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Seek the Unique
September 13,
2012 by in UnCategorized
By Home Furnishings Business in on September 2012
The recession hasnt been easy for any business, but it gave high-end Texas home furnishings retailer The Arrangement a one-two punch.
First, a sour economy put a dent on consumer appetites for buying anything they couldnt do without. Second, The Arrangements next-door neighbors on both sides of its Dallas storelocations for Bombay Co. and Linens n Thingsshut their doors.
The Arrangements response: Increase advertising.
We pretty much lost the walk-ins, said Katherine Snedeker, who goes by the title chief of The Arrangement, which has a location in Houston that opened to complement the Dallas store. The spaces on either side of us were vacant for three years. We were in this strip center sitting between two big holes. Fortunately, The Arrangement had a compelling story to tell. Since she bought out her partner in 2004, Snedeker had been building a niche in offering a lot of products customers literally cant find anywhere else by custom-ordering most of what they see in the storesall with a Modern West personality.
You never stop learning, Snedeker said of the past couple of years. Our focus was to keep our clients and keep ourselves in business, so the priority was to get more unique product and make ourselves more meaningful to the clients we had.
Customers have responded: Sales are tracking to reach near $15 million this yearup around 20 percent from 2011at The Arrangements 15,000-square-foot location in Dallas and 10,000-square-foot Houston store. Two warehouses of 26,000 square feet in Dallas and 10,000 square feet in Houston support the operations.
LOOKS FOR THE NEW WEST
The Arrangement today is an incarnation of Snedekers vision of a modern western style.
Snedeker began working at The Arrangement part-time in 1989. Founder Dave Hiller had opened the store a year earlier.
Her background was in fashionSnedeker ran a fashion advertising company in New York City before her husband was transferred to the Dallas area.
Snedeker had always been a fan of Western styleshe bought her first pair of cowboy boots in New York, and likes wearing that footwear most of the timeso she was excited about a move to the Big D.
But when we moved down here, I was looking around and their seemed to be a gap in that style, she recalled. I wanted to find out where were the rock starts, the country western stars were shopping.
At the time, she said, The Arrangement was an amalgam of looks.
We moved into a flavor of Santa Fe, and we had local resources for the product, a mix of low-end to mid-range pieces, she said.
When Dave Hiller died, his son Jeff Hiller took over the operation, and he and Snedeker became partners in the business.
I was the lead designer at that point, and we decided to go high-end, she said. Im a risk-taker, and we wanted the store to be different. We still lean Southwest, but we headed more Texas Western. That meant a lot of furniture styles, since homes here were originally furnished with antiques from all over. You might find a French country piece or another style.
Now, we have an environment inspired by the West, but its modern.
Snedeker bought out Hiller in 2004. Hiller, who runs his own sales and marketing company, also went on to serve several years as the president of the Sustainable Furnishings Council until Margaret Casey assumed that post earlier this year.
Weve done everything we can to brand (The Arrangement), so both stores are very similar in design layout and presentation, Snedeker said. There are subtle differencesone market might lean toward long tables with leaves, the other might prefer round tables.
BESPOKE MERCHANDISING
Both stores definitely share bespoke atmosphere, something easier said than done.
We sell off the floor. Its very complicated and a lot of work, Snedeker said. Well probably run two trucks (from the warehouse) today to get the floor ready for tomorrow morning.
We have a lot of one-of-a-kind pieces. With the economy, people arent stocking so much, and we have an instant-gratification clientelethey want it right now. You have to have more inventory to pull it off. We want product with an atmosphere of magic, elusiveness, something you havent seen anywhere else.
While maybe 15 percent of The Arrangements sales are special orders from customers, in essence most of what one sees on its floors is special orderfrom the retailer itself.
We do a huge amount of custom ordering, Snedeker noted. We pick our leathers, our fabrics, our styles. When I bought out my partner in 2004, there was a deliberate effort to go high-end with a unique look. We no longer order product as-is from vendors.
The customers end up liking what they see on our floor as it is because they havent seen it anywhere else. We create our own bespoke product.
Inventory and constant re-stocking of floors arent the only challenges of The Arrangements merchandising scheme.
Its a lot more work, and a lot more investigation, cherry-picking of lines, and the vendors dont always like that, Snedeker said. Were probably going to go into custom building with some vendorswe have to have unique product.
The retailer takes its well customize for you approach to its clients doorstep.
We do house calls differently than just about anyone, Snedeker said. Well load up furniture and accessories, and take it to the house. We put it in place and take back what the client doesnt want to keep.
We create a complete environment. One client had all this wood from an old barn that we used as art.
The client was pleasantly surprised with the result: Hed had all this amazing material and hadnt known what to do with it, Snedeker said.
IMAGE ADVERTISING
The Arrangements advertising buys concentrate on image and brand-building through television and print.
Were very folksy, very accessiblethe voice-over is male, and its got a little of the twang, but very sophisticated, Snedeker said. Its all image-building: We have this great look, and we can make your home elegant and comfortable.
Instead of shooting ads in the stores, The Arrangement uses multi-million dollar homes, fully outfitted with furniture and accessories.
We also do trade outs with realtorsthey can show houses with our furnishings in place, Snedeker said. We shoot print ads and television ads at the same time, and if we really love the house well switch out the settings for other ads.
I learned that from the fashion industry. Donna Karan would shoot her entire year in one photo shoot.
Social media plays a role as well.
We have Facebook and a couple of silly, fun things on YouTube, Snedeker said. We purchased 12 chairs from one of our vendors, and well use those as prizes for a photo/video contest.
Viewers can vote on entrants use of the chairs in photographs and videos.
LOOKING AHEAD
With business on the rebound, The Arrangement is taking steps to increase its reach among consumers in the markets it serves, through both brick-and-mortar and online initiatives.
Were probably going to expand the Houston store another 4,000 square feet, Snedeker said. Were negotiating the lease right now.
The Arrangement also is revamping its Web site, and the new version, in beta testing during July, was set to launch the first week in August.
We had an e-commerce site wed set up five years ago, Snedeker said. The technology has come a long way in that time, and what we had was cumbersome compared with what you can do now. It will be more value-added for our clients.
Adding value involves an advertorial approach on the new site that gives practical advice on how customers can achieve looks they might have seen on home and gardening channels.
The DIY programs dont really help them make decisions
for their home, Snedeker said. We want to make it fun and
interesting. Well put some of our personal opinions and experiences on it.
Visitors to the site might find The Arrangements folks take on restaurants and the local scene, even Claymation videos. Its all about personality, connection and positioning.
You cant compete in price if you only have two stores, Snedeker said. You have to stand for quality, originality and creativeness. HFB