Williams-Sonoma Boosts E-commerce, Plans Store Closures and Subscription Services
Williams-Sonoma, the US-based home furnishing retailer, has reported a strong quarter and full year, with e-commerce sales surging. The company aims to further boost its online presence through new subscription services and store closures.
Williams-Sonoma's comparable sales grew 2.4% in the quarter, driven by a 14.3% increase in e-commerce net revenue to $1 billion. For the full year, net revenue grew 7.2% to $5.7 billion, with e-commerce revenue jumping 10.9% to $3.1 billion. The company expects net revenue to reach between $5.67 billion and $5.84 billion in fiscal 2019.
The retailer is also focusing on optimizing its supply chain operations and improving delivery times. It plans to close 30 stores by the end of the fiscal year, bringing the total to 595. This move is part of the company's strategy to shift towards online-exclusive offerings through subscription-based services.
Among its brands, West Elm showed the most promise, with comparable sales soaring 11.1%. The company's founder has announced that the global sales of the West Elm brand could reach nearly $3 billion within the next five years. Pottery Barn's comparable sales fell 0.4% due to a softer gift business in December, while Williams Sonoma brand's comps rose 0.1%, and Pottery Barn Kids and Teen grew 1.6%.
Williams-Sonoma's strong quarter and full-year results, coupled with its strategic plans to enhance its online presence and optimize operations, indicate a positive outlook for the company. The closure of underperforming stores and the expansion of successful brands like West Elm are expected to drive further growth in the coming years.
