The Founder ’s business in Poland is “all about changing lives, thousands of lives …… by helping young people help themselves through the power of family, home and ‘hard work’.”
Decorador S.A. was enthusiastically accepted by the Poles during the grand opening of its first big-box store (See photos).
The initial startup did not have an e-commerce or an In-home Sales & Services channel. The first store of 38,000 sq. ft. was modeled after the Bed Bath & Beyond store in the USA. Decorador S.A. offered only a unique selection of affordable product sourced from the global home furnishings and home décor markets – no e-commerce norIn-home Sales & Services channels. The store generated sales of six million dollars with a margin of 38%.
Global Retailers LLC purchased the enterprise and its assets from the Polish bankruptcy courts and recast the brand as DECORADOR®. DECORADOR opened Poland’s first home furnishings and décor e-commerce store and followed with the opening of five smaller, less investment heavy brick and mortar stores. In addition, a DECORADOR Master Franchise System™ program was developed and a low-cost franchise prototype store was opened. Furthermore, the merchandising platform was anchored by three Award-winning private label ‘Collections’; BIRDS, TREES, & CIRCLES. BIRDS was awarded First place by the National Design Awards of Poland beating out IKEA and Habitat. Now, the new DECORADOR offered a unique Selection of home products (and services), a Savings of the Client’s time and money and Service, above and beyond, ‘1 Client @ a time’™. Selection, Savings and Service captured market share overnight in Warsaw, Poland.
However, rather than only opening the expensive and inflexible big-box stores, the Company’s store opening strategy was adjusted to “market saturation with three smaller less-costly more flexible store formats”. This change gave the Clients more convenient access to the brand and allowed the Company to open stores near the population centers. As an example, rather than having two or three big-box stores in Warsaw, the Brand will have twenty various-sized stores located throughout Warsaw and its suburbs near the densely population centers. The Brand, by being anchored and supported by the e-commerce store can open and operate stores ranging from 1,000 sq. ft. for densely populated neighborhoods to 20,000 sq. ft. for mall anchor stores. Every store, no matter how small, will have e-commerce InfoKiosks to access the complete e-commerce selection, a design studio where the Clients can plan and order products for a home décor project, including installation of the project and an e-commerce pickup depot.
DECORADOR is committed to bringing the “world of home fashion” to the people of Poland and the emerging markets, as the Founder did for the people of Istanbul, Turkey (through Planet); Sao Paulo, Brazil (through Conibra); and Warsaw, Poland (through the original big-box Decorador). During this time he developed long-term transparent relationships in the global home decor markets which allow his companies to access suppliers only available to the largest retailers such as Wal-mart, Target, Bed Bath & Beyond. Furthermore, more than thirty percent of the product offering comes from India, Thailand & Vietnam, and includes exclusive private label collections of soft & hard home, coordinated trendy lighting, rugs and floor coverings, decorator fabrics, wall décor and wall covering and an ever-changing line of contemporary furniture and gifts. The uniqueness of these products has consistently demonstrated their ability to drive the Company sales to triple-digit sales increases overnight after each new quarterly shipment arrives. The selection of unique & value-priced products sourced from over 30 countries is a compelling competitive merchandising differentiator for DECORADOR.
With the recently completed restructuring and planned Reboot of DECORADOR in Poland, three new strategies were implemented: 1) global turnkey outsourcing, 2) growth by acquisition and 3) the $2 Billion Vision for the emerging markets. These strategies further reduce start up and operating cost and time which allows the Brand to constantly invest more dollars in new store rollouts and new inventory. Most importantly, these strategies allow the Brand to roll out new stores quickly and cheaply in Poland or any other emerging market. The three channels combined with the three store prototypes and the advantages of the restructuring as noted above enhances DECORADOR’S flexibility, diversity and resiliency.
DECORADOR will open 159 company and franchise-operated stores throughout Poland within five years. Thirty percent of the stores will be franchise operations in the smaller cities of Poland. In addition, the Master Franchise System will be marketed and operated throughout the Central & Eastern European countries from Poland.
Akademia Rozwoju Systemów Sieciowych (ARSS), a Polish franchise consulting company was retained to guide Global Retailers in the design, marketing and implementation of its DECORADOR Master Franchise System™ in the CEE region.
DECORADOR® will be profitable with an e-commerce, an In-home Sales & Services™ channel and nine low-cost stores producing sales of $4,000,000. Future funding for the Company’s continued development in Poland and the CEE region is anticipated from 1) its current-running $5,000,000 Series A Private Placement Memorandum Offering, 2) an equity/credit investment from the European Bank of Reconstruction and Development (EBRD), 3) an initial public offering (IPO) on the Warsaw Stock Exchange (WSE) and 4) by operating profits and leverage from company operations. Based on the Founder ’s experience at O W Office Warehouse he anticipates that the investor ROI on the DECORADOR exit for Poland alone will be 7 to 10 times the investor’s investment. Early investors will have an opportunity to exit the investment during either the EBRD equity investment and or an IPO on the Warsaw Stock Exchange.
DECORADOR® will open 159 company and franchise-operated stores throughout Poland in five years.