Furniture|Today 09/09/2002 Table of Contents

Table of Contents

Furniture|Today -- 09/09/2002

Bedding Today

Even in tough times, bedding's star shines
There is good news and bad news in Bedding Land nowadays. Retail has been tough. Competition is, as always, fierce. But savvy retailers and producers continue to find ways to grow. And there are some promising developments at retail. These insights came from a conversation I had the other day with one of my friends on the manufacturing side of the business.

Business Today

Natuzzi net income up 78.4% in 2nd qtr.
Santeramo in Colle, Italy— Natuzzi said second-quarter net income was up 78.4% from a year earlier, mainly because of lower raw materials costs and foreign-exchange gains. The upholstery producer earned $27.4 million in the period on sales of $199.3 million, up 3.3% from the same period in 2001.
Retailers' Aug. results mixed
Fort Worth, Texas— Retailers posted mixed results for August, as Pier 1 Imports reported sales and same-store sales increases, The Bombay Company had a slight sales gain coupled with a same-store sales decrease, and Sears Canada said revenues and same-store sales both were down. Pier 1, based here, reported August sales jumped 17.
Bestar 2Q revenues down 15.3%
Lac-Megantic, Quebec— Weak demand for home office furniture in Canada and the United States sent gross revenues down 15.3% to C$11.3 million in the second quarter for ready-to-assemble manufacturer Bestar. The company's net loss doubled to C$447,000 from C$225,000 in last year's comparable quarter.

Insider's View

Managements wrestle with the 'new normal'
One of the most difficult parts of our job is to evaluate management performance. In normal times, you can look to sales growth, higher profits, product innovation, a talented group of leaders with a clear succession plan, and a sound grasp of all the key issues her company needs to address to succeed in the future.

News

Atlanta store builds loyalty with e-mail
Atlanta— In the fiercely competitive home furnishings market here, Unfinished Furniture Depot executives felt they needed to separate themselves from other local stores in their category, and also from the big national chains. A big part of their answer has been e-mail. They turned to Loyalty Marketing Solutions in Marietta, Ga.
Myriad unrolling upgrades to Eclicktic software
San Diego— At the October High Point market, Myriad Software is set to unveil enhancements to the latest versions of its big-ticket furniture retail software, Eclicktic 3.0.20 released in May and Eclicktic 3.0.30 released in July. The company plans to serve its new technology with gourmet coffee, including cappuccino and espresso, whipped up in its 12th floor space in the International Ho...
Palliser looking to boost store EDI with FurnishNet
San Diego— Full-line Canadian manufacturer Palliser is looking to FurnishNet to help it improve electronic data interchange with its retailers. By enrolling in the technology company's rapid adoption program, Palliser is hoping to begin transacting with its dealer base electronically, regardless of the systems the retailers are using.
Lorraine puts headboards on Web
Rockville, Md.— Lorraine Furniture, which has been producing headboards with a removable panel for more than two decades, is expanding its distribution with a direct-to-consumer Internet strategy. The manufacturer, which has long supplied upholstered headboards to mattress producers, department stores and textile showrooms for display purposes, is now selling its products online.
Corrections & Amplifications
In Part I of the Monticello special report (Sept. 2, pages 22–23), Monticello should be identified has the home of Thomas Jefferson, our nation's third president. Also, the revolving bookstand that is offered in the Thomas Jefferson Foundation catalog is not part of the Monticello Collection by Madison Square.
Unique pieces mark Lauren Oct. offerings
New York— Unique pieces and special embellishments highlight the furniture in the four Ralph Lauren Home lifestyles to be introduced in October. The new lifestyle involving the most furniture is Jamaica, set in the Caribbean island, with a mood reminiscent of a Georgian mansion. One showcase piece is a carved bamboo bed.
BBB salutes Kornmeyer for outstanding ethics
Baton Rouge, La.— Retailer Kornmeyer Furniture here has been honored for outstanding ethics by both the Better Business Bureau of South Central Louisiana and the Council of Better Business Bureaus. The store was given the 2001 Douglas Manship Sr. Torch Award for Ethics in Business by the BBB of South Central Louisiana.
CDS Solutions sets Sept. users group conference
Lancaster, Pa.— CDS Solutions Group, a provider of retail managements systems for big-ticket retailers, will hold its third annual FACS5 users group conference Sept. 18–20 at the Eden Resort Inn and Conference Center here. The conference will cover topics ranging from improving the retail sales process to technical subjects including new features of the FACS5 Enterprise Retail Manag...
Ikea campaign: Live large in small spaces
New York— Even in a tight space, you can live comfortably. That was the mantra for Ikea in a marketing move that emphasized its commitment to providing consumers with living solutions as well as merchandise. The Sweden-based lifestyle home furnishings retailer decorated two trailers and brought them to Union Square here with the theme "Think Cubic.
Quaker settles copyright infringement lawsuits
Fall River, Mass.— Quaker Fabric said it has successfully resolved the copyright infringement actions it filed earlier this year against several U.S. fabric distributors. It did not name the companies. Larry Liebenow, Quaker president and chief executive officer, said the settlements required that infringing product be withdrawn from the market.
Leather, wood sources set U.S. debut
Manlius, N.Y.— Two European players — a leather upholstery producer and a case goods manufacturer — will enter the U.S. market in October. T&T Salotti, a promotional and midpriced Italian leather upholstery maker, and Ernest Menard, a medium-priced French case goods manufacturer, will show together in High Point at Plaza Suites, space 406.
Chair wins design contest
Tacoma, Wash.— Tuohy Furniture and designers Chris Heppding and Trent Busch took first place for the Bay Forms 9 Lounge, a retro '50s-style wing chair, in this year's Under the Covers Upholstered Furniture Design competition sponsored by APA-The Engineered Wood Assn. and udm Magazine. Merit awards were given to Lewis Mabon of Ethan Allen for the Marilyn sofa, Bradley and Bobby Gantt of Le...
Afghan envoy visits Karel's N.J. market
Edison, N.J.— Feridun Kul, the New York-based Consulate General of Afghanistan, was a guest at the Edison Furniture and Accessory Mart here recently. "We were interested in learning about the market here and bringing information back to businesses in Afghanistan," Kul said. "We want to increase imports and exports with America, and after attending this show and sending reports to our capi...
Corrections & Amplifications
Two Bassett executives were incorrectly identified in photo captions in a story on page 12 of the Sept. 2 issue of Furniture/Today. Pictured at right are Michael Satterfield, vice president of marketing, and Loy Ehlers, vice president, store development and retail general counsel.
Obituaries
Obituaries
Sears Canada honors six
Toronto— Sears Canada has recognized six of its furniture and bedding vendors for performance excellence in 2001. Receiving the Partners in Progress award were: Sears Canada carries just over 100 core furniture and bedding vendors among its more than 2,000 suppliers. The Partners in Progress awards, given to the top 1%, were presented at a gala dinner in Toronto.
CTGA show was lacking
Toronto— While there may have been a strong contingent of furniture retailers at the Canadian Gift & Tableware Assn. summer show here in August, they weren't shopping for furniture. About half the furniture manufacturers with permanent showrooms in and near the Toronto International Center of Commerce opened for at least part of the CGTA show.
Jordan's store beefs up SOHO, contemporary
Natick, Mass.— Guests at Jordan's Furniture's new Imax theater here are also seeing an expanded showroom with a more home office and sleek new contemporary upholstery. A 10,000-square-foot addition pushes the total showroom space at Jordan's largest store to 120,000 square feet. The new contemporary display has product from new supplier John Charles Designs, Comfort Designs — also f...
Imax opening draws 2,500
Natick, Mass.— Jordan's Furniture attracted sellout crowds at the opening of its Imax theater here. As if a regular Mardi Gras show and a Bourbon Street theme weren't enough, Jordan's leaders Barry and Eliot Tatelman outdid themselves with the giant-screen AT&T Broadband Imax 3D Theater at the 120,000-square-foot store.
Buffett can't find more furniture stores to buy
Natick, Mass.— It doesn't sound like Warren Buffett is on the hunt for more furniture stores to buy. It's not that the chairman of Berkshire Hathaway dislikes the business. Indeed, his furniture holdings — including Jordan's, Star Furniture, R.C. Willey and Nebraska Furniture Mart — are among the industry's best, and often receive praise in his annual letters to shareholders.
Finding a place to stay
High Point— When planning for the market, hotel rooms can be booked through the Market Authority Housing Bureau at (336) 884-1947 or toll free at (800) 874-6492. The Bureau can take credit card payments over the Internet on its Web site at www.highpointmarket.org. Private housing services include: To find out if a house-finding service is properly licensed for business in the state, call ...
Prices depend on some variables
High Point— The cost of renting a home during the High Point market depends on many variables, including the number of bedrooms and bathrooms and the distance from the downtown area. Emerywood is a development near the downtown and is generally the most expensive location. One house broker said a two-bedroom home there for 10 days would cost about $2,500, while the same style house a few ...
City Furniture buys its own house
High Point— If the hotels are all booked and you're not crazy about staying in someone else's home, you might try City Furniture's new approach to market lodging: Buy your own house here. In June, the Tamarac, Fla.-based retailer plunked down about $540,000 for a nearly 5,000-square-foot, seven-bedroom home in the upscale Emerywood neighborhood.
New vendors vie for slice of America's rug pie
Atlanta— A diverse group of new vendors made their pitch at the summer rug market here, each eager to make their mark on the American rug business. The newcomers included: Balta is a name familiar to many in the rug business. It once had a manufacturing facility in Georgia (Princeton Rugs) and also has imported its European-made products.
Top rug stores win honors
Atlanta— Outstanding retailers in several categories were honored during the rug market here. The categories and winners were:
Labor Day sales strong
High Point— Furniture retailers across the country reported strong Labor Day weekend sales, but were mixed in their views on whether the bump signals a turning point. For some, the busy weekend was a welcome change of pace in a sluggish year, while others, who have bucked the soft sales trend, saw it as a continuation of a good year.
Brokers master art of finding market housing
High Point— Thanks to the work of a few behind-the-scenes entrepreneurs, thousands of marketgoers have places to stay here for a week and a half each April and October. Known as househunters or house brokers, this small group serves as a link between private homeowners and market-time renters. It's a year-round job that requires hours communicating by phone and computer, inspecting homes,...
This Jones is 'crusader-in-chief'
High Point— In any other industry, the name Ron Jones Jr. would be pedestrian. In the furniture industry, however, it has helped propel a business in a segment that has seen precious little forward movement — Internet-enabled technology. Jones, who holds the title "crusader-in-chief" of the e-business and communication technology company Symetri, is the son of Ron Jones, chairman of...

Opinion Today

How to make big bucks in this teeny, tiny game
Years ago, my great brit friend, Carlton Chutney, the world's ultimate entrepreneur, told me that he had just bumped into another super business concept. A concept that would break all the earnings records of his many business ventures. And when I asked him what it was all about, he confided that he was going to invade the small print industry.
An invitation for you to be a part of it all
I've been thoroughly enjoying one of my favorite things about living in North Carolina — having four distinct seasons. Spring is without question my favorite time of the year, but summer is pretty splendid too, albeit terribly dry this year. And now nature is shifting gears ever so gradually into autumn — I just love the color.
Perspectives from the pet industry
Well, it's that time again: premarket into market. But before everyone in furnitureland becomes totally absorbed in our semiannual frenzy, maybe it's a good time to put things into perspective. A look at a Wall Street Journal article published in late August perhaps is one way to begin this exercise.

People Today

Flexsteel honors suppliers
Dubuque, Iowa— Upholstery maker Flexsteel Inds. here has bestowed its annual Gold Supplier awards, honoring its top fabric and leather suppliers. Arpel Leather was given the award for a fourth consecutive year, while Quaker Fabric received the award for the third consecutive year.
People on the Move
People on the Move
Awards Foamex Linwood, Pa. — Supplier Foamex International has given out its fourth annual Diamond Awards for 2002, honoring seven from among nearly 6,000 employees. Of the seven, four are members of the Reflex furniture cushioning team. The Reflex team members who received the award are Jeff Briney, director of business development, St.

Special Report

Alternative to China? Brazil makes progress
Sao Bento do Sul, Brazil— Three years after committing itself to exporting furniture to the United States, Brazil says it has come a long way toward becoming an alternative to China Last year, Brazil shipped $144 million worth of furniture to the United States, up 44% from 2000. Brazil was the only country whose exports to the United States grew faster than China's, whose shipments were u...
What buyers think of Brazil
Sao Bento do Sul, Brazil— American buyers touring factories here and attending the Movel Brasil show last month saw both good and bad in doing business with Brazilian manufacturers. Several were members of the International Wholesale Furniture Assn. on a visit to this area, which bills itself as the furniture capital of Brazil, producing 46% of furniture exports.
Colorful, contemporary products a hit in Brazil
Sao Bento do Sul, Brazil— Initiated in 1997, the Movel Brasil furniture show attracts visitors from the Americas, Europe and Asia, despite its focus on styling for the domestic Brazilian market. This year, 160 manufacturers exhibited at Movel Brasil, including 80 from the show's home state of Santa Catarina.
Better prices doing well for casual dining
High Point— Casual dining producers are finding that better goods are selling well this summer. In a slow economy, consumers tend to look even more for good values, but in casual dining that doesn't necessarily equate to lower prices. Domestic manufacturers and importers alike have found success at better price points.
Monticello line captures Jefferson's creative soul
Charlottesville, Va.— Licensed furniture collections tied to a historic property face a different set of challenges from furniture linked with a personality or brand name. If the licensor insists on strict reproductions of the furniture found at the property, there's the risk that the product won't reach beyond consumers with an interest in antiques.
Give and take: Team tackles a piece that doesn't quite fit
Charlottesville, Va.— At issue was a seed chest, a piece from Monticello's original joinery that Thomas Jefferson — a naturalist as well as a statesman — had used to hold his huge collection of seeds. Like the rest of the joinery furniture in his estate here, the seed chest was more rustic than the pieces Jefferson acquired from furniture makers of the period.

Store Openings

Lea installs 3 youth galleries
Greensboro, N.C.— Lea Inds. has been busy installing La-Z-Boy Youth Collection galleries in three stores. N.B. Liebman has added an 1,800-square-foot youth gallery to its 40,000-square-foot store. Charles Liebman is owner of the store, located on Carlisle Pike in Camp Hill, Pa. N.B. Liebman has another store on Jonestown Road in Harrisburg, Pa.
La-Z-Boy gallery is added to Oregon's Wilcox Furniture
Milton-Freewater, Ore.— A La-Z-Boy Gallery has been added to Wilcox Furniture here. The 6,050-square-foot gallery features a broad selection of La-Z-Boy products and is part of Wilcox Furniture's 32,000-square-foot showroom. The store is owned by John Wilcox, Alan Wilcox and Bruce Wilcox.
La-Z-Boy opens in Alberta
Calgary, Alberta— La-Z-Boy Canada has opened a La-Z-Boy Furniture Galleries store here. Cam Davidson is owner of the 13,927-square-foot unit. The Calgary store offers the entire collection of La-Z-Boy products as well as stationary sofas and chairs from the Canadian Home Collection by La-Z-Boy.
Coffman's adds Broyhill
Jackson, Tenn.— Coffman's Furniture has opened a 7,500-square-foot Broyhill Furniture Gallery in its 35,000-square-foot store here. Mark Coffman is store manager of the family-owned and operated business, which was launched in 1924. In 1982, Coffman's moved to its current location and has undergone three significant expansions, the most recent being 12,500 square feet.
Drexel unveils Maine store
Gray, Maine— Gobeil's Furniture Galleries has opened northern New England's first Drexel Heritage Home Inspirations Store here. Ron and Eileen Gobeil are the owners of the 10,000-square-foot gallery store, which features a fabric wall showcasing over 1,000 fabrics and 100 leathers. Gobeil's opened in 1973 in a 2,000-square-foot barn.

Up Front

HFIA deal keeps HFC alive
Dallas— The Home Furnishings International Assn. has acquired the assets of the Home Furnishings Council in an attempt to breathe new life into the industry's fading consumer-marketing arm. The retail association bought the HFC and Haven names and associated trademarks for an undisclosed amount, saving it from dissolving as industry support continued to dry up.
Bedding leader Andrea Herman dies at 44
Alexandria, Va.— Bedding executives around the country are mourning the unexpected death of Andrea Herman, an influential figure in the bedding industry. Herman, 44, lost a yearlong battle with leukemia on Sept. 2. She spent more than a decade in key roles with the International Sleep Products Assn.
Textile industry fights fabric design pirates
New York— The American textile industry is taking on the dramatically increasing problem of international piracy of intellectual property. While many countries are involved, China appears to be a major target for attempts at control. As more and more fabric is produced offshore, the American fabric executives consider their designs and fabric development capabilities key assets.
Brand Source offers plan
Anaheim, Calif.— Merchandising group Brand Source is offering an insurance plan to members, their employees and families. Called ExpertCare, the plan includes health, prescription, vision, dental and AD&D coverage as well as life insurance. It has three levels of coverage, ranging from a basic plan to one covering major medical with up to 80% reimbursement.
Restonic credits new ads, products for sales growth
Rosemont, Ill.— Taking a studied approach to the bedding business, Restonic has rolled out new products and new advertising and marketing programs to boost its market position. President Ed Scott said the initiatives have put Restonic on a fast-growth track this year. Through the end of July, sales are up almost 17%, far ahead of the industry's overall growth rate this year, he said.
Homestead House opens first clearance center in Colorado
Westminster, Colo.— Homestead House has opened its first clearance center here, a 35,000-square-foot store to sell off discontinued, slightly damaged and other specially classified goods, including merchandise from suppliers that its stores no longer carry. The center — the Top 100 company's 14th store, and a former HomeLife — is projected to generate annual sales of at least ...
Lane taps Idol, Dix for design posts
Tupelo, Miss.— Robert Idol and George Dix have been promoted to executive positions in design at Lane Home Furnishings. Idol has been named vice president of corporate design, reporting to Skipper Holliman, vice president of marketing. Idol has been Lane's director of corporate design for 11 years and has been with the company 20 years.
Serta, out since '99, returns to High Point in Largo showroom
High Point— Bedding major Serta returns to the International Home Furnishings Market next month in a joint showing with Largo International. Serta, in its first market appearance since 1999, will team with Largo to show a mattress and metal bed frame gallery concept. Serta will show a broad assortment of its bedding products in a new Connie Post-designed showroom on the second floor of th...
Nine nominated for Hall of Fame
High Point— Nine industry leaders have been nominated for induction into the American Furniture Hall of Fame. The nominees are William H. Child, William Lorton Cook, Jerry Epperson, Charles E. Hayworth Jr., Spencer Cole Kittinger, Leon Jerome Levitz, Irwin Lowenstein, Andrew Major and Morton Seaman.
Wanek using twisted I-beam to create Sept. 11 monument
Arcadia, Wis.— A twisted steel girder from the World Trade Center is the focal point of a monument that Ashley Chairman Ron Wanek is creating here to commemorate last year's Sept. 11 attacks. Ashley sent a request for a piece of the Twin Towers to New York City officials last month and got quick approval to come pick one out.
Havertys same-store sales dip 2.6%
Atlanta— Top 100 retailer Havertys posted a 2.6% drop in August same-store sales and reduced its third-quarter earnings guidance. "Houses and automobiles seemed to be the big-ticket items of choice for consumers last month," said Jay Slater, the company's chief executive officer. "It follows that furniture should move up on the shopping list in the months ahead.
Vegas tax rebate vote put off for fourth time
Las Vegas— A City Council vote on tax rebates for the proposed World Market Center was delayed for the fourth time last week, but the reason was unclear. The city approved the property tax rebate in principle last November, but has delayed final approval. The rebates on the proposed $1 billion, 7.

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