New Gallery store targets upscale Houston market
By Clint Engel -- Furniture Today, March 9, 2009
HOUSTON — Gallery Furniture opened a new 22,000-square-foot satellite store in the Galleria mall area last week, featuring a large youth bedroom display from Berg and other upscale lines as the Top 100 company continues to broaden into the high end.
“We're excited about getting in there and seeing what we can do,” said Jim McIngvale, owner.
The satellite space includes a dedicated gallery of high-end source Kreiss and other goods from the top tier of price points at Gallery's main 98,000-square-foot showroom in Houston. McIngvale said he's excited about seeing what sales per square foot it can produce, given the high-end bent.
“We'll have a heavy Berg presence over there because it's a high-end neighborhood with a high-end children's learning store nearby,” he said.
Berg, which Gallery has been carrying for less than a year, also ties into another strategy Gallery initiated several months ago — sourcing the bulk of its youth furniture domestically. A year ago, the mix was about 50% imports. Now it's more like 20%, McIngvale said. Gallery's other key domestic sources for youth are Legends and Trendwood.
“It's easier to get (domestic product), it turns better, it's quality, and as far as Berg goes, with higher price points, we're selling $3,000 bunk beds right and left that we could never sell before,” he said.
McIngvale added that he can get shipments once a week with Berg, and doesn't have to purchase containers of product.
Berg Vice President Almog Lieber had high praise for McIngvale and his team. Lieber said he visited Gallery's main store when the first Berg samples hit the floor in July, and said the retailer quickly accessorized the display with linens and other items for kids.
He said McIngvale is one of the few retailers to realize “too much (furniture) is being done outside this country” (Berg manufactures in New Jersey), and that there is something to gain from selling high-value, higher-ticket items.”
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