greenmeanie

Is Williams-Sonoma Going Downscale?

WSM needs to right-size... faster than they want to, or probably can. Yes, there is a market for $50 carrot peelers, but it will be smaller in 2009 and probably even smaller in 2010.

Yes, a very few people will sign-up for their credit card, but most of their core shoppers prefer AMEX and airline perks/miles cards, so don't count on that to save their day. Yes, they will lose tens of thousands of occasional and loyal customers to value-brands like Target and Amazon, and even WMT.

Yes, they can save a few bucks here and there, letting leases run out or closing marginal stores. Unfortunately, they cannot do it deep enough or fast enough.

My bet is they cannot cut costs and reposition pricing fast enough, and are at great peril to join the long lines at the liquidation sales counter.

So, save your money, because you may still get a chance to buy that $50 carrot peeler... at a very big discount.