La-Z-Boy cuts rep force
By Heath E. Combs -- Furniture Today, January 13, 2008
Monroe, Mich. — La-Z-Boy officials said last week the company will eliminate about 30 sales representative positions as it consolidates territories and changes the reps' role from a traditional wholesale sales force to a more consultative field organization.
The manufacturer and importer will consolidate its residential division into 46 territories in the United States and Canada to be staffed by more than 100 sales representatives, the company said in a press release last week.
That will reduce the number of reps by about 20%. The territories will continue to be divided into regions managed by a regional sales vice president.
The move will allow the company "to enhance the services and support we provide dealers to help them compete in today's challenging retail environment," Greg White, vice president of merchandising and sales, said in the statement. "The retail landscape in the furniture business has changed dramatically in the last few years, and we must adjust our dealer support functions accordingly."
In general, La-Z-Boy signs one-year contracts with its independent sales reps, according to the company's 2007 annual report.
Several La-Z-Boy reps declined to talk to Furniture/Today about the move last week.
Steve Matlock, La-Z-Boy senior vice president of sales and marketing, said commission levels have not changed. For legal reasons, he said, all reps were dismissed and then most were rehired with new contracts.
"We are confident this realignment will not only provide better service to dealers, but also will give us the ability to increase our operating efficiencies and ensure La-Z-Boy brand consistency across all retail channels," said White.
La-Z-Boy joins other companies, such as Thomasville, Sealy and Simmons, which have reduced their sales staff recently.
About two years ago, Simmons adopted a new servicing structure including a toll-free phone number and a centralized service team for small retailers. Sealy eliminated about 10% of its sales force last year and instituted an ActivLink selling program run by a customer service team.
In December, Thomasville eliminated all of its retail sales representative positions as the company moves toward a business model that relies more on servicing a dedicated store format.
