History Of Crate And Barrel

Furniture World Magazine

Considering the impact that Gordon and Carole Segal's Crate and Barrel stores have had on the home furnishings industry, gourmet accessories and the comforts of home; it seems fitting that the history of this innovative retail organization literally began in the kitchen. "It was in 1962," Gordon Segal recalls. "I was doing dishes - classic Arzberg dishes we had picked up in the Caribbean or New York - and I said to my wife, Carole, 'How come nobody is selling this dinnerware in Chicago? I think there's a gap in the marketplace. We should open a store." And they did. Crate and Barrel grew from a one-store, three-person operation in 1962 to a chain of 75 stores currently operating in 63 locations in fifteen markets across the country, with more than 4,000 employees. And it all began in the kitchen. With an idea. Although extremely creative and enthusiastic, the Segals could not afford expensive fixtures, a support staff or a state-of-the-art site. They opted to renovate a 1700 square-foot space in an old elevator factory in Chicago's burgeoning Old Town. The first Crate and Barrel store was created by nailing up crating lumber on the walls and spilling products out of their packing crates and barrels for display. Gourmet cookware and other contemporary housewares were carried in greater variety and at better prices than anywhere else in Chicago. The Segals took advantage of the newly opened Saint Lawrence Seaway, and imported directly from small ateliers and factories in Europe. The Segals knew little about a retail operation, and even less about the details of a store opening. They forgot to have a cash register for the first day. "We had no idea how to price things because the invoices for much of the merchandise hadn't arrived yet," Segal remembers. "So we wound up selling stuff below what it cost us -- the customers were delighted." What they did know about was design - design that didn't have to be expensive to be good, and design that was destined to become instantly recognizable, with the same standard of excellence they saw in showrooms, factories and stores in Europe. When Gordon and Carole Segal originally determined that with their limited means they should sell directly out of the crates and barrels in which the merchandise was shipped, the name of the company was born. In later years new designers, working with management, developed the now widely imitated display method of creating a vignette while massing and organizing merchandise to convey affordability and usability. In 1973 the Crate entered the catalogue business, which is now a thriving .business itself as well as a marketing tool for the stores. In the 35 years since Gordon and Carole Segal opened their first Crate and Barrel store, the operation has expanded and grown through the addition of talented and energetic new associates. Carole Segal retired in 1965. The executive team is now led by Gordon, CEO; Barbara Turf, president (with total responsibility for the company's merchandising); Ray Arenson, vice president of corporate design and display; and Barbara Reimann and Carol Sapoznik, vice-presidents of store operations. In February, 1998, Segal announced a new strategic partnership with Otto Versand of Hamburg, Germany, the world's largest mail-order company. Gordon Segal is founder and CEO of Crate and Barrel, a chain of retail home furnishings and accessory stores. At this time, there are 75 Crate and Barrel stores in 15 markets in the United States. In December, 1962, Gordon and his wife, Carole, opened a shop in the Old Town section of Chicago to sell the kind of well-designed, everyday, useful products that they had seen in Europe and on their recent Caribbean honeymoon. With no retail experience, they rented a 1700 square foot former elevator factory and with no extra money for decorating or fixtures, they nailed crating lumber to the walls and, for displays, turned over the crates and barrels in which their first merchandise arrived. So, although their ingenuity inspired the name "Crate & Barrel", they didn't even have a cash register to ring up their first sales! Many factors contributed to the instant success of Crate and Barrel; the ease of importing products from Europe through the newly-opened St. Lawrence Seaway, the Segals' choice of value-oriented, well-designed merchandise for the kitchen, dining and living room, and Carole's technique of massing the products in grocery-store type displays to show abundance and affordability. However, the Segals' most important "technique" for successful retailing was their enthusiasm and love of the business. Every customer was important to them, and this customer-service driven company soon became a local phenomenon. In 1968, the second Crate and Barrel store opened in Plaza del Lago, a small suburban shopping center in Chicago's northern suburbs. This was the beginning of the company's mall stores, which were supplemented in 1973 by its catalogue business, which today accounts for approximately 10% of the company's revenues, along with providing its strongest marketing tool. From 1975 to 1989, Crate and Barrel continued to grow by opening new stores in new markets, as well as expanding locally. Through the purchase of an already existing store in Boston in 1971, the company entered the furniture business, and in 1981 put together a new team to redefine the Crate and Barrel point of view in furniture. In '89 Crate and Barrel was ready to go into this business in a serious fashion. Completely rebuilding and adding onto their Plaza del Lago store, Crate and Barrel "opened" its furniture business with an eclectic collection of unique upholstered furniture and casegoods that was an immediate success. Crate and Barrel has continued to expand both its housewares and furniture businesses, with two very major milestones. In 1990 Gordon Segal built the company's four-story flagship store on Chicago's Michigan Avenue, and five years later opened the New York market with a store 1-1/2 times the size of its midwest counterpart, on 59th and Madison in the newest heart of Manhattan retail. In 1996, Gordon took his present title and promoted his long-time executive vice president in charge of merchandising, Barbara Turf, to president of Crate and Barrel. Under their dual leadership the company has gained its present success, and continues to grow with the same mission and philosophy with which it began; that is to bring the stores' customers well-designed products that are good values, and to provide the best customer service in the housewares industry. Gordon Segal continues to guide the company into new markets and to oversee its operational aspects. He also finds time to serve on various charitable boards and to devote time to causes important to him and to his family. He and Carole have three children and reside in a northern suburb of Chicago. For more information on Crate & Barrell call 800-323-5461.