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Furniture|Today -- 09/05/2005
Bedding Today
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Sales associates share insights on visco beds
You've read plenty from me in this column about the visco-elastic bedding phenomenon. I've raved about the superb marketing job done by Tempur-Pedic, shared my thoughts on the growing power of specialty sleep, and commented on the remarkable proliferation of visco beds in the marketplace. And, while I would hope that my comments have provided illumination and insight, I come to you this week wi...
Editor's Desk
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The weak spot of promotions
The minute I saw the "You pay what we pay" promotions from General Motors, Ford and other carmakers, I knew it was just a matter of time before all kinds of retailers jumped on the bandwagon. What I didn't count on was how quickly that would happen. Granted, some merchants didn't use those exact words.
Industry Numbers
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Bombay sales climb 12% while Pier 1 slips in August
Fort Worth, Texas— Specialty retailers The Bombay Company and Pier 1 Imports reported August sales results at different ends of the scale. Bombay recorded both a total revenue gain and a same-store sales increase; Pier 1 reported decreases in both measurements. At Bombay, total revenues increased 12% to $39.
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2Q revenues up 4.9% for The Brick
Edmonton, Alberta— The Brick Group Income Fund, this country's largest furniture and bedding retailer, said its second-quarter revenues rose 4.9% from a year earlier, to C$297.3 million. Gross margins improved to 39.5% from 37.5%. Same-store sales rose 1.4% in the quarter, driven mainly by stronger sales at the group's major banner, The Brick, which accounted for 55% of the first half rev...
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Sears Canada to sell credit card business to Chase for C$2.2B
Toronto— Sears Canada has agreed to sell its credit card business to J.P. Morgan Chase for C$2.2 billion in cash, net of receivables and related costs and taxes, and expects to post a C$650 million after-tax gain on the deal. Sears Canada's stock price jumped 24% last Wednesday when the transaction was announced, to C$30 per share.
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S&P: FBI's outlook negative
San Francisco— Standard & Poor's Rating Services has revised its outlook on Furniture Brands International from stable to negative, citing weaker than expected operating performance in the manufacturer and importer's second quarter. S&P affirmed the company's BBB ratings for corporate credit and senior unsecured bank loans, but said it may downgrade them.
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Culp 1Q sales down 8.1%
High Point— Fabric and mattress ticking supplier Culp recorded an 8.1% sales decline in its first fiscal quarter. Sales in the quarter ended July 31 were $62.3 million, off from $67.8 million in the comparable 2004 period. Culp reported a net loss of $3.9 million in the latest quarter, more than three times its $1.
News
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Katrina crushes business
High Point— To no one's surprise, the furniture business has come to a crashing halt in southern Louisiana, Mississippi and Alabama as the region struggles to recover from Hurricane Katrina. Most furniture stores in the New Orleans area and along the Gulf Coast of Mississippi are assumed to be destroyed or heavily damaged.
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Badcock to revamp supply chain
Nashville, Tenn.— W.S. Badcock has made supply chain management its top priority and will spend millions to rebuild its distribution and related systems from top to bottom over the next 18 to 24 months. Dressed in "Bonanza"-style cowboy gear for the retailer's semiannual dealer meeting here, Badcock President and CEO Don Marks told his audience that supply chain issues are "the biggest cl...
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Chambers: Make High Point 'buyer-driven'
High Point— The presidents of three area Chambers of Commerce say the International Home Furnishings Market must adopt a "buyer-driven culture" if it is to successfully compete with the new Las Vegas Market. In a report on their visit to the inaugural Las Vegas show in July, the heads of the High Point, Greensboro and Winston-Salem, N.
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Tietex introduces FR barrier filler cloth
Spartanburg, S.C.— Tietex International has introduced a barrier filler cloth that it says meets or exceeds the bedding industry's fire retardant and environmental standards. The new fabric, marketed under the brand name SleepFree, is the result of three years of research and development, according to Beth Hunt, general manager of Tietex's mattress ticking division.
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Glen Raven to build plant in China
Greensboro, N.C.— Fabric source Glen Raven Custom Fabrics is building its first plant in China, a weaving, finishing and distribution facility about 60 miles from Shanghai. The plant, located next to a new spinning plant that Italy's Fil Manmade Group is building, initially will have about 200,000 square feet, according to Philippe Petot, vice president of international business developme...
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Linder's buys Legacy
Garden Grove, Calif.— Southern California retailer Linder's Furniture has acquired Legacy Home Furnishings/Rooms Express of Cathedral City, Calif. Founded in 1991 by the Belinsky family, Legacy has two stores — Rooms Express in Rancho Mirage and the Legacy flagship store in Cathedral City.
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Chinese mfr. to open stores
Hickson, Tenn.— Sourcing and marketing company Summit Furniture Group International has been named North American licensing agent for Simplified, a Chinese manufacturer of modern furniture with a global network of licensed stores. It's the first time a Chinese furniture maker has tried to go direct to North American consumers under its own brand.
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Howard Miller launching wine, bar cabinet group
Zeeland, Mich.— Hoping to tap into a growing beverage-related trend, clock and curio specialist Howard Miller will add a third product line this fall with the launch of the Wine & Spirits collection. At the October High Point market, Howard Miller will introduce 26 SKUs of wine and bar cabinets in a variety of sizes, styles and price points.
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Badcock execs praise retailers for hard work
Nashville, Tenn.— W.S. Badcock executives praised their dealers and corporate store operators for hanging tough under some trying circumstances this past year, saying their work was rewarded with record sales. President and CEO Don Marks, dressed like Ben Cartwright on the old "Bonanza" TV show, told guests at the semiannual dealer meeting here that systemwide sales for the 320-store chai...
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Badcock ready to strengthen numbers
Nashville— Over the past few years W.S. Badcock has been opening stores at about the same rate as it has closed them, boosting sales as it switched to the Badcock Home Furniture & more format, but with no net growth in store count. Mike Whitten, director of dealer development for the Mulberry, Fla.
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TV ads make dealer the star
Nashville— W.S. Badcock unveiled its new television ad campaign here to a big round of applause from dealers who liked the main theme of the spots. Themselves. The 30-second spots feature a likeable, red-shirted, local Badcock store owner who manages to pop up everywhere the consumer is — at the neighborhood Little League game, sunning on the beach, hunting with the guys, on an airp...
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Fuel shortages threaten to disrupt deliveries
High Point— Fuel shortages in the wake of Hurricane Katrina are affecting furniture suppliers' ability to deliver product. With gas and oil production in the Gulf of Mexico at a standstill and pipelines from the Mississippi Delta region to the Eastern Seaboard idled last week, truckers sometimes found diesel pumps running dry.
- Obituaries
Obituaries
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Rebuilding may take years
New Orleans— This city has a heritage of strong, independent furniture stores operated by some of the industry's most distinctive personalities. While these companies may be able to rebuild, the process could take years. With phone lines down and areas evacuated, retailers in the city could not be reached last week.
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Art Van pleased by reaction to La-Z-Boy Kidz concept
Westland, Mich.— Art Van and La-Z-Boy executives met here last week for a formal unveiling of the La-Z-Boy Kidz areas recently rolled out by the Top 100 company. In its 63,000-square-foot Westland store, Art Van has devoted roughly half the space of its 6,000-square-foot youth gallery to the La-Z-Boy Kidz concept, which brings product from youth specialist Lea under the better-known La-Z-...
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French Heritage sues EA
Los Angeles— Case goods manufacturer and importer French Heritage, which also sources OEM product for other companies in Asia, is suing Ethan Allen over a deal involving an Indonesian company. The lawsuit claims Ethan Allen cut French Heritage out of a joint venture it developed with Sam Faliacci, a longtime French Heritage sourcing partner in Indonesia, to provide home accents and furnit...
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Lea hires Bowler as sales VP
Greensboro, N.C.— Bassett Furniture veteran Jeffrey W. Bowler has joined manufacturer Lea Inds. as vice president of sales, and two other executives have changed jobs at La-Z-Boy's Lea and American Drew business units. Earl Wang, previously Lea vice president of product development and design, was promoted to vice president/Lea brand manager.
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Colonial creates inside sales team
Pawtucket, R.I.— Braided rug manufacturer Colonial Mills Inc. has reorganized its sales department by creating an internal, direct sales force. The direct sales group includes John Bradshaw and Mary Jane Connell, both vice presidents of national accounts; Kristin Henderson, Donald Minchello and Gregg Scarlata, all national accounts sales managers; and Chris Morelli, sales administrator.
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Tupelo golf tourney rescheduled
Tupelo, Miss.— The fourth annual Tupelo Golf Tournament, a benefit for the City of Hope Cancer Center, has been rescheduled for Sept. 6 at the Tupelo Country Club. The tournament, which had planned for Aug. 29, was postponed because of Hurricane Katrina. Registration opens at 10 a.m. and players will tee off at noon.
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Orders up 3% for June
High Point— Factory orders in June were up 3% from the same month last year, the fourth monthly increase in a row, according to BDO Seidman. The June performance was up against a strong month in 2004, when orders were up 10% from the comparable period in 2003, the accounting and consulting firm said.
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New standard in force for wood packing
Washington— Beginning Sept. 16, the U.S. Department of Agriculture will enforce new requirements on imports which contain wood packing materials. The move, aimed at keeping destructive wood pests out of the country, could affect some furniture shipments. The new standard requires wood packaging materials to be treated for pests, either by heating to a minimum wood core temperature of 56 d...
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Correction
Scott Cohen, vice president of Coaster Co. of America, was incorrectly quoted on page 21 of the Aug. 29 issue as commenting on a decline in traffic in the Coaster space at the Tupelo Market. Instead, he was referring to the market as a whole.
Opinion Today
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Vietnam makes strides but has a ways to go
In the grand scheme of things, a year is just a short period of time. But a whole lot has happened in Vietnam in the past year. Just ask Lloyd Hicks, a general manager at coatings supplier Akzo Nobel. Last year, his company opened an administrative and technical support office in Ho Chi Minh City. Since then, he has seen eight furniture plants built in the area, each capable of producing 200 co...
- Letters to the Editor
Letters to the Editor
High Point could learn from Vegas OK. We all agree. Las Vegas was a hit and will become a major market. Congratulations. What should High Point do? Cry? Fold up their tent? Fake confidence by proclaiming, "We're biggest!" (Like the ads I see now)? No. They should learn from Las Vegas. Why was Las Vegas successful and why will it grow? Buyers 1) can get there, 2) can get an affordable room, and ...
People Today
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Renamed Roth & Tomkins appoints execs
East Norwalk, Conn.— John Tomkins has assumed the presidency of the former Roth Fabrics/Weathervane Hill, which has been renamed Roth & Tomkins. Tom Roth, former president of the company, now heads Weathervane Hill, a retailer of decorative fabrics. He also maintains a financial interest in Roth & Tomkins.
- People on the Move
People on the Move
Executives Brick Group Edmonton, Alberta — The Brick Group Income Fund, Canada's largest furniture and bedding retailer, has named Michael Borys executive vice president and chief financial officer. He succeeds Dick Innes, who resumes his duties as senior vice president and treasurer of the group after serving as interim CFO for the past few months.
Special Report
- Visco At Retail
Ergo: Tempur-Pedic sparked visco boom
Irvine, Calif.— With a name like Ergo Customized Comfort, you would think this award-winning retailer would be doing a nice job with visco-elastic bedding. And you would be right. The two-unit retailer, based here, has carried visco bedding for five years, and currently floors the first four mattresses introduced by Tempur-Pedic.
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Curio competition: Survival of the fittest
High Point— The loss of some big-name customers has hurt many in the collector's cabinet field, but manufacturers are finding ways to not only survive but also to grow their business. The demise of three major retailers — Sears Homelife, Montgomery Ward and Breuners Home Furnishings Corp.
- Visco At Retail
Visco 'monster' alive and well at HOM
Coon Rapids, Minn.— Tim Sommer, the bedding department coordinator at award-winning HOM Furniture, chuckles when he recalls his first assessment of the visco-elastic bedding category. "I was not convinced it would be a monster," he recalled. "But it did turn out to be a monster." The monster has only grown larger in recent years and it contributes to the high margins that HOM enjoys with ...
- Visco At Retail
OriginalBed hitting stores this month
Lexington, Ky.— One of the most talked-about visco-elastic bedding introductions in years, The OriginalBed by Tempur-Pedic, hits retail floors this month. Several major retailers are already saying it will be a winner for them. Retailing at $1,499 in queen, the sleep set marks a $400 step down in the starting price for Tempur-Pedic, a move that drew some sharp criticism from other bedding...
- Visco At Retail
Salespeople share tips on how to sell visco
High Point— Top bedding sales associates say they sell visco-elastic bedding by stressing the healthful nature of the product and the fact that it may be the answer to consumers' sleep problems. Some of the associates say that high consumer awareness of the leading visco brand, Tempur-Pedic, helps that line sell itself.
- Asia Report
Furniture activity on the rise in Vietnam's Binh Dinh area
Binh Dinh Province, Vietnam— This coastal region about 430 miles northeast of Ho Chi Minh City is quite different from its southern neighbor. Both regions, however, boast a growing furniture-making industry, and both are sending more of that furniture to the United States. Binh Dinh Province's population of 1.
- Asia Report
Investments paying off for U.S. coatings suppliers
Ho Chi Minh City, Vietnam— U.S.-based finishing companies are seeing their investments here pay off, thanks to ongoing furniture industry expansion. Some coatings companies have added staff and are eyeing expansions of their own. Sherwin-Williams, Akzo Nobel and Valspar have a presence in the Ho Chi Minh City area.
- Asia Report
Q & A
Editor's note: During his trip to Vietnam, Associate Editor Tom Russell asked a number of manufacturers: What are your thoughts on the U.S. market? What is the biggest challenge your company faces in serving the U.S. market? "The U.S. is a great market. We have a lot of chance to sell our products to the U.
- Asia Report
Vietnam sourcing offers many advantages
Ho Chi Minh City, Vietnam— Companies that do business here say there are many advantages to sourcing furniture in Vietnam. Among those are an available and highly literate work force and low labor costs averaging around $60 per employee per month. In addition, both local and foreign owners are investing in plant capacity.
- Asia Report
Rochdale Spears switches focus from Europe to United States
Ho Chi Minh City, Vietnam— British-owned case goods manufacturer Rochdale Spears saw potential in Vietnam long before companies flocked there last year as an alternative bedroom source to China. Twelve years ago, the company began manufacturing medium-high to high-end accent and occasional furniture in a 50,000-square-foot plant in Ho Chi Minh City that employed 100.
- Asia Report
Rochdale Spears taps Bustraan
Ho Chi Minh City, Vietnam— High-end case goods manufacturer Rochdale Spears has partnered with designer Donald Bustraan to help update its product line for today's consumer. Bustraan most recently worked at Henredon as director of imports. While there, he also was senior designer of the Ralph Lauren case goods line and developed products with Barbara Barry and her design team.
Store Openings
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Pa. House adds two galleries
Lewisburg, Pa.— Pennsylvania House, a producer of wood residential furniture and custom-made upholstery, has installed two new galleries within U.S. retail locations. In Green Bay, Wis., Wenz Home Furniture has opened a new 3,000-square-foot Pennsylvania House gallery within its 26,000-square-foot retail store.
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England opens two centers
New Tazewell, Tenn.— Furniture manufacturer England has opened two new Custom Comfort Centers in two U.S. locations. Ivey's in Union, S.C., has opened a 4,500-square-foot gallery as part of a complete renovation of its store. The store was hit by a tornado, which tore the roof off in 2004. Glen Ivey is owner of the 12,000-square-foot South Carolina store.
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La-Z-Boy opens 3 units, installs gallery
Monroe, Mich— Upholstery manufacturer La-Z-Boy has opened three new La-Z-Boy Furniture Galleries stores in Illinois, Iowa and Texas. It also has installed a gallery in an Iowa retail location. Lansing Furniture, located on West Main Street in Lansing, Iowa, has installed a new 5,200-square-foot gallery within its 18,000-square-foot showroom.
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