J.C. Penney Company, Inc. (JCP), Macy’s, Inc. (M): Will These Retail Companies Succeed in Gaining Major Market Share?

A company spreading its wings

The company also plans to add 20 new stores to its existing 324 stores in Canada this year. It is a premier off-price retailer in Canada, and The TJX Companies, Inc. (NYSE:TJX) Canada posted sales revenue of $856 million in the first quarter of 2013 which was an increase of 15% year-over-year.

Major growth opportunities still exist for The TJX Companies, Inc. (NYSE:TJX) in Europe and Canada as the market is not fully saturated. TJX has the potential to open a total of about 700 stores in Europe and 430 stores in Canada in the next few years.

Global e-commerce sales are expected to be $1.3 trillion by 2013, a yearly growth of 18.3%. To tap into this growing market, TJX acquired Sierra Trading Post, Inc., an off-price online retailer, for $200 million in December 2012. Sierra Trading Post, Inc.’s management has great Internet retailing experience.

The TJX Companies, Inc. (NYSE:TJX) has also built a strong e-commerce team of its own. The company plans to use these synergies to launch its own e-commerce website in the second half of 2013. TJX currently has static, information-based websites with about 4 million visitors monthly. The company will be able to tap a majority of these visitors when it launches its e-commerce website.

Conclusion

J.C. Penney Company, Inc. (NYSE:JCP)’s investment into mobile checkout devices failed to have the expected impact, and the company’s revenue decreased significantly. The company is banking on its home goods segment to revive its fortunes. The company is in a revival phase. This stock is a “hold.”

Macy’s has employed the omni-channel strategy profitably. Its free cash flow generation is allowing the company to aggressively pursue its share repurchase program. This stock is a “buy.”

TJX has huge growth potential in Europe and Canada. It is also looking to launch its e-commerce website to leverage online consumers. This stock is a “buy.”

The article Will These Retail Companies Succeed in Gaining Major Market Share? originally appeared on Fool.com is written by Shweta Dubey.

Shweta Dubey has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Shweta is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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