Furnishings and home goods retailer American Freight is diversifying its sourcing with a strategic move into Malaysia and Vietnam.
The Delaware, Ohio-based company said the move will allow it to expand its product offerings and provide more competitive pricing.
“In response to growing consumer demand for value amid rising inflation, we are strategically expanding our product sourcing capabilities to top production countries,” said Alissa Ahlman, chief merchandising officer of the Home Furnishing Division at Franchise Group, the parent of American Freight and Buddy’s Home Furnishings.
American Freight, which has long offered furniture, mattresses and appliances will open up its portfolio to an array of lifestyle-focused products with its move into Malaysia and Vietnam. Barstools, upholstered headboards, sideboards, new upholstered pieces and a wider selection of fabrics are among the new categories.
“By diversifying our supply chain and tapping into a broader range of markets, we can secure high-quality products at competitive prices and extend into new product categories as well,” Ahlman said.
As part of its expanded sourcing, American Freight appointed Stephanie Koda as its divisional vice president of sourcing, furniture and mattress. Koda brings more than 30 years of experience across a variety of retail channels, building sourcing organizations across the U.S., Asia and the Americas, and serving in roles at Gap, JCPenney, Pottery Barn and At Home.
“[Koda’s] deep industry knowledge and experience will be instrumental as we continue to expand our product offerings and sourcing expertise in the service of our loyal customers,” Ahlman said.
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Many U.S. companies have sought to diversify their sourcing from China in the wake of the pandemic. With tariffs on China-made goods going nowhere soon, Vietnam and Malaysia have become popular production alternatives. Recent data from McKinsey & Co. found that Vietnam is among the “hotspots for future operations” for apparel and footwear sourcing.
Ahlman said serving its robust, 380-store network drove the move to Malaysia and Vietnam.
“This initiative not only allows us to better meet the needs of our customers but also strengthens our global partnerships and enhances our resilience in an ever-changing economic landscape,” she said.