Over the last few years, the retail sector has faced mounting challenges, including economic uncertainty, shifting consumer habits, and a slowdown in overall spending. These pressures have pushed many companies into survival mode, with declining sales often leading to mass store closures and layoffs.
But while much of the industry is scaling back, TJX Companies (TJX) , the parent company of TJ Maxx, has taken a different course.
Last year, the off-price retail giant revealed plans to expand its global store count by at least 1,300 new locations, marking a 25% increase. Yet, despite that ambitious growth strategy, the company is now pulling back in a key market.
TJ Maxx to close its flagship Boston Store
TJ Maxx will permanently close its massive three-story store at 360 Newbury Street in Boston, Massachusetts, on January 5, 2026, according to a WARN notice filed with the state.
The shutdown will affect 117 employees, but while the workforce is not unionized, the company plans to transfer many impacted workers to nearby stores.
“We are always assessing and reviewing our real estate strategies, and our decision to close this store reflects that thinking,” said a TJMaxx spokesperson in a statement.
This move is surprising, given that TJX has been headquartered in Boston for nearly 50 years. Massachusetts is home to just 25 TJ Maxx locations, and once this iconic store is gone, customers will be left with only two nearby.
TJ Maxx stores nearby
- 8B Allstate Rd, Dorchester, MA 02125 (South Bay Center)
- 350 Washington St, Boston, MA 02109
Image source: Scott Olson/Getty Images
TJX’s global expansion strategy to boost growth
Despite the high-profile closure, TJX continues to grow worldwide. The company operates over 5,100 stores across nine countries under banners including Marshalls, HomeGoods, Homesense, Sierra, and TK Maxx.
All these markets have been incredibly lucrative for TJX. In the second quarter of fiscal 2026, total comparable sales increased 4% year-over-year, with customer transactions up in every division.
Related: TJ Maxx shares good news with its devoted customers
Global expansion is on track
- TJX opened 13 stores globally across all brands, including nine stores in the U.S. alone, increasing total square footage by 0.3% versus the prior quarter.
- The company is on track to open 130 stores for the full fiscal year 2026, with about a 3% net increase in unit openings over the next few years.
- TJX plans to remodel around 500 stores this year and sees relocations as an opportunity to optimize real estate, strengthen brand consistency, and enhance customer experience.
“When the customer comes in, they’re seeing a consistent shopping experience no matter what store they go into. And that’s one of the things that you know, kind of separates us from some of our competition,” said TJX CFO John Klinger in an earnings call.
In the long term, TJX sees the potential for an additional 1,800 stores in its existing markets and in Spain, along with new investments in the Middle East through a joint venture.
Starbucks bets on store remodelings and closures
TJ Maxx isn’t alone in prioritizing store remodeling to drive growth. Starbucks (SBUX) is also leaning into store revamps as part of its “Back to Starbucks” turnaround plan, designed to reverse sales declines and reinforce its coffeehouse identity by returning to its roots.
As part of this initiative, Starbucks launched the “Coffeehouse Uplift” program, in which it will invest about $150,000 per store and remodel 1,000 locations by the end of 2026. To accelerate this program, the coffee chain has slowed new builds and major renovations.
But unlike TJX, Starbucks is shrinking its footprint on a larger scale to manage high restructuring costs as it navigates ongoing declines in sales and traffic.
Starbucks’ store revamp strategy
- In August, Starbucks revealed plans to close all its pickup-only locations, which no longer align with its strategy.
- The coffee giant also plans to reduce its North American footprint by about 1% in fiscal 2025, taking its store count from 18,734 locations in the third quarter to around 18,300 by the end of September.
- Most closures will occur before the year ends, eliminating locations that cannot be remodeled or that have weaker financial performance.
Starbucks has also turned to corporate layoffs to simplify operations and cut costs, eliminating 1,100 roles in February and another 900 in August.
Retail giants favor reinvention over new stores
The recent moves by TJX and Starbucks might signal a new retail trend where growth is no longer defined solely by adding new locations. Instead, companies focus on reinventing themselves by remodeling stores, optimizing real estate, and delivering more personalized customer experiences.
TJX is balancing its expansion approach with selective closures, while Starbucks is scaling back its footprint and reimagining the in-store experience.
Nonetheless, both companies have chosen to shutter landmark stores, with TJX closing its TJ Maxx flagship and Starbucks closing its historic Seattle location in Pike Place.
According to Researchers from Monash University’s Department of Marketing, after a retail store is remodeled, sales to new customers increase by 43% to 44%, and those to existing customers increase by 7% to 10%.
“It might take a couple of years to recoup the outlay, but the encouraging returns shown in the study should prompt managers to view remodeling as a strategic marketing investment rather than a necessity to endure every decade,” said Professor Tracey Danaher.
Related: Starbucks makes changes to win customers back
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