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Furniture|Today > Archives > 02/09/2004 Issue
Table of Contents
Furniture|Today -- 02/09/2004

Bedding Today
  • Major story on sleep misses bedding's key role
    We just don't get any respect. That's the conclusion I've reached in the wake of a lost opportunity for the bedding industry. This sort of thing has happened to us before — too many times, in fact — but it's still alarming when it happens on a grand scale. Call it a wake-up call. When I saw the cover story in the Jan.

Business Today
  • Pier 1, Havertys, Bombay score Jan. revenue gains
    FORT WORTH, Texas— Three publicly held furniture stores reported revenue gains in January, although only Havertys scored an increase in same-store sales. The largest retailer, Pier 1 Imports, based here, reported a 7% revenue increase to $125.3 million for the month, compared with January 2003.
  • Flexsteel 2Q sales jump 48.3%
    DUBUQUE, Iowa— Upholstery manufacturer and case goods importer Flexsteel Inds. said sales in its second quarter ended Dec. 31 were up 48.3% from the prior year to $109.1 million, as net income increased 36.1% to $3 million. The figures include operating results of DMI, which Flexsteel acquired in September 2003.
  • Rent-Way's same-store revenues up 6.6% in 1Q but net loss mounts
    ERIE, Pa.— Rent-Way executives said they were pleased with a 6.6% same-store revenue gain and higher operating earnings in the first fiscal quarter, although the rent-to-own chain reported a larger net loss after accounting adjustments. "Our strategy of focusing on top-line growth to drive operating profits higher is beginning to take hold," said William Morgenstern, chairman and CEO of t...
  • Fourth qtr. revenues flat for Sears Canada
    TORONTO— Sears Canada, the country's largest retailer and No. 1 furniture and bedding merchant, said fourth-quarter revenues remained virtually flat with last year's final period at C$2 billion, as earnings dropped 32.4% to C$96.9 million. Excluding non-comparable items, earnings in the quarter rose 7.
  • Culp prepays large chunk of outstanding senior notes
    HIGH POINT — Fabric supplier Culp has prepaid $25 million of its $75 million in outstanding senior notes, strengthening its balance sheet and saving interest costs. Although closing costs will result in a charge of $1.6 million in the fiscal third quarter, Rob Culp, chairman and CEO, said the company will save about $1.

News
  • NHFA plans mgr. institute March 7-10
    HIGH POINT — The National Home Furnishings Assn.'s Center for Professional Education will hold its Management Development Institute March 7-10 at High Point University. MDI is a program that prepares new managers for more responsibility in their current jobs, and for future managerial positions.
  • Bumgarner to join FMCA as EVP
    HIGH POINT— Jim Bumgarner will join the Furniture Manufacturers Credit Assn. as executive vice president Feb. 23, leaving his post as president of factoring firm The Joseph Dean Co. He replaces the retiring Barry Wood, ending a search for a top executive for the FMCA that was frustrated by the abrupt departure of Wood's first replacement last summer.
  • Joseph Dean Co. taps Apple
    ARCHDALE , N.C.— Derick Apple has been promoted to president of The Joseph Dean Co., effective Feb. 23. He joined the factoring company in 1990 as regional credit manager and has been vice president of credit since 1996. He replaces Jim Bumgarner, who will become executive vice president of the Furniture Manufacturers Credit Assn.
  • YHFE, WithIt examine leadership
    GREENSBORO, N.C.— The Young Home Furnishings Executives and Women in the Home Furnishings Industry Today joined forces last week for a two-day leadership training conference here led by Staub Leadership Consultants.
  • Klein to succeed Kahn at Macy's East
    NEW YORK— In a move that surprised the retail and manufacturer community, Federated Department Stores said last week that Hal Kahn, the top executive at Macy's East, will step down Feb. 15 and will be succeeded by Ron Klein. Kahn, 58, has been chairman and CEO of the $5 billion Macy's East, the largest Federated division, since 1994.
  • Obituaries
    Obituaries
  • Simmons shifts sales, marketing execs
    ATLANTA— Simmons has made a series of organizational changes at its headquarters here that it says are designed to position the company for continued growth. One senior executive has taken on additional responsibilities, while two others are filling new positions. Kevin Damewood has been promoted to senior vice president of sales and marketing, from senior vice president of sales.
  • Ortho Mattress acquires 10 Warehouse leases
    CERRITOS, Calif. — Ortho Mattress has acquired the leases on 10 Mattress Warehouse stores in Tennessee, Kansas and Missouri, giving the bedding specialty chain its first stores outside California and a base for further Midwestern expansion. The company, with 37 stores in Southern California, acquired eight stores in the greater Nashville area as well as a store in Kansas City and another...
  • Corrections & amplifications
  • Drexel store debuts in Westchester County
    HARTSDALE, N.Y. — Drexel Heritage has come back to affluent Westchester County with the opening of a 16,000-square-foot store here. Drexel's 38th unit, the store on South Central Avenue soft-opened in late December and may become one of the top performers in the licensed network. The grand-opening event last week drew Drexel Heritage executives as well as Mickey Holliman, chairman and CEO...
  • Pa. House stops shipping some New Standards DR
    LEWISBURG, Pa.— Pennsylvania House has stopped shipping several dining pieces from New Standards, a hit introduction from the April 2003 High Point market, because of early veneer checking and construction problems on some chairs. The good news is that the problems arose quickly enough after floor samples arrived at dealers in December that the product didn't have time to reach consumers...
  • Invista taps more execs
    WICHITA, Kan.— More executives have accepted positions at Invista, formerly DuPont Textiles and Interiors, pending the completion of its acquisition by subsidiaries of Koch Inds. Steve Kromer will be senior vice president, strategy, sourcing and business development. He joined Koch in 1982 and is currently managing director of corporate business development.
  • Rebound really here?
    SAN FRANCISCO — The winter market here concluded on an upbeat note as exhibitors praised the show's new schedule and retailers reported improved business conditions. Traffic was moderate throughout the show's four-day run, but most exhibitors said they were pleased with order-writing and felt it could be a sign that the long-awaited furniture industry rebound may actually occur in 2004.
  • Rent-A-Center acquiring Rainbow
    Plano, Texas— Rent-A-Center, the nation's largest rent-to-own operator, is getting even bigger with the acquisition of Rainbow Rentals for more than $100 million. With the acquisition, pending government approval and expected to close in the second quarter, the RTO leader will pick up Canfield, Ohio-based Rainbow's 124 stores in 15 states and $100 million or more in annual revenues.
  • Blood drive set for Tupelo
    TUPELO, Miss.— Lives can be saved if marketgoers respond to a blood drive during the Tupelo Furniture Market this month. Marty Libowsky, a sales representative who started an industry charity group called the 100 Angels Foundation, put his considerable energy into promoting blood donations after his own life was saved by donated blood when he fell critically ill during the April 2003 High...
  • Registration for IWF now open on show Web site
    ATLANTA— Online registration is open for the International Woodworking Machinery & Furniture Supply Fair here, set for Aug. 26-29. To register, go to www.iwf2004.com . Anyone signing up in advance can save $15 off the at-the-door registration fee of $25 and will receive a badge in the mail in advance of the show.
  • Smith sleeper features Serta
    WACO, Texas— Upholstery maker Smith Furniture is offering a line of sofa-sleepers with Serta innerspring mattresses. President Harry Smith said his company signed a licensing agreement with the major bedding maker just before the October market but didn't have time to get a promotion under way.
  • Mattress Giant, vendors linked via FurnishNet
    ADDISON, Texas— Top 5 bedding retailer Mattress Giant has connected with its vendors through FurnishNet's Internet-based transaction management system. With over 250 stores in 14 states, Mattress Giant has begun electronically processing purchase orders and other transaction documents via the Internet.

Opinion Today
  • The exceptional lives of our industry's leaders
    On occasion, my wife and I take a moment to recall our travels and remember the extraordinary experiences we have enjoyed. Trust us, when we were married 34 years ago, we had no idea we would visit several continents and have friends around the globe. From dining with the mayor of Hong Kong to being invited to the White House is quite a ways from Mildred's Meals, which is near our hometown of 1...
  • 'Realistic' ways to solve our image problems (?)
    If you're in the furniture business, you know we've got an issue with our image. Let's be honest: When consumers compare retail salespeople to pit bulls and swear they would rather have a root canal than shop for furniture, it's time to make changes. Not that we haven't tried. We've spent years struggling to enhance our industry's visibility and image.
  • Fancy words for pushing down prices
    Welcome to the world of monopsony! Don't know what that is? Neither did I till I read The Wall Street Journal a week or so ago and found out that many of the things we've been talking about in recent years apparently has a name that sounds like a major dread disease. It seems we've been calling it the Wal-Mart disease, aka retailer abuses, chargebacks as profit centers, the deflationary impact ...

People Today
  • Lane promotes one, hires two
    TUPELO, Miss.— Lane Home Furnishings has promoted one person and hired two. Paula Melton has been promoted to communications and e-business manager. She joined Lane in May 2003 in the new post of e-business manager, and will continue to oversee the consumer Web site, adding responsibilities for all public relations at Lane, a unit of Furniture Brands International.
  • People on the Move
    People on the Move
    EXECUTIVES Sears HOFFMAN ESTATES, Ill. —Roger Detter has been named senior vice president and general merchandise manager of home fashions, hardware, paint, lawn and garden, automotive and recreation at Sears. He previously was vice president and GMM of Sears' full-line stores in the Western region.

Special Report
  • Cologne Report
    Club 8 wins kudos for BoConcept stores
    COLOGNE, Germany— Danish ready-to-assemble furniture maker Club 8 had plenty to celebrate at the Cologne market — an international award for its BoConcept retail network and the grand opening of a BoConcept store here. BoConcept received the Mapic Award for the most innovative retail concept in the household goods and electronics category.
  • Cologne Report
    La-Z-Boy Europe tightens market focus, broadens line
    COLOGNE, Germany— La-Z-Boy Europe showed a broader product line and a tighter market focus at last month's market here to help spur business with the continent's retailers. The two-year-old joint venture pairs La-Z-Boy's brand, marketing and product development expertise with the production capability and market familiarity of big German manufacturer Steinhoff.
  • Cologne Report
    Activity strong for U.S. exhibitors in Cologne
    COLOGNE, Germany— U.S. exhibitor participation in the furniture market here remains low, but those companies that did show reported strong interest despite continued difficulty in European retailing. With the euro at record strength against the dollar, traffic at U.S. stands here was particularly heavy.
  • Market Report
    Armen Art debuts Chinese-made leather industry
    SAN FRANCISCO— Importer Armen Art introduced a line of Chinese-made leather upholstery here. The promotional Prince Collection joins Armen Art's line of better Italian leather seating, entertainment centers and marble and stone case pieces. "We are still an Italian importer selling high-quality Italian products," said Kevin Kevonian, chief financial officer for Armen Art, based in North H...
  • It's how we live: Formal dining is going to pieces
    HIGH POINT— Even as formal dining remains a mainstay on retail floors, suppliers keep tweaking the category's piece selection to accommodate changing consumer preferences. Looks in formal dining still lean heavily toward traditional, but these days a credenza is nearly as likely to show up on a retail ticket as a full china.
  • Market Report
    Casual dining reaches for new options
    SAN FRANCISCO— Casual dining is a growing category for many manufacturers, and the tables themselves are growing with a variety of expansion options. Counter-height dining continues to be a hot niche, but table leaves were a popular topic at the just-concluded market here. Some manufacturers said they are offering more leaf tables because of customer demand.
  • Market Report
    Motion mfrs. play it safe
    SAN FRANCISCO — Encouraged by signs that 2004 could be the year of the rebound, producers of recliners and motion furniture largely stuck with established product as they met with dealers here. Producers said order trends have been positive in the early weeks of the new year, but having been stung by several previous faux rebounds, no one was ready to say the industry's long retail sale...
  • Cologne Report
    Strong euro in spotlight at Cologne
    COLOGNE, Germany— Two years ago here, natives and visitors alike gazed quizzically at the brand new euro bills and coins, trying to translate them into more familiar marks, francs and dollars. At the time, the euro was worth about 90 U.S. cents. This year, its value approached $1.30. The surging currency has complicated matters for exporting companies here.
  • Market Report
    New San Fran moves pay off in wood
    SAN FRANCISCO— Despite buyer traffic described as spotty to adequate, case goods exhibitors rated the winter market here a considerable improvement over the winter 2003 edition. Companies venturing into new product directions and categories reported strong acceptance from dealers anticipating a better year in 2004.
  • Market Report
    China BR sources set backup plans
    SAN FRANCISCO — Companies importing bedroom from China are setting up contingency plans in case an antidumping petition filed by a group of U.S. companies is successful. The earliest any preliminary duties would be imposed looks to be late April, but some exhibitors at market here said they already have plans in place.
  • Market Report
    Get ready for duties, cool the rhetoric, Epperson advises
    SAN FRANCISCO— Get ready for duties, worry about relevant issues, and tone down the rhetoric. That's the gist of industry analyst Jerry Epperson's take on the antidumping petition targeting wood bedroom from China. Epperson, managing director of Mann, Armistead & Epperson, said in a presentation at the market here that debates on the issue have generated more heat than light.
  • Market Report
    Upholstery producers ratchet up intros
    SAN FRANCISCO— Growing business at factories and increasing enthusiasm at retail prompted a heavier-than-usual introduction of stationary upholstery product and programs here. Manufacturers, especially Western regional producers who see San Francisco as their main event, filled showrooms with new frames, new price points and new colors.
  • Market Report
    Cisco, Lazar beef up lines targeting new demographics
    SAN FRANCISCO— Two Los Angeles-based upholstery companies have established lines aimed at new demographic groups and new distribution. Cisco Bros., a manufacturer of upper-end upholstery, introduced 24/7 Living at market here, offering 20 frames, eight styles, 50 fabrics and two leathers in a price point that is almost half that of its regular line.
  • Market Report
    Youth stretching to lure teens
    SAN FRANCISCO — Youth furniture makers that showed at the market here are offering designs that seek to reach teens while holding on to younger children. Several producers over the past year have sought to attract older kids with more sophisticated goods that could accompany them to college — and furnish second bedrooms, guest rooms and second homes.
  • Market Report
    Leather resources showcase cut-and-sew programs
    SAN FRANCISCO— Cut-and-sew programs made strong showings in leather upholstery showrooms here. With leather from South America or China, such manufacturers as Lane, Broyhill, El Ran and Flexsteel offered smart upholstery derived from cut-and-sew. Such programs cut costs by pushing the labor-intensive cutting offshore, while still allowing manufacturers to control quality by assembling the...
  • Market Report
    San Fran parties liven up market
    SAN FRANCISCO— There were plenty of chances to catch up on the latest market news at the party here hosted by Furniture/Today and the San Francisco Mart. Retailers and exhibitors packed the ninth floor room in the Mart 1 building for the cocktail party, which was sponsored by Emerald Home Furnishings and the California Furniture Manufacturers Assn.
  • Market Report
    Specialty bedding moves front and center in San Fran
    SAN FRANCISCO— Specialty bedding stole the show at the market here, with introductions including a slew of visco-elastic mattresses and futons, a new entry in the airbed category and several foam mattresses. Bedding major Simmons made news on the innerspring front, introducing its new Cable Coil design on the West Coast.
  • Market Report
    Restonic offers first airbeds
    SAN FRANCISCO— Top 10 bedding producer Restonic is entering the airbed category with a two-model line. The company unveiled its "better" Distinct Comfort model and "best" Distinct Rest number at the San Francisco market, with both models featuring individual air cushions on top of a layer of innerspring coils.
  • Market Report
    Hiddenbed meets office, sleeping space needs
    SAN FRANCISCO— It's a home office. A moment later it's a comfortable place to sleep. That's the dual function offered by the new HiddenBed, introduced here by Wallbeds. Space-squeezed consumers will like the way the compact unit enables them to stretch their working and living space, said John McNeill, president of Resource Associates, the Petaluma, Calif.

Store Openings
  • Broyhill unveils Showplace galleries in Ohio and Conn.
    LENOIR, N.C.—Broyhill Furniture has installed two galleries in stores in Ohio and Connecticut. Rettig Brothers has a 12,500-square-foot Broyhill Showplace gallery in its 60,000-square-foot store in Findlay, Ohio. Family-owned and operated, Rettig was established in 1981 and is owned by Tony Rettig.
  • La-Z-Boy launches Ind. unit
    LAFAYETTE, Ind.—La-Z-Boy has opened a La-Z-Boy Furniture Galleries store here on State Road 26 East. The new 15,586-square-foot store is co-owned by Michael Kaplan and Ellie Kaplan, and offers a full selection of La-Z-Boy furniture, accent pieces and a design center.
  • USA Baby opening 3 stores
    ELMHURST , Ill.—USA Baby, a retailer of infant and children's furniture and accessories, is opening three franchised stores in New York, New Mexico and Nevada. Julia Florio is the owner of the Amherst, N.Y., unit, set to open in February in the Buffalo suburb. In Albuquerque, N.M., owners Tim and Ann Locke have opened a store on Montgomery Boulevard.

Up Front
  • Inaugural IFAM hits Vegas
    LAS VEGAS— As with any new trade show, The International Furniture and Accessories Marketplace was a gamble for exhibitors showing in Las Vegas for the first time. For some, the gamble paid off during the event, which ran from Feb. 4-6 at the Las Vegas Convention Center. Put on by Bentley International Group, IFAM attracted about 200 home furnishings, outdoor furnishings and accessories e...
  • Henredon taps McKee as president, COO
    MORGANTON, N.C.— Henredon has promoted Steve McKee to president and chief operating officer, with Michael Dugan remaining CEO and taking the new title of chairman. McKee, 51, a retailing veteran, joined the high-end manufacturer and importer in February 2002 as executive vice president of sales and marketing.
  • McGuinnes resigns as Ekornes USA president
    SOMERSET, N.J.— Kevin McGuinnes, president of Ekornes USA, has resigned. He had headed the Norwegian company's U.S. operations since 1985. Ekornes, which makes upper-end reclining chairs and sofas for the U.S. market, said a successor would be named in several weeks. Until then, the U.S. unit will be supervised by Svein Lunde, who also oversees Ekornes operations in the United Kingdom, so...
  • Flexsteel promotes two
    DUBUQUE, Iowa— Flexsteel has promoted two longtime employees in realigning its residential furniture national sales team. Lee Fautsch has been promoted to national sales manager for the manufacturer, from regional sales manager for the North Central territory. Earlier, he was East Coast regional sales manager.
  • GERS makes staff changes
    SAN DIEGO— Software provider GERS Retail Systems has hired a new vice president and promoted two of its executives. John Sailer has joined GERS as vice president of strategy and solutions, a newly created position. He is responsible for leading the company's marketing strategy, business consulting, and business development functions to ensure consistency between the company's business str...
  • Kellar joins Furniture/Today
    HIGH POINT— David Kellar has joined Furniture/Today as regional sales manager for the Southeast territory, including Alabama, Florida, Georgia, South Carolina and southern Virginia. He most recently was president of Snug Harbor Specialties, a premiums company in Winston-Salem, N.C. Previously, he held management positions at Tasco Mfg.
  • Europeans have fun again
    COLOGNE, Germany— Exhibitors at the International Furniture Fair here last month said business activity at the show gave reason for optimism in 2004. With the exhibitor count up just slightly from last year and with uncertainty at retail, especially in Germany, few would have been surprised by a lackluster show.
  • In Paris, Maison sports loads of color
    PARIS— Loads of color — especially in the red to orange family in fabrics — unusual pieces in upholstery and some distinctive constructions in case pieces were design keys at Maison et Objet here last month. Almost as important as design directions was the renewal of the fun, fancy and whimsy that typically is seen in home furnishings shows at the upper end of the European mar...
  • DOC picks 7 Chinese producers to audit in antidumping probe
    WASHINGTON— The U.S. Department of Commerce will conduct detailed investigations of seven Chinese case goods manufacturers as part of its antidumping investigation of Chinese wood bedroom producers. Dongguan Lung Dong, Dorbest Group, Lacquer Craft Mfg., Markor International Furniture, Shing Mark Enterprise, StarCorp Furniture and Tech Lane Wood Mfg.
  • Federated centralizing home goods buying for five store divisions
    NEW YORK— In a sweeping move that brings central buying and merchandising of home goods to Federated Department Stores, the retailer last week announced the formation of the Macy's Home Store for all divisions except New York-based Bloomingdale's. The move, according to Terry Lundgren, Federated chairman, president and CEO, will strengthen the stores' ability to execute and market home f...

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