TJ Maxx 2009 Annual Report Download - page 8

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great values through to our customers while
maintaining strong protability. We focus
aggressively on expenses throughout the
operations of our business and our advertis-
ing expenses as a percent of sales are very low
relative to other retailers. Overall, our selling,
general and administrative expenses as a per-
centage of sales have remained essentially even
over the last four years despite rising health-
care and other costs.
In 2009, we undertook a series of actions
to reduce costs by more than $150 million,
which not only helped drive the bottom line,
but also reduced our cost structure in ways
that will benet our business longer term.
is is another reason for our condence in
our strong prot margins being sustainable.
We continue to see meaningful opportunities
to remove costs from our business and
our expectation is to reduce expenses by
$50 - $75 million in 2010. Our “big rock”
cost savings initiatives include non-merchan-
dise procurement, improving eciencies
at our stores and distribution centers,
employing best practices and further improv-
ing our supply chain.
e cost leverage that we are gaining as
we grow our businesses is another major
factor driving our protable growth. Our
younger businesses continue to move toward
their targeted prot margin potentials. As
they expand their store bases, we gain
We ship a total of 30.8 million items to our stores in an average week. Our
in-store inventories turn an average of about nine times per year, meaning
our customers experience an entirely fresh store about every 40 days!