TJ Maxx 2014 Annual Report Download - page 31

Our results may be adversely affected by serious disruptions or catastrophic events.
Unforeseen public health issues, such as pandemics and epidemics, natural or other disasters, such as
hurricanes, tornadoes, floods, earthquakes and other extreme weather and climate conditions, or fires,
explosions and acts of war or terrorism, in any of our markets could disrupt our operations or the operations of
one or more of our vendors or of our supply chain or could severely damage or destroy one or more of our
stores or distribution facilities located in the affected areas. Day-to-day operations, particularly our ability to
receive products from our vendors or transport products to our stores could be adversely affected, or we could
be required to close stores or distribution centers in the affected areas or in areas served by affected distribution
centers for a short or extended period of time. As a result, our business could be adversely affected.
As our business is subject to seasonal influences, a decrease in sales or margins, a severe disruption or other
significant event that impacts the business could have a disproportionately adverse effect on our operating
results if it occurs during the second half of the year.
Our business is subject to seasonal influences; we generally realize higher levels of sales and income in the
second half of the year, which includes the back-to-school and year-end holiday seasons. Any decrease in sales
or margins or any significant adverse event during this period could have a disproportionately adverse effect on
our results of operations.
Damage to our corporate reputation or those of our retail banners could adversely affect our sales and operating
results.
We believe that building the brand reputation of our retail banners is important to our continuing success,
and we work to build relationships with our customers through traditional and social media and other advertising
and promotional activities. These relationships and our reputation is based, in part, on perceptions of subjective
qualities, so incidents involving us, merchandise that we carry or our industry more generally that erode trust or
confidence could adversely affect our reputation and our business, particularly if the incidents result in rapid or
significant adverse publicity or governmental inquiry. Similarly, information about us, our retail banners and the
merchandise we sell, including our licensed or owned brands, publicized through traditional or social media
platforms and similar venues, including blogs, websites, and other forums for Internet-based communications
that allow individuals almost immediate access to a broad audience of consumers and other interested persons,
may adversely affect our reputation and brand, even if the information is unverified or inaccurate. The reputation
of our company and our retail banners may be damaged by adverse events at the corporate level or at our retail
banners. Damage to the reputation of our company and our banners could result in declines in customer loyalty
and sales, affect our vendor relationships, development opportunities and Associate retention and otherwise
adversely affect our business.
Issues with merchandise quality or safety could damage our reputation, sales and financial results.
Various governmental authorities in the jurisdictions where we do business regulate the quality and safety of
the merchandise we sell to consumers. Regulations and standards in this area, including those related to the
U.S. Consumer Product Safety Improvement Act of 2008, state regulations like California’s Proposition 65, and
similar legislation in other countries in which we operate, impose restrictions and requirements on the
merchandise we sell in our stores and through e-commerce. These regulations change from time to time and
new federal, state, provincial or local regulations in the U.S. and other countries that may affect our business are
contemplated and enacted with some regularity. If we or our merchandise vendors are unable to comply with
regulatory requirements on a timely basis or at all, or to adequately monitor new regulations that may apply to
existing or new merchandise categories or in new geographies, significant fines or penalties could be incurred or
we could have to curtail some aspects of our sales or operations, which could have a material adverse effect on
our financial results. We rely on our vendors to provide quality merchandise that complies with applicable
product safety laws and other applicable laws, but they may not comply with their obligations to do so. Although
our arrangements with our vendors frequently provide for indemnification for product liabilities, the vendors may
fail to honor those obligations to an extent we consider sufficient or at all. Issues with the quality and safety of
merchandise, particularly with food, bath and body and children’s products, and issues with the genuineness of
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