Retailers: How they're weathering the storm

Retaining existing customers, attracting new customers and maintaining revenue levels - those are the top three issues on the minds’ of furniture retailers according to an exclusive online survey conducted by Furniture/Today.In preparation for last week’s High Point Market, Furniture/Today surveyed furniture retailers and asked for their strategies and plans for weathering the current economic downturn. Results were received during the first quarter of 2009 from nearly 150 retailers.

Better understanding consumer attitudes and behaviors was a key issue to nearly nine out of ten respondents. Another eight out of ten retailers think focusing on core competencies is also an important business issue. As a result of the recent economic meltdown, retailers are also understandably concerned with maintaining margins and market share and controlling inventory levels.

The No. 1 way retailers plan to tackle these issues is by evaluating sales and operations performance, the answer given by 76% of responding retailers. As one retailer notes,” I will evaluate the profitability of every square foot of my store.” Another multi-store retailer reveals, “We measure and reduce every cost to match our current volume. We chart and measure everything and always strive for improvement in efficiency.”

Other leading ways retailers plan to weather the storm:
- 71% are dropping unproductive lines
- 63% are increasing their online presence, either by adding a web site or enhancing their existing one
- 56% are reducing inventory levels
- 56% are adding new styles
- 51% will use a direct marketing campaign

Top-line results of this survey are included in Furniture/Today’s April 2009 Market Overview. The Market Overview also includes external economic data, such as unemployment figures, housing stats, consumer confidence and import data, as well as up-to-date product and style trends.