TK Maxx has recorded a decline in its full-year profits as it ploughed investment into its IT proposition and bolstered its bricks-and-mortar network.
The clothing and homewares discount retailer posted a 22% drop in pre-tax profit to £87.1m in the year to February 3, 2018.
A statement from the retailer said “staff costs and IT expenses have both increased as the company continues to invest in line with the group’s ambitious growth plans across Europe”.
The retailer’s sales increased 11% year on year to £2.9bn, while like-for-likes were flat.
TK Maxx opened 23 new stores across the UK during the period with no closures, taking its overall bricks-and-mortar estate to 390.
The retailer’s store openings comprised 14 new TK Maxx branches and nine new Homesense stores, taking its total number of outlets under each fascia to 337 and 53 respectively.
The discount retailer also opened a new 1.2m sq ft processing plant in Wakefield during the period, which it said has “significantly increasing processing capacity”.
TK Maxx rolled out a click-and-collect scheme across it UK store estate in the financial year as well as a rewards scheme.