The Container Store announced a partnership with TCS Closets and will soon offer the customized cabinetry solution to its customers. During a quarterly call with analysts, CEO Kip Tindell explained the average TCS Closets ticket will likely total more than $2,000, a big jump from the retailer's current average sale of $60.
The Container Store reported a 5.2 percent rise in revenue to $193.2 million for the quarter. At the same time, as same store sales were down 0.4 percent, Tindell announced that he was excited about new store growth and three more openings coming later this year, according to a Seeking Alpha transcript.
With a 12 percent minimum annual growth target, The Container Store is among the fastest growers by square footage in retail.
"We are very encouraged by the prospects of our three major initiatives to help increase traffic and average ticket; POP!, Contained Home and TCS Closets," said Tindell. "TCS Closets is in fact without a doubt the most significant merchandising initiative in our history, leveraging our core competency of high service sales of exclusive solutions based component products and systems."
The goal of the three programs is to drive traffic and raise the average ticket price.
The TCS Closets pilot will launch in seven stores in the Dallas/Fort Worth Metroplex beginning in November. The nationwide rollout will be the end of 2015.
Based on the current success of the Contained Home installation services, Melissa Reiff, president and COO, The Container Store, estimated that the average ticket for TCS Closets will exceed $2,000. "Therefore, we do believe TCS Closets will contribute meaningfully to comparable store sales increases in the longer term," she said.
In summer, The Container Store introduced the POP! rewards program, which offers special communication, exclusive offers and light gifts to member shoppers.
The retailer also made headlines earlier this year when it launched the Employee First Fund to provide grants to employees experiencing unforeseen emergencies, a major medical situation, a catastrophic event or other challenges in life which they are not financially prepared to handle.
-See this Seeking Alpha transcript
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