The Dump is closing its Turnersville furniture store to develop a new concept in Montco

When E.J. Strelitz co-founded his furniture store concept, bluntly named the Dump, he said it was disrupting the industry. The store was full of overstocks, closeouts, and other design samples or prototypes from luxury brands sold at a discounted price, which Strelitz dubbed “a T.J. Maxx for furniture."

But Strelitz, the CEO and a Wharton School alumnus, said recent trends have hit the company’s brick-and-mortar stores hard. The median household income of customers isn’t going as far as it used to, so people aren’t willing to pay the same prices for furniture, and the company sells only a small percentage of its inventory online.

To adapt, Strelitz, 58, announced this week the closing of the Dump’s 89,000-square-foot Turnersville location in South Jersey and the liquidation of $12 million in its inventory to make way for a new concept 44 miles away at its location in Oaks, Montgomery County.

“This is much more about reinventing ourselves in the marketplace 16 years later than it is about real estate decisions and closing stores,” said Strelitz, who founded the company with his wife, Randi. They opened their first store in September 1985 in Norfolk, Va.

Strelitz hopes to sell off all the inventory, including $8 million worth of merchandise at the Oaks store, to have a “clean slate.” Though the 2008 recession took a couple of years to hurt business, Strelitz said it also led to some luxury brands that never would have considered selling their items at a place called the Dump to offer their products.

The Dump, with nine other locations, in cities including Atlanta, Houston, and Richmond, Va., is usually open only Friday through Sunday, but in preparation of the sales events, it will expand its hours. The Turnersville store is at 5700 Route 42 in the Washington Township community while the Oaks location is at 1800 East Dr.

Starting March 18, the Turnersville and Oaks locations will be open Monday through Thursday from noon to 8 p.m., Friday and Saturday from 10 a.m. to 9 p.m., and Sunday from 11 a.m. to 7 p.m., until the inventory is sold off. Strelitz said he does not plan to cut jobs with the closure of the Turnersville store, but understands if some employees aren’t “willing to face the Schuylkill every morning.”

Selling off the merchandise will give Strelitz freedom to introduce more new brands at the new Oaks concept. He can also display the inventory differently and think about ways to make the in-store experience better for customers. And, consolidating to one location will allow the company to sell these higher-end brands at a lower margin, meaning better deals for customers. Strelitz is aiming to open the new concept by July 4.

In a 2018 National Retail Federation survey of over 3,000 adults, 89 percent said they shop at discount stores, which did not vary much by age or income. Though the survey found that these shoppers are most likely to buy clothing at a discount, 62 percent said they bought home decor and furnishings at bargain retailers.

“Regardless of income or generation, virtually everyone wants a bargain, whether it’s for everyday necessities or big-ticket splurges," NRF vice president for research, development, and industry analysis Mark Mathews said in October. "Even those who can afford to shop elsewhere love finding a steal, and it’s a habit that’s here to stay.”

The Dump is also planning to include a place at the Oaks store where people can make an appointment to test a mattress for an hour, Strelitz said. He also plans to offer custom orders for upholstery in the redesigned location and is aiming to get about 20 percent of the company’s inventory available for online purchase.

Strelitz lives in Virginia Beach, Va., the headquarters of the Dump and his traditional furniture company, Haynes Furniture. Strelitz estimates there are 1,200 employees between the companies, and would like to add about 20 to the Oaks store by next fall.

“We think the location out in Oaks is far superior in terms of demographics, in terms of access from the whole market,” Strelitz said. “We think it will be somewhat of a stretch for our New Jersey customers, but we’re hopeful furniture is a destination purchase, and we’ll still keep them with this more exciting concept."