Williams-Sonoma maintains 75% capital expenditure to ensure e-commerce leadership

Williams-Sonoma, which is pursuing a digital-first channel strategy, will spend $225 million on capital expenditures. Williams-Sonoma will retain 75 percent of capital expenditures to increase its e-commerce leadership and supply chain efficiency.
Williams-Sonoma, which reported revenue of $1.66 billion in the first quarter of 2024, previously said about 66 percent of its revenue was generated by e-commerce sales in 2023.

Earlier this year, Williams-Sonoma launched a mobile app to strengthen its e-commerce presence and improve customer service. Williams-Sonoma has 625 stores in 60 countries. As of February 23, 2024, there were 152 Williams Sonoma stores in the United States.

2023 CRM provider Salesforce said it is working with Williams-Sonoma to help the company gain a 360-degree view of customers across a diverse portfolio of brands including Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, Mark and Graham and GreenRow.

“Artificial intelligence is changing everything – customer experiences, businesses and work itself,” said Brian Millham, president and chief operating officer of Salesforce. “The Williams-Sonoma team is leading the industry and using data in ways that build trust, understanding and elevate the customer experience.”

In 2017, Williams-Sonoma acquired Outward, a 3D imaging and augmented reality platform for the home furnishings and decoration industry.

Williams-Sonoma is leveraging its digital transformation initiatives to further focus on innovation across its product line. Williams-Sonoma’s proprietary design capabilities and integrated procurement organization allow it to offer this design innovation at attractive prices.

Williams-Sonoma’s proprietary digital marketing optimization, powered by customer analytics and first-party data collection, provides a competitive advantage for the home-based retail business. Williams-Sonoma increased its advertising spending and invested in both paid marketing and a social media strategy. Williams-Sonoma incurred advertising expenses of approximately $502.2 million, including digital ads, in 2023. By comparison, $618.5 million was spent on advertising in 2021.

This investment allowed Williams-Sonoma to increase sales, acquire new customers and increase market share.

Williams-Sonoma is in the process of enhancing the online experience through investments in proprietary e-commerce technology, from product discovery and selection, through personalization, to concept, customer service and end-to-end.

“Our team is constantly thinking about how we can improve our best-in-class e-commerce experience, and one of the ways we can do this is through artificial intelligence. We believe our leadership in artificial intelligence will be another competitive advantage,” said Laura Alber, CEO of Williams-Sonoma.

As Williams-Sonoma expands its digital capabilities, it has enhanced its in-store experience with inspiring products, improved in-warehouse inventory levels and delivered higher levels of in-store service. Williams-Sonoma’s retail optimization efforts are transforming its business.

Williams-Sonoma’s goal is to reduce costs through fewer out-of-market and multiple shipments, fewer customer accommodations, lower returns and damages, and fewer exchanges. “These improvements will continue to contribute significantly to our profitability in 2024 and beyond,” said Laura Alber.

In March, Williams-Sonoma launched its first-ever global collaboration with international icon Deepika Padukone. Its popularity has propelled the Pottery Barn brand to one billion views by enhancing the digital shopping experience. Customers also benefited from the launch of Coastal Lookbook and responded positively to the newly developed application.

Baburajan Kizhakedath