Tuesday Morning looking to double stores
January 19, 2004,
Event-based discount retailer Tuesday Morning feels that in view of the favorable value-oriented market, it can double its store base to more than 1,000 stores, up from its year end total of 577.
Small markets — where perhaps the only department store there closed as department-store retailers generally pulled back — are other areas ripe for its format, he added.
Its low-cost operating model can fit it in many destination spots, but "you will never see us on the end cap in a shopping center," Jensen told attendees at SG Cowen's Consumer Conference last week. "We manage our real estate dollar very carefully."
Requiring only $95,000 for fixturing and start up costs, and $135,000 for net inventory, a new store will reap a 70 percent return on investment within a year.
Now with its central distribution center in Dallas — it previously eliminated its 16 regional DCs — it believes its system can support up to 1,000 stores.
With sales and profits divided equally among its three segments — hard home, home decor, which includes rugs, and soft home — the retailer plans to push brand names more.
It also has increased the frequency of store shipments over the past year.