adjustments.
Carol Meyrowitz, Chairman and Chief Executive Officer of The TJX Companies, Inc., stated, “We are very pleased to add Trade Secret to the TJX family of companies, which fits directly into our clear vision for continued global growth. Trade Secret’s business is closely aligned with ours, and this acquisition provides us with immediate scale and first-mover advantages in Australia.”
Meyrowitz further stressed the timely opportunity to enter the Aussie market, highlighting that “We believe that, similar to our successful expansion in Canada, which started with our acquisition of Winners in 1990, we can further develop Trade Secret by leveraging our off-price leadership experience, global buying scale, vendor universe, marketing, and other capabilities. As one of the few major U.S. retailers to have expanded profitably in international markets, including Canada and Europe, we are very confident in our potential to grow successfully in our third continent and eighth country. We are delighted to welcome Trade Secret and its organisation to TJX.”
Trade Secret offers branded apparel for women, men and children, as well as footwear, accessories and home fashions at great values. Trade Secret stores are located in Queensland, New South Wales, Victoria, and the Capital Territory. Trade Secret opened its first store in 1992 and since then, has grown to over 160 million Australian dollars in revenue for its fiscal year ended June 2015.