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Value City launches Signature galleries

By Clint Engel -- Furniture Today, October 26, 2003

Looking to raise the profile of its proprietary furniture line, Value City as launched American Signature galleries in all 80 of its stores.

American Signature, which is at the top of the Value City price spectrum, occupies about the same space as before — about 20,000 square feet per store, or roughly half the average selling space of 40,000 to 50,000 square feet — but now the product is displayed together, said David Thompson, president of the Top 100 chain.

"The store-within-a-store concept allows us to give our customers the unique opportunity to experience both types of furniture shopping in one location," Thompson said.

When it was mixed in with more promotional goods, "it really took away the quality message of the American Signature product line," he said.

Now, the line is presented in design-oriented galleries that are sharply accessorized and include walls painted in colors that coordinate with the collections, which range from casual to classic to contemporary.

In seven years, Value City's American Signature line has grown from a few items into a full line.

Last year the retailer opened its first dedicated American Signature Home store in the Nashville, Tenn., market, and it now has 15 of the stores in Tennessee, Florida, Georgia, Virginia and Maryland, including the most recent addition in Tampa, Fla. The company said it plans to expand the chain throughout the South.

This spring, Value City changed its corporate name to American Signature Inc. —parent now to Value City Furniture and American Signature Home stores.

Still, Thompson said he doesn't expect American Signature sales to grow much in relation to overall sales, because the company continues to build both sides of the business.

The new gallery program was fueled by consumer research, said Jeff Maynard, American Signature vice president of marketing. "Regardless of their income bracket, people ranked style and quality as the top factors when purchasing furniture," he said.

Value City is introducing the galleries to consumers this month in an ad campaign that according to the retailer, delivers a strong but humorous message about "how others may see your home" with the theme, "Maybe it's your furniture."

One TV spot shows a little girl walking into her parents' room on a stormy night. Viewers see an old bed and dingy bedroom as the mother wakes up and asks the child if she's scared. When the girl says, "Yes," the mother asks if she would like to climb into bed with the parents. The girl looks around the room and at the bed and says, "Not really," as the theme line comes on screen.

"We use slightly exaggerated scenarios to get people to think about how their furniture affects their ability to entertain family and friends and to enjoy everyday family living, by implying the problem may be their furniture," said Maynard.

The ads position American Signature as the solution.

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