Williams-Sonoma Case Study

Managing the Launch of a New Channel

The Challenge

Williams-Sonoma Inc., a financially successful, specialty retailer with two well-established channels, wanted to expand its business via the Internet, a channel with which they had no in-house experience. Prophet was charged with developing and implementing a fully integrated, multi-channel retail strategy that maximized incremental sales, enhanced the brands, provided an Internet testing ground, and had no negative impact to earnings per share (EPS).

Our Solution

Prophet determined the sequence that Williams-Sonoma concepts should be taken online, starting with their bridal registry as a pilot and rolling out to other strategic brands. Prophet developed a business case for expansion including investment requirements and received Board approval, then deployed an onsite team of consultants to serve as the Williams-Sonoma e-Commerce division for two years while hiring and upskilling Williams-Sonoma employees. The Prophet team had wide-ranging responsibility including technology infrastructure, inventory sourcing strategy, distribution management, call center and store associate training, product merchandising, and customer acquisition and retention. Prophet created brand guidelines and achieved internal alignment behind them to ensure integrated communications and cross-channel loyalty.

Results

Williams-Sonoma.com, PotteryBarn.com, and PotteryBarnKids.com were launched on-time and on-budget with no negative impact to EPS. Williams-Sonoma's Internet sales grew over 500% in the first two years; e-commerce revenue today exceeds catalog revenue due to successful multi-channel impact and remains their most profitable channel. Williams-Sonoma's e-commerce capabilities are thriving, and many of the individuals that Prophet helped to source and upskill have moved into broader leadership positions throughout Williams-Sonoma.