Retailers are back in expansion mode

February 18, 2010

This week’s issue of Furniture/Today has something I haven’t seen in a long time.

I’m sure there are plenty of things to insert right here (like “my byline”) but what I’m really talking about is: lots of retail expansion news. On the first few pages, there are five stories talking about hundreds of stores planned.

Granted, most of it comes courtesy of Ashley and its plans for hundreds of smaller dealer stores — a story Gary Evans broke during the Las Vegas Market. But there’s also Rooms To Go’s plans for 16 stores over the new 18 months, City Furniture’s plans to reboot its expansion this year, Linder’s Furniture’s opening of the first of several planned superstores, and I.O. Metro’s store opening in Collierville, Tenn., with plans to enter Atlanta and open additional new stores later this year.

Whether this is another signal that the tide has changed is not yet clear, but it’s nice to see a shift away from all the store closings and bankruptcy stories we’ve been reporting.

The better news is adding up now. Bob’s Discount Furniture, which just opened its 36th store in Nesconset, N.Y., also has plans to expand into the Mid-Atlantic states next year. American Furniture Warehouse plans to reenter the Grand Junction, Colo., market with a 150,000-square-foot store and warehouse opening early next year. And late last year, Carls in Florida said it was opening its first Carls Mattress Superstore attached to its store in Stuart, Fla., with plans to roll the concept out to other stores and possibly as a stand-alone format, if it proves successful.

Leaders of the companies opening these stores indicated a mix of forces fueling the new growth plans — from attractive real estate deals in depressed markets, to signals that the consumers are once again starting to buy furniture.

No one seems willing to say for sure that the economy has completely turned the corner and probably with good reason. It seems a week doesn’t pass without the release of a new hope-crushing report. One of the latest came earlier this week — a new study that says 5 million more homes are expected to move into foreclosure in the next few years. And today, the U.S. Labor Department came out with another weekly jobless claims number.

But for now, we can at least hope for a true turn and a new trend: that the consumer is finally creeping back into the market and that retail survivors are scaling their businesses appropriately to win.

Posted by Clint Engel on February 18, 2010 | Comments (7)

July 20, 2012

In response to: Retailers are back in expansion mode
Nthaby commented:

You know, I always thuoght most companies had a communications department where they'd pay at least a few employees to scour the web for blog references and comment on them. Just made sense to me.Turns out, most don't. That's not only strange, but downright silly.

July 13, 2010

In response to: Retailers are back in expansion mode
Stephen Midwest Sales commented:

its always good to see some positive blogs/posts in a challenging economy...but really, wholesale/retail is always a challenge! we have added 200 plus partners in just over 2 years in the midwest by working hard and selling good product...the formula is simple and as old as the hills...www.nightanddayfurniture.com 360-852-2198.

February 24, 2010

In response to: Retailers are back in expansion mode
Gil commented:

Well, we can go back and forth and move around all day long and say this person or that company is expanding stores. The true beauty of the story is that it exemplifies the American spirit to charge forward and expand and be ready when the upturn hits and those that new to grow ahead of that curve will take true advantage of the next economic upswing. I am happy Mr. Engel wrote this piece to give those of us who believe in growing during the lean times cause to wake up and go "I guess I ain't so crazy after all!"

February 22, 2010

In response to: Retailers are back in expansion mode
David B commented:

you guys always seem to forget or disregard MOR Furniture of San Diego/ in the last year they have opened 3 new stores-in Murietta, CA; Portland, OR; and most recently their FIFTH location in Phoenix

February 19, 2010

In response to: Retailers are back in expansion mode
In The Corner commented:

Also, The Dump is set to open their new store March 5th in Atlanta.

February 19, 2010

In response to: Retailers are back in expansion mode
Clint commented:

Thanks for the comment. Also, as soon as I posted this, I realized I had missed a couple of others: Jerome's in San Diego opened a sixth store this month, and Jeff Davis, formerly of Klaussner and Klaussnerhome stores, opened the first of several planned "pop-up" events stores in Charlotte, N.C., called Furniture Liquidators of America.

February 18, 2010

In response to: Retailers are back in expansion mode
Big M commented:

It is a fact that some companies are doing better at retail and that several manufacturers are doing much better such as LaZboy who is now reporting sales increases and a year of making money, Bassett is doing better, just to name a few. One of my biggest concerns is where are we going to get the talent to handle the expansion/management-so many have left this industry and you don't see any young blood coming in except some designers.
Food for thought.