Monthly Issue
From Home Furnishing Business
August 6,
2013 by Sheila Long O’Mara in Business Strategy, Industry 
No one ever said change was easy. In fact, for most, it’s human nature to resist change. We tend to get comfy and cozy with the status quo. At least until the status quo becomes so static and uncomfortable that we’re eager for a few changes. Then, look out because we’ll go searching for a better way.
Surely by now you’ve heard our news about Home Furnishings Business being acquired by Impact Consulting Services of Atlanta. If not, I’ll write it off as it being summer and vacations and the ever-revolving market cycle our industry has us plowing through. That’s a wee bit of change for the team here at the magazine; a change of which we’re all very welcoming.
Personally, I’ve known Bob George, the owner of Impact Consulting, for close to 20 years, which is when I first joined this crazy industry as a reporter. He and I have been sparring through interviews for years. He has great stories to share of our many conversations and the information gleaned; just ask him!
We’re still working to tie all of the loose ends together of, but once those are knotted, our readers can look forward to a more powerful, more informative read from Home Furnishings Business both in print and online. Due to our quick publishing schedule in July, we weren’t able to implement some of the enhancements we’ve got tucked up our sleeves. Here’s promising some beefed-up reporting and storytelling coming your way in September.
One noticeable change we were able to turn around for this issue was a beefed up version of “What Sells” on page 37. We’ve taken industry statistics and data that Impact’s FurnitureCore has gathered on the youth furniture market and combined the data with what retailers tell us are they’re top-selling items. The figures and data—information we didn’t have access to prior to our June buyout—make for a more powerful feature packed with useful information for our readers.
Look for more meatier “What Sells” features in future issues. This will become our footprint for the department.
The breadth of information available through FurnitureCore is mind-boggling. While the HFB team doesn’t have complete, unfettered access to the data available on FurnitureCore, we’re excited about the industry information we will be able to use to inform you. Our mantra has long been to provide useful insight into the industry to help our readers improve their businesses. That will not change.
You should know that I am still trying to convince Bob that more sharing of data is the better way to go. So far though, he’s not buying it!
The other aspect of information sharing that has me giddy is the ability FurnitureCore has to tap into the consumer and what she wants and needs from her home furnishings and the shopping experience. How darn cool is that?!? We’ll be able to field questions to your end consumer.
Home Furnishings Business has a fun, bright future ahead, and as always, I look forward to your input and your part of the industry’s conversation.
Enjoy!
August 6,
2013 by Bob George in Business Strategy, Industry
Let’s get that question behind us. Simply put, the mission of the Impact Consulting group of companies is to integrate information into the management process of furniture retailers and manufacturers in order to create high performance companies.
We have accomplished our mission through management consulting (Impact Consulting), market research (FurnitureCore.com), performance groups (Impact Performance Groups), industry reports (Impact Reports), and now publishing (Home Furnishings Business). The acquisition of Home Furnishings Business will complete the spectrum of information delivery. The following graphic illustrates:
What is the Objective?
First, Home Furnishings Business will continue its commitment to journalistic integrity by publishing an unbiased perspective of what is happening in the industry.
What will change is the depth of our discussion. Our masthead has been changed slightly from “Strategy for the Furniture Retailer” to include all industry participants.
The fine line between manufacturer and retailer has increasingly blurred.
Next, using our proprietary industry databases and models, we will address the strategic issues facing the total industry. In order to frame the issues, we ask for participation from the industry—retailers, manufacturers, and suppliers. We will supply the research. Our mission is to initiate a true dialogue within the industry, and we invite you to be a part of this dialogue.
What is the Publisher’s Role?
A publisher’s role is not unlike that of a president of a company or a managing partner of a consulting firm.
In the case of a magazine, it encompasses the responsibility for all aspects of the periodical from creating content to transmitting the product via print or the Internet all within the parameters of generating a return on investment. Overlaying all of this is a commitment to pursuing a mission within the parameters of a code of ethics.
This is our pledge to our readers. We are confident that this commitment long term will be the foundation of our success.
As always, we ask for your input. Teaming our readers’ input with our industry knowledge and analysis will allow us to continue building a strong industry publication.
Do not hesitate to contact me with your comments. My e-mail address is bobgeorge@homefurnishingsbusiness.com.
July 1,
2013 by Sheila Long O’Mara in Business Strategy, Industry
Welcome to our inaugural 40 Under 40 list of retail executives who are making a difference in our industry and their communities. The foundation for the list was created in part by our readers, who took the time to make thoughtful and enthusiastic nominations.
The constant ping of my e-mail during the nomination period last month told me that we’d struck a nerve with our community in celebrating and spotlighting the bright young faces in furniture.
To those skeptics out there who continued with their snide comments about the furniture industry having no young people in it ... well, that’s just not so.
As the nomination deadline approached, we had more than 60 names on the list. That’s quite the slate to winnow down, and trust me, if 60 Under 40 carried the same sing-song word play, we would have been all over that!
Just so you’ll know — we had a number of young execs from the supply side of the furniture industry to be nominated. Those, however, will have to wait on the sidelines for a bit while we go about honoring RETAILERS.
As we were compiling the final slate, a few things jumped out at us that I think are worth mentioning.
The Generations
When you break down the list, more than half of the 40 Under 40 are working in their family business. Some are the fourth or even the fifth generation to follow in their forefathers’ footsteps.
If those great-great grandparents could only see how their legacies are working now, they may be shocked to find the new tools being put to work in the business. Tools like social media, the Internet and retail technology that allows for easy sales tracking, payroll and other retail back-shop operations. I’m sure the generations before would be in complete wonder of it all. Can you imagine the great, greats with an iPhone? That would be a super picture to Tweet or post via Instagram!
Gender Roles
Men make up the bulk of the list with women holding 25 percent of the slots on our 40 Under 40 list.
I’m pretty certain the number isn’t skewed because of some huge conspiracy to prevent young women into the retail environment. Instead, I think it’s more likely the nature of the beast. Furniture retail requires long hours that often include nights and weekends and aren’t the most family friendly.
Future Leaders
Our slate is filled with strong, smart, creative, intuitive, savvy retailers who are shaping the future of our industry. They continue to push themselves, their peers and their co-workers to adapt to the ever-changing retail environment.
The furniture industry is much better off with them being part of it.
As President Franklin D. Roosevelt once said “We cannot always build the future for our youth, but we can build our youth for the future.”
This under-40 set is definitely built for the future and is well on its way to shaping the industry for the next generation of leaders.
Enjoy the list.
July 1,
2013 by Home Furnishing Business in Business Strategy, Industry, Retail Snapshot
Jerome’s Furniture Looks to Expand Its Customer Reach While Keeping Firm Hold of Its Base.
A family company that looked outside the fold is making waves in Southern California’s furniture retail scene.
Jerome’s Furniture in San Diego had built a thriving business, and while the Navarra family behind the company remains firmly in place, some new blood has added some pop.
CEO Lee Goodman joined the company six years ago, bringing in a fresh face with furniture retailing chops developed at Bob’s Discount Furniture to bear on a promotional institution in the San Diego area.
Jerome’s is expanding into the Los Angeles market and bringing new retail concepts to bear in its efforts.
“Jerome’s has been in business in Southern California for 59 years,” Goodman said. “We are family owned and have a genuine relationship with the community. San Diego has seen Jerry Navarra (our chairman) on TV for the last 40 years, and now his sons Mark and Jim Navarra have begun to show up in some branding ads. “People know us and trust us. We honor our relationship with them by not participating in phony promotions and gimmicks. We have every day low prices. It’s a much more respectful approach to the furniture buying process and our industry. As we expand into the L.A. market, where people are not as familiar with our brand, it presents a wealth of opportunity.”
IT STARTS WITH PEOPLE
What makes Jerome’s different from other home furnishings retailers in the markets it serves?
“To sum it up, it’s our people,” Goodman said. “We have built a team here that is nothing short of phenomenal. Nothing works without the right people, their ability to execute our strategies at the level they do is extraordinary.
“It all starts with the Navarre family. Their warmth and generosity, coupled with their trust has created a relationship that allowed us to make the kinds of decisions we have to make to be successful.”
Those changes included a reorganization of management, but the biggest was a move away from running promotions and sales to working with the “Jerry’s everyday low price” that Goodman mentioned above.
A combination of an established retail brand and avoidance of gimmicky sales paid dividends during the recession.
“It was hard on us, just like it was on the rest of the world,” Goodman said. “We focused on doing the right things and staying disciplined to our model. During tough times, the trust our brand created through the years is seen as a real plus.”
IMPROVING THE EXPERIENCE
Jerome’s has stepped up the shopping experience in its stores. In-store signage allows is helping customer to engage with the brand in an informative, fresh way.
“In-store signage is now more design- and creative-oriented,” Goodman said. “It’s all under the umbrella of improving the customer experience, and we do serve a wide range of customers.
“You can’t be all things to all people, but with our large selection, we’re able to approach a lot of them.”
Finding that “right” selection of product so the consumer can find what she’s looking for is easier said than done, Goodman said.
“After that, it becomes all about value. We pack a lot of features into our product for the dollar,” he said. “We have decades of relationships with vendors, where it makes sense we go direct, and we negotiate great prices on behalf of our customers. We work diligently with our partners to ensure value.
“Merchandising is dependent on what sells best in each individual market. We do notice style preferences shift from market to market, so it’s constantly reviewed.”
THE RIGHT TOOLS
Jerome’s also gives sales associates the tools they need, such as tablets, to create relationships with customers and ensure they are making the right decisions for their home. The store also shares numbers to keep associates on track.
“We get closing rates at not only the store level but at the individual salesperson level—and we find out where they lost the sale, based on questions sales managers are trained to ask,” Goodman said. “We create a dashboard for people so they gain understanding and a perspective of where they stand.”
Metrics “are a big part of who we are,” he added. “We use them to help guide us in finding issues in our company. What products are (customers) coming in for? What’s the impact of our advertising?
“It allows us to make changes based on real information. (For example) We’re a little light on bedding compared to where we want to be. We’ll look at the numbers to see where we should be changing our product offerings.”
SENDING THE MESSAGE
How does Jerome’s express its retail vision in marketing and advertising efforts?
“We run several different messages at one time—branding, services, product focused—whatever we feel is most important for us to communicate at the moment,” Goodman said. “Our target customer covers such a wide range of the American public, we want to be relevant to what they are looking for.”
In addition to television, radio testimonial ads and the occasional print ad, the retailer is exploring digital more and more, and it publishes an upscale custom magazine twice a year.
“As far as digital goes, we’re on Facebook, Pinterest, Twitter, and Houzz.com,” Goodman said. “We are constantly revamping our Web site. We’re learning like everyone else, but I know those aspects of our business are only going to continue to get more and more important.”
The aim is to build a big tent that serves as wide a base of consumers as possible.
“No matter how much people make or how much they want to spend, we’re going to have something for most of them in our model,” Goodman said. “We can send out different types of messages to different people without losing who we are. It’s not class-based. All those different ingredients, all those different prices, reach a lot of people.”
Moving forward, Goodman pointed to strategic partnerships with suppliers “and a little thing called the World Wide Web” as keys to future growth.
“We look at e-commerce as a tool to, first, engage customers; and then drive them into our stores,” he said. “The Internet is our focus. We’re going to expand our customer base but not lose our existing customers.” HFB
June 1,
2013 by Powell Slaughter in Business Strategy, Industry
Taking Time for Getting Away, Getting Healthy Can Pay Dividends.
When’s the last time you insisted that someone on your staff take a vacation? You might miss them while they’re gone, but you might find yourself with a more productive, satisfied employee upon their return.
At Jerome’s Furniture in San Diego, vacations are part of the planning process.
“I tell everyone on my team to always have a vacation planned,” said Jerome’s CEO Lee Goodman. “It gives you something to look forward to and helps you do your job better.”
Goodman believes the anticipation of a fun time away from the job helps people feel better about what they’re doing, especially when problems pop up. They know they’ll be getting a break.
Vacations are all part of striking a balance between work and life, but research shows a lot of people aren’t taking time off.
According to a Harris Interactive consumer poll last May of 2,634 adults, three in five adults (60 percent) planned to take at least one leisure trip through August. That’s down from the last such polls, 65 percent in 2009 and 66 percent in 2010. The percentage of consumers planning multiple trips also dropped.
VACATIONS CAN IMPROVE HEALTH
Canadian insurance and investment provider Standard Life operates an online wellness center where clients can get advice on a range of lifestyle and health issues. Vacations are part of a healthy lifestyle, according to the company.
The wellness center enumerated ways a vacation can benefit your health.
The very first benefit is reduced stress. Studies have shown a direct link between stress and health conditions such as headaches, cardiovascular diseases, cancer and other types of infections acquired as a result of a weaker immune system. Vacations also reduce the incidence of psychological burnout.
Studies also have found a positive relationship between vacations and intellectual function; and that well-rested mind is often more effective.
A vacation can improve your physical health by providing opportunities to catch up on sleep and exercise, two simple remedies for many aches and pains.
All work and know play isn’t good for family relationships. A helps families re-connect in a different setting and to build lasting memories.
Finally, taking time off can be a great opportunity to meet new people, laugh and do the things that you most enjoy.
Rest, relaxation and stress reduction are important for a person’s overall well-being.
Yes, some of this can be accomplished with regular, daily activities like exercise and meditation. However, vacation—an extended time away from work—is an extremely important part of staying healthy and balanced, according to primary care doctors and mental health professionals.
Jamine Hanson, a psychologist, is adamant about the benefits of vacation on a company’s bottom line and a person’s health.
“The impact taking a vacation has on someone’s mental health is amazing,” she said.
“Most folks return from vacation with better life perspective and are more motivated to achieve their goals. Even a relatively brief time-out can be helpful.”
Another study, this one conducted by travel planning site Expedia showed that the average American earns 18 vacation days a year, but only uses 14 of them.
According to the study, the American worker is sadly behind on the vacation calendar when compared with workers in other countries. Every European country included in the survey reported more vacation days earned and used than Americans.
France is at the top of the list with the average worker earning 37 vacation days and using all but two of them.
So, just what is this doing to our state of mind? Well, Hanson said people who don’t carve out down time for unwinding, may find it harder to relax in the future.
“We require down time so that our bodies can go through a restoration process,” she said. “Only when we are safe from external stresses can our bodies relax enough to truly restore themselves.” HFB
Inset Story:
Wellness Planning
Wellness programs can benefit employees—and their employer—by promoting their health, safety and well-being.
The California Department of Public Health offers the following suggestions for implementing a worksite wellness program.
• Why develop a wellness program?
A wellness program may improve staff health, morale and productivity.
• What are some components of a wellness program?
A program may include some or all of these components: wellness newsletter, health risk assessments, health screenings, workshops on wellness issues, walking groups, health fairs, healthy potlucks and healthy snacks for meetings and breaks, physical activity breaks, fitness classes, smoking cessation classes; and incentives such as water bottles, insulated lunch bags, drink coolers, tote bags, stress balls, pedometers and cook books.
• How do you start a wellness program?
First, develop an advisory committee that represents the interests of employees and management.Second, conduct a needs and resource assessment: Determine employee needs, interests, concerns and schedules; identify available space and facilities; determine employer liability under existing health insurance, property owners’ insurance, workers’ compensation to pay, time frames and relevant skills; and identify relevant partner organizations.
Third, develop program components and activities based on the findings of the needs assessment: Determine if services will be provided by agency personnel, consultants or local community agencies; partner with other health-related non-profits organizations to broaden program offerings; develop a written document of program components and expected outcomes; develop formal policies for administering the program; and develop an evaluation plan for the program to specify how impact will be measured (include cost, participation rate, employee satisfaction, employee behavior changes and impact on participant education).
Fourth, include incentives, such as employee release time or items such as pedometers or water bottles, to encourage employee participation.
• Implement the program.
• Evaluate the program.