Retail Observer

RETAILOBSERVER.COM DECEMBER 2019 52 Johnny Lamp Furniture Trends B etween the looming threat of tariffs and whispers of a possible economic slowdown, retailers have lots to worry about and plenty of pressure on their bottom line. Amid these concerns, it's easy to lose focus on the hidden opportunities that can help us improve our sales. As retailers, we tend to worry about the decreasing profit margins of our large-ticket items, and we develop worry lines thinking of how to counter the downward trend. We turn to the usual suspects – special financing, protection plans and package pricing. And while these are great choices, we often overlook an opportunity that is right before our eyes: accessories. Accessories can offer an effective way to increase your margins and boost your bottom line. And they're an easy add-on to any purchase. The customer who's buying a living room, bedroom or dining group is going to want to make it their own. They're going to want to showcase the special touches that reflect their unique style. So why not help them buy the accessories that will personalize the furniture group while they're in the store? Remember the saying, "The easiest customer to sell is the one you've already sold." When you offer a room package with rug, lamps and tabletop included, you're not only increasing the dollar value of the ticket, you're improving the overall customer experience. Many consumers simply do not have the ability to think outside the box when it comes to putting their personal stamp on their home's appearance. That's where an extensive accessories package can come in, giving you an opportunity to project expertise and build a deeper trust with the customer. Integrating accessories into the showroom should be seamless. Rug racks and pillow displays are great, but don't limit the selection. Create a designated accessory area that includes artwork, floral arrangements, pictures and seasonal gifts. Not only are you helping the customer, but by offering these options you'll bring a breath of fresh air to your store. In turn, it has the potential to increase foot traffic and turn one-off customers into regular visitors. Many national chain retail stores are very successful simply because they've taken this strategy to heart. The biggest benefit of accessories is their ability to help drive a higher profit margin. With lots of higher-priced items located throughout your store, and plenty of ambiguity around accessory pricing, you can mark accessories up four or five times over cost, then run specials with deeper discounts. It's common to see accessory promotions of 25-50% that are actually everyday specials. And delivery isn't a concern when it comes to these items because the consumer is likely to take their purchase with them. Aside from saving on shipping costs, this eliminates issues such as damage during delivery. One main reason retailers tend to shy away from accessories is SKU management. Some stores are lucky to have designers employed at the store, but many will have the task fall on the sales people or managers. This should not be a drawback. Retailers are constantly changing large-ticket items on the floor and keeping their showrooms tidy. Adding accessories to the routine should be fairly simple. Taking a little more time to accessorize your store and increasing the focus on this category will reap tremendous benefits in the long run. Johnny Lamp — Director of Furniture Nationwide Marketing Group RO ACCESSORIES: THE KEY TO UNLOCKING HIGHER PROFIT MARGINS

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