Archive for November, 2009
Build A Home Furnishings Sales Machine
November 19th, 2009 | Author: stevani
Get way out front now, while your competitor’s are sleeping
The furniture industry has forgotten a timeless maxim: “Nothing happens until something is sold.”
As I write this, I am looking at a recent article in the Wall Street Journal, titled: “Furniture Retailers Look to Trim Costs.” The focus of this article is a catastrophic drop in sales by leading furniture manufacturers and retailers. The facts supporting this gloom and doom theme seem indisputable. After drastic cost cutting, La-Z-Boy eked out a profit of two million on an 18% drop in sales. La-Z-Boy is relocating its cutting and sewing operations from five U.S. plants to one facility in Mexico, hoping to “save more than $20 million a year.”
Ethan Allen reported a 41% drop in sales in its fiscal fourth quarter which ended in June. The company hopes to save its way into a profit with a new system that will increase consumer delivery time from 3-4 weeks to 5-6 weeks. Furniture Brands (Broyhill, Lane, Drexel, Thomasville, etc.) faced a 36% drop in sales for its second quarter ending in June.
And the big guys are not alone. Many mid to large sized chains and independent retailers find themselves in an uncomfortable position as well. I wonder if many of our furniture leaders are failing to read the facts of this downturn correctly. Or, maybe they are reading the facts ok, but are not asking the right questions.
