Casual sources working to help retailers strengthen business
By Marc Barnes -- Furniture Today, April 25, 2009
Industry observers say the last half of 2009 will show the home furnishings industry starting to make its climb out of the weakened economy, with some acceleration in growth possible next year.
But that's the future. Retailers, especially those in the casual furniture industry, are in the here and now.
They're at the beginning of an upcoming spring and summer season, reviewing their inventories and working to estimate what their foot traffic will be — working now to determine what they'll need and when they'll need it.
For their part, manufacturers and importers are finding ways that can help retailers win market share, whether through new offerings, changes in pricing or extending time for payments. The key, say many, is to be focused and intentional.
Lloyd/Flanders President Dudley Flanders said his company put together a new product line in record time, specifically to deal with the economy.
"We started at the first of December and, in a six-week period, we developed a brand new product line called Weekend Retreat," Flanders said. "It's a domestically made product that's designed to retail 20% to 25% under our normal price points."
In addition, Lloyd/Flanders has made factory-authorized sale dates more flexible. It developed Made in USA hangtags for domestic products and highlighted its 12-day delivery.
"There really is a tremendous reluctance of anyone to load up their warehouse in this day in time," Flanders said. "We feel the best alternative is to go with a supplier who can turn it around in a reasonable period of time."
Gene Saenger Jr., president of Ficks Reed, is picking up on a familiar national theme.
"We are looking at getting on board with President Obama by picking ourselves up and dusting ourselves off and getting to work," Saenger said. "We are in the TARP program, which stands for 'Transform A Room to Paradise.' "
TARP will involve concentrated promotions of in-stock products, delivered quickly, at a promoted price.
"We are trying to provide a real value that our dealers can take to their customers," Saenger said. "The product is as good as it always was, but we are trying to give dealers something to talk about in a more attractive price level for the customer who wants better quality."
Braxton Culler, president of Braxton Culler, said he also is focusing on product and delivery times. At this month's High Point Market, he will be introducing three products in outdoor — and offering two-week delivery times.
"That is one of the most important parts of this story right now, to have product available for quick delivery and the fabrics available to back the product up," Culler said.
At Domus Ventures, Dave Hill, manager of North American operations, said his firm is helping retailers through making some operational changes. The most significant is a new cross-dock program, in which containers come in and much smaller orders go out.
"They get the benefit of the container pricing," Hill said. "That's been beneficial for getting people who are reluctant to pull the trigger on a major investment."
Domus Ventures also has come up with some creative factoring and extended financing terms, which Hill says can help credit-worthy retailers survive the downturn without tying up their assets too deeply.
Similarly, Rebecca Price, manager of sales and marketing for Uwharrie Chair, said her company was offering promotions early this season for the first time. The offers include deep discounts on two best-selling chairs if they are used as floor samples and some advertising allowances.
"Usually, our dating happens during the September, October and November time frame," Price said. "This is the first time we have done this in February and it seems to be getting a positive response."
Eric Graham, senior director at Century Leisure, said his firm is helping retailers by introducing a new collection and a new color for an existing one, along with additional incentives to help boost sales.
"We are going to continue to put out good product to create the excitement that people that are used to," Graham said. "We have had some interesting opportunities, things coming to us and we are shipping them out in very short order. Basically, we are doing what we can to capture and work with the order."
At Three Coins/TC Castings, Susanna Powell said her firm is helping retailers by cutting prices on a cushion program and sourcing a new, high-quality product at a lower price point.
"We are also not having a price increase, which we normally do," Powell said.
Premarket has 39 companies so far
08/30/2009Sixty-four companies showing at premarket
09/06/2009
