Wickes to rev up growth
Chain aims for $1 billion within four years
By Clint Engel -- Furniture Today, May 22, 2005
Wheeling, Ill. — Wickes Furniture's opening of two metro Chicago stores this month is just the beginning of an accelerated growth plan for the Top 100 chain, which now aims to become a $1 billion retailer within four years.
Wickes opened a 40,000-square-foot showroom in the western Chicago suburb of Naperville, Ill., early this month, then followed a week later with a 37,000-square-foot store to the northwest in Algonquin. Both are based on a fresh, Rooms To Go-like format first introduced to a store in Downers Grove, Ill., in 2003 — back when RTG was a nearly 50% owner of Wickes.
The design has been tweaked since then, and the 31-store chain's growth plans have been scaled up considerably. Wickes now expects to open three new stores in Southern California by the end of the year and follow with a net 10 new stores in 2006.
"We're basically launching a strategic plan to get us to $1 billion in revenues by 2008, and we're a little ahead of the curve right now," said John Disa, president and CEO.
"We felt 10 (stores a year) is probably the number we're going to be comfortable rolling out. We're very focused on having a dominant presence in our current markets."
Wickes is adding its first new California store this summer in Murrieta. Another store under construction in Palmdale, Calif., is expected to open in September, and the third — in an unidentified market — should open by the end of this year.
The 10 stores planned next year will be located mainly in Wickes' two largest markets — Los Angeles, where it operates 10 stores, and Chicago, where it has 13. Disa declined to reveal specifics because all sites are under negotiation. He did say the company is looking at sites for two stores in greater Portland, Ore., where it has three now.
No new stores are planned yet for Wickes' five-store Minneapolis market.
In 2004, Wickes did an estimated $400 million in furniture, bedding and accessory sales, up 17% from the previous year, making it No. 20 on Furniture/Today's Top 100 list.
Wickes' owner Sun Capital Partners has given the nod to a $14 million capital investment in new planning and operating software, to be rolled out over the next 18 months.
One of Wickes' four markets will go live with the new systems by the end of the year, Disa said. The others will be phased in over the remaining 18 months.
"This is going to give us the capability to become national," Disa said. "We're at a point right now where it's very difficult to grow at the pace we want to grow with our old legacy infrastructure. You'll see a whole new Wickes when we come out of the project."
Changes began shortly after Disa came on board in March 2004, following Rooms To Go's sale of its stake in the company to its former partner, Sun Capital. Within six months, Disa had taken steps to improve Wickes' operations, strengthening management with new faces from outside the industry with expertise in distribution, inventory management and marketing.
Wickes took the best of what RTG brought to the table, including store design and a room-package approach, and tweaked the formula based on its own goals and target consumer.
The new Algonquin store has a clear Rooms To Go feel down to its architecture and layout, with lots of windows that flood the showroom with natural light. The interior is divided into quadrants with a center atrium and a wide, dark wood center aisle with metallic embellishments.
But the merchandise is presented a bit differently, with an emphasis on lifestyle collections. One of the largest areas is devoted to what Dave Mattea, national director of visual merchandising and display, referred to as the "Rustic Retreat" look, with dark-finished case goods and leather upholstery in a bomber jacket style. Near the front of this area is the new World Vineyards collection from Klaussner, sharply accessorized with wine barrels, wine glasses and other accents.
Other lifestyles include urban casual, a glitzy "Hollywood chic," contemporary, the formal side of traditional called "Canterbury Manor," and a less formal traditional, "European Tour."
Kris Woodcock, vice president and general merchandise manager, said the approach includes more use of accessories, which provide a "wow" factor for consumers.
The right doors of all armoires are left open, revealing pillows, candles and other accents that give Wickes another opportunity to add to sales tickets.
When Wickes opened in Downers Grove almost two years ago, it eliminated special orders and entire categories such as recliners and home office.
Since then, it has brought back a few recliners, upped its offering of casual dining and reopened a bedding department with mattresses from Sealy, Simmons and Nature's Bed. Mattress sales have gone "through the roof," Woodcock said.
Wickes also scaled back its youth offerings and reintroduced it in its five stores in Minneapolis, one of the youngest major metro markets in the country, Disa said.
Vendors at the opening of the Naperville store liked what they saw. Joel Stepakoff, senior vice president at Berkline/BenchCraft, called it the "best-looking Wickes store I've ever been in."
Jeff Cook, president and CEO of Magnussen Home, said, "The marketing strategy is really creative, and the store is fresh and upbeat. The accents are extraordinary. (The store) is packed with accents and accessories, and that's the kind of salt that makes the baked potato taste good."
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Wickes to rev up growth
May 24, 2005
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