American Home nears completion of distribution center expansion
By Clint Engel -- Furniture Today, April 7, 2002
ALBUQUERQUE, N.M. — American Home is completing an 180,000-square-foot expansion of its distribution center here, a move designed to improve customer service and support expansion plans.
The Top 100 company, formerly known as American Home Furnishings, is spending about $5 million to expand the high-racked distribution complex to about 350,000 square feet. The project should be finished by early May.
"We are planning for the future by creating a more efficient facility where we have the space to quickly and accurately handle merchandise," said Lee Blaugrund, president and chief executive officer of the nine-store company, which operates as American Home, American Warehouse Plus, American Home Design and, most recently, American Home Outlet.
Blaugrund said the distribution center was running too close to capacity, which led to damaged product, among other things. There were not enough outbound bay doors, the customer pickup area was too small, and the space needed to rotate product through the facility and on and off the floor was inadequate, he said.
"The new space will allow us to spread out and grow, and move in a little more inventory," Blaugrund said.
American Home also will be better able to segregate special classes of inventory, creating better access for the fastest-moving products, and should realize improved profitability and better service in both customer pickup and in delivery, he said.
With the expanded distribution center, Blaugrund said American Home should be able to eventually double volume in its New Mexico markets. He wouldn't disclose sales figures for the state.
In addition, the company plans to add about 75,000 square feet of selling space to its Albuquerque flagship store, the result of an expansion and a conversion of about 40,000 square feet of space now used to warehouse lamps, accessories, rugs and other items.
With the added selling space, the store will broaden its offering in such key categories as leather upholstery, youth furniture and hand-made rugs, Blaugrund said, although he doesn't expect to add any resources.
Key suppliers for the company include Broyhill, Stanley, Action Lane, Natuzzi, LeatherTrend, and Sealy and Simmons in bedding.
No timetable has been set for the Albuquerque store project. Separately, the retailer is preparing to remodel its Tucson, Ariz., flagship store and should be done with that project in about 90 days.
Last year, American Home generated an estimated $89 million in furniture, bedding and accessory sales, down slightly from $90 million the year before. In October, it opened American Home Outlet, its fifth store in the Albuquerque market, to help move distressed goods and take advantage of special buys. The outlet store is open Thursdays through Sundays
The company also has two stores in Tucson and one each in Santa Fe and Farmington, N.M.
| Work on an 180,000-square-foot expansion of American Home's Albuquerque distribution center is expected to be completed by early May. |
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