Furniture.com, Leon's join forces
By Brian Carroll -- Furniture Today, April 15, 2005
Waltham, Mass. — Furniture.com and Canadian retail powerhouse Leon's Furniture are joining forces to sell furniture, appliances and electronics online to Canada's 32 million consumers.
The two companies have signed an agreement that gives Leon's exclusive rights in Canada to Furniture.com's Web address and online sales and customer service e-commerce platform, billed as a fully transactional solution that provides, among other things, order status, delivery dates and a bevy of account information.
The agreement takes Furniture.com international and introduces it to two new retail categories, appliances and electronics.
"Our mission (is) to help drive Leon's sales, streamline Leon's customer service and expand Leon's operations," said Carl Prindle, president and CEO at Furniture.com. "We will attract new online consumers and drive incremental sales for Leon's, as well enhance their already highly respected operations and array of customer services."
Prindle said he was attracted to Leon's because of its consistent record of sales and profit growth, and because the retailer is a leader in technology.
Terrence Leon, the retailer's president and chief operations officer, said Leon's strengths include "a rich tradition of offering high-quality merchandise and superior customer service," while Furniture.com offers the convenience of online shopping and capabilities in customer service and reporting.
Furniture.com is expected to add "a high percentage of Leon's inventory" to its Web site during the second half of 2005, Prindle said. The Internet company also will work with Leon's to develop a separate e-commerce Web site for Leon's current Web address, www.leons.ca.
In the United States, Furniture.com's retail partners include Levitz and Seaman's, owned by the same parent, Resurgence Asset Management, and the Harlem Furniture chain.
Visitors to Furniture.com's U.S. site view about 4 million items per day and add $15 million in products to their online shopping carts each week, Prindle said.
Furniture.com's assets and Web address were acquired for $1 million by a holding company set up by Resurgence Asset Management in September 2001. The original Furniture.com filed for Chapter 11 bankruptcy protection in November 2000. The company re-launched in April 2002.
Founded in 1909 and based in Toronto, Leon's is a publicly traded, high-impact promoter that currently operates 57 corporately owned and franchise stores in every Canadian province except British Columbia, and is set to open two more units soon.
