Now with 188 mall stores and 154 off-mall units, the homefurnishings chain will open 20 off-mall units and will close threeby the end of the year, making the larger, more profitable formatthe larger part of its store count. During the last quarter, thecompany closed opened nine units and closed five.

"We are repositioning our focus from malls to off malls, andwill be expanding in core markets," said Robert Alderson, CEO.Sales in off-mall locations have held up better than in mallstores, he noted.

In all, Kirkland's will open 50 to 55 new stores this year, downfrom the 60 units projected earlier this year, because of delays inshopping center construction. The other openings will take place in2007, Alderson said.

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