HOM to open three stores in new markets next year
November 2, 2012,
A rendering of HOM Furniture’s planned 130,000-square-foot Rogers, Minn., campus shows the retailer’s second Dock 86 store and the new format HOM Furniture showroom with store-within-a-store specialty shops including Sleep Express, World Floor & Rugs and Seasonal Concepts.
COON RAPIDS, Minn. - HOM Furniture will open three new stores in two complexes next spring, including one in Rogers, Minn., that features its second Dock 86 four-day-a-week, bargain-oriented format.
In Rogers, The Top 100 company is redeveloping a 130,000-square-foot former Lowes home improvement location, and in Onalaska, Wis., the retailer will open a 70,000-square-foot HOM store.
The HOM format features store-within-a-store department for Seasonal Concepts - its outdoor furniture business - Sleep Express, and World Floor & Rugs, a newly expanded flooring department selling carpeting, tile, vinyl, wood flooring and granite counter tops in addition to area rugs.
The store also will feature gallery presentations for Uptown Urban Furnishings - HOM's take on the type of home furnishing found at lifestyle specialty retailers such at Restoration Hardware, Crate & Barrel and West Elm - and Amish Craftsman.
In Onalaska, just east of LaCrosse, Wis., at Interstate 90 and Highway 16, HOM purchased a former Gander Mountain store and will build out the location, more than doubling its size to 70,000 square feet for its store-within-a-store retail format. Flooring, however, will not be offered at this location.
The Roger's facility is expected to cannibalize some of HOM's existing business in the greater Minneapolis market, but with two large stores on one campus, the retailer still expect to add about $20 million in sales to its top line, said Rod Johansen, HOM President and CEO.
Onalaska will be a brand new market for the retailer, and there, the company is looking for annual sales of about $10 million, he said. Because HOM owns its own real estates and will conduct extensive remodels of the properties, the combined investment in the projects is significant - in excess of $15 million, Johansen added.
HOM is No. 33 on Furniture/Today's Top 100 with estimated 2011 furniture, bedding and accessories sales of $205.5 million at 18 stores. Johansen said the company expects to finish this year with a roughly 7% sales increase. In addition to HOM and Dock 86, the retailer also operates the high-end, three-store Gabberts Design Studio & Fine Furniture.
In both Rogers and Onalaska, HOM is introducing a new more contemporary store front with cleaner lines and squared-off shapes that the retailer eventually will bring to its other HOM locations Minnesota, Iowa, South Dakota, Wisconsin and North Dakota.
The new Dock 86 is playing off the success of the first 74,000-square-foot unit that opened in Little Canada, Minn., in February 2010. There, sales increases have been running in the double digits, Johansen said.
The warehouse-like format of Dock 86 "eliminates additional costs of other furniture retailers and passes the savings onto the consumer," the retailer said in a release.
"Operating only during the busiest four days of the week when most furniture customers shop, not building fancy showrooms, and producing low budget commercials helps keep overhead and prices low," said Jerry Underwood, HOM's marketing director.
Products range from large-volume cancelled orders, closeouts, and factory showroom samples.
"With this treasure seeking approach you might find a close-out sofa meant to sell for $599 for just $299 or a designer sofa sold in high-end stores for $5,000 for only $2,000," the press release said.
Most Viewed Articles
Related Content By Author
Mid-August news features acquisitions, Amazon and avenues of growth
Furniture Retail Solutions
Over the past year, our editorial team has been on the road, studying retail – what's working and what challenges even the most established retailers face. Born from these studies is Furniture Retail Solutions – a multi-part series addressing common problems retailers face. Read our first two articles:
RSA Insights & Intelligence
RSA Insights & Intelligence gives you, the retail sales associates, critical intelligence and insights. We make it easier for you to sell by providing actionable tips and key takeaways you can and should use for every sale. Check out our latest two articles:
* Why buying mattresses online is harder than consumers think
* How RSA can capitalize on the adjustable base boom