By Connie Post

I recently attended the National Retail Federation Convention in New York City and I came away with an amazing amount of information that has energized my thought processes.

However, I spotted very few people from the home furnishings industry there.  What a loss it is for our industry to be left in the dark on what is going on in the rest of the retail world.

Bottom line: We all went through hell last year, no one was unscathed and most of us are still around.

Here are some of the things I learned:

Changing the Game
Julie Pulerie of IBM said, “What customers really want is for you to have what they want at discount prices” and I actually heard a few amens from the crowd.

Best Buy’s Mark Williams said last year the store changed its credit approval process and loosened the requirements, allowing distressed customers to get credit, and in doing so grew its business.

He predicted that there was a big future in trade-in for Best Buy, and that the best thing they had done in 2009 was lease-to-own home theater promotions. Bottom line: It’s going to be harder to get approved credit for your customers. Home furnishings world take note.

Value
Allen Questrom, past president of J.C. Penney and Federated, predicted that the industries that will see growth the next few years will be home improvement and furniture, mostly due to pent-up demand, the need for change and low interest rates. Simply put, people will buy homes and need furniture, y’all.

Walmart’s Matt Kistler, senior vice president of sustainability, said, “Walmart is changing the game and we are also paying attention to the small things too.” Kistler said that turning out the lights in vending machines corporate-wide had resulted in $1.2 million savings in 2009.

The largest savings apparently are on the transportation side of Walmart’s business. By changing to smaller fuel tanks, trucks were lighter and more fuel efficient and converting to auxiliary power units reduced idling and improved gas consumption. They added side skirts to the trailers to be more aerodynamic and for the future they are adding more hybrid trucks to the fleet.

Bottom line: Wow! I wonder if the home furnishing industry has been this diligent in looking under every rock to save money...

Luxury
Luxury consumers still want to buy, but in smaller proportions according to designer Tory Birch. She said smaller accessories were outselling other products three to one.

She has started a guerilla marketing approach through blogging and more personal appearances, gaining tips on where customers want her to go with products. “Customers today want the same brands at better price points.” Luxury is about experience and today customers’ demand for service will be greater than ever before.
Bottom line: Higher level of service equals VALUE!

The overall bottom line: It is critical that home furnishings retailers today do not look old, dated or out of step with the rest of the universe!

Connie Post is president of Connie Post Global Media, a retail and wholesale design and consulting company specializing in the home furnishings industry. missconniepost@aol.com.