Q: TJX now operates over 2,000 stores. What gives the Company confidence that it can continue to grow?

A: The continued excellent performance of our new generations of stores, at both our more established businesses as well as our younger concepts, is the major factor that gives us great confidence in our store roll-out plan. With relatively low cash investments, our new stores typically achieve profitability in year one and outstanding returns that are highly desirable and among the best in the retail industry. Our deep understanding of the retail real estate market and customer demographics aids us in successfully locating our stores near where our customers live, in tight trading areas. In certain regions around the U.S., we have successfully created off-price shopping destinations where we have placed a T.J. Maxx, Marshalls and HomeGoods in very close proximity.

Part of our growth strategy involves injecting newness into our existing businesses in response to the changing tastes of our customers. In 2003, we experimented with larger jewelry and accessories departments at T.J. Maxx and expanded footwear at Marshalls. Based on the success of these prototypes, we plan to begin roll-out of these expanded departments in the upcoming year. We believe these expansions will further differentiate T.J. Maxx and Marshalls and create even more reasons for customers to shop at both concepts.

Our newer divisions are making greater contributions to our top and bottom lines as they grow, and are integral to our long-term growth strategy. In particular, the demographics of the customer segment for our A.J. Wright concept, which we launched in 1998, are enormous and we believe give us the ability to grow this business to a chain of over 1,000 stores in the U.S.

In addition to growing our current businesses, we are constantly seeking new opportunities for our growth well into the future. Our acquisition of Bob’s Stores in 2003 is the most recent example of a seed that we are cultivating now for the future of TJX. Two main reasons we were attracted to Bob’s Stores are its very loyal, largely male customer base and its potential to grow to a chain of over 400 stores nationwide.

Along with all of these reasons, our confidence in our future growth is supported by our long and consistent history of growth through both weak and strong economic and retail environments, having achieved consolidated comparable store sales and profit increases in 24 of the last 26 years.

Finally, we are confident in our growth because our organization, distribution network and sources for product continue to keep pace with the expansion of our retail concepts. Long term, we believe we have the ability to reach over 4,400 stores worldwide with our current portfolio of businesses.