As one of Australia’s largest retailers and importers of quality furniture, besides cost leadership strategy, Nick Scali continues to have a strong emphasises on product and brand differentiation strategy. Comparing to other companies like “King furniture”, Nick Scali has considerable room for further expansion of its store network in the new financial year. This is the strategy to expand its brand through the opening of additional stores and occupy more market shares.

With considerable room, Nick Scali has established a new brand named “Sofas2Go” with 5 stores located in Sydney and Melbourne and its original brand “Nick Scali” with 33 stores across the east coast. The two brands are positioned differently to capture somewhat different customers in the furniture market. In the year to June 2014, comparable store sales has grew 6.3% comparing to the previous year. The increase in sales revenue was driven by the new stores, an increase in marketing activity, good selection of the product range and price points. The Sofas2Go plan is the company’s intent to acquire strategic places as an hedge against rental increases.

Meanwhile, Nick Scali has implemented an unique and innovative storage solution. Except showrooms under the Nick Scali brand and the City Living brand, company expand its retail outlets throughout the country and a number of new warehouse would be completed as well. This solution would increase efficiencies, decrease double handing and reduce time which could satisfy customers expectation better.
Indeed, with the solution above and trading well, Nick Scali have had a good response from customers to the store experience, price points and product offering.

Continual investment in website is also a key strategy to engage customers in to the stores, which could increase online presence and digital marketing spend as well. However, Nick Scali still