Economic challenges forcing positive changes
Jerry Epperson -- Furniture Today, March 30, 2009
I have a longtime friend who retired late in 2008. He and his brother had acquired their father's successful retail furniture business, and they continued to open more stores, expand existing store units, and became a very important factor in their markets. While I have never asked to see his financials, his stores were consistently profitable, even in difficult times. He retired to spend more time with his great wife and family, and I suspect he has found time to play some golf.
We would see each other at markets and occasionally at other industry events and I always learned from his insight, especially into his sources and his strategy to compete in his locations. He really knew his business and together with his brother had a strong management team.
In a conversation recently with some mutual friends, someone noted that retiring last year was a great move with perfect timing. Was it?
In a recent e-mail exchange with Marty Cramer, the new president of the Western Home Furnishings Assn., Marty said he was enjoying today's challenges because it was making him think out new strategies.
I agree. We have seen more of our retailers and their sources make serious changes in the last six months than we have seen in the past 10 years. Everyone is finding efficiencies, renegotiating contracts, cutting waste and carefully evaluating their business model.
We are already hearing about some new products and efforts by sources to go after some new routes of distribution. Retailers are aggressively seeking new customers. There is no question that media space or time is available at great prices these days, and there are plenty of empty stores available.
It appears retail firmed up in mid-February and we may have bounced off the bottom. Consumers have reduced spending, are paying off debt and have increased their savings, all of which are positive for the future. Economic incentives put in place over the past year should have a growing impact in the coming months.
In the past few weeks we have spoken to several upholstery factories that are running overtime, some importers that are showing year-to-year gains, and a couple of domestic wood furniture sources that are doing OK. In some markets, the surviving retailers are doing surprisingly well.
We believe the coming months will see some very interesting developments. Stay tuned!
-
Closings spell opportunity
Jan 18, 2012 -
Kuo family plans to bring Robb & Stucky to China
Jun 8, 2011 -
Buyers want what works
Feb 1, 2010
VIEW ALL GALLERIES
