Cost Plus Shutting Stores after Holiday Sales Dip
January 12, 2009
Oakland, Calif.-based Cost Plus World Market will shut 26 of its 296 stores after same-store sales dropped 6.6 percent during the nine-week holiday period. Sales during the period totaled $278.8 million, down from $291.6 million a year earlier.
In addition to shutting 26 stores and exiting eight markets, the company is reducing its home office and distribution staff by 18 percent. The changes are expected to save $21 million annually.
President and CEO Barry Feld said, "While we continued to experience positive foot traffic trends in December, we were disappointed with our holiday sales results and larger-than-anticipated markdowns resulting from the tough economic climate and exceptionally poor weather conditions in certain geographic areas."
The company also announced that Executive Vice President of Store Operations Michael Allen has left the company.
In addition to shutting 26 stores and exiting eight markets, the company is reducing its home office and distribution staff by 18 percent. The changes are expected to save $21 million annually.
President and CEO Barry Feld said, "While we continued to experience positive foot traffic trends in December, we were disappointed with our holiday sales results and larger-than-anticipated markdowns resulting from the tough economic climate and exceptionally poor weather conditions in certain geographic areas."
The company also announced that Executive Vice President of Store Operations Michael Allen has left the company.
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