Norwalk retailers forming new chain

Will have new name, new suppliers

Gary Evans -- Furniture Today, October 6, 2008

TULSA, Okla. - About 30 former Norwalk store owners are expected to begin converting their franchises to a new chain of retail stores that will emphasize design and service over price, Greg Wyers, president of the group, said last week.

The stores, located throughout the United States and Canada, will be called Luxe Home Interiors (or Luxxe,

The former Norwalk store in Tulsa, Okla., is shown with a computer-generated logo of Luxe, the name a group of former Norwalk retailers have chosen for a retail chain they are forming.

depending on how the spelling works out with Internet URL properties and other concerns), said Greg Wyers, owner of a former Norwalk store in Tulsa, Okla., and the organization's president.

"All of the stores will begin a conversion process to the new brand from Norwalk over the next 30 to 60 days," Wyers said. "It will be quite a shift."

The new organization represents the majority of the Norwalk franchisees that are still operating, with a combined buying power estimated at $56 million when the stores were Norwalk units, he said.

Norwalk closed its five company-owned stores shortly after the company was forced to shut down in July, when lending partner Comerica pulled its credit line at $11 million. Since then, Norwalk's Ohio manufacturing operations have been purchased by local investors who expect to resume production as a new company under the name Norwalk Custom Furniture.

Greg Wyers, at front left, is president of a new retail organization formed by this group of former Norwalk store owners who attended a meeting in Tulsa, Okla.

The former franchisees are working on signing a network of core vendors - not including Norwalk. Wyers said the organization is still solidifying its vendor lineup and is working with Stanley, Century and Hooker in case goods and Miles Talbott/Michael Thomas, C.R. Laine, Huntington House and Precedent in upholstery, and also is talking with suppliers of rugs and accessories.

Since they have been unable to get product from Norwalk, the stores already have been using several of the new suppliers. While the product is now vendor-branded, the Luxe organization plans to eventually shift its merchandise to private label, Wyers said.

While a few of the store owners expressed reluctance in giving up the Norwalk name, Wyers said the name is now the property of the new owners of the Ohio factory, who told the franchise group's attorney that they don't intend to have branded stores.

At this point, Wyers said the organization doesn't have "an official license agreement but we assume it's going to morph into that. We absolutely project to grow and add stores to our group."

The blueprint for the new stores will focus on affluent customers and upscale merchandise, said Wyers, adding that members have established standards of operation that include highly personalized services. Promotional activities will be image-based and service oriented - like the promotional strategy for Lexus cars, he said.

"We'll have promotions but they won't be characterized by a bunch of (no-no-no sales) and discounts," he said. He said members are already working on "realistic, everyday markups so we don't have to have artificial claims."

The group also plans to offer incentives to its sales and design staff in the form of trips and conferences to fulfill service goals, and will produce a design and home furnishings publication similar to the 40-page magazine that Norwalk once produced for its stores.

Web sites for individual stores, e-mail and direct mail programs also are planned.

Wyers spoke highly of the old Norwalk, describing it as "a phenomenal, wonderful, successful manufacturer." But he said that having a select group of core vendors is expected to be a better option than having a single key supplier, since the stores will have access to a broader range of products and styles.

"We began in Tulsa converting right after the (Norwalk) factory closed on July 18. By early August we already had catalogs and fabrics here (from new vendors). This is our 14th year in business and even in this economic environment our August was the biggest in our history by 30%," said Wyers.

"I know we need more evidence than that but September is on track to being our biggest yet," he said, although he noted with a chuckle that the events of the past two weeks could put "a damper" on the progress.