Lumber Liquidators To Continue Rapid Growth
Toano, VA, March 13, 2009--Lumber Liquidators plans to continue its aggressive expansion, the firm said it a conference call on Tuesday.
"Much of our success last year was due to our ability to grow our store base and expand our market share at a relatively low cost," said CEO Jeff Griffiths.
"In 2008 we added 34 new stores to our base which was in line with our expectations, and we ended the year with 150 stores across an expanded national footprint.
"These new stores consistently performed above expectations and made significant contributions to our sales growth for the year.
"Hoping to drive the solid performance and quick ramp up of our new stores was our well known brand and unique value proposition both which are supported by our strong national advertising program. This high brand recognition and acceptance of our offering, combined with our low startup cost enabled us to gain significant market share in 2008 and to take advantage of the expansion opportunities presented by the highly fragmented hardwood flooring industry in which we operate."
Griffiths said that as the economy deteriorated and consumers became more cautious, Lumber Liquidators moved from branding to call-to-action messages, and specifically focused on its value proposition.
In addition, Lumber Liquidators took advantage of opportunistic liquidation purchases.
The firm's sales rose more than 10 percent in the fourth quarter compared to 2007, although comparable store sales fell 4.6 percent. Net income also rose from $3 million to $6.5 million. In part it credited an expanded product line and a business model that enabled it to offer premium products at lower prices.
Lumber Liquidators is the only hardwood company to produce its own brands and sell them in its own stores, eliminating outside distribution.
The firm said it merchandising strategy last year included carrying more liquidation deal merchandise and moldings and accessories.
Also, Lumber Liquidators believes it can grow sales this year from $482 million last year to as high as $530 million by opening up to 36 stores.
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