European antique markets... in New England

Robert Darvin is no stranger to the home furnishings industry. He started Scandinavian Design in 1965 and at its peak it was a chain of 70 stores with $100 million in annual sales.

Buying for Boston-based Scandinavian Design meant a lot of travel, and it was during those travels that Darvin got the idea for his second furniture business, In Home Furnishings.

"I noticed a lot of antiques and pine, particularly in Scandinavia," he said. "I started to try it, but the biggest resistance came from within my own company, questioning why I'd mix antiques and new product. I saw an opportunity."

Scandinavian Furniture went out of business in 1988 and the same year Darvin started In Home Furnishings. Today he has five stores in Massachusetts with average annual sales of $16 million. He is not trying to build another 70-store chain though.

In Home Furnishings has changed a little during its 16 years, but the key to its success remains its product mix and merchandising.

When you first enter the Natick store you're greeted with vignettes showcasing both vintage and new furnishings. The room behind the paneled doorway is reminiscent of an English game room filled with gaming tables, shelves of books and more.

Darvin's concept was to go to Europe and buy country antiques, bring them back to Massachusetts and showcase them in 5,000- to 10,000-sq.-ft. stores that were visually merchandised with a new look. He describes it as bringing 20th century marketing, merchandising and excitement to an industry that was dormant.

Initially the product mix was much more antiques and reproductions, but times have changed and antiques are harder to find. Today, the mix is 50/50 antiques and reproductions and new, domestic product. From the beginning Darvin softened the aesthetic with upholstery and mixed antiques and one-of-a-kinds with transitional frames and fabrics.

Darvin brings back flea market finds, including lots of vintage signs that are top sellers. Everything is for sale, including the bedding.

Aside from the mix of old and new product, which encompasses everything from case goods and garden to home accents like lighting, wall decor, rugs, bedding and permanent botanicals, the stores' environments set them apart.

Each of the five locations has its own signature look, but overall the feel is of a European antique market. Most of the stores are made up of components Darvin has imported, like the nine-ton columns outside the Natick store.

In Home Furnishings owner Bob Darvin has been down this retail road before, this time he's not out to own 70 stores though.

The Norwood store is modeled after a building Darvin photographed in England. The stores feature faux painting by a European artist and about 25% of the product differs by location. Darvin said they have great ideas on displays and they photograph the product set up, but the challenge is implementing the design throughout all five locations.

In Home Furnishings' target market is the upper middle class, ages early 30s to 60s. These customers are going through changes, starting out in new homes, selling their bigger homes and moving into condos or townhouses and moving into the inner cities. The stores have something for all their needs. Darvin brings in selections of farm tables and competitively priced upholstery to attract the younger clientele and introduce them to the stores without scaring them off with high prices.

Design services are a big part of the business, both in-home and in-store, as custom upholstery and designs add a lot to the bottom line.

Darvin said his traffic builders and in-store events don't differ that much from everyone else's in the industry, but they seem to work. Since they're receiving a container just about every week, they use direct mail to let customers know new product has arrived. Stores also host internationally themed nights with food, music, etc. and sometimes Darvin invites vendors to come in and host their own events.

Admittedly, it's been a tough year in the home furnishings industry and stimulating business is Darvin's biggest challenge.

"The industry is extremely soft right now, it hasn't been this way since the early '90s. It's as critical as I've ever seen it," Darvin said. "Getting business is tough."

Tough or not, Darvin has a game plan. He's become more aggressive with advertising for one thing. He typically budgets 5% for advertising and this year he's moved from the increasingly expensive TV and radio venues in Boston to more personalized marketing on the Internet, telemarketing and letter writing.

In Home Furnishings also has started working with builders, which has the potential to be a lucrative business. For example, Darvin recently sold $110,000 in merchandise to a spec builder and the home and its contents sold within three days. So far they've done four homes in which the builder buys the furnishings at a discount with the understanding Darvin will take back anything for a store credit.

"We've taken back less than 15% of the items," he said. "I think there's a lot of potential there, but it's a real educational process; trying to sell a spec builder is no easy number."

Though Darvin said he typically only works a few hours and only on Mondays, he and his wife Marsha are responsible for most of the international buying; it's one of his favorite parts of the job. Long-term employees Sandy Malick and Betty Wheeler do a lot of the domestic buying with Darvin. They shop High Point, New York, Boston, Paris, Las Vegas and flea markets.

Home accents represent about 20% of the business and Darvin doesn't buy deep in any one line. Lamps and lighting, accent furniture and wall decor are strong sellers.

Though the overall feel of In Home Furnishings stores is of a European market, Darvin has a little something for everyone with some transitional, modern looks as well.

Bedding and permanent botanicals are found in the stores as well, but they're more sporadic purchases and mainly used to support the other products in the displays. Antique and reproduction signs are very big business and garden is an important category as well.

"We all like the garden category," Darvin said. "It's important to us. I might buy 40 to 50 original, expensive pieces in Paris and support them with reproduction pieces or other domestic product."

As often as possible, Darvin tries to tell the stories of the pieces he's found. There might be an interesting anecdote about the flea market he found it in, the country it came from or some other piece of romance the customer is dying to know. He's careful to stress both to customers and his sales consultants that the antiques and reproductions they sell aren't investments and they don't claim they will gain in value.

When it comes to moving product, Darvin doesn't budge on the antiques and one-of-a-kinds, but he does OK markdowns on new product "when the stores start yelling." He, like many retailers, has found that sometimes simply moving a product to a different part of the showroom, or even to a different store, shows it in a whole new, more favorable light.

Darvin has two objectives. One is to make sure employees write 10 postcards a day to keep in touch with customers. They're sent out from the corporate office so they can be monitored. The second is to strive for constant improvement.

"Try to be 5% better at everything," Darvin said. "If you try to better your sales by 5%, it has a dramatic effect on your growth and income. It takes you from being mediocre to being exceptional; 90% of the people in the industry fit into the mediocre part."

Darvin is anything but mediocre. During a buying trip in Europe he saw the Australian Elle Decor photo team doing a photo shoot and he came up with a great idea. He hired the team for 40 days and paid them to travel the world, along with a few of his staff members, and shoot everything from fabulous bridges and architecture to people in cafes and furniture.

"I ended up with a library of 250 photographs shot all over the world that we use for everything," Darvin said. "Pure product shots would become obsolete; but these shots, people in flea markets or sitting with their dog, they convey a feeling, an image, a lifestyle that is In Home Furnishings. When I do something I try to do the best, it's very important."

With four decades of experience, Darvin has learned a thing or two about keeping employees. He pays above average salaries, through commissions, salary and bonuses and offers flexible work hours, 401k, health and dental insurance and educational assistance. Many of his current employees have been with him for 25 to 30 years and he's rarely had to advertise for help.

Despite his successes he has had a few missteps. He said his worst idea was taking on too much warehouse space, because you tend to fill it, so now he's working on trimming 100,000 square feet of warehouse to 80,000 square feet. Another unforeseeable decision was opening a store the day before Sept. 11, 2001.

When it comes to In Home Furnishings he's still confident they're doing what it takes to keep them on top and once in awhile while travelling he finds a small store that's doing a good job.

"The challenge is to maintain 10,000-sq.-ft. stores and still knock their socks off," Darvin said. "It's not easy when you have multiple stores."

Once can't help but wonder what advice someone like Bob Darvin would give up-and- coming retailers.

"Get the hell out of the business, play with the grandchildren, that's the best part," he said. "But, if you're going to stay in the business, separate yourself from the crowd, pay attention to your employees and make the buying experience fun."