William's Sonoma
Internet Mini Case #6
Williams-Sonoma
Maryanne M. Rouse
Williams-Sonoma (WSM) was a specialty retailer of products for the home. The company’s products were sold through two channels: the retail channel and the direct-to-customer channel. The retail segment comprised four retail concepts: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, and Hold Everything. The direct-to-customer segment sold though eight retail catalogs: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Bed + Bath, PB Teen, Hold Everything, West Elm, and Williams-Sonoma Home (which incorporated elements from the previously separate Chambers) as well as through four e-commerce sites. The catalogs reached customers throughout the United States, and the four retail businesses operated 522 stores in 42 states and Washington, DC. The retail segment accounted for 58.9% of total sales; the direct-to-customer segment accounted for 41.1% in fiscal 2003.
Charles E. Williams, Director Emeritus of the company in 2003, founded Williams-Sonoma in 1956 to offer high-end culinary and serving equipment in an upscale retail environment. The company entered the direct-to-customer channel in 1972, with the introduction of its flagship catalog, “A Catalog for Cooks,” which marketed the Williams-Sonoma brand. In 1983, the company internally developed the Hold Everything catalog to offer innovative and stylish storage solutions for home and home office. The success of the catalog led to the opening of the first Hold Everything retail store in 1985. In 1986, the company acquired Pottery Barn, at that time a marginally successful retailer and direct-to-customer merchant featuring a large assortment of casual home furnishings and accessories including furniture, lamps and lighting fixtures, rugs, window treatments, linens, dinnerware, and glassware. In 1989, Williams-Sonoma created Chambers, a direct-to-customer merchandiser of high-quality, premium-priced linens, towels, robes, soaps, and
Williams-Sonoma
Maryanne M. Rouse
Williams-Sonoma (WSM) was a specialty retailer of products for the home. The company’s products were sold through two channels: the retail channel and the direct-to-customer channel. The retail segment comprised four retail concepts: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, and Hold Everything. The direct-to-customer segment sold though eight retail catalogs: Williams-Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Bed + Bath, PB Teen, Hold Everything, West Elm, and Williams-Sonoma Home (which incorporated elements from the previously separate Chambers) as well as through four e-commerce sites. The catalogs reached customers throughout the United States, and the four retail businesses operated 522 stores in 42 states and Washington, DC. The retail segment accounted for 58.9% of total sales; the direct-to-customer segment accounted for 41.1% in fiscal 2003.
Charles E. Williams, Director Emeritus of the company in 2003, founded Williams-Sonoma in 1956 to offer high-end culinary and serving equipment in an upscale retail environment. The company entered the direct-to-customer channel in 1972, with the introduction of its flagship catalog, “A Catalog for Cooks,” which marketed the Williams-Sonoma brand. In 1983, the company internally developed the Hold Everything catalog to offer innovative and stylish storage solutions for home and home office. The success of the catalog led to the opening of the first Hold Everything retail store in 1985. In 1986, the company acquired Pottery Barn, at that time a marginally successful retailer and direct-to-customer merchant featuring a large assortment of casual home furnishings and accessories including furniture, lamps and lighting fixtures, rugs, window treatments, linens, dinnerware, and glassware. In 1989, Williams-Sonoma created Chambers, a direct-to-customer merchandiser of high-quality, premium-priced linens, towels, robes, soaps, and