JACKSON, TN-Kirkland’s is shifting its focus away from mall-based units and will have a majority of its stores in off-mall locations by the end of the year, executives said at its second quarter conference call.

Now with 188 mall stores and 154 off-mall units, the home furnishings chain will open 20 off-mall units and will close three by the end of the year, making the larger, more profitable format the larger part of its store count. During the last quarter, the company closed opened nine units and closed five.

“We are repositioning our focus from malls to off malls, and will be expanding in core markets,” said Robert Alderson, CEO. Sales in off-mall locations have held up better than in mall stores, he noted.

In all, Kirkland’s will open 50 to 55 new stores this year, down from the 60 units projected earlier this year, because of delays in shopping center construction. The other openings will take place in 2007, Alderson said.

The shift is part of a turnaround effort that is just getting under way, and should show results in 2007. Other initiatives include refocusing merchandising on three distinct styles–formal, updated and soft–and working on inventory controls to ensure a deep selection in core items.

Net sales for the second quarter ended July 29, 2006, were $91 million, up 4.8% from the second quarter of 2005. Comparable store sales for quarter decreased 9% versus the previous year. The chain posted a net loss of $5.6 million for the quarter compared with a net loss of $5.7 million for the prior-year period.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

 

GlobeSt Net Lease Spring 2024Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.