West Elm: What do retailers need to know?

Why are we talking about it now?

West Elm made its UK debut on London’s Tottenham Court Road last week with a 12,000 sq ft shop. The opening marked the first UK store for parent Williams-Sonoma, the US furniture giant that has been eyeing openings here for some time.

What is West Elm?

The furniture and homewares retailer was founded in 2002 in New York. It introduced its first catalogue that year and opened its first retail store in 2003.

It now has 57 stores in the US, Canada and Australia and is aimed at the mid-to-premium end of the market. In the 53 weeks to February 3 West Elm’s net revenue jumped from $336m (£205.5m) to $430m (£262.9), and Williams-Sonoma president Laura Alber says it is the group’s fastest-growing brand.

It has a focus on ethical and sustainable goods.

What are its plans for the UK market?

West Elm president Jim Brett told Retail Week the brand is close to securing its second London premises, and that he would eventually seek to open shops in regional centres such as Manchester and Glasgow. A local ecommerce site is set to launch “within the next month”.

Will Williams-Sonoma bring any of its other brands here?

Yes. The group aims to bring its other brands over too, including the famous Pottery Barn fascia, ending years of speculation over whether the brand would make it here or not. Brett said launching Pottery Barn in the UK was a priority for Williams-Sonoma. Pottery Barn operates 192 stores across Canada and the US and its offer is more traditional compared with West Elm’s contemporary proposition. Williams-Sonoma’s other fascias include Pottery Barn Teen, Pottery Barn Kids and Williams-Sonoma.

Is there space in the UK market for a mid-to-premium furniture retailer?

Brett seems to think so. While he conceded that the UK was “competitive”, he believes West Elm will stand out through “exclusive product, the inspiring way we merchandise and world-class service”. The retailer will offer free home styling services, as well as in-store workshops including knife skills classes. Verdict analyst Michael Macdonald says: “There is a gap in the market for a premium homewares and furniture retailer selling classic, contemporary products. “West Elm can fill this gap, taking advantage of the housing market recovery and increased spending.”