Seahawks victory costs Gallery Furniture about $7 million
February 3, 2014,
HOUSTON — After refunding $685,000 to customers in a too-easy NFL playoff promotion in January, Gallery Furniture is out another $7 million thanks to the Seattle Seahawks victory in last night's Super Bowl.
But Gallery Co-owner Jim McIngvale doesn't appear to be sweating it. In fact, he said he couldn't have asked for better publicity.
"One of the things (this industry) is missing is buzz," he said. "We've got the buzz baby."
Two weeks before the big game, the Top 100 company offered to refund the purchases of anyone buying at least $6,000 in furniture and accessories from the store, should the slight underdog Seahawks win the Super Bowl.
Last night, Seattle dismantled the Denver Broncos in a 43-8 blowout. About 1,000 customers took Gallery up on the offer which means, the retailer will be refunding about $7 million, McIngvale confirmed.
Gallery didn't have insurance backing this promotion nor the earlier playoff promotion, where 80% of the participating customers picked the right two teams heading to the Super Bowl. No insurance company would dare play those odds, McIngvale sale.
But McIngvale did, and the reward was a packed store, filled especially with young Millennial customers Gallery has been aiming to attract, he said. They've been ecstatic, he said, taking photos, tweeting about their wins, posting it on Facebook.
McIngvale said this has made these winners Gallery customers for life, and, "At the end of the day, it's the best advertising money we could spend."
He said the promotion is a short-term hit to the business but that customers "will be talking about this 20 years from now."
Also, "One of our goals for 2014 was to get our inventory down," he quipped about the large cash payout coming. "You've got to look at the bright side of everything."
However, that $7 million payout could curtail some of McIngvale's own spending in the future.
"Next time I come to High Point, I'll have to stay at the Motel 6," he said.