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City Furniture Is Planning To Open 13 New Ashley Furniture Homestores By 2007

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City Furniture, ranked as the second largest and fastest growing furniture retailer in Florida, plans to double in size over the next five years, according to CEO Keith Koenig, who announced today a new licensing agreement with Arcadia, Wisconsin-based Ashley Furniture Industries. With sales estimated to grow from $263 million in 2003 to more than $300 million in 2004, City Furniture is planning to open 13 new Ashley Furniture HomeStores by 2007. The first three Ashley stores are scheduled to opening in June, July and August 2004. The first 35,000-square-foot Ashley store is scheduled to open at Sawgrass Mills Mall in June, followed in July by a 32,000-square-foot store in West Palm Beach and in August by a 22,000-square-foot store in Kendall. The stores, which will operate independently but under City Furniture management, will feature the Ashley line of furniture exclusively. Ashley Furniture Industries is the world's third largest furniture manufacturer, founded in 1945. More than 120 Ashley Furniture HomeStores across the country are independently owned and operated. The new City Furniture-operated Ashley stores will feature a wide range of furniture and accessory offerings, including upholstered furniture, bedroom and dining room sets, as well as home office and entertainment unit pieces. "We've watched the Ashley Furniture HomeStores grow in popularity throughout the country," said Koenig. "It was only a matter of time before they began opening in Florida. We wanted City Furniture to be the one to bring the expanded offerings to our customers." Koenig added that the popular brand of furniture will continue to be offered in City Furniture stores as well. Other City Furniture expansions planned for the year include the addition of 220,000 square feet to its existing distribution center and headquarters facility, which will grow to 880,000 million square feet, and the expansion and remodeling of the existing Hialeah store at 5250 W. 20th Avenue from 38,000 to 57,000 square feet. Koenig attributes the success and rapid growth of City Furniture in part to the retailer's popular Same Day Delivery 7 Days A Week, which is offered until 6 p.m. Monday through Saturday and 3 p.m. on Sunday. "A customer choosing furniture in the afternoon can have one piece, a room full or an entire house of furniture delivered before midnight that same day," he explained. "No other South Florida furniture company offers this service so late in the day seven days a week." Founded in 1971 as Waterbed City, the company's success has been built on the offering of a wide selection of furniture at every day low prices, together with excellence in customer service. Showrooms are designed to be inviting places, complete with fresh coffee and home-baked cookies for customers. An in-house staff of 300 service technicians and 50 customer service representatives work around the clock to keep deliveries on schedule and customers happy. Internally controlled inventory, ordering systems, staffing and delivery fleets allow the company to maintain tighter controls on the entire customer experience. City Furniture, recipient of the 2003 the Ernst & Young Florida Entrepreneur of the Year Award in the retail category, operates four stores in Dade, six in Broward and three in Palm Beach Counties and employs more than 1,200 associates.

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