Occasional: A strong base for '05 growth
By Jeff Linville -- Furniture Today, December 26, 2004
High Point — It might be called occasional, but accent furniture was anything but an occasional purchase in 2004. While antidumping issues slowed bedroom sales, occasional furniture continued strongly.
Occasional sales picked up some this year over 2003 for Coaster Corp., according to Toby Konetzny, merchandising manager for occasional. The importer introduced new lines and styles this year that were well received.
Pulaski Furniture said its occasional sales also were up slightly this year, according to Jim Kelly, executive vice president of product development and marketing. The company has about 10 product niches that it serves, including accent furniture, wine storage pieces, curios, étagères, vanities, occasional tables, game tables and pedestals, and all are doing well now, Kelly said.
"This has been a good year — not a great year, but good," said Dan Sumner, Butler Specialty vice president of sales and marketing. Last year was a record year for the company, he said, and as of the end of November, sales were 2% ahead of that.
Butler had several years of double-digit increases before the ongoing recession finally caught up with it. However, Sumner expects good growth next year. An expanded High Point showroom allowed the company to show more products and draw new interest from buyers in October, he said. Next year's planned launch of a Connie Post-licensed collection could bring strong sales and new retailers.
At Stein World, "We were anticipating a great 2004, and it was," said James Franks, chief operating officer. The High Point market was a big success both in April and October, he said, helping push the company to a double-digit sales increase for 2004, continuing a streak for the past few years.
Franks said the company signs up dozens of new retailers each market and did even better than usual this October thanks to the new showroom location in the International Home Furnishings Center at the skywalk between the Main and Wrenn wings. The space offered a bigger area to show more product and also brought a lot of passing traffic.
The new interest should result in a strong 2005, he said, especially with the merger earlier this year with lighting company Emess Design Group, which opens Stein World to new markets and retailers.
Collezione Europa was once an occasional specialist, but case goods and upholstery have been fast-growing categories over the past couple of years, said Bill Carpenter, vice president of key accounts.
While the company's emphasis has shifted away from occasional, the category is still growing, he said. Collezione still sells a lot of freestanding occasional, but the growth is coming from whole-home collections.
Since it added leather, Collezione's occasional table business also has picked up, he said, so the company is looking to style more matching tables next year.
Offering upholstery and occasional together long has been a practice for Ashley Furniture. A typical package has been a sofa, loveseat, two lamps and three occasional tables for $1,299, said Kerry Lebensburger, president of sales, upholstery division.
What's happening now is that consumers want more than just a three-pack of tables, he said. Rather than just a cocktail and two end tables, consumers are shopping for a sofa table and/or an accent piece. Ashley now offers larger, nine-piece rooms for $1,499. The home program has grown so much that retailers are buying matching entertainment centers, home office desks and even dining room furniture.
Coaster has found success by matching occasional with leather upholstery and also with some casual dining sets. Bassett Furniture and Broyhill Furniture also have had success with correlating occasional products.
"We're focusing on sharp price points to go with our studio upholstery program," said Tamara Evans, merchandise manager for Broyhill's occasional/accent furniture division.
Bassett's new Rue de Seine collection has occasional that matches its leather upholstery.
Magnussen Home doesn't offer upholstered furniture, but it does poll upholstery buyers to determine emerging trends in the category, said Richard Olmeda, senior vice president. He said it appears the trend toward more urban and contemporary looks likely will continue next year and will influence what Magnussen introduces at the April High Point market.
While the whole-room approach is successful at the promotional and lower-medium price points, the more affluent consumers don't like it, said Ed Tashjian, Century's corporate marketing director.
Century used to generate about 70% of its sales from case goods and 30% from upholstery, he said, but now the ratio is closer to 60/40 in favor of upholstery. With this shift, it has become more important to market occasional with upholstery. However, Century's customers don't want items that look prepackaged, he said.
Promotional manufacturers tend to sell to younger couples living in starter homes, he explained. They don't really know furniture that well yet and are worried about making a mistake in styling a room, so the whole-room approach takes that worry away.
But older, more sophisticated, wealthier consumers know what they like and pick pieces that reflect a lifestyle that they live or aspire to, Tashjian said.
As for what is selling well these days, Tashjian said a mix of looks has been successful, but most fall under the general category of "casual elegance."
Ashley, Broyhill, Coaster and Magnussen all said contemporary styles are doing well now.
"As long as it's contemporary and goes with microfiber, it sells," said Lebensburger. Ashley also is doing well with Merlot and weathered black finishes.
Dark and light finishes are selling well for Powell, but medium finishes have fallen off, said Sean Slack, executive vice president of merchandising and marketing. Also, he said, the content of mixed media has changed; leather and wood combinations have slowed, while wood, metal and stone combinations are strong.
Broyhill noted that mixed media continues to do well. At Coaster, a line of slate-top tables has performed nicely.
Hand-painted designs have returned to prominence after a recent trend away from them. Pulaski, Stein World, Butler and Ultimate Accents all reported strong sales in this look.
A hit at the High Point market for Bassett was an extension of its Simply Yours program to include occasional. The customization approach has been successful with the company's casual dining and upholstery program, said Martin Gardner, director of merchandising for occasional.
The concept, similar to the approach long used by casual dining giant Canadel, allows consumers to build their own furniture by selecting from a choice of leg styles, tops and finish options. A rectangular cocktail table would range from $469 to $499, depending on the options chosen.
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