So long, San Fran?
Mart aims for year-round, designer focus
By Larry Thomas -- Furniture Today, February 6, 2005
San Francisco — The San Francisco furniture market, a West Coast fixture for 90 years, completed its January run in a decidedly nostalgic atmosphere.
Most buyers and exhibitors surmised that it might be their last business visit to this popular destination, and they wanted to make the most of it.
Attendance was light, but most had low expectations of the four-day show, so no one was surprised at the outcome.
"We saw some new things at the show, but it generally was a slow market," said Jeff Child, president of Top 100 store R.C. Willey. "Other than a couple of vendors, everyone said this probably will be their last market here."
Many exhibitors said they were leaving the venerable San Francisco Mart and moving to the new Las Vegas furniture market, which debuts in July. Exhibitors believe the first Vegas show will attract dealers from across the country; the San Francisco market traditionally has drawn retailers west of the Rockies.
"These people have been great to us, but this is our last market here," said Dave Pinamonti, senior vice president of case goods importer A-America. "It's not because of the effort of the people who run the market, but our dealer base is telling us on a national basis that they're going to Las Vegas."
Greg Roy, vice president and general merchandise manager at Lane, echoed those comments, noting that about 84 of Lane's 127 sales representatives already have said they will attend the Las Vegas market. Typically, only 10 to 15 have come to San Francisco.
"I think it's going to be packed," Roy said of the inaugural Las Vegas market.
But Pinamonti noted that Las Vegas does pose questions for product development.
"My concern is that a lot of the independent dealers might skip this spring's High Point market and just go to Las Vegas," he said. "High Point is still our focal point ... but how much of an impact will (Las Vegas) have on product introductions?"
At San Francisco, there was relatively little new product, but that wasn't an issue for the numerous smaller, independent retailers who didn't shop last October's High Point market.
"This has always been a good market for us," said Mark Hedden, regional director of sales and marketing at upholstery major Flexsteel. "We saw a lot of our gallery dealers from the far West, a lot of whom saw the Wrangler collection for the first time."
Kerry Lebensburger, president of Ashley's upholstery division, said that, despite the low attendance, his company's showroom was very busy throughout the show's first three days. "Many dealers shop us (in San Francisco) who don't see us at High Point," he said.
Lebensberger said he's not certain if Ashley will return for San Francisco's summer market, which opens Aug. 3, but the company will be at the Las Vegas market, which starts July 25.
Despite a slow San Francisco show, executives at Good Companies were upbeat about business, especially the company's first foray into upholstery. "Business has been great," said President and CEO Sarah Garcia. "Our orders are up 20% and we have a three-month backlog at our Mexico facility. Right now, we are on track to hit $70 million, which will represent an increase of more than 20%."
Case goods resource Winners Only is experiencing more interest in its warehouse service from larger customers, since some don't want all their import eggs in the container-direct basket, and want to avoid the costs of carrying inventory, said CEO Sheue-Wen Lee.
"Our small dealer accounts have 15% attrition a year, but it doesn't take many large dealers to replace that business," she said. "Business is mildly climbing. It's not booming like I expected, but it's not going down."
Winners Only won't be back for the summer show. "This is our last show here," Lee said on the market's first day. "The traffic is like a Sunday, but on opening day."
Not everyone is pulling up stakes here, but most who aren't will focus on designer business. South Cone, for example, will maintain a showroom in the San Francisco Mart. "We feel the designer business warrants having a showroom here throughout the year regardless of whether it's a market showroom," said Gina Harmon, showroom manager. "We'll certainly participate in Las Vegas, but unlike some vendors, it's not a matter of picking up and moving."
Case goods producer Brownstone also will retain its high-visibility showroom on the SFM's first floor, which is open five days a week. "We do a very strong business out of here year-round, and I look at these shows as a little bonus," said Paul Rodli, general manager. "There aren't a lot of big-box retailers in San Francisco, but the design business is strong."
For Zocalo, however, this market remains on the San Francisco-based importer's schedule, for now, on its own merits and the company's preference.
"This is still a decent market for us, and it's our home base," said Danny Olivas, marketing director. "Any additional showroom resources, we are putting into High Point," where Zocalo will expand in April from 11,000 to 37,000 square feet. "As of right now, we're set to have a presence here this summer. If my customers are here, we'll show here."
| Acknowledgements | ||
| Editor-in-Chief Ray Allegrezza and Case Goods Editor Powell Slaughter contributed to this story. | ||
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