
Photograph by Jonny Valiant

OUT OF FASHION: "It throws people off," says ousted CEO Ray Brunner of his white-stocking style. So did his controversial reign. Then-CEO Brunner said that DWR Kitchen was ahead of plan. That "plan" must have been extraordinarily conservative. Only one person purchased a DWR kitchen in 2009. | Photograph by Clay Patrick McBride

WELL-FOUNDED FEARS "DWR was a profitable, audacious business until the evil forces of mass-market retailing took over," says DWR founder Rob Forbes. | Photograph by Clay Patrick McBride
The Wigan Garden Spade is a thing of verdant beauty. Its hunter-green steel and sunny ash-wood handle evoke the pastoral fantasias of an aspiring gentleman farmer -- a dwarf maple in your yard, perhaps, around the base of which you can, with Wigan in hand and Wellies on feet, conquer weeds and plant petunias. It's got history too: Smithies have been handcrafting tools at the same Lancashire forge since King George III sat madly on England's throne. Thanks to Design Within Reach, it can be yours for the queenly sum of $95.
Or it could be mine: I now want one, and I don't have a yard or even a potted plant. It's that combination of storytelling and compelling design that has propelled DWR from a Web-and-catalog-only startup 10 years ago into a major nationwide home-furnishings brand today.
Once upon a time, way back in the 1990s, America was a land of design philistines. Dwell and Domino didn't exist. On TV, people didn't trade spaces, nor did straight guys have queer eyes to help them remake their post-frat-boy apartments. Many of us still thought Ray Eames was a man.
According to the genesis story of Design Within Reach, it wasn't really the people's fault. We just didn't know. The finer things in life, which the enlightened residents of Europe had come to appreciate over decades of Danish-designed, Italian-made existence, weren't available to most of us. They were cloistered in showrooms open exclusively "to the trade"; only interior designers could give us the golden keys.
Along came a San Francisco-based revolutionary named Rob Forbes. He decided to seize those keys and share them with all of us ... who had the money. (The name Design Within Reach was never meant to suggest that we'd all be able to afford the lovely things.) In 1999, he launched a low-overhead business featuring an online store, an email newsletter, and a direct-mail catalog. These were more than just sales tools -- they were the three main components of a nationwide introductory course in modernist design. He and his company became educators and tastemakers.
The branding was genius and so was the timing. Americans were ready to trade up in all aspects of their lives -- from their takeout coffee to their homes to the furnishings inside. DWR rode this wave of consumer spending, splashing onto the stock market in July 2004. After its first day, the market valued the company at $211 million, an optimistic 70 times its 2003 net earnings.
Five years later, Design Within Reach's brand remains strong, but its business is a mess. Once a pioneering online retailer, it looks today more like an old-fashioned brick-and-mortar operation. Its past year has been unequivocally horrible, from hiring investment bankers in February to explore "strategic options" -- corporate code for "we're in trouble" -- to closing stores for the first time in its history to voluntarily delisting from the Nasdaq in July to seeing its market cap dip to just $4 million. In August, DWR got a much-needed lifeline $15 million in capital from fund manager Glenn Krevlin's Glenhill Capital Management, in exchange for 92% of the company. In October, the new leadership fired CEO Ray Brunner, who had presided over a series of failed attempts at renaissance.
Before his ouster, Brunner had painted the company's current woes purely as a product of the economy. But while DWR's sales did plunge by a quarter in September 2008, this isn't a story about the recession or even a simple corporate parable about overlarge appetites. The truth that has emerged from months of conversations with company insiders, former employees, design collaborators past and present, and founder Rob Forbes -- in his first public comments since breaking his ties with the firm in 2007 -- is that DWR has been a victim of its own unintelligent design. It veered from one ill-advised strategy to another, ranging from a craven knockoff program to a baroque pursuit of brand extensions, including an accessories boutique called Tools for Living, where you can buy that Wigan spade.
"We want to make DWR great again," Krevlin says. "We're doing everything we can." For a guide of what not to do, he only has to look back at the company's recent history. Given the depth of its woes, the tool for living that Design Within Reach's new leadership could really use most is one that it doesn't yet stock: a huge shovel.
Rob Forbes loves creation stories. On a blustery late-summer afternoon in San Francisco, we're still warming up in a cozy SoMa bar when he learns that gin is my drink of choice. He launches into a spiel about a local distillery called No. 209. "You can smell the spices, the juniper," he says, and insists that I just have to see its "amazing" and "beautiful" stills. I settle for the next-best thing: I order a No. 209 and tonic.
Recent Comments | 43 Total
November 24, 2009 at 2:01pm by First Name
Krevlin's groundbreaking first move at the company:
Canceling insurance for babies, children, spouses, and domestic partners.
Cutting the salaries of all employees.
I do hope that that the design community and betrayed vendors keep this in mind when Mr Krevlin calls them begging for forgiveness. Please feel free to ask Mr. Krevlin if he will reward his loyal vendors with similar actions.
This is how he is actually "reestablishing the company's DNA."
What a display of integrity! ;)
November 24, 2009 at 10:59pm by Elizabeth Hershey
Jeff Chu, you really fouled on the facts. BluDot never sued DWR, David Rockwell has only been on the board since August and not involved in any of the decisions you credit him with.
Ray Brunner was the savior of DWR and it's employees not once, but twice - asked by the board of directorsto return after two very incompetent predecessors. He is adored by his staff and always had the designers best interest at heart. Ray is passionate about design.
Glen Krevlin is a small minded panicky short term thinker. He has alienated vendors by not paying bills, alienated employees by cutting staff by a third and cutting important benefits. He is floundering with no direction. Sales have dropped town all time low, vendors are pulling out inventory due to non payment. Krevlin has no need for the truth. Even his intrim COO has quit. Everyone of value is leaving or have already left. Ray was a mentor, father figure to many and a great leader.
DWR, in the hands of mr krevlin will fail miserably.
November 25, 2009 at 1:55pm by First Last
Ray, oops I mean Elizabeth. You obviously did not work at DWR under Ray's reign of crazy talk terror. We all thought the man was nuts, and a bad business person. His daily inspirational emails were the talk of the office. Trust me, we were not sad to see him go. A father figure, really? That's laughable. We were all waiting for a call that he'd been committed.
As far as the new regime, that's no good either. They've jerked the carrot away and are beating us with the stick. Cut salaries that weren't exactly high, forced us to take on the work of the many people they cut and yes, severely cut back on benefits. We're all suffering, and before anyone says "get another job", think about the job market. We're slaves now, and they know it.
November 25, 2009 at 6:23pm by Denyelle Bruno
I went to work for DWR when the stock was in its high $20s. I was so excited to work for a company with so much promise... It was obvious to anyone with an ounce of intelligence that Ray Brunner was an insecure phony and a bully who tried desperately to appear knowledgeable and hip. The guy is an idiot and it was incredibly sad to see him run the company into the ground. He surrounded himself with unqualified cronies, he mislead people about his qualifications and he disliked anyone smart enough to call him out . The only other thing I can say about this article is, what the hell took so long! I've been telling this story to friends for 3 years.
November 25, 2009 at 6:39pm by sarah november
The current state of the DWR is actually really sad for some of us who worked there for years, in my case, over the course of 3 CEOs. The company not only helped to teach the nation, but it's employees about the great history of design. It filled our homes with pieces of art that we could live with and it introduced us to friends around the country who shared our love of design. However, I am sure that like myself, 100% of the employees who worked there under Ray have a cringe-worthy story or 20 about his irrational decisions, uncomfortable behavior in meetings, or unexplainable random outbursts. I'm sure others, or maybe some of those same people, were given opportunities they would have never been afforded in another company due to his refusal to hire experienced professionals in every department of the company. He was always so threatened by the intelligent opinions of anyone outside of his "pack" that half the time it was like arguing with your mean dad. In that way, I guess he was a father figure.
The thought that the brand will survive while being navigated by those who are ONLY fiscally invested in the company does not make me optimistic. We always dreamed of a fearless, design-loving leader who would really mentor us and not bully us into selling fakes and accepting the trickle down of bad decision making.
November 25, 2009 at 7:58pm by Happy Sad
Everyone commenting so far is SPOT ON except Elizabeth who is flat-out wrong on most points and delusional on the others. I have never worked anywhere where the loss of a person (CEO or otherwise) was mourned by precisely no one. The only person left who can truly be called "mentored" by Ray is the VP of sales who is definitely a protege in terms of professionalism and style; someone like Ray whose ego is only surpassed by his lack of humility or willingness to learn from others. The way Ray and this VP treat people is truly astounding, lacking in the most basic of respect or professional behavior. This VP, who is still employed, was equally proud of the knock-offs. He sat in regional meetings where he talked on and on for hours on end (and then criticized those of us listening for not participating) and laughed about the knock-offs.
Want to know the ENTIRE reason for the Blu Dot knock-offs? Blu Dot opened a showroom in NYC. They hired away one of the Ray's favorite employees (who consistently missed his sales goals, something countless others are fired for regularly). This hiring by Blu Dot so pissed off Ray and the VP that they immediately (within days, not weeks or months) severed all ties with Blu Dot and proceeded to knock off their products. They even referred to one of the knock-off products by the name of the former employee. The "Bradford Table". The way to run a quarter of a billion dollar business? Yeah... not by a petty grievance over one store manager leaving. Absolutely childish, insane and inane.
The Ray and certain cronies way of running my company was the way Heathers would run a prom committee. Popularity and being a "yes" machine was the way to their hearts and the way to get promoted. Talent, intelligence, opinions and expertise was the way to lose your job, be publicly yelled at in front of your subordinates, and thrown under the bus.
Goodbye Ray, and hello a much brighter future for DWR, even if i am making 10% less now. I'll take dignity any day over a higher paycheck.
November 27, 2009 at 5:31pm by heidi goldstein
My husband and I purchased a beautiful bed recently from DWR. We live on the Upper East Side of NYC. The salesperson was knowledgeable and helpful, the sleek look of the bed is amazing, and DWR's customer service follow-up by email and phone regarding a small glitch was exceptional. As a finance professional and manager of our personal investment portfolio I personally believe DWR's stock is a great bargain right now. I want innovative, unique and well-made furniture that is a good value for money. This is exactly what DWR delivers. I look forward to becoming a repeat customer.
November 27, 2009 at 7:48pm by Steve Smith
While the details of managements mis-steps are interesting (and probably correct), the author fails to acknowledge that DWR's success mirrored the housing run up and easy credit environment of 2002 - 2007. Its fall came with the housing and credit implosion. Coincidence? Its furniture not rocket science. This is not Enron - it brought niche to the commoditized main stream (sort of) it is not economically relevant to the macro economy.
Who cares what the product mix is if no one is buying new housing and there is no additional credit available from Visa?
Pretty hard hitting, ground braking stuff - whats next Jeff 60 Minutes???
November 28, 2009 at 2:00am by Bob Shipley
Wow. Spot on article. Ray Brunner was a lunatic. Only one person at DWR mourned his loss and that was for fear that his own demise would be forthcoming. Brunner and his cronies ran (are running) DWR into the ground. They created an environment of fear and maliciousness that would be astounding in a mom-and-pop corner store, let alone a nationally recognized brand. Exceptional people were fired or allowed to leave and "good-looking," "hip" slackers were allowed to shine. While having your benefits and your pay cut is no fun - neither is being humiliated and harassed on a daily basis. ANYTHING, Mr. Krevlin does is an improvement.
November 28, 2009 at 12:45pm by Gary Coleman
The sad reality is that there was a tremendous amount of fat within the company and a severe lack of fiscal responsibility. The fact that some very talented and hard working people had to be let go so that Ray's "crew" could remain fat, dumb, and happy is incredibly sad.
DWR lost it's market niche when it moved away from selling authentic designs that were in stock and ready to ship. Greed, lack of vision, and lack of financial control is the legacy that Ray and many others within the company will leave behind.
Mr. Krevlin is not going to be well received because he had to make deep cuts in an effort to protect his investment but I applaud him for being the first person in a long time to step in and say enough is enough!
I honestly hope that DWR is able to realize the error of their ways and emerge from this a lean, efficient, web based entity. To do so they are going to need to close most of their studios and outlets and refocus their efforts on their web based sales and marketing.
November 30, 2009 at 11:22am by David Burck
Besides the obvious management crisis noted by the writer and several commenters, it is worth noting that the DWR retail presentation is off-putting at best, and the business model still does a poor job of engaging the real interior design and architecture professionals who could drive a lot more volume their way.
November 30, 2009 at 11:34am by Tito Melega
In my opinion, the true reason Design Within Reach is failing is because it is "out" of reach. Their product prices do not reflect the company names. How many of us have shopped in their online and brick/mortar to find out things did not make that much sense?
November 30, 2009 at 6:01pm by chris arkenberg
Tito: "In my opinion, the true reason Design Within Reach is failing is because it is "out" of reach."
Me too. Since when is a $1200 coffee table within reach? The Eames recliner is only $2500 instead of $3200. What a bargain!
November 30, 2009 at 8:08pm by James Bond
The model is wrong!
They don't pay top performers!
Their IT system is out of date!
Delivery systems are antiquated!
Don't deliver on employee earned awards!
Half the employees don't know how to sell!
Managers are closed to new ideas!
What could possibly be wrong?
December 1, 2009 at 2:09am by Andrea Blige
As a former employee who worked under the 3 CEOs (Baudavinus, Posely, Brunner), it's sad to see the state of affairs at DWR. I can only concur with the comments above and the article's observations that Ray had neither the training nor understanding of how to run a complex organization. His hubris was only exceeded by his nastiness towards those who had a differing opinion. As an example, Ray proudly pontificated on his real estate "strategy" which avoided high traffic locations for those where rent was marginaly cheaper. Think studio locations in such high demand locations such as Lafayette, CA - a location which was doomed to fail - rather than the main shopping district in Walnut Creek, CA. A strategy that avoided Palm Springs and instead launched Kirkland WA (certainly more of a hot bed of modernism and design appreciation).
As another proof point, Ray believed that the DWR catalog was not a meaningful marekting tool and that the catalog didn't drive studio sales (just ask the Williams Sonoma folks - they've got it all wrong).
Ray's promotion of the VP of Sales (the ultimate yes man)was an affront to anyone with common business sense. Not a single person I knew respected him - including those within Ray's favored group. As another example, Ray's concept of strategic planning was to launch DWR Kitchen. The list goes on and on. I'm glad to see change underfoot and I would encourage Mr. Krevlin to dig deep to understand the reasons for the animosity and bitterness towards Ray and his cadre. They are well founded and have profound implications for righting the business. The DWR brand deserves better than Ray Bruner.
December 1, 2009 at 8:19am by Trudy Wade
Wow! Unfortunately, this is exactly the standard for US business. I really wish that today's "leaders" would wake up and start running their businesses by treating their employees, customer, and vendors as assets. Lots of talk; no actual actions in that direction.
December 1, 2009 at 12:27pm by Marisa Kuggen
Design Within Reach provides knock offs of actual Industrial designers' and architects' work. A minor tweak to the actual creators' design and presto - design within reach. Let them fail. As a designer myself I see these new stores as an affront to actual craft and creativity. They are stealing pure and simple.
December 1, 2009 at 2:33pm by Dash Moon
As a designer living in SF, I have watched the rise and decline of DWR from it's inception in the late 90's. And respected them in the beginning under Rob and lost all interest under Ray.
I have many colleagues that worked and are still struggling under the terror of Ray and upper Management.
When are these companies going to start to see the value of intelligent, quality employees and not just fiscal numbers?
It's fitting that Ray came from the GAP and yet was able to run another company into the ground with his tyrants and bad knock off decisions. GAP got away from thier true brand and now DWR has done so as well.
I stopped purchasing from DWR when I heard the same story a couple times over, told buy many colleagues. SF is a small design community, word got out fast. It's easy for me to direct a client since I have a good story to tell why not to shop a particular brand based on ethics. And unfortunately, I am still telling that story.
My heart goes out to all my friends and all of those who had the unfortunate task of working under Mr. Brunner. Guess these posts mean something. If Mr. Krevlin wants to make a change, start with the human kind.
December 2, 2009 at 1:05am by Lone Pine
As a former employee it pains me to see such a once promising company in shambles, yet all blame cannot be placed on Ray Brunner. This is a company that should never have gone public in the first place. It is, at best, a niche business and unable to produce the growth demanded by Wall Street. It was nearly inevitable the current state of affairs would be the eventual result. It is worth noting that the orignal executive team--Founder included--were all on board with the rapid growth and IPO. I don't believe most of them thought the company was actually sustainable--the strategy was to make a lot of noise via fast growth (i.e. opening studios EVERYWHERE), drive up the stock, cash out and move on. Well now those chickens are coming home to roost with 60+ locations, many of which make no sense at all. Those leases aren't going anywhere. The strategy to open more Tools for Living stores is laughable--the company already is up to its ears in unproductive real estate. Tools for Living will never generate the volume this company needs to survive, and it deserves the same fate as DWR Kitchen. The only hope is to get back to basics and focus on their core compentency of furniture, though frankly it is probably too late.
December 2, 2009 at 4:53am by erik Spiekermann
Krevlin says: "If there are people who are particularly pissed at us, I would like their names and phone numbers," ...
Get in touch with me and I’ll tell you the story of a botched product launch, lousy communication and angry suppliers. I designed a series of house numbers that was launched and almost immediately pulled again. Nobody was responsible, nobody told me a good reason.
Erik Spiekermann
December 2, 2009 at 9:28am by S H
About time the wheels finally fall off this train wreck. Our company was a supplier to DWR -- it was a nightmare, they would place large orders -- get everyone moving to build product, then cancel everything, then try to rebook smaller orders with demanding schedules, they wouldn't pay on time and you had to micro manage their accounting payable department to get checks cut, are products were selling well, then they came and asked for immediate additional discounts and extended payment terms... we're a successful company and really didn't need the DWR headache, we cut them off and moved on. They could have been successful, but they ran the company like $%^&*, no way anyone can turn this company around, they would need to get out of too many expensive leases and it sounds like many of the employees would need to "go away", what sane business person would get involved with this mess... even in a recession.
P.S. I was always suprised at "professional" A&D community members that would specify DWR products on projects ... they were hurting their client budgets by specifying goods from a retailer versus a less expensive supplier within the trade. DWR was typically 40% higher than buying from a manufacturer direct or even a contract dealer.
December 2, 2009 at 9:39am by S H
One good thing for shoppers... get ready for a BIG final sale on modern furniture and accessories. When they finally liquidate. Design WILL be Within Reach (until they run out of inventory).
December 4, 2009 at 11:05am by Michael McGinn
It was always my understanding that the name Design Within Reach was chosen primarily in response to what were once contract furniture industry barriers to purchasing designer furniture and not necessarily with the idea that the furniture would be offered at a substantially 'more affordable' price. Until the mid-nineties anyone wishing to purchase a designer furniture had to know someone in the trade or work with an interior designer to gain access to the showrooms or dealers. The industry practice enriched interior designers with a substantial markup and ironically, spawned an industry producing knock-offs available at a lower price. Prior to DWR, Palazetti did a substantial business making faux designer chairs and sofas, allegedly from the same factories, and available at about half the cost of the original.
There are many reasons why the contract industry changed to what we know today. If nothing else Forbes and DWR have to be given credit for driving the change.
December 6, 2009 at 5:41pm by RJ Kirchhoefer
I was so happy to see this article. In fact, I felt personally vindicated for my last 2 years of DWR hell. I was headhunted and hired in June of 2006. For the first year I was very happy with my job and was excited about design and worked under the proprietorship of a very hardworking and talented woman. Unfortunately, I was told, because of the insecurity/megalomania of the current VP of sales, she was dismissed from her position. The following 2 years were a literal purgatory, with a series of 3 untalented, unethical, self-serving, despotic studio proprietors- NONE of which had any prior management experience whatsoever. It was obvious to me that they were all hired out of necessity to fill the position- the first 2 had quit because they couldn't handle the job and because they both felt betrayed by upper management. However, they were at one time just another couple of cronies who were more interested in the job title than actually than actually doing the job. The third and current "proprietor" (the one that helped me to finally make up my mind and quit) is yet just another crony and also has absolutely no prior experience as a manager. In fact, during her reign of terror which began last May, 2 of her employees have walked out (I being one of them) because of her unethical treatment of her employees and her narcissistic and self-centered, and abitrary style of management. I just am amazed that I lasted as long as I did. Thankfully I had enough, and in July and ended my slavery and liberated myself from the tyranny that is DWR. Everything negative that is written about R. Brunner, his VP of sales is, in my opinion, altogether too nice and tame. It is so sad that a company so dedicated to design has come to be what it is today. The genius and vision of it's founder, Mr. Rob Forbes, has been completely lost to his successors who have driven his company straight into the ground. It was so disheartening to witness the demise of DWR. It used to be a company of integrity...now it's just a joke and a horrible memory.
December 11, 2009 at 3:51pm by Steve Smith
Rob Forbes sold the company got rich and bought a multi million dollar penthouse
DWR paid Ray Brunner's obscene rent in the most expensive zip code in America during the supposed cost cutting turnaround
VP of Sales' (who could never hold that title at any other retailer half as large as DWR)partner continues to be employed by the company
Greed, waste and nepotism - past present and future at DWR.
December 15, 2009 at 7:40pm by stephen dooley
I have been in the high-end furniture industry for almost a decade and have seen the rise and fall of DWR from another angle; the independent retailer. The furnishings provided by DWR have always been available but through smaller, less box-store-marketed concepts like DWR.
DWR’s genius was always in it’s flashy mail marketing campaigns covering an overly edited collection that was convenient for them to stock. Who wouldn’t want the beautiful home set-ups in their ‘design’ mags just as they saw them?
DWR originally quietly sold many inauthentic products. I had clients coming to our store wanting me to service their failing DWR purchase which looked nothing like the images in their catalogs. Authentic products came to DWR when they cornered the mass-market on taste. Cornering the market allowed DWR to sell the more expensive products to the point and click consumer wanting their life to mimic the ‘pretty picture’. I am sure DWR moved toward authentics begrudgingly because as the article does mention, the margin in selling “knock-offs” is much higher because it is made cheaper and without royalties. DWR’s new ‘once-again’ stance of original design is like a child’s hand being caught once again in the cookie jar.
Let DWR fail along with the fat bankers. Independent retailers bring real and diverse design to the cities. We already have too many Gaps, too many Pottery Barns and too many Wal-mart style models out there to succumb to yet another brainless brain-child from a megalomaniac looking to bilk consumers as well as their design collaborators.
December 16, 2009 at 6:52pm by T S
A real mess with no hope in sight is how I would describe DWR. The problem lies at the top. In order for the company to survive, store closings are a most. But common sense is something the company lacks and instead they chose to cut salaries and health benefits. The identity of DWR was lost long time ago and all that there's left are fiscally invested individuals who were responsible in the first place for the decline of the company.
December 18, 2009 at 1:07am by Johnny Black
Ray Brunner is the Pirate and the ship he's robbing is any company foolish enough to hire him. That's what he does. Caveat Emptor.
December 19, 2009 at 2:03am by Clyde Willis
This article and the comments left are spot on and anyone that has anything positive to say about DWR is delusional or flat-out lying. Ray cultivated a culture of fear and brainwashed his employees to think that there was nothing else better out there (seems they still are). There was no way you would be promoted unless you were a part of the In crowd and intelligence and innovation were ignored. The only reason our area manager was promoted is because the VP was in love with him (quite literally). He had absolutely zero people skills and was indimidating to make up for their complete lack of ability to do his job. The most this person could muster was "sell like hell" with his hourly emails and then berated the studio with his unfounded condesending attitude. He had no idea how to lead a sales force.
As for the VP in question, I knew him when he was nothing but a rube that collected teddy bears. Teddy bears! That's sooooo modern. He then promoted his boyfriend that looks like one half of Little Brittan to a ridiculous specialized sales position that just wasted company resources and never turned a profit.
DWR even treated their customers like crap and the mantra was "get as much out of them as you can". If there was a loop hole to screw someone then we were encouraged to do it. More and more of their product line is made in China(see the Geneva Sound System for starters)but passed off like it comes from Eurpoe. Cassina smelled the stench and pulled out and I hope Emeco, Herman Miller and Knoll realize the same thing soon. They also pretend to be "green"...what a joke!
All in all, working for DWR was the worst experience in my career and I am so happy to have moved on to much more supportive and profitible waters. I have a job that I am proud of now and my opinion matters. All that mattered at DWR was the bottom line. The Peter Principle is the reason they failed. You don't promote some nelly self-aggrandizing bully that got hired in a gay bar to VP. I'm sure he is clinging to his precious Goyard bag hoping the new management doesn't realize what an idiot he is, but how could they not? He doesn't even know how to spell, much less "direct" a national sales effort.
December 19, 2009 at 4:14pm by Michael Trask
As the owner of a couple of pieces from DWR (a flight recliner and a Sussex console, both picked up at a warehouse sale), I may be calling the kettle black here, but I question whether this--"in stock and ready to ship"--was ever a good business model. I'm comfortable but by no means rich. My (anal-retentive) husband and I spent two full years, a dozen years ago, shopping for a sofa, until finally settling on a Harry from B and B Italia. It took two months to ship from Italy. That's because it was in the color, fabric, and configuration we wanted. It still sits in my living room (its third living in twelve years). It cost a lot of money; it was worth every penny. The plan that Forbes originated--instant gratification of your design fetish / whims--seems to me just so counterintuitive. Why would anyone want to rush into a decision to buy a piece of furniture that cost upwards of two or three grand? It turns out that two months is really not such a long time to wait. Moreover, I'm ashamed that they've screwed over Terence Woodgate and other designers. I love my Sussex console; I would never even think to buy the "DWR Studio" rip-off, no matter how "well-made" it is. It's just gross. And if you want to buy Herman Miller classics, go to highbrowfurniture.com, where shipping (in contrast to DWR) is always free.
December 19, 2009 at 9:08pm by M S
I feel vindicated reading all the comments more so than I did the article. I never felt like upper management had a clue as to what they were doing, but anytime I would voice an opinion I was told that I was the "only AE in the company that complained" time and time again. Now I know for sure that was not the case...it sounds like everyone felt the same way I did. I'm not one to engage in schadenfreude, but in this case I am gleaming with delight. I wouldn't say that I want to see the company fold, but they need to go ahead and clean house of the rest of the idiots that are left in Ray's "inner-circle".
I am most impressed with everyone's impression of the VP. In short, he is an untalented and petty little man with no idea how to do his job. I can say with 100% certainty that I know more about design, sales strategy and marketing than he ever will. He was just in the right place at the right time when he was promoted, but he will never be able to replicate his position with another company once he is fired. He just doesn't have the skill-set. He is a bully and intimidated by anyone smarter than him, which doesn't take much. I don't think that he even graduated college.
Our area manager was (and is) equally ineffectual in my opinion. He had no people skills whatsoever and no ideas on how to actually improve sales. It was just more bully tactics and soft-spoken intimidation. Again, I would go toe-to-toe with him on the topic of modernism or marketing any day of the week. I was fired even though I was the top sales person in my studio (more on that later) but he didn't have the guts or integrity to do it himself as he should have...he was afraid of me because he knew deep down that I saw right through his act. He fired our proprietor that we all liked three days before Christmas; in effect ruining everyone's Christmas. Just piss-poor timing and zero couth.
The last straw for me was Easter. The entire company was promised the day off and we all made travel plans. Then, inexplicably they said we had to work after all because we weren't making our goal TWO days before Easter. It cost me a plane ticket and the humiliation of having to neglect my family. The day I was fired was the happiest day that I had during my tenure. They played right into my hand and gave me exactly what I wanted. I wasn't about to quit after everything I'd been put through and not be able to collect unemployment. It couldn't be denied because I had just received a positive review a couple of weeks before. I didn't need the money but I took it just the same.
And why was I fired? Because the new Studio manager (that used to be an area manager...talk about failing upward) wanted my clients and wanted to run the show. She said things like "I'm not paid to be your friend" and "we are going to make our goal, so wrap your little head around it". The goal was unrealistic and they still haven't made it, but she's "connected" and they won't fire her like they did the previous manager. I never liked her fakeness from day one and life is too short to suffer fools. And she is a first-class dyed in the Dwar fool. She even opened herself up to a lawsuit by telling my clients that I stole from the company after I left! What nerve. She did me a favor because I have an awesome six-figure job now that lets me use my talents and skills in a much better city.
To top it off, they made sure that a $45,000 sale I had shipped just out of the bounds of the cut-off for former employees to receive commission. They needed the money that desperately. Luckily, I didn't.
I'm so glad to have this opportunity to vent. I could go on and on about their horrible business practices, but it was the way they treated (and continue to) their employees that was the first sign that the company was broken. It really does boil down to a bunch of people with limited skills running the show...into the ground. I'm very happy that I moved on to something that will take me somewhere in life.
I do hope that the new owners can turn the concept that Rob Forbes started around because he did raise the taste level of a lot of Americans. The last president was just a bombastic, vainglorious windbag (see the unmodern chair he named after himself) They just need to fire everyone that had anything to do with the old regime and re-vamp the concept. Anyone with a little bit of ingenuity can find almost everything they sell somewhere else for less and free shipping. Whew...now I can move on with my life.
December 19, 2009 at 9:17pm by Ken Nemeth
While it is heartening that DWR is taking steps to rectify its fiscal and human relations sins over the last several years, DWR will likely fail unless they quickly resolve three fundamental problems with their business model:
1. Are they a mass retailer or a boutique retailer? Their price point screams boutique (it has been pointed out before that their name is a fiscal misnomer) but they have 66 branded stores in the US. Similar folks in the market space have less than half that number. Both Ligne Roset and BoConcept have approximately 30 stores each in the United States. They need to immediately assess the health of their stores and close underperformers and take the hit on the Leases.
2. While some of the older DWR stores are interesting architecturally (like SF), their newer stores are decidedly underwhelming, maybe even (dare I say it?) cookie cutter. So what is the strategy? The white box or the architectually interesting tableaux? I say pick great spaces that represent the soul of the brand.
3. How is DWR going to compete with greatly increased competition in the market space? BoConcept is expanding rapidly and is now occupying a price point between Ikea and DWR that is going to place additional cost pressure on DWR as BoConcept steals customers. Room and Board has only 11 locations and has a branding concept that represents the best of early DWR and Crate and Barrel. Should they decide to enter additional markets that DWR, BoConcept and Ligne Roset occupy they will, IMHO, eat DWR's lunch. This is the one for which I don't have the answer - I am not sure this is a solveable problem, as it relies on whether or not people care enough about "famous" mid-century modern furniture enough to shell out for DWR rather than get something similar from one of their competitors at a lower price. I don't, but that's me.
December 20, 2009 at 2:23pm by Aunt Jemima
I'm a bit confused by the title "The Rise and Fall", it seems clear from the article that the arc of this company over the past decade has been a bit rough and confused, and thought it's "rise" is clearly documented, I hardly see it as "fallen". In fact the article ends on an optimistic note - a new CEO, discontinuation of all knock-off experiments, and a new forward looking and experienced board. The title in the URL "A Modern Mess" (perhaps this was the original title before you decided to up the ante with "The Rise and Fall") seems much more appropriate. All send and done, DWR has a solid niche and is still an extremely strong brand that people respect. They have done a lot of good as a part of the design community and I look forward to seeing how they continue this, they have after all managed to weather a massive economic slump that has already crushed hundreds of luxury retailers.
December 20, 2009 at 5:26pm by Eric Vos
DWR is/was/will more expensive than Knoll's sources and Herman Miller's dealers. Thus, you have to ask "what am I getting for the extra money?" Nothing. Any of the stores you go to have young sales people who are very obviously short timers. They either don't possess, or care about, the product knowledge. Their depth of understanding is puddle deep. All of these well designed pieces have rich histories, designers, etc. It is for this reason people premium prices. Without someone to pass this along during the sales process you have no motivation to pay more due to appreciation. With this lack of understanding by the sales people, and the availability of most works at cheaper more seasoned sources, why would I buy from DWR? Moreover, DWR didn't create the re-birth of mid-century, they rather rode the wave. Thus, there is no loyalty produced. With so many poorly run/staffed stores around the country it brought the web presence down. I would peruse their catalog and think "boy those stores stink." Not "I love these products." If you spend time in a Herman Miller or Knoll source you will see many people buying who first saw the products in DWR but were not converted by seasoned, product savvy, staff. It is like buying a Brooks Brothers suit at GAP. What they built with their magazine and web site they killed with their nation wide staff.
December 20, 2009 at 5:29pm by Eric Vos
DWR is/was/will more expensive than Knoll's sources and Herman Miller's dealers. Thus, you have to ask "what am I getting for the extra money?" Nothing. Any of the stores you go to have young sales people who are very obviously short timers. They either don't possess, or care about, the product knowledge. Their depth of understanding is puddle deep. All of these well designed pieces have rich histories, designers, etc. It is for this reason people premium prices. Without someone to pass this along during the sales process you have no motivation to pay more due to appreciation. With this lack of understanding by the sales people, and the availability of most works at cheaper more seasoned sources, why would I buy from DWR? Moreover, DWR didn't create the re-birth of mid-century, they rather rode the wave. Thus, there is no loyalty produced. With so many poorly run/staffed stores around the country it brought the web presence down. I would peruse their catalog and think "boy those stores stink." Not "I love these products." If you spend time in a Herman Miller or Knoll source you will see many people buying who first saw the products in DWR but were not converted by seasoned, product savvy, staff. It is like buying a Brooks Brothers suit at GAP. What they built with their magazine and web site they killed with their nation wide staff. This is in no way the staff's fault - this lies heavily with a corporate blunder which ignored a starving group of people who wanted to sell but were not given the tools.
December 21, 2009 at 11:15am by Happy I'm gone
Awesome! The teddy bear comment is so true...I've seen a picture. I believe they were Ralph Lauren bears. Very modern, indeed.
The old DWR did not care about their employees. No matter how hard they worked. I learned a lot about how to work in an evironment that is very similar to the Days of our Lives, so for that I am forever appreciative. There is something wrong in a company culture when upper management is making budget cuts, but still staying in $300+ a night boutique hotels and renting Mercedes on business trips.
I wish all my former co-workers the best. The one good thing about DWR were its employees...the most creative and intelligent group I have ever worked with. It's too bad that the majority of them were never appreciated. I hope things change for the better.
This article and its comments made me smile.
December 21, 2009 at 1:13pm by Nadina Cole-Potter
I drive past the Scottsdale DWR often. It is located in the hottest, high end retail area of Scottsdale and, perhaps, the entire Phoenix area. Its windows are coated with something so I can't see any product and the coating makes it look like the space is vacant so it's difficult to determine if the store is even open. The directional signage and entrance to the parking lot is non-existent. DWR does not advertise in the area's daily newspaper. Who even knows that it's here except, perhaps, interior design professionals? DWR is up against Haus, Copenhagen, Bova, Parnian, Brix, Tningz.
There is something to be said for remembering the fundamentals of retailing, site selection, visibility, access, and basics like letting the public know you exist and want to do business with them.
December 21, 2009 at 1:47pm by Nadina Cole-Potter
Ligne Roset and Bo Concept no longer have an Arizona, much less Scottsdale, presence.
December 21, 2009 at 1:50pm by Nadina Cole-Potter
Ligne Roset and Bo Concept no longer have an Arizona, much less Scottsdale, presence.
December 23, 2009 at 7:46pm by Bonnie Tampico
Michael Trask: are you my long-lost twin? I did the EXACT same thing with a B&B Italia Harry.
Ken Nemeth: I don't really think I'd put BoConcept in the same league as DWR. Aside from not selling the classics, their design quality is more banal and manufacturing requirements less rigid, even taking into account DWR's recent outsourcing to China to offset the rapidly rising cost of European-sourced furniture.
Eric Vos: DWR's list prices for Knoll & Herman Miller are less than the manufacturers' suggested prices for dealers. The difference is that the dealers have a fair amount of pricing leeway for customers buying en masse, and DWR does not. DWR gets a considerable amount of business from small companies who can't buy in volume for this exact reason, in fact.
Nadina Cole-Potter: DWR does almost zero newspaper advertising, period. Print newspaper is a dying, ineffective form of advertising, and DWR has always had considerable success marketing via catalogs and their Web site. Unlike the other stores you mentioned, it has a national brand identity, and when they enter a new market I assume they always e-mail everyone already receiving their catalogs to let them know.
Anyway. I don't know any of the current upper management (though I've heard stories about the infamous VP), but I do know two people there at the very beginning, and they're just as sad to see what's happened to the company as I have.