When and Why Did AJ Wright Close? Reasons Lead To Business Closure
Why Did AJ Wright Go Out of Business?
In a free-market economy, businesses rise and fall depending largely on their profitability and the condition of the consumer market. This is especially true of retail stores because they are directly consumer-driven.
Practically speaking, retail stores are often expensive to initiate and even more expensive to maintain.
This was the case with the AJ Wright retail store chain all across the United States.
The premise that birthed AJ Wright was not new. In fact there are many retail chains that have built their businesses on the same premise, and have been quite successful. But for whatever reason, out of all the stores owned by TJX Corporation, AJ Wright was the only chain that lost money. In fact, data shows that the quarterly numbers prior to the announcement of the closings, show revenue at T.J. Maxx and Marshalls as having risen 1%. Home Goods revenue rose 3%. However AJ Wright fell about 2%.
When you consider that this lack of performance likely carried over across an expanse of several years, it is clear as to why this proved to be a huge hit to the TJX Corporation. In December of 2010, TJX made the announcement that they would be eliminating all of their AJ Wright stores by the end of February 2011. Some stores would be converted to T.J. Maxx and Marshalls stores, and some would be closed outright. Over 4,000 AJ Wright jobs were eliminated. While some of the employees were left unemployed, many of them were transferred to existing T.J. Maxx, Marshalls, and Home Goods stores.