Safavieh debuts Loft merchandising program
By Jay McIntosh -- Furniture Today, July 30, 2007
New York — Furniture and rug supplier Safavieh will introduce a retail merchandising program this month called Safavieh Loft, offering retailers dating and other benefits in exchange for a space commitment.
Retailers will be able to see the concept in the Safavieh showroom in the World Market Center, space A101, during the Las Vegas Market, July 30–Aug. 3.
Dick Miller, director of sales for Safavieh Home Furnishings, the company's wholesale furniture division, said the loft idea is similar to a gallery program, but with a key difference.
"Our program is unique in that we allow dealers to customize assortments to meet the needs and tastes of their local markets," said Miller. He said the company believes furniture buying is becoming "bi-coastal and regional," with few West Coast retailers shopping in High Point and few East Coast customers buying in Las Vegas.
Miller said Safavieh Home Furnishings has styles in case goods and leather upholstery ranging from 18th century to modern, and has found that product that sells in New England doesn't do as well in the Southwest, for instance.
Retailers who take part in Safavieh Loft will receive a one-time sample discount equal to 15% off dealer list prices, 60 days dating with approved credit, and preferred dealer freight rates. In return, dealers must commit to a 500-square-foot dedicated display space and a $15,000 opening order, with all Safavieh furniture categories represented.
The company will provide sales aids, point-of-purchase materials and in-store sales training. Joseph Murphy, Safavieh's national display and design director, will oversee design of the Loft display for qualified customers.
In addition to showing the concept in Las Vegas, Safavieh plans to place the displays in one or two of its 10 company-owned stores in the New York area.
Miller said the company hopes to develop the Loft concept into a freestanding franchise store program. But such stores wouldn't be placed in areas that already have Loft dealers.
In addition to Loft, Safavieh is readying a Stocking Dealer Program requiring a $5,000 opening order. A $10,000 purchase of in-stock product earns a 10% discount from list price. Retailers can mix product on containers, but merchandise must be from the same factory and country.
A designer program, requiring a $1,500 opening order, also will be offered in Las Vegas.
