The TJX Cos. has entered into a definitive agreement for a joint venture with Grupo Axo, S.A.P.I. de C.V. an operator of global brands in Mexico and South America that includes full- and off-price formats.
TJX announced under the terms of the agreement, the company would own 49% and Axo would own 51% of the joint venture, which will comprise what is now Axo’s off-price, physical store business in Mexico, including more than 200 stores under its Promoda, Reduced and Urban Store banners. The proposed transaction, expected to close later this year, is subject to applicable antitrust clearance in Mexico and other customary closing conditions. TJX noted the financial terms of the deal would be announced after closing.
TJX doesn’t anticipate the proposed transaction having a material impact on its previously communicated sales, profit or earnings-per-share guidance for its current fiscal year 2025.
In announcing the deal, Ernie Herrman, TJX president and CEO, said, “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. 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.”
Axo is a multi-brand and multi-channel retailer of apparel, fashion accessories, footwear, beauty and personal care products. Axo’s brand portfolio covers more than 6,900 points of sale in department stores and more than 970 boutiques in Mexico, Chile, Peru and Uruguay, according to the company.
