Home Fashion Forecast - Winter 2008 - (Page 18) retail lessons: all the right moves HOM adapts its product assortment to satisfy consumers’ desire for new design solutions, such as pub- and bistro-height dining tables. explained. “We’ll put more money into an update of the building than we actually paid to own the building. This is a fashion business—asking the consumer to buy product from a tired-looking store isn’t cool.” Categories the Customer Wants “We look at the categories to which customers are moving their dollars, and we market those categories,” he said. A recent example? “The only home furnishings category that is growing with any significance right now is the sleep category. People are more health conscious and willing to spend the money on better sleep, thanks to companies such as Tempur-pedic® and Select Comfort Corp. They build awareness and teach people that it’s okay to spend $2,000, $3,000 or $4,000 on a mattress. HOM has become active in this category, specifically with our Sleep Express program.” The minimally appointed vignettes in HOM stores keep customers’ focus on the furniture. Promotion & Advertising “Successful furniture brands are promoting all the time,” Johansen said. HOM is a “serious” advertiser in local newspapers, magazines and television. Make New Customers, Keep the Old “It’s easy to open stores and grow your business through advertising, but it doesn’t mean the store will be profitable,” Johansen advised. “What is harder to do is to grow business and maintain customers. We have been putting a lot of energy into this effort.” The bottom line is that HOM is in strong financial shape and able to withstand the temporary downturn in the furniture market, according to Johansen. However, he said long-term success will continue to hinge on the company’s willingness and ability to change with its market via a fluid product mix that is right for the times. The good news is that this is exactly what Johansen said his team has been doing for the last 25 years—maturing and refining the retail concept to coincide with customers’ needs. HOM’s Uptown Urban brand conveys casual comfort. 18 HOME fashion forecast
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