Upholstery sources gear up for turnaround at Las Vegas Market
Business has improved in recent weeks
Gary Evans -- Furniture Today, January 24, 2011
LAS VEGAS - Buoyed by a late year pickup in orders, stationary upholstery makers are going into the market here with high hopes that 2011 is the year that will turn the industry around.
While sales are up and down, several manufacturers said that business has been better since the October High Point market, and the last eight or so weeks of the year finished out strong.
The uncertainty factor for upholstery vendors is how gigantic hikes in the cost of cotton and other raw materials will affect buying. Most manufacturers are expected to pass the increases along because they are too big to absorb completely.
Roy Calcagne, president and CEO of mid-priced upholstery producer Craftmaster, said the business climate is looking better.
"It's definitely an improvement from where it was. More customers are coming into stores. It's not great, to say the least. But these days, everybody's looking for any sign as a positive, and that's what's happening," he said.
Although employment is still high, Calcagne said consumers are not filled "with the desperation people felt last year. People aren't losing jobs. It's just a calmer atmosphere out there. Part of it is because of the election. People feel that we're making steady improvement, and maybe the change in the (U.S.) House has put more of a focus on jobs."
Resolution of the income tax issue by Congress and the steady climb of the stock market also are contributing to consumer confidence, he said.
"I always go into market with high hopes," said Don McCoy, senior vice president of Mayo, a mid-priced manufacturer based in Texas. "The last 30 days, our business has been robust. We feel very fortunate. There has been a little uptick in retail. We just hope that more dealers think they need to come to market and buy some product."
When they do, Mayo and Craftmaster will be ready. McCoy said his company will pack its showroom with as much new product as possible, including more leather/fabric combos.
"Our leather/fabric combo business has been very strong for us and continues to be a big part of what we do," he said. The company also will add product with a contemporary lifestyle look, and some that will be smaller scaled for the space-conscious consumer, he added.
Craftmaster will introduce two domestic traditional groups and three leather groups from China, with fabric sofas in the $699 and $799 price points and leather at $1,399.
"It is the largest new introduction we've done at Vegas in many years," said Calcagne.
Cara Cox, vice president of merchandising for England, said the company is "expecting to have a very good market in Vegas.... The past two shows in Vegas have been very productive for us and we have grown our gallery program through it and have had very good attendance."
England's big push at the show here will be to focus on growing its retail gallery program, Custom Comfort Centers, in the West and Midwest, according to Cox.
"We will also be touting our quality, customer service and on-time delivery - not only to our East Coast dealers, but to our West Coast dealers as well. These are the values we want to make sure we get across to any dealers that come into our showroom," she said.
Contemporary specialist Outer Limits is emphasizing big, deep, softer seating with feathers and other features. President Tricia Bellocchio describes it as "furniture you can climb into and snuggle down for the evening and watch a movie."
She said the company feels "like things are starting to move again," and expects to have a "decent" market.
"We are hearing from more retailers in the form of requests for quotes and product info, which says to us that the end-users are starting to shop again," Bellocchio said. "I do, however, believe it will be a long while before things are back to normal."
Chris Podschun, president and CEO of LaCrosse Furniture, said the company is making its largest new product market ever in Las Vegas. Introductions include five in-stock leather upholstery groups, two in-stock leather sofa-sleepers, four in-stock high leg recliners, and two leather motion groups.
In addition, new offerings will include five new sofa-sleeper, sofa and loveseat styles with 71 colorful designer fabrics, and five cut-and-sew groups.
"The big push is ‘Made in the USA' and upscale looks when it comes to our upholstery and sleepers," Podschun said. "Many of our customers are asking for better looks that can make them new money. Some dealers have said they need to reduce their low-end goods because they cannot make money."
October was slow for LaCrosse, according to Podschun, but business picked up in November and is expected to be good in the coming weeks.
"Who knows about January before we get to Las Vegas? I hope it is good. Many customers make the decision to come (to market) at the last minute if their business has been good," he said.
The results of Tacoma, Wash.-based Emerald Home's Open House event in December "were good to mixed," according to company President David Beckmann.
"Attendance was slightly less than average," he said. "We saw the dealers we expected to see, but a growing number of our regular customers are falling behind financially, and as you would expect, are in a survival mode and not shopping for new ideas or bargains."
Beckmann added, "With that being said, attendance was off by a single digit. Order writing was better, suggesting the stronger retailers are speculating on new products, and motivated to buy specials (closeouts)."
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