Pottery Barn 2012 Annual Report Download - page 18

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PBteen
Launched in 2003, PBteen is the first home concept to focus exclusively on the teen market. The brand offers a
complete line of furniture, bedding, lighting, decorative accents and more for teen bedrooms, dorm rooms, study
spaces and lounges. PBteen’s innovative products are specifically designed to help teens create a comfortable and
stylish room with storage space in mind.
Rejuvenation
Rejuvenation, founded in 1977 with a passion for old buildings, vintage lighting and house parts and great
design, was acquired by Williams-Sonoma, Inc. in 2011. Inspired by history and period authenticity,
Rejuvenation’s lighting and home-goods product lines span periods back to the 1870s. With manufacturing
facilities in Portland, Oregon, Rejuvenation offers a wide assortment of high-quality lights, hardware, furniture
and home décor.
Mark and Graham
Launched in late 2012, Mark and Graham is designed to be a premier destination for personalized gift buying.
Whether customers are shopping for themselves or for family and friends, they have the opportunity to combine
typography and design to make their own unique mark and create something deeply personal. The brand’s
product lines include men’s and women’s accessories, small leather goods, jewelry, entertaining and bar, home
décor, as well as do-it-yourself wrapping supplies and seasonal items.
DIRECT-TO-CUSTOMER OPERATIONS
As of February 3, 2013, the direct-to-customer segment has seven merchandising concepts (Williams-Sonoma,
Pottery Barn, Pottery Barn Kids, PBteen, West Elm, Rejuvenation and Mark and Graham) and sells products
through our seven e-commerce websites (williams-sonoma.com, potterybarn.com, potterybarnkids.com,
pbteen.com, westelm.com, rejuvenation.com and markandgraham.com) and eight direct-mail catalogs (Williams-
Sonoma, Pottery Barn, Pottery Barn Bed and Bath, Pottery Barn Kids, PBteen, West Elm, Rejuvenation and Mark
and Graham). We offer shipping from many of our brands to countries worldwide, while our catalogs reach
customers across the U.S. Of our seven merchandising concepts, the Pottery Barn brand and its extensions continue
to be the major source of revenue in the direct-to-customer segment.
The direct-to-customer business complements the retail business by building brand awareness and acting as an
effective advertising vehicle. In addition, we believe that our direct-mail catalogs and our e-commerce websites
act as a cost-efficient means of testing market acceptance of new products and new brands. Leveraging these
insights and our multi-channel positioning, our marketing efforts, including the circulation of catalogs and the
use of e-commerce advertising, are targeted toward driving sales to all of our channels, including retail.
Consistent with our published privacy policies, we send our catalogs to addresses from our proprietary customer
list, as well as to addresses from lists of other mail order direct marketers, magazines and companies with which
we establish a business relationship. In accordance with prevailing industry practice and our privacy policies, we
may also rent our list to select merchandisers. Our customer mailings are continually updated to include new
prospects and to eliminate non-responders. In addition, we send email communications only to those customers
who have voluntarily provided us with their email addresses.
Detailed financial information about the direct-to-customer segment is found in Note M to our Consolidated
Financial Statements.
RETAIL STORES
As of February 3, 2013, the retail segment has five merchandising concepts (Williams-Sonoma, Pottery Barn,
Pottery Barn Kids, West Elm and Rejuvenation), operating 560 stores in 44 states, Washington, D.C., and
Puerto Rico and 21 stores in Canada. This represents 253 Williams-Sonoma, 192 Pottery Barn, 84 Pottery Barn
Kids, 48 West Elm and 4 Rejuvenation stores.
We also have a multi-year franchise agreement with a third party that currently operates 23 franchised stores in a
number of countries in the Middle East, including Bahrain, the Kingdom of Saudi Arabia, Kuwait and the United
Arab Emirates.
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