Recliner players share strategies for growth

Category sales of $3.4B

Larry Thomas -- Furniture Today, September 14, 2005

LaneLa-Z-Boy
FranklinCatnapperBerkline

Klaussner’s model 7230 features domestically cut and sewn leather cover.

Klaussner’s model 7230 features domestically cut and sewn leather cover.

HIGH POINT -- There’s plenty of growing room in the $3.4 billion recliner category, but producers say numerous challenges lie ahead for those trying to tap into it. Not only are consumer tastes changing — some people actually want a recliner in their living room nowadays — but producers are under increasing pressure from rising raw materials costs and low-cost imports. Producers say there always will be a market for chairs with the so-called “commercial look” (aka the Bubba chair), but many are having increased success with more stylish models that have higher price points than the typical $299 to $399 entry-level chairs.

Flexsteel’s high-leg model 5031was a best-seller at the High Point market in April.

Flexsteel’s high-leg model 5031was a best-seller at the High Point market in April.

“We seem to do better with the nicer chairs that have the better leathers and the better fabrics,” said Jay Foscue, senior vice president of merchandising at Klaussner. In addition, producers say recliners increasingly are being purchased as part of groups that include stationary and motion sofas and loveseats. And, they’re also important for consumers looking to furnish a home theater or media room. “Selling correlates with stationary upholstery has been a big part of our recent (recliner) growth,” said Greg Roy, vice president and general merchandise manager at Lane. “We’ve been very successful with that.” This report profiles five of the category’s key players, highlighting the strengths of their lines and the keys to their future growth.

Lane concentrates on comfort

Lane’s model 2053, shown here in leather, has a fully padded chaise.

Lane’s model 2053, shown here in leather, has a fully padded chaise.

TUPELO, Miss. — Style and product innovation certainly are important, but at Lane, nothing takes a back seat to comfort. “Comfort is what it’s all about,” said Greg Roy, vice president and general merchandise manager. “We still believe the consumer ultimately wants the most comfortable seat available.” Roy said all the company’s recent product innovations — from the extended footrest to the adjustable headrest to a gliding mechanism — were designed with the goal of making the recliner more comfortable. Plus, such features give retail salespeople a sales “story” that is unique to Lane. That enables the company’s products to stand out from the clutter of commodity-like recliners found on so many retail floors, he explained. “The real battleground for us is $399 and $499,” Roy said, alluding to the category’s two hottest price points. “Recliners still are very competitive.” A more recent growth driver for Lane has been its ability to develop stylish reclining chairs that coordinate with stationary upholstery groups. Such chairs — most of which use push-back reclining mechanisms instead of a handle — allow dealers to boost their average ticket. The stylish nature of the products also convinces many skittish female consumers that it’s okay to have a recliner in the living room or other highly visible “public” area of her home. And while the correlates are a more recent growth driver, Roy said the company still finds success with its twice-a-year coupon sales that are advertised nationally in Sunday magazine inserts such as Parade and USA Weekend. He said it’s not unusual to see consumers streaming into Lane dealers, coupon in hand, for several days after the ads are published. “I think we’re having a big positive impact on the marketplace when we do that,” Roy said.

La-Z-Boy stays strong with broad assortment

La-Z-Boy’s popular Riley recliner features contemporary styling and a pushback reclining mechanism.

La-Z-Boy’s popular Riley recliner features contemporary styling and a pushback reclining mechanism.

MONROE, Mich. — When you’re the sales leader in the recliner category — with the furniture industry’s best-known brand name, to boot — it’s only natural to be the target of every other producer’s potshots. But over the years, La-Z-Boy has become adept at ducking those projectiles, while firing off a few of its own at strategic moments. That has enabled the company to remain at the top of the hill in the midst of tumultuous industry changes and challenges. “You’re always looking at everything you do … and you have to keep your ear to the ground to keep up with what the rest of the industry is doing,” said Paula Hoyas, director of upholstery merchandising. The key for merchandisers like Hoyas is getting regular feedback from La-Z-Boy dealers, sales reps and others who are on the front lines of the battle for the consumer’s furniture dollar. That keeps the product development staff on top of what products are, or aren’t, selling well. And it helps them spot overall category trends. Hoyas said the strength of La-Z-Boy’s line lies in its broad assortment of chairs that retail from $299 to $999 and above. Of late, models with the company’s new ultra-plush seating construction have been selling especially well, as have chairs from its Designers Choice collection, which focuses on special-order items. “Consumers don’t necessarily want that commercial look,” she said. “They appreciate something that gives them the look of stationary furniture, but has the comfort of a recliner.” Hoyas said consumers also have been flocking to its newer leather offerings ever since the company launched an aggressive cut-and-sew cover program more than a year ago. “We still feel we can get more growth out of it,” she said of the leather lineup. “The cut-and-sew program really has been the catalyst.”

Franklin Corp. strives to deliver ‘more for less’

The large-scale model 6549 from Franklin features a popular faux suede fabric cover.

The large-scale model 6549 from Franklin features a popular faux suede fabric cover.

HOUSTON, Miss. -- Located near the scenic Natchez Trace Parkway in a quiet town that bears no resemblance to the Texas city of the same name is an equally quiet upholstery producer that has become a heavy hitter in the recliner category. Executives at family-run Franklin Corp. say they’re not interested in building a brand name. They would rather build on their reputation of delivering high-quality, high-value products. “We try to do more with less. That’s always been our motto,” said Chuck Tidwell, vice president of product development. “We make sure that we leave nothing on the table that isn’t value-added.” But Tidwell says “more with less” isn’t synonymous with “cheap.” Franklin is able to offer recliners that are great values because the company’s low-cost manufacturing model and near- vertical integration translate into competitive pricing for its dealers, he explained. “We don’t merchandise our product by taking out of it,” Tidwell said, noting that virtually all Franklin recliners use the same mechanism and frame construction. Design elements, foam cushioning and covers are what differentiate the models. Although the company builds some recliners that retail for $299, Tidwell said $399 is the strongest price point, and several models at $499 (especially those with leather covers) are brisk sellers as well. “If you exceed the customer’s expectations on comfort, price becomes less of an issue,” he said.  Tidwell said he believes the category still has ample room to grow, but competition is getting more intense with the advent of Asian-made recliners and falling sofa prices. “We’re now seeing sofas at $399 and $499. What’s more of a value to the consumer … a sofa that seats three people or a chair that can sit one person? That’s our challenge.”

Catnapper scores with swivel-glider

Since its introduction less than six months ago, the Glove has become Catnapper’s top-selling recliner.

Since its introduction less than six months ago, the Glove has become Catnapper’s top-selling recliner.

CLEVELAND, Tenn. — When the first swivel-glider mechanisms were installed in a few Catnapper recliners about 18 months ago, the company’s sales team was a bit skeptical. But when retailers started placing large orders for the product at the first High Point market in which it was available, the skepticism quickly vanished. Since then, sales of chairs with swivel-glider mechanisms have soared, and several such models are among the company’s 10 best-sellers. “I think it’s the sweetest mechanism on the market,” said Don Hunter, senior vice president for major accounts.  Hunter has become fond of the mechanism not only for its ability to get more Catnapper products on retail floors, but also for its ability to deliver more comfort and value than previous models. “Our recliner business is growing, but it takes a ‘story’ like the swivel-glider to keep it growing,” the furniture industry veteran said. “We need to continue to be creative.” Hunter said Catnapper’s strongest price points continue to be $399 and $499, but noted the company does a reasonable amount of business at $299, and has seen impressive recent growth at $599 and above. Many of the higher-priced recliners are sold as part of living room or family room groups — many of which are now being used as media rooms that feature big-screen televisions and numerous reclining seats.“As the home becomes more of an entertainment center … consumers want a recliner that fits in with that lifestyle,” he said. “They want something that they’re not afraid to show to their neighbors.” The company’s express shipping program also has been a winner. Hunter said the quick-ship models are available in four to six colors, but Catnapper requires dealers to stock only one of them. Other colors are stocked by the company and available for immediate delivery.

Berkline maximizes space with Three 27

An extra-wide seat highlights the papasan reclining chair from Berkline.

An extra-wide seat highlights the papasan reclining chair from Berkline.

MORRISTOWN, Tenn. — After watching retailers gradually reduce the amount of floor space they were devoting to recliners, Berkline came up with an offer that many of them couldn’t refuse. Display just three of our recliners, but sell 27 different models from this small display. The pitch seems to be resonating with Berkline dealers, who have enthusiastically embraced the concept, which officially is called the Three 27 collection. “We are getting sales on all 27 models,” said Kevin Armstrong, Berkline’s director of reclining chairs. “The dealer commits to three styles on their floor, which lets consumers see and feel the different design elements.” The consumer then chooses the style of the back (tufted, pub or caterpillar), arm (rolled, pillowtop or marshmallow) and seat (box, chaise or pillowtop), and, in effect, designs his own chair. Many Three 27 models retail for $399, but some hit $499 to $599, depending on the cover. Armstrong said the collection, which was unveiled in April, has been a key growth driver in the company’s recliner business this year. “The strength of our business year to date is a balance of new product placements, strong new concepts, promotionally priced goods and strong retail promotions,” he said. According to Armstrong, the company’s best-selling price points remain $399, $499 and $599, but there is considerable interest in models at higher price points, especially those with leather covers. Another April introduction, the Adventure Series, also has been a winner. Armstrong said the contemporary, somewhat offbeat collection is targeted to Generation X. It includes features such as D-rings (for attaching sports drink bottles) and magazine pockets made of nylon netting.