May 2015 — 2015 Retailers of the Year by RetailerNOW

MAY 2015

Cheers!

Chris Cooley & Shane Spiller NAHFAâ&#x20AC;&#x2122;s Retailers of the Year

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2015 R

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TAKE 5! Five takeaways you can implement this month:

1 2 3 4 5

Attract new customers with Facebook 22 Mine Big Data for prospects 36 Train weak employees to beef up sales 40 Keep employees in the financial loop 34 Lure online shoppers to your store 30

WHAT’S INSIDE 02. 04. 20. 24. 28. 44.

NAHFA President’s Letter Editor's Note Retail Voice Member Portrait: Bernie Moray NAHFA Member Benefit Product Focus: Outdoor Furniture

52. NAHFA at Work—Market 56. Next Gen—Nick Gates 58. Of Note

DEPARTMENTS Cover Story 11. NAHFA’s Retailers of the Year Technology 22. Using Facebook Effectively 36. Mining Big Data Sales & Marketing 30. Digital Customer Experience Operations 34. Financial Transparency 40. Flipping the Pareto Principle 50. Cash Flow is King RetailerNOWmag.com

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President Marty Cramer Cramer’s Home Furnishings President-Elect Jeff Child RC Willey Vice President Steve Kidder Vermont Furniture Galleries

“

Problems are only opportunities in work clothes. — Henry J. Kaiser

”

Pack Your Problems and Bring Them to Conference

Secretary/Treasurer Jim Fee Stoney Creek Furniture Chairman Rick Howard Sklar Furnishings Executive Staff Sharron Bradley Chief Executive Officer sbradley@NAHFA.org Mary Frye Executive Vice President mfrye@NAHFA.org Membership Staff Kaprice Crawford Membership Team Leader kcrawford@NAHFA.org Jordan Boyst jboyst@NAHFA.org Sherry Hansen shansen@NAHFA.org Michael Hill mhill@NAHFA.org Jana Sutherland jsutherland@NAHFA.org Dianne Therry dtherry@NAHFA.org Please call 800.422.3778 for membership inquires. Contact Us RetailerNOW 500 Giuseppe Ct., Suite 6 Roseville, CA 95678

Marty Cramer NAHFA President

e all have issues and challenges with our stores. Some are simple and only require our time and attention while others are more complex with several options and directions we can take. I’m looking forward to this month’s Home Furnishings Networking Conference at Disney World for many reasons. Renewing friendships, playing golf, attending educational seminars, seeing new products—I mentioned golf, right? But more than anything I’m looking forward to the networking. There’s always an issue or two in my business that has me stumped. Several years back one of those issues was website hosting. I was so tired of pouring real money down a virtual website drain. I knew we needed a web presence, but there were so many options and prices were all over the place. I didn’t know what to do next. So, I packed that problem in my luggage and went to conference. During lunch one day I chose a table filled with several younger people. After introductions I asked, “Can any one here help me?” By the end of lunch I had a list of web-hosting companies to call, a series of questions to ask and a list of things that I didn’t need to do yet. In less than an hour this group put together a plan of action for me. I also left with the phone numbers of a couple of them I could call as questions came up. These days our website traffic is strong. We have a strong Internet advertising presence and not a day goes by that someone doesn’t walk into one of our stores asking to see something they saw on our site. This is just one example of what our networking conference can do for you. If you’re attending our 2015 conference, I want to be the first to welcome you. Look me up and maybe I can help you with a problem you’ve been having. If you’re an NAHFA member and are interested in attending next year’s conference, we have financial incentives available that will make coming very affordable—in some cases free. Call Kaprice Crawford, our association’s membership director, at 916.960.0346. I hope to see you in Orlando. I have a couple of problems I need to talk over with someone.

RetailerNOWmag.com 800.422.3778

Marty Cramer Twitter.com/retailerNOW Facebook.com/retailerNOW Pinterest.com/retailerNOW

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Embracing Change in your Store (and on these pages)

RETAILERNOW STAFF Lisa Casinger Editorial Director lisac@retailernowmag.com

Robert Bell Editor robert@retailernowmag.com Lisa Tilley Creative Director lisa@retailernowmag.com Tim Timmons Creative Designer ttimmons@nahfa.org

Robert Bell Editor, RetailerNOW

Michelle Nygaard Sales Executive michelle@retailernowmag.com Sydnee Seites Webmaster sseites@retailermag.com RETAIL ADVISORY TEAM Carol Bell Contents Interiors Tucson, Ariz. Travis Garrish Forma Furniture Fort Collins, Colo. Rick Howard Sklar Furnishings Boca Raton, Fla. Mike Luna Pedigo’s Furniture Livingston, Texas

amuel Johnson got it right. “The chains of habit are too weak to be felt,” he said, “until they are too strong to be broken.” This month we’re celebrating NAHFA’s two Retailers of the Year. If there’s a common thread between Shane Spiller and Chris Cooley it is this: Both retailers not only know how to deal with change, they embrace it. “Ours is an industry that’s always evolving, always responding to the changes and wants of our customers,” says Cooley. “Who wouldn’t be excited about meeting those changes?” With that attitude you can see why Shane and Chris are being honored. Speaking of change, if our industry is always evolving, doesn’t it stand to reason that your magazine should too? Welcome to the new RetailerNOW. For the past seven months, we’ve juggled two jobs in our California and High Point offices: Putting out the magazine you read every month while simultaneously tweaking— and in some places blowing up—that very same magazine. When we first started tinkering with RetailerNOW, we wanted a magazine that would be unusual, surprising, emotional and original. With the help of Ben Villarreal (a good designer and even better friend) and our own in-house designers, Lisa Tilley and Tim Timmons, we’ve done just that. It’s not just the look that’s changing. We’ll be rolling out new features throughout the year starting this month with Member Portrait, a monthly look at one of your fellow NAHFA members, and The Way We Were, a look back at our industry’s rich history through your eyes and your words. There's more coming. One thing that won’t change is our commitment to bringing you the inspiration and education you need to grow your business. Let me know what you think of our changes.

Andrew Tepperman Tepperman's Windsor, Ontario Contributors Anders Ekman, Jeff Giagnocavo, Marty Grosse, David McMahon, Gary Morris, Bill Napier and Crystal Vilkaitis

Robert Bell

Robert@retailerNOWmag.com

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: Address changes to: RetailerNOW, North American Home Furnishings Association, 500 Giuseppe Court, Ste 6, Roseville CA 95678. If you would like to stop receiving RetailerNOW, please send an email to unsubscribe@retailerNOWmag.com.

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© 2015 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.

MAY | 2015

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RETAILER2.0

 GOOD TO KNOW Google Pushing Retail Website Owners to Beef up Their Mobile Retailers can no longer afford not to have a mobile-friendly website. Google has announced that mobile friendliness will become a ranking signal for search results on its search engine. You read that right: Whether your web site is mobile friendly will now affect your site’s ranking with the search engine giant. According to Google, the change, which began last month, “will affect mobile searches in all languages worldwide and will have a significant impact in all Google search results. Consequently, users will find it easier to get relevant, high quality search results that are optimized for their devices.” How can you update your website for this change? Check out these tools, and pass them on

@RetailerNOW

facebook.com/RetailerNOW

pinterest.com/RetailerNOW

to your webmaster:  You can find out how your site ranks in terms of mobile-friendliness with Google by using its mobile-friendly test tool (http://bit.ly/1EUHr5c). You can test any page on your site; the Googlebot will view your pages and tell you if Google deems it mobile-friendly as well as identify which portions of the page won’t load on mobile devices.  To get help with making a mobile-friendly site, check out Google’s robust guide to mobilefriendly sites (http://bit.ly/1EUGmKF).  If your developer uses Google webmaster tools, the company’s mobile usability report will highlight major mobile usability issues across your entire site, not just one page.  Check out Google’s how-to guide for third-party software (http://bit.ly/1EUL1fC) like WordPress or Joomla, to migrate your website hosted on a CMS (Content Management System) to use a mobile-friendly template.

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This app gives you real-time data on transit info in 50 cities in the United States and Canada. Roadify answers riders’ three most important questions about urban transportation: When will my ride be here? Why is it late? How do I get there? Find information in one place for all types of transit—subways, buses, trains, ferries, bike-sharing, car-sharing and more. Designed by people who use mass transit every day, Roadify provides real-time arrivals, schedules, and service alerts from official agency sources and other riders.

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RetailerNOWmag.com

4/28/2015 9:36:44 AM

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CONVERSATIONS

TOPSHELF

social media does your Q.What store rely on most?

How Your Store Can Rock Social Media

Daryl Nowitzki Engstrom Furniture LaPorte, Ind.

“We focus almost absolutely on Facebook because it drives so much to our stores. We try to do weekly promotions and engage with the customers whenever we get something new on the floor. It’s surprising how many customers say they came in from what they saw on Facebook.”

Shaun Daggett

Northwest Furniture and Mattress La Grande, Ore. “Facebook is the only social media we use. It appeals to everyone whether you’re a 26-yearold just starting out to a 60-year-old lady. We’ve had people come in and say, ‘I saw this on your Facebook page. Is it still available or can I order it?’ I’d say we easily get one or two sales each month from something we posted on Facebook.”

Connie Silva Embellish, Inc. Lumas, Calif.

“We’re not really big on the Internet. We rely a lot on word of mouth from our customers. That’s not to say we shouldn’t be on the Internet in some way. We probably should be. It’s just taking the time to sit down, see what our priorities are and who’s going to take care of everything.”

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The Art of Social Media: Power Tips for Power Users Perhaps in a few years, as the leadership of the industry is taken over by a generation that grew up with Facebook, Twitter, LinkedIn and the myriad current and future social media channels, there may be less need for books such as Guy Kawasaki’s The Art of Social Media: Power Tips for Power Users. Kawasaki, the former chief evangelist for Apple and author of the highly popular book on entrepreneurship, The Art of the Start, joins forces with co-author Peg Fitzpatrick, a social media strategist, to produce a short yet surprisingly exhaustive primer on the vast variety of tools and processes that individuals and businesses can use to leverage their social media efforts. “The biggest daily challenge of social media is finding enough content to share,” Kawasaki and Fitzpatrick write. “We call this ‘feeding the Content Monster.’” There are two ways to feed the content monster, according to the authors: content creation and content curation. Content creation is the traditional approach: writing copy, taking pictures and/or creating videos, and posting them. The problem is that such creation takes time, making it difficult to add more than two pieces of content per week to the page. Not enough, write the authors. The better approach, therefore, is

content curation, which consists of finding high quality content from other people’s social media, then summarizing and sharing it on your page. The authors offer a list of 14 of their favorite curation and aggregation services that make it easy to find good content to curate. They do warn against too much straight sharing, which, they note, will “dull your personal voice and perspective.” Moving from general to the specific, subsequent chapters range from how to perfect your posts, how to get more followers and how to respond to comments, to how to socialize events, how to run Google+ Hangouts on Air and how to rock a twitter chat. One of the great strengths of this book is the succinctness of the advice offered. A chapter on “how to perfect your posts” exemplifies the authors’ cut-to-the-chase approach. One section, entitled “be visual,” argues that every single post should have a picture, graphic or video. You can be visual, the authors explain, by including a link to the original story or creating your own graphics, using a company called Canva. The Art of Social Media is a wonderful weekend read that you can buy on Friday and start implementing in your store on Monday.

RetailerNOWmag.com

4/28/2015 9:09:33 AM

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Shane Spiller

Chris Cooley

of the She’s a native Canadian who has found a home in the Arizona desert. He’s a southern gentleman who never roamed far from his Alabama roots. Chris Cooley and Shane Spiller couldn't be more opposite if they tried. Except, of course, when it comes to running their home furnishings businesses, in which case they share one powerful characteristic: The drive to succeed. The North American Home Furnishings Association’s Retailers of the Year have a passion for our industry that shows in how they treat their customers, employees and the community they serve. We hope you’re as impressed and motivated by their accomplishments as we are.

RetailerNOWmag.com

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AFTER A SHAKY START RUNNING THE FAMILY BUSINESS, THE PRESIDENT OF SPILLER FURNITURE IS JUST FINE 12

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RetailerNOWmag.com

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By Robert Bell

n some ways it seems like yesterday: Shane Spiller was the young buck, eager to put his imprint on Spiller Furniture, just like his father and grandfather before him. In some ways, it seems so long ago: The economy was roaring. Mortgages were churned out to keep pace with all those houses being built. What could possibly go wrong? It was 2004, and Shane was the freshly minted president of Spiller Furniture in Tuscaloosa, Ala. He was 30 years old and brash and wide-eyed and shrewd and filling all those new houses with sofas and dining room tables and everything in between. And now, more than a decade has elapsed and the economy has crawled out of the rubble and he is 41, but just as determined as ever, and those two facts sum up how much everything has changed and how much everything remains the same. He’s still brash and bold, but with age comes wisdom, the kind you can’t learn in business school. The kind that can only be taught when the economy is sinking and taking your business with it. “The recession or the Great Recession—whatever they called it—it taught me a lot,” Shane says. “There’s an old saying that talks about failure being the first step toward success and that’s true, but you can also turn that around and say that the first sign of failure is success. In a lot of ways we were doing very good business, but we forgot what got us where we were. We were pretty fat, dumb and happy doing what we were doing and it costs us when things got rough.” When the economy went south in 2007, Spiller Furniture sales dropped 35 percent and stayed that way for three years. Suddenly, Tuscaloosa banks were looking nervously at the furniture store. To make ends meet, Shane reduced payroll—mostly through attrition— from 175 employees to 115. He closed three of the chain’s 16 stores which were breaking even anyway. With sales sluggish, the company relied on its accounts receivable and, like the rest of the nation, learned to survive on less. Mike Spiller watched as his son dealt with one crisis after another, but he kept his distance. “He knew I was only a phone call away, but he also knew that was his store to sink

We want everyone to understand there’s one way to do business and there’s the Spiller way.

RetailerNOWmag.com

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or swim,” the father says. “Every business owner goes through spells like these, Shane just had to face his sooner than most.” Looking back, Shane says the recession and his company’s response to it have made Spiller Furniture stronger and its president wiser. “We spent forever trying to dig out of all that red ink, but in the end we came out the other side a lot more financially fit,” says Shane, NAHFA’s 2015 Retailer of the Year for stores with more than $10 million in sales. “I’m not going to tell you I’m thankful for the recession, but it certainly made me rethink how to run the business and we’re better for having done that. We found out what’s important and what we can do with and without.” Since 2010, Spiller Furniture’s annual sales have been the best in net income in the company’s past 15 years. The boss attributes that turnaround to maintaining the lean operations the recession forced him into. During the downturn, Shane took to heart the message behind the business book Traction: Get a Grip on Your Business. Gino Wickman’s best-seller helps business owners discover the six core values of their company. One day in 2010 Shane and his management team met in a company office and didn’t come out until the group had identified Spiller Furniture’s own core values. As he tells it, the group came up with nearly three dozen values before whittling the list to six: dedication, commitment, accountability, initiative, doing the right thing, open and honest, and a positive attitude. These days Shane says bringing those values to the surface are behind every job interview, every customer transaction, every dealer rep or manufacturer. “We want everyone to understand there’s one way to do business and there’s the Spiller way. We’re going to do what it takes to make things right,” he says. That, says Shane, is how he learned the job from his father Mike and his grandfather James, who started Spiller Furniture in 1948. “My father taught me that everyone deserves to be treated like they’re the most important person when they walk into our store,” he says. Like his father, Shane grew up working in the store. Unlike his father, he was never

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forced into it. “I was always grateful to my dad,” he says. “I had a choice to work in the store or do something else with my life. Dad didn’t have that choice. It was always known that this was going to be his store to run whether he liked it or not. My dad learned from that experience and made sure he never forced anything on me.” Shane thought he was ready to run the store when his dad retired in 2004, and in many ways he was. He’d worked in sales and operations and collections, but there’s a side to business you only become aware of when you take over as the one in charge. “Suddenly there was this enormous pressure on me to succeed and that took a

I’ve been very fortunate to surround myself with a good management team and some very valuable employees. lot for me to deal with,” he says. The first year was the hardest. “All I thought about was don’t fail, everyone’s watching. You can’t fail,” he remembers. That fear of failure permeated every nook and cranny of his life. Whether he was at work or trying to relax at home for the holidays. Come Thanksgiving, most people find a comfortable spot on the sofa and watch the holiday favorite It’s a Wonderful Life, all the while taking stock in what matters most in their lives: family, friends, good health. When he first took over as president of Spiller Furniture, Shane watched the holiday favorite and found it hard keeping his eggnog down. “I’d get a little stressed out,” he says. “Think about George Bailey for a minute. Here’s this guy who inherits the family business and the most important thing

is it’s up to him to keep his family, his friends their homes—their lives, really— safe. When you run a family business there’s a little more pressure on you because it’s not all about you. Every time I watch that movie it hits home with me that this store is more than me. Other people depend on Spiller just as much as my family does.” That doesn’t surprise Mike. “He’s always been a people person,” dad says. “He can step all over your shoes without spoiling the shine because he cares that much about you.” Mike says those people and leadership skills were on display again in 2011 when a series of tornados cut through Tuscaloosa, killing 64 people and destroying dozens of businesses including one of Spiller’s stores. “We were just getting our feet back under us and then this happened,” Shane says. “I remember thinking to myself, ‘here we go again.’ ” But Shane took charge. Insurance did not cover replacing the store so they re-opened in a new location. He promised employees they would not lose their jobs and kept that promise. Again, Shane finds the silver lining to what others might see as a black cloud. He says he was lucky. “That sounds odd to say, but none of our employees or customers were hurt and we got a large part of our investment back,” he says. “Yeah, we had to pick up our marbles and go somewhere else to play, but it could have been worse, a lot worse.” These days Shane can sit through It’s a Wonderful Life without any queasiness. Business is good. The boss even has a brow-raising goal of doubling his company’s annual sales by 2025. He spends a lot of time outdoors with his wife Emily and five children, Madeline, twins Mike and Mack, Ella Michael and Major. The family is building a house on a large piece of land not far from his father’s house. “I’ve been very fortunate to surround myself with a good management team and some very valuable employees,” Shane says. “They’ve made work a lot easier for me and I’m able to relax a little bit more and be with my family more. When I’m outdoors, playing or hunting with the boys, that’s when I realize I’ve got a pretty good life.” Some might even say wonderful.

RetailerNOWmag.com

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Congratulations!

Chris Cooley Shane Spiller of Michael Alan Distinctive Home and

of Spiller Furniture

NAHFA 2015 Retailers of the Year

The World Class Furniture Company 速

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RetailerNOWmag.com

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FEW RETAILERS SHOW THE PRIDE AND PASSION OF HOME FURNISHINGS LIKE CHRIS COOLEY. NOW IF SHE COULD JUST SLOW DOWN. 16

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RetailerNOWmag.com

4/28/2015 2:38:42 PM

By Robert Bell

hris Cooley is on a roll. Maybe it’s because she has a full day of work in front of her, and a reporter has already put her an hour behind schedule and now her appointment book is really jam-packed with clients in the store, lunch with a friend and a quick visit to a local charity. Or maybe it’s because she excited about being named NAHFA’s 2015 Retailer of the Year for stores with less than $10 million in sales. Or maybe it’s because this bundle of energy knows no other speed except full throttle and so she is talking quickly, firing oﬀ stories about her life, her business, how much she absolutely loves accessories, how every customer deserves to be treated like they’re the only person in the world and she keeps on talking so fast and furious that the poor reporter can’t even come up for air let alone a new paragraph so the poor scribe just grabs hold of Chris’s words and holds on for the ride because when Chris Cooley is on a roll there’s really nothing to slow her down except maybe Chris herself when she finally— thankfully!—comes up for air. “Am I talking too fast? Is any of this making sense?” Chris asks. Assured the affirmative on both, she continues. “I really think this is the perfect time to be in home furnishings. When you see all the change we’re going through— good change—and it’s only going to get better. There’s so much out there for buyers to choose from. There are so many great styles and colors and accessories. When people talk about fashion and what’s in or trendy, home furnishings are all of that these days.” To hear the passion and excitement in Chris’s voice, to see the bold colors in her store and in her clothes, you might think she was born into fashion. In fact, Chris got her start in the staid, oh-so-plain-and-grey financial industry. Chris crossed over to the wild side when her parents, owners of a home furnishings store, invited her and her sister Carrie to attend the San Francisco Furniture Mart with them in 1990. That was 25 years ago, but Chris remembers it like it was Tuesday. “The energy, the buzz, the people, the design. I’d never seen anything like it,” she says. “The

I really think this is the perfect time to be in home furnishings... and it’s only going to get better.

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Cooley’s customers know where they stand as soon as they arrive, where a sign at the front desk indicates the recptionist doubles as the director of first impressions, to the warehouse, where all employees wear shirts emblazoned with director of lasting impressions. place just won me over on the very first day. I knew I could never go back (to banking).” Actually, Chris did go back to banking in a way. A few months after visiting the market in San Francisco, Chris went to work for her parents at their store, Michael Alan Furnishings in Lake Havasu City, Ariz., as a bookkeeper while her sister Carrie was hired for sales. Two years later, in 1992, they bought the store. Chris and Carrie, who retired a few years ago, made their store’s mission to be one of impeccable customer service. Providing attentive service is not something you can teach, says Chris. “I really think it’s something you’re born with. People who are nurturing want to help others and that’s who we hire,” she says. “We don’t hire as quickly as other stores might because we’re waiting for that special person who walks in and breathes life into our store. You can teach product and selling techniques, but that energy of wanting to help others? Make them feel special? That has to come naturally from within.” Chris lets her customers know where they stand from the minute they walk through Michael Alan Furnishings’ front doors, where a sign at the receptionist’s desk indicates she’s also the Director of First Impressions, to the warehouse, where all employees wear shirts emblazoned with 18

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Director of Lasting Impressions. In between there’s a never-ending supply of frosty mugs of beer and giant-screen televisions for men to get comfortable with while their spouses shop, with a glass of wine. “We like to think our store is the capital of hugs,” she says. “We’re going to help you find the right piece,” she says. “Not the next best thing, but the right piece. We never want our clients to feel like they’re settling.” Every November Chris and her employees show how much they value their customers with a special anniversary party that has all the trappings of a Hollywood party after the Oscars. For weeks Chris and her staff prepare for the big night. On the morning of the big event, the store is closed and doesn’t open until 5 p.m. By then the parking lot is packed with invitation-only loyal customers who are invited in for a night of live music, food and drinks. To say the customers get the Hollywood treatment is not an exaggeration. “We literally roll out the red carpet for them and our entire staff lines up on either side to clap and cheer as they come in,” says Chris. “It usually takes about an hour just to get everyone inside.” “There’s a great feeling you get when you know you’ve helped a customer fulfill his or

her wish. Best feeling ever!” Well, maybe not the best feeling. Chris reserves that for her buying trips to Las Vegas and High Point. “I like every part of my job, but I absolutely love to buy,” she says. “What girl doesn’t?” Chris is a sucker for accessories. “Can’t get enough of them whether it’s for me or the store,” she says. “I love buying trips because there’s nothing more rewarding than finding values that you can bring back to your community so everyone can share in them.” Chris’s passion extends throughout Lake Havasu City where Michael Alan Furnishings and its employees have helped with several outreach programs in the community such as HAVEN, a local advocacy center that provides housing to families in crisis. Last month the store held a fund-raiser for the group and donated an outdoor patio set. In the past five years the store has helped raise more than $153,000 to benefit the Cancer Association of Havasu. Chris doesn’t see her store’s outreach as anything more than an extension of her work. “This is just part of who we are” she says. “None of this work adds to our bottom line, but it adds to this place we call home and so that’s why we do it. And just like work, if we’re going to do it, we’re going to do it right.”

RetailerNOWmag.com

4/28/2015 4:12:31 PM

11931_Ser

Proudly Congratulating 2015 Retailers of the Year

Chris Cooley

Michael Alan Distinctive Home Lake Havasu City, AZ

Shane Spiller Spiller Furniture Tuscaloosa, AL

î &#x201E;

Thank you for your hard work, dedication, insights & passion in support of our industry.

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4/20/15 12:28 PM 4/23/15 1:45 PM

MAKE YOUR SALES, M

Even the best sales and marketing platform is only as good as the front door it’s connected to. I’m not talking about your physical front door, I’m referring to your virtual front door — your home furnishings store's website.

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RetailerNOWmag.com

4/28/2015 9:34:42 AM

ES, MARKETING PLAN WORK FOR YOU

(NOT THE OTHER WAY AROUND) By Jeff Giagnocavo

In my last article I discussed how tools, systems, and automation contribute to your success. This month let’s look at the bigger picture and why these three components are so important. You should approach your sales and marketing efforts the same way you approach other aspects of your business—with proper planning. You have a plan for merchandise. When it comes to upholstery, for example, you know that your customer will typically purchase a certain length and depth of a sofa. You may even know which colors and fabrics she’ll prefer. You know what to stock, you know how long it takes for special orders (typically) and you probably know about how long your customer will wait without getting antsy. Likely this expertise extends to how you hire staff and manage other internal processes. You have a way you like to order, a developed nomenclature via your POS system. Vendors are either compliant with that up front or you find a solution so they know what you are ordering and they ship you the correct items. At the end of the day you have a litany of tools and systems, and likely some of them are even automated. But when it comes to your marketing and sales processes how much of a well-defined automated system do you have? I often ask clients what their effective close rate is on a first-time customer. I’ve heard as low as 15 percent and as high as 80 percent. The average falls around 35 percent. Then I ask each client if they would allow their vendors, advertisers and anyone else involved in their business to operate at a 35 percent effective rate? Overwhelmingly the response is “Of course not!” The solution is to have a sales and marketing platform. Much like your merchandise plan, your sales and marketing platform must be as defined and understood as every other aspect of your business. And it should be automated. Your sales and marketing platform should be one that enables you to easily understand every aspect of where your leads, prospects, and customers exist in your business. You might think your POS system is a sales and marketing platform, but it’s not. At best, it might be a CRM that sends emails when you request them. An automated sales and marketing platform sends emails, postcards and tasks for follow-up phone calls at pre-determined milestones for each type of customer, prospect or lead. These predetermined milestones could be anniversary dates of a first purchase or first store visit or they could be tied to the types of products the customer purchased or didn’t purchase.

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An automated system will garner additional sales with come-back offers, gather reviews and referrals and communicate over the long term with your customers, both online and offline, to keep them coming back year after year. A well-built sales and marketing platform will work for you, not the other way around. The platform will mor than earn its keep by delivering a constant flow of leads that become customers. It’s important to understand though, that a sales and marketing platform is only as good as the front door it’s connected to. I’m not talking about your physical front door, I’m referring to your virtual front door— your website. Your website is often the first access customers have to your store, which means you have to make a good first impression. And, once you’ve impressed a shopper, are you embracing the full power of your site and its ability to gather information? Millions of shoppers search the web every day with the intent to purchase and yet so many websites let this collective interest in purchasing slip through their fingers. With an automated sales and marketing platform in place you can mine the data from your online visitors and then use that data to create targeted digital advertising that’s more likely to convert leads into sales. How can you do this? Offer your best information to your customers via any of your online digital advertising, whether it’s an offer for a free buying guide on your homepage (which gets you their name and email) or a pay-per-click ad that directs viewers to a savings pass for your current promotion. I’m testing a Facebook offer that drives leads to a promotion. For $7, the lead gets free delivery, set up, removal, two pillows and a mattress protector. This creates a customer in my store at a cost of about $49, far less than the average cost per lead we’re all accustomed to. Regardless of which digital advertising venue you use, every one of these leads and prospects connects to the sales and marketing platform. When done properly each medium is held accountable giving you a true return on investment for every effort both online and off.

RetailerNOWmag.com

Jeff Giagnocavo is co-owner of Gardner’s Mattress & More in Lancaster, Penn. He is also the co-owner of Infotail, a sales and marketing automation agency, and regularly speaks at industry events on successful retail strategies. He can be reached at jeff@infotail.com

MAY | 2015

4/28/2015 4:13:59 PM

BOOST YOUR FACEBOOK MARKETING In January, the social network started filtering out unpaid promotional material in user news feeds. Hereâ&#x20AC;&#x2122;s how to win back your audience.

OPTIMIZING YOUR PAGE: Take a few hours to fully optimize your Facebook page and your store h 22

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By Crystal Vilkaitis

ver the past year, you’ve probably noticed a significant decrease in the number of people who see your posts on Facebook, which is described as as your post’s reach. With Facebook’s recent algorithm changes and revisions of the rules deciding who sees what in the newsfeed, it’s harder for businesses to have your posts seen for free—especially if your posts are overly promotional. Here are three vital ways to boost your marketing efforts and help get your page and posts seen and acted on.

Intercept and Connect Online marketers are competing with thousands of pieces of content a day from other brands and users’ personal networks. To stand out and get posts seen (and acted on), you need to relate to your perfect customer and intercept the consumer’s attention, not interrupt. Interruption online includes overthe-top sales posts, updates that are 100-percent promotional and discuss nothing but the brand. Posts that intercept the viewer are updates they actually find helpful and interesting. One way to understand what will help you intercept your customers versus interrupt them is by doing a customer profile. Just for a minute, step into the shoes of your perfect customer and take time to understand who they are and what their interests are. You’re going to need to do some homework. You’re going to have to find out where they live, if they have a family. What about pets? Do they have any? When they aren’t at work, what is it they like to do in their free time? What do they Google when they’re surfing the Internet? What television shows do they like to watch, what magazines do they like to read, what kind of things keep them up at night? The list goes on and on. When you do this exercise, have your perfect customer in mind. This is the person you want coming to your store, buying from

you and telling all of their friends. There’s a very good chance you’ll have several different types of customers you’ll need to perform a profile on. Based on your research, you’ll have a clearer idea of what type of content your customer would read and interact with online. Then, start creating and posting that type of content. Here are a few examples of posts from brands that are intercepting versus interrupting on Facebook. One Kings Lane stays relevant with timely content and incorporates looks from the red carpet into our homes, giving us tips and trends. This can be interesting to the consumer and shows that not only is One Kings Lane in tune with trends, but the company is also a helpful resource.

Optimize Your Page By taking a few hours to fully optimize your Facebook page, you have a better chance of showing up in Google and Bing search results and getting found online. Go through your entire page and look for opportunities to include more information about your business and the products you sell. Tap into the mind of the searcher. What is your home furnishings store's perfect customer Googling that would lead them to your front door? Make sure you have those keywords and phrases in your About section, photo captions, photo album descriptions and on the posts you publish to your timeline. Also make sure all of your Facebook photos have a keyword-rich description and a link that takes people to your website (assuming, of course, that you have a userfriendly website). Two areas that are often overlooked are the cover image and profile picture. Make sure these are clear images. Your Facebook profile picture should be easy to see as a thumbnail and the cover image should be timely, relevant and should be changed at least monthly, but prefereably even more frequently. Both of these images should have keyword-rich descriptions and links to your website. Use your Facebook page to drive traffic to your website by optimizing with links to your site.

Finally, when you’re optimizing, make sure your brand is consistent within your Facebook page as well as every other social media platform online. Check to see if logos and colors you’re designing with are up to date, and that there’s a consistent look and feel on all your social media sites.

Build Your Likes Growing your fan base and engagement rate on Facebook is crucial to your success, and is something that is ongoing. One free way to grow your Facebook likes is by sending an email to your database (if you have one), asking them to like you on Facebook. Couple it with a contest or giveaway and you’ll see a better conversion of opens to Facebook likes. Another free option is to post in-store signage asking people to follow you online. Make sure you include why they should become your fan and make it easy for them to do so. If you’re not using Facebook ads to market your posts, page and business, you’re wasting your time on Facebook. Facebook ads are a great way to build your network, exposure, post engagement, traffic (foot and web) and sales. There are a lot of different types of ads on Facebook, and a lot of targeting options, as well. I strongly encourage you to get some form of training on the ads platform before you dive in. That way you're not wasting your valuable time—and just as important—valuable money advertising the wrong message or product to the wrong audience. Facebook is still the largest social media platform, so there’s a very good chance the majority of your audience uses it. It’s time to re-evaluate your Facebook marketing strategy and consider these three tips to help you boost your efforts.

Crystal Vilkaitis is the owner of Crystal Media; a company dedicated to helping retailers integrate proven social media, mobile and email marketing strategies into their businesses. For more information and to receive free bi-weekly social media tips to your email inbox, visit crystalmedia.co.

d your store has a better chance of showing up in Google and Bing search results and getting found online. RetailerNOWmag.com

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THE GOLDEN BOY Bernie Moray has furnished homes in Michigan for 50 years. He’d like nothing more than to do it for another 50.

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By Robert Bell

ernie Moray loves to tell the story. Maybe you’ve heard it already. The one about the Gorman’s delivery truck grinding through one of those Michigan winter storms because Gorman’s promised a Saturday delivery and eight inches of snow isn’t going to tarnish the 50 years Moray has invested in his furniture chain’s impeccable reputation? What? You haven’t heard that story? Take it away, Bernie: MAY | 2015

RetailerNOWmag.com

4/28/2015 9:21:33 AM

BIDING TIME "I looked at the store as someplace to hang out and see if I could earn a living until I found something I really wanted to do," says Bernie Moray, recalling buying the store in 1965.

“So anyway, “ says Moray, “the snow and ice got so bad that the truck breaks down on the side of the road. A lot of stores would have thrown their hands up in the air and said, ‘Well, we tried.’ But we’re not like a lot of other stores. So we rent a truck. This one’s just a plain white truck. Anyway, the deliverymen somehow move the furniture from our company truck over to this plain rental truck and eventually they get to the house and pull into the woman’s driveway. The driver gets out and knocks on the woman’s door. He apologizes and tries to explain why he’s late, but the woman is just staring out at this plain, white rental truck …”

(Quick aside: The chair squeaks as Moray leans forward and chuckles. How many times has he told this story? Twenty? Thirty? Ninety-three times? At how many dinner parties? Conferences? Just think of the number of High Point waitresses and Las Vegas cabbies who have heard this story. And yet Moray still chuckles as the punch line nears. Others may tire of its telling, but not Moray. You can hear the pride in his voice. Maybe that’s why Gorman’s has such a large, dedicated clientele. Because Bernie Moray takes as much pride in this story as he does his company. Sorry, Bernie, continue.) “…So the driver keeps apologizing and RetailerNOWmag.com

Member Portrait (Bernie Moray)LC.indd 25

“

We’ve got the best brands in the world, but it doesn’t mean anything if we don’t make the customer feel like they’re the most important person in the world.

”

— Bernie Moray

MAY | 2015

4/28/2015 9:21:36 AM

asking the lady where she wants her furniture,” says Moray, “but the lady has a question for him: ‘Why is there a plain, white truck in my driveway? Where’s the truck with Gorman’s on the side? The driver tries to tell her the story again—about the snow, the ice, the broken-down truck—but the woman doesn’t want to hear any of that. She says, 'You have to come back next Saturday in a Gorman’s truck. I want all my friends and neighbors to know my furniture came from Gorman’s!' ”



ow comes the rest of the story: As much as he loves selling furniture, Bernie Moray started out never really wanting to own a furniture store. But once he did, he did it right. This year, Moray and Gorman’s are celebrating their golden anniversary—50 years—together. “You don’t stick with something for 50 years without loving it,” says Moray. “I’ve loved every year of business.” This love affair started just after World War II, when Moray took a job at Robinson’s Furniture Company in Detroit. He spent 18 years running the company’s factory and later as an upholstery buyer. One morning Moray woke up to an epiphany, “When you work for somebody and you eventually realize you know as much as they do then it’s time to get going.” Moray got going. There were job offers in New York, but he wanted to stay close to home. When he heard that Gorman’s, a furniture store in Detroit’s inner city, was for sale, he went to meet with owner Ben Gorman. Gorman’s roots traced back to the Great Depression. Owner Ben Gorman bought boxes of canned food damaged from train rides—a nickel a can—and sold 10 cans for a buck to his customers. One day, Gorman bought a damaged love seat from the railroad company. He repaired it and sold it for $40. He did the math: that love seat equaled 400 cans of food. By the end of the month Gorman’s was in the furniture business. Moray bought Gorman’s in 1965. “I looked at the store as someplace to hang out and see if I could earn a living until I found something I really wanted to do,” Moray recalls. In 1967, two years after Moray bought the store, it burned down during the city’s race riots, but by then Moray had opened a second store in nearby Southfield and the Gorman’s footprint was taking off. Today Gorman’s has four other retail showrooms in Troy, Novi, Shelby Township and Grand Rapids. At one point, there were more than 700 furniture stores in Detroit and its hinterlands. Moray decided he wasn’t going to win his customers over with price. Instead, he offered quality contemporary furniture with impeccable customer service. Moray would like to take credit for that winning formula, but he can’t. “Robinson’s was all about high-end furniture with a personal touch,” he says. “That’s all I knew so I said we’re going to do everything to the nth-degree, too.” That means Gorman’s trucks are washed on a regular basis. Personal phone calls are made to customers about upcoming sales. Fifty in-store designers are available for overwhelmed clients. And, sometimes, hauling furniture through a winter storm because you promised a Saturday delivery.

Member Portrait (Bernie Moray)LC.indd 26

MAY | 2015

PERSONAL TOUCH Bernie Moray decided early on he wasn’t going to win his customers over with price because of the more than 700 furniture stores in Detroit and its hinterlands. Instead, he offers quality contemporary furniture with impeccable customer service. “We’ve got the best brands in the world, but it doesn’t mean anything if we don’t make the customer feel like they’re the most important person in the world,” says Moray, who, at 93, still shows up to work everyday resplendent in a crisp suit, shirt and tie complete with a matching handkerchief. That Gorman’s has succeeded in a region and state that has been hammered by a mass exodus of jobs and citizens is a testament to Moray and his staff. There was a time in the 1990s when Detroit was losing furniture stores the way it was losing jobs, which is to say a lot. “Every year we’d see a dozen or so furniture stores go out of business,” recalls Tom Lias, Moray’s longtime business partner. Instead of circling the wagons a little tighter, Moray and Lias went out and handpicked the best employees from each shuttered store to come work at Gorman’s. “I’m not just talking about sales associates,” says Lias. “We went looking for the best drivers, the best warehouse people, the best designers, everyone. Today, when you deal with a Gorman’s employee, you’re not dealing with a trainee. You’re dealing with a career furniture professional.”

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4/28/2015 9:21:39 AM

The company also changed its image. Opening the contemporary store in Southfield in 1965 helped set Gorman’s apart, but 10 years ago Moray and Lias felt it was time for another change. Gorman’s was heavily invested in Drexel Heritage before scaling back drastically. The company established a platform for 100 furniture brands with eight major lifestyles and 14 specialty stores throughout its five stores. Customer’s responded with overwhelming enthusiasm. “There are a lot of people who have been doing it one way for so many years and they aren’t about to change, but Bernie’s not one of them,” says Lias. “Look, in Michigan, and especially in Detroit, it’s not if there will be another downturn, but when,” Lias says. “This is not a market with unlimited growth potential, it’s about carefully projecting out and making the right calls and having the right strategy in place. Nobody does that better than Bernie.” As savvy as he is as a businessman, he’s an even better human being, says Lias, who remembers when Moray was younger

Member Portrait (Bernie Moray)LC.indd 27

and president of the National Home Furnishings Association. “When we would go to High Point it was impossible getting anything done,” Lias jokes. “People would stop and want to talk to him in the showrooms, the hallways, the elevators and Bernie made time for all of them. Not because he ever thought of himself as a big shot but because he treated everyone with kindness and respect—still does.” Moray does not like the praise. He saves that for Lias and his other partners: vice presidents Jeff Roberts and John Moray (Bernie's son). “They bring stability to this company and our employees,” Bernie Moray says. “They do such a good job of communicating with one another that when it’s time for me to walk away, we’ll be in good shape.” Not that Moray is leaving anytime soon. “It’s too much fun,” he says. “I may not have been madly in love with the business when I first bought in, but I absolutely love everything about the furniture industry these days. There are more memories to be made." And stories to be told.

RetailerNOWmag.com

MAY | 2015

4/28/2015 9:21:43 AM

BENEFITFOCUS

THE POWER OF CONNECTING One of NAHFA’s benefits is our ability to bring people together. By Kaprice Crawford

ne of the best parts of my job is helping retailers connect with other retailers. Over the years, members have told me the opportunities NAHFA offers members to connect with one another have delivered more return on investment than any other membership service. So many members tell me they can’t imagine getting through certain situations without the relationships they’ve made with other retailers. You can, too. Here are three reasons why you and your store will benefit when you connect with other retailers.

1. Advice We rely on our networks to advise us and keep us on track, and we give back to our networks in return. NAHFA has a Retailerto-Retailer Resource list made up of NAHFA board members and past presidents who are willing to help fellow members find the answers to your questions and situations. As a business owner, what better advice can you receive than from another home furnishings retailer who has been in your shoes and has solved a problem you are going through right now? Nobody wants—or needs—to reinvent the wheel. You also have the opportunity to give back to other members. Every year NAHFA asks its members to fill out a Membership Update Form. On that form we ask “In which areas of your business do you consider yourself an expert?” There are nine areas (from operations and sales training to human resources and marketing). When you check any of those options we can then share your information with members who also might need advice or a retailer ‘expert’ to talk to.

2. Friendship

PROBLEM SOLVED Nobody needs to reinvent the wheel.

If you have a problem, chances are there is an NAHFA member who’s already solved it. Let us help you connect with them.

with retailers near and far, many of whom share your specific challenges. Year after year I see retailers reconnect when they stop in our Retailer Resource Centers at the High Point and Las Vegas markets. No matter where you are NAHFA offers a way to catch up with your industry friends and strengthen the bonds.

3. Positive Influence You are who you associate with. If you surround yourself with the right people who have a strong work ethic, a positive attitude and a record of success, the likelihood of your achieving similar success is greater. Modeling successful people is a proven way to improve your own performance and help your business. What better way to model people up close and personal than by attending a regional event, conference or seminar? Let us help you grow your circle of influence and connect you with like-minded retailers. You don’t have to go it alone. If you have a question, concern or just want to bounce an idea off another retailer who might be able to encourage, offer suggestions or even keep you from making a costly mistake, I can help. I look forward to hearing from you!

Never underestimate the benefit of having a friend in the same business. Industry friends can empathize with your highs and lows, offer encouragement and motivation and serve as sounding boards. Attending NAHFA’s regional events (check out our Networking News on page 57 for upcoming events) or our Home Furnishings Networking Conference in Orlando, connects you

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MAY | 2015

Kaprice Crawford is NAHFA’s membership director and can help NAHFA members with many of the questions or problems they encounter on the job. Contact Kaprice at 800-422-3778 or kcrawford@nahfa.org

RetailerNOWmag.com

4/28/2015 4:22:07 PM

“If “If you don’t “Ifyou youdon’t don’t hire hire us us for your usfor foryour your promotional next nextpromotional promotional next sale, sale, your sale,your your competitor competitor will.” will.” competitor will.”

GROW NOW

Chris ChrisLynch, Lynch,Co-CEO Co-CEO Chris Lynch, Co-CEO For Forover over100 100years, years,the the For over Lynch 100 years, family-owned family-owned Lynch Sales Salesthe family-owned Lynch Sales Company Companyhas hasdelivered delivered Company hastodelivered onon our ourpromise promise tohelp help on our promise to help our ourretail retail clients clients succeed succeed through through Lynchclients promotional promotional our Lynch retail succeed sales, sales,ororclose close with with dignity dignity through Lynch promotional with withour our complete closesales, or complete close withclosedignity out outsales. sales. I am I am particularly particularly with our complete closeproud proud that that many many of of those those out sales. I am particularly storeowners storeowners reward reward usus with with proud that many of those their their repeat repeat business, business, time time storeowners reward us with and and again. again. Let Letthem them tell tellyou you their repeat business, time why whythey theyprefer preferthe theintegrity integrity and again. Let them tell you ofofour ourbusiness businessmodel modeland and why they prefer the integrity contractover over our ourone-page one-pagecontract of our business model and that thatofofour ourcompetition. competition. our one-page contract over that of our competition.

You’re passionate about growing your business. Guess what? So are we. RetailerNOW is the only association publication dedicated to helping retailers like you grow and prosper. Each month we bring you expert analysis, industry insight and interesting stories to help you succeed. Subscribe now. Visit Retailernowmag.com.

ToTohear hearmore morefrom from successful successfulretailers, retailers,visit To hear morevisit from www.lynchsales.com/ www.lynchsales.com/ successful retailers, visit testimonials testimonials www.lynchsales.com/ testimonials

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11:15:20 AM

How furniture retailers can engage Gen X & Y and

WIN SHOPPERS 75%

82%

of online searches are related to local content

Consumers are smarter and more informed than ever

Shoppers want content, information, pricing, inventory, experiences, pictures, videos, social presence and more.

By Bill Napier

of online searchers follow up offline

Baby Boomers

76 Million

57%

of smartphone users search for products on their phone every day

80% of

success is showing up

Gen X and Y

112 Million

Consumers consult

an average of 11 new media or traditional sources before purchasing

32-45

year old women are your prime demographic

DIGITAL

Customer Experience

napier.indd 30

MAY | 2015

MOBILE

Shopper

The Baby Boomer generation, 76 million strong, is now between the ages of 51 and 69, and has driven the economy the last 20 years. We all know the prime demographic for furniture buyers is between the ages of 32 to 45 years old and predominantly female. Boomers might be buying their last mattress or a couple of pieces like a recliner, but they are not the primary consumers of home furnishings. That distinction goes to the 112-million strong Generation X & Y members who are “wired for the Internet.” And these wired consumers have zero tolerance if you don’t deliver a contentrich environment that’s also optimized for tablets and smartphones. Today’s consumers do not drive their father’s Oldsmobile. They know virtually everything about your products before they show up at your store. They find incredible details online from every possible source, about the brands and products that matter to them. They search for, tunnel, explore, visualize and master their information requirements, and then they’re ready to visit your store and buy with confidence. And what they learn, and the experience they go through, they share with others. Digital technology gives your consumer the power over everything. Consumers are smarter and more informed than ever. With a few simple keystrokes or screen tap, shoppers can find anything and everything they want to know about products, services, prices and reviews. No longer is an advertised promise enough. Now it’s all about delivering on what consumers define as your promise. Here’s how you can be part of the new consumer’s buying process, instead of being part of the demise of the small and medium

RetailerNOWmag.com

4/28/2015 9:30:12 AM

retailers at the hands of the large online retailers. Today’s consumers go online everywhere asking for recommendations and referrals. They’re not only asking for names and phone numbers, they’re asking for websites, they’re having conversations with other people, they’re looking up reviews to see what experiences others had with your store. Then they’re checking out your products and prices—assuming, of course, they can find you. Think about these statistics: 75 percent of web search activity is done with a local intent. Seventy percent of respondents are more likely to use a business with some type of social presence. Eighty-two percent of Internet searchers follow up offline. This is not a fad. In fact, those numbers are only going to grow in the coming years.

If you’re feeling overwhelmed, maybe you’ll feel better knowing the three fundamentals of marketing are still relevant:

ATTRACT

new customers to your store

ENGAGE

them with your products and your brand message

CONNECT

with them to deliver sales leads and opportunities, through conversations/interactions and transactions online or in-store The difference now is how these fundamentals work in the digital age. Consumers consult an average of 11 new media or traditional sources before purchasing. That’s twice the number of sources they consulted last year. What are they looking for? Everything—content, information, prices, inventory, experiences, pictures, videos, social presence and more. Your content needs to be shared. Are you delivering content for your customers? You should be—that’s where a sale is won. Today’s consumers demand a great shopping environment with a lot of products and an easy-to-shop format. If you don’t have a ton of content that shows a lot of product, consumers will assume you don’t carry what they’re looking for and they’ll most likely move on to a retailer that

does and possibly then default to an online retailer. Remember, 82 percent of Internet searchers want to do business locally. More than 75 percent of online search activity is related to local content. Yep, there’s that word again—content. And most of those consumers searching for furniture are starting and finishing their search on their cell phones or tablets. That means your website and content MUST be dynamically configured for mobile because poor experiences don’t convert customers. When viewers visit a website on their smartphone that’s not mobile optimized, they will go elsewhere. This isn’t a fad either. Fifty-seven percent of smartphone users search for products on their phone every day, a number that’s only going to grow.

Buyer Beware Everything is mobile now, and if your website is not optimized for it, you’re losing business. A mobile-friendly website is an HTML-based website that doesn’t contain Flash. Why does that matter? Because Apple iPhones do not support Flash and Apple has sold more than 500 million iPhones since 2007. By 2017, that number is expected to reach 1 billion. Think about that number for a minute. That’s a lot of consumers you will possibly lose. Mobile-optimized sites eliminate the need for the viewer to scroll left or right or to pinch and zoom to read text. Mobilefriendly site navigation is built for efficiency, the images are optimized for quick loading and the content is minimized to be most effective. Additional mobile-only functionality includes tap-to-call, tap-to-email, tap for Google Maps and much more. And starting last month, search engine giant Google began factoring your store's search ranking depending on whether or not your web site is mobile friendly. Furniture products are complex and information rich. You make money by selling the products that you offer. The main reason a consumer visits your retail website or brick-and-mortar store is because they are considering purchasing your products. The more products you show, the more stories you tell about those products, the more inquiries you’ll get and the more you’ll sell. I call this simple math. So again, you must have a ton of content, descriptions, great photography, warranty information, videos,

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SO NOW WHAT? Marketing guru Bill Napier offers six quick tips for luring online shoppers into your store. • Be where your customers are researching—online! That’s with a website, social media platforms and blogs. Blogs are the number one way to increase inbound web traffic to your website. • Make sure you have a ton of products for the consumer to engage with on your site. If you have 50,000 SKUs to sell, show them. You can always label your items On-Display or Special Order. Remember, websites like Overstock. com are all Special Order. • Your potential customers use social media—do you? • When was the last time you updated your website? Do you have at least 3,000-10,000 items on it? If not, you better. Overstock has close to one million items, as does Amazon and others—and they would love to steal your business! • Eighty percent of Americans have smartphones. Is your website mobile optimized? Find out by typing your website address here: http:// tinyurl.com/qyyhwkp. • When was the last time you checked your online reviews? Yelp and other review sites are not just for restaurants, they are for retail. reviews and more so the consumers can get all their needs, wants and desires addressed. If you have 50,000 SKUs show all of them, because when consumers search for specific products, you’re more likely to show up in search as the local resource. Woody Allen noted that, “80 percent of success is showing up.” Today’s successful retailers show up in search results, social media, conversations and most importantly as a local store people can buy from. Bill Napier is managing partner of Napier Marketing Group. He is also a strategic consultant to RM Innovations, Imagine Advertising, Englander Mattress and several other companies in the home furnishing industry. He can be reached at billnapier@napiermkt. com or 612-217-1297.

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BURSTING THE BUBBLE ON TRANSPARENCY What your employees donâ&#x20AC;&#x2122;t know will hurt you. Show them the financial side of your business. By Marty Grosse Furniche.com founder Marty Grosse has 35 years of retail experience. Furniche provides visitors real, relevant and timely shopping advice with access to research, local furniture stores and manufacturer information. Grosse can be reached at martygrosse@furniche.com

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s a business owner, you know the importance of your company being profitable is a no-brainer. But do your employees understand what it means to your company and to their livelihood? Over my career the subject has been presented and promoted in various ways to employees. One common refrain has been “treat the business like it was your own money.” How do you communicate profitability and its importance to your staff? How do you measure and reward a focus on profitability? How do you get your employees to care about expenses the same way you do? First let’s work on the assumption that employees want to do what’s right for the company and its long-term success. It’s up to management to educate them on the importance of decisions and the impact on profits—that means being transparent and sharing financial data with your employees. Some employees believe the company is making money hand over fist and has deep pockets. Improving their understanding and awareness of the realities of running a business goes a long way in dispensing these perceptions. I have worked in organizations that were transparent about sales and profits while others closely guarded this information. In some cases even managers in key or senior positions didn’t know whether the company was profitable. Of course publicly traded companies must disclose results but that doesn’t mean the line employees know or understand the importance of profit to the organization. Employees easily recognize these concepts regardless of how much information you share with them. Remind them of these as a foundation of profitability awareness.  A financially strong business keeps everyone employed.  The economy has historical ups and downs.  Profitable companies grow. Growth provides income and advancement opportunities.  Just like a personal budget, you can’t spend more than you make without repercussions.  It is wise to save for a rainy day. In a transparent environment where information is freely shared, you can improve expense control with incentive or profit-sharing plans. Face it, when people benefit financially from their actions, they’ll make better decisions. Develop an incentive plan based on profitability and share it with all employees. Be sure it is realistic and meaningful; unattainable pie-in-the-sky plans will likely fail. You always have the option to adjust going forward. Here are ways to be transparent and educate and develop profitability awareness.  Share and review the P&L statements (complete with expense details and targeted percentage to sales goals) with senior managers, store level managers and department heads. Review categories above the percentage goal and make the necessary changes.  Challenge employees to think outside the box and ask management to be open to any ideas that might reduce costs. The old-fashioned suggestion box still works.  Quantify the costs of categories and set goals. For example, what’s the real cost of exchanging merchandise? What’s an acceptable (if any) level of damaged inventory sitting in the warehouse? The same goes for discontinued inventory not being cleared out in a regular fashion or even worse allowed to sit in the warehouse.  Include managers and key personnel in developing annual bud-

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gets. This process not only educates but allows feedback from those on the firing line. In a retail environment where information is more closely held there are still ways to focus on profitability and making profitable decisions. Incentive plans still work here without communicating specifics.  Establish operational goals and benchmarks in areas that impact profits, then build incentive programs around them. Trite but true: What gets measured improves.  Develop cost containment programs where employees are asked to find ways to save on company expenses. Recognize individuals, their ideas and successes if implemented as a way to maintain a dialogue and awareness of expense controls. Simply asking employees to look at the business like they owned it is a good way to start this conversation.  Give your company a grade on profitability and communicate regularly. For example, during the last quarter our company had a “B-“ on expense controls.  Explain why the company chooses not to disclose specific financial information. One organization I worked with conveyed the desire to keep everyone focused on selling and customer service. They would also explain that major expense categories like rent and advertising categories were not under the control of line employees.

Teach Controlling Expenses

A common retail home furnishings phrase we all hear is “good sales hide a multitude of sins.” In other words, if sales are going well it’s easy to look past or lose focus on expense control. This lesson was reinforced when the economy went south several years ago and exposed our expense problems. Many of us started scrutinizing every expense as sales became more challenging. Teaching employees that every store has a break-even point—just like their own personal budget—goes a long way toward developing an expense-conscious mentality and focus on trying to remain profitable. Thus true employee awareness of profitability must link expense control to sales productivity. Promote these selling concepts in conjunction with profitability discussions:  There is a cost to advertise and bring customers to the store. Improve your closing percentage to sell more customers and advertising expense lowers as a percentage to sales.  The more you sell a customer the greater the gross profit for each transaction. You may need to explain to employees what gross profit is versus gross margin.  Selling with honesty and integrity reduces buyer’s remorse and merchandise exchanges. Again, explain how returns and exchanges have direct impact on profitability.  Discounting merchandise for a customer is like taking a personal cut in pay. In a commission environment this is literally true. For the store, a lower gross margin is akin to a pay cut. As an owner or senior manager, the task of promoting profitability rests solely on your shoulders. It is a topic that needs to be introduced early and often with employees. Set the tone in your store or company and consistently reinforce it in training, meetings and ongoing communications. Help your employees take ownership of profitability by providing tools to understand the impact each employee has on profitability. A good decision by one employee is great, but a good decision by 100 employees is …, well, priceless. Go ahead and ask them to “treat the business like it was their own money.” Given the right incentive, don’t be surprised when they do.

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Mining Big Data to Sell More Furniture If you think retail’s latest craze is reserved for the big boxes, think again. By Anders Ekman Targeting furniture shoppers is more difficult than ever in today’s economy. Consumers do research online, browse numerous retail sites or get recommendations on social media before even stepping into your store. Some prefer to get personalized recommendations through email, while others respond best to a direct mail piece. And of course, generations such as the millennials are on everyone’s radar—but how to reach them best is still a big question. The point is that each consumer is different and they have their own unique preferences on how they shop. Many retailers have turned to buying lists of prospects and blasting messages in the hopes of enticing new customers into their stores. However, these lists are often outdated and are used by every other competitor in the market. But big data holds some promising advantages. While you probably already have loads of data on your customers and prospects, you could be doing a lot more by tapping into even bigger data sets.

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Big Data Delivered Via Data-as-a-Service While the idea of big data is exciting, it can also be daunting. Visions of data scientists, huge budgets, and time-intensive resources often come to mind. However, Data-as-a-Service (DaaS) makes accessing big data possible—and the best part is that you do not have to hire a team of data scientists to get started. So what exactly is DaaS? In the simplest of terms, DaaS sources consumers who are searching for furniture and delivers this data to you on a daily basis so you can send them targeted offers. Imagine the competitive advantage in having first-hand insight about someone who just posted on Facebook that they are looking for furniture recommendations. Imagine getting daily streams of prospects from all across the

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country who are planning to move within a 10-mile radius of your home furnishings store and cvould use your services. Sounds great, right? But how does DaaS actually work? DaaS combines your internal customer data (POS, email systems, billing departments, etc.) with real-time and Hard-to-Find-Data (HTFD). Let’s be clear: You are not buying a list. DaaS combines

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three types of data (foundational, onboarded and fast), and is customized based on your unique needs.

Foundational Data Foundational data refers to what your customers and prospects look like at the moment—a 360-degree view. A foundational data set includes internal data, demographic or firmographic data, and hard-to-find specialty data sources. Internal data is any type of data you already have about your customers. This includes information such as past purchases, email, billing addresses, credit card purchases, or call center logs. Additional demographic and firmographic data can also be added to this foundational set for a better understanding of what your customers and prospects look like. For example, as a home furnishings retailer, you may want to know your customers’ age, lifestyle, interests, marital status, net worth, home square footage, occupation, and more. For B2B retailers, demographic data can be added such as annual revenue, D&B credit rating, legal code, number of employees, primary business address, SIC, and years in business. Many vendors offer numerous data enhancements that can be matched to your customer records. Unique and hard-to-find-data is then sourced through DaaS to create a more robust view of your customers. These are data assets that have been aggregated from hundreds of big data sources, going well beyond third-party lists. As an example, these may be self-reported sources of furniture or decorating interests or new movers and pre-movers.

Onboarded Data Data onboarding brings information such as names and addresses into the online world. As part of a data onboarding process, data such as a phone number, email address, name, or a physical address are used as identifiers. This data is then matched to online cookies, creating a universe of digitally addressable prospects and customers. By knowing the IP address of your top customers and prospects, you can show display ads to them when they are shopping online. Or you can show ads with specialized offers to customers you haven’t seen in a while. People are also increasingly using their mobile devices to shop. Cookies can’t be used on mobile devices the same way they can be used on desktop devices, but through onboarding, mobile IDs can be identified so you can reach mobile users.

Fast Data Fast data aggregates real-time data, such as mobile data, social media, and the Internet of Things (IoT) to determine purchase intent as it occurs. These may be consumers who are actively searching for specific categories of furniture you (or your competitors) sell. Other examples include social purchase signaling, such as people posting to social networks about “Moving soon.” Or there may be other types of purchase power signals, such as customers and prospects who are securing new credit sources or planning to move residences. DaaS providers tap into several types of data to source these unique furniture data sets. Some examples include: Search Information: Using digital cookies or a database of consumers who can be identified online, any number of searches

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Retailers can identify new prospects by age, income, home ownership, home improvement and decorating interests, expectant parent, home square footage and more. can be monitored. These may include searches for bedroom furniture, a competitor’s name, moving companies, or mortgages. Social Media: The average global Internet user spends two and a half hours a day on social media. Because of this and what they share, an array of data is available on personal preferences, likes, check-ins, shares, and comments. These may be comments and phrases in social media posts such as furniture recommendations, moving to city name, or getting married. Transactional: This data includes transactions such as insurance claims and credit card purchases. Some great examples are new home listings in an online real estate database or monitoring of credit bureau information for mortgage activity. So what does all this mean? Here are a few examples of how Dataas-a-Service can specifically be used to target in-market furniture consumers. Third-Party Consumer Data—Identify new prospects by a variety of data elements, such as age, income, home ownership, home improvement and decorating interests, expectant parent, recent divorce, recent home buyer, home square footage and more. Millennial Data—Segment millennial consumers by proximity to your store, income, whether they are a homeowner or renter, and lifestyle interests such as technology, home improvement or decorating. Pre-Mover and New-Mover Data—Innovative web mining technology identifies pre-movers and new movers who may soon be in the market for furniture. This real-time data is gathered across a comprehensive network of websites and includes information such as new rentals, houses sold, geography, income level and more. Social Signaling Data—Monitor social media for furniture purchase signaling, such as excited about the move, or looking for a leather couch. Onboarded Data—Identify your customers and prospects online by their IP addresses or social media IDs. You can then send targeted ads and real-time messages when they are shopping or browsing online. DaaS is a revolutionary way for your store to mine today’s massive data sets to find qualified prospects who are in the market for furniture. DaaS is the next leap forward in the modern data ecosystem, fueling competitive marketing advantages in new and exciting ways. Getting started is not as difficult as you may believe. The real work is in making the commitment to begin using big data to your advantage. A data service provider who offers DaaS will work with you to determine what types of customer data you already have, how it can be consolidated into a database and will then work with you to source these unique data sets. Anders Ekman, president of DataMentors, has brought data-driven innovation to clients including MasterCard and Kohl’s. Anders has also worked with well-known brands such as GM and AT&T Wireless. He can be reached at aekman@datamentors.com.

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80%

20% FLIP THE PARETO PRINCIPLE

Flip flop the 80-20 rule and increase your sales 40

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By Gerry Morris

opefully your curiosity compelled you to see what the heck the Pareto Principle is and what it could possibly have to do with mattress sales. Well, keep reading. Maybe you know the Pareto Principle by another name, the 80/20 Rule. Roughly 80 percent of effects come from 20 percent of the causes. The Pareto Principle was the inspiration of Italian economist Vilfredo Pareto as he researched his country’s uneven wealth distribution in 1896. These days the 80/20 rule applies to so many relationships between two quantities that in the world of statistics it’s known as a power law. For whatever reason, it just seems to be a natural phenomenon that can be applied to almost anything. As it pertains to mattress retail, 80 percent of a company's mattress sales are made by 20 percent of its sales staff. Eighty percent of mattress sales come from 20 percent of shoppers. Eighty percent of mattress profits come from 20 percent of mattress customers. Eighty percent of mattresses sold come from 20 percent of the floor models. Of course there may be a wide variance here, but the bigger point prevails, “fewer” account for “most” in virtually every category. Over the years I have certainly found this to be true, especially in home furnishing stores. In fact, some ratios can be even leaner. Sleep specialty stores also have their top tier producers, but the

production differences are not as dramatic. But a surprising number of home furnishing sales associates actually shy away from mattress sales, many more are not as effective as they could or should be. Why is that? The major cause for some sales people to be less effective than others is the mattress shopper. That’s right. There’s a dramatic difference in attitude, motivation, demeanor and even body language between home furnishing shoppers and mattress shoppers. So much so that you can likely discern the difference the moment they walk into the store. One is more relaxed, animated, impulsive and, yes, happy. The other is more aloof, serious, purposeful and determined. Guess which shopper is which—and which shopper’s is more approachable? Bingo. Amazingly, many sales associates willingly invest valuable time with “just looking, home furnishing browsers” that have little intention of buying, and shy away from a mattress shopper practically guaranteed to buy. While it may be quite appropriate to hand a business card to a browsing furniture shopper, cards given to mattress shoppers may as well have the words “Please buy from our competitor” written on them.

Do a Flip Flop One of the best-selling business books in the last decade, Richard Koch’s The 80/20 Principle, says you can achieve much more with

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Se Ne

It’s imperative that each shopper be met with an open slate, meaning, a totally objective approach. There is no way to know which models any given shopper may be happy with. much less effort, time and resources, simply by concentrating on the all-important 20 percent, the producers. Some call this superstar management and there are arguments that support it. But as the principle pertains to mattress sales, I disagree. If the glass is more than three-quarters empty, I say add more water. In other words, if you want to increase sales, focus on expanding the production of the 80 percent in each category. Now let’s take a look at some ideas on how to invert the ratios and maximize sales.

More Effective Training Doesn’t it make sense for sales management to spend 80 percent of its allotted time helping the 80 percent get dramatically better than to help the 20 percent marginally improve? Actually this ratio works out well. Spending 20 percent of your efforts on the top producers pays big dividends, but because they are already performing well, they don’t need as much help. Retail sales associates need to be trained to recognize the difference in the attitude and motivation of each shopper (furniture or mattresses) and be able to adapt accordingly. There is a different give and take, requiring a more serious approach to mattress sales. Sales associates must be prepared with product knowledge, features and benefits and a different set of selling skills. All can be taught and learned through effective and ongoing sales training. As I mentioned in last month’s issue, sales people must try to close every mattress sale or else let a competitor do so.

Or Fie

associates get more comfortable and confident showing and selling mattresses. Some shoppers will actually buy and others will be more inclined to return to your store when they do need a mattress.

Increase Average Ticket Price Serve shoppers instead of selling them by encouraging all, and especially budget-minded shoppers, to choose to invest in more supportive and comfortable products for their benefit to increase the quality of their lives. Increase attachment rates by always recommending accessory items to help enhance their enjoyment, maximize the lifespan and protect the investment in their mattresses.

An Objective Approach It is quite common for sales associates to develop habits, patterns, personal preferences and comfort zones, especially when there’s an abundance of floor models available. Best sellers can be totally fabricated simply because sales associates get good at selling them. It’s imperative that each shopper be met with an open slate, meaning, a totally objective approach. There is no way to know which models any given shopper may be happy with. Sales associates must have the knowledge and confidence to demonstrate and educate shoppers on every product on the floor and be able to gather and use pertinent information from every shopper to find the best matches.

Approach every shopper Mattresses are the one product your sales associates can mention to everyone entering the store regardless of what they are shopping or browsing for. Forming the habit of incorporating mattresses into the conversation can pay big dividends. It is less stressful than working with someone on a seeking-the-best-value mission thereby helping sales

A d a

Break the Rule You don’t have to accept the Pareto Principle. Flip flop the 80/20 rule and dramatically increase your sales. Gerry Morris has more than 20 years experience in the mattress industry. In partnership with the Furniture Training Co, Morris offers a premium online training course, “Sell More Mattresses with Gerry Morris.” To view the course, visit furnituretrainingcompany.com.

Ca or

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THERE’S NO DENYING IT, OUTDOOR FURNITURE—ALSO KNOWN AS CASUAL FURNITURE—IS ONE OF THE FASTEST GROWING CATEGORIES IN THE INDUSTRY AND IT’S NOT JUST FOR SPECIALTY RETAILERS ANYMORE.

FIRE SELLS Consumers across the country are extending the seasons with incredibly designed outdoor furniture and fire pits like Apollo from Klaussner.

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By Lisa Casinger

ccording to the American Home Furnishings Alliance’s (AHFA) 2015 Outdoor Living Trend Report, more than 80 percent of American households plan on buying outdoor furniture or accessories this year, that’s up from 62 percent a year ago. The report also shows that more people are moving outside to celebrate and entertain and manufacturers are meeting their needs with generously-scaled dining and seating groups that are nearly indistinguishable from traditional, indoor furniture. “Full-line furniture stores see outdoor as a new and profitable revenue source,” say Teresa Buelin, sales and merchandise manager for Klaussner Outdoor. “More and more consumers are asking for better outdoor furniture and being able to have it available rather than referring them to an outdoor

COLOR POPS Cassley from Klaussner is hand-woven, all-weather wicker featur-

ing Klaussner Outdoor exclusive drain through all-fiber cushions in bold pops of color—another trend for outdoor this year.

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specialist is an advantage.” Asheboro, N.C.-based Klaussner got into outdoor in a big way last year when outdoor industry veteran Gary McCray joined the company as president of Klaussner Outdoor. Buelin joined Klaussner to develop its outdoor sales force. The company launched seven collections at the Casual Market Chicago in September with good, better and best categories and price points. Klaussner also showcases its outdoor collections at the High Point and Las Vegas markets. Agio, based in Virginia Beach, Va., celebrated its silver anniversary last year. It’s the largest outdoor furniture supplier in the U.S. with product ranging from extruded aluminum and castings to all-weather wicker, fire pits, and more. Agio exhibits at the Casual Market Chicago and in High Point and this summer it will anchor the 12th floor of Building C in the Las Vegas market’s new casual furnishings category. Doug Peppler, Agio’s senior vice president/sales says his company’s philosophy is simple. “Outdoor is an extension of the home, and if the marquee on your storefront reads ‘furniture,’ then outdoor furniture should be part of that mix.” Peppler thinks of outdoor furniture sales as “found money” to full-line home furnishings retailers because it is dollars retailers never seen before. Outdoor furniture options are mimicking indoor options more and more. AHFA says manufacturers are offering more dining collections that include long, rectangular tables to accommodate more guests (some even feature extensions or butterfly leaves that fold out of sight when not in use) and dining chairs that feature deep-cushions along with swivel and rocking motion. New seating options are emerging outdoors too, such as crescent-shaped sofas and loveseats designed to curve around a cocktail table or a new take on the Victorian “kissing bench” or courting chair, which allowed two people to sit close, facing one another. If you are a retailer with stores outside the Sun Belt, don’t think outdoor isn’t for you. “Surprisingly enough, the north loves outdoors as much, if not more than anywhere,” Peppler says. “For northern residents—and I live in Wisconsin so I speak

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from experience—the summer season is shorter than our counterparts in the south, which is why we treasure being outdoors. There are some larger home stores based in the Northeast and upper Midwest that do exceedingly well carrying outdoor lines.”

Location, Location Geography may actually help outdoor furniture sales because consumers are extending the season with outdoor fire elements— a product category that has really taken off—and they’re furnishing their second (or even third) homes on lakes, resorts and golf courses. “The reality is our company actually sells more furniture in the northern half of the country than in the southern half,” Peppler says. Buelin also sees New England and the Midwest as viable markets for outdoor furniture and finds consumers using outdoor furniture in sunrooms and four-season rooms.

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SOME LIKE IT HOT Fire elements (top photo) are the hottest trend in outdoor, as shown in Agio’s Balmoral collection. Agio’s Franklin collection (above) is shows off this year’s trends of grey and the distressed-wood look.

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4/28/2015 2:30:05 PM

84%

of households hope to add these outdoor furnishings in 2015

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Capture Those Missed Sales

the SHOPPING LIST for America's Patios & Porches CHAIR 39% FIRE PIT 38% CHAISE LOUNGE 37% UMBRELLA 35% DINING TABLE 35% LIGHTING 33% PILLOWS 29% HAMMOCK 27% SOFA 21% OUTDOOR RUG 21% BAR 15%

She says, “Fire pits have definitely extended the season— which coincidentally extends the ‘selling’ season, as well.” Adding a fire element to the outdoor furniture product mix has been one of the biggest innovations to the category in years; Peppler says it’s the highest growth category in outdoor and has moved past the early adopter stage to fullgrowth mode. According to the DIY Network, fire pits were the fourth most popular DIY project of 2014. AHFA’s research shows no sign of a slowdown in this trend, with 38 percent of shoppers reporting they’d be shopping for a fire element of some sort this year. “The interesting thing about portable outdoor fire pits is that they sell throughout the spring and summer, and then again during what we call the ‘second season’ of selling in the fall,” Peppler says. “Consumers want to extend the season and stay outdoors and retailers who are stocking product for this ‘second season’ are really reaping the benefits and taking business from their competition.” Taking business from the competition is always a big hurdle for retailers, but even more so when they’re swim-

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ming in an uncharted product category like outdoor furniture. They key with any new category—be it youth, upholstery, mattresses or outdoor—is proper sales training. Klaussner Outdoor offers dealers training through online courses on Klaussner University and both Klaussner Outdoor and Agio have veteran sales reps who are more than willing to work with and train dealers on the ins and outs of outdoor furniture. “When a customer walks in the door, the educated sales staff will better understand how to address the category and sell the benefits of the product,” Peppler says. Peppler cautions against having the idea of if you build it they will come. “The floodgates just don’t open because you bring in a new category. Our advice to new retailers is to have the right product mix; market

your store as a destination for outdoor; and be committed to a five-year plan. The traditional retailers we see who are now thriving with outdoor have put together a five-year plan to become the outdoor destination for their customers.” Buelin also encourages retailers to commit to a dedicated space on their floor for outdoor—preferably up front during the selling season. She adds, “[Full-line stores] are at an advantage with their current customer base, so it would be a matter of letting them know they are now offering the outdoor product. At Klaussner Outdoor, we make all of our photography available and also have postcard, drop-in ads and video available for dealers use.” Carrying outdoor furniture also gives retailers a new story to tell, especially in the

spring. Having outdoor in stock (and on the floor) gives retailers a great centerpiece for another seasonal ad campaign, design events, in-store celebrations or sales pitch. Aside from having an existing customer base, full-line retailers, according to Peppler, have “marketing budgets that dwarf the specialty retailer.” He says if you develop your product mix correctly and you become the destination for furniture that can include outdoor furniture. “For the last 10 years we have seen a steady decline in the specialty outdoor furniture stores throughout the country so the nature of the retail competition has changed dramatically.” Peppler says. “Many of the specialty retailers for outdoor furniture have transformed considerably from where they once were or have essentially gone away.”

T F

STANDING OUT Pops of color and pattern give this Designer’s Patio vignette a casual contemporary look that used to be reserved for indoor rooms.

TOUGH STUFF Designer’s Patio illustrates the color-stay properties of Sunbrella outdoor fabrics with this jar of bleachsoaked samples.

Geneva Wallace, sales executive of Designer’s Patio in Dallas, said her showroom is set up much differently from most retail stores. “A typical retail store will show a little bit of everything. Where on our floor we try to show the majority of the pieces for each collection we show,” she says. “Our furniture slots are 15x15 or 20x20 and in a typical retail set up the slots are closer to a 10x10 space.” Designer’s Patio is a to-the-trade only business where designers can bring their clients to shop. “We special in customizing your back yard space,” Wallace says. “Designers are our main clients, but we also work with a lot of architects, builders and hotels.” The company offers lines from 20 different manufacturers and sells everything imaginable—from furniture, cofee tables and umbrellas to

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fire pits and accessories. If it pertains to outdoors, chances are good that Designer's Patio has it. Wallace says designers seem most particular about two details—design and quality, particularly when it comes to fabric. “The one question we still get is ‘How long will the fabric last?’” Wallace says. “People are still amazed that you can put a true Sunbrella fabric outdoors, in full exposure and have long lasting color and texture. When we are asked this, we give them personal samples and we show them the Jockey Red Sunbrella fabric we have in a jar of bleach... it has been there for more than a year.” Even after a year, the fabric hasn't lost its dark hue of red for being submersed in bleach. The inherent cyclical nature of outdoor furniture isn’t much of an issue for this Texas business, and Wallace adds that since most of Designer’s Patio’s orders are custom and take anywhere from six weeks to three months to fill, the company’s customers are usually purchasing furniture for their outdoor areas year round.

SELLING IT

Teresa Buelin, sales and merchandise manager for Klaussner Outdoor, Doug Peppler, senior vice president/ sales for Agio and Geneva Wallace, title Designer’s Patio share tips on selling outdoor furniture.  Have good, better, best price points available.  As a retailer, educate yourself on the value of outdoor products being added to your floor and how that product will benefit the customer. The price points can cause some apprehension. When indoor sofas are selling for $799 and an outdoor sofa retails for $1,299, that’s enough to give pause to some home furnishings retailers.  A well-trained sales team is imperative.  Commit to the category. A couple of sets of furniture on the floor is not a

commitment. Selection is key.  Accessorize with toss pillows, rugs, outdoor lighting, fire pits – making each setting look inviting is very important. Correlated fabrics make buying decisions easier. Set up vignettes showcasing how the customer can or will use the furniture. Use outdoor curtains, umbrellas and plants to give each set up its own space. Use large mirrors with panes to create an outdoor feel.  Signage makes it clear that the area is “Outdoor."  Make outdoor a priority in the spring and summer months; bring it to the forefront of the showroom floor and prominent display. Make sure it’s part of your advertising mix so consumers know you’re really in the business of selling outdoor.

THE ULTIMATE DESTINATION FOR ALL THINGS OUTDOOR Wednesday, September 16 – Saturday, September 19, 2015

The Casual Market is the world’s largest marketplace for the best in outdoor furnishings. Discover new products, hundreds of exhibitors and the largest selection of permanent showrooms anywhere. The Merchandise Mart, Chicago CasualMarket.com #casualmarket

JANUS et Cie

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Forget Profit, Cash Flow is King The ability to generate cash might be the true measure of your store’s health.

By David McMahon In my pervious articles on performance indicators, I wrote about how the right combination of sales metrics, gross margin and departmental operating costs translate into profitability. This month I’m going to focus on how two metrics, net profit percent of sales and inventory percent of sales, affect change in cash flow. First, let’s talk about net profit percent of sales. Here’s the formula for determining the percentage:

(Gross Margin Dollars - Business Expenses) / Sales

Net profit percent of sales, or net income, is the main factor in building wealth. It’s what you have left over after the costs of goods, freight and all other business expenses are deducted. If your home furnishings store is to survive in the long term, a consistent, healthy profit needs to stay in the business. Stores that achieve targeted sales goals at decent margins, with an appropriate rent cost, pay the ownership team fairly and are most profitable. That is pretty much the formula for double digit profits:

10 Percent + Net Income Before Tax

Do you know what one of the biggest downfalls of independent retailers is? Pulling out too much money from a store in the form of expenses by the ownership team for personal use when the store is cash tight. Sudden swings in inventory when an operation is running at a low net income percent (3 percent or under) can cause cash shortage and force an extension of debt. In my opinion a

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responsible retailer should try to operate their store at a net income of at least 5 percent. Now let’s talk about inventory percent of sales. First, here’s the formula for determining your percentage:

(Gross Margin Dollars - Business Expenses) / Sales

Profit is the biggest, but still only one side of cash flow determination. The other side is inventory. Purchases are often the biggest single consumer of your funds so it is critical to maintain inventory at the proper level for the operations sale size. It is a balancing act between too little and too much. Having too little inventory in your warehouse could hurt selection and best-seller back-up, jeopardizing growth in sales and cash flow. Of course, having too much inventory in your store causes another problem, that of an overabundance of unproductive producrts, old merchandise, and extra carrying costs, which could ultimately hurt sales and cash flow. Stores that have a good handle on what their inventory percent of sales range should be for their business and keep it consistently within that range, produce higher sales and cash. They have a stable and productive environment. Stores that let their inventory creep up on them due to ineffective controls and management end up being less profitable. They often need to cut margins and cannot buy those much-coveted best sellers

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Sales Gross Margin Operating Expenses Net Income

$ $ $ $

Starting #s Change for the Worse Change for the Better % of % of % of Sales Sales Sales 5,000,000 100% $ 5,000,000 100% $ 5,000,000 100% 2,250,000 45% $ 2,200,000 44% $ 2,350,000 47% 2,100,000 42% $ 2,150,000 43% $ 2,000,000 40% 150,000 3% $ 50,000 1% $ 350,000 7%

Inventory $ 1,000,000 20% Cash flow $ 200,000 Cash flow % Change

$ 1,150,000 23% $ (50,000) -125%

as deep as their operation needs.

Changing the Cash Flow Here is a realistic—and revealing—illustration of how changes in profit percent and inventory percent can affect the cash flow of a business holding debt and other asset items constant. Let’s suppose a store starts with $5 million in annual sales. It produces a 45-percent gross margin with 42-percent costs before tax. That translates to a net income percent of 3 percent. At the start, the store carries $1 million in inventory to support that sales volume. That is a 20 percent inventory-to-sales ratio. The store begins with $200,000 in its operating bank account. Now, let’s suppose the store has a change for the worse. Next year its sales stay level at $5 million, but gross margin falls slightly to 44 percent and operating expenses increase slightly to 43 percent. Now that store only produces a feeble 1 percent in profit. That’s barely above the break-even point. As well, inventory grew by $150,000 or 23 percent of sales. With this scenario the starting cash would fall to a minus (overdrawn) of $50,000. The retailer is staring at a 125 percent reduction in cash flow. Let’s turn it around. Let’s suppose instead the store had a change for the better from its starting numbers. Let’s suppose sales again stayed the same. But this time the store’s gross margin increases by 2 percent to 47 percent and operating expenses fall by 2 percent to 40 percent from the starting numbers. The store’s net income is now 7 percent of sales. That’s very realistic for most well-run operations.

$ 750,000 $ 650,000 225%

15%

But wait, there’s more: Inventory fell to 15 percent of sales while the business maintained the same volume top-line. This is possible with a fast moving floor, an aggressive routine markdown system and appropriate reordering of best sellers. With this scenario the starting cash would grow by $450,000. That is a 225 percent increase in cash flow.

Five-step process Now it’s time to establish an action plan. I encourage all retailers to follow these five steps on a consistent basis: 1. Measure the metrics we have discussed here on a monthly basis. 2. Set realistic improvement goals on areas of opportunity. 3. Document details of improvement actions and execute day in and day out. 4. Check results in your weekly operations meeting. (You’re having weekly operations meetings right?) 5. Fine tune your actions as needed but don’t change your goals. Know the difference. Bottom line—retailers that commit to continuously improving themselves and their operations are usually the ones that end up ahead. David McMahon is an industry business consultant and certified management accountant. He is director of consulting and performance groups for PROFITsystems, a HighJump Product. He can be reached for questions or comments at david.mcmahon@accellos.com.

HOW DOES YOUR STORE COMPARE? Would you like to find areas of opportunity in your business and see how you compare to the top and average performers in the home furnishings industry? This year the North American Home Furnishings Association is surveying retailers like you from across the country. PROFITsystems consultants David McMahon and Wayne McMahon will compile the results and release a metrics performance report so you can see where you are in the many key performance indicators that matter. Visit nahfa.org to learn more about how you and your store can participate in this survey for free.

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NAHFAAT WORK

NAHFA MEMBERS WANT HIGH POINT TO ENFORCE DATES Retailers, Authority Officials Talk About Ways to Improve Furniture Market EARLY BIRDS Buyers roam an IHFC showroom at the April High Point Market. NAHFA members met with market officials to express their concerns about exhibitors allowing buyers in before the scheduled opening.

SHEELY “It’s frustrating to get here knowing my competitors already have an edge on me.”

herry Sheely had a decision to make: Stay home where Sheely’s Furniture and Appliance, in North Lima, Ohio, was hosting a huge sale, or head down to High Point, N.C., to get a jump on the spring furniture market. Sheely stayed for the sale, an event that generated well over seven figures in revenue, and she’s glad she did. But the decision may cost her and the store in the long run. By the time Sheely and her buyers arrived in High Point on Friday, the day before market’s official opening, her competitors had already met with exhibitors and signed deals that left Sheely’s locked out of distribution with several product lines. “It’s frustrating to get here knowing my competitors already have an edge on me because they got here early,” says Sheely, "But I knew this was going to be the case because this is a problem every year.” It’s a problem the North American Home Furnishings Association and High Point Market Authority are trying to solve. This is NAHFA’s second such market luncheon where retailers met with High Point city and market leaders to discuss their concerns. Sharron Bradley, the CEO of NAHFA, said the meeting is part of the NAHFA’s mission of supporting retailers in every aspect of their business. “It’s a great way for our members to get their concerns heard in front of the people who make the decisions,” Bradley says. “NAHFA is always looking for ways to help its members and I think the High Point Market Authority is going to do whatever it

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can to support them as well.” Market early birds are nothing new. Bigger retailers have been doing it for years, hoping to gain exclusivity rights and avoid the crowds. Other NAHFA members said they, too, showed up at market only to learn that competitors had reached deals with manufacturers before the market officially opened. Market officials sympathized with the retailers and said they would discuss the problem at the next executive committee this summer. Scott Eckman, executive vice president of marketing and leasing for International Market Center (IMC), which owns 14 buildings in High Point told NAHFA retailers it’s difficult to tell a manufacturer leasing space in an IMC property when they can open their doors. “I’m not sure how we fix it, but I promise you exhibitors are frustrated, too,” says Doug Bassett, the market authority’s chairman of the board and president of bedroom manufacturer VaughanBassett. “We need to find a solution that makes both sides happy.” One concern NAHFA retailers expressed during the fall market meeting was the spotty Wi-Fi connection throughout many of the buildings. Last month retailers said there were fewer Wi-Fi problems. Market president and CEO Tom Conley said the authority spent the last several months working with the local Internet service provider beefing up signals deep into some of the older buildings. ”We’re not where we want to be, but we’re getting there,” he told NAHFA members.

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NEXT GEN PROFILE

NEXTGENPROFILE Six Answers with Nick Gates

Nick Gates General Manager Gates Home Furnishings Grants Pass, Ore.

It was always a given I could work here, but there was never any pressure. I grew up running around the warehouse playing hide and seek or sneaking in the office and messing up the ladies’ calculators. I try not to do that as much these days. 

When I went to the University of Oregon I was sure I wanted to be a photojournalist. I wanted to tell stories with photography, but the reality of that career quickly set in. I would have been away from home 300 days a year and that just didn’t appeal to me. I’d been working at the store during summers and realized a lot of things I wanted to do in journalism—travel, meet people, and help them—I could do as an entrepreneur. 

The job changes every day. That can be seen as a blessing or a curse. I’ve come to love it. You always have this set list of what you want to do every day. Then people call in sick or the sales manager needs help or the store floods and you’re grabbing a mop. 

Technology—or the lack of it—still amazes me. How come I still have to send a fax for an order instead of an email? If I buy something on Amazon I can track it from the warehouse to my front door. If I order a container of furniture I have no idea where it is or even if it’s left the port yet. I won’t know until I get a call from the delivery company saying the truck will be by tomorrow. That’s just crazy. 

When I joined it was like I instantly had all these friends who I could turn to when I had a question or problem. I don’t know what the future of our industry is going to be, but what I do know, having seen it with my father, is that whatever comes it will be built on relationships. I see the relationships my dad has built over the past 30, 40, 50 years and how everyone shares ideas and experiences with each other. That’s what Next Generation is doing for me and others. We’re creating the next generation of networks. 

It’s like a big sandbox to play in and build something nobody’s ever seen before. Take last year when we redesigned two parts of the store. The first was our sleep center. We made it more low pressure. You know, cool color tones that are relaxing. There’s no staff hovering over you. The customer is watched from a camera and after a few minutes someone drops by and sees if they need help. People really like that. The second was a result of when a water pipe burst in the ceiling. We ripped out the carpet and replaced the entire showroom floor with polished concrete. We had to move all our inventory out to the parking lot under a big tent. People were coming down to see what the excitement was. When we were done it brought a whole new level of class to the store. Six Answers is a monthly profile of a Next Generation Now member. Next Gen Now is an NAHFA-hosted community of young industry professionals whose mission is to give voice to the needs and goals of the industry’s next wave of leaders. Connect with members at nextgenerationnow.net or Twitter @ngnow. 56

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”It’s like a big sandbox to play in and build something nobody’s ever seen before.”

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Gold/Silver/Bronze Sponsors Ekornes • Horich Hector Lebow Advertising Mail America • Restonic Mattress Corp • Rooms To Go • Rooms to Go Kids Steve Silver Co. • Wahlquist Management • Why Not Lease It

To become an industry sponsor contact: North American Home Furnishings Association 800.422.3778 or email: cwilliams@nahfa.org

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OFNOTE

HAPPY ANNIVERSARY Noah Tepperman shows off one of the store's anniversary cakes. Tepperman's recently celebrated its 90th anniversary by offering nearly C$30,000 in scholarships and in-store promotional events.

Tepperman’s Celebrates Turning 90 NAHFA member Tepperman’s, one of the largest independent home furnishings retailers in Canada, is donating nearly C$30,000 in scholarships as well as helping a local children’s museum to mark its 90th Anniversary. In 1925, founder Nate Tepperman launched his company by selling household goods door-to-door in Windsor, Ontario neighborhoods. From those early days of ringing doorbells, to the present day with Tepperman’s now operating combined showroom space of more than 190,000 square feet in Windsor, London, Sarnia and Chatham with 341 employees, community giving has been a hallmark of this family business success story. “For nine decades, our family has instilled the basic family values of loyalty, reliability and trust into our daily business and through our customer service,” says Andrew

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Tepperman, president of the company and Nate’s grandson. Every month for nearly 20 years, Tepperman’s has randomly drawn awards for C$1,000 post-secondary scholarships, which have now reached C$600,000. These awards are invested in the Canadian Scholarship Trust Plan, the largest non-profit registered education saving plan in Canada. In March, nine scholarships were awarded, drawn from ballots collected in each of the four Tepperman’s home furnishings locations. The store also donated C$45,000 to the London Children’s Museum. Noah Tepperman, who is secretary/treasurer and director of public & community relations and Andrew’s brother, said helping the children’s museum was a natural fit for the company. “From an early age Andrew

and I were taught that it was our responsibility to give back to the communities that have supported us,” Noah says, “and to help ensure that children are given as many opportunities as possible. We’re so proud to continue that legacy.” Andrew adds “As part of our 90th anniversary of giving, our families and our entire team are honored to partner with the London Children’s Museum and support the creative activities they offer, enriching young lives with education and discovery.” Tepperman’s also celebrated its anniversary by offering in-store promotional events such as C$90 door crasher merchandise from categories including furniture, electronics, appliances and mattresses. At the end of the month, one randomly drawn customer from each of Tepperman’s won their entire purchase for C$90.

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NAHFA Members Meet with Officials in D.C. to Discuss Industry Legislation Members of the North American Home Furnishings Association and the American Home Furnishings Alliance met recently with members of Congress and key officials in Washington, D.C., to discuss legislation and regulations that will significantly affect the furniture industry. This was the first fly-in NAHFA members have participated in since the Association’s merger. NAHFA and AHFA members met with Mark Mix, of the National Right to Work Committee, Senator Ron Johnson (RWI), Representative Bill Johnson (R-OH), Commissioner Marietta Robinson of the Consumer Product Safety Commission, Rosario Palmieri of the National Association of Manufacturers, Jon Gold of the National Retail Federation and Senators Richard Burr (R-NC) and Tom Tillis (R-NC). NAHFA members also had separate meetings with congressional staffers to discuss our issue of online sales tax and with Amanda Wall of the Mattress Recycling Council to discuss the Council’s efforts to reach out to retailers. During the group meetings the topics discussed included the National Labor Relations Board’s ambush election rules that went into effect in April; flammability standards; healthcare and tax reform; current and future port issues; and member involvement One point was made clear by many speakers—getting involved in industry associations and letting legislators know how the rules and laws made by the federal government affects their business is crucial. Sen. Ron Johnson specifically urged attendees to be involved in their respective trade associations.

NAHFA members Tom and Cheryl Olinde of Olinde’s Furniture in Baton Rouge, La., and Eric Blackledge (right) from Blackledge Furniture in Corvallis, Ore. along with AHFA members met with key lawmakers and officials in Washington, D.C. in March.

NAHFA member Wogie Badcock (left), of W.S. Badcock, Mulberry, Fla., and AHFA CEO, Andy Counts (right) spoke with CPSC commissioner Marietta Robinson after she addressed the group.

Masins Furniture Reaches Deal to Sell Business to Seldens NAHFA member Masins Furniture Company has agreed to sell its business to fellow member Seldens Designer Home Furnishings. Tacoma-based Seldens will acquire Masins’ assets, inventory and assume the lease of Masins’ current store location on Main Street in Bellevue. The sale is expected to be finalized this summer. “While Masins’ wonderful 88 year legacy in the furniture and design industry is coming to an end, we are excited for the growth

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and new opportunities that will surely be accomplished under Seldens ownership,” says Bob Masin, CEO of Masins Furniture Company. “The relationships we have cultivated with our high-end vendors will be extended to the Seldens group to expand their current merchandise offerings. Seldens is committed to future investment in product selection and necessary technology to continue and further their leadership in the marketplace.” After the sale is finalized, David Masin, president of Masins Furniture Company, will stay on to manage the 25,000 squarefoot Bellevue location. “We have had a long relationship with the Seldens family,” says David Masin. “It’s a relationship based on great respect for each other. With this sale, we will be more complete with our product offerings and we will be better equipped to satisfy our customers’ needs with Seldens’ infrastructure behind us,” Masin continued.

Wolf Grows Md. Footprint In the biggest home furnishings acquisition of the year, NAHFA Member Wolf Furniture will acquire the five-store Gardiners Furniture, a move that will make Wolf one of the largest furniture retailers in Maryland. Wolf signed an agreement to purchase Gardiner's assets ahead of the anticipated retirement of Gardiner co-owner Gary Mullaney and vice president Bob Iwanowski. Both retailers are among the largest in the country. Pennsylvaniabased Wolf is ranked No. 65 on Furniture Today's Top 100 Retailers list with an estimated 2013 sales of $95.5 million at 13 stores in Pennsylvania, Maryland and Virginia. Gardiners and its five stores comes in at No. 98 on the list with 2013 sales of $46.5 million. Got an item for Of Note? Email Robert Bell at robert@retailerNOWmag.org

Coto de Caza Golf & Racquet Club

he North American Home Furnishings Association offers opportunities throughout the year for members to connect, learn and grow their business. Take a look at some of our upcoming events.

City of Hope’s 24th Annual West Coast Golf & Tennis Tournament Coto de Caza Golf & Racquet Club Coto de Caza, Calif. June 8 Here’s your chance to help raise money and awareness for the City of Hope cancer center while gathering informally to socialize with industry colleagues.

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New England Region 7th Annual Golf Tournament

11th Annual Pilgrim Furniture City Golf Tournament

Stow Acres Country Club Stow, Mass. June 24 Join fellow retailers for a day of golf—we’ll play Florida Scamble—followed by dinner and prizes. Here’s your opportunity to connect with fellow retailers way from the office.

Lake of Isles North Stonington, Conn. September 12 Join us for an afternoon of golf, food and prizes (but mostly golf ) and get to know industry reps and fellow retailers on a golf course rather than in an office.

Inland Empire Furniture Dealers’ Golf Tournament Circling Raven Golf Club Worley, Idaho August 19 A Northwest institution that gets better each year, the Inland Empire Furniture Dealers’ Golf Tournament is a great excuse to get out of the office and meet other retailers on the golf course.

Retailers interested in attending any of these events can visit nahfa.org or call 800.422.3778 for more details or to register.

RetailerNOWmag.com

4/28/2015 9:32:43 AM

INDUSTRYCALENDAR Showtime

Summer Las Vegas Market

May 31-June 3 High Point, N.C. Showtime-market.com

August 2-6 Las Vegas, Nev. Lasvegasmarket.com

Canadian Furniture Show

Inland Empire Furniture Dealers Golf Tournament

June 4-7 Toronto, Ontario Canadianfurnitureshow.com

August 19 Worley, Idaho Nahfa.org

City of Hope's 24th annual West Coast Golf Classic

Tupelo Fall Furniture Market

June 8 Coto de Caza, Calif. Nahfa.org

August 20-23 Tupelo, Miss. Tupelofurnituremarket.com

Dallas Total Home & Gift Market

Midwest Furniture Show

June 24-30 Dallas, Texas Dallasmarketcenter.com

September 2-3 Arlington Heights, Ill. Midwestfurnitureshow.com

Atlanta International Gift & Home Furnishings Market

International Casual Furniture Market

July 7-14 Atlanta, Ga. Americasmart.com

September 16-19 Chicago, Ill. Casualmarket.com

AHFA Solution Partners Education Golf Tournament September 30 Hickory, N.C. Ahfa.us

AHFA Solution Partners Regulatory Summit October 1 Hickory, N.C. Ahfa.us

Fall High Point Market October 17-22 High Point, N.C. Highpointmarket.org Events highlilghted in red are NAHFA regional events.

200 400,000

MORE THAN OVER

Circling Raven Goilf Club, Coeur dâ&#x20AC;&#x2122;Alene Casino Resort, Worley, Idaho

OF THE GREATEST NAMES sq. ft. of furniture showrooms

A special presentation by

STEVEN AND CHRIS

This show means business. June 4-7, 2015 The International Centre

A presentation by award-winning designer and 2015 SHOW SPOKESPERSON

Toronto, Ontario

Canadianfurnitureshow.com

KAREN SEALY 15-1091 PRINT RetailerNow_7,375x4,75.indd 1

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ADINDEX Ashley Furniture (608) 323-3377 ashleyfurniture.com Page 15 Bolton Furniture 802-888-7974 boltonfurniture.biz boltonfurniture @boltonfurniture Page 37 Canadian Furniture Show (866) 468-4436 Canadianfurnitureshow.com CanadianFurnitureShow @CdnFurnShow Page 61 Connie Post (304) 736-7283 conniepost.com Connie Post Page 10

For information on how to advertise in RetailerNow, contact Michelle Nygaard at (916) 757-1160.

Furniche (210) 473-9508 Furniche.com Furniche.USA @Furniche_usa Page 41

Las Vegas Market (888) 962-7469 lasvegasmarket.com las vegas market @worldmarketctr Page 7

NAHFA Sponsors (800) 422-3778 retailerNOWmag.com retailernow @retailerNow Page 57

STORIS (888) 4-STORIS storis.com STORIS.solutions @STORIS Page 53

Furniture Wizard (619) 869-7200 furniturewizard.com furniturewizard @furniturewiz Page 5

Lynch Sales (616) 458-6662 lynchsales.com lynchsales @lynchsales Page 29

Northwest Furniture Xpress (828) 475-6377 nwfxpress.com Page 39

Surya (877) 275-7847 surya.com SuryaSocial @SuryaSocial Inside Cover

High Point Market (336) 869-1000 highpointmarket.org http://tinyurl.com/ HighPtMarket @hpmarketnews Page 3

MicroD (800) 964-3876 microdinc.com Micro D Inc @microdinc Back Cover

ProfitSystems (800) 888-5565 profitsystems.com PROFITsystems @PROFITsystems Page 9

Tidewater Finance Company (800) 535-4087 x6553 tidewaterfinance.com Tidewater Finance Company @TidewaterMotor Page 47

Casual Market Chicago casualmarket.com casualmarket @CasualMarket Page 49

Myriad (800) 676-4243 myriadsoftware.com Myriad Software @MyriadGroup Page 43

Serta (888) 557-3782 serta.com SertaMattress @SertaMattresses Page 19

TruckSkin (877) 866-7546 truckskin.com TruckSkin @TruckSkin Page 62

Giving you more bang for your advertising bucks....Since 2000

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877-866-7546

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4/28/2015 4:18:02 PM

NOWLIST

66% chance that a domestic flight has Internet access; that’s up 28% from 18 months ago.

Ultimate Eco-Seat The Kuskoa Bi bioplastic chair, from Alki, a Basque furniture maker, is made with a polymer they developed from plant-based renewable resources (beet, corn starch, sugarcane, etc.). It can be injected, extruded and thermoformed and it is fully recyclable and biodegradable.

All That Glitters Isn’t Gold Artist John Foster’s Sparkle Table incorporates geometric forms to reflect, project and refract light to create dazzling effects. It’s designed to function as a sculpture and appears different under various light conditions.

Sleep Deprived

Hear Them Roar

Getting more hours of sleep (8 is optimal) is linked to higher overall well-being; 42% of U.S. adults say they get fewer than 7 hours a night.

There are more than 9 million women-owned U.S. businesses; combined they generate almost $1.5 trillion in revenue annually. Best cities for women-owned businesses are: 1. Santa Fe, NM; 2. Boulder, CO; 3. Monroe, MI; 4. Racine, WI; 5. Ocean City, NJ; 6. Napa, CA; 7. Washington, D.C.; 8 Barnstable Town, MA; 9. San Francisco, CA; 10. Lancaster, PA.

(Apple) Pie in the Sky Apple is valued at $733 billion —that’s more than Switzerland’s gross national product ($685 billion); Spain’s stock market ($664 billion); Google and Microsoft ($365 & $349 billion respectively); 4 Apollo Space Programs ($680 billion); or 20 National Football Leagues ($653 billion).

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of finance professionals think credit cards with EMVbased chip-and-PIN security technology will effectively reduce point-of-sale fraud.

Sources: Routehappy, Fortune, Gallup, 2014 State of Women-Owned Businesses Report (American Express), NerdWallet. Forrester Research, Cargocollective.com/JohnFoster, Alki.fr

RetailerNOWmag.com

4/28/2015 9:39:48 AM

THE WAY WE WERE

residents and businesses from Pittsburg’s downtown. In this age of competition from the Internet and big box stores, we work every day to give our customers a shopping experience that is not much different than 100 years ago. My grandfather and dad taught me that honesty, integrity, and “doing what’s right for your customer” is the ticket for success.

y grandfather Camillo and my dad, Del, posing with the Maytag racer during a Columbus Day parade in the 1930s is a bittersweet memory. Dad and my grandfather are gone. Now it’s my turn to nudge Lanzafame Furniture forward while teaching my son how to change and prosper. We’ve survived the Great Depression, two world wars and the exodus of

Chris Lanzafame, third-generation owner of Lanzafame Furniture, Pittsburg, California

 Share your old photograph and memory by contacting Robert Bell at 916.757.1169 or rbell@RetailerNOWmag.com

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4/28/2015 4:16:51 PM

DISCOVER NOW

Looking for new buyers? Check us out. RetailerNOW is the only association print and digital media focused entirely on your target audience—retailers. Discover how reaching qualified decision makers—the CEOs, owners, buyers—versus just reaching, can grow your business. Advertise now. Call Michelle Nygaard at 916.757.1160.

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Vol. 4 Issue 4 Retailer of the Year MAY Issue

RESPONSIVE WEB DESIGNS GO BEYOND THE DESKTOP

FAST FACTS ABOUT RESPONSIVE WEBSITE DESIGN: • Compatible on smartphones, computers, and tablets • Guaranteed to ﬁt all screen sizes now and in the future • Allows for dynamic and customizable websites • Better communicates your unique brand and product strategies • Engages customers & enhances the shopping experience • Included in ALL MicroD OmniVue website packages

MAY 2015

VISIT US AT THE HOME FURNISHING NETWORKING CONFERENCE MAY 17 - 19 | ORLANDO, FLORIDA solutions@microdinc.com | www.microdinc.com COVER_RN_MAY.indd MicroD-5-2015.indd 1 1

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