Furniture retailer West Elm is worried about following other chains down the rabbit hole of opening too many stores. So the company has another plan to sustain its growth: launching a chain of boutique hotels.
West Elm will design, furnish and market the hotels, the first of which will open in Detroit and Savannah in late 2018, and its partner DDK, a hospitality management and development company, will operate them. Guests will be able to buy the room furniture and other décor online.
“Where many retail brands have put the nail in their coffins is by opening too many stores,” said Jim Brett, West Elm’s president. The chain has about 100 stores and Brett said he doesn’t envision opening another hundred.
The hotel project thrusts West Elm, part of Williams-Sonoma Inc. WSM, -0.34% , into a fast-growing, but crowded field. Most of the major hotel chains have launched boutique hotel brands in recent years as travelers have come to crave unique experiences rather than the standardization that was once their biggest selling point.
(Source: marketwatch.com Author: Suzanne Kapner)