Crate & Barrel acquires home decor brand Hudson Grace

Dive Brief:

Crate & Barrel on Tuesday announced the acquisition of Hudson Grace, a San Francisco-based brand selling home decor, entertaining and gift products, according to a company press release.
The global home furnishing brand aims to use its digital presence to help grow Hudson Grace's e-commerce business.
While no specific date has been announced, Crate & Barrel said it will begin offering an edited Hudson Grace collection in select stores in time for the holidays.

Dive Insight:

Crate & Barrel's acquisition of Hudson Grace, while relatively small, may indicate the company is exploring options with smaller format stores.

Hudson Grace, which currently operates five California stores and one Atlanta store, is known for its "modern tabletop and entertaining essentials evoking the coastal California lifestyle," according to the release. The edited collection, which will be available in select Crate & Barrel stores by the holidays, will also give Hudson Grace access to markets it hasn't yet entered.

The home decor brand was founded by retail veterans Monelle Totah and Gary McNatton. Prior to founding Hudson Grace, Totah served as vice president of design and merchandising for Williams Sonoma and McNatton served as senior vice president of personal care for Gap. The pair will continue leading all aspects of the brand, and it will remain a stand-alone business, the company said.

Crate & Barrel, which said 47% of its sales come through online channels, hopes to use its own expertise to grow the digital footprint of the Hudson Grace brand.

"We're excited to welcome Hudson Grace and look forward to focusing our digital expertise on creating a wider audience for the brand," Neela Montgomery, CEO of Crate & Barrel, said in a statement. "Hudson Grace has an entrepreneurial spirit, boutique feel and curated mix of new and vintage product that enhances our current brand portfolio."

Exploring smaller format stores is becoming more popular in the home goods space as well. Ikea, a retailer known for its large warehouse stores in suburban areas, in April opened its first U.S. urban planning studio in New York City.