The Container Stores expects sales declines will worsen resulting in cost-cutting for the Coppell-based organization products retailer that includes job losses in stores and its support center.
Support center jobs, which are located in Coppell, were cut by 15% and store staffing will be reduced by less than 3%, the company said late Thursday. The retailer, which has a total of 5,200 employees, didn’t put a number on the job losses that include eliminating unfilled openings.
CEO Satish Malhotra said the company is taking a full-year “cautious approach given the ongoing macro uncertainty and pressure on our business” so far in the new quarter.
Sales declines will be more pronounced in the first half and still negative in the second half, he said. The outlook comes as other home stores, Bed Bath & Beyond and Tuesday Morning, are holding going-out-of-business sales.
Sales at The Container Store, which operates 97 locations, declined 15% in the first three months of this calendar year.
The retailer swung to a loss in its fiscal fourth quarter and for the full year ended April 1. Annual sales declined 4.3% to $1.05 billion from $1.09 billion the prior year and it posted a net loss of $158.8 million against a profit of $81.7 million.
“Despite these difficult decisions, we have a solid foundation and the right teams in place to make progress towards our long-term goal of $2 billion in sales and low double-digit operating margin,” Malhotra said.
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