Williams-Sonoma Sees Permanent Change in Consumer Behavior

Jennifer Negley -- Gifts and Dec, 6/17/2010 1:52:00 PM

New York — Williams-Sonoma Inc. believes the recession has recalibrated consumer attitudes about how they shop, and the company is repositioning the pricing of key merchandise categories and items.

"Above all, we believe the consumer's focus on price and value will endure long after the economy begins to recover," executive vice president and chief marketing officer Pat Connolly told attendees at the William Blair 30th Annual Growth Stock Conference.

The company continues to work on reducing store costs, a plan that will entail shuttering some units, renegotiating leases on others and experimenting with smaller stores, he said.

The Pottery Barn nameplate is driving traffic through opening price point goods, and its West Elm brand is expanding opening price points along with its assortment of non-furniture product.

Connolly said the country is in "a reset economy that may not fully recover for three to five years."