TJ Maxx CEO says company could benefit from Trumps proposed tariffs

Retailers and industry trade groups are sounding the alarm about how President-elect Trump’s proposed tariffs could lead to higher prices.However, officials from TJ Maxx’s parent company have a different take, saying the discount retailer may actually benefit. TJX Companies Inc.

CEO Ernie Herrman said on an earnings call with analysts on Wednesday that when there is “chaos” in the market, it usually presents an “opportunity for us.”His comment was in reference to a question about whether tariffs could provide any benefit to the off-price department store’s business model. TJX Companies, Inc.also owns Marshalls, HomeGoods, HomeSense and Sierra. Under the proposals, a universal 10%-20% tariff could be imposed on imports from all foreign countries and an additional 60%-100% tariff could be imposed on imports specifically from China. “Manufacturers could bring in goods early,” Herrman said.

“That could create actually even additional availability of goods at advantageous prices for us because we can take advantage of that opportunistically.” Herrman declined to speculate on what will happen but said that if tariffs are implemented, the company is “set up to ensure that we maintain our value gap” between its competitors.No matter what happens with tariffs, the company will ensure its “values are proportionately below them as they always have been.” Herrman said. If a brand faces tariffs on a certain category, forcing them to raise prices, and those higher prices are passed on to other retailers, the price of that specific item could increase slightly, according to Herrman.

However, he said, “it will never be at any issue with the value gap that we have relative to the competition.”The comments come on the heels of Walmart CFO John David Rainey’s remarks that the proposed tariffs could lead to higher prices for its shoppers. “Tariffs are going to be inflationary.There’s no disputing that,” Rainey said during an int...