Havertys sets $58M in capital spending for '04
Clint Engel -- Furniture Today, November 10, 2003
Atlanta — Havertys plans more capital expenditures next year than ever before as it opens five new stores, expands two others and continues to roll out its consolidated distribution program.
In a Securities and Exchange Commission filing, the Top 100 chain said it expects capital spending in 2004 to be about $58 million, up from the $24.3 million expected before this year ends. The spending plan tops the previous high of $45 million in 1995.
Havertys wouldn't disclose details on its expansion plans, noting previously announced plans for a store opening in Columbia, Md., next year and another in northern Virginia that may take until 2005 to open.
Clarence Smith, president and chief executive officer, said most of the growth will be in existing markets. The company has 112 stores in 14 Southern and Central states.
"A good portion of (the capital spending) is for rolling out the next phase of our consolidated distribution program to Florida," he said, although he declined to elaborate.
In the SEC filing, Havertys said it would "make investments in distributions and information infrastructure." The outlays include the purchase of its currently leased home delivery center in Virginia and the opening of a new delivery center in central Florida, the filing said.
Havertys expects its retail square footage to increase 4% next year, compared to about 3% this year over 2002.
