Furniture Today October 29th Issue by Sandow Media

Oct.

29 2012 Vol. 37 No. 8 $10

T H E B U S I N E SS N E W S PA P E R O F T H E F U R N I T U R E I N D U S T RY

Ikea plans robust growth Says sales could grow 85% by 2020 By Clint Engel STOCKHOLM — Home furnishings powerhouse Ikea expects to add some 200 stores worldwide over the next eight years and grow its revenues by as much as 85% — all while becoming energy-independent by 2020. With the unveiling of a new sustainability strategy last week, the Sweden-based retailer disclosed that it “potentially” could increase group revenue to 45 billion to 50 billion euros by 2020, up from 26.9 billion euros for the most recent fiscal year ended Aug. 31.

see Ikea, p62

Old HP factory to be showroom

Market exhibitors upbeat Despite lighter traffic, key buyers show up By Larry Thomas HIGH POINT — Despite sluggish showroom traffic, most exhibitors left High Point in a positive frame of mind after receiving a solid round of product commitments and orders during this month’s market. Exhibitors said Top 100 retailers and other large chains shopped the mar-

ket hard, as usual, but there appeared to be fewer buyers from small and mid-sized dealers — especially those based in western states. A few showrooms said traffic was as much as 30% to 40% below the October 2011 market, but most said the attendance declines were in the 3% to 5% range.

“Attendance was down, but those (exhibitors) who really put forth the effort had a good show,” said Heinz Kattenfeld, chief operating officer of the 220 Elm showroom building. Len Burke, vice president of marketing at Klaussner, agreed, noting that buyers from virtually all the company’s key accounts visited

see Market, p62

By Clint Engel HIGH POINT — The owners of case goods importer Woodbrook Designs and upholstery importer Boliya USA are acquiring a 48,000-squarefoot former furniture factory here to expand their furniture market presence and lease to other tenants as well. Terry Seitz of Terry Seitz and Associates, who shows his Woodbrook product in 220 Elm, said the two expect to close Dec. 3 on the historic 1929 three-story brick facility at 812 Millis St., a

High Point hits Market Highlights, p20 Best of Market, p35

see Showroom, p57

Card swipe deal draws protest By Clint Engel WASHINGTON — The majority of merchant plaintiffs in a multibillion-dollar proposed antitrust settlement over credit card swiping fees now say they oppose the agreement with Visa, MasterCard and some of the nation’s largest banks. According to a release, the objecting retailers and merchant associations contend the proposed settlement won’t reform “the

OMNIA Tangerine, one of the market’s hottest colors, helped make the Vivaldi barrel chair a hit with buyers.

PARKER SOUTHERN Mosaic details accent striped fabric paired with teal, one of the fall market’s breakout colors, in this chair. advertisement

see Card, p57 www.furnituretoday.com

I N D E X

Bedding Today ................... 48 Bedding Retail Playbook ..... 47 Classifieds ........................... 58 Consumer Counts ............... 50 E-Intent .............................. 12

Industry Numbers ............... 63 Mattress Metrics ................. 52 Staff listing.......................... 56 People Today ...................... 18 Rug News ........................... 14

CHELSEA HOUSE This Classic Chinese chinoiserie console is hand-painted with light decoration and clean lines.

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OCTOBER 29, 2012

Industry News

City of Hope to honor Amini, Goldberg family HIGH POINT — City of Hope will honor Michael Amini of AICO and the Goldberg family — Neil, Steve Amini and Michael — of retailer Raymour & Flanigan with its 2013 Spirit of Life Awards during next April’s High Point Market. The awards, the most prestigious philanthropic honor presented by the medical research and treatment center, will be given at the Spirit of Life Award dinner April 21 at the Grandover Resort in Greensboro, N.C. In addition to philanthropic achievements, the awards also recognize outstanding business leadership. Amini, the founder and CEO of case goods and upholstery source AICO, and the Goldbergs, whose Liverpool, N.Y.-based chain has grown to 102 stores, have been longtime supporters of City of Hope.

Steve, left, Neil and Michael Goldberg of Raymour & Flanigan, and AICO’s Michael Amini, will receive the Spirit of Life Award. “I am honored to be selected and thrilled to be working with the Goldbergs to spread the word on the many life-saving research advancements City of Hope makes that benefit patients worldwide,” said Amini. Neil Goldberg added, “We are proud to be working with Michael Amini to build awareness and support of City of Hope, an organization committed to finding a cure for cancer and other life threatening diseases.”

Designer Jena Hall and Roger Friesen, president and CEO of case goods source Casana, are co-chairs of the National Home Furnishings Industry committee supporting City of Hope, and Kevin O’Connor of Samson Marketing chairs the organization’s Spirit of Life campaign. For event information and sponsorship opportunities, contact City of Hope’s director of development, Brittany De La Torre, at (213) 241-7168 or bdelatorre@coh.org.

L&P getting into gel products By David Perry CARTHAGE, Mo. — Leggett & Platt, a major supplier of innersprings and other products to the mattress industry, is entering the specialty sleep category with a line of gel bedding components. The new products, which will be produced by L&P’s Bedding Group in Carthage, will be unveiled early in 2013, the company said. The diversified manufacturer said it has entered into a partnership with EdiZone LLC, a product design and development company, to produce a gel-based specialty sleep product. “There’s still a lot of growth left for gel sleep products,” said Mark Quinn, segment vice president of marketing with Leggett & Platt. “Leggett & Platt’s gel has a pressure-relieving quality that has already been proven in the health care industry. The gel space is so crowded today, but the unique properties of

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our gel components will stand apart from what is currently out there.” The company said production of the gel is being moved to Carthage, allowing L&P’s “supply chain advantage to create an exciting opportunity in the market.” In a related announcement, L&P said Cody Messner has been named product manager for the Bedding Group, where he will

focus on gel and other product development opportunities. “Our gel is a very demonstrable product at point of sale,” said Messner. “In our research, we have seen consumers respond well to demonstrations that show how our gel reacts to pressure. In this industry, everybody wants an impactful demo — that ‘hand print-in-the-foam’ moment — and we think we have that with our gel.”

THE BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY (USPS 330-630) (ISSN 0194-360x) Published weekly 49 times per year except for the 1/31, 4/11, 5/30, 8/8, 10/31 and the 11/21 issues with three issues produced on 5/3, 11/15 and 11/29 by Furniture/Today Media Group, 7025 Albert Pick Road, Greensboro, N.C. 27409, a subsidiary of Sandow Media LLC 3731 NW 8th Avenue, Boca Raton, FL 33431. Subscription rates U.S. and Canada: 1 year, $169.97, 2 years, $270.97, 3 years, $379.97. Single copies U.S. and Canada: $10.00, market and special issues, $10.00-$35.00. All other countries $325.99 per year surface mail. Single copies outside the U.S., $20.00 (includes shipping and handling), prepaid U.S. currency. Subscription inquiries: FURNITURE/TODAY, P.O. Box 5879, Harlan, IA 51593-1379. Phone: (800) 395-2329. Requests may also be emailed to: FTYcustserv@cdsfulfillment.com. Periodicals postage paid at Greensboro, N.C. 27409, and additional mailing offices. “FURNITURE/TODAY” and “THE WEEKLY BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY” are registered trademarks of Sandow Media LLC, used under license. Sandow Media LLC does not assume and hereby disclaims any liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident or any other cause whatsoever. POSTMASTER: Send change of address to Furniture/Today, P.O. Box 5879, Harlan, IA 51593-1379. Posted under Canadian International Publications Agreement # 40624074. Return undeliverable Canadian addresses to: APC; P.O. Box 503, RPO West Beaver Creek, Rich Hill, ON L4B 4R6. FURNITURE/TODAY copyright© 2010 by Sandow Media LLC.

Editor’s desk

Middle class is our bread and butter

f you’ve been following the presidential election you know you’ve heard both sides talking incessantly about the middle class. In this week’s paper, Stephanie Nickell, one of our skilled research analysts, puts together a compelling story that augments a column I wrote back in September about the challenges middle-class Americans are facing. My column focused on the fact that the middle class — historically a key consumer group for home furnishings — is shrinking, both in size and in the levels of income available to them. A recent study by the Pew Research Center concluded that “the middle class is struggling to survive and shrinking before our eyes.” The report, which polled some 2,500 consumers who identified themselves as middle class, determined that the mean net worth of middle-class families tanked 28% to $93,150 in 2010, down from $129,582 in 2001. It also found that as a direct result of dwindling income levels, 62% of the middle class said they have cut spending. While this should be sobering news to all retailers, home furnishings retailers should pay special attention, particularly since our 2011 Consumer Buying Trends Survey found that 40% of furniture and bedding consumers have incomes of between $50,000 and $99,000. It was not surprising to learn that another survey released last week from Pew Social and Demographic trends found that members of Generation X, those Americans aged 35 to 44, are now most concerned about financing their retirement. That is a stark turnaround from 2009, when that group said it was least worried about having the funds to retire. I’ve heard the politicians go on and on about the trickle-down effect, but I don’t think this is what they meant. But can you blame the Gen X crew? A recent Census Bureau study found that those aged 35-44 saw the biggest percent decrease in median household net worth between 2005 and 2010. Worried or not, however, sooner or later (let’s hope sooner) they will need furniture. So the challenge — or opportunity — centers on the message you send their way to encourage them to buy from you. I would love to hear from those of you who have figured it out. Send me an email at rallegrezza@ furnituretoday.com Editor in chief

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OCTOBER 29, 2012

Industry News

Di Gaetano president of Natuzzi Americas By Ray Allegrezza HIGH POINT — Leather upholstery major Natuzzi Americas has a new president in Fernando Di Gaetano, who has 25 years of corporate experience with a number of global companies including IBM and Italian fashion consortium

Ermenegildo Zegna. He replaces Joseph Mussallem, who had been president since early 2010 and left the company just before the High Point Market. Pasquale Natuzzi, corporate CEO and president of Italybased Natuzzi Group, said, “I am so sorry to see Joe leaving

dedication to our comthe company but I am pany.” sure that his 20 years Natuzzi added, “At with Natuzzi serving in the same time, we various positions will are fortunate to have provide him with huge a professional of Di opportunities in his fuGaetano’s caliber step ture professional deDi Gaetano in to manage the comvelopment. We thank pany’s growing brand Joe for the wonderful contributions and outstanding portfolio.”

In his previous posts, Di Gaetano was involved in branding, fashion, corporate structure and financials — all elements that will help him expand the Natuzzi brands in the U.S., the company said. Di Gaetano, who will reside in the United States, said, “I am thrilled to be joining the Natuzzi team of professionals and am excited about the opportunity to take advantage of every opportunity to broaden and strengthen the Natuzzi brands here in the United States.”

DiNonno joins AICO

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PICO RIVERA, Calif. — Kim DiNonno has been named the director of design development in the merchandising division of AICO/Amini Innovation Corp., the company announced. DiNonno has more than 20 years of experience in home furnishings and most recently worked in design and merchandising for DiNonno manufacturer RC Furniture of California. AICO CEO Michael Amini said DiNonno will bring a new dynamic to the company. “We are very fortunate to have someone with Kim’s great enthusiasm, knowledge and experience join the AICO team,” he said. “The rapid growth of soft lines and other product divisions have prompted the need to further expand our product development and merchandising team with a focus on unique styling and product execution,” said Martin Ploy, AICO’s president. “Kim brings a deep passion for furniture and design. Her sense of style and keen understanding of home fashion trends will harmonize beautifully with Michael’s vision and distinctive flair.” DiNonno has also worked with retailers and fabric suppliers in previous positions. She was the director of catalog merchandising for FurnitureLand South in North Carolina and the interior designer for Ladlows Fine Furniture in Arizona.

10/25/2012 4:20:52 PM

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FURNITURE |TODAY

OCTOBER 29, 2012

Industry News

Thank you for making High Point another huge success!

Rosenberg, investors to open Boyles stores By Clint Engel HICKORY, N.C. — An investment group backed by Gene Rosenberg has formed a joint venture with the owners of the Boyles Furniture name, creating a new company to open multiple mid-priced to high-end Boyles Furniture & Rugs stores. Rosenberg is co-founder of sales and liquidation specialist Planned Furniture Promotions and Top 100 company Bob’s Discount Furniture. According to a release, the investment group, led by PFP Senior Vice President Mark Bannon, formed the venture with Alex and Chad Hendricks, who owned the name of Boyles, a former Top 100 company The new Boyles Brand Holdings, with offices in North Carolina and Connecticut, “plans to leverage the nationally known Boyles brand to create a powerful retail presence in the mid to high-end furniture sector,” the company said, rebuilding a segment of the industry hit hard during the recession. Terms of the deal were not disclosed, but the new investment team, with the Hendricks on board, now owns Boyles — including the 30,000-squarefoot Boyles store that opened in Merinos Home Furnishings showroom in Mooresville, N.C. earlier this year. The new company said it “has begun executing plans to open multiple Boyles Furniture & Rugs stores. In addition, the group plans other initiatives

including offering a complete turn-key retail solution to current or prospective retailers throughout the country.” Bannon said he could not disclose expected locations or other details about the stores, except to say the average size will be between 20,000 and 40,000 square feet and that one showroom will be open within two months and another by earlier 2013. He said the investor group sees Boyles as a new vehicle for existing retailers, who have been struggling but don’t necessarily want to close their doors. “We see an opportunity to license the Boyles Brand or joint venture with retailers to have the brand be a solution, to breathe life back into their business,” he said. Transitioning retailers from existing stores into the Boyles format, as well as opening new locations, are part of the initial plans, Bannon added. The Hendricks brothers, sons of longtime Boyles owner Larry Hendricks, acquired the high-end brand following the retailer’s bankruptcy, emergence and eventual shutdown in early 2011. They have been looking for the right opportunity to expand the name on a national level, the company said. The owners of the new Boyles Brand Holdings in addition to Bannon and the Hendricks are Gene Rosenberg, Paul Cohen, Burt Homonoff, Rob Rosenberg, Tom Liddell, Roy Hester and Jerry Cohen.

Stanley broadens Tilley’s role formerly handled by STANLEYTOWN, Va. Ward O’Quinn, prod— Case goods resource uct manager for Young Stanley Furniture has America. O’Quinn will announced that its vice continue to develop president of product new youth product, development, Adam but will report to TilTilley, is now responsiTilley ley. ble for the Stanley and Harold Mabe, currently Young America product lines. Tilley has been overseeing product management and endevelopment of Stanley’s adult gineering coordinator, reports to product lines, which include O’Quinn. Tilley reports to Glenn imported bedroom, dining Prillaman, president and CEO. “This new organizational room, and occasional furniture. Now he will also oversee structure allows us to capitaldevelopment of youth furni- ize on the individual strengths ture under the domestic Young Adam and Ward bring to this collective process,” Prillaman America line. The responsibilities were said.

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OCTOBER 29, 2012

Industry News

Rose heads slate of NHFA officers for 2013 HIGH POINT — Cherie Rose, owner of the Rose Collection in Los Gatos, Calif., was elected president of the National Home Furnishings Assn. at the organization’s annual membership meeting during the High Point Market. Rose has served on NHFA’s

board and executive committee since 2000 and has been an NHFA officer for the past three years. She is an interior designer, retailer and entrepreneur who started her business in 1991 and has grown it into a high-end design operation. Rose and other officers will

begin serving their terms Jan. 1. Also elected were Rick Howard of Sklar Furnishings, Boca Raton, Fla., presidentelect and treasurer; John Wells of Wells Home Furnishings, Charleston, W.Va., vice president; and Donnie Hinton of

Color Tyme, Gaffney, S.C., vice president. Marc Schewel of Schewel Furniture, Lynchburg, Va., the current NHFA president, was elected chairman of the executive committee. Dianne Ray of Garden City Furniture in Garden City, S.C., current chairman, will retire

as an NHFA officer and executive committee member in January. Separately, Rose Valerie Watters of Valerie’s Furniture & Accents in Cave Creek, Ariz., is expected to be elected president of NHFA affiliate Western Home Furnishings Assn., in January, marking the first time women have served as president of NHFA and an affiliate during the same year.

Carl’s exits bankruptcy COCONUT CREEK, Fla. — South Florida retailer Carl’s Furniture officially exited Chapter 11 bankruptcy protection this month and is now looking to expand. Jeff Baker, CEO of the former Top 100 company, said Carl’s is evaluating real estate for a fourth store, either in its existing southeast Florida market or southwest Florida. He said he would like the space to be about 50,000 square feet. Baker said business has been strong for the upper-middle to high-end retailer, up double digits from a year ago. But he couldn’t give a projected sales volume for the year. Carl’s filed for bankruptcy in May 2011, listing assets of $6.1 million and debts of $9.1 million. It emerged with three Florida stores following confirmation of its reorganization plan, under which unsecured creditors received 8.5 cents on the dollar. Baker said all of Carl’s customer deposits were honored in full toward the furniture they had purchased before the filing. “It was not a pleasurable experience to go through bankruptcy, and I want to thank the vendors who have stuck with us through it,” Baker said. “We will continue to reward (them) with our loyalty.” Key suppliers for the retailer today include Natuzzi, Man Wah/Cheers, Klaussner, Folio 21, Century, American Drew, Sealy and Stearns & Foster.

— Clint Engel

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OCTOBER 29, 2012

Industry News

Pure LatexBliss promotes Walthall ATLANTA — Pure LatexBliss has promoted bedding veteran E.B. Walthall to vice president of sales for North America, a new position at the company. Walthall was hired earlier this year by the latex bedding producer to lead sales for its Eastern division.

duction manager at Before joining Pure Simmons. LatexBliss, Walthall “Industry insiders spent seven years as know that passion is vice president of sales our company’s greatat International Bedest strength and focus ding Corp., overseeis one of our greatest ing the company’s Walthall values,” said Pure Lalargest region. Prior to that, Walthall worked as a texBliss President Kurt Ling. sales representative and pro- “With these values in mind, it

made sense for us to promote E.B. from within because he knows our culture. In addition to his sales leadership skills and broad experience in operations, merchandising, and sales management within the industry, he is a natural coach and mentor to our growing team.”

23 inches

Market From p1

From our Hands to Yours American Hands, American Jobs, American Pride While other manufacturers have turned to overseas factories for production, our upholstery operations have remained here in North Carolina since our first day in business. Here in the furniture capital of the world, we employ the most skilled and experienced craftsmen in the industry. That makes us faster, more responsive and gives us a competitive advantage. That’s why we can offer custom order upholstery in 21 days or less—the fastest and most reliable in the industry.

Showroom: Klaussner on Hamilton - 101 N. Hamilton St. Manufacturing Facilities: Asheboro, NC 27205 , 336.625.6174

obituaries

William Curtis Larmon, longtime Florida retailer TAMPA, Fla. — William Curtis Larmon, the longtime owner of retailer Larmon Furniture here, died on Oct. 19 in Tampa. He was 83. A native and lifelong resident of Tampa, Larmon, who went by Curtis, ser ved Larmon in the Navy and in the Naval Reserve. He graduated from Tampa Business College and became sales manager at Holtsinger Motor Co. In 1955 he joined his father, Rubel, in the family furniture business, Friday and Larmons’ of Ybor City, which later became Larmon Furniture. In 1966, Curtis Larmon purchased the store when his father retired. By 1978, he had expanded the store three times to its current 20,000 square feet. Dating to 1931, it is said to be Tampa’s oldest family-owned furniture store. Larmon retired in 1992 and sold the store to Jimmy and Elizabeth Larmon Kalamaras and Cheryl Larmon Smith, who are his son-in-law and daughters. In 2007, the third generation of owners added a second location in nearby Town ’n Country. Larmon was active in a number of organizations including the Salvation Army Advisory Board, the Ybor City Redevelopment Corp. board and the Barrio Latino Commission. He was a past president of the Florida Furniture Dealers Assn. and was a member of the Downtown Rotary Club and the board of the Tampa Merchants Assn. He is survived by his wife, his daughters and son-in-law, a brother and sister-in-law and five grandchildren. Donations in his memory may be made to the Hyde Park United Methodist Church Sparrow Fund, to LifePath Hospice, 12973 North Telecom Parkway, Suite 100, Temple Terrace, Fla. 33637, or to the Parkinson Research Foundation Center of Excellence at the University of South Florida.

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Cus tome r Wish rd

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Agio is a registered trademark of Agio International Company, Ltd. *Furniture Today, December 7, 2009.

PFP CUSTOMERS SAY IT BEST! STACKS FURNITURE OUTLET “They (PFP) did an outstanding job, and did everything that they were contracted to do and then exceeded that. Our sales were far better than we budgeted. ...their integrity is second to none. I would highly recommend PFP....” Richie Carter, CFO, Stack’s Furniture Outlet, Pelham (Birmingham), AL

FARMHOUSE “They more than met our expectations. We are very hard to please, and they were outstanding in every way. We were very happy with everything, and we would definitely recommend them to anyone. “ Suzanne Stubbs, Farmhouse, Glenwood Springs, CO

GRAFFIS FURNITURE “They sent the sales manager who.. was absolutely spectacular. The people he brought in to aid with the sale were also spectacular. I could not be more pleased. We exceeded what we had expected as far as monetary gains. There were no high spots, low spots…it was just a very smooth, consistent process. I would definitely recommend PFP. “ Tom Vander-Hayden, Graffis Furniture, South Bend, IN

KAY FURNITURE COMPANY “I can honestly say that in the end I have no complaints… The planning and execution was incredible. Brandon and the PFP staff exceeded my expectations by delivering everything they promised, THE BOTTOM LINE!”

FURNITURE |TODAY

OCTOBER 29, 2012

Average price online up 8% According to Grey Suit Retail’s portfolio of online retailers in the third quarter of 2012, the average purchase price per transaction was up 8% from the previous quarter. Consumers spent an average of $709 per online transaction in the third quarter, compared with $655 in the second quarter. In August of this year, consumers spent an average of $677 per furniture transaction; that’s an increase of almost 40% since August of last year, when buyers spent an average of $485. The average purchase price in September was $717, almost a 1% increase from the same time a year ago; and nearly a 6% increase from the previous month. Fabric and leather upholstery, including stationary sofas, motion sofas, recliners, sectionals, loveseats, chairs and ottomans, accounted for 40% of online sales; while occasional tables accounted for the next biggest chunk of the pie at 16% of furniture site sales in the last quarter.

Online sales by category

% of furniture site sales, third quarter 2012 Bedding Casual 11% dining Leather 10% upholstery* 14% 9% Entertainment furniture Occasional tables 16%

7% Master bedroom

Fabric upholstery* 26%

Frank Thomas, Kay Furniture Company, President, Kansas City, MO

5% Youth bedroom 2% Decorative accessories

*Includes stationary sofas, motion sofas, recliners, sectionals, loveseats, chairs and ottomans

LAM LEE HOME COLLECTION “They did a good job in allowing us to get out of the building and the inventory clean with money. We thought it was a good marriage between two companies trying to take care of business. I would recommend them to anybody….”

Average purchase price online, per transaction

John Reinhart, Lam Lee Home Collection, Merchandise Manager, Dallas, TX

Listen to our clients on our website and hear what they have to say about PFP. Visit www.PFpromotions.com to learn more.

April May June July August September

2011 $675 $620 $583 $620 $485 $711

2012 $701 $625 $638 $734 $677 $717

% change 3.9% 0.8% 9.4% 18.4% 39.6% 0.8%

Source: Grey Suit Retail

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About the data Retailers sell stuff. That’s it. That’s all they do. Grey Suit Retail is the furniture industry’s only SaaS platform that fully integrates a website, ecommerce shopping cart, email marketing, traditional marketing, blogging and analytics in one simple yet powerful tool that gives you complete control of your online strategy. Go to www. greysuitretail.com to see how everything we do is designed to help you sell more stuff, keep more customers and make more money. eIntent is a regular feature analyzing online furniture website data by Furniture/Today’s research department. Ideas for future reports can be shared with Dana French at dfrench@furnituretoday.com.

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OCTOBER 29, 2012

Rug News

Loloi introduces new logo, tagline, branding campaign HIGH POINT — Area rug source Loloi used the High Point Market to introduce a new logo and a new branding campaign, which it says

underscores the company’s ingenuity. The campaign and logo have the tagline, “A Pattern of Distinction.”

“A Pattern of Distinction has a clever double meaning that represents us well,” said Cyrus Loloi, executive marketing director. “Our patterns

on individual rugs are original and distinctive, but over time, we’ve also developed a pattern of introducing distinctive rugs and maintaining

Loloi has developed a new logo and tagline for its branding campaign. solid business practices.” The new logo features a stylized “L,” which he says subtly conveys the idea of a thread. According to Loloi, this imagery represents the material and techniques used in creating the company’s unique rugs. While the company’s full name, Loloi Rugs, was included on the previous logo, “Rugs” will be absent from the new version. “Loloi has plans in the very near future to expand into pillows, throws and other home furnishings,” said Loloi. “We wanted our new logo to be reflective of our plans to move forward.” The new brand identity will be included in all of Loloi’s future products and applied to all of its branding and marketing communications.

4 High Point showrooms win awards

FEIZYRUGS

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HIGH POINT

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LAS VEGAS

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HIGH POINT — Surya, Bernhardt and Four Hands took the top honors for excellence in High Point Market showroom design this month. Surya won the Fashion Focus Award, a new award this year, for its display featuring a couture dress in Surya’s fabrics. The runner up for the award was Elaine Smith. Bernhardt received the Best of Market Award in the Design Competition, as determined by a jury of industry editors. Runners up for Best of Market were Miles Talbott and Standard Furniture. For the People’s Choice Award, marketgoers were invited to vote for their favorite showroom design via Twitter or text messaging. For the fourth time in a row, it went to Four Hands. Runners up in included Universal and Wesley Hall.

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OCTOBER 29 2012

Rug News

Surya reps win $25,000 prizes in sales growth competition HIGH POINT — Surya presented awards to four sales representative organizations at the recent High Point Market, and not just your standard plaques or fountain pens — each winner received $25,000. More than 60 sales reps have been competing for a total of $100,000 in cash prizes from the manufacturer of area rugs and home accessories. As part of the contest, they were challenged to open new accounts, grow existing accounts and grow their territories.

Surya sales representatives holding their checks for four $25,000 prizes given in a sales contest are, back row, Tommy Roach, left, Lynde Worley, Jodie Woolard, Eric Dumas, Jeff Hagedorn, Kevin Von De Bur, Mandi McDonald and Jim Govola, and front row, Jane Reed and Whitney Frazier.

The winners are: X The Woolard Group, covering the Carolinas and southern Virginia, retail, recognized for adding the most retailers and positioning them to succeed in accessories sales. X Jeff Hagedorn, covering Alabama, Florida, Mississippi, Louisiana and Tennessee, retail, recognized for driving the most growth for his existing customers by continually placing the most relevant Surya tools and products in their stores. X Jim Govola, covering western Pennsylvania, Ohio and West Virginia, retail, recognized for leveraging Surya solutions to improve the performance of Surya dealers, resulting in highest overall territory growth. X Jane Reed, covering the Dakotas, Wisconsin and Minnesota, design, recognized for best representing the Surya brand by following all elements of the Surya sales program. “At Surya, we believe that treating our employees well translates into positive interactions that really ’wow’ our customers,” said company President Satya Tiwari. “We focus on engaging our employees, including sales reps, so that they feel good about being a meaningful part of the Surya brand. This friendly contest is a reflection of the special things we do to make our sales reps know how much we value them. We congratulate these reps on their outstanding service to Surya and to our customers.”

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10/25/2012 4:07:21 PM

FURNITURE |TODAY

www.furnituretoday.com

OCTOBER 29, 2012

Industry News

3 leaders join Hall of Fame By Clint Engel HIGH POINT — Industr y leaders Howard Haas, Kevin O’Connor and Melvyn Wolff

were inducted into the American Furniture Hall of Fame during a High Point Market banquet. They join 88 members pre-

American Furniture Hall of Fame new inductees Howard Haas, left, former Sealy CEO, Kevin O’Connor of Samson Marketing and Melvyn Wolff of Star Furniture, Houston, stand at the Wall of Fame honoring Hall members in High Point’s Furniture Plaza. Bricks bearing their names were installed in the sidewalk in front of the building.

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viously inducted into the hall, which recognizes individuals whose outstanding achievements have contributed to the continued growth and development of the U.S. furniture industry. “Every person on the slate this year is worthy so the selection process was particularly competitive,” said Randy Ford, president of the American Furniture Hall of Fame Foundation. He added, “Each new member truly represents enduring excellence, superior accomplishments, innovation and creativity, and philanthropic generosity in their time, talents and resources.” Haas was president and CEO of Sealy for 19 years and in that time, increased revenues from $32 million to $550 million without the acquisition of a competitor or supplier. He integrated a group of 34 independent licensees into a unified entity, achieving new efficiencies and consistency across factories in production and service. O’Connor worked his way up from sales representative to president of two furniture companies before launching Legacy Classic Furniture in 1999. Partnering with Samuel Kuo of Samson Holding, he developed a business model that enables customers to mix a variety of products on a direct-container basis, allowing independent retailers to affordably source smaller quantities of imported products. Today he is president and CEO of Samson Marketing, which includes Legacy and Universal Furniture. Wolff, chairman of Houston-based Star Furniture, is credited with transforming a small credit-oriented, low-end store into one of the country’s most successful retail furniture operations. In 1997 he sold his company to Berkshire Hathaway. Star has 750 employees in four cities and is celebrating its 100th anniversary. Other candidates for this year’s Hall of Fame, designated Industry Fellows, were designer Jena Hall, Best Home Furnishings founder Clement M. Lange Jr., and Thomas E. Wright, co-founder and former chairman of Wright of Thomasville.

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10/3/12 3:26:41 PM

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OCTOBER 29, 2012

People Today

Padjen to lead global sales at Klaussner ASHEBORO, N.C. — Upholstery and case goods resource Klaussner Home Furnishings has named industry veteran Mike Padjen vice president of international sales. The position has been held by Bones O’Briant, a 26-year Klaussner employee who is

retiring in F e b r u a r y. O’Briant also serves as a regional vice president of sales for the Padjen c o m p a n y, overseeing sales activity in

the Northeast as well as states including Tennessee and Virginia. Padjen most recently was director of the North Carolina Furniture Export Office, a division of the state’s Department of Commerce. Earlier, he held operations executive posts at

....Come and

American of Martinsville and La-Z-Boy Global, and also worked for American Drew, Wellborn Forest Products, cabinet manufacturer Merillat Inds and Coffman Stair Co. At Klaussner, he reports to Brandunn Rush, vice president of sales.

Discover

Best Sellers in High Point

People On The Move Executives Furniture Brands International ST. LOUIS — Furniture Brands International has named Ken Salm vice president of business operations for its contract division, a new position. Salm, who has held sales and management positions at La-Z-Boy, Brown Jordan, Douglas Furniture and Sealy, most recently co-owned a company that specialized in contract furniture. In his new role, he will be responsible for leading the contract division’s business operations and sales staff. He reports to Mark Wiltshire, president of the special markets division of FBI. Ultra Shield SOMERSET, Ky. — Alexandra Lewis has been promoted to national training manager at fabric protection supplier Ultra Shield Furniture Care, a new position for the company. L e w i s Lewis joined Ultra Shield in January and has been a regional marketing representative. Company President Thomas Clinton said Lewis has become instrumental in expanding Ultra Shield’s current training material with her extensive program and product knowledge. In her new position, she will be responsible for educating customers on product and program knowledge to assist in enhancing program profitability for retailers.

Los Angeles Office Ī San Francisco Office Ī High Point Showroom Ī Las Vegas Showroom Tianjin, China Ī Surabaya, Indonesia

Retailers, manufacturers, suppliers and trade associations are invited to send releases and photographs for appointments, promotions and awards to: People/Today, 7025 Albert Pick Rd., Suite 200, Greensboro, N.C. 27409. Releases also can be faxed to (336) 605-1143 or e-mailed to jmcintosh@furnituretoday.com. Please include a phone number.

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10/24/2012 4:53:52 PM

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OCTOBER 29, 2012

People Today Largo International HOUSTON — Largo International has hired Pam BradyProesch as merchandise manager for upholstery. BradyProesch has worked for Brady-Proesch Jackson/Catnapper as director of merchandising. Profitablility Consulting Group HILLSBOROUGH, N.C. — Industry veteran Taylor Ganz has joined Profitability Consulting Group as vice president, finance, planning and restructuring for the company’s retail clients. Ganz also is handling client services including organizational development, customer service and Ganz employee recruitment. With nearly 25 years of industry experience, Ganz was chief operating officer of the former 25-store Los Angelesbased McMahan’s Furniture from 1988 to 2010, and has sat on the boards of both the National Home Furnishings Assn. and Western Home Furnishings Assn. Most recently, he operated the consulting firm JTG Advisors.

Marketing/Sales Butler Specialty CHICAGO — Accent source Butler Specialty has named Charlie Lehman executive vice president of marketing and communications. Lehman’s responsibilities in the newly created position include brand building, marketing Lehman and communications. He will also be involved in product development. He reports to CEO David Bergman. Lehman has directed marketing campaigns for more than two decades from offices

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in High Point and Chicago and is a past president of marketing firm McNeill Lehman, an agency he co-founded in 1988. Butler Specialty is based in Chicago. Wright Global Graphic Solutions THOMASVILLE, N.C. — Bedding veteran Cindy Williams has joined Wright Global Graphic Solutions as vice president of sales for the company’s

Showroom Solutions division, a new position. She will lead the company’s efforts in that division and will focus on retail point-of-purchase materials and in-store graphics. Williams started her career in 1991 at Simmons, heading the specialty sleep division. She was then was vice president of client services at Info Retail, a strategy and design agency.

After leaving Info Retail, Williams briefly served as the senior vice president of marketing at Comfort Solutions. RedPrairie ATLANTA — Gary Conway has been named executive vice president and chief marketing officer of RedPrairie, a global supply chain and retail technology provider. Conway most recently was executive vice president and

chief marketing officer at Progress Software, a global enterprise software company, and also has worked as a marketing executive for Sprint Nextel and PeopleSoft. At RedPrairie, he is responsible for global marketing strategy, including corporate brand management, customer engagement, product strategy and marketing and demand generation. Conway reports to CEO Michael Mayoras.

50th Anniversary

Dear Tony, On this, your 50th Anniversary of Temple Furniture, we extend to you our congratulations for reaching this remarkable milestone. During good times and challenging times – you have done a superb job guiding our company! Your national rep team wanted you to know how much we appreciate you and the entire Parker Family. You have our deepest thanks for all that you have done to help us be successful with Temple. It is truly a pleasure to be in association with you and Temple! Let’s do it for another 50 years! Sincerely, The Reps of Temple Furniture Steve Baldwin – New England – Since 1986 Dale Biehler – MD, VA, Del – Since 1983 Donald Cox – SC, Western NC – Since 1987 Paul Fowler – OH, IN, KY – Since 1987 Richard & Betty Gerardi – Middle East/Asia Irv Gleitman – NYC, NJ – Since 1982 Barry Gleitman – FL – Since 2011 Irwin Harris – Western PA – Since 2004 Tom Houston – MO, IA, KS, NE – Since 2001 Jim Lutz – Eastern NC – Since 1993

Rick Lindsey – Upstate NY – Since 2011 Steve McGuirk – MI, Ontario – Since 2003 Tom Murphy – LA, MS – Since 2005 Al Newlin – Eastern PA – Since 1995 David Ojeda – CA – Since 2009 Nick Pollard – TN, AL – Since 1999 Phil Simon – HI, MN, ND, SD, MB – Since 2012 Riley Swinehart – WI, IL – Since 2002 Tarbee Wright – GA, NC – Since 1993 Tom Zilligan – AZ, NM – Since 2010

PO Box 185 – Maiden, NC 28650 s 828 428-8031 www.templefurniture.com

10/24/2012 4:02:27 PM

FURNITURE |TODAY

OCTOBER 29, 2012

High Point Highlights

Case goods, accents mix well By Thomas Russell HIGH POINT — Case goods resources received high marks for their ability to mix bedroom and dining room with accent furniture and upholstery at market, in a way that helped sell new product and gave dealers ideas on how to mix the categories on their floors. Drexel Heritage had one of the more dramatic examples in inline groups and intros such as Viage, whose bedroom and formal dining pieces were shown with accent furniture and upholstery. Viage also was shown in three settings that highlight a host of traditional European design influences and also incorporate California West Coast, Tuscan, mountain lodge and Southwest looks. The company said dealers liked the eclectic mix of styles in products ranging from panel beds with leather inset panels to a European farmhouse style leg table shown with various chairs and an upholstered bench. Also attracting interest was Drexel’s range of 50 wood and paint finishes. One customer reportedly disliked a wood panel bed she saw in one finish, but committed to it in a different finish and with a leather panel. “It’s a different kind of presentation and a different kind of selling,” said Chip Stewart, vice president of sales. Kincaid Furniture reported it did well with European Villa, an 18-SKU solid alder bedroom with Louis Philippe and Old World de-

Magnussen’s Muirfield bedroom was popular with retailers at market. Featuring camelback curves on the headboard and footboard, this panel bed in pine veneers and solids comes in a distressed pine finish.

Drexel Heritage saw strong dealer interest in Viage, which combines European, West Coast, mountain lodge and Southwest design influences. sign influences. With four-piece bedrooms retailing at $4,500, the collection has three beds and options including eight hardware styles and three finishes. Point of purchase materials showcased the options available. They can also be viewed on a computer kiosk available for Kincaid Shoppe galleries. Emerald Home Furnishings had its best market in recent years thanks to the expansion of its case goods lineup with five new collections, officials said. Dealers liked the mix of Rustic Americana, Old World European, American traditional and contemporary/transitional design influences of the groups. “We have never had a show with so many placements on every group,” said company President David Beckmann. Caracole, which had its largest contemporary wood product

offering since the launch of the brand in 2009, also received strong response to its 71 new wood pieces, which were seen alongside upholstery and accent pieces. Dealers also liked various mixed media elements, including white bone inlays, brushed silver and black metals, white glass, stacked glass and clear Lucite. Companies such as Broyhill, Bernhardt and Magnussen Home also showcased sofas and chairs near bedroom settings, reflecting the growing placement of such pieces in today’s spacious master bedrooms. The strong reaction to the displays occurred despite some mixed reviews on traffic. While some sources reported increases, a number said their traffic was down in the double digits. Magnussen, for example saw a 15% drop in traffic compared with last October, according to CEO

Richard Magnussen. However, he said written orders were up 49%. “I think the team did a great job presenting product that will retail,” he said. The new groups include four-piece master bedrooms targeted to retail from $1,499 to $1,699. “We were very pleased. This is one of the best batting averages we have seen at market.” Folio 21, which launched 12 new bedrooms retailing mostly from $1,099 to $1,999 for four pieces and four new dining rooms priced from $899 to $1,299 for five-piece sets, also reported a high batting average. Seven of its bedrooms and three of the four dining rooms are already in production, said Sean Slack, executive vice president of merchandising. He said dealers liked the scale of the groups as well as the price points and quality of the finishes. At the high end, companies including E.J. Victor, MaitlandSmith and Henredon also received good response at market. Dealers liked the mid-century modern design of Henredon’s Montaigne, which features an industrial-inspired double pedestal dining table made with

cerused oak veneers, retailing around $8,000, and an upholstered leather bed that retails around $9,800. The company also received strong response to contemporary and European traditional-influenced additions to its Acquisitions line, including a platform bed made with a solid quartered walnut base, targeted to retail at $8,000. Companies with licensed collections also reported strong levels of commitments and orders, including American Drew with its new Jessica McClintock collection, Boutique, and Lexington Home Brands, which showcased its new Tommy Bahama indoor collection Ivory Key as well as its new outdoor line, Tommy Bahama Outdoor Living. Dealers liked many aspects of Ivory Key, ranging from the white finish to the combination of Moroccan and Chippendale motifs and mixed media elements such as raffia inset panels on headboards and drawer fronts, officials said. They also responded well to the outdoor lineup, which includes 160 SKUs of seating, sectionals, outdoor dining, bistro tables, bars and fire pits spread over seven lifestyle collections.

Versatile new products do well in youth bedroom By Thomas Russell HIGH POINT — Youth bedroom resources at the October market had success with versatile new groups suitable for youth as well as second and guest bedrooms. They also impressed dealers with revamped showroom displays highlighting the depth of their lines. Coaster redesigned its youth area this market to showcase new and existing bedrooms alongside a greater variety of accent pieces such as desks, storage cubes and bookshelves. The showcase allowed dealers to see how various pieces can work in room settings. Standard Furniture’s new

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Powell did well with its Dune Buggy bed, which retails around $550 and has companion storage pieces. Pure Imagination showroom area offered an expansive youth lineup including seven new bedrooms, said Todd Ev-

ans, president. Within that presentation was a host of styles ranging from glitzy contemporary headboards with beveled

glass insets, to metal canopy beds with traditional scroll details and shown in three finishes. The space also showcased a number of new and bestselling desks, storage cubes and bed benches. Even AICO, known for its opulent master bedroom, had a new youth area called Hollywood Kids. This 18-piece collection is a new category that mimics styles seen in its Michael Amini and Jane Seymour licensed line, Hollywood Swank. Dealers liked the display and the mix of SKUS, which include boys and girls upholstered beds with tufted headboards accented with crystals and high-

end upholstered vinyl, similar to material used in high-end purses. “The first customer that saw it bought a container of it, and people that did well with Hollywood Swank are also considering it,” said Chuck Reilly, AICO senior vice president of sales and marketing. “Our handle on it is that it’s not just a youth thing, but youth and beyond, and everyone understands that handle.” SLF received strong dealer response to its rebranded youth program, RoomGear. Dealers liked the range of styles and product along with innovative features such as optional steps

see Youth, p24

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OCTOBER 29, 2012

High Point Highlights

Options, snazzy displays impress upholstery buyers By Cindy W. Hodnett HIGH POINT — The name of the game for upholstery manufacturers is customer service, and the axiom was represented at the High Point Market with expanded product options, creative showroom displays and quick delivery. “Our retailers come to us for ideas about how they can show their products, and many times, they display it just like we show it at market,” said Reyna Moore, vice president of marketing and merchandising for Norwalk Furniture. “We also provide them with fabric samples they can take with them so that when they are out at other showrooms, they can immediately coordinate the products with their fabric selections.” Ashley Furniture’s nine pieces for $999 retail program provides a variety of art and accessory items to complement the furniture package. According to Kerry Lebensburger, president of sales and marketing for Ashley, the all-in-one package makes it easier for stores to increase sales. “This is the perfect way for retailers to sell more add-on pieces,” he said “And the execution in the store makes or breaks the experience for the consumer.” Rowe Fine Furniture introduced 72 upholstery SKUs at the market and offers more than 1,000 fabrics and leathers. To showcase the possible options, Rowe featured a chair gallery at its new High Point showroom where different chair styles are displayed side-by-side and covered in the same neutral fabric. Davis Direct introduced 25 new upholstery groups. Lee Scott, vice president of sales, said showroom traffic and sales were positively affected by the company’s flexible upholstery program. “We’ll put any fabric on any frame,” Scott said. “We decided that it isn’t very smart to give any customer a reason to say no.” Lazar Inds. also reported a strong market. “Traffic for us was very steady throughout the

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market, and our numbers now indicate that we will double our sales this market over our best written market in seven years,” said Robert Luce, president of Lazar. “The response to our new showroom and products was nothing short of amazing.” Mike Delgatti, executive vice president of corporate sales for Hooker Furniture, said attendance and orders were up over last year for upholstery divisions Sam Moore and Bradington-Young. “Dealers seemed to respond best to fresh styling and to fresh colors in both fabric and leather,” Delgatti said. “Big hits for Sam Moore were recliners and the expanded sofa program. Big hits for Bradington-Young were the new swivel glider recliner program and the new transitional/contemporary designs in stationary.” At Thomasville Furniture, the new Concord and Saranac upholstery collections at upper middle price points offer flexibility, said President Ed Teplitz. “Concord and Saranac expand our offerings in casual lifestyle and offer the retailer an opportunity to sell a variety of configurations with a single floor placement,” he said. One prevalent trend in upholstery showrooms was the increasing number of product options offered by manufacturers in response to consumer demand for custom choices. For many, the standard industry phase of “as shown” has become passé. Emerald Home Furnishings introduced 35 upholstery styles at market, including chairs, recliners, motion, sectional and family room, according to Jeff Katz, vice president of upholstery. “We are very grateful to have had many very positive responses at the market to our new upholstery offerings,” Katz said. “Fashion, style and value were among the most frequent words that both new and existing customers used to describe

Luonto’s accent chair in green illustrates one of the market’s dominant trends of providing retailers with a variety of color options. the line, and we are pleased and thankful that our customers continue to look to us for great product.” Best Home Furnishings’ new YOLO (You Only Live Once) line of chairs, benches and stationary groups targeted Gen Y consumers with contemporary fabrics and affordable price points. “We took our collection of retro-inspired, contemporary items and paired them with new fabrics,” said Eric Vollmer, advertising director. “They retail between $300 and $400, ship to dealers in five days, and they are designed to appeal to teens, college students and young adults.” Decor-Rest Furniture offered the new You-nique program. Designed to provide options in finish, fabric and silhouette, it incorporates 350 fabrics, 120 frames with choices in seat density, 30 ottomans and nine headboards.

A winner in the C.R. Laine showroom was the Laney sofa in Tisket Pear contrasted with strong black-and-white accent pillows. “This gives retailers a savvy tracted attention. “More than 90% of the buyconcept that renders the competitive edge they need,” said ers we saw placed orders,” he Angelo Marzilli Jr., vice presi- said, adding, “I think the market needs more product made dent. Flexsteel offered more than in America. Even the interna1,800 fabric choices here, in- tional customers coming in are cluding a new line from Robert asking for it.” Massoud Furniture’s CEO, Allen created exclusively for the company. Flexsteel also added Chuck Massoud, said the coma modular component to its pany’s traffic increased substansectional line, offering retailers tially for this year’s fall market. He added that he hopes manexpanded display options. “You can come up with any ufacturers will redefine their configuration and get smaller business strategies to address sectionals on the floor,” said changes in the industry. “We have had more than a Justin Mills, director of advertising and public relations. That decade of deflation and price way, he said, retailers “don’t point obsession amongst the need monster-sized vignettes to majority of our industry while continuing to lose consumers’ show the product.” Dellarobbia’s president, Da- disposable income to other invid Soonlan, said that activity dustries,” Massoud said. “At some point, we need to in his showroom pointed to a understand price is not our issue renewed sense of optimism. “Every dealer that showed at the low, middle and high end up was purchasing,” Soonlan and return our focus to product said. “And they are buying so the consumer will stop saycolor. I think the recession is ing all of the stores that they over and everyone is ready to visit look alike and are boring. get their mind out of a recession Our No. 1 goal at Massoud is to continue to help our customers mentality.” At Southern Seating, part- achieve a fashionable look that ner Virgil Henry said that the differentiates them from their “Made in America” decal on competition without sacrificing his showroom window at- quality.”

In Retrospect by Caracole is a vintage-inspired sofa with contrasting trim and muted pops of color through accessory pillows.

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FURNITURE |TODAY

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OCTOBER 29, 2012

High Point Highlights

Occasional sources score with color, scale options By Heath E. Combs HIGH POINT — Occasional and accent sources reported good markets, even if smaller stores appeared to be absent this time. In style — whether it was a side or cocktail with abstract modern design influences, subtle bling or reptiling, industrialinfluenced cocktail tables or painted burnished gold trim on a chocolaty brown tone — the two categories continued converging a little more this market, regardless of price point. Primary and tertiary colors were hot. Some occasional sources also reported success by getting small with slim sofa tables, while chair-side tables also gained steam. Nitin Soni, vice president of international operations at Jaipur Home, said popular items at market included pieces with dull-luster aluminum sheeting, sophisticated metal and leather trunk looks, and olive gray and whitewash finishes. “It’s a hot line and a good value. And we deliver the goods on time. We’re a family business and that goes a long way. This is one of the best markets we’ve had,” Soni said. Color was a big story. At Sarreid, customers liked built-

BDI’s Bink side table comes in five colors and is a versatile solution as a movable, chair-side work surface for iPads and laptop computers.

up finishes with primary and secondary paint applications for a worn look on the Italianmade Rhapsody collection, said Francel Goude, a design and marketing official. The group has 13 base colors that can be applied to 100 forms, many of them European in origin. In occasional, Joff Roy, president of Jofran, said popular looks today are taking design cues from accent pieces with touches like wire-brushing to roasted oak colors, or chunky planking in solid acacia. “We’re a whole home lifestyle resource,” he said. “Why should we limit ourselves when today’s consumers seem to be

more interested in a more eclectic way of decorating?” Jofran’s accent chair program — with high density foam, Pirelli webbing, Dacron wrapping, fully reversible cushion, hardwood legs and features like pillowed button tufting and nail head trim — was also lauded for fashion forward colors and looks, Roy said. At Klaussner, officials said they’re seeing fewer “off-theshelf” looks in the occasional marketplace. Pieces the company showed at market had hammered copper, rustic styling and accents-like bolts. But it also offered three packs with detailed antique tops and metal iron looks. Browns still dominate in wood finishes, but subtle gray tones under those browns are increasingly important. “The new finish is that hint of gray. You’ve got to make that understandable to the masses,” said Geoff Beaston, senior vice president of case goods at Klaussner. Theodore Alexander had good response to accent pieces with high-sheen lacquered looks, like the No. 6105-464 cabinet with golden autumnal

X Youth from p20 on the front of various bunk beds. They also liked the ability to mix the three groups, which offer twin beds priced at $399 retail and dressers and chests at $499. “Buyers are purchasing it across the board,” said Lee Boone, SLF president. “It’s a program and an advantageous program if you buy more than one set.” Najarian reported strong dealer response to new youth collections, including its Paris girls group, featuring a panel bed with a tufted vinyl headboard with faux crystal accents and a low poster panel bed featuring an acrylic reflective panel. Three-piece sets retail from $1,199 to $1,399. Dealers were drawn to the styling, the

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Standard showed a wide range of new and inline youth furniture in an area of its showroom called Pure Imagination. pearlescent finish and other features such as reversible panels on drawer fronts. The company also did well with a new girl’s group called Marseilles that has edgy and “sophisticated urban” design elements including a multicolored headboard and companion case pieces.

“They thought we are different and unique,” said Michael Lawrence, vice president of sales. “They feel like it will freshen up their youth assortment.” Novelty youth items also performed well at resources such as Najarian and at Powell, which saw strong dealer interest on sports-themed pieces.

This red bombe from Sarreid’s Rhapsody collection shows a familiar silhouette redone in a step-up shape, with built-up finish and intricate scrolling leaf hardware. leaf lacquer, stainless steel and gilt leaf accents, and a sycamore interior with LED lighting. The company also emphasized modern, as with its London SW3 collection, named after a British postal code. Pieces have a mid-century modern influence, etched brass panels, figured anigre and mahogany veneers. “We have always been a design driven company and certainly we’re designing for the current trends that exist while remaining true to our classical form,” said Russell Towner, president. Theodore Alexander’s contemporary Keno Brothers line received good reaction to accents with anthropomorphic shapes inspired by abstract painting, among others. Four Hands continued to emphasize reclaimed wood as consumers still go for ecofriendly looks, said Anna Ogden, senior buyer. Also well received were its Shadowbox occasional pieces with an industrial feel and glass box on top of a base. At Coast to Coast Imports, CEO Andy Stein reported a good reaction to 40 new SKUs from India and 100 new ones from China. Dealers were seeking multifunctional looks with storage. They also liked new prints, industrial looks and hand-stamped brass sheeting on pieces like the two-door No. 46812 cabinet. Halo Styles reported good reaction to a marble-wrapped kitchen island on a reclaimed wood base. Other winners were accent pieces or chairs in spitfire steel or with the steel attached to some part of the piece. “We’re getting a nice blend really for the designer, who can

mix periods from modern to classic, provincial and Art Deco, with color and leather into the mix as well,” said Raoul Morren, style director for Halo. One of Sunny Designs’ best occasional tables was an addition to its more than two-decades-old Sedona collection, said Annabelle Go-Eisler, marketing director. The Sedona 42by-42-inch square is a half-lift top, half two-drawer storage cocktail with casters, stone inserts, hefty oak styling and light Mission influence. Go-Eisler said the rustic look of the finish is still hard for others to match. Small occasional tables, designed to be slid up to chairs to create a work surface, appeared to be growing in popularity as a solution for consumers using media tablets devices. BDI officials said retailers liked its Bink media tables, made from powder-coated aluminum and available in five colors that the company plans to rotate with fashion trends. Lacquer Craft USA had good response to sliding stands with clean contemporary lines in its Metropolitan Home collection, in zebrano veneers and quarter sawn white oak, said Darren York, vice president of merchandising. “I think it’s really multifunctional with more of an eclectic feel. The consumer is looking for something fresh that fits their budget,” York said. Steve Silver introduced about 40 occasional groups here with several three-packs of tables. Gil Sturtzel, director of merchandising and product development, said that the company did well with cedar-lined trunks, reclaimed looks, mixed media pieces and pieces with storage and function.

10/24/2012 3:37:41 PM

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10/10/12 9:25:26 AM

FURNITURE |TODAY

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OCTOBER 29, 2012

High Point Highlights

The all-leather Roswell sofa from Leather Italia can hit retail price points of $1,199 to $1,499.

Lower prices help sell leather upholstery By Larry Thomas HIGH POINT — Hoping to recapture market share from products using bonded leather or faux leather covers, many leather upholstery resources focused on sofas with allleather covers at market as they touted the benefits of topgrain leather. Executives said many tanneries — particularly those in China — have been aggressively reducing prices in recent months, and that has helped narrow the cost gap between sofas with genuine leather and leather-like covers. All-leather sofas with retail price points of $1,099 and $1,699 — rarities as recently as a year ago — were widely available at market, and a few broke the $1,000 barrier. With bonded leather and faux leather sofas typically hitting $799 to $999, executives of many leather upholstery resources believe the perceived value of leather will convince consumers to step up to the genuine article. “It’s exciting that we now have the opportunity to offer the dealer better values in better leathers,” said Lee Fautsch, vice president of residential furniture sales at Flexsteel. “This is true in both motion

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and stationary.” Flexsteel, Klaussner and Era Nouveau were among the vendors that did well at market with leather sofas at $1,699 and $1,899, while companies such as Leather Italia and Premier Leather Klaussner reported success at price points of $1,199 to $1,399. “We feel like the consumer who will spend money on topgrain leather will spend a little more to get what they want,” said Nathan Munton, chief sales officer at Era Nouveau. In many cases, producers were able to hit the lower price points by using less expensive split-grain leather on the back and sides, but executives said they believe such all-leather products still represent a better value than lower-priced models with matching bonded leather or vinyl in those areas. Plus, they said the renewed interest in all-leather should help retailers boost sales per square foot and give consumers a better product — the same benefits that have long been touted by resources that specialize in higher-end goods that have always used allleather covers. “For us, it’s about fashion and design,” said J.T.

Premiere Leather’s newest all-leather stationary sofa, which comes with a matching chair and correlating accent chair, retails for $1,099 to $1,799 depending on the grade of leather. O’Rourke, national sales manager at upper-end producer W. Schillig. “We’re finding that, as the economy begins to improve slightly, retailers are more apt to look at a new frame and take a chance on one they wouldn’t have considered a couple of years ago. That’s encouraging.” O’Rourke and others said that lighter and brighter leather colors also sparked interest among retailers at market. Various shades of gray and blue were among t h e m o s t p o p u l a r, b u t brighter hues such as white and tangerine also grabbed

some attention. “Of course, brown is still what drives the business, but colors like teal, blue and gray are very strong,” said Mike Delgatti, president of Hooker Upholstery, which includes upper-end leather upholstery resource Bradington-Young. Delgatti said BradingtonYoung had success with a new lineup of swivel chairs and tub chairs, while another upperend resource, Chateau D’Ax, reported positive response to a pair of new power motion groups. “The market was a good one,” added Brad Cates, se-

nior vice president of Natuzzi’s high-end Natuzzi Italy line. “Our dealers weren’t looking for just a price point. It’s a program that conveys a lifestyle message.” Other market winners included a new sectional for the Urban Loft collection of smaller-scaled furniture at Elite Leather; a revamp of the popular Comfort Sleeper program at American Leather that includes a new proprietary mechanism; and the new City Living collection at Simon Li, which features smaller-scaled sofas that are 75 to 83 inches long.

10/24/2012 3:57:46 PM

FURNITURE |TODAY

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OCTOBER 29, 2012

High Point Highlights

Motion upholstery remains a proven seller By Larry Thomas HIGH POINT — Despite light to moderate showroom traffic, motion upholstery vendors wrapped up another successful market as buyers continued to capitalize on the category’s almost recession-proof popularity. Executives said most retailers were optimistic about business conditions, and appeared willing to break away from “safe” colors and styles to merchandise their floors. “During the past couple of years, nobody wanted to make a mistake. They couldn’t af-

ford to,” said Bruce Sinning, vice president of merchandising for motion upholstery at Klaussner. “But now, I think a lot of people are considering making major changes to their floor.” Sinning and other executives said that means buyers no longer choose various shades of brown for all of their top cover choices, and they’re looking for styles that are slightly less “commercial” (aka Bubba). Even plaids and stripes were shown on a few pieces — a rarity for motion furniture. Klaussner and La-Z-Boy

were among the vendors that added large splashes of color to their motion floor samples, and many of the new colors appeared to be well-received by buyers. “We can’t abandon the high-volume, mainstream looks … but there has to be some eye candy there, too,” said Mark Wagner, La-Z-Boy’s vice president of brand and retail marketing. Wagner said La-Z-Boy customers have been especially interested in fabrics and leathers in the blue and gray families, while officials at Lane and Palliser, among The Prime motion sofa from Lane includes a drop-down table with options such as Bluetooth and iPod docking stations and a USB port.

others, said lighter colors such as whites, yellows and reds also attracted considerable attention. “Color has always been a big part of our story in leather, and this market, we added 74 new fabrics as well,” said Cary Benson, president of sales at Palliser. “Since we’re not importing from Asia, our color selection has never been limited to just a few choices.” Benson said Palliser had success with a motion program that included six sofa frames at the same price, while one of La-Z-Boy’s biggest market hits was the addition of memory foam as an optional seat cushioning material in its recliners and sofa-sleeper mattresses. “Introducing these innovative upgrades and options to our La-Z-Boy recliners and mattresses helps take the comfort experience to a whole new level,” said Paula Hoyas, vice president of merchandising. Officials at Lane said they were pleased with the response to the expansion of its large-scale Comfort King line into motion furniture (it pre-

viously was limited to recliners), while chair resource Mac Motion Chairs had a winner with its new Comfort Chair line of contemporary reclining chairs and ottomans that retail for $399 to $499. “We hit it out of the park with everybody,” said Tony McCracken, vice president of sales at Mac Motion. Other popular market introductions included a motion sectional with four reclining seats at Parker House, a highend robotic massage chair at Cozzia and a new leather-like fabric called Leath-Aire at motion furniture powerhouse Man Wah. Steve Barr, president of Man Wah USA, said the new fabric was extremely well received because it has the look and feel of leather, but helps alleviate the confusion between bonded leather and genuine leather covers because the product is clearly marketed as a fabric. “Bonded leather wasn’t consumer-driven. It was driven by retailers looking for a lower price point,” said Barr. “I believe our product is consumer-driven.”

Sofa-sleepers add gel, memory foam to mattresses By Larry Thomas HIGH POINT — Upholstery producers are taking a cue from their mattress industry brethren by offering a variety of gel foam and memory foam mattresses in their newest sofa-sleepers. At least a half-dozen upholstery showrooms had such mattresses at market, hoping to take advantage of their surge in popularity in the bedding world. Upholstery executives say the success of Tempur-Pedic’s line of high-end memory foam mattresses and Serta’s iComfort line of gel-infused foam sleep sets give instant credibility to the new sleeper mattresses — not to mention a more comfortable night’s sleep. Plus, they say it allows retailers to boost their sales per square foot since the newest mattresses usually add $100 to $300 to the retail ticket. “Memory foam is a product that really resonates with consumers, and combined with our brand, it gives the

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A gel-infused mattress is part of Palliser’s new My Comfort sofa-sleeper program.

retailer a great opportunity to sell an upgraded product,” said Mark Wagner, vice president of brand and retail marketing at La-Z-Boy, which unveiled a memory foam sleeper mattress at market. Bruce Birnbach, president of American Leather, said his company’s decision to add a gel-infused foam model to its mattress offerings was an easy one, given its success with a high-end Tempur-Pedic sleeper mattress unveiled two years ago. “Gel is so popular in the bedding industry right now. It just made sense

to make it a part of our sleeper program,” said Birnbach. “We think we will do well with it.” American Leather introduced its gel mattress as part of the latest upgrade to its popular Comfort Sleeper program, which features a proprietary mechanism that allows for easy opening and closing, he said. Also jumping on the gel-infused bandwagon was Lane, which showed its iRest gel-infused memory foam sleeper mattress, and Palliser, which had a gel-infused foam mattress as part of its new high-end sofa-sleeper

program, My Comfort. For iRest, Lane took a marketing approach similar to what Serta does with iComfort — emphasizing the way gel helps cool the memory foam surface. “Gel has been huge in bedding and the consumer really understands what it can do,” said merchandise manager Bo Morrison. La-Z-Boy, meanwhile, focused on the comfort of its newest sleeper mattress. It features a quilted, ¾-inch layer of memory foam combined with a second, two-inch layer of memory foam over three inches of high-density foam. “This helps take the comfort experience to a whole new level,” Wagner said. Morrison agreed that comfort is crucial — even for a sleeper mattress. “At the end of the day, the consumer is going to ask herself if she can feel the bar underneath (the mattress). If she can’t, it’s a winner,” he said.

10/24/2012 3:57:49 PM

FURNITURE |TODAY

www.furnituretoday.com

OCTOBER 29, 2012

High Point Highlights

Better price points sit well with casual dining By Heath E. Combs HIGH POINT — Casual dining suppliers found room in their lines for better goods at the recent market here. Contemporary continued to grow in dining in a breadth of looks — among them architectural modern, urban and loft, Art Deco, Asian, industrial, mid-century modern, retro and postmodern. Nobody gave up on bread and butter promotional groups — sales of which are growing for companies like Lifestyle Enterprise — but better quality goods got more action in the $599 to $999 range at companies such as Steve Silver and Cramco. Dave Shock, Cramco’s national sales manager, said the company started to see more movement in the $599 to $799 price range and up to $999 for some groups. That has meant putting more look into the product and creating more interesting bases. “We’ve been in the contemporary chrome business for years but now we’ve added a lot of design to it to give the consumer a reason to get into it,” Shock said. Retailers liked contemporary sets with surfboard shapes, intricate steel bases and chrome accents, spring-loaded butterfly leaf storage and polyester tops that resemble lacquered looks. Contemporary looks also made their way into Cramco’s American-made castered dining — sometimes called motion dining — with black paint and neutral color seats proving popular this market, he said. Steve Silver added significantly to its dining offerings in the $799 to $999 range and retailers noticed. The company had 25 new groups at market with retailers responding to rustic pine looks, pieces with planing and light distressing, chunky Mission looks, tabletops with band-saw cut accents, wire-brushed looks, and blue stone and marble wrap tops. “We want items that retailers can make margin on,” said Steve Silver, president. “We’re not moving up. We’re adding price points.” Custom dining manufacturer Canadel continued to see a move toward contemporary,

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Norwalk had a good response to its Benton Collection, which is made of wood from barns built by German immigrants more than a century ago.

said Howard Cohen, director of sales. Its curvy Euro-contemporary and mid-century-inspired looks did well, as did a new thick box leg option. Canadel had good response to a new weathered gray finish with some chalky hangup. Retailers were also seeking out the company as the trend toward colorful designs gains steam, Cohen said. Norwalk got good response to its Benton Collection, made with reclaimed wood from barns built more than a century ago by German immigrants in Holmes County, Ohio. Tables have thick, lightly finished planked wood tops that still have original rotary saw cuts, using oak and other woods. Retail for a table is about $1,999, according to Reyna Moore, vice president of merchandising and marketing. Moore said retailers liked how the set was shown with Norwalk’s Moxie stool seats, which have storage options and velvet animal print fabric. “People are looking for pieces that you can scoot up to the dining table to use as a chair, put your feet up on or use it as a cocktail,” she said. Stanley drew attention with an intricate wood treatment on its Rustica dining group in two finishes, according to Kevin Bowman, senior vice president of sales. The table is made with sophisticated thick-cut, white mahogany solids and veneers, with circular back-saw cuts. It has a highly developed finish with wire brushing, planking,

chiseling, hatchet marks, exposed wood grains and lots of handwork. “It’s designed to be livable dining — luxurious, livable dining. In premium goods, that consumer doesn’t want to sacrifice sophistication in the dining room,” Bowman said. At Lifestyle Enterprise, casual dining has grown significantly, according to Derrick Ng, assistant vice president, particularly in the $199 to $599 retail arena. Popular features include faux marble wraps, pieces with light wire-brushed veneers, X-bases, matching tile inlay on seat backs and table tops, slight rub-through on metal, microfiber seating and scrollwork on certain pieces. Gat Creek President Gat Caperton said retailers liked the company’s Samuel dining table with architectural design influences and clean lines. At retail, Caperton said, light and pure browns and grays are getting more action, while browns with a reddish hue are slowing. Retailers visiting Intercon liked the La Rive wire-brushed, restored-look solid oak tables with rift and plain cut grains, the ability to extend to 104 inches, and 18th century French-influenced design, according to Sam Turpin, vice president of marketing and sales. A seven-piece group would retail for about $1,999, he said, adding that the look gives an updated feel to a wood that’s known for more traditional looks.

“I think the finish is so unique and the look is so high end and with that unique wire brushing and oak finish that this seems to have re-established itself as a possible 21st century oak,” Turpin said. Among other Intercon groups doing well were the Arlington two-tone traditional design in black and java or white and java, and mango dining, of which the company has about eight groups. Turpin said mango’s unique grain characteristics make it popular at price points in the $599 to $999 retail range for five-piece

groups. Jonathan Charles had good response the rollout of a custom dining program, which customers will be able to sell via the Internet or in stores, said Jonathan Sowter, CEO. Retailers will be able to get prompt delivery date and pricing through the program, he said. “We want to help our designers offer better service to their customers,” Sowter said. “If someone wants to pay for something in their house, why not get the exact dining table they want?”

Entertainment vendors By Heath E. Combs HIGH POINT — The home entertainment category continued to act like a chameleon at the High Point Market. What’s hot in sizing, finish or paint seems to adjust every other year or so. Those changes continue as consumers buy new televisions or move to less — or more — spacious homes. At the market here, taller entertainment walls saw an uptick at Riverside. Slimmer units got looks at BDI, while floating consoles drew attention at West Port Home. Twotone looks were hot at AP Inds. and white did well for Legends Furniture. BDI marketing specialist Dave Adams said the company

had success with the Sonda group, which hits a lower price point, at $999, than what the company usually offers, starting at around $1,499 for media units. The group features a micro-etched, fingerprint-resistant glass, natural walnut shelving and powder-coated black frame. BDI also saw movement here with 18-inch-deep profiles, which are four inches shallower than its home entertainments groups have been, but which is becoming a more common size as media components get thinner, Adams said. And he said the company’s Ola group, with a curved concave front, continues to sell. “They love the curved profile,” Adams said. “People are

10/24/2012 3:57:51 PM

FURNITURE |TODAY

www.furnituretoday.com

OCTOBER 29, 2012

High Point Highlights This 60-inch writing desk, which retails at $799, is part of Hooker Furniture’s South Park collection. It is in hardwood solids in a chocolate finish and maple veneers as seen on the desktop, and in the backpanel of the bookcase.

Home office adapts to space By Thomas Russell HIGH POINT — At the October market, home office resources continued to generate business in small footprints that don’t take up a lot of floor space, yet offer plenty of function for consumers. They also had success with new styles, new finishes and new construction elements that add value to inline groups. Clean-lined contemporary looks did particularly well at market in orders and commitments, partly due to efforts to appeal to younger and techsavvy consumers. Martin Home Furnishings received strong response to its Asian/Mission-inspired

Kyoto office, one of nine new groups. Retailers liked the clean lines of the group and the application of ash veneers over pieces such as a 54-inch writing desk, a short bookcase and room divider. Martin also was successful with its new Infinity office collection, a contemporary group featuring 48-inch writing desks, including one with a drop-down center drawer and one with a sliding top work surface and hidden storage. Retailing from $349 to $399, the desks impressed dealers with their contrasting white work surfaces and solid poplar legs in a chestnut finish. The units, which have companion mobile files and

bookcases, also offer functional elements such as builtin wire management. “People are happy to see such a focus on home office from us,” said Gil Martin, CEO, adding that the category seems to be regaining ground with retailers who realize they cut back on floor space too quickly in the category in the past four years. RTA specialists Z-Line Designs and Sauder also did well at market with smaller laptop-friendly desks. Most of Z-Line’s 25 new pieces were smaller footprints that include writing desks geared toward laptop use. Many new models come without keyboard trays, a shift that reflects consumers’ increasing use of laptops, as well as iPhones and iPads. “Technology is really driving home office,” said Morgan Sanzo, marketing representative, noting that half of the new items also have built-in USB ports and charging stations. These and other smaller scale pieces have contempo-

rary designs geared toward younger consumers. Large-scale pieces including executive desks performed well at resources such as Hooker Furniture, which had one of its strongest home office markets in two to three years, said Hank Long, senior vice president of merchandising and design. Among the most popular groups with executive desks were Westbury, which featured a 66-inch L-desk configuration and companion hutch retailing at $2,499, and Colonnade, which includes a $1,999 executive desk in a

These are among the new contemporary small scale desks offered at Z-Line Designs. Some of these and others in the line don’t have a pull-out keyboard drawer — a change the company made to better address the increasing use of iPads and iPhones.

dark cherry finish and featuring a leather top. Hooker’s transitional South Park group also did well with dealers who liked the contrasting chocolate hardwood frames and maple veneer top panels on a 60-inch writing desk, and the maple backpanels of companion bookcase units. “We had some executive groups, which are a lot of dollars, and we were able to layer in some writing desks and smaller office pieces,” Long said. “When you have something for everybody, it tends to work pretty well.” Parker House also did well with larger-scale pieces including a new $1,499 to $1,699 executive desk in Corsica and a wall desk in the same traditional collection.

keep in step with changing needs, demands of consumers looking for something outside of the, ‘Here’s a box to put your TV onto.’” Ken Loh, vice president of sales for AP Inds., said he saw a big increase in requests for two-tone effects, like white doors in a wood tone case. And retailers continued to demand more functionality, he said. At West Port Home, retailers liked the new manual-lift, counterbalanced mechanisms to help the consumer pull up a flat-screen TV from the footboards of beds, according to Gene Head, vice president of merchandising and design. A queen-size bed can hold up to a 32-inch screen. West Port has three of the beds with price points hitting $599, Head said, bringing the

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Legends Furniture did well with this white Nantucket Loft entertainment group because retailers liked the fresh look of the painted finish.

feature to a mass market. A motorized unit would be more expensive. “Our stuff is so different

that sometimes it takes a little while to catch on,” he said. Legends Fur niture reported success here with the

color white, especially in its Loft group, according to Tim Donk, director of marketing. The white Loft groups in an entertainment wall range from $799 to $999. “I’m surprised at how many people have bought it,” Donk said. “We haven’t had white in years. It’s fresh and different.” He said the company also did well with media fireplaces, of which the company has 19 units. Riverside scored with its canvas Bon Voyage and worn buckskin leather Latitudes consoles, said Mike Charlton,

senior vice president of product development and merchandising. The groups took the look of trunks with straps and buckles, but are consoles that feature media and gaming storage. “People just don’t expect to see this here. It’s just fun,” Charlton said. Also coming back at Riverside were taller entertainment walls at 82 to more than 84 inches, he said. “We’ve had a lot of requests for them with the economy improving and people spending a little more on something taller for 12- to 14-foot ceilings,” he said, adding that the company’s Placid Cove group in a rub-through white got attention in a $1,999 wall configuration.

10/24/2012 3:57:52 PM

FURNITURE |TODAY

OCTOBER 29, 2012

www.furnituretoday.com

High Point Highlights

Bedding producers satisfied with market as traffic builds By David Perry HIGH POINT — Bedding producers generally gave the market good grades, but some said that spotty traffic was an indication of a tough retail climate. Several producers said the market got off to an unusually quiet start in their spaces, but then saw an uptick in traffic. There were some notable mattress successes, including the launch of a new ComforPedic line at Simmons. “This market is so busy,” said Gary Fazio, CEO of Simmons. “This is my fifth High Point Market at Simmons and my visual perspective is that it is two or three times busier (in the Simmons space) than before.” The company’s launch of a new ComforPedic line with gel foam and phase-change technology drove traffic to the Simmons space, Fazio said. The line is backed with a comprehensive retail merchandising program that includes new headboard and footboard displays. Serta President Bob Sherman said his company added new customers and noticed some dealers writing orders here, a departure from the norm. And “quite a few retailers” added Serta’s new iSeries line, which combines a new coil unit with Serta’s gel memory foam, Sherman said. “We are having a great market,” declared Jim Nation, president of Five Star Mattress. “This is the High Point launch of our Gel-Active line, which is doing well. Our new TLC line, which includes wrapped coils with gel, is also doing well.” “High Point was a continuation of our success in the gel category as well as with our ComfortCare and HealthRest lines,” said Ron Passaglia, president of Restonic. He said market started slow but picked up steam and wound up as a successful showing for the company, considering the tough business conditions in recent weeks.

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Pure LatexBliss had “significant traffic from furniture stores” and also saw an influx of retailers from Canada and Asia, said Kurt Ling, president. “This has been a strong international market,” he said. Shifman found retailers in good moods and got a good reaction to its upcoming 120th anniversary promotion. “Several retailers said they were pleasantly surprised that the upcoming election hasn’t hurt business as much as they thought,” said Bill Hammer, president. “Most retailers are upbeat. Our 120th anniversary promotion is exactly what they are looking for.” “We thought traffic was OK,” said Mike McQuiston, vice president at Symbol. He said Symbol is planning for a strong year in 2013, when uncertainty surrounding the election and the economy is resolved. Gold Bond attracted interest with a number of new latex beds, including one-sided and two-sided versions. “Latex is experiencing a renaissance,” said Bob Naboicheck, president. Enso Sleep Systems got off to a strong start, seeing many major players at the outset of

the market, said Len Burke, vice president of marketing for Enso’s parent, Klaussner. “The quality of our customers has been high,” he said. “We’ve seen several big hitters.” Jamison, which made a big push with its new TLC latex line, did well. “We’ve been busy,” said Ken Hinman, senior vice president. A number of bedding producers said retailers are already planning for good business next year. “There is anticipation about the new year,” said Gerry Borreggine, president of Therapedic. “There is a feeling that the next president, even if it is the same president or a new one, will give the economy a shot in the arm in the new year. When January arrives, it’s a new season.” Magniflex sparked interest with its Linen Natursoft Deluxe, featuring a layer of foam infused with mallow plant extract, known for its soothing and healing qualities. Often found in beauty products, mallow has been used to reduce inflammation and soften skin. The layer of mallow extract foam provides an extremely soft and comfortable support surface for the body

Therapedic’s Scott Wallis gets comfortable on one of the company’s new Agility sleep sets, which combine encased coils and specialty foams.

Simmons CEO Gary Fazio shows a new retail display for the company’s ComforPedic specialty sleep line. while calming the mind and promoting an overall sense of well being, according to the company. “Women appreciate the

concept of ‘beauty bedding’ and are willing to invest in their well being,” said Marco Magni, global sales director at Magniflex.

Retail interest in sleep accessories growing Jamie Diamonstein, left, of Paramount Sleep and Jan Wettergren of Biscayne Bedding, which is adding Paramount lines to its portfolio, hold a new gel-cushioned pillow in the Paramount line.

By David Perry HIGH POINT — Retailers looking to squeeze out additional sales in a challenging sales climate are increasingly turning to sleep accessories. Retail interest in sleep accessories continues to grow, suppliers of the products reported at market. Several of the new lines tout a temperature regulation story. Protect-A-Bed enjoyed a good market in its new permanent showroom, which it shares with Top 10 bedding producer Therapedic. Protect-A-Bed exhibited its new ThermASleep line, which uses Tencel to absorb and release moisture, thereby maintaining a consistent surface temperature. The line includes pillow and mattress protectors and a kit offering sheets and pil-

low protectors, the company said. Magniflex introduced four gel pillows to complement its new Magnigel mattresses. Two feature 100% of the company’s new Magnigel material,

while one features a gel and memory foam combination and another is a combination of latex and gel. Retails range from $183 to $206. “We’ve created four options all fea-

10/24/2012 1:49:50 PM

FURNITURE |TODAY

www.furnituretoday.com

OCTOBER 29, 2012

High Point Highlights

Gel mattresses gain ground By David Perry HIGH POINT — Interest in gel bedding remains on the upswing, bedding producers report. Gel beds at all price points attracted attention in mattress showrooms across the market here. Senior bedding executives, watching the activity, said gel has emerged as a breakthrough category. “This is the first category in the last dozen years that has made not only a splash, but has had a sustained impact on merchandising programs,” said Gerry Borreggine, CEO of Therapedic, which offered eight gelcushioned beds here, including the four models in the Agility line that combine various encased coils and different foams, including gel. “Gel is continuing to attract new customers.” He said Therapedic’s first gel offering, the EcoGel line, “is still picking up steam” more than a year after its introduction. “Gel is booming,” agreed Jamie Diamonstein, president of Paramount Sleep. “Consumers probably relate to gel better than they can to memory foam, because gel is in other products with which consumers are familiar.” He said Paramount is offering gel in a number of its new lines and made this observation about the category’s future: “There is no doubt gel is

Klaussner’s Len Burke holds a demonstration unit that shows the spheres of gel in the company’s Enso Sleep Systems line.

Five Star’s new Gel-Active gel bedding line made its first High Point showing. here to stay.” Magniflex successfully introduced its Magnigel technology as it entered the gel category with a polyurethane gel. “Marketing has made gel products well known,” said Marco Magni, global sales director. “Gel bedding is an easy product to sell if you have a new story to tell.” Magnigel’s story emphasizes cooling, breathable properties in the sleep sets. Anatomic Global offered three models in its new Rujuvigel line, retailing from $1,299 to $1,899. The gel infused into the Rejuvigel models adds support to the mattresses, the company said. “That was the big winner of the show,” said Jacqui Griffith, senior director of marketing for bedding at Anatomic Global’s

turing distinctive feels and materials including dual-side pillow designs for customizable comfort,” said Marco Magni, global sales director. “By pairing our Magnigel mattresses with complementary pillows, partners will be able to sleep at their optimal body temperatures from head to toe. We believe this is a unique selling point and these accessories will give our U.S. retailers another way to effectively increase the sales ticket.” Jamison added a third pillow in its latex line. The Comfort Puff features the company’s first use of shredded latex. Ken Hinman, senior vice president, said Jamison is touting the importance of pillow sales. “You don’t buy a new car with used tires,” he observed. “Why would you buy a new bed and not buy new pillows? To us, new pillows are a must.” “The economy is driving sales of accessories,” said Kurt Ling, president of Pure LatexBliss, which includes pillows, toppers and a latex base among its sleep accessories. “Selling an $899 bed today is not enough for retailers. Helping retailers make $400, $600 or $750 more per sale is critical. There is a lot of motivation for retailers to do that.”

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parent, FXI. “Retailers responded really well to it.” Carolina Mattress Guild did well with its Cool Coils line that features encased coils, latex and gel designs. “There is so much gel out there,” said Kathy Grigg, vice president. “The addition of latex adds interest to the line. Retailers are looking for good latex beds.” Restonic, which got a good reaction to a gel-cushioned bed in a promotion for Furniture First members, continues to ride the gel boom, said Laurie Tokarz, vice president. “Gel is a new category, and it is definitely on the left side of the bell growth curve,” she said. Restonic, like a number of other bedding producers, is combining gel foams and innersprings, which should spark

sales of more innerspring beds, Tokarz said. Jamison’s Gel Comfort line, retailing at upper-end price points, has rapidly become a top seller for the company, said Ken Hinman, senior vice president. He said Jamison’s version features a breathable design that promotes the cooler sleep that consumers want. “Consumers say they don’t want to sleep hot,” Hinman said. “They hear so much about sleeping hot.” “Gel continues to be extremely popular,” said Mark Akerman, vice president of sales and merchandising for Enso Sleep Systems. “We are riding that wave.” Enso’s proprietary gel spheres differentiate its gel line from other gel beds on the

market, he said. Pure LatexBliss incorporates gel and phase change materials on top of and inside its sleep sets, giving consumers beds that provide temperature control — an area of growing interest for consumers, said Kurt Ling, president. Five Star’s new Gel-Active gel line was well received, said Paul Sullivan, vice president. And gel in two new TLC hybrid models also added excitement. Sullivan sees more growth ahead for gel. “I don’t see anything that would cause gel sales to slow down,” he said. “Gel is a new story in the mattress business. This gives us something new to talk about. And there is substance to the gel story.”

Kurt Ling of Pure LatexBliss displays a new pillow that touts a temperatureregulation story.

Marco Magni hugs a new pillow in the Magniflex line that is made of the company’s Magnigel material. Enso Sleep Systems introduced its first gel pillow. It features gel-infused memory foam on one side and fiber on the other, and retails at $79 with “nice margins” for the retailer, said Mark Akerman, vice president of sales and merchandising. Paramount Sleep added a new gel pillow, with a distinctive cover, to its sleep accessories lineup,

said Richard Fleck, chief marketing officer. Caber Sure Fit emphasized innovation in all of its sleep accessories. “We’re here to take a commoditized product and make it profitable,” said Bernard Weinstein, president. Among its new offerings: A mattress care protection kit that includes a 90-day comfort exchange program.

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OCTOBER 29, 2012

High Point Highlights

Furniture designers win 16 Pinnacles at market HIGH POINT — Chateau Lyon, by designer Pride Sasser for Century Furniture, took the Pinnacle Award for major collections at an awards banquet here during the High Point Market. Sixteen awards were presented at the annual event hosted by the American Society of Furniture Designers. “The Pinnacle Awards both honor and recognize creative, relevant and original designs in home furnishings that push our industry to the next level,” John Conrad, ASFD vice president and 2012 Pinnacle Awards chairman, said in a statement earlier this year. Furniture/Today is the major underwriter of the 17th annual Pinnacle Awards. Sponsors include AF Lighting, Continental Hardware, enLIGHTenment, Furniture Design Studios, Hafele America Co., Hickory Springs Mfg., High Point Market Authority, Home Furnish-

Chateau Lyon, by Pride Sasser for Century Furniture, took the Pinnacle Award for major collections.

ings Business, International Market Centers, Leggett & Platt and Sherwin-Williams. Winners were announced in 15 product categories and for the Green Leaf Award, recognizing sustainable design. In addition to Sasser, the winners were:

Occasional tables Avalon Heights, by Richard Schroeder, Denis Kissane and Gary Hokanson for Stanley Furniture. Occasional storage Le Papillion Chest, by Cindy Hall and Erica Wingo for Hooker Furniture.

Youth furniture Abby, by Taylor West for Hooker. Casual dining Artisan, by Richard Schroeder, Denis Kissane and Gary Hokanson for Stanley. Formal dining Arrondissement, by Richard Schroeder, Denis Kissane and Gary Hokanson for Stanley. Motion upholstery Brayden, by Tom Garland and Paul Zaidman for American Leather. Stationary upholstery Varese Sofa, by Joseph Mallison for Century. Leather upholstery Meridien Series, by David Vanderbloemen for Century. Lighting

Autumn Twilight Chandelier, by Danielle Elise Dzurik and John A. Fretz III for Golden Lighting. Accessories Gilded Lotus Wall Décor, by Andrew Palecek for Palecek. Home office MIJO, by Caryn Donovan for Planum/Mobil Fresno, S.L. Home entertainment MIJO, by Caryn Donovan for Planum/Mobil Fresno, S.L. Summer/casual Elements Collection, by Richard Frinier, Martha Lopacki and Greg Robb for Brown Jordan. Bedroom Caracole, by Jon Russell Koch for Schnadig International. Green Leaf Award Brindille Lamp, by David Kitts, David Martin and Zachary Pyle for Hubbardton Forge. For judges’ comments on the awards, search for this story on www.furnituretoday.com.

Association leaders discuss how to lure consumers By Clint Engel HIGH POINT — Leaders of home furnishings associations and other industry representatives met for a second time here during the High Point Market to discuss ways to boost consumer spending on furniture and accessories and help retailers better connect with consumers. Still in early stages of development, the “Home Furnishings Competitiveness Initiative” has, for now, adopted the former Home Furnishing Council banner to further its mission. But exactly what that mission will be and how it plays out was up for debate during the one-hour session in the International Home Furnishings Center. The meeting was attended by 18 people, including representatives of the National Home Fur nishings Assn., Western Home Furnishings Assn., Home Furnishings Independents Assn., Accessories Resource Team, International Market Centers and the International Home Furnishings Representatives Assn. Eric Blackledge, of Corvallis, Ore.-based Blackledge Furniture, who organized the first meeting this summer and has led the effort to pull the in-

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dustry together, presented the results of a brief online survey of the invited representatives and asked for insight on what should be done. Most of those answering the survey graded the industry fair to poor on how it competes with other industries for the consumer’s dollar. Also, 60% said there is a need for a consumer information program to increase interest and knowledge of home

furnishings. Some 84% also said retailer educational materials — on marketing, merchandising, operations and sales training — would be useful or very useful. Some attendees questioned the limited reach of the initial survey, and Blackledge recommended the various retailer associations go back to their memberships to get broader

input on what kind of industry-wide effort can be most effective. He also encouraged the associations to steer the initiative going forward. The industry has tried repeatedly to so something similar through the former Home Furnishings Council and through the HomeFurnishings. com consumer Web portal, but results have never lived up to expectations.

Blackledge said the thinking this time is to reverse the process. Instead of driving consumers to an industry portal, that portal could serve as a home for videos and other content that retailers and suppliers can use on their own websites — which consumers are more likely to visit first. The group plans another meeting for the next Las Vegas Market.

Bassett named chairman of Market Authority By Larry Thomas HIGH POINT — Doug Bassett, president of bedroom manufacturer Vaughn-Bassett, has been named chairman of the High Point Market Authority’s board of directors. Bassett, who has been the board’s vice chairman and a member of the executive committee for two years, is replacing longtime chairman Kevin O’Connor. O’Connor will remain on the executive committee. Bassett said at a Market Authority board meeting this month that O’Connor “has been an amazing catalyst for the High Point Market and the industry. Under his leadership,

city of High Point. the Market Authority has strengthened its Bassett told board members the biggest role as an independent lobbying challenge entity that represents all of the constituents will be informing the that have a stake in the many new state repHigh Point Market.” resentatives and state Bassett senators about the imBassett said one of portance of the market his main tasks as chairman will be lobbying North to the state’s economy. Carolina state legislators and “We have a tremendous other state officials for appro- educational challenge ahead priate funding for the Market of us because these new members may know nothing about Authority. About one-third of the the High Point Market,” Basgroup’s $4.7 million annual sett told the board. “And what budget comes from the state. little they do know is probably The remainder comes from a wrong.” tax paid by showroom owners At the meeting, four people and contributions from vari- also were added to the board. ous local government entities, New members are Scott Eckincluding $1 million from the mann, chief marketing officer

of International Market Centers; Joe Mussallem, former president of Natuzzi Americas and a 20-year furniture industry veteran; Mark Phillips, CEO of accent and home furnishings source The Phillips Collection; and Tim Schelfe, director of interior design at JDavis Architects. The terms of board members Lynn Underwood, general manager of the Center Point showroom complex, and George Clopton, chairman of the High Point Chamber of Commerce, are expiring. High Point Mayor Becky Smothers also is leaving the board because her term as mayor expires later this year. Her replacement will take her board seat.

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JAMISON Producer expands its specialty sleep offerings with its TLC collection, a latex line that features butterfly images in the ticking and in retail displays that back the line. CRAFTMASTER The Copenhagen sofa is part of Urban Elements, the companyâ&#x20AC;&#x2122;s first modern line.

LA-Z-BOY The Kennedy sofa highlights the companyâ&#x20AC;&#x2122;s color-saturated upholstery introductions. SERTA The new Perfect Day iSeries combines gel memory foam and innersprings in a hybrid bedding design.

OCTOBER 29, 2012

Best of Market

SOUTHERN SEATING The Sloane group featuring contrasting chocolate brown trim on a periwinkle-denim fabric.

CONTEMPO This playful accent chair combines blue and green hues with a streamlined wood frame in a light finish.

MASTERFIELD This accent chair partners periwinkle-hued fabric with a white finish that can be paired with both traditional and transitional upholstery.

Market winners Highlights from the fall High Point Market DELLAROBBIA DellaRobbia pairs contemporary lines with peacock-hued leather to create a dramatic sectional. BEST HOME FURNISHINGS Current fabrics update classic profiles in the YOLO line, a collection targeting young consumers.

LEXINGTON HOME BRANDS The Southampton poster bed is part of Ivory Key, the latest addition to the Tommy Bahama Home line. It comes in a white finish and features Moroccan-inspired design elements as seen in the headboard.

COAST TO COAST This No. 46291 two-door cabinet combines a rustic and aged base with a blue cutout design over a bright mirror and has a Devale brown finish with a distressed patina and trim. LEA INDS. Willow Run is a youth bedroom made with birch veneers and poplar solids. It comes in toffee brown and linen white finishes.

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JACOB EDWARD DESIGN The 1800 Beaver Creek collection includes this bedroom, which is made with bookmatched fancy oak veneers and solids and comes in an antique oak finish with burnished edges and distressing.

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OCTOBER 29, 2012

Best of Market

DORYA The Krall chair showcases a dramatic profile, luxury fabrics and nail head detailing.

A.R.T. The organic shape of the Amanda sofa defines this collection that includes a sectional, sofa, swivel chair, accent chair and tufted cocktail ottoman. On this sofa, ivory chenille is accented with embroidery, tiger stripes, velvet, silk and Bruges weave jacquard along with hand-applied nickel nail head trim.

PURE LATEXBLISS Company expands its temperatureregulation offerings with a new line of pillows.

CHINTALY IMPORTS The Jessica table has a mixed media wood and metal story for a contemporary look.

SCHNADIG This Icing On The Cake table was inspired by a wedding cake and features thin, black metal swirls to create an airy platform for a painted white glass top.

BASSETT MIRROR The Jasmine eightdrawer chest has a faded gray color and heavily patterned print.

BUTLER SPECIALTY The No. 2061025 cocktail table features shimmering aluminum and design that emulates the flair of an airplane wing.

STEIN WORLD The Somerset occasional table group blends wood and metal with elegant curves in a weathered oak finish over ash veneers and silver plata metal finish.

LORTS This 84-inch trestle base, draw leaf dining table extends to 132 inches, seating 10 comfortably.

FLEXSTEEL Subtle shapes and clean lines frame the soft button-tufted back and arms of the Dorea sofa. The flared architectural frame is highlighted by welted panels, and decorative nail head trim is an option to enhance the traditional aesthetic.

CHARLES SCHNEIDER This transitional/ traditional sofa features a gentle rolling arm combined with exposed legs and retails for $999.

AMERICAN DREW This upholstered sleigh bed is part of the new Jessica McClintock collection, Boutique. Dealers liked the antique inspired designs and selection of finishes including a whitewash painted finish called White Veil.

KEELER This Mediterranean style Millazzo cocktail table has gold acanthus leaf legs and a glass top.

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WOODARD The Isla outdoor group is made from cast aluminum.

MAGNIFLEX Producer enters the gel category with its Magnigel technology, offered in this Wave pillow, and in mattresses.

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OCTOBER 29, 2012

Best of Market

PALLISER With its retro automotive styling, the Darlington seating group helped the company maintain its leadership spot in home theater seating. PRESIDENTIAL SEATING The B881 executive office chair features a hinged arm and a tilt mechanism that allows the chair back to recline comfortably. COZZIA The high-end Ultimate Massage Chair, which delivers everything from a foot massage to soothing music, was a market home run.

CAROLINA MATTRESS GUILD Fresh Touch, which combines gel memory foam and latex, expands offerings in the gel bedding arena.

NATUZZI The contemporary Tenora sofa features Y-shaped chrome legs and articulating head rests.

NAJARIAN Dealers liked the industrial inspired design of the Milano bedroom. It has a highgloss black finish on the frame and a black faux leather upholstered headboard that contrasts with a metal frame on both the bed and the bed bench. KLAUSSNER The Bayside motion sofa, which features a pair of reclining seats and a fully padded chaise, was a market winner. SIMMONS The new ComforPedic from Beautyrest line features phase-change materials to keep sleepers at their ideal temperature throughout the night.

VARIER This Move stool features a design inspired by the one-footed stools used by workers making cobblestone streets.

JOHNSTON CASUALS This narrow Presence console table has a sleek contemporary look.

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MARIA YEE The 110-inch Henri sofa is shown in Mineral fabric with a chestnut base.

DECOR-REST The menswear theme is interpreted with Decor-Restâ&#x20AC;&#x2122;s Falcone graphite slipcover and Paloma sand accent pillows.

Z-LINE DESIGNS The Luna Collection features all-weather wicker that is woven by hand, UV resistant, fully recyclable and nearly maintenance free.

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OCTOBER 29, 2012

Best of Market

COPELAND The Moduluxe bedroom was a hit with dealers who liked the built-in nature of its multiple bed and case configurations. It comes in solid walnut, maple and cherry and has 15 finish options. DURHAM FURNITURE Dealers liked the transitional lines of the Meridian bedroom, and the under mattress storage capacity of this queen panel lift bed. It is part of the Perfect Balance line.

SELVA Dealers liked the modern flair of this dining table, which is part of the Downtown collection. It is shown with upholstered chairs in a traditional floral pattern, which contrasts with the clean lines of the table.

THERAPEDIC The tangerine-accented Agility line of hybrid mattresses makes a fresh statement.

AFFORDABLE FURNITURE This motion seating group was a market winner because of its time-honored transitional styling and eye-popping cover.

LOLOI The MX-04 Multi from the Madeline collection is power-loomed of 100% polypropylene in Egypt. The color space-dyeing technique gradates colors throughout the rug to create the watercolor design.

CAMBRIDGE MILLS The Fairmount Park dresser is made with solid Adirondack cherry and has a vanity style design with dentil molding beneath one-inch solid tops. It is shown here in a standard Rustic finish.

NORWALK The Penelope chair in deep orange leather is one interpretation of five color trends presented by the company at market.

KEY CITY The Padre chair from Coastal Classics by Nanette Price wowed designers with its fresh geometric pattern, contrast welt and nail head accents. ARMEN LIVING This Rondo round marble dining set features a white stone top, clean lines and stainless steel base.

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TEMPLE FURNITURE The Rowan sofa is shown in Jumper Raja fabric by Valdese Weavers. Jumper is a cut yardage program that comes in 82 colors.

JESSICA CHARLES The Lulu chair combines a vintage-inspired profile with bright fabric, button tufting and slightly flared legs.

WEST BROS The Gents chest is part of the Serra collection designed by Blake Tovin. It is made with solid walnut and has colorful lacquered drawer fronts.

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OCTOBER 29, 2012

Best of Market

PROTECT-A-BED With the market for adjustable beds continuing to grow, this Luxury Adjustable Bed kit offers a full package of sleep accessories.

E.J. VICTOR Mixed fabric textures add an upscale, bohemian flavor to this sofa. PALU LTD. The Hemsworth headboard has a mahogany frame in an ebony finish that contrasts with the woven rattan surrounding a quatrefoil cutout in the panel. A queen version retails at $1,190.

YOUNG AMERICA Boardwalk is a casual coastal inspired youth collection that is available in 24 paint and wood tone finishes. Dealers liked the design of the group including features such as bead detailing, canted posts and soft corners.

C.R. LAINE The Bella sofa is shown in Cocoa fabric and features distinctive nail head detail along the base.

LAUREL HOUSE DESIGNS This transitionally styled Mandarin square cocktail table has a rich caramel burl veneer inset on the pagoda top framed and complemented by the dark coffee stained finish on a chow leg base.

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EMERSON ET CIE The Darrien chest was shown at market in a new copper leaf finish.

HABERSHAM The American Treasures Le Chateau sideboard features an asymmetrical filigree design on its front and is shown here in a warm silver finish.

COMPANY C These Olivia chairs were among the companyâ&#x20AC;&#x2122;s best received items at market.

TERRA FURNITURE The Chatham dining chair pairs bright, warm fabric with a clean white finish and soft geometric details on the arms.

ELITE LEATHER A striking jade leather cover, wood legs and subtle nail head trim highlight the upper-end Artemus leather chair.

MATSUOKA The Origami chest has New Guinea walnut veneers manipulated into an origami art look.

MILES TALBOTT This ottoman from the Joe Ruggiero collection is shown in Sunbrella Trax II Chili fabric and retails for approximately $1,638.

SAM MOORE Sam Moore introduced new color-saturated finishes at market, including this pink hue called Petal.

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OCTOBER 29, 2012

Best of Market

LEGACY CLASSIC The 2700 group is made with pine solids and veneers and has an upholstered panel headboard.

CRESENT The Waverly dining room is crafted in solid acacia and has a wire brushed texture.

HORIZON HOME The Bombay bedroom features distressed and multi-colored case pieces and shuttered details on the headboard of this panel bed.

CABER SURE FIT Company enters the U.S. market with its DreamSerene line of mattress and pillow protectors.

DREXEL HERITAGE The Henson sofa, featuring a rich charcoal leather cover, is part of the new Leather Pairings program.

HENREDON The Montaigne collection includes this dining table, which is made with cerused oak veneers in a taupe finish called Rue de Bac. Dealers liked the grain patterns and Midcentury Modern design influences.

CLEARWATER AMERICAN The Texas Hill Country-inspired Southfork dining group has a dining table with a herringbone veneer pattern on its 96-inch by 48-inch surface. The chairs feature embossed leather and nailhead trim.

INTERCON This Orlean casual dining group has a black and natural wood two-tone effect and rub-though finish.

DAVIS DIRECT The 1793 bedroom is made with prima vera veneers in a V-match pattern on the headboard, footboard and drawer fronts of this contemporary group. Dealers liked the veneer pattern and the scalloped shaped headboard and mirror and concave middle dresser drawers.

PENINSULA HOME This Augusta cocktail table has a brushed verona finish.

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DECOURCY AND CO. The Hevea Grove group is a new addition to the latex bedding line.

HUPPE This bedroom is part of the UP by Huppe line and is made with select oak veneers and oak solids. Drawer interiors are made with Russian birch and stained to look like the outside of the furniture.

KIM SALMELA ATELIER The inverse geometric back of the Hayward sofa adds striking detail to the silhouette.

CENTURY This console is part of the Ruede STICKLEY Seine collection designed by Patrick Aubriot. It This self-storing trestle table is part of the Mission is made with quartered plantree and macassar collection. It is available in solid quartersawn white ebony veneers and has faux bone inlay trim. oak or solid cherry and also comes in one of Stickleyâ&#x20AC;&#x2122;s handrubbed oak or cherry finishes.

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OCTOBER 29, 2012

Best of Market

UNIVERSAL The Spencer bedroom is part of Great Rooms and is made with elm and birch veneers and hardwood solids in a parchment finish. It also has curved strap hardware in a gunmetal finish.

INTERNATIONAL FURNITURE DIRECT The 365 bedroom did well with dealers who liked the X pattern seen in the headboard, footboard and drawer fronts of case pieces, and the contrasting panels on the same pieces. HOOKER This panel poster bed is part of Estate, a 60-piece collection made with mahogany solids and veneers. It is shown here in a black finish that contrasts with a silver finish shown on a companion nightstand.

ERA NOUVEAU A rich, top-grain oiled leather cover made this sofa a market winner for a company that significantly expanded its line.

FAIRFAX HOME The Compass Rose bedroom has framed panels and drawer fronts and coastal-inspired shutter details also as seen on the headboard and case drawer fronts.

INCANTO Down and feather seat cushioning combined with sleek contemporary styling made this expansive leather sectional a market winner.

SLF The Sweetheart bed was a hit in SLFâ&#x20AC;&#x2122;s rebranded youth lineup, RoomGear. Shown in a white finish, it has a storage footboard and an upholstered tufted headboard.

SHARELLE The Novo table is shown here in a white lacquer finish. It features a trestle style base.

LIGNA USA This platform bed is part of the Zen collection. It is made with oak veneers and mahogany solids. A four-piece set starts at $1,499.

LEGENDS The Franklin bedroom is made with mahogany solids and veneers and features this upholstered panel headboard with nailhead trim.

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KARASTAN The Logan Celadon is a patchwork of traditional Persian elements in chocolate, ivory and celadon. From the new Bellingham collection, it is woven in the U.S. of premium fully worsted New Zealand wool on Wilton looms.

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OCTOBER 29, 2012

Best of Market

FOUR HANDS The Miles Club chair, shown in Grey Stripe, nods to menswear style.

EUROSTYLE The Amelia Lounge chair has a leatherette seat and back over foam and a stainless steel base. It is available in white and taupe at $465 MSRP.

SIMPLICITY SOFA The ready-to-assemble Megan model has classic lines that work well with a variety of styles.

GOLD BOND Company expands its latex bedding offerings with this two-sided model, a first for the company.

FRANKLIN This popular pushback recliner marked an expansion of the companyâ&#x20AC;&#x2122;s high-leg recliner lineup. ZUO This Chesterfield-inspired sofa showcases slightly flared arms, button detailing and crisp neutral fabric.

LANE LANE VENTURE The new Gran Torino motion sectional features a pair of reclining seats, a This transitional wing chair storage console and a chaise. from Raymond Waites is covered in a natural Belgian linen highlighted with silk buttons in the tufts. The legs are finished in GABBY quicksilver coloration and Topped with white the frame is accented with limestone, this Gillian tufting and nickel nail head flower table has an details. antique gold finish on iron legs that form two interlocking circles to create its stretcher.

JOHNSON BENCHWORKS This shelf wing chair features a muted print fabric that pays homage to Americana dĂŠcor.

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GREENINGTON The Currant oval cocktail table has bamboo construction and a contemporary style.

HIGHLAND HOUSE Candice Olson designed the Envy Settee, blending modern and traditional influences.

TALON SYSTEMS This closet system is made with birch veneers and features plenty of storage for clothing, shoes and other accessories.

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OCTOBER 29, 2012

Best of Market

PANAMA JACK HOME This sofa has feather seating and can be dressed up or down with toss pillows and fabrics in a variety of colors. SURYA The new coastal collection received rave reviews from dealers. The weather-proof rug features sand dollars and scattered yellow accents on a sand and steel blue background.

KINCAID Contrasting fabrics in neutral tones and nail head trim add visual interest to the simple lines of Kincaidâ&#x20AC;&#x2122;s Cottage Classic Collage sofa.

AMERICAN LEATHER The button-tufted seat cushions and smooth back cushions deliver a mid-century modern look to the new Tristan leather sofa.

MAITLAND-SMITH This canopy poster bed features four panels made with tiger penshell. Dealers liked the clean lined modern look of the bed frame combined with the mixed media approach of the headboard panels.

HGTV HOME The three-piece Park Avenue sectional is part of the new Modern Heritage collection.

JAIPUR Over-scaled geometrics characterize the City collection of hand-tufted rugs. The high/low construction in wool and art silk creates texture and surface interest and gives a look of matte and shine.

FOLIO 21 The Bar table has a woven chair back motif and transitional style.

BROYHILL The Gabrielle sofa has diamond tufting and a walnut base that lends a vintage influence contrasted by the saffron and slate watercolor print. FURNITURE RESOURCES This Vela dining group has a shimmering metal base and reclaimed look to its thick wood top.

SITBEST The contemporary Slogen group helped make the companyâ&#x20AC;&#x2122;s U.S. market debut a success.

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OCTOBER 29, 2012

Best of Market

ALDEN PARKES This Elise desk was among the groups that did well at market.

MARTIN HOME FURNISHINGS The Marbella home entertainment wall uses ash veneers and flowing curves across drawer fronts.

SCOTT THOMAS This Esben tamboured credenza in walnut has central curly maple drawers behind the cabinet’s sliding doors.

THEODORE ALEXANDER This veneered child’s butler valet is part of the Young Spencer youth group. It is made with ebony, chestnut burl, rosewood, sycamore, wenge and movingue veneers. It also has four shaped drawers and shoe feet.

AMBELLA HOME The Voranado dovetale console table is crafted from solid mindi wood with dovetail joints.

WHITTIER WOOD PRODUCTS The McKenzie mantel storage bed has been reconfigured for adjustable bed bases. It is made with solid American Alder and has six storage drawers.

MACKENZIE DOW The Charleston kitchen island is shown here in a malt finish and has a base cabinet glazed over an Acanthus finish.

WILLEM SMITH This Charla extension table has three selfstoring leaves and a gently tapered boatshaped top.

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BROWNSTONE The Chelsea bookcase is made with solid teak and comes in a cerused teak finish. COCHRANE Dealers liked the American Traditional-inspired design of the Briarwood mantel bed. It has a large headboard with framed panels and drawer storage in the footboard.

SUMMER CLASSICS This Wind lounge chair has a contemporary look.

JOHN RICHARD This No. Eur-04-0180 piece has a macassar ebony top and sun ray pattern randomly veneered in fisheye ofram wood.

10/24/2012 5:55:19 PM

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OCTOBER 29, 2012

Best of Market

CENTER OF THE WORLD WOODSHOP The Terry Hanover designed Stag Run outdoor group is domestically made using pinned mortiseand-tenon joinery and mahogany wood and is finished with tinted exterior oil.

DEKAYU HOME Eco-friendly wood furniture complements the soft silhouette of this tufted sofa.

PLATINUM DĂ&#x2030;COR This Double Face coffee table has a white lacquer frame and printed glass droplets on its base panel for a contemporary look.

SALOOM This Gramercy set has a contemporary look and is available in 40 finishes and 13 sizes.

TRADE WINDS The Newport game room spectator set is domestically made in solid maple and available in eight wood finishes.

WORLD IMPORTS A full-length chaise and transitional styling helped make this sectional a hit with buyers at market.

THOMASVILLE This bookcase is part of Banyon Bay, which is made with cathedral and quartered primavera veneers and hardwood solids.

HAMMARY This No. 294 entertainment wall features has intricate veneer work and nickel-colored hardware.

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PETERS REVINGTON This No. 211731 cocktail table has separated glass panels in the top and a warm brown finish.

URBIA The River dining table has a contemporary style and is constructed from chamcha wood.

TUCKER FURNITURE The Jig Saw occasional tables come in a driftwood oak and, as the name implies, fit together.

10/24/2012 5:55:42 PM

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OCTOBER 29, 2012

Best of Market

SIMON LI An unusual sweeping back design and leather/fabric cover highlight this sofa.

ACCENTS BEYOND This 42-inch drop leaf breakfast table has a cherry top and hardwood base.

SOFITALIA The contemporary Bruxelles sectional features chrome legs, articulating headrests and a rich leather cover.

JOHN THOMAS The Olde World kitchen island is crafted in solid Asian hardwoods.

MARGE CARSON This 85-inch long credenza is part of the Sonoma collection. Its door panels feature inlayed pearl shell in a sunburst patter. The panels are available in four colors including Honey, Pearl, Pewter and Raven.

USA PREMIUM LEATHER A rich chocolate brown leather cover highlights the companyâ&#x20AC;&#x2122;s newest traditional/transitional seating group.

MASSOUD Ragtime leather is combined with tri-color cowhide and a variety of fabrics, fringes and nail head accents in the Brook Copper sofa.

MAGNUSSEN The Rowan group combines rustic barn wood, oxidized metal and carriage style wheels for an industrial effect.

SUNNY DESIGNS This fireplace media console is one of 19 new styles offered by Sunny Designs, shown here with the companyâ&#x20AC;&#x2122;s trademark slate inserts.

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POWELL This No. 795-811 piece has an Eiffel Tower and Statue of Liberty print on its front door.

LINCOLNTON FURNITURE The Lincoln cherry collection includes this dresser made with solid cherry in a cinnabar finish. It also features brushed nickel hardware and self-closing drawers.

LA BARGE This No. LA1039 black lacquer finished chiffonier has a black wax stone top, mirrored glass doors and brass accents.

JOFRAN The popular Grace tufted club chair features antique brass nail head trim and stylish turned legs.

NOVA The Labyrinth console table has a root beer finish, white etched glass, LED lights and casually elegant style.

10/24/2012 5:55:53 PM

FURNITURE |TODAY

OCTOBER 29, 2012

Sheen’s Reed succeeds by selling better night of sleep By David Perry LONDON — James Reed is a fine, goodnatured bloke, a veteran on the mattress scene. He’s been selling beds for The Sheen Bed Company here for 12 years and knows James Reed gets comfortable on a sleep his way around the set at Sheen Bed Company. sales floor. A good mattress purchase experience, he says, begins with a nice friendly greeting for the customer. “I’m not a pushy salesman by any means,” he said. “The English don’t like that. If you are too pushy, the customer will take offense.” And that, of course, is not a good thing. There is an art to talking with shoppers, according to Reed. You’ve got to get basic information, such as the type of bedding they are looking for, the size of bedding, and who the beds are for, but you need to avoid “yes” or “no” types of questions that don’t encourage shoppers to engage in a fuller conversation. “I try to come across as not too salesman-like,” Reed said. Establishing a good rapport with the shopper boosts the chances of making the sale, he said. Reed admits that a friendly relationship with the shopper is necessary to overcome a major potential obstacle: “Fundamentally, this can be a terrifying process for the customer. They don’t want to tell you how they sleep.” The Sheen Bed Company is an independent bedding retailer in southwest London with years of service to customers in the area, which includes a growing number of Americans. A Pizza Hut is across the street. So is a Blockbuster video store. The customers in this area can afford better bedding, and Sheen Bed sells a number of high-end sleep sets. But despite those successes, price is often a key factor on the sales floor. “The market is very price-driven at the moment,” Reed acknowledged. What are his toughest challenges as a mattress salesman? He quickly comes up with a list: “The price. Getting a commitment. Trying to hang onto margin. Trying to get the customer to place an order.” U.S. sales associates know that list well. Sheen Bed carries the well-known English brand Hypnos, which makes encased coil models, and the retailer has another innerspring line as well. But Reed says he is careful not to engage in the coil count game when presenting those lines. That simply sets up a battle to see which bed offers the most coils, and that’s the wrong approach to take, in his view. What he’s really selling is a good night of sleep. And that’s what gives him success on the sales floor at The Sheen Bed Company, he said. Retail Bedding Playbook is a regular feature about mattress retailers by David Perry, bedding editor. Ideas for future coverage can be shared with Dave at dperry@furnituretoday.com.

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10/24/2012 5:00:01 PM

FURNITURE |TODAY

OCTOBER 29, 2012

Bedding Today

David Perry Executive editor

Time for a new campaign: Let’s boost bedding sales

Premium Growth. Pioneering Innovation. Profit Dollars.

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f I am elected Mattress Czar, I will create 12 million new mattresses — good mattresses — each year. I will work with low-end and high-end bedding producers alike, emphasizing clean construction techniques. And I will never rest until we have rebuilt the middle of the bedding market. Forgive my little flight of fantasy, but the presidential election has been taking its toll on me, as you can see. Worse, it’s been hurting business, as several of you told me at the recent High Point Market. No shock there. “There is more uncertainty in America than at any time in the last 20 years,” Gold Bond President Bob Naboicheck said to me in High Point. “The political conversations going on are terrifying people.” That’s the bad news. Yes, the country is deeply divided about the presidential contest, and all of those negative ads are draining consumer confidence. But I also heard some good news for our industry. Serta President Bob Sherman said a bedding promotional blitz is coming in the fourth quarter, one that could create a business-building advertising umbrella. After the presidential election, retailers should invest promotional dollars and capitalize on the support they will be getting from their bedding suppliers, Sherman said. Another note of optimism came from Gerry Borreggine, president of Therapedic, who said that something positive happens to all of us when we turn the calendar and welcome in a new year. He believes that spirit of hope will lift the industry as 2013 unfolds. A look at the bedding archives reveals that the fourth quarter is traditionally the weakest quarter of the year for mattress shipments. “This is not our time,” one bedding man noted, looking at the calendar. But that doesn’t mean that strong bedding promotions can’t drive sales in the final two months of the year. Serta sees opportunity in the year’s final months. Given that company’s growth record, we should give Serta’s insights serious consideration. I should also note that one bedding veteran reminded me that November used to be a great mattress sales month for a major retailer that pushed the category that month. In other words, don’t underestimate the power of a concerted promotional push. Those were a couple of my key takeaways from the High Point Market. Yes, the election has been a drain on business, but it will — finally, mercifully — be behind us next week. Then we have almost two months to promote mattresses and do some good business this year. Now that’s a campaign we should all embrace.

10/24/2012 1:49:34 PM

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Untitled-181 1

9/28/12 3:28:11 PM

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OCTOBER 29, 2012

Research

Middle class shrinks as income declines By Stephanie Nickell In 2010 the median household income was $59,127, a 6.1% decline from 2007 when the median household income was $62,941. According to a recent study by the Pew Research Center not only have incomes decreased, but the middle class is shrinking in size as well. Last year, 51% of adults in the U.S. defined themselves as middle class, compared with 56% twenty years ago and 61% forty years ago. For the purposes of the study, Pew defines the middle tier as those living in households with an annual income that is 67% to 200% of the national median; the upper tier are those living in households above the 200% threshold, and the lower tier are those living below the 67% threshold. This is an important group for the furniture industry. According to Furniture/Today’s 2011 Consumer Buying Trends Survey 40% of furniture and bedding buyers have incomes between $50,000 and $99,999, considered to be middle class. The sharpest decline in the middle class can be seen in those adults with less than a high school diploma. In 1971, 53% of adults having less than a high school diploma were in the middle class; in 2011 that number dropped to 37%, with the majority falling into the lower-income tier. The biggest portion of the middle class, 42%, say they are in worse shape now than they were before the recession. While 32% say they are in better shape and 23% claim there has been no difference in their financial situation. As a result in declining incomes, 62% of the middle class say they have cut spending because money was tight in the past year. Another 29% report having trouble paying bills and 18% say they have had trouble getting health care for themselves and their family in the past year. Yet, this group maintains some optimism as 78% of the middle class believe their standard of living compared with their parents during their peak financial years will eventually be the same or better.

Financial situation after the Great Recession Now vs. before the recession began in December 2007 % of middle class

Furniture and bedding buyers in 2010 By household income

Source: Furniture/Today’s 2011 Consumer Buying Trends Survey

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Incomes are scaled to reflect a three-person household, in 2011 dollars $63,277 $57,320

$59,194

$61,100

$62,941 $59,127

$54,413

1989

1993

1997

2000

2004

2007

2010

Source: Pew Research Center tabulations of the Current Population Survey, U.S. Bureau of Labor Statistics and Census Bureau

Percentage of adults by income category, 1971-2011 Lower

Middle

Middle-class adults say it would take a household income of $70,000 to maintain their lifestyle.

Upper

2011

29%

51%

20%

2001

28%

54%

18%

1991

27%

56%

17%

1981

26%

59%

15%

1971

25%

61%

14%

Source: Pew Research Center, The Lost Decade of the Middle Class, 2012

Source: Pew Research Center tabulations of the Current Population Survey, U.S. Bureau of Labor Statistics and Census Bureau

85% of the middle class say it is more difficult today than 10 years ago to maintain their standard of living. Source: Pew Research Center, The Lost Decade of the Middle Class, 2012

The Economics of the Middle Class in the Past Year % of middle class

Worse shape 42% Better shape 32%

Don’t know 3% Source: Pew Research Center, The Lost Decade of the Middle Class, 2012

Median household income, 1989-2010

Cut back spending because money was tight

62%

Trouble paying bills

29%

Trouble getting medical care for self/family

No difference 23%

18%

Problems paying rent or mortgage

16%

Been laid off or lost job

12%

Source: Pew Research Center, The Lost Decade of the Middle Class, 2012

Middle class ($50,000 to $99,999) 40% Lower income (less than $50,000) 40%

Long-term optimism Affluent ($100,000 or more) 20%

% of middle class, ages 18 to 64, that believe their standard of living compared with that of their parents during their peak financial years eventually will be better will be worse

71% 17%

will be the same don’t know

7% 5%

Source: Pew Research Center, The Lost Decade of the Middle Class, 2012

10/24/2012 8:47:36 AM

FURNITURE |TODAY

OCTOBER 29, 2012

Opinion

Jerry Epperson An insider’s view

What did you miss by not attending market?

married the farmer’s daughter. Unlike my small family, her family was HUGE! Her father was one of nine siblings and her mother had 10 brothers and sisters. My mother-in-law’s family had a family reunion every month, and pity the fool who brought storebought food instead of homemade. It became clear why attendance was so high every month: If you were not there, you were the one everyone gossiped about. If you were not at the recent High Point Market, we were talking about you. You missed a good one. The furniture shows are critical to a retailer’s success. They are part reunion, support group, education and long-range planning. And you can see new furniture, mattresses, accessories and a world of other items too numerous to mention. Yes, all the larger retailers were there, including the mass merchants, warehouse clubs, rental companies, Internet retailers and many others from around the globe. The large retailers meet with the large vendors and commitments are placed, logistics arranged and merchandising plans firmed up, to prepare for the coming year. But the real opportunities in High Point are for the small to middle-sized stores, who too often stay home. That is a shame because it is these retailers who can tour the multitude of smaller showrooms to see the truly creative, novel and exciting furnishings of all sorts before they get mainstream and on everyone’s floors. These smaller, more entrepreneurial vendors must be creative and different to compete. They take the styling risks and experiment. Being a larger retailer has many advantages, but one disadvantage is that you cannot source from the smaller vendors who often develop the new ideas in fashion. In fact, if you are a mid to small store, you are wasting your time trying to copy what the larger stores offer. You can use High Point and Las Vegas to find the new, colorful, exciting items that serve market niches. Even an old marketgoer like me saw many new things in High Point that I have never seen in showrooms before. Yes, some were on the fringe of good taste, but they caught my eye and will catch the attention of American consumers, too. Our markets have never been easier to shop, had better logistics to help with your store plans, been easier and more affordable to attend, or offered such a great selection of both products and educational opportunities. Yes, our reps do a fine job but attending a market is like going to a concert or a sporting event in person. Seeing it later on video is never the same. We missed having you there, but we did enjoy talking about you.

Looking for Something More? Nationwide Furniture is more than just a buying group, we are a complete marketing group. What does that mean for you? Volume pricing. Rebates. Special rates on consumer and inventory financing. Exclusive products. Private labels. Promotions. Marketing assistance. Merchandising. Training. HD Network. And the list goes on and on . Joining Nationwide Furniture doesn’t change who you are... it gives you more opportunities to add more plus dollars to your bottom line. To learn more about Nationwide Furniture visit www.nationwidemarketinggroup.org or call: 336-722-4681

W.W. “Jerry” Epperson Jr. is a managing director of Mann, Armistead & Epperson Ltd., 119 Shockoe Slip, Richmond, Va., an investment banking and research company that specializes in the furniture sector. Online at www.maeltd.com

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10/24/2012 10:41:29 AM

KNOWING WHAT MATTERS MEANS SUCCESS FOR YOU!

FURNITURE |TODAY

OCTOBER 29, 2012

by David Perry

Today’s topic

Sleep tips Importance of elements of sleep experience in getting a good night’s sleep Percent citing element as very important

EXPERIENCE MATTERS. MANUFACTURER OF QUALITY MATTRESSES SINCE 1957.

• FLEXIBLE & RESPONSIVE • BRAND RECOGNITION • COMPREHENSIVE POP SUPPORT • EXPERIENCE AROUND THE GLOBE

Comfortable mattress Comfortable pillows Comfortable feel of sheets and bedding Quiet room Dark room Cool room temperature Fresh air, free of allergens Clean bedroom Relaxing bath or shower just before bed Use of prescription or over the counter sleep aid

66% 66% 53% 50% 44% 38% 38% 38% 17% 7%

Source: National Sleep Foundation 2012 Bedroom Poll

Good night’s sleep: More than a mattress

This is the classic bad news-good news scenario. The bad news, and it’s bad, no matter how you look at it, is that just 66% of consumers say a comfortable mattress is very important to a good night of sleep. Who wants to sleep on an uncomfortable mattress? Apparently some consumers wouldn’t mind doing just that, judging by these survey results. But there is also some good news here: Comfortable pillows are seen as every bit as important to a good night of sleep as a comfy mattress. And comfortable sheets and bedding are cited as very important for a good night of sleep by 53% of consumers. So the sleep products industry has more than one entrant in the better sleep derby. Yes, it would be nice if mattresses received higher scores here, but comfy pillows and sheets do get a fair share of credit. That suggests nice sales possibilities for those product categories. It’s also good to learn that sleeping pills are said to be very important to a good night’s sleep by just 7% of the consumers. Given all of the advertising behind those products, we would have thought that figure was much higher.

Key take-away Alas, the mattress just doesn’t get the respect it deserves in providing a good night of sleep. But comfy pillows and sheets do get a fair share of credit, a point that should not be lost on mattress retailers.

WE KNOW WHAT MATTERS.

Mattress Metrics is a regular column of statistical analysis by David Perry, bedding editor. Ideas for future coverage can be shared with Dave at dperry@furnituretoday.com.

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10/24/2012 8:45:27 AM

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OCTOBER 29, 2012

Industry News

CHFA names Sears Canada Retailer of the Year By Michael J. Knell MISSISSAUGA, Ontario — Sears Canada, which has consistently been one of Canada’s top five furniture, mattress and appliance retailers for at least three decades, has been named the 2013 Retailer of the Year by the Canadian Home Furnishings Alliance. Given annually since 2001, the honor recognizes exemplary models of excellence and community service by Canadian furniture retailers, the association said in a statement. “The story of Sears Canada is the story of the growth and success of a great enterprise and a retail icon that Canadian consumers have come to trust for great value,” the CHFA said. Sears Canada was launched in 1953 under the Simpsons-Sears banner, operating two stores in Kitchener, Ontario, and Kamloops, British Columbia, and issuing the first edition of its now-famous catalog, which was sent to 300,000 homes across the country. Today, Sears Canada is a multi-channel retailer with a network that includes 197 corporate stores, 276 hometown dealer stores and 20 home services showrooms, as well as over 1,500 merchandise pickup locations. It continues to publish Canada’s most broadly circulated general merchandise catalog and offers shopping online at www.sears.ca. The Sears Canada Charitable Foundation distributes donations to charitable organizations that align with its mission to support the healthy development of children and youth in Canada. Sears is working with children’s oncology centers and organizations to raise funds and awareness for research and treatment initiatives to improve the lives of children living with cancer. In 2010, the Sears Canada Charitable Founda-

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tion made a multi-year, C$5 million commitment to fight childhood cancer. The company also supports other youth development initiatives, and each Sears Canada store partners with local charity groups for instore fundraising events.

The 2012 Retailer of the Year was the Winnipegbased Dufresne Retail Solutions Group. Prior honorees include leasing merchant Easyhome Ltd., Sleep Country Canada, Mega Group, Stoney Creek Furniture, The Brick, Tepperman’s Furni-

ture of Windsor, Ontario, and Leon’s. The association will host a gala dinner to honor Sears Canada — as well as the 2013 recipient of the Lifetime Achievement Award, Angelo Marzilli, founder of Decor-Rest Furniture — on

Friday, Jan. 11, in the Orion Ballroom of the International Centre here. For tickets to the event or for more information, contact CHFA President Murray Vaughan at (905) 655-6561 or email murray@chfaweb. ca.

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10/25/2012 3:35:54 PM

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Industry News

CHFA to honor Decor-Rest’s Angelo Marzilli By Michael J. Knell MISSISSAUGA, Ontario — Angelo Marzilli, the founder of upholstery maker and furniture importer Decor-Rest Furniture, has been named the 2013 recipient of the Lifetime Achievement Award by the

home furnishings Canadian Home Furindustry and to the nishings Alliance. community in which The CHFA estabthey live. lished the award in 2001 to recognize “Angelo Marzilli’s people who have success has come as made exemplary a result of hard work, Marzilli and sustained concommitment and pertributions to the Canadian sistence,” the CHFA said in a

statement announcing the award. “It is important to Angelo that the Marzilli family values are applied to DecorRest’s dealings with everyone. This philosophy gave birth to the company’s tagline ‘built by our family for your family.’” The son of a traditional

farming family, Marzilli immigrated to Canada in 1962 from Compabasso, Italy, at age 15. His career in the furniture industry began at the now defunct Newport Chesterfield in 1963 where he trained as a master upholsterer before moving to Futurama four years later.

“Angelo Marzilli’s success has come as a result of hard work, commitment and persistence.” Canadian Home Furnishings Alliance October 2012

A Word on Intellectual Property Rights Keeler is blessed with customers who value authenticity, design innovation, quality, and operational excellence. They are the reason we have been an integral part of the American furniture industry since 1893 and why we are still in business today. Over the years, we have developed thousands of decorative hardware designs and hundreds of unique ¿nishes for our customers. Original hardware designs are the intellectual property of those who ¿rst conceive them and then work them into a tangible form. As such, they are protected by US and international patent and copyright laws. As more and more furniture manufacturing moves offshore, we are witnessing an alarming increase in unauthorized copies of Keeler designs by foreign factories that either are ignorant of or disregard intellectual property law. These “knock-offs” are then incorporated into consumer products and sold to the public. Such intellectual property infringement violations are not only harmful to Keeler and our customers, but to our entire industry. The consequences run far and deep and affect everyone in the supply chain. Consequences of this practice include consumer confusion or deception, unfair competition and the degradation of originality and quality. Intellectual property and fair competition are rights, not privileges. As Keeler celebrates our 120th anniversary, we ask all furniture and hardware companies to stand with us in our commitment to the development and protection of authentic designs. By protecting intellectual property vigorously and to the fullest extent of the law, we can preserve the creative integrity of our industry. Sincerely,

John Veleris Chairman and CEO

www.keelerproducts.com

FT054i8 2

Marzilli founded DecorRest in partnership with his wife, Christina, in 1972, opening a 4,000-square-foot factory employing 20 in the Toronto suburb of Woodbridge. Twelve years ago, the company built its current facility — called The Showplace — which includes a 225,000-square-foot factory as well as offices and a showroom. Today, Decor-Rest has 250 employees and is one of Canada’s largest upholstery manufacturers. Marzilli also supports a number of charitable and community organizations. T h i s y e a r ’s L i f e t i m e Achievement Award recipient was Art DeFehr, CEO of Palliser Furniture. Prior honorees include Jean Deveault, retired executive vice president of Canadel; Richard Magnussen, president and CEO of Magnussen Home Furnishings; and the late Orville Mead, president of Durham Furniture. The association will host a gala dinner to honor Marzilli and the 2013 Retailer of the Year, Sears Canada, on Friday, Jan. 11, in the Orion Ballroom of the International Centre here. For tickets to the event or for more information, contact CHFA President Murray Vaughan at (905) 655-6561 or by email at murray@chfaweb.ca.

10/25/2012 4:12:45 PM

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OCTOBER 29, 2012

Industry News

Globe Express taps Hughes to lead overseas group CHARLOTTE, N.C. — Globe Express Services, a global logistics services provider with expertise in the home furnishings industry, has named Michael C. Hughes president and CEO of its overseas group. The current head of the overseas group, Ziad Korban, will remain a member of the

board of directors. Hughes most recently worked in the food, drink and Hughes consumer goods sector of KPMG, where he managed relationships

with the firm’s global clients. During his 14 years at the company, he also oversaw global audit, tax and management consulting services for Kraft Foods and Johnson Controls. Before joining KPMG, he spent 23 years as a senior finance executive with Coca-Cola.

In his new role, he will also be a board member at Globe Express and will work with the board and company executives to oversee strategy and growth opportunities. “Michael brings a wealth of experience gained over 35 years of working with growthoriented companies, enabling

those companies to achieve a higher level of performance through acquisition and integration, IT enabled transformation, risk management and good governance, and greater efficiencies in their global processes,” GES Chairman Baha’a Hariri said in a statement.

Paramount Sleep adds Fla. partner NORFOLK, Va. — Paramount Sleep is expanding its distribution to Florida with a partnership with Miami-based Biscayne Bedding. Biscayne will produce Paramount’s portfolio of brands. This is the third such partnership for Norfolk-based Paramount Sleep. Earlier agreements with Fresno, Calif.-based Cannon Sleep Products and Omaha, Neb.based Omaha Bedding expanded Paramount’s reach into Western and Midwestern markets. “We are delighted to broaden our distribution with a family owned company like Biscayne,” said Jamie Diamonstein, president of Paramount Sleep. “Jan and Silke Wettergren are moving the company in the right direction and we look forward to being an integral part of their future growth as they expand into a larger facility.” The Wettergrens purchased 60-year-old Biscayne Bedding in early 2011 after more than 20 years of experience in the bedding industry. Jan Wettergren had been Spring Air’s senior vice president of operations and earlier was vice president of operations for Serta International. Silke Wettergren is executive vice president of Biscayne Bedding, overseeing marketing and sales training. Paramount’s mattress lines include A.H. Beard, Back Performance, Boutique Hotel Collection, GoodNite Kids, Heavy Duty, Nature’s Spa, Quilt O Pedic and Sleep for Success.

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10/25/2012 2:49:07 PM

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OCTOBER 29, 2012

Industry News THE BUSINESS NEWSPAPER OF THE FURNITURE INDUSTRY®

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The Design Network will target women By Clint Engel HIGH POINT — Furnitureland South’s Jason and Jeff Harris have formed a new company to launch what they’re calling an “all-screens network multiverse” to engage the female consumer in a way, they say, she’s never been reached before. The Harris brothers have teamed with Lance Hanish and Klaus Paulsen of marketing firm CNA/Sophis and Nancy Glass of Nancy Glass Productions to introduce The Design Network, to provide entertainment and instruction and build awareness of design for the home through “quality video content.” Programming is expected to launch Jan. 7. Design Network founder and CEO Jason Harris, along with Hanish and Paulsen, had meetings during the High Point Market with about 50 of Furnitureland South’s suppliers to explain the program and solicit support — some video content, but mostly commercial lead-ins to the video segments, Harris said. The idea is to build a library of on-demand content produced by “the best designers, architects, furniture purveyors, video producers and home enthusiasts,” reaching “her through a multitude of screens, from the smartphones and tablet to computer monitors to televisions.” Harris said the venture is separate from his familyowned Top 100 company here, Furnitureland South, and that no retailer advertising or locator information — from FLS or any other retailer — will be part of the network. “This will not work as a ‘retailer’s multiverse’ or a marketing ploy,” Harris said in an email. “She has to come to know this as her network.” However, down the road, he added, “We think product integration could be an interesting feature of TDN programming.” Harris said The Design Network will used technology to

“We’re not reaching her. She doesn’t know home furnishings brands anymore, and she’s become detached. The pie is shrinking because we left her out of it.” Jason Harris, The Design Network continually personalize the videos to each viewer’s interests and preferences, and that the segment lengths will vary based on the device she’s using to watch — shorter segments on a smartphone and longer segments on a computer monitor, for instance. TDN has a website at http:// thedesignnetwork.com but will also be a mobile app, and Harris said he’s also hoping to have it available though other channels, such as Hulu. Harris said he feels the home furnishings industry does a better job of offering value, selection and service than ever before, but the problem is, “We’re not reaching her. She doesn’t know home furnishings brands anymore, and she’s become detached. The pie is shrinking because we left her out of it.” Harris and his partners believe The Design Network will be the answer, and video is the right medium. CNA’s Paulsen said more than half of Internet traffic today is video-related and that will climb to 90% in three years. Glass, The Design Network’s production partner, is an Emmy-winning television host, reporter and producer who has produced more than 2,000 hours of prime time programming, including 40 television series and 65 specials, according to her biography.

10/25/2012 3:27:26 PM

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OCTOBER 29, 2012

Industry News X Showroom from p1 long-vacant factory for the former Myrtle Desk Co. He declined to disclose terms of the deal with current owner of the property, Megastep Corp. Seitz, who has been expanding his space in 220 Elm (he started with 900 square feet 11 years ago and now has 16,700) said he will continue to show there as well as in the acquired building following an extensive renovation. He hopes to have the new building ready for the April 2014 market and “if it gets done faster, that would simply be a bonus,” he said. Henrik Svendsen, CEO of Boliya USA, said his lease in the Commerce & Design building is up after the next spring market. He will then look for a one-market deal at C&D or 220 Elm for the fall 2013 market, and after that will move into the Millis Street location, as well as showing a few frames in Seitz’s 220 Elm space. Known for the elaborate dinner parties he throws for retailers and other guests during furniture market at his Emerywood home here, Seitz said he has special treatment planned for retailers visiting

X Card from page 1 anticompetitive and illegal practices engaged in by the credit card industry,” but instead “will allow that industry to continue to take advantage of merchants and their customers while blocking competition and choice.” The statement added, “In addition to the challenges for merchants, consumers struggling to pay for the basics need relief. Over the last seven years, merchants and ultimately consumers have been charged $350 billion in swipe fees by the card companies.” Ten of the 19 named class plaintiffs oppose the settlement. They are Affiliated Foods Midwest, Coborns, D’Agostino Supermarkets, Jetro Holdings, Jetro Cash & Carry Enterprises, National Assn. of Convenience Stores, NATSO, National Community Pharmacists Assn,, National Cooperative Grocers

FT057i8 3

This 48,000-square-foot former desk factory in High Point will be renovated into a showroom building by the owners of Woodbrook Designs and Boliya USA. the new space, too. The facility, while not in High Point’s showroom district, is only a 90-second car ride away from 220 Elm, he says, so Seitz will have stretch limousines parked and waiting for visitors at both locations. In addition, Seitz said he’ll serve breakfast and lunch and will offer customers free parking at the new 2.5-acre site. Seitz described the brick building as similar in feel to Market Square, down to the old large-plank wood flooring. He has hired retired architect Henry J. Browne of Char-

lottesville, Va., to handle the renovation work. Browne is a longtime friend and “the foremost living historic architect,” Seitz said, whose work includes the restoration of the U.S. Treasury building, the Lincoln Memorial and the Jefferson Memorial. Seitz estimated that the partners in the new space — who both have large container-direct businesses that sell to major retailers — will invest about $250,000 in the restoration work. “We will completely renovate it,” he said, adding that the improvements will inte-

Assn., National Grocers Assn. and National Restaurant Assn. The National Home Furnishings Assn. and Top 100 company Badcock Home Furniture & more also have indicated they are against the settlement, as have the National Retail Federation, Retail Industry Leaders Assn., National Assn. of College Stores and some large retailers including Walmart and Target. Meanwhile, attorneys for the named plaintiffs have sought preliminary approval for the proposed settlement by a federal court in Brooklyn, N.Y. The opponents said they will file a brief against that action within 30 days. The one home furnishings plaintiff in the case, Traditions Classic Home Furnishings in Minneapolis-St. Paul., Minn., and Naples, Fla., has told Furniture/Today that the proposal was a hard-fought compromise. It offers certain protections and relief and would keep

retailers and the court from a drawn-out trial that would not likely yield better results, said Traditions co-owner Michael Schumann. Under the settlement reached in July, Visa, MasterCard and several large banks agreed to pay more than $6 billion to end long-running lawsuits alleging the companies conspired to inflate interchange or swipe fees. The agreement was initially viewed as a victory for retailers as the banks and credit card companies agreed to make the payment, temporarily lower the swiping fees, and clear the way for retailers to charge more to customers who pay with plastic by adding a surcharge. But the deal quickly came under fire, partly for protecting the credit card companies from future lawsuits over the issue. Retailers also complained that the payment doesn’t come close to making up for alleged overcharging, among other things.

The three-story building features old wood floors similar to those in Market Square. grate the building’s old charm and history. For instance, Seitz said the third floor still has some old furniture finishing booths that the new owners will leave in place “as part of the ambiance and the history of the manufacturing facility.” “It will become an historic building that High Point can be proud of,” he said. Woodbrook and Boliya will likely take a total of about 16,000 square feet, or one floor, in the new showroom building. In addition, a Seitz subtenant at 220 Elm, Italian contemporary dining room source Domitalia, probably

will take about 3,000 square feet, he said. Seitz is an owner in Domitalia USA, the manufacturer’s U.S. business. In addition, at least one apartment is planned for the new building. There will probably be about 20,000 square feet remaining to lease to other tenants, Seitz said, adding that the new owners plan to offer it for $10 a square foot. “We just see this as great opportunity to show more unique product, and the fact that we will own our own building and will be paying ourselves rent — that’s not so bad,” he said.

WithIt scholarship gets boost GREENSBORO, N.C. — A $10,000 gift from WithIt co-founder Peggy Traub is making it possible for the organization to launch its first matching campaign for student scholarships, officials said. She will match two dollars for every dollar donated, up to the first $5,000, to the Marvin Traub Memorial Scholarship Fund. The fund is in memory of Peggy Traub’s father, the former CEO and president of Bloomingdale’s, who died earlier this year. WithIt, a women’s leadership development organization, has supported the industr y by encouraging young women to pursue careers in the home furnishings industry. Students in every discipline in the industry will have an opportunity to apply for the annual scholarship. “With talented students

M. Traub

P. Traub

requiring federal assistance in order to complete their degrees, giving scholarships is one of WithIt’s highest priorities,” said Violette Forman, vice president of the WithIt Scholarship Foundation. “This matching gift opportunity fueled by a generous gift from Peggy will greatly enhance our efforts to encourage others to support our scholars. By investing in our students today, our industries will earn dividends for decades to come.” Donations received by Nov. 30 will qualify for the matching funds. Tax-deductible donations may be made online at www.withit.org.

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Industry News

Sleep Train name to grace arena to broaden the reach of our Foster Kids program through greater awareness and donation events.” Sleep Train’s Foster Kids program provides items like clothes, shoes, school supplies, pajamas and gifts during the holidays to foster children.

SACRAMENTO, Calif. — West Coast sleep shop chain Sleep Train has partnered with the National Basketball Assn.’s Sacramento Kings on a new strategic marketing partnership that includes naming rights for the home arena. The venue officially becomes Sleep Train Arena in November. Financial terms of the partnership were not disclosed. In addition to hosting the Kings’ games, the arena hosts concerts, family-themed shows and various cultural events. “We are pleased to partner with the Sacramento Kings,” said Dale Carlsen, CEO of

Sleep Train. “Our team of employee-owners is committed to playing a vital role in the communities we serve. This sponsorship aligns with our interest in keeping a vibrant atmosphere of music, sports and entertainment in our region, and allows us

SACRAMENTO, Calif. — Sacramento-based bedding retailer Sleep Train has acquired eight Sleep City stores in Washington and Idaho. Financial terms of the transaction were not dis-

closed. Six of the Sleep City stores in Coeur d’Alene, Idaho, and Spokane, Richland and Yakima, Wash., will be converted to Sleep Train’s Mattress Discounters banner. Two

X Market

the company was especially pleased with response to a new contemporary collection called Atlas. “We also saw increased demand for sectionals, based on our Layla and Kayley placements, (but) the pleasant surprise of our market was the overall dealer interest in our new special order top-grain leather program,” Peters said. On the case goods front, one of the biggest market winners appeared to be Lexington Home Brands’ launch of the Tommy Bahama outdoor furniture line. Phil Haney, Lexington’s CEO, said that for many dealers, the Tommy Bahama Outdoor Living line was the most comprehensive outdoor product they had seen. Styled after the company’s bestselling indoor Tommy Bahama collections, it includes a 160-SKU mix of deep seating and sectionals, outdoor dining, bistro tables, bars, fire pits and occasional tables. Haney said the message Lexington conveyed to dealers new to the category was that this is a way to increase business for their stores in a growing and profitable segment of the industry. “There is a comfort level with the Lexington and Tommy Bahama brands that encouraged them to get into the category,” Haney added. “The volume of orders booked in outdoor was nothing less than spectacular, so we are very happy with that.” Sean Slack, executive vice president of merchandising at case goods resource Folio 21,

said traffic was up 30% compared with the company’s first market last October. He said the company also added about 20 new customers and increased its business with existing dealers, who added both new and existing groups to their assortment. In bedding, many exhibitors had a quiet market, but that was attributed to a relatively small number of product introductions. In recent years, bedding producers have saved most of their rollouts for the Las Vegas Market in January. “For this year’s October market, we were thrilled with the response we received from customers about some of our most recent launches, including Optimum and the new pillowtop model, as well as the new Sealy Gel Comfort Series line,” said Jodi Allen, chief marketing officer at Sealy. “We are looking forward to continuing this momentum into 2013 with the launch of our flagship Posturepedic line.” Michael Foster, president and CEO of case goods resource Calvin Klein Furniture, said traffic was flat from last April, his first market with the company. While attendance by domestic buyers was down, he said it was up 15% to 20% for international buyers, who represented countries such as China, Malaysia and Indonesia along with countries in the Middle East. Upholstery/Style Editor Cindy W. Hodnett, Associate Editor Thomas Russell and Executive Editor David Perry contributed to this story.

from p1 the showroom. “The right people were here,” said Burke. “Despite the attendance being down, we had a good market.” Upholstery resources appeared to do especially well at market, with buyers showing considerable interest in the leather, motion and stationary upholstery categories. “I believe this season color, uniqueness and value were all very important factors in the retailers’ choices,” said Denise Alala, vice president of upholstery at Drexel Heritage. “Upholstery is a competitive arena at all different price points and we are successful when we create unique styles with distinctive textiles that are not found throughout the market place.” Anthony Teague, senior vice president of sales and merchandising at upholstery resource Jackson Furniture, said his company had success with six new stationary upholstery groups and an equal number of new motion groups, which are sold under the Catnapper brand name. “Our focus was on comfort, and our dealers responded very positively to that,” he said. The Catnapper line’s biggest hit, according to Teague, was a motion sofa with gel-infused foam in the seat cushions. It can be upgraded by adding a third reclining seat and power mechanisms. Paul Peters, product portfolio director at Broyhill, said

FT062i8 2

This artist’s rendering shows how the new Sleep Train Arena, home of pro basketball’s Sacramento Kings, will look.

Sleep Train buys 8 Sleep City stores in NW stores in Pasco and Spokane, Wash., will become Sleep Country USA stores, another Sleep Train brand. The newly branded stores are expected to open on Nov. 7. The new stores will bring Sleep Train’s store count to 273. “Acquiring Sleep City’s Washington and Idaho locations allows us to continue to expand in growing mar-

kets where we can enhance our consumer connections and provide residents with more convenient locations for quality sleep products,” said Dale Carlsen, CEO of Sleep Train. “We are pleased to welcome Sleep City’s new employees to join our employee-owned team, and proud to extend the reach of our Sleep Country USA Foster Kids program in these new locations.”

X Ikea

business opportunities,” the retailer said in the report. Ikea said its goals include producing as much renewable energy as it consumes, spending some $1.8 billion on wind and solar projects through 2020, and improving the energy efficiency of its operations by at least 20% by the fiscal year ending in August 2015. In the United States, Ikea has increased the number of rooftop solar installations to 34 stores and distributions centers and has five more under way. There are also 33 electric vehicle charging stations available at nine of its western U.S. stores. Earlier, Ikea announced that it will shift to selling only LED lighting — longer lasting and more energy-efficient than traditional bulbs — by 2016. It now says it also will limit sales of other products to energy-efficient designs, such as induction cookers. According to a Reuters report, it also plans to grow at least as many trees as it uses to make its goods. Ikea estimates that a shift to more efficient appliances would cut an average household’s energy use by 30%, the report said. “That’s like having a 10% pay rise for most people,” Steve Howard, Ikea’s chief sustainability officer, told Reuters.

from p1 And its store count will increase to about 500 stores from about 330 today. The report also noted that Ikea expects to have 200,000 employees by 2020 (up from 131,000 today) and about 1.5 billion annual visitors (up from about 655 million). Ikea gave the estimates in a new sustainability strategy document, called People & Planet Positive, which it says is integrated into the retailer’s long-term growth plans, building on the company’s track record of sustainable practices. The plan has three focus areas. It aims to inspire and enable consumers to live more sustainable lives by, for instance, offering more energy-efficient products. The company also intends to become “energy and resource independent” and will emphasize “taking the lead in creating a better life for the people and communities,” including supporting good working conditions throughout its supply chain and supporting human rights, according to a release. Under this new direction, “We will use sustainability to drive innovation, transform our business, shape our investments and unleash new

10/25/2012 4:45:49 PM

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Industry Numbers

Restoration Hardware IPO priced at $22-$24 By Jay McIntosh CORTE MADERA, Calif. — Home furnishings retailer Restoration Hardware says it expects its planned initial public offering of stock will be priced at $22 to $24 per share, for a total value of about $114 million to $124 million. Restoration said in a Securities and Exchange Commission filing that it, along with some selling sharehold-

ers, will sell what amounts to a 13.3% stake in the company to the public. A little over two thirds of the equity will remain in the hands of the current owners, investment funds Catterton Partners, Tower Three Partners and Glenhill. Other existing shareholders will hold the remainder. The share pricing will place the company’s value at about $850 million. That is nearly five times the com-

Financial Results Earnings per share are fully diluted, and all figures in parentheses are losses or declines.

2012 $187,437,000 17,324,000 10,064,000 0.35

2011 $184,921,000 13,638,000 6,770,000 0.23

Change 1.4% 27.0% 48.7% 52.2%

2012 $91,237,000 4,391,000 2,872,000 0.40

2011 $81,520,000 3,633,000 2,378,000 0.34

Change 11.9% 20.9% 20.8% 17.6%

Quarter ended 9/30 2012 Revenues $739,314,000 Operating income 70,560,000 Net income (a) 39,910,000 Earnings per share 0.67 9 months ended 9/30 2012 Revenues $2,324,266,000 Operating income 244,437,000 Net income (b) 136,033,000 Earnings per share 2.28

2011 $704,271,000 66,643,000 31,224,000 0.52 2011 $2,144,702,000 237,257,000 115,342,000 1.84

Change 5.0% 5.9% 27.8% 28.8% Change 8.4% 3.0% 17.9% 23.9%

Flexsteel Inds. Quarter ended 9/30 Sales Operating income Net income Earnings per share

Rent-A-Center

(a) Includes restructuring charge of $7.59 million in 2011. (b) Includes restructuring charge of $12.5 million, impairment charge of $7.32 million and litigation expense of $2.8 million in 2011.

Select Comfort Quarter ended 9/29 Sales Operating income Net income Earnings per share 9 months ended 9/29 Sales Operating income Net income (a) Earnings per share

2012 $246,817,000 42,075,000 26,209,000 0.46 2012 $714,419,000 110,371,000 65,599,000 1.15

2011 $199,600,000 27,495,000 17,236,000 0.31 2011 $554,130,000 73,569,000 45,108,000 0.80

Change 23.7% 53.0% 52.1% 48.4% Change 28.9% 50.0% 45.4% 43.8%

(a) Includes CEO transition costs of $5.6 million in 2012.

2012 $23,977,000 (1,289,000) (1,904,000) (0.13) 2012 $75,186,000 (3,679,000) 33,392,000 2.30

2011 $26,051,000 (1,128,000) (1,691,000) (0.12) 2011 $80,015,000 (5,679,000) (6,215,000) (0.43)

Change (8.0%) — — — Change (6.0%) — — —

(a) Includes revenue from antidumping duties of $53,000 in 2012. (b) Includes revenue from antidumping duties of $39.4 million in 2012.

FT0638 3

through its fiscal quarter ended July 28, and has reduced its store count to 73, down from 95 in January 2010. Restoration Hardware is No. 17 on Furniture/Today’s Top 100 U.S. Furniture Stores ranking, with estimated furniture, bedding and accessories sales of $515 million in the 12 months ended July 30, 2011. That was up 25.6% from the year before, when it was ranked No. 25.

Tempur-Pedic sales down 9.2% LEXINGTON, Ky. — Bedding major Tempur-Pedic recorded a rare net loss in the third quarter as worldwide sales fell 9.2%. The company said the loss of $2.02 million or 3 cents per share was due largely to a $41.9 million income tax provision for earnings from foreign operations that will be brought back into the U.S. in the near future. In addition, about $2.43 million in costs related to TempurPedic’s proposed acquisition of Sealy were charged against earnings. Worldwide sales for the quarter ended Sept. 30 were $347.9 million, down 9.2% from $383.1 million in last year’s third quarter. The company said North American mattress sales — its largest business segment — tumbled 15% to $164.3 million. The most recent quarterly loss compares with net income of $61.9 million or 90 cents per share in last year’s third quarter.

Tempur-Pedic Earnings per share are fully diluted, and all figures in parentheses are losses or declines.

Quarter ended 9/30 2012 Sales $347,944,000 Operating income 63,447,000 Net income (a) (2,017,000) Earnings per share (0.03) 9 months ended 9/30 2012 Sales $1,061,798,000 Operating income 197,061,000 Net income 83,324,000 Earnings per share 1.31

2011 $383,085,000 96,607,000 61,949,000 0.90 2011 $1,051,135,000 254,717,000 163,293,000 2.34

Change (9.2%) (34.3%) — — Change 1.0% (22.6%) (49.0%) (44.0%)

(a) Includes $41.9 million tax provision for repatriation of foreign earnings, and $2.43 million in costs related to proposed acquisition of Sealy in 2012.

“Changes in the competitive environment that we experienced during the second quarter in North American continued to have an adverse impact on our third-quarter performance,” said Mark Sarvary, CEO. “We recently launched a broad series of new initiatives in response to the new competitive landscape in North America, and while it remains early, we are seeing some stabilization as a result.” He said the initiatives are more expensive than originally anticipated, “but we are committed to returning to growth.” Tempur-Pedic also cut its

2012 sales and earnings projections for the second time this year. The new projections put sales at about $1.4 billion and earnings of about $2.55 per share. Those are down from July projections of $1.43 billion in sales and earnings of about $2.80 per share. For the first nine months of 2012, worldwide sales totaled $1.06 billion, down 1% from $1.05 billion in the same period in 2011. Nine-month net income totaled $83.3 million or $1.31 per share. That’s down from first nine months of last year, when net income was $163.3 million or $2.34 per share.

The Brick resumes paying dividend

Stanley Furniture Quarter ended 9/29 Sales Operating income Net income (a) Earnings per share 9 months ended 9/29 Sales Operating income Net income (b) Earnings per share

date for the offering has not been set. BofA Merrill Lynch and Goldman Sachs are the lead underwriters for the offering. In an updated prospectus, the retailer said it had increased revenue by 53% from fiscal 2009 to fiscal 2011, to $958.1 million in the year ended Jan. 28, 2012. It also said it has achieved 10 consecutive quarters of double-digit revenue growth

By Larry Thomas

Ethan Allen Quarter ended 9/30 Sales Operating income Net income Earnings per share

pany’s value of about $175 million in 2008, when Catterton, Tower Three and then-CEO Gary Friedman took it private. Restoration said it will use the net proceeds of the offering, expected to be around $93 million, mainly to reduce debt. After the offering, the stock will be traded on the New York Stock Exchange under the ticker symbol “RH,” the company said. A

EDMONTON, Alberta — The Brick Ltd. will resume paying a quarterly dividend of two cents per common share to shareholders of record on Sept. 28. The holders of some 121.6 million shares will receive a total of some C$2.4 million. This is the first time the publicly held furniture and

appliance retailer has paid a dividend or its equivalent since February 2009. When it went public as an income trust in 2004, it paid unit holders a monthly distribution of 10 cents per unit, which was cut to five cents in 2008. In early August, the company announced it would pay

dividends of two cents per common share quarterly, or eight cents per share annually. However, The Brick’s board of directors will continue to declare each payment as it becomes due. It also announced the dividend will be renewed annually.

10/25/2012 3:22:56 PM

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