High Point — Beyond the Top 100 furniture stores say they are facing unusual and unpredictable business conditions.
Several say that during the past 18 months, business has been running hot and cold like a shower in a cheap motel. Others say they are experiencing soft spots they've rarely encountered before. A few indicated that business is strong.
Among those enjoying the moment is Mike Albert, co-owner of Pilgrim Furniture City in Southington, Conn.
Fresh presentations
"Our business is up dramatically," said Albert. "We've done an awful lot of work in the store (in the) last 12 months. We've upgraded our exterior, and Connie Post just redesigned the interior, including a 2,500-square-foot skylight.
"Words cannot describe what that does for the entire store. It just shines and gives the place a warm, happy feeling that seems to have a direct impact on our customers."
Among those coping with spotty results is Tim Harris, president of Knoxville Wholesale Furniture in Tennessee. He said that May traffic was down, an unprecedented situation for his stores.
Still, Harris believes that business ought to perk up soon.
"Memorial Day was good, not great, but I see huge pent-up demand out there," he said, adding that "we just need people to have more confidence. The housing market has been red-hot for years, and that's the incubator for our industry."
Gary O'Reilly, owner of O'Reilly's Fine Furniture in Libertyville, Ill., said he, too, is adjusting to disappointing results, and the market hasn't responded to the normal stimulants.
"Business is definitely down, and I've never really had down years before," he said. Memorial Day weekend was on a par with a good New Year's Day, O'Reilly said, referring to his best event of the year.
Consumers seem to be holding back, said John Sedlak, founder and owner of Sedlak Interiors in Solon, Ohio. Asked whether business was more challenging now than in the past, Sedlak said, "We're dealing with middle- to high-income people who are a little hesitant to spend money. It's our job to help them through that."
Countering deflation
Case-goods deflation was cited by several retailers as a leading culprit contributing to the ongoing sales challenges. Jim Bright, president of Dunk & Bright in Syracuse, N.Y., said that he's dancing as fast as he can to handle increased unit volume, which is generating dollars only equal to last year.
Still optimistic because of a strong local housing market, Bright said he's looking to invest in a new warehouse.
"With our business up 10% or 15% the last two years, our storage needs have increased probably 45% even though the dollar value of my inventory is only 10% greater," he said. "I attribute that to selling a lot more units."
In response, most retailers said they are working to increase their average ticket by encouraging add-on purchases.
"People are buying more of a bedroom set now because they can afford it, so the tickets aren't suffering too much," said Larry Kurpiewski, president of Commercial Home Furnishings in Boise, Idaho.
