Nugget Comfort

In their category, Nugget is competing against major retailers such as Walmart, Target and Macy’s; niche furniture stores such as Rooms To Go and Ikea; and companies that sell their products online (E-Commerce) such as Amazon, eBay and Furniture.com

Major retailers: These companies pose a threat to Nugget in the sense that they offer the consumer to shop for their products directly at their stores. However, these are major retail companies that also offer a wider variety of products, which doesn’t allow them to offer a more tailored product for kid’s rooms such as the Nugget.

Niche furniture stores: These companies offer a wider variety of products on the Nugget’s category (children’s furniture). They also have stores that allow the consumer to shop directly for their products, and not just online. The combination situates this category as the major threat to Nugget’s business.

E-Commerce: There are specialized websites that offer online shopping for products that coincide with the category of the Nugget. However, most of these offer products of major retail stores and not specialized and tailored products such as the Nugget.  The biggest barrier of e-retailers is consumers’ hesitation of purchasing a product before testing it.  E-retailers in the furniture sector, like Wayfair.com, attempt to get around this by included reviews from consumers who have already purchased the item and hotlines to speak to “experts” on particular items.  However, this is not always enough.  The Nugget works to break down this barrier by producing items convenient for online purchase paired with in-person brand ambassadors.