RETAIL/LEISURE : Sofa Factory Says Cutting Prices Has Made It a Good Year

These are among the darkest days ever for Southern California furniture sellers. Barker Bros. and RB Furniture have both filed for bankruptcy protection and those that remain complain of bulging inventories and empty parking lots.

But Krause’s Sofa Factory, based in Brea, says it posted sales increases in October and November, compared to the same period last year, and that its holiday sales have been setting company records.

Krause’s has cashed in on customers’ fixation on value by lowering prices. The company priced a line of its made-to-order sofas starting at $399.

“This is the first time since the late ‘70s that we’ve offered made-to-order sofas at that price,” said President Michael Gibbons.

By offering the low-priced models, Krause’s believes it can benefit from the tendency of consumers to shop around when it comes to making a large furniture purchase. “Furniture shoppers usually shop at three to four stores before buying. Now we see them going to six or eight places,” Gibbons said.

Unlike most other furniture retailers, Krause’s continues to expand. The company opened new showrooms in Corona and Tacoma, Wash., this month and plans 10 to 15 new showrooms next year. With the latest two openings, there are now 66 Krause’s showrooms in California, Arizona, Nevada, Colorado, New Mexico, Texas and Washington state.