Archive for April 19th, 2006
Carole Sloan
Should attract younger consumers
HOFFMAN ESTATES, Ill. — Sears’ top executive sees the soon-to-be-reintroduced ready-to-assemble furniture program as one of the key ways to attract younger customers to the venerable retailer.
“It’s a demographic issue,” said Edward Lampert, chairman of parent company Sears Holdings. “With so much of Sears’ merchandise in home-related merchandise, we would like to get customers in early to build our bonds. If we’re going to connect with a younger customer, the logical area is home related.”
He said that furniture “is adaptable (to Sears business) but it’s an execution business. It’s not an easy business but we ought to be able to do it…. (RTA furniture) is a natural extension of what Sears does well, but it hasn’t done well in the past. We have the capabilities, and we aspire to do it well. Home furnishings (overall) is a big opportunity.”
Lampert spoke at the Sears Holdings annual meeting. The company also owns discounter Kmart.
He also addressed the issue of extending Martha Stewart Everyday home furnishings into Sears stores from its longtime base at Kmart, a move that appears unlikely now that Martha Stewart Living Omnimedia has signed a contract with Macy’s for a complete home program beginning in fall 2007.
The Kmart-Stewart contract extends for four more years, L:ampert said, and the first two years involve high minimum payments, while the last two drop considerably. Before any movement into Sears, “I would like to make sure there’s continuity,” he said. “I would like to understand what options there are. We treated Martha Stewart really well. The product is good and it’s an important part of our business.”
Lampert added the contract with Stewart gives the company the option of bringing Martha Stewart Everyday product into Sears stores. It already is in Sears Canada, in which the U.S.-based Sears has a major stake and is expected to acquire outright soon. He said the acquisition would make the Canadian operation stronger.
April 19th, 2006
— Home Accents Today,
Full year sales stayed nearly even
Blyth Inc., a Greenwich, Conn.-based designer and marketer of home decor and home fragrance products, reported its net sales declined 3.6% to $480.6 million for the fourth quarter, ended Jan. 31, compared to $498.8 million a year earlier.
Fourth quarter net sales were approximately even with last year. Operating loss for the quarter was $6.7 million compared to operating income of $65 million for prior year 4th quarter and reflects a one-time non-cash goodwill impairment charge of $53.3 million pre-tax, arising from a re-evaluation of the goodwill associated with the wholesale group, which includes CBK, Midwest of Cannon Falls and Colonial Candle.
In the wholesale segment, 4th quarter net sales declined to $180.8 million from $196.6 million due to soft sales in most areas. The 4th quarter operating loss of $57.1 million includes the $53.3 goodwill impairment charge and compares to an operating profit of $9.3 million during last year’s 4th quarter. Higher raw material and freight costs in the wholesale segment contributed to lower operating profits.
“Blyth’s fourth quarter results on an operating basis reflect the challenges our business has experienced all year,” said Robert B. Goergen, Blyth’s Chairman of the Board and CEO. “Reduced consumer discretionary spending impacted sales in our direct-to-consumer channels in the U.S., and retailers in the wholesale channel remained conservative in their inventory positions.”
Earlier this year, Blyth paused its plan to spin-off its wholesale segment while awaiting an IRS decision on whether the move would be tax-free. At the end of March, Blyth management announced it has engaged Bear Stearns & Co. to advise it on strategic alternatives within the wholesale segment, and will likely focus on one or more of its European Wholesale businesses, where growth continues.
“Despite these areas of growth and management’s best efforts to increase sales in our more challenging markets, commodity costs and freight surcharges had a significant effect on profitability throughout fiscal year 2005,” Goergen said. “We continue to take proactive actions such as implementing select price increases and cost savings initiatives throughout our businesses in an effort to combat exogenous forces.”
April 19th, 2006
— Furniture Today,
Has worked for company since 1987
FORT SMITH, Ark. — Manufacturer and importer Riverside Furniture has promoted Scott Ostrander to chief operating officer. He has been senior vice president of operations since 1999.
He continues to report to President and CEO Buddy Spradlin.
Ostrander joined Riverside in 1987 as a design draftsman and has steadily moved into jobs with increasing responsibility. For the past seven years he has been a board member of the American Home Furnishings Alliance’s Operations Division, and is serving this year as board chairman.
April 19th, 2006
By: Furniture World Magazine
La-Z-Boy, a leading manufacturer of upholstered furniture, has announced the addition of a La-Z-Boy Gallery® to Home Creations in Washington, Mo., located at 551 Louis and Clark Dr.
The new 10,000-square-foot gallery will feature a broad selection of La-Z-Boy® products for the family room and living room, including the company’s world famous recliners, motion sofas, sleep sofas, sectionals and leather upholstery, as well as stationary sofas and chairs from the Inspired Living Collection by La-Z-Boy®.
The La-Z-Boy In-Store Gallery is part of the 22,000-square-foot showroom at Home Creations.
In addition, a La-Z-Boy Furniture Galleries® store in Metairie, La., located at 3232 Veterans Blvd., has been opened. The new 10,600-square-foot store boasts the design-focused format of the company’s “new generation” stores, which help customers in every step of their furniture shopping and home decorating experience.
“La-Z-Boy offers furniture for any home, whether you are looking for something contemporary or classic, casual or traditional,” said Larry Marquez, who co-owns the store with his wife Candy Marquez, and Mike and Ginger Moskau. “The style, quality and comfort of La-Z-Boy furniture combined with the design expertise and customer service we provide make an easy, enjoyable furniture shopping experience for any customer.”
Headquartered in Monroe, Mich., La-Z-Boy is North America’s largest manufacturer of upholstered furniture and the world’s leading producer of reclining chairs. It is a division of La-Z-Boy Incorporated, one of the nation’s largest furniture manufacturers and marketers.
April 19th, 2006
— Furniture Today,
Set for April 23 on Commerce Ave.
HIGH POINT – Ashley Furniture Inds. and Furniture|Today are inviting attendees of next week’s market to support the City of Hope by donating an hour — and some cash — to take part in the Hike for Hope.
The walk is scheduled to begin at 7:30 a.m. Sunday, April 23, on Commerce Avenue in front of the International Home Furnishings Center.
Registration for the event will begin at 6:45 that morning. A registration form also is available online at www.furnituretoday.com/contents/pdfs/ft_centerCol_img1.jpg
Participants will be asked to make a tax-deductible donation of $100 to the City of Hope, a cancer research and treatment center headquartered in Duarte, Calif. Those taking part will receive commemorative Hike for Hope shirts.
Leading the walk will be Todd Wanek, president and CEO of Ashley, and Joe Carroll, publisher of Furniture/Today.
Donations may be made to the City of Hope in the form of cash, check or credit card.
The City of Hope will acknowledge receipt by return mail.
For more information, contact Ashley’s Paulette Rippley at prippley@ashleyfurniture.com.
April 19th, 2006
Dedication set for next Tuesday
HIGH POINT — The American Furniture Hall of Fame will honor its 68 members with an exhibit at the entrance of Plaza Suites on Main Street here. A ribbon-cutting ceremony is set for 2 p.m. Tuesday, April 25.
“Historical artifacts from the AFHF archival files, which have been collected over the past 17 years, are included (in the exhibit),” said Steve Kincaid, president of Kincaid Furniture and president of AFHF.
Merchandise Mart Properties Inc. is sponsoring the exhibit.
The AFHF is an all-industry effort to honor people whose outstanding achievements have contributed to the continued growth and development of the American furniture industry, and to research, collect and preserve the industry’s cultural, economic and artistic history.
April 19th, 2006
New post combines sales, marketing duties
BRANDON, Vt. – Vermont Tubbs has promoted Denise Ogurkis to the new position of director of sales and marketing. She reports to the company’s president, Bo Harris.
“Her sales and marketing savvy in the furniture industry coupled with her energy and ability bode well for the future of this company,” said Jon McNeill, who with business partner Fred Musone purchased the solid-wood case goods manufacturer in October 2003.
Ogurkis has been a sales representative for Vermont Tubbs for the past year, Harris said, and also works as national sales manager of upholstery manufacturer Comfort Designs, whose senior leadership is close with the Vermont Tubbs team. She retains those roles as she adds the new responsibilities.
Vermont Tubbs is merging two roles, director of marketing and national sales manager. Hal McAdams, who was the sales manager, has transitioned into pursuing contract sales while still handling some retail accounts.
Vermont Tubbs will feature three new solid-wood collections in High Point this week: Morgan, a contemporary look; Stratton, an upscale, clean transitional/contemporary; and Stamford, which extends the youth Camden line into more adult and male audiences.
The company shows in High Point at 309 N. Hamilton St., the Classic Leather building, on the second floor.
April 19th, 2006
By: Furniture World Magazine
Butler Specialty will showcase 15 new hand-painted finishes – 50 percent more than ever before – at the International Home Furnishings Market in High Point, N.C., this month.
The new finishes – from the bold Uptown Stripe to the sleek Retro – will be part of an aggressive introduction in Artists’ Originals, which features authentically hand-painted pieces and has emerged during the past two years as Butler’s best-selling collection. Some of the new finishes offer timeless appeal, others make cutting-edge fashion statements.
Overall, Butler will unveil more than 150 new fashion-forward products across 11 diverse collections in High Point, including 60 in Artists’ Originals. Beginning this month, retailers and interior designers will have more than 1,000 Butler products (320 in Artists’ Originals) and 50 hand-painted finishes from which to choose. Twenty-six new products are designed to retail for under $400.
Increasing numbers of consumers are discovering that painted accent furniture can add excitement and fashion to virtually any room in their homes. Perhaps most importantly, they appreciate how top-quality, authentically hand-painted furniture imitates fine art by evoking strong feelings.
Home furnishings retailers, of course, are taking notice.
“They (retailers) used to tell us, ‘We don’t sell paint,’ ” says Dan Sumner, Butler vice president of sales and marketing. “We don’t hear that very much anymore. Dealers are beginning to understand the versatility and merchandising power of paint.”
For example, a Butler micro boutique with six pieces available in six
finishes gives the retailer 36 items to sell in a small, eye-catching space. Butler provides retailers with backup on these special orders, maintaining a large inventory that ships from Chicago within two weeks after the order is received.
“By offering a variety of finishes, retailers can appeal to a broader range of consumers, overcome many consumer objections and significantly increase their special-order business,” Sumner says. “Plus, because of our quick-ship program, we can back retailers up while eliminating warehousing and inventory overhead for them.”
Butler designers and product development team found inspiration in an impressionistic painting, antique shop, bedspread, sofa fabric and, yes, bling bling. The 15 new hand-painted finishes this market will be Antique White (with five accent colors – green, blue, black, mauve and gold), Autumn, Black-and-White Polka Dot, Black Empire, Black with Gold Tipping, Chinoiserie, Flower Garden, Gray Swirl, Hunter Green Floral, Pine ‘n’ Cream, Red-and-Black Diamond, Red-and-Green Floral, Retro, Silver Satin and Uptown Stripe.
Each piece of Artists’ Originals is uniquely painted in freehand without the use of stencils or decals (a genuine distinction in the industry). The paintings feature florals and chinoiserie, among other classical motifs. Like any piece of fine art, each Artists’ Originals piece is designed to be the brightest spot in any room and to reflect each consumer’s unique sense of style.
“We have taken the high road in hand painted,” says John Faig, vice president of product development. “We refuse to compromise on quality. There are companies that can do it cheaper, but you can really tell when you look at one of our pieces that somebody did it by hand. For discerning consumers, that hand touch makes all the difference.”
Chicago-based Butler was founded by two men in 1930 and is managed today by second and third generations. It has specialized in accent furniture longer than any other company in America and offers the broadest line in the industry. Products include chests, tables, benches, chairs, game tables, console cabinets, secretaries, armoires, bars, entertainment centers, headboards, fireplace screens, desks, pedestals, mirrors and globes.
April 19th, 2006
— Home Accents Today
Deadline is Aug. 4
The American Society of Furniture Designers is accepting applications for its 2006 Pinnacle design achievement awards. Now in its 11th year, the awards competition promotes outstanding furniture design quality by recognizing and honoring furniture designers within the retail home furnishings industry.
Entries may be made in 15 categories including accessories, bedroom, casual dining, home entertainment, home lighting, home office, juvenile, leather upholstery, major collections, motion upholstery, occasional storage, occasional tables, stationary upholstery and summer/casual.
Entry forms including requirements and eligibility rules are available for downloading at www.asfdpinnacle.com/downloads. A free 2006 Pinnacle poster/entry kit is also available by contacting ASFD at 910-576-1273 or by e-mail at info@asfd.com. The submission deadline for all entries has been set for Aug. 4, which is a month earlier than in previous years.
The 2006 Pinnacle Awards banquet will be held Wednesday evening, Oct. 18, at the International Home Furnishings Center Ballroom in High Point, N.C. The new fall schedule for the Furniture Market is Monday to Sunday, Oct. 16-22.
Furniture/Today, a sister publication to Home Accents Today, serves as the major underwriter of the 2006 ASFD Pinnacle Awards. It also will participate in the planning and execution of the October awards banquet.
The 2006 Pinnacle Awards sponsors include APA-The Engineered Wood Association, Appalachian Hardwood Manufacturers, Elmo Leather, FurnitureFan Inc., Leggett & Platt, The October Company, Weyerhaeuser, World Market Center Las Vegas and various trade publications.
Judges will include Dr. Richard Bennington, High Point University; Gary Evans, Furniture/Today; Leslie Fishbein, Kacey Fine Furniture; Francel Goude, RFG Global Design Group; Jackie Hirschhaut, American Home Furnishings Alliance; Dr. Thelma Lazo-Flores, Savannah College of Art & Design; Sheila Long O’Mara, Home Furnishings Business; Dan Minor, Boyles Furniture; Julie Smith, Furniture Style; Max Shangle, Kendall College of Art & Design; Steve Walker, N.C. State University and Rhonda Wolf, Havertys Furniture.
April 19th, 2006
By: Furniture World Magazine
To be staged in AsiaWorld-Expo on October 27 – 30 2006, the Hong Kong International Furniture Fair is co-organised by two renowned and successful trade fair organizers in Hong Kong, namely Kenfair International Limited and the Hong Kong Trade Development Council.
Hong Kong – a cosmopolitan city that not only brings together latest trends and styles, but is also a long-established and well-reputed trading hub. It is a most convenient place to host this trade show, a platform for worldwide furniture suppliers and buyers.
A huge array of top-notched furniture will be showcased in the Hong Kong International Furniture Show, including branded, decorative, intelligent, classical and ethnic furniture.
To help exhibitors facilitate trade during the show, the organisers have invited buyers and trade association representatives from North America, Europe, Australia, the United Arab Emirates and Asia, etc. to visit the show.
This trade fair will be launched in AsiaWorld-Expo, Hong Kong’s newest trade show venue. Its location near the Hong Kong International Airport will enable international buyers and exhibitors to reach the showground within minutes of arriving Hong Kong.
Apart from the previously mentioned advantages, the Hong Kong International Furniture Fair’s strategic timing is perfect for furniture retailers and importers. Spring and autumn are the peak sourcing periods.
Scheduled for late-October, the Hong Kong International Furniture Fair is expected to attract international furniture buyers from department stores, interior design firms, chain stores and renovation companies etc.
For more information on the Hong Kong International Furniture Fair email hongkongfair@furninfo.com.
April 19th, 2006