Kirkland's key shopper is a female between the age of25 to 55 years old with an above average income. Inorder to reach this key demographic, the retailer ishoping that off-mall stores will be more convenientfor this shopper, according to CEO Robert Alderson.
Kirkland's average store format is 4,500 sf and can besituated in a variety of venues including malls,lifestyle centers, power centers, freestanding stripcenters and outlet centers. For example, inGreenville, SC, Kirkland's relocated its 4,231 sfstore in Haywood Mall to a 5,016 sf freestandingstore. Annual sales jumped from $1.7 million to $1.9million, Alderson points out. On average, non-mallstores bring in $1.4 million in sales annually, whilemall locations bring in $1.3 million.
In 2005, Kirkland's expects to open 55 to 60 newstores and to close 14 non-performing stores, mostlymall-based. The new stores will represent an 11%increase in sf. Similarly, the home décor retailerclosed 14 stores in 2004 and opened 54 stores.
According to Alderson, Kirkland's has "significant,untapped expansion opportunities" and could grow tomore than 1,000 stores nationwide. The retailer hasyet to penetrate the Pacific Northwest includingWashington, Idaho, Wyoming, Montana and North andSouth Dakota. Nonetheless, most of the new stores willbe in states where Kirkland's already has a presence –in particular, Texas, Florida and California.
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