The Container Store

Last updated

The Container Store Group, Inc.
Company type Public
NYSE:  TCS
Industry Retail
FoundedJuly 1978;46 years ago (July 1978) in Dallas, Texas, U.S.
Founders
  • John W. Mullen III
  • Garrett Boone
  • Kip Tindell
Headquarters Coppell, Texas, U.S.
Number of locations
102 (2024) [1]
Key people
Satish Malhotra (CEO)
RevenueDecrease2.svg US$848 million (2023) [1]
Increase Negative.svg US$−105 million (2023) [1]
Increase Negative.svg US$−103 million (2023) [1]
Total assets Decrease2.svg US$936 million (2023) [1]
Total equity Decrease2.svg US$160 million (2023) [1]
Owner Leonard Green & Partners
Number of employees
4,300 (2024) [1]
Website containerstore.com

The Container Store Group, Inc., is an American specialty retail chain which offers storage and organization products, and custom closets.

Contents

History

The Container Store was founded in Dallas by Garrett Boone and John Mullen. With the backing of their families, they inaugurated the first The Container Store on July 1, 1978. The store introduced a new retailing category: home storage and organization. [2] [3] Kip Tindell and his wife joined the founding team the next year.

In 1982, the company switched to a computerized management system, which almost drove the company to the ground. The Houston store opening in 1988 marked the start of the company's booming sales. [4] It opened its first location out of Texas in 1991 in Atlanta, Georgia, [5] its first NY store in 2000, [6] and its first LA store in 2006. [7] In 1999, The Container Store bought one of its main suppliers, Elfa International, a Swedish corporation that specialized in shelving and storage units. [8]

The founders hired by the dozen but realized they also needed a strong company culture to maintain the spirit and attractiveness of their stores. [4] The company started giving 235 hours of training time to its new salespeople, ten times the industry average. [9] By the early 2000s, The Container Store had become a regular recipient of the Best Company to Work For in America award delivered by Fortune . [4] [10]

In July 2007, The Container Store sold a majority stake of the company to the private equity firm based in Los Angeles Leonard Green & Partners. [11] [12] [13] Following the deal, The Container Store announced plans to open 29 more stores in the next five years. [13] 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 Container Store has not kept its promise to investors "to be the category killer of storage containers and home organization." [14]

In 2016, Kip Tindell stepped down as CEO and was replaced by Melissa Reiff. In 2021, Satish Malhotra replaced Melissa Reiff as CEO and president of the company. [15] That year, the company reached the billion-dollar mark in revenue for the first time in its history [16] and acquired Closet Works for $21.5 million. [17] In 2024, Beyond Inc. (formerly Overstock Inc., owner of Bed Bath & Beyond since 2023) invested $40 million in The Container Store in a deal where Bed Bath & Beyond showcase spaces were to be integrated in The Container Store, marking Bed Bath & Beyond's return to physical stores. [18] [16]

Growth

The Container Store in Pasadena, California ContainerStore.jpg
The Container Store in Pasadena, California
YearStoresRevenue

(in million dollars)

199818 [19]
200433 [20]
200638 [7]
201680 [21]
20211 000 [16]
2023848 [16]
2024102 [16]

Governance

CEOs

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References

  1. 1 2 3 4 5 6 7 "Form 10-K for fiscal year ended March 30, 2024". U.S. Securities and Exchange Commission. May 28, 2024.
  2. ↑ Hoover's Inc. fact sheet on The Container Store
  3. ↑ "Container Store's workers huddle up to help you out". USA Today . April 29, 2002. Retrieved October 26, 2009.
  4. 1 2 3 Kline, Laurie (July 1, 2001). "Street Talk : The Secret of their Success". D Magazine. Retrieved November 7, 2024.
  5. ↑ "Getting it together in vogue in the '90s". The Atlanta Journal-Constitution . March 23, 1991. Retrieved October 27, 2009.
  6. ↑ Beller, Peter (September 24, 2000). "The Container Store Opens Its First New York Site". The New York Times . Retrieved October 26, 2009.
  7. 1 2 "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.
  8. ↑ Howell, Arnesa A. (June 5, 2007). "Lessons from a colossal cleanup". CNNMoney.com. Archived from the original on November 7, 2014. Retrieved September 27, 2019.
  9. ↑ Harnish, Verne (December 1, 2002). "The X Factor TO BUILD A BUSINESS THAT DOMINATES, YOU NEED TO DISCOVER AN EDGE THAT PUTS YOUR COMPANY WAY AHEAD OF ITS COMPETITORS". money.cnn.com. Retrieved November 7, 2024.
  10. ↑ "The Container Store". NPR. December 18, 2000. Retrieved November 7, 2024.
  11. ↑ "Container Store put on market: Retailer wants to use equity but preserve workplace culture," The Dallas Morning News/KRT, February 17, 2007 [ dead link ]
  12. ↑ "Container Store Agrees to Partner with Leonard Green". The New York Times . July 3, 2007. Retrieved October 26, 2009.
  13. 1 2 "Container Store says expansion plan on track". The Dallas Morning News . March 7, 2008. Retrieved October 26, 2009.
  14. ↑ Verdon, Joan. "The Container Store Needs To Do A Better Job Of Thinking Outside The Box". Forbes. Retrieved March 23, 2020.
  15. 1 2 "The Container Store Group, Inc. Announces Plan for CEO Succession; Satish Malhotra to be Appointed CEO and President Effective February 1, 2021".
  16. 1 2 3 4 5 Parton, Mitchell (October 22, 2024). "'An act of desperation': Why The Container Store needed a lifeline from Beyond Inc". Modern Retail. Retrieved November 7, 2024.
  17. ↑ Jansen, Caroline (January 4, 2002). "The Container Store acquires Closet Works for $21.5M". Retail Dive. Retrieved November 7, 2024.
  18. ↑ Delesline III, Nate (October 16, 2024). "Beyond to invest $40M in The Container Store". Retail Dive. Retrieved November 7, 2024.
  19. ↑ 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.
  20. ↑ Powers, Vicki (November 1, 2004). "Finding Workers Who Fit". CNNMoney.com. Archived from the original on October 17, 2015. Retrieved September 27, 2019.
  21. ↑ "Store Locations". The Container Store. Retrieved May 20, 2016.
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