The TJX Cos. has signed a definitive agreement to purchase Trade Secret, an off-price retailer operating 35 stores in Australia, from Gazal Corp. Limited for a purchase price of AUD$80 million or almost $60 million. TJX operates a buying office in Australia, and the acquisition gives it a chance to enter the retail market in the country, the company stated.
TJX noted that it expects to complete the transaction by the end of calendar 2015.
Trade Secret stocks branded apparel footwear, accessories and home fashions, with most stores located in eastern Australia. The retailer opened its first store in 1992 and has grown to AUD$164.5 million, or a bit over $120 million, in revenue for its fiscal year ended June 2015.
Carol Meyrowitz, TJX chairman and CEO said, “We are excited about the anticipated addition of Trade Secret to the TJX family of companies and expanding to another continent, which underscores the strength of our international growth opportunities. TJX is one of the few major U.S. retailers to have expanded successfully in international markets, including Canada and Europe, which gives us confidence in our potential growth in Australia. With consumer demographics similar to Canada, we see Trade Secret as a strong platform to grow in Australia similar to how we entered Canada with our acquisition of Winners in 1990 and grew that business into a leading Canadian retailer. We believe TJX can further develop Trade Secret by leveraging our international leadership experience, buying scale, vendor universe, marketing and other capabilities. We view Trade Secret as a good fit with our own corporate culture and are looking forward to growing this business for the future.”