Williams-Sonoma Plans to Continue Closing Select Stores
The Wall Street Journalreports that Williams-Sonoma plans to continue to close stores, particularly in markets where it has more than one store. The company is focusing on stores that have leases coming up for expiration. As the leases come up for renewal, Williams-Sonoma will either negotiate for a better lease or close the store.
"Our strategy for store closings is to optimize our cost per square foot," she said during a conference hosted by Bank of America/Merrill Lynch. "The goal is not closing stores per se."
Over the next three years, 25% of the leases on the stores in the company's stable of brands, including Pottery Barn home furnishings stores and Williams-Sonoma kitchen stores, will be coming to an end. Williams-Sonoma sees that as a major opportunity to negotiate more favorable lease costs or terms or to relocate or close stores entirely, executives said. That should help it return to historical levels of profitability for its retail stores, McCollam said.
Williams-Sonoma cut jobs and a distribution center last year. They also closed some stores. The retailer also lowered prices last year as it battled the recession.
The Wall Street Journal 
