Buyers want what works
Some seek deals in Vegas, others innovation
By Clint Engel -- Furniture Today, February 1, 2010
LAS VEGAS —
The retail furniture business is showing signs of improvement, and buyers are coming to this week's Las Vegas Market eager to build on whatever it is that's been working best for them lately.
For some, that will mean a search for the freshest, most innovative furniture that isn't necessarily built around hitting a certain price point.
Others remain more price sensitive in their continuing effort to coax consumers to open their wallets. They use the word “value,” but the sense is that “low price” is a big part of the value equation.
Key categories that have done fairly well in the toughest of times will be important to buyers here, too, including leather and motion upholstery, casual dining and bedroom.
And several retailers emphasized supply chain and vendor service as key issues they'll address this week. How they go about it will vary — with some honing in on domestic production and warehouse programs, while others press for more reliable container-direct service from overseas suppliers that haven't kept pace with the recent uptick in business.
“The whole thing is finding something new and unique and appealing to these customers, something cutting-edge,” said Jim McIngvale, owner of the two-store Gallery Furniture in Houston. “We're looking for the next Tempur-Pedic, but in furniture.”
He said Gallery has done well with Ekornes' Stressless chair line, and he'll be on the hunt for more of these types of items that aren't so price-sensitive. Gallery already does a big business with Tempur-Pedic, and McIngvale said he looks forward to seeing the latest version of its Tempur-Cloud collection.
“Were also looking for American-made furniture,” he said. He has been running radio spots lately promoting Gallery's Texas-based upholstery suppliers and knocking Chinese imports in the process.
“People are worrying about one thing today — J-O-B-S. And this shipping furniture from China is not creating a lot of J-O-B-S. Sooner or later, we've go to make something in this country,” said McIngvale.
Although it's not planning to back away from imports, Fort Lauderdale, Fla.-based City Furniture will be addressing distribution concerns here, too, said Keith Koenig, president of the 26-store Florida chain. City has seen an encouraging increase in business so far this year — up about 10% from a year ago.
Koenig said he thinks store traffic is up because people are finally buying distressed properties and need to furnish them. But he's concerned suppliers are unable to keep up with this retail uptick.
“Our merchandising team will be talking to vendors about supply chain issues,” he said. “Shipping delays have been across the board. The supply chain is seeing a pickup in business and having a little bit of a hard time reacting.”
City operates in competitive markets and buys nearly everything container-direct. It's looking for assurance from vendors that orders will be shipped on time.
“Supply chain for us will probably be the biggest issue in 2010,” he said.
Among City's store count are eight Ashley Furniture HomeStores, and Las Vegas is the big market for Ashley's HomeStore product intros. Koenig said Ashley introductions have been “very hot for the last year-and-a-half,” and that he's confident City buyers will find more to like this week as well.
“They've made great moves in motion and case goods,” he said, adding that Ashley's British Colonial Keytown bedroom has been on the floors for about 60 days and “it's been a rock star.”
Koenig also is looking forward to stopping by leather upholstery importer Cheers/Man Wah.
“Whatever (President) Steve Barr is introducing, we want to be there bright and early to see,” he said. “I've told him I think he's the hottest leather merchant in the marketplace, and it seems everyone agrees with me because his product line is selling everywhere.”
Georgia Wilcox, a case goods buyer for Little Canada, Minn.-based Slumberland Furniture, said that she and four others from the company will shop Las Vegas for about two-and-half days. They'll focus on existing suppliers instead of looking for new sources.
“We will partner with our key vendors to see what they have to offer and see what new trends are out there,” she said.
Among the wood products she'll look for are value-driven casual dining sets and bedrooms. While storage is an important factor in bedroom, value is the most important consideration today, she said.
Debbie Gursley, a buyer and merchandiser for The Old Cannery in Sumner, Wash., didn't hesitate when asked about buying plans.
“Honestly, we're looking for new. That's our intent this year — new vendors, new looks,” she said.
In particular, Gursley said the store will be looking for what's new in home office. “Since laptops, the larger pieces for office furniture have pretty much died out. We're looking for things that are more home-friendly. I don't think the big executive desks are turning very much for home office,” she said.
“We're going to do business,” she added. “The slight increase in economic growth is what we're seeing, so we're still going to keep on the conservative side. But we're going to the market to purchase.”
She said Old Cannery executives were “much happier with November and December than we were for mid-year,” and think business will improve.
Jeff Weinstein, executive director of Pacific Furniture Dealers buying group, also has heard from member stores that business is picking up. Retailers think we're not “entirely through this thing, but people are approaching market with guarded optimism.”
PFD expects to have 48 of its 61 member retailers here this time. Speedy, reliable service from vendors is high on the list of must-haves.
“Retailers are hesitant about building up their inventory, and cash flow is certainly very important,” Weinstein said, so quick-shop programs — whether from domestic producers or overseas suppliers — are vital. “It's especially important, as things seem to get better, that they can fill the pipeline quicker,” he said.
Sharp value is important here, and price is part of that equation, he said.
But he added, “If you can't get (the product), it doesn't matter how low the price is. And if it doesn't stay together, it doesn't matter how low the price is.
“What stores are looking for is merchandise that's going to cause some excitement with their salespeople and hopefully that excitement will translate to consumers.”
Associate Editor Thomas Russell and Senior Editor Gary Evans contributed to this story.
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