TJX Expands into Mexico

Joint venture with Grupo Axo will close later this year.

License Global

June 17, 2024

2 Min Read
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The TJX Companies, an off-price apparel and home fashions retailer in the U.S. and worldwide, has announced an agreement for a joint venture with Grupo Axo (Axo), an operator of global brands in Mexico and South America that includes full- and off-price formats.

Under the terms of the 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 over 200 stores for its Promoda, Reduced and Urban Store banners. The proposed transaction, which is expected to close later this year, is subject to applicable antitrust clearance in Mexico and other customary closing conditions. The financial terms would be announced after closing.

“As the world’s retail leader in off-price apparel and home fashions, we are excited about the opportunity to expand to Mexico through our partnership with Axo, and grow and enhance that country’s leading off-price retailer,” says Ernie Herrman, chief executive officer, president, The TJX Companies. “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.”

“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,” says Andrés Gómez, co-founder, chairman, chief executive officer, Axo. “We are thrilled to have the opportunity to work with them to reimagine the off-price retail experience in Mexico.”

TJX does not anticipate this proposed transaction having a material impact on its previously communicated sales, profit or earnings per share guidance for its current fiscal year 2025.

Axo is a leading 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.

BofA Securities is acting as financial advisor and Ropes & Gray is providing legal counsel to the company in connection with this transaction.

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