Retail Observer

RETAILOBSERVER.COM OCTOBER 2015 52 Bill Bazemore Furniture Trends Bill Bazemore is the Vice President of Furniture for Nationwide Marketing Group. Call (770) 442-9726 or visit furniture@nationwidegroup.org. THE REAL GAME CHANGERS: DIVERSIFICATION AND DIFFERENTIATION I n the furniture industry, retailers are all looking for that "something extra" or "secret sauce" that will help to propel their businesses to the next level. Not an easy task, right? Or is it simply a matter of thinking outside the box? We often find ourselves in a rut, as we are consumed with the daily operations of our business that finding time to implement change can seem difficult. So let's take a look at some simple game changers that may help to spark an idea or two. DIVERSIFICATION There are a multitude of opportunities to diversify your product mix without changing who you are, and can be done without changing your footprint. Keeping your customers engaged longer by enhancing your current product mix and increasing your dollars per square foot, leads to greater profitability. For example, Jim and Sue are in the market for new appliances and will probably make additional purchases that will enhance their kitchen even more. The question is–where will they buy and why? Take a look around your kitchen, or more importantly, your friends and neighbors' kitchens. How many have barstools? You are probably utilizing barstools in your kitchen vignettes, but are you putting them to work? Imagine taking 75 square feet and offering 15 barstool styles with the capability of special ordering dozens more. What about kitchen carts, wine racks, casual dining, islands, bars and storage solutions? The possibilities are endless. Your customers are buying these products, but are they buying them from you or are you sending them down the street to fulfill their wish list? How about electronics stores and electronic departments? What comes to mind immediately? Consider recliners, massage and zero gravity chairs, home entertainment seating and walls, TV consoles, stands and storage solutions. These are the products you need to meet your customers wants and needs without adding a single square foot to your existing operation. DIFFERENTIATION Rule #1, you will never win the game if you are a "Me, too". What I mean by that is don't try to emulate the "Big Boys" or your competitor down the street by carrying the same products and going head to head on price. Find ways to differentiate yourself from the competition. What is your "Purple Cow", that story, that extra something that becomes a part of your DNA and a theme throughout your store that speaks to your customers? A great way to differentiate yourself is through the use of exclusive products that set you apart from the competition. A great opportunity that has absolutely exploded is the exclusive Bellagio at Home Mattress collection by Serta. The extensive collection features both conventional innerspring and hybrid (the fastest growing category) mattress sets with a full array of marketing, advertising and training to take your bedding department to a whole new level. Whether you are seasoned furniture and/or bedding operation or appliance/electronics operation bedding is the most profitable category in your store. By attending buy fairs, you have access to the leading top bedding manufacturers in the bedding industry today, Serta, Simmons and Tempur-Sealy and they are here to help you reach your full potential in the world of bedding. These are just a few of the many ways that being part of a buying group can help you to differentiate your self and become the leader in your marketplace. Speaking of thinking outside the box, let's take a look at one of the fastest growing categories today that offers high margin opportunities; can be displayed outside as well to attract attention and is FUN! Welcome to the world of Outdoor Living. When you think about outdoor living remember three things–Eat, Heat & Seat. Also known as grills, fire pits and outdoor furniture. And when you think outdoor furniture, don't just think table and chairs as it goes way beyond… think bistro sets, cushioned seating, pit groups, Adirondack, hammocks, park benches and more. Just add accessories, and you're left with endless opportunities. Consider the months and years ahead for your business, think "Diversification and Differentiation", because these could be the keys to your continued growth and profitability. RO

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