Price promotions may set us back years
Carole Sloan, Senior Contributing Editor -- Furniture Today, February 23, 2009
Well, it looks like the economy is transforming the furniture business — more than just in terms of consumer interest, but in price points as well.
A spate of recent retail promotions on bedding in particular has brought this situation into sharp focus.
Looking at ads from around the country, it seems like $399 for a queen set is the new norm for promotions. It appears to have started back just before the October High Point Market with a promotion at Macy's that combined a massive bedding sale with an opening price point of $399 queen with a similar lowball promo for decorative bedding and basic bedding.
It didn't take long for retailers around the country to jump aboard that bandwagon.
A similar thing is happening in the upholstered furniture segment where $299 and $399 as opening price points are becoming the norm for retailers.
Neither situation is comfortable or pretty to watch since the pricing pit seems to be bottomless. Who knows what next week or month will bring?
As a highly respected friend who is an executive of a major retailer recently explained the situation to me, this entire price degradation movement comes as an effort to drive foot traffic into stores. That's a critical goal — without customers in the store all the great product in the world would be there for naught.
However, destabilizing the product development and marketing that has taken place over recent years will also create an aura of distrust among consumers. How can a business that has championed the positives of $1,000 bedding for health, comfort and wearability, and sofas at $900 and $1,000 for comfort, quality and style, expect consumers to accept these price points again when times are better?
It took the better part of a decade to convince consumers that better goods are better.
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