Home Textiles Today August 16th Issue by Sandow Media

Monday, August 16, 2010

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

Kohl’s 2Q Gets Boost from Home M ENOMON EE FALLS , W IS . — The home business at Kohl’s enjoyed several gains during the second quarter, as the some of the mid-tier department store’s private brands experienced double-digit sales increases and the overall category saw comps bump up as well. The overall home business, along with women’s and accessories, reported comp sales increases in the low- to mid-single range for both the quarter and year to date. But more notably, sales increased by 20% for Kohl’s three largest private brands combined

– Croft & Barrow, Sonoma and Apt. 9, of which the latter two’s mix includes soft home product offerings. And among the retailer’s exclusive brands, Food Network and Simply Vera Vera Wang as well as Elle and Fila Sport reported a 30% total sales increase. Kohl’s total private and exclusive brands penetration increased more than 300 basis points to reach 49.1% of total sales for quarter. Building on its momentum in home, 1,089-unit Kohl’s is expanding the category next month SEE KOHL’S PAGE 23

Lord & Taylor Heading Back into Home Category BY CAROLE SLOAN N EW YORK — Lord & Taylor, one of retailing’s most venerable department stores, is reentering the home furnishings arena in a major way, with a full floor in its Fifth Avenue flagship planned to opening October. The approximately 20,000square-foot ninth floor will be dedicated primarily to Calvin Klein Home’s White Label program, including home textiles, rugs, tabletop, accessories, table linens and furniture, and Lau-

htt0100802_001.indd 1

ren by Ralph Lauren home merchandise from home textiles to furniture and related tabletop, and decorative accessories. The Calvin Klein White Label offering “will be the first time we have been able to clearly showcase the brand as an entity rather than in classification product categories,” explained Bentley Hardwick, vp, managing director, Calvin Klein Home. “It will be a major opportunity to have the largest Calvin SEE HOME PAGE 23

hometextilestoday.com

| Vol. 31, No.20 | $8.00

JCP’s Bed and Bath Biz Making Strides in 2Q BY CECILE B. CORRAL PLANO, TEXAS — Soft home is showing “new signs of life” at J. C. Penney Company Inc., as a revamp of the business under new leadership is paying off in bedding and bath. During the 1,107-unit department store’s second quarter earnings call last week. chairman and ceo Mike Ullman credited JCP’s recently appointed svp and general merchandise manager of home, John Tighe, and his team with “doing a very good job of getting [home] more organized in a more logical manner.” Ullman singled out some of soft home’s recent highlights, including increasing SEE JCP PAGE23

With Strong Q2, Macy’s ‘Locked and Loaded’ for 2nd Half vironment remains uncertain, Macy’s and Bloomingdale’s have C INCINNATI — Thanks to high- a terrific opportunity to continue er-than-expected sales, improved to take market share and grow our margins, a reduced expense rate business profitably.” and more disciplined inDuring the 850ventory management, unit department store Macy’s Inc.’s second quarchain’s earnings call ter exceeded expectations last week, cfo said quaron several fronts, and earnterly results “exceeded ings per share surged to 35 our expectations in cents from 2 cents in the all key components of year-ago period. our performance,” and “We believe our busi- KAREN HOGUET added that home was Macy’s ness is beginning to hit its “strong,” particularly stride after implementing in the luggage, furnisignificant structural and organi- ture and mattress categories. zational changes over the past two “Private brands and exclusive years,” said Terry Lundgren, chair- products also achieved terrific man, president and ceo, in state- growth throughout the store durment. “While the economic en- ing the quarter,” she added. BY CECILE B. CORRAL

For the quarter, ended July 31, sales rose 7.2% to $5.5 billion, with consolidated comps up 4.9%. Combined online sales for macys.com and bloomingdales.com jumped 28.1% in the quarter. “Our internet continues to grow…Both Macys.com and Bloomingdales.com are proving how import ant they are by driving store traffic…,” Hoguet explained, adding that the company “now has the capability in all Macy’s stores to access the dot-com inventory to satisfy a customer. We are finding tremendous excitement for it both among store associates and customers.” SEE MACY’S PAGE 18

8/13/2010 5:00:47 PM

Home Textiles Today

Retail Briefs

August 16, 2010

ecoupage artist John Derian will do another limited run collection of home décor pieces for Target. This marks the third collection of John Derian for Target, which consists of nearly 100 skus all priced under $25, including decorative trays, wall art and coasters, as well as stationery items such as mini journal sets and paper organizers.

Claiborne Apparel Rollout Begins at JCP, Home Coming up

he rollout of Liz Claiborne and Claiborne as JCPenney exclusives is now underway in women’s and men’s apparel, with home slated to hit stores in January 2011. The full program will cover 30 product categories in apparel, home and accessories, positioned to hit the “better” and “best” tiers. Under the agreement, Liz Claiborne Inc. handles design while JCPenney performs sourcing, merchandising and marketing.

Sam’s Club Adding Wi-Fi

y November, Wi-Fi service will be available in all Sam’s Clubs, allowing customers use of their Wi-Fi enabled smart phones and Sam’s associates to demo internet TVs and other internet-connected products. Sam’s will also introduce an app for iPhone, BlackBerry and Droid that provides extra discounts as well as product information and reviews.

Dillard’s returns to profitability

atter margins and lower inventory rates helped push Dillard’s second quarter net income into the black. For the quarter ended July 31, net income was $6.8 million, or 10 cents per share, compared to a yearago net loss of $26.7 million, or 36 cents per share. Gross margin improved by 270 basis points of sales and inventory was 6% lower. Total sales – which include the company’s CDI Contractors, a construction business – declined 2.8% to $1.389 billion. Merchandise sales slipped 1% to $1.37 billion.

July spending lackluster

uly retail sales rose 3.1% compared to a year ago, according to the National Retail Federation. Sales at furniture and home furnishing stores rose 0.4% year-over-year but declined 0.3% from June

Protect A Bed.indd 1 htt100802_002.indd 2

> hometextilestoday.com

American Exhibitors Hopeful for Positive Mood

Target Readies Another Limited Edition Collection

News

BY CAROLE SLOAN B RUSSELS, B ELGIUM — Hopeful

but not overly positive, American exhibitors at Mood, the former Decosit decorative fabrics show held here annually in mid to late September, point to a small uptick globally in this segment of the business. In several past years, timing overlaps with Ramadan kept many Middle Eastern buyers from attending. But this year, the observance ends three days before the show’s Sept. 12 kick-off. Compared with the show here in 2009, exhibitors feel that business generally has improved and will result in better business. There also are companies that stayed out of Decosit or Mood to show in nearby hotels, and now have returned to the exhibit. Still, the American presence among exhibitors is significantly smaller than in the last decade or more. One plus that most refer to is that it is a strong point of assemblage for many of their global customers in a venue that is visitor friendly, offers a good climate and is timed right for their businesses, whether jobber, retailer

Imperial from Covington, is a feminine Chinoiserie-inspired floral on a high blend linen/viscose/cotton base cloth. See page 12 for additional introductions.

or product manufacturer. Add to that, several noted, is the focus on a single element of the decorative fabric business as in the burgeoning outdoor fabric segment or slightly recovering contract business which is seeing some signs of pickup. “One of our bright spots is our international business. It took a dip but not like hospitality,” said Stan Fradin, president, Rockland. “In fact, international is pretty damned good.” Residential busi-

ness, he termed “pretty good.” As for the customer base expected, Fradin sees strong groups from South America, Mexico and Canada, all economies he said that “are pumping along.” “We have a lot of new product from our facility in China that enables us to offer a broad new spectrum of product — dyeing and printing on cotton, cotton/linen and embellishments,” SEE MOOD PAGE 13

Bigresearch Finds BTS “Hit or Miss” C OLUMBUS , O HIO — With consumer confidence lagging, it may come as no surprise that back-to-school season could be “hit or miss for some retailers,” consumer research firm Bigresearch noted in its most recent Consumer Intentions & Actions (CIA) survey. Almost half, or 44.8%, of consumers still say they’ll remain practical and realistic when spending. But the good news is that this figure has lowered four points from July when it was 49.1% and declined a year ago when the rate was 48.2%. “Students headed back to school may have an easier time this year convincing penny-pinching parents that

they need a new notebook, ereader, or mobile device,” said Bigresearch. “More than half (53.5%) still say they’re focused on necessities when shopping, but this percentage has lowered from July (58.0%) and August ‘09 (55.9%).” Bigresearch’s CIA survey monitors more than 8,000 consumers monthly. Some of the highlights of its most recent survey, conducted August 3 to 10, included the following findings: • Consumer confidence remains flat at 27.8% in August; • Fewer shoppers are feeling practical; • Two in five said they are “worse off” financially compared to August 2009;

• Target, Sam’s Club, and Costco are among the stores shopped most for groceries lately; • The 90-day outlook is up from July 10 and August 2009. Retailers can look forward to some favorable results. While consumers may feel like they don’t have much money in the bank, 16.9% reported that newest fashion trends and styles are important to them. That is an increase over the 13.0% recorded a year ago and is the highest reading since October 2008 when it was just 18.5%. Half – 50.1% – still think fashion is less important than value and comfort, while 33.0% prefer a traditional, conservative look. HTT

4/8/2010 11:41:56 AM 8/13/2010 3:27:18 PM

VWUDWKFRQD FROOHFWLRQ IHDWXULQJ VWUDWKFRQD VWULSH DQG VWUDWKFRQD VFUROO

::: 62)7/,1(21/,1( &20 ,1)2#62)7/,1(21/,1( &20 Â&#x2039; 62)7/,1( +20( )$6+,216 ,1& $// 5,*+76 5(6(59('

Home Textiles Today

August 16, 2010

News

> hometextilestoday.com

Feizy Rugs to Fete 7 W Plans Events, Perks for This Week’s Market New Showroom in New York N E W YO R K — A slew of spe-

DALLAS — Feizy Rugs is plan-

ning a celebration for the opening of its new permanent showroom in New York City during the New York Home Fashions Market, Sept. 13 to 17.

The new space is in suite 904-5 at 230 Fifth Avenue. It will house the company’s growing line of area rugs, accent rugs, bath rugs, decorative pillows and throws made to service mass merchant retailers. The company’s prior showroom in New York was in 267 Fifth Avenue. In line with the market and the showroom debut, Feizy will also present several new collections of area rugs. At the forefront is Escape, the fourth lifestyle trend collection being added to the company’s Mystique theme. Escape encompasses a large grouping of rugs that also coordinate with a line of accessories – accent rugs, decorative pillows, throws,

quilts and bath rugs, made in a variety of constructions and styles. “We’ve done a lot of design development with our buyers in mind,” said Jamie Jones, key account manager. “We’re infusing upbeat hues into eye-catching designs. With the wide selection of products we’re offering, Feizy has really become a one-stop shop.” Five new creels and a myriad of designs in the Saphir construction will also be shown. These rugs are power loomed of faux silk in a highlow construction and are densely woven. Feizy will also debut a large collection of quilts and coordinating pillows featuring decorative stitching and lively designs. These pieces are infused with the energizing color and clean patterns that are seen across the Escape collection’s product assortment. HTT

Blissliving Home Debuts Table Linens R OCKVILLE , M D. — Blissliving

Home launched its first table linens collection at the Atlanta Market last month. The collection echoes the soft cotton embroidery used in Blissliving’s Samsara decorative pillows and includes a table runner, square placemats (sold

in sets of four) with cotton twill backing and dyed linen napkins with a hemstitched border. The table linens are available in two colorways: turquoise, coral and yellow ocrhre embroidery on a storm grey linen or white embroiderly on a warm grey linen. HTT

cial presentations and events are planned at showroom hub 7 West 34th Street during the Gift & Home Textiles market week Aug. 16-18, which runs in tandem with the building’s NYC Baby & Kids Fair. On market kick-off day, Aug. 16, HTT sister publication Gifts & Dec will sponsor the Retailer Roundtable from 1 p.m. to 2 p.m. on the 11th floor Event Space. Past winners of the Retail Excellence Awards will take center stage to discuss store design, marketing, visual merchandising, and use of the internet to have an award-winning business. The discussion will be moderated by editor-inchief Caroline Kennedy and a complimentary lunch will be served.

On opening night 7W will host two special events. One is its “On the Board Walk” from 5 p.m. to 8 p.m. at the building. There will be food, raffles and games, and attendees can enter a contest to win a “Boardwalk Weekend Vacation” for two in Cape May. The other is the NYC Baby & Kids Fair opening night party, also from 5 p.m. to 8 p.m. at the building. Cocktails and hors d’oeuvres will be served for manufacturers, buyers and experts in the baby and kids fashion accessories, furnishings, gifts and textile industries. The Baby & Kids Product Profiles event, scheduled from 1 p.m. to 2 p.m. in the 11th floor Event Space, takes place Aug.17. Presenting product on

the podium during lunch will be owners, sales reps and manufacturers of some of the latest products being showcased during market week. Moderator Mary Gerlach, associate editor of Baby & Kids, will give an overview of more than a dozen different products during the five minute speed selling presentation. Amenities at 7 W for market attendees include complimentary lunches and free transportation via bus to and from the Jacob K. Javits Center, limo to and from the Passenger Ship Terminal Piers/ Pier 94, and taxi rebates to 7W from other locations in the city. In addition, market goers will receive free market week admission to the Brooklyn Museum, 200 Eastern Parkway. HTT

Millwork Group Debuting Studio Collection at NYIGF L OS A NGELES – The Millwork Group will debut a studio collection of art printed on oversized decorative pillows designed by company founder Andrea Bernstein under the brand “Millworks” at the New York International Gift Fair, which begins Aug. 14.

The colorful print pillow designs evoke a mix of Warhol and Pucci. Bernstein, the former head of design and merchandising at Chris Stone fabrics, said: “I love modern prints, and we did big collections of these at Chris Stone. I think these new ones

are more whimsical and some are great for kids.” She added the company will also sell the prints as fabric. Price points on the over-sized pillows will range from $20 to $60. Millwork Group is showing at Pier 94. HTT

Global Sources to Launch China Sourcing Fairs in Miami H O N G K O N G — B-to-B trade

facilitator Global Sources will launch five sourcing fairs in Miami next year targeting North American and Latin American buyers. The China Sourcing Fairs are scheduled for July 11-13, 2011 at the Miami Beach Convention Centre. The scheduled shows include: Gifts & Premiums, Home Products, Fashion Accessories, Garments & Tex-

tiles and Baby & Children’s Products. “Everyone understands the huge potential in North America but for many exporters, the Latin American opportunity is an equally exciting aspect of the new shows,” said Tommy Wong, president of Global Sources Exhibitions. According to Global Sources, the Latin American market for imports is growing at roughly

twice the size of the Indian and Russian export markets combined. Latin American imports in 2009 from all sources totaled $642 billion, and in 2010 and 2011 the World Bank estimates Latin American imports to grow by 10.3% and 5.6%, respectively, led by Brazil and Mexico. More information about the China Sourcing Fairs is available at: www.chinasourcingfair. com. HTT

Amity Home, Saro Trading Win in Chicago CHICAGO — Amity Home and Saro

Trading were among 10 companies taking Best in Show honors at the recent market here at the Chi-

htt100802_004_008 4

cago Merchandise Mart. Amity, which produces fine linens, was Best of Show in the Home category.

Saro Trading, supplier of both traditional and contemporary home textiles, received an award for Best Showroom Display.HTT

8/13/2010 11:49:06 AM

SAN2738-PB Smith Ad Campaign-hr_Layout 1 7/30/10 11:17 AM Page 1

NEW SHOWROOM

OF THE PARK B. SMITH COMPANY 18TH FLOOR, 230 5TH AVENUE NEW YORK CITY, NY 10001

Make Appointments Now to See the Best Showroom in NYC! Phone: 1.212.889.1818

F E AT U R E D G I H C E X H I B I T O R S

™

BEST TEXTILES LIMITED