James D. Carreker, Chairman and Chief Executive Officer stated, "After months of preparation, July saw the roll out of their new merchandising strategy which features lifestyle-based, in-store displays. From a merchandise standpoint, this fall's introductions focus on simplified designs for their furniture, accessories, lighting and textiles."
They have made great strides in raising quality standards throughout all departments. They have edited their assortment, which will allow for new businesses, permanent and seasonal, such as the Halloween assortment that will debut later this month. The new lifestyle presentation showcases the merchandise in a manner that they expect will inspire their customers with decorating ideas and helps them to visualize their merchandise in their homes.
"Notwithstanding the excitement of the new look, they significantly underestimated the impact of two key aspects of the second quarter. First, they underestimated the sales and margin impact of the transition."
Margin drains from clearance merchandise and the sale of floor models were significantly higher than was previously planned. Second, their direct business was much softer than anticipated. They have taken actions to reinvigorate this channel that should begin to impact the third quarter.
"They are encouraged by the response to their new look and assortment. Same store sales were positive during the last two weeks of the month."
Although it may take some time for their customers to fully appreciate their investment in the presentation and merchandise, they believe that both are much improved compared to the prior years and should generate improving sales and gross margin rates as the fall season progresses. They remain cautiously optimistic about the second half of the year, concluded Mr. Carreker.
Texas based The Bombay Company Inc designs, sources and markets a unique line of home accessories, wall decor and furniture through 495 retail outlets, specialty catalogs and the Internet in the U.S. and internationally. It offers furnishings with elegant designs, warm colors and luxurious textures. Your home becomes more welcoming and inviting with furniture and home décor pieces that reflect your personal style.
marketing@alchempro.com
