FURNITURE TODAY ®
THE BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY
MARCH 14-20, 2016 VOL.40 NO.28 $10
F U R N I T U R E T O D A Y. C O M
TEMPUR SEALY’S ROLL UP
Launches Sealy bed-in-a-box for under $1,000 p38
PREMARKET SEES BRISK INTROS p34 ART VAN GOES UPSCALE CONTEMPORARY WITH HILLSIDE PURCHASE p38 TOP-OF-BED CAN TOP OFF LARGER TICKET
If you’re selling bedroom furniture and mattresses, the addition of a comforter, duvet or pillow can be an easy add-on and significantly improve sales per square foot. p14
NEW LEADERSHIP AT BOB’S DISCOUNT FURNITURE
The fast-growing Top 100 company has promoted Michael Skirvin to CEO and Ted English to executive chairman, but don’t expect a major shift in the retailer’s aggressive growth plans. p2
AWARD-WINNING DESIGNS BOOST AMNBIENTE 2016
Buoyed by an increase in international visitors, the annual event showcased cutting-edge European design for indoor and outdoor furniture. p26-30
BAR CARTS AREN’T JUST FOR ALCOHOL ANYMORE
Tailor-made for e-commerce, these stylish carts can be used for food service, for displahying collectibles, and even serving your favorite single malt. p22
Large-scale dining
tables gain strength The demise of larger “formal” dining tables has been greatly exaggerated, as producers routinely get orders for tables exceeding 120 inches. p8
FURNITURE TODAY ®
THE BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY
MARCH 14-20, 2016 VOL.40 NO.28 $10
F U R N I T U R E T O D A Y. C O M
LARGE-SCALE Dining Tables GAIN STRENGTH The demise of larger “formal” dining tables has been greatly exaggerated, as producers routinely get orders for tables exceeding 120 inches. p8
PREMARKET
Sees Brisk Intros p34
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MARCH 14-20, 2016 VOL.40 NO.28 $10
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THE BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY F U R N I T U R E T O D A Y. C O M
LARGE-SCALE Dining Tables GAIN STRENGTH The demise of larger “formal” dining tables has been greatly exaggerated, as producers routinely get orders for tables exceeding 120 inches. p8
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MARCH 14-20, 2016 VOL.40 NO.28 $10
THE BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY F U R N I T U R E T O D A Y. C O M
LARGE-SCALE Dining Tables
GAIN STRENGTH The demise of larger “formal” dining tables has been greatly exaggerated, as producers routinely get orders for tables exceeding 120 inches. p8
March 2016 FURNITURETODAY.COM | 5
CONTENTS STAFF 6
EDITORS DESK Portent from Premarket
11
STAFF LISTING
INDUSTRY NEWS 3
BOB’S PROMOTES SKIRVIN TO CEO, ENGLISH TO EXECUTIVE CHAIRMAN Moves unlikely to lead to major strategy shifts
4
FMCSA PROPOSES TRAINING STANDARDS FOR ENTRY-LEVEL TRUCK DRIVERS
5
ARTICLE TITLE Subheading
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7
ARTICLE TITLE Subheading
DINING REPORT 8
DEDICATED DINING ROOM Tables that seat 10, 12 or more gain traction
9
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13 AMBIENTE SHOW REPORT
BEDDING TODAY 15 ARTICLE TITLE Subheading
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SPECIAL REPORT: TOP-OF-BED 8
28 HIGH POINT PREMARKET
12
37 CLASSIFIEDS
ARTICLE TITLE ARTICLE TITLE
ACCENT FURNITURE REPORT 22
BAR CARTS AREN’T JUST FOR ALCOHOL ANYMORE
FURNITURE TODAY
30 OBITUARIES
Bar carts are tailor-made for e-commerce, these stylish carts can be used for food service, for displaying collectibles, and even serving your favorite single malt. p22
THE BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY (USPS 330-630) (ISSN 0194-360x)
Published weekly 51 times per year except for the 4/25, 7/4, 10/31 and the 12/19 issues with three issues produced on 5/10, 11/15 and 11/22 by Progressive Business Media, 7025 Albert Pick Road, THE BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY F U R N I T U R E T O D A Y. C O M Greensboro, N.C. 27409. Subscription rates (quoted in US dollars) US: 1 year $189.99, 2 years $360.98, 3 years $522.47. Canada and Mexico: 1 year $239.99, 2 years $455.98, 3 years $659.97. All other countries: 1 year $349.99, 2 years $664.98, 3 years $962.47. Single copies US: $10.00, market and special issues $10.00-$25.00. Single copies outside of the US: $20.00, market and special issues $20.00-$35.00. (includes shipping and handling), prepaid US currency. Subscription inquiries: Furniture Today, PO Box 16659, North Hollywood, CA 91615-9519. Phone (818) 487-2015. Subscription requests may be made via email at subscriptions@furnituretoday.com, or to update/manage your subscription visit www.furnituretoday.com/subscriptionservices. Periodicals postage paid at Greensboro, N.C. 27409, and additional mailing offices. “FURNITURE/TODAY” and “THE WEEKLY BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY” are registered trademarks of Progressive Business Media used under license. Progressive Business Media doe not assume and hereby disclaims any liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident or any other cause whatsoever. POSTMASTER: Send change of address to Furniture/Today, P.O. Box 16659, North Hollywood, CA 91615. Posted under Canadian International Publications Agreement # 40624074. Return undeliverable Canadian addresses to: APC; P.O. Box 503, RPO West Beaver Creek, Rich Hill, ON L4B 4R6. FURNITURE/TODAY copyright© 2013 by Progressive Business Media. Printed in USA ®
6 | FURNITURETODAY.COM March 2016
EDITOR’S DESK PORTENT FROM PREMARKET
W
hether you’re in retail or manufacturing, the ability to forecast is important, even critical to decision making.
were looking to cover ground, focus on the fundamentals and leave the chit-chat for a time when business is a little easier to come by.
People look at all manner of economic indicators—consumer confidence was down in February after a modest increase in January; housing starts were down in January compared to December and roughly flat with a year ago; unemployment in February was 4.9%, the same as January and down from 5.5% last year. And the National Association of Realtors is predicting low single-digit gains for the housing industry this year.
Those we spoke with described a first quarter that was uneven at best, with each strong selling period followed by a momentumreversing lull.
And then there is the tried and occasionally true method of divining the future through market activity. Busy markets, business must be good. Slow markets, Katy bar the door, the sky is falling. So what can we make of last week’s Premarket, which by most accounts was busy—certainly busier than last fall? I wish there was a clear, definitive answer. That’s simply not the case. Traffic was good, but there was a distinct sense that retailers came here serious about digging in, looking to lock up key lines and add things to strengthen their assortments. While Premarket is sometimes social and provides time to connect, there was a clear sense this spring that dealers
There was also widely expressed concern over this year’s impending Presidential election and the impact it may have in blunting sales momentum. At a time when retailers are working harder for every sale, the prospect of dramatic increases in ad rates driven by massive election-year spending is daunting at best, downright scary at worst. There was also widely expressed concern about the tone of this year’s election, on both sides of the aisle, as fear of a polarized electorate raises the prospect of consumer paralysis. Any industry veteran can tell you that a nervous, uncertain consumer is far more likely to hold their discretionary dollars than spend them. Despite these concerns, this was not a Premarket defined by overly cautious, risk-averse or even mildly refreshed designs. Instead there was a wealth of new technology, envelopepushing colors and silhouettes as well as a clear focus on changing the traditional role of furniture in the American home.
Those of you who missed Premarket should expect to see an enhanced emphasis on functionality in both upholstery and case goods. There is also a clear recognition that changing consumer lifestyles are “There is a impacting living clear recognition spaces, in size and in their that changing relationship consumer lifestyles to technology. are impacting living Designs at spaces, in size and Premarket in their relationship reflected these to technology.” changes and clearly demonstrate this industry’s ability to adapt to a changing consumer marketplace. This is going to be a year of change for the furniture industry. And if Premarket is any indication, it’s going to be in a very exciting, positive direction. Editor in Chief Bill McLoughlin
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ACCENT FURNITURE REPORT HIGH POINT — Functional flexibility, e-commercefriendly scale, in-home entertainment trends, and a variety of looks and price points are making bar carts a hot piece of accent furniture. Without fail, vendors contacted by Furniture/Today said bar carts are a growth business, and said they plan to keep building on that success by continuing to expand their selections in the category. The increasing popularity of bar carts reflects several trends among U.S. consumers and popular culture.
Butler Specialty mixed highsheen metal, glass and wood in the 3240140 model, one of its best-selling carts. It retails at $329.
The vibrant, dusty lavender color and space-friendly scale of Sauder’s Inspired Accents cart landed it in the April issue of Elle Décor. Retail is $99.99.
“The show Mad Men with their amazing sets introduced a new generation to mid-century modern furniture and the bar cart,” pointed out Sean McFadden, vice president of sales at Interlude Home, which has had great success with bar carts the past few seasons. “The rescaling of large parts of the housing market replaced a lot of trophy bars with smaller elegant bar carts in the living space.
MUST H AV E S
ROLLING STOCK bar carts gain momentum
“Finally the popularity of high-end liquors in display bottles brought the single malts, anejo tequilas, and chef-inspired products like He dricks gin out of the cabinet and out into the room. The bar cart has become a lifestyle display piece.” The pieces also are very functional, both in terms of use and location in the home, said Neely Jo Peck, merchandising manager at Powell Home Fashions. “You can use as a serving piece, a table or display piece,” she said. “Having wheels allows for easy movement around your home. With so many styles that are offered, bar carts can be an easy compliment to any decor style.” Bassett Mirror Vice President of Merchandising Ron Cepulo noted a trend among Millennials doing more entertaining at home. “With all the micro-breweries and smaller distilleries coming up, it’s become a trendy thing,” Cepulo said. “They like to show off their ‘treasures’ — a specialty single-malt scotch or specialty bourbon. I saw a report where 48% of the wine sold in America is to Millennials.” Housing trends are favorable toward multifunctional items such as bar carts. “Many Millennial and Baby Boomer consumers live in smaller spaces, and the growing popularity of entertaining at home makes this product highly desirable,” said Cindy Cantrell, sales manager at Butler Specialty. “Bar carts can easily be repurposed for accessories in the bedroom and bathroom because of their mobility, which makes this a must-have item.” It’s also a “fun” item, pointed out Arteriors President Mark Moussa. “Aside from the decorative appeal, they are now often the focal point of a room,” he said. “There’s something inherently celebratory about a bar cart filled with all of the accoutrements that signal a party or at least a good time. Who doesn’t love that?”
E-commerce friendly
Bar carts are tailor-made for e-commerce, given their small scale and the fact that many ship readyto-assemble. “As long as we keep them small and contemporary they will go for the younger Millennial buyer, who will prefer to buy this online,” said Zuo CEO Luis Ruesga, which unveiled seven carts at January’s Las Vegas Market.
The angular 532-415 bar cart from Powell Home Fashions retails around $249.
As an RTA vendor, all of Sauder’s products are e-commerce friendly, and bar carts are no exception. “E-commerce offers the best opportunity for placement of bar carts, largely because e-commerce doesn’t have the same physical limitations of brickand-mortar retailers, where revenue may be lost in square-foot placement calculations,” said Mike Lambright, director of marketing. Interlude Home’s Julien cart features gold accents on a sleek, simple frame. Suggested retail is $2,250.
Consumer interest in this item currently sends them to the Web, Interlude’s McFadden noted. “We do sell the bar carts as an ecommerce item, but it has to be the right partner who understands how to romance the category and the styles,” he said. “Horchow is a great example.” p6
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March 2016 FURNITURETODAY.COM | 9
ACCENT FURNITURE REPORT Many Millennial and Baby Boomer consumers live in smaller spaces, and the growing popularity of entertaining at home makes this product highly desirable. Bar carts can easily be re-purposed for accessories in the bedroom and bathroom because of their mobility, which makes this a must-have item. — CINDY CANTRELL, BUTLER SPECIALTY’ It’s also a product that is easy for online shoppers to grasp — they play well online. “It’s the visual appearance. They’re simple, they show the function, and it’s an item people use as an accent throughout the home, whether in their dining room, living room or family room,” said Cepulo at Bassett Mirror. In addition to visually understandable function online, bar carts appeal to impulse shoppers, Cantrell of Butler said. “The e-commerce channel provided much of the visibility and initial interest in the bar cart category that has driven Butler’s ongoing category expansion,” she said. Moussa said its site makes it easy to discover product, plan projects and order from Arteriors. “A retail buyer or designer in pursuit of a bar cart can see them all at one time or narrow search results by availability, color, material, size and price, making it easy to find the perfect piece,” he pointed out. Peck at Powell Home Fashions’ noted that their relative value and easy shipRolling Stock Bar carts gain momentum online and in stores The vibrant, dusty lavender color an space-friendly scale of Sauder’s Inspired Accents cart landed it in the April issue of Elle Décor. Retail is $99.99.
wheels, doors, drawers are a few options that customers are looking for.” “Demand and placement have been strong,” said McFadden at Interlude. “We see immediate reorders on new styles from our retailers, and that is the most important thing. When a style trends and sells for our retailers it will continue to trend and sell for us.” That customer interest will keep Sauder expanding its assortment of carts. “Our bar carts are newer extensions to existing collections, so we’re leveraging the proven success of these styles and collections to bring new, stylish and affordable options to consumers,” Lambright said. “Our bar carts are designed and positioned as multifunctional accent pieces rather than dedicated bar carts, so the sales opportunity is larger because it makes the product appealing to a wider range of customers.”
MUST H AV E S
ROLLING STOCK bar carts gain momentum
Besides their appeal for entertaining, Butler’s retail customers merchandise carts in a variety of ways to demonstrate their multi-functional capabilities.
Bassett Mirror’s Fouquet bar cart got face time with consumers the past few weeks on the “NCISLos Angeles” and “Black-ish” tel vision shows. It retails for $599.
“Consumers are drawn to bar carts for these reasons, and can express their individuality with their choice of design and function,” Cantrell said. “Our savviest retail customers have taken advantage of this trend by offering bar carts in a variety of styles, shapes and materials.
“That being said, the retail store floor is also a great avenue to run this item,” she said. “This way, a customer can see the piece in person, have a sales representative explain all of the features, and take it home with them that day.”
They recognize that bar carts are great as both impulse purchases as well as add-ons.” Ruesga at Zuo said its retail customers in metropolitan areas are doing particularly well, pointing out Erdos at Home as a great example.
Legs (or wheels) at Retail
“Online stores are doing great too because this item is KD and easy to ship,” he added. Bar carts have always sold well to retailers, said Moussa, but as interest has increased, Arteriors’ offering has expanded.
Peck and other vendors said customer orders for bar carts keep increasing. “Smaller sized carts are becoming more popular as they are great solutions for smaller spaces,” Peck said. “It is becoming all about function. The more function a cart has, the more appealing it is to a customer. Sliding shelves, wine and glass storage,
In addition to re-kindled interest in crafted cocktails and entertaining at home, retailers are getting savvier with merchandising the category. “I
constantly see styled bar carts in rooms or vignettes on digital platforms, in print and in media which also creates awareness,” he said. “The styled bar cart is easy for everyone to incorporate into their own homes.”
An Expanding Category
Vendors plan to capitalize on the increasing popularity and visibility of bar carts. “We’ll have two or three new carts this market, and we’re expanding our hospitality cabinets, which have bar function in a space-friendly scale, as well,” said Cepulo at Bassett Mirror. “We even have bar function in some of our accent end tables.” Consumer trends shows the growing popularity of casual dining options as consumers are entertaining from home, but on a smaller, less formal scale, said Sauder’s Lambright. “Barware, in particular, has seen a tremendous amount of interest over the past year with the growth of the craft cocktail movement,” he added. “The bar cart is a staple of home entertaining, and we’ve seen many consumers who are interested in styling and displaying their barware on a mobile cart that can transition from room to room as you entertain.” Butler Specialty will expand its offering to include a broader array of aesthetics, finishes and materials, including acrylic, glass, wood and wicker to name a few. Zuo, which has concentrated on metal contemporary carts, plans a move into more transitional and industrial styles incorporating more materials such as wood and even concrete. Powell and Arteriors also will keep adding to their assortments. “We will continue to introduce bar-cart styles to meet the tastes of the consumers,” said Arteriors’ Moussa. “When we have new introductions in a specific category of product, we are always careful to evaluate plus business versus dilution of existing styles, but there has been very little sign of that in the bar cart category. We continue to develop and launch styles.”
BY POWELL SLAUGHTER
A Classic Deco statement piece, the Rupert bar cart from Arteriors retails for $1,650.
Report
10 | FURNITURETODAY.COM March 2016
AMBIENT SHOW
BY CINDY W. HODNETT
Ambiente partner shows retail scene
HIGH-END furniture made in ITALY BOLOGNA, Italy — Italy was the 2016 Partner Country at Ambiente, and during the show, thousands of visitors toured Paola Navone’s visual homage to products manufactured in Italy at the Frankfurt Fair and Exhibition Centre. Evening street scenes in Bologna, Italy, highlight the next step for Made in Italy home furnishings story with snapshots from Kartell, a manufacturer/retailer with 130 single-brand flagship stores, 250 shop-in-shops and 2,500 retailers in more than 130 countries, and Home Décor Italy, a design studio and full-service interior design firm that features a range of high-end furniture
As in many European urban areas, pedestrian traffic remains active at night in the city center in Bologna, Italy.
Kartell’s retail store in Bologna, Italy, showcases many of the brand’s iconic seating designs.
March 2016 FURNITURETODAY.COM | 11
OPINION TODAY CREATIVITY IN PRODUCT DEVELOPMENT NEVER FADES
CINDY HODNETTE
UPHOLSTERY + STYLE EDITOR
W
Raven and Nellie are two of the occasional chairs in Actona’s High Point showroom.
e’re in the midst of Premarket as I write this, and once again, the introductions promise to create a lot of excitement when High Point Market kicks off on April 16.
After showing me Nora and Nellie — two occasional chairs that work well as dining or small living room additions — and Avanja, a modern counter stool, Simon offered a statement that made a huge impression.
As usual, the creativity of the product development people in the furniture industry never ceases to amaze me. It’s a tall order to figure out ways to get a person to buy anything that doesn’t have an i in front of it these days, and yet, in workrooms across the country, these creative souls somehow figure it all out. Buyers will see what I’m talking about firsthand in April, in showrooms big and small.
Pointing to the chairs, she tied in the aesthetics of Danish design with current consumer trends in the United States.
One of the most interesting conversations I’ve had so far happened in the Actona showroom. While putting together the spring introductions on the showroom floor, Lene Simon, vice president of sales for North America, invited me to come in and take a look around. Full disclosure — I love Scandinavian design, so it didn’t take much persuading to get me to stop, but one of the remarks that Simon made stuck with me the rest of the day. While showing me product that she described as “Danish design and quality with the prices that come with China’s manufacturing efficiencies,” Simon offered a few of her strongest selling points. “We’re offering Danish design and Danish morality,” she said. “We utilize the tremendous amount of manpower available in China, and we run lean and efficiently. We treat our people well. “Also, the U.S. market has embraced European scale. The smaller, more compact interiors we’ve always had in Europe have become very popular with many Americans,” Simon continued. “Our furniture fits that model.”
“From what happened with the economy to the fact that it’s cool to be green now, there are many factors that are influencing consumers to responsible purchases,” Simon said. “I can tell people that they are buying a product that will never go out of style, furniture that will last and that can be passed down. Of course, everyone wants to sell more, but consumers are demanding quality and we have to respond.” A few weeks ago, I came across a web site called buymeonce.com. This curated retail site is growing significantly, and its underlying theme is quality, a sort of less-is-more, buy-the-best and buy-it-once mantra.
“CUSTOMERS ARE DEMANDING QUALITY AND WE HAVE TO RESPOND” -Lene Simon At the moment, the Londonbased founder and CEO, Tara Button, is searching for additions to the U.S. furniture category, and the site is issuing design challenges to encourage product development that embraces sustainability, quality and a commitment to lasting designs. Furniture suppliers and artisans should take a look — it’s a possible opportunity to make a statement and a sale. Nobody has the crystal ball that is going to offer definitive answers on where the market will go over the next decade. However, the popularity of sites like BuyMeOnce seem to suggest that it’s time to think about what happens if large numbers of consumers (think Millennials) switch from a buy-the most mentality into a buy-the-best/ buy-it-once philosophy.
12 | FURNITURETODAY.COM March 2016
March 2016 FURNITURETODAY.COM | 13
Report SPECIAL
Savvy retailers top off sales with top-of-bed BY THOMAS LESTER
THERE ARE OPPORTUNITIES HIGH POINT — Furniture stores are always hgoing to have beds on display. Some have discovered ways to do more with those displays. According to Furniture/Today estimates, master bedroom sales accounted for 10%, or $10.5 billion, of 2015 furniture and bedding sales. Additionally, youth and other adult bedroom sales tacked on another 6%, or $5.9 billion, in sales. Savvy retailers realize that there are opportunities to add to these figures that don’t involve much — if any — additional square footage in the store. By selling top-of-bed accessories such as comforters, duvets, blankets and pillows, retailers can bolster tickets by using items they incorporate into their in-store merchandising plans.