In late 2022, Mississippi-based manufacturer United Furniture Industries abruptly shuttered, terminating 2,700 jobs and leaving a sizable hole in the market for budget-friendly furniture.
For American Freight, a chain of warehouse stores selling discount furniture, mattresses, and open-box appliances, the sudden loss of a major supplier marked a turning point. No longer would it rely exclusively on domestic middlemen to bring in its products. Going forward, it would source from a much wider pool of suppliers, including from outside the United States.
“We knew that they were sourcing a lot of those goods overseas,” Alissa Ahlman, chief merchandising officer in the home furnishing division at Franchise Group, the parent company of American Freight, told Retail Brew. “And so we kind of embarked on this, ‘Well if they can do it, we can do it.’”
These efforts culminated last month with the announcement that American Freight had expanded into new international sourcing territories with the goal of expanding its assortment of affordable offerings, and that Vietnam and Malaysia were the focus.
The move places American Freight alongside a number of US retailers, including Amazon and Walmart, and fellow discounters, such as Big Lots, which are increasing their imports from Southeast Asian countries, as higher costs and geopolitical tensions make China a less attractive exporter.
But setting up shop on the other side of the world is no easy task. Ahlman said the expansion required the company to rapidly stand up a sourcing division and develop partnerships with a mix of local sourcing agents and manufacturers.
Straight to the source: The process started with American Freight getting its boots on the ground, Ahlman said, with company executives “traveling a couple times a year to see the factories with our own two eyes, to meet the people, to touch and feel the product, to make alterations on the spot.”
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