Motion moving to quickening business beat
Retailers with lean inventories beginning to prepare for rebound
By Larry Thomas -- Furniture Today, January 27, 2002
SAN FRANCISCO — Motion furniture producers aren't quite ready to declare victory over the recession, but an uptick in business the past two months has lifted their spirits and kept factories busier than expected.
Producers showing at the winter furniture market here said November and December were especially strong, and most said January, traditionally not a banner month, would turn in a good performance.
"Business has been strong for us since well before Christmas," said Tom Mehalko, vice president and general manager of Towne Square, a major glider rocker manufacturer owned by Dutailier. "I think (retailers) cleaned out a lot of inventory during the Christmas season."
Mehalko and other executives said most dealers came to market with lean inventories, which they were eager to replenish. Plus, dealers were almost universally predicting a rebound in 2002, and producers said many took the first cautious steps to position themselves for the recovery.
"We're seeing our orders come back real strong," said Dwight Hardison, vice president of marketing and merchandising at BenchCraft. "Our factory has been working every Saturday for several weeks."
Producers said recliners and glider rockers, which often are impulse purchases, have moved especially briskly in recent weeks, but higher-ticket items such as reclining sectionals also are doing well.
"Business really has been good. It's a little scary," quipped John St. John, product manager for recliners at Flexsteel.
Brian Lange, vice president of sales and marketing at Best Chairs, said his company's recliner business is "going crazy," and said the factory has been working at least 10 hours overtime each week in hopes of reducing the order backlog.
"Our business is actually better now that it was in November and December," Lange said. "We think January and February will be very strong."
At market, producers said leather is continuing to gain popularity. Several noted that recent leather price decreases have enabled them to sharpen some prices, but even middle to upper-end items saw brisk order-writing.
"People say they want nice leather furniture … so why shouldn't they be able to buy a recliner the same way?" said Peter Zolferino, vice president of marketing at Omnia, whose line includes leather recliners retailing for $999 to $1,699.
Zolferino said a recliner with a motorized mechanism was especially popular with dealers here, as was a sofa featuring reclining mechanisms in all three seats.
Gentry Long, merchandise manager for motion furniture at Lane, said frames with a variety of chenille covers were popular with non-leather buyers.
"We made a conscious decision to update our styling and our covers," he said. "The looks are a little more modern, but not quite as commercial."
He said the changes have helped boost business in recent weeks, and he hopes the recent sales momentum will continue throughout the year. "Our business has been really strong. We're looking forward to a good 2002," Long said.
| Hardison |
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