NHFA-HGTV retailer program on hold
Network wanted more commitments
Clint Engel -- Furniture Today, August 15, 2008
HIGH POINT — The launch of the dual HGTV and National Home Furnishing Assn. Preferred Retailer Program is on hold for now after several months of plugging apparently failed to garner the commitments HGTV wanted to move forward with a launch.
While NHFA has said the initiative has attracted hundreds of retailers, only about 100 have signed letters of intent to participate in the program, NHFA Executive Vice President Steve DeHaan said today.
HGTV considered that number “not very many,” DeHaan said, but he sees it differently.
Before this, “I don’t think we’ve ever signed 100 retailers to anything in three months time,” he said. DeHaan added that the launch date for the program — originally planned for September — kept getting pushed back, which also made it hard to sell to retailers.
HGTV has told NHFA that the TV network’s executives intend on “revisiting the opportunity at a later date,” but neither DeHaan nor Lee Hall, spokesman for HGTV parent Scripps Networks, would predict when. They both said they will continue to work with each other in the meantime.
“Some of the things under consideration have to do with on-air and online programs” along the lines of educating consumers, Hall said.
In a press release, NHFA said it “continues its commitment to develop and launch a consumer education and awareness campaign for the home furnishings industry,” with online, advertising and in-store components.
DeHaan said NHFA’s investment in pursuing the Preferred Retailer Program has been “significant,” but he did not disclose the amount.
Through Webinars, furniture market seminars and other steps, NHFA and HGTV reached about 350 retailers to discuss the Preferred Retailer program, he said.
The program was to feature a co-branded HGTV-NHFA Web site with room planning and other tools, design ideas and information on preferred retailer members. Plans called for in-store Preferred Retailer signage and other materials as well as advertising featuring some of the top talent from various HGTV shows.
The two groups were shooting for enough interest to generate a $20 million marketing budget funded by a small fraction of participating retailers’ advertising budgets, they said.
“While the industry has embraced the concept of the HGTV Preferred Retailer Program, we found that the current macroeconomic climate is a barrier to the furniture retailer’s deploying necessary resources to this program at this time,” said Cherie Oswald, senior vice president of business development for HGTV.
“HGTV remains a committed ally of the NHFA. We continue to enjoy a strong relationship and remain committed to working together to educate consumers,” she added.
NHFA President Doug Kays said the retailer association remains “committed to bringing together all segments of the home furnishings industry with this consumer education and awareness program in an effort to increase profitability and success for the entire industry.”
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