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High-End Retailers Need New Game Plan to Survive

Lissa Wyman -- Furniture Today, September 29, 2011

Lissa Wyman Rug EditorRetailer Einstein Moomjy filed for Chapter 11 bankruptcy in August. It came as no surprise to the home furnishings retail community in New York and New Jersey, but it saddened even its fiercest competitors. Industry observers blamed the lingering recession and the Paramus, N.J.-based company's costly expansion from floor coverings into home furnishings.
     I think those are handy excuses, and they certainly were contributing factors. But perhaps there were deeper causes tied to the sociological and demographic factors that are changing the world as we know it.
     Einstein Moomjy seemed to make all the right moves for many years. While some rivals made big noises, over-expanded and crashed and burned, the owners of Einstein Moomjy took a slow and steady path. They were never afraid to diversify and try new things, but they stuck to their belief that fine design, quality and service would prevail over price cutting and financing come-ons.
     Maybe that core belief is what failed them in the end. Perhaps Einstein Moomjy and other fine but now defunct stores were victims of their own success. They catered to customers who pretty much stayed in one place and thought of furniture as a once-or twice-in-a-lifetime event. They bought high quality merchandise 30 years ago, and they don't perceive the need to change what seems to be holding up quite well in their homes. They're proud they bought beige, avocado and mauve because it never goes out of style.
     Today's consumers are restless and on the move. When it comes the latest technological toys, they'll happily max out their credit cards. But furniture and rugs? Naw. They're happy with the fashionable but inexpensive stuff they find at the big furniture chains and mass market stores. It looks great, and who cares if it doesn't last? They'll buy something new when it breaks down or looks a little dowdy or they move on.
     I'm not saying that either type of consumer or merchant is right or wrong. I'm just saying that things change, and you can never go back to the good old days. Hanging on to old belief systems is a sure recipe for disaster.

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