Kirkland’s will add BOPUS to all stores by October

The retailer is also targeting Millennial customers through new merchandise and advertising, said Michael B. Cairnes, the company's acting president and CEO, on a conference call with investors.

“We are now piloting BOPUS at 44 stores in three markets,” Cairnes said. “This is a major milestone for the company, and we are encouraged by the early results and customer feedback. BOPUS will differentiate Kirkland's as a true omni-channel retailer for home-decor shoppers, and it will improve profitability as well as drive footsteps into the door.”

Same-store sales declined by 3.9 percent in the second quarter, owing largely to what Cairnes calls a lack of product newness and relevance. To regain that lost ground, Kirkland’s will start shipping seasonal products to stores in a timelier manner and has encouraged buyers to embrace trendier merchandise.

The company’s new-prototype store, in Brentwood, Tenn., is a laboratory for new ideas, Cairnes says. “The objective is to bring along our core customer and at the same time add on a Millennial customer,” he said. “And we are going to reestablish our brand position to be offering more stylish, unique [and] affordable home-decor assets.”

In the second quarter, Kirkland’s opened six stores and closed five, finishing out the quarter with 426 stores, a net year-over-year gain of 20 stores, or roughly 5 percent. The retailer says it plans to open an additional nine stores in the third quarter.

“It's still early, but we continue to be pleased with the 2018 class performance, which is performing well above our comp-store base,” Cairnes said. Kirkland’s closed the second quarter with $35.4 million in cash on hand.