HomeGoods opens in former Ames site - Ames Department Stores Inc., Brockton, Massachusetts

Discount Store News, Nov 2, 1992 by Jill Lettich

BROCKTON, Mass. -- HomeGoods, the home products specialty division of TJX Cos., opened its fourth store here in a former Ames Department Store.

Averaging 50,000 sq. ft., the concept joins the growing ranks of category killers in the home products market.

TJX originally was the off-price apparel division of the former Zayre discount store company and was spun off as a separate corporation when the discount stores were acquired by Ames. TJX launched Homegoods in May to put to use the many former Ames store locations that TJX was stuck with after Ames declared bankruptcy.

However, industry analysts agree that HomeGoods is a concept that is targeted for growth.

The current four units--here and in Milford, Mass., and in Cincinnati and Florence, Ky.--will be joined by two additional stores slated to open this year. The company is planning a second unit in Cincinnati and a store in Londonderry N.H., that is set to open this month.

The Brockton store was doing brisk business on its opening day offering everything from gourmet foods and party goods to the traditional mix of bed and bath products. Radio ads in the Boston market announced the opening.

HomeGoods utilizes an everyday low pricing strategy and a no-frills merchandising approach. More than 30 departments including artificial flowers and plants, paintings and art, wicker, candles and scents and kitchen appliances are in the store.

Like its sister company, T.J. Maxx, the mix in Brockton was eclectic in areas such as rugs and gifts, where it was obvious the selections were closeouts. However, extensive assortments were available in sheets and towels and even in artificial flowers.

Prices at the store were as varied as the product mix. Needlepoint area rugs were a bargain at $249. In the kitchen area, a novelty cutting board was $10 (about the same price the product was selling for at department stores).

The strip center where HomeGoods is located will also house another TJX division. A Chadwick's of Boston catalog outlet store will open there soon. An F&M deep discount health & beauty care store is also a neighbor.

The Framingham, Mass.-based retailer operates 455 T.J. Maxx stores, 515 Hit or Miss units, the Chadwick's of Boston catalog and the 14 Winners Apparel stores in Canada.

For the 35-week period ended Oct. 3, 1992, sales for the entire company increased to $2 billion, a 14% increase from the same period a year earlier.

According to the company, a turnaround in the performance of Hit or Miss (it reported a 2.6% decrease in sales for 1991) was instrumental is boosting sales for the period and for the month of September.