RTA keeps in step with growing markets - ready-to-assemble furniture

Discount Store News, April 18, 1994 by Michele C. Hollow

Ready-to-assemble (RTA) furniture manufacturers take their cues from neighboring industries. By keeping a close watch on consumer electronics, home office and juvenile markets, RTA manufacturers are able to boost their businesses.

Retailers who will shop the upcoming High Point Furniture Market will see just how much influence these compatible markets have on RTA furniture. "We are broadening and deepening our market presence with extended RTA offerings for every room in the house," said Kevin Sauder, vice president of marketing and sales at Sauder Woodworking Co. "A major focus, however, is on home entertainment and home office furniture. Actually entertainment centers and TV carts represent more than one-third of RTA furniture that's sold. As TVs and stereo systems change, we try to modify our systems to keep up with that."

Sauder's forward-looking home theater collection, called Contemporary Classics, features designs that are new for the company, with pedestal bases and architecturally inspired details. Priced to retail from $119 to $299, the collection features entertainment centers that combine oak or cherry wood tones with black accents. The units are designed to accommodate large TV screens and feature storage compartments for components, audio and video tapes and compact discs.

"It's important to look at compatible businesses when shopping for RTA furniture," said Jeff Geller, divisional merchandise manager at Jamesway. "We do our planning six months ahead. We already have an entertainment stand that accommodates larger size TVs. By looking at compatible industries and seeing the directions and successes in those markets, we react quickly by getting into that business in RTA. It's a growing business for us."

Retailers who shop the High Point Market will find an abundance of home entertainment centers with traditional, contemporary and Shaker designs. What makes these new collections different are the roomier cabinets and additional storage space. "We are offering upscale designs in new colors such as scrubbed pine, European white and a soft golden oak finish," said Mark Saia, marketing manager at Armstrong RTA Furniture, a division of Thomasville Furniture, Ind.

Even more important than some new colors are the easy-to-assemble features in RTA. "The quality of these products is improving in terms of finishes, form and ease of assembly," said Paul Powers, home furnishings buyer at Hills.

All manufacturers are focusing on cutting assembly time in half. Sauder is launching a slide-on assembly system that eliminates the use of angle brackets and screws. The new method employs a tongue-and-groove-like construction that slides together simply and quickly.

Many of these features (design, colors and storage space) in RTA home entertainment furniture are found in the new lines of home office products. These two categories are running neck-in-neck in importance on the retail floor. Home entertainment is slightly ahead.

In office products, ergonomics is the newest buzzword. Bush Industries is introducing several home office RTA products with the customer's health in mind. Several desks feature ergonomically designed pull-out keyboards with raised wrist rests that reduce fatigue. In one item, an overhead light is mounted in the hutch to illuminate the workspace, thus reducing eye-strain.

Many of the home office pieces are getting a contemporary compact design. "Our home office group features tubular steel and laminated particle board," said Scott Kearney, director of marketing at Ameriwood Furniture. "The desks, bookcases and credenzas take on a modern style due to the steel. In our Axial collection we are adding two new colors--charcoal gray with granite and black with honey. We are also introducing a Shaker collection."

Vendors have adapted the Shaker style in many RTA areas--including the kitchen. "The three major growth areas in RTA are home entertainment, home office and kitchen [tables and chairs]," said Powers.

According to Debbie Naulty, marketing manager at Whittier Wood Products, "Our strong suit is table and chairs. Our market is expanding thanks to first-time homeowners and people who are replacing their furniture. They don't want to spend a lot of money on new furniture. What they do want is value."

Powers agreed that value drives Hills' RTA business. "In our channel, trends in style and finishes are over-shadowed by value and function. The basic finishes: oak, white and cherry, still dominate. The growing looks, such as Shaker and Mission, are still peripheral for us."

"The relative value of RTA product has been increasing," Powers continued. "RTA manufacturing efficiencies have reduced the cost of production which ultimately translates into lower costs for consumers."

Plus the perception of RTA has improved. "That's because the products are better," said Naulty. "We are continuing to offer a broader selection of popular traditional and contemporary designs. Our RTA and RTF [finish] furniture are made of hardwoods. These are step-up products, and the consumer seems to understand that they are buying quality."