Thomasville says its store network ready to grow again

Will open first stores in more than two years in Dallas, Chicago

Clint Engel -- Furniture Today, March 31, 2011

This Thomasville store is in Jamestown, N.C. This spring, the company will open its first new stores in more than two years in Dallas and Chicago.

THOMASVILLE, N.C. — Thomasville Furniture says it's a different company today, ready to grow again in a better retail climate with the opening of two company-owned stores this spring in Dallas and Chicago and a third in the works.

They'll be the first new stores in the company's dedicated network in more than two years.

An 11,000-square-foot Dallas store - its second in the market - will open in late April in the Galleria shopping district, near major retailers such as Nordstrom, Saks, Macy's and Williams-Sonoma. In early May, Thomasville will open a 16,000-square-foot Chicagoland showroom in Lincoln Park, Ill.

The company also is negotiating on a lease for another 12,000-square-foot store in the western suburbs of Chicago and hopes to have that one open in July, said Thomasville President Ed Teplitz. He would not disclose its investment or projected sales for the stores.

Thomasville now owns and operates two Chicagoland stores in Geneva and Naperville, Ill., and an independent dealer operates another Thomasville showroom in Orland Park, Ill. The company has additional distribution in the market through three Walter E. Smithe Furniture stores.

"We're ready to grow," Teplitz said. "Thomasville is a different company from what we were three years ago. We have successfully managed through an historic economic period and we are absolutely better for it."

Teplitz cited "marked success in product development, margin management, distribution strategy, dealer relations and retail operations during this period," but did not disclose sales or profit for the Thomasville store network.

According to parent company Furniture Brands International's 2010 annual report, there were 117 dedicated Thomasville stores including 48 company-owned stores at the end of the year, down from 125 stores, including 49 company-owned units, at the end of 2009.

Thomasville's company-owned stores posted net sales of $107.8 million last year, up from $84.9 million in 2009, and same-store sales increased 18.8%. The operating loss for the stores decreased to $18.1 million from $20.2 million.

Teplitz said there were extraordinary circumstances built into these numbers including dark stores and liquidation sales, "but we are seeing margin improvements in our retail stores."

"Dallas and Chicago are major markets with significant opportunity for our brand in a variety of well-orchestrated retail channels," including company-owned, independently owned dedicated stores and in-store galleries, he said.

Furniture Brands recently hired a vice president of real estate, Greg Darus, who is spearheading Thomasville's plan to grow its footprint, Teplitz said.

The company has identified at least six additional markets to roll out stores, though the timing hasn't been nailed down and will depend on real estate and other negotiations. Teplitz said he would like to have a couple more company-owned stores - in addition to the three announced - open by year's end if possible.

While there haven't been many dealers lining up to open stores over the past few years, that could be changing, too, Teplitz said, noting that Thomasville has been talking to a number of people about opening independently owned stores.

On the dealer relations front, Thomasville also recently established a dealer advisory panel that plans to meet quarterly.

"They're right in the marketplace with the consumer, so we want to get their thoughts on programs and product we're looking to introduces and make the changes they recommend," Teplitz said.

"Our independent store owner network is dedicated and strong," he said in a press release. "We're focused on growing this business."

Thomasville said it's also is committed to growing its gallery business in markets where that strategy makes sense.

"We're flexible so long as we're effectively serving the consumer and our retail partners," he said.