The Container Store says it plans to open 76 new stores over the next five years, including two locations this year, reports Chain Store Age. The Texas-based retailer says it it is looking to double its sales to $2 billion by fiscal 2027. Currently, the company says it claims only 5% of the $20 billion home storage and organization market, CSA reports.
“This growth coupled with our more productive store base, and disciplined expense management is expected to result in low double-digit operating margins over time as inflationary headwinds abate,” said Satish Malhotra, CEO and president, in a statement with the company’s fourth-quarter earnings.
The Container Store exceeded the $1 billion mark in net sales for the first time in its history in fiscal 2021 (ended April 2), posting $1.1 billion in consolidated net revenues. Net income was $81.7 million, or $1.62 per share, in fiscal 2021 compared to net income of $58.3 million, or $1.17 per share in fiscal 2020.
For the fourth quarter, consolidated net sales were $305.5 million, down 2.9% compared to the fourth quarter of fiscal 2020. (The 53rdweek of fiscal 2020 contributed approximately $17.7 million in net sales and 580 basis points of the decrease when comparing the fourth quarter of fiscal 2021 to the fourth quarter of fiscal 2020.) Compared to the fourth quarter of fiscal 2019, consolidated net sales increased 26.6%.
“We are very pleased with our stronger than expected fourth-quarter performance which capped off the best year of sales and profitability in company history,” said Malhotra.
“Fiscal 2021 was a banner year that we believe has established a solid foundation for growth at The Container Store,” adds Malhotra. "While fiscal 2022 will be a unique year as we contend with a dynamic macro backdrop, we will focus on our strategic initiatives to drive growth and market share gains. We will continue to emphasize the power of organization and demonstrate The Container Store’s leadership within the $20 billion addressable market of home storage and organization.”