Casual dining maintaining a simmer
Sources aim to grow with fresh designs, sales tools
By Heath E. Combs -- Furniture Today, December 24, 2006
High Point — Most casual dining producers reported a satisfactory year in 2006, with several resources continuing to distinguish themselves. But the going hasn't been easy, and few see 2007 as likely to be a stellar year.
The category made slight gains in dollars in 2006, but its share of total home furnishings sales remained flat. Casual dining accounted for an estimated $3.64 billion in sales this year, compared to $3.35 billion in 2005. That was about 4% of total sales in both years.
The overall business environment for home furnishings is expected to be tough in 2007, said Jean Deveault, executive vice president of sales and marketing for Canadel, a major casual dining maker. The company expects sales growth in the low single digits next year, he said.
In a category where imports have played a big and growing role in recent years, Deveault anticipates demand for domestic product will be higher next year, especially at medium to high prices. "In our market, people need to increase their margins," he said.
Canadel continues to do well with drop-leaf and pub-height tables, as well as with soft and regular contemporary and traditional styles, Deveault said.
In 2007, the company will make a major marketing-focused introduction, he added.
Offering choices
Saloom's most successful introduction of 2006, a growth year for the company, was its Hampshire Farm collection, said Becki Gould, director of marketing. The custom antique set features a planked table top, worn edges, 40 different finish options and base styles from chunky to country pedestal and simple tapered legs.
"There's a lot of different looks," she said. "We really hit at a time when the trend is toward looking backwards for inspiration. (Consumers) like the old, the nostalgic, something antique and from simpler times."
Saloom's other big 2006 push was point-of-purchase and display materials. The company introduced three colorful brochures this fall to support its product lines, and a new retail display stand featuring custom options on legs and finishes is expected to perform well in 2007, Gould said.
"Those things are all getting in place, and we're expecting them to give us a real solid platform into 2007," Gould said.
In 2007, she said, Saloom will swing back into contemporary styles after several markets focused on country styles. "For a long time we were known as a contemporary company, Gould said. "The country program is very successful. Now it's back to freshening the contemporary."
At Hooker, 2006 saw the company's most successful dining room market ever in October, said Mike Spece, vice president of merchandising and design.
Strictly a casual dining resource with lots of marble, glass and metal just three years ago, Hooker continued its move into better-end dining in 2006. The combination of sophisticated tabletop finishes and custom fabrics for chairs continues to help drive growth, Spece said.
He anticipates more dining pieces will be imported, similar to this year's successful Italian reproduction Wexford collection introduction, which combined a dining room from Honduras with fabric-to-frame capabilities of Hooker's chair partner in China.
Quick ship a plus
The big success story for Jofran continues to be 14-day shipping from its Asian warehouses, according to CEO Bob Roy.
For 2007, he expects to see more sales in counter-height tables, which now represent more than 50% of the company's sales.
"When a retailer says to us, 'This set is the No. 1 set in my department or floor,' it is always a counter height," Roy said.
He said Jofran experienced double-digit growth in 2006 and anticipates more of the same for 2007. Roy sees variations of conservative contemporary or mission styles as most important.
"Certainly in a flat retail year, casual dining was one of the outstanding categories in many stores across the country, and we expect it to continue to grow next year," he said. "It's one area that, for $1,000 or under, (consumers) can change the look of something they sit at frequently."
Jofran will continue to emphasize delivery, after adding a warehouse in Vietnam earlier this year.
"Our goal is growth by continued pleasing of the dealer," Roy said.
For Emerald Home Furnishings, primarily a supplier to dealers in the western United States, 2006 saw a move to grow distribution east of the Mississippi River, an effort still in its infancy, said National Sales Manager Tim Lott.
"We know we can ship larger retailers and still support the smaller ones with mixed containers," he said. "We're certainly ready to build the customer base. Now it's about getting the right representation." Lott said.
Emerald recently signed its first sales representatives in Philadelphia.
Another point of emphasis for the company this year was to make dealer sales training better, Lott said. That included not only training on how to greet customers and sell product, but on details such as explaining what a dovetailed drawer is.
"We wanted to be a little bit different rather than getting into the rat race of a lot of other importers: that cheaper is better," he said. "I think if the salesperson takes time to tell about features and benefits, (consumers) will understand they're getting a quality product.
"If you can educate the customer, you're well on the way to making the sale."
In 2007, Emerald plans to distinguish itself more in the casual dining category. Lott said the company wants to do in casual dining what it has done in upholstery, where it has told a quality story by spotlighting construction.
A better quality story in casual dining will be about offering better finishes and distinctive looks, he said.
-
Eagle into casual dining at Tupelo Furniture Market
Aug 14, 2009 -
Wood vendors offer range of styles, prices
Oct 17, 2009 -
Fresh product being shown at Vegas market
Jul 20, 2008 -
Case goods
Mar 30, 2008 -
Array of product on tap for Vegas market
Feb 2, 2009
Merinos Home Furnishings opening display room, Boyles addition
Ernest Warsaw, founder of Sheffield Corp., dies at 91
HOM Furniture adds flooring to six Twin Cities stores
‘Mega vessels' likely to boost capacity, stabilize freight rates
21 companies from Turkey, Taiwan and China to exhibit at Showtime
VIEW ALL GALLERIES
