The Container Store is hurting.
The company’s shares have been crashing on disappointing sales.
“Our average customer doesn’t shop as much as we’d like her to,” Chief Financial Officer Jodi Taylor told Shelly Banjo at The Wall Street Journal.
Executives hope that high-end purchases, such as $US2,000 closets, will save the brand.
The company’s average sale per customer right now is $US60, Banjo writes.
The shelving systems, which are called Elfa, create spaces for accessories, shoes, and “long- and short-hanging garments,” The Container Store writes on its website.
There are similar shelving sets for pantries, home offices, craft rooms, and garages.
Prices range from $US300 for a freestanding closet to $US3,000 for a walnut and platinum master closet system. The company offers an installation service for a fee.
In addition to marketing high-price items, The Container Store is opening more stores.
But analysts stress that selling more expensive products is key to the retailer’s long-term success.
“Analysts estimate the company has an opportunity to grow to 300 U.S. stores in the long term but question the sales potential at each additional location as the company opens new stores in lower income and less dense areas that might not be as profitable as current locations,” Banjo writes.
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