NEW YORK–The growth of the Web is transforming Williams-Sonoma’s business—so much so that “the catalog is becoming less relevant,” said Patrick Connolly, chief marketing officer, during a Bank of America retail conference today.
“E-commerce is by far our most profitable business because we’ve been able to leverage the assets of our other channels,” Connolly said. As a result, “Our 2009 capital spending is clearly focused on the Web.”
Researchers project that by 2011, an estimated 14 percent of home furnishings will be purchased online, compared to 8 percent in 2007, Connolly said.
Williams-Sonoma currently spends between $300 million and $350 million a year on catalog marketing. “Can we reduce that number dramatically and reduce lost sales with additional marketing vehicles? We think so,” Connolly said
Regarding the challenging business overall, “short term recovery is not imminent,” Connolly said. As a result, the retailer is playing up the value message by making the aspirational lifestyle more accessible.
For example, Pottery Barn will introduce a new line of sofas that includes one as low as $999 that “we manufactured ourselves and is a value to our customers while protecting margins,” Connolly said.