Badcock execs praise retailers for hard work
By Clint Engel -- Furniture Today, September 4, 2005
Nashville, Tenn. — W.S. Badcock executives praised their dealers and corporate store operators for hanging tough under some trying circumstances this past year, saying their work was rewarded with record sales.
President and CEO Don Marks, dressed like Ben Cartwright on the old "Bonanza" TV show, told guests at the semiannual dealer meeting here that systemwide sales for the 320-store chain grew 10% for the year ended June 30, to $575 million (including electronics and appliance sales). This year, he said, the midpriced retailer is on track for another gain.
Most of the credit goes to the "expert Badcock ranch hands, also known as dealers," Marks said.
Other driving forces behind the growth, he said, were the conversion of Badcock stores to the updated Badcock Home Furniture & more concept, and powerful television advertising. About 188 stores have grand-opened under the new format, and their same-store sales increase of 9.3% this past year far outpaced the others (under 4%).
Nearly 1,000 people attended the dealer meeting, including 200 dealer-owners of 260 stores, managers of 60 corporate-owned stores and vendor representatives from about 120 companies.
Dealers and store managers shopped in a product exhibition area for the latest merchandise that Badcock buyers picked up at the April High Point market. Also on display were top performing guaranteed in-stock goods, plus vignettes from a mix of vendors that dealers could easily duplicate in their stores.
Addressing the audience, Marks and other Badcock executives said dealers can take steps to improve their businesses despite stagnant furniture pricing and rising operating costs.
Marks said dealers should take better advantage of "upselling opportunities," such as product warranties, credit insurance and fabric protection, noting that the chain underperforms its competitors in these high-margin categories.
Michael Ray, vice president and chief financial officer, said dealers that have yet to convert to the new format are "leaving money on the table."
A guest speaker was Michael Payne, host of HGTV's "Designing for the Sexes," who has a furniture collection at Powell. He spoke on the differences between male and female shoppers.
Among them: Women love color, while men are uncomfortable with it, (preferring white walls, for instance). Women also love pillows.
On the other hand, men seem to love leather more, and are much more into high-tech gadgets like home theater.
Payne said the key to dealing with these differences is compromise. When the man finally finds that perfect leather chair — his to sink into and spill things on — it's a profound moment, he said, "because everyone knows that now that he has that chair, she gets everything else."
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