Despite a dip in furniture sales triggered by mortgage and credit troubles, a new home store is wading into the metro area’s retail market.
Great Gatherings, a 17,000-square-foot furniture retailer in the Virginia Gateway Center in Gainesville will open its doors today with a grand opening planned for tomorrow. The store will sell products from over 50 vendors geared exclusively to home entertaining.
There will be billiard tables, high-top tables and bar stools, wine cabinets, outdoor furniture, grills, barware, glassware, and serveware — but no bedroom furniture, TVs, sound systems, or table settings.
“The DC area is populated with people that love to entertain,” said Joe Pucci, president of Great Gatherings and game room furniture manufacturer American Heritage Billiards, which is launching the new venture.
Pucci is betting on the popularity of social gatherings in the DC area. He plans to open stores in Fairfax and Annapolis by the end of 2008, and Rockville and Dulles by the end of 2009. The chain will then branch out to other parts of the country, opening a total of 20 stores in the next five years.
Part of the reason for launching in the D.C. area is the area’s demographic. Pucci is targeting those with incomes greater than $120,000 and homes larger than 3,000 square feet. Whole room sets range from $5,000 up to $100,000.
Other furniture stores have managed to “sweep customers in,” said Pucci, by creating an experience. His store will have cooking and entertaining demonstrations, from making sushi rolls, mixing drinks, playing card games, and working a grill.
But the current furniture market is the worst it’s been in over 30 years, said Larry Karel, president of Karel Exposition Management, a Florida-based company that runs furnituretrade shows throughout the country.
According to the U.S. Census Bureau, retail sales for furniture and home furnishings stores dipped by 0.5 percent in January to $10.01 billion from December’s $10.06 billion. From January 2007, when sales stood at $10.47 billion, sales have declined 4.4 percent.
Pucci acknowledged the sour market, but thinks it will turn around in 12 to 24 months.
There has been improvement said Karel, who cited repeat vendor attendance at his shows.
“Everyone says it’s getting better,” he said.
