Crate & Barrel gets intimate

DSN Retailing Today, March 22, 2004

Home furnishings and even furniture are becoming brighter and more vivid, Gordon Segal, ceo of Crate & Barrel, told DSN Retailing Today at the opening of the company's first store in New Jersey's Bergen County and the second in the Garden State. At the same time, Crate & Barrel stores are becoming more intimate in proportion.

Once, Crate & Barrel created displays that reminded consumers that they were getting a forward approach to design at a reasonable price. Hence the crate and the barrel.

The approach differs today, although Segal emphasized that the company still keeps pricing relatively modest to attract middle-income consumers. "We're trying to be the highest quality middle-price-point retailer," he said. The 40,000-square-foot store is located on Route 17 in Paramus near two major malls with department stores such as Macy's and Nordstrom, as well as a long string of off-mall sites including the Gap, and other furniture and home furnishings retailers such as Ikea, BoConcept and The Container Store.

Despite the location, not every retailer along the strip is guaranteed success. Kids "R" Us is liquidating just down the street, and the new Crate & Barrel location is housed in a former, uniquely designed Seaman's furniture store. The facility features strong lines that bring to mind Frank Lloyd Wright designs and Crate & Barrel decided to build on the particular architectural elements to create a unique showcase for its products. For example, the stone wall that anchors the south side of the building is left rough on the inside, providing a textural element to the wall. Windows are left clearly visible, Segal noted, to permit customers to see past the vignettes and get a sense of their location, thus marrying location with the look of the displays and establishing a sense of being home with the products. Stone and metal elements contrast with cedar and other wood to give the setting a sense of drama but warmth as well.

Although many Crate & Barrel locations have been designed with high ceilings and vertical displays, this latest unit is relatively cozy. "We tried to make the ceiling a little lower," Segal said. "It's warmer. For the physical structure here, we tried to create a homier scale."

Segal said that giving store locations their own identities was important to Crate & Barrel. The company tries to be very consistent in terms of style and assortment. Creating display spaces that suit the surroundings demonstrate that the Crate & Barrel look belongs in the homes of local shoppers.

But Crate & Barrel's consistency isn't meant to be dull. About 25% of furniture and 40% of home furnishings are new seasonally, and Segal expressed excitement about the strong colors that are coming into the marketplace, particularly dramatic greens and blues. Segal noted their application in dishware, where Crate & Barrel offers many unique designs with particular enthusiasm.

Segal also said Crate & Barrel executives may have underestimated the store's potential, already touted to substantially exceed the $650-per-square-foot average. Not bad, considering the Paramus location is among the largest of all Crate & Barrel stores.