Pottery Barn 2013 Annual Report Download - page 18

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 that reflects their own individual aesthetic.
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.
With over 100 monograms and font types to choose from, a Mark & Graham purchase is uniquely personal. The
brand’s product lines include women’s and men’s accessories, small leather goods, jewelry, key item apparel,
paper, entertaining and bar, home décor, as well as seasonal items.
DIRECT-TO-CUSTOMER OPERATIONS
As of February 2, 2014, the direct-to-customer segment has seven merchandising concepts (Williams-Sonoma,
Pottery Barn, Pottery Barn Kids, PBteen, West Elm, Rejuvenation and Mark and Graham) which sell our
products through our e-commerce websites and direct-mail catalogs. We offer shipping from many of our brands
to countries worldwide, while our catalogs reach customers across the U.S., Australia and the United Kingdom.
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 e-commerce websites and our direct-mail catalogs
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 use of e-commerce advertising
and the circulation of catalogs, 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.
Detailed financial information about the direct-to-customer segment is found in Note L to our Consolidated
Financial Statements.
RETAIL STORES
As of February 2, 2014, the retail segment has five merchandising concepts (Williams-Sonoma, Pottery Barn,
Pottery Barn Kids, West Elm and Rejuvenation), operating 585 stores comprised of 554 stores in 44 states,
Washington, D.C., and Puerto Rico, 25 stores in Canada, 5 stores in Australia and 1 store in the United Kingdom.
This represents 248 Williams-Sonoma, 194 Pottery Barn, 81 Pottery Barn Kids, 58 West Elm and 4 Rejuvenation
stores.
We also have a multi-year franchise agreement with a third party that currently operates 27 franchised stores in a
number of countries in the Middle East. Additionally, in 2013, we entered into a multi-year franchise agreement
with a third party which is expected to begin operating stores in the Philippines in 2014.
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