Customer-based Programs Key for The Container Store

During Monday’s second-quarter financial results conference call, Melissa Reiff, President and COO for The Container Store, couldn’t hide her enthusiasm for a few pivotal customer-based programs that have been implemented.

Reiff discussed three major company initiatives: TCS Closets, POP!, and Contained Home, all of which are designed to drive traffic and average tickets while deepening customer engagement. She called TCS Closets the most significant merchandising initiative in the company’s history.

“So first let’s talk just a second about TCS Closets,” Reiff said, according to a Seeking Alpha meeting transcript. “We are preparing for this pilot launch of TCS Closets. We are just so excited about it. Our new exclusive collection of solid custom-built solutions crafted from the highest quality material with a variety of choices in wood range finishes and extras, including lighting, glass doors, Island, hampers and innovative storage options for shoes, jewelry and hand bags.”

TCS Closets will launch in seven stores in the Dallas/Fort Worth Metroplex beginning in November.

“TCS Closets is planned to rollout to the rest of our stores by the end of 2015,” Reiff said. “We really believe the average ticket on an average master TCS Closets will greatly exceed our day to day $60 average ticket and be much more than the $2,000 average ticket our Contained Home service has experienced to-date. Therefore, we do believe TCS Closets will contribute meaningfully to comparable store sales increases in the longer term.

“Next is I want to talk a second about POP! Our Perfectly Organized Perks customer frequency program. POP! has reached almost 1 million customer enrollments since launching at all stores in July and approximately 50% of our store sales are now associated with our POP! Stars. We are in the enrollment phase of POP! and have enrolled more customers than we had anticipated at this early juncture. As we continue to enroll more and more customers we will be able to further engage and surprise and delight her in a more personalized and targeted way as we enter 2015 and deeper mine our growing data analytics.

“And then we have Contained Home. That’s our in-home customized design and organization service that is currently available in Dallas and Houston and Austin and Manhattan and Los Angeles, and we have plans to rollout in Washington D.C. later this month and in Denver and San Antonio in November. The service is expected to be available in all of our stores by the end of 2015. We are encouraged by the service’s average ticket to-date of $2,000, again much higher than our day-to-day $60 average ticket.”

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