U.S. Discount Store Chain TJX Buys Stake in Russian Retailer Familia

U.S. retailer TJX Companies Inc has acquired a 25% stake in Russian low-cost apparel chain Familia for $225 million, the Russian company said in a statement on Tuesday, according to Vedomosti.

As sanctions and falling global prices for oil, Russia’s most important export, dealt a blow to the ruble and consumer spending, discount retailers have flourished in Russia in recent years.

Familia, which has more than 275 locations in Russia selling clothes, shoes, accessories and household goods, enjoyed 24% turnover growth in the first nine months of 2019 compared with the same period of 2018, with like-for-like sales rising 7%.

It said the market has significant potential for further growth.

TJX, the owner of T.J. Maxx and Marshalls stores, has the right to elect one representative to Familia’s board, Familia said, adding that its founders, along with Russian equity fund Baring Vostok and U.S. investment bank Goldman Sachs remained shareholders of the company and were committed to its long-term growth.