Restoration Hardware builds an e-commerce foundation

Restoration Hardware Inc. is among the growing ranks of chain retailers looking to capitalize on the full value of the web and e-commerce.

A prime example is the chain’s growing web sales. In 2006, Restoration Hardware posted web sales of $122.4 million, an increase of 60.4% from e-commerce revenue of $76.3 million in 2005. Overall the web accounted for 17% of all sales in 2006.

“Our business will become increasingly driven by direct-to-customer transactions,” says Restoration Hardware president and CEO Gary Friedman. “This transformation is the result of our multi-channel merchandising and marketing strategies -- and the multi-channel infrastructure we are building -- that are designed to drive total revenue growth and operating efficiencies rather than individual segment or channel growth.”

Restoration Hardware, No. 273 in the Internet Retailer Top 500 Guide, also is launching new direct marketing initiatives. In August the company unveiled Brocade Home, a fashion home brand aimed at the broader value market with a unique and feminine point of view.

The company also plans to launch Restoration Hardware Kids, a line of children`s home furnishings, as a catalog and web site in the spring of 2008. Each month RestorationHardware.com attracts more than 580,000 unique visitors, according to comScore Networks Inc.