Ethan Allen shows revamped Chicago store

Emphasizes eclectic looks, design capabilities

Clint Engel -- Furniture Today, June 19, 2009

CHICAGO — Ethan Allen President, CEO and Chairman Farooq Kathwari met here Thursday with interior designers and the media for a tour of the company's revamped regional flagship store.

One of the settings in the updated Ethan Allen Design Center in Chicago shows the company’s Villa Lifestyle, described as “serene yet strong, pedigreed while also modern.”

Kathwari said the company-owned Ethan Allen Design Center was renovated along the lines of its Manhattan flagship store that opened about a year ago. It emphasizes eclectic looks and lifestyle displays and Ethan Allen's expanded offering, which now leans toward a more modern perspective on classic designs.

The downtown store on North Halsted Street has 13,300 square feet of display on two levels, and plays up Ethan Allen's interior design capabilities with a design studio that is nearly double the size of the former space. The studio includes natural light and neutral colors to keep the attention on whatever fabric selections clients are making.

Kathwari said the Chicago renovation and his trip here were a reflection of Ethan Allen's continuing investment in its future. He said he'll visit company designers across the country, "declaring and end to this recession."

"We have a lot of initiatives (I'm discussing) but we're also saying things are bottoming out and we have to get ready for the next phase," he said.

The response from employees has been positive, he said. He believes that comes from a mix of hope and some signs that things are improving, including a rise in consumer confidence last month.

While Ethan Allen's sales and earnings have suffered with most in the industry, the Top 100 maker and retailer of upscale home furnishings has remained firm with its "everyday good value" philosophy, Kathwari said. He said Ethan Allen hasn't been burdened with excess inventory like many suppliers because of its custom-order orientation, so it hasn't really needed to do much discounting.

The closest it has come to a discount-like promotion may well be a program that starts today - an offer of 86 fabrics for custom upholstery under a single new value grade. That promotion, Kathwari said, recognizes that consumer are looking for something special, but it keeps the focus on Ethan Allen's custom capabilities while not straying too far from its everyday value message.

He said Ethan Allen has tolerated sales declines rather than offering excessive discounts as it waits for the climate to change.

"But fortunately now I think there are some glimmers of hope," he said.