Dive Brief:
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The Container Store on Tuesday named its next CEO, Satish Malhotra, who will take the helm Feb. 1.
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Melissa Reiff, who currently holds the role, will retire from the company March 1. Reiff will continue to serve as board chairwoman until the annual meeting of shareholders in late summer 2021, according to a company press release.
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Malhotra spent 21 years at Sephora where he most recently served as the chief retail and operating officer.
Dive Insight:
Reiff took over the chief executive role from The Container Store co-founder Kip Tindell in 2016 and helped lead a transformation of the business, which has included launching new store concepts and leaning into services like custom closet design.
Reiff's retirement comes at a time of strength for the company. The Container Store has benefitted from the pandemic-driven trend of consumers investing more into their homes.
In its most recent quarter, The Container Store reported net sales in its retail business increased 5.3% year over year to $233 million, while its online sales increased 86.4%. The retailer's net income in the period was $20.2 million, up from $3.6 million a year ago. Reiff said the strong results, specifically in September, coincided with the Netflix release of "Get Organized with The Home Edit."
And the sales momentum appears to be continuing into Q3 with the company saying results are "tracking well ahead of the expectations" the retailer set in October.
"Satish is a seasoned retail executive, with decades of diverse and valuable experience, who I believe will be a great fit for our organization," Reiff said in a statement. "The timing of this leadership transition could not be better, with our company enjoying the success of the multi-year sales and profit revitalization efforts that have driven, and are expected to continue to drive our performance."
Malhotra brings with him experience in retail expansion, overseeing Sephora's entrance into Canada and Latin America, as well as forging partnerships to land the brand in more than 600 J.C. Penney locations. (Sephora recently announced a deal with Kohl's that will eventually replace its partnership with J.C. Penney.)
