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PORTLAND, ORE. — While the name City Liquidators certainly communicates value, it does little else to describe this unconventional business.
As the name would suggest, the company operates a warehouse store that buys distressed inventory and, especially recently, orders originally intended for failing retailers.
But unless you live in the Portland market, you wouldn't know that this is a liquidation business with style and whimsy and a commitment to service.
Of course, Portland-area residents probably don't need any introduction to Walt Pelett, his wife Pam and their three kids. They are all on TV or in the newspaper often enough to be local celebrities.
Walt Pelett opened City Liquidators in 1977. His goal was to accumulate real estate, and the retail business was designed to keep his land and buildings productive. The store is in a four-floor, former industrial building.
The building is a 167,000-square-foot former warehouse east of downtown Portland. Also, the company has a 200,000-square-foot warehouse.
Originally, City Liquidators offered general merchandise and office furniture. "I thought about home furniture, but I wasn't impressed with the stores that I studied," Pelett said. However, since his low-cost warehouse building was so large and, therefore, ideal for furniture, he decided to become a "furniture store in disguise."
The lower level is dedicated split between office furniture and general merchandise, where the assortment there is an unpredictable mix of toys, tools and decorations.
The key to the entire arrangement, Pelett said, is the relationships he has developed with the factories. For instance, an item may be headed to a national chain, but it has minor imperfections so the chain refuses it. At the same time, the chain insists that it not go to a regional or national outlet because then the chain winds up competing with itself on an item that was supposed to be exclusive.
"We create real values for the customers, but our real strength is the warehouse," he said. "We can take large shipments."
Added Pam Pelett, who manages the home furniture department: "We buy anything if the price is right. My husband is crazy."
The second and third floors of the store are dedicated to home furniture. "You get up there, and you're blown away by a beautiful Italian sofa with a price tag that won't scare you," said Pam Pelett.
'Fun and funky'
Also vying for attention are a truckload of high-heel shoe chairs or hand chairs, your choice at $299. Core suppliers are Ashley, Sklar-Peppler, Stanton and Universal, but the closeouts add the spicey variety.
"We have a great following for the fun and funky, and that's what I hope we can keep doing," she said.
They also try to keep the atmosphere in the store fun and funky, as the owners frequently interact with customers and participate in the sales process. "If I see someone coming downstairs with a business card in her hand, I tell her that's nice, but we want to send her home with a receipt," Walt Pelett said. "People are a little bit shy, but once you open them up you can take them up and sell them."
Because of the store's commercials, the Peletts are easily recognized, and people seem to appreciate an opportunity to talk directly with the owners, Pam Pelett said. "We tell them at Liquidators you're going to get the treat or the treatment. People ... don't want that car-dealer treatment, but they do appreciate some personal service delivered with a little personality."
The furniture displays are packed tight, with merchandise constantly coming and going and nobody certain where all of it is. "We're chaos, confusion and madness," Pam Pelett admitted. "We tell people that if you're confused, we're not because we already know we're screwed up. Most of the time we're having a good time. We make it fun, and the customers love it."
City Liquidators also offers same-day delivery, for a $50 charge, as 90% of its sales are from stock. The Peletts, who acknowledge that their manual inventory system is out of date, credit their warehouse manager, Diego Cruz, for making this service a success.
"Nothing's a problem for Diego," Pam Pelett said. "We could get four containers in here in a week, and he handles it like it's nothing. We are super lucky to have him and his crew."
This immediate service is an essential element to City Liquidators' success with home furniture. "The available money is going to retailers who can give consumers immediate gratification," Walt Pelett said. "That's why we're always telling people we deliver every night to midnight. You ring. I bring. It's real old-fashioned and it's corny, but it works."
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| Interior of City Liquidators, Portland, Ore. |
City Liquidators at a glance
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| Pam and Walt Pelett |
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Founded in 1977 by Walt Pelett.
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Serving the Portland market with home furniture, office furniture and general merchandise.
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Niche: Promotional and mid-priced merchandise, closeouts, irregulars and inventory buyouts. Furniture selection will occasionally include step-up items and collections as buying opportunities present themselves.
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Display space: 167,000 square feet total with about 80,000 square feet dedicated to residential furniture.
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Warehouse: 200,000 square feet.
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Sales staff: Six people plus the owners.
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Key vendors: AGA, Ashley, Millennium, O'Sullivan Furniture, Sauder Woodworking, Stanton upholstery, Sklar-Peppler, Universal.
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Typical sofa price point: $599.
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2001 sales: $12 million total with 50% from home furniture.
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