Retailers: Let's deal!
But buying is likely to be conservative
By Clint Engel -- Furniture Today, October 14, 2001
HIGH POINT — HIGH POINT — With business in the tank for some and scant signs of an economic rebound on the horizon, most retailers say they're coming to market focused largely on deals and spot shopping.
Whether their business has held up or slowed down, many used the word "conservative" to describe their buying strategies. A few, however, think this is the perfect time to get aggressive and push for bargains from resources eager to turn around their own slumping sales.
Hot categories such as leather, youth bedroom, home office, home entertainment and imports of all stripes likely will be the hardest-shopped categories. Some stores, however, are concerned about import delivery delays in light of tighter security in the wake of the Sept. 11 terrorist attacks and subsequent counter-strikes.
"We're coming with our regular buying staff. We haven't touched that," said Bernie Moray, chairman of four-store Gorman's, based in Southfield, Mich. "However, our purchases are going to be few and far between."
While sales and traffic began to show improvement during the Columbus Day weekend, business for the year hasn't exactly been booming, Moray said. Gorman's has had to be aggressive to get business, and the retailer still is taking delivery on new product from the April market.
"We're coming in to look and see if anyone has made any major changes," he said. "The way inventories are, if we buy one we'll have to kick one out."
Gorman's will be looking for major new designs, new categories or new pricing from core suppliers, which include Drexel Heritage, Stanley, Century, Lexington and Hooker.
Business has been challenging for Fort Myers, Fla.-based Robb & Stucky, although the stores that cater more to design clients have not been nearly as affected and "have taken us through the slowdown," said Clive Lubner, chief executive officer of the 13-store chain.
Robb & Stucky is getting aggressive in its advertising, but "we have no plans to simply throw ad dollars up against the wall," Lubner said. "Our efforts will be very targeted and designed to reach very specific demographic sectors.
"Our shopping list is ready for market, and it too is targeted at certain product styles within our assortment," he said. "We will not be shopping across the board, but rather filling in and seeking certain items."
The upscale chain also will be looking for "opportunistic buys," Lubner said. "My sense is that discounts are flying all the way around. Some manufacturers appear to be running scared, breaking from minimum pricing, which is suicidal."
Jake Jabs, owner of the Denver area's American Furniture Warehouse chain, also is seeking opportunistic buys. He expects American's total sales to be up about $20 million this year, but that has a lot to do with the deals he's already secured, such as low-priced but large computer desks from Bush and O'Sullivan, and jewelry armoires from Powell.
"We're looking for good buys," Jabs said. "We're going to be looking for imports because High Point is the only place where you can see imports in any quantity outside of going over there."
American has cleared a few upholstery slots on its floors, "so we have a little open to buy," he said, perhaps for new leather upholstery programs from China. Jabs also has his eye out for "doorbuster" promotional items that suppliers can deliver before Christmas.
With expansion on its plate and sales holding up well, Wolf Furniture also will be aggressive and on the prowl for bargains.
"I made some pretty radical changes in the line to eliminate fringe items so that I can come to market and take advantage of deals," said Gene Stoltz, vice president of merchandise for the Pennsylvania and Maryland chain. "Some vendors are hurting pretty good right now, and I think they'll be a little more aggressive (in pricing)."
Primarily, Wolf will be looking to strengthen its living room and bedroom offerings. Stoltz said price doesn't matter so much if the value is obvious. For a new store early next year in York, Pa., Wolf has made room for five or six of what he called "showstopper" settings, not necessarily part of the primarily midpriced store's core lineup.
Hershel Alpert, president of Alperts in Seekonk, Mass., said August and September business was ahead of last year, and October has started out strong. "We continue to be aggressive in our advertising and, in fact, have increased our advertising for October," he said.
Alperts carries a number of imports and will be shopping for more offshore values. "However, while we will be looking for deals, we are not sure what will happen to containers on the water as a result of increased security," Alpert said. "We need to balance between the values offered and a possible slowdown in the supply chain."
Jerry Hux, owner of Beverly Hall Furniture Galleries in Atlanta, is certainly not alone when he says, "We're going to be extremely conservative. We still have too much inventory. We're more interested in selling what we have than buying more furniture. But we're making plans for new products and programs."
Hux said he'll be shopping a couple of niche categories, including casual dining, but probably won't buy heavily.
Kelly Von Hemert of Von Hemert Interiors in Costa Mesa, Calif., also is planning to be conservative. Business is down this year for the two-store, midpriced to high-end retailer, but "that's not such a bad thing," she said. "We've had four years of phenomenal growth. We've fallen back but we're still way better than we were four years ago."
She said inventories are in line and "we'll be spending some dollars with major case goods lines and probably accessories. We're well-stocked in upholstery."
Los Angeles-based McMahan's is coming with its full contingent, planning to shop aggressively but buy conservatively. The company is pleased with business in the past month, said Vice President Taylor Ganz.
"We really don't have any huge holes we're specifically looking to fill," he said. "We'd like to find a youth import program that can offer the same values as our adult import program."
Bob Kaufman, president of Bob's Discount Furniture in Manchester, Conn., was surprised by how quickly business rebounded after the terrorist attacks. He is coming to market with a wish list, particularly items to promote on television.
He hopes to find exceptional values in imported dining room. "It's those super values that are driving the customers into our stores," Kaufman said.
Editor in Chief Ray Allegrezza and Business Editor Gary Evans contributed to this story.
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