The group’s merchandise strategy is based on the philosophy that customers are attracted into stores by the product offering. The focus is therefore on providing customers with quality, exclusive and differentiated furniture ranges.
This is achieved through the following:
It is an active strategy to focus on increasing sales of the higher margin furniture and appliance product categories.
Products are sourced from a wide range of local and international suppliers to ensure that customers are offered exclusive product ranges.
Products are sourced to meet the specific needs of the group’s customer base. The offering includes branded merchandise which is appealing to the target market, selling more contemporary lines in each furniture category to attract younger customers.
Products are supported by local and overseas after-sales service to ensure quality standards are maintained. Before consignments are despatched from suppliers a sample of all imported products are assembled and tested for quality purposes.
The group’s supply chain model is based on merchandise being delivered directly by suppliers to stores. The group does not operate distribution centres or centralised warehouses. Each store has a storage facility which is located close to the store, generally in an area with lower rentals than retail space.
Stores have their own delivery vehicles and can affect all deliveries to customers. This strategy has many benefits as it limits the build-up of obsolete stock and reduces markdowns. It also significantly improves service levels as stores are able to make an average of 90% of deliveries within 24 hours of the sale.
This supply chain and distribution strategy is supported by world-class shipping and logistics suppliers with whom the group has developed strategic partnerships that enables high levels of customer services