Improved sales bode well at Vegas

Buyers look for product to keep gains going

Clint Engel -- Furniture Today, January 30, 2012

LAS VEGAS - With business solidly in positive territory for many furniture stores, buyers are heading to market here looking for the kind of goods that will keep sales flowing.
     They will shop the Las Vegas Market for its strengths, and since bedding is such a dominant presence here, retailers indicated the category will get a large share of their attention as they seek out everything new, from gel beds to the latest in adjustable foundations.
     While consumers appear to be loosening their purse strings a bit, retailers say increased sales have come only through aggressive promoting, so the emphasis here remains on unbeatable value, though not necessarily the lowest price. Some say they are planning to take in Lifestyle Enterprise's Forbidden City Furniture Show at the Riviera Hotel immediately prior to the World Market Center opening, where they expect to find hot promotional deals.
Also bound to get a lot of attention here is Ashley, which is hosting dealer meetings before the official market opening and is promising new developments in its Ashley Sleep program, among other things.
     Retailers also will be checking out the WMC's new Made in the U.S.A. pavilion, featuring nearly 40 domestic sources on the second floor of Building B, a followup to the successful Made in America pavilion at the High Point Market in October.
     "Vegas, for me, is hopefully going to be a market that has something slightly more exciting and unique (than High Point)," said Jeff Selik, president of the contemporary Hillside Furniture in Bloomfield Hills, Mich.
     Selik is likely to be one of the first buyers through the Made in the U.S.A. area. Living and working in greater Detroit, Selik said he knows how important U.S. production is to his customers and his family. While it's important for Hillside to offer a balance of domestic and imported goods, the retailer goes out of its way to promote domestic product as such through signage.
     Las Vegas, he added, can give Hillside a jump on competitors who may not shop here. Ekornes, for instance, reveals its introductions in Las Vegas, he said, so if Hillside picks them up here, it could beat the competition to the floor by at least a few months.
     Selik said that among other things, he's hoping to find a good source for contemporary curios that Hillside can retail for about $1,500. He hasn't found one yet, but "I'm always hopeful in Vegas I might run into that guy I didn't know existed."
     He's also excited to see that Palliser, an important vendor for Hillside, is opening a showroom here, so Selik and his father, Bruce Selik, will be shopping that space carefully.
     "Every supplier of mine that opens a showroom in Vegas or moves to a larger showroom just solidifies that Las Vegas is an important market for our industry," he said.
     Hillside Furniture ended last year and started off the new year with double-digit sales gains, and Selik said he's extremely optimistic about the outlook for this year. Operating in Detroit, Selik is attuned to the auto industry and noted that car sales are picking up - always a good sign that general retail will follow suit.
Charlie Malouf, Broad River Furniture     Business has been good for 15-store Charlotte, N.C.-based Broad River Furniture too. The company, which operates Ashley Furniture HomeStores and a multi-line Savvy Spaces store format, saw same-store sales increase more than 10% this past year, with the biggest gains coming in the second half of the year, said Charlie Malouf, a partner in the business with Jonathan Ishee.
     "Traffic was mostly flat, but we did more with the traffic we got," Malouf said, adding that the company also enhanced its internal operations by aggressively recruiting new sales and management talent, among other things. Last year, the retailer opened three stores - Savvy Spaces and an Ashley Furniture HomeStore outlet in the Charlotte market, and a HomeStore in Fayetteville, N.C.
     "We're exiting survival mode and entering growth mode," Malouf said.
     In Las Vegas, Broad River will be meeting with Ashley before market and Malouf said he's excited to see what's new with the supplier - particularly with Ashley Sleep, a line of value-priced specialty bedding that has "been a big win for us."
     For Savvy Spaces, Malouf said he's looking forward to seeing what's new from sources such as Rowe, Fairmont Designs and New Classics. Savvy Spaces also in interested in seeing what a few potential new suppliers have to offer, including Four Hands, Creative Co-op and Classic Home.
     "We really would like to find a strong leather vendor for both stationary and motion," Malouf said, noting that he's looking for "good style and good distribution" on sofas he could retail for less than $1,000. Savvy Spaces prefers quick ship sources, preferably from distribution centers in North Carolina or Virginia.
     Broad River also will be on the lookout for fresh contemporary styles across all categories and new trends in youth bedroom.
     Outside of Ashley Sleep in the bedding category, "I think gel will be the hot story this market," he said, "so we're also interested in seeing what Sealy has to offer for a gel story as well as what's new and exciting at Tempur-Pedic."
     Gary Woodham, vice president of merchandise for Greensboro, N.C.-based Colfax Furniture, was coming to Las Vegas early to attend both the Furniture Marketing Group's annual Symposium at the Bellagio and Lifestyle Enterprise's show at the Riviera before heading to the World Market Center.
     "I'm more or less tire kicking," he said, adding that the consumer remains value-driven. That means Woodham will be driven by the same force here, looking for the best values - but not necessarily the lowest prices - that Colfax can advertise to help drive traffic to the store.
     "If there are some deals floating around, I'm sure we'll pick them up," he said. "Lifestyle will have some barnburners; they always do."
     Colfax is always in the market for fresh upholstery styles that can appeal to consumers in their 30s, who may be living in a starter homes, condos or apartments. Woodham said he'll look for sofas he can retail from $499 to $699.
     With Las Vegas becoming the most important bedding market, he said he'll also shop Sealy and the latest from Serta, including the combination coil and gel memory foam mattresses that are part of its iSeries line.
     If Woodham buys any case goods, it will be at the upper end of Colfax's prices spectrum - such as five-piece bedrooms that can retail between $3,000 and $3,500. The retailer's strength has been in more promotional price points, he said, and it hasn't shopped hard recently for these better-end goods.
     "But as we're seeing an uptick in business, what we're selling is the better goods for us," he said.
     Sioux Falls, S.D.-based Furniture Outlets USA, which operates both multi-line stores and Ashley Furniture HomeStores, experienced a 12% sales gain last year and is off to a strong start so far this year, but it doesn't have a lot of needs heading into Las Vegas, said Gordy Wallenstein, president.
     Nevertheless, Wallenstein and other buyers for the Top 100 chain will be here, making sure they're up to speed on trends and market introductions. Among other things, the retailer will shop for fresh looks in casual dining from $599 to $999 for a table and four chairs, and upholstery at these same price points for sofas.
     Wallenstein said Furniture Outlets has been blessed with a mild winter in its markets so far this season, which not only puts the consumer in a better frame of mind, but cuts operating costs.
     "No snow removal," he said. "By this time last year, we would have spent well over $100,000 just in snow removal."
Keith Koenig, City Furniture     Fort Lauderdale, Fla.-based City Furniture, another multi-line and HomeStores dealer, is here primarily to see what's new with Ashley, both in new collections and fill-in goods, said President Keith Koenig.
     "Overall, we're seeing modern and contemporary becoming more and more important so our merchandise team will be open to buy in that category," he added.
     Austin, Texas-based Louis Shanks of Texas also is coming off a strong year in its Texas markets, said Mike Forwood, president.
     While Las Vegas may not contain as much high-end product as he'd like to see, Forwood will be busy checking out the latest from Lexington Home Brands as well as seeking out a few new lines it hasn't worked with before. Forwood said Las Vegas has been a good market for discovering lesser known niche sources, noting for example the case goods line Peninsula Home Collection that it picked up a while back.
     This time, he will be checking out the eco-friendly offering at Dovetail Furniture & Designs, among other suppliers he's recently heard about from his industry contacts.
     "You never know what you're going to find," he said.