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Consolidation, economic slowdown take their toll on home furnishing industry
Sunday, February 03, 2008

The middle of an economic slowdown, not to mention a national housing slump, would not seem to be the time for a furniture chain to downplay advertising about low prices and easy financing.

But Roomful Express, a 13-store Pittsburgh home furnishings chain, is trying for the first time in a long time to create a brand personality that will be more memorable than turning up the volume to deliver offers about 36 months, no money down.

There's something amusing about watching a recliner make smooth conversation with a woman strolling through a park. "I'm soft and cuddly," it says in a deep male voice. "I'm a great listener." Finally, he begs her to take him home with her.

In another of the retailer's new TV advertisements, a chair scolds a man for not giving up his seat on it for a lady. The announcer notes that this is "really nice furniture."

If the ads grab people's attention and get them through the retailer's doors, then that's a good thing, said C. Britt Beemer, chairman of America's Research Group, a consumer behavior research firm in Charleston, S.C. He said 42 percent of consumers like humor in TV commercials.

Yet he thinks it's going to take more than new marketing to shake off issues that have made selling furniture a challenging business to be in recent years. It's not just the slowing economy, although that hasn't helped and most are predicting 2008 will be another tough year. When it comes to cutting back on spending, furniture is an easy call for too many.

In a survey done a year ago, America's Research Group asked consumers if they would rather buy a sofa at 50 percent off or go on a cruise. The cruise won three-to-one, said Mr. Beemer, even though the cruise would be over in a week and the springs on that old couch might make those sitting on it uncomfortable for years.

At Colonial Modern Furniture in McMurray, owner Karen Sauers agreed people who may really need a new mattress or desk sometimes put that off for other types of tempting purchases. "Literally, women are buying handbags that are expensive vs. the cost of buying a sofa," she said.

For those players in the industry that have survived years of consolidation as well as the recent economic slowdown, getting consumers' attention may require both more effective marketing and more enticing merchandise.

Manufacturers need to make that old couch out of fashion or at least develop some hot product that people want even if they don't really need it, said Mr. Beemer. "There's not been really any new styles out there for a few years."

Robert Levin, president of Smithton-based retailer Levin Furniture, said he has been impressed by how the electronics industry rolls out new products on a regular basis that people are willing to stand in line for, even if it means sitting outside all night. "I think the challenge for our industry is how do we make the products more exciting and more interesting," he said.

Even if the furniture industry may not have a couch version of the iPod or the latest hot video game system, retailers can take other steps to draw consumers in. Levin is working to keep customers interested by continuing to add new lines, including the recent addition of electronic fireplaces. "Our strategy is to try to be more things to more people," he said.

Roomful Express expanded its La-Z-Boy selection after that company closed its Pittsburgh-area stores last year. In addition, the retailer did a promotion last year involving tickets to the hot Hannah Montana concert that brought young girls and their parents into its stores.

Furniture retailers also are noticing that more consumers are turning to the Internet for information. Roomful Express revamped its Web site in the fall and is even dabbling in the blogosphere. Levin Furniture has that project on the to-do list this year. Colonial Modern Furniture just overhauled its Web site and has begun to try to build an e-mail database so it can send out regular offers to the customers that make up its core base.

Still, there's no denying that pricing and financing continues to play an important role in furniture marketing strategy even as the industry is coping with deflation. As more pieces are being imported, prices have continued to drop. Consumers may chase the deals but it can cut into a retailer's profits. "You might have to sell 10 percent more units today than a year ago," said Mr. Beemer.

With so much focus on promotions, there can be a sameness to the industry's advertising. Paul Sanford, chief operating officer of Roomful Express, said he noticed while he was working out at the gym that, without being able to hear the commercials, he had to wait until the end to figure out which ads were for his company.

Roomful Express hasn't exactly been daring in its marketing in recent years. Several years ago, when the company changed its name, there were ads to establish the new brand and promote its then-new focus on designer-assembled groups of furniture. But the majority since have been relatively traditional pitches pushing sales and showing the stores.

The goal with the new ads is to grab people's attention and help give Roomful Express a different image.

Basically, the furniture talks for itself in the commercials. There are no distracting mouths moving, no animation. Just shots of real furniture in outdoor locales that look rather familiar (which Pittsburgh bridge is that couch sitting under?) and voices that bring double-takes from the human beings in the ads.

There are even references to other famous conversations. "Stella!" one chair calls out longingly to a woman nearby. "My name is Julie," she returns, apparently not a fan of old Marlon Brando movies.

Pieces in the commercials won't be identified by brand or price but they are meant to play a part in buffing up Roomful Express's image. "Without saying we're stylish, you should get it," said Bill Binstock, chief executive officer of Downtown ad agency TenUnited, which has worked with the retailer for years.

The branding campaign will be carried through to the stores, where furniture with motion-activated sensors will start talking as customers walk by.

Talking furniture hasn't entirely taken over the retailer's televised messages. Twenty seconds of each spot is devoted to the skit with 10 seconds reserved for alerting customers to the latest promotion.

Teresa F. Lindeman can be reached at tlindeman@post-gazette.com or at 412-263-2018.
First published on February 3, 2008 at 12:00 am