Best Products returns to its roots: expands catalog and product mix, tests prototype - Best Products Company Inc

Discount Store News, Sept 17, 1990 by Arthur Markowitz

Best Products Returns to Its Roots

RICHMOND, Va. - Best Products has returned to its catalog showroom heritage, a move that included: * Increasing the size of the main catalog now being distributed by 72 pages to 404 pages, a 21.7% enlargement from last year's 332-page book; * Merchandising 7,000 sku's in the catalog, up 1,000 sku's or a 16.7% increase; * Distributing 7 million copies, up 34.6% from 1989's 5.2 million run; * Planning a spring seasonal book in '91. (There wasn't any this year); * Focusing on three broad categories as its core business - jewelry/giftware, housewares/home furnishings and home products (consumer electronics, photo and luggage); * Unveiling a new prototype in four Houston stores that merchandise just the three core categories and eschewing sporting goods and toys/juvenile products that are found in all the other 191 showrooms.

The Houston stores, which included the reopening of a unit closed three years ago, spot jewelry in a central island within a racetrack in the front of the store, housewares/home furnishings on the left, home products on the right and luggage in the rear. A special 378-page book that doesn't include sporting goods and toys was distributed in the Houston market. * Issuing a Best credit card later this year for use in the showrooms, with about 500,000 people expected to sign up for the card. The showroom charge card will be separate from that accepted for the past two years in the 35 Best Jewelers jewelry and giftware specialty stores.

These moves reflect Best president Stewart M. Kasen's vow made to vendors at an unusual conference four months ago in which he and other executives provided insights on the retailer's plans for the year. He said: "We are a catalog showroom. Our roots are as a catalog showroom, our success has been as a catalog showroom. Our future is a catalog showroom. We know the format."

Best's meeting with vendors to allay their concerns about the company and its financial status took place 16 months after the cataloger became a private firm in a $1.1 billion leveraged buyout executed by Adler & Shaykin, a New York investment firm.

On the financial front, Best expected to complete by next month the renegotiations of its $170 million bridge loan - the major short-term LBO debt. The loan matured June 30 and has been extended on a month-to-month basis.

Best chief financial officer Kevin McNamara projected the cataloger's sales this year at $2.13 billion, up about 2% from $2.09 billion last year, while the net loss is expected to drop to $19 million from $53.8 million.

PHOTO : Best Products, Richmond, Va.: Home furnishings is one of its core businesses.