NHFA seeking partner
Group keeps plan for consumer site
By Clint Engel -- Furniture Today, September 7, 2008
HIGH POINT — The National Home Furnishings Assn. confirmed last week that it will push ahead with its own Consumer Influence Program although a co-branded effort with HGTV has been tabled.
The retailer group said it will seek a “new name-partner” for the program.
Also last week, NHFA announced it was introducing new financing and other programs for its retailer members, including one that could let some stores dip their toes into rent-to-own waters.
NHFA's executive committee unanimously voted to continue funding the Consumer Influence Program, which the association first envisioned three years ago. The group said it “will continue the planning of a robust, national consumer Web site to guide furniture customers in their decision making relative to home furnishings purchase.”
The site will be supported by participating retailers, who will receive a “preferred retailer” designation, NHFA said. They will be linked to a national information Web site that will have tools for consumers as they shop for furniture, and will be identified on a store locator menu.
“NHFA has decided that the project is important enough to the future of its members and the future of the industry to continue without HGTV at this time,” it said in a press release.
The group also said is preparing a “request for proposal” that will be circulated to HGTV and “other prominent publishing/media companies to see if a new name-partner could be identified.” It said several companies have already approached the association. NHFA also is searching for consultant to help it refine the plan.
NHFA Executive Vice President Steve DeHaan said it's too early to give a launch date for the program or an estimate of the cost to retailers.
Meanwhile, the association said its board has selected several other new and updated programs to offer retailers “to help support profits in today's uncertain economy.”
Among them is a Lease/Purchase Alternative Finance Program offered by 4Sales Finance, which provides a hybrid rent-to-own options for “credit-challenged” consumers who are declined by a store's primary credit sources, NHFA said. The agreements are set up as 12-month RTO plans, but customers can pay off the balance any time before that, said Jerry Alderman, NHFA senior director of membership and marketing.
Consumers can qualify if they have been employed for at least six months and have gross monthly income of at least $1,000.
While the program doesn't include short-term rental or lease contracts like those offered by some RTO operators, merchandise would come back to retailers if the customer defaults. That's a risk retailers will have to consider before offering the program, Alderman said.
“This type of program will be for retailer on the low to promotional side (aimed primarily at consumers) who would not quality for conventional financing,” he said. “It just gives that retailer a chance to save that customer.”
Alderman added that the pricing of the agreements would be comparable with those offered by RTO merchants.
NHFA also has introduced a new Furniture Protection Plan by 4Warranty that provides extended service plans for furniture, appliances and electronics and includes an aftermarket opportunity for income missed at the point of sale, NHFA said.
Both 4Sales Finance and 4Warranty are part of Source International of Orange Park, Fla.
Also new from NHFA is the Workers Compensation Audit Program, provided by L.B. Atlantic — which specializes in recovering workers' compensation premium overcharges — in partnership with the association. The retailer's annual premium must be more than $50,000 to qualify and under the program, the retailer will not be charged a fee if there is no overcharge recovery.
In addition, Citi Retail Services lowered its rates earlier this year for retailers who use its private label credit card program through NHFA. The basic rate for six-month and 12-month plans was lowered 50 basis points, or by 0.5% on the front end.
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