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Moving From A House Of Brands To A Household Brand


  • Furniture industry is fiercely competitive with many competitors closing, consolidating, or refocusing.
  • Industry wide gross margins had dropped more than 6% over 10 years
  • Retail furniture sales were growing at roughly half the rate of overall residential furniture sales through all channels
  • To remain competitive, Havertys needed to refocus and redefine its competitive strategy


  • Defined nine major strategic areas to repositionHavertys in the marketplace:
    • Strengthen retail store as primary sales channel & grow share and sales productivity by realigning store operations around the customer
    • Increase gross margins by improving product mix and pricing
    • Leverage existing infrastructure to reduce SG&A costs
    • Develop specific strategies for key markets like Atlanta and Dallas
    • Strengthen Havertys as a value-oriented brand within existing product categories
    • Create a direct sourcing capability
    • Deliver store growth with a focus on existing geographies
    • Improve marketing & advertizing to increase quality of traffic
    • Reevaluate target consumer, marketing and brand positioning


  • Increased focus on direct sourcing and proprietary brands led to improved quality, shortened lead times, and reduced product costs
  • Focus on retail stores led to increased sale closure rate and higher average tickets
  • Focus on expansion within existing geographies allowed targeting of fast-growing markets with established brand name
  • Improved marketing, targeting and positioning led to increased quality of traffic


Case Study Havertys Playbook


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