Benzinga | Jul 17, 2020 09:02AM EDT

Bassett Furniture Says Will Approach Future Investments In Outdoor Strategy Via 3 Categories: Lane Venture Brand, Domestic Metal Outdoor Furniture, Bassett Outdoor Brand

Over the past 30 months, Bassett Furniture Industries, Inc. (NASDAQ-BSET) has made a significant commitment to the vibrant outdoor furniture category. With annual growth rates expected to be 4% to 5% compounded annually through 2023, the outdoor furniture market is estimated to be $5 billion in the United States. "Beginning with the acquisition of Lane Venture in December 2017, we have invested in manufacturing infrastructure and industry talent to generate sales growth through this growing channel that is designed to capitalize on the migration of the U.S. population to the Sunbelt and the increasing casualization of today's residential lifestyles and architecture," said Rob Spilman, Chairman and CEO. "Our platform of efficient domestic manufacturing and adjacent warehousing enables us to provide fast service on our extensive inventory of synthetic wicker, teak, and aluminum outdoor furniture collections."



The Company has chosen to maximize its investment in the category by approaching the marketplace through three distinct marketing efforts:

Lane Venture Brand

The Lane Venture (LV) brand has a rich history in the outdoor segment dating back to its inception in 1972. Acquired by Bassett in December 2017, Lane Venture has been operationally re-invented through a return to domestic upholstery production that has dramatically improved lead times. Long known for its superb assortment of correlating fabrics and outstanding seating comfort, LV now dependably delivers its products at a level that is commensurate with the quality of its furniture. LV was the first Bassett division to begin rebounding from the COVID pandemic, in part because of its ability to service dealers during the crucial spring selling season. Supporting the manufacturing model is a 175,000 square foot warehouse in Newton, NC providing ample storage for frame stock and multiple dock doors for shipping and receiving.

In 2019, LV expanded its offerings by adding fully upholstered outdoor product and has enjoyed strong consumer sell through, particularly from the interior design trade. To market this new capability and to support the brand re-invention strategy, LV launched a new website in July 2019 which has doubled the incoming consumer traffic to the site as compared to last year.

"Our vision is for LV to be an industry leader that improves the lives of our customers through tasteful design, excellent service, and generational quality," added Spilman. "Through intentional investment in business processes, manufacturing, and product development, LV is poised for growth in the years to come using American labor and materials. We will continue to hold the Lane Venture brand in high regard that is respectful of the past and focused on the future."

Domestic Metal Outdoor Furniture

Dating back to the initial acquisition in 2017, the Company believed that domestic production of metal outdoor furniture would enhance the LV brand. Accordingly, Bassett completed the acquisition of a 95,000 square foot manufacturing operation in Haleyville, Alabama in October 2019. This allowed LV to begin marketing a tariff free aluminum product. Marketed under Lane Venture Custom Casual, the new assortment offers custom metal finishes that coordinate with the existing array of fabrics. In addition to a full complement of metal fabrication capabilities, the Haleyville operation boasts an electrostatic powder coat finishing line that features a proprietary pretreatment process that provides superior paint adhesion once the product is cured in ovens exceeding 400 degrees. These products are built from a combination of extruded, solid, sheet, and cast aluminum. In addition to providing product for LV, Bassett has entered the hospitality and contract business with a line of seating, sling furniture, and aluminum dining fabricated in the Haleyville location. Field specialists have been hired and the line debuted at the Country Club Show in Dallas just before the onset of the pandemic.

Bassett Outdoor Brand

"For several years, designers in the Bassett Home Furnishings network have commented on the need to add outdoor product to the existing indoor assortment to accommodate consumer preference for a single source to fulfill their design projects," continued Spilman.

After 18 months of development and preparation, the line debuted to the public in March with a direct mail catalog and extensive promotion on the Bassett website. The products are sold exclusively in Bassett Home Furnishings (BHF) corporate and licensed stores and on the Bassett website. The launch of Bassett Outdoor, however, directly coincided with the closure of all 100 BHF stores due to the COVID-19 pandemic. Sales have been steadily improving as the stores have reopened and more consumers become aware of the Company's entry into outdoor furniture under the Bassett brand. Stores that have adequate square footage will floor the product throughout the year as the Company works toward the next phase of product and further marketing of Bassett Outdoor going forward.

"In addition to the significant investment in property and equipment that we have made to compete in the outdoor field, we have assembled a terrific management team to lead the effort," commented Spilman.