Executives say the problems at the 191-store chain were fueledby general macro-economic conditions and not specific issues atPottery Barn. They also blame a decrease in mall traffic. "We'reseeing a greater price sensitivity than we have in the past," saidLaura Abler, president of the company, during a conferencecall.
The company is now adjusting prices at the chain and changingassortment displays, among other initiatives. Furniture was theonly category in which Pottery Barn posted a sales gain during thequarter, and management says that this is due to having lowerprices than competitors in the segment.
The 91-store Pottery Barn Kids chain, however, recorded an 8.1%same-store sales gain. This is due to those stores targeting awealthier demographic that is not impacted by the overall economy'spressures, such as energy prices.
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