Wednesday, August 13, 2014

Restoration Hardware Testing New Catalog Delivery System

Restoration Hardware (NYSE: RSTO) one of the most innovative and fastest growing luxury brands in the home furnishings marketplace announced a new catalog delivery system in response to their recent shipment that arrived at millions of doorsteps, some to consumer dismay.  "We believe our brand stands alone and is redefining this highly fragmented and growing market and we think our printed materials contribute to superior sales growth" said CEO Gary Friedman.  

But Restoration Hardware's thinking on how those materials are delivered is changing.  "We understand some consumers were frustrated when their mailbox was stuffed with a 10 pound package and we intend to adjust our approach to deliver an experience the consumer finds less intrusive"  said Friedman.  "First of all when I hear the word catalog, I cringe" said Friedman, "these are NOT catalogs, these are Source Books." While Restoration Hardware pioneers a new strategy where its catalogs, rather than being distributed several times throughout the year, are distributed just once a year the consumer is having to adjust to the larger shipments that can weight as much as a small child.  "I was furious" said JoAnne Thompson of Chevy Chase, Maryland who notes that while she shops at the store, the heavy package was "just another thing the maid had to take to the trash." 

"The consumer told us we had a problem and our culture is about delivering solutions" said Friedman who announced a partnership with the moving and storage company PODS early Wednesday. "We took the idea of the POD and we revolutionized it" said Friedman.  "When you see that POD pulling up to your home and onto your driveway you'll know our most innovative, revolutionary products are just a step away for you to peruse at your leisure" said Friedman.  Restoration Hardware intends to deliver about a million PODS to consumers in the autumn of 2015 each housing the annual Source Book.  The PODS will remain on a consumers' property until they call Restoration Hardware to remove it.  "This gives the consumer everything I think they are asking for and more time with our Source Books in a way they can easily shop for the most luxurious products in the home furnishings industry.  

If Joanne Thompson's response to the news is any indication, Restoration Hardware may have another winning concept on it's hands, "it was a very trying time for my family and all Restoration Hardware families when the last package arrived. This is an elegant solution to a very difficult social issue me and my friends all faced and I look forward to seeing my first POD." Customers are encouraged to inspect the PODS upon receipt as several factory works have threatened to smuggle themselves to the US with the Source Books. 

Restoration Hardware stock was up 2.3% on the news. 

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