Furniture First retailers focus on consumers
Clint Engel -- Furniture Today, November 23, 2010
Peter Redman, left, Priceless Mattress & Furniture, Augusta, Maine; Ashley Miller and Matt Steinhilber, Indiana Furniture Showcase, Valparaiso, Ind.; and Mike Evans, Valley Furniture, Havre, Mont.
GREENSBORO, N.C. - Members of the Furniture First buying group combined this month's High Point Premarket with their weekend Annual Symposium here, featuring educational sessions, information on a host of new programs and plenty of networking time.
The symposium, held Sept 10-12, drew some 165 people including 122 retailers representing 65 companies as well as vendors, sponsors, speakers and guests.
Keynote speaker James Dion of Dionco, an author and a trainer, warned attendees that turbulent economic times are likely to continue for three to five years, but added that the survivors already have suffered the worst.
He offered tips on recognizing changes in consumer buying habits and ideas on how retailers can make changes to engage today's consumers. He said the industry has been terrible in the way it addresses consumers - with a constant "50% off" message that has them convinced everyone is ripping them off.
He also warned retailers to steer clear of Groupon, a hot new social networking-oriented discount website that works deals with retailers offering subscribers, for example, a coupon for $50 worth of goods at The Gap for $25. He derided the concept, saying it "rewards cherry picking" and essentially forces participating retailers to discount their entire offerings to "door crasher item" status.
Dion called Groupon "evil" and "the end of retail as we know it." He added that when a retailer discounts its entire store or a whole category, "that's either lazy or stupid."
Retailers also should recognize the new "thoughtful spending," trend, or the consumer's desire to spend on fewer but betters things, which translates into value, he said. He said consumers are shopping at companies he calls "genuinely nice," like Tom's Shoes, which gives a pair of shoes to a child in need for every pair it sells.
At the Furniture First Annual Symposium are Gary Hineline, left, and Kyle Beggs, Hineline Home Furnishings, Harlan, Iowa; Matt Huber and Mike Huber, Belfort Furniture, Dulles, Va.; and Steve Straley, Alpena Furniture, Alpena, Mich.
Dion also urged retailers to find ways to get their name out to customers by offering to help. He cited the examples of electronics companies that sponsor charging stations in airports, and Stove Top stuffing, which sponsors heaters at bus stops in winter.
Rick Segal, a former retailer and now a consultant, speaker and author, had the Furniture First group laughing with a presentation on the importance of good signage at stores. He said signage improvements can have an immediate significant impact on sales.
He recalled a shopping experience with his wife at Ikea. Segal turned to her and commented on the great customer service they were getting even though they hadn't talked to a single employee - the good signage throughout the store was the service.
He told retailers to answer four questions when creating signs: "What are you trying to sell me? How much? Why should I trust you?" and "What's in it for me?"
And he told them to have fun because consumers want to be entertained. One of his favorite fun signs was a warning in a store that any children left unattended would be given espresso and a free puppy.
Furniture First's Lark Shirley- Stevens and Hayley Leocha spoke about how the group is helping members combat some of the price shopping that is fueled by new barcode reading technology and other applications available online and from smart phones. The group's approach is to broaden its private-label programs with supplier partners, including dedicated websites for the brands, to prevent comparisons.
Bill Hartman, left, Furniture First; Dianne Ray, Garden City Furniture, Garden City Beach, S.C.; and Riley Griffiths, Riley’s Furniture Gallery, Monroe, Ohio.
Attendees also learned more about Guard Master Performance Bedding Essentials and The Seep System, which has helped retailers boost their mattress business with the sale of related products including pillows (with specific models for side, back or stomach sleepers) and mattress protectors.
Impact Consulting's Tom Zollar and Bob George provided information on Impact's FurnitureCore.com industry portal for demographic and other market information.
A new agreement between Impact and Furniture First is giving the group's 180 members access to ongoing measures of their market share - including by product category - along with other market information to help retailers identify areas of opportunity. The buying group is covering the costs of three quarters worth of reports and the first consultations for all members who participate.
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Furniture First symposium draws 122 retailers
Sep 13, 2010
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