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The Container Store to launch mobile app, loyalty program



Dive Brief:

Continuing to improve its digital offerings, The Container Store plans to launch a tier-based loyalty program at the end of March and a mobile app sometime this spring, said Satish Malhotra, CEO of The Container Store, during a Q3 earnings call on Feb. 8.

The company also noted that it plans to open at least 100 new stores in the coming years and explore a shop-in-shop concept, Malhotra said during the earnings call.

The company also enhanced its website with a Smart Filtering feature to let shoppers browse products based on dimensions. Over the past year, the company has also introduced new payment options for shoppers, including PayPal and a mobile point-of-sale option, Malhotra said during the call.


Dive Insight:

The Container Store's focus on its digital features and brick-and-mortar expansion comes as the company tries to find its way during the pandemic. Its third-quarter net sales dipped by 3% last year but were nearly 17% higher than its 2019 sales.


For The Container Store, the soon-to-be-launched mobile app will serve as a funnel to bring customers into its new loyalty program, which aims to deepen customer engagement, Malhotra said during the earnings call. Technology enhancements will remain "a core focus" for the company, he added.


Besides improving its digital operations and adding its physical stores, the company has also enlisted multiple new partners recently including, The Home Edit, Cricut and Blueland. And late last year, the retailer bought Closet Works, a home storage and closet organization company, for $21.5 million and brought on Tom Happ, Closet Works' former co-owner and president, to serve as the brand's new president.


During the earnings call, Malhotra noted that the company saw growth in its Custom Closets business. The acquisition of Closet Works will add to the company's manufacturing capabilities, expand its business across the country and add to its product assortment, he said.


"We worked extremely hard to improve the productivity of our existing stores and e-commerce business while focusing on our growth priorities," Malhotra said. "We worked really hard in that first half of improving our in-store experience through discovery areas and specialist engagements that continues into the second half and we'll obviously continue into fiscal 2022 as well."

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