Pier 1 vets building new chain
By Clint Engel -- Furniture Today, April 28, 2003
Palm Beach Gardens, Fla. — Three Pier 1 Imports veterans have opened their third Off Main Furniture store here, a new flagship for a concept they believe has the potential to become a national chain.
The 26,000-square-foot store is Off Main's largest, with a 16,000-square-foot showroom and a varied assortment from suppliers such as Hickory Hill, Cisco Bros., Flexsteel, Legacy Leather, Canadel, APA Marketing, Karya, Magnussen Home and Durham.
The emphasis is on midpriced to upscale fashion-oriented furnishings at a value with a large custom-order business, and the owners say they are bent on creating an environment that eliminates the consumer's fear and puts enjoyment back into furniture shopping.
"Most consumers are not fearful of making a decision, but of making a mistake," said Albert Valdes, president and co-owner. The Off Main concept, he said, "is driven by the fact that consumers love to shop at what I would term neighborhood stores, in which the customer comes in and could still be on a first-name basis.
"It's what being a merchant used to be," he said. "People still care about being cared for."
Off Main strives to make consumers feel welcome through a no-pressure environment, where sales associates are salaried and there is no "up" system. Consumers also pick up on the retailer's "sense of fashion," he said, through its interpretation of traditional, country and contemporary lifestyle presentations, and vignettes that tastefully blend the varied styles.
Shoppers can take hours going through the store, "talking about their hopes and desires," he said.
Valdes and his partners — wife Laura Valdes, director of sales and marketing, and Gerald Tidwell, director of visual merchandising — started Off Main in March 2001 with their first South Florida store in Coral Springs. Last summer, they followed with a second 9,200-square-foot store in Deerfield Beach. By the end of this year, they plan to open two more Florida stores, most likely in Plantation and possibly Naples.
Valdes said the company can grow to seven to 10 stores before it seeks additional investment for more growth — perhaps venture capital, a joint venture or acquisition by a larger company. In the meantime, the plan is to develop a successful, proven concept that's exportable to other areas.
He would not disclose total sales, but said Off Main is looking to do $1.2 million to $1.5 million at its smaller stores and roughly $2.6 million at bigger units like the newest one, which will draw consumers from a larger area.
Valdes said Off Main has been well received by consumers, and that during its soft opening, the newest store has generated three times the business the smaller stores did. (The official opening in Palm Beach Gardens is May 2.)
Taking a cue from Pier 1, Off Main stores try to touch on all the senses. Potpourri and scented candles are for sale and also leave a pleasant aroma. Interior walls take on various colors appropriate for the season or the furniture vignettes and accessories on display. Staggered H-walls serve as backdrops to vignettes that help pull consumers deeper into the showroom.
There is no centralized distribution, and Valdes said there are no plans for it. Each store has its own attached warehouse and purchase orders are drop-shipped directly to the stores. All store employees help unload the trucks, and home delivery is contracted to Cory Home Delivery Service. Special orders are delivered within four to eight weeks.
Valdes said that while Off Main doesn't intend to centralize its warehousing, as it grows it will be building inventories to develop the important instant-gratification part of the business that isn't special order, he said.
The latest two of Off Main's three stores were built with the help of Woolbright Development of Boca Raton, Fla., which Valdes said has a reputation for breathing new life into older shopping centers through massive renovations.
With Woolbright building to suit, Off Main has been able to keep its initial investment costs primarily to inventory and working capital, he said.
As the company expands, he added, it will look to open the smaller-footprint stores in Florida's largest metropolitan markets, such as Miami or West Palm Beach, where the population is dense and where Off Main stores are likely to be closer together. Larger stores will be opened in less populated areas, where consumers are used to traveling greater distances to shop
The newest store features about 53 living room groups, with fabric sofas from $899 to $4,000; 16 bedrooms, with queen beds starting at $599; and about 18 dining room groups.
Decorative accessories, rugs, top-of-bed and window treatments account for roughly 25% to 30% of sales. Off Main is looking to grow that segment to 40% to 45% "because that's where the margin is," Valdes said.
Canadel sales representative Doug Gold began selling Off Main the manufacturer's Color Shop solid-wood dining shortly after the first store opened. He likes the stores' look and atmosphere.
"It's very friendly and presented the way the consumer is going to live with the furniture," said Gold. "There's no way to put into words what happens when you open that door and walk into that store. You just automatically know they hit it right. It's just fresh — the way they do the walls and the colors, the mixing of accessories with regular merchandise, their product selection. It seems to flow very well."
