/Casual dining gears to counter tough retail climate

Casual dining gears to counter tough retail climate

Michael J. Knell
1Q results have been lackluster

HIGH POINT — The April market always has set the stage for casual dining’s most critical retail selling season, which opens on Labor Day weekend as consumers ready their homes for the holiday season from Thanksgiving through New Year.

This market is no exception, although category insiders remain concerned about market attendance and open-to-buy after what all agree has been a lackluster opening quarter for the majority of retailers.

“The signs we’re seeing are very contradictory,” said Becki Gould, marketing director for casual dining specialist Saloom.

“There’s a lot of grumbling at retail, but we’ve been seeing double-digit growth over last year, probably because we’re getting a lot of new accounts, especially in the higher-end price points.”

Saloom has moved into a new showroom this market, in space H-10105 of the International Home Furnishings Center.

“We think the attendance is going to be there, but are they going to buy? That’s the million-dollar question. It’s still tough out there,” said Jim DeRose, merchandising manager for the case goods division of Lane Home Furnishings.

“Business has been tough out there, but we’re still getting our fair share,” said Jean Deveault, executive vice president of Canadian casual dining powerhouse Canadel. “It’s looking as though 2013 will be the year when they will separate the men from the boys.”

Dave Shock, national sales manager for Cramco, said, “My sense is that retail is tough, and just like retailers who have to work hard to get customers in the door, it’s the same for us. We have to work hard.”

The key to attracting wary buyers is, of course, new product. Most producers say this will be an above-average market for introductions, although the majority will be building on existing strengths, not branching out into previously unexplored territory.

“We have to be red hot every single market. We’re loaded for bear, so when that retailer walks into our space, he’ll see something fresh and exciting,” Lane’s DeRose said.

One company that is moving into new territory is Saloom, which is introducing here its Hampshire Farm collection, a country casual group inspired by the history and design sensibilities of New England, where it is based.

“Saloom always has been perceived as a contemporary/ transitional manufacturer of casual dining, so this really is something that is different for us,” Gould said.

Capitalizing on a growing trend toward aged and worn furniture, “these tables hearken back to an earlier time in New England when the family’s dining table was made by a local woodworker or by the farmer himself,” she said. “They were made of planks and put together by hand.”

Each group in Hampshire Farm features solid maple or cherry tops aged by hand and treated to create a timeworn look. However, it has a modern twist, allowing the consumer to customize the size, shape and finish color.

“They are literally creating a one-of-a-kind piece,” Gould said. “This collection brings the best of both worlds into the home. It offers all the charm of an antique with modern-day durability.”

Lane Home Furnishings also is bringing out more traditional designs this market with three new groups: Kingsbridge, Blackstone and Seabrook. DeRose describes these imported groups as scaled-down versions of larger formal dining suites.

“We are really broadening our casual dining assortment,” he said. “We want to make it exciting on one hand and productive on the other. This is the meat and potatoes of casual dining; it’s the stuff retailers will sell a ton of because consumers want function, they want price point, and formal is somewhere down the list.”

Each of Lane’s new groups hits the key $999 price point for a table and four chairs, while adding color to solid wood and veneer construction, bringing consumers a value story.

Color continues to dominate thinking at Canadel, which will add 10 colors and nine chairs to its Color Shop program, and another 10 chairs to its Workshop products. But Deveault expects to create the biggest buzz this market with a new plasma TV support unit, which complements all the company’s existing casual dining groups.

“Nobody is going to offer this product with the quality and the variety of colors that we are capable of producing,” he said.

The plan is to offer three different sizes, but the first to be shown will support a 60-inch screen. Deveault is seeking advice from his retail network about the dimensions of the remaining two models. The unit will have an opening price point of US$1,200.

“We developed this line because many of our retailers are also big in electronics,” he said.

Mixed-media specialist Reflections is doing some interesting things with glass-top tables this market, said Vice President of Sales Alan Mintz. “Consumers and retailers are seeing the same old, same old everywhere, so we’re going to give every retailer something different to look at,” he said.

One of the new entries, Manhattan, has a glass top that extends to a length of 96 inches and closes down to become a 32-by-48-inch table, complemented with leather chairs at a suggested retail of US$699/C$799. It also is being offered in three major height options: standard, counter and pub.

Reflections also is introducing a group of tables featuring Brazilian hardwood supporting granite tops to provide an alternative fashion statement.

Cramco always has been strong in the entry and promotional price points, and is shoring up that niche with the introduction of a three-piece “dinette in a box” that retailers can stack in their stores to drive promotions.

Shock said these sets are designed for use in small spaces such as dormitories and high-rise apartments.

What gives this group its value, he said, is that it comes with fully assembled chairs, not the knock-down seating commonly associated with a $99 retail product.

“This is a fully welded chair that adds value for both the retailer and the consumer,” he said.

Cramco also is bringing out six new pub-height groups with curved metal panel chair backs with laser-cut patterns, complemented by tables with glass or laminate tops at a $299 retail price point. Shock believes these groups also are ideal for traffic-building promotions.

The Philadephia-based producer also is expanding its Design Line this market. “Here we offer higher-end looks at lower-than-normal prices,” Shock said.

Chromcraft Product Manager Susan Catchman said product from her company offers new paint, wood and laminate colors, supported by new table and chair styles. “We have a well-rounded program,” she said.

Chromcraft has refurbished its IHFC space for this market and is sharing it with sister company Silver Furniture, which offers an extensive line of imported occasional tables.