| Williams-Sonoma Dropping Prices As Consumers Buy Basics |
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Wall Street Journal, Thursday, June 4, 2009, 10:33 AM
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Hard hit by consumers unwilling to splurge on home furnishings, Williams-Sonoma is going to start pushing lower-priced goods in its direct-to-consumers and retail outlets such as its namesake unit, Pottery Barn, and West Elm. Sales were off 22% in the first quarter as shoppers gravitated to inexpensive products such as pillows, Elizabeth Holmes reports.
The retailer has been introducing lower prices across its store brands, both at retail and in the catalog and Internet channels, where it does 40% of its business. The starting price of a Pottery Barn sofa, for example, has dropped from $1,299 to $999. It is also cutting back on the size of its catalogs and the number of copies it distributes.
"People's homes are still one of their most material assets, and they will invest in them over time," says Howard Lester, Williams-Sonoma chairman and CEO. "And when they do, our brands will be well-positioned to capitalize on the opportunity."
Read the whole story at Wall Street Journal.
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