Retailers operating stores dedicated to a single vendor say that despite some drawbacks to running one line, their vendor partners are proving their worth during a difficult retail climate.
While they face some limitations in terms of pricing flexibility and product offerings, mutual commitment makes for a something akin to marriage and all the “for better or worse” implications that entails.
“In this business climate, La-Z-Boy has become much more progressive,” said Brad Parker, president of La-Z-Boy Furniture Galleries of Portland, in Tualatin, Ore. “They were an old-school company, but in the last few years they’ve grown much more receptive to new ideas. I don’t know if it’s the business climate as much as they’ve realized that we’re all in this soup together.”
Parker, a La-Z-Boy dealer since 1995, now operates six store fronts.
“Since I’m on the West Coast, we tend to do some more innovative things, and we’ve brought them to La-Z-Boy,” he said. “They’re listening more now.”
HOW MUCH LEEWAY? One of the most important points in their decision to go with a dedicated store network for the retailers interviewed involved the amount of operational and merchandising freedom they could expect in the relationship. That varies among programs, from Ethan Allen, which insists upon a consistent store presentation to guaranteed quality of consumer experiece, to Ashley, which depends on licensees to choose from its broad product assortment to tailor the business to local operators’ knowledge of their own markets. Both approaches make sense for the companies named, but do they work for your philosophy?
Jerry Kiser is president and owner of Ethan Allen Interiors in Columbia, S.C., and as former La-Z-Boy CEO has exposure to two of the biggest dedicated store networks in the industry.
“The way I look at it, it’s more of a partnership and cooperative effort,” he said of his Ethan Allen relationship, which he feels gives him enough leeway. “They don’t try to run our business, and it’s even more important right now to make those management decisions to keep your cost structure in line: local marketing budget, what you can afford to do; align staffing and services to get cost structure in line with current business versus what you’ve done in the past or project for the future.”
While they face some limitations in terms of pricing flexibility and product offerings, mutual commitment makes for a something akin to marriage and all the “for better or worse” implications that entails.
“In this business climate, La-Z-Boy has become much more progressive,” said Brad Parker, president of La-Z-Boy Furniture Galleries of Portland, in Tualatin, Ore. “They were an old-school company, but in the last few years they’ve grown much more receptive to new ideas. I don’t know if it’s the business climate as much as they’ve realized that we’re all in this soup together.”
Parker, a La-Z-Boy dealer since 1995, now operates six store fronts.
“Since I’m on the West Coast, we tend to do some more innovative things, and we’ve brought them to La-Z-Boy,” he said. “They’re listening more now.”
HOW MUCH LEEWAY? One of the most important points in their decision to go with a dedicated store network for the retailers interviewed involved the amount of operational and merchandising freedom they could expect in the relationship. That varies among programs, from Ethan Allen, which insists upon a consistent store presentation to guaranteed quality of consumer experiece, to Ashley, which depends on licensees to choose from its broad product assortment to tailor the business to local operators’ knowledge of their own markets. Both approaches make sense for the companies named, but do they work for your philosophy?
Jerry Kiser is president and owner of Ethan Allen Interiors in Columbia, S.C., and as former La-Z-Boy CEO has exposure to two of the biggest dedicated store networks in the industry.
“The way I look at it, it’s more of a partnership and cooperative effort,” he said of his Ethan Allen relationship, which he feels gives him enough leeway. “They don’t try to run our business, and it’s even more important right now to make those management decisions to keep your cost structure in line: local marketing budget, what you can afford to do; align staffing and services to get cost structure in line with current business versus what you’ve done in the past or project for the future.”
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