The evolution of Promoda? Axo signs alliance with the American TJX

The Mexican clothing store company Axo Group entered into a contract to establish a joint venture with the American The TJX Companieswhich will cover the business of physical units off-price in Mexico, which operates through Multibrand Outlet Stores.

According to the president of the Board of Directors of Axo, Andrés Ignacio Gómez Martínezcould not have found a better partner, as it is a world leader in the off-price clothing and home accessories store segment.

“We are delighted to have the opportunity to work with them to reinvent the off-price shopping experience in Mexico“, he highlighted in a statement sent to the Mexican Stock Exchange (BMV).

Likewise, Andrés Gómez explained that, according to the terms of the agreement, TJX will acquire 49% and Axo will retain 51% of the business, which includes more than 200 stores under Axo’s existing formats: Promoda, Reduced and Urban Store.

And the American company is the leading retailer of clothing and home accessories in the off-price segment in the United States and the world, with more than 4,900 stores in operation in nine countries.

However, the closing of the transaction is subject to closing conditions common for this type of operations, including obtaining government approvals.

Axo sales

Axo Group’s sales in the first quarter increased 12.9% annually, to reach 5,415.0 million pesos, driven by strong performance mainly in the Lifestyle and Athletics & Outdoors segments.

The Lifestyle portion had an increase of 20.8%, which includes merchandise sold through retail, wholesale and e-commerce channels, as well as other income from services, reaching 2,919.6 million pesos.

While total sales of the Off-Price segment, which include sales through retail and e-commerce channels, decreased 1.4% annually during the first quarter of 2024, to 1,298.2 million pesos.

Meanwhile, in Athletics & Outdoors, sales made through retail, wholesale and e-commerce channels increased 12.8%, to reach 1,197.2 million pesos in the first quarter of 2024.

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