Drexel stores set in Chicago
Smithe's 5 franchised units will be mfr.'s first in area
By Powell Slaughter -- Furniture Today, June 24, 2002
ITASCA, Ill. — Top 100 retailer Walter E. Smithe Furniture will roll out five Drexel Heritage stores in metro Chicago, with the first slated to open by first-quarter 2003. They will be Drexel's first franchises in the area.
The move marks a major commitment by Smithe, a new Drexel Heritage customer and an important midpriced to high-end retailer in Chicagoland.
The rest of the stores will open over the next three years. Walter E. Smithe's new Oakbrook location, set to open later this year, also will include a 15,000-square-foot Drexel Heritage gallery.
In addition, Smithe will offer Drexel Heritage product in its 13 namesake stores, which sell goods from a variety of manufacturers in a lifestyle format. The company also operates an outlet store.
Walter E. Smithe will develop a separate division to oversee its Drexel Heritage business.
"Drexel Heritage has one of the strongest brand names in the industry and has a strategic plan in place that will take its dedicated store program to the highest level," said Walter E. Smithe, president and chief executive officer of the 65-year-old, family run retailer.
"We're confident in the focus that (Drexel parent) Furniture Brands International brings to the store program, the product direction they're taking, and their commitment to partnering with the retailer to enhance profitability," he said.
Smithe emphasized the Drexel Heritage stores will be a separate business from Walter E. Smithe Furniture, which continues as the heart of the retailer's operation.
"We see this Drexel Heritage business as an opportunity to extend the breadth of our reach to consumers in the Chicago area," he said. The partnership reflects Drexel Heritage's efforts to target major markets where it doesn't have a high profile now.
"Walter E. Smithe recognizes that a growing segment of consumers is interested in shopping for nationally branded product in a dedicated store environment," said Jeff Young, Drexel's president and CEO. "The dynamic expertise of Walter E. Smithe, paired with the strength of the Drexel Heritage name, will be a winning combination for the Chicago market."
Smithe's Drexel Heritage stores will average around 12,000 square feet, said Lenwood Rich, executive vice president of sales and marketing at Drexel Heritage.
"Walter E. Smithe has demonstrated, first, that they know location and, second, that they know retail," Rich said. "They have one of the best sales training programs in the industry."
Negotiations are under way for store locations, so the companies did not release the site of Smithe's first Drexel store.
Walter E. Smithe Furniture had furniture, bedding and accessory sales of $68.3 million in 2001, according to Furniture/Today's Survey of Top 100 U.S. Furniture Stores. The company ranked 81st on this year's list.
Drexel Heritage plans to open nine dedicated stores in 2002, and 12 more in 2003.
| Ready to toast their Chicagoland partnership are Lenwood Rich, left, Drexel Heritage; Timothy Smithe, Walter E. Smithe Furniture; Jeff Young, Drexel Heritage; and Walter E. Smithe III, Walter E. Smithe Furniture. |
