No-no-no is a no-no for our business
Carole Sloan, Senior Contributing Editor -- Furniture Today, February 24, 2008
With all the dark news about retailing in furnitureland — just driving by empty Levitz stores brings a flood of memories — there's not much to bring smiles to peoples' faces.
The mood from Las Vegas was upbeat to a point, but there was little that sent the blood rushing in the retailers in attendance. It was, many remarked, a carryover from October's High Point Market, where few trends emerged.
What is happening instead appears to be a retail preoccupation with the triple no's of this business (no down payment, no interest, no payments for ages).
Looking at promotions of this type heralded at retail across the country, it's really important to read the small print. As used to be said about insurance policies, the large print giveth, the small print taketh away.
Triple-no furniture promotions, it appears, have a similar character with slightly different twists. Looking at some recent offerings, it seems that one has to make a purchase in the mid-$2,000 range to qualify. Looking through the circulars, there might be one or two groups that fit that fiscal requirement, but for the most part, a lot of "bundling" of products purchased would be necessary.
Talking with a major retailer recently, he posed the question: How many consumers are in the market to virtually redo significant parts of their homes in one fell swoop, and at that price point? In today's environment, only a few.
And for those customers wanting to make a purchase of one of the promoted groups in a circular, at good promotional prices, the tab for financing is at or hovering close to the local usury levels — a point that no one in the industry wants to be overtly associated with, but in reality lives in that environment almost constantly, albeit with appropriate warnings.
The financing policies of furniture at retail could perhaps be one of the significant negatives in why the furniture business is so tough in this environment.
With all the dark news about retailing in furnitureland — just driving by empty Levitz stores brings a flood of memories — there's not much to bring smiles to peoples' faces.
The mood from Las Vegas was upbeat to a point, but there was little that sent the blood rushing in the retailers in attendance. It was, many remarked, a carryover from October's High Point Market, where few trends emerged.
What is happening instead appears to be a retail preoccupation with the triple no's of this business (no down payment, no interest, no payments for ages).
Looking at promotions of this type heralded at retail across the country, it's really important to read the small print. As used to be said about insurance policies, the large print giveth, the small print taketh away.
Triple-no furniture promotions, it appears, have a similar character with slightly different twists. Looking at some recent offerings, it seems that one has to make a purchase in the mid-$2,000 range to qualify. Looking through the circulars, there might be one or two groups that fit that fiscal requirement, but for the most part, a lot of "bundling" of products purchased would be necessary.
Talking with a major retailer recently, he posed the question: How many consumers are in the market to virtually redo significant parts of their homes in one fell swoop, and at that price point? In today's environment, only a few.
And for those customers wanting to make a purchase of one of the promoted groups in a circular, at good promotional prices, the tab for financing is at or hovering close to the local usury levels — a point that no one in the industry wants to be overtly associated with, but in reality lives in that environment almost constantly, albeit with appropriate warnings.
The financing policies of furniture at retail could perhaps be one of the significant negatives in why the furniture business is so tough in this environment.
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Jun 7, 2010 -
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Jan 27, 2012 -
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