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PAGE 8
Busi
*
Sustained market demand in
the furniture industry offers
attractive opportunities for new
business development in the
furniture retail field. With rising
incomes, increasing population,
-?1_ and nexrhnusing predicted for the
1.970's, furniture stofe sales are
expected to rise throughout the
decade ?r
J(ey ?determinants : of profitablity
in the business
include the ability to select styles
and lines which appeal to
customers, ample floor space to
rlienlotr i
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sales force, and access to a line of
credit with which to finance
purchases on relatively favorable
terms. Managers must also give
close attention to control of key
.elements ef cost, s^ch as
inventory, advertising, wages
and rent. Undercapitalization
and shrinkage of working capital
are major causes of failure.
. There are many sourdes of
information and help in furniture
retailing, .organizations such as
the National Home Furnishings
Association provide members
with assistance in store layout,
advertising, sales training, and
cost control. There are also many
professional buying
organizations which can help in
the selection of proper
merchandise. Thus, an individual
who has a flare for retailing,
- management/ skills, and a
fundamental knowledge of
interior decoration shduld be ableto
establish and operate a
furniture store successfully,
provided he has picked his
location carefully and is properly
financed.
II. DESCRIPTION
A. Identification
Furniture stores Standard
Industrial Classification (SIC)
5712 are* described as
establishments primarily
engaged in the retail sale of
household furniture. Many such
stores also sell floor coverings,
major appliances, and such home
furnishings as lamps, draperies,
v decorative art objects, and
v mirrors. Types of furniture sold
include upholstered furniture
such as chairs and sofas, wood
pieces, bedding, dining room
pieces, dinettes, children's
furniture, and the like.
B. Dimensions
There are presently about
27,000 furniture? stores in the
United States and, in addition, a
great number of department and
discount stores which handle
furniture as part of their product
line. The industry is a major
factor in the economy, with 1967
retail sales amounting to about
$6.5 billion and a 1967 payroll of
$231 million for the 180,000
fnrrtitiiro. rotoil
i ma iiiKUl V & V* VCI1 A ^11 CCS*
Industry sales are expected to
rise to $9 billion by 1975,
reflecting growing income,
increasing use of credit (making
possible the financing of
additional furniture purchases),
and construction of new housing.
The family formations which will
occur as the members of the baby
boom of the early 1950's reach
adulthood are expected to bolster
furniture demand for iriuch of the
decade.
The furniture retail industry is
still characterized primarily b>
the small retailer. About three
out of every four stores had fewei
than than 20 employees. The
predominance of the small store
is also reflected in salesfigures;
one out of every five stores does
more than $100,000 of business
annually and only one out of 20
stores has sales exceeding
$500,000 per year.
The trend in the industry,
nevertheless, is towards larger
stores. Especially in urban areas
with adequate markets, furniture
stores are expanding products
lines so as to better service the
total furniture needs of the more
affluent customers. This trend
can be inferred from the fact
that, though the total number of
1
iness Pro
stores has not changed
significantly in recent years, the
total number of employees has
grown considerably.
C. Characteristics
1. The Product and the
Customer
A complete furniture store will
display -and sell living-room
furniture, including sofas, chairs,
recliners, convertibles,
credenzas and tables; bedroom
furniture, including beds,
mattresses, .and springs,
dressers; and night tables; dining
tables ;dinettes,floor coverings,
children's furniture, major
appliances, decorative, art
' objects, mirrors, clocks, porch
and outdoor furniture, odd
chairs, hassocks Heske norH
, ^ v? VMk VA
tables, bars, ^nd lamps. A
furniture/store sells a way of
living and' life style to its
customers. Most homemakers
have great aspirations for fixing
up their bomes to their hearts'
desires. Their homes are not only
to be used, but to be displayed.
Women take pride in their homes
and like to show them to others.
To ; many families, a home
symbolizes. success and "the
good life."
The homemaker usually has
plans for a change or for
improvement. Items to be
purchased Hre Seldom bought on
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home and with friends. Almost
two-thirds of all purchases are
made to replace items already
owned. Convenience in shopping
is a relatively minor factor.
Families will make a furniture
purchase in the store where they
feel they will get the most value
in appearance and style for the
amount of money they have
available.
Most purchases of furniture
involve a relatively large
commitment of the family funds,
and two-thirds of all purchases
are made by a husband and wife
buying . together. Credit is
generally involved in the
purchase. Many stores finance
credit sales themselves and
make an additional profit
f V\OI?nK? 7 ? ?
viiwcuj. vtuci a sen a portion
of their installment "paper" to
financial institutions.
The salesman is important to
the furniture buyer. She asks his
advice on color, texture,
groupings. She is often unsure of
how a particular piece will fit into
grouping, and she will seek
confidence from the salesman
that her choice is a good one. A
furniture retailer who has sold
customers quality merchandise
in thp nast ran nftnr
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| LABC
I WAI
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I The city of Winsi
I employing Laborer.
I work at the Archie
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1 APPLY li
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V An Equal Oppt
4
WINSTON-SALEM CHRONICLE
file: Fur
customers returning,
particularly if the relationship is
maintained on a satisfactory
basis while the installment
payments are being made.
Almost half of all families in
-theHEJnited States earning over"
$4,000 annually will make at least
one purchase of an item of
furniture (including mattressesbedsprings
and floor coverings) a
year. About one out of every 10
customers is under 25 years of
age, and about 15 percent of the
customers are over 55. Well over
half of the customers are in the
~ F oriy percdrit "5f the customers
win own their own homes.
Eighty-six percent of thepurchases
will be for homes and
the balance for apartment units,
although with the rising, number
of apartment units being built,
this ratio should change in the
coming years. It ?hould also be
kept in mind that these
percentages are on a national
basis and could be expected to.
vary in specific areas.
Most customers learn about a
store from discussions with
family and friends, window
shopping, or advertising. Many
get specific ideas From furniture
ads in magazines, from magazine
articles, or from seeing
furnishings in other homes.
Most customers do not buy by
brand name, and many are
unable to quote a brand name.,
The main reasons for selecting a
particular store, are store
reputation, price, and
assortment. Store reputation
counts most heavily among
shoppers in specialized furniture
stores, while price is a more
important factor, among chain
department store shoppers. The
average sale in the furniture
industry is about $160.
2. Operations
The successful furniture
retailer should have these
attributes:
a. Taste and Skill in Selecting
and Displaying Merchandise.
The ultimate determinant of
whether or not a sale is made is
whether the customer is
attracted to the product. The
owner-manager must see to it
that his merchandise will appeal
to his market and that it is
displayed in a way which will
induce his customers to want the
merchandise for their homes.
b. Good Salesmanship.
Retailing is basically selling. An
order-taker will not do for a
furniture store. The salesman
must know his merchandise and
.how to sell. * ,
c. Ability To Learn and Keep
Abreast . of Changes. The
successful furniture retailer
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ton-Salem is I
s to perform outside i
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must be willing and able tp learn
from published material' on the
industry and successful practices
in retailing, and he must Be
sensitive to changes in style and
_ taste. , - -- ?
ri Hnrri Work and Attention to
Detail. There are many things
which can go wrong in retailing.
Deliveries aren't made on tiffie.
Credit accounts are not handled
properly. Merchandise is
damaged. Inventory is shrinking
without explanation. Displays
need to be changed. Overstock
needs to be reduced. Advertising
""promcrtio^^ The
owner of a retail store must be
~~ alert to all'these matters. He
must watch his cost ratios. He
must pay his bills and collect his
outstanding accounts. He will
have to work long hours and at
least 6 days a week.
e. Ability To Understand and
Make Decisions on the Basis of
Figures. A successful merchant
must be sensitive to his books and
accounts so^that he can
determine the actions which
make money for him and those
which are losing propositions.
Basically, these decisions can be
made on the basis of an analysis
of his sales and costs. But the
individual, who does not easilv
understand accounts and
numbers may find-it difficult to
understand what is happening to
The Chronicle can 1
following locations:
-Roseboro's Communi
843 N. Liberty St.
-Our Shop
3045 N. Patterson Ave
- Anderson's Beauty S
604-A N. Trade St.
- Parrie Beauty Salon
2234 N. Patterson Ave
- Andrews Place
120 Northwest Blvd.
I - Bantam Food Marke
- -835 Northwest Blvd._
Kampus Kitchen
344 S. Clairmont St.
- Model Pharmacy
1225 E. Fifth St.
- Student Government
Student Union
- Lil General
2312 N. Patterson Ave
fMcCRl
I 432 N. Liberty St. F<
I MCCRORT -"niipiiN
? I I
ill! FREE bo;
11pi With This Coupon And Pure
| j Our Groc<
|| | McCrory Store 42
j-!lzibccs5gy~c5u??.
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v?- _ "P '
S *{ ANY AFRO OR
JU-j PERMANENT BY JOHN
j^J This Coupon Ej
1 gj J McCrory Store ~
McCRORY'S
i
OCTOBER 10, 1974
>res
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his business.
A good sales force is essential
to successful operation of a
furniture store. This requires
continuous training. A good
salesman will like to work with
mt^nmprg and will be
appropriately patient while the
homemaker ponders her
decision. The salesman must'
know his products thoroughly; he
must know the essentials of
interior decoration, such as color,
texture, form, arrangements,
and space requirements; and he .
must know how ^communicate
a helpful and constrTcnve^^
manner whiclr leads to a sale:
There are different
a ppananmam40 f/v? _ ?
M? ? Miigvnitnw lilt tUUipeilSclUUn.
Some stores have a commission
arrangement for salesmen;
others have a straight salary;
and others have a combination.
Salaries vary considerably from
place to place and depend a good
deal upon the experience of the
salesman. Thus an inexperienced
salesperson in a relatively low-6
wage area might recive $80 to $90
per week, while a topflight
experienced salesperson with
interior decorating skills in a
higher wage area might receive
as much as. $12,000 to $14,000
annually. . .? *
See Business Profile - Page 12
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Association, WSSU I
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721 N. Patterson I
DRY'S:
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base of $3.00 or More From igi |
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12 N. Liberty St. I |
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SON PRODUCTS CO. i
tpires 10-31-74 |?|l
432 N. Liberty
ISl-SSHSSZZZI JS
Downtown I
9;30 To 5;30J)oily^ j
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