Philly retailers Oskar Huber, D&D merge
By Clint Engel -- Furniture Today, March 31, 2008
Southampton, Pa. — Retailers Oskar Huber Furniture and D&D Home Furnishings have merged to form a new chain that the owners say combines the best of both Philadelphia-area companies.
DD Huber Furniture & Design, the new name for the midpriced to upscale stores, will be rolled out to consumers in May. Changes already are underway in areas such as merchandising and operations.
The owners wouldn't disclose all the terms of the deal but said it essentially involved a stock swap, bringing the owners of the family-run businesses together under one banner with 10 stores, including two outlets.
Dave Garber, formerly CEO of the three-store D&D, is now CEO of the new company, and Ron Huber, co-president of seven-store Oskar Huber, is DD Huber president. Other owners include Jon Garber, director of merchandising and advertising (and Dave Garber's son); Julie Sebastian, accessories buyer and visual display coordinator (and Dave Garber's daughter); and Ron Huber's brothers Bob Huber, director of customer care, and Don Huber, director of warehouse operations.
The combined stores are expected to do over $50 million in the 12 months ending July 31 and about $55 million or so for the calendar year, Dave Garber said. With new initiatives under way since the merger, the owners are looking for annual sales next year of at least $60 million, although he said "a lot depends on the economy."
Ron Huber and Dave Garber have known each other for 20 years and began talking about getting together last year.
The merger "is like taking one plus one and making three," Dave Garber said. He added that Oskar Huber's strengths included "a very real grasp of the back end of the business" while D&D "had taken the lead in merchandising and marketing."
Garber said none of the D&D stores are near Oskar Huber stores, so there is no need for showroom consolidation. The stores average 45,000 square feet.
The new chain will use Oskar Huber's distribution center in Southampton, Pa. The facility recently was expanded to 100,000 square feet from 60,000 square feet. D&D's 100,000-square-foot distribution center in Allentown, Pa., has been sold to another company in the industry that Dave Garber wouldn't name.
With the challenge of running family-owned businesses, especially in today's economy, "We felt putting our assets together, our strengths together and our talents together will give us the best chance of being very successful," Ron Huber said.
"We have nowhere to go but up when the volume ramps up with our new initiatives," Dave Garber said.
By combining the retailers' advertising muscle, the newly merged chain hopes to reach more core consumers and drive more traffic. D&D's ad budget has been heavily geared to cable television, while Oskar Huber has focused on broadcast TV.
While the new company is pumping more of its overall advertising dollars into broadcast, it will supplement that with cable television advertising and direct mail. Huber declined to say what percentage of sales is dedicated to advertising.
The advertising firepower, combined with new merchandising and display programs, give the owners confidence to forecast higher sales this year.
"From the two companies, we're taking the best of the best," Jon Garber said. "The best of the best people, the best of the best vendors."
Oskar Huber leaned toward a higher-end product selection, but now will integrate more of the D&D lineup of midpriced goods. The D&D stores will add the best selling goods at the top of Huber's price spectrum.
The owners said many suppliers will increase their Philadelphia market penetration, including Aspenhome, Klaussner, Hooker, ART, Bernhardt, Sealy, Smith Bros., Lane and Natuzzi. Others will be cut, though they declined to identify those companies.
DD Huber also is incorporating room planning and design services and improving sales training "so every customer has the same level of experience and service," Jon Garber said. There will be a designer in every store, something the D&D began rolling out in November.
DD Huber is remodeling its store interiors, adding new signage and improving traffic flow and layout. The improvements should be complete by July 1. The owners declined to say how much they are investing.
In addition to D&D, the Garbers had owned four Lane Home Furnishings stores for the past four years and also managed four other Lane stores owned by the supplier, part of Furniture Brands International. Earlier this month, the Garbers agreed to sell their Lane stores to Lane as well as end the management contract on the four stores Lane already owned, Dave Garber said.
The terms of that agreement were not disclosed.
Lane President Skipper Holliman couldn't be reached for comment.
Talkback
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What about the customers ! I am still waiting for delivery of a night stand. It seems as if are...
v green - 2008-10-09 12:47:19
