1847 Goedeker Inc. (NYSE American: GOED) ("Goedeker" or the
"Company"), one of the largest specialty ecommerce players in the
U.S. household appliances market, today issued the below letter,
signed by recently-appointed Chief Executive Officer Albert
Fouerti, to the Company’s stockholders. As a reminder, Goedeker’s
inaugural Annual Meeting of Stockholders (the “Annual Meeting”) is
scheduled to be held on Wednesday, November 10, 2021. Further
information regarding the Annual Meeting will be set forth in the
Company's notice of the Annual Meeting, proxy statement and other
proxy materials. Stockholders are not being asked to take action at
this time.
Fellow Stockholder,
I recently accepted the Chief Executive Officer role at 1847
Goedeker Inc. (“Goedeker” or the “Company”) for a simple reason:
the Company has a unique opportunity to become the pure play
ecommerce leader in the $32 billion U.S. home appliances category.
My goal is to build a world-class business that ultimately holds a
double-digit share of the category. That is why I am devoting all
of my energy and time to implementing the type of strategy that
produced years of growth for Appliances Connection, Inc.
(“Appliances Connection”) prior to the combination with
Goedeker.
With this context in mind, I want to stress that Goedeker is
only beginning its pursuit of scale and market leadership. We just
closed the Appliances Connection transaction in June and initiated
a management transition in August. We are still integrating the two
businesses and putting the pieces in place to offer customers
unrivaled selection, the most competitive pricing, faster shipping
and a differentiated ecommerce experience that allows them to
conceptualize appliances in their homes. Our mission is to make it
as easy as possible for customers to execute orders through a click
of the mouse or a phone call.
Fortunately, we have the right people and the right plan to
accelerate the integration and speed up our foundation-building
phase. I am confident enough in our prospects that I recently added
to my sizable stockholdings by purchasing 330,000 shares on the
open market. My interests remain squarely aligned with yours.
In an effort to lay the groundwork for sustainable and
profitable growth, our leadership is seeking to replicate the
playbook that underpinned Appliances Connection’s success. This
includes:
- Ensuring expansive product selection. Due to our
specialization in home appliances and strong relationships with
suppliers, we are providing customers expanded access to core,
premium and luxury brands. This includes upgraded and
environmentally-friendly products as well as more private label
offerings. We believe this is a distinct value proposition that
will continue to set Goedeker apart from brick-and-mortar retailers
and larger ecommerce companies that treat home appliances like one
component of a massive product catalog. Although there are
near-term inventory headwinds due to supply chain disruptions, we
are leveraging our new economies of scale and purchasing power to
obtain as much inventory as possible. We expect demand for our
products to remain strong for the foreseeable future due to the
thriving housing economy.
- Prioritizing competitive pricing. Thanks to our
economies of scale and technology capabilities, we are now offering
the minimum advertised price approximately 88%-92% of the time. We
believe our consumer-friendly pricing can become even more enticing
once supply chain constraints ease and suppliers increase
promotions that Goedeker can pass along to customers. We will
continue to invest in best-in-class pricing algorithms and the
latest insights to adjust pricing in as close to real-time as
possible.
- Providing fast and reliable shipping via a growing
fulfillment network. We are in the process of expanding our
fulfillment network to provide cost-effective, quicker and more
dependable shipping. Given our expanding customer bases in the
southeast and southwest, we are identifying well-positioned
fulfillment centers in Florida, Texas and California. Our thorough
cost-benefit analysis leads us to believe that establishing
facilities in these geographies will limit the number of delivery
transfers and touches on orders, thereby reducing shipping expenses
and minimizing the likelihood of product damage that spurs customer
dissatisfaction.
- Strengthening customer service. We are replicating the
Appliances Connection customer care model at Goedeker. This means
building a customer care team that is instinctively accommodative
and exceptionally well-versed when it comes to our products. Our
team is already cutting down on call wait times and improving
online response times. We are doing everything in our power to
drive lifetime customer loyalty.
- Maintaining a best-in-class technology stack and digital
marketing presence. Since joining the Company, I have been
working with our teams to ensure that the integrated Appliances
Connection and Goedeker fulfillment network has the very best
warehouse management and logistics systems. This will allow us to
better track our existing inventory and emerging needs, ultimately
helping mitigate margin erosion. We are also optimizing the
Company’s front-end technology, including our web properties and
pay-per-click marketing programs.
- Initiating a rebrand that will result in Appliances
Connection and Goedeker operating under one brand. We have
retained a top marketing agency to help us establish an inviting,
memorable brand that can maintain lifetime customer loyalty. Taking
this step will allow us to have one website, one marketing strategy
and one set of customer analytics. We expect this rebrand to be a
strong tailwind for us once it is finalized in early 2022.
Although we guided significant revenue growth for fiscal year
2021 in our August 12th earnings release, our opportunity is
long-term in nature. I firmly believe that executing on the
aforementioned initiatives in the coming quarters will give us the
opportunity to grow sustainably and profitably for years to come.
The Board of Directors (the “Board”) and I are committed to seizing
meaningful market share – not being a niche player.
I also want to take this opportunity to note that we have been
working to strengthen our corporate governance over the past
quarter, including by:
- Appointing Ellery W. Roberts, who is a meaningful
stockholder, as Executive Chairman. Ellery, who possesses
significant capital markets acumen and strategic planning
experience, is the ideal partner for our management team. He is
actively involved in our capital allocation decisions and efforts
to unlock post-transaction business efficiencies. His willingness
to assume a larger role as Executive Chairman allows the management
team to devote more of its time to accretive, revenue-generating
actions.
- Adding Alan P. Shor as a director. Alan, who has
significant specialty retail experience, previously drove an
impressive turnaround at Zales Corporation. He subsequently
co-founded the Retail Connection, which is a specialized banking
and advisory firm for retailers. He has been a tremendous asset to
the management team since joining the Board this past summer.
- Carrying out an ongoing refresh of the Board. The
Board’s Nominating and Governance Committee has been working to
identify new directors with experience in ecommerce, home
appliances, fulfillment and the capital markets. We are working to
appoint individuals with skillsets aligned to our greatest needs
and opportunities. The search process is well underway and includes
input from our stockholders, and we expect to add new directors in
the near-term.
We look forward to receiving continued feedback from
stockholders – both large and small – on our strategy and efforts
to strengthen the Company’s corporate governance. What we do not
welcome, however, is the costly, disruptive and unwarranted
activist campaign recently initiated by Kanen Wealth Management
(“Kanen”). You may be aware that Kanen has publicly nominated five
director candidates and is seeking to obtain control of the Board
and, in turn, your Company. It is disappointing that Kanen insists
on running this type of potentially destabilizing campaign after
claiming to support my appointment as Chief Executive Officer and
while the Company is running a publicly-disclosed Board refreshment
process that has taken into account stockholder input.
I look forward to engaging with you in the weeks leading up to
the Company’s Annual Meeting of Stockholders about our Board, the
business and the significant opportunities ahead of us under my
leadership.
Thank you for your investment in Goedeker and for your
consideration and support.
Sincerely,
Albert Fouerti Chief Executive Officer and Director 1847
Goedeker Inc.
About Goedeker
Goedeker is an industry leading e-commerce destination for
appliances, furniture, and home goods. Through its June 2021
acquisition of Appliances Connection, Goedeker created one of the
largest pure-play online retailers of household appliances in the
United States. With warehouse fulfillment centers in the Northeast
and Midwest, as well as showrooms in Brooklyn, New York, and St.
Louis, Missouri, Goedeker offers one-stop shopping for national and
global brands. We carry many household name-brands, including
Bosch, Cafe, Frigidaire Pro, Whirlpool, LG, and Samsung, and also
carry many major luxury appliance brands such as Miele, Thermador,
La Cornue, Dacor, Ilve, Jenn-Air and Viking among others. We also
sell furniture, fitness equipment, plumbing fixtures, televisions,
outdoor appliances, and patio furniture, as well as commercial
appliances for builder and business clients. Learn more at
www.Goedekers.com.
Important Additional
Information
The Company, its directors and certain of its executive officers
will be deemed to be participants in the solicitation of proxies
from the Company’s stockholders in connection with the Annual
Meeting of Stockholders (the “Annual Meeting”). Information
regarding the names of the Company’s directors and executive
officers and their respective interests in the Company by security
holdings or otherwise is set forth in the Company’s Form 1
Registration Statement, as amended (collectively, the “S-1”),
initially filed with the U.S. Securities and Exchange Commission
(the “SEC”) on May 3, 2021, and amended on each of May 13, 2021,
May 24, 2021 and May 25, 2021. To the extent holdings of the
Company’s securities have changed since the amounts set forth in
the Company’s S-1, such changes have been reflected on Initial
Statements of Beneficial Ownership on Form 3 or Statements of
Change in Ownership on Form 4 or Annual Statement of Changes in
Beneficial Ownership of Securities on Form 5 filed with the SEC.
These documents are available free of charge at the SEC’s website
at www.sec.gov. Information can also be found in the Company’s
Annual Report on Form 10-K for the year ended December 31, 2020 on
file with the SEC. The Company intends to file a definitive proxy
statement and a BLUE proxy card with the SEC in connection with any
such solicitation of proxies from the Company’s stockholders.
STOCKHOLDERS OF THE COMPANY ARE STRONGLY ENCOURAGED TO READ SUCH
PROXY STATEMENT, ACCOMPANYING BLUE PROXY CARD AND ALL OTHER
DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN
THEY BECOME AVAILABLE, AS THEY WILL CONTAIN IMPORTANT INFORMATION.
The Company’s definitive proxy statement for the Annual Meeting
will contain information regarding the direct and indirect
interest, by securities holding or otherwise, of the Company’s
directors and executive officers in the Company’s securities. If
the holdings of the Company’s securities change from the amounts
provided in the Company’s definitive proxy statement, then such
changes will be set forth in SEC filings on Form 3, 4, and 5.
Updated information regarding the identity of potential
participants, and their direct or indirect interests, by security
holdings or otherwise, will be set forth in the definitive proxy
statement and other materials to be filed with the SEC in
connection with the Annual Meeting. Stockholders will be able to
obtain the definitive proxy statement, any amendments or
supplements to the proxy statement and other documents filed by the
Company with the SEC at no charge on the SEC’s website at
www.sec.gov. Copies will also be available at no charge on the
Company’s website at www.goedekers.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210921005584/en/
For Stockholders:
Goedeker Investor Relations ir@goedekers.com
or
Morrow Sodali Mike Verrechia, 800-662-5200
m.verrechia@morrowsodali.com
For Media:
MKA Greg Marose / Charlotte Kiaie, 646-386-0091
GOED@mkacomms.com
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