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Many of these smaller competitors have closed or merged together over the last several years. Their lack of name recognition combined with the other factors render then a low-end threat.

Big box stores such as Wal-Mart and Target do sell furniture, but they sell lower priced and quality product that do not appeal to the more affluent consumers that we are targeting...

Costco and Sam’s sell high-end leather furniture, but lack overall selection of a full service furniture store. If a customer sees a piece of leather furniture in a store like Sam’s that may even spur that customer on to go to Family Furniture to look at a larger selection of leather furniture.

The final competitor that needs to be discussed is websites on the internet selling furniture...

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