-- New Store Prototype - A new prototype for the Bassett store will roll out in the spring of 2007. Key elements of the new prototype will be incorporated into existing stores late this year and throughout 2007.
"These are exciting and necessary changes for the Company and combined with recent additions to our retail team will better position us for sales growth through selling more furniture in our current Bassett stores," said Mr. Spilman. As previously announced, Bassett appointed Jason Camp as senior vice president of retail, a new role responsible for sales, marketing, retail merchandising and corporate store operations.
Some of these changes are negatively impacting retail segment gross margins in the short-term as many of the stores have been selling selected products at clearance prices in order to prepare for the arrival of new products and featured catalog products. The Company-owned stores have also been discounting more aggressively in response to the slower pace of traffic in the stores.
Bassett's effort to merge the 25 corporate stores from five independent operating units into a centrally managed operation continues. As previously discussed, changes being made to drive more traffic, improve staffing, standardize pricing and streamline operations are taking longer than anticipated to implement. These changes have also resulted in short term challenges but are expected to lead to improvement in the long-term.
BassettFurniture Industries Inc is a leading manufacturer and marketer of high quality, mid-priced home furnishings. With more than 130 Bassett Furniture Direct stores, Bassett has leveraged its strong brand name in furniture into a growing network of licensed stores that focus on providing consumers with a friendly and professional environment for buying furniture and accessories.
Bassett Furniture Industries Inc
marketing@alchempro.com
