Sales power represents billions
By Jeff Linville -- Furniture Today, February 5, 2007
High Point — The Forbidden City furniture show drew enough major and mid-major retailers that the total buying power reached billions of dollars, according to show organizers.
Several Top 100 retailers came here last week, including some who didn't attend the first event a year ago. These included Levin Furniture, Smithton, Pa; Wickes Furniture, Wheeling, Ill.; Mathis Brothers Furniture, Oklahoma City; and Nebraska Furniture Mart, Omaha, Neb. Atlanta-based rent-to-own major Aaron Rents also attended for the first time.
Greg Noe, president of show organizer Lifestyle Enterprise, said he was looked around the showroom at one point and realized how many big accounts were there. He roughly estimated that the annual sales of these stores would surpass $5 billion just on Monday.
Lifestyle owner William Hsieh was pleased with the turnout and the business done. One account committed to more than $1 million in merchandise during the week, and Noe said his international sales rep received commitments of 300 containers headed for Mexico.
The company offered incentive deals and showed new groups in categories including bedroom (15 sets), formal dining (five sets), casual dining (25 groups), and fabric and leather upholstery (14 sets plus four motion).
Hsieh said he is considering moving to a constant introduction cycle, churning out a new collection every two weeks or so.
He said he wants to continue growing the company, by claiming more retail floor space with existing customers or adding dealers. Noe said the question is, how does a container-only company reach second-tier players who may not be able to flow containers? Addressing the question eventually could lead to a change in the company's business model, he said.
How to claim more space at existing dealers? James Riddle, Lifestyle managing director, said adding new categories is the easiest way. The company rolled out youth furniture a year ago with good results, and will add more at the March High Point Market.
A few years ago, Lifestyle was a big player in dinettes, but moved away from the category to target case goods and upholstery, said Noe. Now that those areas are doing well, the importer is returning to casual dining full force as evidenced by its 25 new sets, ranging from $199 to $599 retail.
Expect to see more dining and more categories from Lifestyle in the coming year, said Riddle.
