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Jaunty takes firm stand against online rug sales(Furniture/Today Via Thomson Dialog NewsEdge) Los Angeles Rug source Jaunty has taken a stand against Internet rug retailing by refusing to sell to discount Web sites, according to Mac McCormick, senior vice president of sales and marketing. "The response from the field has been phenomenal. Last month, we picked up 49 new accounts," said McCormick. When asked to define the term "discount Web site," he said, "As far as I'm concerned, all the major Web rug retailers are discount sites." Jaunty implemented the policy in June, when President Mike Navid sent customers a letter outlining the company's philosophy. "Jaunty is aggressively implementing a Web-free sales philosophy directed at protecting the margins and credibility of our active accounts," the letter said. "Jaunty Co. Inc. does not authorize the company name, logo or best-selling patterns on any Web site other than its own information-only Web site." Navid's statement went beyond Internet retailing and touched on other issues now facing the industry. "Over the past decade, fewer and fewer buyers are attending home furnishings markets. Furniture retail stores, design centers, flooring stores and others are closing their doors as more and more home furnishings manufacturers are closing down their United States factories. "The reasons are numerous, as traditional retailers contend with higher taxes, increased employee benefit costs, global economics and a lack of government support to regulate competitive import inequities from China. And, not least, the growing number of very aggressive Web site discounters," Navid said. He said the company couldn't address all the challenges facing retailers, but at least it could take a stand on Internet sales. "The vast majority of retail companies are seriously unprepared to deal with the imminent competitive unpleasantness that's erupting online," he said. He added that as the Web becomes a key advertising point of reference for certain home furnishings products, it can have troubling effects on traditional retailers' margins and credibility. While a vendor's sales representatives are selling products to retailers, he said, its executives may be offering the same or similar goods to discount Web sites. "Consider that these corporate executives may also be discounting the importance of their own active retail accounts," Navid wrote. "Their actions directly result in traditional retail sales being transferred to discount Web sites. Envision the credibility issues of retailers, as perceived by their customers, when they find the same or like items being discounted on numerous and very active Web sites." Copyright 2007 Reed Business Information. All Rights Reserved. |