The Wall Street Journal-20080129-Crate - Barrel Selects Next CEO

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Crate & Barrel Selects Next CEO

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Longtime Crate & Barrel President Barbara Turf will take over as chief executive when company co-founder Gordon Segal steps aside from day-to-day management of the home-furnishings retailer May 1.

Mrs. Turf, 63 years old, joined the company as a part-time sales representative in 1968 at the first store in Chicago. After rising to store manager, she established herself as a master merchandiser and rose to become president in 1996. Along the way, Crate & Barrel grew to a $1.45 billion, closely held company with 7,500 employees and 160 stores, all of them in the U.S.

"Under my leadership, we'll be looking to expand beyond the border of the United States," Mrs. Turf said yesterday. "I think there's a lot of opportunity for a brand as strong as ours."

Mr. Segal, 69, and his wife opened their first home-furnishings store with $17,000 in 1962. The company was profitable almost immediately but through the 1980s added just one or two new stores a year.

About 25 years ago the company began selling furniture, which now accounts for about half of its revenue. Mr. Segal said the housing crunch hasn't affected sales. Despite a weak holiday season, he said 2007 sales were up 8.5% over 2006.

In 1998, Otto Versand of Germany bought the company, and Crate & Barrel began opening eight to 10 stores a year, including CB2, which targets a younger audience, and Land of Nod, which carries children's furniture.

Mrs. Turf said the strength of the brand and the nature of their overseas ownership was prompting her to consider expanding internationally as well as opening new divisions.