Safavieh Acquires First European Distribution Center

Arash Yaraghi in the new facility.

Arash Yaraghi in the new facility.

PORT WASHINGTON, N.Y.—Safavieh has purchased its first European warehouse, centrally located in Belgium, to respond to the increased consumer demand and sales growth in all retail channels the company has seen overseas. The 100,000-square-foot facility is five miles from the port of Antwerp, and will house Safavieh’s range of products, including rugs, furniture, lighting and decorative accessories.

“This is a strategic move that will dramatically increase the speed with which we drop-ship Safavieh products directly to European consumers,” said Arash Yaraghi, principal. “Our volume with European retailers has increased substantially in the past two years and we are projecting continued solid growth in this market.”

Safavieh aims to ship throughout Western Europe within three days using the same logistics model it has used in the U.S. since 2000. The company drop-ships thousands of packages daily to customers in all 50 states, Canada, South America, Europe and Asia, and has more than 1,000 programmed rug designs, each in more than eight sizes and several colors, and 500 furniture SKUs ready for immediate delivery. The company also added a new 150,000-square-foot warehouse in Fontana, Calif., last year to support its western U.S. and Canadian sales.

“Since implementing our logistics program, one of Safavieh’s main competitive advantages is the ability to ship product to our retail partners’ customers within three days,” Yaraghi said. “We are committed to this goal as part of our brand promise: we want consumers and retailers to know us for fashion, quality, value, and for impeccable customer service. To do that in Europe we needed to control our own distribution,” Yaraghi said.

In addition to its accent furniture and rug collections, Safavieh will also launch upholstered furniture lines designed specifically for the European market within six weeks, Jonathan Yaraghi, general manager of Safavieh’s furniture division, added.