Furniture|Today 11/24/2003 Table of Contents

Table of Contents

Furniture|Today -- 11/24/2003

Bedding Today

Fires lead to tragedies that we must address
The Numbers on Mattress flammability are sobering. In 1998, the latest year for which figures are available, 410 Americans died in mattress and bedding fires. There were 18,900 such fires that year, causing 2,260 injuries. The property loss was $255.4 million. Those figures are from the U.S. Consumer Product Safety Commission, which is developing a national mattress flammability standard.

Business Today

Bombay posts small loss as 3Q sales increase 18.9%
Fort Worth, Texas— The Bombay Company reported an 18.9% sales gain and a small loss, both of which beat its earlier projections, in its third quarter ended Nov. 2. "Bombay has completed the first phase of our turnaround, regaining market share with strong same-store sales growth," said James Carreker, chairman and chief executive officer of the 465-store specialty retailer.
Flexsteel sales up 9.8%, net income slips 8.2%
Dubuque, Iowa— Upholstery maker Flexsteel Inds. posted sales of $76.9 million in its first quarter ended Sept. 30, up 9.8% from the previous year, with net income slipping 8.2% to $1.9 million from last year's $2 million. In the prior year's quarter, the company recorded a $200,000 after-tax gain on the sale of land.
Rent-Way sales inch up, loss cut
Erie, Pa.— Rent-to-own company Rent-Way said revenue of $118.9 million in its fourth quarter ended Sept. 30 was up 0.9% from the same period a year ago, excluding discontinued operations. The figures don't count the 295 stores Rent-Way sold to Rent-A-Center earlier this year. Same-store revenues were up 2.
Keller losses mount
Corydon, Ind.— Case goods manufacturer Keller said third-quarter sales dropped 39.6% to $5 million, and its loss grew to $5.9 million from a loss of $855,245 in last year's third quarter. While actual cost of sales for the period was down 24.6% to $5.9 million, and selling, general and administrative expenses fell 7.

News

Century to buy Highland House designs, product
Hickory, N.C.— Century Furniture has agreed to purchase the inventory and intellectual property of high-end upholstery maker Highland House from Furniture Brands International for an undisclosed sum. The deal does not include Highland House's factory here. Furniture Brands company Thomasville plans to use the facility to make upholstery.
GERS signs Jordan's for CreditConnect
San Diego— Retail software provider GERS Retail Systems has signed Top 100 chain Jordan's Furniture for its point-of-sale electronic credit-processing program called CreditConnect. Four-store Jordan's, based in Avon, Mass., is part of the Berkshire Hathaway furniture division and one of New England's biggest furniture retailers.
Simmons sells for $1.1B
Boston— A private equity firm and senior management of Simmons have agreed to acquire the fast-growing bedding producer in a transaction that values the company at $1.1 billion. The Boston-based firm Thomas H. Lee Partners, together with Simmons Chairman Charlie Eitel and other management, signed a definitive agreement to acquire Simmons from Fenway Partners, a New York-based investment f...
Thomasville team lays out strategy
Fort Lauderdale, Fla.— Some 150 owners of Thomasville Home Furnishings stores gathered here this month to learn about plans to more than double sales to $1.3 billion and increase store count from 147 this year to 250 by the end of 2007. With a new executive team under President and Chief Executive Officer Tom Tilley, highlights of the growth strategy include: With nearly its entire dealer...
Obituaries
Obituaries
Simmons management will stay
Atlanta— The outline of a blockbuster transaction for the sale of Simmons Co. confirms what Simmons CEO Charlie Eitel said when he announced the possible sale of the company a few months ago. Simmons management would remain in place, Eitel said then, whether the company is sold or not. And the deal with Thomas H.
Hendricks shares details on growth plan
Hickory, N.C.— Hendricks Furniture Group has opened a Thomasville Home Furnishings Store in Charlotte, N.C., and has more planned next year for Southeast Florida and greater Atlanta as part of its deepening relationship with Furniture Brands International. Within two years, Hendricks expects to have 20 Thomasville stores in the Carolinas, Georgia and Florida and five Drexel Heritage store...
Diamond buying 2 Unclaimed Freight units
Philadelphia— Diamond Furniture here is acquiring two Unclaimed Freight stores in Pennsylvania and New Jersey. The six-store, promotional to midpriced retailer will buy the 30,800-square-foot Pennsauken store in southern New Jersey and the former 33,200-square-foot Bensalem, Pa., store. Diamond owner and President Gary Diamond said the company would pay about $2 million for the Unclaimed ...
Thomasville's ads, stores to send consistent message
Fort Lauderdale, Fla.— Thomasville looks to use new advertising and its first published set of standards for store owners and sales representatives to ensure it consistently projects an upscale brand image as a home authority. The company's new ad agency, The Martin Agency, is developing a campaign that will debut nationally next year.
Guest Cottage launch set for '04
Yarmouth, Maine— North Carolina upholstery maker C.R. Laine will manufacture and sell a line designed and licensed by Maine Cottage called Guest Cottage, due to hit retail early next year along with a consumer catalog. C.R. Laine, which makes the Maine Cottage upholstery line, will be responsible for selling Guest Cottage through its sales force.
Giacomelli named VP at Divania
Modugno, Italy— Massimiliano "Max" Giacomelli, a 10-year industry veteran, has joined Italian leather producer Divania as vice president of international sales and marketing. Giacomelli, who reports to Severio Parisi, president, is responsible for developing marketing and design programs to fit specific foreign marketplaces.
Ross buys Burlington, says debt cut drastically
Greensboro, N.C.— One-time textiles giant Burlington Inds. has emerged from bankruptcy and has been acquired by investment firm WL Ross & Co. for about $614 million. Ross immediately sold Burlington's Lees carpet division to Mohawk Inds. for $350 million. Burlington, carrying massive debt and pummeled by foreign competition, filed for bankruptcy protection in November 2001.
Ross group fighting dumping
New York— Financier Wilbur Ross is a staunch defender of American jobs in the face of what he considers unfair international trade practices. In September, Ross, who has acquired textile producer Burlington Inds. and hopes to acquire Cone Mills, organized the Free Trade for America Coalition, or FREETAC, and now chairs the 42-member group.
Furniture Express opens first leather and bedding shop
Royal Oak, Mich.— Furniture Express, a fast-growing chain of promotional and midpriced stores, has opened the first in a series of new leather upholstery and bedding shops here. A second unit of The Mattress & Leather Place will open in Troy, Mich., within a month, and the company intends to have as many as six operating by the end of 2005 as it looks to build its Detroit-area market ...
ChosnFriends adds factoring services
High Point— Furniture industry consultant ChosnFriends has begun offering factoring services, mainly to importers and small manufacturers, through a subsidiary, Port Capital Partners. Port Capital, based here, has been in existence for about two years, providing logistics and administrative support for furniture importers.
Leahy gets fabrics post at Waverly Lifestyle
New York— Tom Leahy has joined Waverly Lifestyle Group as vice president, fabric. He replaces Arthur Friedman, who has left the company, and reports to Dale Williams, president and general manager of the Waverly Lifestyle Group. Leahy is responsible for fabric sales to independent retailers, manufacturers, jobbers, furniture, export and Canada.

Opinion Today

Antidumping: Industry's most divisive issue ever
In the Proposed Duties on Chinese bedroom furniture, the furniture industry faces its most divisive issue ever. Nothing else, not the 1-800 retailers or the flammability debate or the rise and fall of market venues, has created such an us-versus-them atmosphere. While we try to imagine how the duties themselves might change the industry, we also wonder about the long-term effects of the hard fe...

People Today

Lane promotes Files to advertising director
Tupelo, Miss.— Morgan Files has been promoted to director of advertising at Lane Home Furnishings. Files has been with Lane since 1997, when she joined the company as associate merchandising manager for recliners. She was promoted in 2001 to advertising manager. "Morgan has done a great job as advertising manager and will certainly be an asset to Lane in her new role," said Skipper Hollim...
Niroflex appoints Glasgow sales mgr. for Giovanni line
High Point— Bob Glasgow has joined Brazilian leather upholstery maker Niroflex as sales manager for Giovanni Leather, its new U.S. warehouse division. He had been general manager for Gonzalez & Associates' wholesale and retail operations. In his newly created position at Niroflex, Glasgow oversees the distribution and delivery of the Giovanni Leather collection.
People on the Move
People on the Move
MARKETING/SALES Guardsman Grand Rapids, Mich. — Guardsman, a supplier of furniture protection products and a business unit of Valspar, has made two staff additions. Anne Kik has joined the company as marketing manager of the field services group. Kik has spent the past seven years in the contract furniture industry.

Special Report

Alternate channel sales near $20 billion a year
Sarasota, Fla.— A lot of furniture that gets sold isn't sold by furniture stores. In fact, there are 70 or so alternate channels of distribution that rack up retail sales of almost $20 billion annually, almost a third of all U.S furniture sales. Non-traditional channels have grown at a compounded annual rate of 9% over the past decade.
AFMA seeks $20-30 million for advertising initiative
Sarasota, Fla.— It was sidelined this year because of the import antidumping issue, but a home furnishings advertising initiative spearheaded by the American Furniture Manufacturers Assn. is back in the "go" mode again. The AFMA's goal is to raise $20 million to $30 million for a multi-year campaign.
Prillaman honored for distinguished service
Sarasota, Fla.— Stanley Furniture Chairman Albert Prillaman received this year's American Furniture Manufacturers Assn. Distinguished Service Award. "He entered the industry at the ground floor and ascended through the ranks based purely on his ability and tenacity," said La-Z-Boy Chairman Pat Norton, who presented the award.
AFMA guests party in style
Sarasota, Fla.— It was a black-tie affair as members of the American Furniture Manufacturers Assn. and their spouses mingled at a cocktail reception before the trade group's annual awards dinner.
Shoppers focusing more on quality and durability
Sarasota, Fla.— Consumers have dramatically changed their feelings about furniture buying in the past five years, according to study commissioned by the American Furniture Manufacturers Assn. It showed that people are "nesting" more — focusing on their homes — for feelings of security of safety than they did in 1998, and are emphasizing quality and durability more when they bu...
Spain's producers gear up
Valencia, Spain— Spanish furniture manufacturers are investing in new capacity, upgraded finishes and new styles to expand their business beyond traditional markets in Europe and the Middle East. Some also have begun to outsource components from local sources or from the former Soviet-bloc countries, where manufacturing costs, especially for labor, are lower than in Western Europe.
Upholstery factories boosting capacity
Yecla, Spain— Two of Spain's top upholstery producers are expanding their production facilities here, hoping to capture more of a growing domestic and export business. Granfort, Spain's largest sofa manufacturer, is about ready to move into a sparkling new plant that will consolidate nine aging buildings.
Casual dining on the rise
High Point— The casual dining category is growing with the addition of new, complementary pieces. Once the kid brother to formal dining, casual dining now covers much more than dinettes and baker's racks. The tables and chairs come in many styles and are surrounded by a growing assortment of pieces, such as small chinas and buffets, wine racks and servers.

Store Openings

Pedrojetti's has Natuzzi gallery
Medford, Ore.— Pedrojetti's Fine Leather here has opened a 3,500-square-foot Natuzzi gallery, featuring 19 seating groups in both leather and microfiber covers from the big Italian upholstery manufacturer. Joseph Pedrojetti, an owner of Pedrojett's Fine Leather, also owns Joseph Winans Furniture here, a 35,000-square-foot midpriced and high-end retailer.
In Home Furnishings expands
Natick, Mass.— In Home Furnishings has opened a 25,000-square-foot store here, replacing a 12,000-square-foot unit that opened in 1989. The Massachusetts retailer, an importer of English, French and other antiques and reproductions, also has opened a 10,000-square-foot store in Norwood that replaces an 8,000-square-foot location opened in 1989.
House of Denmark adds 6th unit
Holly, Mich.— House of Denmark has opened its sixth Michigan store on East Holly Road here. Store owner John Bech, a native of Denmark, launched the chain in 1962. The new Holly store is 15,000 square feet and is managed by Denise Evans. Key vendors include Ekornes, Benny Linden, Baronet, Flexsteel, Alf and Buus.
Rent Rite opens 90th in S.C.
Charleston, S.C.— Rent Rite, a privately held rental-purchase operator based in Boca Raton, Fla., has opened a 5,135-square foot store here, its first in the coastal South Carolina area. The rent-to-own chain has opened 90 stores in just over 60 months. Other South Carolina units have opened this year in Anderson, Columbia and Greenville.
Kemps launch 6th Aaron store
Columbus, Ga.— An 8,000-square-foot Aaron's Sales and Lease Ownership store has opened on Buena Vista Road here, owned and operated by Royal Rents. The Kemp brothers, Robert, Bruce and Gene, owners of Royal Rents, are part of a third-generation furniture family that has been in furniture retailing in Columbus for over 60 years.
Three stores join Ohio mall
Jeffersonville, Ohio— Three home furnishings stores have opened in the HomeWorks mall here off Interstate 71 and State Route 41. Kulpsville Antiques and Collectibles offers 6,360-square-feet of antiques and other unique items. North Carolina Furniture Direct is in a 16,000-square-foot space. The store sells brand-name furniture to consumers, interior designers and other retailers at disco...

Supplement

2003 Bedding Yearbook
Producers share views on sales performance
High Point— By their own accounts, leading bedding producers enjoyed solid years in 2002. All of the Top 10 producers reported sales increases last year, ranging from a modest 0.3% gain at Serta to a stellar 12.1% increase at Spring Air, according to the companies themselves. (Furniture/Today's estimate put Spring Air's gain at 9.
2003 Bedding Yearbook
Warehouse clubs big winner in bedding distribution survey
High Point— Warehouse clubs are rising fast. Bedding specialty stores remain on the ascent. And furniture stores and department stores are losing ground. These are some of the highlights of the latest Furniture/Today survey of bedding's retail channels of distribution. The survey documents the retail bedding climate as it stood at the end of 2002.
2003 Bedding Yearbook
About the numbers
High Point — Furniture/Today's exclusive Bedding Distribution Report reveals 2002 bedding market share broken out by six channels. The Top 10 bedding producers were asked to estimate 2002 retail bedding sales. Estimates were averaged and weighted to reflect the relative market share of each producer.
2003 Bedding Yearbook
Damant: Flammability issues demanding immediate attention of bedding producers
Nashville, Tenn.— Bedding manufacturers should devote their immediate attention to mattress flammability issues, a leading flammability consultant said at an industry meeting here in September. Gordon Damant, who works for Inter-City Testing and Consulting Corp. and is a consultant to several sleep products groups, had some frank advice for mattress makers.
2003 Bedding Yearbook
Underwriters Labs offers mattress flammability testing
Northbrook, Ill.— Underwriters Laboratories has joined the growing field of companies offering flammability tests on mattresses. The testing lab, based here, is one of about half a dozen U.S. labs capable of conducting tests for California's proposed stringent mattress flammability standard known as Technical Bulletin 603.
2003 Bedding Yearbook
Sleep Council sets four workshops on flammability for February '04
Nashville, Tenn.— Bedding producers pondering how they will comply with stringent new open-flame mattress standards will be getting some practical help on that issue early next year. The Sleep Products Safety Council, a bedding industry group that focuses on product safety issues, has set four flammability workshops for February 2004.
2003 Bedding Yearbook
The ins and outs of mattress flammability
While many key decisions on new open-flame mattress standards have yet to be made, the outlines of the flammability issue are becoming clear. Activities are occurring on a number of fronts. The issue is "heating up," industry observers say. Next year will be pivotal on the flammability front. Here's a look at some of the key questions confronting the bedding industry.
2003 Bedding Yearbook
Key flammability terms
AB 603: Stands for California Assembly Bill 603, signed into law on Aug. 12, 2001. It mandates that California adopt an open-flame residential standard for mattresses and box springs by Jan. 1, 2004. It also requires California officials to mandate open-flame standards for bedclothes (pillows, quilts, bedspreads and comforters) if they determine bedclothes contribute to bedding fires.
2003 Bedding Yearbook
High-end Sealy, Spring Air brands enjoy double-digit sales increases in 2002
High Point— High-end brands marketed by Sealy and Spring Air enjoyed double-digit sales gains last year, while Serta's high-end brand lost ground. Those are the highlights of a close look at the major brands in the portfolios of three of the industry's four largest producers. The big news at Sealy was a phenomenal year registered by the Stearns & Foster brand, up an estimated 20% to $...
2003 Bedding Yearbook
Sealy posts another strong year in 2002
High Point— Bedding sales leader Sealy posted another strong year in 2002 and boosted its market share over several rivals, according to Furniture/Today's exclusive survey of the Top 10 U.S. bedding producers. Meanwhile, No. 4 Spring Air posted the biggest sales gain among the major producers, and King Koil pulled ahead of Therapedic for the No.
2003 Bedding Yearbook
Consumers boosting spending on luxury bedding
High Point — Consumers are demonstrating a growing appetite for high-end bedding. Furniture/Today's latest Consumer Buying Trends Survey, completed earlier this year, found that a total of 16% of U.S. households spent $1,000 or more for a bed in 2002. The breakdown: 10% of the households reported spending from $1,000 to $1,499 on bedding, while 6% reported spending $1,500 or more.
Global Textiles Today
Performance fabrics making big waves
High Point— Performance fabrics — from the upscale originals like Ultrasuede to new-to-residential upholstery processes like Microban — were a major presence at the International Home Furnishings Market here last month. Thomasville made the biggest splash with Extreme Fabrics, a performance fabric collection featuring Crypton, Sunbrella, Microban, Ultrasuede and Sensuede.
Global Textiles Today
Soft hand, vibrant colors drive sales
High Point— This was the year of microfiber suede. Although chenille remained the top-selling upholstery cover for most manufacturers in 2003, fabric buyers continued to look for alternatives, and microfiber suede was the alternative of choice for many. Solid-color suede fabric holds the top slot at manufacturers such as Norwalk and PeopLoungers and will probably move into that position f...
2003 Bedding Yearbook
Select Comfort tightens grip as top retailer
High Point— Air bed producer and retailer Select Comfort has lengthened its lead over the rest of the field in Furniture/ Today's latest ranking of the Top 25 U.S. bedding retailers. The annual report puts Minneapolis-based Select Comfort comfortably on top in the competitive bedding marketplace, with bedding sales last year of $311.
2003 Bedding Yearbook
Flammability timeline
1970: California legislature enacts legislation requiring all mattresses sold in the state to be fire retardant. Early 1970s: The bedding industry works with the U.S. Consumer Product Safety Commission to develop the first federal standard on mattress flammability. 1973: The Federal Mattress Flammability Standard is passed.
2003 Bedding Yearbook
Three groups — one mission
The symphony that is the bedding industry reflects the melodies composed by three different groups. Each plays its own unique notes, but together they make sweet music. The tune starts with the bedding producers, who skillfully combine a wide variety of materials into the rectangles that provide years of comfort.
2003 Bedding Yearbook
Testing labs burn the midnight oil
High Point— Mattress flammability is a growth industry for testing labs, which are burning the midnight oil as they set fire to a steadily increasing number of beds. "Sometimes we have to work night-shifts," admitted Chip Haby, manager of tunnel and furniture testing services at Omega Point Laboratories, one of the busiest flammability labs in the country.
2003 Bedding Yearbook
Key testing resources
High Point — Need to burn up a mattress or two to see if you can comply with California's proposed mattress flammability standards? Producers who face that burning question have several options. There are at least half a dozen labs in the United States that have a dual burner developed by the National Institute of Standards and Technology (NIST), an arm of the U.
2003 Bedding Yearbook
Basofil gears up for FR fiber push
Enka, N.C.— At a sprawling industrial park in this mountain community just outside Asheville, N.C., McKinnon-Land-Moran is quietly building its inventory of flame-resistant Basofil fibers. The multi-million-dollar, sophisticated operation here went on line in 1996 and is now adding about $500,000 in finished goods inventory each month.
2003 Bedding Yearbook
New rules offer opportunity to sell safety
Durham, N.C.— The bedding industry's initial reluctance to embrace improved mattress flammability protection is not surprising to someone who has seen the scenario play out in other industries. "It's a fairly classic industry response to legislative change," said Terry O'Regan, North America sales manager for Freudenberg, a supplier of FR materials.
2003 Bedding Yearbook
Majors enhancing high-end offerings
High Point— Bedding's Big Four producers are taking their competition to another level — $1,000 and up. With the recent launch of Windsor Bedding Co., Simmons officially began a major push into the luxury bedding arena, which is growing increasingly crowded. Each of the industry's four largest bedding producers — Sealy, Serta, Simmons and Spring Air — now has a separate ...
2003 Bedding Yearbook
How sales associates sell high-end bedding
To sell high-end bedding, you must show high-end beds to the consumer. Sounds simple, but that's what top bedding sales associates around the country said when Furniture/Today asked them for some of the keys to their success in selling high-end bedding. Admittedly, there's no great secret here. But actually selling beds for more than $1,000 when there are a number of much less-expensive beds on...

Up Front

Market group gets $50K
High Point— The International Home Furnishings Market Authority has received a $50,000 marketing grant from a North Carolina fund established with money from the state's settlement with the tobacco industry. Market Authority President Judy Mendenhall said the grant will be administered by the High Point Economic Development Commission, which in turn will funnel the money to the Market Aut...
Chromcraft taps Talley
Senatobia, Miss.— Rik Talley has been named vice president of sales and marketing for casual dining specialist Chromcraft, succeeding Greg Coyle, who left to pursue other interests. Talley joined Chromcraft in 1991 as vice president of sales and marketing in its contract division and added the residential division to his duties earlier this year.
Select Comfort aids fire victims
Minneapolis— Airbed manufacturer and retailer Select Comfort is offering special discounts to victims of the Southern California wildfires. "Select Comfort employees ... want to help victims restore their homes and communities," said Bill Brevoort, regional director for Select Comfort. "We hope that getting a good night's sleep will help families manage the stress of rebuilding.
NHFA continues legacy of service
High Point— With 2,750 members representing 10,000 storefronts, the National Home Furnishings Assn. is one of the largest trade groups in home furnishings. It plans to retain that status by continuing a legacy of service that began when it was formed in 1919 with a core group of five retailers.
Alan Rosenberg dies at 54
Woodbury, N.Y.— Retailer Alan Rosenberg, who led Seaman Furniture out of bankruptcy in the early 1990s and onto a growth track, then tackled a similar task at struggling Levitz, has died after a short illness. He was 54. Rosenberg was chief executive officer of Levitz Home Furnishings Inc., parent of 76-store Levitz and 53-store Seaman's.
Retailers cut ties over petition
Columbus, Ohio— Top 100 stores American Furniture Warehouse and Value City Furniture/ American Signature Home have cut ties with domestic manufacturers supporting the antidumping petition against China. "There's no question that doing business with these folks is over," said David Thompson, president of American Signature, parent of 80-store Value City and 15-store American Signature Home.
Coalition scores victory with China textile quotas
Washington— A coalition of U.S. textile groups scored a victory last week when the government decided to impose temporary quotas on three types of textile imports from China. The coalition filed petitions in July asking the government to implement the "textile safeguard," a provision that allows the United States and other World Trade Organization members to impose temporary quotas on tex...
Govt. extends deadlines on questionnaires
Washington— The Department of Commerce and the International Trade Commission have extended deadlines for the industry to turn in questionnaires related to an investigation of wood bedroom furniture imports from China. But the ITC still held its first public hearing on the matter last Friday. The Commerce Department has invoked an extension that gives it until Dec.
Mattress regs in limbo?
Sacramento, Calif.— The mattress flammability issue took an unexpected turn last week when new California Gov. Arnold Schwarzenegger issued an executive order suspending all pending regulatory actions for up to 180 days. Officials of the International Sleep Products Assn. said the order could affect the California Bureau of Home Furnishings' plans to begin enforcing its pending mattress f...

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