Kirkland's to implement store closures as part of restructuring plan
Rewritten Article:
Kirkland's Shakes Things Up: Store Closures, Online Improvements, and Strategic Partnerships
Hold onto your home decor, folks! Kirkland's is shaking things up with some major changes. The beloved retailer announced Tuesday that it plans to update or even shutter about 19 of its stores that are underperforming in terms of profitability.
Kirkland's seems to have its eyes on the future and is embracing technology to enhance its e-commerce experience. It's teaming up with Beyond Inc., with an emphasis on eliminating unprofitable products and improving the margins of its online offerings.
In addition to boosting its e-commerce game, Kirkland's is also planning to expand its private label distribution across its omnichannel brands. The goal is to position its Home brand as the go-to private label assortment for everyday essentials and decor in Bed Bath & Beyond stores. The retailer is also exploring the possibility of expanding e-commerce distribution in areas like furniture, patio, and rugs.
Partnering with Beyond Inc.
Kirkland's and Beyond Inc. first announced their strategic partnership back in October. This partnership includes the potential opening of up to five small-format Bed Bath & Beyond stores within Kirkland's locations. Conversely, Bed Bath & Beyond shop-in-shops might pop up at select Kirkland's stores. As part of this deal, Beyond now owns approximately 40% of Kirkland's outstanding shares of stock.
Refining the Retail Strategy
As part of its plan to improve underperforming stores, Kirkland's will convert some locations to more profitable brands and boost profitability through the lease term. The company also intends to close some stores to ensure its real estate investments align with its newly set standards.
In an effort to enhance buy online, pick up in-store capabilities, Kirkland's will decrease the average unit retail inventory and shift it to physical stores. Through commitments with vendors, the retailer aims to develop and source Kirkland's Home products tailored for each of its omnichannel brands.
Financial Results
On a different note, Kirkland's reported some preliminary financial results for the fourth quarter ended February 1. Anticipated net sales for this period amount to about $148 million. Kirkland's had a consolidated comparable sales decline of around 0.6%, with a 1.6% increase in comparable store growth. E-commerce sales saw a decline of 7.9% compared to last year. The company anticipates net income for Q4 to be approximately $7.9 million, a drop of 22%.
In December, Kirkland's partnership with Beyond enabled the company to retire debt and improve its balance sheet, according to statements made during an earnings call. Bed Bath & Beyond briefly vanished from the retail scene after its former corporate entity filed for bankruptcy nearly two years ago. Beyond's brand portfolio currently also includes Overstock and Zulily.
In the rapidly evolving retail landscape, it's not uncommon to see companies like Kohl's, Jack in the Box, and At Home reevaluating their store footprints and implementing strategic changes to adapt to market conditions. To gain a more comprehensive understanding of Kirkland's strategy and partnership with Beyond Inc., it's recommended to consult recent press releases or financial reports from Kirkland's directly.
- Kirkland's announced it plans to update or close underperforming stores to boost profitability.
- To enhance its e-commerce experience, Kirkland's is partnering with Beyond Inc. to improve online offerings and eliminate unprofitable products.
- The retailer aims to expand its private label distribution across its omnichannel brands, positioning its Home brand as the go-to private label assortment in Bed Bath & Beyond stores.
- Beyond Inc. previously announced a strategic partnership with Kirkland's that could see the opening of Bed Bath & Beyond stores within Kirkland's locations.
- Kirkland's financial results for Q4 showed a decline in e-commerce sales compared to the previous year, with anticipated net income dropping by 22%.
- In an effort to adapt to market conditions, companies like Kohl's, Jack in the Box, and At Home are also reevaluating their store footprints and implementing strategic changes.
