Sofa Express to get Seaman's Ohio stores
By Clint Engel -- Furniture Today, February 10, 2002
Groveport, Ill. — Sofa Express is set to enter Cleveland and two other northern Ohio markets with the acquisition of Seaman's eight locations in the state.
Sofa Express, a Top 100 living room and family room specialty retailer, is assuming the leases on Seaman's five stores in Cleveland, two in Akron and one in North Canton — a move that will take its store count to at least 27 this year.
All three markets are new for Sofa Express, which has nine stores in its home market of Columbus, six in the Cincinnati area, three in Dayton and one in Indianapolis. The purchase price was not disclosed.
"We're excited about it," said company President Ken Paul. "We've been looking at that (northern Ohio) market for the last couple of years — looking for the right opportunity to enter it.
"So much of retail business is location driven. It was important for us to get a lot of great locations quickly, and this opportunity certainly affords us that."
Paul would not project sales for 2002. Last year, he said, the company opened five units in existing markets and Indianapolis, finishing with 18 stores and furniture bedding and accessories sale of just over $90 million, up 35% from $66.5 million in 2000. A ninth Columbus unit opened last month.
The company has additional expansion plans for this year in existing markets, but Paul would not disclose details.
Woodbury, N.Y.-based Seaman's, now part of Levitz Home Furnishings Inc., entered Ohio in 1995 when it acquired the leases of the former Bakers Furniture locations in Cleveland and Akron. Under a new growth strategy, LHFI wants to focus its attention on markets in the Northeast and West where it has the greatest density of stores.
"This was a difficult decision for us to make," said Alan Rosenberg, LHFI president and chief executive officer, although he called the deal "a winning situation for both companies."
Seaman's will clear its inventory in a sales promotion over the next 45 to 60 days, then transfer the locations to Sofa Express, he said.
Paul estimated that Seaman's stores in Ohio range from about 25,000 to 35,000 square feet and will work well for Sofa Express, which has a wide range of showroom sizes — from 6,000 square feet for a leather specialty unit to nearly 80,000 square feet for a Cincinnati store.
He said Sofa Express expects to stick with "pretty much the same" suppliers in the new locations. Key suppliers to the retailer, which concentrates on quick delivery of both in-stock and custom-order upholstery, include Hickory Hill, Lane, Klaussner, Natuzzi, Rowe and Viewpoint Leather.
"We see tremendous positioning for Sofa Express," said Julius Feinblum, president of Julius M. Feinblum Real Estate, which acted as a consultant in the real estate deal. "They're used to the Ohio market. They will be highly successful. The back end will be covered by their existing (distribution operations) and we see future growth filling in."
-
Levin Opens 14th Store
Jul 22, 2011 -
Mattress Firm Eyes Growth
Jul 8, 2011 -
Mattress Firm says it aims to grow to 2,500 stores
Jun 16, 2011 -
Nadar's to open third store in California
Mar 29, 2010
Specialty retailer LoveSac introduces new store design
Kincaid Furniture honors Jimmy and Rosalynn Carter for Habitat work
Belfort Furniture, Lawrance Furniture are NHFA Retailers of Year
Omnia Furniture ends relationship with Kathy Ireland Worldwide
Singapore furniture show expecting increased turnout
VIEW ALL GALLERIES
