Dufresne Spencer Group buys more Ashley HomeStores
Clint Engel -- Furniture Today, December 3, 2013
MEMPHIS, Tenn. - Dufresne Spencer Group expects to double its annual sales volume with the recent acquisition of seven furniture stores in two states and with additional ongoing expansion.
DSG acquired the retail operations of Louisville, Ky.-based KHF Holdings in Indiana and Kentucky - six Ashley Furniture HomesStores and a furniture outlet. Terms of the deal between the two Top 100 companies were not disclosed.
The acquired stores, along with other slated expansion, puts Memphis, Tenn.-based DSG on a path towards sales next year of about $250 million, President Chad Spencer told Furniture/Today. That would be up from an estimated $125 million projected for this year by the rapidly growing operator of Ashley HomeStores and the multi-line Stash Home format.
The seven new stores for DSG include two HomeStores in Louisville, three HomeStores in Indianapolis, one recently opened in Terre Haute, Ind., and a furniture outlet in Richmond, Ky., that DSG will convert to a HomeStore. The stores average about 40,000 square feet.
In a release, Spencer said the company is excited to be in the new market and is "committed to offering guests in these areas an outstanding shopping experience and being a blessing in our new communities."
"We believe in the HomeStore brand," Spencer said, adding that DSG is excited to be partnering with the management team and other employees of the KHF operation.
"We wanted to invest in this. We found this operating group to be a good partner for us."
KHF Holdings is No. 98 on Furniture/Today's Top 100 with 2012 sales of $43.7 million at five stores that year.
DSG is No. 59 on the Top 100, with sales of $98 million in 2012. At year end, DSG operated 19 stores, including 14 HomeStores, three Ashley Furniture HomeStore Outlets and two Stash Home stores in Alabama, Arkansas, Kentucky, Mississippi, Tennessee and Texas.
The retailer, formerly the Spencer Group, has upped the ante on expansion ever since it announced a new partnership with Canadian retailer The Dufresne Group in late October 2012. That deal gave Dufresne an ownership stake in the newly name Dufresne Spencer Group, while the new company continued to be led by Spencer executives.
A month later, DSG acquired the three HomeStores in the Nashville market from HomeStores licensee Potluck Enterprises.
DSG's 2013 projected sales of $125 million would be up about 28% from 2012, which did not include sales from the Nashville HomeStores acquired that year.
Spencer noted the company also plans to expand its Stash Home business with the opening of three stores in undisclosed markets next year.
Stash features discounted deals on closeouts and other special purchases on name brand midpriced and upper-end home furnishings.
Industry Related Content
Furniture Today's Ray Allegrezza Speaks with Stephen Bogart about Fine Furniture's New Bogart Line