RTA quality, displays on the rise - ready-to-assemble furniture - Home Market Trends

Discount Store News, Dec 9, 1996 by Barbara White-Sax

With a focus on delivering more value to shoppers, discounters continue to raise the quality of ready-to-assemble furniture assortments - and just as importantly, they are improving in-store displays.

"We still merchandise folding tables and chairs on gondolas, but we have moved our other furniture onto the floor and we're grouping it by classification," said ShopKo divisional merchandise manager Bob Segal. "Now when customers shop the home office section, they can pull out drawers and sit on chairs."

Ames also displays furniture on risers above stock. "We have a platform treatment in all of our stores," said vice president, gmm for home Jim Aglio. In addition, Ames often complements its core displays with feature item outposts directly upon the floor.

Phil Miller, general manager of Armstrong Furniture (which will become Creative Interiors, a Furniture Brands International company, in January) said the new displays give retailers a logistical advantage. "Risers give the appearance of stocked, full shelves with less inventory on the floor," he said, adding that three-day shipping cycles have brought inventory levels closer to the targets.

Jim Bufalini, buyer of lifestyle furniture at Venture, said that in addition to using platforms, the chain will use improved signage to help spark sales. "We will use point-of-sale purchase displays as provided by the manufacturers to show features that may not be easily seen on the samples."

Kmart has begun installing risers in its furniture departments, as part of a strategic initiative to do a better job of telling brand and product group stories. The 8t-ft.-long platforms rise 36 ins. from the floor.

Senior vp, gmm Andy Giancamilli said that Kmart will focus its mix among a handful of key brands, including Bush, Sauder and O'Sullivan.

"They are trying to show furniture grouped together," said one manufacturer. "They are bringing in an expanded selection and realize that if they want to sell higher-priced furniture, they have to change the way they display it."

ShopKo has seen the kind of positive consumer response that Kmart is seeking. "Part of our motivation in bringing the furniture to the floor," said Segal, "was a desire to trade customers up to higher-priced products." He cited a home theater wall system that retails for $299 as a new addition to the department. "We are very successful in the $179 to $199 price area, and we are looking to go further."

"Furniture is a sensory purchase," explained Jim Davidzik, vice president of marketing at Mills Pride Ltd., the manufacturer of the Room Additions brand. "As the price is creeping up, people want to touch what they are buying, and gondolas are hard to shop."

"The styling has continued to evolve," said Scott Kearney, vice president of sales and marketing at Ameriwood. "We are now positioning RTA against case goods."

New offerings at the International Home Furnishings Market in October were proof of how widespread this trend is: solid woods, veneers and metals in styles as varied as contemporary, Shaker, Mission and Country French are now showing up in flat-packed goods.

"Consumers are accepting flat-packed unassembled furniture as permanent furniture," said Dave Messinger, senior vp, sales and marketing at Bush Industries. "They are looking at the category as product that is functional and has a wide range of prices and quality levels."

Bush continues to expand its offerings in the important home theater category with pieces that can accommodate larger-screen televisions. The line's Newport and Westport groups feature solid wood faces with veneer accents and will retail between $599 and $1,199.

Armstrong is translating trends from its high-end Lane and Thomasville divisions into its RTA line, with a focus on the kitchen as well as the bedroom.

"Home office is still growing, but we are also seeing action in previously small areas, such as bedroom," said Tom O'Sullivan, vice president of marketing for O'Sullivan. "There's a big market for `functional bedroom' pieces."

Prices still have room to rise. Messinger said that while $199 remains the key price point in the discount channel, Bush has stepped up to a $299 price point in some chains. At Kmart, Sauder Woodworking's computer work center is retailing for $229, while at Caldor, Ameriwood's Mission arm futon is selling for $249.

Office superstores, like Office Depot, have taken price levels even higher with product retailing for over $1,000. "We sell entertainment/home theater pieces in electronic superstores for $599 to $1,199," said Messinger.

Ames dmm for home and patio decor Brent Hilton said that office superstores have the advantage of showing greater selection.

"The entertainment superstores, though, are not generally as focused in their furniture," he added.

Aglio and Hilton believe that the Ames core customers are pleased with the current level of prices. "When we did inch up in the past, we were giving more value for the money," Hilton said. The Ames team is now intent on seeding the furniture mix with variety. The chain has done well with an increased emphasis on gift-type items; bean bag chairs in the $15 to $20 range and recliners from $60 to $80 are examples.