Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
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RET AILING TODA Y identified hardwood flooring as a niche he thought the company could fill suc- cessfully, and he began opening stores. The Lumber Liquidators store in Arlington Heights, Ill., is on a major street but not near a major intersec- tion. The location is in Chicago's northwest suburbs, and thus in a densely populated and relatively afflu- ent market, but there is very little in the way of other retail in the immedi- ate vicinity. In fact, the store shares a building with an electrical engineer- ing firm. Parking is available, but just enough for a dozen or so cars. Because the location is not a typical retail setting, it presumably does not command retail-size rents. Your Florida Partner www.crec.com Sabrina Meerbott, Senior Vice President 305.779.3157, smeerbott@crec.com Carlos Guzman, Vice President 305.779.3173, cguzman@crec.com Kendall Mall & Weston Lakes Plaza Keep good company Publix, CVS, LA Fitness, Staples, Starbucks, JCPenney Home, Anna's Linens, Party City, & others Much of the store's stock is visible immediately to those walking in the door. Once inside, customers see a floor-to-ceiling array of samples, plus some of the products needed for in- stallation of a floor. The offerings comprise roughly 340 flooring vari- eties, including solid and engineered hardwood, plus bamboo, cork, lami- nate and vinyl. The sales associates are on hand to describe the options readily available and to help order materials not on display. Lumber Liquidators has been as- tute with the sourcing of merchandise, of late relying increasingly on China and other parts of Asia. In another prudent business move, the company paid about $8 million in September for Sequoia Flooring's operations in China, from which it had been buying some 40 percent of its merchandise. "A key competitive differentiator has always been our ability to purchase products directly from mills," said Lumber Liquidators CEO Jeffrey W. Griffiths in a prepared statement at the time of the acquisition. Sales of new and existing homes are still sluggish, with 11.1 million prop- erties with mortgages (22.8 percent), now underwater, according to housing data firm CoreLogic, conditions that could continue to discourage house owners from spending money to spruce up their homes. And yet Lum- ber Liquidators has said it anticipates a rollout of 20 to 25 new stores this year, including a few in Canada. "With the improvement of the 2LUKHSS 4HSS 4PHTP -3 >LZ[VU 3HRLZ 7SHaH >LZ[VU -3 www.crec.com 888.488.CREC 62 SCT / MAY 2012 economy, the residential flooring business is developing a little bit of momentum," Davis said. "People are tired of not spending money. If employment continues to improve, so will the demand for flooring, be- cause there seems to be pent-up de- mand for it." SCT