• The Wall Street Journal (subscription required), Wednesday, March 21, 2007 2:21 PM

The "Pottery Barn Look" became a decorating style all its own in the late 1980s, but since then, the home-furnishing field has become crowded with competitors. The chain is no longer considered to be a trendsetter, says JMP Securities analyst Kristine Koerber.

Some of Pottery Barn's challenges are a byproduct of its success and maturation as a retailer, according to industry analysts. It has created new chains of stores, catalogs and Internet sites selling products for children and teenagers. Last year, its parent company--kitchen-related retailer Williams-Sonoma--launched a line targeting living rooms and bedrooms. And the company's West Elm brand began selling lower-price decor with urban flair in 2002.

Williams-Sonoma says the newer brands aren't taking share from older ones, but Stephen Hoch, a marketing professor at the University of Pennsylvania's Wharton School, doesn't buy that. Retail stores may not overlap much, but close to 45% of the company's sales are from catalogs and the Internet. "When it comes right down to it, the catalogs come through the same slot in your front door," he says.

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