by Being market-ready is an important part of the event, but so is gauging trends and the needs of retailers moving forward
HIGH POINT — No one attending this past week’s premarket would say that traffic was strong or robust.
In fact, most case goods and upholstery resources we spoke to described it as light compared to more typical premarkets.
Still, they were pleased to meet with those customers who were in town as it gave them a chance to show their fall introductions and discuss ways to help improve the business of those retailers still struggling with foot traffic and lingering inventory issues.
While challenges remain, sources said there was a sense of hope, particularly in light of the recent interest rate cut that is expected to help move the housing market in the weeks and months ahead.
“Our business has been as good, or a little better, than the first half of the year,” said Doug Bassett, president of case goods manufacturer Vaughan-Bassett Furniture. “And with a 50-basis point rate cut, dealers have more optimism than they have had in a long time.”
He noted that the bedroom category is particularly dependent on housing sales, so the recent drop in mortgage rates is encouraging for an industry that has been waiting months for such a change.
“With rates coming down, it’s not only good for the furniture industry, but particularly the bedroom category,” he added.
Jeremy Hoff, chief executive officer of Hooker Furnishings, agreed that the reduction in rates has created a sense of optimism in the industry.
“It seems that we are all hopeful with the rates coming down and with things going in the right direction from that standpoint,” he said. “If we can get the housing market going again, you know, our industry needs that desperately.”
But a key for many premarket exhibitors, including market sponsors that help cover the costs of dealers attending the event, is the commitment to being as close to market-ready as possible. That was a challenge for some as shipping delays caused some products to be stuck at the port or delayed in transit. But most sponsors we visited were over 80% or 90% market-ready with more on the way for the Oct. 26-30 main event.
“We had a few things that got hung up in the port, but for the most part we were completely market-ready,” said Sean O’Connor, president of case goods and upholstery resource Universal Furniture. “So that set the tone and we were able to get commitments.”
He said the company is typically mostly market-ready on the case goods side of its business at premarket, but this time it also made a significant effort to have most of its upholstery here too.
“People were in a buying mood and liked what we introduced, so we are looking forward to peppering in a few additional accents and some other surprises that we held back for market,” he added.
Jonathan Cowles, executive vice president at full-line furniture resource Liberty Furniture, said that the company showcased some 100 individual groups of bedroom, dining room and living room furniture including six whole-home collections. More is on the way for the October market, including a new recliner program.
“We pride ourselves on being market-ready,” he said, noting that this is the company’s third market as a sponsor. “For the dealers that are shopping, they are getting to see product that is presented and priced (for market). We review our lineup every market cycle to make sure we are offering the most competitive prices and values for our customers. We are consistent with that.”
Other sponsors including FD Home and Austin Group also were market-ready, offering a mix of bedrooms addressing various needs in the market from a style and pricing standpoint. For those and others, the event continues to not only help lock in commitments and distribution, but also get feedback on where the trends are headed.
“I think it’s important at premarket to get plenty of buy-in and get some feedback on what types of product you should really be pushing,” said Steve York, president of FD Home, noting that retailers dealing with soft foot traffic need to floor product that not only drives traffic, but gives them a return on their investment. “Generating dollars per square foot is important for retailers, but they shouldn’t just have to do it at the starting price points. They should be looking at better product that can give them higher ticket sales. It doesn’t have to be high end; it just has to be adding value.”
Scott Ostrander, president and managing partner at bedroom resource Austin Group, said that there are still challenges in the marketplace, including lingering inventory issues. Still, he believes the time is well spent with those who are in town to see new product, while also getting feedback on where the styles are headed.
“They are waiting for slots to open and to sell off inventory,” he said of some retail customers. “During premarket, we rarely sell anything, but it gives us an idea of where to go for the next market. We’ve always got to be ahead.”
Still, having new product is a key element of getting retailers to visit showrooms, most notably the premarket sponsors that have made a commitment to being as close to market-ready as possible.
“At the end of the day, it usually comes down to product,” said Hoff, of Hooker Furnishings. “If you have the right product, I have seen some commitment to go ahead and make commitments. If you don’t have the right product, I don’t believe that’s the case.”
At premarket, upholstery manufacturer Craftmaster Furniture showcased about 10 new upholstery groups and 120 new fabrics, the most individual fabrics it has brought out in several years. Company President Alex Reeves said that another 12 individual pieces are coming for market, thus giving dealers a chance to see even more than they got to see at premarket.
He believes the event remains important in helping the company get in front of customers with its new offerings, while also working with individual dealers on various programs that aim to help them with their business.
He noted that while the company can’t control some logistics issues that delay product getting to events like premarket, “What we can control is our quality and speed of delivery. That is our focus now, to keep getting better and more efficient.”
For others including those also waiting on most of their samples to arrive for the October market, being open at premarket is a good way to spend time with retailers discussing what’s on the way and also work on upcoming projects.
“We’re all trying to find solutions and find ways to help them grow their business,” said Luke Silver, president of case goods resource Steve Silver Co. “Most of our conversations are about what’s working for them and are also more project based.”
