Federated does its 'HomeWorks': sets RTA unit

Discount Store News, Sept 14, 1987 by Mary Ellen Kelly

Federated Does Its "Home Works': Sets RTA Unit

Federated Department Stores' hottest retail assignment is Home Works.

The specialty operation, run by Federated's Lazarus and Foley's department store divisions, is positioned to earn high marks in the mushrooming ready-to-assemble furniture market.

While company spokesmen for the one-month-old operation claim that HomeWorks is not targeted to the discount department store shopper, prices and merchandise echo discounter assortments, and the marketing strategy stresses both low price and self-service.

Of the four HomeWorks units, two are located at Foley's department stores in Houston and the other two are connected to Lazarus stores in Indianapolis and Columbus, Ohio.

The spokesmen are adamant that while HomeWorks could be called an introductory line of furniture or a new department, it should not be referred to as a new store. Despite their insistence, however, HomeWorks' own catalog describes the operation as a "new kind of home furnishings store.' At three of the four locations, separate store entrances, distinctive HomeWorks store signage and a posted store layout map suggest the department is indeed the test of a new Federated retail format.

HomeWorks occupies about 30,000 square feet of what was previously empty warehouse space at three of the locations. HomeWorks is separated into three rooms: RTA display, RTA self-service stockroom and other housewares products such as rugs, plants, lamps, tabletop and clocks. The majority of the lines are imported from Scandinavia and Europe.

One Foley's HomeWorks in Greenspoint, Tex., is situated on the second floor in what was previously the merchant's budget apparel and home goods department. Unlike the other HomeWorks, it has a separate stockroom and no entrance from the parking lot.

The other Foley's that connects with a HomeWorks store is in Lockwood, Tex., and is the division's "warehouse store,' selling only major appliances, clearance furniture and large consumer electronics items. No apparel or other soft goods are sold.

Walt Kinsey, director of store operations at the Indianapolis location said HomeWorks was created to be as fully service oriented as other Lazarus departments, noting that his store employs 30 staff members, with about 13 working at any given time. Nonetheless, a Foley's release states that HomeWorks "does not employ a hard-sell sales staff,' and that reduced staffing levels "are reflected in lower prices.'

Kinsey acknowledged that HomeWorks "satisfies different, broader demographics' than the preassembled Lazarus furniture department, but he does not think HomeWorks pursues the discount department store shopper.

Encourages Self Service

Customers are encouraged to help themselves to merchandise by using dollies provided within the self-service area where the furniture is stocked on warehouse shelving with plain-packaged boxes stocked underneath.

The rationale for providing RTA in plain boxes instead of preassembled furniture in colored cartons was also explained as a cost-saving measure in the catalog.

Most of the furniture included in HomeWorks' 56-page color catalog falls within a discounter's key RTA promotional price range: $50 to $150. Despite the catalog format, no mail order service is available.

HomeWorks' lacquer furniture, metal folding chairs, TV/VCR carts and wall units--the meat and potatoes of discounter RTA departments --are being sold at prices that compete with similar lines at nearby K mart, Target and Zayre stores.

In some instances, the merchandise is identical to nearby discounter offerings. One example is a juvenile five-piece beechwood desk/chairs set priced at $99 at both HomeWorks and Target in Indianapolis.

At Gold Circle, also a division of Federated Department Stores, one source said there is "absolue duplication' of some furniture at HomeWorks and Gold Circle stores. Spokesmen at HomeWorks deny any identical product overlap eists between the two Federated divisions.

Unlike discounters, HomeWorks can arrange to have furniture delivered to shoppers' homes and assembled at home by a separate firm.

Photo: Furniture is displayed in room settings, suggesting possible decor. Juvenile, bedroom and living room are among the ensembles enclosed in wall booths.

Photo: HomeWorks is the only Lazarus "department' with a separate entrance and signage. The Indianapolis operation was previously distribution space.

Photo: HomeWorks' colorful folding chairs at $9: The thinner line design and stacked pyramid display add excitement to the furniture commodity.

Photo: Approximately 25 different straight-back, non-upholstered chairs in a wide range of colors and styles are merchandised in both the HomeWorks self-service aisles and the main display floor.

Photo: Halfway through opening day, the HomeWorks unit adjoined to Lazarus in Indianapolis sold out on several furniture pieces. To meet demand, additional shipments were ordered from a central Foley's warehouse.