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[bsa-protech-form] Don’t Let OSRA Penalize You: HFA and BlueCargo Can Help

The Ever-Changing Landscape of Furniture Importing

Home furniture businesses involved in container imports and related activities are complex and dynamic. Disruptions can significantly impede the flow of containerized goods arriving in the US, throwing your meticulously crafted plans into disarray. Adding to the complexity, the Ocean Shipping Reform Act (OSRA) has significantly transformed the landscape, imposing a heavier responsibility on companies to handle Detention & Demurrage (D&D) fees.

Importers who take too long to unload containers or return empty containers to ports are charged fees, such as financial penalties (D&D), which can lead to significant financial issues.

Proactive Maneuvering is Paramount

The new OSRA regulations took effect in May 2024, emphasizing the ongoing need for effective D&D stewardship. The window for disputing D&D invoices has been shortened, underlining the importance of taking proactive steps to avoid unnecessary charges. This is where the strategic partnership between the Home Furnishings Association (HFA) and BlueCargo comes into play.

HFA and BlueCargo: Your Reliable Supporters

The HFA understands the challenges OSRA imposes and the constantly changing logistics industry. That’s why they’ve partnered with BlueCargo, an award-winning freight audit platform, to give their members the tools they need to succeed. BlueCargo gives North American importers the ability to:

A Tangible Illustration of Success

Industry titans like GE Appliances stand as a testament to the potency of proactive freight audit practices. Through their partnership with BlueCargo, GE Appliances avoided paying a significant $1.6 million in container late fees. This narrative underscores the paramount importance of meticulous invoice auditing in safeguarding your business from substantial financial hemorrhaging.

Benefits of the HFA-BlueCargo Partnership

Members of the HFA can access a variety of resources tailored to assist them in complying with the new OSRA rules and excelling in the constantly evolving realm of furniture importation.

BlueCargo: Empowering You to Streamline Your Supply Chain

BlueCargo is an award-winning logistics tech platform carefully designed to revolutionize your entire container workflow. Its mission is to guarantee fair freight & drayage billing and accurate accessorial fees at all US Ports. BlueCargo empowers top North American importers, including furniture companies, to track container movements efficiently and simplify auditing their freight expenses.

Maintain a positive outlook with steadfast support

The HFA remains steadfast in supporting its members in the ever-evolving regulatory Logistics terrain. Partnering with BlueCargo, HFA empowers you to master the complex world of furniture supply chain confidently.

Gain the tools and expertise to take control of Drayage and D&D charges, optimize your freight costs, and stay ahead of the game

Achieve Strategic Growth by Bridging the Gap Between B2B and DTC

The furniture retail landscape is evolving rapidly, breaking down the traditional barriers that once separated B2B (business-to-business) and DTC (direct-to-consumer) operations. As these silos dissolve, a more interconnected ecosystem is emerging. Home furnishings retailers increasingly recognize the value of integrating these channels to create a seamless experience for wholesale buyers, individual customers, and interior designers or consultants who often serve as intermediaries. This unified approach enhances customer satisfaction and drives growth and innovation in the industry.

Shopify offers powerful tools in this evolution, delivering a robust platform capable of seamlessly managing B2B and DTC operations. This unification unlocks several key benefits for home furnishings retailers:

Enhanced Efficiency and Streamlined Processes

Eliminate the need for separate platforms and manual order processing. Centralized platforms manage B2B and DTC transactions efficiently, freeing valuable time and resources.

Data-Driven Insights

Retailers gain a comprehensive understanding of customer behavior across both B2B and DTC channels. A unified platform helps retailers make the most of analytics with insights into purchase patterns, preferences, and trends. Retailers can then personalize offerings, refine marketing strategies, and optimize inventory management.

Unified Customer Journeys

Consistent and intuitive experiences serve all customers, regardless of their purchase type. Interior designers sourcing furniture for their clients, individual homeowners seeking stylish pieces, and bulk wholesale buyers can all navigate the same user-friendly interface, fostering brand loyalty and customer satisfaction across the board.

Scalability for Growth

As a business expands, a unified platform scales with it. Flexible infrastructure accommodates growth into new markets and customer segments, regardless of order size or complexity.

Strategic Partnerships Based on Unique Buying Needs

Unified platforms also allow retailers to cater to the unique requirements of both interior designers and wholesale buyers. For example, retailers can forge strategic alliances with designers by offering competitive discounts and streamlining their B2B access.

Industry West: A Case Study in Unified Growth

Industry West, a prominent furniture retailer, showcases the transformative power of integrating B2B and DTC operations. Known for its meticulously curated furniture pieces, Industry West has become a staple in both high-end and everyday settings, from executive suites to public spaces like airports and hotels.

Initially, Industry West faced challenges with their previous platform, Adobe Commerce (formerly Magento). The need for greater efficiency and the ability to offer customized experiences prompted the switch to Shopify. This transition has led to remarkable improvements:

By moving to Shopify, Industry West was able to consolidate their operations, eliminating the inefficiencies of managing separate systems for B2B and DTC. This integration allowed for smoother transaction processing and freed up resources for other critical business functions.

The unified platform provided Industry West with a holistic view of customer behavior. This comprehensive data enabled the company to tailor their offerings and marketing strategies more effectively, catering to both individual consumers and large-scale buyers.

Customers of Industry West, whether they are interior designers, homeowners, or wholesale buyers, now enjoy a seamless and consistent shopping experience. This uniformity has strengthened customer loyalty and satisfaction, encouraging repeat business and positive referrals.

Shopify’s flexible infrastructure has supported Industry West’s growth into new markets and customer segments. The platform’s scalability has been crucial in accommodating the company’s expanding operations without compromising on efficiency or customer experience.

Industry West has leveraged Shopify’s capabilities to build strategic partnerships with interior designers and wholesale buyers. By offering competitive discounts and streamlined B2B access, the company has enhanced its appeal to these key customer segments, fostering long-term relationships that drive growth.

Brooklinen: Streamlining B2B Operations

The benefits of personalized experiences also extend to wholesale customers, driving efficiency and growth. Consider Brooklinen’s shift from the manual, time-consuming process of taking B2B orders over the phone. The Brooklinen team says they have been taking B2B orders for as long as the brand has existed. By migrating their B2B operations to Shopify, Brooklinen created a self-service B2B portal that mirrored their DTC experience.

Nicolas Lukac, director of emerging channels at Brooklinen, explained before implementing Shopify, “The core of our B2B business is the hospitality business. Right now, all of that is handled offline. There’s no way for our customers to have a personalized experience like our DTC customers do online.” With Shopify, Brooklinen streamlined processes and provided invaluable data insights, propelling their brand forward.

Data-driven insights enhance personalized buying experiences as well. As Kelly Hallinan, senior vice president of emerging channels at Brooklinen, explains, “Now, we can see that a large hospitality group purchased from us six months ago. We know the average time between orders, and we can say, okay, we’re at that point where we can email them asking about placing a reorder. It’s much harder to do that without Shopify’s back-end system.” As a result of automation and analytics, their staff can spend 80% of their time working with customers while unlocking self-serve so that customers can manage their orders.

Embrace Unification for Sustainable Growth

Disconnected channels no longer define the home furnishings landscape. Instead, B2B and DTC are becoming seamlessly interconnected and powered by platforms like Shopify. By embracing unification, brands like Industry West and Brooklinen can craft exceptional customer experiences, forge strategic partnerships, and achieve sustainable growth in a dynamic market.

Ready to take your furniture retail business to the next level? Discover how unifying B2B and DTC operations can drive growth and efficiency. Download the Shopify Furniture Report to learn more.

Mattress Recycling: Why Should We Care 

One of the keys to improving the furniture industry’s carbon footprint is the issue of mattress recycling in the United States. This is arguably one of the home furnishings industry’s most important, misunderstood, and overlooked environmental issues. It is estimated that, in 2025, approximately 20 million mattresses will be disposed of, with the overwhelming majority ending up in landfills. 

The impact of mattress recycling has a profound negative effect on our planet’s ecosystem because it can take over 100 years for a mattress to decompose. Moreover, mattresses break down in landfills, releasing methane. This potent greenhouse gas contributes to global warming and exacerbates climate change with its associated impacts.

Mattresses decompose, releasing harmful gases that contribute to soil and water pollution. Discarded mattresses hold in leachate, a liquid that passes through the waste and contains dangerous contaminants. One irony is that landfills do not want mattresses, as the springs in the mattresses can get tangled in their equipment and cause severe damage to the machinery.  

This is particularly true with the ever-increasing number of pocketed coils that are also more costly to recycle. Mattresses occupy an average of 400% more space than anything else around them. Some estimates indicate that burying a mattress can be more than twice as expensive as recycling it. 

We have experienced a growing awareness about the importance of recycling plastic containers, paper products, and bottles. However, having owned and operated mattress retail showrooms since the 1980s, I genuinely believe that where a mattress goes after its removal is primarily out of sight and out of mind for most consumers and retailers. 

Currently, only three states—California, Connecticut, and Rhode Island (Oregon is coming on board)—have enacted mattress recycling initiatives requiring consumers to pay a recycling fee with the purchase of a new mattress and box foundation/spring. 

 The Mattress Recycling Council (MRC) and its Bye Bye Mattress program should be commended for coordinating and administrating the recycling efforts in these states. However, even adding the population of Oregon to the three states with recycling laws, much work is needed. There remain 46 states that still do not have mattress recycling laws, which equals 85% of the country’s population.  

I encourage all retailers in our industry that sell and dispose of mattresses for their customers to visit MattressRecyclingCouncil.org to learn more about the programs offered and how they are leading the effort to keep mattresses out of landfills and preserve our environment.  

If your state does not have legislation in motion for mattress recycling laws, you could contact your local state senators or House of Representatives members inquiring if they would consider introducing legislation for mattress recycling. 

 For retailers offering mattress disposal for customers who have been sending disposals to landfills, consider finding the nearest mattress recycling facility near your store and exploring cost-effective ways to transport the old mattresses to the recycler.  

If the nearest recycler is a long distance away, talk to them about putting a collection trailer at your store for pick up (or you could deliver to them when it is full). You can also arrange a transfer drop-off point to be shared with other retailers, creating another pathway to the recycler.  

You could include in your advertising and marketing programs that you offer mattress recycling as a service. This might be why an eco-aware consumer will come to your store versus a competitor not offering recycling.  

Responsible mattress disposal is an urgent environmental issue, and a lack of action will have long-term adverse consequences for the planet and the public’s health. I have every confidence that we could be leaders in the mattress recycling and sustainability movement and give back to the communities that support our businesses.

Furniture Banks: Recycling Furniture and Restoring Lives

Picture this: It’s a happy day. You just got the keys to your new apartment after years of experiencing housing insecurity. First and last month’s rent, deposits, utilities, and basic necessities such as food leave you with little money to spend on furniture, so the door closes on an empty space. How can you start fresh if you wake up on the floor? The above scenario is the reality of furniture poverty and the reason why furniture banks exist.

Now is the perfect time to discuss corporate responsibility in the home furnishings industry, and furniture banks must be part of the discussion. If you want your company’s giving back policy to walk the walk, it’s as simple as finding an organization that uses furniture to help people thrive.

Furniture banks in the community

Furniture banks are nonprofit organizations or registered charities that are set up to provide gently-used furnishings and household necessities to individuals and families in need. People who no longer want and need items donate them, and those items go right back into the community to help turn empty living spaces into homes.

There are approximately 130 furniture banks across North America. While each one is a separate entity with its own in-house standards and program of work, the premise is universal: furniture changes lives. Furniture banks partner with agencies and organizations in their communities to identify furniture needs. Schools, faith groups, healthcare, and civic groups refer people to their local furniture bank when it’s the right time for furniture to make a difference. In the process, a collaborative community network is fostered.

Retailers can make a difference

Furniture banks are to furniture poverty what food banks are to hunger. At their core, these organizations are logistics companies moving furniture from point A to point B, aiming to transform empty living spaces into functional homes. None of this can happen without the star of the show: furniture! This is where retailers come in. Donating odd stock inventory, returns, and canceled shipments to a 501(c)(3) nonprofit profoundly impacts the community. It can often be deductible up to the full retail value of the item.

Furniture banks rely on donations, which means that organizations meeting a rising need are often faced with inventory shortages, especially with larger core items such as mattresses, couches, and tables. Retailers looking to strengthen their company’s giving strategy have an easy fix in their local furniture bank. In-kind donations of furniture and home goods are not only write-offs, but they also offer a company a hyper-local way of demonstrating their commitment to the area they serve. Scheduling a donation pickup with a furniture bank moves old products out while at the same time helping ensure adequate inventory for an organization on the front lines of eradicating furniture poverty. It’s a win-win.

The life cycle of a piece of furniture

Furniture banks are rooted in sustainability. Combatting furniture poverty by accepting and distributing gently-used items makes a staggering difference in reducing waste. The Barnabas Furniture Bank in the High Point, NC, area collects more than 10,000 pieces of furniture annually, keeping 125 tons of furniture waste out of landfills.

Every piece of furniture tells a story. By supporting organizations that can extend the life of a sofa, table, or bed, we’re preserving pieces with lots of life left in them. In doing so, we’re ensuring that every neighbor has a place to sit, eat, and sleep.

Beyond Sofas: A CSR Strategy Can Build Your Brand & Boost Sales

In retail furniture, standing out from the competition is essential. While quality and design have always been critical, today’s consumers are looking for more—they care deeply about the social impact of the companies they support. This is where Corporate Social Responsibility (CSR) comes into play. CSR isn’t just a buzzword; it’s a powerful tool that can strengthen your brand, attract new customers, and drive sales. This blog will review the key takeaways from implementing a CSR strategy in your home furnishings business.

CSR 101 for Furniture Retailers

Corporate Social Responsibility refers to a company’s commitment to responsibly managing its social, environmental, and economic effects. For furniture retailers, this means looking beyond profit margins to consider ethical sourcing, fair labor practices, and environmental sustainability.

  1. Ethical Sourcing: It is crucial to ensure that the materials used in your furniture come from sources that respect human rights and the environment. This could involve choosing suppliers who practice sustainable forestry or use recycled materials.
  2. Fair Labor Practices: Customers are increasingly concerned about the working conditions of those who produce their goods. Implementing fair labor practices within your supply chain can enhance your brand’s reputation.
  3. Environmental Sustainability: Adopting eco-friendly practices can set your brand apart, from reducing carbon footprints to minimizing waste. These include using non-toxic finishes, energy-efficient production processes, and sustainable packaging.

Identifying CSR Opportunities

The next step is your CSR strategy is to identify initiatives that align with your company’s values and resonate with your target audience. Here are some areas to consider:

  1. Supporting Local Communities: Engage with the community by supporting local artisans, sponsoring community events, or donating to local causes. This not only builds goodwill but also establishes a strong local presence.
  2. Employee Well-Being Programs: Happy employees lead to happy customers. Implement programs that promote employee health, wellness, and professional development. This can improve morale and reduce turnover.
  3. Partnerships with Environmental Organizations: Collaborate with organizations that focus on sustainability. Whether planting trees, cleaning up local parks, or supporting conservation efforts, these partnerships can enhance your brand’s green credentials.

Turning CSR into a Brand Advantage

Effectively communicating your CSR efforts to your customers is crucial. Here’s how you can turn a CSR strategy into a brand advantage:

  1. Marketing Tactics: Highlight your CSR initiatives in your marketing campaigns. Tell your CSR story on your website, social media, and in-store displays.
  2. Storytelling Techniques: Share the stories behind your CSR efforts. Whether it’s a video of a tree-planting event or an interview with an employee benefiting from a wellness program, storytelling can create an emotional connection with your customers.
  3. Customer Engagement: Involve your customers in your CSR activities. Invite them to participate in community events or offer them the option to donate to a cause with every purchase. This fosters a sense of community and loyalty.

The Impact of CSR on Sales

CSR can significantly influence consumer purchasing decisions. Research shows that millennials and Gen Z are particularly driven by social responsibility. Here’s how CSR can impact your sales:

  1. Brand Loyalty: Customers are likelier to remain loyal to a brand that aligns with their values. This can lead to repeat business and positive word-of-mouth referrals.
  2. Attracting New Customers: A strong CSR program can attract socially conscious consumers who might not have considered your brand otherwise.
  3. Differentiating Your Brand: In a crowded market, CSR can help differentiate your brand from competitors. A unique CSR initiative can be a deciding factor for customers.

Measuring the Impact of CSR

To ensure your CSR efforts are effective, measuring their impact is essential. Here are some metrics to consider:

  1. Brand Perception: Use surveys and social media analytics to gauge how customers perceive your brand’s CSR efforts.
  2. Customer Engagement: Track engagement levels on your CSR-related content. This includes website traffic, social media interactions, and participation in CSR events.
  3. Sales Growth: Analyze sales data to identify any correlation between CSR initiatives and sales performance. Look for trends that indicate increased sales following CSR campaigns.

Incorporating a CSR strategy into your furniture retail business is more than just a trend—it’s a strategic move that can lead to sustainable growth. By understanding the principles of CSR, identifying meaningful initiatives, effectively communicating your efforts, and measuring their impact, you can build a stronger brand and boost your sales.

How Supply Chain Transparency & Technology are Making the Furniture Industry Greener

Lately, sustainability is all the rage in the furniture world. Manufacturers feel pressure to innovate as more consumers demand eco-friendly and ethically produced items. Technology plays a crucial role here, especially technologies that enhance the visibility of the supply chain. This blog post focuses on how enhancing supply chain transparency, traceability, and adherence to rigorous standards can significantly boost the environmental friendliness of furniture products.

What’s the Current State of Sustainability in the Furniture Industry?

Let’s face it, the furniture industry has some eco-demons to face. From how raw materials are gathered to the waste left behind, traditional methods aren’t exactly Mother Earth’s best friend. Think deforestation, hefty energy use, and a whole lot of trash. As we tackle these issues, pushing for sustainable alternatives isn’t just nice – it’s necessary.

Why Supply Chain Transparency is a Game Changer

Knowing what happens at every step of making your favorite couch or desk is key to keeping things green. Supply chain transparency helps companies spot and fix not-so-great practices, like illegal logging or sketchy labor conditions. Plus, when consumers trust that their new bookshelf isn’t harming the planet or people, they’re more likely to stick with a brand that’s doing things right.

The Role of Traceability in Sustainable Practices

Traceability is about keeping tabs on where materials come from and where they go. In the furniture game, it’s especially important for materials like wood, ensuring they’re sourced from forests that are looked after properly. Certifications like the Forest Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC) help ensure that, giving shoppers peace of mind with their purchases.

Upholding Standards through Policies, Audits, and Corrective Action Plans

High standards don’t just maintain themselves. It starts with robust policies that set clear expectations and a path to greener operations. Consistent audits act as a reality check, catching any areas that might stray off course, while proactive corrective action plans tackle these issues head-on, ensuring ongoing improvements. This approach maintains high standards and integrates them into the company’s culture, promoting accountability and commitment from top to bottom.

The Future of the Furniture Industry is Bright (and Green)

Looking ahead, the future of sustainability in the furniture industry is promising. As tech evolves, we will see even cooler tools and solutions that increase sustainability. But getting there means everyone from the big manufacturers to the consumers needs to be on board. With the right tools, the furniture industry can take some major green strides.

How OSCA Drives Sustainability and Efficiency in the Furniture Industry

Setlog’s OSCA software exemplifies how technology can drive sustainability in the furniture industry. It enhances supply chain transparency and traceability, offering real-time updates and keeping everyone across the supply chain in the loop. Key features of OSCA include:

 

Setlog: Facilitating supply chains for 150+ brands in 92+ countries with 15,000+ partners and 40,000+ users since 2001.
Setlog: Facilitating supply chains for 150+ brands in 92+ countries with 15,000+ partners and 40,000+ users since 2001.

Rolling out OSCA can smooth out a furniture manufacturer’s operations, making everything from production to delivery greener and more efficient. This system gets down to the nitty-gritty of tracking materials and products, cutting waste, and streamlining processes, which shrinks that ecological footprint. OSCA ensures everything follows strict sustainability standards, beefing up a company’s green creds. This boosts its appeal to eco-conscious consumers and investors, who increasingly seek companies demonstrating genuine, actionable sustainability commitment. Using OSCA positions a manufacturer as a leader in green innovation, enhancing its marketability and customer loyalty in a competitive industry.

OSCA Risk Analysis by Setlog: Risk assessment of different companies in the aspects “Environment”, “Social”, and “Governance”.
OSCA Risk Analysis by Setlog: Risk assessment of different companies in the aspects “Environment”, “Social”, and “Governance”.

Summing Up: The Path Towards Sustainable Furniture

In today’s furniture market, adopting green practices is no longer optional – it’s essential. Eliyahu M. Goldratt once pointed out, “An hour lost at a bottleneck is an hour out of the entire system,” emphasizing the importance of efficient processes in sustainable supply chain management. This efficiency is critical not just for competitiveness but also to meet the demands of regulators and eco-conscious consumers. Tech solutions like OSCA are revolutionizing this space, enhancing ease and effectiveness in achieving sustainability goals while maintaining compliance. As George Westerman insightfully noted, “Digital is not an initiative. It’s the new normal,” underscoring the necessity of digital transformation in the industry. This shift is not about keeping pace; it’s about setting the pace and leading the charge towards a more sustainable and efficient future. It’s imperative for industry leaders to embrace these technologies to stay competitive and innovative in a rapidly evolving marketplace.

 

The Benefits of a CSR Program: How 3 Retailers Are Making a Positive Impact

In an era where businesses are no longer solely judged by their bottom line, corporate social responsibility (CSR) has become a critical aspect of modern commerce. For home furnishings businesses, having a CSR program is an ethical imperative and a strategic choice that can engage employees, attract customers, and benefit the community. To understand the importance of CSR in the home furnishings sector, we spoke with Room & Board Home Furnishings, Hometrends LLC dba Ashley Stores of Central Nebraska, and Gorman’s Home Furnishings & Interior Design about their CSR initiatives and the positive impact these programs have on key stakeholders.

The CSR Programs at Room & Board, Hometrends LLC dba Ashley Stores of Central Nebraska, and Gorman’s Home Furnishings & Interior Design

Room & Board’s CSR Framework

Emily McGarvey, Director of Sustainability, and Nancy Greatrix, Chief People Officer at Room & Board, shared insights into their comprehensive CSR framework: Better Products, Better for People, and Better for the Planet. This framework encompasses four pillars driving their philanthropic efforts and volunteerism:

  1. Sustainability: Focused on reforestation and education.
  2. Community: Addressing homelessness and housing security.
  3. Belonging: Supporting the LGBT community since the mid-1990s.
  4. Art & Design: Promoting access to and appreciation for contemporary art.

Every year, Room & Board publishes a Sustainability Impact Report to communicate the strategies, goals, and yearly actions of its sustainability programs and highlight their impact on both people and the planet.

Hometrends LLC dba Ashley Stores of Central Nebraska’s CSR Philosophy

Carson Rowh, Owner and Director of Talent and Employee Experience, and Sarah Luther detailed their mission-driven CSR philosophy. Inspired by Danny Meyer’s book Setting the Table: The Transforming Power of Hospitality in Business, their mission to “Serve 500,000 Families by 2030” has become central to their company culture.

Carson explained, “We believe that each stakeholder group serves and is served by others in a virtuous cycle, with our employees at the top. Serving our people well ensures they serve our customers well, which extends to our suppliers, communities, and shareholders.” This mission is measured by tracking customers, employees, and communities served through donations, volunteer hours, and blood donations. Quarterly and annual goals are set to stay on track toward their larger mission.

Gorman’s Home Furnishings & Interior Design’s Initiative

Duane Petroskey, President of Gorman’s Home Furnishings & Interior Design, introduced “Michigan’s Largest Housewarming Party,” a social responsibility initiative to collect gently used furniture and new household items for families and individuals in need throughout the metro Detroit area. Conducted during the first quarter of 2024, Gorman’s used its delivery trucks every other Tuesday, starting January 16, to pick up gently used furniture from households in metro Detroit at no cost. This service supported those looking to remodel, clean, downsize, or redecorate their homes. Additionally, Gorman’s collected new, unused household items in its stores during the same period. Beneficiaries included the Furniture Bank of Southeastern Michigan, Habitat ReStores of Oakland County, and Humble Design Detroit.

How A CSR Program Benefits Employees

Enhanced Employee Morale and Engagement

Implementing a CSR program can significantly boost employee morale and engagement. When employees know that their company actively contributes to social and environmental causes, they are likelier to feel proud of their workplace. This pride increases job satisfaction and a sense of purpose, enhancing overall productivity and performance.

Carson Rowh noted, “Research on employee satisfaction and retention shows that having a purpose bigger than just a paycheck is important to our employees. Our engagement score is 84%, and our employee turnover is at a five-year low of 40%. When employees feel their organization contributes to something bigger, they become more engaged and likely to stay.”

Sarah Luther added, “We track how many families our employees have impacted by calculating volunteer hours and blood donations. Employees receive one hour of company time off monthly for volunteering if needed. We recently celebrated a major milestone with all employees and their families to recognize their contributions to our mission.”

Room & Board’s inclusion in Inc.’s Best Workplaces Survey reflects similar results. Nancy shared, “More than 90% of our staff members are proud to work at Room & Board and believe in the organization’s future success. Our Community Partnership Program, initiated 20 years ago, involves staff in giving and volunteerism, fostering a sense of purpose and community.”

Duane Petroskey highlighted how Gorman’s employees were actively engaged in the “Michigan’s Largest Housewarming Party” campaign. Employees coordinated and managed the logistics of furniture pickups and household item collections, organized schedules, and maintained clear communication with donors. Frontline store employees, interior design staff, and delivery drivers promoted the campaign, connecting with customers on a deeper level and fostering teamwork and camaraderie.

Attraction and Retention of Talent

Companies with strong CSR initiatives often appeal more to potential employees in a competitive job market. A CSR program can be a valuable recruitment tool, allowing businesses to attract and retain top talent.

Nancy Greatrix emphasized, “CSR is crucial in the recruitment process. Our sustainability work and community contributions resonate with potential staff members who seek meaningful employment. Many new hires cite our sustainability and philanthropy efforts as reasons for joining our team.”

Sarah Luther concurred, “When engaging with potential employees, our ‘Impacting Families’ mission is the first thing I discuss. It’s always met with enthusiasm and respect for our company’s values.”

Professional Development, Skill Building, and Wellness

CSR programs offer unique opportunities for employees to develop new skills and gain valuable experiences. Whether organizing community events, participating in sustainability initiatives, or managing charitable partnerships, these activities contribute to personal and professional growth.

Nancy highlighted, “Our Community Partnership Program allows staff to get involved with local non-profits, aligning with our core values. This fosters a sense of community and helps employees develop valuable skills and become better people.”

Duane Petroskey noted that Gorman’s employees experienced a sense of purpose and alignment with the company’s values and mission through their involvement in the housewarming campaign. Employees saw firsthand the positive impact of their efforts on local families, reinforcing their commitment to community support.

Benefits for Customers

Enhanced Brand Loyalty

Consumers today are increasingly mindful of their purchases’ social and environmental impact. A well-executed CSR program can create a strong emotional connection with customers, fostering brand loyalty and higher retention rates.

Sarah Luther explained, “Our mission of ‘Impacting 500,000 Families’ is prominently displayed in our stores and on our website. Keeping customers informed about our community impact is crucial for building loyalty.”

Emily McGarvey added, “Room & Board proudly showcases our sustainability efforts in-store and online. Our customers appreciate our commitment to sustainability, strengthening their loyalty to our brand.”

Competitive Advantage

In a saturated market, a CSR program can differentiate a home furnishings business from its competitors. Customers increasingly choose companies that share their values, making CSR a significant differentiator.

Emily noted, “Our sustainability efforts, like the Urban Wood Project, set us apart from competitors. We’ve also made strides in waste diversion, reducing landfill contributions, and generating revenue from recycled materials.”

Benefits for the Community

Strengthening Community Ties

Engaging with the community through CSR activities builds stronger relationships with local residents and organizations. These connections can lead to collaborative partnerships, drive new customers to your store, and provide insights into community needs and preferences.

Nancy shared, “Room & Board donates approximately 2% of our profits yearly to over 70 nonprofit partners, focusing on sustainability, community, and the arts. This commitment has been a part of our culture and business philosophy for years.”

Sarah added, “We focus on specific volunteer goals and organize significant community events to give back each quarter. These initiatives strengthen our community ties and enhance our local presence.”

Duane Petroskey highlighted the success of Gorman’s “Michigan’s Largest Housewarming Party,” which performed approximately 300 pick-ups and collected more than 400 pieces of furniture. This initiative effectively supported families and individuals in need, fostering stronger community ties.

Increased Customer Engagement

When your CSR program benefits the community, it also engages your customers on a deeper level. Customers who see your business actively participating in social and environmental causes are likelier to get involved, fostering a sense of community and shared purpose.

Sarah described a recent initiative, “We’re currently running a food drive for local Salvation Army branches. For every five pounds of food donated, one family is impacted. Our delivery teams promote this cause during furniture deliveries, encouraging customers to contribute.”

Nancy added, “Our customers care deeply about their community and the environment. They respect our sustainable sourcing and charitable efforts, which enhances their engagement with our brand.”

Duane emphasized that Gorman’s extensive community outreach and clear communication about the types of items needed played a crucial role in encouraging donations and raising awareness about the campaign’s goals. The regional news media also supported the event, increasing awareness beyond Gorman’s customers and educating people about the need for furniture and home goods donations.

Conclusion

Incorporating a CSR program into your home furnishings business can have numerous positive outcomes. The initiatives at Room & Board Home Furnishings, Hometrends LLC dba Ashley Stores of Central Nebraska, and Gorman’s Home Furnishings & Interior Design demonstrate how a focus on CSR can improve employee morale, customer trust, and community impact. By developing a CSR program that aligns with your company culture and values, you can balance financial success with meaningful contributions to society.

As Nancy Greatrix aptly said, “CSR needs to be more meaningful than just writing a check. If you and your employees can give of themselves, there is something intrinsic about that, and it becomes a part of a wellness plan for the soul.”

So, what CSR program will you build in your business? It’s time to take meaningful action and adopt strategic measures to enhance your corporate social responsibility initiatives.

Seizing Growth Opportunities for Furniture Retailers in the Next Six Months

Exciting growth opportunities are emerging on the horizon for furniture and bedding retailers. As several national and regional non-furniture retailers face challenges, smaller regional furniture retailers can capitalize on these openings. With low occupancy rent expenses, these retailers can expand into existing and new markets, filling gaps left by struggling competitors. This shift is driven by high interest rates, changes in retail formats, and evolving real estate markets.

Top Growth Areas:

  1. Florida:
    With no state tax and a growing population from the Northeast and Midwest seeking different lifestyles, Florida presents significant growth potential.
  2. Ohio:
    Cities like Cleveland, Dayton, Columbus, and Cincinnati are experiencing a boom due to lower housing costs and the influx of AI plants, computer chip companies, and cloud-based service companies.
  3. Indiana:
    Technological advancements are also fueling growth in Indiana, mirroring Ohio’s boom.
  4. North and South Carolina:
    These states offer promising opportunities, particularly in smaller markets underserved by larger competitors who have exited the business.
  5. Northern and Southern California:
    Smaller markets in these regions are ripe for expansion as many larger competitors have gone out of business, leaving a gap in the market.
  6. Inner Cities and Downtown Areas:
    With more people working from home, the office real estate market has suffered. This trend creates opportunities for furniture retailers to grow in states where urban areas struggle.

Adapt to these changes and position your business for growth by exploring these burgeoning markets. The shifting landscape presents unique opportunities to expand and thrive.

For more information on how you can seize these growth opportunities, contact Julius M Feinblum Real Estate.

Retail Real Estate Road to Growth: Top 10 Insights from Retail Experts

At the recent International Council of Shopping Centers (ICSC) conference in Las Vegas, approximately 25,000 retail experts converged to share their perspectives on the retail industry’s current state and future direction. Brimming with ideas, insights, and innovations, this dynamic event provided a comprehensive look at how the sector is evolving. From examining retail real estate trends to exploring new consumer behaviors, the conference offered invaluable takeaways highlighting the forces driving transformation and growth in retail today.

Ben Haverty of the Colliers Furniture Industry Service Team shared his retail expertise and enthusiasm, and provided the top 10 insights from the leading minds in the retail industry:

  1. Minimal space availability was top of mind, as professionals stated that retail’s main issue is not excess vacant space but a shortage of desirable space. Demand is outstripping supply due to much of the new construction already being pre-leased.
  2. The tight retail space conditions are expected to continue due to declining construction starts and tenants holding onto space at higher rates. This creates a favorable situation for landlords but a more competitive leasing environment for retail tenants.
  3. The lack of new supply is driving up the value of retail real estate.
  4. Higher wages will help buoy America’s consumer spending throughout 2024 and propel retail sales growth to slightly outpace last year.
  5. The U.S. retail sector has seen increased leasing demand in food services, discount, fitness, grocery, and healthcare segments. These segments account for nearly 60% of new leasing activity, with food services leading at 19%.
  6. However, grocery stores, fitness centers, and furniture stores saw declines in leasing activity.
  7. Net lease retail is performing well despite interest rate pressures, with investors focusing on best-in-class credit tenants and well-located assets. Transactional activity will increase in 2024 as the market stabilizes on rates and valuations.
  8. The end of easy financing and a decline in venture funding have forced retail brands to abandon aggressive expansion strategies, focus on profitability, and close underperforming stores. Yet retail demand remains strong, with healthy competition for available spaces, leading brands to carefully balance digital and physical growth.
  9. Credit spreads have narrowed, but the financing market remains volatile, mainly for malls. Interest rates significantly impact consumer behavior, with luxury retail thriving but middle to lower-income spending decreasing. Inflation has mixed effects, benefiting off-price retailers but straining tenants’ financial health.
  10. Despite ample investor demand and abundant capital, volatility in the capital markets and the cost of capital create a bid-ask spread impasse. High-performing assets and rent growth mean owners don’t need to sell unless they achieve the desired pricing, while demand for quality retail assets remains high. Successful financing deals today require best-in-class sponsorship, as lenders with limited capital prefer operators with solid tenant relationships and extensive experience. Deals must also be well thought out, underwritten, and leveraged.

The insights gathered from this year’s ICSC conference offered a compelling snapshot of the retail industry’s trajectory. As the landscape evolves, these top 10 retail real estate takeaways underscore the importance of adaptability, innovation, and strategic planning. By staying informed about the latest retail real estate trends and challenges, retail professionals can better navigate the complexities of the market and seize new growth opportunities. Whether you’re a retailer, landlord, or investor, these expert perspectives provide a valuable roadmap for success in the ever-changing world of retail.

Leveraging LTO Financing for Retail Growth

Attracting and retaining customers is paramount to success in the retail furniture industry. Traditional financing models can be exclusionary; in fact, 30% of shoppers are overlooked by these options, leaving a significant portion of potential customers unable to access the furniture they need. These consumers are eager to spend but require flexible payment solutions. Lease-to-own (LTO) financing fills this gap, providing a pathway to ownership for those with no or limited credit history.

Harnessing LTO Financing for Retailer Growth

LTO financing isn’t just a consumer-friendly payment option; it’s a powerful growth strategy for furniture retailers – especially those looking to expand their eCommerce revenue. Retailer benefits include:

Implementing LTO Financing: Best Practices for Furniture Retailers

To maximize the benefits of LTO, consider the following strategies:

The Future of Furniture Retail

The rise of LTO reflects a broader shift in consumer expectations towards flexibility and financial empowerment. As this trend continues, LTO financing is poised to become an increasingly important tool for furniture retailers to drive growth, foster customer loyalty, and create a more inclusive and accessible shopping experience.

Want to learn more about unlocking growth through LTO? Contact Katapult today to discover how creating a more inclusive shopping experience for your customers can drive incremental revenue and boost your business.