Williams-Sonoma Lowering Prices to Fight Recession
It has been a tough year for Williams-Sonoma. The company laid off 18% off its workforce in January and posted a 22% drop in sales in its first quarter. The Wall Street Journalreports that one of Williams-Sonoma's recession fighting strategies is to lower prices. The retailer has already lowered prices on its store brands and plans to lower prices on bigger-ticket items like furniture at its Pottery Barn stores.
Williams-Sonoma has been introducing lower prices across its store brands, including its namesake outlets as well as Pottery Barn and West Elm. Among the best-selling merchandise, the company said, are inexpensive goods such as pillows.
The San Francisco-based retailer also is lowering prices on bigger-ticket items such as furniture to entice shoppers. The starting price of a sofa at its Pottery Barn stores has dropped to $999 from $1,299. At its value-oriented West Elm stores, it reintroduced the basic futon, furniture that can convert from a sofa to a bed.
Howard Lester, chairman and chief executive of Williams-Sonoma, said on a conference call with investors, "People's homes are still one of their most material assets, and they will invest in them over time. And when they do, our brands will be well-positioned to capitalize on the opportunity."
Home Textilesreports that one bright spot for Williams-Sonoma has been bedding. Laura Alber, president of Williams-Sonoma, said, "We're seeing renewed interest in textiles, particularly bedding. We're seeing this great pillow uptick for a while now ... and we're seeing that spill over into our bedding business and some of these decorative accessory areas where you get a lot of update for your money."
