While some approached the pandemic day by day, Williams-Sonoma, Inc., CEO Laura Alber was taking things two weeks at a time.
In those early days, with stores closed, not knowing whether the company would have to shut its distribution centers or be unable to ship internet goods, she made what she now considers one of the most important decisions of her life. The company chose to “bite the bullet,” keep paying its people and get through it together.
CEO of Williams-Sonoma, Inc.
Redefining ‘omniservice’
Store managers weren’t given long-term promises, but they were promised the next two weeks, as well another call at the end of that time, to go over where things were. The anxiety was real, she said, “and I hated that we couldn’t give them a bigger timeframe.”
There were so many unknowns. But in the end, there were so many unexpected benefits, too. Innovation and creativity rose to the forefront. The workforce “started finding ways to support us from home,” said Alber, who joined Colleen Taylor, president, merchant services – U.S., American Express, for a keynote conversation at NRF Retail Converge.
“These are people who work in our stores, who know how to design interiors.” The desire was not to lay them off or furlough them, and then have to “scramble to rehire.”
“We wanted to keep them going. So, they started answering calls and doing virtual design chat, as if you were in the store, and working with our online tools to develop rooms that you could understand and purchase online,” she said.
“What was called ‘omniservices’ took on a whole new life, with these people working from home. I’ll tell you: I never would have expected to be where we are today, and it’s such a lesson in treating people right, and doing good business, and having good business come back to you.”
Staying competitive
Taylor touched on a number of topics with Alber, including competition from others, and what led to the company’s success in the recent season.
“There’s always been a ton of competition,” Alber said. “I can’t remember a year where I didn’t feel like somebody was coming in, disrupting something. The way I see it is, competition makes you better.”
That said, there were three things already in place at Williams-Sonoma, Inc., that stood throughout 2020 and into 2021: product design that was unavailable elsewhere; a digital-first mentality and “very powerful” proprietary ecommerce platform; and strong values.
When the company not only survived but also excelled, Alber said, leadership considered all of the ways they had wanted to reward employees in the past, but couldn’t because of constraints: benefits, pay, awards, etc. The company also focused on its equity action program.
“We’ve always had one, but honestly … we weren’t making enough progress,” she said. “This jumpstarted us. It became such a passion of the whole company. And we’ve improved our representation and our community involvement, and it’s really good for business.”
Making digital personal
Alber spoke about the combination of online and bricks-and-mortar, and the advantages of each one.
The key thing about digital, she said, is “you’ve got to bring it to life.” It’s not enough to show a chair against a white backdrop. Customers don’t just want to see the product; they want to see it in a room —or even in their own room. The company incorporates 3D modeling to help, which customers can use themselves, or with an associate who can make suggestions and affirm choices.
In terms of competing against retailers that are online only, Alber said they’re “good to watch. They have a lot of engineers, as do we.” She also noted that the company is the leading non-pureplay home furnishings retailer.
“We are in the top 25 ecommerce companies — not just home furnishings — in the country. And I think it’s because, from our catalog history, we kept the lifestyle as the lead.”
People crave content and information, she said, especially when it comes to shopping for the home, which can include large and/or expensive items. Most of the company’s brands were started in-house, she said, and though others may try to copy their original designs, “when you get up close to it, it won’t have the dimension of finish,” she said.
“And also, it probably isn’t sustainable. Sustainability in our product is a key attribute, and we’re able to do that because, again, we’re vertically integrated, we have a design team, and we care a lot about how things are made.”
And finally, when it comes to culture, company hallmarks include creating equal opportunities, an environment of respect, promoting innovation, an eye toward conscious capitalism, ownership, and supporting initiatives that employees care about.
“Under the whole thing is our mission,” she said, “which is to improve people’s lives at home, in the communities where we work, and the people that work for us.”
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