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Furniture|Today > Archives > 08/07/2006 Issue
Table of Contents
Furniture|Today -- 08/07/2006

Bedding Today
  • Vegas award winners: From limos to lookers
    Before we close the books on another strong bedding market in Las Vegas, let's hand out some awards for notable achievements. I hope you had a great market in Vegas. I did. Contact David Perry at dperry@reedbusiness.com

Editor's Desk
  • Why some stores are doing just fine
    On the plane ride back from Vegas, I found it sobering that, in the wake of a brisk market filled with new furniture, a major topic of conversation was the ongoing sluggishness at retail. While we've seen way too much of the soft underbelly of retail in general, some merchants are having a good year and enjoying respectable sales.

Industry Numbers
  • Havertys 2Q sales up 9.7%
    Atlanta— Increased sales in May and June and the continuing strength of its private-label goods helped Havertys nearly triple its second-quarter earnings from the same period a year ago. The 119-store retailer based here earned $3.6 million in the quarter as its sales grew 9.7% to $211 million.

Insider's View
  • Saluting a war hero who became true industry leader
    You'll be hearing a lot about Pat Norton in the coming months as he retires from La-Z-Boy. Few men have had the impact Pat has had over the past 40 years, yet he never started a furniture retailer or manufacturer. Who is this guy? First, Pat flew B-26 bombers over Germany in World War II. Perhaps that's why he's accepted all the flak this industry offers.

News
  • Lynch running '$12M sell-off' at Gabberts
    Edina, Minn.— Gabberts Furniture & Design Studio has hired Daniel Lynch Sales to run an inventory sale at its 90,000-square-foot showroom in the Galleria mall. The promotion, billed as "the Great $12 million Furniture Sell-Off & Remodeling Sale," officially began July 14 and should run about five weeks, said Chris Lynch, Daniel Lynch co-CEO.
  • Ikea breaks ground in Portland
    Portland, Ore.— Ikea has broken ground on its first store here, scheduled to open in summer 2007 on 19 acres along Interstate 205 near the Portland International Airport. The 280,000-square-foot store will be at the eastern end of Cascade Station, a 120-acre mixed-use development of office, hotel and retail.
  • La-Z-Boy consolidates
    Monroe, Mich.— La-Z-Boy has merged its Pennsylvania House and Clayton Marcus divisions, naming Clayton Marcus President Mac McCall president of the combined entity. Separately, La-Z-Boy sold its American of Martinsville contract division. (See story on page 8.) Pennsylvania House President Dave Sowinski has left the company but Tom Halvorsen, Pennsylvania House's senior vice president of ...
  • Manufacturers get lean
    Advance, N.C.— When it comes to manufacturing furniture, Bob Cleary has a simple mantra: "It's change or die. You can't continue to do the things you have always done and expect different results." That's Cleary's philosophy as founder of Creative Solutions of North Carolina, a consulting firm that helps factories shift to lean manufacturing.
  • Broyhill adding galleries
    Lenoir, N.C.— Broyhill Furniture Inds. is in the midst of rolling out about 100 in-store galleries through early next year as it steps up its in-store program and steps away from its former plans to roll out more dedicated stores. Several galleries already have opened but the bulk will open in this second half, said Mark Summerour, vice president of dedicated distribution "There's a large...
  • Our Community
    American, Ashley, radio station raise $312,680 for St. Jude kids
    Englewood, Colo.— Top 100 store American Furniture Warehouse joined with Ashley Furniture and Denver radio station 98.5 FM KYGO to raise $312,680 for St. Jude Children's Research Hospital in a June fund drive. Throughout the month, the Colorado retailer collected donations for the hospital at its 10 stores.
  • Our Community
    Belfort backs YMCA's family program
    Dulles, Va.— Retailer Belfort Furniture teamed up with the YMCA Loudoun County as the corporate sponsor for the 14th Annual Golf Classic. It was Belfort's second year sponsoring the event, held at the Loudoun Golf and Country Club in Purcellville, Va. The event raised more than $35,000 to support the YMCA's Building Bridges Campaign, which provides financial assistance for families who ar...
  • Our Community
    Dearden's sets tourney
    Los Angeles— Furniture, electronics and appliances retailer Dearden's will hold its 16th annual Douglas E. Dearden Memorial Golf Tournament on Thursday, Aug. 31 at California Country Club in Whittier, Calif. The event will benefit Para Los Ninos, an organization launched in 1980 in response to the plight of children living in skid row hotels.
  • Ligo, Studio 99 merging
    Mokena, Ill.— Occasional and casual dining importer Studio 99 is merging into sister company Ligo Products as part of an effort to boost the efficiencies and market exposure of both companies. Both companies now will be promoted, merchandised and sold under the Ligo brand. Studio 99, formed about six years ago as a division of Ligo, sells casual dining, occasional and entertainment furnit...
  • One pull, they're $12.3M richer
    Las Vegas— There's some nicer furniture in Joey Penn's future now. After attending last week's market here, he played a Megabucks slot machine at the Wynn casino and won $12.3 million. The 38-year-old Zachary, La., resident owns a truck stop and is a partner in a construction company. He said he plans to keep working.
  • WMC sets 2007 dates
    Las Vegas— The Las Vegas furniture market will maintain its Monday-through-Friday format in 2007, World Market Center officials said. The winter market is set for Jan. 29–Feb. 2, and the summer show is July 30–Aug. 3. The January show will feature the grand opening of the WMC's Building B, which will house nearly 300 exhibitors in permanent showrooms.
  • Bedding Benchmarks
    Ireland excited by reaction to new Therapedic bedding
    Las Vegas— Kathy Ireland hailed the "exciting" sales performance of her new Therapedic bedding lines in an address to Therapedic licensees and retailers here. The CEO and chief designer of Kathy Ireland Worldwide, whose brand partners were well represented at the recent Las Vegas Market, was the center attraction at a lavish party she and Therapedic hosted at the Wynn.
  • Bedding Benchmarks
    United Sleep creates buzz with Las Vegas pajama party
    Las Vegas— Was it those lovely models in silk pajamas? Or was it the two new lines of bedding? Or was it the setting in one of Sin City's trendiest nightclubs? Those three elements came together here during market in spectacular fashion when United Sleep hosted an invitation-only party for retailers and guests at the Pure Nightclub in Caesars Palace, where A-list celebrities like Paris Hi...
  • Michels leaving Tupelo to focus on Vegas, H.P.
    Lynwood, Calif.— Case goods manufacturer and importer Michels and Co., formerly Michels/Pilliod, is ending a 10-year run at the Tupelo, Miss., market, and plans to focus on the Las Vegas and High Point shows. The company, which had a 7,500-square-foot showroom in Tupelo Building 1, will not show at the Aug.
  • Factory orders flat in May, BDO says
    High Point— U.S. residential furniture factory orders in May were flat with the same month a year ago, according to accounting and consulting firm BDO Seidman. "We had expected May results to be more positive," said Ken Smith, national director of BDO's Furniture Industry Services, in his monthly Furniture Insights newsletter.
  • 2 D.C.-area retailers plan to close stores
    Washington— Tough times at retail are leading two more retailers in this metro area to close stores. Colony House Furniture, which opened a 40,000-square-foot stores in Centreville, Va., three years ago, is closing it and consolidating in its Arlington, Va., store. And Stanis Furniture owners George and Rita Stanis plan to close their Fairfax store and transfer ownership of the remaining ...
  • Shaw takes big Atlanta space
    Atlanta— Major rug resource Shaw Living will move into a 13,000-square-foot showroom on the sixth floor of AmericasMart here for the January market. "We have participated in the Atlanta International Rug Market for the past 11 years," said Jeff Meadows, vice president of the Shaw Inds. division.
  • Correction
    The caption describing a photo of an Aspen entertainment wall system on page 82 of the July 26 Las Vegas daily was incorrect. The system is part of Aspenhome's new Barolo collection, in pecan and birch solids and veneers with walnut veneer accents and a Vecchio finish.
  • Aspenhome dining gets fast start
    Las Vegas— Aspenhome says its first venture into casual dining, launched at the July market here as part of the 100-piece Italian-influenced Barolo collection, is whetting buyers' appetites. "We already have commitments and already placed orders for shipping. It's a huge reaction," said Jena Hall, vice president of marketing, bedroom and dining design.
  • Bolick joins Cardi's as senior buyer
    Swansea, Mass.— Heather Bolick has joined retailer Cardi's Furniture here as senior buyer for leather upholstery, motion upholstery and rugs. She was vice president of Leather Services of America, an importer of leather hides from Europe and South America, for five years. Previously, she was national sales manager for Leather Master.
  • Coaster expects mixed containers within one year
    Santa Fe Springs, Calif.— Importer Coaster Co. of America is developing a mixed-container program to offer top-selling product from as many as 30 factories in China. Bruce Huggins, product manager, said Coaster owns a 650,000-square-foot warehouse in southern China where product will be mixed. He said the company is experimenting with the program by shipping to their California warehouse.
  • Leggett & Platt sets new lift, sofabed mechanisms for IWF
    Carthage, Mo.— Leggett & Platt will introduce new mechanisms for lift chairs and sofa-sleepers along with new upholstering materials, equipment and manufacturing concepts at the IWF show in Atlanta this month. IWF, the International Woodworking Machinery & Furniture Supply Fair USA, takes place Aug.
  • Rug industry honors retailers in 5 categories
    Atlanta— Winners of the rug industry's Retailer of the Year Awards were saluted at a gala dinner in the new Georgia Aquarium here. Winners in the five categories were:
  • Spak, Jackson to split sales duties at JFI
    Cleveland, Tenn.— Randy Spak, the former Lane executive who joined upholstery resource Jackson Furniture Inds. last month, will split sales and merchandising duties at the company with Keith Jackson. Spak has responsibility for the Catnapper motion division, while Jackson will continue to handle the Jackson/Shamrock division.
  • GNYHFA to honor Legacy's O'Conner
    New York— Kevin O' Connor, president and CEO of importer Legacy Classic Furniture, will receive the Jerry Gans Memorial Award at the annual dinner-dance here Nov. 18 of the Greater New York Home Furnishings Assn. The award, which honors an individual's deeds and service to the profession, will be presented by Andrew Gans, a principal of Gans Bros.
  • Bassett hires Camp
    Bassett, Va.— Manufacturer and importer Bassett Furniture has hired former Restoration Hardware executive Jason Camp to oversee retail and brand strategies, which revolve around Bassett Furniture Direct stores. As senior vice president of retail, he will be responsible for four areas of operations.
  • Furnishings unit drags Dorel profit down 17.5%
    Montreal— Consumer products giant Dorel Inds.' home furnishings segment continued to drag down second-quarter performance, as overall earnings dropped 17.5% and total revenues remained flat. The juvenile segment turned in a 12% sales gain. Revenues in the latest quarter came to $435.9 million and net earnings were $17.
  • Sears Canada earnings jump 66.1%
    Toronto— Major furniture and bedding retailer Sears Canada posted improved earnings in the second quarter, although its top line continued to sag. The multi-channel retailer said total revenues in the 13 weeks ended July 1 dropped 6.2% to C$1.4 billion from C$1.5 billion in the comparable 2005 period.
  • Pier 1 July sales decline 12.9%
    Fort Worth, Texas— Specialty retailer Pier 1 Imports said July sales were down 12.9% from the same month last year, with same-store sales tumbling 14.9%. "Weak customer traffic persisted throughout the month and higher average-ticket transactions were offset by lower customer conversions," said Chairman and CEO Marvin Girouard.
  • Cantrex gets new look
    St. Laurent, Quebec— Cantrex Group has unveiled a new corporate identity and will soon launch a more interactive Web site as part of a strategy not only to reinforce its position in the market but to attract new members. "We have a new owner, we have a new management team, a new structure, a new approach, so we're really a new company," said Alain Masse, president and general manager of t...
  • Masten names Rhodes president
    High Point— Case goods importer Masten Furniture has named Keely Rhodes president, replacing Jim Harris, who left the company in July. "Masten has had tremendous growth over the past year," Rhodes said. "I look forward to the new and exciting challenges ahead." Rhodes most recently was director of national accounts at upholstery manufacturer J.
  • A-America taps Cubberley
    Seattle— Industry veteran Bill Cubberley is filling in as interim vice president of sales and marketing at casual dining specialist A-America until a replacement is hired. Cubberley, who was a sales representative for A-America, moved to the position in June. He reports to A-America President Fred Rorhrbach.
  • Hardison is J. Miles VP of sales
    Ripley, Miss.— Industry veteran Dwight Hardison has joined upholstery manufacturer J. Miles here as vice president of sales. He replaces Don Spivey, who left the company. Hardison most recently was director of Lane's dedicated distribution program, where he worked with retailers in the company's in-store gallery program, and with Lane dedicated stores.
  • W. Schillig USA promotes Stewart
    High Point— David Stewart has been promoted to national sales manager at contemporary leather upholstery producer W. Schillig USA. Steve Bailey, vice president of sales and marketing since 2004, has left the company to pursue new business opportunities. Stewart, who was product and sales manager, joined the German-owned company in 1999.
  • Master Design sets larger H.P. space, N.C. facility
    High Point— Case goods importer Master Design will move to a 50,000-square-foot space in the Hamilton Market building here for the October market. Separately, the company said it will open its first East Coast distribution center this fall, not far from High Point. For its new High Point showroom, the company signed a five-year lease with Merchandise Mart Properties Inc.
  • La-Z-Boy sells American of Martinsville
    Monroe, Mich.— La-Z-Boy announced last week that it has sold its American of Martinsville contract furniture subsidiary to Hancock Park Associates, a Los Angeles-based private equity firm that has controlling interest in two other furniture manufacturers and one Top 100 retailer. Terms of the deal were not disclosed, but La-Z-Boy said it probably will result in a small gain that will be r...

Opinion Today
  • Outdoor furniture segment shows sizzle
    The talk in furnitureland this summer largely has been about how bad business is — not just the usual summer doldrums but something worse. You've read about the store closings across the country. Many are longtime, multi-generation businesses hit by recent radical changes in furniture distribution, and by broader economic forces.
  • Letters to the Editor
    Letters to the editor
    Uniform High Point opening day a bad idea The High Point market has been criticized in the past, justly, for rarely thinking of the best interests of the retailer. As I understand the Market Authority, they are committed to advancing the High Point market — that does not necessarily mean they are committed to advancing the interests of the retailer.

People Today
  • Leggett & Platt promotes Hauser, hires twin brothers
    Carthage, Mo.— Components and furniture supplier Leggett & Platt has hired two executives and promoted another in a continuing reorganization of its top ranks. The company said the changes reflect its renewed emphasis on product development and the growth of its Commercial Vehicle Products platform, and fill vacancies created by the earlier promotions of David Haffner to CEO from chie...
  • The Brick founder Comrie honored for achievements
    Ottawa— Bill Comrie, founder of what is now The Brick Group Income Fund, has been named an Officer of the Order of Canada by Governor-General Michaelle Jean. The order, established in 1967, is Canada's highest honor for lifetime achievements in various fields. Comrie, who founded The Brick Warehouse 35 years ago, was cited for his contributions in industry, commerce and business.

Special Report
  • Toronto Preview
    Toronto awaits eager buyers
    Mississauga, Ontario— Manufacturers and importers taking part in next week's Toronto Summer Furniture Show are optimistic that independent retailers from Ontario, Quebec and Atlantic Canada will turn out, eager to find new product to drive fall business. "This show will help those retailers who don't always travel to the big markets in the U.
  • Vegas Q and A
    With business slow this summer, what are you doing to jump-start your sales?
    "Sales training. Actually, we're beginning it when we get back (from Vegas). After my husband and I educated ourselves, we realized most salespeople talk too much. They're not listening to the customer and asking the right questions. So we're going all out to really get the best sales training we can.
  • Rising costs drive delivery route software
    High Point— With the steep rise in fuel prices, more retailers are turning to technology to power up efficiencies in their delivery systems. Companies like RouteView Technologies, which says it provides delivery management software to nearly half the country's Top 100 furniture stores, have noticed a more urgent quest for ways to cut costs.
  • Kacey's camera phones proving picture perfect
    Denver— Sometimes the light just comes on. Leslie Fishbein, president of Kacey Fine Furniture in the Denver area, was watching a camera phone TV commercial when inspiration struck: Camera phones could be used by the company's drivers to document deliveries. They could take pictures to show that delivery folks hadn't broken anything or damaged walls or floors.
  • Toronto Preview
    Novosel: A traveler on a retail mission
    Stoney Creek, Ontario— Dennis Novosel has itchy feet. His love of travel to exotic places in India, Nepal, China, Africa and elsewhere is legendary in the industry. The wherewithal to indulge that passion is the result of decades of thinking outside the box to create one of the best and one of the largest destination furniture stores in Canada, which now sports a fresh, new look.
  • Toronto Preview
    Toronto Summer Furniture Market exhibitors
    Permanent showrooms in Canada's Furniture Mart at the International Center, 6900 Airport Road, Mississauga, Ontario: Outside showrooms:
  • Salary Scorecard
    Ethan Allen chairman tops salary scorecard
    High Point— Huge gains from the exercise of stock options once again propelled several manufacturing and retail furniture executives to the top tier of industry's compensation list in 2005. Of the 10 highest-paid executives, eight of them earned their spots due to seven-figure gains (and in one case, an eight-figure gain) through the exercise of options.
  • Salary Scorecard
    Five top L&P execs defer compensation
    High Point— Many public companies allow top executives to defer all or part of their salary and bonus, but several key officials at Leggett & Platt have again taken that company's deferred compensation program to levels seen at only a handful of corporations. Five top L&P executives gave up large chunks of their 2005 cash compensation in exchange for stock options or discounted sh...
  • Salary Scorecard
    How the salary scorecard is compiled
    High Point— To compile its compensation scorecard, Furniture/Today examined proxy statements, annual reports and other financial reports that companies with publicly traded stock or debt are required to file with the Securities and Exchange Commission. Companies making such filings typically are required to disclose compensation of their five highest-paid executives, although our scorecar...

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