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Furniture|Today > Archives > 07/10/2006 Issue
Table of Contents
Furniture|Today -- 07/10/2006

Bedding Today
  • Simmons sets fast pace in allowances category
    This week we shine the spotlight on a part of the business that we seldom mention: the discounts, incentives and allowances that major bedding producers give retailers. This is talked about mainly in whispers. We hear that X retailer got Y millions for signing an exclusive deal with Z producer. Since the details are seldom made public, they go unreported most of the time.
  • Mattress Retailing 101
    Two takes on selling features and benefits
    Today's topic: Selling features and benefits. Overview: Should you sell the features that your beds provide? Or is it better to sell the benefits of a good night's sleep? Features lead directly to benefits, which is why the "features and benefits" story is often considered together. But they can be considered separately, and presented with different emphases.

Editor's Desk
  • One retailer who got it right
    Earlier this month, I took a week off and went to the beach. The condo I rented was on a very quiet strip of beach, and I spent most days contemplating the vastness of the ocean. In the evenings, I watched more TV that week than I normally do all year. One of the local cable stations showed a series of infomercials featuring local businesses.

Industry Numbers
  • Amisco's 2Q sales tumble 14.8%
    L'islet, Quebec— An ever-weakening U.S. dollar, coupled with increasing competitive pressure from Asian imports, continued to hobble metal furniture maker Amisco Inds. in its second quarter. For the three months ended June 3, Amisco saw net sales fall 14.8% to C$9.2 million from C$10.8 million in last year's second quarter.

Insider's View
  • Surprise! 45 to 54 isn't our prime spending age
    A good friend of mine, Ken Gassman, is a world authority on the jewelry industry. We visit often and discuss the parallels between our two areas of interest. He recently brought up an interesting trend in the jewelry business. It seems the 45- to 54-year-old households are not the peak buyers of jewelry as they have been for decades.

News
  • GE Capital Solutions, Amtech set 60-day financing for imports
    Hoffman Estates, Ill.— GE Capital Solutions has entered an agreement with Chinese exporter Amtech Management Ltd. to provide 60-day interest-free financing to retailers and other U.S. importers. Under the new Trade Flow Finance program, GE will pay finance costs for a 60-day period on products sourced from Chinese factories that fall under Amtech Management's corporate umbrella.
  • Hot summer for bedding?
    High Point— The bedding industry heads into the heart of its critical summer selling season buoyed by forecasts of strong sales growth in dollars, if not units. In a projection updated this spring, the International Sleep Products Assn. sees an 8% jump in the dollar value of bedding shipments and a 2% rise in bedding units for 2006.
  • Fortunoff's Orlick eyes furniture changes
    Westbury, N.Y.— Fortunoff's new CEO said the company enjoyed double-digit sales gains in furniture last year, but he's still looking to make big changes in the segment. Arnie Orlick, a retailing veteran who in early May became the first CEO from outside the family that owns the chain, wants to keep the traditional styles that now dominate the furniture sales floors but also broaden into a...
  • DOC won't review 41
    Washington— The U.S. Department of Commerce has agreed to not perform an administrative review of 41 Chinese bedroom manufacturers, which asked to withdraw their names from the list of companies to be audited. This means that for now, the companies will keep their current duty rates on imported furniture.
  • HP to get $3 million
    Raleigh, N.C.— The North Carolina legislature has adopted a state budget that includes nearly $3 million for the High Point furniture market, including $1.75 million for marketing and promotion and $1.2 million to run the market's transportation system. The shuttle system funds, part of the state Department of Transportation budget, were never in dispute.
  • April factory orders dip 13%
    High Point— Residential furniture factory orders in April were down 13% from the same month a year earlier — but don't panic yet, said Ken Smith of BDO Seidman. "We believe the timing of the (High Point) furniture market had a great deal to do with the reported declines," said Smith, national director of BDO's Furniture Industry Services, in analyzing the results of the accounting a...
  • O'Sullivan closing Virginia plant
    Roswell, Ga.— O'Sullivan Inds., which emerged from Chapter 11 bankruptcy protection in April, said it will close its South Boston, Va., factory by the end of the year. The closing will leave the ready-to-assemble furniture producer with a single factory — a 1.1 million-square-foot facility in Lamar, Mo.
  • SLF sets big space for Vegas in Jan.
    Phoenix— Manufacturer and importer SLF has finalized a deal to show at the Las Vegas market for the first time next year in one of the larger spaces in the World Market Center's Building B. SLF, formerly Samuel Lawrence Furniture, will show in 15,600 square feet when the building opens for the January market.
  • Trends panel planned for Atlanta
    Atlanta— A panel sponsored by WithIt will discuss the latest home furnishings trends at a breakfast event Friday, July 14, during the Atlanta International Gift & Home Furnishings Market. Hosted by the Southeast region of WithIt, or Women in the Home Industries Today, the panel of designers will identify trends including color direction and decorative accessories design.
  • Obituaries
    Obituaries
  • Morin elected to Sealy board
    Archdale— Gary Morin, a former executive of Lexmark International, has been elected to Sealy Corp.'s board of directors. The bedding major said Morin would serve on the board's audit committee. He was Lexmark's executive vice president and chief financial officer from 2000 until his retirement in 2005.
  • Sealy declares first dividend
    Archdale, N.C.— Sealy Corp.'s board of directors has declared its first cash dividend since the bedding producer went public in April. The dividend, which covers the company's second fiscal quarter, is 7.5 cents per share of common stock. It is payable Aug. 1 to stockholders of record on July 14.
  • Stearns & Foster celebrates history
    Archdale, N.C.— To commemorate its 160th anniversary, luxury bedding maker Stearns & Foster has partnered with the National Trust for Historic Preservation and Historic Hotels of America for a program called Sleep in Style. The program will allow travelers to experience Stearns & Foster comfort at some HHA member hotels, including the La Valencia Hotel in La Jolla, Calif.
  • Kresser joins Kingsdown
    Mebane, N.C.— Kingsdown has named David Kresser, a former marketer with Procter & Gamble, as regional vice president of sales, a new position. Kresser, formerly a health and beauty manager at P&G for its business with retailer Family Dollar, reports to Rob Jelinek, vice president of sales for North America.
  • Coaster promotes Cohen
    SAnta Fe Springs, Calif.— Industry veteran Scott Cohen has been promoted to executive vice president of sales at Coaster, a major home furnishings importer and distributor. Cohen, who had been vice president of sales for the eastern United States, now is responsible for all national and international sales.
  • WithIt sets Educational Conference Aug. 29–31
    Greensboro, N.C.— Keynote speakers on self-motivation and future lifestage trends will highlight the annual WithIt Educational Conference in Charlotte, N.C., set for Aug. 29–31. WithIt, or Women in the Home Industries Today, is dedicated to the support and development of female professionals in the home industries.
  • Charlotte physician buys Market on Green stake
    High Point— Charlotte, N.C., physician and investor Gary Waldman has acquired a minority stake in furniture showroom building Market on Green here for $16 million. Audie Cashion, broker-owner of Alpha World Properties in High Point, handled the transaction. He declined to reveal the stake Waldman holds, other than to say it is less than 50%.
  • Brown Jordan debuts Jenkins pillow, trim line
    — Outdoor furniture producer Brown Jordan is launching an outdoor accessories collection of pillows and trim designed by Laurie Jenkins, president of Laurie Bell. The line debuts July 10–13 at the Premarket Expo at The Merchandise Mart here, a preliminary to the International Casual Furniture & Accessories Market in September.
  • Stanton to close Phoenix plant
    Tualatin, Ore.— Oregon-based Stanton International, which manufactures and imports leather and fabric upholstery, is closing its Phoenix assembly and warehouse facility and consolidating the operation with its Stockton, Calif., facility by early fall. Tom Yow, Stanton's CEO, said the company decided to make the move because of the expiration of its Phoenix lease and the growth in its impo...
  • Laslo to create Robert Allen fabric line
    New York— Fabric supplier The Robert Allen Group has announced it will partner with design icon Larry Laslo, who will create exclusive fabric collections under the Robert Allen brand. The first collection will debut in spring 2007. It will be sold to the design trade only through Robert Allen Beacon Hill showrooms and through the company's sales representatives.
  • Polyester suppliers announce price increases
    Charlotte, N.C.— Polyester fiber suppliers Wellman and DAK Americas have announced price increases for polyester staple fiber products. Wellman is raising prices by 4 cents per pound effective July 16, in addition to a 3-cent-per-pound increase that took effect last month. Dak raised prices by 4 cents per pound effective July 1, on top of a 3-cent increase that took effect in June.
  • Commerce Dept. issues ruling on 'new shippers'
    Washington— Three Chinese manufacturers of wood bedroom furniture have received widely varying import duty rates after an initial review by the U.S. Department of Commerce. The companies, all identified as "new shippers" because they were not part of the U.S. government's first antidumping investigation of wood bedroom furniture imports from China, are Dongguan Landmark Furniture Products...
  • Store kiosk system attracting more retailers
    Reston, Va.— More retailers have signed on to the Show/Pro retail kiosk system, giving its maker, Showroom Technology, more traction in the furniture industry. Belfort Furniture in Dulles, Va., Beck's Furniture in Sacramento, Calif., Furniture Fair of Jacksonville, N.C., and Interiors of Lancaster, Pa.
  • Storis enhances Vision R8 operating software
    Mount Arlington, N.J.— Storis Management Systems said it has released Revision 8.2, an enhanced version of its Windows-based Vision R8, released in 2003. Revision 8.2 has numerous new applications, including a Forms Designer, which creates sales and shipping documents without custom code; a Report Viewer, which can customize views of Storis reports with no programming required; File Attac...
  • U.S. to assist fabric exhibitors in Dubai
    Dubai, United Arab Emirates— American fabric suppliers interested in selling in the fast-growing markets of the Middle East, North Africa and Asia can participate in a USA Pavilion, as well as a catalog and sample presentation, sponsored by the U.S. Department of Commerce's Office of Textiles and Apparel at the Index 2006 show here Nov.
  • Two join for fleet software
    Winston-Salem, N.C.— Software provider Melton Technologies and bar code systems specialist ITP Business Communications jointly have developed a software bundle for trucking fleets called CLIP, or Complete Logistics Inventory Program. CLIP software combines Melton's Horizon operations software and ITP's TransPort bar code scanning product.
  • Mattress maker names two
    Hinsdale, Ill.— Mattress maker Comfort Solutions has added two employees to its staff at headquarters here. Ross Olinski, an industrial engineer with Spring Air since 2000, has been named general manager of manufacturing services. He will be responsible for the development and implementation of manufacturing methods and quality and product specifications, and will assist with product deve...
  • Best Brands to offer Symbol bedding
    Germantown, Tenn.— Mega Group USA, also known as Best Brands Plus, is offering its buying group members a new value-priced bedding line through Symbol Mattress. The program addresses "the under $599 velocity price points at retail and supplements the mattress package for our retail partners," said Jerry Honea, Mega Group director of merchandising.
  • Safavieh exclusive U.S. source for Louis De Poortere wool rugs
    New York— Safavieh has agreed to become the exclusive U.S. and Canadian distributor of wool rugs from Belgian manufacturer Louis De Poortere. Louis De Poortere, meanwhile, has completed transferring its face-to-face rugmaking equipment to Romania, said Christ of Vermeersch, commercial director of LDP.
  • Tisch named marketing director for Safavieh
    New York— Carol Tisch has been named director of marketing for rug resource Safavieh, said Arash Yaraghi, company principal. Tisch reports to Yaraghi. She fills a new position at the company, which expanded its wholesale lines this year to include a furniture division and several licensed collections, including rugs from Martha Stewart and Thomas O'Brien.
  • F/T, Kids Today tap Martinez
    High Point— Robin Martinez has been promoted to advertising director of Furniture/Today and publisher of its Kids Today supplement. In the Kids Today post, she succeeds Pete Cohen, who has left the company to become vice president of sales at Green Frog Art, a supplier of infant and juvenile furniture.
  • Pier 1 sales decline 18.4%, Havertys up 8.2% in June
    High Point— Two big furniture retailers, Pier 1 Imports and Havertys, reported markedly different sales figures for June. Pier 1, which has been struggling for more than a year, said same-store sales were down 18.4% in June, while Atlanta-based Havertys reported a same-store increase of 8.2%. "Sales for June continued at a very good pace as deliveries to customers were again aided by impr...
  • DWR names controller, VP finance
    San Francisco— Top 100 retailer Design Within Reach has hired Peter Kruglinski as controller and vice president of finance. In a release, the company said Kruglinski "will help strengthen Design Within Reach's finance, accounting, external reporting, tax, treasury and investor relations department, as well as the company's fulfillment center operations.
  • Culp stock hits 52-week high
    High Point— Fabric supplier Culp Inc.'s stock price rose sharply last week, but the company said it was unaware of any reason for the rise. The stock hit a 52-week high on Thursday, July 6. Late in the day, it was trading at $6.35 per share, up nearly 40% from its closing price of $4.55 on June 28.
  • Pinnacle design award entries due Aug. 4
    New London, N.C.— The Aug. 4 deadline is approaching for submitting entries for the 2006 Pinnacle Design Achievement Awards, organized by the American Society of Furniture Designers. That's also the deadline for nominating candidates for the second annual ASFD President's Award, which honors talented young furniture designers.
  • Vezina to leave Cantrex nat'l furniture post
    Montreal— Pierre Vezina will retire as national general manager of the furniture, appliances and bedding division of Cantrex Group, probably at the end of this year after a successor has been appointed. In a letter to Cantrex members and suppliers, Alain Masse, the group's president and general manager, praised Vezina's "indelible legacy" built over 18 years at the fee-for-service buying ...
  • Importers not worried about rubberwood supply
    Kuala Lumpur, Malaysia— U.S. importers are not overly concerned about a Malaysian government request that factories limit rubberwood use, but are keeping an eye on supplies of the Asian hardwood in case they need to shift to other species or source countries. In mid-April, a Malaysian government minister asked furniture makers to find alternative woods.

Opinion Today
  • Retailers must go beyond price, proximity
    The current Ethan Allen summer catalog, which we wrote about in the July 3 issue, offers a clear example of where successful furniture retailing is heading. Our conversation with Farooq Kathwari, the company's chairman, president and CEO, reinforced the point that, for those selling just a piece or two or three of furniture, life down the road is going to become ever more challenging.

People Today
  • Frye named to Dallas Furniture Bank board
    Dallas— Mary Frye, president of the Home Furnishings International Assn., has been named to a two-year term on the board of directors of the Dallas Furniture Bank. The bank, a member of the National Furniture Bank Assn., is a non-profit agency that collects and stores gently used furniture donated by the furniture industry, businesses and individuals.
  • People on the Move
    People on the Move
    Awards Elite Leather City of Industry, Calif. — Paul Adorno has been named Elite Leather's Salesman of the Year in recognition of his contributions in sales, customer service and territory growth. Adorno, who joined the company seven years ago, covers metro New York and New Jersey for the custom leather upholstery maker.

Special Report
  • Atlanta Rug Market
    Some data on why rug industry isn't
    The other night, I spent a pleasant social evening with the president of a major rug importing company. During dinner, he commented, "The problem with markets is, there are too many of them." Heard that before? Ho-hum. But what he said next snapped me to attention: "The problem is that the rug business is not really an industry.
  • Inside China's Bedding Industry
    Stylution offers Chinese bedding
    Dongguan, China— A massive new mattress factory here, operated by a savvy veteran of the Asian bedding scene, is poised to make its mark in the U.S. bedding arena. Chinese-made mattresses have only a limited U.S. presence now, but that could be changing, officials of Stylution said here. Part of the reason why is the gleaming new four-story mattress and upholstery factory here on the 1 mi...
  • Inside China's Bedding Industry
    Furniture first, bedding next?
    In this China Notebook column, bedding editor David Perry shares his personal reflections on the cities and companies he visited on his week-long trip to China. Perry, shown here looking out from the headquarters of the Xilinmen Group in Shaoxing, visited bedding producers and suppliers who are looking to ship their products to the United States.
  • Inside China's Bedding Industry
    Stylution's Chen: Iron man in a hurry
    Dongguan, China— He leads 1,500 employees during the day, and leads the Conga line at night. He has risen through the ranks to become a major player in the Chinese furniture and bedding marketplace, and is now looking for mattress opportunities in the United States. Jack Chen is a man in motion.
  • Inside China's Bedding Industry
    Stylution's factory roars
    Dongguan, China— When Jack Chen mastered his ABC's, he moved on to "D." Building D, a 450,000-square-foot mattress and upholstery plant, stretches along the left side of the Stylution campus here in this Chinese manufacturing center. It churns out 2,000 pieces of bedding per day and 10 containers of sofas.
  • Asian-inspired occasional
    High Point— Asian-inspired furniture has been around for many years, and from the splash made at the April High Point market, it doesn't appear to be going out of style anytime soon. Introductions were particularly strong in occasional and accent furniture. In some cases, new pieces sport crackled and textured finishes that add zest and luster to the more traditional chinoiserie designs s...

Store Openings
  • England opens store in Virginia
    Falls Church, Va.— England has opened a dedicated store at Bailey's Crossroads here. The location brings the total number of England Custom Furniture Direct stores owned and operated by Custom Direct LLC to eight, and a total of 10 for the England store program. The 11,500-square-foot store offers customers custom upholstered furniture, with certified design consultants for in-home design...
  • Diamond adds N.J. store
    Cherry Hill, N.J.— Diamond Furniture has opened its newest Super Store here in The Plaza at Cherry Hill on Route 38. Former Philadelphia Flyers Hall of Fame goalie Bernie Parent appeared at the grand opening to greet shoppers and sign autographs. The new store offers brand-name furniture in a 45,000-square-foot showroom.

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