Lexington suggests price floor
Heath E. Combs -- Furniture Today, March 18, 2007
Thomasville, N.C. — In an effort to stem declines in retail profitability, Lexington Home Brands has adopted a Suggested Minimum Retail Price policy.
The SMRP policy applies to its entire line of bedroom, dining room, living room, home office, home entertainment and occasional furniture, including branded products such as Tommy Bahama.
The new price policy goes into effect nationwide June 1.
"Lexington is taking the initiative to ensure that we empower our dealer partners to achieve better profitability," said Lexington President and CEO Phil Haney in a statement.
"With many manufacturers and retailers fighting their way to the bottom, we at Lexington wanted to take the aggressive and positive move of adding an SMRP policy. It provides retailers with the incentive to make a competitive return on their investment in the display and promotion of Lexington Home Brands products."
In line with the usual industry standards for SMRP policies, Lexington said it would pull major collections — but not entire product lines — off the floors of stores that go below the SMRP level.
These types of policies are more common for high-end product lines. Lexington's line ranges from medium to high end.
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Lexington adds minimum price policy
Mar 13, 2007
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