april 2010 western retailer

Jou rna l o f the Wes te rn Home Furn i sh ings Assoc ia t ion

www.WHFA.org

western retailerApril 2010

RetAileR PeRsPective:State of the States

celebrating 20 yearsWestern Home Furnishings Association500 Giuseppe Court, #6Roseville, CA 95678

CHANGE SERVICE REQUESTED

est.1944

MAY 2010 OPEN HOUSE

EMAY 20-21, 2010

3025 PIONEER WAY E TACOMA, WA

MAkE RESERvATIONS bY CAllINg 253-922-1400WWW.EMERAldHOME.COM

Contact WHFA at www.WHFA.org or (800) 422-3778. April 2010 �western retailer

Showroom DeSignenvisioning the Future of retail .... 10

The worlD ArounD uSSurviving Today’s Changing economy ....................... 14

reTAiler PerSPeCTiveState of the States ........................ 18

iT’S All AbouT SAleS & mArkeTingevents make the Store .................. 22

oPerATionAl exCellenCeTop reasons employers get Sued ....................................... 28

EDITORIAL STAFF

Managing Editor: Melissa Dressler ............................... [email protected]

PublishEr: Melissa Robinson ........................................... [email protected]

advErtising ManagEr: Cindi Williams [email protected]

2010 WhFa oFFiCErs and EXECutivE CoMMittEE

WhFa PrEsidEnt

Claudia LeClair - Fiesta Home Furnishings, Scottsdale, AZ ..............(480) 951-3239

PrEsidEnt ElECt

Angel Lopez - Dearden’s, Los Angeles, CA .......................................(213) 362-9600

viCE PrEsidEnt

Chris Sanders - Everton Mattress Factory, Inc., Twin Falls, ID .........(208) 326-3407

trEasurEr

Valerie Watters - Valerie’s Furniture and Accents, Cave Creek, AZ ...(480) 483-3327

sECrEtarY

Lael Thompson - Broyhill Home Collections, Aurora, CO ..................(303) 360-9653

EXECutivE CoMMittEE Chair

Marty Cramer - Cramer’s Home Furnishings, Ellensburg, WA ..........(509) 933-2172

Past PrEsidEnts

George Nader - Nader’s La Popular, Gardena, CA ...........................(310) 327-8585

Cherie Rose - The Rose Collection, Los Gatos, CA ..........................(408) 395-7773

EXECutivE dirECtor

Sharron Bradley - WHFA, Roseville, CA ............................................(916) 784-7677

at largE EXECutivE CoMMittEE MEMbErs

Gary Absalonson - Walker’s Furniture Inc., Spokane, WA.................(509) 533-5500

Howard Haimsohn - Lawrance Contemporary, San Diego, CA ......... (619) 291-1911

Marvin Kerby - Kerby’s Furniture, Mesa, AZ ......................................(480) 834-3888

Karen Kohlman - West Harvard Furniture, Roseburg. OR ................(541) 673-4221

WhFa/nhFa liaison

David Harkness - Harkness Furniture, Tacoma, WA ..........................(253) 473-1234

WhFa board MEMbErs

Buzz Burnett - Treasures Furniture, San Diego, CA ..........................(858) 586-1900

Gene DeMeerleer - Furniture West, LaGrande, OR ..........................(541) 963-5440

Patti Evans - Consignment Plus, Walnut Creek, CA ..........................(925) 927-6600

Mark Flegel - Flegel’s Home Furniture, Menlo Park, CA ...................(650) 326-9661

Eric Foucrier - Linder’s Furniture Mart, Garden Grove, CA ...............(714) 210-4848

Travis Garrish - Forma Furniture, Fort Collins, CO ............................(970) 204-9700

Giff Gates - Gates Furniture, Grants Pass, OR .................................(541) 476-4627

Eric Harms - Black’s Home Furnishings, Yreka, CA ..........................(530) 842-3876

Ron Hoesterey - Royal Mattress Company, Inc., Orange, CA ...........(800) 987-6925

Jerome James - Hafer’s Home Furnishings, Manteca, CA ................(209) 823-2122

Julian Jeppe - Reeds Furniture, Agoura Hills, CA .............................(818) 597-7800

Doug Kays - Premiere Home Furnishings, Los Angeles, CA ............. (310) 268-0811

Chuck Kill - Bedmart, Tucson, AZ ......................................................(520) 887-7039

Tim Koerner - Koerner Furniture, Coeur D’Alene, ID .........................(208) 666-1525

Don Lemieux - Naturwood, Rancho Cordova, CA .............................(916) 638-2424

Jeff Lindsley - Lindsley’s Home Furnishings, Grangeville, ID ............(208) 983-1040

Robert Myers - Ashley Furniture HomeStore, Chico, CA ...................(530) 345-2616

Mark Navarra - Jerome’s, San Diego, CA..........................................(858) 753-1549

Michael Nermon - Ergo Customized Comfort, Irvine, CA ..................(949) 833-0338

Scott Selden - Selden’s - Tacoma, WA ..............................................(253) 922-5700

Mike Shuel - Meredith Furniture, Yakima, WA ...................................(509) 452-6221

Tom Slater - Slater’s Home Furnishings, Modesto, CA .....................(209) 522-9097

WESTERN HOME FURNISHINGS ASSOCIATION STAFF

Executive director: Sharron Bradley ...............................................(916) 960-0345

asst. Exec./Marketing director: Kaprice Crawford .........................(916) 960-0346

business Manager: Janice Carlson .................................................(916) 960-0347

Events Manager: Cindi Williams ......................................................(916) 960-0277

operations/Warehouse Manager: Jef Spencer ..............................(916) 960-0386

Communications Planning Manager: Melissa Robinson ...............(916) 960-0349

Managing Editor & Webmaster: Melissa Dressler ..........................(916) 960-0385

Membership Manager: Michael Hill .................................................(916) 960-0263

Member services specialist: Margie Jacobs ..................................(916) 960-0199

Member services rep: Adam Gardner ...........................................(916) 960-0291

accounting assistant: Melody King ................................................(916) 960-2476

est.1944

table of contentsJou rna l o f the Wes te rn Home Furn i sh ings Assoc ia t ion

western retailer

Western Home Furnishings Association is the western affiliate of National Home Furnishings Association

contactPhone: (800) 422-3778 (12 western states)

(916) 784-7677online: www.WHFA.orgFax: (916) 784-7697mail: 500 Giuseppe Court, Suite 6

Roseville, CA 95678Twitter: www.twitter.com/WesternRetailerFacebook: http://bit.ly/chAwod

case sensitive

featured articles

RRCRETAILERRESOURCE CENTER

est.1944 western retailerACADEMYWHFA

Your Industry. Your Future. Your Decision.

in every issueIndustry Beat. . . . . . . . . . . . . . . . . . . . . . . . . . 8

Board Member Q&A with Eric Harms . . . . . . . . . . . . . . . . . . . . . . 8

Program of the Month: GE Money. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Western Retailer Celebrates 20 Years Letter from Chris Tejeda editor 1998-2004 . . . . . . . . . . . . . . . . . . . 27

A picture here, a pillow there. Often it is the little things that pull a room together. The same is true for your business. Small things done right can have a huge impact on your profitability.

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“I always walk away with a hot idea to help the profitability and efficiency of my business. The support of PROFITgroups, and the accountability to the group, has forced me to become a better operator.”

Scott Reid, Reid’s Countrywide Home Furnishings, Thunder Bay, Ontario

Making Retailers More Profitable

Contact WHFA at www.WHFA.org or (800) 422-3778. April 2010 �western retailer

ON THE COVERWe would like to thank RC Willey, Roseville, CA for allowing Western Retailer to take pictures in their beautiful store.

President’s Message

Fiesta Furnishings / Brix Home Scottsdale, AZ(480) [email protected]

Claudia LeClair 2010 WHFA president

Loyalty is more important than ever in the current business climate. When I furnished my first home, which was 15 years before I entered the home furnishings industry, I bought every bit of my furniture from one store and one designer/salesperson from that store. I never considered shopping around because of my loyalty to her. Of course, the store carried the type of furnishings I was interested in, but mainly my loyalty was with the designer because of her talent and service. For many years, I have purchased most of my clothing from Carol at one particular boutique. I wouldn’t think of stopping in without calling first to make sure Carol is working, because I trust her. She knows what I like, what I already have and what I need. I’m very loyal to her. But, loyalty is a lot like respect in that it isn’t just given, it must be earned.

I’ve always thought of my relationship with manufacturers as a partnership. A true and successful partnership means working together through not only the good times, but the bad as well. It was easy to be loyal when business was rolling along at a steady clip and orders were flowing. I’ve had my share of cash flow problems the last couple of years, and I’m guessing some of you have as well. I had containers flowing in a steady stream to my warehouse. All of a sudden business slammed to a halt, and the containers kept coming. They were on the water or in production and couldn’t be stopped. Some of my manufacturers (you notice I call them “my”) worked with me on payment plans and kept manufacturing and shipping special orders in spite of the fact that I wasn’t able to pay as I had in the past. You can bet my loyalty is with those companies who worked with me and helped me through those rough times.

Most of us have been purchasing less due to decreased demand. I admire and respect the sales reps who didn’t run wild trying to increase their distribution in order to make up for lack luster sales. Instead many came up with creative ways to focus attention to their product. I’ve always said, “There’s a lot of furniture out there to choose from,” but when I attend market, I’ll be spending my time and money with those who were loyal to me when times were tough.

In evaluating expenses the last couple of years, advertising was heavily scrutinized because of the big dollars involved. Many of the advertisers I deal with held steady on their pricing and gave extra added exposure to our stores. They found ways to "hold onto me" by being creative, giving added benefits and not pricing themselves out of the game like some others did. Loyalty is a two-way street.

Customer loyalty may be the most important of all. We all know what we have to do to deserve that. Anything and everything we can think of! And the loyalty that has been given to us creates a trickle down effect. We are still in business and will continue to think of ways to be loyal to our customer base and to our community.

� April 2010 Contact WHFA at www.WHFA.org or (800) 422-3778.western retailer

Editor’s Message

Last month’s magazine is available online at www.WHFA.org.

Melissa DresslerWestern Retailer managing editor

Jou rna l o f the Wes te rn Home Furn i sh ings Assoc ia t ion

www.WHFA.org

western retailerMarch 2010

MeMber ProFile:Aegean Designing WhimsLos Alamitos, CA

celebrating 20 years

Western Home Furnishings Association500 Giuseppe Court, #6Roseville, CA 95678

CHANGE SERVICE REQUESTED

est.1944

Is It the Recession… Or Something Else?This month, Western Retailer magazine did its first ever State of the States poll asking readers

what their overall outlook is for 2010, and we received an array of different responses. People from the same geographical area had widely differing opinions. Some are optimistic, while others are still fearing the worst. So why are some people seeing signs of a recovery while others aren’t? Can it all still be about the economy, or should you be looking deeper at your business?

Just down the street from my home, one home furnishings retailer is thriving and another just went out of business. They received the same traffic (people actually had to drive by the out of business store before reaching the successful one), so what is the successful one doing differently? It comes down to what you are selling, and how you are selling it. The successful store is offering customers the products and services that they want and need. With many consumers tightening their belts and every industry vying for the customer’s dollar, it is vital for you to know what your customer wants and needs.

Is your product line-up meeting the needs of your customer? Do you live in an area where people have had to downsize because of foreclosures? If you do, then you may want to consider offering customers smaller pieces to accommodate their new homes. When I was shopping for new furniture, I left many stores just because I did not like the product selection. It didn’t matter if the products cost less than other stores; I was looking for quality and I didn’t want to spend my hard-earned money on an item that I didn’t absolutely love. In the end, I actually purchased a bedroom set that was above the original budget I planned on spending — but I absolutely love it.

Are your salespeople still attempting to close a sale by offering financing? Today’s consumer is charging less and spending more with the money they have. They are leery about using credit. In this month’s The World Around Us article on Surviving Today’s Changing Economy, it states that credit card spending plunged in 2009. Instead, your salespeople need to show the value of the product to the customer — and value doesn’t equate low price any more. Customers want to know what they are buying is worth the price.

While I know that business is still bad in some areas, especially areas hit hard by foreclosures, I suggest you also look at other areas of your business that might be affecting your bottom line. Don’t just look at your expenses, and where you might be able to cut costs — look at your whole operation, from how your salespeople sell to your advertising to the furniture on your floor.

This issue of Western Retailer contains timely articles that will help your store get through this recovery period. I hope you enjoy it and find many of great ideas you can use in your store.

(916) [email protected]

looking forwardto May 2010

• 2010 western retailer of the Year hw home

• rebranding Your business• what is national home Furnishings

month?

... and much more

What Do You Get When You Combine. . .

est.1944 Western Home Furnishings Association (800) 422–3778 www.WHFAconference.com

“I attended my first conference in 2003 and haven’t missed one since. Now, I have more friends than I can count. What a difference it makes to be able to share ideas about merchandising, marketing, operations and sales management. How often do you find so much brain power in one setting other than at conference?“

Claudia LeClair, Fiesta Furnishings/Brix Home, Scottsdale Arizona

May 2-4Disney’s Grand Californian Hotel® & Spa

Anaheim, CA

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� April 2010 Contact WHFA at www.WHFA.org or (800) 422-3778.western retailer

Eric HarmsBlack’s Home FurnishingsOwner204 S Broadway StYreka, CA 96097(530) 842-3876 [email protected]

Q&A

boardmember

with eric

Every month tune

into Board Member

Q&A to learn more

about your WHFA

board members.

Bedmart Named No . 1 by Simmons and Serta Brands

Major mattress manufacturers Serta, Simmons and ComforPedic have all honored Bedmart as the No. 1 dealer for their mattresses in Arizona. Bedmart was also awarded the No. 1 dealer designation by Leggett and Platt, headboard and footboard manufacturers.

“It is especially gratifying to earn these accolades,” said Chet Goldberg, owner. “We are an Arizona firm. We started here with a single store in Tucson in 1988 and now have 29 locations throughout the state. Our growth has been fueled by our commitment to give every customer the best possible mattress buying experience and to give back to the communities where we work and live.”

Bedmart has locations throughout the Phoenix and Tucson valleys, in Casa Grande, Sierra Vista and Green Valley. Each location has up to 80 mattress sets on display so that customers can compare different brands and mattress construction and enjoy one-stop shopping.

Linder’s Furniture to Open First Superstore in Rancho Cucamonga

Linder’s Furniture, located in Southern California officially opened its first superstore in Rancho Cucamonga on March 4. The move marked the initial phase of the 28-year old Southland company’s expansion plans for 2010. At a time when the national job rate continues to decline and with Riverside County unemployment rates among the state’s highest, Linder’s creation of close to 35 local jobs couldn’t have come at a better time for the county.

Taking over the former Wickes Furniture 50,000-square-foot showroom located next to a Costco in Rancho Cucamonga and across the street from Ontario Mills Mall represents a new direction for the family-owned and operated company, which plans to focus on the superstore format in 2010. The move, according to company president, Eric Foucrier, “Will allow us to offer customers greater selections and more customizable options — providing, as our company mission statement states, our customers with a [truly] enjoyable and professional experience.” The expanded showrooms will also allow for greater diversity in styles as well as the ability to merchandise in a completely different way, according to Foucrier.

The locally owned furniture company’s expansion into Rancho Cucamonga reflects the company’s confidence in a strengthening U.S. and Southern California economy.

Q: what motivates, invigorates and inspires you about our industry?

A: The ability to interact with so many diverse personalities, business ideas and contemporaries.

Q: what do you value most in an employee? A: Work ethic and honesty.

Q: what is the last book you read? A: An adventure by Clive Cussler with Dirk Pitt as the hero.

Q: what did you want to be when you were growing up?A: A ski racer and an instructor at Lake Tahoe, NV.

Q: when i retire, i want to: A: Spend more time in Maui and try to finish all the projects at our home on

the river.

Q: why did you join the whFA board? A: To help promote our industry and lead us into a more prosperous future.

Industry Beat

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10 April 2010 Contact WHFA at www.WHFA.org or (800) 422-3778.western retailer

Showroom Design

Ross Barlett ViewIT Technologiesco-founder and CEO

The PlayersCindy and her husband James lead a hectic

lifestyle; both work full-time, their young son has just started pre-school, and last week, they received the good news of the impending arrival of their second child. Busy, time-starved and thinking of the future, Cindy and James are the norm for a young and growing family.

The ProblemTheir offer has just been accepted on a new

home they really have their hearts set on. Cindy’s thoughts alternated between frenzied excitement and sheer panic, as she consideres all the planning and execution required to pull off this move in such a short time frame. The closing on this, their second home, is only six weeks away. And since the new place is almost twice the size of their current home, the task of furnishing and

Envisioning the Future of Retail

T he following narrative is purely fictional; a light-hearted look ahead at what a retail furniture store might look like 10 years from today. The story is a culmination of industry statistics and

trends, research into existing and new technologies, professional and personal observations and a healthy amount of stretching the imagination. Its purpose is to get industry stakeholders thinking about the “what’s next” for our business and to get some creative ideas flowing.

Contact WHFA at www.WHFA.org or (800) 422-3778. April 2010 11western retailer

decorating the new home before the baby’s arrival was daunting. What to take, what to buy… and then there was the new nursery to consider.

A New WayHer thoughts drifted to her favorite

furnishings and décor store. To Cindy, J. Mitchell’s was like a cross between Starbuck’s, Barnes and Nobles and a night out at the movies. They offered a comfortable, clean, inviting atmosphere and a new customized approach to the home products business that said they knew what she liked — and how she wanted to buy.

When J. Mitchell’s moved into her neighborhood, quite a buzz had already been stirring on her social networks, with very positive reviews of what her online “friends” thought, bought and loved at the store. One visit was all it took to get her “hooked”.

The InternetCindy remembered back before J. Mitchell’s

came to town. Constantly connected, her first place to go was the web. Being online gave her the power of information; of being able to search for whatever piqued her interest and instantly being presented with thousands of ideas, product data, options and sources. Although you could find almost anything you were looking for online, (and probably find it cheaper than her preferred stores), the vast amount of information available meant she was forced into a time-consuming exercise that was often confusing and irrelevant. She felt that she would gladly pay a little more — and certainly buy more — if she could find a balance between all that product information online and her desire for personalization. And then she heard about J. Mitchell’s…

The StoreJ. Mitchell’s was no ordinary furniture

store, but a new concept that changed all the rules. Accessible, helpful and very passionate, J. Mitchell’s founders recognized that most people had a simple goal: to create a home that was safe, comfortable, personal and unique. They also recognized that most of us didn’t really know how or where to begin.

J. Mitchell’s main objective was to engage and excite people into wanting to make change in their home lives — and then showing them how easy and fun it could be. To facilitate this, J. Mitchell’s worked hard at giving their customers the inspirational ideas, tools and technologies to make it simpler for their patrons to take home design projects from concept to completion.

A major difference from the traditional furniture store approach was in store size: J.

Mitchell’s stores went against the competitive grain; where other companies stores were 50,000 or even a 100,000 square feet plus, J. Mitchell’s stores were only 15,000 sq. ft. They were clean, airy and always changing. Although the bigger stores had lots of merchandise and room vignettes, the effect was often too overpowering to shop effectively: Too many things to remember, too many choices, not enough of what she wanted. Quite the opposite, she was sure, of what the retailers intended.

The PeopleThe staff at J. Mitchell’s never referred to

themselves as “salespeople”. Selling was the old way of her parents’ generation, and Cindy hated to be sold. She recalled those store visits where well-meaning but over-eager sales staff would immediately “pounce on” her, seeing her only as an UP, and part of their weekly paycheck.

But at J. Mitchell’s, the in-store people, or hosts, were always available to assist you as much or as little as you wanted or needed. The thought was that if they offered expert design guidance through passionate and caring staff in a way that worked for you, your purchase decisions came faster, easier and with more confidence. No selling was needed!

The Value PropositionLike most of us, Cindy and James know

what they like when they see it. But to put a name to it or describe these things is a different story. Understanding this, J. Mitchell’s hosts are trained to assist their customers, or guests as they are referred to, seek out their style and design preferences before jumping into a sea of millions of product choices. As the very first step in achieving their project goals the company’s unique approach is to remove the barrier of choice, by creating a detailed project plan. Their motto: Design it first, then find the right products. The all-important plan then becomes the blue-print to work from; a step-by-step set of instructions that lists all elements needed to make the makeover project a reality. And that’s where J. Mitchell’s shines; in applying their expertise, insight and guidance into finding those perfect products and materials without the limitations of needing to sell what’s on the floor.

Digital InventoryUnderstanding that a store could not

possibly carry every product line without having to commit to huge stores to display these products, J. Mitchell’s set out to accomplish their mission through the integration of technology within its stores.

Envisioning the Future of Retail


But because this business was all about options, J. Mitchell’s made up for its smaller footprint by creating “digital inventory” in partnership with their suppliers. This enabled J. Mitchell’s to show almost everything that is available — on demand.

Of course they had real products as well. J. Mitchell’s showroom is actually a series of vendor vignettes, created not just to inspire, but more importantly to make it easy for staff to explain the quality differences and demonstrate the special features of the manufacturer’s products. This approach supported the vendor’s brand message and technology took care of the rest.

The Design ClubThrough its VIP Design Club program, J.

Mitchell’s made sure that each of its guests knew about and had at their disposal all of the design tools that made the entire process engaging, exciting and fun. Membership in the Design Club was available for a small, yearly fee, and gave access to the company’s special resources, discounts, seminars, and design technology that made starting and completing home projects a breeze. James had his club; Cindy had hers.

The TechnologyCindy loved the Design Zones at J.

Mitchell’s. Both Cindy, and especially James, had a problem “seeing” how all elements of a room might look — together. With so many choices and possibilities to consider it was difficult to picture it all together. And she wanted it done just right — the first time. The Design Zones were interactive personal design theaters with life-size wall, ceiling and floor projection surfaces. Their benefit was the ability to create a virtual 3D space based upon an actual room or even an entire floor plan, and then apply real-world products and materials to it.

Another piece of technology that allowed for a smaller store without limiting its offerings was the introduction of the Virtual Touch System.

Many traditional stores offered custom upholstery programs and had a need to display thousands of fabrics that could be used on the products they sell. People were tactile and often needed to touch and feel the small samples in order to make their selections. To the retailer these fabric displays took up a lot of space, and worse — they were rarely up-to-date. To the product vendor they were expensive and difficult to administer. To both, they were a necessary evil.

The Virtual Touch System changed all this. Based upon a special touch-screen interface accessing an always up-to-date materials database, one’s mind is fooled into sensing what the hand would feel (touching the fabric) by replicating the hand’s nerve effects. Cindy couldn’t tell the difference between the digital fabrics and real samples, but it certainly made selections much easier.

The ProcessSpecial coffee in hand, Cindy got

comfortable in her Zone theater chair and logged in to her personal design account. “Open Nursery”, she said to no one in particular. The recent changes to the Design Zone system made it possible to “talk” through her design selections instead of keying it in the way they used to do it. As the area within the new house plan opened up to a bird’s eye room scene, Cindy added the words “3D view”. The system responded by switching to a life-like 3D room image, almost as if she were in it.

Contact WHFA at www.WHFA.org or (800) 422-3778. April 2010 1�western retailer

The Virtual DesignerAlthough Cindy had an idea of

how she’d like the room to look, she really wanted to get Sarah’s

opinion. Cindy and she had developed a friendship starting

from her first visit.“Sarah, can you give

me a hand here?” Cindy called, seemingly to no one

in particular. “Hi Cindy, I’ll be right

there,” was the reply, and after what was less than 30 seconds

‘Sarah’ (or her life-sized image) materialized in what could only

be described like a transporter scene from an old Star Trek

episode.Sarah was a full-sized holographic

projection of the “real Sarah” who happened to be 1,200 miles away at

another J. Mitchell’s store. Although she wasn’t here physically, to Cindy it

was the next best thing. Sarah was one of J. Mitchell’s many design mentors and worked with a number of customers around the nation. The benefit was that J. Mitchell’s could hire the best design talent, and through technology pair designers with customers whose personal style preferences matched the designer’s passion and abilities. This way, J. Mitchell’s entire design staff was available to assist any customer, anywhere J. Mitchell’s served. This technology could have Sarah working with many people in many parts of the country, or even the world — on any given day. It also allowed J. Mitchell’s to provide a much more diversified product offering that encompassed much more than just furniture: flooring, window treatments, paints, appliances, kitchen designs, landscaping — all without the requirement of adequate floor space to support the different product lines properly, or having to staff an in-store expert on everything they carried. Although it initially took a bit of getting used to, having a designer instantly “on-call” quickly became a welcomed benefit to call on where and when needed.

Déjà vu After Cindy brought Sarah up-to-date with

her good news, Sarah suggested they start with the baby’s room flooring. “Hardwood, and a soft area rug, I think,” she said. The system voice commands resulted in matching images of products that she could try by calling the image number. The 3D room scene projected on

the floor instantly changed to reflect her various selections. The fact that it was life-sized made it much easier to decide than looking at small pictures showing products in someone else’s home.

Sarah then suggested a new baby-furniture series she had seen at Market and thought it would look terrific in their new space. She said the brand name then selected the crib, dresser, change table and rocking chair to be included in the 3D room scene. By using gesture control — moving her hands to “grab” and move objects — she had quickly arranged the items around the room. “These items come in 10 finishes,” Sarah offered, and tried all 10. The last one was perfect.

After experimenting and selecting paint colors, a rug, window treatments, wall art and childproof wall receptacles, the room was soon completed. With the words, “Display Room” from Sarah the Design Zone area transformed into a life-like version of baby’s new nursery — complete with 3D holographic furniture. To Cindy it was simply amazing to be able to see exactly how it will look — before it was delivered. Design déjà vu.

The BuyCindy loved the look, and wanted to show

James right away. Upon the commands, “Save Room design, and

Send to James,” the design system created a series of room pictures and detailed reports of all the products selected, and the complete room cost. These were sent to James’ new iPad, allowing him to open the 3D scene and see his own version of the new room.

“Ok,” Cindy said to her design mentor. “Next room is the master bedroom…” and with that they began the process of creating the perfect bedroom next to the baby’s.

Turning what to many people is a fear-laden, seemingly un-ending series of decisions into a enjoyable, and entertaining, experience is the goal of a variety of different visualization technologies. As these technologies emerge and mature,

they promise to dramatically alter the way people buy — and how we as an industry sell — to the willing and eager consumer.

Ross Barlett is co-founder and CEO of ViewIT Technologies, developers of design-related sales tools for the home products industries. For the past five years, ViewIT has been working on solving the “how will it look in my home” buying hesitation. The result is www.3dream.net, a 3D virtual room design system that acts as a visual decision-making tool. Ross, an inventor and self-proclaimed ‘gadget-guy’, believes in a simple concept: if we can show our customer how their space will look before they buy, they’ll buy more — faster. Ross can be reached at [email protected]


The World Around Us

Albert Einstein had a very meaningful definition of the word “insanity”. He said insanity was, “Doing the same thing over and over and expecting different results.”

The last several years of our recession have caused consumers to change their attitudes and buying habits. In Paco Underhill’s book, Why We Buy, he wrote that the shoppers/buying model today says, “We now brag about not how much we spent, we brag about how little we paid and how much we saved.” This attitude has been proven clearly by several recent consumer research reports. The consumer today needs to “do more with less” according to a recent survey by Furniture/Today and HGTV and consumers have established five new habits. These habits are divided into the five habits that they will continue to use, and the five habits the consumer will stop using once the economy improves.

The consumer will continue to:1. Pay with cash2. Use coupons3. Shop several stores before buying4. Save money5. Do it him/herself

The consumer will stop once the economy improves:

1. Eating at home every night2. Using credit cards3. Not taking a vacation4. Living paycheck to paycheck5. Worrying

US News & World Report recently published their research findings in an article entitled, 17 Ways Consumers are Changing based on economic data, market research studies and dozens of reports from customers themselves. Some of the issues covered were:

Less Credit, More Cash – Consumer borrowing has fallen by record amounts. Credit card spending dropped sharply in early 2009, moderated, then plunged again. But over all spending hasn’t fallen quite as much, which suggests that consumers are paying more with cash.

The End of the Monthly Payer – “The era of the unbridled, debt financed consumer spending is over, and the monthly payer is out of action,” writes Eric Janszen of I-Tulip, a finance advisory firm in the Harvard Business Review.

Ron WolinskiProfitability Consulting Group vice president

Surviving Today’s Changing Economy:

Know and Understand Your New Customer


Less Brand Loyalty – Millions of consumers traded down to store brands over the past few years and many plan to stick with them. The quality of off-priced products has turned out to be better than expected, so there may be little reason to pay more for name brand goods with essentially the same quality. There is a shift from more expensive products to value-based products.

Smaller is Bigger – Many things are getting smaller including household budgets and people’s ambitions. “Small things now make the bigger statement,” says the Futures Co., a market research firm. “Smaller portions, smaller houses, smaller cars and local communities.”

Less Window Shopping – People are making less trips to do shopping. “I save time, and the expense of gas and the wear and tear on my car,” says Heather Mitchell, of Friendswood, TX. When consumers do go out, they want to buy and not simply shop.

We must emphasize to retail furniture salespeople that, “Everybody is a customer; we don’t have tire kickers, especially in today’s economy.” Our salespeople must be better educated to explain how the products can be used, and how the family will benefit. We must not simply sell furniture. We are selling “quality of life”, and solving the customer’s needs to build a room, and a house for the family and be able to present “price equals value”. We must be customer-centric and review the ultimate end user benefits of our home furnishings.

There has been a tremendous shift in where customers are shopping for furniture. We must understand why they are changing, and what we can do to solve those different needs. According to recent studies, home improvement centers have improved their business by 10 percent between 2008 and 2009. Discount department stores have improved their business by 27 percent. Warehouse and membership clubs have improved their business by 10 percent and off-price retailers have improved by 22 percent. Second-hand stores have improved their business by 28 percent.

Research has clearly indicated that the consumers today place their purchasing emphasis on quality, price, value and durability. Value and quality are critical to consumers shopping for home furnishings. The local retailer must begin to make all their employees very aware of these consumer needs and base their presentations on these premises. We know that 45 percent of surveyed consumers say they trust the local retailer to be there for them. This supports the findings of the US News and World Report research that indicated there was less brand loyalty in today’s consumer’s mindset.

In January of 2010, the National Retail Foundation held their annual “Retail Big Show” which featured a panel session, and among the panel members were Tory Burch and Steve Sadove, the chairman and CEO of Saks Fifth Avenue. Here are some takeaways from their session:

Price Does Not Equal Value – People want things they can’t get anywhere else, but they also want value. Consumers want to achieve a feeling of, “Whatever they buy is worth it.” In their minds, it must be a good deal. We need to highlight quality and design as important elements that complement price in the equation.

The Definition of Luxury is Changing – Gone are the days that luxury meant high prices and excess. Instead, says Burch, “Luxury means something very different than it used to. Now it’s about how you live your life.” Let’s evaluate the products we have, and how they can help the consumer achieve the lifestyle that they choose.

Brands Need to Do a Better Job Communicating to People Who Love Them – Marc Gobe, author of Emotional Branding said that the Coca-Cola Facebook with 4 million visitors, isn’t even run by the company. The bottom line is that companies need to love their customers as much as their customers love them. In this day and age, if you’re not giving your customers the proper vehicles for them to express their love for you, they’ll just go somewhere else. To create a new connection with customers all of our guest panelist talked about using social media (Facebook and Twitter, specifically) along with their websites. Also, on the innovation front (i.e. using social media to connect with your customers) Tory Burch tweeted about how much she hated taking off her shoes in airport security and joked she should design travel socks. Her followers inundated her with responses. The result will be travel socks designed by Christmas of 2010.

In reviewing the National Retail Federation’s “Retail Big Show”, I noted the comments of

We must emphasize to retail furniture salespeople that, “Everybody is a customer; we don’t have tire kickers, especially in today’s economy.”

“ “

1� April 2010 Contact WHFA at www.WHFA.org or (800) 422-3778.western retailer

Sir Terry Leahy the CEO of TESO, one of the U.K.’s largest and most successful international retail chains. He offered the audience six drivers of growth as we emerge from the recession and dealing with our new consumers. First, consumers will gravitate towards retailers and brands they trust. Second, information is vital; consumers now know a lot more about our business and vice versa, so make sure your company is transparent. Third, health is big; consumers want products that will help them live longer and live better. Fourth, consumers are craving convenience more than ever. Rather than having to make multiple shopping trips, they want one trip to fit into their busy days whenever possible. Develop a one-stop shop operations philosophy. Consumers will want to comparison shop, but if we provide the answers, we can eliminate that issue. Fifth, what problems can you solve for your customers? Be a consultant, a problem solver and a provider of answers and solutions, not a salesperson. Finally, climate change is a major driver. There are large business opportunities for retailers who can offer low carbon, green products and living for consumers.

The last area that is changing consumer and retail habits is technology. Doug Henschen, from Information Week, found in his study on changing technology that there were significant areas that the retailer must know and understand about their new customer.

Consumers are engaging mobile apps and social networking to facilitate online purchases and influence merchants’ studies findings. Between the state of the economy and the rise of technology, consumers are embracing the Internet, mobile phones and other technologies

more than ever to find deals and change their shopping experience and process. To meet the expectations of these demanding customers, retailers must respond with more personalized promotions and offers.

These are the key findings of a new report being released by IBM at the Annual Convention and Expo 2010 in New York. Based on interviews with 32,000 consumers in six countries the study found that tech-savvy shopping is no longer a niche phenomenon.

“In every market, every age group in every retail segment we studied, from groceries to home merchandise to specialty clothing, we discovered pervasive use of technology among consumers,” says Jill Puleri, IBM’s global retail industry leader.

To the surprise of some, the use of technology was even more pronounced in the high-growth markets of India, China and Brazil then in the established markets in the U.S., Canada and the U.K. “The emerging world actually has a higher percentage of respondents who use two or more technologies to shop,” Puleri says. The Internet and mobile phones were the top choice, respectfully, trailed by in-store kiosks and the nascent technology of interactive television shopping.

Just how do consumers want to use these technologies? The study revealed that 79 percent want to use websites to access and print coupons. Seventy-five percent want to use mobile phones to find out where the nearest store is located. Sixty-six percent want to see what goods are in stock before going into the store. What’s more, 78 percent of consumers say they are willing to “co-create or collaborate with retailers” by offering feedback on product design product selection and store layouts. Retailers should take advantage by providing social networking tools or monitoring social networking sites,” Puleri said.

“L.L. Bean gathers consumer feedback through its website, and product designers review the suggestions before they create new lines,” she added.

To extract intelligence from large volumes of comments such as email surveys or comments on blogs or social networking sites such as Facebook or Twitter, retailers and product manufacturers are increasingly turning to voice-of-the-consumer analytics. These emerging business intelligence applications can quickly hone through documents, surveys or web-based comments and look for spikes in the negative words or positive words associated with particular brand’s products or services.

“Whether consumers are texting, Tweeting, blogging, or giving you feedback directly on your own site, tools are available to help retailers rabbit, analyze and make sense of it,” Puleri says.


To help retailers better track customer wants, needs and preferences, IBM is launching a new Retail Center of Competency that will provide industry expertise in the areas of business analytics, customer insights and merchandising. Offering both talent and technology, IBM says the new center will help retailers streamline costs, reduce inefficiencies, aid product offerings and speed support and response activities.

To build its depth of expertise, IBM is hiring experts in both merchandising analytics and customer analytics, Puleri says. Merchandising is about optimizing product mix and store planning. Customer analytics entails identifying best customers and — in the top area of that survey respondents said needed improvement — developing personalized pricing and promotional offers.

As is evident, the last several years of our recession has indeed created a new customer with different attitudes, technologies, behaviors and buying habits. If we are to survive in these economic times, we must be able to reinvent ourselves and take the time to understand our new customer and work with the technologies that will allow us to communicate and connect with this customer. We must evaluate our philosophies, our operation and our methods of doing business. As we better understand this recessionary customer we can connect with them by utilizing our knowledge and educating our associates to work with our customers and truly be consultants and not salespeople. In addition, we must make an effort to gain significantly better feedback from our customers so we can specifically fill their needs and understand what motivates them. We could also gain a better understanding of what they’re looking for, and how we can improve our operations by providing the tools for them to give us feedback on our website and utilize the tools of social networking, mobile phones and iPods that were so clearly illustrated in the most recent research.

Ron Wolinski is vice president for the Profitability Consulting Group. His expertise and management stems from the positions he has held such as Manager of Training for Art Van Furniture, Vice President of Sales and Forward Planning with Contract

Interiors, Training Consultant to Thomasville and formed the Thomasville University, President of Behavioral Dimensions, Director of sales Education for the Simmons Co. and formed the Simmons Academy, National Director of Education Development for Value City Furniture and most recently, Director of Education and Retail Services for La-Z-Boy, Inc. He consults with retail organizations internationally on Consultative Selling, Communications, Leadership skills, Organizational Development, Recruiting/Interviewing/Hiring, Customer Service, and the Science of Sleep. Questions for this article or other related topics can be directed to [email protected].


My overall outlook for 2010 is… ALASKA: “Optimistic.”

ALASKA: “The economy is still not in recovery, despite what people are saying. We are struggling just to pay the bills, and I do not see things getting better in the near future.”

ARIZONA: “Sales are expected to be up at least 20 to 30 percent over last year.”

SOUTHERN CALIFORNIA: “Although consumer confidence is definitely better than it was a year ago; the new, more conservative buying habits are holding back big-ticket purchases.”

SOUTHERN CALIFORNIA: “We are still being very careful with our ordering and only hiring the best employees available.”

SOUTHERN CALIFORNIA: “Our outlook for 2010 is cautiously optimistic. We will be expanding our store base, taking advantage of a buyer’s market for retailers space.”

SOUTHERN CALIFORNIA: “Very cautious. California will continue to make it very difficult to do business in this state and increased taxes will hurt small businesses and consumer confidence. Manufacturers will continue to drop items in their lines to control costs and middle to lower-end manufacturers will continue to try and figure out how to make their product even cheaper with lower quality. Hard work and lean inventories will allow retails to survive.”

SOUTHERN CALIFORNIA: “I believe we’ll double our sales from last year.”

SOUTHERN CALIFORNIA: “Cautiously optimistic. We are planning on an increase in sales of 5-10 percent.”

SOUTHERN CALIFORNIA: “Really good. We’ve seen traffic and floor sales increase. We’re redecorating our showroom, adding wallpaper and window treatments and customers have been very upbeat.”

NORTHERN CALIFORNIA: “We are hopeful for a good 2010.”

NORTHERN CALIFORNIA: “We were very happy to say good riddance to 2009. Unfortunately, 2009 is looking better than 2010. We are in ground zero for the recession and it has not improved. We have been in this thing since April of 2006, and we are tired of it like you cannot believe. Weathering the storm has not been easy, and we were hoping to see a light at the end of the tunnel looking forward to 2010... not happening. We have been positive for years and will continue to be uplifting to others and our customers, but at this point we need to be truthful so our state and government will begin to take notice of our ignored area.”

NORTHERN CALIFORNIA: “More promising than last year but we need unemployment to go down — soon.”

NORTHERN CALIFORNIA: “More growth than 2009, +10 percent at minimum…”

NORTHERN CALIFORNIA: “Excited to implement new strategies. Already cut costs to the bare bones. Now is the time to move on with inexpensive and innovative ideas. Setting and achieving goals in any economy is good for your soul.”

At the end of every quarter the Western Retailer magazine will be polling the membership to get a State of the States assessment of the retail environment for the 12 western states.

First quarter’s question was: What is your overall outlook for 2010?

We also asked retailers the question, “First quarter sales are...” and due to the overwhelming response from readers, we have published those answers online. Please visit www.WHFA.org to read more of the memberships’ answers.


Retailer Perspective: State of the States


NORTHERN CALIFORNIA: “I think 2010 is going to be a tough year. There are too many things wrong with the economy.”

NORTHERN CALIFORNIA: “It will still be a challenging year... We see the housing market remaining difficult but don’t anticipate the same big declines that we saw in 2009. Without an uptick in the housing market, we don’t forecast a significant sales uptick.”

NORTHERN CALIFORNIA: “I am cautiously optimistic about 2010. I do believe those of us who have been in the worst areas of the recession (i.e. the San Joaquin valley), will see at least double digit increases over 2009. We are hoping for about 20 percent. Mind you that is over the worst year in the last 15.”

NORTHERN CALIFORNIA: “My overall outlook for 2010 is better with hope that we are near the bottom.”

COLORADO: “Cloudy with a chance of meatballs. Hurricanes probable throughout the year with an occasional tornado giving way to pea-sized hail. Although we are predicting another stormy year, we do see opportunities for sun to be poking through on several occasions.”

COLORADO: “In two words: very good.”

IDAHO: “Optimistic. Product selection, customer service and a knowledgeable staff will be more important than ever. We have seen consumer confidence increase but people definitely expect more for their money.”

IDAHO: “Optimistically cautious, we have to run as efficiently as possible.”

IDAHO: “Our overall outlook for 2010 is ‘optimistically challenged’. I don’t expect much improvement until late fall of this year, and I really hope that happens.”

IDAHO: “Retail seems to be better right now.”

MONTANA: “Cautious with a capital ‘See’, as in, I’ll wait and see. Holding inventory and staff levels at bare minimum.”

NEVADA: “Optimistic. Since October 2009, our sales have been up 10 percent each month over the same months in 2008. So far this February (today is February 15), we are grossing over 20 percent more than this time last year in February. We are in Las Vegas, which has been hit exceptionally hard, so with all the ‘Don’t go to Las Vegas,’ hype we are getting; we are finally seeing a positive sales climate.”

NEVADA: “I anticipate customers will be more open to spending money.”

NEVADA: “I feel very good about the prospects for 2010. We have adjusted our staff levels and expenses down to where we can break even or make a little profit, operating with zero debt and have saved cash reserves.”

NEVADA: “I’m not counting on improvement from 2009 — but am cautiously optimistic that business will stabilize this year.”

NEVADA: “Conservative buying but I have positive outlook for a very modest uptick.”

WASHINGTON: “We expect a banner year with nice increases.”

WASHINGTON: “Cautiously hopeful, although nothing has given me any indication that I should have that kind of an outlook.”

WASHINGTON: “Up. Can’t be lower. We should be up 20+ percent for 2010.”

WASHINGTON: “My business plan for the year is to keep inventory and expenses down while keeping the floor full. If I see a trend, I’m going to act quickly and carefully to capitalize as much as possible.”

WASHINGTON: “It is looking better now but we have a long way to go. I am optimistic things are looking up.”

WASHINGTON: “Optimistically better than 2009. Of course 2009 was so far down from 2007, we’ll have some pretty easy numbers (hopefully) to hit. I expect a gradual, not huge increase to inch back to better sales figures.”

WASHINGTON: “My outlook for 2010 is steady as she goes…”

WASHINGTON: “For a better second half of the year with an estimated 40 percent improvement over the last six month of 2009. Customer attitudes are much more positive, and they seem to be enjoying shopping for furniture again.”

WASHINGTON: “Thankful that 2009 is behind us and with guided optimism looking for a much better 2010.”

WASHINGTON: “To see a very slight improvement over 2009 as long as we keep driving traffic with advertising dollars.”


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August 2 – 6, 2010

AGV106_WMC10_WRM.indd 1 3/1/10 3:25:04 PM


Buyers attending last February’s Las Vegas Market made the WHFA’s Retailer Resource Center, in B-1630 and C-512, must-see stops during the

market experience. WHFA’s Retailer Resource Center (RRC) saw heavy traffic throughout the week with many retailers reporting a need for new products and services.

Educational seminars continued to be a big draw for retailers interested in learning how to improve their business practices. WHFA partnered with the World Market Center to offer the successful Business Survival Academy Series Monday – Wednesday afternoons. Monday’s session featured George Whalin presenting to a full house on the Retail Superstars of America. The series ended with an insightful session by Stan Richards on Digital Branding in a Multichannel World. Richards, who has created iconic brands such as Fruit of a Loom, Home Depot and Corona, shared how companies are now using social media to create brand loyalty with their customers.

The 40 business service providers showing in the Retailer Resource Center were pleased with the consistent traffic and retailers ready to purchase new products. Each day saw strong traffic with buyers looking for new tools to help them become more efficient and save money in their business. “The RRC saw great traffic during the week and it is apparent that buyers are optimistic about the upcoming year,” said Sharron Bradley, WHFA executive director. “Many of our vendors said that this has been one of the best Markets they have had in years.”

The Retailer Resource Center will be open during the Summer Las Vegas Market, August 2-6, 2010.

WHFA welcomed the 2010 Board during the Annual Membership and Board Meeting during February’s Las Vegas Market.

WHFA’s 2009 President Marty Cramer, Cramer’s Home Furnishings, Ellensburg, WA, passed the gavel to WHFA’s incoming 2010 President Claudia LeClair, Fiesta Furnishings, Scottsdale, AZ. The meeting also welcomed Buzz Burnett, Treasure’s, San Diego, CA, Mark Flegel, Flegel’s, Menlo Park, CA, and Travis Garrish, Forma Furniture, Fort Collins, CO to the WHFA Board.

whFA welcomes 2010 board and officers

Additional photos from the Retailer Resource Center can be viewed on

the WHFA Facebook page at http://bit.ly/bL4bjF.

Las Vegas Market

Traffic in WHFA/NHFA RRC Reflects Optimism for New Year


“If you build it they will come,” applies to more than just ballparks. Successful businesses of all kinds are building their

volume with event-based marketing, and your store, regardless of size, can be one of them. Having something special draws people to the shop, gets them excited and encourages them to pull out their wallets and spend. An event is always a limited-time offer, which helps create a sense of urgency with the customers: They cannot wait until tomorrow or go home and think about it. A party atmosphere and some food also breaks the ice around the wallets and gives a much-needed boost to the economy in your store.

At our store, Leon & Lulu, in Clawson, MI, events of all kinds are our major marketing focus. We planned our space for parties and hold six to eight events each month, from our Artists’ Market to our one and only wedding reception, which will never be repeated. We have parties for kids, fundraisers, corporate soirees and last week happily hosted a 70th birthday party with a mere six celebrants. Leon & Lulu has the luxury of space and a building designed for fun when it was built as a roller rink in 1940, but a shopkeeper does not need a ballroom-sized store to have an event that will generate money and excitement.

Everybody loves a party (except my husband, who absolutely hates them), and we especially love gatherings at our store because they are fun, lucrative and, unlike parties at home, we can actually make people go home at a reasonable hour.

Many marketers and retail experts are extolling the virtues of in-store events these days,

but some shop owners are still nervous about hosting parties and special events. They worry about damage, shoplifting and liability. With careful planning and a solid plan, you can allay these fears. First, don’t worry about the scale or whether it is all too much. When we talk about EVENTS, many people think they have to call in the caterers, put up a tent and rent little golden chairs. Not so! An event can be a simple coffee, a little treat or just wine and cheese. The whole trick is to make your shoppers feel special and treasured and to host something that will work well in your space. Furniture stores are ideal, of course, because we have places to sit, room to move and a welcoming atmosphere built in.

Set GoalsWhy are you having this party? Are you hoping

to attract new customers? Showcase new product? Raise money for a charity? Often, you are trying to build your brand and the actual sales may come later. Other events really bring in the cash (which is a good thing). If you know what you are trying to accomplish you can judge the results.

Choose a Time and DateThe right time is crucial for attendance, so

consider your audience and their schedules as you plan. Some events are better after store hours, but many can be held while the store is open. Will it be private or open to the public? Be sure to leave enough time to promote the event and get the word out.

Mary Liz CurtinLeon & Lulu writer, speaker and co-owner

Events Make the Store: A How-to Guide

It’s All About Sales and Marketing

Photos from events at the Leon & Lulu store.


Analyze Your SpaceWhere will you serve the food and

drinks? Can shoppers roam everywhere? Where will you locate the bar and buffet? I suggest allowing your guests to have the entire store, but to keep the food and drinks in one or two areas. Will everyone have to gather for a presentation, raffle drawing or announcements? If you have a band, DJ or entertainment, choose their spot carefully and allow for electrical outlets, enough space and maybe even a stage.

MenuYou are always wise to serve more of fewer

things, rather than small amounts of lots of foods. A bountiful array will look more glamorous and be easier to keep looking fresh. For an evening event, wine and cheese is a classic that always works, as does coffee and pastries. During the day, coffee and cookies or pastries are great. I always add a big pile of grapes or strawberries regardless of the time of day because the bright color really makes the display look great.

If you plan to entertain in the store frequently, invest in the equipment you will need. We have a restaurant coffee pot, which is fabulous. It brews quickly and the coffee is not only very good but quite inexpensive, which is important since we serve it all day, every day. Because we serve “traditional roller rink food” often, and have a snack bar, we also have a hot dog steamer, popcorn popper and Otis Spunkmeyer cookie oven as well as the luxury of a dishwasher and a big freezer in the warehouse. You probably don’t need all these items, but a good ice chest and coffee pot are essential. Popcorn also gives you a lot of bang for your buck and it smells terrific.

continued on page 24

Don’t Know Where to Start? Here are a few ideas that have worked well. Please use them as a starting point for your own ideas… or just use them!

Charity eventsPartnering with a deserving non-profit is a great way to bring new

customers to your store, and the people who support charities are usually great customers. For many events, the party planners are thrilled to have a new venue and will pay for the catering, valet and other expenses. When we hold charity events at Leon & Lulu, we donate the use of the space and 10 percent of the night’s sales. We allow silent auctions, raffles and just about anything they want to do to raise funds.

Some big benefits may be held after hours and include an admission charge. They can be a lot of work, but often generate traffic and lots of press.

Sometimes the pay-off is later (or not at all) as not every one will shop. But if they have a great time, they’ll come back to shop and bring their friends.

Private PartiesIf you have the room, think about allowing people to hold parties and

showers in your space. We never rent the store, but require a $150 donation to a charity for the privilege of using our space. The parties are held when the store is open and add a festive air to the shop. We ask that the hostess share any refreshments with the staff and any shoppers and it has worked very well. The shopping at these events is usually minimal, but the returning customers make this more than worth the effort.

Girl’s Night OutThere is nothing like night out without the kids and husbands. Any

excuse for a Ladies’ Night is a thrill for most women with families. If you can make it a regular event, your shoppers will look forward to it.

Invite other local businesses to share their expertise, add a fashion show or palm readers. The fun is the point, and the sales will follow.

Halloween PartyThis is so easy. Just offer a prize to every child, grown-up or dog in

costume. Have your staff dress up and serve cookies and cider. Be sure to have lots of candy!

Holiday Open HouseThis is always a winner! Early in the holiday season, invite your

customers for an open house to see the exciting new seasonal items, home decorating ideas and hot gifts. Some stores offer a small discount during the event to push sales, others give party favors or gifts with purchase.

Educational EventsWhat can you teach your customers? Craft classes, decorating tips,

how to arrange furniture… talk to your vendors and reps for more ideas. Learning combined with fun is a recipe for a great evening.


Catered affairs are another situation entirely. For a fancy event, having someone else do the cooking and serving is an excellent idea. Always have a walk-through with the caterer before you order the food so you can decide how and where you will serve it. We prefer to use dishes from the store instead of the caterer’s trays, so we give the bowls and platters to them ahead of time and never have to transfer food. We also have plates, flatware and wine glasses, so the rental costs plummets and the parties are nicer since we do not use plastic.

When you are working with a party planner or charity coordinator, show her the entire space and tell her what you can and cannot do to accommodate her guests, food service and entertainment. Be frank and detailed up front to avoid confusion the day of the event.

InvitationsHow will you get the people to your party?

The least expensive way to invite them is by email. If you are working with a charity, be sure they invite everyone on their list so you make new friends… and customers. If it is a public event, press releases are a must, from you as well as the charity.

ParkingWhen you are expecting a crowd, you may

also expect a traffic jam. Put parking instructions on the invitation or provide valet service if the budget allows.

HoursAlways put an ending time on your

invitations, but expect to be in the store for up to one additional hour. At charity functions, the actual shopping usually happens in a big rush at the very end (usually right after I have let my son escape for the evening) in a chaotic rush. Plan your staffing accordingly.

LiquorIf you serve wine or other alcohol, check your

local laws carefully to see if you need permits or licenses. Always watch your guests carefully for signs of inebriation. We recently decided that if we hear one straight man say to another “I love you dude, I really do. I mean it, man” we close the bar. If you do not serve alcohol, consider one of the many non-alcoholic “designer drinks”. They add a festive atmosphere.

Don’t ForgetAlways buy extra ice, wine napkins and cheese.

It couldn’t hurt.

LimitationsDon’t try to overdo it. Learn what works for

your space, budget and customers. A fabulous small party is better than a not-so-great large one.

Take NotesAfter the event or even during the event write

a few notes about what worked and what did not. If the event is good, DO IT AGAIN. My theory is that the first time is just a party, the second time is better and the third time you hold an event it becomes a tradition.

You Are in ChargeThese events get better and easier as you do more

and more of them. You will also learn what works well in your store, so don’t let any party planner try to make you do something you don’t want to do. Always remember that it is a privilege to have a party in your store and an honor to attend.

Benefits, parties and special events have put our store on the map. We have made new friends, increased our customer base exponentially and built a reputation as a store that gives back to the community.

You can do it too. There are very few spills, we’ve had only minor damage to products (a few scratches on table tops) and the cost is affordable.

continued from page 23


These are a great trade-off for the word-of-mouth advertising we have received for most of these events.

Having a party, fundraiser, open house or any kind of special occasion is a great motivator for your staff as well as your clients. Knowing that the big day is coming spurs everyone to clean up, re-merchandise and make the store sparkle, giving the entire shop a lift. Don’t be afraid to get a little more far out; have the staff dress up, invite the neighborhood dogs, go out on a limb. You, your staff and customers need a little fun, and we all certainly need the business.

Mary Liz Curtin is a writer, speaker and the co-owner of Leon & Lulu, a 15,000-square-foot destination furniture gift and accessory store located just outside Detroit. They attribute a great deal of their success to the constant stream of parties and events in the store. For more information about events, visit her website at www.marylizcurtin.com and www.leonandlulu.com.

Come hear Mary Liz Curtin

speak at the

May 2-4

www.WHFAconference.com


Program of the Month

As the economy slowly recovers in 2010, the furniture industry is starting to see glimmers of hope with fewer negative

returns and even some new store openings. “Furniture is the front end and the back

end of a recession,” says Susan Barnett, industry marketing manager for home furnishings, GE Money. “Furniture isn’t a mandatory purchase, so it’s the first to be hit because it involves discretionary spending, and it’s also the last to recover. “

To survive this negative economic cycle, retailers have had to look at their business differently and use a combination of factors to keep sales at acceptable levels. That meant aggressive marketing and financing promotions to make furniture purchases a possibility again. Consumer credit programs enhance consumer buying-power, enabling them to purchase the furniture they really want. Likewise, making financing programs more efficient and effective will help boost furniture sales. Offering financing is more important than ever, as credit from other sources like bank cards becomes harder to get.

Knowing that retailers needed extra assistance to start growing their business again, GE Money launched its Business Center last summer. The one-of-a-kind online portal provides access to a comprehensive suite of business tools, including real-time sales data, customer lists, marketing materials and training programs. The password-protected Business Center site allows retailers to access and manage customer and sales data quickly and easily. Store owners and managers can track sales by employee and produce reports with only a few key strokes. They also can create customized direct mail pieces based on their most recent sales data. From a management perspective, the Business Center is a one-stop source for marketing programs and sales information.

Consumer Financing OptionsHelping Retailers Recover from Recession

The Business Center is especially relevant given the enactment of the 2009 Credit CARD Act into law. Some of the regulations took effect in August 2009, but the majority of the regulations take effect between February and July 2010. The passage of that law and other new government regulations and guidance are driving sweeping changes to the credit card industry and consumer finance revolving programs. The most important changes require that all applications and sales materials be updated with new disclosure language, and that all promotions that require “No Payments” and/or “Less Than Six Months” go away.

“By using the GE Business Center, I’m immediately compliant with all the new credit card regulations and can focus my energies on selling. It’s a great way to process all my sales,” said Theresa Russell, customer service manager, at Mattress Land by SleepFit. “Even better, as additional new regulations go into effect, I know that everything I access on the Business Center is compliant. That takes a huge load off my mind.”

Designed specifically for retailers, the Business Center is focused on ease of use and simplicity.

“The Business Center gives retailers the right materials at the time of sale,” Barnett said. “We want to be the tool they use to grow their business.”

To access the GE Money Business Center, register at www.gemoney.com/business.

Celebrating 20 Years

In 1998, Dave Lane hired me to take over for Don Meadows as communications director.

I started on a Wednesday and Don’s last day was that Friday. I had three days to learn all there

was to know about creating and publishing a 24-page, two-color monthly magazine, along

with the many other marketing pieces, directories and brochures produced by the association.

The only problem was I had, up until that point, never published a magazine in my life. I had

come from the ad agency world. I was well-versed in the ways of marketing, photography and

print production, but I had never put all those skills together to produce a magazine. With the

firm hand of Dave Lane, the generous and patient help of then production coordinator Melissa

Robinson (now the current publisher), and a few very late nights, we muddled through our first

few issues together.

Shortly after publishing my first Western Reporter (now known as Western Retailer), I had

the good fortune to travel to the WHFA Annual Conference in Puerto Vallarta. That was my

WHFA launching point. I traveled to PV with much trepidation, because I was replacing the

much beloved Don. I entered my first Board of Director’s meeting and sat quietly most of the meeting. Afterward

Cherie Rose (owner of The Rose Collection, Los Gatos, CA) came up to me, looked me in the eye and said, “You’re

going to do great things here, we are lucky to have you with us.” That sincere statement gave me the confidence and

passion to take on this challenge.

We set off to build the Western Reporter into a premier industry publication. My first task was to recruit new

advertisers. To do that we needed to make the magazine more and more valuable to our members and the advertisers

would follow. We began revamping the look and feel, adding more photos, and encouraging (read begging) better

writers and industry professionals to do articles for us. All these things happened and the magazine grew in page

count and color. During this building time, I was fortunate to usher the Western Reporter into the digital age. When

I began, we were dealing with bulky film negatives, but we soon moved everything to digital; changed the desktop

publishing software, increased our use of photography and expedited our time to press. We still struggled to get

everything done (especially the monthly President’s Messages) but we had a very supportive Communications

Committee with the likes of: Larry Wolfe, Jerome James, Ronnie Bensimon, Bob Ammirato, Ron Hoesterey, Giff

Gates, David Harkness, Howard Haimsolm, Mary Anne Levitt, and so many others great retailers.

More change was coming for the Western Reporter and the industry. The San Francisco Market was moving to

Vegas, the WHFA website was growing in prominence and effectiveness, electronic was beginning to edge-out print

and the association was growing into new programs and states. And during this time of change, we lost our long-time

mentor and boss, Dave Lane. I feel honored to have had the privilege to work with him. To his credit he was able to

pass on his vision to Sharron Bradley who has continued the incredible work he began and she has improved upon it

and made it her own.

When I left WHFA in 2004, the magazine was humming along at 48-64 full color pages per issue, we had many

long-term advertising contracts, we won multiple awards for our creativity, had some national press attention (Parade

Magazine), and a great team in place that had the skills and passion to keep the magazine interesting, relevant and

valuable to the members for a long time to come.

As I wrap up this article (I feel the deadline approaching) and reflect on my time at WHFA, Cherie Rose’s sincere

words come back to me, and I must tell you that it was I who was lucky to be with them.

Best wishes and much success to you, Western Retailer magazine!

Chris Tejeda

Twenty years ago, Western Retailer magazine (then known as Western Reporter) blossomed from being a small newsletter, to a full magazine. Join us throughout this year as we look back at the last 20 years with stories, past articles and fun.

Celebrating 20 years of Home Furnishings Reporting

Chris TejedaWestern Reporter editor/ publisher 1998-2004

retailerContact WHFA at www.WHFA.org or (800) 422-3778. April 2010 27western


When they are not enforcing company policies, getting rid of an employee who simply doesn’t feel like a “good

fit” for the company, or just trying to save a little money, an employer’s good intentions easily can lead to frustrating employment disputes or costly lawsuits. Over the past three years, there have been dramatic increases in employment lawsuits related to wage and hour violations, wrongful termination, discrimination, violations of protected employee leaves such as Family Medical Leave, non-compete or non-solicitation and employer retaliation.

This trend is predicted by many to only continue increasing due to a still lagging economy and an often unpredictable financial landscape. According to the recent Fullbright & Jaworski LLP 2008-2009 litigation trends survey, even specific types of businesses are statistically shown to have greater potential legal exposures than others in terms of percentage of employment lawsuits filed against them. For example, retailers who often use seasonal or part-time employees ranked very high statistically for wage and hour and disability discrimination complaints.

The three most legally contentious areas for employers today appear to be wage and hour,

termination of employment and discrimination related issues. The following includes general overview of these three areas of employment that businesses need to administrate and a few recommendations as to how to help avoid potential complaints or litigation related to these areas of the law.

Wage and HourWage and hour lawsuits are often very

complicated and very costly. They are most often based on either misclassification of employees (exempt, non-exempt, independent contractors) or “off-the-clock” type complaints. Keeping accurate and proper time-keeping records along with employee classification support documentation is critical when defending against these types of complaints. Developing properly written job descriptions defining job responsibilities along with detailed information respective to the percentage of time an employee regularly performs individual job functions is also strongly recommended for employers.

Employers should probably also conduct a wage and hour audit at least once a year to ensure their pay practices are in compliance with federal, state or local laws. Owners may wish

AvOidiNg THe MOST COSTlY MiSTAkeS MAde bY eMplOYeRS

Top Reasons employers get Sued

Operational Excellence

Eric Martin, MBAAmerican Consulting Groupsenior vice president


to stop and consider that the cost of having an attorney or HR consultant/specialist assist your business with developing proper wage and hour compliance systems could save their business tens of thousands of dollars in the long term.

Next, HR managers and owners should begin to realize their workforce as “exempt” and “non-exempt” rather than “salaried” and hourly employees. Many overtime complaints stem from an employer’s perceptions or misunderstanding specific to the Fair Labor Standards Act as it relates to “exempt” definition. Improperly classifying employees is all too common in both large and small businesses and proven to be an easy legal “target”.

Take complaints of wage and hour violations just as seriously as you would claims for sexual harassment. Also make sure that your business develops properly crafted policies respective to hours of work and payroll practices. Write policies correctly, implement effectively and enforce these policies consistently.

Termination of EmploymentTermination of employment protocols within

a company should be well thought out. Today, terminating an employee is a serious decision. Maintaining thorough documentation and developing a centralized decision making model within the business to handle terminations is highly advised. Training managers and supervisors how their actions, or inactions, can potentially either reinforce or complicate a termination of an employee can help a company limit additional legal exposures.

Questions such as whether the termination will come as a surprise to the employee, whether the employee’s file has been properly documented with well-written disciplinary warnings or performance reviewed, whether the employee is a member of a “protected class”, or considering if there could be a potential claim for retaliation should be answered before conducting a termination.

Developing properly written at-will language included in offer letters and employee handbook policies is very important as well. If the business uses severance agreements, understanding how to properly draft such agreements in order to make such an agreement enforceable while also effectively releasing any potential bias claims is something employers should understand. Simply borrowing someone else’s old separation agreement or downloading one from the Internet is probably NOT the smartest way to go.

Each termination of employment should be considered case-specific in terms of individual circumstances and profile. The employer

maintains the power to choose the time and the place when to conduct a termination and therefore should theoretically be able to mitigate potential legal exposures as a result.

Discrimination Related IssuesDiscrimination claims based on religion,

race, disabilities, age, nationality and sex have also been increasing steadily in past years, according to statistics collected by the federal Equal Employment Opportunity Commission (EEOC). As Federal and State laws continue to dynamically change, employers need to be extremely more cautious when it comes to trying to avoid charges of disparate treatment or potential discriminatory practices.

For example, as workplaces become more diverse, employees have increasingly different religious views that often are viewed unfavorably by managers or other employees. Laws relating to accommodation, for either injured workers or applicants and employees with disabilities, continue to become further reaching and more difficult to interpret.

Employers should be very aware of their obligations (states such as in California, they have even more stringent employment laws than at the federal level) to train employees and supervisors, post required information and policies within the workplace, create and communicate proper employment policies, to communicate anti-discrimination policies to all employees, to maintain timely and effective investigative procedures for any discriminatory complaints and also administrate company anti-discrimination policies consistently.

�0 April 2010 Contact WHFA at www.WHFA.org or (800) 422-3778.western retailer

Advertisers IndexPlease support the advertisers that support your magazine.

Advertiser Page Phone

Advertising Inquiries & RatesContact: Cindi Williams, WHFA Advertising Manager,

500 Giuseppe Court, Ste. 6, Roseville, CA 95678. (916) 960-0277 E-mail: [email protected]. Subscriptions: $35.00/year, USA.

Published by Western Home Furnishings Association, a Na-tional Home Furnishings Association affiliate, in the interests of retail home furnishings dealers, manufacturers, distributors and salespeople.

Distributed to home furnishings retailers handling furniture, accessories, bedding, floor coverings and specialty home furnish-ings in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming. Mailing list compiled by WHFA.

Official publication of Western Home Furnishings Association, which is responsible for editorial content and advertising policy. The views expressed in articles appearing in Western Retailer are not necessarily those of Western Home Furnishings Association. Western Retailer magazine is copyrighted by Western Home Furnishings Association. April 2010, all rights reserved.

Western Retailer: Read by furniture retailers in the West

Distribution:Western Retailer is read by more than 10,000 home furnishings

retail store personnel handling furniture, accessories, bedding, floorc overings and specialty home furnishings in Alaska, Arizona, California, Colorado, Hawaii, Idaho, Montana, Nevada, Oregon, Utah, Washington and Wyoming.

Marketing Philosophy: Western Retailer focuses on business market trends in the

furniture, bedding, flooring and accessories industry. It highlights sales, marketing, operations, showroom design, trends, succes-sion planning and industry events.

Diakon Logistics ...........................................25 ................... (877) 700-4297 x215

Emerald Home Furnishings ..........................2 ............................. (800) 685-6646

Furniture Wizard ...........................................17 ............................ (619) 869-7200

GE Money ......................................................9 ............................. (866) 209-4457

Las Vegas Market .........................................20 ............................ (888) 416-8600

Micro D ..................................................Back cover ..................... (800) 964-3876

PROFITsystems, Inc. ................................ 4 & 31 ......................... (866) 453-5010

WHFA 2010 Conference ...............................7 ............................. (800) 422-3778

Businesses should implement procedures for employee or applicants requesting accommodation including having an “interactive process” or policy to “meet and confer” for the purpose of obtaining and sharing information. Understanding employer rights respective to requesting additional medical evaluations and knowing which questions can be legally asked while trying to determine possible accommodation for employees is very important for employers and managers to become familiar with while trying to prevent legal complaints.

Additionally, the 2008 ADA Amendments Act (ADAAA), (which took effect January 1, 2009), definitely broadened the application of the ADA. This legislation redefined and liberalized who is actually considered to be disabled under ADA. Since the ADAAA may also potentially impact administration of leaves such as workers’ compensation or Family Medical Leave, employers should also consider centralizing all decision making when it comes to matters such as medical issues and determining an employee’s condition as it relates to protected leaves of absences.

Many employers still do not yet understand the importance of developing and maintaining a properly written employee handbook that includes well drafted

anti-discrimination policies to protect the company and its managers (EEO, Harassment, and ADA/FEHA). Annually reviewing the company’s management training programs specific to educating supervisors about new court cases or laws potentially affecting their administrative responsibilities is also a good idea.

Lastly, reviewing your company’s internal investigation procedures is strongly recommended.

In summary, employers should remain extremely proactive about safeguarding their business from costly and frustrating lawsuits or investigations. Systematically taking proper preventative measures to maintain compliance and legal employment obligations can potentially save a business valuable time and significant costs.

American Consulting Group offers a FREE service to WHFA members. This valuable phone consultation service will help members solve human resource, employer issues, and environmental safety compliance issues you may face. Call Eric Martin, MBA and senior vice president at (949) 452-1840 X 237.

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Sell more furniture, more efficiently, online and in-store.n ePreVue – to stand out on-line and sell more custom furniture

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april 2010 western retailer

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