Container Store to open 70-plus stores during next five years
The Container Store is returning to brick-and-mortar growth.
With a goal of doubling its sales to $2 billion by fiscal 2027, the Texas-based retailer of storage and organization products and solutions said it plans to open 76 stores during the next five years, including two locations this year. The Container Store noted that it currently has only 5% of the $20 billion home storage and organization market.
“This growth coupled with our more productive store base, and disciplined expense management is expected to result in low double-digit operating margins over time as inflationary headwinds abate,” said Satish Malhotra, CEO and president, in a statement with the company’s fourth-quarter earnings.
The Container Store exceeded the $1 billion mark in net sales for the first time in its history in fiscal 2021 (ended April 2), posting $1.1 billion in consolidated net revenues. Net income was $81.7 million, or $1.62 per share, in fiscal 2021 compared to net income of $58.3 million, or $1.17 per share in fiscal 2020.
For the fourth quarter, consolidated net sales were $305.5 million, down 2.9% compared to the fourth quarter of fiscal 2020. (The 53rdweek of fiscal 2020 contributed approximately $17.7 million in net sales and 580 basis points of the decrease when comparing the fourth quarter of fiscal 2021 to the fourth quarter of fiscal 2020.) Compared to the fourth quarter of fiscal 2019, consolidated net sales increased 26.6%.
“We are very pleased with our stronger than expected fourth-quarter performance which capped off the best year of sales and profitability in company history,” said Malhotra.
In February, the company launched a new branding campaign, Welcome to The Organization, with a 22% off welcome offer that drove a record-breaking single-day sales, according to Malhotra. I followed up the branding campaign with the launch of a reimagined loyalty program, Organized Insider, and its first mobile app.
“Fiscal 2021 was a banner year that we believe has established a solid foundation for growth at The Container Store,” Malhotra said. While fiscal 2022 will be a unique year as we contend with a dynamic macro backdrop, we will focus on our strategic initiatives to drive growth and market share gains. We will continue to emphasize the power of organization and demonstrate The Container Store’s leadership within the $20 billion addressable market of home storage and organization.”