Daily News Archive
Brought to you by Home Furnishings Business
October 10,
2012 by in UnCategorized 
By Home Furnishings Business in on October 2012
With foot in two halves of the same furniture worldmanufacturing and retailingthe development of Stickley as a manufacturer is closely tied to its ongoing retail operation, Stickley Audi & Co., with the two sides complementing the other.
We benefit a great deal by being both a manufacturer and a retailer, said Edward Audi, Alfred and Aminys son, and executive vice president and president of Stickleys international division. Our roots are as retailers, and we bring the sensitivity of a retailer to all we do as a manufacturer.
Were very sensitive to issues of distribution, for exampleas retailers, we know how important that is. It helps us as manufacturers because we have a direct connection to consumer trends through our retail showrooms, and it shortens the product development cycle. Were on top of trends in the marketplace, and can respond quickly to where consumers are going, their needs and wants.
The retail experience also helps Stickley think about how it presents itself to customers, and provide the sort of service level it expects from its own vendors.
It enables us to see the difference sales representatives make in building the brand and serving the customer, Aminy Audi, president and CEO, noted. Our dealers have mentioned more than once they felt the fact we are a retailer makes us better manufacturers, because we understand the challenges they face.
In addition to Stickley, the stores carry a range of high-end vendors, but the product assortment varies. With stores ranging from 13,000 to 78,000 square feet and situated in very different regions, Stickley Audi & Co. tailors its presentation accordingly.
We decide based on the marketplace, the size of the location and what we view as saleable product in that market, said Aminy Audi. And, we look at the distribution in that market of other manufacturers as well.
Theres only one showroom dedicated to Stickleythe one in High Point that we use as our Market showroom.
That said, around 65 percent of the product is consistent throughout the markets where Stickley has a retail presence.
Aminy Audi offered an example of how merchandising at individual stores might vary.
In our New York City showroom, in addition to Stickley, well include John Widdicomb, Baker, E.J. Victor, Hancock & Moore, Hickory Chair, Nichols & Stone, Southwood and Bradington-Young, she said. In North Denver, where we have a much smaller showroom, we limit the number of vendors we carry and concentrate on Stickley. We have a few others, but not to the extent we would in White Plains or New York City.
October 10,
2012 by in UnCategorized
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 blockbut 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 retailers next-door neighbors on both sides of its Dallas store, locations for Bombay Co. and Linens n Things, shut their doors.
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.
Snedekers 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 cant find anywhere else by custom-ordering most of what they see in the stores.
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, Snedeker said.
Customers have responded: Sales are tracking to reach near $15 million this year, up around 20 percent from 2011, at The Arrangements 15,000-square-foot location in Dallas and 10,000-square-foot Houston store.
Both stores 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 and 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.
October 10,
2012 by in UnCategorized
By Home Furnishings Business in on October 2012
A no-hassle shopping atmosphere and a focus on personnel development have made Stoney Creek Furniture a longtime standout among Canadian furniture retailers. Along with building a name for offering exclusive products, Stoney Creek adopted a non-commission pay policy for salespeople fairly early on.
Our awareness and reputation grew, said Jim Fee, vice president and co-owner along with President Dennis Novosel. We were delivering unique, quality furniture and selling it in a non-commissioned selling environment. ... Our success has come from trying to offer the customers a unique shopping environmentproduct, visual display, and non commission sellingand providing strong back end and delivery support.
The no-commission approach dates back Stoney Creeks experience at its original location.
It started when we were a small store and had two or three salespeople, and dealing with the bullcrap of thats my customer and you stole my customer, Fee noted. When we moved (to the current location) we were going to 10 to 12 salespeople, and said we werent going to deal with that anymore.
We wanted an environment that wasnt me-focused for a salesperson. There obviously are a lot of people who make it work, but with commission, that salesperson has to sell to put food on the table. Its I might not sell you what you need, but Im selling something to you.
Fee said the policy fosters better teamwork at Stoney Creek, as well.
Say Jims off today and a customer walks in asking for him; the customer starts to look around, and next thing, Marys helping the customer, Fee said. Jim comes back and tells Mary she stole his customer. Well, the customer might have asked at the door for Jim, but he didnt ask Mary if Jim was around. The pressure that environment creates is felt by the customer.
Stoney Creek offers salespeople an hourly rate, but also offers incentives, such as commission for add-ons such as warranties, fabric protection or mattress pads. The store also takes a percentage of monthly sales, puts it in a pool and divides it by total number of hours worked. That fosters an attitude of were in this together.
If Im not busy, its in my best interest to go over help Mary make that sale, Fee noted. The pay scale is fairly simpleyet still offers incentives for better performance. I break it down to sales per hourif you sell between A and B, your earn between A and B; if you sell between C and D, your earn between C and D, Fee said. Now there are other parts of the job beyond sellingfollow up phone calls, thank-you cards, maintenance of the showroom display, playing nice by putting up samples. If youre selling at the top of the D range, but youre not doing your share of the team things, you might get C plus 50 percent.
The store also conducts periodic and discretionary reviews, and might grant a discretionary bonus for selling beyond the sales rate.
Theres incentive to sell more, but its not immediateits not this week, this month, Fee said. He added that while good salesperson works well, is hungry to sell, in any environment, those with average motivation might coast on Stoney Creeks systembut only for a while. We monitor that through minimum acceptable standards, Fee explained. If they cant meet those, its time for them to move on.
Whatever the challenges of non-commission pay, Stoney Creeks low-pressure shopping atmosphere is worth it.
Its one of the biggest complements our customers give us, Fee said.
October 10,
2012 by in UnCategorized
By Home Furnishings Business in on October 2012
A key to Traditions Classics growth has been its ability to get on its high-end clienteles bee path.
Were very small and we take that high-end boutique approach to a furniture store, said President Suzanne Schumann, who owns the three-store operation with husband, Mike. Our store is always in motion. Since were happy to sell off the floor, from week to week well see 20 to 30 pieces leave. The result is customers stop in to see whats new.
Mike added that customers coming in a month after their last visit wont see something a little different, its completely different.
The atmospheres the same, but at least half the items werent on the floor the first time you came in, he said. And, if it was on the floor earlier, its not in the same place in the store, not in the same vignette. Our target customers are affluent women, and weve gotten on their regular circuit along with their hairdresser. People come into our store when theyre recreationally shopping.
The advantage to that is though our stores average 3,000 square feet, effectively theyre much larger. The amount of product we can expose to our customers is two or three times the square footage we have.
Keeping the floors that fresh is a challenge.
What you have to understand is that what we do involves an incredible amount of work, Mike said. Every Wednesday, for example, in our Naples (Fla.) store, guys from the warehouse are juggling the store layout for two to three hours in the morning. And its not just accessoriesits large items, moving sectionals and cases around. Suzanne and her staff spend the rest of the day re-merchandising the store.
The model took some figuring out on vendors part as well, and Mike said it took some convincing on the Schumanns part.
Most vendors have standard rules on how much floor space has to be dedicated to their line, and some minimums are larger than one of our entire stores, he said.
Our vendors, over the years, have gotten to understand our model and bent the rules.
A commitment to maintaining its merchandising philosophyand a conservative attitude toward debthelped the store during the recession. While many stores kept showing the same merchandise, Traditions Classic always had a new look to interest the shoppers that were out there.
We got a lot of gray hair and more wrinkles, Suzanne said of the downturn. We went very, very lean on inventory, but continued to change out the floor constantly.
The Schumanns also had ways to keep employee spirits up during downtime.
We took the opportunity to freshen the stores, Suzanne said. In Naples, they said its quiet, well just paint the store. They took the lead, and everyone ran with it. We kept the energy going just by keeping ourselves moving.
October 10,
2012 by in UnCategorized
By Home Furnishings Business in on October 2012
Thomasville Home Furnishings is a national network of furniture stores, but Thomasville Home Furnishings of New Jersey doesnt take a cookie-cutter approach to its local markets.
While Thomasville provided a basic foundation for furniture retailingthe store layout, the product line, the in-store signage, and the Web presencethe New Jersey stores aimed to create what President Edward Massood called a more local vision of what we see as the future of retailing.
First, theres a strong sense of local involvement where Thomasville Home Furnishings of New Jersey has locations.
Were very big in charities and very active in the local community, Massood said. Those charities include Wounded Warriors, Family Aid Society, womens shelters and more.
Thats where we evolved the concepta big, national brand name with Thomasville, but also a strong local presence, Massood said. Were connecting the people with the products. Thomasville gave us this good foundation, and weve tried over the last four years as the business climate changed, to adjust to our changing market, as people traded down in a hard economy.
Thomasvilles always been focused at the higher end of middle price pointspeople who were buying Thomasville were trading down, but the high-end was looking at Thomasville as a value. Weve had to convert from what Id call a commodity sale to providing an inspirational environment.
That means not only selling the dining room, but also complete the room with window treatments, rugs, even the china.
Were working to fulfill their dream, their expectations for the room theyre working on, Massood said.
Merchandising is consistent for the most part throughout the five Thomasville locations in terms of core product.
Its very important to be consistent from a marketing standpoint, making sure the core of our business is in every store, and then put in a local flavor, Massood said. Princeton customers might have different tastes than the people we see in our Paramus store.
Beyond Thomasville, some locations include goods from the Furniture Brands International sister company Drexel Heritage.
We carry Drexel Heritage in three of our five locations, Massood noted. These are predominantly our larger stores where we could put in a Drexel gallery.
Thomasville Home Furnishings of New Jersey concentrates more on service than price in telling its story to consumers in the markets it serves.
Direct mail remains the companys most effective form of advertising.
Its not so much about sale, sale, saleits about bringing the service aspect in, Massood noted. We talk about design assistance, excellent quality and value, window treatments and completing the room with accessories. Accessories are the jewelry for the furniture.
In addition to traditional advertising, social media play an increasing, if more subjective role in reaching out to consumers.
We are into social media, and especially for the community aspect, say when we have a designer night, or one of our designers has completed a big installation, Massood said. Social media is a great way for our design consultants to sell the work theyve done. Were prodding them to show our Thomasville customers what they can accomplish.
Theres no direct link to a cash register with social media, but you can show an empty room turned into a completed room, with all the stages. Its all about awareness, how we can help customers to fulfill their dreams.