TJX Cos. said Friday it bought discount Internet retailer Sierra Trading Post for $200 million, a deal that is expected to help the Framingham company launch e-commerce sites for its T.J. Maxx, Marshalls, and HomeGoods chains.
Privately held Sierra Trading Post, based in Cheyenne, Wyo., was founded in 1999. It has about 700 employees and annual revenue of roughly $200 million through sales of apparel, footwear, and home furnishings.
The takeover comes several years after TJX shut its US retail e-commerce business and just months after the merchant disclosed plans to return to the space with a substantial investment in online retailing.
“We continue to plan on launching e-commerce sites for TJX brands, and this acquisition adds immediate scale, capabilities, and infrastructure in e-commerce, which we can leverage in that regard,” Carol Meyrowitz, TJX’s chief executive, said in a statement. “We believe we will be able to build upon this platform as we continue to develop our e-commerce strategy.”
As part of the cash deal, TJX acquired Sierra’s office, distribution center, and photography studios in Cheyenne; its customer call centers in Cheyenne and Cody, Wyo.; and four outlet stores in Idaho, Nevada, and Wyoming.
Meyrowitz also said the two companies have much in common.
“As we do, Sierra offers branded apparel, footwear, and home furnishings at great values, has a very loyal customer base, strong vendor relationships, and operates with a low cost structure,” she said. “The addition of Sierra Trading Post further strengthens our opportunities for growth, and we welcome its management team and organization to the TJX family of companies.”
TJX is the country’s leading discount retailer for clothing and home fashions. Its roster of stores includes 1,039 T.J. Maxx, 912 Marshalls, and 417 HomeGoods locations.