HomeGoods suddenly shuts down e-commerce retail business

HomeGoods suddenly shuts down e-commerce retail business

Just two years after launching its e-commerce retail business, HomeGoods suddenly announced that it would withdraw from the highly competitive e-commerce field and focus on its physical store business.

HomeGoods issued an announcement on October 18, announcing that its online shopping platform will cease operations on October 21. HomeGoods also revealed in the announcement that the company will accelerate the expansion of its physical stores and will soon announce the opening of a series of new stores. Details of the new stores are expected to be announced during parent company TJX's third-quarter earnings report. Currently, HomeGoods has 907 stores.

After HomeGoods ended its online business, TJX was left with two online shopping sites: TJMaxx and Marshells. TJX has repeatedly said its e-commerce retail sales are negligible.

HomeGoods' revenue increased 4% in the second quarter of the fiscal year ended July 29, successfully getting rid of the -7% decline in the first quarter. Additionally, its decline was -13% in the same period last year. The significant increase in customer traffic in physical stores has promoted the growth of sales performance and also made TJX focus more on the operation of physical stores.

HomeGoods expects sales to reach $2 billion this quarter, an increase of 8%. The company is confident in its business development and expects to continue to be profitable.