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Value Story, Quick Shipping Sell Case Goods

Thomas Russell -- Furniture Today, August 25, 2011

SLF’s Edington bedroom was a hit with buyers at market. Buyers liked the European traditional design elements of the group, made with white ash burl and cherry veneers. A four-piece set retails at $2,499.LAS VEGAS - Facing an economy that has had a dampening effect on wood furniture sales, case goods vendors promoted initiatives that make it easier for retailers to get competitively priced product more quickly and that continue to lessen the need for them to carry excess inventory.
     Based on dealer response, including order writing on new and in-stock items, many resources are hoping to boost sales in the category later this year and into early 2012.
     A.R.T. Furniture's new Intrigue collection, for example, was ordered to go into production prior to market and ships in October. The transitional 35-piece collection, which has three beds retailing from $799 to $1,099, received major placements, said Bill Sibbick, vice president of sales.
     Dealers liked the presentation of elm veneers in a cola finish as well as harlequin patterns on the backs of chairs that are repeated on custom hardware and the door fronts of a buffet featuring a silk screen resembling linen, he said. They also like the availability of in-line items including an updated American traditional group in elm veneers launched in April.
     "Right now it is critical to be able to complete a sale in a timely manner," Sibbick said.
     Magnussen Home had success with its new Connections program, which features four four-piece bedrooms priced from $1,299 to $1,499. Compared with typical pricing of $1,599 to $1,999 for similar groups, these represent opening price points for groups purchased one or two at a time out of the company's warehouse, said Richard Magnussen, president and CEO.
     The groups ship in about 10 days from the time of order from the Vietnam factory where they are produced.
     The company also received strong interest and orders on its Next Generation program of youth and second bedrooms launched in High Point. Available now, these too ship in as little as 10 days from Vietnam and in as little as 24 hours from the company's domestic warehouse facilities in Riverside, Calif.
     The quick availability also encouraged dealers to buy other in-line groups they had not previously ordered, Magnussen said.
     "When you have a solution where they can buy just what they need, then our market share goes up every quarter," he said.
     While he agreed that case goods continue to struggle in the marketplace, Riverside Furniture President Fred Henjes said the company continues to have success with its Conventry collection. Launched in April, it is expected to hit retail this fall. Henjes said the whole home collection, its strongest product launch in five years, did well among dealers in Las Vegas, some of whom had seen it at the High Point Market but hadn't yet ordered it.
     "This gives them a second chance to look at it," Henjes said. "Every category is doing well."
     He said dealers also responded well to the company's new Newburgh dining group, a rustic-inspired set in alder veneers and poplar solids in a ginger finish. Offering a rectangular trestle base table and a 52-inch round with four chairs that retail at $1,199 and $1,099 respectively, the group has five chair options and a sixleg bench.
     The response last week gives Riverside extra confidence that it will receive similar response on the bedroom, occasional, home office and home entertainment portion of the line planned for October.
     "We've had some strong feedback and placement among majors," Henjes said. Wesley Allen saw success with its Amanda Sutton line of imported metal beds, all of which are in stock and ship in less than 48 hours. In addition to the quick-ship capability of the line, dealers also liked the designs and the quality of finishes, which are unique to each bed.
     The company also received strong response on some inline domestically produced Wesley Allen beds shown in different finishes available in the line.
     "The finish can change the look completely," said Terry Steed, president. "If you show something that sells in a different finish, it gives a whole new concept of that bed." Leggett & Platt's Consumer Products Group saw strong dealer reaction to several new U.S. made upholstered headboards retailing from $299 to $329. These are already in production and are expected to start shipping in the next two to three weeks.
     In addition to specialty sleep shops, the items placed well at traditional furniture stores, a channel in which the company is looking to expand its distribution.
     Response was so strong, the company essentially oversold the orders it initially placed with the factory, said Ron Ainsworth, senior vice president of procurement.
     While dealers responded well to sharp price points, some wood resources found that dealers were willing to pay for groups at higher prices - if they offer a measurable value story.
     That was the case at case goods importer SLF, which had five new bedrooms from $1,999 to $2,499 for four pieces, representing the highest- priced bedroom in its line.
     Among the value-added features in these groups are the use of fancy face cherry and white ash burl veneers, finished drawers, cast applications and shaped detailing in headboards, footboards and case pieces.

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Quick-ship programs boost case goods

Aug 3, 2011

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