Case goods exhibitors do business despite slower traffic
Tupelo Market Coverage
Powell Slaughter -- Furniture Today, August 29, 2005
 This étagère is from River Forks’ new Indonesian factory specializing in mindi wood, a tropical wood with mahogany characteristics. This piece retails for $399. |
| This étagère is from River Forks’ new Indonesian factory specializing in mindi wood, a tropical wood with mahogany characteristics. This piece retails for $399. |
TUPELO, Miss. — A new July show in Las Vegas, sluggish retail sales and typically light summer traffic resulted in slower-than-usual case goods business at the August market here.
Still, most exhibitors maintained that Tupelo remains a valuable stop on their market itinerary, even though they estimated traffic was down as much as 40% from last summer, depending on the showroom.
Ron Thames, president of Tupelo exhibitor River Forks, which imports case goods from Indonesia and China, said a “conservative” estimate was that Tupelo traffic was off 30% from a year ago. But he remained optimistic.
“We’ve had three or four people in our showroom that, if everything goes as well as we talked, we’ll be very happy,” he said.
Tom Black, vice president of East Coast sales for Master Design, said heavy dealer inventories and buyer shock after Las Vegas made a dent in sales in Tupelo.
“The buyers have only so much they can budget for going to markets,” he said, although he added that Tupelo is worthwhile for Master Design. “I have a quote going to a major, and if it hits, that alone will pay for us being at this market.”
Even Ashley, whose showrooms at any market are among the most crowded, experienced a decline compared with last summer’s Tupelo show.
“Through (Thursday), traffic was down 14%, but the reps are telling me they still wrote good business,” said Ron Wanek, chairman.
Tupelo’s importance to independent retailers prompted Rockford/American Woodcrafters to return to the show after exhibiting here once four years ago.
“Most of all, Tupelo will help us to build our warehouse business,” said Lao Labra, president. “Many potential customers in the Southeast might not come to High Point or don’t know that we have a High Point warehouse. It’s going to be an important market for us down the road. We signed a lease for five years.”
He said the warehouse offers not only a sales opportunity to reach smaller retailers, but a service advantage for container customers.
“For example, we can hold a container for a major customer at our High Point warehouse until they need it,” Labra said. “We need to promote that, and our participation here will help us do that.”
Some companies helped offset the lighter foot traffic with case goods introductions geared to value-minded Tupelo shoppers. For example, Mississippi-based importer Vineyard Furniture brought out Bridgewater, a function-heavy oak bedroom with beds from $599 to $1,799 retail.
“I’d say we’re down 20% as far as the number of people coming through the door, but we’re writing good business,” said Doug Franklin, vice president of sales. “Our dealer base knew what we were going to be doing with this new suite, and it was very well received.”
Orleans’ intros included a bedroom that reproduces a look found in a more expensive all-wood import suite from the company’s Magnolia Classics line.
“This suite, with eight-inch cannonballs and huge posts, is a hybrid of heavy wood posts and overlay married to paper product,” said Ed Marshall, CEO. “Two nightstands, dresser/mirror and bed retail for $1,199. We have an import suite like it that’s $800 more at retail.”
Johnston/Tombigbee ended up pleased with business here, said President Reau Berry. He credits JTB’s ability to help dealers keep inventories down in a soft retail environment.
“If you want to sell something from an open stock position, you aren’t going to do it in a container program,” Berry said. “To sell that import, you have to sell the entire bedroom, not just a piece.”
He added that product re-engineering, including the use of a patent-pending process for simpler case construction, is helping JTB makes better goods at a better price than two years ago. The 6300 bedroom suite, for instance, which once wholesaled at $1,199 now goes to the dealer for $957.
“Last year at this time we were 21% ahead of prior-year sales, and right now we’re up 30% over last year, and standing orders are full through October,” Berry said.
Market report positive
11/01/2009Exhibitors set for active market
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