Williams-Sonoma Plans to Continue Closing Select Stores
Posted on March 12, 2010Williams-Sonoma plans to continue to close stores, particularly in markets where it has more than one store. The company is focusing on stores that have leases coming up for expiration. As the leases come up for renewal, Williams-Sonoma will either negotiate for a better lease or close the store.
According to a report in the Wall Street Journal 25% of the company's store leases will come up for renewal over the next three years. Williams-Sonoma will be reviewing each lease very closely to determine whether it should close the store. The company may also try to negotiate better lease prices with landlords. The closures could also include Pottery Barn locations. The company says it once to optimize its "cost per square foot." Hopefully, they won't to close too many stores.
Williams-Sonoma cut jobs and a distribution center last year. They also closed some stores. The retailer also lowered prices last year as it battled the recession. A lot of retailers are following similar procedures as leases come up for renewal. This could put pressure on landlords to reduce prices or refrain from raising rents, especially if they don't have a lot of other retailers currently looking for space.