- Continuing to improve its digital offerings, The Container Store plans to launch a tiered loyalty program at the end of March and a mobile app this spring, Satish Malhotra, CEO of The Container Store, said during a third quarter earnings conference call on February 26. 8.
- The company also said it plans to open at least 100 new stores in the coming years and explore a store-in-store concept, Malhotra said on the earnings call.
- The company has also enhanced its website with a smart filter feature to allow shoppers to browse products based on dimensions. Over the past year, the company has also introduced new payment options for shoppers, including PayPal and a mobile point-of-sale option, Malhotra said on the call.
Overview of the dive:
The Container Store’s focus on its digital features and physical expansion comes as the company tries to find its way through the pandemic. Its third-quarter revenue decreased by 3% last year but were nearly 17% higher than its 2019 sales.
For The Container Store, the soon-to-launch mobile app will serve as a funnel to bring customers into its new loyalty program, which aims to deepen customer engagement, Malhotra said on the earnings call. Technological improvements will remain “a key priority” for the company, he added.
Along with improving its digital operations and adding its physical stores, the company has also recruited several new partners including recently, The Home Edit, Cricut and Blueland. And at the end of last year, the retailer bought Closet Worksa home closet storage and organization company, for $21.5 million and tapped Tom Happ, former co-owner and president of Closet Works, to serve as the brand’s new president.
During the earnings call, Malhotra noted that the company saw growth in its Custom Closets business. The acquisition of Closet Works will strengthen the company’s manufacturing capabilities, expand its operations across the country and broaden its product line, he said.
“We have worked extremely hard to improve the productivity of our existing stores and our e-commerce business while focusing on our growth priorities,” Malhotra said. “We have worked very hard in this first half to enhance our in-store experience through discovery zones and specialist engagements which continue in the second half and we will obviously continue in fiscal year 2022 as well.”