NORFOLK, Nebraska – As container prices continue to fall, one retailer says it means better pricing news is sure to come.
Kyle Deets, vice president of family-owned Deets Furniture, said his inbox is becoming increasingly full of vendors relaying news that their prices are falling. He said savvy retailers should read this to signify that the opportunity is here.
“Over the last 60 to 90 days, we’re starting to see vendors getting more aggressive with promotions, so to me it looks like there are deals to be made,” Deets said. “I think we are declining in prices. I think there will be some continued reduced prices on containers, and that applies to furniture prices. A lot of the increases we had were due to container prices.”
And with deals on the menu, Deets said he’s positioning the three-storey retailer, which also has an Ashley HomeStore, well for the rest of the year and for upcoming promotional campaigns like next month’s Labor Day. He said that as the supply chain situation continues to improve, it is helping to return orders and lead times to normal, more manageable levels.
“We have a strong inventory position through Labor Day. We feel good about being able to deliver to the customer and get the product when and where they want it,” said Deets. “It looks like our watermark was mid-July, and we are on track to normalize our incoming order flow as lead times have shortened. We didn’t have to order as much, so it helped normalize our business.
“We still see a fair amount of demand out there, so we feel good about that and overall consumer sentiment. We feel good about that on Labor Day and Black Friday.”
Also, said Deets, an added benefit of the improved lead times is that Deets Furniture’s backlog has been nearly cut in half.
“I’ve been watching this very closely as lead times have improved. We didn’t need such a deep backlog. If a supplier was out for six months, we had to organize orders every few weeks to make sure things were flowing properly,” Deets said. “Now that some suppliers are shipping every three to five weeks, we don’t need such a long delay.
“We feel that we can manage each supplier based on their current position and their ability to ship quickly. This is a constant battle, but it’s part of the business, making sure you’re on top of supplier delivery times.”
Furniture Today wants to know what retailers are hearing from their suppliers as shipments and shipping rates continue to drop, as well as how they are positioned for Labor Day and the rest of 2022. Email us at retail editor Thomas Lester at [email protected] with his perspective.