COPPELL, TX - The Container Store Group will launch a new collection of high-end custom cabinets and organizing solutions. The pilot program named TCS Closets will debut in seven stores in the Dallas/Fort Worth, TX, markets starting in November with an expanded roll-out planned for 2015.
“TCS Closets is without a doubt the most significant merchandising initiative in our history, leveraging our core competency of high service sales of exclusive, solutions-based products and systems,” said Kip Tindell, Chairman and CEO.
The Container Store's new organizing systems will feature a variety of woodgrain finishes, as well as lighting, glass doors and accessories to store shoes, jewelry and handbags. The average sales price for a TCS Closets organizing project is expected to exceed $2,000 -- a large jump over The Container Store's current $60 day-to-day average transaction for a variety of items.
An additional initiative offering a $2,000 ticket average is Contained Home (formerly ATHOME), an in-home, custom design and organization service. Currently available in Dallas, Houston, Austin, Manhattan and Los Angeles, plans are in the works to expand to Washington DC in October and Denver in San Antonio in November with availability in all stores by the end of 2015.
“We are encouraged by the prospects of our three major initiatives to help drive deeper engagement with our omni-channel customer and to increase traffic and average ticket — POP! (a customer loyalty program), Contained Home and TCS Closets,” Tindell says.
Second Quarter Financial Results
The Container Store reported a 38.7% increase in net income of $5.1 million compared to $3.7 million for the second quarter of fiscal 2013. Net sales were $193.2 million, up 5.2% compared to the second quarter of fiscal 2013. However, same-store sales for the second quarter were down 0.4% -- the second decrease this year in same-store sales. The company lowered its sales forecasts again this year, causing its share price to take a hit with investors
Have something to say? Share your thoughts with us in the comments below.