Share this on

FMG, Nationwide combine buying power

By Clint Engel -- Furniture Today, November 6, 2005

High Point — The Furniture Marketing Group has formed an alliance with the Nationwide Marketing Group in a move that FMG says will double its buying power to about $2 billion and open the door to new marketing and distribution services.

Before the alliance, FMG represented 63 independent retailers with more than 375 stores nationwide.

Under the new arrangement, Nationwide's Furniture Smart division joins FMG with its more than 500 furniture and/or bedding retailers with more than 1,000 stores in the United States and Mexico, said Robert Weisner, executive vice president of Nationwide.

All told, the Winston-Salem, N.C.-based Nationwide, with some $9 billion in retail buying power, has 2,500 members with more than 6,500 stores selling electronics, appliances or furniture.

Mike Herschel, executive director of FMG, will continue to lead the buying group from High Point. Bill Bazemore, director of Nationwide's Furniture Smart division, will retain his duties from his Atlanta base and will join the FMG buying committee.

Herschel said the alliance will create some distribution issues FMG will have to work around, but said it doesn't expect to drop any retail members.

With the partnership, FMG members will gain access to 40 Nationwide regional warehouses that the buying group is customizing for the furniture category. That work is expected to be completed early next year and should greatly improve the groups' ability to order direct containers of furniture from overseas.

Herschel said FMG has been buying direct containers, but hasn't been stocking in any regional warehouses.

Another key benefit for the FMG will be the use of Nationwide's Prime Media digital communications center in Atlanta. This gives the group the ability to do tasks such as corresponding with members over streaming video and producing television spots, marketing materials and sales training materials.

"Now with Nationwide's Furniture Smart divisions in association with FMG, we will create one organization with an unmatched umbrella of leading edge purchasing, advertising, marketing, communications and training services and initiatives that can be customized, directed and implemented to the furniture industry," Herschel said.

And what does Nationwide get out of the alliance?

"Anytime you can double your purchasing power, you will enhance programs that will be good for all dealers," Weisner said. With $2 billion in furniture buying power, the alliance "forms the nation's largest furniture marketing organization," FMG and Nationwide claim.

"Today, the challenges facing independent furniture retailers have never been greater," said Bob Cremer, CEO of the 11-store Aronson Rooms & More in Chicago and FMG's current president. "We see this relationship creating operating efficiencies and synergies which will help the members of FMG grow stronger and more profitable for many years to come."

Share this on

FMG forms alliance with NMG

Nov 3, 2005

Also by this author

Also by Clint Engel

Featured Company

FurnitureCore.com

FurnitureCore.com is a dynamic web application aimed at the furniture industry. Retailers and manufacturers alike will find our deep reserve of tools to be exactly what their furniture business needs.www.furniturecore.com... more

Most Recent Resources

Atlanta International Gift & Home Furnishings Market

Here is a selection of products shown at this month's International Gift & Home Furnishings Market here.

Networking at the 13th annual F/T Leadership Conference

NAPLES, Fla. — Industry executives and guests took the opportunity to network and play golf during down time at Furniture/Today's 13th annual Leadership Conference here this month.