Buyers hot on trail of promotional products
By Angela Heck -- Furniture Today, August 18, 2008
TUPELO, Miss. — Like Dorothy, folks around here are keeping an eye on the weather. A tornado ripped through parts of the Tupelo Furniture Market’s Mississippi Complex in May, displacing most of its exhibitors, and many wonder what the future will hold for the event.
Although some believe that the ominous clouds on the economic horizon are beginning to clear, the outlook of most buyers remains cautious about the market, which opens this Thursday, Aug. 21.
Gary Woodham, general manager of Greensboro, N.C.-based Colfax Furniture’s three stores, said he’ll be in Tupelo looking for promotional to medium-priced bedroom, upholstery … and deals. “So we’ll have something to promote this fall, to drag people through the doors.”
Woodham said he’s specifically looking for vendors that will sell mixed containers of bedroom furniture and that have a U.S. warehouse — in order to avoid some recent problems with keeping his bedroom inventory consistent. He also will take advantage of Tupelo’s laid-back atmosphere to meet with his regular vendors about upcoming product and to improve company relationships.
Colfax has been concentrating on in-store promotions to keep its business strong and help salespeople sell to potential customers already walking the floor.
“It’s a little challenging right now. There’s still so much uncertainty out there,” Woodham said. “I just wish I could bring back 10 truckloads of customers.”
Mike Estridge, vice president of upholstery for Mulberry, Fla.-based W.S. Badcock’s 300-plus stores, said his company will take a similar approach in Tupelo. Although he can’t attend because of a scheduling conflict, he said two other Badcock buyers will use the show to check out the newest colors and styles.
“Business has been tough but we’ve been fortunate enough to get our share,” said Estridge. The Southeastern retailer has kept business going by “advertising and promoting — especially our promotional items — and just trying to draw the customer in the door.”
Seffner, Fla.-based Rooms To Go’s Morty Seaman has a goal in mind for his Tupelo buying: something different in living room furniture. He will be looking for sofas retailing from $600 to $1,000 in stripes, plaids or anything “interesting and imaginative.” Seaman said upholstery has become boring since many of the innovative manufacturers have gone out of business.
“Everyone has become very me-too-ish,” he said. “As soon as someone comes up with something original, all the guys in China knock it off and near-exact replicas flood the market.”
He said business for the 130-store chain “is pretty much the same as it’s been — soft.” He added that he’d like to offer lower prices, but said that manufacturing costs are going up by the minute and his hands are tied.
“I think that this downturn will continue for quite awhile — years rather than months,” Seaman said.
Michelle Lynn, director of merchandising and advertising for Weekends Only’s five locations in and around St. Louis, also mentioned rising costs. She said she has seen more price increases in the past six months than she has seen in the rest of her career. “Retailers are going to have to make decisions about passing off some of those price increases to the consumer,” Lynn said.
At Tupelo, she will look for “special opportunities” in upholstery, dining and leather — mostly at promotional price points and in transitional or contemporary styles. Lynn will look for new vendors as well as deals from her existing suppliers.
Tupelo is an important buying market for the retailer, which works on an off price concept and is open, you guessed it, just on weekends. Weekends Only had a difficult first quarter but set a sales record in the second quarter, putting sales ahead for the year, Lynn said.
“Our business has been up the last five years. It’s harder than it was and we have had to promote aggressively. Mainly we have stepped up our TV ad campaign,” she said
At Warren, Mich.-based Art Van, David Van Elslander, clearance center buyer, said the downturn might provide some shopping opportunities.
“We’re excited to get to Tupelo and see what they have,” said Van Elslander, who will be looking for promotional upholstery with casual lines. “I’m expecting to see vendors be very aggressive with pricing so retailers can continue to give good value back to the consumer.”
While Michigan has been hit hard by the economic downturn, he said, “It seems like we’re beginning to see a bit of a recovery. We’re OK. Business is about flat.”
To bolster business, Art Van focused on fast-growing categories like motion upholstery and TV consoles and has entered new categories like dorm and outdoor furniture.
Tara Knightly, upholstery buyer for Lombard, Ill.-based The RoomPlace, said that Tupelo will remain an important market for the retailer as long as “vendors continue to introduce new product through styles and/or fabrics that we haven’t already seen at previous markets.”
She will be looking for new introductions, special promotions and closeouts in all categories.
With 22 locations in Illinois and Indiana, The RoomPlace has responded to “challenging” business conditions by continually evaluating and changing its product assortment to line up with customer needs and desires, Knightly said.
