TK Maxx, the off-price retailer, has doubled its investment in its Christmas advertising campaign, which will see it return to TV for the first time since spring 2008.
The retailer is understood to be investing about £3m in the campaign, which is due to launch in November and will be supported by print and digital advertising. The creative work has been produced by the in-house creative agency at European parent company TJX Europe.
The retailer spent £1.4m on TV advertising in 2008, according to research firm Nielsen, but in the past two years it has focused on print campaigns, with a spend rising to £2.4m last year. However, it became involved in its first advertising-funded TV programming earlier this year through Channel 4’s Frock Me with TK Maxx, presented by Alexa Chung.
At its recent results presentation, US parent company TJX Companies’ president and chief executive Carol Meyrowitz told analysts the company expected that increased marketing in both the US and Europe over the Christmas period would lead to an improved financial performance in the second half of the year.
The UK and Republic of Ireland arm of the business was blamed for the poor performance of the European division in the 13 weeks to July 31. “Minor growing pains” from the UK and Irish business, including the “delayed transition” to spring 10 product, led to a slowdown in UK sales, the company reported.
Profits at TJX Europe slumped 76% to $8m (£5.1m) in the 26 weeks to July 31, with second quarter profits, for the last 13 weeks of the period, dropping from $24.7m (£15.8m) to $2.1m (£1.3m).