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Tupelo uph. buyers replenish inventories

Price, service as important as new product

By Larry Thomas -- Furniture Today, March 14, 2005

Id: 3219

Despite a modest number of product introductions, order-writing pads got a brisk workout in upholstery showrooms here.

Producers said retailers appeared eager to replenish inventories and line up promotions for the spring selling season, even though some economic indicators, notably interest rates, are not positive for the coming months.

"I can't say business has been great; I can't say it's been terrible," said Jerry Marlin, executive vice president of motion specialist PeopLoungers. "I just wish we could be more consistent."

Front-loaded action

Marlin said showroom traffic and order-writing were strong on opening day and the day before the official opening, but tapered off during the latter half. He and several other exhibitors said buyers from Top 100 furniture stores, department stores and other major accounts were particularly active during the market's early days.

"We were slammed with major accounts," said Don Hunter, senior vice president of national accounts at Catnapper, another motion upholstery specialist.

Herb Hester, president of Caye Home Furnishings, agreed, noting that most buyers were as interested in price and service as they were in new products.

"We were very pleased with traffic. We wrote a lot of orders," said Hester, whose company makes the Stratford, Stratolounger and Simmons Upholstery brands.

Quick-ship programs appeared to be popular with buyers, and a revamped program at United Furniture Inds. kept that company's showroom busy throughout market.

"It's going to be hugely successful," said Hugh Hargett, United's vice president of sales. "We had a real good show."

The company's new program includes 12 recliners and two motion sofas, and Hargett said more items could be added, given its early success.

"It certainly will become a more significant part of our business," he said.

Kerry Lebensburger, president of Ashley's upholstery division, said that, while traffic and order-writing were strong in Ashley's sprawling showroom, he's concerned that sales momentum won't sustain itself into the year's second half.

"I haven't heard that much about the lift (in business) from tax refunds," he said.

However, Ashley's motion business should get a bit of a lift from the rollout of seven motion groups in a padded suede fabric. The groups feature a motion sofa, available in two colors, that retails for $599.

Promotionally priced motion upholstery also was a hit at import specialist Primo International, now the exclusive North American distributor for the Asian-made Linkwise motion products.

Mark Price, Primo's U.S. sales manager, said the line features 14 recliners at $299 and $399, as well as a home theater seating group that retails for $999.

"The line is really doing well," Price said of the Linkwise program. "The values are there ... and just about everything is in stock."

Market winners

Other upholstery winners at market included a pair of Catnapper recliners at $499 and $599 that feature a swivel/glide mechanism, and a new specialty chair program at Palliser that allows a dealer to show up to nine chairs in a fashion-forward, 250-square-foot environment.

"It's what I call creating a hot spot on the (retail) floor," said Kevin McGuinness, who oversees Palliser's specialty chair business. "You can show the consumer leather, leather match and fabric in the same display."

On the glider rocker front, good order-writing was reported at Brooks, Newport, Towne Square and Holland House.

Larry Daigneault, president of Newport Gliders, said buyer reaction was especially strong to a new fully upholstered glider/recliner that retails for $699. "Times are tough for retailers, but I'm pretty positive about this year," he said.

Gene Gathagan, vice president of sales at Brooks, said business has been a bit slow lately, but he believes it will pick up following a major new product rollout the company plans to make at the High Point market in April.

"We started off the year well, but it has fallen off a bit recently," Gathagan said. "Inventory levels are high right now, and that makes it a lot tougher."

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