HIGHLIGHTS – Labor Day weekend is always one of the most eagerly anticipated events on the furniture retail calendar, perhaps even more so in a volatile year like 2024.
While there have been isolated successes and strong sales across the country, high interest rates, frontloaded demand and other factors have contributed to a weak year by most measures. Against this backdrop, furniture retailers are pulling out all the stops as summer draws to a close.
Grand Home Furnishings, the Roanoke, Virginia-based top-100 retailer, will offer interest-free financing and special offers as usual, but also has a few new enticements. It is launching its new private label brand, Grand Home Living, which will be featured prominently in its promotional materials.
“We purchased 12 frames and those frames come with a wide selection of fabrics and cushions that you can customize and have delivered within 30 days,” said Mike Virok, vice president of marketing.
Labor Day outreach began for Grand earlier this month with a pre-sale, as Virok said existing customers are some of the retailer’s best. In addition, he said since there has been a surge in home construction in several of Grand’s markets, he expanded the direct-mail reach this time to include homes in Roanoke and Charlottesville to measure the impact.
Virok said that with the increased reach, funding, new products and special offers – including some free gifts with the purchase of select mattresses – Grand should have a great Christmas ahead.
“Customers love the word ‘free.’ We have all the lines in the water with our best bait, so we’ll see how it goes,” Virok said. “The guys are waiting for ‘no interest’ and we don’t turn that on all the time. In cases like this, we resort to it.”
In Houston, top-100 retailer Exclusive Furniture has focused its approach on what vice president of sales Fawad Zavary called a “great marketing plan and an unbeatable offer”: 60 months of no interest, no down payment and no delivery fees.
“With Labor Day approaching, we’re hoping for big results. We’ve put together a long-term interest-free financing offer combined with a ‘No-No-No’ offer as well as a ‘Buy More, Save More’ promotion with a special focus on bedding,” Zavary said. “Our goal is to help customers find the best deals while making their homes more comfortable and stylish.”
Zavary believes there is a lot of business to be had here, and he is excited to see how Exclusive’s offerings evolve. “We are gearing up for a big Labor Day and are ready to make it a success,” he said.
Chris Gamble, owner of Gamble Home Furnishings in Jonesboro, Arkansas, said there is no sales tax and 72-month financing and specials on mattresses and outdoor products are among his store’s strongest offers. He said the sales tax break usually gets attention at this retailer.
“With today being Labor Day, the lack of sales tax is a huge advantage for us. We have some sharp pricing on some hot deals to attract customers. We don’t always do pricing, but this Labor Day we’re going to focus on pricing and price points,” Gamble said. “We’re more of a lifestyle brand, but this Labor Day we’re going to focus on pricing to drive that home for us. We know money is tight right now, so that’s our goal.”
Gamble’s deals began on Monday because he believes shorter holiday sales produce better results.
“We do the Labor Day sale for 10 to 12 days,” he said. “We feel like the call to action makes it more engaging and time sensitive. We try to shorten the holidays and create urgency that way.”
Top-100 retailer American Home Furniture & Mattress takes two different approaches to its stores, particularly in its home base of Albuquerque, NM. Chairman and CEO Kenton Van Harten said in his newest store, the focus is on showcasing products people can’t find anywhere else in the city. In his American Home Furniture & Mattress Plus store, which offers more entry-level products, the focus is on low prices, financing and inventory availability.
Marketing manager Jack Freed said American Home began some promotions a few weeks ago and is currently focusing on premium bedding offerings from Tempur-Pedic, Sealy, Stearns & Foster and Purple.
“We focus on promoting the premium brands during the big holidays,” Freed said. “That seems to be the guest that’s out there, and a ticket to a premium brand is worth 10 of the under $1,000 (mattresses), and they seem to be harder to get these days. We’ve been working with Dr. V and refining our process.”
There are also special offers in the outdoor section with discounts of up to 30%. “We are making it known, especially with the new store, we are the place to shop,” said Freed.
Freed said American Home has the largest warehouse in New Mexico, stocked with available products so customers don’t have to wait four to six weeks for their satisfaction. All in all, officials say they expect big things.
“We are very optimistic. I expect a very strong weekend,” said Van Harten.
In Washington, Harkness Furniture & Mattress is launching its TV, print and online advertising with price tag promotions and what owner Dave Harkness calls “recognizable values.” Other key offers include half-price shipping, 12-month financing at cash rates and a chance for customers to win memory foam pillows, Seattle Seahawks gear or a $100 gift card to the store on the Wheel of Fortune.
Harkness said promotions had started early because the competition had already been running for a few weeks and he was hoping for good numbers over the weekend.
“We are currently battling the final impacts of the COVID pandemic on our sales, so if we can get close to last year’s numbers, I’ll be lucky,” Harkness said.
But whatever happens on Labor Day, Harkness is convinced that the industry is moving closer to turning things around.
“I have a general feeling that things are stabilizing again. With an expected rate cut in September and reduced home equity loans, we may be able to get the housing market moving again and thus increase our sales,” he said. “I also think there is uncertainty before the election and when that is over, no matter who wins, it will lead to a better sense of stability and help our retail sector in the fourth quarter.”
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