Vegas buying targeted
Retailers hunt for special buys, values
By Clint Engel -- Furniture Today, July 27, 2008
LAS VEGAS — Facing an uncertain economy, buyers headed to this week's Las Vegas Market say they'll be shopping hard with an emphasis on special buys, great values and fill-ins and replacements for goods that aren't working or have run their course.
They're also looking for more quick-ship special order programs and U.S. warehousing from overseas sources. And several retailers say they want to find more color and cleaner lines.
They're getting used to the price increases resulting from rising raw materials costs, but they're also making a habit of hunting for the best price in this environment.
For Jackson, Miss.-based Miskelly Furniture, July is turning into a decent month, although sales remain down for the year after a big downturn in the spring.
“I think we're going to be in the piece business for a while,” said Tommy Miskelly, partner in the business with his brothers Chip and Oscar.
Fewer consumers are buying rooms, but “maybe they're buying a sofa, a bed … or a piece for that flat screen TV,” he said.
In Las Vegas, he'll look to see what's new for today's big-screen televisions.
“We're looking for some color,” he added. “Color excites people — not just sofas, but something in the bedroom other than brown or cherry, something that both sells … and would stand out on the floor. We're trying to put in some lipstick, some excitement, something that would connect with the female consumer.”
PFD has 'open-to-look'
Jeff Weinstein, executive director of Pacific Furniture Dealers buying group and owner of Mattress Factory Outlet in Vancouver, Wash., is looking for “a diamond in the rough,” but indicated the buying could be limited. PFD has been talking to key vendors about special “one-time buys” with a focus on bedding, motion and upholstery. By now, all those deals are likely to be tied down.
“At market, we'll be looking for opportunities in other categories, perhaps bedroom, dining and leather,” Weinstein, but emphasized that it's primarily a shopping trip. “We have an open-to-look.”
“We're going to be looking for exceptional value, and I think the buying groups become even more significant to all of us with the import situation,” said Judy Blackledge, co-owner of Blackledge Furniture in Corvallis, Ore., and a PFD member. “Being able to flow goods, split containers and things like that have made a huge difference for all of us.”
Blackledge said her business is off by single digits this year, and she expects the business climate will get worse before it gets better. She said price increases from manufacturers will affect stores' open-to-buy this week, because retailers have had to move quickly to lock in prices before they go up.
That's why Blackledge already placed a partial order with Klaussner. “If I do it at market, it's too late,” she said. “I wouldn't get in before the price increase.”
Nevertheless, she has a few things on her list, including special order upholstery programs. Blackledge said she has been pleased with Rowe's program, which has been delivering in less than a month of the order. She'll be looking for something like this from other vendors as well.
“I'm sure there will be lots of specials, but I'm just afraid of anything new or untested,” she said. “I want proven bestsellers.”
Despite operating in one of the toughest economic environments in the country, Miami Gardens, Fla.-based El Dorado Furniture isn't changing its long-term strategy,” said Carlos Capo, vice president of merchandising.
“You have to focus on what you want to accomplish in the end,” he said. Florida has been hard-hit — and the environment is even tougher because of the great competition, he said — but El Dorado won't turn to lower-priced goods and sacrifice quality “because your reputation in the end won't be there.”
Instead, El Dorado is heading to market like it has for years, armed with the results of its own consumer surveys and knowledge of what's working on the floors and what isn't.
“The consumer is looking for something lighter and cleaner,” he said. “That doesn't mean traditional isn't selling, but they're looking for cleaner traditional, contemporary and transitional.”
Perceived value is essential, “but the customer is not looking for low-priced furniture,” he said. “They want something to last.”
Simon Kaplan, owner and CEO of Value City Furniture in Dayton, N.J., echoed that sentiment, saying “low price is not the answer.”
“People want events to react to,” he said, noting that the holidays pull well for his company, which operates full-line Value City and Ashley Furniture HomeStores.
Kaplan said he going to Las Vegas mainly to see what's new at Ashley and to get ideas there and “strategize for the future.” It's not going to be a big buying market, he said.
At the other end of the spectrum is buying group AVB/BrandSource, which considers the July market here its most important of the year, said Michael Allen, executive vice president of home furnishings. The group will set up its Furniture Advantage program here, with a select group of dealers picking core product for next year's circulars.
“Casual dining and leather are probably two of the categories we're focusing a lot of attention on … to replace an existing vendor,” he said. In those categories, BrandSource dealers will stop in at Cheers, Broyhill, Coaster and Hillsdale, among other showrooms.
Small cities do better
Allen said business for most Brand Source members has bucked the industry trend, partly because many of the stores are located in second- and third-tier markets, some with agriculture-heavy economies that are doing well.
“And the second thing we're starting to see is more people are shopping locally,” saving some gas money in the process, he said. “They don't feel that they have to drive that 100 miles to the city to get the selection or price.”
Sioux Falls, S.D.-based Furniture Outlets USA has also benefited from its stores' location in Midwest, agriculture-oriented markets. And as with other retailers, color is on its shopping list.
“Everything is brown, brown, brown,” said Gordy Wallenstein, president. “The upholstery out there … is so vanilla. We'll be looking for accent pillows and rugs and accessory pieces that have color, so you can switch up a room without a big investment.”
Wallenstein also will check out some innovative overseas sources he said were just “coming into fruition” at the last Las Vegas Market. He's also shopping import sources that warehouse in the U.S. and offer special bridge pricing on domestically warehoused goods.
But he added, “As far as having huge needs, I can't say we have big plans to go out and buy up a bunch of stuff.” Furniture Outlets is still waiting for goods from the April High Point Market to arrive, he added.
Taylor Ganz, vice president of Los Angeles-based McMahan's Furniture, said, “We are looking for promotions to drive traffic.” He too wants to add some color to McMahan's upholstery, and also is “looking to expand our offering in contemporary bedroom, which has been very strong for us.”
The furniture lineup for Las Vegas-based Walker Furniture is “pretty well set,” said President Larry Alterwitz, but he added that the company is always looking for special buys to advertise. It also wants to fill a few remaining spots for the new promotional Rooms by Walker room package specialty store it is opening in October on its main campus — walking distance (in the winter at least) from the World Market Center.
Walker also is adding a home office and commercial desk area to its main showroom, so it will be shopping that category aggressively too.
Las Vegas also has been hard-hit economically, but Alterwitz said the tough times have been a blessing in many ways, forcing Walker to cut fat and become more efficient.
“It is probably one of the healthiest things we've ever gone through,” he said. He added that business is down this year, but “we feel we're gaining market share.”
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Vegas buying targeted
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