TJX Outmaneuvers Tariffs, Maintains Profitability Through Innovative Pricing

In August 2025, TJX, the retail giant behind brands like T.J. Maxx and Marshalls, continues to thrive despite the ongoing trade war. The company has managed to offset the impact of tariffs through its unique pricing approach.

Unlike many retailers, TJX does not dictate prices based on tariffs. Instead, the company focuses on beating competitors' "out-the-door pricing" for each item it sells. Since TJX only directly imports about 10% of its merchandise, the additional costs from tariffs have had a limited effect on the company's bottom line.

TJX's CEO, Ernie Herrman, credits the company's skilled merchandising and allocation teams for its success. The buyers find the best deals from suppliers, while the allocation teams ensure those bargains reach shoppers in the right stores and at the right time. This strategy has served TJX well during previous periods of retail disruption and is now helping the company navigate the current trade war uncertainty.

As other retailers raise prices to offset tariffs, TJX remains committed to its "simple and pure" pricing model, which aims to keep its prices comfortably below the competition. If a particular product becomes too expensive due to tariffs, the company simply chooses not to carry it, rather than passing the costs on to customers.

TJX's innovative approach has allowed the company to maintain strong sales and profitability in the face of the ongoing trade war, making it one of the big winners in the current economic climate.