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Sur La Table, a Seattle-based seller of kitchen gadgets ranging from carving knives to casserole dishes, says it's benefiting from America's food obsession and will accelerate its store openings after a bit of a breather last year.

Sur La Table announced Wednesday it plans to end 2010 with seven more stores than it had in 2009, bringing its nationwide total to 82.

It already opened a new location in King of Prussia, Pa., and expects to open the remaining six later this year in the Boston area; Troy, Mich.; New York City; South Florida; and Houston. It also will relocate two stores.

Sur La Table had been expanding at a rate of nine or 10 new locations annually for a couple of years when the financial-sector meltdown of late 2008 caused "a major drop-off" in shoppers visiting its stores, said Chief Executive Jack Schwefel.

The privately held company pulled back to two new openings last year, including one at The Bravern in Bellevue.

Although Schwefel declined to give details about the company's finances, he did not dispute data published in the Puget Sound Business Journal estimating it had sales last year of about $203 million, up from $170 million the year before.

"Sales are extremely strong," he said. "I think America is obsessed with food. And in an unsure economy, they're a little more cautious about eating out. The idea of trading in a $150 meal for a quality piece of cutlery or cookware makes a lot more sense."

Sur La Table's sales declined for about five months, according to Schwefel, then picked back up in spring 2009. Now, Sur La Table plans 10 to 15 new locations annually for the next few years, he said. He noted that a tough commercial real-estate market has enabled the company to strike favorable lease terms with property owners.

"Our landlords see how well we're doing, and there aren't that many great retail stories in 2010," he said, adding that the expansion is "purely self-capitalized," meaning the company's own money is being used to pay for it.

Still, Sur La Table, which opened its first store at Pike Place Market in 1972, faces plenty of competition. Many upscale grocers devote large sections of their stores to kitchen gadgets. Amazon.com recently joined with Seattle restaurateur Tom Douglas on a new cookware line.

And San Francisco-based Williams-Sonoma posted a 10.6 percent increase in sales at stores open at least a year for the first quarter, compared with a 15.4 percent decline for the same period in 2009. The chain plans to end 2010 with 257 stores, down from 259 at the end of 2009.

To compete, Sur La Table is making changes to its website, including expanding the number of products that can be bought online and upgrading its gift-registry program, Schwefel said.

Also, the company will soon handle all of its customer service at an in-house call center in Brownsburg, Ind., its distribution hub. The company has outsourced its call-center operations for the past five years, Schwefel said. "I sleep better at night knowing that when a customer calls into our 1-800 number, they only speak with a Sur La Table employee," he said.

Posted by Veronica Silva Cusi, news correspondent

Source: http://seattletimes.nwsource.com

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