Williams-Sonoma Home's textiles business is the leading driver of sales—more than furniture, which accounts for 30% of the company sales, according to a report in Home Textiles Today.
“The most profitable aspects of our business are textiles, decorative accessories and pillows,” said Sharon McCollam, EVP, COO and CFO. She explained that once consumers buy furniture, it becomes a piece they build upon, driving future sales back to the brand.
Another driving force for Williams-Sonoma is ecommerce, which currently makes up 30% of corporate revenue. To boost this figure and further fuel its online sales, the company is anteing its marketing tactics with targeted e-mail campaigns and improved system platforms.
“We are thinking more and more like an internet company, and we couldn’t be more excited about it,” Connolly added.
Merchandising is another key focus for Williams-Sonoma in 2010 and beyond. “It’s always about the goods,” said Connolly, adding that as Williams-Sonoma enhances its brands and repositions key items, “the customer is responding.”
Overall, Williams-Sonoma is seeing momentum across every aspect of its business and is optimistic about its future, despite current economic conditions.
“This current recession has created a disruption in the economy and most likely a permanent change in consumer behavior,” Connolly said. “We believe that the consumer’s focus on price and value will endure long after the economy begins to recover.”