Monday, September 27, 2010
THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY
Anna’s Linens Preps for Store Expansion
The Anna’s team: From left, Kevin McClain, Peggie Galvin, Alan Gladstone, Carie Gladstone Doll and John Partington Jr.
BY JENNIFER MARKS C OSTA M ESA , C ALIF. — As it looks ahead to its 300th store opening at some point in 2011, Anna’s Linens is also preparing for the most aggressive store rollout pace in its 22-year history. Next year, the retailer plans
to open 40 new stores, including new and as-yet undisclosed markets. “We believe we need to be in every major urban market – and we will be,” founder and ceo Alan Gladstone told HTT. Anna’s has also launched into SEE ANNA’S PAGE 27
Li & Fung Blending Brands and Quick-turn Sourcing BY JAMES MAMMARELLA NEW YORK — Operating a fastturn, low-markdown business is every retailer’s dream, but for clients of global sourcing giant Li & Fung it can be an everyday reality, one that the Hong Kong-based company’s president, Bruce Rockowitz, told fi-
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nancial analysts at the Goldman Sachs 2010 Retailing Conference depends on merchandisers’ willingness to “change the way they market, change the way they buy.” Rockowitz said roughly 30% of Li & Fung’s sourcing business can be considered “quick SEE LI PAGE 27
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Welspun Unveils Thom Filicia Collection N EW YORK — Welspun unveiled its new Thom Filicia collection during the recent market. Filicia – an interior designer who also hosts a home makeover series called “Tacky House” on Style Network – told HTT the aim was to create bedding “that feels coordinated, but not matchy-matchy.” He added: “I’m very happy with the way the line turned out because I do feel it bridges masculine and feminine very well. It really feels as though you could take it into a very hip urban environment or a country home.” The top-of-bed and sheet programs are reminiscent of organic and archictectural elements. The Thom Filicia Home collection also includes two towels – a quick dry and a double-ply. In its Amy Butler collec-
Thom Filicia with items from his new home collection with Welspun.
tion, Welspun has introduced coverlet as well as three new fashion bedding groups inspired by her travels to India. “We’re doing some really fun things with a combination
of printing and embroidery,” said Bulter, pointing to a Euro sham with a large surface area that’s printed adorned with interesting embroidery patterns. SEE FILICIA PAGE 27
Target Makes Bold Moves to Drive Sales BY JAMES MAMMARELLA N E W YO R K — The front-line focus at Target may be on groceries and a 5% spending-reward program, but the home furnishings department is among those reaping incremental sales, Doug Scovanner, evp and cfo, Target Corporation, told financial analysts at the Goldman Sachs 2010 Retailing Conference. Target has been making industry headlines with its introduction of the PFresh concept to its general merchandise stores, resetting the floor to layer in fresh produce, frozen goods and other food lines as a way to coax more store visits and drive top line sales. Philadelphia is home to the largest concentration of these conver-
sions, but by the end of the fiscal year about 450 of Target’s approximately 1,500 regular stores will have been converted to PFresh; another 400 will be updated in 2011, Scovanner said. “The layer of fresh food in particular,” he said, “is immediately visible to our guests.” But
Target is using the reset opportunity to also install “our best current thinking in fixtures and presentation” across other departments, especially footwear, electronics and home. “Home fixtures with better sight lines” lead to departments “that appear to be less densely SEE TARGET PAGE 27
9/24/2010 3:14:20 PM
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Home Textiles Today
Retail Briefs Macy’s Adds to Online Fulfillment Center
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acy’s will expand its online order fulfillment center to keep pace with its growing business on macys.com The facility, located near Portland in Robertson County, Tenn., opened three years ago with 600,000 square feet. Macy’s will add another 374,000 square feet. Online sales for Macy’s and Bloomingdale’s grew 19.6% last year and 31% in the first half of this year
Bed Bath & Beyond Logs Another Double-digit Profit Gain
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ed Bath & Beyond reported second quarter net earnings of $181.8 million, or 70 cents per share, up 35% from net earnings of $135.5 million, or 52 cents per share, in last year’s 2Q. Sales rose 11.6% to $2.137 billion, with comps up 7.4%, compared with a decrease of approximately 0.6% in the year-ago quarter. Steven Temares, ceo, cited high unemployment and economic uncertainly as pressures on the consumer. “However,” he added, “we remain cautiously optimistic about the remainder of the year.”
Consumers to Splurge a bit on Halloween Merch
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he inconsistent American consumer will spend a little more freely this Halloween season, with average spend expected to be $66.28 compared to $56.31 last year. In 2008, the average spend was $66.54. “Second only to the winter holidays in terms of plans to decorate, half (50.1%) of consumers celebrating will decorate their home or yard,” according to BigResearch, which conducted the study for the National Retail Federation. Total spending is expected to reach $5.8 billion this year. “This year, people are expected to embrace Halloween with even more enthusiasm, and will have an entire weekend to celebrate since the holiday falls on a Sunday,” said NRF president and ceo Matthew Shay.
Macy’s to Put on More Seasonal Employees for Holiday
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acy’s Inc. plans to hire roughly 65,000 seasonal associates in its stores, call centers, distribution centers and online fulfillment centers for the 2010 holiday season, a small increase from the norm. The company expects same-store sales increases of 3.0% to 3.5% in the second half of the fiscal year. Most of the positions are part-time, and many are slated to work evenings, weekends or overnight.
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September 27, 2010
News
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WestPoint Innovates Across Brand Lines BY JENNIFER MARKS N EW YORK — WestPoint made a major introduction with the Hanes brand in bedding and bath at market earlier this month. “The big idea is comfort from the inside – about building your bed from the bottom up,” said Nancy Golden, senior vp marketing and brand management. Mattress pads include directional tagging so that consumers know, literally, which end is up. All fashion beds have WestPoint’s SwiftFit bed skirts, which don’t require lifting the mattress. Packaging for several of the products allows consumers to touch the goods in the same way Hanes socks are packaged so consumers can feel them. In sheeting, Hanes offers two constructions: a drop-needle knit and a soft cotton. WestPoint has added a bath towel to the Caribbean Joe col-
Newport is a new bed in the Izod collection that bridges the gap between seasonal and fashion looks.
lection. The sand-washed technique – WestPoint refers to it as “weather-washed” – is designed to give the towel a nice hand but also visually differentiate itself on the shelf. The company has also designed a line of mix-and-match novelty prints for Caribbean Joe. With an eye to the back-toschool season, it has added an Izod vintage look as well as an
Izod Performix style. The manufacturer is also highlighting Color Remedy, a line of bedding and bath that resists benzoyl peroxide, an active ingredient in acne medications that also bleeds color out of sheets and towels. “We’re showing it here as backto-school, but it’s really a core program,” said Golden. HTT
Walmart Merchandising in Return to Roots BY JAMES MAMMARELLA N E W YO R K — It’s a return to broad and deep merchandising at Walmart, with a “laser-like focus” on delivering the Every Day Low Price promise, Walmart U.S. president and ceo Bill Simon told financial analysts at the Goldman Sachs 2010 Retailing Conference earlier this month.
Promoted from chief operating officer to his new leadership position in June, and having just on Sept. 3 named his four-man merchandising executive team — each with a direct report to his office — Simon predicted improved sales trends for the fourth quarter, but a “very, very competitive” holiday retail season “driven by
needs and practicality.” “Our customers seem more cautious than distressed. They will spend money on their kids,” he said, but adults can “plan on socks and underwear” as gifts this year. As evidence of a needsbased, “extreme paycheck cycle” among U.S. consumers, Simon SEE MERCH PAGE 25
JCPenney ‘Optimistic’ on Home Business BY JAMES MAMMARELLA NEW YORK — “It’s a journey, not a project,” said Myron (Mike) Ullman III, chairman and ceo of JCPenney, addressing financial analysts at the Goldman Sachs 2010 Global Retailing Conference earlier this month. “A 108-year-old company is not going to take 108 years to get there,” he quipped, adding that JCP has a five-year plan to achieve a 10% operating profit level. A large part of that plan is
merchandising-based, and perhaps the single most vital part is the Liz Claiborne launch, now underway in core apparel and fashion accessory categories. Ullman said the early consumer response to the launch has been “well ahead of our projections,” encouraging for a company that sees national brands as a way to recapture margin dollars. Using the $9.99 private label polo shirt as an example of the type of bread-and-butter “good” product that JCP does in great volume — the average retail
unit price is about $15 at JCP — Ullman said the current major inflow of Liz Claiborne and MNG by Mango products are targeting the “better” and “best” end of JCP’s price-value offering to consumers. The home division, too, will ultimately benefit from the Liz Claiborne rollout. “We actually are quite optimistic about the home business in 2011,” Ullman said. The housewares department has been trending at double-digit increases of late, SEE HOME PAGE 25
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Home Textiles Today
September 27, 2010
News
Barbara Barry Updates Collection NEW YORK — Four new beds are featured in the Barbara Barry Dream collection for spring 2011 — all with the designer’s understated but clearly defined color palette and design direction. Gateway Quilt has understated clear lines and a subtle geometric pattern in a shimmering cotton sateen. Pinafore, a modern take on classic dressmaker fabrics and trims, pairs a jacquard duvet with the Charm sheet printed with subtle bubbles. Curtain Call also uses shimmering accents in multi-tones of blue and white, with embroidered and quilted pillows. Last season’s Aurora is now available in blanc de chine, a new color. Queen duvets are $299.99. The collection also is enhanced with a new towel — Indulgence — in eight colors. The retail price is $29.99 for the bath. HTT
Nourison Unveils Novelty Rugs, Nylon Options BY CECILE B. CORRAL N E W Y O R K — In bloom at
Nourison this market were a bed of roses — and lilies, sunflowers, and daisies, among other flowers — as well as several new seasonal novelty shaped accent rugs made to spring up not only in the kitchen but “all over the house.” “Our story this market is design,” said Paula Paquette, vp, accent rugs. Added Rita Karmiol, evp, “We have a lot of bold new looks that can even be used as wall art.” These new rug styles — spanning about 30 designs suitable for the bedroom, bathroom, guest room and den — are made in the company’s hand-hooked poly-acrylic construction. Aside from florals, other new novelty shaped looks include: beach themes like fish, flip-flops and others; round clock designs reminding of important hours, like “Dinner Time,” “Tea Time,” and
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“Break Time;” new 3-by-3 and 4-by-4 square rugs; and scalloped-edge looks. The palette for these offerings is bright — “but not pastels. We’re using deeper, richer colors,” Paquette emphasized. The new shaped rugs fall under Nourison’s “best” line, retailing for $19.99 to $39.99. “With these new looks, we are offering customers inexpensive decorating options, impulse and value-driven goods that inspire,” Paquette continued. Karmiol described the lines as “something they haven’t seen, something different, but with an affordable ticket” in a time when many room-size rug products are having a harder time selling because of their heftier
price tags. For its “better” mid-level offerings, the company showed new printed and carved polyacrylic rugs with non-skid backing priced between $12.99 and $19.99. And for its new and growing discount retail customer base, Nourison has added a new construction to its accent rug line — non-skid backed nylon rugs. Priced to retail for $4.99, these rugs have been added at the behest of these retailers, Paquette said. “Our new customers have asked us for opportunity buys at stronger value prices, and so we are filling that need,” she said. The collection launched with mostly kitchen-oriented looks. But Nourison can create other types upon request. HTT
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New York Becomes Hub for Springs Global Branded Business N EW YORK — Springs Global US has shifted its organizational structure to relocate all its branded and store-branded home furnishing activities to the company’s offices here – moving a substantial portion of its operations from its long-standing base in Fort Mill, S.C. The areas covered include, but are not limited to, Springs Global US’ bedding, bath, tabletop, furniture, lighting and freestanding window design as well as its product development, merchandising, marketing and sales operations. New York operations will be overseen by Joe Granger, president of Springs Global’s branded business. However, Springs Global’s core bedding businesses, including but not limited to pillows, pads and blankets as well as global operations, are to remain
in the company’s South Carolina office under the leadership of Tom O’Connor, group president. The company explained the shift is based on “the opportunity” it sees “to bring the same innovation, inspiration and energy” to its retail partners’ brands. “This organizational evolution is yet another strategic move for Springs Global in aligning its associates and expertise to achieve its corporate goals of leading the industry in innovation, design and marketing,” the company added. “This restructuring allows for the expertise currently focused on its quickly expanding portfolio of global brands, to also focus on its very important store branded business as well; offering proactive solutions and stronger partnerships to its retailers and ultimately, to consumers.” HTT
Lauren Expands its Suite N E W YO R K — Reprising the
brand’s classic themes, but with a fresh twist, Lauren by Ralph Lauren Home featured five new beds, an expansion of Lauren Suite into new products, and a bright, cheerful collection of beach towels for spring 2011. Antigua, a fresh interpretation of an open, overscaled paisley, creates a younger look backed by a smaller scale paisley on the reverse and on sheets. A serape design is used for shams. Coordinate towels use the serape design and a sculptured paisley. M o j a v e mi x e s a s u b t l e snakeskin pattern for the top of bed with dusty plum sheeting, while Indigo Modern features a linen/cotton nautical inspired top of bed in a range of light blue to a dark ombre. Sheets and shams reflect dipdye color influences graphic
modern mood. Romantic Traveler mixes a floral paisley cotton sateen print with paisley striped sheets and adds a collection of jacquard towels with embroidery embellishments. Lake House represents iconic Lauren themes mixing materials and motifs, including tattersall, cable knits and raffia. In the beach collection a stripe offers a strong color contrast while a chevron is more fun and nautical. Ombre color combinations make a fashion statement. Lauren Suite, introduced last season, has been expanded with shams, a duvet and a navy paisley as well as new dobby towels tied back to the original solid color palette. Bedding retails are $199 and $299 for the queen top of bed. HTT
9/24/2010 1:53:01 PM
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Home Textiles Today
September 27, 2010
News
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New Dacron Quality Seal Aims to Entice Consumers N E W YO R K — Fiber producer
Invista launched the Dacron quality seal as a symbol of excellence for high-performance Invista fiber fills used in bedding. “The power of Dacron is so strong among consumers,
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it’s similar to the assurance of a trusted friend,” said Carol Haslach, marketing communications director for Invista. The seal will bear two taglines: “Trust What’s Inside” and “It Just Feels Good.” For high-end down alternative
fill, the branding will be Dacron Comforel fiberfill for luxurious comfort. Solutions bedding will use Dacron Perfoma fiberfill, and for mass market products the brand will be Dacron Duralife fiberfill, “for durability that lasts.” Invista promoted the launch
— and Dacron’s 50th anniversary — during New York Home Fashions Week by sending a small fleet of vintage cars around manufacturers’ showrooms as well as hitting a couple of morning television shows. HTT
JS Fiber Lands at 230 Fifth BY JAMES MAMMARELLA NEW YORK — Diversified man-
ufacturer JS Fiber Co. has opened a permanent showroom, in suite 1513 of 230 Fifth Avenue. The maker of basic bedding, blanket, shower curtain and drapery lining products at the recent market showed a range of line extensions for: its valuepriced American Dream line; the “better” Sleep Free line of gel fiber pillows; and the patented Fossfill line of extendedlife, shape-retaining pillows and related bedding. Other goods will augment the assortment. All JS Fiber products are made in the United States— a fact that Steve Pierangeli, national sales manager, said is helping the company in new ways. “Nobody wants to own container loads of these goods anymore,” he said, noting that many retailers who had turned to direct-sourcing in recent years, which nearly always means overseas production, “are now really switching back to domestic.” JS Fiber, which decades ago geared its original business to supplying the healthcare and hospitality industries, has of late made great strides in catering to the needs of major retail chains serving the less affluent households — and bargainhunting shoppers — of America. Merchandisers from the big regional and national Dollar stores, as well as the leading off-price retailers, are expected in the showroom this week, Pierangeli said. The company has typically taken temporary showrooms in past markets, but Pierangeli and JS Fiber owner Morris Long decided it was time to make the move to a permanent Fifth Avenue presence. The showroom was staffed by Steve Cohen Associates, a sales representation firm that specializes in Beacon electric blankets, and has ample experience with retailers. Both ret ail and hospit ality products were on display, Pierangeli said. HTT
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Home Textiles Today
September 27, 2010
News
Frette North America Goes into Wholesale BY JENNIFER MARKS N E W Y O R K — Luxury tex-
tiles house Frette, which operates nine retail locations in the United States, is expanding into wholesale distribution with the recent opening of a Frette shopin-shop at Bloomingdale’s 59th Street store here. The boutique features the Edmond Frette mix-and-match print bedding, a diffusion line launched last year to attract a younger customer with a more accessible price point. The Bloomingdale’s shop also offers bedding from Frette’s hotel collection, which previously had been distributed only to the
hospitality sector. The former is available in open stock, while the latter is put up in sets. “Bloomingdale’s has 14 to 15 doors that could accommodate Frette,” said Filippo Arnaboldi, vp for Frette North America. Frette shops are also planned for Bloomingdale’s Medina store in Chicago, Aventura in Florida and Chestnut Hill, Mass. Frette has scheduled talks with other high-end retailers as well, he said. “This gives us the possibility for markets where we currently don’t have a [retail] presence,” said Arnaboldi. “Our couture [Frette line] is really what we’re selling in our retail stores, but
not everybody shops Madison Avenue.” Frette already has shop-inshops in Bloomingdale’s Dubai as well as Harrod’s in London, Lane Crawford in Hong Kong, and Printemps and Bon Marche in Paris. E-commerce is another way to reach a broader range of consumers. With web sales this year running 42% ahead of last year, it’s a major push for Frette and now its second largest “door” out of 65 stores worldwide, even though shipping is only available to U.S. residents. Frette will remedy that next year, when it revamps its platform to fulfill international orders. HTT
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Trident Fetes New Showroom, Product Lines
NEW YORK — Abhishek Industries’ Trident Group feted the opening of its new showroom here with a cocktail party to kick off the market week. The new space is in suite 1112 at 295 Fifth Avenue. Above: The Trident team: Satish Karan, Joanne Krakowski, Manish Bansal, Pankaj Joshi, P.K. Markandy, Rahul Gupta, Kapil Ghorse, and Amit Sachdeva.
Spencer N. Enterprises Builds Fast and Smart BY CECILE B. CORRAL NEW YORK — Spencer N. Enter-
prises Inc. has come a long way — in a rather brief time — from its earliest days making and selling pillows from a garage. One year since undergoing a recapitalization by Texas-based Ancor Capital Partners and 21st Century Group, the fashion decorative pillows and soft window treatments company is in the midst of expanding its infrastructure to accommodate ongoing growth, which so far this year alone translates to high doubledigit sales increases. “We’ve grown 30% since 2008,” said Joy Stewart, president, adding that Spencer’s dec pillow sales for 2010 to date are “substantially greater” than last year’s, and its soft window treatment numbers may be high enough by yearend to take the company into HTT’s Top 5 list for the product category. “We believe we are doing so well because we know fashion – we always have,” she continued. “And we have loved this year because fashion is back, and we are poised to become the fashion kings of the industry.” At the heart of Spencer’s expansion is the company’s new 100,000-plus square-foot facility at its Los Angeles headquarters. This new site includes offices, a 5,000-square-foot showroom, a newly enhanced IT operation that has grown from two to 10
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staffers, a warehousing operation and a manufacturing facility. To that end, Spencer is installing this fall new high-tech polyester blow-fill equipment as a means of increasing “our flexibility,” Stewart explained. “The cost of filling a pillow in China has about doubled,” she went on. “We are so excited about this new equipment because it increases our flexibility. The cost of shipping a pillow in China has doubled, so by filling it here we reduced our costs. We are always finding ways to be more flexible in our operations.” On that same page, the company is also adding new conveyor belt and rack systems related to its feather-fill business. In addition to helping Spencer adapt to consumers’ changing demands for poly-fill or feather-fill products, the new systems “also allow us to do some pick and pack,” she continued. “It’s all about being efficient and flexible,” Stewart said. Whereas Spencer was originally an exclusively feather-fill dec pillow supplier as of five years ago, the company today divides that fill offering 50-50 with poly-fill. “We are the experts in both now, and we are the best in maximizing that,” Stewart said. Spencer’s cut-and-sew operation is also part of the enhancement efforts, as the company is building up its sewing staff to produce product lines domestically.
At the helm of Spencer Enterprises: Steven Paradis, evp, design and product development; and Joy Stewart, president. The company is enhancing its infrastructure this year to support its high double-digit sales growth.
To help support the expansion, Spencer created the new evp, design and product development post and tapped 25-year industry veteran Stephen Paradis to fill it. He joined the company in May. “We were looking for someone with strength in both sourcing from China as well as in design, and we found that in Stephen,” Stewart said. Paradis was most recently at Beacon Looms, where he spent the past 10 years, most recently as vp, design. There is also a new director
of supply chain: Jenny Tu. She was promoted to take on more responsibilities related to her department, and she reports to George Hird, who is vp of operations. Product category expansion is also part of Spencer’s recent
growth initiatives. Dec pillows remains the core, but soft window is rapidly catching up and is almost as strong in sales. New to the portfolio are table linens and shower curtains, which were added to the mix this past spring. HTT
9/22/2010 6:19:03 PM
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Home Textiles Today
September 27, 2010
News
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Portico Showing Product, Merchandising Genius BY JAMES MAMMARELLA N EW YORK — Building on an impressive retail launch last spring for its core home textiles program, Portico Home + Spa extended the line and also added a whole new fabrication under the Genius moniker. Previewed enthusiastically at the fall 2009 market, and positioned as a luxury brand that is absolutely faithful to ecofriendly principles, the Portico Home + Spa launch collection had entered hundreds of upstairs specialty store doors by March 2010. The tagline for the core program has been “Portico Pure Organic Genius,” referring in part to the company’s commitment to using 100% organic (GOTS-certified) cotton. The word Genius is now being applied to a new product line development that will feature a blend of 60% Tencel Micro and 40% organic cotton. This line is being offered “to both current and new retail partners,” Gregg Haft, president of Portico, told HTT. Haft said the launch program is “exceeding all of our expectations and those of our retailers.” Haft and Charles Schlang
acquired the brand, previously a high-end home furnishings specialty retail operator, in 2007. They have now placed the Portico fashion bedding and bath products, as well as basic bedding and a personal care line at retail. Haft said the company now plans “aggressive category extension — but also brand growth ... we expect to have major developments in this calendar year.” The current Portico licensees for home are Home Source International for fashion bed and bath, and United Feather & Down for basic bedding. (Personal care products are made by Hunter International.) Key to success, Haft said, is “leading with fashion, with a luxurious hand” to an extent that will always “meet or exceed the non-organics” in sensory pleasure for the consumer. “The Portico brand and lifestyle maintain the highest benchmark standards for sustainable fashion,” Haft explained, “but despite the fact that retailers in the past have had mixed experience [in this area], we are showing them that if you approach that space focusing on product that is unique and innovative
and lends itself even to those consumers that don’t really consider being organic and/or sustainable as an important part of their decision-making process — then you’ve achieved the formula for success.” Portico marketing efforts include its Earth Day showcasing on QVC as well as on the Ellen Degeneres show, and its endorsement by practical-eco guru Summer Rayne Oakes. The company also recently leveraged its personal care distribution in the hospitality sector to introduce bed linens, towels and robes to some hotels — an effort that will soon lead to greater placement and visibility there, Haft predicted. Po r t i c o b r a n d di r e c t o r Megan Wiseman said the fashion element is freshened this market with the EcoLuxury sense of “chic, easy, elegant — casual, clean, crisp” mode, that informs the addition of a soft fern green and a moonlight blue to the color palette of the sheeting. Among new featured bed ensembles, there is a Vintage Print that interprets resort colors into a soft treatment; the Moonlight look, which Wiseman described as “tapes-
In the debut PureLuxe Genius sheet and blanket line, Portico offers a natural and sustainable fiber blend of 60% Tencel Micro and 40% organic cotton.
try-inspired, integrated with a natural pumice color,” and an additional print design, a distressed look featuring earthy colors. She said a sandstone-inspired texture will be offered on bedding styled for higher end department stores and boutiques. And for the tier immediately below that, Wiseman said there is an opulent branch
moire, “or watery oil effect” in the line. Both of these woven jacquard beds show sheen and are available with embroidered sheets. Overall, the Portico Home + Spa programs support mix-andmatch assortments, both within rooms and across categories, with bathrobes and other accessories that refer back to the main lines. HTT
Commonwealth Augments Outdoor Decor, Thermalogic Lines NEW YORK — Commonwealth
Home Fashions pumped fresh energy — and energy-saving features — into its collections of window coverings during this month’s market. At the recent New York Market, Commonwealth spotlighted new additions to the Outdoor Decor program, which Barry Goodman, vp national accounts said warrants the expansion due to very strong demand at retail. Outdoor Decor, a collection of water-repellent, mildewresistant window treatments, is augmented this season by the Banana Leaf, Escape Leaf, Belize Sheer and Cote d’Azur In its popular energysaving Thermalogic brand, Commonwealth introduces the Mansfield tab panel. It is 100% cotton, machine washable and priced at $59.99 per 84-inch pair. Mansfield is offered in a range of colors including terracotta, shown here.
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models. Overall, the line sees new printed sheers, heavyweights, grommet panels and trend-right color selections, Goodman noted. For one example, the company has expanded its popular Gazebo group of solids and stripes with new colorways. Another, Marquee, is offered in solid and coordinating stripes in five colors. Meanwhile indoors, the Thermalogic insulated panel collection is extended as Commonwealth debuts Mansfield, a check pattern; Checkers, a geometric look; and adds color choices to its solids-and-stripes Weathermate group. New colors also enhance Media, the suede blackout line, while a new herringbone take on suede is dubbed Garbo. And a brushed twill grommet called Foster comes in seven fashion colors. Goodman told HTT that Montreal-based Commonwealth has experienced a very promis-
ing 2010 to date, and entered the New York Home Fashions Market with “a lot of appointments; we’re seeing new people — we’re very gung ho.” “Business is wonderful,” he said, citing above-expectation sales for the first eight months of the year, and pointing to “a strong floor position.” He added that e-commerce accounts are playing a role in the optimismgenerating results. Goodman said consumers seem to be responding to “timely” fashion “priced well,” to energy-saving products, and to the brand identity of key Commonwealth collections. On the price topic, he said the company will hold the line “as much as possible” in the face of the climbing costs of production in China, but that the industry is likely to see some price increases during 2011. “We are trying to be as conservative as possible,” he emphasized. HTT
9/23/2010 1:01:39 PM
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Home Textiles Today
September 27, 2010
News
> hometextilestoday.com
Safavieh Debuts United Feather & Down Tiffany, Paradise, Expands on Brand Front South Hampton N EW YORK — Basic bedding resource
BY CECILE B. CORRAL N EW YORK — Upscale area rug house
Safavieh launched at the New York Home Fashions market a series of new collections, patterns and colors that hit a variety of price points in hand-knotted, hand-tufted and hand-loomed machinemade constructions. For retailers in search of “exclusivity and value at the high end,” the company said it is offering its new Tiffany Collection, employing patterns inspired by the works of the late textiles designer and artist William Morris. As the collection’s name suggests, its styles and colors draw from the artist’s stained glass works. The rugs are hand knotted of 100% vegetable-dyed wool and are made in Pakistan of a new proprietary weave that is tighter than a traditional Peshawar. Tiffany Collection rugs are set to retail for $2,970 for a 6-by-9. To its popular Soho collection, which features high-quality hand tufting in New Zealand wool, Safavieh has added 10 new designs in new colors and sculpted patterns. Many of the designs in Soho are accented with viscose for luster, with outline patterns that further highlight the softness of the wool. The collection is hand-tufted in India, and includes standard sizes as well as a runner and a 5-foot square rug. The new Soho designs are to retail at $360 for a 5-by-8.
Safavieh pairs fashion with value for its new Paradise collection, a high-low combination of chenille loop and cut pile for a soft and comfortable look of hand-knotted rugs. Following the launch during this past summer’s markets, the company has added five more designs to this 100% viscose collection of powerloomed rugs. Paradise is made in Belgium, with patterns ranging from traditional Wilton designs to free-flowing florals and pop art abstracts. Retails are set at $315 for a 5-by-8. South Hampton, a hand-loomed collection set for official launch in October at High Point, will be available for preview in New York. Made of a blend of polyester, wool and cotton, these rugs cater to a younger, sophisticated customer. The line features ombre colorations, solid neutrals, and patterns with weaves inspired by couture sisal rugs. South Hampton rugs are priced to retail for $360 for a 5-by-8. Finally, for the kids, the company is re-introducing its recently launched Safavieh Kids line. Expanded for market, this program comprises hand-tufted rugs made in India of high-quality New Zealand wool. They are priced at $400 in the 5-by-8. Safavieh’s New York showroom is at 153 Madison Avenue, at 32nd Street. Breakfast and lunch will be served daily, from September 12 to 17, for visiting customers. HTT
Safavieh is re-introducing its recently launched Kids line. Magic Garden, right, and Color Pops are shown.
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United Feather & Down is providing aggressive new line extensions to several of its main branded programs this market -including Portico Home + Spa and Villa Di Borghese -- and has also landed an allnew partnership with Sheex, a luxury performance fabric brand.
All the products were on view during market at the UF&D showroom, directly across from Bryant Park at 1071 Avenue of the Americas (6th Ave. at 41st St.), Suite 200. The Sheex brand was founded in 2007 by former University of South Carolina basketball coaches and student-athletes Susan Walvius and Michelle Marciniak. The line embodies “the same moisturewicking ability, stretch and breathability” of performance athleticwear, the company said. Bed sheets were introduced the same year. UF&D will now augment Sheex Home with pillows, comforters and mattress pads. “Sheex is a truly unique and innovative brand, and we look forward to working with Michelle and Susan as they expand the product line,” said Bob Hickman, svp of sales and marketing, United Feather & Down. “Sheex Performance Bedding is the first product of its kind on the market, so it was important for us to find a partner that shared our vision and forward thinking,” said Sheex co-founder Marciniak. “United Feather & Down’s reputation as an innovator in the bedding industry and its unparalleled attention to detail and quality makes the company a perfect fit for us as we grow our brand.” In other developments on display this market: • Borghese Gold is the newest collection in the Villa Di Borghese brand program; it features a Tencel/cotton blend paired with the trademarked Botanical Down or Botan-
ical Down Alternative, Borghese’s signature filling material blended with natural Tencel Lyocell fiber. Villa Di Borghese also adds four new colors of 100% ring-spun cotton woven blankets and six new colors of basic sheets with aloe-infused fibers; down and down alternative-filled booties and lap throws; and soy and aloe-infused memory
UF&D’s Brandon Palmer, far left, and Steven Palmer, far right, with Sheex creators Susan Walvius, left and Michelle Marciniak, right.
foam pillows. Every item in the collection is packaged with a gift-with-purchase. • Portico Pure Luxe joins the Portico Basic Bedding line already provided by UF&D. Pure Luxe is available in both 100% certified organic cotton and the new “Genius” blend of Tencel and organic cotton. Fills offered are UF&D’s patented Freshness Assured Lyocell Down and the company’s Naturelle down alternative. The product array includes comforters, pillows, blankets and mattress pads. The Basic line this market adds 230TC and 300TC GOTScertified organic cotton blankets, with the same choice of fills. Featured colors: moonlight blue, fern green, and cloud. • Dr. James B. Maas, the UF&D spokesman for sleep research and advice, sees his program with the company expanded in both the Sleep for Success! and Dr. Maas’ Choice for Allergy Relief lines. Line extensions include Tencel lyocell fibers in fabrics and fills for moisture management and temperature control; pillow constructions tailored to side, back, and stomach sleepers; SilverFill Down Alternative for allergy relief; and a travel and home therapeutic pillow line. Each product is uniquely packaged with a free booklet, “How to Get Eight Great Hours of Sleep,” containing sleep tips and research excerpted from his newly published book “Sleep for Success! Everything You Must Know About Sleep But Are Too Tired To Ask.” HTT
9/23/2010 4:39:06 PM
News
> hometextilestoday.com
Maples Adds Luxura to Invista Bath Rug Line BY CECILE B. CORRAL N EW YORK — Taking its nylon
bath rug offering up to a new notch the recent market was Maples Rugs, with the launch of its new “top of the line” Luxura collection. “The best time to start something new is when the conditions are at the worst,” said Wade Maples, the company’s coowner. Dubbed “super silky” for its silk-like soft hand, this new collection employs Invista’s new Luxura fiber, a 990-denier nylon microfiber specially engineered for the bath rug category. It is made to look like cotton but offers the benefits of a synthetics fiber – resistance to fading and dyeing – and also reduces lint. “Our Luxura collection is our new top of the line bath rug,” Wade Maples explained.
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A 21-by-34 is priced to retail for $29.99, compared with Maples’ Comforel collection, also an Invista fiber line, which retails for $19.99. “Luxura is a significant step up,” he continued. “We see it as an improvement over similar polyesters in the marketplace.” In the company’s accent rug division, a new highlight for market was the expanded PET-fiber offering. Made from recycled plastic beverage bottles, this ecofriendly, sustainable line was first launched a year ago and has been progressively enhanced with new looks and styles since then. The latest offering includes shag, tweed, and striped looks and constructions in multiple colors – 14, to be exact. “We think this makes sense, and we will continue to grow t h i s b u s i n e s s ,” s a i d Wa d e Maples. HTT
Maples Rugs hits a high-end price bracket with the debut of its latest Invista branded bath rug collection – Luxura. This collection, dubbed “silky soft,” is made of nylon microfiber for a cotton-like look.
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N EW YORK — Indian terry and
bedding mill Sharadha Terry Products Ltd. has opened a permanent showroom at 295 Fifth Ave on the 15th floor. The manufacturer came to the recent market with several new towel constructions, chief among them an as-yet unnamed towel with super long loops. The product has a patent pending and is positioned to retail at $24. “It has great shelf appeal,” said Kiruthika Vikram, president. “Everybody wants towels more and more bulky. This is a differentiated towel.” Sharadha is targeting the backto-school season with a series of towels in bright, sporty colors. The towels are quick-dry and anti-bacterial. Another sporty towel offering is an ultra-lightweight towel that rolls into a small carrying bag roughly the size of a small, collapsible umbrella. The Presidential towel is 100% cotton with a high luster thanks to some changes in spinning technology. There is also a new, extra premium towel with high density loops called Micro Cotton Select. In bedding, Sharadha showed four beds using varying techniques, one of them a blend of
The Sharadha team in the company’s new showroom at 295.
Sharadha’s new towel construction features extremely long loops to provide a differentiating point of interest in the department.
yarn-dyed poly-cotton. The showstopper was a pair of pillow cases so finely woven they almost have the feel and appearance of silk. “We really chal-
lenged ourselves,” said Sri Hari Prasadh, president of bedding. Said Vikram: “This we believe will be the next Micro Cotton.” HTT
9/22/2010 5:44:39 PM
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Macy’s Adds Rank-and-File Salesmanship BY JAMES MAMMARELLA N EW YORK — Unleashing the merchandising savvy at the local level has been the key to recent success at Macy’s, and that advantage will now be amplifi ed by 130,000 sales associates, Terry Lundgren, chairman, president and ceo of Macy’s Inc. told analysts at the Goldman Sachs 2010 Global Retailing Conference earlier this month. “We’ve never undertaken anything like this before,” Lundgren said of the “Magic Selling” training that took place over the summer. He said the Bloomingdale’s mode of “engaged selling experience”
is the inspiration. At Macy’s he said the training-and-scoring system now in place is already providing a level of intensity among associates that should yield results in the fourth quarter. On the My Macy’s micromerchandising initiative, Lundgren pointed to the Chicagobased northern regional group - which was among the pilot set of local merchandising districts established in 2007 - as the leader across the company. Formed largely from Macy’s buyers previously based in St. Louis, Minneapolis and Seattle, he said, “that was really the pilot group that gave us the confidence...and it continues to
outperform the rest.” He said this points to a favorable upside for the rest of the nation’s My Macy’s districts. Turning to current sales trends, while apparel sales are on the upswing in a very strong back-to-school showing, Lundgren said the home departments -- lately a source of strength -may level off. “Big ticket home,” he observed, is especially sensitive to the housing sector of the economy, which is once again faltering. For the moment, however, he had some positive remarks about soft home goods. “My favorite part of home right now is textiles,” Lundgren told HTT, noting with
Kohl’s Home Lines Providing a Lift BY JAMES MAMMARELLA N E W YO R K — “Spectacular”
was what Kevin Mansell, chairman, president and ceo of Kohl’s Corp. told HTT, when asked how soft home has been performing this year. He had already told financial analysts at the Goldman Sachs 2010 Global Retailing Conference earlier this month that footwear and home have been leading the retailer’s overall 5.6% year-to-date comp store sales growth. “Our footwear and our home business have been leading the company,” Mansell said. Kohl’s has concentrated in 2010 on driving store visits -transactions are up more than 8% for the year -- and making “significant” progress on increasing merchandise margins. The result: “exceeding our profit goals,” he stated. And pursuant to that, investors and potential investors have become louder in demanding Kohl’s loosen its hold on cash. Mansell confirmed the company is moving to resume the existing, authorized share buyback program, which has $1.9 billion in unused capacity, and Kohl’s seems to be leaning toward starting a dividend program. Capital allocations will also
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flow into a stepped up remodeling program in 2011 -- as many as 100 units, up from 60 last year and about 85 this year -and adding as many as 30 new units to the 1,089-store chain. The company plans to mostly hold the line on marketing and media expense; Mansell pointed to very strong results at the same time Kohl’s trimmed more than $40 million from its media budget last year. The company has had success with some social media campaigns - notably its summer Facebook event to award $500,000 apiece to 20 schools with the most Kohl’s Facebook friends; this ploy has expanded Kohl’s “friends” from a base of one million to more than 2.6 million, which Mansell said the retailer plans to “engage.” Still, Kohl’s gets more productivity out of its “old-school” preprinted advertising circulars than any other media format, he noted. And that vehicle is aimed precisely at a consumer that is reluctant to spend freely -- but avid about spending when the price-value-style equation is right. “The consumer is still very constrained and very focused around achieving great value,” Mansell said. Expanding revenues would
solve a variety of challenges in Kohl’s operational metrics. “How do we get back to that 11% to 12% operating margin?” Mansell posed the question - then answered by noting that for most of the retailer’s life as a public company, Kohl’s has been “north of $250 per square foot” in sales, while the measure in 2010 is about $217 per square foot. Achieving the range of $240 to $250 would leverage investments the mid-tier merchandiser has made in customer service, in its online platform and fulfillment support, and in product development and the acquisition of new brands -- a new one of which will be unveiled in the near term. In response to a question about the impact of cost inflation on soft home product lines, Mansell said the range has been “very broad - but way more than 3% to 5%” depending on the particular fabrication and country of origin. “These products are almost all machine-made,” he said, so factors such as cotton prices and the transport of the relatively heavy goods become an “enormous” part of the end cost. He reiterated that during 2010, upward price pressure on home textiles has been “significantly more than the three-tofive percent” range. HTT
pleasure that Macy’s private brand Hotel -- it’s highest-end, in-house program -- is leading the way. The parallel program at Bloomingdale’s, also produced by Macy’s Merchandising Group, and offered to shoppers under the Hudson Park label, currently boasts “the best-selling towel on the floor,” Lundgren added. He indicated confidence about 2011, backed up by Macy’s capital expenditure plans to ramp up from $550 million this year to $800 next year. A highlight will be infrastructure and marketing outlays in the online and mobile areas. This will include the full rollout of the “Search and Send”
service to increase Macy’s ability to fulfill shopping wishes of customers who don’t find the desired product in the store they are visiting. The company completed the installation of 50,000 point-of-sale devices this year to lay the foundation for this program. One headwind in 2011, Lundgren acknowledged, will be cost increases on the supply chain side, based on current and anticipated hikes in material, shipping and labor costs out of Asian production areas. However, he noted that Macy’s Inc. has trimmed $500 million from its expense structure that it is “still finding ways” to leverage. HTT
Simmons, JLA Pets Offer Pet Bed Line N EW YORK — Longtime mattress manufacturer Simmons Bedding Company and JLA Pets have partnered to create a cozy collection of pet beds. Launched at market earlier this month, the new Simmonsbranded program includes pet beds and accessories for dogs and cats as well as pet containment products, pet crates, pet kennels, pet blankets, pet crate pads and pet travel products including carriers. The license partnership runs through 2014. “Many consumers view their dogs and cats as members of their family and want to provide them with superior comfort as they sleep,” said Todd
Merker, Simmons’ director of global licensing. “These consumers associate Simmons products with a comfortable, high-quality sleep experience, and we’re glad to know that they’ll feel confident purchasing a Simmons pet bed for their dogs and cats,” Merker added. Added Scott White, president of JLA Pets, “Our new Simmons pet bed collection is positioned to have a significant impact on the marketplace, thanks to the pairing of our advanced design technology and high style looks with the strength of the Simmons Beautyrest and Comforpedic brands.” HTT
Elizabeth Miller Team Among Top Fundraisers in N.Y. Race for the Cure NEW YORK — Former colleagues along with family and friends of the late industry veteran Elizabeth Miller raised more than $42,000 in her honor as part of the SGK Greater New York Race for the Cure earlier this month. The Elizabeth Miller’s Home for the Cure team was sixth on the list of the largest contributors, with more than 250 peo-
ple who either donated or participated. Miller — a highly regarded designer whose career included posts at Mohawk Industries’ Karastan division, CHF Industries, Ex-Cell Home Fashions and her own Elizabeth Miller Design busiess – died in May after a long battle against cancer. HTT
9/23/2010 1:00:50 PM
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Revman Collections WestPoint Flexes Infused with Creativity Production Muscle BY CAROLE SLOAN
BY CAROLE SLOAN
N EW YORK — More sophisticated design looks and a wide range of embellishments highlighted the new decorative bedding collection at Revman for spring 2011. At the same time, the company is making a major effort to reduce the size of comforter set pieces, with many now running at under seven-piece makeups. While maint aining their core design philosophies, Steve Madden and Laura Ashley have added new dimensions to their trademark looks. For Steve Madden, this represents a shift to an older demographic, said Diane Piemonte, vp, creative services for Revman. “We’ve taken the brand beyond back to school to a greater consumer reach – the 18-to-30 age bracket.” The brand, she emphasized, “is still about trends – fast fashion as in ready to wear. It’s fashion for the moment.” In the new collection beyond bedding, there are quilts and duvets of heathered jersey. The three new beds are $179 for a sevenpiece queen set. Four new comforters and
NEW YORK — With sales for 2010 on a major upswing and market share growing, WestPoint Home sees further growth opportunities beyond its traditional domestic retail business. In a recent interview, John Piazza, president and ceo, outlined some of the key opportunities: a major expansion into the international market; a multitiered approach to brand marketing; and a growing move into hospitality as the leading elements. With the company’s sales up by 24% to 25% in the first quarter, July and August up in double digits, and the outlook for the balance of the year in a similar mode, international can become a new target for the company’s business, he noted. Overall, Piazza remarked, “I feel real good about our top line and see a real opportunity to grow.” “We’re starting to catch this market; it’s solid and profitable,” he said, noting the company already has offices in China, London and Moscow. It was an exhibitor at Heimtextil this year as well as in Shanghai earlier this month where it proffered a great number of introductions, some not obviously substantive, but others showing potential for internal Chinese retail business, which is burgeoning. In brand marketing, WestPoint Home is taking a somewhat different approach from many of its competitors — going upfront with a multi-level, multi-retailer, national power brand strategy. The
Steve Madden grows up in his new collection of bedding now geared to the 18- to 30-year-old age bracket, as in Betty, which mixes folkloric and bohemian with embroidery embellishments.
four quilts as well as several classic, mini print quilts are featured. For the latter, Piemonte said “it’s the right timing for top of bed.” Vera Wang, launched at Bloomingdale’s earlier this month, showed the spring 2011 collection with four beds – each offering a signature statement of fabric or embellishment from the designer’s fabric and embellishment library and interpreted for the
home textiles market; one such example is rickrack detailing on a cotton lawn printed with a range of dots from mini to large. Seven new beds for Tommy Bahama, as well as a range of bath products, interpret and upscale the brand’s classic look. L’Erbe highlights a new quilt program as well as a duvet program, while Sean Jean enters “phase two” with two new print beds. HTT
Balta U.S. Builds on Strengths BY CECILE B. CORRAL NEW YORK — Balta U.S. kept its eyes keenly focused this market on building its strengths, which include indoor/outdoor styles, hand-carved constructions and shags. To its indoor/outdoor line, the company added a new higher-quality collection that is a cut above Balta’s typical entry level price bracket offerings in this category. The new rugs employ heatset, cable-twisted yarns, translating into a natural fiber-like product that works just as comfortably in home interiors as it does outside on the deck, and retails for a higher price range, from $89 to $129, vs. Balta’s standard outdoor rugs at $69 to $99. “We use a more complex construction,” said Patrick Moyer, president.
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Added Ashley Ocampo, national accounts manager, “We wanted the appearance of a hand-woven look, but the benefits of a [synthetic] rug. Our flatwovens really look like natural fiber rugs. But they are more durable and feel softer.” Also new for the indoor/outdoor line is the Natura copperbased palette, which draws its inspiration from contemporary patio furniture styles. Hand-carved rugs were also in Balta’s spotlight this market. “A major focal point for us,” Moyer said, is the company’s new Da Vinci collection of hand-carved styles spanning transitional to contemporary looks. These rugs are carved in Turkey. “Our yarn technology allows us to create a heathered look and add luster on these rugs,” Moyer explained. The retail is set at $149 for a 5-by-8.
Shags – from low to high pile heights – remain among the core programs for Balta. For this market, the company ran the gamut, all the while offering new colors and textures. The new berber varieties, for example, “look like real wool,” Ocampo said. Moyer said Balta is able to achieve creating a broad shag offering thanks to “all kinds of different complex yarn systems” being used by the company. Finally, the Radiance collection is a woven grouping of 20 new designs translated onto a construction that mixes straightset yarns with frisee yarns “for a more heathered look and a different luster effect,” Moyer added. These woven rugs are priced at $149 retail. “Our woven rugs have that density and clarity in the designs that many tufted rugs don’t,” Ocampo said. HTT
latest to join this program is Hanes — an apparel- and hosiery-driven company where Piazza served for several decades; he prides himself on his involvement with the legendary L’Eggs hosiery program. “Hanes is a power brand selling to many retailers at multi-levels,” Piazza pointed out. “There also are sub-brands that offer a halo effect. It’s a brand well known at all levels and offers the kind of stuff we’re looking for.” He also pointed to the multitier effect of Izod, a brand acquired last year, and Caribbean Joe, which also comprise sub-brands: “They’re both doing just fine.” In the hospitality market, which has been depressed globally for several years, the company “sees a real opportunity to grow” with negotiations now in progress for some headline names. “In fact, it’s doing really well for us.” In terms of production, Piazza said, “We’re going to leverage our internal capacity. We’ve been running full all year long, at both Lahore and Bahrain, and over the next several years we see these as a competitive advantage as we expand these facilities.” He added, “We’re still sourcing 40% of our product and want to get that down to 10% to 15%.” At the same time, he sees the challenges of yarns, duties and internal changes in China offering opportunities. “We see internal factories in the U.S. getting more valuable,” Piazza said, citing the WestPoint plant in Shipley, Fla., as an example. HTT
Nile in Stellar Alliance Debut N EW YORK — Egyptian vertical textile producer Nile Linen has become a new member of Stellar Alliance, offered its first collections of home textiles at Home Fashions Market here earlier this month. “It’s a relatively young company — 13 years old — but they make great product in jacquards, dobbies, yarn dyes,” said Ryan Jones, co-principal of Stellar Alliance. The companies launched sheeting, filled silk duvets and shams as well as pillow cases, coverlets, and top of bed designs.
Sheeting is 300 count sateen, 600 count sateen, 400 count sateen as well as percale. Table linens also are part of the mix. “Nile has a vast library of embroidery designs and we will use two to start and adapt them,” Jones said. Typically, minimums are 2,000 meters, but now they have been lowered to 1,000 meters, “and they also will do shorter runs,” he said. The fabrics are certified Egyptian cotton, and the embroideries are termed self-hemmed sheeting, Jones pointed out. HTT
9/23/2010 1:12:31 PM
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India Pavilion Opens at GIHC
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NEW YORK — HTT aligned with several major India-based home textiles suppliers to create the first-ever India Pavilion within the New York Home Fashions Market earlier this month. Located at industry hub 7 West 34th Street in three showroom spaces – two on the 10th floor and one on the eighth floor, this pavilion housed participating suppliers’ various product displays in bedding, bath and soft decorative accessories. To formally inaugurate the India Pavilion, which officially opened its doors in tandem with the week-long market on Sept. 13, suppliers and government officials joined in first cutting the blue ribbon at the entrance and then lighting a small “diya,” which is a traditional India lamp symbolizing prosperity. HTT 1
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1. Lighting the diya, an India traditional lamp symbolizing prosperity was Amitabh Jain, center, of the ministry of commerce and industry, Government of India. He was flanked on his right by Amit Puperelia, vice chairman of Texprocil, and on his left by Gondane, deputy council of India to the U.S. 2. In the center is Gondane, the deputy council of India to the U.S., who cut the threshold blue ribbon to the India Pavilion. On his left at the forefront is VS Velayutham of Texprocil and Kaushal Shah of HTT India. Clapping and standing on the right forefront is Siddhartha, also of Texprocil. 3. Century-old English bath towel company Chortex took a display area for its product on the eighth-floor space of the India Pavilion. Seen here are company executives Claire Smithson and Onur Uyanik. 4. On the 10th floor space of the pavilion was Rateria Exports, which showed its new top-of-bed collections, quilts and throws. Seen here are Meenu Rateria, coowner, and Rajbala Singh, design director, discussing new techniques applied on the company’s latest decorative pillow offerings.
Supplier and retail partners, potential and existing, to the India Pavilion participating companies were invited to a special cocktail l party during market. Above: The design team from Ellery Home Styles dropped in to see Rateria Exports’ latest product lines. Seen here, left to right, are: Anjuli McLawrence, Deanna Hustey, Rebecca Reisch, and Katie Kelberg, all from Ellery, with Rateria co-owner Meenu Rateria. At right: Textrade’s Anish Doshi, center, stopped in to the Pavilion for the party and chatted with 7W execs Sheila Charton and Chris Collins.
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9/23/2010 2:57:59 PM
1 S T
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Register Online at www.HomeTextilesToday.com, by clicking on the Technologies Conference link. For more information contact Penny Schneck at 336-605-1084 or pschneck@sandowmedia.com
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1. From left, Scott Gress, Sleepwell; Jeanette Asfeld and Maureen Ciaccio, both of Bluestream; Lou Casali, Sleepwell; and Andy Scharber, Bluestream. 2. Ken Shrawder, left, Dunham’s Department Stores, with Frank Petronzio, Anchor Home. 3. From left, Angelo Amendola, Lee Mao, Ping Pan and John Crippen, all Blue Ridge Home Fashions. 4. From left, Jay Gadhvi, RR Design Concepts; Kevin Koester, Joyce Perea and Liz Benning, all of The Great Indoors; and Rekha Gadhvi, RR Design Concepts. 5. Lorrie Meyer, designer, left, and Roy McLaurin, Maples. 6. From left, Mark Thomas, Fred Adams, Queena Wong, Michael Chain and Vikram Bedi, all of Archer Global.
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1. From left, Pranav Bhatnagar, Jayesh Saxena, Anil Jain, Mohit Jain, Vidyesh Talekar, and Gautman Sareen, all of Indo Count Industries. 2. From left, Amit Ruparelia and Valayuphan, both of Texprocil. 3. Ratesh Kumar, left, and Kumad Goswami, both of Welspun. 4. From left, Paresh Bhuta, Oracle; Manjeet Singh, RP Overseas; Jayant Gupta, Anunay Fab Ltd.; and Sushil Gupta, RP Overseas. 5. From left, Mark Porter, Jeff Kirby and Michael Hickey, all of Biddeford Blankets. 6. From left, Cindy Etheridge and Charlie Etheridge, both Commonwealth Home, and Bob Seaton, independent rep.
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1. From left, T. Kumaravel, Premier Fine Linens; Keith Sorgeloos, Home Source International; and Renald Fenton, Premier Fine Linens. 2. From left, Em Vidmar and Dimitra Angelis, both from By Em; Emi Deguchi, Chez Duvet/Corner Keepers; and Jeffrey Bernstein, Domay Inc. 3. From left, Ben Noonan, Pradip Overseas Ltd.; Manish Singhal, Bhavik Terry Fab; and Pankaj Arora, Pradip Overseas. 4. Jim Morrow, left, AQ Textiles, and Jim Hamlin, JT Enterprises. 5. From left, Amanda Feterik, Cindy Domino, Jesse Ghalili and Michael Christopher, all of Hallmart Collectibles. 6. From left, Su Hilty of 7 W. 34th St., with Mark Mayo and Sandy Mayo, both of Mayo Studios.
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A big
THANK YOU
to all our sponsors and industry guests for making the
HTT FALL 2010 HOME FASHIONS MARKET KICK-OFF PARTY the best industry party! Sponsored by:
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PEOPLETodaY Walmart U.S. Realigns Merchant Executive Structure B ENTONVILLE , A RK. — Electing
to continue without a chief merchandising officer (since the Aug. 1 departure of top merchandiser John Fleming), Walmart’s biggest division has instead reorganized its top merchant ranks into a four-section structure reporting to Walmart U.S. president and ceo Bill Simon. In a Sept. 3 memo to all associates, titled “We are Merchants,” Simon said the division will go forward organized into “four core merchandising areas, each led by seasoned merchants.” He said the new structure “aligns similar cat-
egories and allows us to be even more competitive in each customer channel, improving how we target and localize merchandise.” The merchants - each an executive vp - and their responsibility areas: • John Westling, evp, general merchandise and replenishment; • Jack Sinclair, evp, food; • Andy Barron, evp, softlines; • Duncan MacNaughton, evp, consumables, health and wellness, and Walmart.com. Of the four, Sinclair is continuing in his current role. Westling
shifts into a role similar to that of his most recent post of evp replenishment, pricing and planning. Barron is newly promoted from his most recent stint as senior vp store merchandising execution. MacNaughton arrives from Walmart Canada, where he was chief merchandising officer. “For now, they will report to me, allowing me to stay close as they thoughtfully look at our merchandising opportunities,” Simon stated. Karen Stuckey remains svp of home, now reporting to Andy Barron. HTT
Natco Adds to Design Team WEST WARWICK , R.I. — Diver-
sified home textiles supplier and manufacturer Natco Home Products has hired Travis Spencer, assigning him to the company’s design staff. Spencer works under the direction of Dan Driscoll, vp and creative director for all of Natco divisions, which include Natco Products Corp., Natco Home Fashions, Corona Curtain, Robertson Home Fashions, Jeffer-
son Home Fashions, Bess Home Fashions, Flemish Master Weavers, Central Oriental, Windham Weavers, and Multy Home. Formerly, Spencer was design director of Windham Weavers, where he held that position for seven years prior to the company’s acquisition by Natco in October of 2008. In his new capacity with Natco, Spencer is working exclusively on home furnishings for
the Natco Home Product divisions, assigned to design table linens and decorative pillows as well as room size and scatter rugs. Richard Russo, president of the Windham Weavers division, described Spencer as a “great addition to our team. Travis is well-known, respected, and a most-sought-after artist in the industry. We are proud to be able to have him work with us once again.” HTT
Next Creations Shows Face of Charisma at Bloomingdale’s As one of the few home furnishings retailers participating in Fashion’s Night Out earlier this month, Bloomingdale’s featured the new Charisma bed and bath collection from Next Creations, along with its new “sexy, handsome man,” in the words of Dari Marder, Charisma chief marketing officer. Gabriel Aubry, the new “face,” made a special appearance at the store’s 59th Street flagship location.
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Anna’s Linens Taps Jackson to Direct Real Estate C O S TA M E SA , C A L I F . — Dis-
count home furnishings chain Anna’s Linens has appointed Steven Jackson as the company’s vp, real estate and construction. He assumed his new post Sept. 20, and reports to Scott Gladstone, coo. Jackson comes to 260-plus unit Anna’s Linens following his tenure as svp of real estate at sporting goods superstore chain The Sports Authority, where he is credited with strategically accelerating the retailer’s growth nationally and spearheading its store openings. Prior to that, he spent several years with PetSmart, where he led all real estate initiatives, including market research, property management, lease
administration and construction. At PetSmart he also orchestrated two large sale leaseback transactions, raising $110 million, and ramped up annual new store openings from 26 to 110 throughout Canada and the U.S. In his new stint, Jackson is charged with leading Anna’s Linens’ store expansion as well as overseeing all other real estaterelated matters. “After a long and careful search, we’re confident that Steven is the right person to lead this undertaking on behalf of Anna’s Linens at a time when we are experiencing tremendous growth,” said Alan Gladstone, ceo and founder of Anna’s Linens. HTT
Woolrich Promotes Brayton as Director of Domestic Licensing W O O L R I C H , PA . — Woolrich
announces the promotion of Nick Brayton to the position of director of domestic licensing. Brayton will be responsible for directing all domestic licensing business including accessories and home furnishings. Additionally, he will be responsible for product development, sales and marketing, merchandising and management of domestic licensees. “Nick has done a fantastic job with our accessory business and we’re excited to see him expand his talents in his new role,” said Rick Insley Sr., vice president of merchandising and licensing. Brayton is a seventh generation descendent of Woolrich founder John Rich. He joined the company in 2006 after completing his law degree at the University of Northern Kentucky. That was shortly before the death of his father,
Roswell Brayton Jr., then ceo of Woolrich. “Woolrich is a part of my life blood,” Brayton said. “I’m very proud to be continuing the family tradition of keeping Woolrich a family owned and run company.” Prior to this promotion, Brayton was responsible for managing the Woolrich Accessory Licensing business. Sharon Kepley, licensing manager of home furnishings, will report to Brayton. Woolrich Inc., is an outdoor lifestyle American brand established in 1830. Woolrich product offerings include functional, comfortable and durable men’s and women’s sportswear and outerwear using innovative fabrications for the ultimate in performance capabilities, well-designed home and outdoor living products, and licensed accessory products. HTT
9/22/2010 3:38:21 PM
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September 27, 2010
BUSINESS TodaY Pier 1 Profit up in 2Q DALLAS — Pier 1 Imports reported its second-quarter results earlier this month, showcasing improved comparable stores sales and a return to profitability. For the quarter ending Aug. 28, the company reported comparable store sales growth of 11.2% versus last year’s decline of 7.6% and an operating income of $15.2 million compared to an operating loss of $15.3 million last year. Net income for the quarter was $14.4 million or 12 cents per share. The company’s merchandise margins were 58.3% of sales compared to 52% of sales last year. In addition, Pier 1’s gross profit improved to 36.9% of sales compared to 28.5% last year. Alex W. Smith, president and ceo said, “Our return to profitability and beyond is firmly on
track - we are all extremely upbeat about short and long-term prospects for our company.” Smith noted that the results showed a more “normalized” business with fewer heavy promotions and clearance sales. Smith pointed to an overall reduction of clearance merchandise and better margins on the same goods. He said the company is targeting a goal of $200 per square foot over the next few years. “We’re building our business one sku and one customer at a time,” he said. Though admitting the economy is still somewhat soft, Smith expects the company to do well as long as the recovery is slow but continuing. The company also outlined expanded plans for its digital
presence. A “Pier 1 on the Go” website will be launched next year to allow customers to “preshop” online, check availability and pay and pick-up items at their local store. This year, the company is increasing its ad presence on sites such as Marthastewart.com and sheknows. com. Finally, Smith noted that it will invest more in social media. Though Pier 1 does have accounts on the major social media sites like Facebook and Twitter, more effort will be made to update them frequently and offer special promotions. Later this fall, the company plans to promote its efforts for the charity Toys for Tots through Facebook by donating $1 for every new Facebook follower. HTT
Survey Examines Online Shopping Habits RESEARCH TRIANGLE PARK , N.C. — Solutions provider Channe-
lAdvisor, based here, has published the results of its 2010 Consumer Shopping Habits Survey. The survey, which the company has conducted for the past three years, is designed to reflect changes taking place in the ecommerce arena with a specific eye toward how consumers plan to shop online. Key findings include: • 58% of those surveyed plan
to purchase their gifts online this year, besting brick-and-mortar stores by nearly 20 points. • The economy doesn’t seem to be as big of a factor as some may believe for the consumers surveyed: 41% said that their shopping habits were unaffected by the state of the economy, and 43% think the economy is bouncing back. • When browsing for a gift idea, 59% of those surveyed started on search engines, followed by
marketplaces at 28% . Only 10% started directly at a retailer’s online store. • Consumers are not as retailname conscious as one may expect: 67% said they would purchase an identical product from an unknown store if the store offered a better value. Survey results are available in the free white paper, Through the Eyes of the Consumer, which can be downloaded at www.channeladvisor.com/consumersurvey. HTT
Same-store sales
BTS Transitions into Early Fall Season NEW YORK — The same-store sales pace slowed
in general did not perform well, hurting departa bit during the third week of September as the ment stores with their narrower merchandise back-to-school season wound down, according bases,” said Catlin Levis, Redbook analyst. HTT to the Johnson Redbook. Comps for the week ended Johnson Redbook Index Sept. 18 rose 2.2%, with disThird week of September, year-over-over % change counter comps up 2.7% and WEEK ENDED 9/4 9/11 9/18 9/25 10/2 MONTH TARGET department stores up 1.2%. Department stores* 2.0 1.7 1.2 1.6 1.8 “During the week, disDiscounters 3.5 3.5 2.7 3.2 3.4 counters were sustained largeRedbook Index 3.0 2.9 2.2 2.7 2.9 ly by food and household sup*Including chain stores and traditional department stores plies. Some clothing categories Source: Johnson Redbook Index were active. However, apparel
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Consumers Still Cautious, but See Better Holiday Outlook C OLUMBUS , O HIO — Consum-
er confidence has dropped to its lowest point since February of this year, declining in September to 27.4% of shoppers asserting they are very confident or confident about chances for a stronger economy. That level was just slightly below August’s 27.8% indication, according to consumer research firm Bigresearch. The February reading was a notch below at 27.2%. In its latest Consumer Intentions & Actions Survey, which monitors more than 8,000 consumers each month, Bigresearch said the current consumer confidence level is also trending below September 2009 (29.8%) and September 2008 (28.3%), both of which were steeply down from the September 2007 reading of 41.2%. More bad news: the outlook for the job market dimmed in September, as the U.S. unemployment rate ticked upward to 9.6% in August. One-third, or 32.0%, of the consumers surveyed predicted there will be “more” layoffs over the next six months, rising from 28.9% in August – and the highest reading since December 2009’s 32.5%. The majority, 51.9% of those surveyed, said they felt layoff levels will remain the “same,” representing a decline from 53.1% last month. Optimistic for “fewer” layoffs were 16.1%, also a decrease from 30 days ago (18.0%). There remains some bedrock confidence, however. “Despite rising anxiety for the overall employment situation, workers still seem to be pretty confident about their personal job security,” Bigresearch found, citing 4.0% who said they feared the pink slip, on par with the 3.9%
rating in August but well below September 2009’s 7.8%. As consumers watch their spending closely, it is little surprise that “debt management appears to be the priority for this fall,” as one-third (32.8%) said they intend to pay down debt over the next three months, down slightly from one year ago (34.5%). At retail, the coming holiday season is on the minds of both the stores and shoppers. “Consumers might be in a more positive gift-giving mindset this year, as 5.3% intend on spending more on gifts this holiday season, besting readings for September 2009 (3.8%) and September 2008 (4.7%),” Bigresearch reported. Of the remainder, 32.1% plan to spend the same amount, while more than a third (35.3%) plan to spend less. About onefifth, or 22.1%, said it’s still too early to know. “Expect the economy, unemployment rate, and housing market to be tipping points in consumers’ decisions to spend this holiday season,” the report warned. In the home improvement and hardware side of retail, Home Depot at 30.6% and Lowe’s at 26.2% continued to dominate among do-it-yourself shoppers. Following not so closely behind were Walmart (7.2%), Menards (4.1%), and ACE Hardware (3.1%). On the topic of future purchases, “it appears that overall spending sentiment heading into the all-important holiday season has improved, as most product categories are up from September 2009 and September 2008,” Bigresearch found – with intentions to buy home decor down, but linens and bedding up. HTT
9/23/2010 10:10:58 AM
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Walmart MERCH FROM PAGE 2
described a scene found in many Walmart stores on the last day of each month in 2010. Shoppers start arriving around 11 p.m., picking out basic items such as infant formula, milk and bread, and then at midnight -- “when government electronic benefit cards get activated” -- they enter the cashier lanes. The company’s re-dedication to delivering to consumers on its Every Day Low Price proposition goes straight back to Sam Walton, he stated, and another of Walton’s philosophies that’s just as important is commit-
JCPenney HOME FROM PAGE 2
he noted, and JCP is “starting to see traction in soft home — in luggage, bedding, and bath.” Ullman was less sanguine about the window coverings and furniture categories, commenting that it will “take longer getting those two businesses on
Home Textiles Today
September 27, 2010
25
ment to a “very broad merchandise assortment.” Simon said Walmart, with its Project Impact re-merchandising focus of recent years had gone too far into a “category distortion” policy with trimmeddown, win-place-show offerings and aggressive “Great Value” private label presentations that somewhat baffled shoppers - and turned off too many suppliers, who found their product lines pared below tolerance. Too often, he acknowledged, consumers were going into a Walmart store to buy 15 items, but coming out with just 12. Even the massive price rollback campaign of early summer 2010, while driving the macro pricing
environment, did not generate traffic upswings as substantial as hoped for by the chain. In part due to these “learning” pains, Walmart posted flat revenues and negative comp store volume in the second quarter. The big merchandiser is now in a line-by-line, store-by-store review of every sku; the effort started in dry grocery and consumable categories. To suppliers, Simon said, the new message is clear: “We want to sell your product. Assortment is important to us. New products are our engine as well as yours.” And Walmart, he asserted, “can launch a product as well as anybody in retail.”
This too, Simon said, is based on a Walton core concept: that Walmart should be in win-win relationships with its vendors. At the same time that Simon’s team in Bentonville will inject speed into the merchandising function through greater centralization, a reinvigorated fi eld buying organization will join store managers in fi lling out 10% or even in some cases as much as 20% of a store’s merchandise mix. This, too, is a return to a previous mode when Walmart store managers, attuned to their local market tastes and trends, participated more directly in buying.
The ongoing turnaround, Simon said, will be dramatic enough to require a re-setting of some freshly newly remodeled stores that had been planned on the category distortion model. Simon emphasized that the company will champion national brands. “We are a house of brands. We prefer to sell national brands; they show our value better” in head-to-head comparison with competing retailers, he said. Private label products, however, will remain vital in a number of categories. “In home and apparel they will lead, where we don’t have the national brand penetration where we wish we did.” HTT
track.” Furniture is in only 150 of the company’s 1,110 stores, he observed -- and sales volume in window treatments, he believes, is suffering because “people are not investing” in home redecorating or new homes at robust rates of spending. JCPenney will “be a little louder” in advertising and digital media in 2011, he said.
The retailer keyed up its fall Liz Claiborne offering just this past Sunday with a “Little Red Book” print-and-internet campaign that encourages shoppers to “see it on the runway” and “buy this look.” JCP debuted its Little Red Book in a September 2009 mailing as it initiated its transition from “big book” catalog mailings to more spe-
cialized, targeted media. Ullman said print mailings remain vital to pumping up online and in-store sales volume, validating the company’s decision to “transition” rather than simply walk away from its “static” catalog segment. N o t i n g t h a t J C Pe n n e y recently notched a 108-year-high in gross profit, Ullman said he
thinks the company, coming out of its two-year “bridge” strategy in a cash-strong position -- and with updated technology, awardwinning customer service, and broad new assortments of fresh merchandise -- is in a sound condition to take advantage of any signs of renewed consumer discretionary spending now and in the year to come. HTT
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Home Textiles Today
September 27, 2010
OPINIONTodaY Market Week Wrap-Up “In the most interesting development, I began to hear some speculation about production moving closer to home.”
I
S AW A LOT of polyester. That includes poly-rich nant pool of target accounts, one needs to branch out to sheet sets and utility bedding shells as well as micro- increase revenues. fiber top of bed. If there was a theme on the international front, it would As many suppliers noted, poly prices may be high, have to be: It’s good to be an Indian manufacturer. With but cotton prices are higher. all that’s been happening in China over the past year and To the industry’s credit, a lot of work has been done to a half, Indian suppliers are feeling well-positioned vis-à-vis give many of the poly-heavy constructions a reasonably dry the U.S. market. Most of those with whom I spoke are in and somewhat cottony-like hand. the midst of expanding capacity (usually core product caMost asked question of the market: Are repacity and some new product capacity). When tailers taking prices increases? Most people said asked about pursuit of their domestic market, the they are — but not enough to cover the actual answer usually indicates it’s either very tertiary, raw material cost hikes. De-specing is the rule or it’s too early to consider at all. of the day. In the most interesting development, I EDITOR-IN-CHIEF Which brings us to … quick dry towels! It began to hear some speculation about producwas the most-used spin on thin, light-weight tion moving closer to home. Many are betting towels that can meet an opening price point. China will finally begin letting its currency Certainly, not everyone wants a bath towel loose over the next few years. I heard menthat, when wet, weighs more than a frozen turtioned the possibility some cut-and-sew could key. But the industry for years has been telling return to the United States, just enough to satthe consumer that fat, fluffy and highly absorisfy fast-fashion home goods and quick-turn rebent is the way to go. Will the consumer cotton plenishment. A couple people also mentioned (so to speak) to an about face? China’s rising prices might put Mexico back into play as We’re starting to see suppliers extending into new cat- a home textiles homeland. egories again. That suggests they’re confident enough to Overall, the mood was pretty good. Let’s hope it points make investments. It also suggests that with a rather stag- the way forward. HTT
Jennifer Marks
Feeling “Pretty” Good “The market here in New York earlier this month certainly reflected a major change in attitude on the part of both buyers and suppliers.”
I
T ’S BEEN LONG T I M E since I’ve seen so many than a “wait and see how low it will go” scenario. pleasant, even smiling faces during a home textiles Beyond just the generic word “pretty” there were lots of — oops, home fashions — market. But the market ways it was featured — lavish embroideries, cutwork, gorhere in New York earlier this month certainly reflect- geous prints and creative ruching that could rival that of ed a major change in attitude on the part of both buyers the finest Paris ateliers. and suppliers. But beyond “pretty” there seems to be a growYes, there was the whole menu of concerns, ing awareness that today’s consumer is looking but most folks seemed to understand that these for something more than what the industry has were more macro than micro issues and not been putting in front of here for the last deFOUNDING just confined to the home textiles world. I guess cade. when you realize that some stuff is just out of your EDITOR-IN-CHIEF There’s a whole shift in lifestyle and values, hands, it almost becomes easier to deal with. and this business has to catch up to stay even. So for the moment, we won’t even go near those top- Ease in lifestyle, more consumer friendly approaches and ics — they’ve been discussed and over-discussed — but in- a new language that speaks outside the “industry” jargon. stead let’s look at some of the industry’s happenings. Just look at the advertising from the key players in this First off — I can’t remember using the word “pretty” business and try to put yourself in the customers’ shoes. so many times in such a short time frame. But in show- What is drapery hardware and how will it maker life betroom after showroom there was lots of “pretty” in terms of ter and easier? Why is a towel quick dry better than a nice new product — not just in bedding, where it was a most plump fluffy towel? What does a gazzilion pieces of a welcome addition, but also in many other categories in- matching bedroom ensemble in a bag mean in terms of cluding window. comfort and enjoyment? Perhaps this is the dose of freshness the marketplace These questions in today’s era are just the tip of what needs to get consumers excited once again about their customers now expect — and will expect even more down homes. We’ve been through too long an era of dull drab the road. jacquards that as they disintegrated into a price/number of Some real progress was made at this market. But more pieces story became less and less a fashion reason to buy certainly can be done. HTT
Carole Sloan
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Home Textiles Today
September 27, 2010
27
Welspun FILICIA FROM PAGE 1
“We’re really pleased with the quality of the embroidery. If you feel it, it has a lot of depth.” Welspun has grouped its core sheeting programs under three umbrellas that address the attributes consumers have identified as most important to them when shopping the category: Cool & Crisp, Strong & Soft and Performance. There are good/better/ best offerings under each heading, and 40 new colors in the overall palette. The manufacturer is also making a bid to become a serious player in the decorative pillow category, with a broad range of solid, printed and embellished decorative pillows. The products will retail from $29.99 to $39.99. HTT
Li & Fung LI FROM PAGE 1
response” and, “I’m sure that will double over the next three to six years.” He said quick response “used to” mean merchandise sourced on a 60-day order-to-shipping basis. That is still a fairly realistic benchmark, compared to a time not long ago when U.S. retailers were in the habit of planning 7-month lead times for Far East production. But, pointing to Spanish fashion retailer Zara, an exemplary Li & Fung customer, Rockowitz noted, “We have 20- and 30-day turns, but it has to be very well planned;
Sales TARGET FROM PAGE 1
merchandised,” Scovanner explained, but have proven to yield better sales velocity than non-updated home departments. Scovanner indicated that in the PFresh stores that were first put into operation, starting in January 2010, the project seems to deliver “a sales lift in the range of 6% to 11% as soon as they re-open.” This lift, he acknowledged, was initially focused in the new food skus - but the retailer is “starting to see crossover” to other categories. A similar result has been seen in the Kansas City test of the new 5% Rewards program. Target is poised to launch this offer nationally in October, as
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Welspun goes after the fashion end of the dec pillow business, above. Left, beds under the Christy brand marry the London studio’s traditional designs with embroidery.
we have to empowered to make a lot of approvals on the spot. It takes a lot of discipline.” “Retailers across the world are struggling to figure out how to do it,” he said. “Quick response has to do with empowering the people on the other side of the water.” Walmart, which has generally relied upon wholesalers to supply its vast buying needs, is in the first year of a strategic sourcing partnership with Li & Fung. This customer is expected to do more than $2 billion in business with the trading company in the first year, with the deal applying to all non-food categories and all international divisions as well as
Walmart U.S. The goal is simple, Rockowitz said, and it hews to the big merchandiser’s core principle: to “help bring lower prices” to the consumer. That will be accomplished, he said, even in light of the fact that “China exported deflation” for 15 years as a global production hub but is “now starting to export inflation.” For its own goals, Li & Fung is poised to make its largestever acquisition, buying Hong Kong-based IDS, giving it a distribution network to 150 cities in China, bringing the ability for Li & Fung to swiftly establish a robust organization to sell into China, fitting into its strategic
plan to export U.S. and European brands into Asian markets. Rick Darling, president of Li & Fung USA, addressed brands stateside with the observation that there has been a growing shift back toward national brands — especially in exclusive derivatives of a parent brand — among U.S. retailers. “That activity has increased dramatically” in the last three or four years, he said, and in particular the designerdriven brands are gaining visibility and business credibility. By example, Darling pointed to Kohl’s, where Li & Fung has helped shape the Simply Vera Vera Wang program. “Vera Wang wanted to show
that she can diffuse and maintain her better business,” he explained, “and her success has made many younger designers see they can do this earlier in their careers; [the major] stores are giving them the platform to do that.” The payoff for the ret ail chains, of course is that being the exclusive home of a designer program gives the merchant a stronger differentiating profile to consumers, which can help boost margins. As Li & Fung prepares its next three-year plan, brands and brand development are becoming every bit as vital as its capacity to turn factory production on a dime. HTT
it looks to retire its existing store card setup. With 5% Rewards, shoppers who use their Target branded credit or debit card get 5% off almost any type of purchase. The early-adapters of this program seem to be the most affluent of Target’s customer base, and they have increased their shopping frequency by two or three times, totaling as much as 50% more in purchases -- spread across virtually every department and category in the stores. The goal of both PFresh and 5% Rewards is essentially the same: drive top line revenues. Scovanner said Target management is convinced that the company will succeed in accelerating sales growth while still maintaining its record-high operating margin rates and contin-
ue its hard-won expense-control efforts. “We see adding $700 million to $1.4 billion in incremental sales” net of discounts in the first year of the 5% Rewards program, he said, noting that this comes without investing any capital and without much in the way of new expenses. The $67 billion retailer has several other major initiatives cooking. In 2011 it will transition away from its long term e-commerce contract with Amazon; it will get closer to opening new, smaller-format stores in the 60,000 to 100,000 square foot range, particularly practical for urban areas; and at some point perhaps in 2013 may open its fi rst international stores, more likely than not in Canada. HTT
Expansion
gain-hunting has benefited the chain, he said, and Anna’s is running double-digit comp increases this year. “We realize the pie is not growing, but we’re taking market share,” he said. “No quest i o n w e w e r e a b e n e f i ci a ry of Mervyn’s and Linens ’n Things closures. In some categories, we’re taking from the mid-tier.” Window is the fastest growing category in the store – one Anna’s services with associates on the floor trained to assist customers. “When we run a curtain event, we can sell 100,000 units in a week,” he said. Anna’s adds new product to the mix each month – because “our customer wants to see new.” HTT
ANNA’S FROM PAGE 1
ecommerce, which is now the fastest growing part of the business, he said. The site, annaslinens.com, carries much of the merchandise found in stores as well as items the stores don’t offer. About 20% of the assortment online is not in Anna’s Linens stores. “We don’t want to deviate too much from what makes us special,” said Gladstone. Some of the offerings are a little more upscale or there may be more breadth of color or a broader range of sizes, he said. “We’re putting capital behind it,” he added. “We’re going to have a major expansion on the internet.” The consumer shift to bar-
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