Lean inventories create opening for upholstery
Sources stressing value with new goods
By Gary Evans -- Furniture Today, April 25, 2009
High Point — Stationary upholstery makers are coming to the High Point Market with hopes that a faint uptick in business over the past several weeks will lead to solid buying.
"Everybody across the board has been trying to reduce their inventory, and it is very, very lean out there," said Igor Jukanovic, director of marketing services for Marge Carson. "Retailers will be looking for a good value — something that will drive their business up."
But Jukanovic, who describes himself as objective and realistic, noted, "They certainly would like to add more inventory but they are very cautious."
Buyer registrations for the upper-end upholstery and case goods vendor are on par with the past few High Point markets and down about 4% from two years ago. "From that standpoint, it looks like a lot of people are coming," he said. "We'll see how that translates into business."
Marge Carson is introducing two collections of living, dining and bedroom pieces, which will include sofas, chairs and sectionals along with the addition of new fabrics. But Jukanovic said the company has scaled back its overall number of pieces.
Introductions include some high-value pieces as the company responds to downward price pressure.
"It is true that a lot of retailers are looking for price points that they feel comfortable putting on their floors for customers who are looking for value," Jukanovic said.
"Our market is a luxury market so it's that 7% with money," he said. "What I always say is that the ones who have money always have money. The customer we are missing at the moment is the couple that is getting their professional careers together and earning a lot of money but are just not comfortable to go out and spend."
Sean McFadden, vice president of sales for Weiman and Interlude, expects to see "key partners" here this week.
"We'll see people who are committed to their business who have to come to High Point," he said, adding that he thinks "anybody who can skip the market will skip it.
"Where you'll see the market lacking is in the designer trade. The building trade obviously is going to be absent. They're a long way from recovery."
McFadden said that "from the standpoint of owned inventory, the danger is in letting your store suffer visually" by not having enough frames and accessories on the floor.
"We're in the business of new — finding new fabrics, new frames and things that will make people excited about the business," he said.
Retailers are looking for fresh looks but want it at a sharp price, according to McFadden.
"There was a time when, if something were so breakthrough and so powerful, the price tag would be a secondary consideration," according to McFadden. "That's not the case any more. People want the new and they want the new to be value, which makes you work extremely hard."
McFadden notes that even people with money are reluctant to part with it under current circumstances. "A lot of it is psychological. They want to be responsible in their purchases no matter what financial level they're at," he said.
Still, there could be opportunities for producers, said Rob Spilman, president and CEO of Bassett. "Inventories have been managed down and people will want to make sure they are ready for the fall, Labor Day and that time of year when they need to be exciting people," he said.
As for predicting the outcome of market, Spilman said, "I think you can surmise that it's going to be tough in terms of overall attendance. I haven't seen the pre-registration numbers but I do think that people who are there are going to be buying product. I hope I'm right."
Stefanie Lucas, president and CEO of Rowe, said, "I'm really positive about market. We have a new showroom that we're debuting (with Rowe and its Clayton Marcus division side-by-side). I feel like that's going to create some excitement.
"We have some good product and some aggressive programs for our customers. So we're feeling pretty good about it."
One caution: "I think people will buy from fewer people," she said. "They'll be more selective about who they buy from. The ones who are strongest are going to get the business."
Greg Sicard, national sales manager for Best Home Furnishings, said retailers he's talked to lately "seem to be more upbeat and in a little better mood. You don't walk into the store and the first thing they do is complain about how terrible business is.
"They're asking for new products," he added. "They asking for something different, not just a new style but a new innovation." Sicard said that the company unveiled a new recliner in Las Vegas, based on what the medical industry uses, that lies completely flat. "The dealers just absolutely loved it," he said. "It was something different and it created a buzz."
Sicard said he's usually optimistic about market results, but this time has a major concern over the Saturday opening day.
"The mom-and-pop stores, the bread and butter of our business, are down so low on their employee count that it's hard for them to leave their stores," he said.
While there may be some fallout from the West Coast and "people who are really, really watching it," Meredith Younger Spell, marketing director for Younger Furniture, thinks attendance — particularly from the East Coast — will be at normal levels.
"We're hopeful," she said.
Younger, celebrating its 20th anniversary, will have plenty of new goods to show buyers, including Elements, designed by Randy Culler, the company's first use of an outside designer. The contemporary collection includes elements of Art Deco, European contemporary and classic styles updated for today's lifestyles.
"Retailers are looking for domestic manufacturers who they can trust and who will give them the best of everything — a custom product with short lead times, style, quality and price in one package," Spell said.
In the three-and-a-half years she's been working at Younger, Spell said there's been a big shift of interest from imports to domestic products.
"Over the two previous markets, it's been the first question out of their mouths: 'Where is this made?'"
She said the company has incorporated "Made in N.C." into its logo to promote that aspect to retailers.
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