Crate and Barrel

About Crate and Barrel

Think you've never bought anything from Euromarket Designs? Think again. The retailer, which does business under the Crate & Barrel name, pioneered the fashionable-yet-homey look for contemporary interiors, offering furniture, housewares, and linens in au courant colors and styles. It operates some 160 Crate & Barrel locations (including a dozen outlet – more... stores) in 30 states and also peddles products through its catalogs and website. Euromarket Designs' other retailing ventures include CB2 (modern home furnishings) and The Land of Nod (furniture and toys for kids). Founded by Carole and Gordon Segal in 1962, the company is majority-owned by Germany-based Otto, one of the world's leading mail-order merchants.

Geographic Reach

While it boasts an international presence through its catalogs and website, Euromarket Designs operates retail stores in the US under the Crate & Barrel name in Arizona, California, Colorado, Connecticut, the District of Columbia, Florida, Georgia, Illinois, Indiana, Kansas, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, New Jersey, New York, North Carolina, Ohio, Oregon, Pennsylvania, Rhode Island, Texas, Utah, Virginia, Washington, and Wisconsin. In half a dozen states -- California, Illinois, Maine, New Jersey, Texas, and Virginia -- the retailer operates Crate & Barrel outlet stores. In Canada, the company's network of stores extends to Alberta, Ontario, and Quebec. Euromarket Designs also has a presence in the United Arab Emirates with a pair of locations.

Operations

Euromarket Designs operates Crate & Barrel retail and outlet stores in some 30 US states, as well as in Canada and the United Arab Emirates. Its e-commerce businesses comprises websites for Crate & Barrel, modern furnishings retailer CB2, and children's furniture and toy marketer The Land of Nod. The company operates colorful Marimekko shop-in-shops within Crate & Barrel stores through a partnership with the designer. To support its operations, the company maintains call center and distribution facilities in about 20 US states, as well as in Alberta, Ontario, and Quebec.

Strategy

Crate & Barrel's products are arranged in large quantities to give stores the feel of a well-kept stockroom. Catalog and Internet sales account for about 20% of total revenue, and gift registries (both in-store and online) account for a substantial chunk of the chain's business, as well. About a third of Crate & Barrel's home decor is exclusive to the chain. One such brand is Marimekko, renowned for its colorful and bold textile designs. Crate & Barrel and the Danish textile designer have expanded their partnership, agreeing to open more than 20 new Marimekko shop-in-shops inside Crate & Barrel locations by the end of 2013 to add to existing locations in New York, Chicago, Los Angeles, San Francisco, Boston, and Hallandale Beach, Florida. Crate & Barrel holds the exclusive right to sell Marimekko's interior design products in its stores (doesn't include Marimekko-branded clothing and bags).

With stores in most major US markets, Euromarket Designs has turned its attention to strengthening its flagship brand internationally. It has been expanding into Canada since 2009 and in 2010 the US-centric retailer opened its first Crate & Barrel store outside North America in Dubai through a franchise agreement with the United Arab Emirates-based Al Tayer Group. The partners aim to add more stores in the UAE; in the longer term, Euromarket Designs hopes to extend its presence to Europe (including England and Germany) and Asia.

Euromarket Designs targets a younger, less affluent demographic with its modern furniture and decor chain CB2. It operates about a dozen CB2 stores in California, Florida, Georgia, Illinois, New York, and the District of Columbia. The company entered Canada (specifically Toronto) in 2012. Aside from stores, CB2 markets its home furnishings through a catalog and website and partners with e-commerce firm FiftyOne to extend its online retailing reach to customers in more than 90 countries. Crate & Barrel owns a strategic 50% stake in The Land of Nod, an e-commerce and catalog company that sells high-quality furniture and accessories for children's rooms. The Land of Nod also operates a handful of stores across Illinois and in Seattle.

Sales and Marketing

The Crate & Barrel business targets an upscale customer who has room in his or her budget for discretionary spending despite the state of the economy. Customers are those who typically entertain regularly, are foodies, and frequently trade out their decor each season. The company's CB2 online business chases after a younger audience, such as shoppers who would frequent Target or Pier 1. And looking to fill the gap in the juvenile niche, the global retailer caters to the wee ones through its partnership with The Land of Nod.

Company Ownership

Global mail order merchant Otto owns a majority stake in Euromarket Designs. – less

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