Through its various brands – particularly Sterling, Lamp Works, GuildMaster, and Dimond Home – the ELK Group has been able to offer a wide range of price points in the mid to high range for lamps and furniture. “We didn’t have a mainstream price point, so this is really exciting for us,” notes Brad Smith, CEO of ELK Group.
Another plus is Stein World’s strong relationships with the top 100 furniture stores in the country. “To be able to come up with a cross collection of lamps, mirrors, and furniture that all [complements each other] makes it easier for the buyers,” Smith states.
Stein World’s distribution, design team, and many of its employees will remain in place at that company’s facility in Memphis, Tennessee. While ELK Group maintains a 1.2-million-sq.-ft. warehouse at its Pennsylvania headquarters, there simply isn’t enough room to accommodate Stein World’s 300,000-sq.-ft. of warehouse space. With distribution remaining the same, customers’ shipping will be unaffected. Another plus for Stein World customers is the fact that the styles will remain consistent with the brand.
“We don’t want to change Stein World,” Smith explains, adding, “There might be some [tweaks] in finishes or techniques that keep us moving in a forward direction.” To that end, the Stein World design team will coordinate its trend boards and forecasting with the specialized designers at ELK Group “so we can all spot that next trend and have elements of each throughout,” Smith adds.
With both companies operated by private equity groups, the timing was perfect for an acquisition to occur, Smith says. “The appreciable scale created by this partnership, together with our existing brands, earns us the distinction of being one of the largest suppliers of home furnishings in the industry,” he remarks. “This means even greater product selection and money-saving benefits for our customers, firmly moving us in the direction of our goal to become the most competitive line of products among our client base.”
“The combined organizational strength of design sourcing and logistics will bring the best of everything to our customers,” adds Dan Masters, President of Stein World. “ELK and Stein World together can leverage their purchasing power to provide an even greater value to the marketplace, creating a tremendous single source for retailers.”