Case goods sources meet 3 key challenges
By Thomas Russell -- Furniture Today, May 11, 2009
HIGH POINT — Retailers gave case goods suppliers at least three major challenges at the High Point Market: Develop stylish clean-lined transitional or casual contemporary product and/or updated traditional looks that resonate with the consumer, offer the best possible prices, and get the goods on retail floors ASAP.
Suppliers who met those criteria said they were rewarded with solid commitments and orders, despite low attendance.
A case in point is SLF, which showed nine bedrooms in its new SLF Direct program that features three-piece groups in transitional, contemporary and traditional footprints priced as low as $999, compared with SLF's typical range of $1,299 to $2,499. Based on the response, it expects to cut at least 80% of the groups.
“We just hit the right price point and styling at a time when the customer needed it,” said SLF President Greg Noe. “In looking at the market, we picked segments we felt there was opportunity in.”
At least four of the groups are in production and should hit retail by mid-July.
Hooker Furniture also sharpened its price points. Its new Envision program has nine bedrooms at a $1,995 retail price point for four-piece sets, which the company says is at least 25% below its usual pricing. Based on dealer commitments and orders, the company said it plans to cut all nine groups.
Dealers liked the prices and the largely transitional designs. They also liked the scaling, which is tailored to smaller homes.
“Some retailers that we haven't done business with in years have come in and ordered it,” said Bruce Cohenour, senior vice president of national accounts and business development. “Our dealers are looking for solutions and we offered it to them.”
A.R.T. Furniture said it did well with its A.R.T. II Generations program, which included four-piece bedrooms priced from $1,799 to $1,999, compared to a more typical $2,499 to $2,999. The same program offers two formal dining sets priced at $999 for a table and four chairs, compared to a more typical $1,999 for an A.R.T. set.
Case goods importer Trade Masters sharpened bedroom prices as well, offering several four-piece sets at prices ranging from a low of $599 to $799. Its groups typically fall in the $1,199 range.
Companies were able to lower some prices by moving to clean-lined, less labor-intensive styling, and by reducing scale. Companies such as West Bros., Lexington Home Brands and Aspenhome also offered a combination of clean lined and/or scaled-down looks.
Aspenhome's Destination bedroom dining room and occasional collection offered dealers a French Moderne-inspired look. A formal butterfly leaf leg table and four chairs in the collection are targeted to retail at $1,899.
“It is affordable luxury,” said Jena Hall, vice president of merchandising and design at Aspenhome. “It has been beautifully received by majors and minors.”
She added that the company also got good response to its transitional Origin collection, a small-scaled group made with bamboo veneers.
Exhibitors said retailers also like new functional features, including hidden jewelry storage behind mirrors, touch lighting in nightstands and electrical outlets in servers and nightstands.
While companies are working to sharpen prices, they aren't abandoning the better and best parts of their lines.
Trade Masters, for example, offered several designer bedroom groups priced to retail in the $1,499 to $1,599 range.
“The retailer is still going to put (higher-priced goods) on their floor,” said Brad Proesch, vice president of marketing and sales. “We just want to give them an opportunity to buy it from us.”
Pulaski said it did well with new transitional and updated traditional bedroom groups priced at $1,999 retail. However, its most successful group was a European traditional bedroom called Edinburgh, with a four-piece set targeted to retail at $3,499.
“It's got to look like a lot more than it is (priced at),” said Page Wilson, vice president of sales and marketing. “It doesn't necessarily mean being cheap.”
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