Williams-Sonoma

Williams-Sonoma

Williams-Sonoma

1. If the Williams Sonoma continues with its present strategies and objectives. Where will it be in 5 years?

Williams-Sonoma (WSM) 5 years plan includes to be a specialty retailer of products for the home. The company's products will be 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 accessories for bed and bath. (Jeff Franks 2007)

In early 1999, the company launched both its Williams-Sonoma Internet wedding and gift registry web site and its Williams-Sonoma e-commerce site. Later that year, the company launched a separate Pottery Barn Kids catalog to offer well-made, stylish children's furniture and decorative accessories. (Pottery Barn Kids was one of the first concepts to market in what is expected to be a major growth segment during the next decade, as birthrates in the United States. are expected to surpass rates achieved at any time in the past 30 years. Birthrates among older women are soaring, and older moms tend to be wealthier and more willing to splurge on their children.) Pottery Barn Kids stores were opened adjacent to Pottery Barn stores across the United States, and by September 2004, there were 78 stores. Edward Mueller, Williams-Sonoma CEO, expected Pottery Barn Kids to be the primary growth vehicle for the company over the next several years.

2. If you were the CEO of William Sonoma. What strategies would you recommend and why?

Williams-Sonoma is working towards restoring its brand after the dismal performance of its largest brand, Pottery Barn, in the fourth quarter of fiscal ...