Home business could set pace in 2002, big store execs tell NRF
By Carole Sloan -- Furniture Today, January 20, 2002
NEW YORK — NEW YORK — Home business probably will outpace the rest of the store for general merchandise retailers in 2002, continuing the trend that began last year, several key executives said at last week's National Retail Federation conference here.
This year also is expected to be better than 2001 for specialty home furnishings retailers.
"While we are planning conservatively for this year, we see furniture growing with some developmental work we are doing with shelving, bath and kitchen cabinets and painted furniture," said William Podany, chairman and chief executive officer of Green Bay, Wis.-based ShopKo.
Furniture sales were "much better than the store" in the fall, he said, driven by key items including ready-to-assemble bedroom and a leatherette chair.
For Alan Lacy, chairman and CEO of Hoffman Estates, Ill.-based Sears, said he sees "a tough first half, and I'm optimistic about the second half. In total, it will be OK."
One important product for Sears is the mattress program, which rolled out to more than 400 stores in 2001 and will be expanded to another 20-25% of the company's 860 full-line stores this year, Lacy said. Sears also is considering offering mattresses in an expanded e-commerce program. But, he added, "We have no plans for freestanding mattress stores."
Also testing mattresses, in five freestanding bedding stores in metro New York, is Macy's East. Terry Lundgren, president and chief merchandising officer of Macy's parent Federated Department Stores, said the test stores are in residential neighborhood locations and are in varying layouts of 2,500 to 4,000 square feet. Although Federated sees the test running at least a year — the first opened last April — Lundgren said, "It seems we should be able to do business there."
Overall, he said. "Furniture business is OK. It is definitely mixed by divisions."
Gordon Segal, CEO of Northbrook, Ill.-based Crate & Barrel, said that "in the last three weeks, furniture picked up nicely. I think the downturn is over."
But Crate isn't resting on its laurels, Segal said.
"As a store, we are moving to a lighter, more colorful, more fun approach to merchandise. It's already on our first floor (tabletops, housewares, accessories) and it will be showing up in about four weeks in furniture....
"The economy last year made us think harder, rethink ourselves," he said. "We weren't able to just take the customers' money; we had to think how to interest them, how to sell."
"I think '02 will be better than last year," added Farooq Kathwari, chairman and CEO of Danbury, Conn.-based Ethan Allen.
But like others, he said the manufacturer-retailer saw a need to make changes to stay fresh.
"We started to reinvent ourselves last year — in every element of the business. Change is critical, but it has to be managed," he insisted. He declined to give details about what's different at the company, adding, "It is an ongoing thing."
| Podany |
-
Huck Finn's Reels in Shoppers
Oct 12, 2011 -
Closings spell opportunity
Jan 18, 2012 -
High Point Market sets educational seminars
Mar 9, 2010 -
Wolf Opens Consignment Store
Oct 12, 2011 -
Lubners Back in Saddle
Aug 3, 2011
VIEW ALL GALLERIES
