By Kory Dodd
GREENSBORO — Scott Knox used to be able to sell

popular, brand-name furniture such as Lexington Home Brands, Hickory White, Canal Dover and Nichols & Stone at his store, Priba Furniture and Interiors.

Not anymore.

Furnitureland South, the country’s largest single-store furniture retailer, is trying to run his small business aground, said Knox, Priba’s president and chief executive officer.

The furniture superstore has convinced several manufacturers to sign exclusive deals listing Furnitureland South as their only registered retailer in the area. Subsequently, the manufacturers must pull their furniture lines from the smaller retailers — such as Priba.

Analysts say this is a growing trend in the furniture industry that may drive up prices for shoppers.

“I think that manufacturers have (for a while) given exclusive lines to big dealers in a region, and they do that because a furniture retailer doesn’t want to see their collection all over,” said Laura Champine, a managing director who analyzes the furniture industry for Morgan Keegan & Co., a regional investment firm.

Knox said that in the past year, Priba has lost a record number of manufacturers as Furnitureland South has intensified its push for exclusive deals. At least four of its former manufacturers list Furnitureland South as their only area dealer.

“Competition is supposed to be good for the consumer, and what he’s basically doing is getting rid of competition,” Knox said of A. Darrell Harris, the owner of Furnitureland South.

Citing a restriction of trade, Knox filed a complaint against Furnitureland South earlier this month with the N.C. Attorney General’s Office.

But Knox didn’t get the response he wanted.

“As a general matter, courts have held that retailers may legally enter into an exclusive dealing arrangement with a manufacturer in a particular market,” said Noelle Talley, a spokeswoman for the Attorney General’s Office.

Talley said her office was investigating Priba’s complaint and had contacted Furnitureland South.

Jason Harris, vice president of sales and marketing for Furnitureland South, would not comment on Priba’s complaint but acknowledged his company was seeking exclusive deals with manufacturers.

“The nature of our business is very competitive, and we’re definitely trying to partner with our manufacturers to offer the best prices for customers,” Harris said. “That’s business. Call Target and ask them about trying to get exclusives with vendors — that’s what they try to do.”

But does exclusivity really benefit consumers?

Kimberly Causey, author of “The Furniture Factory Outlet Guide” series, said the trend isn’t a good thing for consumers.

With one store exclusively selling a furniture line in an area, Causey said, the price for the items in that line will be higher than they would be if the consumer had a choice of where to buy.

“What I’ve seen so far is that it basically eliminates the advantage of buying from a North Carolina retailer,” Causey said.

Consumers head to High Point because of its reputation of having a variety of quality furniture at discounted prices.

Causey said there’s no point in traveling to High Point if shoppers can buy the same furniture for less on the Internet or in other areas of the country.

In research for her books, Causey said she has found that Furnitureland South tends to sell its furniture at higher prices, especially brands that are widely distributed.

Limiting consumers’ choices also conflicts with High Point’s identity. The city advertises itself as the Furniture Capital of the World, where consumers have a wide selection.

“Sometimes it takes more than one store to get people to drive 400 miles to shop,” said Charlotte M. Young, president and CEO of the High Point Convention and Visitors Bureau. “When I shop, I always like to have options. And a good business will always win out.”

But some industry analysts don’t think the trend will affect consumers because they say most shoppers are looking for a particular style, not brand.

“There’s plenty to choose from out there. So I think that if consumers don’t think they’re getting the value they should, they’ll go somewhere else for a similar product,” said Ken Smith, director of Furniture Industry Services for BDO Seidman, an accounting firm.

Champine acknowledged that the trend “does leave smaller dealers out of some of the more popular collections.”

In the case of Black’s Furniture Co., when Lexington Furniture Industries pulled its Lexington Home Brands line from the store, the smaller retailer not only lost a popular line, but it also was stuck with expensive display furniture that would be hard to sell. Display furniture cannot be customized, which shoppers prefer, and is considered used, so it’s usually sold at discounted prices.

Black’s Furniture would not comment for this story, but a search of Guilford County court records found that the retailer is suing Lexington Furniture Industries.

According to court documents, Black’s is suing to force Lexington to take back the display furniture and give the retailer a refund.

Knox said Priba has not filed a lawsuit against any of its manufacturers or Furnitureland South. As a small retailer, he’s not sure they can afford it. Right now, the complaint filed with the attorney general is all they can do.

“We’re just trying to protect our business here,” Knox said. “We’ve been in business for 45 years.”

Contact Kory Dodd at 883-4422, Ext. 241, or kddodd@news-record.com