The greater Washington D.C. area retail furniture chain boasts 4 locations that span from Baltimore, Maryland to Richmond, Virginia. The acclaimed brand, which recently celebrated its 40th anniversary, complements its furniture and accessory offering with its design services, has created a loyal, multi-generation client base. The collection offers a curated selection of classic furniture, upholstery, lighting, rugs, and decorative pieces that blend timeless elegance with contemporary charm. Showcasing impeccable craftsmanship and a diverse range of styles with an abundance of customization options provides patrons a delightful shopping experience that is accompanied by the added benefit of professional design insight. With stock readily available in the warehouse and attractive turn times for those with large or customized orders, the chain is a one stop shop for those who want to transform their living spaces with tasteful and sophisticated elements themselves or with guidance.
The chain’s 4 retail locations range from 1,588 to 4,960 square feet, with flexible leases from $4.4k to $21k per month plus common area maintenance, that provide an acquirer the opportunity to relocate should they so desire. The spacious administrative offices and adjacent warehouse, which are 3k and 10k square feet respectively, may be rented on a secure long-term lease for $13k monthly or purchased with the business (not separately) at fair market value. All of the enterprise’s furniture, fixtures, equipment and goodwill will be included in the sale. An estimated $1.8 ml in inventory will be sold at cost at close in addition to purchase price.
This chain’s locations occupy what have historically been some of the most coveted real estate in each of its high discretionary income shopping areas. As a result, they enjoy stellar street visibility which has minimized the need for significant advertising and marketing. In addition, the retailer’s superior customer service has created an enormously loyal multi-generational client-base that has provided strong, somewhat recurring revenues. As a result of these attributes, coupled with their staff’s design know-how, ability to customize orders with an array of fabrics, and broad selection of furniture, lamps, rugs and accessories, the retailer has created a strong, sustainable value proposition that significantly contributes to its competitive advantage.
New operators may take this opportunity in any number of directions. The 40+ year old enterprise is clearly established in the bricks and mortar realm, however they have virtually no presence in the online world. Management may not only want to engage in in a comprehensive search engine optimization campaign, but they will undoubtedly wish to also explore leveraging the established brand, its decades of best practices and its spacious warehouse to establish an ecommerce offering that can elevate the business to an entirely new level. Due to the evolving marketing dynamics in the chain’s largest and most costly location, management may also explore alternate retail locations for its flagship store. Furthermore, should new management have an existing brand, product line or service offering, the existing operation may be coupled with the buyers to capture the synergies that may exist. Finally, given the proven model that has been created, the vendors that have been curated, and the excess capacity of the admin offices and warehouse, additional locations may be opened in areas with demographics comparable to the existing ones including Philadelphia, Raleigh-Durham, Charlotte and beyond.