Kirkland’s, the home goods retailer, announced the closure of several of its stores located across the United States as part of a strategic restructuring of the company. If you regularly visit these stores, here are all the details about the closures.
Why is Kirkland’s closing its stores?
The company warned of an approximate 0.6% decline in consolidated comparable sales. Regarding e-commerce, it experienced a 7.9% year-over-year reduction, and the projected net income for the fourth quarter is around $7.9 million, reflecting a 22% decrease.
As a result, they are implementing significant changes in their stores, as well as in their e-commerce operations and brand distribution, with the aim of achieving greater profitability. In this context, stores with underperforming results will be closed.
As part of their strategy to optimize or close underperforming locations, Kirkland’s plans to intensify its focus on product assortment to boost profitability during the lease period. The company also stated that it will close certain locations to ensure its real estate investments align with its new criteria.
Additionally, according to the plan, lower turnover products will be moved to physical stores to improve online shopping options and in-store pickup. The company also mentioned that it has commitments with its suppliers to drive product development and sourcing, which will allow it to offer selected Kirkland’s Home items for each of its brands across omnichannel platforms.
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How many stores will Kirkland’s close?
The company indicated that the closure will include 6% of the stores currently showing low performance. Kirkland’s currently operates 317 locations across 35 U.S. states, meaning that, based on the mentioned percentage, about 19 stores could be affected. So far, the company has not disclosed the specific locations or states where the stores will close.
Kirkland’s partners with Beyond Inc.
The company announced that it recently formed a partnership with Beyond Inc., which will invest $25 million in the firm, allowing for improvements to the e-commerce experience and the elimination of SKUs that do not meet the standards.
“We believe that an omnichannel retail strategy focused on customer experience is key to building brand health, maximizing customer lifetime value, and driving sustainable, profitable growth,” said Amy Sullivan, CEO of Kirkland’s, in a statement.
Kirkland’s will open Bed Bath & Beyond stores
In the statement issued by the brand, it was detailed that the partnership with Beyond Inc. includes a pilot opening of up to five small-format Bed Bath & Beyond stores.
The company also plans to expand the distribution of private label brands across its omnichannel platforms. Its goal is to position its Home brand as the exclusive private label option for essential products and everyday décor in Bed Bath & Beyond stores. Additionally, it is evaluating opportunities to increase the online distribution of furniture, outdoor items, and rugs.
Kirkland’s return policy
The fastest and easiest way to return your items is by taking them to one of the stores. For this, you need to have your order confirmation email as well as the purchase receipt. The return policy includes the following rules:
- Returns can be made up to 30 days after the purchase date, and the refund will be issued to the original payment method.
- Refunds are processed within 14 days of receiving the return at the distribution center.
- Items must be returned in the same condition they were purchased.
- If the customer does not have proof of purchase, the return will not be accepted.
- Shipping fees for online orders are non-refundable.
- A 10% return shipping fee may apply to items returned directly to the distribution center.
