Furniture|Today 05/24/2004 Table of Contents

Table of Contents

Furniture|Today -- 05/24/2004

Bedding Today

Archdale or Trinity? Sealy HQ is hard to pin down
You would think the world's largest bedding maker knows where it is located. It does. Sort of. One end of Sealy Drive is located just inside the Trinity, N.C., city limit. The other end is located in Archdale. And Sealy's headquarters is located halfway down Sealy Drive, with a road that winds up to the buildings through a beautifully landscaped area.

Business Today

Foamex sales slide, loss narrows
LINWOOD, Pa.— Foam supplier Foamex saw sales in its first quarter ended March 28 slide 4.4% from the same period a year ago, to $313.6 million. Despite the decline, Foamex sharply narrowed its quarterly loss to $2.1 million from $10.4 million a year ago. Both quarters included income tax benefits, and the latest quarter included a $528,000 pretax restructuring charge.
O'Sullivan sales tumble 15.7% in fiscal third qtr.
LAMAR, Mo. — O'Sullivan Inds. Holdings, parent of flat-pack producer O'Sullivan Furniture, said sales for its third fiscal quarter ended March 31 were off 15.7% from a year ago to $73.2 million. The net loss for the quarter, including preferred dividends and accretion on preferred stock, grew to $8.
Valspar's 2Q earnings up 21.6%
MINNEAPOLIS— Second-quarter earnings for finish supplier Valspar surged 21.6% to $39.1 million, compared with $32.2 million a year ago. Operating income grew 16%, to $73.9 million. The earnings increase was coupled with a 13.6% increase in sales, to $638.4 million. Sales for the first six fiscal months of 2004 were up 10.

Insider's View

America's Backyard raises the bar in casual
I just returned from the grand opening of a terrific new store, "America's Backyard," in a suburb just north of Dallas. This is the first out-of-state store for Dino Luckino's "Georgia Backyard," and it is fabulous. All the larger summer and casual lines are together on one floor, and the quality of the accessorization and displays exceeded my expectations.

News

Two in new director jobs at Duralee
BAY SHORE, N.Y.— Robin Gordon has joined Duralee Fabrics as director of marketing, a new position for the upscale fabric source. She previously was director of marketing at Kravet Fabrics. At Duralee, Gordon will handle marketing for the company's Highland Court, Techstyle Contract, Suburban Fabrics and Duralee Fine Furniture lines.
DMSI buys Charles Keath home catalog
CHICAGO— Direct Marketing Services Inc. has purchased the home furnishings catalog Charles Keath for an undisclosed amount. The acquisition of Boca Raton, Fla.-based Keath "allows us to move into a more upscale, higher income and more mature customer base," said DMSI President David Milgrom. Under a licensing agreement, DMSI merchandises and produces home furnishings catalogs for Sears un...
RTA executive shakeups: White leaves top Bush job
JAMESTOWN, N.Y.— Dave White, who joined Bush Inds. two years ago, appears to be a casualty of the manufacturer's four-year swoon. White has resigned as president of Bush Furniture North America and is pursuing other opportunities. Rob Ayres, president and chief operating officer of Bush Inds., which filed for Chapter 11 bankruptcy protection in March, will assume responsibility for managi...
RTA executive shakeups: Rubbermaid exec Parker named CEO of O'Sullivan
LAMAR, Mo.— Richard Davidson, the top executive at O'Sullivan Inds. for eight years, has resigned. Robert Parker, previously chief operating officer for a Newell Rubbermaid division, succeeds him as president and CEO at the highly leveraged maker of ready-to-assemble furniture. He also joins the company's board of directors.
Big Lots to roll out furniture in West
COLUMBUS, Ohio— Big Lots will roll out furniture departments for the first time to eight Western states this year as part of a continuing expansion of one of its most productive categories. The departments, focused on ready-to-assemble furniture, will be added to about 180 stores in California, Nevada, Utah, Arizona, Colorado, Oregon, Washington and Idaho beginning this summer.
New division paying off for Padma's Plantation
BATAVIA, Ill.— A new division that sells private-label overstock goods to retailers is paying off for Padma's Plantation. Still in its first year, the Island Home division is generating a solid new revenue stream. In addition, it's building on Padma's reputation of being able to provide goods at highly attractive price points.
Ron Smith resigns as Alexvale VP
TAYLORSVILLE, N.C.— Ron Smith has resigned as vice president of sales and marketing at Alexvale, the upholstery division of Kincaid Furniture. Smith said his departure was prompted by the recent merger of Alexvale into Kincaid, which "created a redundancy on several levels. Kincaid has a pool of talented and dedicated individuals who will ensure that this transition is successful and I wi...
Gala raises over $10,000 for Red Cross
HIGH POINT— The Red, White and Blues Gala presented by Natuzzi Americas here this month was the first such fundraiser ever attempted by the local American Red Cross chapter, and the furniture industry helped make it a success. Natuzzi Americas was the major sponsor for the gala, which raised more than $10,000 to fund programs administered by the High Point-Thomasville Red Cross chapter.
Women can help industry change, WithIt speaker says
ATLANTA— Almost 100 industry leaders were on hand for WithIt's "Tools for Navigating our Changing Industry," a two-day educational conference held here this month at AmericasMart. Event sponsors included Garden City Furniture, Schnadig, Storehouse, Vaughan-Bassett Furniture, Zip:Design and AmericasMart.
Sauder adds Brazil facility
UBERABA, Brazil— With a launch date of June 1 and orders in hand from the recent Movesul show in Bento Gonçalves, Sauder Brazil is set to supply product catering to the South and Central American markets. Production at a leased 60,000-square-foot plant here begins this month. Sauder Brazil will initially produce 35 to 40 models, all adapting Sauder's construction and quality require...
Four Hands opens branch in Belgium
AUSTIN, Texas— Case goods importer Four Hands has opened its first European office in Brussels, Belgium, in hopes of capturing more of that market. The office opened March 1 in conjunction with Four Hands' appearance at the International Furniture Fair in Singapore. Officials chose Brussels based on its central location to the 10 countries the company hopes to serve.
Singapore group scouts High Point market
HIGH POINT — A group of government officials from Singapore toured High Point last month to gather ideas as they embark on a 20-year plan to create an International Furniture Zone in their island nation. The visitors included a government economic development representative and three planners with Jurong Town Corp.
Vaughan-Bassett offers financing to small stores
GALAX, Va.— In an effort to drive business to its key independent dealers, case goods manufacturer Vaughan-Bassett has introduced Triple Crown Financing in conjunction with CitiFinancial. The idea is to give independent stores access to the same financing rates enjoyed by major chains. "Large retailers have driven their top lines for years with financing," said Wyatt Bassett, executive vi...
New warehouse set for Brazilians
MIAMI— AFECOM, a consortium of 22 Brazilian furniture manufacturers of upholstery, case goods, entertainment, office and ready-to-assemble furniture, plans to expand its distribution center here. Within two months, AFECOM, an acronym for the Brazilian Assn. of Furniture & Furniture Components Manufacturers, will move from a 5,500-square-foot warehouse and showroom to a 36,000-square-f...
Heritage taps Feinblum
BETHPAGE, N.Y— Julius M. Feinblum Real Estate has been appointed real estate consultants to market the Heritage Investment Trust portfolio of properties to the furniture industry. Heritage owns 162 shopping centers in 29 states, encompassing more than 27 million square feet. Feinblum's task will be to market Heritage properties as potential furniture store locations.
Innovation reigns at ICFF
NEW YORK— Innovative materials and new techniques in furniture manufacturing were highlights of the International Contemporary Furniture Fair here last week. In addition to carbon fiber materials, new techniques in plywood and a variety of metals, there were a number of intriguing constructions using laser cutting for decorative effects, from metal to wood to fabric.
Suppliers trade show debuting in Brazil
SAO PAULO, Brazil— ForMóbile, a new international trade show for suppliers to the furniture industry, will debut Aug. 4-7 at the 753,000-square-foot Anhembi Exhibition Center here. Some 300-plus exhibitors are expected, including suppliers of raw materials, production equipment, components, hardware, and accessories and joinery.
Culp worked two years to establish China plant
GREENSBORO, N.C.— When it comes to investing in China, patience and persistence can be your best allies. That was the experience of fabric supplier Culp, which opened a finishing plant in a leased facility 30 minutes outside Shanghai in February. Today, the 65,000 square-foot building has 40 employees and provides finished upholstery fabric for U.
Karel adding to Fla. event
AVENTURA, Fla.— Karel Exposition Management is expanding close to home by adding another show to its Orlando venue. The new show is set for Jan. 28-30, 2005, in the Orange County Convention Center. Karel Exposition Management, the nation's largest producer of drive-in furniture and accessory markets, expects the additional show to be a sellout.
Horich Parks signs seven
BALTIMORE— Advertising ad agency Horich Parks Lebow has signed seven new home furnishings retail clients. Horich Parks Lebow will serve as agency of record, providing program planning, creative services, production and media buying for Knight Furniture, Dallas; John V. Schultz, Erie, Pa.; and Shofer's Furniture and Carpet Land, both of Baltimore.
Laura Ashley embraces performance fabrics
NEW YORK— The romantic English brand Laura Ashley is embracing performance fabrics this year with its new Performance Naturals and Simply Sunbrella lines, both available through Kravet Fabrics. The Performance Naturals feature a Teflon soil- and stain-release finish on a designer fabric collection of chenilles, boucles and jacquards in a natural palette of creamy white, pale beiges, taup...
Seminar: U.S. Companies should build factories in China
GREENSBORO, N.C.— U.S. furniture companies have an opportunity to set up manufacturing operations in China — if they are willing to make the investment. "My guess is that furniture makers in North Carolina should form a delegation to go into China to figure out a way not only to play defensive, but to play offensive," said Clarence Kwan, the managing partner of Deloitte & Touche...
Terry's stake in IHFC going to foundation
HIGH POINT— A foundation established by the late Randall Terry Jr. eventually will own the former High Point Enterprise publisher's minority stake in the International Home Furnishings Center. The shift, outlined in Terry's will, would ensure that at least a portion of the showroom complex remains locally owned.
Lee hosts fund-raisers in Robinson's memory
NEWTON, N.C.— Lee Inds. sponsored walkers, ran a booth, donated money for cancer research and lit luminarias at a recent event here in memory of co-founder and executive vice president Chic Robinson, who died March 29. Robinson was with the upholstery manufacturer for 32 years. To honor Robinson, Lee became a first-year participant in the Catawba County American Cancer Society's Relay for...
Obituaries
Archie Hodges, retired factory exec, consultant
LEXINGTON, N.C.— Archie Lee Hodges, who was vice president of manufacturing for furniture manufacturers Link-Taylor and Young-Hinkle for 32 years, has died. He was 88. After leaving Link-Taylor and Young-Hinkle, he worked as a furniture manufacturing consultant for Vaughan-Bassett, Stanley and Councill Craftsmen until his retirement in 1990.
California still committed to FR standards
NORTH HIGHLANDS, Calif.— The California Bureau of Home Furnishings has reaffirmed its commitment to its new open flame mattress flammability standard, which it says are the nation's first such regulations. "The regulations go into effect Jan. 1, 2005," the Bureau said in an Industry Advisory it has posted on its Web site at www.
Herscovitz launches Brazilian sourcing co.
HIGH POINT— Eduardo Herscovitz has left the U.S. division of Brazil Furniture Group to launch International Furniture USA, a Brazil-based company that helps U.S. furniture manufacturers, wholesalers and distributors source product from Brazil. He currently works with 12 factories in two of Brazil's furniture-producing states, Santa Catarina and Rio Grande do Sul.
Celia Moh scholarship winners announced
HIGH POINT— Seven students at leading schools with home furnishings programs have been awarded Celia Moh Scholarships for the upcoming academic year. The scholarships, which pay full tuition, room, board, books and fees, were established in 2001 with an initial $3 million gift from industry entrepreneur and Universal founder Laurence Moh to honor his wife, Celia.
Harlem signs on with Furniture.com for Web
WALTHAM, Mass.— In its first step toward national coverage, Furniture.com has signed Chicago-based Harlem Furniture as a client for its Internet marketing and customer services. Harlem is looking to Furniture.com for Internet traffic, e-commerce capabilities and online customer service, among other things.
SCFMA amends membership criteria
HIGH POINT — The Summer and Casual Furniture Manufacturers Assn. has amended its membership criteria to admit certain companies that produce outdoor furnishings outside the United States. SCFMA's parent organization, the American Furniture Manufacturers Assn., also is examining the possibility of membership for offshore manufacturers.
Summer 'Haven' released
DALLAS— The Home Furnishings Council published the summer issue of Haven, its consumer lifestyle magazine, this month. "Because Haven is produced every quarter, retailers have a reason to invite their customers to come by at the arrival of each new magazine," said Mary Frye, Haven's executive publisher.
Excelsior launches promotional magazine
AMITYVILLE, N.Y.— Excelsior Designs, an importer of contemporary, Italian-made furniture, is reaching out to consumers with a new promotional magazine called Classically Modern. The 28-page magazine, produced by Lexington, N.C.-based The Media Matters, debuted at the April market and is expected to be published about twice a year.
ITMA developing logo for members
HIGH POINT— The International Textile Market Assn. is working on a logo that would indicate at a glance an exhibitor at the semiannual Showtime fabric shows here is an ITMA member. The logo, much like the Good Housekeeping Seal of Approval, is intended to signal that a company has met established business practice standards for service, quality and credibility.
SansegalChina develops quality program
SANDY, Utah— Everybody knows China can make inexpensive furniture. Kevin Smith wants to help it produce the style and quality that American consumers have come to expect. Smith is managing director of SansegalChina, a production management and design firm that has developed a quality control program for China factories called ICARE, or Individual Customer Acceptability Rating Exam.
Select Comfort taps Marimba software
MOUNTAIN VIEW, Calif.— Airbed maker and retailer Select Comfort has chosen Marimba to manage its computer systems. "Our infrastructure is distributed across shopping malls, remote offices and plants around the country, with plans for more stores," said Rick Larson, director of technical services for Select Comfort.

Opinion Today

Keith Koenig exemplifies City of Hope's spirit
I didn't go to school with City Furniture's Keith Koenig, but I'll bet even as a youngster he was already coloring outside the lines and thinking out of the box. It would take that kind of mind to transform Waterbed City, the tiny 800- square-foot showroom that he and his brother, Kevin, opened in 1971 into City Furniture, the regional powerhouse that currently employs more than 1,100 people an...
Robb & Stucky always shines
It's time for another retail road trip report. This latest round of visits included stores in Milwaukee, Chicago, Dallas — and vive la différence! First prize in this retail challenge goes to Robb & Stucky in Plano, Texas, a store I visit three times a year, where the ambience, warmth of people and ease of shopping are superb.

People Today

People on the Move
People on the Move
AWARDS Ekornes HIGH POINT — Ekornes honored two sales representatives during the spring International Home Furnishings Market. Steve Luke was given the Salesman of the Year award for having the highest-revenue sales territory in North America. Russ Kelley received the first annual J.E. Ekornes Award, named in honor of Ekornes founder Jens E.

Special Report

Show Report
Clever designs, calm colors hot in Denmark
COPENHAGEN, Denmark— A tide of teak and other medium-toned woods was on the rise at this month's Scandinavian Furniture Fair, vying for prominence with the traditional sea of blond. Some duskier hues, particularly dark-chocolate wenge veneers or stains, also were big sellers. In upholstery, the reds and other bright colors that livened last year's show have given way to more neutrals like...
Show Report
Old masters, young talent share Scan fair's spotlight
COPENHAGEN, Denmark— Old and young shared the design stage at this year's Scandinavian Furniture Fair. Two of the biggest names in Danish furniture, Hans J. Wegner and Borge Mogensen, were born 90 years ago this year, and the fair presented retrospectives of their work. A "new" dining/easy chair by Mogensen — from a prototype shown in 1949 and perhaps considered too daring then R...
Top 100 Furniture Stores
Single-source networks post 12.1% sales increase
HIGH POINT— Fueled by the fast-growing Ashley Furniture HomeStores, the group of eight single-source store networks in the Top 100 posted a 12.1% increase in furniture, bedding and accessories — besting the average for the combined Top 100 and all of its subcategories. The fairly new Ashley-dedicated network was a force in many ways, reflecting in general a growing movement toward ...
Top 100 Furniture Stores
Top 100 Furniture Stores
Top 100 Furniture Stores
Who's who among the leading stores
Top 100 Furniture Stores
Top 100's sales increase 7.5% in 2003
HIGH POINT— The nation's largest furniture stores continued their comeback last year, posting a 7.5% jump in furniture, bedding and accessories sales for their biggest stake ever of the overall furniture store pie. The Top 100's 2003 sales grew to nearly $25.2 billion, up from $23.4 billion for the same companies in 2002.
Top 100 Furniture Stores
Bigger is not always better
HIGH POINT— Bigger isn't always better as the Top 100 specialty stores continued to prove last year. While their showrooms are often on the small side compared to their conventional store counterparts, and they represent less than one-third of all Top 100 companies, the specialists packed a punch in 2003, gaining market share and opening nearly five times as many stores as the convention...
Top 100 Furniture Stores
Expansion goes into high gear in 2003
HIGH POINT — After easing back into expansion mode in 2002, the Top 100 kicked it into high gear last year with the opening of hundreds of new stores and the promise of more to come. Just over half of the companies on the list increased their store count last year by at least one unit. This pace was similar to the number of companies expanding on last year's Top 100, but this time the ov...
Top 100 Furniture Stores
Gallery, Select Comfort split crown in stock turns, sales per square foot
HIGH POINT — The race is on between Gallery Furniture and Select Comfort, two perennial leaders in the sales-per-square-foot and stock turn categories that are splitting the crown this year. The one-store, Houston-based Gallery, No. 59 on the Top 100, repeated its performance as the top sales-per-square-foot getter at a trailblazing $1,320.
Top 100 Furniture Stores
How the Top 100 report is compiled
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
Major bedding specialists enjoy 9.4% gain
HIGH POINT — The 10 bedding specialty stores again topped the sales growth of the combined Top 100 last year, but this time the growth came from nearly all the players and wasn't impacted too badly by the weakest links. Sales for the group rose 9.4% to $1.8 billion, while its combined store count grew 9.
Retro designs make waves in upholstery
HIGH POINT— Ron Penney was going to call some of Décor-Rest's new upholstery introductions "retro" before he discovered that the look was all over the April market. Then he jokingly thought he'd call them Retro Contemporary, Retro Upcountry and Retro Traditional. Whatever the label, they sold.

Store Openings

Rose's Furniture adds La-Z-Boy
CENTRALIA, Wash.— Rose's Furniture here has installed a 7,000-square-foot La-Z-Boy gallery in its 10,400-square-foot store, featuring a broad selection of La-Z-Boy upholstery. "The addition of this gallery demonstrates our commitment to offering our customers the comfort and styling of La-Z-Boy," said President Roger Rose.
Conn. retailer adds Clayton Marcus
CANTON, Conn.— Furniture Emporium has installed a 3,000-square-foot Clayton Marcus Expressions Gallery in its 5,000-square-foot store here. The store, owned by Richard and Elayne Guglielmetti, originally was a private residence built around 1801 and later converted into a shop. Furniture Emporium occupied the structure in the early 1970s, retaining the original fireplace and chestnut wood...
Two Wis. retailers debut Broyhill Showplace areas
LENOIR, N.C.— Two Wisconsin retailers have opened new Broyhill Showplace galleries within their retail showrooms. In West Allis, Wis., Colders Furniture has opened a 12,500-square-foot Broyhill Furniture Showplace. The gallery is part of the retailer's newly remodeled 100,000-square-foot showroom.
Badcock opens 2 units, converts 6
MULBERRY, Fla.— Top 100 retailer W.S. Badcock has opened two new stores and converted six others to its new Badcock Home Furniture & More concept. The new stores are located in Chandler, N.C., and Cookeville, Tenn. The store conversions are located in Rome, Cochran, Cordele and Nashville, Ga.

Up Front

Simmons plans IPO in next few months
ATLANTA— Bedding major Simmons is returning to the ranks of publicly held companies, where it was a mainstay for decades. The company said last week that its indirect parent company, THL Bedding Holding Co., intends to pursue an initial public offering of stock. THL said it expects to file a registration statement in June with the U.
Convention stresses 'feminine side'
PHOENIX— Furniture retailers attending the NHFA/WHFA All Industry Convention here were urged to get in touch with their feminine side so they can improve their relationships with women. While that may sound like a self-help topic from Oprah, the convention's main theme was commerce, with several presentations focused on marketing and selling furniture to the dominant force in the retail m...
F/T ranks among top business advertising venues
HIGH POINT— For the third straight year, a marketing strategy publication has named Furniture/Today one of the 50 best business-to-business advertising venues. The newspaper shares the honor with the likes of The Wall Street Journal, Google and ESPN's SportsCenter, which held the top three spots.
Furniture/Today launching enhanced Web site
HIGH POINT— In the next few days, FurnitureToday.com will get a new look and new features. The newspaper's Web site is moving to a new platform and will have an updated appearance in a new format, with a cleaner layout with more intuitive navigation. A range of features will make it easier to find information.
Perone joins Parker House
AZUSA, Calif.— Sam Perone has joined Parker House Mfg. as vice president of sales and marketing, a new position at the bedroom and home entertainment manufacturer and importer. He will act as national sales manager and will direct marketing for Parker House as well as the company's import division, Parker House International.
Two face arson charges
LOUISVILLE, Ky.— A former bedding store owner and his son are facing federal arson charges, accused of setting fire to the stores of two home furnishings competitors here last year. Howard Gibney, 45, and his son Jonathan Ward, 19, were arrested this month and charged with two counts each of damage by fire of a building used in interstate commerce.
Keller to cut back U.S. manufacturing
NEW SALISBURY, Ind.— Case goods producer Keller Mfg. plans to reduce its U.S. production, laying off as many as 120 employees over the next five months. Once a pure domestic manufacturer, Keller was hit hard by surging competition from imports in the past few years. The company has steadily increased its own import offerings and cut domestic production.
Sorensen leaves Ekornes for Flexa post
SUFFOLK, Va. — Peder Sorensen, who has been national sales manager at Ekornes since 1998, has been named president of the U.S. division of Flexa, a juvenile furniture producer. Flexa is based in Denmark and also has factories in Estonia, China and Suffolk, where its U.S. operations are based. "It is a great opportunity to take a small company and help it grow," Sorensen said.
Lauren Home names CEO
NEW YORK— Polo Ralph Lauren has hired former Calvin Klein executive Barbara Deichman as president of Ralph Lauren Home, effective May 24. She will report to Ralph Lauren, chairman and CEO, and Roger Farah, president and chief operating officer. For the past 10 years, Deichman was senior vice president at Calvin Klein, responsible for launching the home business and then expanding it in Eu...
Alan Block to lead Bomar
LAKE WORTH, Fla.— Alan Block has joined Bomar Trimming as president and CEO, replacing Nimi Natan, who is leaving the trim specialist to spend more time with his family. Bomar also has promoted Susan Brehm to vice president of design and development. She had been director of design and development and has been with the company since it began 15 years ago.

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