The Exchanges

Q But then, but then by like 1995, you had expanded to 60 stores. So what, like, what happened? How did you guys, why did you decide to grow so much faster?

A Well, we reached a different era where it was important to have scale to do the things we had to do with buying merchandise. So you had a guarantee to a factory you'd buy a certain amount of a product to make sure we were the only people in the United States that would be carrying it. And you We got a sense that you needed scale to get there. And that's what we started doing. In 1990, we built a flagship store in Chicago, which really helped launch our expansion, because then every landlord, every shopping mall wanted a crate and barrel building. And we were a big attraction because we drew in a lot of customers. And what happened starting in that big expansion was landlords started paying for a lot of the build out of the store. Building of the building and whatever. So we didn't have to take as much of our financial risk ourselves, because the landlords built these stores, a lot of these stores for us.

AI assessment note: “we reached a different era where it was important to have scale”

Q But then But then by, like, 1995, you had expanded to 60 stores. So what, like, what happened? How did you guys, why did you decide to grow so much faster?

A Well, we reached a different era where it was important to have scale to do the things we had to do with buying merchandise. So you had a guarantee to a factory you'd buy a certain amount of a product to make sure we were the only people in the United States that would be carrying it. And you We got a sense that you needed scale to get there. And that's what we started doing. In 1990, we built a flagship store in Chicago, which really helped launch our expansion because then every landlord, every shopping mall wanted a crate and barrel building. And we were a big attraction because we drew in a lot of customers. And what happened starting in that big expansion was landlords started paying for a lot of the build out of the store. They'll Building of the building and whatever. So our, we didn't have to take as much of our financial risk ourselves, because the landlords built these stores, a lot of these stores for us.

AI assessment note: “we reached a different era where it was important to have scale”

Q So, so in 98, you agreed to stay on for a fixed amount of time and to continue to run the company?

A Exactly. And their basic philosophy was to acquire businesses like ours and let the management continue running it. And our success was we tripled the size of the company, we quintupled the profits of the company, and we were able to grow. But more important, they, after we were with them a year or two, they said, you got to really look into this internet. This was What was it? 99, 2000. We said, what's the internet? And then they started telling us. And early on, then we started developing our internet business, which today represents about 38 to four percent of all the sales at Crate and Barrel. And customers buy an enormous amount of furniture on the internet, which is hard for me to, you know, believe.

AI assessment note: “Exactly. And their basic philosophy was to acquire businesses like ours”

Q So, so in 98, you agreed to stay on for a fixed amount of time and to continue to run the company?

A Exactly. And their basic philosophy was to acquire businesses like ours and let the management continue running it. And our success was we tripled the size of the company, we quintupled the profits of the company, and we were able to grow. But more important, they, after we were with them a year or two, they said, you got to really look into this internet. This was What was it? 99, 2000. We said, what's the internet? And then they started telling us. And early on, then we started developing our internet business, which today represents about 38 to four percent of all the sales at Crate and Barrel. And customers buy an enormous amount of furniture on the internet, which is hard for me to, you know, believe.

AI assessment note: “Exactly. And their basic philosophy was to acquire businesses like ours”

Q How much of, of your success do you attribute to just your talent and your smarts and your hard work, and how much do you attribute to luck?

A Well, the lucky part was our timing. It was just at the appropriate time to be going to Europe to find new contemporary design and tabletop and furniture and things. I think it was a talent of attracting people and making them feel like we were all in it together that I didn't realize I had, nor did I realize I was good at for many, many years, but I was, and I think that had a lot to do with it. I was lucky to be married to Carol Siegel, who had this enormous talent, and, you know, we started out to create something that was going to be different and beautiful and wonderful, and this is still in the culture of the company in great depth, and they're still doing very well.

AI assessment note: “the lucky part was our timing... I think it was a talent of attracting people”

Q How much of, of your success do you attribute to just your talent and your smarts and your hard work, and how much do you attribute to luck?

A Well, the lucky part was our timing. It was just at the appropriate time to be going to Europe to find new contemporary design and tabletop and furniture and things. I think it was a talent of attracting people and making them feel like we were all in it together that I didn't realize I had, nor did I realize I was good at for many, many years, but I was, and I think that had a lot to do with it. I was lucky to be married to Carol Siegel, who had this enormous talent, and, you know, we started out to create something that was going to be different and beautiful and wonderful, and this is still in the culture of the company and in great depth, and they're still doing very well.

AI assessment note: “Well, the lucky part was our timing... I think it was a talent of attracting people”

Q And what, what made you think, like, what gave you the confidence that you could pull off running a business?

A Because, you know, we had grown up, her family had actually been in the retail business, apparel business, and we were both very good at selling. My family had been in the restaurant business, and in all of those businesses, it's all about service, it's all about selling, and in a sense, my, you know, I grew up with an immigrant father and mother, And the whole family on busy days had to work in the restaurant. So there was this background that we both had, and we loved beautiful things. Obviously, the motivation of going into business was to find beautiful things for other young people, but if we could buy things from Europe directly and just mark them up normally as if you bought them domestically, not take a big margin, but take a short margin, we could offer dramatically better pricing at more unique products You know, that people had never seen before.

AI assessment note: “her family had actually been in the retail business... and we were both very good at selling.”

Q I mean, what, what made you think, like, what gave you the confidence that you could pull off running a business?

A Because, you know, we had grown up, her family had actually been in the retail business, apparel business, and we were both very good at selling. Uh, my family had been in the restaurant business, and in all of those businesses, it's all about service, it's all about selling, and in a sense, my, you know, I grew up with an immigrant, uh, father and mother, and the whole family on busy days had to work in the restaurant. So there was this background that we both had, and was, we loved beautiful things. Obviously, the motivation of going into business was to find beautiful things for other young people, but if we could buy things from Europe directly, and just mark them up normally as if you bought them domestically, not take a big margin, but take a short margin, we could offer dramatically better pricing at more unique product, you know, that people had never seen before.

AI assessment note: “her family had actually been in the retail business, apparel business, and we were both”

Q So when you had to step down, was that Hard for you? Like this thing that you built?

A Well, of course it's hard. You know, I didn't realize I'd have that much energy left at 70, but I had enormous energy. But in the last two, three years, I've been doing things in our family office of finding new young entrepreneurs we could support. And when I advise young people today, I said, look at the job and say, are you going to love it? And is it going to be something you can devote your life to? And work 10:12 hours a day, and work six, seven days a week. I mean, Then you'll be a success, but don't go to do something because of a salary or a title. And I think that's the thing we picked up from the European friends of ours who, you know, have a different pace of life and a different focus. And, you know, that's how it should be. It shouldn't be, I want to make a lot of money. How do I do it? It's, what do I love to do? And if I do it really good, then we will make money.

AI assessment note: “Well, of course it's hard. You know, I didn't realize I'd have that much energy”