Relationships Sustain Albany's Custom Interiors
Tuesday, March 13th, 2012
Consumer confidence as measured by The Conference Board Consumer Confidence Index improved significantly in February, as consumers grew more optimistic about the economy, job prospects and their financial situation. That is potentially good news for retail and commercial businesses such as Custom Interiors in Leesburg, a Norwalk Furniture Showroom Gallery and custom interior design firm that offers a full line of flooring, draperies, bedding, window fashions and accessories.
"Our good relationships in Albany sustained us during the recession, but sales are still not what they used to be," said Daphine McKenzie, owner of Custom Interiors.
"Our mix of residential sales, both flooring and furniture, and commercial projects such as schools, churches and apartments complexes have definitely helped. When residential is down it seems commercial is up and vice versa; having our own installation mechanics is always a plus."
McKenzie opened a second store location in Columbus in 2008, after much planning and analysis. However expected sales never materialized and she is now in the process of shutting it down.
"We did three years of market research and budgeting before selecting a location and opening the store. Then the bottom just fell out of the market so we are now forced to close."
Sizing Up the Rebound
Besides consumer confidence, sales of flooring, furniture and other décor are closely linked to activity in the real estate market. Sales of new and existing homes spur residential business while healthy corporate and small business profits can lead to commercial sales. So how are home sales and business profits performing?
The housing market in the South is improving. Sales of new houses in January 2012 increased 9.3 percent over December 2011 and 15.3 percent over January 2011, according to the U.S. Department of Commerce. However, housing values remain depressed and many believe it will be years before the housing market fully recovers.
Corporate earnings grew 8 percent in fourth quarter 2011 - the slowest growth rate since the recovery began, according to a recent story in The New York Times. Uncertainty surrounding the European debt crisis, U.S. budget deficits and this fall's election continues to weigh on the outlook for capital investment.
"It's been a roller coaster. We think the market is getting better and then it dives again. As a result, we're keeping tight control over expenses," McKenzie said.
"I think sales will rebound but I'm not sure they will return to the levels we had prior to the recession."
According to the U.S. Department of Commerce, Furniture Today and Easy Analytic Software, consumer spending on furniture and bedding peaked in 2007 at $93.1 million. Spending dropped in 2008 and 2009 before turning up slighting in 2010 to reach $82.5 million. Easy Analytic Software projects consumer spending on furniture and bedding will not return to 2007 levels until some time after 2015.
People Make the Difference
McKenzie believes the people who work at Custom Interiors make it a one-of-a-kind store. She has eight employees including three designers and some have been with the company for more than 10 years.
"We have great designers all very dedicated employees in every area. We are not your typical furniture store. We offer a lot of unique accessories and of course, we do a lot of custom work," McKenzie said.
Custom Interiors offers Norwalk and C.R. Laine furniture and Bassett lines, which enable customers to customize furniture.
"Customers can select the frame or style then make a selection of fabrics. We can offer contrast cord, upgrades on cushions, finish of wood – definitely custom. And most all price points we can handle. Most special orders from Norwalk, C.R. Laine and Bassett are delivered with 35-45 days. And they are made in America. That's something we pay attention to in all our merchandise or try to," McKenzie said. "I hope that retail shoppers will start asking for it more to force more retailer to buy from American made manufacturers. It’s the only way we can get Americans back to work."
More information on Custom Interiors is available on Facebook, their website, which is being updated, www.custominteriors-fa.com or call (229) 420-8781.
