Las Vegas Market buyers look to step up
But also will shop for promotional goods this week
Clint Engel -- Furniture Today, August 2, 2010
LAS VEGAS — Despite continuing pricing pressures and a weak economy that has yet to fully rebound, furniture dealers shopping here this week say they'll have their eye out for step-up goods.
They're still looking for best values, but the emphasis for many seems to be on bigger tickets and driving up sales per square foot at a time when consumers are continuing to tighten their purse strings and shop discriminately.
Retailers will shop across all categories for these types of goods. They'll also be looking for ways to refresh their offerings at the more promotional price points that bring masses through the door.
The problems related to Asia - from increased container prices to shipping delays - have some buyers rethinking their merchandising strategies, looking for more domestic sources or at least suppliers with strong domestic warehouse programs.
As usual for Las Vegas, the bedding category will be shopped hard. Full-line suppliers such as Ashley and others that use Las Vegas as a key venue for major introductions also will get extra attention.
For Indianapolis-based Kittle's, business this year has been very good - with sales up more than 30% for the year - but that doesn't mean it hasn't been tough going. In a difficult economic environment, the retailer aggressively repositioned itself last year, remerchandising, updating store displays and increasing advertising under a new "For Everyone, For Less," banner.
That's helped Kittle's gain market share and boost sales. Still, there have been weeks when the retailer's promotional offer simply misses with consumers, which leads to a dramatic drop-off in business.
"It's a very, very promotional climate out there," said Eric Easter, president and CEO of the 14-store chain. "I don't care what the price point is, if you don't have a compelling reason for the customer to come in, they don't come in."
In Las Vegas, Kittle's buyers are "looking for a variety of styles and great value at all price points," Easter said. "One of our challenges is to find better end product with (sales) velocity.
Business for Jackson, Miss.-based Miskelly Furniture has been "steady" this year, said Oscar Miskelly, a partner in the family-run furniture and bedding stores with brothers Chip and Tommy Miskelly.
"It doesn't seem like we've got quite the headwind we had earlier in the year, but it seems like the consumer is in a little bit better mood," he said. "There's a lot of pent-up demand and we've been pleased with our summer so far."
Miskelly said the company likes to use Las Vegas to review what it has recently seen in High Point. The retailer also aggressively shops companies that make major introductions in Las Vegas, such as Ashley, one of its biggest suppliers. And with one bedding store open and another on the way this fall, Miskelly will spend time visiting key suppliers Sealy, Simmons, Restonic and Tempur-Pedic.
Like many retailers, Miskelly has experienced delays and price increases on goods and freight coming from Asia. So in addition to sharpening its lineup, "We'll be spending time talking to manufacturers face-to-face about the shipping issues and try to get some relief on that," Oscar Miskelly said.
Houston-based Gallery Furniture's buyers will be here "looking for a lot of furniture made in America," said owner Jim McIngvale. He said he has had great success with names like Jonathan Louis upholstery (made in California), Tempur-Pedic bedding and Mayo, American Leather and United Leather - all made in Texas. Not all of them show in Las Vegas, but McIngvale said he'll be here walking the aisles looking for others.
Why the push for American made goods? Three reasons, he said. "No. 1, it creates jobs in this country. No. 2, it's easier to turn the inventory. You don't have to wait (months). And No. 3, it's a great story," and one relevant to Gallery's customers.
"It's not that we don't carry Chinese furniture," he said. "We just want to give them a choice."
Gallery will send about 20 people to the market - in part for the educational seminars - including several warehouse employees and one from accounting.
Fort Lauderdale, Fla.-based City Furniture is bringing about 30 people here - buyers as well as other employees and their guests - using the trip to recognize employees celebrating their 20th anniversaries with the retailer.
"We're probably going to give a nice boost to the restaurant business out there," said Keith Koenig, president.
City's full-line stores are well merchandised right now, he said, but added, "I'm sure our team will be on the lookout for contemporary and modern looks in all categories." He said consumers have been requesting lighter finishes in contemporary lifestyle looks.
Las Vegas is important for City's Ashley Furniture HomeStores, and Koenig praised the supplier for making big improvements to its product lineup in the past year and a half.
At San Diego-based Jerome's, same-store sales are up about 6% for the year. But business was more vibrant in the first quarter than it is now, said President and CEO Lee Goodman. By the second quarter he said, "I believe a lot of optimism was sucked out of the marketplace.
"I think people thought things would be better by now. The economy would be better. The unemployment issue would be better. Housing would be better. Months went by and people didn't see the improvements they had hoped for," Goodman said. "I think we're seeing confidence slip and consumers tighten up again."
He expects the tough times will continue through the third quarter but is looking for a bit of a boost by the holiday season.
A longer version of this story appears in the Aug. 2 print edition of Furniture/Today.
More Las Vegas Market August 2010 Coverage
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Improved sales bode well at Vegas
Feb 6, 2012 -
Buyers seek fresh looks, values
Nov 4, 2011 -
Buyers Still Need Product
Aug 16, 2011 -
Buyers looking for goods at Las Vegas Market
Jan 24, 2011
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