US homewares and small appliance retailer Williams-Sonoma, which entered the Brisbane market in April, has seen its global online sales outpace its competitors. E-commerce at Williams-Sonoma is growing faster than traditional retail sales, 9.1% versus 7.9% according to the company’s last quarter results with operating margins on internet sales around three times as large.

This online growth has occurred despite the retailer experiencing a stock fall about 10% in the past month. Investors sold the stock after a disappointing Q2  earnings report impacted by labor disputes at US West Coast ports that led to shipping delays.

Laura Alber

Breville dominates appliance range

Williams-Sonoma moved into the Brisbane market after arriving into our southern cities in 2013.  The retailer has outlets at Chatswood Chase and Bondi Junction in Sydney as well as Chadstone Shopping Centre in Melbourne. While its range of small appliance brands is dominated by Breville and KitchenAid, they also include Nespresso, Vitamix and Philips.

Williams-Sonoma owns several retail brands which have also arrived in Australia, including Pottery Barn and West Elm, along with its eponymous brand. The company has been keeping its store count steady while increasing its same-store sales at mid-to-high single-digit rates.

The company is also insulated from overseas turmoil because more than 90% of its stores are in the US. In 2014, 64% of its merchandise was sourced from foreign vendors, with virtually all of that purchased in US dollars

Last year Williams-Sonoma chief executive Laura Alber said the retailer’s Australian online and catalogue sales were likely to rise after the opening of more bricks-and-mortar stores.