Jeff Linville
Retailers may be suffering from market overload

HIGH POINT — Premarket traffic is down in double digits this week, manufacturers said on informal event’s first day Monday.

An overload of markets in the first quarter of the year has pushed many retailers to stay home, according to reports from showrooms here.

Pulaski Furniture and Largo International, for example, opened their High Point showrooms in January during a buyer event held by Lifestyle Enterprise. Then they saw customers at markets in Las Vegas and Tupelo, Miss.

Bill Kemp, president of case goods importer Kemp Enterprises, said the retailers are telling him, “I can’t go to all of them. Which ones do I have to cut out?”

Kemp said his company sees about 25 accounts during a typical premarket, but expects to see between 10 and 15 this time. By late Monday, he had seen six.

Magnussen Home Furnishings had 13 appointments, about half of what it usually gets, said Jeff Cook, president and CEO. Even so, the company had plenty of new product for those we came, including 18 table groups and four bedroom suites.

“We’re dressed and ready to go,” said Cook.

Palliser had 11 key accounts through on Monday and expected 15 for the week, about a third less than in the past, said Roger Friesen, senior vice president of sales and marketing.

Century, Hooker, Pulaski, Kincaid and Largo also reported fewer customers.

Some retailers and exhibitors said last fall that premarket was losing its importance and would not return. Manufacturers tried to anticipate reduced attendance and be proactive in driving sales.

The retail environment is softer than expected for the first quarter, said Friesen. There have been good days and metro areas that have had good sales, but no underlying momentum, he said.

Sales teams have to be out there aggressively seeking business every day to drive orders, he said.

After strong sales growth in 2012, Magnussen had projected a 34% increase this year, boosted by its entry into the home entertainment furniture category next month. But sales are up only 16% so far, said Cook.

While the economy could perk up, some manufacturers said it is too late for premarket to rebound. Importers have said that previewing goods in March gives them too little time to tweak the product before the April High Point market.

Kemp said he believes that future events like the mini-market Lifestyle Enterprise held in January could eventually replace premarket.

“It would push premarket back further to be able to tweak product,” he said. “When premarket is in March and your product is being made in Asia, there is not a lot of opportunity to make changes.”

* Associate Editor Thomas Russell and Editor-in-Chief Ray Allegrezza contributed to this story.