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CHICAGO — The third-largest city in the U.S. is a hotbed for furniture retail activity.
With 9.44 million residents in a sprawling metropolitan area that includes Naperville and Elgin, there are plenty of opportunities for retailers to do a lot of business in Chicago.
The city is home to several entrenched retailers, as Top 100 brands The Roomplace, Walter E. Smithe and Darvin Furniture & Mattress have roots in the Windy City and have been fixtures for decades. It also is very tempting for those outside of traditional footprint.
Top 100 retailer Steinhafels has had a presence in Chicago since 2011 (it was the first non-Michigan destination for Art Van Furniture before its collapse), and Top 100 retailer Bob’s Discount Furniture made it a point to plant a flag in the area before venturing further west. Home furnishings boutiques like ARTS Award-winners Kenneth Ludwig Chicago and The Design Bar are among those that have built a loyal fanbase and carved out a distinct niche.
It’s even become something of a destination for traditional online retailers. Next year, Wayfair expects to open a large brick-and-mortar showroom in Wilmette.
“Chicago’s central location and populous metropolitan area make it desirable for retailers,” said Colleen Smithe, director of advertising for Walter E. Smithe. “However, retailers entering this market underestimate how established the furniture industry is here. There is little to no white space. When you factor in online retailers, the challenges only get more complex.
“It’s a highly competitive market given the number of retailers here that fill the map,” she continued. “No one is far from a furniture store, whether it be a local player or a national chain.”
The old-school perspective
Smithe said while Chicago is complex in its own way, Walter E. Smithe has made its way by appealing to generations of customers since 1945.
“We got here because of our quality offering, commitment to service and a healthy dose of luck. It’s common to meet a client in our showroom who was referred to Smithe by their mom, and their mom was referred by their mom,” she said. “The generations of clients we serve are a testament to the care we show our clients at the time of purchase and after. We play the long game in a sense because we know if we treat our clients right, the referrals will keep coming for years to come.”
Generations of loyal customers is also something that can be said for The Roomplace, which has been in business since 1912. Valerie Berman-Knight, the retailer’s president, said that while Chicago encompasses a large area, it’s diverse, and its neighborhoods have distinct demographics and personalities. Knowing how to mix things up helps.
“When you have a place this big with different micro-communities throughout, we make sure from a product perspective we have a variety of looks at the right price,” Berman-Knight said. “You see it reflected in the merchandising selection and the way those products perform. You will see things on our floor that you wouldn’t see at any competitor in the market. People know if they want the right look for the right price, we are the place to shop.”
Berman-Knight said because of Chicago’s melting pot nature, The Roomplace makes it a point to have team members who represent their communities.
“It’s incredibly diverse, which for us, is reflected in our customer base and with our team. We are always making sure we have folks in our store that reflect our audience, including speaking multiple languages,” she said.
New kids on the block
When Steinhafels opened its first Chicago-area store in Vernon Hills, it saw opportunities presented when other retailers exited the market, plus a number of shoppers from the metro visited its Kenosha, Wis., store. So the Waukesha, Wis.-based retailer took what worked well in the greater Milwaukee market, added a few Chicago-centric touches and was off and running.
“We kept the same retail principles of excellence for our Chicago locations that has led to our continued success in Wisconsin. We created beautiful stores that feature lots of natural light and we focus on a broad assortment of products to provide value for customers of every budget,” President Andrew Steinhafel said. “Over decades, we’ve built our reputation by delivering the best customer experience with beautiful stores and exceptional delivery and service.
“We have continued that as we have moved into Chicagoland. Being an employee-owned company also helps give our new customers and associates confidence that we will be around for the long term, and we’re not just interested in short term profits.”
Steinhafel said Milwaukee and Chicago have much more in common, which made the decision to open stores in Illinois an easy one.
“We have found more similarities than differences as we have entered the Chicago market. Chicago customers are looking for value and quality products,” he said. “Our Chicago stores have been successful with more modern looks and small space solutions, and it has taken longer to establish Steinhafels as a mattress destination and grow our mattress penetration, but that is improving as we become a more established brand.”
Online heavyweight Wayfair opened a Joss & Main store in Oak Brook earlier this year, which is helping set the table for the introduction of its first large-format store in Wilmette next year.
A company spokesperson said the location was chosen because of convenience and accessibility, and since bringing Joss & Main to the city, customer excitement has been building. The company believes Chicago is in for big things when the 150,000-square-foot store is open for business.
“At the Wayfair store, customers can expect to shop, explore and be inspired by huge immersive and interactive experiences across our two-story, 150,000-square-foot store that will feature 19 different departments, from furniture and decor, to outdoor, home improvement and more,” a company spokesperson said. “We’re also excited to invite customers to sip and snack while they shop with treats from our debut in-store restaurant. We look forward to bringing our first Wayfair store to the Chicago community in spring 2024.”
The road ahead
So what does the future of retail look like in the Windy City? For Steinhafels, it’s an increased presence. It’s closing in on opening a distribution center in Bolingbrook with more stores on the horizon.
“As we add more stores in Chicago we challenge ourselves to make every new store our best, and we have seen that with our newest location in Harwood Heights. We seek to create new ways to showcase our products, provide design services for customers and use technology in a thoughtful way to help augment our customers’ experience,” Steinhafel said. “We love Chicago because it is a region that continues to evolve and challenge us.
“Staying still is something that has never been part of our DNA at Steinhafels and we are committed to being the furniture and mattress market leader in Illinois as we are in Wisconsin.”
Smithe said she sees retailers continuing to enter and leave the market, while digital innovations will continue to change the landscape. Additionally, the Walter E. Smithe brand will soon enter a new market in Naples, Fla., giving it another area to focus on in addition to Chicago.
“Our multiprong approach to strategy that zeroes in on what the consumer wants secures our future in the Chicago market; our product assortment is vast and allows us to cater to just about any style and a wide range of budgets, our 10 showrooms are staffed with highly trained designers who work on a complimentary basis to ensure our client’s needs and wants are met, our marketing efforts connect with both our established clients and prospects, which results in a constant flow of business, and our focus on expansion has taken off with construction of our Naples showroom,” she said. “Our family looks forward to the next 78 years, where we’ll continue to be a Chicago mainstay and become one in southwest Florida.”
Berman-Knight said she feels Chicago will always be a strong retail market, which means it will remain competitive in the years to come.
“I think the vibrancy and diversity of our city will always support strong business. I think staying true to who we are as a brand and our customer base has allowed us to have a presence here for more than 100 years,” she said. “I think certainly over the years, the population has expanded out into greater Chicagoland, and we’ve opened stores to support those areas as well. Retail will continue to be strong here.”
