Photo by Artem Gavrysh on Unsplash

Williams-Sonoma, Inc. (WSM) is a multi-channel retailer of high-quality home products and furnishings.

Founded in 1956, Williams-Sonoma is now a $10 billion (by market cap) retail beast that employs more than 16,000 people.

The company’s reporting segments break down by brand: Pottery Barn, 37% of FY 2020 sales; West Elm, 25%; Williams Sonoma, 18%; Pottery Barn Kids and Teen, 15%. Other, which includes international franchise operations, accounted for 4%.

Almost all of the company’s sales are US-based.

In my opinion, today’s retailer needs two things to thrive.

First, they must properly implement and communicate differentiation.

Second, they must have a successful, cohesive omnichannel strategy.

Regarding the first point, Williams-Sonoma does this through unique brands within a niche space.

They’re not trying to be all things to all people.

Instead, they provide attractive home furnishings that still offer a great value proposition relative to the quality.

Regarding the second point, Williams-Sonoma has been, perhaps, better than any other retailer on the omnichannel front.

Here’s what the company has to say about this in their most recent annual report: “Our e-commerce channel has been our fastest growing business over the last several years and represented more than 70% of our net revenues and profits in fiscal 2020.”

By the way, this isn’t new. It’s not a pandemic story. Williams-Sonoma has clocked in 50%+ of sales through e-commerce for years.

Simultaneously, they showcase their products in beautiful retail stores that convey a sense of attainable luxury.

With the sharp rise in the work-from-home trend playing out, and with home renovations being all the rage, Williams-Sonoma has found their planning and hard work over the years paying off even more than usual.

But make no mistake about it.

Williams-Sonoma, because of the two points I touched on, has been thriving for a long time. And I think they’ll continue thriving for a long time to come.

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