Flexsteel nearing 600 in-store galleries mark
By Gary Evans -- Furniture Today, February 11, 2007
Dubuque, Iowa — Midpriced upholstery producer Flexsteel is working toward a milestone — growing its gallery network to 600-plus locations in the not-too-distant future.
Gallery programs have "been our focus for 20 years," said Lee Fautsch, Flexsteel's vice president of sales, home furnishings. "Customers know what to expect from Flexsteel in terms of furniture, producing a quality product and providing delivery in a four- to six-week time period."
At its most recent count, Flexsteel had 440 Signature Galleries and 151 Studios in stores across the country, and it ended a banner year in 2006 with the opening of nearly 50 new Signature Galleries and Studios in 21 states.
Roger Freeman, retail development sales manager, said he attributes the growth to a comprehensive product line and highly recognized brands like the Wrangler Home collection, the new Antiques Roadshow Fabric collection and Christopher Lowell. This year, he said, the company is plans a number of new programs, products and training opportunities for gallery dealers.
"Independent retailers like to team up with Flexsteel for many reasons — one of which is that we don't own retail stores that compete with our customers," Fautsch said.
Flexsteel started its Signature Gallery program in 1985 and its Studio program in 2002. The gallery program requires a minimum of 3,500 square feet of display and an inventory investment of $30,000. The Studio program requires only 2,000 square feet but Studio dealers don't get access to Signature's 1,500 exclusive fabrics, Fautsch said.
He said it is hard to compare square foot sales for the company's dedicated space versus regular store space because "it's all over the lot. We have 3,500-square-foot (galleries) that do $1.5 million with us and 7,500-square-foot (spaces) that do $300,000. It all depends on the market and how many people are serviced."
About 80% of the gallery business is in custom orders, Fautsch added.
With only a couple of exceptions, the galleries that opened in 2006 were all independent dealers with a single store.
"We try to do business with the prominent independent in the marketplace," Fautsch said.
Supporting its gallery program are four dedicated designers who travel the country working with new dealers and helping existing stores refresh their presentations.
"We lose so few gallery customers once we get them," Fautsch said. "That indicates that the vast majority of our retailers are pleased with our results. Many have been with us for many, many years. Once they become a Flexsteel gallery dealer, they stay."
The company asks that its gallery dealers show a meaningful representation of its product categories, which hasn't been a problem.
"One thing that is really attractive to independent retailers is that we really are a 'one-stop' (source) in that they can order accent chairs, beds, leather and everything in upholstered furniture — (including) reclining chairs and motion — and they don't have to buy a lot of different lines."
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