AUGUST 2014
Women in the Industry
(and the secrets to their success)
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INSIDE AUGUST 2014
in each issue 04. NAHFA President’s Message 06. Editor's Message
12.
09. Connections Meet Your RetailerNOW Staff 10. Retailer2Retailer/Inspired Reading 11. Roving Reporter Staying Alive 18. Community Today A Brave New World 20. Product Focus Kids Furniture 30. Fresh Perspectives Facing the F-Word 42. Government Relations Substance Abuse 44. The Scoop 46. Industry Calendar 48. The NOW List
features
12. The Secrets to Their Success
26. NGN Spotlight: El Dorado Furniture Family
departments
20.
Sales & Marketing
16. Your Most Powerful Marketing Tool 23. Is Your Logo a No-Go? 24. Retail Voice Standing Out From the Crowd 41. Warehouse Safety is No Accident Technology
08. TechNOW 33. Where Does the Buck Stop? Membership
36. Shipping Best Practices for Online Retailing 39. Networking News Operations
41. Warehouse Safety is No Accident
26. Top: Dorian Stacy Sims and Sara Lyke, along with Caroline Hipple (not pictured) gather to talk shop and offer advice. Middle: Youth furniture might be whimsical, but it’s profit potential is serious. Above: Andres, Suen and Luis CapÓ are ready to take El Dorado Furniture to new heights.
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thePlayers What we are so passionate about. . .
To have the courage to pursue purposeful dialogues that challenge conventional thinking, to engage and entertain our readers by delivering content that creates a fervent following ready to change the landscape of our industry.
Published by the North American Home Furnishings Association 500 Giuseppe Court, Suite Six, Roseville, CA 95678 800.422.3778 • retailernowmag.com
RetailerNOW is the magazine for today’s home furnishings professional. Developed for a specialized community, RetailerNOW brings a unique editorial focus on progressive and relevant issues concerning the home furnishings industry in the retailer’s voice, with a focus on issues impacting retailers NOW.
Contact Information:
RetailerNOW Staff
Executive Staff
Lisa Casinger Editorial Director lisac@retailerNOWmag.com
Sharron Bradley CEO NAHFA sbradley@NAHFA.org
Robert Bell Editor robert@retailerNOWmag.com
Mary Frye EVP NAHFA mfrye@NAHFA.org
Lisa Tilley Creative Director lisa@retailerNOWmag.com
Membership Staff
Michelle Nygaard Sales Executive michelle@retailerNOWmag.com
Mailing – Editorial and Advertising 500 Giuseppe Ct., Suite 6
Sydnee Seites Webmaster sydnee@retailerNOWmag.com
Roseville CA 95678 Online: retailerNOWmag.com Phone: Editorial: (800) 422-3778 Advertising: (800) 422-3778 Social: Facebook.com/retailerNOW
Retail Advisory Team Carol Bell Contents Interiors Tucson, AZ
Twitter.com/retailerNOW Pinterest.com/retailerNOW
Travis Garrish Forma Furniture Fort Collins, CO Rick Howard Sklar Furnishings Boca Raton, FL
Subscription: $70/year RetailerNOW, ISSN# 2166-5249, is published monthly (except March and December) by the North American Home Furnishings Association, 500 Giuseppe Court, Ste 6, Roseville, CA 95678. Application to Mail at the Periodicals Postage Prices is Pending at Roseville, CA and additional mailing offices. POSTMASTER: Please address changes to: RetailerNOW, The North American Home Furnishings Association, 500 Giuseppe Court, Ste 6, Roseville CA 95678.
Kaprice Crawford Membership Team Leader kcrawford@NAHFA.org Jordan Boyst jboyst@NAHFA.org Michael Hill mhill@NAHFA.org Eric Malone emalone@NAHFA.org Jana Sutherland jsutherland@NAHFA.org Dianne Therry dtherry@NAHFA.org Please call (800) 422-3778 for all membership inquires.
Mike Luna Pedigo’s Furniture Livingston TX Andrew Tepperman Tepperman's Windsor, ON
If you would like to stop receiving RetailerNOW, please send an email to unsubscribe@retailerNOWmag.com. If you would like to only receive an electronic version of RetailerNOW, please send an email to gogreen@retailerNOWmag.com. © 2014 North American Home Furnishings Association. Published by the North American Home Furnishings Association. Material herein may not be reproduced, copied or reprinted without prior written consent of the publisher. Acceptance of advertising or indication of sponsorship does not imply endorsement of publisher or the North American Home Furnishings Association. The views expressed in this publication may not reflect those of the publisher, editor or the North American Home Furnishings Association, and North American Retail Services Corp. Content herein is for general information only; readers are encouraged to consult their own attorney, accountant, tax expert and other professionals for specific advice before taking any action.
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Contributors Kaprice Crawford, Kevin Doran, Brooke Feldman, Jeff Giagnocavo, Tom Reddon, Sydnee Seites
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President's Message President’s
How lucky we are! It is hard to imagine the home furnishings business without thinking about women. They are more than our customers. They’re our business partners, our professional peers, our teachers and our mentors. Sure, there are a lot of men in our business, but women play an important role on the selling, design and leadership side. When it comes to decorating and furnishing the home, women rule. More than 90 percent of furnishing and decorating purchases are heavily influenced by women. They are great shoppers, instilled with the patience to spend time mulling over such an important purchase. In our showroom we may see a woman return a dozen times before she’s satisfied. You just have to look at many successful husband-and-wife partnerships to appreciate the role of women in our industry. There are hundreds of companies that boast husbands and wives as owners and founders. For example, my wife Pat and I founded Sklar Furnishings. I could not ask for a better partner. I know so many of our industry friends who enjoy this unique partnership. When we think of the teachers and mentors in our industry, WithIt certainly jumps out as a wonderful example. Created in 1997, WithIt is committed to the belief that women are vital to the home furnishings industry’s future. WithIt’s success today—more than 400 members, many of whom are industry leaders—can be traced back to the group’s mantra of learning, growing, leading and encouraging. How women influence our business directly and indirectly is amazing. We are very blessed to have so many talented, knowledgeable women in our industry.
Rick Howard
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Editor’s Message
Women at Work
S
ome facts are undeniable: Women now earn more college and graduate degrees than men. Women make up half of the workforce. Study after study shows that companies employing women in sizeable numbers routinely outperform their competitors.
Unfortunately other facts are also undeniable: Even as women worked harder and more diligently to prove their worth, the men they work alongside continue to get promoted faster and paid more. One recent study by the American Association of University Women found that women age 35 to 54 still earn 77 percent of the male brethren. This month we look at women in the home furnishings industry through the collective lenses of three powerful female executives. The home furnishings industry—particularly senior management—has long been a male-dominated fiefdom. Never mind that women are overwhelmingly the end consumer of our products. RetailerNOW spent a recent afternoon asking WithIt’s Sara Lyke, HB2’s Caroline Hipple and Dorian Stacy Sims of Stacy Furniture & Design about the evolving role of women in the home furnishings industry. They’ve experienced the good, the bad and the downright ugly to being a woman in what was once a man’s world. Their roundtable discussion about how they not only survived, but thrived might surprise you. They might make you laugh. They might even make you angry. In the end, however we hope they make you informed.
Robert Bell robert@retailerNOWmag.com | (916) 757-1169
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Tech
TechNOW
facebook.com/RetailerNOW
What technology are you using in your store? Let us know at Robert@retailerNOWmag.com!
@RetailerNOW
pinterest.com/RetailerNOW
Pro-tips
Cool Tool Coin (onlycoin.com) [consumer tech]
Load all your payment cards onto one device, a Coin, which will work anywhere credit cards are accepted. Coin is a card-shaped device with a battery life of two years that can be used anywhere credit cards are accepted. Load all of your payment and gift cards via the Coin mobile app (available on Android & iOS). Choose the card you want to use for a transaction by tapping a button on the device’s digital screen (Coin doesn’t need the app to work). At the time of this writing, Coin is accepting limited preorders at $55, with a kickback of $5 for every friend a user refers. After the pre-order period, Coin will retail for $100. Expected to ship this summer.
Would you recommend us to a friend?
ways to use your smartphone camera for business Capture your staff in action
In-the-moment pics or videos are great for sharing on social media. Create instant testimonials
Ask a happy customer if you can snap a pic, or grab a sound bite. Make a visual checklist for your employees
Have a team member ignoring your to-do list? Send them the lists with visuals of what the end result of each task should be. Digitize your printed brochures
Use your phone’s camera and an app like Camscanner (free for a basic account, $49.99 a year for a premium account) to create a PDF version of your digital brochures so that you can email them to your customers. Remember what it looked like
Hot Site Temper (Temper.io) [customer satisfaction]
Create questions and add them anywhere (on your website, in emails). Customers simply click one of three faces to provide feedback. Temper measures how your customers feel about your business in real time so you know what to improve. Using Temper’s online platform, create questions that will help you identify areas where you could improve. The platform will walk you through how to drop questions onto your site or into your email signature. Questions are displayed along with three emoticons: a green happy face, a yellow “meh” face (neutral) and a red sad face. To respond, a user simply clicks one of the faces. If they want to provide further feedback, they have the option to answer a follow-up question on the thank-you page. Put it to use: Drop it on to an order confirmation page, or into an email response to inquiries from your website.
Before you take something apart, take a picture of it so you remember how to put it back together. Awesome for displays, vignettes or anything else you want to remember before you change it around.
Cool Apps
NAHFA APP
It’s the ultimate companion for home furnishings retailers who are looking to sell more, make more and keep more. Our app brings you events, updates, and news from NAHFA, articles from RetailerNOW and full in-app access to nahfa.org and retailernowmag.com. And don’t forget to look for the interactive icon (shown below) throughout this issue—that’s your signal to grab your mobile device and scan to go beyond the page. Free; iOS, Android.
Feedback features include referrer data and tracking variables. Pro plans start at $49/month; all plans are pay-as-you-go, include unlimited questions, and have a 60-day money back guarantee. 8
AUGUST | 2014
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Interactive Symbol
(800) 422-3778
MEET YOUR RETAILERNOW STAFF
MICHELLE NYGAARD Sales Executive, Roseville, CA
ROBERT BELL Editor, High Point, NC
OCD health nut, ever-the-optimist (my glass is always half full!), total people person. Love traveling and camping, reading, sunbathing (with sunscreen of course!) and movies. Thrives on coffee, laughing, ice cream and lemon drops.
Avid writer, begrudging runner, Braves fan, salsa connoisseur (the food, not so much the dance), co-president of Riley & Kate Bell Fan Cub (See me for membership).
LISA CASINGER Editorial Director, High Point, NC Grammar nerd, writer, retail advocate, voracious reader, amateur gardener and movie critic. Fueled by coffee and humor. Collects penguins, quotes and dust.
LISA TILLEY Creative Director, Roseville, CA
SYDNEE SEITES Webmaster, Roseville, CA
Avid runner, skier and reader. Require expresso, wine and mental engagement daily. Loves all things design. Collects sharpies :)
Tech geek, researcher, outdoorswoman and college football fanatic. Runs on fresh air and cat videos. Born before the Web but after the floppy disc.
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AUGUST | 2014
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Retailer2Retailer
Retailer2Retailer:
Inspired Reading:
As a small retailer, is it hard to make time for a summer vacation?
—by Patrick Lencioni
The Five Dysfunctions of a Team
Paul Hower, Crested Butte Furniture and Design, Interiors with Oohs and Aahs, Gunnison, Colo. “The last vacation I took was something like four years ago when I took the kids to Hawaii. We had a great time. Believe me, I’d like to be able to pull up and go somewhere every summer, but when you’re a small business and you’re trying to grow that business, you have to be there a lot of the time. I don’t think people realize how committed a retailer is to their business if they want it to be successful. You just can’t turn the keys over to someone and say, ‘I’ll be back in a week, two weeks or whatever.’ ”
Terri Ann Furce, Designed Interiors by Terri, Montgomery, Texas “It’s not hard for me at all. In fact, I just got back from a trip to Costa Rica. We stayed at a 5-star Westin resort. I won it being a top customer. It used to be hard for me to leave, but I’ve learned a valuable lesson: My business will survive without me for a few days. I design a lot of model homes so when I want to take a week or two off, I just let them know when I’m not available. I used to worry what would happen with me not running the operations, but really, what’s the worst thing that could happen? I get a call and someone says ‘The pillow on the couch? It really needs to be on the left side, not the right.’ Fine. Move it. And then I’m back to my vacation.”
T
he business section of your local bookstore is packed with how-to books about running a smooth, efficient company. Then there’s Patrick Lencioni’s The Five Dysfunctions of a Team, which deserves a shelf all its own.
It’s been 12 years since Lencioni’s best-seller examined how unresolved conflict can paralyze—and eventually crumble—even the most successful companies. Since then, Five Dysfunctions has made its way from corporate boardrooms to professional locker rooms, where many NFL and MLB teams rely on Lencioni’s insight to keep their teams focused on the same goal.
These days Five Dysfunctions can easily apply to any retailer who has a vision and wants to share that vision with his team members. Unlike other business authors who fill their pages with lecture, Lencioni uses a compelling narrative to tell the fable of Kathryn Petersen, the new CEO of fictional DecisionTech. Her struggles to bring together a team provide an easy-to-understand perspective of the ways people fail—consciously or otherwise—to work together. The five dysfunctions of the title are absence of trust, fear of conflict, lack of commitment, avoidance of accountability and inattention to results. As Lencioni explains it, if one of the problems exists in your store they might as well all be there because they weaken the chances for success. Retailers with any size of staff—even husband-and-wife teams—will find tips to better, more honest communication.
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Roving Reporter
Staying Alive
By Adapting, Furniture Plus Survives Alongside a Giant Neighbor
W
By Robert Bell
hen Chad Carling heard that 188,000-square-foot showroom floor. The American Furniture Warehouse, store sold $3.2 million in furniture and the retail giant that raked in accessories in its first month and has been more than $400 million in sales last year, climbing steadily with sales throughout was building a 630,000-square-foot store a Arizona and the Southwest. few miles from his own furniture store, he swallowed hard. “ We’re a mom-and-pop store with a 17,000-square-foot-building,” said Carling. American Furniture doesn’t just nibble “I’d be a fool to think I could go head-toat its competition. It devours them. The head with them.” company made famous by owner Jake Jabs’ love of exotic animals in commercials and Instead Carling changed his tactics. Where rock-bottom prices in stores forced many once Furniture Plus depended heavily on retailers back in its home state of Colorado low- and medium-price point furniture out of business. Now the big box was set- lines such as Ashley—one of American ting up shop in Carling’s back yard. Furniture’s largest suppliers—today the store offers mostly higher-quality lines such Only this isn’t one of those stories about a as Robert Michael, Flexsteel and Klaussner. mom-and-pop business getting swallowed by a retail giant. This is the other kind. Carling’s showroom is also packed with swatches to mix and match—about 3,000 Furniture Plus, a fixture in central Arizona by Carling’s estimate—compared to the for more than 30 years, isn’t exactly thriv- two or three choices offered by American ing, but it is surviving, having undergone Furniture Warehouse. a strategic and cultural change that many experts offer as a case study for companies “What (American Furniture) and Jake have adapting to a changing business climate. done for us is make us see our market in a different light,” said Carling. “No offense “You can’t stay in business for as long as to Jake, but not everybody in the Phoenix we have without changing with the times,” market wants inexpensive furniture. You Carling said. “Sometimes you make the won’t see fabrics and swatches over there. change on your own, sometimes you’re You’re trading in choice for price. We like to forced into it. Doesn’t matter how it hap- think we’re giving our customers something pens as long as you’re smart enough to more with special orders.” recognize it.” Furniture Plus still goes head-to-head When American Furniture Warehouse with American Furniture Warehouse on opened its superstore last September about some lines like Ashley. “People ask us to 10 miles from Carling’s store, it didn’t take match their prices and we usually can,” long for Carling to realize he couldn’t com- says Carling. “Our margins are small, but pete on price with his competitor. were not going to let that sale walk away from us.” American Furniture prides itself on getting low prices by paying cash for its inventory. But make no mistake: Carling’s showroom And that inventory keeps coming. About today is nothing like it was a year ago. “If 20 receiving trucks roll in from the desert you walked through my store last fall I’d say each day to replenish the Gilbert store’s 60 percent of it was Ashley. Today it’s more like 10 or 15 percent.”
American Furniture Warehouse Does Everything Big American Furniture Warehouse opened its 13th store—a massive building just outside Phoenix in September—the first store outside Colorado for Jake Jabs, the company’s founder who spends his winters in Arizona. It’s safe to say there’s no other home furnishings operation like American Furniture Warehouse. Jabs is a strong believer in incentives such as commissionable sales while preaching against top-heavy management, heavy debt loads and customer returns. It’s not just the sales staff that works on commission. Drivers, deliverymen, and chair builders are all paid on what they deliver or build. It’s not uncommon for the driver of a delivery truck to make $65,000 a year, said Nolan Morrison, the store’s facility manager. Chair builders, who work fast and furious on the second floor of the store’s warehouse, can earn up to $55,000. Members of the North American Home Furnishings Association who attended the Home Furnishings Networking Conference in Phoenix in June received a behindthe-scenes tour of the store, which boasts 188,000 square feet of showroom space, more than 300 employees, 28 truck bays, 21 customer pick-up bays, a garage to repair trucks and a 10,000-gallon underground fuel tank. The warehouse was built for 10-12 years out; it currently holds about $12 million in inventory and can accommodate up to $22 million. Despite its size, Morrison said the store is a lot like any other furniture store. “You take away our size and we still have people who are passionate about the furniture business,” he said. “We want this place to be attractive and welcoming to our customers just like a family business, which we are.”
Do you have a story to tell? Let us know at robert@retailerNOWmag.com!
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Cover Story
Bring three female home furnishings executives
Sarah Lyke is the executive director of WithIt, a nonprofit group whose mission is to help women grow in the home furnishings industry.
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Dorian Stacy Sims is president of Stacy Furniture & Design in Grapevine, Texas.
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Caroline Hipple is the CEO of HB2 Resources, a management consulting firm whose clients are primarily in the home furnishings industry.
Cover Story
together and you don’t know what they’ll say. Sarah Lyke, Dorian Stacy Sims and Caroline Hipple, on the industry, Jane Fonda and the B-word. : How has the industry changed since you first started? Caroline: Imagine an hourglass. Big at the top, narrow in the waist and big at the bottom. When I started in 1977, the population was big at the top and skinny at the waist of the hour glass. The furniture companies rode the wave of Baby Boomers—what was it 78 million?—all through their life stages and we sold a lot of furniture. I remember looking at the numbers more than 20 years ago and saying we need to be out of this business by 2008. There were only 42 million of the next generation going through their life cycle and we had built an industry and supply chain for 30 million more. But you know what? We weathered that period of ‘08 to ‘15 where demographics were so tough. It was hard, but I think the people who survived, that stayed relevant to their customers, they’re the ones who are going to benefit moving forward.
“I’m always telling women to take business courses. When women get out into the workforce … they should already be somewhat intuitive on how to read the books [accounting] and what needs to be done and how to move forward.”—Sara Lyke
Dorian: But even if you weathered through this you still need to be constantly reinventing yourself because this generation is so different from the last in terms of what they want and how they want it. Caroline: Exactly. It requires being there and listening to your customers, growing and changing along with them. My grandfather, who was an entrepreneur, once told me, “Honey, if you can develop one characteristic, you need to be adaptable.” I was 13 when he told me that. Who knows what that means at 13, but he was so right. For retailers today it’s all about adaptability and staying relevant, figuring out how your customers buy and who your customers are listening to and getting their information from. Sara: I completely agree. It’s not easy—never has been— but isn’t it exciting? Caroline: Oh, absolutely. It’s not easy, but the best way to adapt and stay relevant is to keep asking questions of ourselves, our customers—anyone we do business with. I was watching a show …. where the American Film Institute was honoring Jane Fonda. She was talking to a packed house of actors and actresses and she said something that really stayed with me. “My last message to you is to always be asking questions.” She talked about how, in the whole room of actors and actresses, only one of them who worked with her ever asked how she did things or how she could improve or be a better actor and that person was Meryl Streep. Is it any wonder (Streep) is the best actress in our time?
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Cover Story
: What are some of the problems you’ve encountered as a woman in the home furnishings industry?
and came off as professional, intelligent women, our industry, if they would listen, could grow by leaps and bounds.
Dorian: It’s very difficult to be an out: Challenges—what have spoken and intelligent woman and not be you faced along the way and how has it perceived as a bitch. I’ve been surrounded changed? by salesmen my whole life. My dad’s a salesman, my uncles are salesmen, too. When I Dorian: I go back to the when I was a first started as a buyer my dad said, “That buyer. It was almost as though there was a person across the table is trying to make a light bulb that went on eight or 10 years living to feed and support his family. You ago with the industry that women are the always be courteous and respectful no mat- end consumer. ter what. Let him show you his stuff.” Well, OK, you do that. But at the same time I’d Sara: But yet they still struggle to figure rather just let that salesman know that this out what that end consumer, a women, is something that doesn’t need to be spelled wants for a home most of the time.
“At 23, I was managing nine stores but I still remember one man saying to me “Honey, does your husband run this company?” What I think I learned is to take a job get results and then take another job and get more results.”—Caroline Hipple out for me. But if you do—and I have— then you get to be known as the B-word. I truly believe the biggest advantage women can add to this industry is we can handle conversations in a respectful, professional win-win manner. If the manufacturers, the retailers and the reps could understand that women are working for the greater good of the industry and greater good for everyone’s business we’d be a stronger industry. Most women see that it’s not all about competition. It’s about the relationships along the way. If we communicated our needs
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Dorian: Exactly! As a buyer I would be invited to a design meeting and I’d ask, “Well, why do you do tuck the sheets in like this?” Or, “That doesn’t work here because you can’t reach your alarm clock.” And when I’d say things like that from a woman’s perspective, the people in the room—mostly men—would look at me like the dog who just heard a weird siren. They’re finally starting to listen. It’s great to see that they are listening now, but it’s taken an evolutionary process to have them realize that we’re the end consumer.
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Caroline: I was working for an investment banking firm during the day and I needed some Christmas money so I got a second job. That was 1977. When I became a (This End Up) store manager at 21, my father almost hung up on me when I told him about my job. I still remember him: saying, “I paid for you to have an expensive education and you’re going to sell shipping crates?” I was like so many other young women who had gone to girls schools in (This End Up’s) senior management ranks. We were taught by our parents and our schools that we could do anything we wanted and we believed this until we went into the working world. But when I got out into the world, that’s when I realized there was no chance for me to be a broker. The industry just wouldn’t allow it. So I went looking for mentors and companies that were merit based and not gender based. I was really lucky. At 23, I was managing nine stores but I still remember one man saying to me “Honey, does your husband run this company?” What I think I learned is to take a job get results and then take another job and get more results. I was always working and building my portfolio of skills. Yes, there was always blatant discrimination and there always will be, but if I focused on that I wouldn’t have been able to do my job well. Sara: The biggest challenge I see for women is getting them to stay in the industry. What I see a lot of is they get to a certain point and they can’t go any further, but their skill sets are so great so they go to other industries and other industries are benefiting from it. If you’re creative—and women in our industry are extremely creative—every industry can use you. Just in my time with WithIt I’ve seen some of our most talented people leave and it hurts. As an industry we need to better leverage the skills women have.
Cover Story
: What advice would you give women in the industry now? Sara: When we go to the universities I’m always telling women to take business courses because when I sit on the advisory board at High Point University I’m hearing that their graduates just don’t understand business. When women get out into the workforce they need the leaders of their company to take the time to teach them. But even then they can’t rely on others. They should already be somewhat intuitive on how to read the books [accounting] and what needs to be done and how to move forward. They need the business knowledge on top of their degrees.
“Women coming into the business might love design and textiles, but when you focus on the business and the financial aspect—you hold the advantage.” —Dorian
Stacy Sims
: Mistakes—what have you Caroline: You still see a lot of women in learned from them? the design field as buyers and we should be celebrating women who have taken on Sara: I think back to my days in the core skills sets like design and merchandis- software industry. What I learned when I ing and buying because that is a talent that decided to leave the industry was I had no comes natural for many women. But they network whatsoever. I learned that one the need to take jobs that help them manage hard way. I think relationships are so imP/L and operations and some of the other portant now. Every job that I see people get in this industry is based on a relationships. functional areas. Building those relationships and having a Dorian: That’s the best advice I’d give new network is extremely important. people or young people coming into the industry. You may be excited by the design Dorian: Even in the worst of storms if you or the textiles side, but you would have treat those around you—whether it’s your such an advantage over others coming in employees or your manufacturing reps—as if you at least concentrated on business and you want to be treated it makes life better. That sounds simple, but it’s not always the financial aspects. practiced. You need to treat everyone like : Men aren’t asked to know “Hey, we’re all weathering the storm right the design side. Is more expected from now, but we’re weathering it together. I’ve got this end of the rope and I’m not going women than men? to let anything happen to you just like Sara: It isn’t a matter of them expecting I’m not going to let anything happen to you to know it. I can honestly tell you the me.” That sense of working together has way I promoted it in the software industry been the driving force of what’s gotten was I knew accounting and economics so me through whatever storms we’ve faced. it let me know how to look at your com- Those relationships from the owner of the pany and how to visualize it and what it company to the credit rep are very valuable to me and I don’t take them lightly. needed next.
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Caroline: And isn’t that why we love this industry? Because it is so relationship driven?
: What are some of the toughest decisions you have had to make? Dorian: When you are working in a family business, even though some people are not family by blood or marriage they become part of the family. There are times when I sit down with good friends, friends who are almost like family me, and have to tell them its not working for them and it’s not working for me. Those kinds of conversations—whether it’s a longtime worker or family member—they just absolutely suck the life out of you. At the end of the day, my family is the most important thing to me and the people that work for me are encompassed in that family. I can handle leases going away and dealing with building damage from hail storms. It’s the people part that hurts your soul. Sara: The decisions of business—that’s all very easy for me. But I think relationships are the main thing I struggled with. When I came into this business I worked with men. Men aren’t collaborative like women. They enter a room, they figure out their stuff, make a decision, get up and leave. I was very much that way. I’ve learned to appreciate the other side of this. Women are collaborative and they get together and discuss ideas back and forth. I always found the customers who complained the most were always the ones I learned from the most. Even in WithIt where the women may have the same goals and objectives they have many different opinions and I’ve learned to sit back and listen.
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Sales & Marketing
YOUR MOST POWERFUL MARKETING TOOL MIGHT SURPRISE YOU
Here’s a hint: It’s you. Now go spread the word.
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lex Goldfayn thinks many businesses have it all wrong when it comes to marketing their company—that includes home furnishing retailers, too.
By Robert Bell
Goldfayn is a marketing consultant whose clients are as large as Sprint, Lenovo and T-Mobile all the way down to small-business retailers. “Marketing doesn’t have to be difficult” Goldfayn says. “People will try to make it difficult, but it doesn’t have to be. Just keep it simple. Communicate your message of how you can help people and you’ll be marketing.”
Goldfayn offered conference attendees nine marketing tips that any “Marketing is not about collecting followers or friends on Facebook retailer can implement within a month—some within the next few or Instagram or LinkedIn or any other social media site,” he says. days. “Follow up on these strategies and your revenue won’t have “Marketing is about com- a choice but to grow,” he says. municating your value to Increase awareness people who can consistently pay you for that value.” Goldfayn believes you and your employees are the best marketing “Think about it,” he says. tools your store can buy to get your message to customers. But too “What good does it do to many times retailers fail to communicate what they can offer the have the best customer customer. “If (the customer) doesn’t know they can buy something service, the best value in from you they can’t buy it,” Goldfayn says. furnishings if you don’t get those messages out to Goldfayn says every home furnishings retailer should ask this question of his or her customers: “Did you know you can also buy ….” people?” Or “Did you know we can also furnish…” Don’t be limited to one “Marketing doesn’t have to be difficult … Communicate your message of how you Put down the laptop. At sale. Let the customer know you can offer more than just a sofa. can help people and you’ll be marketing.” June’s Home Furnishings —Alex Goldfayn Obtain testimonials to market your business Network Conference in in Chandler, Ariz., Goldfayn told attendees that market- “If they’re buying from you, your customers must love you,” ing has nothing to do with Goldfayn says. “So why wouldn’t they offer a testimonial to help perfecting your website and everything to do with perfecting your you? communication skills.
Target those testimonials to prospects
“Effective marketing, the kind of marketing that helps you sell more furnishings, more accessories than your competitor, comes from “It doesn’t matter if you have great testimonials if you don’t commuletting more buyers know about your value this week compared nicate them,” Goldfayn says. “Nothing leaves your store—emails, flyers, whatever—without your message on it.” to those who knew about it last week,” says Goldfayn.
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Sales & Marketing
Create case studies Create about a dozen or more short quick case studies with your testimonials. Goldfayn says each study should address four points: 1) Identify the problem; 2) How your product or service solved the problem; 3) Show the value the customer received; 3) Include a testimonial quote from the client.
Target your case studies Now that you’ve created your case studies, you need to make sure the right testimonial is going to the right customer. Goldfayn suggests you categorize your testimonials based on the customer, the size of their home, the room they are purchasing for, etc. “Let them know that other people just like them have come to your store for help and have walked away satisfied with what you were able to do for them,” he says.
Ask for referrals There’s a reason the customer purchased that dining room set from you, says Goldfayn. “Maybe they enjoyed their experience in your store or they trusted you or you gave them a great value. Maybe it was all of those reasons.” Now you need to seize on that opportunity by asking that customer for a referral. Give them time, Goldfayn says. “If they can’t give you a name at the store, tell them you’ll call them in a few days.
When you call them, don’t just ask for a name—help them think of somebody. Goldfayn says one-third of customers will give you a lead.
Grow your list You need a list of current and past customers. You need a list of current and past prospects. “I’m not wanting phone numbers,” says Goldfayn. “Besides, people aren’t likely to give out their phone numbers. But you must find a way to get their email at checkout or before they leave the store.”
Reach out Send emails every two to three weeks that are meaningful and not just self serving. Your potential customers need a reason to open your emails. Offer them tips, tricks, ideas, advice for around the house or in their lives. Include one of your customer testimonials and add a feature product with a link.
Throw a party Don’t pitch it as a sale, but rather an event. Take your pick: an open house around the holidays, a tailgating party before or after a big football game. And don’t just invite your customers and prospects—invite the media, too.
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Community Today
Youth furniture is adjusting to the loss of Stanley and uncertainty of Lea
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By Robert Bell
a recent Saturday morning, Wendy Levine roamed the Priba Furniture and Interiors store in Greensboro, NC, shopping for her two children. Five-year-old twins Davis and Miller are about to become big brothers—baby Mariah is due in September—prompting Levine and her husband Paul to reconfigure the family’s current sleeping arrangements. n
“We’re moving the boys upstairs and they need new furniture,” said Levine, who—the twins’ patience permitting—planned on hitting three more stores before the day was over. “They’ve outgrown their old beds and their dressers are really adult dressers my parents handed down to me. They can’t always open the top drawers. They need furniture their size.” 18
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Retailers and manufacturers, painfully aware of the state of flux to the youth furniture industry, are hoping for more shoppers like Levine in the coming months.
That’s because the youth furniture industry—always a tough sell with many retailers—could use a much-needed boost these days. It’s been four months since Stanley announced it was ending its popular Young America youth brand. Less than two weeks later, La-Z-Boy officials dropped a similar bombshell, saying it would sell off Lea Industries, its youth label, as part of a restructuring of its casegoods business.
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Community Today
Since then opportunistic manufacturers have scrambled to fill the void by Stanley and Lea, while others are waiting to see how things shake out, according to longtime furniture analyst Jerry Epperson. Youth furniture sales have slowly ticked upward in recent years though never in step with traditional furniture sales for adults. Furniture Today’s annual report on the sector in June projected a 15.8 percent growth over the next five years. Epperson said that growth will come, but only if the economy continues improving. “What has happened with Stanley and Lea is sad, but the youth category is going to rebound, it’s just a matter of when,” Epperson said. “When a better economy comes along and unemployment goes down, the demand will flow in youth, but right now we’re just not seeing it.” Not helping matters is a declining birth rate in the country, a key indicator of future youth sales. According to U.S. Census figures, just 3.9 million people were born last—year—the fewest since 1998, and a 10 percent drop from 2012. The good news is Census officials expect the number to remain level this year before growing in the coming years. The United States will be home to more than 80 million children in 15 years, Census officials predict. “If you want to sell youth furniture, you better have youths,” said Epperson. “And if you want youths you first need babies.” Not all retailers and manufacturers are bearish on youth furniture. At a red-brick warehouse in rural Christiansburg, Va., NE-Kids employees scramble daily to fill orders from retailers, who, themselves, are scrambling to fill showroom floor space. Doug Devine says the company he started has benefitted from the flux in the industry. Devine won’t go into specifics about his private company, but said NE-Kids is seeing “double-digit gains.”
“The big thing with Stanley and Lea is that it forced people to do something and do it fast,” Devine said. “If I can roll out six groups for you, the retailer, I’m suddenly looking pretty attractive.” Earl Wang, president of Legacy Classic Kids, said his company was already in position to fill the void left by Stanley based on its already-strong market share of infant and youth furniture. “That’s not to say I think Legacy is going to dominate the industry, but we’re confident there’s a lot of room to grow, both from a manufacturer and (retailer) standpoint,” said Wang, who left Lea earlier this year. “You’re not going to see one or two manufacturers come in and dominate market share in this industry. That’s good for retailers because they’re going to have choice.” At Stacy Furniture & Design, which has three stores and a warehouse in the Dallas-Ft. Worth area, Rhonda Stacy has been buying youth furniture for the Texas company since 2002. She knows the difficulties of selling youth furniture. Parents aren’t always willing to invest as much in their children’s furniture as they are their own. They fear their kids will quickly physically and mentally outgrow the bunk beds that look like a circus big top. Stacy calls youth furniture and her corner of the showroom floor the “be-back biz.” As Stacy tells it, customers browse the youth offerings, inform the salesperson they’ll be back and are never heard from again. “It’s a hard product to sell,” said Stacy. “Parents will buy a $40,000 car over the weekend, but sweat out a kids bedroom suite forever and ever.” Stacy and Wang believe youth furniture’s biggest supporters are Grandma and Grandpa.
“We’ve definitely added a number of new accounts,” Devine said. “People who had been looking at us, they turned to us after (High Point) market and everything that went down.”
“They’re willing to step in and help out when the parents might not be able to afford the furniture or they just want to do something for the grandkids,” Stacy said.
Devine said his company, which has built reputation among retailers in recent years for its innovative looks and trendy finishes, already had a strong product mix for retailers to choose from.
Epperson believes the last four anxious months in youth furniture will ultimately make the industry stronger.
In a sector where brown and white finishes dominate product, NE-Kids was one of the first manufacturers to recognize that grey finishes from adult furniture could be successfully transferred to youth furniture, too.
“Our mix, coupled with our reputation along with (Stanley and Lea’s announcements) has really propelled things for us,” Devine said.
“Change is hard, but change can also be good,” Epperson said. “Sometimes the industry is slow to adapt to new styles, new ways of thinking. When one company leaves, two other companies are waiting to take its place. They usually bring different strategies and styles to the marketplace. That can only be good for everyone.”
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Product Focus
A GROWING MARKET—LITERALLY ccording to the U.S. C e n s u s Bu re a u there are 74.3 million kids in the U.S.; that number is predicted to increase incrementally and in 15 years (2029) there will be 80.1 million. That’s a lot of beds, desks and dressers waiting to be purchased. The beauty of selling youth furniture is that parents will always have a need; the challenge is meeting that need with a safe product they find value in. And, while it can be said that every segment of the furniture industry is volatile, it seems lately the youth segment is even more so. Sean O’Connor, vice president of sales for the East Coast for Universal, says they’ve received inquiries from many retailers looking to fill the void left when Young America left the youth market and La-ZBoy announced it would look for a buyer for Lea. “In response, we have accelerated our entry into cribs, as well as increased the number of youth product introductions for the upcoming fall market,” he says. “These shakeups are a reflection of a difficult business environment,” says Ted Weber, sales manager for Bolton Furniture. “When companies are doing the right things and can’t make a go of it, it’s tough for everyone. We are picking up slots from existing retailers needing replacements due to the changing landscape. We are talking to new accounts/prospects who are looking at new youth bedroom sources.” 20
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Cash in on the kids
Manufacturers struggle to give retailers enough choices to make sure they can satisfy their customers’ needs, but need to balance that with the realization that they can’t be everything to everybody. Weber says once you have the right product mix you have to ship that product on a consistent schedule (every two to three weeks).
THE THREE Ss
Smartstuff nightstands and even nightlights for younger kids. Storage is important in any room, but even more so in a kid’s room. Children are expected (most of the time) to keep all of their things corralled in one room. Their rooms are multipurpose—sleeping, entertaining, studying, playing and relaxing—and their furniture needs to be multipurpose too.
If you’re thinking about carrying youth While the trifecta of product is important, furniture remember the three Ss—sleep, Weber says successful youth furniture retailstudy and storage. This trifecta is crucial ers also stick to these three things—presento your product mix. Parents are looking tation, simplicity and product. for sleep options their kids won’t quickly outgrow. Right now Joey might think the “It’s important to show all the product opidea of bunk beds is cool, but what about in tions for the customer and to help the sales two years? Can those bunks be reconfigured staff,” Weber says. “It’s also important to keep it simple—this is the balancing act. into another arrangement? It’s good to have choices, but too many Study options have gotten more sophis- choices make it confusing for the customer ticated as manufacturers add features to and difficult for the sales person. It’s also keep up with technology. Many collections important to have product in stock—the have built-in power cord access or manage- quicker you can deliver the better.” ment, drop down drawer fronts on desks for keyboard access, and built-in lighting O’Connor agrees and adds that “a comand cork boards on hutches. Universal has mitment to the category with appropriate patented built-in charging stations on its floor display and great merchandising with www.retailerNOWmag.com
Product Focus 1. Opposite page, Bellamy’s Bed, from Universal’s Smartstuff collection has a timeless style suitable for a girl of any age. The nightstand and tall chest feature antiqued mirrored glass panels and the nightstand has a flip-top to conceal a charging station. 2. Bolton’s Wakefield collection in white is a good example of a sleep, study storage configuration. It’s show with an optional twin platform bed underneath and a bow back chair.
3. Shown here in a natural finish, this configuration of Bolton’s Wakefield includes a Mission full bed with trundle, perfect for sleepovers.
accessories (lamps, bedding, pillows, etc.),” As retailers, it’s important that you know are also important. “Great retailers estab- about these issues and are prepared to lish their store as a total home furnishings answer any questions your customers may resource for the whole youth room, not have. just furniture,” he says. For example, you should know it’s not Accessories and merchandising are just as recommended that children under six years important in youth vignettes as they are old sleep on the top bunk bed and there in any other vignette in your store. These should be no openings wide enough for a vignettes are the perfect place to let your child’s head or torso to pass through. Sales creativity run wild—or turn that task over staff should also explain the safety features to an employee who’ll have fun with it. on dressers such as safety stops on drawers You not only need to have room displays and anti-tip hardware. Educating your sales catering to boys and girls, but also dif- professionals about these and other youth ferent age groups. A 14-year-old girl isn’t furniture safety issues gives them the tools going to like the same options a six year they’ll need to help customers make the best choices. If all of this is new to you, ask old would. your sales reps/vendors for product training for you and your sales team. The Juvenile GETTING STARTED Products Manufacturers Association is If you’ve never carried youth furniture another resource for manufacturers, retailit can be daunting. Weber says retailers ers and consumers on the safety of infant/ typically ask about distribution (who else youth products. carries this product in the area) and shipping (where’s the product made or where is it shipping from and how much does The important thing to freight cost). remember is “make sure But the biggest concern among retailers is safety. Reputable manufacturers go above and beyond when it comes to ensuring their product meets the stringent safety requirements set for youth furniture. “Safety is of paramount importance and the gateway to the category,” O’Connor says.
it’s not a fad. This is challenging. We focus on finishes that will have a longer life—timeless designs and finishes.” —Ted Weber, sales manager, Bolton Furniture
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Once you’ve tackled the questions about product and safety next up is style. White furniture is always on-trend in youth furniture. Regardless of what configurations and price points you offer you’ll have to carry white youth furniture. This year natural and lighter finishes are also trending and Weber says Bolton is getting some requests for grey finishes. The important thing to remember is “make sure it’s not a fad,” Weber says. “This is challenging. We focus on finishes that will have a longer life—timeless designs and finishes.” O’Connor says special features are becoming more important as well. “The more complicated the world gets, the more moms and their kids are looking to streamline and simplify their busy lives,” he says. “This translates into convenience and funtionality.” So, for example, Smartstuff includes multiple power sources in its dressers, desks and bedside tables. Bunk beds feature a Nightstand-in-the-Sky for phones and iPads because that’s the way kids live. Additional storage for all the stuff that kids have today is a given, but Universal has taken it a step further with secret compartments and jewelry closets on the sides of the dresser mirror. Parents and kids are attracted to these special features because they make life easier and make the furniture fun. AUGUST | 2014
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Product Focus
“WHAT WAS YOUR FAVORITE THING ABOUT YOUR BEDROOM GROWING UP?” Here’s what a few North American Home Furnishings Association members had to say. “My favorite thing about my room was my collection of hamsters and gerbils! They would run on the wheel all night long and even though it drove everyone else crazy I found it rather comforting; and it kept my three younger sisters out of my room.” —Michelle Caragol, Moxie Home Consign and Design, Steamboat Springs, CO
“I was a complete girly-girl growing up (despite my early start as an equestrienne). My earliest childhood bedroom was Pepto Bismol pink; it was dripping in pink. No lace, just pink. To this day, I blame my pink aversion on that bedroom!” —Melissa Haberstroh, two stores, Burlap Horse and Melissa Jeffrey Home, Boerne, TX
“My favorite thing about my bedroom growing up was probably my Star Wars sheets and pillow cases. I’m a huge fan of the movies and toys all stemming from my youth in the 80s!”
“Growing up I shared not only my room , but the bed with my sister, who was four years younger than me. It was an old farmhouse and our room was below the narrow staircase, so our closet was “cool”—long and narrow. We painted the very back of it (narrowest part) in psychedelic colors, and had a black light. A sheet hanging midway in the closet hid it from our mom (or so we always thought) and it was our fort. Very far out in the 70s man! We were groovy.” —Valerie Watters, Valerie’s Furniture & Accents, Cave Creek, AZ
—Jon Gray, Angeles Furniture, Port Angeles, WA
“I asked for a daybed (with a trundle) for Christmas and wanted it really bad. I got it and thought I was so cool. I had an antique bedroom set before that. I loved the vanity with big mirror. I did my hair and makeup in front of it all through high school. Probably because I shared a bathroom with my brother and that was way easier. I had my dad paint stripes on the wall like the Too Close for Comfort TV show set. Loved them. I was super 80s. All the Tiger Beat posters on the walls. I even decorated the ceiling.” —Janet Gray, Angeles Furniture, Port Angeles, WA 22
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Sales & Marketing
How your logo looks says a lot—or nothing— about your store By Robert Bell
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n the competitive world of home furnishings, where lighting, as the hub for your business. There are many spokes that will design and placement can make or break a sale, every detail feed off that hub. A good logo translates well to a truck wrap, counts. But don’t stop there, marketing expert Dan Antonelli billboard, print or web ad, even receipts and point-of-purchase says. Have you invested the same amount of time and detail in signs. your store’s logo that you put into your showroom floor? “Make sure whatever agency you employ understands all the “Think about it,” says Antonelli, “your logo is often the first visual applications of the logo,” Antonelli says. image a potential customer comes into contact with related to your store. A new image does not come cheap. What’s your message telling them?” Retailers looking to rebrand themselves can expect to invest at least To help retailers answer that ques$10,000—and possibly as much as tion, Antonelli, whose firm, Graphic $30,000—in a new logo portfolio. D-Signs, has helped launch hundreds of branding campaigns for small- and “You’re not just getting new business mid-sized businesses, has a simple test: cards,” Antonelli says. “Every public image of your business will eventu“Hand out your business card to comally need to be updated.” plete strangers,” Antonelli says. “Ask them to describe your store based on Antonelli says it’s unrealistic to the card. Will they think of you as a expect retailers to roll out a new high-end furniture store or a low-end? branding campaign overnight. Once It’s a good way to get a perception of you have your new strategy, start your brand.” with quick fixes like your website and point-of-purchase signs. Antonelli says retailers—especially those who are second or third“As your delivery trucks get older generation store owners—are that might be the time to wrap them reluctant to rethink their comin their new branding,” he says. pany logo because they’ve been so “Start small and work your way up successful in the past. “You may to your trucks and the sign outside have been successful in the past, your store.” but you can be even more successful with the right logo,” he says. If you choose to make over your logo, be sure to make it clear between you and the artist who So what is the right logo? “First and foremost it has to be one that owns the logo. Antonelli says most designers turn the rights is memorable,” Antonelli says. “Think of all the logos you know over to the client once the bill has been paid in full. today like McDonald’s or Nike or Starbucks. They’re clean, they’re simple and timeless. Sure, they’ve changed them a little here or Just to be sure, he says, you can register your logos with the U.S. there over the years, but they’re still the same logo conveying the government for less than $300. same message.” “It’s been said a hundred times before: Image is everything,” Antonelli says a versatile logo is one that goes beyond the outdated Antonelli says. “Your logo helps you stand out from others so business card. He suggests business owners think of their new logo you certainly don’t want others using it.”
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Retail Voice
By Jeff Giagnocavo
A good marketing plan not only saves you money, it sets you apart from your competition
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the home furnishings industry, which includes my mattress n store, marketing revolves around a handful of efforts. You start with the vendor-sponsored events on the major summer holidays (Memorial Day, Fourth of July and Labor Day), add your own anniversary sale and possibly a couple of “private/preferred” customer events. While each of these events has their place, don’t forget you’re not alone. Your competitors are doing the same thing.
school like me, you might opt for a wall calendar, whiteboard and Google Calendar. Using Google Calendar once you have your plan flushed out is a simple way to put it into action. You can plug in your dates and deadlines and task yourself reminders to get copy done, or design and order required point-of-purchase items. You can even delegate tasks that don’t require your direct involvement by sharing the task and entering your instructions right into the event notes.
It’s understandable if you’re disappointed. After all, if everyone else is promoting an event the same time you are, what are you You should see a better bottom line simply by having a plan in left with? Oh, yeah, that’s right, your low-price and price-match place. You read me right: Having your marketing strategy mapped guarantee. If you missed the sarcasm in the last sentence, please, out will force you to follow the plan. Even if you don’t see a rise in sales, chances are you won’t overspend on marketing. read again.
One way to give yourself an edge over the competition is by plan- But if you apply the “3 Ms”—market, message and media—to ning ahead. At my mattress store, we work with our own unique each and every marketing effort you undertake, you will see better marketing calendar. This isn’t just a calendar marking when we response and ultimately more profits. will place newspaper ads or when our vendors have events. This is our playbook for a successful year. Think about applying it to Market your store, too. Too often many small-business owners like to think everyone is a potential customer: “If you’ve got money, I’ve got something to Why do you need a marketing plan? sell!” Big mistake. Believing that everyone is your client makes it A marketing plan keeps you on target and ties your sales goals to hard to do business with your best clients. Look at it this way, if the plan. It also allows you to create a marketing budget. Far too you run an ad that offers a sofa for $399 it’s safe to assume people many business owners try a little bit of this and a little bit of that. will beat a path to your door. At the end of the year they miss their sales goals while expanding their marketing budget. Have fun explaining that one to your ac- But what about the person looking to invest in a premium sofa? If countant. Creating a marketing plan at the beginning of the year your staff is flooded with bargain hunters and you sell seven sofas at $399, that day you wrote a lot of business but your bank account should save you time and money at the end. is suffering. Meanwhile the person who wanted to get the very It is hard to be creative under pressure. Having a marketing plan best sofa was left wanting more. They saw a frenzy of activity for in place allows you the luxury of looking at the year as a whole, low-end sofas and were likely ignored or left wanting more from rather than glimpses week to week. A marketing plan gives you a you and your staff. better overall picture of how you will market your business in the So for the day you have a whopping $2,793 in total sales. But you upcoming year. only grossed $1,120 gross (assuming a $239 cost). That number gets smaller after you pay commissions. Implementing the plan There are many ways you can map out your plan. If you like things online you can use just about any mind-mapping software out there. Pick whichever software best suits your needs. If you’re old 24
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Now let’s assume you resisted running that ad. Instead, you ran an ad that focused on quality and dependability, an ad that clearly stated that your store was the only place to buy a sofa because of
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what your prior customers said about you. And then you included testimonials from these customers in the ad. You might even provide some education on how to make a sofa purchase they won’t regret. It’s all about the market you attract. When it comes to landing the biggest fish in the sea, price is not the right bait. Attracting the right market is everything.
Message Remember, it’s not about price, price price. The right message works like a dog whistle. It speaks only to those you wish to do business with. Translation: those you don’t want to do business with—price shoppers—won’t give your message a second glance. Again, that’s okay. The right customers are those who want to solve their furnishingsrelated issues and they know that your store is the place to do that. When my store creates a message, we rarely, if ever, mention price. We do offer education through our sleep guide and blog. We provide a ton of social proof through our re-marketing and use of testimonials in our marketing and we offer a guaranteed process to buy a mattress the customer will love. All of these are based on and fulfill emotional desires that only we can answer. Your store can do the same.
Media This is so elementary yet so many miss it. If I had a dollar for every time someone told me the yellow pages book was dead, I would have a nice little nest egg accrued. Why does my store still use what many believe to be an advertising fossil? Easy: we still get results. Our core customer is 55 years or older. They still look to and use the phone book. The right media use begs your attention and requires you to be honest with yourself about who your customer is and what media they prefer. Ever try to push water up a hill?
Ignore trying to determine the right media for your core audience and your marketing efforts for next year will be just as difficult and futile.
Crafting the Message Now here’s the rub: Simply relying on vendor events is a risky way to fill your marketing calendar. What if a vendor decides not to offer a 4th of July event? Now you don’t have an event in July. You need to create marketing assets that can be used over and over again. For example, this summer we are initiating our anniversary marketing assets that include contest giveaways and self-created events. We’ve been using this same event the past two years and it’s been a success. If you don’t have a store newsletter, consider starting one. We send one out each and every month to stay engaged with our customers. Don’t stop there. Consider a structure for postcards for each of the following customer interactions: presentation no purchase, saw you at an event and financing events. Recently created assets include postcards that focus on mattress birthdays (the month in which they became a customer), half birthdays and anniversaries (the corresponding date of their purchase). These are all assets that can be deployed on a daily, weekly and monthly basis. Never rely on just one outreach method. Creating assets to market and promote with in conjunction with the traditional prime selling holidays and three-day weekends will greatly improve your business—not just with what’s left of 2014, but well beyond. Jeff Giagnocavo is co-owner of Gardner's Mattress & More, Lancaster, PA, co-founder of Mega Mattress Margins and he regularly speaks at industry events on successful retail strategies.
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Next Gen NOW Spotlight
Andres Capó, left is the distributions center operations leader for El Dorado Furniture. His cousin Suen is a buyer for upholstery and outdoor furniture. Andres’ brother Luis is the visual display leader.
Next Gen NOW (NGN) is a community of young, passionate, engaged industry professionals whose mission is to give a voice to the needs and goals of the up-and-coming future generations. NGN strives to educate the industry on how and why it should attract and keep young talent. The NAHFA supports NGN by facilitating meetings and educational opportunities and introducing the industry to its members through RetailerNow. Connect with NGN members at ngnow.org or on Twitter @ngnow.
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Next Gen NOW Spotlight
Andres, Suen and Luis Capó are the latest family members leading El Dorado Furniture. They’re smart enough to rely on the experience of their fathers, but they’ve also got a few ideas of their own.
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Next Gen NOW Spotlight
The Capós grew up around their parents’ furniture business, one of the largest in South Florida. Left, brothers Luis, Daniel and Andres Capó on a family trip to the U.S. Virgin Islands in 1983. Right, Suen Capó celebrating her sixth birthday at home in 1987.
: How did you get involved in the furniture
: How much do your parents respect your opinions on the direction of the business?
Andres: I was maybe 13 or 14 years old and didn’t have an Xbox
Suen: Oh, a lot. My father (Carlos) is the head buyer. I get to
business?
or games like that to play with so when Dad (Luis CapÓ) went to one of his stores we asked if we could go with him just to get out of the house.
Luis: Yeah, we’d do anything there, sweep the floors, vacuum, or clean the bathrooms—anything at all.
Andres: Little by little we got the passion and we grew into the
business. A lot of second- or third-generation kids might feel like they had no other choice but to join the family business, but we had an open menu of things to choose from. We all had different choices available to us and we chose to be here.
travel all over the world with him. I’ve learned a lot from him. He’s very fashion forward. Back in the 1970s our store was completely contemporary so he was ahead of his time. I think I’ve learned so much from him that he’s learned to trust what I tell him.
: What do you guys do when you’re not working? Andres: I love boating, fishing, going to a movie or a mall. Luis: I’ve got three kids so we’re big into cruise ships. I love the southern Caribbean, but anywhere in the Caribbean really.
: Your family is originally from Cuba and your Suen: I go on vacations and go to furniture stores. stores are in South Florida, an extremely heavy Hispanic area. Do you market heavily to Hispanics? : Really? Furniture stores on vacation? I thought vacations were to get away from work. Luis: Surprisingly not much because we’re already known to them. The challenge for us is to get to the Anglo community and Suen: I know, I know, but the business gets inside you and it let them know were not the old-style, wood-only (cheap) stuff we starts running through your veins. You might get a lot of creative were 47 years ago. ideas from another store’s display or lighting. Suen: We’ve got the largest selection of contemporary furniture
around. That’s the message were trying to get out there. We’re trying to target that message to younger buyers.
: That’s what every retailer is trying to do. How do
you connect with younger buyers?
Luis: It starts with the uniqueness of the pieces we offer. We think we’re different from your average retailer.
Andres: We’re changing up the website, too. We’re making it a little more modern and easier for younger buyers. These days people want to shop without getting out of bed.
: What does your family or loved ones think about a vacation that includes a stop at a furniture store. Suen: Oh, they don’t like it at all. Our significant others shake their heads and say ‘Stop it. That’s not natural.’
: Why NextGen? Andres: No matter how big or small your company is, there’s
always going to be someone out there with a better idea for you. We want to take advantage of that.
Luis: The older generation is moving on and the younger generation is taking control. To all these furniture stores passing on
Suen: We want to show you every piece of furniture with a 15-sec- being a (NextGen) member, I’d tell them to open your mind to ond video. If our ottoman can turn into a single bed, you should be able see how that happens without having to come into the store.
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AUGUST | 2014
see what the next generation can do. You made it work for your business, why can’t we?
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Grant Laidlaw VP of Sales Eric Clarke President
Locations: Puyallup, WA Mira Loma, CA • Morganton, NC Fax: 828-764-4461 • Phone: 855-208-6377 Email: sales@NWFXpress.com Please contact Grant Laidlaw VP Sales at 778-549-3188 or glaidlaw@nwfxpress.com to review your transportation needs.
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Fresh Perspectives
FACING THE F-WORD Overcoming fear is the first step to creating success By Brooke Feldman
A
t the age of 14, I knew what I wanted to be when I grew up: a sports journalist. I spent a lot of my spare time during my freshmen and sophomore years at Leonia High School in New Jersey reading and watching sports, as well as taking photos during games. The best way to learn more about the sports, I decided, was to be involved in them. So I became the manager of my high school football, wrestling and baseball teams. I spent my free time, rain or shine, on fields or in the gym. I rode smelly buses to games, and hung around men and boys twice my size. My first year was rough; everyone thought I was helping out just to be noticed by the boys. When I started spending my time around the coaches, listening to them talk to the players about what plays worked best, and learning the ins and outs of the sport, my writing improved. Just as important, I gained the respect of my fellow “teammates.” I think a lot about my days covering those teams. It was a huge part of my high school experience. I never learned what it meant to be a sports journalist while doing stats or organizing the equipment; I never even pursued the career path I thought I was destined for. But the years I spent in a baseball cap with my nose buried in a stat book helped me immensely. I learned I was a hard and patient worker. Last year, I received the opportunity to take a different career path and joined the home furnishings industry. I was hired based on my blossoming career as a marketer and for my social media skills. My position was created with the optimism I could help lead my company into a new age of connecting, as well as promoting products I knew little about. So, I walked in knowledgeable about marketing and promised I would do my best to create some kind of ROI. I stepped into a workplace filled with tradition and family; surrounded by individuals who have worked day in and day out to sell and create products that grace houses all over the world. It
was a bit intimidating and frustrating not knowing the products backwards and forwards. I expected information to come to me so I could make it look interesting. Man, was I mistaken. I became frustrated and confused. How can I engage an audience? How can I learn when no one is teaching me from day one? I sat at my desk sometimes wondering what to say or who to go to. I was scared to be judged or have someone feel I was wasting their time. I constantly thought I was going to be looked at as the girl who just plays on the Internet. The biggest oversight I made was doubting myself. I came from a background of helping small nonprofits create digital campaigns. What was holding me back from reaching my full potential? Enough was enough. I researched, read and experimented. I questioned co-workers over coffee and lunch. I sat in during meetings and markets to better understand product. I walked my company’s showrooms and became a company ambassador. I observed how other women in the industry dressed and bought outfits that expressed my personality, but at the same time said, “I was a professional.” Since January, I have grown more into myself as a professional. Maybe it sounds corny, but that’s part of growing up. I’ve made mistakes along the way, for sure, but my boss once told me that if I never made a mistake, he would be worried. The best thing I got out of year one was learning how to break down the door of fear. Fear is what keeps young professionals like myself from making the right choices and having a voice. Fear is what keeps us from growing into that senior position of a company. Don’t be afraid to ask questions. Don’t be afraid to give input because, most likely, it’s being looked for. It’s amazing to me how my passion to learn about sports, to be a better writer back in the day, has brought me to where I am here. I’m a woman, a marketer and a member of the home furnishings industry.
Brooke Feldman is an Instagram fanatic, yogi, opera goer, coffee lover, and writer of the blog, The Seed, which focuses on social good and innovation. She is also the digital marketing coordinator for Nourison Industries. 30
AUGUST | 2014
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Technology
WHERE DOES THE BUCK STOP?
Credit card companies are pushing for chip-embedded cards by October. That means retailers will need new systems to read them. By Sydnee Seites
T
e mobile innovation boom coupled with recent data h breaches has the retail industry in a state of payment flux. Mobile wallets and cloud-based POS have been touted as the next wave of payment tech, promising a seamless, in-store shopping experience that is more appealing for connected consumers.
Retailers account for less than a quarter of the data breaches, according to a recent Verizon report; financial institutions account for more than a third. The Government Accountability Office reports that U.S. government agencies from the Army to the IRS have more than 60 breaches a day. Retail data breaches get more media coverage because those are the names consumers recognize.
But payment security is becoming a priority over mobile payment innovations due to last year’s high-profile data breaches at Target and Neiman Marcus. Mobile payments may be on the rise in the United States, but leery consumers are curbing adoption.
Banks and retailers have been talking for a while about adopting more secure chip-based smart cards that use a standard known as EMV (for Europay-MasterCard-Visa, the companies that first backed the technology).
A Bain & Co. survey of 25,000 American and European consumers found that only 25 percent of smartphone users are willing to use their phone for payment in a store. While 40 percent said they were simply satisfied with their current methods of payment, 80 percent said they worry about privacy and data protection with mobile payments.
EMV, or chip-and-PIN, is considered more secure because it’s harder to copy account numbers and security codes from chips than from the magnetic strips. By creating a unique code for each transaction (lending the “ chip-and-PIN” nickname) EMV cards are by design more difficult to hack or counterfeit than striped cards. Liability and fees have been a sticking point between credit card companies and banks in the EMV-adoption debate. Unfortunately, it seems the only people spurring progress are hackers.
This renewed focus on cyber security in retail—specifically how to prevent future breaches—centers on national corporations, but the move to secure U.S. consumer credit information will eventually become the concern of every retailer, big and small.
Scan this page with your NAFA app for a CNBC story on credit card security. Don't have the app? Get it at nahfa.org/myapp.
The National Retail Federation (NRF) has been advocating for the mandatory use of the chip-and-PIN cards for years. According to the federation, the credit card industry wants to issue cards with a chip that could still be used with either a PIN or signature, defeating the key security provision. The credit card industry also expects the retail industry to bear the cost of replacing the card readers currently being used.
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Earlier this year, just days after eBay announced it had been hacked, Visa and MasterCard renewed their efforts to adopt chipand-PIN technology, and retailers picked up the pace with system upgrades. “As a result (of recent breaches), the U.S. migration is accelerating and there is a refreshed urgency in resolving issues and moving forward as quickly as possible,” said Randy Vanderhoof, Director of the EMV Migration Forum. In the absence of a government mandate and strict guidelines on how to adopt the smart ship standard, MasterCard, Visa, American Express and Discover set an October 2015 deadline for most U.S. merchants to upgrade their payment systems. The mandate, which applies to all POS devices, excluding fuel pumps, states that if fraud of face-to-face transactions occurs, whichever party has the “lesser technology” will bear the liability. In an interview with the Wall Street Journal, MasterCard’s EMV expert Carolyn Balfany stated that “…if a merchant is still using the old system, they can still run a transaction with a swipe and a signature, but they will be liable for any fraudulent transactions if the customer has a chip card. And the same goes the other way—if the merchant has a new terminal, but the bank hasn’t issued a chip-and-PIN card to the customer, the bank would be liable.” There is no current government-enforced mandate for merchants. Visa and MasterCard’s “roadmaps” are an industry call to action. In fact, many paymentindustry executives oppose government mandates requiring the adoption of EMV because such legislation would tie the hands of businesses that wish to adopt newer or additional fraud prevention methods. Experts indicate that the EMV transition is a big “wait and see” for retailers because there are so many factors to consider:
`` Upgrade costs. $500 to $1,000 per payment terminal, according to researcher Javelin Strategy & Research, a division of Greenwich Associates. POS software will also have to be updated. `` Fear of the unknown. Retailers are concerned that the switch will slow checkout times.
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`` Unknown specs. EMV specifications are still being finalized by credit card companies. `` Customers’ cards. Today, with about 1 billion cards in use in the U.S., just 20 million chip cards have been issued, according to Smart Card Alliance. Data security cannot be ignored, but the fiscal and physical responsibility should not fall squarely on retailers’ shoulders. The NRF has been asking for reform on securing consumer financial data since 2007. The organization wants retailers to be allowed to keep only an approval code for a transaction (rather than the sensitive data they’re required to keep to respond to complaints or disputed charges) and the banks would maintain all consumer data that could potentially be used to commit fraud.
conniepost@conniepost.com
The NRF has launched a campaign to pass federal legislation that would make it easier to share information about data crimes and has asked for a uniform federal data breach notification law that would replace the laws in 46 states and D.C.
OR MEET CONNIE@
For now, most retailers are willing to “wait and see.” But this much is certain: the liability shift is coming and the price for not complying could be high.
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35
Membership
I
f you’re like most retailers today, you’ve noticed a strong push toward online shopping. Maybe you even derive a large portion of your business from the web. Shoppers no longer have to fight long lines or crowded parking lots to get their shopping done—they can do it all without ever leaving their bed in the morning.
With more and more shoppers making their way to the net, it’s important to remember the basics of optimizing the online shopping experience for your customers. Shipping is a very important component of the online transaction and a key part to your e-commerce success. Here are some shipping best practices to keep in mind:
Be transparent. Include shipping
costs on your product page instead of hiding them behind a login page, and give extended information on what the customer can expect from each shipping option.
Consider a free shipping strategy. You
could provide free shipping at a minimum
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AUGUST | 2014
order price, offer free or reduced shipping to your best customers or offer it for a limited time.
Keep your customers in the loop. Arguably one of the biggest downfalls of online shopping is the waiting game. Let your customers know their order is in good hands. Email them a receipt confirmation of their order once they place it, notify them when the item has shipped and, most importantly, provide them with the tracking number.
Make returns easy. There is an in-
creased element of risk when shopping online. Consumers often worry ‘What if it doesn’t fit?’ or ‘What if it doesn’t work like I thought it would?’ Give your customers the reassurance they need by presenting them with a simple and hasslefree return policy. Better yet, make that policy clear early on in the buying process to ease their nerves and ultimately help secure the sale.
R e d u c e y o u r ov e ra l l s h i p p i n g costs. Work with your shipping partners
to ensure you are saving as much as
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possible on your shipping. Participation in industry association or buying group programs can help you get access to lower shipping rates. You can pass on any savings you garner to your customers or use it to re-invest in your business. Implementing these basic best practices for shipping will provide you with a good foundation for the success of your online retail presence. PartnerShip, the company that manages the North American Home Furnishings Association’s Shipping Program, can help you in all facets of your shipping and logistics—not only outbound to your customers, but also inbound from your suppliers and returns from your customers. Visit PartnerShip.com/Analysis for a free, no-obligation shipping analysis to help you determine which carriers and which lanes will save you the most money on your shipping. If you would like information on NAHFA’s Shipping Program or to enroll, visit PartnerShip. com/NAHFA, or contact your NAHFA Membership Sales team at 800.422.3778 or mbrship@nahfa.org.
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Working with reputable national carriers and negotiating the best shipping discounts available for more than 20 years, PartnerShip is the best partner for YOU. How to Enroll: Sign up for exclusive discounts at www.PartnerShip.com/NAHFA or contact PartnerShip directly at 800-599-2902 where a dedicated service representative is available to complete the enrollment. *Includes a bonus 5% online processing discount. Full details at www.PartnerShip.com/NAHFA/FedExdiscounts
The North American Home Furnishings Association is committed to helping you Sell More, Make More and Keep More
HOME FURNISHINGS
CelebrateMaythe Dreamers 17-19, 2015 • Orlando Imagine
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Learn
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August 14-17, 2014
August 20-21, 2014
Tupelo Market Lunch & Learn Sessions
Inland Empire Furniture Dealers Golf Tournament & Best of Conference Education Day
NAHFA has partnered with the Tupelo Furniture Market and the Southeastern Home Furnishings Association (SEHFA) to sponsor free Lunch and Learn Seminars. So come and grab a bite to eat, get free tips for your business, and network with industry peers. Also, be sure to stop by the NAHFA/ SEHFA booth, located in Building 6, Booth #6037. Presented by: John Egger & John McCloskey of Profitability Consulting Group (PCG) Location: Magnolia Room Building 2
Thursday August 14th @ 11:00am – 1:30pm • Sales and Profitability • Operations and Profitability
Friday, August 15th @ 11:00am – 1:30pm • Delivery as a Profit Center • How to Get, Sell and Keep Customers in a Tough Economy
Saturday, August 16th @ 11:00am – 1:30pm • Sales and Profitability • Operations and Profitability
Join us at the Coeur d’Alene Casino & Resort to play golf at the world renowned Circling Raven Golf Club in Worley, Idaho. What better way to connect with peers, gain valuable insight for your business, and improve your golf game?
Wednesday, August 20, 2014 Golf Tournament & Dinner 11:30am Registration & Putting Contest 1:30pm
Shotgun Start
6:30pm
Awards Dinner
18 holes of golf, contests, raffles, beverages, and goodie bags!
Thursday, August 21st Education Day and Mini Tradeshow 8:00am
Breakfast
9:00am
Eight Great Closings with Phil Gutsell, GutSELL & Associates
10:30am
Mattress Selling Solutions with Bob Muenkel, SERTA Mattresses
12:15pm
Problem Solving Roundtable Lunch
REGISTER ONLINE AT WWW.NAHFA.ORG
Retailers interested in attending any of these high-impact events can visit www.NAHFA.org for event details and registration, or call us at (800) 422-3778.
Midwest Furniture Show September 10 - 11, 2014
Schaumburg, Illinois, Renaissance Convention Center
Thank You
Our Association gratefully recognizes all of our sponsors whose dedication and commitment have strengthened our industry. Signature Sponsor
Serta Mattress Company
Premier Sponsor
Furniture Today International Market Centers Surya Rugs
Titanium Sponsors
aspenhome Furniture Coaster Company of America Cory 1st Choice Home Delivery Emerald Home Furnishings Furniture Wizard Jaipur Rugs Inc. Leggett & Platt MicroD, Inc. Myriad Software Nourison STORIS
Platinum Sponsors
ACA Advertising Concepts of America • American Leather Ashley Furniture Industries • Best Buy for Business FurnitureDealer.net • Furniture of America High Point Market Authority • Netsertive • Northwest Furniture Express • PROFITsystems, Inc. • R & A Marketing Simmons USA • Steve Silver Co.
Gold/Silver/Bronze Sponsors
Corsicana Bedding • DSI Companies • Elk Group International Feizy Rugs • ShockWatch
To become an industry sponsor contact: North American Home Furnishings Association 800.422.3778 or email: cwilliams@nahfa.org
*List as of July 10, 2014
Operations
WAREHOUSE SAFETY IS NO ACCIDENT Planning and communication can reduce injuries and save money
By Tom Reddon
That number should increase—about 12 to 16 glasses of water—for people working in the hot and humid conditions often found in warehouses on peak summer days. Adhering to this practice will protect you and your co-workers from the accidents and incidents associated with heat stroke, heat exhaustion and dehydration.
Take Breaks
Never Lift More Than You Can
This is the source of numerous injuries ranging from fractures and strains to muscle tears and ligament ailments. Lifting an object such as a chair or couch without the necessary manpower or strength required can be dastardly. In fact, this can ultimately hurt the efficacy of a warehouse’s productivity if two or three workers suddenly are out on workman’s compensation leave due to a failure to adhere to a safe and manageable approach. Bulky and cumbersome items are frequent culprits of injuries as well. When approaching an item to load or unload, ensure that you can adequately lift it and maneuver it. If not, there’s no shame in asking for help.
Stay Hydrated
In case you hadn’t noticed, it’s summertime. If you think it’s hot outside, hang out in your warehouse for a few minutes. Dehydration is the number one cause of fatigue, muscle spasms and cramping. These nuisances can play a significant role in handling furniture. A fatigued and dehydrated worker is far more susceptible to heat exhaustion and sudden collapse than a hydrated laborer. The average person needs to drink six to eight glasses of water every day.
The Occupational Safety and Health Association (OSHA) suggests suggests that for an eight-hour work day, a worker be given one hour of break time. These breaks are often broken up in to an hour lunch or a half-hour lunch with two fifteen-minute breaks over the course of the day. While momentum may be in your favor and time may be flying, overexertion can quickly ruin the day of any worker hoping to safely handle heavy pieces of furniture.
Use Hard Hats When Necessary
It’s not uncommon for furniture warehouse workers to lift heavy objects off of high shelves. A hard hat can save a life. Sadly, many workers never wear these items and even more warehouses do not provide them for their workers. A hard hat can cushion the blow from a falling object and in many cases prevent death and reduce injury.
Use a Forklift or Jack when Necessary
This ties in with all the tips listed. Work smarter not harder. When approaching a pallet or a piece of furniture on a high mezzanine, a jack or forklift can help load and unload any pallet or item with the greatest of ease. This is exponentially safer than manual labor and will preserve the vitality of workers across the board. Tom Reddon is a forklift specialist and blog manager for National Forklift Exchange. He is also part of the executive dialogue board for the Material Handling Equipment Distributors Association.
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AUGUST | 2014
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Government Relations
SUBSTANCE [AB]USE & SMOLDERING LOOKS IN GOVERNMENT By Lisa Casinger
S
orry, this column isn’t about a coked-out mayor or the latest affair between a congressman and staffer—it’s about the issues of formaldehyde and flame retardants in furniture. Wait—don’t turn the page. I know they aren’t sexy or particularly riveting. You’re not worried about it, your suppliers are taking care of everything and they’ll let you know if you need to do something, right? Besides, you don’t have a store in California where they have all of those crazy rules and regulations, right? Wrong. These issues are being discussed on a national level right now. Here’s a snapshot of what’s going on and what the North American Home Furnishings Association (NAHFA) is doing about it.
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Government Relations
EPA AND FORMALDEHYDE Last summer the Environmental Protection Agency (EPA) released proposed rules on formaldehyde emissions in compressed wood products. It used the California Air Resources Board’s (CARB) regulations as a baseline, but the EPA’s version included laminated products. The American Home Furnishings Alliance (AHFA) has spearheaded recommendations and comments to the EPA as this issue is of particular importance to its members—your suppliers. The NAHFA has helped in the effort by rallying members in a letter writing campaign and by signing on to comments AHFA has submitted to the EPA. The EPA is expected to propose a rule this summer; after that the rule has to be submitted, reviewed and approved by the Office of Management and Budget. This could mean a final rule later this year or early next year. If the EPA doesn’t change its proposed rules? Look forward to more record keeping—retailers would be required to keep invoices and bills of lading in case there’s a question of compliance. It’s also logical to expect higher product costs. Manufacturers would have to jump through more testing hoops, driving costs up and those would trickle down to retailers and consumers. If you’re an importer of record you can look forward to even more detailed and burdensome chain of custody requirements to ensure the product you’re importing meets the federal formaldehyde emissions limits. Translation: the buck will stop with you.
CPSC AND FLAME RETARDANTS The Consumer Product Safety Commission (CPSC) has remained in an open rulemaking since 2008 on proposing a national flammability standard. CPSC has encountered issues with the cost-benefit analysis and repeatable testing methods related to its national rule. The commission continues to solicit industry and stakeholder feedback and hosted a meeting with Underwriters Laboratories to discuss its upholstered furniture test data. CPSC is looking heavily at barriers that would be applied between the foam and the upholstery. There are some cost concerns as well as durability, look and feel of the furniture. If CPSC were to set a national standard, all upholstered furniture retailers would likely need to include labels on their showroom products indicating that the product meets the requirements. At this time, CPSC does not appear to be close to proposing a national standard but we will remain engaged with them as they continue their work and research.
This summer we expect President Obama’s nominees to the CPSC to be confirmed, bringing the commission up to its full staff of five. When asked about a national flammability standard, it was noted that CPSC has a lot of work ahead but the agency was looking to go in a different direction than California.
CALIFORNIA’S ISSUES California’s revised TB 117-2013 went into effect January 1. This effort addressed concerns about flame retardant chemicals as the new standard will be smolder-only and not require the use of flame retardant chemistry to meet it. The NAHFA and AHFA, along with the Polyurethane Foam Association, oppose California Senator Mark Leno’s proposed SB1019. The original bill proposed that California retailers would be required to post manufacturer-supplied, point-of-sale signage on or near product stating: “The Bureau of Electronic and Appliance Repair, Home Furnishings and Thermal Insulation found that flame retardant chemicals in furniture do not provide a meaningful fire safety benefit. According to the Centers for Disease Control and Prevention (CDC), such flame retardant chemicals can migrate into air and house dust where people can be exposed to them.” Among other provisions, manufacturers would also be required to add that text to the existing law label. The NAHFA and AHFA have been working with the Senator’s office and the coalition in crafting language that is more acceptable to the industry. Because of our efforts the current bill language does not include the point-of-sale requirements. At press time SB1019 was being reviewed by the California Assembly Appropriations Committee. California and other states such as Massachusetts and New York have or are working on regulations and legislation regarding flame retardants. The CPSC looks to these efforts when considering national standards. At first glance it may seem the legislation and regulation of chemicals is an issue manufacturers alone have to worry about. But when your manufacturing partners bear the burden (fiscally and physically) of cumbersome bureaucracy those burdens can’t help but trickle down to you and, ultimately, your consumers. If you aren’t already talking with your vendors about these issues, you should be. And you need to be informed on what your liabilities and responsibilities will be.
Lisa Casinger is NAHFA’s government relations liaison. Contact her at lcasinger@nahfa.org and follow her on Twitter @LisaCasinger.
www.retailerNOWmag.com
AUGUST | 2014
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The Scoop
USE THE NAHFA APP TO SCAN THIS PAGE and see the Emmywinning ad by Lawrance Furniture, or watch a video of an episode of Treehouse Masters featuring furniture from Selden’s.
the scoop vvLawrance Furniture Honored with Emmy for “Fantasy” Commercial
vvSelden’s Goes Out on a Limb
Howard Haimsohn, an NAHFA member and president of Lawrance Furniture was honored in June for a single-spot commercial by a trade industry. Haimsohn was awarded a regional Emmy in June by the National Academy of Television Arts & Sciences for Outstanding Achievement. The ad shows a well-dressed man daydreaming about an upholstered chair before snapping back to reality and buying it. The ad was part of a campaign featuring four spots. A similar ad about a woman fantasizing over a dining room table was nominated for an Emmy. Haimsohn’s store in San Diego is one the nation’s leading retailers and designers of contemporary furniture for the home and office.
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A North American Home Furnishings Association member helped furnish a home recently—actually a house. A treehouse to be exact. When producers of Treehouse Masters, the popular Animal Planet television program, asked Selden’s Home Furnishings if they would help furnish a treehouse near their Tacoma, Wash., business, store officials jumped at the opportunity. “We thought it was a great marketing opportunity and something we’ve never done before,” said Lisa Fengler-Vincent, marketing director for Selden’s. Now in its second season, Treehouse Masters and host Pete Nelson create private escapes for homeowners who want to connect with their inner child.
www.retailerNOWmag.com
The Scoop
Nelson creates adventurous treehouse retreats in his clients’ backyards. With the help of interior designer Tory Jones, Selden’s helped furnish one of Nelson’s projects. The store agreed to donate an undisclosed dollar amount in furnishings and accessories of Jones’ choosing in exchange for exposure during the show and a credit line at the end. Viewers watched as a Selden’s delivery truck delivered and unloaded the furnishings to the client’s backyard. Selden’s has a Facebook account and used it to promote its role in the show, Fengler-Vincent said. “We invited people to watch it and got some nice feedback from it,” she said. “It was a great social media tool for us.” So great that Selden’s is going out on a limb again. FenglerVioncent said the store has agreed to furnish another treehouse in a future episode.
The NAHFA depends on strong, quality leadership. The Board of Directors is a vital part of the progress and growth of the association. Any member can recommend quality members they feel would represent NAHFA and the furniture industry in a professional manner. Members may also nominate themselves. NAHFA Board Membership Benefits:
`` Being the first to find out about new industry information, hear about new trends, and learn how government regulations will affect business. `` Learning new management and people skills by working with other successful industry leaders.
vvDarvin Furniture Announces $4-million Expansion Darvin Furniture has announced a $4-million expansion to its Orland Park, Ill., family-owned business. Store owners and NAHFA members Steve and Marty Darvin said the expansion will include a 35,000-square-foot clearance center with an open, airy appearance the brothers hope will appeal to younger customers. A kitchen is also being added to the building for the stores nearly 300 employees. Darvin’s is known in the Chicago area for its mammoth one store operation, where customers can shop among hundreds of brands of sofas, recliners, casegoods, mattresses and more. Darvin’s 220,000-square-foot distribution center a short drive away allows the company to carry a wide arrangement of inventory.
vvBelfort Furniture Honored by YMCA NAHFA member Belfort Furniture was honored recently by a local YMCA for more than 10 years of service to the community. Mike and Kristi Huber, founders of Belfort, have been helping YMCA Loudoun County help raise funds to provide after-school programs and summer camp opportunities for local children in their community for more than a decade. The Hubers were honored at the YMCA Loudoun County Annual Charity Golf Tournament, which supports the association’s Caring for the Community initiative. Belfort Furniture has been the corporate sponsor for the tournament since 2004.
vvThe NAHFA Calls for 2015 Board Nominations The North American Home Furnishings Association (NAHFA) is calling on members to make recommendations for the 2015 NAHFA Board of Directors. Members can submit nominations for the prestigious position of Director on the NAHFA Board. Submit nominations (including your contact information) to NAHFA’s CEO, Sharron Bradley at sbradley@nahfa.org by August 18.
`` Exchanging ideas and networking with the most successful retailers in the home furnishings industry. `` Establishing long-term friendships with industry peers. `` Becoming known and highly regarded by home furnishings industry retailers, vendors, manufacturers and government agencies. `` Giving back to the industry by helping NAHFA create new programs and services that will help other home furnishing businesses. NAHFA Board Member Obligations:
`` Serve a three-year term beginning January 1, 2015 and ending December 31, 2017. `` Attend two board meetings per year (two-day meetings); the Spring Board meeting is just prior to NAHFA’s annual conference; the Fall Board meeting is in September, October or November. `` Directors also sit on at least one of the Association’s seven collaborative teams and provide ideas and expertise to the teams for the purpose of helping the industry in general, and more specifically, members of NAHFA. (Meetings are held during the Board meeting and in between meetings via conference call.) `` Network with fellow Directors.
www.retailerNOWmag.com
AUGUST | 2014
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Calendar
MARK YOUR CALENDAR FOR THESE INDUSTRY EVENTS Check out Networking News on page 39 for NAHFA Regional Events
2014
NAHFA APP Know what’s going on download the app and add these events automatically to your calendar by using our amazing augmented reality technology. Just scan this page. To download the NAHFA App go to: nahfa.org/myapp.
Tupelo Furniture Market August 14-17, 2014 Tupelo, Mississippi www.tupelofurnituremarket.com
2015 Atlanta Winter Gift, Home Furnishings and Holiday Market January 6-13, 2015 Atlanta, Georgia www.americasmart.com
NY NOW August 16-20, 2014 New York, New York www.nynow.com
Dallas Total Home and Gift Market January 14-20, 2015 Dallas, Texas www.dallasmarketcenter.com
KEM Furniture & Accessory Mart September 7-8, 2014 Central, Florida www.kemexpo.com
International Casual Furniture & Accessories Market September 16-19, 2014 The Merchandise Mart Chicago www.casualmarket.com
Las Vegas Market January 18-22, 2015 Las Vegas, Nevada www.lasvegasmarket.com
KEM Furniture and Accessory Mart February 1-3, 2015 Edison, New Jersey www.kemexpo.com
High Point Market October 18-23, 2014
Tupelo Furniture Market
High Point, North Carolina www.highpointmarket.org
February 5-8, 2015 Tupelo, Mississippi www.tupelofurnituremarket.com
KEM Furniture & Accessory Mart November 19-20, 2014 Long Beach, California www.kemexpo.com
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Interactive Symbol, when you see this symbol scan the page for additional content.
Showtime
Scanning this page will automatically load these important dates to your calendar.
High Point, North Carolina www.showtime-market.com
December 7-10, 2014
High Point Market April 18-23, 2015 High Point, North Carolina www.highpointmarket.org
Ad Index
Contact Our Advertisers Contact Our Sales Executive Michelle Nygaard (916) 757-1160
Connie Post
(304) 736-7283 conniepost.com Page 34
International Casual Furniture & Accessories Market (800) 677-6278 casualmarket.com CasualMarket Page 17
Furniture Wizard (619) 869-7200 furniturewizard.com furniturewizard @furniturewiz Page 5
High Point Market Authority (336) 869-1000 highpointmarket.org http://tinyurl.com/HighPtMarket @hpmarketnews Page 7
When contacting our advertisers, please be sure to mention that you saw their ads in RetailerNOW.
Jaipur Rugs
(404) 351-2360 jaipurrugs.com jaipurlifestyle @jaipurlifestyle Inside Back Cover
Lynch Sales
(616) 458-6662 lynchsales.com facebook.com/lynchsales @lynchsales Page 47
MicroD
(800) 964-3876 microdinc.com microdinc @microdinc Back Cover
North American HFA Sponsors
(800) 422-3778 retailerNOWmag.com retailernow @retailerNow Page 40
www.retailerNOWmag.com
Northwest Furniture Xpress (828) 475-6377 nwfxpress.com Page 29
Serta
(888) 557-3782 serta.com SertaMattress @SertaMattresses Page 3
STORIS
(888) 4-STORIS storis.com STORIS.solutions @STORIS Page 31
Surya
(877) 275-7847 surya.com SuryaSocial Inside Cover
AUGUST | 2014
47
The Now List A quick dose of fun facts, random trivia, and useful (or useless) bits of info
The Now List No Regrets
Just Say No
38% of Americans say they don’t want their own representatives re-elected to Congress—the highest point in two decades.
More than 8 in 10 small-business owners say they would still be smallbusiness owners if they had it to do again. These views have changed little in the last 11 years.
Social Media
More than three in five Americans (62%) say social media have no influence at all on their purchasing decisions. Rather, the vast majority use social media to connect with people they know.
Working for a Living
24% of married women earn more than their husbands, compared to 7% in 1970.
Female Earning$
Under the Pinterest Influence
In 1979, women working full time earned 62% of what men earned; in 2012, women’s earnings were 81% of men’s.
38% of all active Pinterest users bought something because they saw it on the site. Top Pinterest categories are: food and drink; DIY and crafts; home décor; holidays/events.
She Works Hard for the Money
The Big Ticket
In 2012, women who worked full time in wage and salary jobs had median usual weekly earnings of $691, which represented 81% of men’s median weekly earnings ($854).
High-end House Sales Rise
Sales of the priciest 1% of homes are up 21.1% so far in 2014. In San Francisco, the most expensive 1% of homes sold for $5.35 million or higher, in Los Angeles, $3.65 million or higher and in Orange County, $3.45 million or higher.
Cincinnati is the most expensive among the 75 largest U.S. airports. The 10 priciest, based on cost per mile traveled. AIRPORT
AVERAGE FARE*
PRICE PER MILE
1-YEAR CHANGE
Cincinnati
$223
22.2¢
-2.5%
Birmingham, Ala.
195
21.3
8.2
Memphis, Tenn.
198
21.1
-7.0
Dallas Love Field
134
20.7
-3.1
Charlotte, N.C.
186
20.3
-0.4
Louisville, Ky.
183
19.8
6.2
Atlanta
172
19.5
7.6
Cleveland
200
19.4
-1.0
Burbank, Calif.
132
19.2
5.1
Houston Bush International
219
18.9
0.7
Sources: U.S. Bureau of Labor Statistics, Redfin, Marketwatch, Pew Research, ScanLife, Ahalogy, Pinterest Media Consumption Study, 2014, Gallup. com, U.S. Labor Department, Department of Transportation 48
AUGUST | 2014
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