Sources trim case goods lines
Sales activity leads to less bedroom, formal dining
Thomas Russell -- Furniture Today, June 30, 2010
Lane is placing greater emphasis on the occasional and home entertainment part of its wood line. This Roxy occasional and home entertainment group is made with wenge veneers in a mink brown finish, and is shown with the Roxy stationary upholstery collection, featuring finished wenge feet that complement the wood pieces.
HIGH POINT — A number of case goods companies are altering their product mix in order to focus on where they see the most sales activity.
Some are abandoning key categories, such as bedroom or formal dining, as orders for the products have declined.
Hammary, for example, is exiting bedroom and formal dining to focus on occasional, accent furniture, home office and home entertainment. It also will still offer a small amount of casual dining, said Jack Richardson, president of Hammary and sister companies Lea Inds. and American Drew.
"We have been letting our inventories of bedroom and dining room dwindle over the last six months," he said. "We are gradually selling those down."
Officials decided to scale back the line earlier this year after parent company La-Z-Boy decided to merge Hammary into American Drew.
The affected categories represented less than 10% of Hammary's business, Richardson said.
However, the change will allow Hammary to strengthen its occasional and home entertainment lineup. It also gives each company a distinct niche, with American Drew specializing in bedroom and formal dining.
Lane Furniture is also shifting its emphasis in case goods, toward occasional and home entertainment to complement its motion and stationary upholstery.
Lane hasn't introduced new bedroom or formal dining groups for two or three markets, said Donnie Lesley, merchandise manager of wood products. The company now offers four bedrooms and three formal dining groups, down from 15 of each as recently as 2007.
"Our focus is on the living area and our assortment didn't reflect that," Lesley said, noting that more than half of Lane's wood sales and SKU count a few years ago were in bedroom and formal dining. "Our focus now with occasional and entertainment is to flip our assortment where that is the majority of the business and the SKU count."
In 2007, only about 30% of Lane's wood sales were in occasional and home entertainment, Lesley said. Today it is fast approaching 60%.
Lane will keep its existing bedroom and formal dining groups in the line for as long as they keep selling, but doesn't plan any new introductions.
"Moving forward, bedroom and dining room might represent 30% (of sales), but that would include casual dining," Lesley said.
In altering their wood strategy, Hammary and Lane have plenty of company.
Magnussen Home has gotten away from formal dining sets that were part of collections to focus on standalone bedroom and occasional groups.
Lifestyle Enterprise is abandoning its Forbidden City case goods division, which had represented the top of its bedroom line. It is now focusing on its core promotional to lower-medium-priced bedrooms and formal and casual dining sets.
As companies have made product line changes, some have also adjusted pricing.
Hammary has slashed the starting retail price point of its cocktail tables to about $150, down from $299. About half the occasional line is priced to sell at $299 or less, with about 25% in the $299 to $499 range and 25% at higher price points, Richardson said.
Lane's opening price points for occasional also have sharpened over the past two markets, with cocktails starting at $199 retail, compared with $249 to $299 previously. Home entertainment consoles now start at $549 to $599, down from $649 to $699 previously.
"We want to make sure our occasional assortment makes sense with the upholstery assortment," he said. "Before, there was a bit of a disconnect in styling, scale and price points."
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