The Container Store to test smaller store format

2/7/2017

The nation’s leading home storage products retailer is going to try on a smaller footprint.



The Container Store Group on Tuesday said it plans to open locations in Cleveland; Livingston, New Jersey; and Staten Island, New York, as well as relocate its store in Chestnut Hill, Massachusetts.



The retailer also plans to open a store in Albuquerque, New Mexico, that will be the first of its new mid-size store format. The company said the Albuquerque outpost is part of its “test-and-learn effort to optimize its stores and improve efficiency and productivity.”



“While we believe that new stores are important to our future and that our runway for growth remains strong with only 86 stores, for fiscal 2017, we plan to point a significant portion of our capital allocation toward our existing store remodels and enhancements,” said Melissa Reiff, CEO. “This will allow us to properly support the expansion of our custom closets business, as well as explore new store formats.”



In other news, The Container Store said its consolidated net sales rose 1.7% to $216.4 million for its third quarter, ended December 31, 2016.



Same-store sales for the quarter were down 3.9% with holiday department sales contributing notably to the decline. The company’s TCS Closets business positively contributed 1.3% to third quarter comparable store sales.



“We’re pleased that our ongoing discipline on the expense side enabled us to deliver a 38% increase in earnings per share versus the prior year period,” said Reiff. “Our custom closets business, specifically elfa and TCS Closets, drove incremental sales and profit; however, holiday department sales were disappointing during the quarter.”



The Container Store will unveil key elements of its new long-term strategic plan in June.



“Fundamental to this plan is leveraging our key differentiators and implementing new strategies to achieve top-line sales growth and maximizing the productivity of our stores by aligning our marketing, merchandising, in-store and online experience with the evolving expectations of today’s consumer.”
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