The Container Store

Last updated

The Container Store Group, Inc.
Type Public
NYSE:  TCS
Industry Retail
Founded Dallas, Texas (1978)
FounderJohn W. Mullen III, Garrett Boone, and Kip Tindell
Headquarters Coppell, Texas
Number of locations
93 (FY2020) [1]
Key people
Satish Malhotra, (CEO) [2]
RevenueIncrease2.svg US$895.09 million (FY2019) [3]
Increase2.svgUS$51.26 million (FY2019) [3]
Increase2.svgUS$21.68 million (FY2019) [3]
Total assets Decrease2.svgUS$749.4 million (FY2019) [3]
Total equity Increase2.svgUS$248.7 million (FY2019) [3]
Owner Leonard Green & Partners
Number of employees
5,110 (Jan. 2020) [4]
Website www.containerstore.com
The Container Store in Schaumburg, Illinois Containerstore.jpg
The Container Store in Schaumburg, Illinois
The Container Store in Pasadena, California ContainerStore.jpg
The Container Store in Pasadena, California

The Container Store Group, Inc. is an American specialty retail chain company that operates The Container Store, which offers storage and organization products, and custom closets. The company has made Fortune's list of "100 Best Companies to Work For" in each of the past 17 years, through 2016. [5]

Contents

In February 2007, its owners announced that they were "exploring alternatives," including selling the company to private investors, in order to fund future growth. They stated that they would not sell unless they received guarantees that the corporate culture would be preserved. On July 2, 2007, the company announced that they had closed a deal with a private equity firm based in Los Angeles, Leonard Green & Partners, which obtained a majority stake. [6] [7] [8]

History

Garrett Boone and Kip Tindell met while working in the paint department of Montgomery Ward. [9] On July 1, 1978, The Container Store opened in a small, 1,600-square-foot (150 m2), retail space in Dallas. Kip Tindell (Chairman and CEO), Garrett Boone (Chairman Emeritus), and architect John Mullen opened a retail store offering a mix of products devoted to helping people simplify their lives. In doing so, they originated a new category of retailing (storage and organization). Initial cash capital was provided by Garrett, his father, and John Mullen, who were founding directors, officers and shareholders of the company. [10] [11] [12] In 1999, the company bought one of its main suppliers, Elfa International, a Swedish corporation that specialized in shelving and storage units. [13]

The first store location outside Texas opened in Atlanta, Georgia in April 1991. [14] By December 1998, the chain had grown to 18 stores in operation. [15] In October 2000, its first New York metropolitan area store opened. [16] As of November 2004, it had 33 locations, [17] and reached 38 with the opening of the first Los Angeles area location in October 2006. [18]

Following the deal with Leonard Green & Partners, announced in July 2007, the company announced plans to open 29 more stores in the next five years. The first Arkansas location (Little Rock) opened in March 2008, followed by the first Arizona location (Scottsdale) in the summer, and the first Minnesota location (Edina) and second Ohio location (Cincinnati) that fall. [8] [ relevant? ]

In 2013, the retailer was one of the hottest IPOs of 2013. However, according to Forbes , "the Container Store is a far cry from the 300 store potential investors were promised in the IPO." Since 2013, only 30 stores were added, or about 5 per year. The company hasn’t kept its promise to investors "to be the category killer of storage containers and home organization." [19]

As of May 2016, The Container Store had 80 locations, with plans to open several stores in the following months. [20] On May 9, the company announced that Kip Tindell would be stepping down as CEO and would be succeeded by COO and president Melissa Reiff. [21] [22]

On December 22, 2020, The Container Store Group, Inc. announced that retail executive Satish Malhotra would succeed Melissa Reiff as CEO and president on February 1, 2021. Effective March 1, 2021, Reiff retired from the company, while retaining her position as chairwoman of the board of directors until the annual meeting of shareholders in late summer 2021. [2]

See also

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References

  1. "Form 10-K for fiscal year ended March 28, 2020" (PDF). U.S. Securities and Exchange Commission.
  2. 1 2 "The Container Store Group, Inc. Announces Plan for CEO Succession; Satish Malhotra to be Appointed CEO and President Effective February 1, 2021".
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  8. 1 2 "Container Store says expansion plan on track". The Dallas Morning News . March 7, 2008. Retrieved October 26, 2009.
  9. "They Fill A Niche And A Need". The Record (Bergen County). May 5, 2002. Archived from the original on November 2, 2012. Retrieved October 27, 2009.
  10. Hoover's Inc. fact sheet on The Container Store
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  12. Containerstore.com, About Us, Retrieved 2009-10-16
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  14. "Getting it together in vogue in the '90s". The Atlanta Journal-Constitution . March 23, 1991. Retrieved October 27, 2009.
  15. Hays, Constance L. (December 23, 1998). "Service Takes a Holiday; These Days the Customer Isn't Always Treated Right". The New York Times . Retrieved October 26, 2009.
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  18. "Container Store finds right box in Denver". Rocky Mountain News . October 10, 2006. Archived from the original on July 24, 2008. Retrieved September 27, 2019.
  19. Verdon, Joan. "The Container Store Needs To Do A Better Job Of Thinking Outside The Box". Forbes. Retrieved March 23, 2020.
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  21. Wahba, Phil (May 9, 2016). "Why Container Store's Founder and CEO Is Quitting". Fortune. Retrieved May 20, 2016.
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