Vegas buyers find values
Low store inventories create demand
By Jay McIntosh -- Furniture Today, February 16, 2009
LAS VEGAS — LAS VEGAS — Anxiety over the viability of last week's market here was washed away as buyers arrived and started placing orders.
Near week's end, many exhibitors at the Las Vegas Market said traffic was not great but was good enough. Written orders showed that even in a soft economy, retailers need product on their sales floors.
Buyers found their own form of economic stimulus as exhibitors, anxious to keep their source factories running and their customers in business, offered innovative product, sharper values and quick shipping.
Market officials said that buyer and designer attendance on the market's opening day was down just 2% from the January 2008 first day. Exhibitor reports of traffic were mixed, although most said it was better than expected.
“We came into this market with decidedly subdued expectations. However, we were really pleased with the tone and volume of the meetings we had with customers,” said Jim Ziozis, president of Linon Home Décor Products. He said retailers all asked for value-sensitive products that are well made and can ship almost immediately.
Bill Benton, president and CEO of Powell, had a similar take.
“I came here with low expectations, but any worries were soon put to rest. We saw lot of buyers, wrote plenty of orders and even better, opened up new accounts,” he said.
Benton also attributed to new business to some retailers' needs to find reliable suppliers. “Buyers told us that the economic meltdown caused some fly-by-night sources to fold up their tents,” he said.
“I suspect nobody knew what to expect coming in,” said Broyhill Preisdent Jeff Cook. “But even so, we didn't pull back. We came to market with new products that we knew were on the mark as the result of consumer research we conducted.”
Buyers reviews also were mixed, but some said they were pleasantly surprised by the amount of new product they saw and the lower pricing and better values.
“We were surprised,” said Alfredo Lopez, purchasing director for Miami Gardens, Fla.-based El Dorado Furniture. “The vendors and suppliers have cut back pricing and some have given us free samples to get business stimulated. Everybody is trying to help each other.”
Jay Howard, president of Rogers, Ark.-based I.O. Metro, said he was surprised by the amount of fresh product he saw throughout the market.
“I was afraid, with suppliers' business being down, they would have been more conservative with their introductions in hopes of moving inventory they already had,” he said.
Rob Woods, president of Leggett & Platt's consumer products group, said the market helped his division generate the highest order levels over a two-day period that it has seen in recent months.
“People have been very upbeat,” said Woods. “Nobody is talking about the economy. I couldn't be more pleased with their attitudes.”
He added that people have responded well to products across the company's lines, particularly to new adjustable bed products. “People are looking for innovation, and we gave them a reason to come,” he said.
“We were pleased with the show and pleasantly surprised by attendance and peoples' attitudes,” said George Revington, president and CEO of Home Meridian International, the parent company of case goods resources Pulaski and SLF. “We sold new suites and gained new placements.”
Doug Bassett, vice president of sales for case goods manufacturer Vaughan-Bassett, said traffic was down in the single digits from last January. In particular, he noticed a decline in attendance from some East Coast major accounts.
Still, he said, traffic wasn't down as much as company officials had feared and there was “decent order writing” for existing and new goods.
Marc Abrams, vice president, sales for case goods supplier Wynwood Furniture, said showroom traffic was good. He also said that in today's economy, it's more important than ever for product to hit the mark.
“Today, the key is to survive and thrive and bring fresh new product that appeals to retailers and end consumers. Now you just can't get four out of five new collections right. You have to get five out of five right,” Abrams said.
Crystal Nguyen, vice president of merchandising at solid-wood casual dining and bedroom supplier A-America, said market traffic “broke a record on Monday” and stayed busy the next two days.
“There was quite a bit of sales commitment,” she said. “There were still the deal seekers, but there's a lot of excitement over our new product.”
Editor in Chief Ray Allegrezza, Senior Retail Editor Clint Engel, Associate Editor Thomas Russell and Staff Writer Heath E. Combs contributed to this story.
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