Tuesday, August 7, 2007

Flexa Furniture giving up on the US market

Flexa Furniture is pulling the plug on their current US distribution strategy. In a recent press release, Flexa President Peder Sorensen is quoted as stating "a satisfactory distribution network and sales growth have not been realized in the USA." He goes on to say that "Important factors in the current US economy seem to have negative impact on retail sales which, in certain areas, are stagnating or declining at the moment. The smaller, multi-product independent retailers seem to be struggling and many have closed within the last year. Additionally, FLEXA is experiencing huge increases in the cost of raw material and

Flexa is now only going to sell their products through "Flexa Shops." These specialized shops will only sell Flexa products and not offer the consumer other options. While Flexa is a unique concept I don't think this is to the consumer's advantage.

Today's ever-changing business climate is challenging. The mass merchants (i.e. Target, Babies R Us, etc.) and the internet have brought changes in how you purchase your babies and kids products today. Many smaller retailers have struggled with these changes in recent years. There are, however, many of us who do a fabulous job and are not struggling. The independent retailers are typically where you find great customer service. Many of us started out as small boutique stores and have grown into large single or multi-store operations. Goore's started out at 2,000 square feet and is now over 30,000 square feet. We actually offer a larger selection and better customer service in our industry than any mass merchant out there.

In the short period of time we sold Flexa we enjoyed the uniqueness and value they brought to our customers. Unfortunately now we will not be able to service them for their future purchases. They will now have to go to one of 4 Flexa stores in the country. We will continue to offer a huge selection of the best quality brands and great prices and find great alternatives to Flexa for our customers.

Richard Goore
Goore's Blog

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