Clint Engel — Furniture Today,
ASHEBORO, N.C. — Klaussner Furniture Inds. will close more than a third of its Sofa Express and More

stores, exiting five metro markets as it looks to reenergize its full-line store strategy.

By early next year, Sofa Express will exit Atlanta, Tampa, Fla., Louisville, Ky., Las Vegas and Charleston, S.C., where it operates a total of 18 stores. Five more stores will close in Indiana and Ohio.

Klaussner said some of the closing stores are too small and don’t fit the retailer’s new full-line format. But it also cited a mismatch between some of the stores and their local consumer base.

That will leave Klaussner with 39 company-owned full-line stores and four licensed units. The company said it plans to continue to open licensed stores and expects to have 20 to 25 open by the end of next year.

Sofa Express also operates five outlets in Georgia, Tennessee and Florida that are not included in the store count. It’s undecided what will happen with those, a spokesman said.

A Klaussner division acquired custom upholstery specialists Sofa Express and Sofa Connection in 2002 and combined the two under the Sofa Express name.

Last year, reflecting Klaussner’s expanded case good business, the Groveport, Ohio, chain was converted to Sofa Express and More. Its 73 stores, including outlets, did an estimated $226 million in furniture, bedding and accessories sales in 2012, ranking No. 35 on Furniture/Today’s survey of the Top 100 U.S. Furniture Stores.

“In the months following the conversion from sofa specialty to full-line stores, it has become increasingly apparent that we must operate in larger stores that can support the full breadth of our product offering,” Klaussner President and CEO J.B. Davis said in a release.

“Unfortunately, some of the stores that are part of our chain simply don’t mesh well with our current strategy and are not profitable. In some cases, the store itself is too small or the location isn’t suitable. In other stores, the consumer demographic isn’t a strong match,” he said.

“With a smaller pool of stronger stores, we can re-energize the brand,” he added.

Davis was traveling and couldn’t be reached for additional comment.

In the release, he said new marketing, an updated Web site and other changes are planned. Among other this, Sofa Express and More is investigating the possibility of online sales, said Mark Walker, Klaussner marketing director.

No management changes are expected at Sofa Express, which is led by Mack Peters. The majority of the chain’s growth is expected to come through licensed stores.

“In addition to shoring up its Sofa Express and more business, Klaussner continues to develop additional retail directions,” the company said. It said that in addition to more Sofa Express and More licensed stores, “several new retail ventures as well as a new take on marketing and brand development” are in the works.