Clint Engel
\nCOLUMBUS, Ohio — With the opening of two Rooms Today stores in Michigan, American Signature is testing a new format
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\n that bridges its promotional Value City Furniture brand and more upscale American Signature stores.<\/p>\n
The Top 100 company, which will pass $1.1 billion in sales in the fiscal year that ends this month, is counting on the concept to help propel future growth. The retailer aims to appeal to a younger consumer and give itself a third, more versatile store banner to use as it expands in the East and Midwest.<\/p>\n
Two 50,000-square-foot Rooms Today stores opened last month in the Grand Rapids suburb of Kentwood, Mich., and in Kalamazoo, Mich.<\/p>\n
The main brand sold in the store is the proprietary American Signature, representing about half of the overall mix, and the emphasis is on room-package pricing. Among other key suppliers are Berkline, iJoy and Simmons.<\/p>\n
American Signature chose smaller secondary markets for the initial two stores \u00e2\u20ac\u0153to perfect the concept,\u00e2\u20ac\u009d said company President David Thompson. There are plans for more Rooms Today stores, but he wouldn\u00e2\u20ac\u2122t specify other markets or give a timetable for a rollout.<\/p>\n
\u00e2\u20ac\u0153This is a test,\u00e2\u20ac\u009d he said, adding the company is honing the format. \u00e2\u20ac\u0153But it feels pretty good. Everything seems very promising.\u00e2\u20ac\u009d<\/p>\n
Thompson described Rooms Today as \u00e2\u20ac\u0153a fresh approach,\u00e2\u20ac\u009d with \u00e2\u20ac\u0153a cool feeling about it.\u00e2\u20ac\u009d It targets a somewhat younger consumer than American Signature and its assortment reflects that, he said. Sofa and loveseat packages start at $699 at Rooms Today compared with $899 at American Signature. The staring price for a group at the more promotional Value City, meanwhile, is $599.<\/p>\n
Rooms Today stores have the flexibility to tailor their offerings to the psychographics and demographics of the markets they serve, said spokeswoman Mary Anne Piccirillo.<\/p>\n
And that, said Thompson, gives the parent company flexibility it doesn\u00e2\u20ac\u2122t have with Value City or American Signature, where consumer perception of the store is ingrained.<\/p>\n
\u00e2\u20ac\u0153When you hear a name of a store, you get a first impression,\u00e2\u20ac\u009d Thompson said. \u00e2\u20ac\u0153Value City, typically in all the research we\u00e2\u20ac\u2122ve done, means great price to the consumer. It\u00e2\u20ac\u2122s much more of a price concept. American Signature Furniture, in the consumer\u00e2\u20ac\u2122s mind, has much more of a higher-end (image). They feel good about the quality and, by the way, it\u00e2\u20ac\u2122s a good price.\u00e2\u20ac\u009d<\/p>\n
He said that American Signature has worked well, particularly in the Sun Belt states and South Florida, where all 21\u00c2\u00a0 of the stores under that banner are located, Thompson said.<\/p>\n
But as the parent company continues expanding in the Midwest and even in the East, it needed a concept that could more easily adapt to what are often very different tastes from one community to the next.<\/p>\n
One difference between Rooms Today and American Signature, which was launched with a store in the Nashville market in June 2002, is that while American Signature could stretch upward in price, Rooms Today isn\u00e2\u20ac\u2122t tied to one price direction, Thompson said.<\/p>\n
\u00e2\u20ac\u0153We can take (American Signature) as high as we want to in terms of quality and product line, and as we establish the brand more and more we will continue to lift the quality,\u00e2\u20ac\u009d he said.<\/p>\n
\u00e2\u20ac\u0153Rooms Today is a much more commercial type retail concept, much more for the masses. But it\u00e2\u20ac\u2122s kind of a chameleon. We can take it up or down depending on what the market wants,\u00e2\u20ac\u009d he said. \u00e2\u20ac\u0153We believe it will be a lot more versatile than Value City or American Signature, although it\u00e2\u20ac\u2122s still in the testing mode.\u00e2\u20ac\u009d<\/p>\n
Thompson said the Rooms Today launch is a continuation of American Signature\u00e2\u20ac\u2122s expansion strategy, which is \u00e2\u20ac\u0153a multi-brand approach.\u00e2\u20ac\u009d He said there are great differences in consumer tastes from region to region, which is the reason the furniture industry is dominated by strong regional players, not national chains.<\/p>\n
Thompson wouldn\u00e2\u20ac\u2122t elaborate on the company\u00e2\u20ac\u2122s plans, but said it\u00e2\u20ac\u2122s looking to expand using all three of its store formats. \u00e2\u20ac\u0153There\u00e2\u20ac\u2122s a lot of growth going on,\u00e2\u20ac\u009d he said.<\/p>\n
He said he doesn\u00e2\u20ac\u2122t believe the company would operate Value City and Rooms Today formats in the same market, but that it\u00e2\u20ac\u2122s possible Rooms Today might overlap with American Signature.<\/p>\n
American Signature operates 119 stores, primarily Value City furniture stores, in 18 Midwest, East and Southern states. Furniture\/Today estimates sales for its fiscal year ended July 30, 2012, at $830 million. With projected sales of more than $1.1 billion this year, the company\u00e2\u20ac\u2122s sales will grow more than 32%.<\/p>\n","protected":false},"excerpt":{"rendered":"
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