Retailer Spencer Group partners with Canada's Dufresne Group

Clint Engel -- Furniture Today, October 31, 2012

Jim Spencer, left, and Jeff Edgeworth, the Spencer Group, Saltillo, Miss.; Mark Dufresne, The Dufresne Group, Winnipeg, Manitoba; and Chad Spencer, The Spencer Group. Spencer and Dufrense formed a new partnership and company, Dufresne Spencer Group, replacing the old Spencer name while keeping all executives and operations intact.

WINNIPEG, Manitoba — Top 100 company The Spencer Group has formed a new partnership with Canadian retailer The Dufresne Group, deepening an existing working relationship and giving Dufresne entry into the United States.

The two formed Dufresne Spencer Group, which replaces The Spencer Group name. It will continue to be led by Spencer's key executives, said Chad Spencer, DSG president.

Through the arrangement, Dufresne essentially has acquired an interest in Spencer, although the terms of the deal were not disclosed.

Saltillo, Miss.-based Spencer is No. 61 on Furniture/Today's latest Top 100 with estimated 2011 sales of $91 million. It has since opened two additional locations for a total of 11 Ashley Furniture HomeStores, two HomeStore outlets and two Stash home furnishings stores in Alabama, Arkansas, Kentucky, Mississippi, Tennessee and Texas.

Dufrense, recently recognized as one of Canada's 50 Best Managed Companies for the 13th consecutive year by the Canadian Imperial Bank of Commerce and other sponsors, operates 12 Ashley Furniture HomeStores in western Canada, 11 Dufresne Furniture & Appliance stores in Manitoba and Ontario, and the 93-store Dufresne Retail Solution Group buying group.

"We believe we are ultimately better together," Chad Spencer said.

He said the two companies have worked together for the past five years through a retail performance group. But now, instead of meeting two or thee times a year for two days at a time to discuss operations and best practices, they will be able to "create a new dynamic," cooperating fully, and sharing resources and talent 365 days a year.

"This is about the power of two great companies combining their resources, people and strategies," he said. "This partnership will provide great opportunities for our people, our partners and ultimately, our guests."

The Dufresne Group and the new Dufresne Spencer Group will maintain separate management structures and operations "with an advisory role connecting the two," according to a release.

"Both TDG and the newly formed DSG are focused on growth opportunities on either side of the border," the companies said.

"Partnering with the Spencers is a great introduction to expanding The Dufresne into the USA and we thank the Spencers for welcoming us as partners," Dufresne Group CEO Mark Dufresne said in a statement. "I couldn't be happier than to work with a respected organization with strong leadership, passionate teams and a record of success."

Jim Spencer, DSG CEO - former CEO of the Spencer Group - added that he welcomed Dufresne "as our colleagues, our friends and now our partners.

"I can't wait to see what the future will bring for DSG."