This story started in 1978, when two salesmen of Montgomery store Kip Tindell and Garrett Boone, and young architect John Mullen opened a retail store offering an eclectic mix of products devoted to helping people keep in order their household things, save their space and time and finally simplify their lives. It took them only $35 000 of their own and their families’ savings. But they created a completely new category of retailing, that of storage and organization. Then, in 1978, most of the products The Container Store sold came from commercial or industrial manufacturers, and had never been presented in a retail store. But Kip and Garrett found unexpected domestic application for them. Mason's tool bags as overnight bags, egg baskets as carryalls and wire leaf burners as toy barrels were just a few of the original products that debuted in the 1,600 square foot store.
One of The Container Store's core business philosophies is that three good people equal one great person. So, why not hire only great people? The company matches employees' strengths with the needs of the company, focusing on talent rather than titles. CEO Kip Tindell says that the company's greatest challenge is not capital expenditure or finding sites, but attracting and keeping great people who can make the operational model work effectively.
It is a proved fact that The Container Store pays 50% to 100% more than most mass-market retailers. Surely, money is important, but The Container Store tends to create a workplace that gives people something else - a sense of purpose. "We think the employer has a huge moral obligation to make employees want to get out of bed and come to work in the morning," said Kip Tindell. "That's a never-ending job."
The Container Store's salespeople do not work on commission; instead, they are either salaried or paid by the hour with wages far above the retail industry norm. It allows them to spend as much time as necessary to help customers find what they need and they often join in teams to find an original solution for the customer. They even may come to the customer’s house to consult a client just on the spot. The company places so much importance on service that every first-year, full-time salesperson receives about 241 hours of training - in a retail industry where the average is about seven hours.
It was also one of the first chains to realize the value of hiring some of its best customers. The Container Store has a special program for turning customers into employees. The logic is that people who already like the concept are the best folks to operate it. The company also encourages employees to recruit people they feel will make a good fit. Tindell asserts that recruitment is a part of everyone’s job, including all executives and himself: “A soccer game is as good a place to discuss a job at The Container Store as the Dallas headquarters offices”.
The Container Store is known for its unique culture and fun, high-energy work environment. “We're a company that insists on having fun”, - they say about themselves. At The Container Store's headquarters a special Fun Committee builds intimacy among employees through lunchtime activities like silent auctions and an annual Halloween Chili Cook-Off. Retail stores welcome new employees with Foundation Week, a week-long adaptation to company’s products and philosophy, and a welcome box with more than $150 worth of product. At birthday celebrations, people gather for lunch and cake. The most recent birthday honoree is responsible for bringing in a cake for the next birthday person. Stores build community through Private Preview Parties that take place the evening before a new store open. Employees who helped launch the store are the VPs in the community and members of nonprofits organization. On a new store's Grand Opening day, the Chairman of the Container Store pushes the new store manager around on a "Victory Lap" with employees running behind the cart and cheering.
Since the very beginning management has been operating under the belief that a happy workforce will translate into happy customers. Perks for employees include free yoga classes three times a week, on-site dry cleaning and car washes and the full use of the postal and packaging center. The work environment includes a subsidized cafeteria and chair massages once a week. 10 per cent of all employees work from 9 a.m. till 2 p.m. for domestic reasons. The Container Store implemented workforce portal with web-based employee self-service to improve employee communications. Now they have immediate, secure access to view and update personal information, benefit information, direct deposit preferences etc.
Today, 29 years later, 38 company’s stores showcase more than 10 000 innovative products. As a private company, it does not disclose results, but since its inception, the company has grown at an average rate of 20 to 25% a year. The 2005 revenue reached $441 million. The Container Store have been honored at the top-10 of Fortune magazine's list of the "100 Best Companies to Work For” 8 years one after another. The company was selected number 1 on the 2000 and 2001 lists, number 2 on the 2002 and 2003 lists, and in 2007 Fortune named it the 4th best place to work.
Background links:
100 Best Companies to Work For 2007, Fortune Look at statistical data about company’s employees, jobs, salaries and benefits and get to know what makes The Container Store so great according to Fortune.
My Job At The Container Store Employees at the best company to work for in America sell boxes and garbage cans. Fortune One day of a Fortune’s reporter going moonlighting to find out what's so great about The Container Store
Container Store put on market, DallasNews.com
Containerstore.com
