Retail Observer

AUGUST 2020 RETAILOBSERVER.COM 51 In contrast, 14% of BrandSource furniture dealers said business was up as much as 20% over the prior two months, and 11% reported increases of more than 20% . As one respondent commented, "Business has been fantastic since February." Contributing to the general downturn were government- mandated showroom closures, as furniture stores were largely classified as "non-essential" during the initial wave of the coronavirus outbreak. Nearly a quarter of respondents (22.5%) said their showrooms were closed more than a month, 15.5% were closed less than 30 days, and nearly 10% were still closed when the surveys went out. Conversely, more than half (52%) of BrandSource furniture dealers said their stores never closed, due ostensibly to the inclusion of appliances in their merchandise mix which qualified them as essential businesses in most but not all states. Nearly 65% of the furniture respondents carry appliances, and 41% also sell consumer electronics. Compounding the problem were weak online sales. Whether due to consumer shopping habits or want of a compelling web presence, the majority of respondents (30%) reported absolutely no e-commerce sales during the trailing 30 days. Almost as many (27%) said less than 5% of their total sales over the preceding month were transacted online. But perhaps the biggest obstacle to business has been product availability. Nearly a quarter (22.5%) of dealers polled said half or more of the pieces they sought from manufacturers were unavailable, and more than a third (35%) said between 20% and 50% of needed inventory was simply not to be had. To help counter the multitude of challenges furniture dealers faced, a whopping 82% offer in-home delivery, using social distancing and other virus mitigation protocols, and fully 97% advocated extended financing promotions. Other recommended sales strategies included store messaging (88%), holiday events (77%), and reduced pricing (66%). Regardless of sales promotions, most respondents (45%) said their average ticket has remained largely unchanged, while 24% reported a higher average ticket and 20% said it was lower. For those with open showrooms, limiting store hours or allowing access by appointment only (BAO) appeared to be effective tactics. As one respondent commented, "We have been extremely busy since we opened in May by appointment only." Other dealer strategies included: • Playing to their strengths by touting their inventory positions • Emphasizing same- or next-day delivery • Reminding customers of their status as local and/or family- owned businesses Last but certainly not least, respondents cited the safety measures they are taking to limit exposure to coronavirus. Topping the list was spray disinfectant, cited by 81% of dealers, followed by masks (79%); gloves (65%) and acrylic barriers (32%). BrandSource members also said they "sanitize regularly," employ antibacterial wipes and hand sanitizer, and use protective covers on their floor models. As one BrandSource dealer concluded, "We're just trying to stay alive in these troubling times." RO Alan Wolf is Senior Communications Specialist for AVB/ BrandSource, the nation's leading merchandising and marketing co-op for independent appliance, consumer tech and home furnishings dealers.

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