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Nationwide Forms Furniture Alliance

11/21/2005 02:00:00 AM Eastern

Nationwide Marketing Group, the $9 billion white- and brown-goods buying organization, has formed a strategic alliance with the Furniture Marketing Group (FMG), a 63-member furniture buying consortium based here.

Under terms of the alliance, FMG will merge with Nationwide's Furniture Smart division, and the new entity, which will assume the name FMG, will tap into Nationwide's member support structure, which includes purchasing, advertising, marketing, communications and training functions.

“Today, the challenges facing independent furniture retailers have never been greater,” said Bob Cremer, president of FMG and principal of Aronson Home Furniture, the Chicago area CE, majap and furniture chain and Nationwide member. “We see this relationship creating operating efficiencies and synergies which will help the members of FMG grow strong and more profitable for many years to come.”

The new alliance will effectively double FMG's buying power to approximately $2 billion at retail, the buying groups said.

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