Retail Observer

RETAILOBSERVER.COM MARCH 2022 48 B efore we look at what's ahead for furniture for the rest of 2022, and before 2021 fades from memory, I'd like to quickly recap some highlights for the AVB/BrandSource buying group during what most will agree was a most extraordinary year. Business for Furniture Technology Source, or FTS – the banner for our furniture and mattress segment – grew at twice the pace of the greater industry through the third quarter of 2021 amid abnormally high demand. We not only outpaced the industry in volume but in deliveries as well. Nevertheless, order fulfillment was still insufficient because we continue to sell more than we're getting. The good news is that inventory availability improved after consumers took a fourth-quarter breather and key vendors expanded production, warehousing and distribution. That said, stress levels for home furnishings dealers remain high due to a lack of delivery drivers and other labor, as well as customer frustration over delayed orders. While that makes it tough to manage our businesses, BrandSource dealers have still grown by record amounts. They figured out a way to do an amazing job during a difficult stretch, and we commend them for it. Peering ahead into the balance of 2022, vendors are projecting a more manageable growth rate of 1% to 3% industrywide, fueled by a still-healthy housing market and continued brisk consumer demand. By comparison, BrandSource is projecting high multiples of that for our FTS business in 2022. We're advising our members to be creative with how and when they buy in order to help meet those projections. Also assisting BrandSource members with that sales goal are a host of FTS initiatives. These include an exciting new program with an incredibly fast-growing mattress and furniture line: Malouf. For those unfamiliar, Malouf was founded 18 years ago by Sam and Kacie Malouf. The couple built that first two-person operation into a home furnishings force with over 11,000 product choices that meld time-tested materials with the freshness of cutting-edge technologies. Speaking of cutting edge, AVB is also bringing a host of industry- leading tools to the table, including: • A new consumer finance offer through our recent partnership with TD Bank • The addition of furniture to our Package Builder program, which allows members to create custom room ensembles for their websites, or utilize our own forthcoming room groups • Building out our website catalogs at an accelerated pace • Upcoming website enhancements, including vendor inventory availability by warehouse and more 360-degree and "zoomable" product images • Pinterest and SMS digital marketing programs that provide outstanding ROI In other FTS news, BrandSource marked January's Las Vegas Market with a new expanded showroom space. Double the size of our previous home, it offered 10,000 square feet of exclusive product displays and show specials. On the product front, members tested the TEMPUR-Breeze mattress line, designed to provide the comfort of memory foam with a multilayered cooling technology, and got an exclusive look at all four Serta Simmons Arctic mattresses, as the vendor did not formally exhibit at the show. Speaking of Serta exclusives, our dealers also demoed FTS's very own private-label Tranquility Essentials collection, along with a selection of TempurSealy's Carrington Chase beds, also available exclusively through BrandSource. You can expect all this and more, including a raft of show specials and incisive FTS educational sessions, when we return to Las Vegas this month for BrandSource's annual Summit meeting and product expo. I look forward to seeing all of you there! Michael Posa Furniture Trends Michael Posa is General Manager of Home Furnishings for AVB/BrandSource and helps spearhead the group's Furniture Technology Source initiatives. You can reach him at Michael.Posa@avb.net. RO IT'S FULL SPEED AHEAD FOR BRANDSOURCE AND HOME FURNISHINGS

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