Pottery Barn 2014 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 and 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, and seasonal items.
E-COMMERCE OPERATIONS
Prior to the third quarter of fiscal 2014, we referred to the e-commerce channel as the direct-to-customer channel.
As of February 1, 2015, the e-commerce channel had the following merchandising strategies: Williams-Sonoma,
Pottery Barn, Pottery Barn Kids, West Elm, PBteen, Williams-Sonoma Home, 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. and
Australia. Of our merchandising strategies, the Pottery Barn brand and its extensions continue to be the largest
source of revenue in the e-commerce channel. The e-commerce channel complements the retail channel 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 online 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 mailers. Our customer mailings are
continually updated to include new prospects and to eliminate non-responders.
Detailed financial information about the e-commerce channel is found in Note L to our Consolidated Financial
Statements.
RETAIL STORES
As of February 1, 2015, the retail channel had the following merchandising strategies: Williams-Sonoma, Pottery
Barn, Pottery Barn Kids, West Elm and Rejuvenation, operating 601 stores comprised of 562 stores in 44 states,
Washington, D.C., and Puerto Rico, 25 stores in Canada, 13 stores in Australia and 1 store in the United
Kingdom. This represents 243 Williams-Sonoma, 199 Pottery Barn, 85 Pottery Barn Kids, 69 West Elm and 5
Rejuvenation stores.
We also have multi-year franchise agreements with third parties that currently operate 30 franchised stores in a
number of countries in the Middle East and the Philippines. Additionally, in fiscal 2014, we entered into a
franchise agreement with an unaffiliated franchisee to operate stores and e-commerce websites in Mexico,
beginning in 2015. The retail business complements the e-commerce business by building brand awareness and
attracting new customers to our brands. Our retail stores serve as billboards for our brands, which we believe
inspires our customers to shop online and through our catalogs.
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