Haverty Furniture Companies, Inc. (‘Havertys’) operates as a specialty retailer of residential furniture and accessories.
Havertys has grown to various stores in 17 states in the Southern and Midwest regions of the U.S. All of its retail locations are operated using the Havertys name, and it does not franchise its stores.
Customers
Havertys' customers are typically well-educated women in middle to upper-middle income households. They generally own homes in the suburbs, and their diverse perso...
Haverty Furniture Companies, Inc. (‘Havertys’) operates as a specialty retailer of residential furniture and accessories.
Havertys has grown to various stores in 17 states in the Southern and Midwest regions of the U.S. All of its retail locations are operated using the Havertys name, and it does not franchise its stores.
Customers
Havertys' customers are typically well-educated women in middle to upper-middle income households. They generally own homes in the suburbs, and their diverse personalities are reflected in their unique sense of style. These consumers research and shop online and in-store, often engaging friends or family members in the purchasing process. The company’s marketing, merchandising, stores, online presence, and customer service are targeted to attract and meet the needs of its distinctive customers.
Stores
As of December 31, 2024, the company operated various stores serving 92 cities in 17 states, with approximately 4.5 million retail square feet. The company’s stores range in size from 15,000 to 60,000 selling square feet, with the average being approximately 35,000 square feet. The company strives to have its stores reflect the distinctive style and comfort consumers expect to find when purchasing their home furnishings. The store’s location and curb appeal are important to the middle to upper-middle income consumer that it targets, and attractive facades complement the quality and style of its merchandise. Interior details are also important for a pleasant and inviting shopping experience.
During 2024, the company developed a program to improve the in-store experience. These changes focused on more visually appealing signage, tagging strategies, new fixtures to centrally locate custom fabrics, optimized floor presentation of the company’s mattress selection, and equipment for the design center to personalize the company’s customer's shopping experience.
The company selects new locations using demographic and market characteristics, as well as sales potential. These locations are primarily in the form of former ‘big box’ retail sites in the 25,000 to 35,000 square feet size range that it leases with an initial term of years and options to renew. For leased locations, the company generally continues to operate the store until the company’s lease expires. During 2024, it opened the first of its stores in Houston, TX, the largest market it did not serve within its existing distribution system.
Online Presence
The company considers its website an extension of its brick-and-mortar locations and not a separate segment of its business. Most customers will use the internet for inspiration and as a start to their shopping process to view products and prices. The company’s website features a variety of helpful tools, including a design center with a 3-D room planner, upholstery customization, and inspired accessories. Product reviews written by its customers are also available, which many consumers find helpful in the decision-making process.
The company’s sales consultants use online tools to further engage its customers while they are in the store. Customers may make their purchase in the store or opt to return home and finalize their decisions, place their orders online, and schedule delivery. The company limits internet sales of its furniture to within its delivery network, and internet sales of a selection of its accessories to within the continental United States. The company’s total sales completed online for 2024 were approximately 3.0% of its total 2024 business.
From the initial inspirational point in the purchase journey to providing design assistance, the company continues to invest in its digital channels. It has made investments to improve the presentation and ease of navigation for its customers and information on products. The company has added more conversion events, traffic, and conversion variables in Adobe Analytics, which has allowed for more refined and sophisticated A/B testing and improved insight into customer behavior. The company continues to fine-tune the content management system and find opportunities to add more automation to improve the customer experience, increase sales conversion rates through its website, and increase traffic to its stores.
Enhancements to the company’s digital properties are critical for meeting the needs of its increasingly interconnected customers. A significant portion of the traffic in its digital channels is on mobile devices. Mobile customers expect simple and relevant digital interactions. To meet these expectations, the company has invested in its digital properties to improve the overall presentation and ease of navigation for the user. The company has also enhanced online product landing pages by providing more information, including related products within and beyond its larger collection.
The company’s focus on improving search capabilities, website functionality, category presentation, product content, and delivery timeframe can lead to increased traffic, conversion rates, and sales. The company does not view the interconnected shopping experience as a specific transaction; rather, it encompasses an entire journey spanning across inspiration and know-how, purchase and fulfillment, and post-purchase care and support.
Merchandise and Revenues
The company develops its merchandise selection with the diverse taste of its typical ‘on-trend’ customer in mind. A wide range of styles from traditional to contemporary are in its core assortment, and virtually all of the furniture merchandise it carries bears the Havertys brand. The company also tailors its product offerings to the needs and tastes of the local markets it serves, emphasizing more ‘coastal,’ ‘western,’ or ‘urban’ looks as appropriate. The company’s custom upholstery programs and eclectic looks are an important part of its product mix and allow the on-trend consumer more self-expression.
The company has avoided offering lower quality, promotional price-driven merchandise favored by many regional and national chains, which would devalue the Havertys brand with the consumer. The company carries nationally well-known mattress product lines, such as Tempur-Pedic, Serta, Stearns and Foster, Beautyrest, and Sealy.
The company’s customers use varying methods to purchase or finance their sales. As an added convenience to its customers, the company offers financing by third-party finance companies. Sales financed by the third-party providers are not Havertys’ receivables; accordingly, the company does not have any credit risk or servicing responsibility for these accounts, and there is no credit or collection recourse to Havertys. Slightly less than one-third of its sales are third-party-financed.
Suppliers and Supply Chain
The company buys its merchandise from numerous foreign and domestic manufacturers and importers, the largest ten of which accounted for approximately 41.3% of the company’s product purchases during 2024. Most of its wood products, or ‘case goods,’ are imported from Asia. Upholstered items are largely produced domestically, with the exception of its leather products, which are primarily imported from Asia or Mexico.
The company purchases its furniture merchandise produced in Asia through sourcing companies and also buys direct from manufacturers. The company has dedicated quality control specialists on-site during production to ensure the items meet its specifications. The company’s direct import team works with industry designers and manufacturers in some of the best factories throughout Asia. Approximately 20.8% of the company’s case goods sales and 5.9% of its upholstery sales in 2024 were generated by its direct imports.
Distribution
The company’s distribution and delivery system is one of the best in the retail furniture industry and provides it with a significant competitive advantage. The company’s distribution and delivery system uses a combination of three distribution centers (‘DCs’) and four home delivery centers (‘HDCs’). The company uses third parties to handle over-the-road delivery of product from the DCs to the HDCs and market areas. The company uses Havertys team members for executing home delivery and has branded this service ‘Top Drawer Delivery,’ an important function serving as the last contact with its customers in the purchase process.
Seasonality
The company’s business is affected by traditional retail seasonality, advertising and promotion programs, and general economic trends. The company experiences increased shopping activity on weekends and during traditional extended holiday periods.
Trademarks and Domain Names
The company has registered and maintains numerous internet domain names, including ‘havertys.com.’
History
Haverty Furniture Companies, Inc., a Maryland Corporation, was founded in 1885. The company was incorporated in 1929.