Palliser plans about 30 EQ3 stores
By Michael J. Knell -- Furniture Today, April 28, 2003
Winnipeg, Manitoba — Furniture maker Palliser could roll out as many as 30 freestanding EQ3 stores across North America this year, all based on a new prototype unveiled at the April market.
The first two stores, slated to open by late summer, will be in San Francisco and Edmonton, Alberta. Both will be owned and operated by independent retailers.
The new EQ3 format features an accessory package that includes lighting, rugs and tabletop. In effect, Palliser will provide retail partners with a turnkey operation, said Peter Tielmann, senior vice president of marketing and business development.
The big Canadian manufacturer included a 7,000-square-foot EQ3 prototype in its market showroom, although Tielmann noted actual stores will have about 10,000 square feet of selling space. Also unveiled at market was a private-label EQ3 credit card, part of a new retail support package.
Currently, there are four EQ3 stores — in Toronto; Grand Rapids, Mich; Winnipeg; and Saskatoon, Saskatchewan — and 130 in-store galleries operated by a variety of retailers such as Art Van in Detroit and Sears Canada in Vancouver, British Columbia. Ten of the new stores will be in Canada with the rest in the United States.
"Thirty retailers are committed to opening stores, but it will be a bit ambitious to do them all (this year)," Tielmann said.
Spearheading the rollout will be David Wieler, recently named general manager of EQ3. Wheeler spent several years with Palliser in the early 1990s, helping develop its leather upholstery program. Before returning to the company, he worked in the high-tech sector.
The new EQ3 interior is clean and contemporary, designed to appeal to the 18 to 35 age demographic. "We have tried to focus the customer's attention on the product," Tielmann said. "The interior of the store is like a Lego system — it's easy to put together."
Palliser will supply all of the interior fixtures, including partition walls, back-lit display panels and a service center, one side of which is a cash area and the other a cappuccino bar.
"With the seasonal programs and the core lineup, there will be about 1,000 SKUs in a store, plus the accessories," Tielmann said, adding a retailer's investment to create the store, including floor samples, will be about C$250,000.
Palliser added two furniture collections to the EQ3 lineup this April. The Saga collection by Swedish designer Don Erreborn includes bedroom, dining room,entertainment and upholstery, with clean-lined case pieces in white oak and light finishes. The Caesar collection is a modular seating system. And for the first time, Palliser is offering futons.
EQ3 was one of two retail concepts launched by Palliser two years ago. There are three freestanding Palliser Room stores, and although at least one more may open, the company is shifting this program from a store to a gallery concept.
"We are very happy with the Palliser Room stores that are open," Tielmann said. "But the success we've seen with EQ3 has forced us to spend our energies developing that program."
