Furniture|Today 05/27/2002 Table of Contents

Table of Contents

Furniture|Today -- 05/27/2002

Bedding Today

One day in Denver: A review of the ads
This week we visit the front lines in the Bedding Battlefield. We bring you a first-hand look, with commentary, at how some furniture stores and bedding specialists are promoting the category in Denver. Our overall analysis: Consumers in Denver have several good choices when it comes to shopping for bedding.

Business Today

Natuzzi earnings climb 16.6% in 1Q on 4.3% sales increase
SANTERAMO IN COLLE, Italy — First-quarter net income for Italian upholstery manufacturer Natuzzi increased 16.6% from a year earlier, to $22.2 million. Net sales for the same period increased 4.3% to $187.3 million. Sales in the Americas declined 3% in dollars to $85.5 million, but rose 8% on a unit basis to 386,294 seats.
Foamex sales rise 4%; looks for stronger second quarter
LINWOOD, Pa. — Despite a 7.4% decline in foam products sales, Foamex International posted an overall 4% sales increase in the first quarter. Total sales were $314.1 million, with foam products accounting for $117.5 million, off from $126.9 million in same period a year earlier. Foamex said the decrease primarily reflected a significant loss of bedding business from one customer because o...
Bombay to adjust ad strategy after 10% same-store decline
FORT WORTH, Texas — The Bombay Co. reported a larger loss and a 10% decline in same-store sales in its fiscal first quarter, and said it plans changes in its advertising strategy to help remedy its problems. Two other furniture retailers, meanwhile, had mixed results. Restoration Hardware reported declining sales but a smaller net loss than in the comparable quarter a year ago, while Cos...

News

Ethan Allen opens in U.K.
KINGSTON UPON THAMES, England — Ethan Allen has opened its first United Kingdom store here, one of five slated to open in Europe. As it does in North America, the retailer and manufacturer will offer free interior design service either at the store or at consumers' homes. "The Kingston store opening is very exciting for us," said Farooq Kathwari, Ethan Allen chairman and chief executive o...
Dick Idol visits Kittle's store
INDIANAPOLIS — Outdoorsman and artist Dick Idol visited the sales team at Kittle's here as part of an effort to meet and greet the people presenting Klaussner's licensed Dick Idol Home Collection to consumers. Idol is presenting his brand's concept to sales forces at stores to ensure floor salespeople have the necessary tools to sell the product.
Storis data software hits market
PARSIPPANY, N.J. — Storis Management Systems has introduced a new development in database design, the Storis Data Warehouse. Storis says the product is a powerful database model that significantly enhances a manager's ability to quickly analyze very large data sets, utilizing the Microsoft SQL Server relational database.
APA offers publications
Tacoma, Wash. — APA — The Engineered Wood Assn. has issued a publication guide including more than 15 new titles among the more than 140 publications, videos, compact discs and binder sets offered. To order a brochure, contact APA by phone at (253) 565-6600, by fax at (253) 620-7233 or by e-mail at lit.
La-Z-Boy honors top stores
HIGH POINT — La-Z-Boy honored the top-performing La-Z-Boy Furniture Galleries stores in large and small markets in a ceremony at the April International Home Furnishings Market here. They were the best performers in the company's gallery store network, which includes more than 290 stores in the United States, Canada and Europe.
La-Z-Boy plant wins ISO 9002
SILOAM SPRINGS, Ark. — La-Z-Boy Residential's plant here has been granted ISO 9002 certification from the International Organization for Standardization, certifying the facility meets or exceeds all 20 of the ISO quality standards. "Our Siloam Springs plant actively pursued certification by placing quality measurements at every stage of production," said Larry Woolace, vice president of ...
CSIL offers Asia reports
MILAN, Italy — CSIL, the independent furniture industry research institute based here, has published reports on the furniture industry in Taiwan and in Thailand. The reports cover such topics as furniture manufacturing, distribution and consumption, imports and exports, suppliers and macroeconomic issues.
Joan Fabrics to build Hickory design center
TYNGSBORO, Mass. — Joan Fabrics Corp. will build a "world-class design and marketing center" in Hickory, N.C., for its Mastercraft and Joan Fabrics business units, according to company Chairman Elkin McCallum. "This will be the first time Mastercraft will have a first-rate design and marketing center," he said.
White first president of Bush unit
JAMESTOWN, N.Y. — Former Allsteel executive David White has been named the first president of the Bush Business Furniture division. Bush Inds. realigned its executive team and structure into four business units last summer — Bush Furniture, Bush Business Furniture, Bush Furniture Europe and Bush Technologies — and Bush Business has not had a president until now.
Kimbrough EVP at Lazar
LOS ANGELES — Jim Kimbrough has been named executive vice president of manufacturing for Lazar Inds., a new position. Kimbrough joined Lazar, a special-order manufacturer of upholstered seating products, in February 2001 as general manager of its Siler City, N.C., factory. He is now responsible for the company's Los Angeles factory as well.
RTG to open sleep shops
SEFFNER, Fla. — Rooms To Go will roll out bedding specialty stores in Florida this year, its second move into a specialty category and one the Top 100 company believes could double its bedding business. President Jeff Seaman said he won't disclose much about the concept until the first store opens in late fall or winter.
Largo to roll out Jaclyn Smith furniture
HOUSTON — Actress and model Jaclyn Smith, a big name in apparel branding, has a furniture collection on the way. Bedroom and dining room importer Largo will introduce the 40-piece Jaclyn Smith Home collection of bedroom, dining room and accent furniture at the October High Point market. Inspired and designed by Smith, the line will hit retail floors early next year.
Norwalk to sponsor pair of Indy cars
NORWALK , Ohio — Norwalk — The Furniture Idea has signed an agreement with Sam Schmidt Racing to sponsor a pair of Indy cars for the remainder of the Indy Racing League season. The sponsorship deal began with last weekend's Indianapolis 500, in which cars driven by Richie Hearn and Mark Dismore carried the retailer's logo.
Dinec plans new plant
LOUISVILLE , Quebec — Casual dining manufacturer Dinec will build a 53,800-square-foot plant and office in an industrial park in Trois-Rivières, Quebec, to expand production. The facility, Dinec's second, will begin production of medium to high-end dining room suites early next year. The new plant and office occupies a recently purchased 2.
Heilig-Meyers posts first profit since bankruptcy
RICHMOND , Va. — Heilig-Meyers has posted what is believed to be its first monthly profit since it filed for bankruptcy in August 2000, but executives aren't ready to say the retailer is out of the woods. The Richmond, Va.-based company reported net income of $593,000 in March, the first month of its fiscal year, reversing months of hefty losses since it filed for Chapter 11 bankruptcy p...
Levitz leaves RoomStore
RICHMOND, Va. — The Room Store has named three Texas employees to vice president roles at its RoomStore West division, helping to fill a void left by the departing Mike Levitz and a division sales manager. Promoted were Jeremy Satterfield, vice president of finance and information systems; John Brooks, vice president of store operations and logistics; and Dan Provost, vice president of m...
Masins set to remodel, rebuild damaged stores
SEATTLE — Masins Fine Furnishings, which had one store damaged by an earthquake and another destroyed by fire last year, is set to begin a pair of remodeling and rebuilding projects that will significantly increase its retail space in the Seattle market. Bob Masin, president of the 75-year-old family-owned retailer, said construction will begin next month on a new store in Bellevue, Wash.
Ikea (sort of) bars rich from stores
PLYMOUTH MEETING , Pa. — Make lots of money? Then stay away from our store! That's the theme of Ikea's latest tongue-in-cheek advertising campaign for its Summer Sales Event, running May 23 to June 2. The home furnishings retailer is offering shoppers who earn more than $200,000 a year something to do while they're "banished" from the sale.
ASID launches Web directory
WASHINGTON — The American Society of Interior Designers has created an online, searchable database to access its Industry Partner Product and Resources Directory. The online directory connects interior designers, students and others to the names and contact information of ASID partners. Users can search by company and representative name, location, ASID chapter, and type of product or re...
Garcia sells High Point buildings
HIGH POINT — The owner of Garcia Imports has sold a pair of North Wrenn Street showroom buildings to a High Point church, but the properties will continue to be used as furniture showrooms for the next several years. Eddie Garcia, president of Garcia Imports, said the two buildings at 333 North Wrenn have been sold to First United Methodist Church, which is essentially a next-door neighb...
Classic Leather taps Holbrook
HICKORY, N.C. — Guy Holbrook has been promoted to national sales manager of residential accounts for leather upholstery manufacturer Classic Leather, a position that had been open for six months. Holbrook, who joined Classic Leather in 1995, was director of special projects for the commercial division, a post that remains vacant.
Richardson president of Hall of Fame
HIGH POINT — Joe Richardson III, chief executive officer of Richardson Inds., has been elected president of the American Furniture Hall of Fame for 2002-03. Other new officers are: first vice president, Joe Carroll, Furniture/Today; second vice president, Clarence Smith, Havertys; secretary/treasurer, Tom Powell, Directional and Thomas Roderick Co.
Feinblum to market Kmart sites
BETHPAGE, N.Y. — Julius M. Feinblum Real Estate has been hired as a consultant to help market the closing Kmart stores to the furniture industry. The firm was retained by property liquidator DJM Asset Management and Chain Links, a national co-op of real estate brokers, both serving as consultants to Kmart, which filed for Chapter 11 bankruptcy protection in January.
Bedding veterans form marketing company
CHERRY HILL, N.J. — Gerry Borreggine and Ed Brandhorst, two bedding veterans with more than 50 years of combined experience, have joined forces to run an advertising design and marketing company that serves a variety of bedding clients. AllMedia Design Group, whose name suggests its full-service nature, is based in this Philadelphia suburb and does everything from creating bedding circul...
Quirky store Busvan to close doors in SF
SAN FRANCISCO — After 56 years, furniture retailer Busvan for Bargains is having its first sale — a going-out-of-business sale. The second-generation owner of Busvan for Bargains, Michael Busk, is closing his two San Francisco stores so he can return to his first career, college teaching, in theology or business ethics.
Nebraskan wins Riverside drawing
LITTLE ROCK, Ark. — Dawn Hill of Hill Home Furnishings in Beatrice, Neb., won a Riverside Furniture drawing at the April High Point market. Hill won a storage cocktail table signed by artist Bev Doolittle, the licensor for the case goods and occasional manufacturer's American Spirit Collection.
NHFA launches new Web site
HIGH POINT — The National Home Furnishings Assn. has launched a new Web site at www.nhfa.org designed to better communicate with its two primary audiences, furniture retailers and consumers looking for information about home furnishings. The new site was developed by Symetri, which is based in Atlanta but also has offices in High Point.
Gary Fulk consulting for Sherwin-Williams
CLEVELAND — Gary Fulk has joined Sherwin-Williams as a consultant to help guide the company's efforts to build its share of the wood coatings market in furniture. Fulk has spent more than 40 years in the furniture industry, mostly with Reliance Universal, the finish supplier purchased by Akzo Nobel in 1990.
Stores use GERS tool in credit
SAN DIEGO — GERS Retail Systems says two big retailers have launched its CreditConnect for private-label credit processing. Jackson, Miss.-based Miskelly Furniture and San Diego's Super Stores of America are using the software maker's electronic processing tool at the point of sale to process credit applications and authorizations and also capture customer and sales information, all wit...
Mohawk's new distribution center boosts touch-up products program
HUDSON, N.C. — Mohawk Finishing Products is using a new distribution center here to launch a quick-ship program for its touch-up supplies. In January, Mohawk opened the 63,000-square-foot facility on the site of its manufacturing plant, a few miles northwest of the corporate office in Hickory.
Workshop helps restore damaged pieces
HICKORY, N.C. — Hundreds of people a year are learning to repair wood and leather furniture at workshops conducted by Mohawk Finishing Products, including a recent one at a community college here. Damaged products cause headaches for retailers and lost profits for manufacturers. Mohawk is working to reduce these losses through training in how to repair and correct flawed merchandise.
Thomasville steps up e-business initiatives
THOMASVILLE, N.C. — Thomasville Furniture is slowly going digital, and is taking its retailers along. Several e-business initiatives by the manufacturer will, when combined, provide retail salespeople and their customers with product information that is unprecedented both in amount and in accuracy.

Opinion Today

LifeStyle breakup makes history in Top 25 ranking
A breakup of Soviet proportions, at least for this industry, helped make last year a historic one for Furniture/Today's annual list of the largest furniture manufacturers. For the first time in all the years we have been ranking the top producers and estimating their sales — off and on since 1977 and every year since 1985 — the sales were down for the big players as a group.
Top 100's meager gain looks like great news
Last year was the worst year ever for the Top 100 U.S. furniture stores. Combined sales were up a measly 1.9% last year, the smallest increase since we began measuring. Combined store count was down 3.1% — another first. All in all it was a pretty darn good year. You heard me. Low sales growth, a little store consolidation — not bad considering the recession, the rise in unemploymen...
Fresh ideas energize today's design
It looks like there's a new wave of energy in design happening across the home furnishings market. If last week's International Contemporary Furniture Fair in New York and Proposte and Scoperta in Europe were any indication, people are going back to the drawing board with fresh ideas and new uses of materials.

People Today

Berkline honors father, son team
MORRISTOWN, Tenn. — Berkline has honored the father and son selling team of John Amato Sr. and John Michael Amato with its Sales/Marketing Representative of the Year award for 2001. The award was presented during Berkline's national sales meeting in High Point in April. John Amato Sr. has been with Berkline as a sales and marketing representative in upstate New York for 28 years.
People on the Move
People on the move
Executives Trace Inds. MEMPHIS, Tenn. —John Rowland, president of Trace Inds. of Houston, Miss., has been re-elected president of the National Cotton Batting Institute. Other officers re-elected for 2002-03 are Tony Wolf, Wolf Corp., Fort Wayne, Ind., vice president; Alan Posner, Jones Fiber Products, Memphis, secretary; and Jim Blasius of InCide Technologies, Phoenix, treasurer.
Decor-Rest taps Penney for new export post
WOODBRIDGE, Ontario — Industry veteran Ron Penney has been named to the new position of export manager for upholstery maker Décor-Rest. Penney started his career in the cutting room of a major high-end upholstery company and has worked in merchandising and buying for retailer Robinsons and in store management for Sears Canada.
Restonic promotes Akers
TOLEDO, Iowa —Ken Akers has been named sales manager at the Restonic Mattress Corp. plant here. He will be responsible for Restonic's business in Minnesota, Iowa and North and South Dakota. Akers began his career with Restonic in 1992 as a sales representative in Iowa, then left to work for Serta for the past seven years.

Special Report

Top 100 Furniture Stores
Sales edge up just 1.9%
HIGH POINT — Furniture, bedding and accessories sales for the nation's Top 100 furniture stores grew a mere 1.9% last year, the smallest gain since Furniture/ Today began tracking the category 11 years ago. Sales grew to $21.3 billion last year from $20.9 billion for the same Top 100 in 2000 — clear evidence that last year's recession and tanking economy stalled furniture purchases ...
Top 100 Furniture Stores
Total store count drops for first time in 21 years
HIGH POINT — The Top 100's store contraction in a down economy last year was a first. Total store count decreased by 219 stores to 6,935 units. That hasn't happened in the 21 years that Furniture/Today has been putting together a Top 100 list. Even in 2000, when Heilig-Meyers was in the midst of its free fall, the Top 100 managed to eke out a 1.
Top 100 Furniture Stores
Compiling the Top 100
Furniture/Today's exclusive Top 100 listing ranks furniture stores by sales of furniture, bedding and decorative accessories. To qualify, a retailer must specialize in home furnishings. The mix may include electronics, appliances, home textiles, tabletop and other home furnishings, but furniture, bedding and decorative accessories must account for 25% or more of total sales.
Top 100 Furniture Stores
Top performers
Houston's Gallery Furniture walked away with the best sales-per-square-foot and stock turn performances last year — continuing the tradition of being near or at the top of these categories for years. The one-store giant, ranked No. 41 on this year's list, left all others behind with a reported average sales per square foot of $1,640.
Top 100 Furniture Stores
Specialists vs. full-line stores
Despite a strong showing from many of the industries largest full-line furniture stores, Top 100 conventional retailers continued to pale in comparison to their specialty store counterparts — smaller by size and number but aggressive in their pursuit of real estate and market share. Conventional stores still account for 73% of total Top 100 sales, but that's down from 74% of sales for las...
Top 100 Furniture Stores
Single-source networks
Single-source store networks on the Top 100 managed a slight sales gain and captured 7.8% of the furniture, bedding and accessories pie for all furniture stores last year. The overall growth came despite the fact that more than half of the 10 store networks lost ground last year with sales decreases.
Top 100 Furniture Stores
Bedding specialists
The 10 bedding specialists on this year's Top 100 grew their store count 7.6% last year, but it didn't do much to help their sales. The bedding companies added 123 stores for a total of 1,746 units at the end of the year. That growth rate beat the combined Top 100, which lost 219 stores last year. But the bedding specialists sales rose only 1.
Top 100 Furniture Stores
Who's who among the leading stores
Top 100 Furniture Stores
Top 100 Furniture Stores
Top 100 Furniture Stores
Furniture stores to watch
Market Report
Proposte spotlights top Euro looks
CERNOBBIO, ITALY — The best European designs for upholstery fabrics were showcased here earlier this month at Proposte 2002, the 10th edition of this prestigious international show held annually at Villa Erba beside Lake Como. At the first Proposte in 1993, there were 44 exhibiting companies, six of which were foreign, and 2,500 visitors from around the world.
Market Report
Fair, school join for study
MILAN, ITALY — The Proposte fabric fair and the Milan Polytechnic are collaborating on a study grant project designed to develop innovative products within the field of furnishings fabrics and increase interest in the furnishings side of textile design. About 20 million euros are earmarked to launch the project, which will involve 100 students from Milan Polytechnic and Luigi Bocconi Univ...
Market Report
New plant marks celebration of Conjugi Eger's 125th anniversary
MUSSOLENTE, ITALY — Italian textile source Conjugi Eger is celebrating 125 years in business during 2002 and marking the anniversary with the opening of a new plant to enhance the production of its fabric line that is sold around the world. It all began, according to the company's history, on May 22, 1877, when Francesco Wenceslao Eger loaded his wife Annunciata and their three children ...
Market Report
Innovative fabrics spark Scoperta
CHIASSO, SWITZERLAND — Printed microfibers, environmentally sound raffia looks and other innovative fabrics were highlights at Scoperta, a fabric show here that runs concurrently with Proposte. Colors from the 1960s — hot pink, industrial orange and purple — were big among exhibitors, along with pop art looks that evoked the same era.
Market Report
Aznar opens new factory, showroom
VALENCIA, SPAIN — Aznar Textil has opened a new jacquard weaving factory and warehouse in Bocairente, Spain, and recently inaugurated a new showroom at its corporate headquarters here. The new showroom is more than 500 square meters and features displays of both the company's lines — Bon Drap and its newly launched Enza line — as well as a reception area, meeting rooms and pr...
Market Report
Fresh shapes, colors highlight ICFF
NEW YORK — Furniture as sculpture, a new wave of fiberglass as a furniture material, and the usual flights of fancy highlighted the 14th annual International Contemporary Furniture Fair here last week. The show has expanded well beyond its furniture roots to include a substantial offering of rugs, lighting and home textiles.
Quality pushes price in youth lines
HIGH POINT — The prices on many youth furniture groups are rising, but it isn't due to inflation — it's because of better product. A popular trend now is introducing a youth collection that could double as an adult group in a second bedroom or summer home. Because these pieces are expected to last longer, the furniture is built better and therefore more costly than manufacturers' st...

Store Openings

Penn Furniture opens 2nd unit
FARMINGDALE, N.Y. —Penn Furniture has opened a new 45,000-square-foot store here. This is the second store for owner Mike Hussein. Hussein has dedicated 5,500-square-feet for a Custom Comfort Center by England.
Rettig Bros. debuts England
FINDLAY, Ohio —Rettig Bros. Furniture has opened a 4,600-square-foot Custom Comfort Center by England in its store here. In December 2001, Rettig Bros. completed construction of their new 40,000-square-foot facility located just a quarter mile from their old location.. They have been an England dealer since 1989.
Furniture Plus installs Berkline
HUDSON, N.Y. —Furniture Plus has opened a 3,500-square-foot Berkline Comfort Gallery in its 13,000-square-foot store. Steve and Bonnie Caro are co-owners of the retail unit.
Charter Furniture launches two Pa. House galleries
ADDISON, Texas — Family owned and operated Charter Furniture has opened two Pennsylvania House galleries in two retail units. The first gallery is 4,500 square feet and has been installed in the company's location here just outside of Dallas. The second gallery is 4,900 square feet and is located at the North Richland Hills location outside of Fort Worth.
Sear Canada adds furniture store
ABBOTSFORD, British Columbia —Sears Canada is opening a Sears Furniture and Appliances store here at Sumas Way Home Centre in the summer of 2002. The 43,000-square-foot store will employ approximately 40 people and will be devoted exclusively to furniture, rugs, accent-decor items and major home appliances.

Up Front

E-business heating up again
HIGH POINT — After three relatively cool High Point markets, the e-business scene warmed up again last month, in both the business-to-consumer and business-to-business spaces. "Perspectives on the Internet have changed this year," said Carl Prindle, president of the new Furniture.com, which launched six weeks ago and since has been recruiting retailers.
Manufacturers don't know who will attend Toronto event
TORONTO — About 45 manufacturers will open their showroom doors here this weekend for what is described as a three-day open house. Earlier this year, the Quebec Furniture Manufacturers Assn. cancelled the summer edition of the Canadian Home Furnishings Market — originally scheduled for this weekend — citing a lack of industry support.
BDO: Factory orders up 2% in March
HIGH POINT — Factory orders for residential furniture were up 2% in March compared with the same month a year ago, the fourth monthly gain in a row, according to the latest estimate from BDO Seidman. But orders for March, and for the year to date, still had not recovered to the level of 2000, the accounting and consulting firm said.
Nationwide sale closes
NORCROSS, Ga. — The majority owner of Nationwide Warehouse & Storage has teamed with Sun Capital Partners to buy the remaining 63 stores and other assets of the bankrupt retailer for $10.7 million. The move will breathe new cash and perhaps new life into the highly promotional Top 100 company, which filed for Chapter 11 bankruptcy protection in October.
Latex plant rises from ashes
SHELTON, Conn. — Like the mythical Phoenix, which rose from the ashes, Latex Foam International celebrated the opening of its new 208,000-square-foot facility here a year and a day after the old plant was destroyed by fire. "This is a day of rebirth," declared Stephen Russo, president and chief executive officer, who welcomed industry guests to the new plant at a gala grand opening this ...
Former Fingerhut CEO in deal to buy company
CINCINNATI — Federated Department Stores has signed a non-binding letter of intent to sell many assets of catalog retailer Fingerhut to former Fingerhut chief executive Theodore Deikel and wholesaler Thomas J. Petters. Negotiations on a final agreement were pending, and a sale price wasn't disclosed.
ADL to honor Massood
NEW YORK — Mike Massood, chairman of MGM Transport and a 50-year industry veteran, will receive the Anti-Defamation League's Lifetime Humanitarian Award at a ceremony to be held at the New York Marriott Marquis on June 20. Massood joins honorees Alex Bernhardt Sr., chairman and CEO of Bernhardt Furniture, and Keith Koenig, president of City Furniture, Tamarack, Fla.
Sealy stands behind sales
TRINITY, N.C. — Sealy, a supplier to the failed retailer that operated sleep shops in Wal-Mart stores, said it will make sure customers get Sealy beds that they purchased. "A number of American Mattress Centers customers have not received the mattresses that they had purchased from AMC (which recently filed for Chapter 7 protection)," Sealy said in a statement.

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