TJX details cost-cutting measures

Framingham discounter TJX Cos. is cutting $150 million in costs from its budget, including eliminating merit pay raises, offering a voluntary retirement program, and reducing its marketing budget.

TJX, which runs T.J. Maxx, Marshalls, HomeGoods, and other chains, also plans to extend a hiring freeze it implemented last September, tighten travel expenses, and more efficiently manage payroll in stores.

"We are maintaining our flexibility and keeping our options open to take additional actions should the environment force us," TJX chief executive Carol Meyrowitz said today in a conference call.

TJX reported that its fiscal fourth-quarter profit dropped 17 percent to $250.7 million. (To read some Globe coverage of that security breach, please click here.)

In a press release, TJX said: "For the 14-week fourth quarter ended Jan. 31, 2009, net sales were $5.4 billion, flat with last year. Consolidated comparable store sales on a constant currency and 13-week basis decreased 2 percent in the fourth quarter versus a 2 percent increase in the same period last year."

The company plans to open 13 new A.J. Wright stores in 2009 and expand new concepts, including Marshalls Shoe Megashop and StyleSense.
(By Jenn Abelson, Globe staff)