Home Furniture adds distribution center
By Clint Engel -- Furniture Today, October 17, 2006
Lafayette, La. — Home Furniture has opened a 450,000-square-foot distribution center here, a move that will enable it to significantly expand the size of four of its five showrooms in Louisiana and Texas and expand into new markets.
The center, a former Auto Zone distribution center, is more than twice the size of one Home was going to build before the property became available.
"It just worked out perfectly for us," said Home President Randy Paul. Home had been stocking goods in warehousing at its store locations and now that space will be converted to showroom.
While renovation work on the center is continuing through this year, Home is already operating in it. Features include 72 bays and a four- and five-level racking system provided by United States Steel and Storage.
"Within a year, we will probably have almost doubled our showroom footage," Paul said. The four stores expanding, which range from about 9,000 to 17,000 square feet, will grow to a range of 18,000 to 23,000 square feet. Only Home's 25,000-square-foot store in Baton Rouge, La., will remain about the same size.
In addition to Baton Rouge, Home operates stores in Lafayette, New Iberia and Lake Charles, La., and Beaumont, Texas, along an Interstate 10 corridor that runs from the eastern edge of Texas across Louisiana.
"This is a huge commitment that will allow for us to not only provide quicker and more efficient delivery to our customers but also increase our product selection with expanded showroom space and allow for expansion into newer markets," said Home owner Ged Fleming.
Within a year or so, Home plans to expand into the North Shore area of greater New Orleans with stores in Covington/Mandeville and Hammond, La., Paul said.
Paul would not disclose Home's investment in the new center, but said it should be capable of handling $90 million in sales. A Top 100 contender, Home did an estimated $54.9 million in sales in 2005 and Paul projected sales will reach about $60 million this year.
Paul said business for the retailer has been very good this year, thanks in part to a surge consumer buying because of rebuilding activity after last year's hurricane season, though he added that that it has leveled off a bit lately.
With the existing showroom expansion, Home plans to broaden its selection, primarily from existing lines, and step up a price point or two. Sofas, for instance, which have topped out at about $699 will probably retail for up to $799 or $899, he said. Home expects to add about 10 bedroom groups to its lineup and about 20 living room groups as it expands its stores.
Key sources include Lane, Lifestyle Enterprise, Franklin and Corinthian and Simmons, King Koil and Tempur-Pedic in bedding.
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