High street discounter TJ Morris has vowed to remain independent, despite private equity’s growing interest in the indie discount sector.

TJ Morris, which trades under the Home Bargains fascia, is owned by the Morris family, with brothers Joe and Tom both on the board.

“We’re a family business,” said operations director Joe Morris, speaking exclusively to The Grocer. “The family is on the senior management team. The plan is to keep it that way.”

Private equity interest in the variety discounters is high. Last month, reports suggested the Edwards family - who own Poundworld - were considering bringing in a private equity investor. Clayton Dubilier & Rice bought “a significant stake” in B&M Retail in December last year, and there has been continued speculation that 99p Stores is looking for private equity backing.

Morris said he understood why private equity investors were interested in variety discounters. “They are mainly regional retailers, so there is potential to grow the businesses,” he said.

TJ Morris was expected to break through the £1bn sales barrier this year, he added. It has grown at around 20% for the past few years and now has 300 stores.

Morris said the company’s long-term goal was to reach 700 stores. Its distribution centre in Liverpool currently has the capacity to serve 350 to 400 stores, but the retailer has received planning permission to build a 700,000 sq ft distribution centre in Amesbury, Wiltshire. This will allow it to open more stores in the south.

Variety discounters would keep on growing, even if the economic climate picked up, he said.

“When shoppers have more money to spend, you’ve got to work harder to make sure they spend that money with you. There will be growth, but it will be harder to maintain profit margins.”

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