Company is a 20+ year furniture retailer with multiple store locations in eastern Massachusetts. Home furnishings available include bedroom, dining room, living room, and office furniture along with lighting and decorative accessories. The Company’s strengths include its pricing, stylish product differentiation, and controlled supply chain. The Company also offers a free layaway plan and quantity discounts for packaged products or multiple furniture pieces. Currently the Company is improving the customer experience by integrating online and smartphone use as well as better store presentation. Owner has identified potential existing store upgrades and a few new potential store locations.
The Company provides style at a reasonable price and designs that are different from or unavailable at competitors. This product differentiation has allowed the Company to identify a niche and opens up opportunities for growth.
Due to its smaller size, the Company can more easily react to style trends than its larger competitors.
The Company has invested heavily in back-end infrastructure that can easily support a $20-$30 million business
: Growth opportunities include further advertising and marketing and expansion into new retail locations:
1. A new powerful ecommerce site will go online in 2Q 2014.
2. The Company is implementing more organized and streamlined web marketing using a professional consulting company.
3. Some advertising on major television stations is being initiated; previous television advertising was limited to ethnic cable stations
4. Additional sales and administrative staff have been hired to generate and support increased sales
: U.S. retail furniture stores represent a $50 billion industry with approximately 17,000 companies. The larger U.S Retail Furniture and Home Bedding market represents $75 billion in annual revenue. The industry is highly fragmented - most industry operators do not account for more than 5% of market share and the top four players account for about 10% of the total market. An improving U.S. economy, continued recovery of housing, rising consumer sentiment, and expected growth in per capita income will help drive furniture demand in the coming years with industry revenue expected to grow in the five years to 2018. Improved customer service, brand awareness, and increased financing options will help differentiate companies from the competition.
: Four retail locations in Massachusetts. Four buildings comprise 157,000 square feet, including main warehouse.