Art Van's operations will be ceasing for good, says an article from Detroit Metro Times. Its humble beginnings include a tiny retail shop on Gratiot Avenue in 1959. Ever since it opened its stores to everyone, it transformed into one of the largest and most well-known furniture sellers in the Midwest.

According to the spokesperson of Art Van Diane Charles, the company had struggled in the retail market. Charles revealed the performance of the company and its operations are not sufficient enough to make the company survive in the competitive market.

The Challenges of the Once Furniture Retail Giant

Over the years, the company had grown from a small furniture retail store to a large furniture retailer. However, the competitive retail environment had caught the company off guard over the past years.

Although challenges are always present in any business, the challenges that caused the decision of Art Van to cease its operations are difficult to resolve.

The evolution of how millennials decide on buying furniture is one of Art Van's major challenges. According to a blogger named Tina Eaton, the increasing popularity of the internet and eCommerce had significantly affected that furniture retail sector. Millennials are already well-adapted to these changes, Eaton added.

The Power of Millennials over the Furniture Retail Industry

Millennials have a buying power of $600 million. However, millennials are not allocating much of that buying power to purchase furniture.

According to furniture designing business BDI Designs, furniture and bedding make up only 4.5% of the total spending of millennials. On the other hand, 7.3% of Gen X's total spending is allocated for purchasing furniture and beddings. Also, Boomers' furniture and bedding make up 10% of their total spending.

Evolution of the Housing Market and Credit Card Usage

Another challenge Art Van has been facing is the evolution of the market for housing needs and the usage of credit cards. After Thomas H. Lee Partner's acquisition in 2017, there were rumors of the business's closure started to surface in the earlier parts of the year.

Art Van Furniture was established by Archie 'Art' Van Elslander, a philanthropist from Detroit. He died in 2018. In the 1970s and 1980s, Art Van experienced fast growth when it piloted its credit card. Regular advertisement changes were also noticed during that time. It was one of the reasons why it performed successfully in the industry.

Van Elslander and Art Van were both known for their charitable involvement inside and outside of Detroit. In 1990, the family assisted in the preservation of the historic Thanksgiving Day Parade.

Van Elslander donated a certain amount of money to allow the parade afloat. He had also matched the contribution given by other organizations. Afterward, the parade was given the name America's Thanksgiving Parade presented by Art Van.

Message to their Stakeholders

According to the statement released by the company, they expressed their recognition of Art Van to the retail industry and the community. Also, the company takes pride in the decades of its philanthropic legacies in society.

They relayed their gratitude for the commitment and hard work of their staff. Additionally, they expressed their thanks to their customers, franchises, charities, and other parties they had transacted with.