Contemporary stores share ideas for surviving downturn
By Jeff Linville -- Furniture Today, May 25, 2008
La Jolla, Calif. — Can independent furniture stores still survive and thrive?
That's a big concern of the Contemporary Design Group, a consortium of more than 20 non-competing retailers specializing in contemporary styles, which spent part of its annual meeting late last year discussing issues that stores face and possible ways to counter the problems.
Many stores — including some in the CDG — closed in 2007.
One point some group members made at the meeting was that while small stores may not have deep pockets to ride out the tough economic times, they do have an advantage over chains in that they can move quickly to jump on hot trends.
Tamara Scott-Anderson of retailer Contents Interiors, Tucson, Ariz., said she heard about a rug that was doing well for a fellow CDG member in San Diego, Lawrance Furniture. Contents put the rug on the floor and quickly sold four.
The Contemporary Design Group already distributes some information on what products are selling well at its member stores, but retailers showed interest in learning more.
Meanwhile, to help its members compete with Top 100 retailers, the CDG takes advantage of its combined buying power. The group has a committee that works to develop private-label goods that only its members can buy.
But this system has its challenges.
Denise Ogurkis, of domestic bedroom maker Vermont Tubbs, said her company developed a bed just for the CDG, but not enough stores gave commitments to warrant a cutting.
Perry Sigesmund, of retailer Perlora in Pittsburgh, said he was disappointed. "I couldn't believe we weren't buying that bed," he said. He said he hoped the CDG can do a better job of following through on discussing these exclusive items when manufacturers invest their time on them.
Bruce Birnbach of upholstery manufacturer American Leather said his company wants the independent stores to do well and is willing to work with them. Sherry Burt of retailer Suburban in Oklahoma City said American Leather offers great sales training. Ekornes and Natuzzi also offer good training, she said.
Ed Cheikh of Houseworks in Indianapolis said he wished more manufacturers were so helpful. Too often the reps aren't motivated and ready to train associates, he said.
The CDG urged manufacturers to provide more assistance in training sales associates. It also suggested the vendors maintain price and quality, improve customer service, and offer more customization to differentiate their goods from the stream of imports on the market.
Retailers and manufacturers at the CDG meeting also agreed that there could be greater partnership in areas like advertising, point-of-purchase materials and Web-based opportunities.
