Hendricks expanding scope of FBI store plans
By Clint Engel -- Furniture Today, November 3, 2003
Hickory, N.C. — In less than a year, Top 100 company Hendricks Furniture Group has gone from dipping a toe in the dedicated-store waters to a full-steam-ahead partnership with No. 1 manufacturer Furniture Brands International.
Hendricks, operator of Boyles and other stores, is on a growth spurt that eventually will lead to some 20 Thomasville stores in four Southeast states, and five Drexel Heritage stores in North Carolina.
Furniture Brands President, Chairman and Chief Executive Officer Mickey Holliman was referring to Hendricks when he said last month that an "outstanding retailer" was poised to make the most of the upcoming end of FBI's strategic alliance with Atlanta-based Havertys.
That move will take Thomasville out of Havertys stores as the retailer looks to expand its successful private-label offerings. That will free FBI company Thomasville to seek dedicated-store operators in areas where the Havertys alliance once tied its hands.
"(Hendricks) now has agreed to open seven Thomasville stores in Atlanta," Holliman said. "In fact, by the time they are finished, we expect them to have seven locations in Atlanta, eight in Florida from West Palm Beach to Miami, four in North Carolina and one in South Carolina," in addition to the five planned Drexel stores. Drexel also is an FBI company.
Hendricks President Larry Hendricks couldn't be reached, but it appears the expansion would double Hendricks' total store count, from 19 now to about 40 when its planned dedicated stores open.
Last year, Hendricks, listed as Boyles on Furniture/Today's Top 100 stores ranking, did an estimated $191.1 million in furniture, bedding and accessory sales at 15 stores.
In January, Hendricks opened its first Thomasville store in Fort Lauderdale, Fla. By summer, it had expanded into Atlanta with a Thomasville store, and said it planned at least four such stores in South Florida and up to four in Atlanta.
Then, just before the October market, Drexel Heritage and Hendricks said the retailer planned to open five dedicated Drexel stores in North Carolina through early 2005. Now, Hendricks' dedicated store plans have escalated again.
Hendricks is expected to become Thomasville's largest dealer in store count and likely will be among the top three in volume, said Eric Easter, senior vice president of sales and marketing for Thomasville, which expects to finish the year with about 147 dedicated stores doing about $485 million.
Easter wouldn't provide sales figures for the Hendricks' Thomasville stores already open, but said, "I know they are extremely happy, and the stores have exceeded their expectations."
Furniture Brands' strategy calls for a focus on dedicated-store growth, largely with its Thomasville, Drexel Heritage and Henredon brands, and more recently with a push for supplemental company-owned stores, Holliman said.
