Heat can't stop Vegas
Order-writing brisk; traffic lighter but OK
Larry Thomas -- Furniture Today, July 30, 2006
Las Vegas — Desert heat and sluggish retail business didn't appear to wilt the enthusiasm of buyers and exhibitors at the third edition of the Las Vegas furniture market.
While most exhibitors said showroom traffic was below each of the two previous markets here, few of them left this gambling Mecca unhappy because order-writing was brisk and traffic counts remained well above those of other regional markets where they have had showrooms.
Plus, exhibitors said they continued to see numerous buyers who didn't visit their showrooms in High Point, but were willing to brave temperatures approaching 110 degrees to shop them here.
"People were upbeat, and the atmosphere in our showroom was electric," said Ashley Chairman Ron Wanek. "It reminded me of the excitement during the early days of the Dallas market."
Wanek was one of many executives who said order-writing was greater than the January show, despite the drop in showroom traffic.
"On the first day, we had a record order-writing day for any market, anywhere," said Paul Coscarelli, a partner in APA Marketing, an importer of casual dining, upholstery and entertainment furniture. "We were very pleased with the market."
John Sandberg, president and CEO of Sandberg Furniture, said order-writing at his company's showroom was ahead of the inaugural Vegas market in July 2005, when showroom traffic exceeded nearly everyone's expectations.
"But more importantly, we saw more majors from across the country," Sandberg said.
He credited the company's step-up Platinum Collection, which was launched last July, with driving much of the business. He said product introductions in general are a key to success in Las Vegas.
"Product introductions are proving to be a viable component for Las Vegas," said Bill Benton, president of Powell Co. "You had a significant group of people here who were not in High Point and were seeing the products for the first time."
Exhibitors said the vast majority of buyers were from the West, but they expect more retailers from the Midwest and East will shop the market next January, when the WMC's second building opens.
The new 16-story structure will give the WMC about 2.9 million square feet of permanent showroom space.
"Ten to 15% of our customer base said they were waiting for the next building to open so they would get a better return on their time and money," said Chris Podschun, president of upholstery producer LaCrosse Furniture.
Brian Lange, president of Best Home Furnishings, said, "We did not see the number of buyers that we saw at the first two Vegas shows, but even so, this was a strong market for us."
The WMC plans to break ground in September on its third showroom building, a 15-story structure with nearly 2 million square feet of permanent showroom space. That prospect has many exhibitors even more excited.
"I think building three is critical mass for Vegas," said Ed Grund, CEO of A.R.T. Furniture. "That will give Vegas about 5 million square feet of permanent space in three buildings in one central location."
Although overall traffic was down, market organizers said there was a sharp increase in international buyers.
WMC officials said international attendees from 116 countries were registered, up from 80 countries at the January show. Exhibitors noted a significant increase in international buyers, especially from Europe, Australia, Mexico, Canada the Middle East.
"International business is exploding in Las Vegas," said Rick Parker, CEO of upholstery and casual dining specialist Douglas Furniture. "Not only did we see more international buyers this market than ever before, but we wrote significant orders from these companies."
Last week's searing heat nearly overwhelmed the air conditioning system in the Pavilions, the huge tents near the WMC that house temporary exhibit space. But after an uncomfortably warm opening day, exhibitors said overnight repairs cooled the spaces considerably for the remainder of the week.
Exhibitors occupying nearly 1 million square feet of temporary space at the Las Vegas Convention Center remained cool during market and most were pleased with traffic and order-writing as well.
"It was fantastic. Our numbers are up 38% over January," said Michael Campbell, president of upholstery importer Leather Italia USA. "We saw both majors and independents, as well as a few clients who have not been to this show before."
While Leather Italia was at its third Las Vegas market, bedding producer Symbol Mattress was equally pleased at its Vegas debut.
"I think we're here to stay," said Todd Neiting, Symbol's vice president of sales and marketing. "We had a good show.
| Acknowledgements | ||
| Editor-in-Chief Ray Allegrezza, Senior Editor Gary Evans, Leather Editor Joan Gunin, Staff Writer Jeff Linville and Senior Retail Editor Clint Engel contributed to this story. | ||
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