Furniture|Today 05/20/2002 Table of Contents

Table of Contents

Furniture|Today -- 05/20/2002

Bedding Today

'Barely' effective ads eye-catching, but why?
Today's topic is those bare-breasted women in bedding ads. Oops. I meant those bare-breasted men in bedding ads. My mistake. I guess I was thinking like a guy. More on the perils of doing that later. Yes, this week we fearlessly consider a tricky question: Why do many retail bedding ads picture bare-chested guys? Careful readers of this column may recall that I mentioned the bare-chested guys s...

Business Today

Simmons 1Q sales rise 9.1%
ATLANTA— Bedding major Simmons said its first quarter sales rose 9.1% as the company opened a number of new dealers and focused on higher-priced products. The company also turned a profit, with net income of $5.7 million on sales of $177.2 million. In last year's first quarter, Simmons had a net loss of $978,000.
O'Sullivan operating profit up
LAMAR, Mo.— Quarterly sales and operating earnings both rose nicely for O'Sullivan Inds. Holdings Inc., holding company for ready-to-assemble specialist O'Sullivan Furniture. For the quarter ended March 31, the company reported third quarter net sales of $105.5 million, an increase of 8% from sales of $97.
Rowe signs deal for $45M credit facility
MCLEAN, Va.— Rowe said it has closed on an agreement for a $45 million revolving credit facility with Fleet Capital and CIT/Commercial Services, and will use the funds to restructure other debt. Rowe also said it closed and funded two long-term mortgages totaling $9.3 million on investment properties it owns in California and Maryland.
Aaron plans to sell 2M shares
ATLANTA— Aaron Rents has filed with the Securities and Exchange Commission to sell 1.5 million shares of its stock, and existing shareholders will sell another 500,000. Aaron said it would use the proceeds for purposes including the repayment of about $38.7 million in corporate debt. The shares sold will be the company's non-voting common stock.
Mattress Discounters loses $8.2M in 1Q
UPPER MARLBORO, Md.— Financially troubled Mattress Discounters continued to struggle during the first quarter as sales dropped 2.4% and the company's net loss widened to $8.2 million. In a filing with the Securities and Exchange Commission, the bedding specialty retailer said its poor first quarter had triggered the implementation of portions of a contingency plan that includes, among oth...
Rent-Way rebounds to net profit
ERIE, Pa.— Rent-to-own operator Rent-Way rebounded to a profit in its fiscal second quarter ended March 31, earning $1.6 million on revenues of $164 million. It's a turnaround from a loss of $4 million in the comparable quarter a year ago and is a milestone for the 1,068-store company, said William Morgenstern, chairman and chief executive officer.
Leon's 1Q revenue up 9.7%
TORONTO— Leon's Furniture first-quarter revenue rose 9.7% from the same quarter last year and net income advanced 26.5%. Leon's said it earned C$6.8 million on revenues of C$94.6 million. If the sales by its 22 franchise stores of C$25.3 million are included, Leon's total sales were C$119.8 million, up 8% from a year ago.
Bassett, DMI dump Andersen as auditors
BASSETT, Va.— Two furniture manufacturers, Bassett Furniture and DMI Furniture, said last week they have dropped Arthur Andersen as their auditors. Bassett, which hired Ernst & Young as auditors, said the change was "not the result of any disagreement" over accounting principles or practices, financial disclosures or auditing scope and procedures.

Insider's View

Speaking of imports, here's how we figure it
What did we talk about before imports and Las Vegas? It's hard to remember. While we don't have any new insights on Las Vegas, the final numbers are in for 2001 imports, thanks to the International Trade Commission. Since so many numbers are tossed about, we would like to offer ours, with an explanation.

News

IWF receives 113 entries for Challengers Awards
ATLANTA— A total of 113 entries from 93 companies have been received for the Challengers Distinguished Achievement Awards to be presented at the 2002 International Woodworking Machinery & Furniture Supply Fair here in August. The awards recognize advancements in technology or significant contributions to environmental improvement.
Forrester, NRF partner to enhance material available on Shop.org
WASHINGTON, D.C.— The online retail group of the National Retail Federation, Shop.org, and Forrester Research have partnered to give Shop.org members access to Forrester's retail research and expertise in technology. As part of the relationship, Forrester will create the 2002 Online Retail Forecast for Shop.
Sutton to launch magazine in October
WINSTON-SALEM, N.C.— Furniture designer Charles Sutton has set an October launch for his publication designed to assist consumers in making informed furniture purchasing decisions. The first, 130-page issue of Furniture Review: A Consumer Guide to Buying Furniture will be distributed free to 250,000 consumers.
Wellman increases prices
CHARLOTTE, N.C.— Wellman has increased prices on its polyester staple fibers five cents a pound, effective with April 29 shipments. The increase affects textile fiber, fiberfill, nonwovens and carpet fiber. The increase is due to higher raw material costs, the company said.
Obituaries
Obituaries
Pier 1 plans larger stores in major markets
FORT WORTH, Texas— Pier 1 Imports is rolling out larger-format stores in major markets as part of an aggressive expansion drive. The home furnishings specialty retailer has opened 18,000- to 20,000-square-foot stores in Dallas, St. Louis and South Hampton, N.Y. They are about twice the size of a typical Pier 1 unit.
Retailer targets 'loyal and younger' customers
NEW YORK— Pier 1 is using what it calls a highly developed target marketing and merchandising program designed to develop "a loyal and younger customer base." "We know our customers," said Cary Turner, senior vice president and chief financial officer of the Fort Worth, Texas-based home furnishings specialty retailer.
Canadian business magazine honors Kau
POINTE-CLAIRE, Quebec— Melanie Kau, president of retailer Mobilia Interiors, has been named one of Canada's Top 40 Under 40 by Report on Business Magazine. Organized by Caldwell Partners International, a Toronto-based executive search firm, the program recognizes the top 40 business and community leaders under the age of 40.
DuPont Stainmaster offered on area rugs
NEW YORK— Five rug suppliers have launched the first area rugs using DuPont's Stainmaster brand of fabric protection. Stainmaster, a popular product in carpet fabric protection, will be offered by Mohawk Home, Masland, Capel and Soho, and in an exclusive Laura Ashley collection from Beaulieu at Lowe's, according to Carol Haslach, Stainmaster marketing communications manager.
AFMA unit awards six scholarships
HIGH POINT— The Suppliers Division of the American Furniture Manufacturers Assn. has named the winners of this year's scholarship program. The program, which awards six one-year scholarships of $2,000 each, is open to children of regular, full-time employees of AFMA member companies. This year's winners are: Crystal Bryson, daughter of Pamela Bryson, Stanley Furniture; Paula Clark, daugh...
McIngvale honored by school group
HOUSTON— The Aldine Scholarship Fund honored Jim McIngvale of Gallery Furniture for his support of the Aldine Independent School District here. "Jim has been a long-time supporter of the public school system and he has especially been a strong supporter of and donor to Aldine ISD," said Darla Miller, president of the scholarship fund.
OneCoast Network implements national sales training program
NEW YORK— OneCoast Network, a group of manufacturers' representatives for gift and home furnishings retailers, is implementing a company-wide sales training program for its road sales force of 300 representatives. OneCoast created the yearlong program to improve the selling skills and tools of its sales team.
Tom Seely wins environmental award
BERKELEY SPRINGS, W.Va.— Case goods manufacturer Tom Seely Furniture has won an environmental stewardship award from the West Virginia Department of Environmental Protection. West Virginia Gov. Bob Wise and Environmental Secretary Michael O. Callaghan presented the annual awards to businesses, municipalities and individuals who had taken steps to improve the state's environment.
Leon's names Terry Leon president, Mark Leon vice chairman and CEO
TORONTO — Terry Leon has been named president and chief operating officer of Leon's Furniture, Canada's third-largest full line furniture retailer. He succeeds Mark J. Leon, who remains chief executive officer and becomes vice chairman of the publicly held and family-managed retailer, which had sales of C$545.
Sears Canada to carry Martha Stewart in 2003
TORONTO— Martha Stewart's Everyday brand of home products will be in Sears Canada in summer 2003, but don't look for her upcoming Signature furniture collection there. Sears Canada's furniture line doesn't include any product from Bernhardt, which plans to unveil the licensed Stewart furniture collection at the October High Point market.
Royal named manager of P.A.S. group
MONTREAL— Pierre Royal has been named general manager of Les Marchands P.A.S., Quebec's largest furniture buying group. He succeeds Roger Thivierge, who left the company in late April. Royal reports to Gilles Napert, president of the cooperatively owned group, whose members include many of Quebec's largest independent furniture retailers including Maison Ethier, Instameuble and Lions du ...
Vegas market leases 650,000 square feet, to begin site work
LAS VEGAS— Developers of the World Market Center say they have signed leases for 650,000 square feet of the first 1.25 million-square-foot furniture market building and are set to begin groundwork at the site late this spring. Jack Kashani and Shawn Samson, co-managing partners of the $1 billion proposed home furnishings market here, said they have commitments for nearly 1 million square ...
Rent-A-Center chairman explains furniture strategy at NY seminar
NEW YORK— With La-Z-Boy, Sealy and Ashley as its key furniture suppliers, rent-to-own giant Rent-A-Center says furniture represents 32% of its total revenues. "We put our emphasis in all categories on the better end of products and brands," Mark Speese, chairman and chief executive officer, told a session of analysts at a Lehman Bros.
Julian speaks to consumers at Kacey
DENVER— Fashion and home furnishings designer Alexander Julian presented a seminar entitled "The Well Dressed Home" at Kacey Fine Furniture here in April. Speaking to consumers at both Kacey's Littleton, Colo., store and its flagship store in downtown Denver, Julian discussed how fashion influences his home furnishings designs and how consumers can apply their fashion sense to their homes.
Rohm and Haas, Omnova launch joint venture
PHILADELPHIA— Rohm and Haas and Omnova Solutions are forming a commercial joint venture company to market, sell and service latex binders, synthetic pigments and specialty chemical additives for coating applications in the global paper and paperboard industry. The joint venture company, called RohmNova, is equally owned by Rohm and Haas and Omnova Solutions with headquarters in Mogadore, ...
Hudson's Bay Company unveils new logo
TORONTO— On the 332nd anniversary of its incorporation, the Hudson's Bay Company has unveiled a new visual identity program for the company and its retail divisions, which include The Bay, Zellers and Home Outfitters. The new logo symbolizes a 21st century Hudson's Bay Company. It's the latest element in the strategic plan HBC launched three years ago.
Italian show set for Sept.
VERONA, Italy— The 17th edition of Abitare il Tempo is scheduled for Sept. 19-23 here and will feature 580 manufacturers of products including interior and outdoor residential furniture, fabrics, home accents and other categories of interior décor. The annual show draws high-end retailers and designers to see products in both classical and contemporary styles, as well as internationa...
AP donates to Habitat
HIGH POINT— AP Inds. has donated hundreds of furniture products with a value of more than $100,000 to the Habitat Bargain Store in High Point. Items will be sold on a consignment basis with Habitat for Humanity of High Point, Archdale and Trinity, N.C., receiving most of the proceeds. Products include a wide range of showroom samples for baby, youth and adult bedrooms manufactured by AP ...
Flame debate heats up
LOS ANGELES— Proposed changes to flammability standards for upholstered furniture in California could raise the retail price of a sofa by as much as $250, industry groups say. The California Bureau of Home Furnishings and Thermal Insulation is seeking a revision of its longstanding Technical Bulletin 117, which focuses on the interaction of foams, fabrics, battings and barriers in a compo...
Sears to phase out RTA
HOFFMAN ESTATES, Ill.— Sears says it plans to phase out ready-to-assemble furniture in its full-line stores by 2004. While RTA has had strong sales and is profitable at Sears, according to industry reports, the company is "taking costs and complexities out of our business model, and we're moving to a more open selling environment," said Alan Lacy, chairman and chief executive officer.
Senate candidate Bowles meets execs at AFMA lunch
HIGH POINT— U.S. Senate candidate Erskine Bowles met with industry executives here at a luncheon organized by the American Furniture Manufacturers Assn. Bowles, a Democrat, is regarded as the front-runner for his party's nomination for the November election to replace Sen. Jesse Helms, R-N.C., who is retiring.
Purnell opens Ga. cross-dock facility
SUWANEE, Ga.— Purnell Furniture Services has opened a new cross-dock facility here. Purnell, based in Chantilly, Va., is a residential delivery carrier with locations in Atlanta, Baltimore, Dallas, High Point, Fort Lauderdale and Tampa, Fla. Its home delivery network consists of eight hubs serving 20 states in the mid- and south Atlantic.
Sealy Canada expands Quebec factory
ST. NARCISSE, Quebec— Sealy Canada says a planned addition to its manufacturing facility here will increase production by 30% to 35%. The addition, slated for completion in late June, will add 25,000 square feet to the plant's existing 70,000 square feet and will create at least 25 jobs, a 25% increase of its current workforce.

Opinion Today

Know what's between the covers of your book
It doesn't matter what the product is. Design is design. Quality is quality. Color is color. Delivery is delivery. Hoopla is hoopla. And price is price. Twelve years ago, when I started writing children's books, designing the guts, adding the illustrations and my original music, printing them and putting them together, my buddies in our Never-Never-Land of home furnishings asked a question: Mic...
Leather barons seek new seats in industry
An industry version of musical chairs has jostled the leather landscape, with some notables landing new jobs and others left scurrying to find a seat. The chairs in this case are of the upholstered Italian leather variety. At this moment, the odd man out is Jeff Baron, who has left his post as president of leather producer DeCoro U.
Explore potential of fashion mavens
It's amazing how many full-line furniture producers let a key part of their business go without fully exploiting the potential. Theirs is a case goods mentality that treats the upholstery segment somewhat as a stepchild. Wood is king, and the fabric stuff is something that comes along for the ride. That this is something more than an occasional situation came into focus during a conversation wi...

People Today

Serta promotes four, hires one
ITASCA, Ill.—Deana Gelino has been promoted to vice president of contract sales for Serta. Gelino, who has been with the bedding manufacturer for seven years, most recently served as sales manager for regional accounts. Gelino takes over the position from Fred Gibson, who is retiring from Serta in June after nine years with Serta and 25 years in the bedding industry.
People on the Move
People on the Move
• Executives Pier 1 Imports FORT WORTH, Texas — Specialty retailer Pier 1 Imports has promoted Robert Arlauskas, Jay Jacobs, Rod Lawrence, Phil Schneider, Cary Turner, David Walker and Mitch Weatherly to executive vice presidents. The Top 100 company also promoted Susan Barley, Rick Blackwelder, Robert Kling and Andy Laudato to senior vice presidents.

Special Report

Retail Ideas
Training, service with the juice
It ain't just "juice." Furniture-protection products and warranties have expanded to include the entire spectrum of furniture, and retailers and their salespeople are finding that peace of mind is an easy and profitable sale – when presented properly. The after-market warranty business has consolidated considerably since the chaos of the 1980s when three-dozen companies, occasionally figh...
Retail Ideas
'Happiness Guarantee'
Mike Norris wants every customer at Furniture Factory Warehouse to be happy. And if they buy a five-year warranty, Norris believes they will be, which is why the Happiness Guarantee is a central element of the company's marketing. With 13 small stores spread from San Antonio to El Paso, Furniture Factory Warehouse sells the Guardsman five-year warranty, but the company talks about it as its Hap...
Retail Ideas
Warranty benchmarks
Product protection programs have been around for years, but only in the last several years have the leading programs covered a comprehensive array of home furnishings and not just one category. The new programs have contributed to some new sales opportunities for furniture retailers and their salespeople.
Retail Ideas
Warranties times two
For Sears Canada, after-market warranties serve to soothe the concerns of those who are just shopping for furniture as well as those who are preparing to buy. According to Dan Weare, Sears Canada national business manager, furniture, both groups are receptive to the idea of extended product protection.
Retail Ideas
Warranty profits Carson Pirie Scott
The three-year-old warranty program has turned out to be the most profitable furniture category at the Carson Pirie Scott furniture galleries. "The first year that we switched, we doubled our sales and tripled our profitability," said Ed Erb, divisional vice president in charge of furniture galleries.
Retail Ideas
Vendor support
After-market warranty vendors are aggressive in supporting their retailers. The services they provide include:
Market Report
Attitudes improve in Scandinavia
COPENHAGEN, Denmark— Although they remain nervous about the direction of the U.S. economy, exhibitors at the Scandinavian Furniture Fair said they're convinced they still have significant growth opportunities in the American marketplace. Sales to U.S. retailers dropped sharply last year after the Sept.
Fabric Source Ranking
2001 a brutal year for textiles
HIGH POINT — Last year was brutal for the textile industry as a whole, and the pain extended to most of the sources listed here. The 20 fabric sources ranked for 2001 had estimated combined revenues of about $3.37 billion. Of the 20 on the list, business was down for 14, flat for four and up for only two.
Retail Ideas
Great expectations
Stephanie Sample crisscrosses the western United States teaching furniture retailers how they can maximize their after-market warranty programs. A trainer for Guardsman, Sample says she specializes in culture shifts: "A lot of retailers don't realize what they could be doing. We go in and show them what could be done, and what they should expect our program to do for them.
Retail Ideas
Sell to the seller
Retail Ideas
Selling warranties key part of job
Selling warranties and protection plans is a passion for one of the Wickes Furniture sales associates in Dallas. This woman tells her customers that she hasn't done her job if they don't buy an after-market warranty. With this kind of unconditional endorsement, she achieves close to 100% in fabric-protection.
Retail Ideas
Close the sale
Wells Home Furnishings may give it away, but after-market warranties are still an important selling tool for this single store in Charleston, W.Va. Warranties are a value-added closing tool for the Wells store. "When we opened the store, we decided we weren't going to take anything off the floor, and we weren't going to have sales," said John Wells Jr.

Store Openings

Carolina Kids & Teens adds 6,000-sq.-ft. La-Z-Boy Youth
RALEIGH, N.C.— Carolina Kids & Teens has set aside 6,000 square feet for a Lea Inds. La-Z-Boy Youth collection in its 12,000-square-foot store here.
Leonards opens Mass. unit
MASHPEE, Mass.— Leonards New England, a dealer of antiques and fine reproduction furniture, has opened its newest store here in Mashpee Commons. Among the furniture lines represented in the 6,000-square-foot showroom are: Southwood Reproductions, Hickory Chair, Yorkshire House and Warren Chair works.
Herring installs Broyhill gallery
STRONG, Ark.— Herring Furniture celebrated the grand opening of its 7,500-square-foot Broyhill Showcase Gallery with a ribbon cutting and reception earlier this month. "We have put in several galleries with major companies over the past years," said store owner Phil Herring, "and we have never had such an overwhelmingly positive experience.
Roche-Bobois remodels store
WASHINGTON, D.C.— Roche-Bobois has expanded and remodeled its store located here at 5301 Wisconsin Ave. The store was launched with a grand reopening party attended by more than 500 people. The store will show both the Contemporary and Provinciales collections in a 14,000-square-foot space, making it the largest Roche-Bobois store in North America.

Up Front

Thomasville opens first company-owned store
SAN JOSE, Calif.— Thomasville Furniture Inds. has waded into retail waters, opening the first of a handful of planned company-owned gallery stores here. The 15,000-square-foot store in El Paseo De Saratoga shopping center opened last month and is the first of four or five company-owned Thomasville Home Furnishings Stores that will be in the greater San Francisco Bay and San Jose area, sai...
Florida Furniture stops production temporarily
PALATKA, Fla.— Mid-priced bedroom furniture manufacturer Florida Furniture Inds. has temporarily ceased production, but could resume manufacturing soon. Import competition and a slow economy in 2001 put the 72-year-old manufacturer in a financial bind that forced the production shutdown, but the company has a potential equity investor and turnaround specialist that could provide new opera...
Nationwide creditor asks for Ch. 7
NORCROSS, Ga.— Former lenders to Nationwide Warehouse & Storage have asked the U.S. Bankruptcy Court to liquidate the retailer, charging that Nationwide's majority owner plans to buy the remaining assets at auction and leave its creditors with nothing. BNP Paribas, a lender and an agent for Nationwide's other pre-petition lenders, filed an emergency motion this month asking for conver...
Wal-Mart sleep shops close
DURHAM, N.C.— American Mattress Centers has filed for bankruptcy protection and closed, ending a short-lived bid to build a bedding presence within Wal-Mart stores. The Durham-based operator filed for Chapter 7 bankruptcy protection last week in U.S. Bankruptcy Court in Durham, N.C., listing estimated assets of $500,000 to $1 million and debts of $1 million to $10 million.
Hooker to focus on BR growth
MARTINSVILLE, Va.— Looking to strengthen its bedroom offerings, Hooker Furniture has promoted Phil Garrett to a new position focusing on product development. The company said it wants to increase its sales of domestic and imported adult bedroom. "While Hooker is well-known for home office, home entertainment and imported accent furniture, we don't enjoy that same growth in bedroom," sai...
After 35 years, Suburbia bows out
OSSEO, Minn.— Suburbia Furniture & Carpets has called it quits after 35 years, with its founders citing competition from the big boxes and big players in the market, the heat from imports and an ill-advised loyalty to in-store gallery programs. Stan and Pat Kondziolka closed their 30,000-square-foot store in northern Minneapolis at the end of April, hiring Innovative Advertising of C...
Storis providing systems for store chain in China
PARSIPPANY, N.J.— Markor Home Furnishings has selected Storis Management Systems as its retail technology provider for the furniture store chain Markor plans to open in China. The chain will sell products from Ethan Allen and Chinese manufacturer Markor Furniture International. Initial plans call for three stores opening in late August and more in the future.
Drexel moving to High Point
HIGH POINT— High-end full-line manufacturer Drexel Heritage will move its corporate headquarters to offices in its 99,000-square-foot showroom here, the company said last week. Jeff Young, president and chief executive officer, and about 20 senior managers will make the move. The Furniture Brands International division will keep around 150 administrative personnel in Drexel, N.
Lexington promotes Hartzog
LEXINGTON, N.C.— Lexington Home Brands has promoted Doug Hartzog to national sales manager, a newly created position. A 30-year veteran of the company, Hartzog previously was a regional sales manager. Hartzog joined Henry Link Furniture, which was absorbed by Lexington, in 1971. "I am excited to have Doug lead our national sales team," said Bob Stec, Lexington chairman and chief execut...
Rosebrock at Brown Jordan
POMPANO BEACH, Fla.— Lou Rosebrock has joined casual and contract furniture producer Brown Jordan International as executive vice president of marketing and product management, a newly created position. Rosebrock had been with wicker and rattan producer Lloyd/Flanders, where he was senior vice president of sales and marketing since 1995.
Keveryn leaves Bernhardt
LENOIR, N.C.— Mike Keveryn has resigned as vice president of residential case goods sales at Bernhardt Furniture to pursue other opportunities, the company said. A search has begun for a replacement.

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