TJ Maxx 2015 Annual Report Download - page 31

We modify, update, and replace our systems and infrastructure from time to time, including by adding new
hardware, software and applications; maintaining, updating or replacing legacy programs; converting to global
systems; integrating new service providers and adding enhanced or new functionality, such as for cloud
computing technologies and for the continued operation and development of our e-commerce businesses; and
adding new systems when we acquire new businesses. We also modify and change our procedures for, and add
and change vendors and internal teams who assist us with designing, implementing and maintaining our
systems. Although we believe we are diligent in selecting systems, teams and vendors and implementing
procedures to enable us to maintain the integrity of our systems when we modify them, there are inherent risks
associated with modifying or replacing systems, with new or changed relationships and with changes from
acquisitions, including accurately capturing and maintaining data, efficiently testing and implementing changes
in a timely manner, realizing the expected benefit of the change and managing the potential disruption of the
operation of the systems and diversion to internal teams’ attention as the changes are implemented. Further,
potential issues associated with implementing technology initiatives and the time and resources required to
optimize the benefits of new elements of our systems and its infrastructure could reduce the efficiency of our
operations in the short term. The efficient operation and successful growth of our business depends upon our
information systems, including our ability to operate and maintain them effectively, to select appropriate internal
teams and vendors to maintain or enhance them and to select and implement appropriate new technologies,
systems, controls, hardware, software and applications and adequate disaster recovery systems successfully.
The failure of our information systems and the third party systems we rely on to perform as designed, or our
failure to implement and operate them effectively, could disrupt our business or subject us to liability and thereby
harm our profitability.
Economic conditions, on a global level or in particular markets, may adversely affect our financial performance.
Global financial markets can experience extreme volatility, disruption and credit contraction, which adversely
affect global economic conditions. Turmoil in the financial and credit markets or other changes in economic
conditions could adversely affect sources of liquidity available to us or our costs of capital and could adversely
affect plan asset values and investment performance, and increase our pension liabilities, expenses and funding
requirements with respect to company-sponsored and multiemployer pension plans. Economic conditions, both
on a global level and in particular markets, including unemployment, decreased disposable income and actual
and perceived wealth, energy and health care costs, interest and tax rates and policies, weakness in the housing
market, volatility in capital markets, decreased credit availability, inflation and deflation, as well as political or
other factors beyond our control such as threats or possibilities of war, terrorism, global or national unrest,
actual or threatened epidemics, and political instability may also have significant effects on consumer
confidence and spending. Consumer spending, in turn, affects retail sales. These conditions and factors could
adversely affect discretionary consumer spending and, although we believe our flexible off-price model helps us
react, they may adversely affect our sales, cash flows and results of operations and performance.
Adverse or unseasonable weather in the markets in which our stores operate or along our supply chain could
adversely affect our operating results.
Both adverse and unseasonable weather, such as storms, severe cold or heat or unseasonable
temperatures, affect customers’ buying patterns and willingness to shop certain categories or at all, and
accordingly, can adversely affect the demand for the merchandise in our stores, particularly in apparel and
seasonal merchandise. Weather can also affect the ability to transport merchandise to our stores from our
distribution and shipping centers or elsewhere in our supply chain efficiently or in a timely way. As a result,
adverse or unseasonable weather could adversely affect our sales, increase markdowns and adversely affect our
operating results.
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 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
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