Reading China & More! grows beyond store count - includes related article on executives - Company Profile

Discount Store News, Jan 15, 1996 by Dawn Wilensky

What's in a name? A lot, especially when that name reflects not only a new focus, but a means of differentiation in a retail environment wrought with competition, consolidation and a fickle consumer base that demands the best in value, selection and service.

These factors all came under consideration when Reading Glass and China changed its name to Reading China & More! about a year ago to better communicate its mission to its core customer, the 24- to 54-year-old woman who is serious about entertaining.

In addition to its new name, the chain relocated its headquarters and distribution center here, and in the process doubled the size of its DC.

"As we are rapidly growing from a regional to a national retailer, the new, centrally located offices and distribution center are critical to our expansion plans. We needed a location convenient to distribution centers and strategically located nearer to ports for importing overseas inventory," said Eric Brinsfield, chief operating officer.

The chain, a sister company to Delaware-based Matthews Inc. (which owns and operates 145 Hallmark Stores), has come a long way since its beginnings in 1979 when it appeared on the retail landscape much like many of today's hybrid specialty concepts, focusing on bed and bath items, area rugs, small furniture and crafts.

That all changed in 1990 when the two-unit chain was purchased by Jay Brinsfield, who refined the merchandise mix to focus solely on kitchen and dining products, downsized the stores from 50,000 sq. ft. to its current 25,000-sq.-ft., size and turned the Reading, Pa., store into a test unit with a complete facelift.

When his son Eric joined the company two years later, the younger Brinsfield took a leadership role and has since been instrumental in growing the, chain into a 15-unit category killer in 10 states: Pennsylvania, Florida, North Carolina, Alabama, Texas, Ohio, Virginia, Georgia, Tennessee and Missouri (the latter two entered in December).

The chain has since recorded impressive financial results and plans to continue operating as a closeknit operation, with no immediate plans for a spin-off or an IPO. Executives say that before they can grow the chain, their focus must remain on fine tuning logistics and technology. The fact that sister company Matthews Inc. is also privately owned makes a public offering any time in the foreseeable future unlikely.

"We've experienced a 40% average annual growth over the past five years on a revenue and profit basis. Our plan is to continue our strategic growth in the high double digits," said Eric Brinsfield. "We are more concerned with return on investment on existing stores that will in turn drive the number of new store openings."

Five of those new openings will most likely be in the New York/New Jersey area, and the chain plans to increase its store count to 27 by 1997. Most of its future expansion will be in regional shopping centers and strip malls.

Brinsfield is quick to point out that he is not overly concerned with the number of stores the chain amasses, but rather with establishing a strong infrastructure that focuses on technology and employee education.

"We don't need to open stores just to build numbers. There is no correlation between how many stores you have and how good a merchant you are," said Brinsfield field.

"We're a privately held company and our focus is not on short-term shareholder concern; it's on long-term growth of our business that we will accomplish by investing in people and technology," agreed Joseph Bizzaro, chief financial officer.

To that end, the company recently established a program that certifies employees in categories like housewares and china, schooling about both product and manufacturer. "This is helpful to our customers because they have so many choices, and our associates can help focus them down," said Brinsfield.

Technology is also crucial. The chain has incorporated scanning into all its stores and instituted automated replenishment with half its vendors and EDI with several. An on-line bridal registry already boasts 2,000 registrants, and the chain plans to establish a presence on the Internet this year--but for competitive reasons, Brinsfield would only say that "they'll be the first with some exciting programs."

Excitement is certainly an overriding theme, and Reading China & More! tries to keep customers interested by hosting product demonstrations, food tastings, cooking classes and special events with restaurants to benefit charities like Share Our Strength, an organization dedicated to reducing hunger.

All of these special touches are necessary to stay afloat in the turbulent competitive waters that have drowned many of the smaller regionals in home furnishings. Brinsfield feels confident that his chain is above a shakeout. "We're selective in our locations and we're a killer in housewares and dining room. We think we'll be above any type of shakeout," he said.

This is not to say that the chain doesn't compete with other category killers like Homeplace, Bed Bath and Beyond and New England-based Kitchen Etc., perhaps its closest rival, but. Brinsfield feels the chain has carved out a niche unique enough to keep the chain separate.