Occasional faces tough competition
Smaller scaling, coordinated designs generate interest
By Thomas Russell -- Furniture Today, December 24, 2006
High Point — In what will go down as one of the most challenging retail years on record, occasional furniture resources reported mixed results in 2006.
On the one hand, the category claimed a slightly smaller slice of the overall furniture pie. On the other hand, occasional sales rose a bit in 2006, no small accomplishment in to-day's uncertain economy.
According to estimates compiled by Furniture/Today, occasional sales will rise 3% to $6.09 billion this year from $5.89 billion in 2005. But the category will account for 7.2% of total industry sales in 2006, down from 7.4% in 2005.
In an environment where consumers are closely guarding their disposable income, the category faces tough competition from other categories such as home office, bedroom and dining room. There is also plenty of competition in the occasional segment itself, with more and more companies entering the arena.
But activity in other segments is helping drive both design and sales. That's especially true in upholstery and home entertainment, two vital components of the living room. With matching designs and scale, occasional is helping to complete the setting.
Bernhardt, for instance, has occasional tables in collections and as freestanding groups. The latter, in particular, are designed largely to accommodate sofas and sectionals.
Interest in $499 chairside tables has grown along with increased sales of accent chairs, said Heather Bloom, Bernhardt's director of brand development. Accent tables also are popular in home theater settings, she said.
Bringing a room together
Magnussen Home Furnishings also has had success matching occasional and accent tables with upholstery and home entertainment. In this respect, tables with storage for such devices as remote controls, and for media such as DVDs and CDs, have been keys to success.
"By tying in home entertainment with tables, that makes the whole room work," said Karen Knoch, Magnussen merchandise manager for occasional tables and accents.
Shape and scale also are important, particularly when it comes to matching occasional groups with upholstery. This has been especially true in smaller room settings that have a sofa and an accent chair or recliner versus a typical so-fa/loveseat combination.
"You want to give an option to go with that chair," Knoch said, noting that table heights have been adjusted to accompany such pieces. Sofas with smaller arms also may warrant two smaller end tables versus one larger table, she said.
Modular and lift-top tables with different shapes have continued to do well for Magnussen, given the prevalence of sectionals. The company has seen the most success at retails of $299 for cocktails and $249 for end tables.
Occasional and casual dining specialist Jofran also has adapted its pieces to the living room setting. To complement smaller upholstery items, it has scaled down some of its end tables to 16 inches wide from 24 inches previously. Some rectangular cocktails are now 36 by 20 inches, down from 50 by 26 inches.
"There has been a tremendous demand for smaller scale," said Jofran President Bob Roy, noting the company's end tables typically retail from $149 to $249, while cocktails retail from $169 to $299.
Despite their smaller size, cocktails have plenty of drawer storage.
Jofran also is having success with a sofa table that can double as a flat-screen TV console. Retailing between $199 and $299, these pieces have a broad shelf for the TV and drawers underneath for media storage.
Function a key driver
"Functional furniture continues to be a key to our business," Roy said, noting that sales in occasional are up in the double digits this year, a trend he sees no difficulty repeating in 2007.
Styling and merchandising also remain important, and this is where companies like Peters-Revington have flourished in 2006. In April, it organized its 100 or so table groups in the Peters-Revington and Silver lines into six separate lifestyle and design realms.
"Occasional tables are items that customers can buy with very little thought, and there are so many styles across those six different lifestyle segments," said Richard Graves, vice president of sales. "For $199 and $299, they can take (away) that old table and make a whole room change."
One standout, he said, is Fusion, a transitional group with $299 retail cocktails aimed at younger consumers and baby boomers looking to scale back and simplify.
"They are very simple and functional, and we stay true to that with simple finishes and designs," Graves said. "That is getting reaction from all over the country."
Like most large case goods companies, Universal offers both freestanding occasional and occasional tied to collections. In 2006, it saw its greatest success with the latter. October standouts included Country Estates, a European traditional style group; Mandalay, a tropical group; and Grand Mansion, an opulent traditional group.
"(Each group) matches a complete lifestyle," said Phil Siler, Universal's merchandise manager for occasional and home office, noting that freestanding groups also are retailing well.
As of late November, Universal's year-to-date occasional sales were up 25%, which Siler attributes to the company's diverse mix of mainstream styles and its use of mixed-media elements such as bamboo, raffia, stone and tooled leather.
With the October introductions set to hit retail floors early next spring, he expects the company will have no trouble duplicating that growth in 2007.
Others also found success with mixed media in 2006. For instance, Bernhardt's Tuscan Villa collection, launched in April, got strong reaction on pub tables with mosaic stone tops and metal bases. Its Wil-shire Boulevard collection, launched in October, has tables with marble tops and stainless steel inlays and bases.
"It helps add some texture and visual interest to the room," said Bernhardt's Bloom. "People are starting to embrace that eclectic look, and this is a safe way to do that."
"That's the benefit of mixed media," said Chris Rayle, product manager for occasional and entertainment at Klaussner Furniture. "You take an element, whether it be stone, glass, cane, wicker or bamboo, and tie it into the design."
Powell, meanwhile, has been successful with its Michael Payne Finishing Touches accent collection. Sourced from the Philippines and Vietnam, it features a wide array of indigenous materials.
"We started on it in April and expanded it in October and got a little more placement," said John Conrad, Powell's vice president of merchandising.
In 2006, the company also had success with its Masterpiece hand-painted collection, which features $99 retail accent tables to $999 armoires.
Fresh materials
Four Hands made a style statement this year with a group of cast aluminum tables made to look like chrome. While the chrome look gave them a contemporary slant, some tables had a traditional style footprint that resounded with many buyers.
"They add a little bit of flash to an ordinary room," said Jeff Hiller, Four Hands' vice president of marketing.
The company also did well with a group of tables made from plantation-grown mango and recycled elm and teak. The eco-friendly products featured hangtags that told the story behind the materials.
Mixed media continues to work well at occasional specialist Urbanus, which markets a line of mostly contemporary tables featuring tapered steel legs and copper tops. But the use of copper proved a challenge when prices rose from $3,000 per ton in March 2006 to $11,000 a ton by the fall.
That prompted across-the-board price increases. President and founder Gayle Zalduondo said, "When the cost of goods triples and quadruples, there is not a lot you can do."
Urbanus has gone to some alternative materials, but it doesn't plan to abandon copper entirely, she said, since the use of such materials helps set the company apart.
"There is a lot of competition out there, but everything looks the same," Zalduondo said. "The jewels that we do are doing very well for us, and the attention to detail is becoming more important as other things become more commoditized."
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