RTA furniture builds on shoppers' 'can-do' attitude - ready-to-assemble

Discount Store News, June 20, 1994 by Michele C. Hollow

Whether installing new windows, painting a room or adding a deck, consumers today approach do-it-yourself projects with an "I can" attitude. That same determination carries over to ready-to-assemble (RTA) furniture.

"The consumer has become much more do-it-yourself oriented," said Mark Badger, vice president of sales and marketing at Charleswood Corp. "The RTA furniture category has become more sophisticated and stylish." Even assembly directions, which are accompanied by easy-to-follow drawings, are consumer-friendly.

"Manufacturers have improved the quality, style and ease of assembly," said Bill Bennett, divisional vice president at Venture, the Midwest regional discounter. Combining those factors with affordable prices, RTA furniture is getting more attention from retailers and consumers.

In fact, RTA furniture sales have soared 15% from 1992 to 1993. RTA manufacturers estimate that wholesale figures for 1993 reached $1.8 billion and they expect even higher numbers in 1994.

"RTA isn't scoffed at anymore," said Roshan Wijerama, furniture buyer at Jamesway, Secaucus, N.J. "It isn't perceived as a cheap commodity item. That's because manufacturers have upgraded the category. At Jamesway, we approach RTA from a promotional end. Other mass merchants are stepping up the category. Our approach is different.

"Price is important," he continued. "But so it styling. One of our most popular pieces is our five-piece dinette set that retails for $99." This brass and glass table top ensemble, which comes in a box, carries a $300 set up value, according to Wijerama. The dinette is manufactured by Eastwood Imports.

Focusing on entry level price points, Jamesway has devoted 2,500 sq. ft. of retail floor space to RTA, up from 1,500 sq. ft. RTA furniture, found at the front section of Jamesway's remodeled stores, features tables, chairs, kitchen cabinets, storage cabinets, office furniture and home entertainment centers. The dinettes are dressed up in room style settings with lamps, rugs and other home furnishings.

The three biggest categories at Jamesway -- and other discounters--are home entertainment, home office and kitchen/utility storage cabinets. As evidenced from the most recent High Point Furniture Market, these product categories continue to prove popular.

"Demographics show that more Americans are working out of their homes," said Scott Kearny, director of marketing at Ameriwood. "And that number continues to grow. In addition, more people are buying larger T.V. sets and VCRs, CD players and compact discs. We are staying on top of those trends by designing merchandise that accommodates the home entertainment and home office markets."

New styles range from the plain to the elaborate and from traditional to contemporary. Manufacturers at the High Point Furniture Market introduced new colors such as bright primaries for children's furniture. Other brights, such as Rubber-maid's Activity Desk for children comes in periwinkle with white and teal with periwinkle.

"Children's RTA furniture is growing steadily," said Paul Powers, a home furnishings buyer at Hills, the Midwestern discounter that recently emerged from Chapter 11. Powers believes that as the current baby boom continues, the focal point on children's RTA furniture will broaden.

In the home entertainment market, black, granite and other hues that blend in with consumer electronics were introduced. O'Sullivan introduced a collection of office furniture called "Incredible Components," which mixes black with gray and maple with black.

In the kitchen area, hunter green--carried over from past markets -- returned as a strong player.

"New looks in finishes, including pines, birches and lighter oaks were featured," said Powers.

At this market, even the opening price point pieces made of particle board were upgraded. "We sell much of our low end RTA to customers who are looking for a very specific utility at the lowest price possible," Powers noted. "We also sell higher ticket RTA to people who can see a substantial value in RTA when compared to case goods alternatives."

"The value inherent in better RTA is self evident when it is displayed on the floor," he continued. "The quality has improved dramatically both in terms of structure and finish."

Value is the key word that retailers use to describe RTA furniture. Whether the item is made with solid oak or particle board the price fairly reflects the object--especially when it is compared to case goods.

However, particle board prices are on the rise. However, manufacturers and retailers don't seem to worried. Several manufacturers raised their prices last year and are hoping that they won't have to increase them again this year. "This is purely a case of supply and demand," said Kevin Sauder, director of marketing at Sauder Woodworking Co. "The demand is growing and the supply is fixed."

"Because the RTA industry is growing so rapidly," said Tom Julia, spokesperson for the National Particle Board Assocition, "we are looking at a record demand of supply."