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The Arrangement

By Home Furnishings Business in on October 2012

When the economy goes South, businesses look to cut costs, and advertising can be one of the first items on the chopping block€”but not at The Arrangement.
The recent recession handed The Arrangement a one-two punch: First, a sour economy put a dent on consumer appetites for home furnishings; second, the retailer€™s next-door neighbors on both sides of its Dallas store, locations for Bombay Co. and Linens n Things, shut their doors.

€œWe pretty much lost the walk-ins,€ said Katherine Snedeker, who goes by the title €œchief€ of The Arrangement, which has a location in Houston that opened to complement the Dallas store. €œThe spaces on either side of us were vacant for three years. We were in this strip center sitting between two big holes.€
Snedeker€™s response: Increase advertising.

Fortunately, The Arrangement had a compelling story to tell. Snedeker had built a niche in offering a lot of products customers literally can€™t find anywhere else by custom-ordering most of what they see in the stores.

€œOur 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,€ Snedeker said.

Customers have responded: Sales are tracking to reach near $15 million this year, up around 20 percent from 2011, at The Arrangement€™s 15,000-square-foot location in Dallas and 10,000-square-foot Houston store.

Both stores share €œbespoke€ atmosphere, something easier said than done.

€œWe sell off the floor. It€™s very complicated and a lot of work,€ Snedeker said. €œWe€™ll probably run two trucks (from the warehouse) today to get the floor ready for tomorrow morning.

€œWe have a lot of one-of-a-kind pieces. With the economy, people aren€™t stocking so much, and we have an instant-gratification clientele€”they 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 haven€™t seen anywhere else.€

While maybe 15 percent of The Arrangement€™s sales are special orders from customers, in essence most of what one sees on its floors is special order€”from the retailer itself.

€œWe do a huge amount of custom ordering,€ Snedeker noted. €œWe 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.

€œThe customers end up liking what they see on our floor as it is because they haven€™t seen it anywhere else. We create our own €˜bespoke€™ product.€

Inventory and constant re-stocking of floors aren€™t the only challenges of The Arrangement€™s merchandising scheme.

€œIt€™s a lot more work, and a lot more investigation, cherry picking of lines, and the vendors don€™t always like that,€ Snedeker said. €œWe€™re probably going to go into custom building with some vendors€”we have to have unique product.€

The retailer takes its €œwe€™ll customize for you€ approach to its clients€™ doorstep.

€œWe do house calls differently than just about anyone,€ Snedeker said. €œWe€™ll load up furniture and accessories, and take it to the house. We put it in place and take back what the client doesn€™t want to keep.

€œWe create a complete environment. One client had all this wood from and old barn that we used as art.€

The client was pleasantly surprised with the result: €œHe€™d had all this amazing material and hadn€™t known what to do with it,€ Snedeker said.



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