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By Furniture Today Staff -- Furniture Today, September 11, 2005

Advertising & promotions
Employees and payroll
Sourcing
The sales floor

Revenue sources
Merchandise sales	98%
Finance/credit income	1%
Income from services	&1%
Other income	&1%

Expense allocation
Merchandise costs	62%
Payroll	17%
Occupancy costs	6%
Advertising	5%
Other	10%

Advertising & promotions

A median of 6% of sales is allocated to advertising & promotions

Allocating the ad budget
% of ad dollars spent on ...
Newspaper	36%
TV	24%
Radio	12%
Direct mail	12%
Other*	16%

% of retailers using each type of advertising in 2004
Newspaper	84%
National magazine	5%
Local/regional/state magazine	15%
TV	53%
Radio	50%
Direct mail	51%
In-store events	14%
Internet	18%
Yellow Pages	55%
Sponsorships	21%
Other*	8%

*Other includes local, regional, state, national magazines, in-store events, the Internet, Yellow Pages, sponsorships, billboards, etc.

Employees and payroll

Number of employees by function
		Full-time	Part-time
Administrative office	21%	88%	12%
Sales	35%	92%	8%
Warehouse, delivery	37%	95%	5%
Repair/deluxing	3%	94%	6%
Janitorial/maintenance	2%	83%	17%
Other	2%	94%	6%

Number of employees by function
Payroll allocation
% of payroll dollars spent on ...
Sales	43%
Warehouse, delivery	23%
Repair/deluxing	2%
Janitorial/maintenance	1%
Other	2%
Administrative, office	29%

A median of 17% of payroll expense goes to fringe benefits

Sourcing

Direct imports

34% of retailers imported directly in 2004

11% of retailers who did not import directly in 2004 will in 2005, while 4% who imported in 2004 will not in 2005

20% of their sales are accounted for by direct imports

% of direct importers importing each product ...
Master bedroom	76%
Dining room/casual dining	71%
Occasional tables	41%
Entertainment centers	39%
Desks/home office	27%
Youth bedroom	22%
Leather upholstery	54%
Fabric-covered upholstery	40%
Recliners	17%
Lamps	12%
Area rugs	9%
Other decorative accessories	18%
Outdoor furniture	6%
Other	5%

Importing from ...
China	73%
Canada	31%
Mexico	28%
Italy 28% Vietnam	21%
Other Asian country	21%
Brazil	14%
Other Western European country	6%
India/Pakistan	4%
Middle East	4%
Other Latin American country	4%
Eastern European country	4%

The sales floor

Space allocation
Sales	71%
Administrative	5%
Warehouse	23%
Other	1%

Outsourcing
% of retailers outsourcing ...
Payroll administration	30%
Web-site development/maintenance	21%
Delivery	14%
Employee benefits administration	13%
Accounts receivable/billing	4%
Deluxing	4%
Other IT functions	4%
Other	3%

% of retailers offering as fringe benefits
	Full-time	Part-time
Dental insurance	29%	5%
Health insurance	75%	13%
Merchandise discounts	81%	85%
Other	3%	5%
Other insurance, life, disability, etc.	25%	5%
Retirement/pension plan	42%	17%
Sick leave with pay	67%	33%
Vacation with pay	92%	37%

% of retailers offering as fringe benefits
Merchandise and display mix
medians
	Percentage of		Average number of
	Sales	Selling space	Lines carried	SKUs on sales floor	% special order
Bedding	10%	8%	2	14	10%
Master bedroom	13%	15%	6	15	25%
Youth bedroom	1%	5%	3	5	20%
Cribs and other infant furniture	&1%	1%	1	2	20%
Dining room	6%	9%	5	10	25%
Dinette/casual dining	5%	6%	4	15	10%
RTA	0%	4%	3	18	15%
Entertainment centers	3%	5%	4	15	15%
Desks	1%	3%	3	8	10%
Other home office	&1%	2%	3	5	32%
Occasional tables	5%	5%	6	40	15%
Stationary upholstery	20%	25%	6	40	40%
Motion upholstery	3%	5%	2	10	29%
Motion chairs	5%	5%	3	40	20%
Lamps	1%	2%	5	51	10%
Area rugs	&1%	2%	2	40	15%
Wall decor	&1%	2%	5	56	10%
Other accessories	&1%	2%	10	175	10%
Outdoor furniture	&1%	4%	2	11	20%

Fabric vs. leather
	Fabric	Leather
Stationary upholstery	77%	23%
Motion upholstery	72%	28%
Recliners	66%	34%

Best-selling price points
medians
Fabric-covered sofa	$799
Leather-covered sofa	$1,099
Recliner	$449
Casual dining	$699
Formal dining	$1,500
Master bedroom	$1,499
Youth bedroom	$499
Cocktail table	$269
Lamp	$99

18% of stores carry private label merchandise

accounting for a median of 15% of their sales

Private-label products offered
by retailers carrying private label
Bedding	60%
Bedroom	29%
Dining	19%
Leather upholstery	29%
Fabric upholstery	36%
Accessories	12%
Other	5%

Direct importers find sources by ...
Other includes trade advertising, buying group, travel to factories
Attending U.S. shows where sources exhibit	64%
Using a sourcing agent	22%
Referral by other retailer(s)	17%
Attending international shows where sources exhibit	14%
Other	14%

Buying groups

19% of retailers belonged to a buying group in 2004

7% plan to join in 2005

number of markets attended
% of retailers attending ...
None	11%
One or two	58%
Three to five	28%
Six or more	3%

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