Cost Plus to close 18 stores, cut work force

OAKLAND, Calif. Cost Plus reported today that it will exiting eight markets to focus on its brand presence in outperforming areas. In addition, the company said it will be closing 18 of its existing stores.

The company said it intends to open 17 new stores over the next 12 months in existing states, confirming its previously announced intent not to increase store count in fiscal 2008.

Cost Plus announced that it will also reduce its corporate work force by approximately 10% through the consolidation of functions and the automation of certain activities. The savings from the reductions, according to the company, will amount to about $8 million beginning in fiscal year 2008.

President and ceo, Barry Feld, commented, “It is extremely difficult to lose valuable employees who have worked so hard to move the company forward, particularly given our already tightly controlled infrastructure. However, the work force reduction and the closure of underperforming stores are necessary to complete the turnaround in the midst of a challenging retail and economic climate. When combined with the progress that has already been achieved in re-merchandising our stores, improving traffic trends in many markets and substantial increases in the units per transaction, these actions help position the company to return to sustainable profitability and future long-term growth.”