The Container Store is poised for incredible growth.
According to a recent report by Credit Suisse, the retailer, which went public earlier this year, could more than double in worth to $US4 billion.
The specialty home organisation store currently has 63 locations, but will soon expand to 300.
Credit Suisse analysts Gary Balter, Simeon Gutman, and Andrew Kinder cite a few reasons why The Container Store is killing it.
1. Awesome customer service. “Over our close to 30 years covering retailers, there have been a small group that emerged above the fray, companies that put the customer on a pedestal and appreciated that they exist because of the customer and not vice versa,” the analysts write. “We place The Container Store in that group.”
2. Experience can’t be replicated online. “Only (in stores) can one appreciate the level of knowledge that each associate has, the distinct treasure hunt presentation in the stores, the uniqueness of the product offering, and most important, the excitement one feels when shopping in the stores,” according to Credit Suisse. This makes The Container Store nearly immune to online competition.
3. No direct competitors. The company is a unique concept that shoppers can’t find anywhere else, the analysts write. More than 50% of its merchandise is exclusive, “making it a unique retailer in the space.”
4. Associates are valued — and the impact on stores is obvious. Workers receive better pay and benefits than the retail average. “The company is proud of the longevity of its associates, the very low turnover rates compared with other retailers, and the very few employees above store manager ever lost to competitors,” the analysts write.
5. Celebrities love it. “It receives lots of free publicity from Oprah and others, including President Obama, for the uniqueness of its store and more importantly, the way it treats its associates,” Balter, Gutman, and Kinder write.
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