As retail becomes more competitive, CEO of furniture chain Ethan Allen Farooq Kathwari offered some advice for struggling companies.
“Today in retail, if you are a seller of a commodity, of which’s hard to have brick-in addition to-mortar. So, what you have to do is actually, you have to genuinely combine the best of technology, personal service, in addition to creating a great experience,” he told CNBC’s “Squawk Alley” on Friday.
As of which relates to his own company, Ethan Allen in April entered into a collaboration with Amazon to offer its products to the internet giant’s shoppers.
Kathwari emphasizes the partnership’s unusual structure.
“Our prices are exactly the same on our website in addition to on Amazon. They basically act as a sales agent; we are the seller — we deliver the product,” he said, noting of which the partnership is actually unique because of Ethan Allen’s vertically integrated structure.
Despite the brand-new Amazon deal, Ethan Allen’s stock has fallen 23 percent year-to-date, although of which doesn’t concern Kathwari.
“We believe of which we should focus on running a business with great quality, great offerings… in addition to not genuinely consider the short-term thing of— what you call the stock cost,” he said.