Chains expand RTA furniture sku's; add bedroom sets

Discount Store News, March 30, 1987 by Mary Ellen Kelly

"Right now we're searching the market for RTA items or programs to add," Hitts said.

RTA is one of the most profitable categories the chain sells, with gross margin percentages edging into the thirties, even after taking promotions and advertising into consideration.

The housewares department at The Andersons averages gross margins of about 23% overall, which includes consumer electronics merchanise, in addition to the usual houseware assortments.

In contras to the success of disounters like Gold Circle and Zayre, some chains are finding bedroom furniture selections to be sleepers in an otherwise active category.

New York City-based S. E. Nichols started selling bedroom furniture last year. But merchandise manager Bernie Soloman said, "so far it hasn't provent itself."

Five bedroom units, including nightstands, dressers and a wardrobe, were added to the roughly 20 furniture sku's Nichols offers.

The Nichols price range is much broader than the typical discounter. Prices start as low as $19.99 and go up to $400 on a large room divider by Van Pelt.

Despite its price tag and bulk (packaged in two cumbersome boxes), sales of the Van Pelt room divider are strong, Soloman said. Nonetheless, he might drop the unit because of the steep freight expense and problems in handling merchandise that size at store level.

Handling RTA might still pose some difficulties, but all of the retailers expressed satisfaction with the improved RTA assembly mechanisms, like the internal cam-loc systems, as well as clearer manufacturer instructions.

"When I go to new resources, I make sure to take a close took at the instructions. Whenever time permits, I try to assemble one unit myself from every resource we sell. In cases where I'm trying to choose between two like items, I utilize a testig lab service," he said.

One discounter said better quality and styling from domestic RTA vendors also have reduced the incidence of confusing assembly instructions. "When you deal with importers, they might make a good product, but their command of the English language is often not the best, leading to a multitude of problems when it comes to the instruction sheets," said the buyer, who asked to remain anonymous.