Cost Plus World Market, which operates 138 stores in 20 states, is rapidly expanding on the East Coast.

VIRGINIA BEACH, VA: In 1958, the first Cost Plus store opened when a San Francisco businessman parlayed his passion for travel into an import business by selling a shipload of hand-woven wicker from crates on the wharf.  The furniture sold out within a few days, but the idea and the name lived on.   Soon the company's store at Fisherman's Wharf, became a destination for both tourists and local residents. 

Originally the name came from the company's pricing policy: cost plus 10 percent.   Its motto, "50 Countries -- One Store," signifies that Cost Plus buyers obtain exclusive goods from countries in Europe, North and South America, Asia and Africa.  The company went public in 1996, and trades on the NASDAQ National Market under the symbol CPWM.  Recently, the name has been changed to World Market as they have expanded to the East Coast. World Market, now operates 138 stores in 20 states throughout United States.

World Market has accelerated its growth and begun a realignment of its distribution system as it penetrates new eastern states.  Increasing distribution and buying efficiencies will bring world merchandise at mass market prices to the Southeast and the Mid-Atlantic.  Recently, the company signed a lease for 500,000 square feet in Southeastern Virginia's Isle of Wight County, where it is building its East Coast distribution center. 

Mike Englund, World Market's director of real estate, says he is excited about this location.  "It's a mid-point on the Atlantic Coast," he says.  "This center will service the entire area.  It makes perfect sense."  The area Englund refers to includes  the five Virginia locations in Fairfax, Falls Church, Kingstown, Sterling, and Arlington.

World Market is currently seeking sites in the Virginia markets of Hampton Roads, Richmond, Charlottesville, Roanoke, and Fredericksburg.  The Divaris Real Estate retail team of Gerald S. Divaris, Mary McGovern, and Debbie Wake is handling site selection and lease negotiations.

World Market is a leading retailer of specialty casual home living and entertaining products.  Exotic, exciting value-priced merchandise is displayed in an innovative, fun and friendly shopping environment that often provokes a feeling of discovery.  A destination shopping outlet, World Market appeals to the one-stop shopping trends of the sophisticated shopper.  Furniture, collectible arts and handicrafts, soft home goods, exclusive design wrapping papers, kitchenware and garden accessories are just a few of the top quality products shoppers will find in World Market stores. 

Additionally, as the home decor market becomes increasingly competitive, World Market insulates itself with the sale of consumables that appeal to shoppers for their own use or as gifts.   With 36 percent of its business in consumables and its lower price points, World Market differs from its home decor competitors, thereby strengthening its position in the marketplace. International food offerings include imported and domestic wine and beer, pasta and pasta sauces, fresh-roasted coffee beans and chocolates. 

All of the merchandise reflects the changing of the seasons.  Warm weather entertaining accessories are emphasized in the spring and summer, while indoor decor and holiday entertaining are emphasized in the fall. 

The novelty and constant updating of its product mix, encourages frequent and lengthy shopping visits, averaging 50 minutes each.  Sixty percent of its products are new to the stores each year.  The sale of consumables keeps the average per-transaction cost to $31, which is low for home furnishing retailers, but foot traffic is significantly increased.

"We prefer upscale neighbors," says Englund.  "Bed Bath & Beyond, Borders, Books & Music and Crate and Barrel are the stores we prefer to be close to."  While World Market prefers lifestyle or power centers, the retailer also has five stores located in major regional malls, each with its own entrance.

The future could see a doubling in the number of locations for World Market, with as many as 300 stores.  Strong third quarter sales seemed to be consistent throughout the chain, evidence that the company can expect the same success in the East as it has enjoyed in the West.  In 2000, the company opened nine stores, including the Charlotte, North Carolina and Atlanta markets.  New stores usually generate $3 million in sales each year, increasing to $4.5 million in its fifth year, according to the company.