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RETAILER PERSPECTIVE
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Dave Garretson

 

Seven Obstacles Retailers Must Overcome:
Customers Speak Out About Why They Dislike Furniture Shopping

Some people might consider my dear friend Silvia a spendthrift. She and her husband Mike have two new recreational vehicles, a brand new 4200 square foot home, and three rooms covered floor to ceiling with the colorful toys of their two young daughters. Like many Americans, they also have mounds of consumer debt.

Here’s the surprise. Look in their living room. The only thing you’ll find to sit on that’s less than 15 years old are the matching throws covering two ragged sofas. What’s up?

When I asked, Silvia explained without a moment’s hesitation as she plopped wearily into her well worn armchair. “It’s not worth shopping for new furniture. I’ve don’t have the time to shop. How can I when I’ve got these kids in tow? I don’t know what I’d look for, anyway. And it’s all the same – and it’s all so expensive.”

Unfortunately, Silvia’s no anomaly. Despite the fact that the average size of new houses in the U.S. has grown by 25% since 1980, furniture spending has dipped from 1.2% to 1% of total consumer spending during this same twenty years. In fact, consumers’ disdain for furniture shopping was recently described on the front page of The Wall Street Journal just a few weeks ago. In their article, “Ever Wonder Why Furniture Shopping Can Be Such a Pain?” authors James Hagerty and Robert Berner point out how atypical this distaste for furniture shopping is: “While Americans splurge on cars, appliances and electronic toys, many approach buying furniture with the sort of dull dread that usually precedes an IRS audit.”

But, why? To find out, I consulted business reports, customer surveys, and industry pundits. While they ranked customer complaints differently, surveys and researchers uncovered the same basic laments.

“I Can’t Measure Quality.”

Today, more than ever, shoppers are looking for discounts and bargains. But according to the findings of a jointly sponsored study by Hearst Magazines and The Homes Furnishings Council earlier this year, price is not the overriding concern for consumers buying furniture. Regardless of whether they are in the market for low- or high-end product, customers want value.

Yet, from the perspective of the furniture shopper, quality is elusive. According to America’s Research Group, a well-respected research group that surveys approximately 5,000 furniture shoppers nationwide regarding their furniture shopping plans for the coming year, 84% of American consumers say they can’t measure quality in upholstery. Two-thirds admit they can’t measure quality in case goods. Since most of the product is hidden from view, they explain, they can’t see inside to assess quality. Feel their frustration? Consumers can’t assess whether they’re getting fair value for their dollars. And there’s little satisfaction for the customer who after spending hundreds or thousands of dollars walks out of the store not knowing if they got their money’s worth.

“The Salespeople Push Me.”

When asked why customers disliked furniture shopping, nearly a quarter surveyed by the Home Furnishings Network cited service factors – especially pushy or high pressure salespeople who follow customers around or descend on them.

Surveys show that pushy salespeople are particularly irritating to women. And don’t forget - women control 74% of all furniture purchases. According to Gerry Meyers, Marketing Consultant and expert on women’s spending and buying habits, when a woman says they want to think about a purchase, they’re not asking to be sold harder. They’re telling you they want time to think about it.

Although surveys show that pushy salespeople are more of a problem for consumers than salespeople that ignore them, consumers do want to know what they need to know to make educated, pragmatic choices. Consumers are more educated and knowledgeable than ever before and often know the questions to ask. Consequently, according to a yearlong study commissioned by HFN and High Points Magazine last March, consumers expect more information on product attributes and benefits.

But here’s the key. They only want it when they ask for it.

“All Furniture Stores Look the Same.”

Consumers are clearly bored by furniture shopping. According to another recent survey by ARG, eighty-three percent of customers surveyed complain that all furniture stores look the same.

Britt Beemer, of America’s Research Group, explains why. “In High Point, retailers walk into manufacturers’ spaces and say, ‘Look, I’m real busy, let me see your two best sellers.’ Ultimately, if everyone has everyone’s two best sellers, we’ll achieve 100% boredom that consumers say they see everyday in our stores.”

This problem is a continuing source of frustration for today’s busy shopper. The longer work week and the increase in the number of two-career families means that for many consumers, time is their most valuable commodity. This means less time to shop - and less tolerance for aggravating situations. Ten years ago, people were willing to visit two to three stores before purchasing. Now the average is one to two stores. Consumers are frustrated by the hassle of traipsing from place to place only to find the same selection of merchandise.

“Retailers are Unfaithful.”

This one comes as no surprise. Consumers expect a store to deliver on advertised promises. When retailers promote an item and don’t have it in stock, one in four people say they will not return to that store to buy again.

Who knows whether furniture retailers are guilty of this any more than other retailers. But one thing is for sure. The consumer today is again saying one thing, “You’re not going to make my life a hassle.”

If you advertise it, you better have it. When furniture retailers don’t deliver, the customer feels lied to. And today’s customer does not forgive and forget.

“The Prices are Too High.”

While research consistently shows that value and quality are of utmost importance to furniture shoppers, price does matter.

And furniture is expensive. It’s the second most expensive retail item next to automobiles. For some people, there’s a level of discomfort that comes with spending that amount of money when, they’re not sure what it is they’re getting with respect to product quality. Research shows that customers today plan on changing their décor within the next ten years. They’re looking for less expensive merchandise that fits their current lifestyle and budget.

“I Have to Wait Too Long.”

I just heard this one the other day from a friend of mine who just moved into a new house and spent about $2500 on living and dining room furniture. He had to wait seven weeks before his furniture was delivered. That is, seven weeks after he paid for it.

The furniture industry’s delivery performance reminds ABC Carpet’s Mr. Evan Cole of “another century.” And customers agree. It’s not unusual for customers to cancel orders after waiting too long.

Let’s face it. We’re just not used to this kind of thing. Most of the time we get immediate gratification, immediate feelings of satisfaction after we acquire a new possession. Like when you buy a car. Sure, it’s a little painful to shell out thousands of dollars, but isn’t that pain quickly replaced by pleasure when you proudly drive the shiny new car off the lot moments later? When you buy furniture, you have to sit for weeks in your empty living room with that nasty sting of having spent several thousands of dollars with nothing to show for it but a long wait and an empty room.

“I Can’t Find Anything I Like.”

In a survey this past summer, sponsored by HFN, more than a quarter of the people surveyed, who shopped seriously but did not buy, complained that they couldn’t find anything they liked. And according to America’s Research Group, twenty percent of consumers they surveyed also complained about their inability to find what they wanted because of inadequate selections, poor selections, and low quality.

At the same time, customers also report feeling overwhelmed by the sea of fabrics and styles to choose from, and walk away frustrated by not being able to make up their minds. Bob Nightengale of the Home Furnishings Council believes that customers’ perceptions of furniture style categories complicates the decision. Understanding what classifies as “contemporary” or “traditional” differs greatly and customers become easily confused.

Nonetheless, most marketing experts agree that customers still want lots of choices and crave more individuality in furniture than they do in, say, cars. The common lament among customers is a seeming absence of new, appealing products.

But don’t get disheartened. For better or for worse, there are several reasons why the furniture industry has suffered in the last two decades that has nothing to do with retail savvy.

Economic and demographic trends are part of the explanation. When furniture shoppers were asked why they decided not to buy, many cited non-retail issues such as the need to save for retirement, the need to save for children’s education, and concern about health care costs for themselves and their parents. These collective responses today represent at least 19 to 26% of the reasons why consumers shopped for furniture this year but did not buy anywhere. Five years ago, non-retail issues represented less than 1% of all responses. Bob Nightengale, President of the Home Furnishings Council, explains. “I think what people consider discretionary income today is becoming very, very small. And, I don’t want the furniture industry to be a part of this category, and frankly, I think we are.”

Beemer believes that there’s another big obstacle that is essentially out of the retailer’s control: consumers’ lack of brand awareness. Few manufacturers advertise brand names to consumers on a mass level, and in turn, consumers are not familiar with brands when they shop. According to Beemer, consumers are uncomfortable spending money on expensive products whose brand name they don’t recognize.

Another issue is that changing social norms have taken the heat off customers. Fewer and fewer people entertain at home. And since nobody but the family sees the home décor, Americans are spending less to furnish their homes.

But there’s hope. Baby boomers are in their prime furniture-buying years, and The American Furniture Manufacturers Association projects a 13% jump in industry shipments this year.

Retailers can catch this wave by avoiding retail snafus and delivering what the customer wants. The shopper has spoken. They want fair value for their dollars at stores with a wide selection, professional salespeople and inventory in stock. They want to feel you respect their time and money by making it easier to buy smarter. According to Beemer, “The stores that are best prepared to serve the customer fully will win.”

It’s Now Scientifically Proven: Only 2.8% of Your Customers are Jerks

After making a name for himself surveying hundreds of thousands furniture shoppers nationwide, industry expert Britt Beemer offers futon retailers great advice.

Some would say that when it comes to furniture retailing wisdom, Mr. Britt C. Beemer is the man.

Beemer is the Senior Research Director of America’s Research Group, a national firm which performs consumer behavior research across North America, interviewing up to 250,000 consumers annually. ARG also compiles the National Furniture Buying Index which is used by major retailers across the U.S. to gauge furniture shopping plans for the coming year.

He has gained national acclaim for his research on consumers shopping and buying habits and his work has been cited in the Wall Street Journal, Investor’s Business Daily, Business Morning, Morning News, US News and World Report, and many others.

From his home base in South Carolina, Beemer offered an interview with Futon Life chock full of sound advice for futon retailers:

On holding a sale: “Don’t just call a sale randomly. Give customers a good reason for a sale. And give them authentic and significant discounts such as 40-50% off suggested retail or an extra 10-15% off the everyday price.”

On furniture advertising: “Unfortunately, furniture ads are usually driven by price-slashing or credit terms. There are no people in the ads. That’s a problem. Furniture buying is an emotional purchase so products must be connected to positive human feelings and experiences. You’ve got to go for the full-color emotional appeal.”

On furniture manufacturers’ biggest mistake: “Furniture manufacturers get virtually no consumer input when designing, so it’s not surprising that when the retailer buys it and shows it, it doesn’t sell. The industry needs to get consumer input on the front end.”

On home decorating trends: “What we hear over and over again is that people don’t want to live in a museum. Traditional style furniture is on the way out. People want a look and feel that’s more casual, more comfortable. People are also changing their home furnishings more frequently and thus, for this and a few other reasons, are buying furniture that’s less expensive.”

On retailing in the 21st century: “Low price/low quality loses. Good value wins. Good customer service wins. Convenience wins – one stop shopping and ease of purchase.”

On the secret to retail success: “The retailer must really understand and accept that the consumer is not their enemy. We’ve done the research. Only 2.8% of customers are jerks who make the retailer’s life miserable. Yet store policies are established and rigidly adhered to because of these few people. Basically, the retailer has to trust their customers. Honest advertising and a 30-day unconditional, money back guarantee are the things that are going to provide the level of service that sets retailers apart and meets the needs of today’s shopper.”

Andrea Mainardi is a freelance writer who works out of her new home here in Providence, RI. She is a regular contributor to the pages of Futon Life and will be presenting an article on the women of the futon industry in our next issue.