The Container Store Explained

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

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. 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 became a regular recipient of the Best Company to Work For in America award delivered by Fortune.^[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. 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]

Growth

!Year!Stores!Revenue(in million dollars)

1998	18[19]
2004	33[20]
2006	38
2016	80[21]
2021		1 000
2023		848
2024	102

Governance

CEOs

• -2016: Kip Tindell
• 2016-2021: Melissa Reiff
• Since 2021: Satish Malhotra

Notes and References

1. Web site: Form 10-K for fiscal year ended March 30, 2024. U.S. Securities and Exchange Commission. May 28, 2024.
2. http://www.hoovers.com/container-store/--ID__44395--/free-co-factsheet.xhtml Hoover's Inc. fact sheet on The Container Store
3. News: Container Store's workers huddle up to help you out . . Apr 29, 2002 . Oct 26, 2009.
4. Web site: Kline . Laurie . 2001-07-01 . Street Talk : The Secret of their Success . 2024-11-07 . D Magazine . en-US.
5. News: Mar 23, 1991 . Getting it together in vogue in the '90s . Oct 27, 2009 . The Atlanta Journal-Constitution.
6. News: Beller . Peter . Sep 24, 2000 . The Container Store Opens Its First New York Site . Oct 26, 2009 . The New York Times.
7. News: Oct 10, 2006 . Container Store finds right box in Denver . dead . https://web.archive.org/web/20080724061638/http://www.rockymountainnews.com/drmn/other_business/article/0,2777,DRMN_23916_5054649,00.html . 2008-07-24 . 2019-09-27 . Rocky Mountain News.
8. News: Howell . Arnesa A. . June 5, 2007 . Lessons from a colossal cleanup . dead . https://web.archive.org/web/20141107012232/http://money.cnn.com/magazines/business2/business2_archive/2007/06/01/100050981/index.htm . 2014-11-07 . 2019-09-27 . CNNMoney.com.
9. Web site: Harnish . Verne . 2002-12-01 . The X Factor TO BUILD A BUSINESS THAT DOMINATES, YOU NEED TO DISCOVER AN EDGE THAT PUTS YOUR COMPANY WAY AHEAD OF ITS COMPETITORS. . 2024-11-07 . money.cnn.com.
10. News: 2000-12-18 . The Container Store . 2024-11-07 . NPR.
11. http://www.hoovers.com/free/co/news/detail.xhtml?ID=44395&ArticleID=200702171180.3.46_a7e500441a717b5d&source_type%5B%5D=n "Container Store put on market: Retailer wants to use equity but preserve workplace culture,"
12. News: July 3, 2007 . Container Store Agrees to Partner with Leonard Green . Oct 26, 2009 . The New York Times.
13. News: March 7, 2008 . Container Store says expansion plan on track . Oct 26, 2009 . The Dallas Morning News.
14. Web site: The Container Store Needs To Do A Better Job Of Thinking Outside The Box. Verdon. Joan. Forbes. en. 2020-03-23.
15. Web site: The Container Store Group, Inc. Announces Plan for CEO Succession; Satish Malhotra to be Appointed CEO and President Effective February 1, 2021 .
16. Web site: Parton . Mitchell . 2024-10-22 . 'An act of desperation': Why The Container Store needed a lifeline from Beyond Inc. . 2024-11-07 . Modern Retail . en.
17. Web site: Jansen . Caroline . 2002-01-04 . The Container Store acquires Closet Works for $21.5M . 2024-11-07 . Retail Dive . en-US.
18. Web site: Delesline III . Nate . 2024-10-16 . Beyond to invest $40M in The Container Store . 2024-11-07 . Retail Dive . en-US.
19. News: Hays . Constance L. . Dec 23, 1998 . Service Takes a Holiday; These Days the Customer Isn't Always Treated Right . Oct 26, 2009 . The New York Times.
20. News: Powers . Vicki . Nov 1, 2004 . Finding Workers Who Fit . dead . https://web.archive.org/web/20151017150000/http://money.cnn.com/magazines/business2/business2_archive/2004/11/01/8189362/index.htm . 2015-10-17 . 2019-09-27 . CNNMoney.com.
21. Web site: Store Locations . 2016-05-20 . The Container Store.