High-tech comes to homelife: Sears is counting on its advanced technology to give its furniture power format an edge in inventory control - HomeMarket Trends Supplement

Discount Store News, Nov 5, 1990 by Arthur Markowitz

High-Tech Comes to Homelife

Homelife, Sears' furniture power format, is an unfolding merchandising vehicle that denotes the retailer's commitment to the home fashion business.

That serious commitment includes using the retailer's full array of technology to purchase goods, train employees and offer better customer service by providing reliable information of deliveries, either to a shopper's home or to a store for customer pickup.

Homelife merchandisers purchase goods based on the sales information captured by the stores' point-of-sale (POS) system. The sku data includes the product and price plus such specific information as the color and type of fabrics of upholstered goods.

Sears' electronic data interchange network gives Homelife an edge over most competitors. After an order is executed, it is electronically transmitted to the vendor and the merchandise, which at this point is in the supplier's inventory, is reserved for that customer. At the same time, the computer generates a delivery date for the order which the customer can either accept or else they can receive an alternate date.

Technology allows Sears to maintain tight control on Homelife's inventory investment, cut down on handling to reduce merchandise damage, a major shrinkage consideration, and provide a higher level of customer service.

Sales training and new product information, meanwhile, is transmitted to the Homelifes on the Sears Video Network monthly, updating employees on the latest home fashions and the best ways to serve shoppers.

Sears is planting Homelifes - one of seven power formats the chain is deploying - in two different retailing environments: as freestanding Homelife Furniture Store by Sears units and as Homelife sections within larger Sears mall stores.

The retailer expects to operate in excess of 70 Homelifes - divided equally between freestanding and instore units - by the end of next year. It will end 1990 with 40 Homelifes, seven freestanding stores and the rest in-store units.

Sears' commitment to the Homelife concept reflects the merchandising and marketing flexibility the power format provides the retailer in the furniture area. It's evident in a number of different ways: * On the merchandising front, Homelife carries all the sku's found in a traditional furniture section in a Sears, augmented by an expanded assortment of both branded products and stepped up price points of case goods, RTA and accessories.

While products from such manufacturers as Sealy, Spring Air and Stratolounger have long been merchandised by Sears, Homelife now carries goods from such additional vendors as Schnadig (upholstered furniture), Simmons (bedding), Somma (water beds), Flexisteel (recliners), Klaussner (upholstered sleepers) and Broyhill (case goods).

The high-end price point for a complete setting can now top out at $10,000 for a solid hardwood dining room set. Living room, bedroom and dining room sets in the $1,000 to $3,500 range are standard offerings in Homelife's full-color eight-page flyers. * In terms of space, Homelifes are at least double the size of Sears' usual furniture section - 20,000 square feet as the starting footage for a power format unit vs. 8,000 square feet for a traditional department.

The additional footage is used to display the broader mix as well as show merchandise in either room setting or in category displays.

Room displays that coordinate bedroom, living room and dining room case goods and accessories are used for country or traditional fashion settings as consumers buy merchandise for these rooms based on these looks. But entertainment centers, recliners, chairs and sofas are displayed in galleries as shoppers tend to purchase this merchandise as individual items and want to select from an assortment that presents the different styles, fabrics, features and price points. * From a marketing point of view, Sears positions a Homelife to a specific community's demographic, marketing and real estate environment. Its strategic considerations in phasing out traditional furniture departments and opening a Homelife, either freestanding or in-store, includes the higher sales potential of the power format's more attractive assortment and higher price points.

Furniture shopping is destination buying, so Homelifes don't need to be in a Sears to maximize sales. The two variations provide the retailer with greater flexibility in selecting locations.

Sears can open a freestanding unit if the site is right, even if there isn't any full-line store nearby, or if there is a Sears mall store within the market, the stand-alone Homelife frees up space in the Sears for other power formats. Its last option is to spot the furniture power format within a store if there isn't any site available for a freestanding unit.

PHOTO : The black ceiling and focused lighting play up merchandise; freestanding `room' walls allow for flexible use of space.

PHOTO : Homelife uses mannequins to create a lighter, playful atmosphere.

PHOTO : Room settings offer opportunities to coordinate case goods and accessories.