When Alan and Pat Richardson moved their upscale European furniture store to downtown St. Louis from Ballwin in June 2007, they expected a temporary slowdown because of the relocation.
But what the owners of English Living didn’t count on was the recession, and within months of the move tough times came calling.
"We saw what was happening in the housing market," said Alan Richardson. "We knew we were facing something, and we had to make some significant changes.
"We trimmed 40 percent of our payroll in preparation for what we thought was a storm coming. The storm came, and we thought by now, we’d be out of it."
Such hasn’t been the case.
Sales in October and November, typically the strongest months, were down 5 percent for the store at 1520 Washington Avenue. And that was on top of a 10 percent decline a year ago, after the store moved.
While the economy is hurting a range of retailers, merchants in the furniture and home furnishing business are particularly being slammed because of plunging house sales and cutbacks in big-ticket discretionary purchases.
Nationally, sales by furniture and home furnishing stores totaled $8.7 billion in November, down nearly 11 percent from sales of $9.8 billion in November of last year, according to advance figures from the U.S. Census Bureau. In comparison, sales at clothing and clothing accessory stores fell 5.8 percent. "For (furniture) retailers, it’s pretty bleak right now," said Jackie Hirschhaut, vice president of marketing for the American Home Furnishings Alliance, the nation’s largest trade association for furniture manufacturers.
Factors that can compound the problems range from bad locations to run-of-the-mill merchandise.
"It’s been rough this past year," said Susan Block, owner of The Designing Block, at 7735 Clayton Road near Hanley Road. "First we got hurt by Highway 40. Then we got hit with the economy. We really got a double dose.
"We’re not dying, I’m not going belly up, but I’m off a whole lot from the previous year."
For example, gifts being shipped from the store are about 80 percent fewer than last year, and the store was struggling to sell a piece of furniture this holiday season.
In contrast, Mueller Furniture, at 1004 East Main Street in Belleville, says its location is a huge plus.
"When the big financial crisis hit in October, we had three unusually slow days," said owner Lynwood Mueller. But that was it.
October sales figures were slightly more than the previous year, and November brought a double-digit increase. Mueller also is expecting an increase in December figures, even though the month is usually slow for furniture sales.
Mueller says the Metro East area, which is home to major employers such as Scott Air Force Base and hospitals, has helped insulate his business from the recession.
"We’re not so dependent on manufacturing," he said.
Being able to offer more promotional goods has helped Carol House Furniture at 2332 Millpark Drive in Maryland Heights, said co-owner Brook Dubman.
"There are many more opportunities for us to buy closeouts and specials. We have the warehouse space to stock up," he said.
While business is down for the year, it’s only by a little, he said.
"That’s pretty good considering the stories you hear out there," Dubman said.
Discount prices also are helping Good Works at 6323 Delmar Boulevard, which opened an outlet store in August. Both stores are in the Delmar Loop area.
Owners Chris Dougher and Rita Navarro made the move after closing the Good Works location in downtown St. Louis because of a lack of customers. The store, which was shuttered in June, was open about eight months.
"There’s no question it’s a tough time. Fortunately we opened the outlet and it helped us maintain levels," Dougher said.
The outlet, at 6707 Vernon Avenue, is open Fridays and Saturdays and offers furniture at about 40 percent off the regular price.
Although Good Works didn’t succeed downtown, Alan Richardson says he believes the locale is the right spot for English Living and he plans to stay.
Located in the historic Ely Walker building, the store offers hard-to-find imported wooden furniture, antiques and custom-made pieces.
A big plus is the store’s bustling tea room that sells about 50 loose teas.
"The tea room has scored for us. It makes the store a destination," Richardson said.
gappleson@post-dispatch.com | 314-340-8331
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