The CEO of Williams-Sonoma on Blending Instinct with Analysis

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Reprint: R1409A Launched in 1956 in California’s emerging wine region, Williams-Sonoma soon moved to San Francisco because so many of its customers lived there. In 1970 the founder created a catalog to serve people around the country—and that was the beginning of the company’s data collection and analysis. Knowing where its catalog customers lived informed decisions about where to locate its stores. As the company grew its brick-and-mortar presence, it also built up its mail-order business, acquiring a garden products catalog, the Hold Everything catalog, and Pottery Barn. In 2000 it launched fully transactional websites for its two leading brands. Today analytics infuses and enhances all areas of the business, from personalized website content for each visiting shopper to shipping and inventory management to extremely high-touch customer care centers. Williams-Sonoma comprises seven brands and has annual revenue approaching $5 billion. It accounts for 4% of all home furnishings sales in the United States, almost half of which come through the web, making it the 21st largest online retailer in the country.

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