Home Textiles Today June 21st 2010 by Sandow Media

Monday, June 21, 2010

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

Showtime Reports Uptick BY CAROLE SLOAN H IGH POINT, N.C. — Business and traffic at Showtime here earlier this month reflected an uptick when compared with the two events held in 2009, exhibitors report. The mood and the traffic also were similarly on the positive side to the HD hospitality show in Las Vegas in April and last week’s Neocon in Chicago.

While order writing was not a prevalent trend, some were written and there was also more interest in planning future programs for both the jobber market and hospitality/contract customers, fabric executives told HTT. But the most significant change from the past year was the attitude, which for many shoppers reflected a positive, albeSEE SHOWTIME PAGE 11

Brazilian Textiles Suppliers Focused on Domestic Market – For Now BY CECILE B. CORRAL BLUMENAU, BRAZIL — With the Brazilian Reais holding its own, and in some cases outpacing the U.S. dollar, for several years now, the bulk of Brazilian home textiles manufacturers and suppliers are keeping their business focused in the domestic market and with some select neighboring South American countries. Many are planning for growth — in capacity, new product categories and importing/exporting — close to home. The U.S. market, most concur, is not worth considering — at least for the time being, especially while China poses as a fierce manufacturing competitor in the global

marketplace for imports. That is what HTT learned during the 11th annual Texfair do Brasil International Trade Fair of the Textile Market, which took place here, near the country’s home textiles manufacturing hub, in late May. For the event, the likes of Coteminas, Karsten, Teka, and Buettner, among others, created large and elaborate showroom booths — in the case of Alternburg, for example, using recycled wood for the exterior to underscore the company’s latest new lines of ecofriendly linens — and to present their newest bedding and bath wares for this spring/summer market. SEE BRAZIL PAGE 4

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Diane Von Furstenberg Home Collection Ready for its Close-up BY JENNIFER MARKS NEW YORK — Springs Global and designer Diane Von Furstenberg last week unveiled the new DVF Home collection, an extensive array of hard and soft home goods for the bedroom, bathroom, and dining room. The collection is divided into three lifestyles: urban, country and sea. Each has its own fashion bedding and accessories as well as plates, glassware, utensils, serving pieces, table linens and napkin rings. Free-standing giftware and a bakeware collection complete the line. “I don’t like to just put my name on things,” Von Furstenberg told HTT. “You have to Designer Diane Von Furstenberg and Joe Granger of Springs have a vision.” Top of bed consists of col- Global at her home collection preview in New York last week. orful print duvet covers in ei- brant, limited edition print retail. ther sateen or cotton duck at duvet covers will rotate in and DVF Home offers a variety a $249.99 retail. In addition, out of stores approximately of sheeting options, which will a stand-alone collection of vi- four times per year at a $200 SEE DVF PAGE 11

Pier 1 Produces First 1Q Operating Income in Six Years BY CECILE B. CORRAL Fort Worth, Texas — Still on a long road to recovery that began even before the recession hit, Pier 1 achieved first-quarter operating income for the

first time in the past six years. “Store traffic, conversion rate and average ticket all increased during the quarter — our customers are clearly enjoying our merchandise, our stores and our customer service,” noted Alex Smith, president and ceo, during the company’s quarterly earnings call last week. “We experienced strong performance in all merchandise divisions and all areas of the country. Our confidence level is high and we know how to keep the momentum going — continuing to reSEE PIER PAGE 23

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Home Textiles Today

Retail Briefs New ceo at Delia’s

irect marketing retailer Delia’s Inc. has promoted chief operating officer Walter Killough to ceo. He succeeds Robert Bernard, who is stepping down to pursue other opportunities. Killough joined the company’s Alloy division in March 2003 as a consultant, and served as the coo of its Retail and direct consumer division from October 2003 until December 2005. Prior to joining Alloy, Killough was at J.Crew for 14 years, serving as its coo and as an executive vp.

Kohl’s to Open Large Customer Support Center

ohl’s has signed a long-term lease on a new customer operations center in San Antonio, Texas, to support the company’s charge card and online customers. The 102,000-square-foot facility is expected to open in July.

Social Media “a Big Push” for JCP

June 21, 2010

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Target Keen on “Discretionary” Home in 2010 E NGLEWOOD , C OLO . — While its home business continued to drop a second year as a percentage of total sales – down to 19% or about $12 billion from 21% in 2008 and 22% in 2007, Target Corp. is focused on home this new fiscal year with plans to enhance the business with “other merchandise innovations” as the retailer sees discretionary categories gain momentum in the improving economy. “Target’s discretionary assortments, particularly in home and apparel, provide the perfect opportunity for [shoppers] to indulge while feeling

NEW YORK — Despite raw material price hikes and ongoing concerns about the U.S. unemployment rate, several home textiles suppliers surveyed by HTT about their expectations for the second half of 2010 see improved business in a challenging environment:

Ikea Fetes Completion of Elizabeth, N.J. Store Revamping with Promos

“We are cautiously optimistic for back half of year, assuming the economy can keep momentum. The big issue for the industry is how we work through the continuing pricing pressures on raw materials, especially cotton/yarn. Right now, for second half and spring 2011, it does not appear these pricing pressures will let

o mark the completion of the extensive renovation of its store in Elizabeth, N.J., Ikea offered each of its first 250 customers on June 12 and 13 – a gift card ranging from $5 to $250. Since February 2009, the 352,000-square-foot Elizabeth, NJ-based store has undergone phased implementation of a completely updated layout in all departments, representing the latest in Ikea’s display practices. Some of the improvements to the store – which opened in March 1990, include reconstructed interior and partition walls, racking, path revisions, merchandising displays, re-ordering of departments, temporary detours, a short-term external warehouse, roomier customer convenience areas and refurbishing of key equipment and systems. The company also enhanced its food offerings at the store’s Exit Bistro and Swedish Foodmarket.

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smart about their decisions,” said Gregg Steinhafel, chairman, president and ceo, during the discount department store chain’s 2009 annual shareholders’ meeting held here earlier this month.“Without a doubt, the economy and consumer sentiment have improved from their weakest point,” he continued. “But there are many households that continue to feel the direct impact of job loss and other forms of financial stress resulting from the recession. “However, a much larger portion of our guests did not feel such a direct impact but instead

became extremely cautious in their buying behavior. They paid off debts and carefully managed their budgets and now they are feeling optimistic enough to indulge in small ways.” Encouraged by these shifts, Target in 2010 will “remain diligently focused on applying a fresh approach to all aspects of our business,” Steinhafel continued, with many “transformational changes that are already beginning to drive traffic and sales. In many cases the changes beyond food are so extensive that completed renovations SEE TARGET PAGE 23

Suppliers Optimistic on Second Half of 2010

.C. Penney Company is increasingly relying on digital and social media formats to foster closer ties with its existing and new shoppers, the company said during its presentation at the 30th annual Piper Jaffray Consumer Conference in New York City earlier this month. Jim Kenney, svp, corporate strategy and investor relations, said that while “there is still a lot to learn” about this emerging marketing channel, he urged that “the whole press forward in new media has been pretty interesting for us, and it’s been a big push for us.” JCP claims to be the first retailer to roll out mobile coupons, which are currently being taken nationally.

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1888 Mills Fulton Allen, president consumer products division

up for anyone.”

Arlee Home Fashions David Frankel, president

“We had a very strong first half – even better then projected. We are cautiously optimistic about the second half. Consumers are clearly being very careful about spending and will continue to be cautious until they feel more secure that the future will be stable or improving.”

Avanti Jeff Kaufman president and coo

“We are finishing up a very strong first half, a result of new product introductions in multiple categories, as well as stronger sell-throughs at retail. “The economic instability

that has resurfaced in the last 45 days has certainly impacted retail business and will probably do so for the near future. Unemployment continues to be a major concern and isn’t likely to improve much in the second half. “In addition to the big economic issues, cotton and other raw material price increases and labor and transportation cost increases are also working to make the second half 2010/first half 2011 very challenging. “Having said all that, we feel we are positioned to have a strong second half based on our current placements and retail sell-through and we are bullish about our prospects into 2011.” SEE SUPPLIERS PAGE 11

Robert Allen Group Plans for Growth BY CAROLE SLOAN NEW YORK — Major growth for The Robert Allen Group will come from expanding its decorative fabric business as well as intensifying opportunities in the contract and product segments. In an exclusive interview after a recent change in senior management, Jeff Cordover – who succeeded his father Ron as chairman and ceo – emphasized that the business “is first and foremost a fabric business,” with a number of offshoots that are

strong candidates for growth. The company had been called Robert Allen/Beacon Hill when the Cordovers acquired it in 2002, and the goal at that time was to reach a billion dollars in the next decade – quadruple its revenues eight years ago. Much of that growth was planned for the Beacon Hill business, which was for interior designers as a full-service opportunity. The recession and “the fact that Beacon Hill had not be executed well” have led to the

current approach, Cordover explained. When the company was acquired, Beacon Hill was a “sister company” with a major roster of furniture companies that would be part of the mix. “Now, we’re in a period of reflection regarding the meaning of showrooms. We’re still a one-stop showroom, but where leases have come up, we’re prepared to make important changes,” he said. These could reflect the change in Atlanta, where the SEE GROUP PAGE 23

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Home Textiles Today

Brazil Textiles

June 21, 2010

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Bedding fron Altenburg

Towels from Dohler

BRAZIL FROM PAGE 1

Brazil’s textiles and apparel industry association, ABIT, which supports the event, said that based on demands from home textiles manufacturers and suppliers, Texfair is being shifted for the 2011 event into its own venue, separate of apparel companies. The fair currently comprises about 70% home textiles companies and 30% apparel. According to Rafael Cervone, director of TexBrasil, the Brazilian fashion export program, “We are creating a separate home textiles show to position it as the main home textiles show in all of Latin America. We want it to focus only on home textiles, making it more attractive to international buyers.” The question is whether Brazilian home textiles suppliers welcome potential business opportunities beyond South America. Coteminas, parent of Springs Global, came to the Texfair concentrating solely on its domestic brands — Artex and Santista. The company told HTT the idea is to “re-energize” the two brands within Latin America. Artex serves middle to upper income customer, and Santista caters more to the middle to lower income shopper. For example, sheet thread counts range from about 180 to 400 for Artex and hit about 150 for Santista. “This is the first time we are dividing the brands,” the company said. “It’s a totally new concept” More specifically, Coteminas has recently created two staffs to serve each brand separately, designing and developing products. Both divisions are based in Brazil and all of the products for each of the brands are manufactured domestically, as well. Teka, a longtime exporter, drastically reduced its business with the United States and Europe by about 80% over the past six years, said Marcello Stewers, director and vp, citing competitive reasons. Teka’s export business comprised up to 35% of sales five years ago, but today accounts for about 10% — of which the United States makes up a mere 1.5% and Europe about 2%. Other South American countries account for 8% of Teka’s export business.

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Licensed “Toy Story” bedding from Lepper

The 90% majority is dedicated to the Brazilian market. “The problem with exporting today is currency,” Stewers explained, which is why Teka plans in the coming five years to “concentrate as much as possible on our local market and make money doing business in Brazil.” In terms of U.S. business, Teka maintains 12 high-end, luxury-focused retail and license customers “just as a special service to them. These are some very special clients of ours, and we offer them a special price. But there is no profit for us in this business.” The decline in exports coupled with several other issues that include tough competition with fellow Brazilian manufacturers and Chinese imports have impacted Teka’s current capacity levels. Stewers said the company is currently under capacity, producing 22,800 per year ver-

sus 25,000. With its recent purchase of high-end Brazilian home textiles house Trussardi, Karsten is more deeply embedding itself into Brazil’s domestic market. T h e a d di t i o n i n c r e a s e s Karsten’s size by 10%, Alvin Rauh Neto, ceo, told HTT. Trussardi has long offered upscale bedding and bath textiles to Brazil’s highest-income customer base, known here as Class A, or as Neto described Trussardi’s specific customer “Class AAA.” With the new brand in Karsten’s operation, “we complete our portfolio,” Neto explained. Karsten’s other labels include “Karsten,” which services middle- to high-income shoppers, and “Casa In,” which targets lower-middle to lower income segments of customers. “Now we have a full portfolio of brands for all customers,” Neto continued. “And having Trussardi, now we gain new

high-end customers in Brazil.” Karsten is maintaining the operations of Trussardi’s Sao Paulo-based facilities, which include an embroidery plant and a sewing factory. Upon the shutting down of its New York City showroom over the past year, Dohler has shifted its export focus largely away from the United States because of currency issues, noted Divonsir Hay Junior, national sales manager. Only 10% of Dohler’s sales stem from exports, compared with up to 60% five years ago. “We’ve compensated the decline in exports with an increase in domestic business” — a strategy that seems to be working, he said, in that Dohler is running its full 1.2 tons per month capacity. “Dohler was exporting too much,” Junior said. “We came back to conquer the Brazilian market again.”

Buettner, which exports 15% of its wares, including partly to the United States, unveiled at least 40 new designs within three new collections at Texfair. The collections include Contemporary, Romantic and Botanical for bedding and bath. Also new are several teen- and tween-oriented collections featuring new glow-in-the-dark fluorescent design elements, said Maria da Gloria S. Fadel-Goya, marketing manager. Looking to t ake a bigger chunk of the Brazilian market but via a different route is 103year-old vertical manufacturer Lepper, which holds the bedding and bath licenses for about a dozen children’s brands like Hello Kitty, Batman, Barbie and some Disney properties. The company said it is actively exploring importing opportunities with Asia to add new product categories the company doesn’t already offer to its Brazilian customer base, such as soft window treatments. Enio Kohler, Lepper’s director of marketing, told HTT that the products would include synthetic fiber-made goods in categories “that complement our current offerings.” To support its future growth, the company is building a new manufacturing plant that measures 35,000 square meters in its hometown in Joinville, near here, to replace its existing 33,000-square-meter site. “We need a better layout to allow for an increased product line,” he said. The new site is slated to be up and running in the next three years. SEE BRAZIL PAGE 6

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Home Textiles Today

Brazil Textiles BRAZIL FROM PAGE 4

Altenburg, a high-end bedding and bath manufacturer, dabbled in the United States in early 2000, testing some business with select customers. But the effort didn’t stick. Today, less than 1% of Altenburg’s already limited export business goes to the United States. Up to 93% of

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June 21, 2010

the company’s total sales occur in Brazil, said Rafael Schatz da Silva, import/export manager. “The U.S. never represented a real potential for us,” he said. Instead, Altenburg’s domestic growth has sparked several of the company’s expansion efforts that include: a new manufacturing plant that is expected to be completed by this July in northern Brazil to increase pillow ca-

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pacity by 35% and the launch of a new memory foam pillow and mattress product division. But not all Brazilian home textiles companies are shunning the United States. Juma, which offers multiple categories, including bedding, decorative pillows, slipcovers, and throws, has never worked with U.S. retailers or suppliers — but would like to in time.

“We do have interest in expanding into the U.S. market,”said Jonas Alberto Purshuhn, a sales representative. Unlike the European market, the United States uses likedimensions for its bedding and bath textiles, compatible with Brazil’s market, he pointed out. Throw and bedspread company Jolitex Ternille is also showing some interest in business

with the United States. Export manager Wanderley Martins told HTT that up until about two years or so ago, the company exported some of its chenille bedspreads to U.S. retailers. “But we stopped because the market was too competitive,” he explained. “We could not compete with the Chinese. They have low, crazy prices.” For example, Martins continued, Chinese bedspread manufacturers offer their goods at 30% to 40% less in price than Jolitex. But, he added, “They are selling a polyester product, not acrylic like us. And acrylic has a much nicer quality to it.” Still, while “the world market shifts to polyester,” Martins said, “no one else can compete against them.” Working on expanding its capacity within the next five years — but not just yet for U.S. exports — is domestic manufacturer Sultan, which offers mainly bedding programs but also produces and imports soft window treatments, slipcovers, decorative pillows, throws and other coordinate pieces. The company claims to be Brazil’s largest manufacturer of comforters, quilts and coverlets. Doing business solely in Brazil, Sultan, a 40-year-old company, is building up its capacity to soon start exporting throughout South America. North America, however, does not fit into those plans. “Brazil cannot compete in price right now in North America,” explained Marcia Becker, marketing director. “Our cost to maintain our employees is very high, and we cannot offer our products to an American market for the price they demand.” Sultan currently produces one million pieces per month, which represents double the company’s capacity in 1998. In recent years the company began importing products “because we are over capacity,” Becker said. “That is the only way we have been able to meet demand.” To accommodate rapid growth, Sultan is expanding its Sao Paulobased facility — one of two in Brazil — with new manufacturing equipment from Italy, Russia and Germany. This new manufacturing and warehousing site will at first be dedicated to pillow and comforter production. But other products will also be made there in the near future. HTT

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July 13 – 15, 2010 Javits Convention Center New York, NY USA

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The only event in North America focused solely on sourcing fabrics and materials intended for home applications Provides manufacturers, retailers, jobbers, converters, contract speciﬁers and designers a one stop sourcing venue where they can locate new materials and fabrics for their latest collections Co-located with Texworld USA

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Home Textiles Today

June 21, 2010

News

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Wal-Mart Elects all 15 Board Nominees BENTONVILLE, ARK. — Wal-Mart

Stores Inc. announced preliminary shareholder voting results from its annual shareholders’’ meeting held earlier this month. Approximately 89% of outstanding shares were represented at the meeting. Shareholders approved the

election of all of Walmart’s 15 director nominees, with each director receiving affirmative votes from 87.2% or more of the shares voted. Shareholders also ratified Ernst & Young LLP as Walmart’s independent accountant, with affirmative votes from 99.4% of the shares that were represented at the meeting and

entitled to vote. Two additional company proposals, which the board of directors had recommended for shareholder approval, received affirmative votes from a majority of the total shares represented. These are: • Proposal 3 - Approval of the Wal-Mart Stores Inc. Stock

Incentive Plan of 2010 by 86.8% of the shares represented and entitled to vote; • Proposal 4 - Approval of the ASDA Limited Sharesave Plan 2000, as amended, by 94.9% of the shares represented and entitled to vote. The six shareholder proposals, which the board of directors

100% Cotton Sateen Solid-Colored Cuffs Classic, Contemporary & Transitional Patterns & Colors

recommended against, failed to receive affirmative votes from a majority of the total shares and thus were defeated. These are: • Proposal 5 – Gender identity non-discrimination policy by 13.5%; • Proposal 6 – Advisory vote on executive compensation by 19.6%; • Proposal 7 – Political contributions report by 13.5%; • Proposal 8 – Special shareowner meetings by 21.6; • Proposal 9 – Poultry slaughter by 1.3%; • Proposal 10 – Lobbying priorities report by 2.1%. The company said its official results and exact voting percentages for each of these proposals will be disclosed in a report to be with the Securities and Exchange Commission.HTT

Garnet Hill to Promote PrimaLoft Pillows ALBANY, N.Y. — Multichannel retailer Garnet Hill plans to offer a “Buy One, Get One Free” promotion, from Aug. 4 to Sept. 14, on its branded PrimaLoft Side Sleeper Comfort Pillow, and the companies are now trumpeting the deep attachment consumers have for their sleep pillows. The latest Sleep Survey, conducted for PrimaLoft by the Better Sleep Council and released in time for “Better Sleep Month” (May), revealed that more than one-third (42%) of Americans say “it’s nearly impossible” for them to fall asleep without a comfortable pillow. More than half — 54% — say they prefer to sleep on their sides rather than on their stomach or back, the survey found. “Given the importance of sleep to one’s health, relationships and workplace productivity, it’s crucial to recognize the direct connection between a comfortable pillow and a restful night’s sleep,” said Wendy Thayer, Garnet Hill public relations manager. “There are many pillow options available to consumers, and it helps to select a pillow that suits your individual sleeping style.” HTT

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Home Textiles Today

June 21, 2010

Stein Mart focused on Robert Allen Group “Home Reinvent” plan to Partners with grow home – again DwellStudio J AC K S O N V I L L E , F L A . — Stein Mart Inc. said it is aggressively working to regain the business it lost over the past five years in its home department with a recently embarked “Home Reinvent” initiative that is already making progress. During the mid-tier off-price department store’s presentation at the Bank of America Merrill Lynch 2010 Smid Cap Conference earlier this month, president and ceo David Stovall Jr. outlined several steps Stein Mart has made and is making to improve its lagging home product performance, with special attention on the home textiles categories. He said that about five years ago, home comprised about 20% of Stein Mart’s total business; today, that number has shrunk to 12%. Stovall admitted that while the home business began to show recently a “turnaround”

at other major chains, “it didn’t at Stein Mart.” In an attempt to mend this, Stein altered its home assortment to include more promotional goods. But the effort backfired. “We traded it down. We went cheaper, went real commodity. The merchandise wasn’t special, wasn’t distinctive,” he said. Stein Mart then took another approach. The retailer installed a new leadership team in its home business “and said we are going to reinvent it — top to bottom.” Today, about 30% of the home department in Stein Mart stores reflect the “reinvent” changes, with “the biggest change” in the home textiles segment, he said. By August, 90% of the home department will be updated and revamped, with “the whole gift and home décor and stationary

— all of those businesses back in place,” Stovall continued. The goal is to “return home to a destination for the Stein Mart customer. We lost that position. And we think it has a tremendous effect on our total business. The customer came to Stein Mart for that special gift and we were at mass merchant prices. So you’ll see that whole thing change.” Results are already evident, he noted. “The positive news is that we’ve seen a turnaround already in the home business,” Stovall said. “And it’s been driven by clearing out of all that low-price stuff, but most of it driven by the new receipts.” Later in the conference, Stovall added that while Stein Mart’s home area is admittedly “going to turn half as fast as women’s apparel, it will be profitable and we think it is worth the investment.” HTT

Seasonal, Consumables Propel Sales for Dollar General in Q1 G OODLETTSVILLE , TENN. — Sea-

sonal and consumable goods helped propel strong net sales and comp results during Dollar General Corp.’s first quarter. “Dollar General’s first quarter performance marks a great st art to the year,” said Rick Dreiling, chairman and ceo. “Our first quarter sales were ahead of our expectations.” For the 13-week period, ended April 30, sales increased 11.9% to $3.11 billion compared to $2.78 billion in the year-ago period. And samestore sales increased 6.7% in addition to a 13.3% increase in last year’s first quarter. The company said customer traffic and average transaction amount contributed to the same-store sales gains, and sales were strongest in the consumables and seasonal categories. Net income was $136.0 million, or diluted earnings per

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share of 39 cents, compared to net income of $83.0 million, or diluted EPS of 26 cents, in the first quarter of fiscal 2009. Excluding items totaling approximately $15.0 million relating to a secondary offering of the company’s common stock by certain existing shareholders during the 2010 first quarter, adjusted net income increased 75% to $145.4 million, or 42 cents per diluted share. Looking ahead, Dreiling said Dollar General’s “strong first quarter results, coupled with our consistent track record, give us confidence to raise our full-year outlook for 2010.” Dollar General, which operates 8,965 stores in 35 states, said it continues to expect total sales for the 2010 fiscal year to increase 8% to 10%, including an increase in same-store sales of 4% to 6%. Adjusted operating profit is expected

to increase 18% to 22% over full year 2009 adjusted operating profi t, as compared to the company’s previous guidance of 15% to 20%. Adjusted diluted earnings per share for the year are now expected to be $1.62 to $1.69, up from $1.55 to $1.63 previously forecasted, based on weighted average diluted shares of 345 million, and a full year 2010 tax rate in the range of 38% to 39%. The calculations of adjusted operating profit and adjusted diluted earnings per share exclude costs related to common stock offerings that have occurred in the relevant periods and the early retirement of long-term obligations, as applicable. The company plans to open about 600 new stores and to remodel or relocate a total of approximately 500 stores in 2010. HTT

NEW YORK — The Robert Allen high end contemporary baby furGroup has signed an exclusive nishings and in 2008 launched a design partnership with Dwell- program with Target with its sigStudio, a contemporary home fur- nature styling for popular priced nishings company. housewares and baby collections. The first collection, residential For her new affiliation with decorative fabrics in wovens and Robert Allen, Lemieux comprints, was introduced mented “I’m getting at Showtime in High to know the hospitalPoint, N.C. earlier this ity market and see there month with distribution is room for innovation, set for August. barrier shields, nano and More than 70 designs Crypton fabrics and famencompass the debut ily fabrics that can be residential collection, brought into residenand 41 upholstery and tial. We’re now putting CHRISTIANE LEMIEUX privacy curtain designs together a hospitality coldebuted at NeoCon in lection for 2011.” Chicago this week. She added, “we DwellStudio was founded in brought a new perspective with 1999 as a design house for mod- our Eclectic Mod — a group of ern home and family furnishings geometrics and vintage inspired with graphic prints and bold col- designs that mix together right ors for bedding accessories, table for this moments. The mix and linens, travel accessories and a match let designers and consumline of baby and children furnish- ers not make a mistake.” ings by Christiane Lemieux. “We’re very happy to be DwellShe earlier was design director Studio’s exclusive partner in these for Portico New York, and began market and believe their distincher career in fashion working as tive modern aesthetic will be an a designer at Isaac Mizrahi and exciting new resource for designthe Gap. ers and specifiers,” said Jeff CorThe company has grown to a dover, chairman and ceo of The $25 million brand known for its Robert Allen Group. HTT

Famous Home acquires Jossal, Expands Offerings M O N T R E A L , Q U E B EC — After focusing for the past 10 years on bath coordinate programs, Canadian home textiles supplier Famous Home Fashions is expanding into a bevy of other categories via the acquisition of Jossal Trading Ltd. By acquiring fellow Montreal-based Jossal Trading, Famous not only adds to its line several new product categories that include window panels, drapery hardware, tablecloths, table toppers, placemats, shower curtains, mattress covers and accent rugs. Jossal also offers Famous Home new business with independent and specialty customers. “We are very excited about the acquisition, and the oppor-

tunities the increased depth of independent customers creates for our business, in addition to the new categories that open up exciting opportunities to sell and grow our business with our retail partners,” said Barry Samberg, president, Famous Home Fashions. He explained that originally, 41-year-old Jossal focused its business on major Canadian ret ailers. But the company switched its focus over the past five to 10 years on independent and specialty stores. Famous Home is retaining Jossal president Joseph Salem for the next two years during the transition. Salem’s title for that time will be director of sales and product development for the Elegantia brand. HTT

6/18/2010 10:52:38 AM

Home Textiles Today

Events

June 21, 2010

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HFPA Hosts Networking Night The Home Fashion Products Association held a networking social last week at the showroom of Revman International in New York. 1. Jeff Kaufman, left, Avanti Linens, and Carl Legreca, Croscill/Ex-Cell/Glenoit.

3. From left, Tina Cadet and Kath Goshgarian, both HFPA, with Peter Roman, Revman.

5. Barry Leonard, Croscill/Glenoit/Ex-Cell, and Rich Roman, Revman.

4. From left, Linda Kulla, Bradwil; Melissa Shanon, Croscill/ Ex-Cell/Glenoit; Jennifer Simborio, Revman; and Erin Gallagher, Croscill/Glenoit/Ex-Cell.

6. From left, Amanda Greenberg and Carolina Kim, both Croscill/Ex-Cell/Glenoit; Erica Wallin, freelancer; and Lauren McVey, Croscill/Ex-Cell/Glenoit.

2. Shannon Lucus, Ex-Cell, left, and Tom Merriman, Mohawk Home.

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6/17/2010 4:56:02 PM

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Consumers Call Off Shopping Spree in May W A S H I N GTO N — After a twomonth streak in March and April that saw a spur in economic activity at retail, shoppers slowed their spending in May as the country’s economic outlook remained uncertain, the National Retail Federation (NRF) reported today. In May, retail industry sales, which exclude sales of automobiles and at gas stations and restaurants, decreased 1.4% seasonally adjusted over April but increased 2.7% unadjusted year over year. “May retail sales results rep-

resent a reminder of the uncertainly that still exists in the economy,” said Matt Shay, president and ceo of NRF. The U.S. Commerce Department’s May retail sales show total retail sales, which include sales of non-general merchandise categories such as automobiles and from gasoline stations and restaurants, decreased 1.2% seasonally adjusted over April while increasing 6.3% unadjusted year-over-year. Still, results give reason for optimism, noted Rosalind Wells, NRF’s chief economist.

“Even though May sales were not as strong as previous months, we remain encouraged by the steady pace of the economic recovery,” she said. “Ultimately consumer momentum will be tied to our economy’s ability to add private sector jobs.” While not as robust as seen over the course of the year so far, retail sales in some sectors did report slight increases, the NRF said. Sales at furniture and home furnishing stores increased 1.0% seasonally adjusted month to month and 4.6% unadjusted year over year. HTT

First Half

try for the second half of 2010. We fully expect that the momentum of the recovery from the first half of the will carry forward. We are expecting the consumer to eagerly anticipate and react to the arrival of fresh merchandise in the fall. “However, we cannot ignore the mounting pressure upwards on wholesale costs including cotton, labor, and freight. We have to take these issues into consideration and temper our optimism slightly.”

Town and Country Living

SUPPLIERS FROM PAGE 2

Bardwil Linens Nancy Kristtoff president, sales and marketing

“The retailers are planning up conservatively. Therefore, our business will be planned up conservatively, as well.”

Creative Bath Products Inc. Bob Weiss vp, sales and marketing

“2010 has been a fantastic year for Creative Bath. So far, sales are up 23% year to date. That said, it remains one of the most unpredictable years on record. “Most of our increases over last year to date sales in the first half came from items that were not on regular replenishment, but what we would consider ‘promotional.’ We are planning on a slight increase for the last six months of the year of about 5% to 7%. “My personal opinion is that the U.S. economy is much, much worse than the media is reporting. “We also feel many suppliers who are left, after the 2011 calendar year, will see tremendous growth. “As you may or may not know, the largest employer in China just increased their minimum wages by 23%. “China’s labor rates are increasing, [which is] great news for domestic manufactures like Creative Bath Products.”

Elrene Home Fashions Bryan Siegel chairman and ceo

“I am optimistic for the indus-

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John Ritzenthaler Co. Elissa Vogt vp, sales and marketing

“We have found the first half of 2010 to be a modest improvement over the first half of 2009. We expect that trend to continue into the second half of 2010.”

Maples Rugs Wade Maples co-owner

“Maples expects moderate growth for the second half of the year. This should be consistent with the industry.”

Mohawk Home Jeffrey Seagle director of marketing and product merchandising

“We have seen demand soften in the second quarter, as is normally the case in the rug category. We look forward the second half of the year and anticipate continued improvement in store traffi c and purchasing activity. The ret ail consumer is willing to make modest investments in the home, and we see signs of improvement as we move toward July and August.”

Home Textiles Today

June 21, 2010

David Beyda chairman

“We have seen an increase in our sales and sell-throughs year over year. We do expect that to continue for the balance of the year. We are cautiously optimistic as we look beyond 2010 and into 2011.”

United Weavers Diane Carleo director of sales and marketing

“We’re enthused the slow market has forced us to get real creative, but it has paid off and we have commitments for the third and fourth quarters.”

Venus Home Fashions Keith Leal vp of sales and marketing Shiv Shankaran general manager

“We are expecting sales growth for the second half. Our order position continues to improve. Price increases continue to be an on going conversation with retailers, but everyone is waiting to see who and when the retail prices will increase. “Later part of 2009 through today has been unprecedented in terms of costs from India, China and Pakistan. We have never seen such volatility or price hike. “The new cotton crop coming in later this year will be watched with great anticipation by both importers and retailers. This will decide future course of pricing in retail. We expect the pricing concern to trigger more product development to stay ahead of the curve – performance products, alternate constructions to cotton may come in.” HTT

Springs DVF FROM PAGE 1

be sold open stock. Sensational Solids, the core sheets, is a 500count cotton sateen in four colors. Snakeskin Jacquard, Batik, Ombre and Island Clover, are all 300-count prints on cotton sateen. Two consistent themes run through many of the decorative pillows: either beading with of the American Indian style or a handcrafted looking appliqué. Retailers range from $80 to $225. A series of limited edition, handmade throw blankets from India will also be available, with retailers selecting how many pieces they want per store. Retail is $299.99. The bath collection includes low-twist, ring-spun solid color bath towels in 20 colors for $29.99 as well as fashion towels

Showtime SHOWTIME FROM PAGE 1

it not exuberant, outlook for the near term — and farther out. At the Robert Allen Group in High Point, “We had a terrific response to our Showtime introductions,” said Greg Tarever, president and coo, “especially with Robert Allen@Home’s new life — especially with the Dwell launch.” Tarver added: “We were far beyond our expectations in terms of orders.” Looking at the responses from the array of markets in recent months, Mike Shelton, president of Valdese commented, “Business has improved in anticipation of better business ahead. We represent the broadest range of product and capability in our segment of the business, and we have an enhanced exposure to those markets where we choose to participate. That’s an important factor.” Overall, Shelton sees a bigger increase in business near term for residential with that segment’s anticipation of better business. “By the end of the third quarter, the biggest increases will come from residential. But contract now is somewhat better than it had been but the decline came later so we see the stronger improvement for the sector in the first or second quarter of next year.” “We were really busy and wrote nice orders at Showtime,” said David Finer, ceo, Fabricut.

($39.99), bath rugs, bath mats, shower curtains and accessories. DVF Home is slated to debut at retail in early 2011. The line aims at top-tier department stores in the United States, “then we will target the [stores] you would expect internationally,” said Joe Granger, president of Springs Global’s branded business division. The home collection will also be sold from a dedicated micro site on dvf.com. Furstenberg said she is already thinking ahead to furniture and lighting, although the former will not be brought out as fully fledged suits. Said Granger: “You need some furniture; you don’t need a lot of it.” Also on the to-do list: DVF Home stores, the first of which the designer would like to see open in New York in the coming year, to be followed by another in Brazil. HTT

“In the company’s Trend division, the Jaclyn Smith collection was very strong,” he said. “We had a nice jobber turnout and wrote some nice orders,” said Tom Hilb, president of Heritage House. “This Showtime was fine — I believe there were more people. But business was predominately closeouts.” As for the customer mix, Hilb noted that the smaller retailers have diminished in quantity as well as dollar volume. “But we’re processing lots of samples.” Jack Eger, vp for the residential side of The Victor Group, pointed to the “new innovative novelty yarns that mixed well with the iconic Craftex looks of tapestry, rug and chenille effects — a great balance.” The Victor line “had really strong plains, and the jacquards were a great complement to them.” Overall, he said, “Traffic was very good. People are now used to [Craftex and Victor] being together. Traffic included some big-box retailers, some jobbers and furniture suppliers.” “We had a very strong market,” said Gil Tavares, vp, sales for Regal. Overall, the company booked 205 appointments, with 50 in their quick shop sample showroom. “Attendance was up and response was good, and business was up.” For Regal, furniture suppliers represented 55% of the shoppers, 20% were jobbers and the balance, miscellaneous.” HTT

6/18/2010 1:53:44 PM

Home Textiles Today

June 21, 2010

News

> hometextilestoday.com

Randy Trull Retires from Glen Raven, Sunbury HIGH POINT, N.C. — After more

than 20 years of needling, cajoling and pushing for more innovation and higher fashion, Randy Trull is retiring from his untitled position as the creative force behind Sunbrella at both Glen Raven and Sunbury. At a private dinner during Showtime earlier this month, Trull said that his upcoming 80th birthday in July was the catalyst for a formal step away from his duties. But as anyone who knows him

from his half century of design work in the decorative home furnishings market also knows that “retirement” is not a word in his vocabulary. Trull began his design career in New York with the former converter Kandell Fabrics and later joined Bloomcraft, Croscill, C&A and Bates. He also worked with Ludvig Svensson of Sweden, Cameo and Richloom and designed a menswear line and a special collection for Sears Can-

ada and Montgomery Ward before teaming up with Glen Raven to develop its Sunbrella indoor/ outdoor fabric and Sunbury that developed and marketed the high fashion Sunbrella line. As Allen E. Gant Jr., principal of Glen Raven, commented during the festive evening: “When Randy joined us, we were 90% apparel. Today we’re 1% apparel. There’s been a dramatic change in markets and areas of business, and Randy led us in that way. He

continues to push and open our eyes to magnificent markets.” Along the same lines, Mark Grigalunas, svp, design for Sunbury, noted in the low-key roasting at the evening’s end: “Randy was pushing for adding pink to the color line. He always was wearing a pink handkerchief. And about five years ago, he gave up. Six months ago, the team gave in and added pink.” To commemorate the “think pink” campaign, the company

wove a special fabric featuring Trull and the letter pushing pink on a pink Sunbrella ground. True to form, Trull had the last word of sorts. Instead of a rebuttal or other comments, he played what could well be his lifetime theme song: Frank Sinatra’s “My Way.” And for those who can’t envision him in retirement, he will continue to create special Sunbrella designs for his store – Classic Designs of Wilmington (N.C.). HTT

1. Rocco Simone, left, Sunbury, with Randy Trull and Hank Truslow Jr., ceo of Sunbury. 2. Mark Grigalunas, left, Sunbury, with Matt Sergio, E.J. Victor, Tom Notaro, Sunbury, and Greg Rosendale, Glen Raven. 3. Grigalunas presenting Trull with the woven remembrance of his letter pushing pink and his picture. 4. David Swers, left, Glen Raven, with Trull and Hal Hunnicutt, Glen Raven. 5. Trull with Ted Sargetakis of Silver State. 6. Charles Simmons, left, industry consultant, with Trull.

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6/17/2010 2:33:45 PM

News

> hometextilestoday.com

Regal Fetes Barnett at Showtime HIGH POINT, N. C. — Regal Fab-

rics hosted a retirement fete for longtime decorative fabrics and home furnishings merchandiser Harvey Barnett during Showtime here earlier this month. Barnett, who early on was a merchandiser for the Clyde Pearson, then spent many years as a rep for Sunbury, “semiretired” in 2001. Thereafter, he decorated many of the industry’s high-end showrooms before joining Regal in ’02 as the company’s southeast sales rep. At the event, Gil Tavares, vp, read the poetic tribute: With a twinkle in his eye A warm friendly smile

Harvey’s been an icon of our industry And a legend for quite a while. Having decorated High Point’s finest showrooms From North, South, East and West His customers, friends and colleagues Have confirmed…Harvey is simply the best. So tonight we are all gathered here S h a r i n g wa r m f e e l i n g s , thoughts and to send A heartfelt message from your Regal family: Harvey, you will always be a great and treasured friend. HTT

Home Textiles Today

June 21, 2010

Valdese Celebrates Anniversary HIGH POINT, N.C. — Valdese Weavers celebrated its 75th anniversary under the same ownership with a gala

evening of dinner, drinks and dancing during Showtime here earlier this month. As part of the celebration, the company encouraged guests to slip on period garments and be photographed in front of a Model A Ford of the era that belonged to the great grandfather of Valdese president Mike Shelton. HTT 1

Top: From left, Herb Kahan and Steven Kahan of Regal with Harvey Barnett, Arlene Kahan and Rhonda Kahan. Bottom: Gil Tavares of Regal, standing, reading the tribute to Barnett.

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1. Dixon Bartlett, left, and Caroline Hipple of HB2. 2. Valdese’s Zack Taylor, left, with Macy’s Vicki Morris. 3. Bob Beloff, left, Kravet, with Jeannie Viars, Home Fabrics by Wesley Allen, Alice Garcia and Steve Prada, Kravet. 4. Laura Levinson, left, Valdese, with Neil Nahoum, Valdese, and Jennie Wilde, The Robert Allen Group. 5. Valdese’s Mike Shelton with the party’s star, the Model A Ford. 6. Martha Clifton, left, Valdese, with Newport/ Layton’s Corey Faul, Belinda Ballash and Richard Tamblin. 7. Brek Jacobson, left, Valdese, with the team from Spencer Enterprise – Hanna Choi, Vivian Lotts, Danielle Deyo, and Stephen Pardis.

6/18/2010 11:09:15 AM

Home Textiles Today

June 21, 2010

News

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Anti-Defamation League Honors Furnishings Retailers at New York Gala N EW YORK — Record-breaking

attendance and contributions set a positive mood at the Anti-Defamation League dinner here earlier this month. The Natonal Home Furnishings division of the ADL honored Morty and Jeff Seaman of Rooms To Go and Bob Sherman of Serta International. The dinner gala, held at the Grand Hyatt here, had a record attendance of more than 600 home furnishings industry members and raised more than $1 million, according to Beth Katznelson, director of corporate development for ADL, New York region. Among the highlights of the event was the appearance of

super model Cindy Crawford, whose namesake furniture collection is sold exclusively at Seffner, Fla.-based Rooms To Go, and a few non-competitive regional home furnishings retailers. At JCPenney, Crawford also has a major home collection — Cindy Crawford Style — with furniture offered in locations that are non-competitive with the Cindy Crawford Home furniture. She presented Seaman, RTG president and ceo, with the American Heritage award. He in turn presented his father, Morty, with the Lifetime Achievement award. Sherman received the American Heritage award from his wife, Barbara Bradford. HTT

Clockwise from top right: Former honoree Neil Goldberg, Raymour & Flanigan, with Cindy Crawford. Former honoree Joe Laneve, right, Bloomingdale’s, New York, with Jeff Seaman and Morty Seaman. Jim Druckman, left, 200 Lexington, with honoree Bob Sherman.

Gourmet Housewares Moves to Summer NYC Venue in 2011: NYIGF W H I T E P L A I N S , N.Y. — The

Gourmet Housewares Show will become a component of the New York International Gift Fair st arting in August 2011, in response to a survey of retailers. “This permanent move to summer — which is a change from previously announced plans — was based upon results of a retailer survey,” show producer GLM recently announced. “Independent specialty retail feedback was the linchpin of our decision-making process, and gourmet products buyers indi-

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cate clear support for a thirdquarter buying opportunity as a complement to other first- and second-quarter industry events,” said Dorothy Belshaw, NYIGF director and GLM senior vp. Belshaw said the survey results also indicated that primary categories of interest are gadgets, cookware, cutlery, bakeware, kitchen textiles, tabletop, serve ware, small kitchen electrics, wine accessories and barware. The Gourmet Housewares Show will run Sunday, Aug. 14 through Thursday, Aug. 18, 2011 at the Javits Convention Center.

Some 150 Gourmet Housewares Show exhibitors “will be positioned adjacent to an additional 200 relevant tabletop suppliers in NYIGF’s Tabletop & Housewares division,” the company said, noting, “In total, NYIGF offers ten divisions presenting over 100,000 lines of home, lifestyle and gift products.” For exhibitor information, contact Marc Delman, sales manager, at (914) 421-3260, or email mdelman@glmshows. com. For additional information, visit www.thegourmetshow. com. HTT

WONZ Launches Interactive Training College Online MARIETTA, GA. — Wools of New Zealand has launched an interactive, online training college designed to enhance the wool skills of retailer salespersons and mill representatives. The Wool Benefits College is equipped with information culled from the accumulated knowledge of wool experts. Within the course are 10 modules that address the natural properties of wool, including wool fiber, sheep breeds, wool versus synthetics, and natural integrity. A final exam completes the course. The Wool College is open to

all retailers, but only those participating in Wools of New Zealand’s Premier Partner Program will be able to promote their sales staff as “Wool Specialists” once they have successfully completed the college. This designation is reserved exclusively for Premier Showrooms, mill representatives and mill agents who are partnering with Wools of New Zealand to promote and sell wool carpets and rugs. The Wool College is free and accessible via Wools of New Zealand’s website at www.woolsnz.com. HTT

6/17/2010 7:03:40 PM

Make Your Reservations NOW TERIOR N I L A SH To Exhibit! B O OM L G E d. ..

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Show dates and hours:

Sunday, September 12, 10am - 5pm Monday, September 13, 8am - 6pm Tuesday, September 14, 8am - 6pm Wednesday, September 15, 8am - 6pm Thursday, September 16, 8am - 2pm

Presenting: A wide array of coordinated bedding ensembles, sheet sets, decorative accessories, and more from global finished home fashion product suppliers. Buy Direct!

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6/14/10 3:39:44 PM

Home Textiles Today

June 21, 2010

> hometextilestoday.com

PEOPLETodaY Walmart Adds Corporate Secretary to Gearhart’s Titles B ENTONVILLE , A RK. — Walmart

announced earlier this month that it was expanding the responsibilities and title of its evp and general counsel, Jeff Gearhart, with a promotion that also appoints him corporate secretary. Gearhart, 45, will replace Tom Hyde, whose responsibilities as evp and corporate secretary include the legal, ethics and global security organizations. Hyde is retiring Aug.1 after working for the past nine years with Walmart. In his new post, Gearhart will report to Mike Duke, Walmart president and ceo. Gearhart will continue as general counsel overseeing the legal department, which is responsible for handling all legal matters affect-

ing the company in its domestic and international markets. He will also continue to lead the company’s ethical sourcing program. “[Gearhart] gives excellent advice and is also known for his collaboration and people management skills,” Duke said. “Jeff gets involved in the details of our business and that enables him to make a strong ongoing contribution to our success.” Gearhart joined Walmart in 2003 and served as evp and general counsel since February 2009. Prior to that, he was the company’s svp and deputy general counsel since December 2007. Before joining Walmart Gearhart spent 14 years in private practice.

Hyde joined Walmart in July 2001 after serving as svp and general counsel of Raytheon. His responsibilities for the ethics and global security organizations will be assumed by other leaders in the company. Commenting on Hyde’s departure, Duke added: “Tom has had a tremendously successful career at Walmart, and I have seen first-hand the difference he has made. He led the transformation of the legal department into a world-class organization by recruiting and developing some of the best and brightest legal minds. His professionalism, insight and judgment have contributed to the company’s success well beyond the legal department.” HTT

New Chairman, ceo Named at Robert Allen Group NEW YORK — Jeff Cordover has

been named chairman and ceo of The Robert Allen Group, succeeding his father Ron Cordover. In addition, Greg Tarver has been promoted to president and chief operating officer, succeeding Jeff Cordover. Tarver has been executive vp, operations and general manager of commercial businesses. He contin-

ues to report to Jeff retain his current responCordover. sibilities overseeing resiRon Cordover will dential oroduct develbecome chairman opment, sales and new emeritus, a non-execbusiness initiatives. utive position, and Jeff Cordover has will continue of the served as president of board of directors. JEFF CORDOVER The Robert Allen Group Glenn Gold, execsince 2002 when Décor Robert Allen utive vp, marketing Holdings acquired the and general manager company from LifeStyle of residential businesses, will Furnishings Intl. HTT

Family Dollar Promotes Zucker to vp, IT Solutions Delivery M AT T H E W S , N.C . — Family

Dollar Stores Inc. has promoted Scott Zucker to vp – IT solutions delivery. Zucker most recently served as vp – merchandise operations. He joined the company in 2006 as divisional vp– pricing. Prior to coming to 6,700p l u s u ni t Fa mi l y D o l l a r , Zucker was a ret ail consultant at BearingPoint Inc., and before that he worked as a

buyer with Belk Inc. In his new post, he reports to Josh Jewett, senior vp - information technology, CIO. “Scott brings extensive experience in leading interdepartmental teams through his work with merchandising, supply chain and store operations,” said Jewett. “His unique blend of business and technology experience will continue to be an asset in his new role.” HTT

Kaufman Named Territory Manager for Lane Sales L O N G I S L A N D , N.Y. — Lane Sales, which represents several major flooring companies in the textiles industry, has appointed Ellen Kaufman as its territory manager for central and northern New Jersey and St aten Island. Based in Northern Bergen County, N.J., she reports to Larry Lane, president. Kaufman comes to Lane Sales from Summit International Flooring, where she was svp from 2006 to 2010. She

was responsible for distributing Van Besouw carpets from Holland both through agents and to dealers as well as calling on architects to create specifications for the products she represented. “Ellen is a very hard-working dedicated person with great people skills,” Lane said. “We have no doubt that Ellen will quickly become an important part of Lane Sales success overall and will be a great asset and resource to our dealers.” HTT

WWRD Names Fencel independents 7 W Promotes Toreno to Director of Trade Show Sales vp for WWRD, man- vp of the Americas. Three manN E W YO R K —

NEW YORK — Home textiles and

furnishings showroom hub 7 W New York has promoted Toni Toreno to director of trade show sales for the building, located on 34th Street here. Toreno joined 7 W’s team four-and-a-half years ago as marketing coordinator. It was her “success in this role, along with an optimistic ‘can-do’ attitude” that soon after earned her

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a promotion to marketing manager, working closely the building’s vp of marketing, Su Hilty. In her new stint, Toreno is responsible for all trade show activity on the 11th floor, including 7 W-produced events like the upcoming NYC Baby & Kids Fair as well as the many external shows that regularly choose 7 W as their New York venue and host.

7 W said Toreno brings “a fresh marketing perspective to this position as well as event planning expertise.” She is charged with helping the building maintain and develop strong relationships with prominent trade show producers as well as acting as the direct liaison and partner to all events taking place on the 11th floor. HTT

ufacturer of the Waterford, Wedgwood, Royal Doulton, Royal Albert, Minton, Johnson Brothers and Franciscan brands, hired Rick Fencel as vp of sales for independents, special channels and special markets within the U.S. market. Fencel will focus on the growth and development of new distribution channels and will report to Michael Craig, group

agers will report to Fencel: Austin Frederick (independents), Terry Loury (special markets) and Armand Figureas (special channels and lighting). Previously Fencel served as CEO of Lladró USA and vice president of sales at Royal Doulton USA. WWRD also appointed Lucas Updegraph as vice president of sales for national accounts. HTT

6/17/2010 7:06:16 PM

THEY’RE LOOKING FOR YOU

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SPENCER WHITTLE: swhittle@sandowmedia.com ph 336.605.1027 fax 336.605.1143

KAREN HANCOCK: khancock@sandowmedia.com ph 336.605.1047 fax 336.605.1143

s d e ﬁ i s s cla Lines Offered (Reps) Help Wanted Retail Recruitment Real Estate Showroom Space

For Sale/Lease Factoring Services Announcements Legal Notices Parts

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June 21, 2010

BUSINESS TodaY Big Lots Shies Away From “Closeout” Identity to Capture New Vendors, Shoppers N EW YORK — Looking to forge

relationships with new vendors and at the same time better appeal to shoppers, Big Lots recently altered its tagline to omit the word “closeout.” The new t agline is “Extreme Value” – a change from the prior “Brand names, closeout prices” message. During the discount chain’s presentation at the 30th annual Piper Jaffray Consumer Conference earlier this month, svp and cfo Joe Cooper discussed Big Lots’ varied efforts to shape its merchandise offering and price points to fit its “Extreme Value” approach “The No. 1 reason people shop Big Lots is for seasonal, and seasonal is not a closeout category,” he explained, also citing furniture as another product category specifically created for the retailer rather than sourced as a closeout offering “The customer does not care how we source our goods,” he continued. “They don’t understand closeouts. As a matter of fact, this year we’ve moved away from “Brand names, closeout prices” [tagline] be-

cause after consistent communication with customers, [we learned that] customers do not generally understand the concept of a closeout, or [think] it is negative … Our shopper doesn’t want cheap, she wants value.” To that point, Cooper cited other examples “We are offering better values and in some cases higher price goods,” he said. “Right now, our best selling gazebos… and grills are our highest priced because they offer value.” Forging partnerships with new vendors is one way Big Lots is expanding its product assortment beyond closeouts. The company has held three vendor summits — two in Columbus, Ohio, by headquarters, and a third in an international location — “where we try to tell them, ‘Here is where we’re going from a real estate perspective, here is where we’re going from a customer service perspective, here is where our brand is going, and here are some of our other vendors and the volume that they are doing with us.’ So that has definitely helped.”

Cooper continued, “We’re reaching out, trying to buy goods, which is not always the case from retailers. We’re trying to establish relationships. We know that there are still some vendors out there who still believe that Big Lots might not be good for their brand, and we’re breaking down those barriers one business partner to another, one by one. And our vendor summits have cert ainly helped.” Another such strategy includes Big Lots’ push for its own house brands. An example is Big Lots treatment of its proprietary Port 7 bedding and home decorative accessories program “With Port 7, we’re going after that everyday low price,” Cooper said. The latest Port 7 offering “has prime real estate [at stores]. It’s very trend-right home decorative type of product. It was very successful in our first quarter under a different name, Echo Point.” “We hope creates some buzz and excitement at the front of the store for a period of time,” he said. HTT

Same-store sales

Comps So-So in Month’s Second Week N EW YORK — Same-store sales softened in the second Johnson Redbook Index week of June as consumers Second week of June, year-over-over % change held back on discretionary WEEK ENDED 6/5 6/12 6/19 6/26 7/3 MONTH TARGET purchases, according to the Department stores* 1.3 0.0 0.7 1.3 Johnson Redbook. Discounters 4.4 3.9 4.2 4.2 Year-over-year, comps rose Redbook Index 3.4 2.7 3.1 3.2 2.7% during the week ended *Including chain stores and traditional department stores June 12 compared to a 3.6% Source: Johnson Redbook Index increase a week earlier. tin Levis, Redbook analyst. Sales of basic goods outShe described consumers as being “more stripped general merchandise and apparel, while customer traffic also declined, said Cal- defensive in their buying pattern.” HTT

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Weak Sales to Blame for Duckwall-Alco Q1 Negative Results ABILENE, KAN. — As it works on

its five-pronged strategy that includes expanding its consumables offering to increase store traffic and turnaround its business, discount chain DuckwallAlco Stores Inc. blamed weak sales for its lackluster performance during its fiscal 2011 first quarter. Net sales from continuing operations in the first quarter, ended May 2, decreased 1.9% to $113.0 million, and samestore sales decreased 2.7%. Net loss for the first quarter was $1.9 million, or 51 cents per diluted share, compared to a net loss of $50,000, or 1 cent per diluted share, for fi scal 2010’ first quarter. “First-quarter results were negatively impacted by weak sales, which reduced gross margin contribution by approximately $950,000,” explained Richard Wilson, president and ceo. “We needed to take $1.4 million in clearance markdowns to address aged inventory, and sales mix also impacted results by approximately $630,000. We continued to

make progress on SG&A expense with an overall reduction of $789,000 primarily as a result of additional savings on store labor and benefits.” He added that the company continues to be focused in fi scal 2011 “on executing five core initiatives designed to increase store traffic, maximize profitability and drive shareholder value. In addition, we have significantly strengthened our balance sheet by reducing debt.” Duckwall-Alco’s five core initiatives in place this year include: A focus on “everyday value” with a core assortment of high quality and competitively priced merchandise; driving traffic with expanded food and consumable assortments; improving profitability and prices with an emphasis on growing private label products; rationalizing assortments to provide a better shopping experience and improve operating results; and building store productivity by refi ning space allocation and productivity metrics. HTT

Retail Container Traffic to Rise in June WA SHINGTON — Import cargo

volume at the nation’s major retail container ports is expected to increase by 15% this month compared with June 2009, and double-digit increases should continue into the fall as the U.S. economy recovers, said the monthly Global Port Tracker report released earlier thos month by the National Retail Federation and Hackett Associates. U.S. ports handled 1.15 million 20-foot-equivalent units in April, the latest month for which actual numbers are available, representing a 7% increase in March and a 16% increase over April 2009. May was estimated at 1.16 million TEU – each of which is one 20-foot cargo container or its equivalent. That was a 12%

increase over last year as spring products hit store shelves and summer merchandise followed close behind. June is forecasted to remain at 1.16 million TEU but the figure would be up 15% from last year. July is forecasted at 1.23 million TEU, up 11% from last year; August at 1.27 million TEU, up 10%; September at 1.31 million TEU, up 15%; and October — traditionally the busiest month of the year — is expected to grow by 12% to 1.34 million TEU. The strong year-over-year increases are partly due to easy comparisons against unusually low numbers last year. The first half of 2010 is expected to total 6.6 million TEU, up 12% from the same period last year. HTT

6/17/2010 7:07:08 PM

Coming July 19, 2010

HOME TEXTILES TODAY’S ANNUAL TOP HOME TEXTILES RETAILER REPORT Once a year, the industry comes to a stop when Home Textiles Today’s top retailer report is published. Now’s the time for suppliers to highlight their products and services by advertising in the top retailers report. Key positions are now available.

Space close: July 2, 2010 Ad material due: July 9, 2010

Contact your Home Textiles Today manager early. Joe Carena, Publisher, 203 321 0232 jcarena@hometextilestoday.com Jeff Reeves, Manager, 336 554 5009 jreeves@hometextilestoday.com Mary McLoughlin, Manager, 646 746 7421 mmcloughlin@hometextilestoday.com

Home Textiles Today

June 21, 2010

> hometextilestoday.com

Calendar June

24 – 27

13 – 15

23 – 29 Dallas Holiday & Home Expo Dallas Market Center, Dallas (800) DAL-MKTS www.dallasmarketcenter.com

Dallas Hospitality & Contract Design Show World Trade Center, Dallas (214) DAL-MKTS www.dallasmarketcenter.com

Home Textiles Fabric Sourcing Expo New York Jacob K. Javits Center (770)-984-8016 www.HTFSE.com

22 – 26

25 – 28

ITMA Asia & CITME Shanghai New International Expo Center Beijing Textile Machinery Association www.itmaasia.com

F!NDS Dallas Temp Show World Trade Center, Market Hall, Dallas (214) 655-6116 www.dmcfinds.com

23 – 29

July

Dallas Total Home & Gift Market Dallas Market Center, Dallas (800) DAL-MKTS www.dallasmarketcenter.com

1 – 4 & 8 – 11

The Atlanta International Area Rug Market AmericasMart, Atlanta (800) ATL-MART or (404) 220-2437 www.americasmart.com

2–6

August

7–9

2–6 13 – 19 Cmc Gift & Home Market Los Angeles www.californiamarketcenter.com

Las Vegas Market World Market Center and Pavilions, Las Vegas (702) 599-9621 www.lasvegasmarket.com

14 – 21

New Designers Business Design Centre, London, UK 020 7288 6738 www.newdesigners.com

The Atlanta International Gift & Home Furnishings Market AmericasMart, Atlanta (800) ATL-MART or (404) 220-2435 www.americasmart.com

2–6 Gift+Home World Market Center and Pavilions, Las Vegas (702)599-3064 or (702)599-9621 www.giftandhomelv.com

15 – 18

Vegas Kids World Market Center and Pavilions, Las Vegas (702)599-3064 or (702)599-9621 www.vegaskidslv.com Gourmet Housewares Show The Moscone Center, San Francisco (914) 421-3200 www.thegourmetshow.com

8 – 11 ASD/AMD Las Vegas Sands Expo Center & Las Vegas Convention Center, Las Vegas (310) 481-7300 www.asdamd.com

13 – 19 New York Home

You Can Reach Those at Home Textiles Today at New E-mail Addresses. Effective June 7, 2010 Joseph V. Carena Publisher jcarena@hometextilestoday.com

Julie Murphy Copy Editor jmurphy@hometextilestoday.com

Rich Lamb Production Manager rlamb@sandowmedia.com

Jennifer Marks Editor in Chief jnegley@hometextilestoday.com

Mary McLoughlin Regional Sales Manager mmcloughlin@hometextilestoday.com

Spencer Whittle Classiﬁed Ad Manager swhittle@sandowmedia.com

Cecil B. Corral Product Editor ccorral@hometextilestoday.com

Jeff Reeves Regional Sales Manager jreeves@hometextilestoday.com

Karen Hancock Classiﬁed Ad Manager khancock@sandowmedia.com

31 years old and growing globally

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6/17/2010 6:18:24 PM

> hometextilestoday.com

Textiles Market Week 7 W New York, 230 Fifth Avenue, Jacob K. Javits Convention Center, New York, NY (914) 421-3200 www.nyhometextilesmarketweek.com

Atlanta Fall Gift & Home Furnishings Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

11 – 13 14– 19 New York International Gift Fair Jacob K. Javits Convention Center, Passenger Ship Terminal Pier 94 New York, (914) 421-3200 www.nyigf.com

24 – 26 Intertextil Shanghai Home Textiles, China Shanghai New International Expo Centre, Shanghai, China (852) 2238 9983 www.messefrankfurt.com/hk

September

Dallas Total Home & Gift Market Dallas Market Center, Dallas (800) DAL-MKTS www.dallasmarketcenter.com

11 – 13 F!NDS Dallas Temp Show World Trade Center, Market Hall Dallas, (214) 655-6116 www.dmcfinds.com

11 – 15 JSWB Shanghai Furniture Sourcing Show JSWB Global Home Furnishing Center, Shanghai, China

3–7 Meuble Paris / Maison & Objet Parc des Expositions, Paris-Nord Villepinte, Paris, France (888) 522-5001 www.maison-objet.com

12 HTT Market Kick-Off Party 6 p.m-8 p.m. Penthouse & Roof, 230 Fifth Ave. (646) 746-7421 www.hometextilestoday.com

11 – 13

13 – 14 HD Boutique Exposition & Conference Miami Beach Convention Center, Miami Beach, Fla. (770) 291-5400 www.hdboutique.com

13 – 18 New York Home Fashions Market Home Fashion Products Association N.Y. Showrooms and hotels (212) 297-2122 (Kellen Co.) www.homefashionproducts.com

Brussels Expo, Brussels, Belgium +33 (0) 1 70 38 7000 www.indigo-salon.com

14 – 17 Expolfil Deco Brussels Belgium Premier Vision S.A. 33 (0) 4 72 606500

Garment & Textile Fair World Expo Center (Dalian) Dalian Foreign Trade & Economic Cooperation Bureau www. Cigf.com.cn

26 – 28 Cmc Gift & Home Market Los Angeles www.californiamarketcenter.com

15 – 17 Textile Expo Uzbekistan UzExpo Center, Tashkent, Uzbekistan +998 71 113 01 80 www.textileexpo.uz

14 – 16

15 – 17

Mood Brussels Textirama, vzw 34 9 243 8450 www.moodbrussels.com

CAITME UzExpo Center, Tashkent, Uzbekistan +998 71 113 01 80 www.textileexpo.uz

14 – 16

16 – 18

Heimtextil Russia IEC Crocus Expo Exhibition Center, Moscow, Russia +7 (495) 721 1058 www.messefrankfurt.ru

China Textile & Apparel Trade Show Jacob K. Javits Convention Center, New York (718) 261-1181 www.nychinashow.com

14 – 17 Indigo (Home Furnishing Edition)

Home Textiles Today

June 21, 2010

20 – 23 China (Dalian) International

October 6–8 Interstoff Asia Essential – Autumn Hong Kong Convention & Exhibition Centre, Hong Kong (852) 2238 9917 www.interstoff-asia.com

4–6 Heimtextil India Bombay Expo Center Messe Frankfurt Trade Fairs India, Pvt. 91 (0) 22 2202 1377 mllie.contractor@ india.messefrankfurt.com

10 – 13 ABC Kids Expo Las Vegas Convention Center, Las Vegas, (210) 691-4848 www.theabcshow.com

CLASSIFIEDS LINES OFFERED Importer of quality bed linen in mid west is seeking Sales Reps for all territories. Quality product, great prices, excellent commissions. Email: induslinens@att.net SK Textile Inc. seeks Ind. sales Reps for Northern territories to sell our custom bedding & drapery products and services. Candidates must have established contacts and experience in the Hospitality industry. Send resume to Sherri Coates scoates@sktextile.com Visit us on the web at sktextile.com

ADVERTISE

Sales Representatives Wanted!!! Importer in home textiles for more than 35 years seeks sales reps to grow our business with discounters and off-price retailers. Must have minimum of 5 years experience and good contacts with customers in place. Please email resume to sales@bhfllc.com BEDDING SALES REPS If you have 5+ yrs industry exp with strong Major Retail Contacts, we want to talk with you. Existing BBB, Sears, Dillard’s, Target, Kohl’s, Costco accounts preferred. Call 732.356.1800; email: HNGroupInc@aol.com

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HELP WANTED

CLOSEOUTS WANTED --BOUGHT AND SOLD-Seeking Unlimited Quantities on Firsts, Irregulars and Overstocks HOME FASHIONS DISTRIBUTOR INC Mike O’Neil 207-646-1949 Email: mike@homefashionsinc.com

Benson Mills, the fastest growing table linens company in the USA seeks TOP talent in the table linens industry. Salaries are above average per industry, with high growth potential. We are in search of 3 positions

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• DESIGN DIRECTOR - must have EXTENSIVE table linens experience • ASSISTANT TO CO- CEO - must have high powered assistant job currently with some table linens experience • IN HOUSE SALES EXECUTIVE - with extensive table linens experience selling to MAJOR accounts All calls and emails are HIGHLY conﬁdential.

Call Keith 718-532-1401 or Email: keith@bensonmills.com Elrene Home Fashions, an industry leader seeks for NYC ofﬁce: TEXTILE DESIGNER Individual responsible for design and development of table linens and window treatments. Must be creative, technical and detail oriented. Strong print and woven textile background a must. Min 5 years experience VICE PRESIDENT OF SALES Seeking individual to lead our sales efforts for both table linens and window key accounts. Diverse customer base. Direct or similar experience a must. Send Resume to: casiegel@elrene.com

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Textile Designer NYC based home fashion manufacturer seeks experienced Textile Designer, 3+ years bedding experience and strong skills Photoshop & Illustrator. Resume to: newtextile@aol.com

6/18/2010 11:18:38 AM

Home Textiles Today

June 21, 2010

OPINIONTodaY View from Abroad “It looks like as the economy is moving forward, the industry is not trying to outrun the reality — and that’s good.”

HE U NI T ED STAT ES is such a large market That’s good news, of course, for the crowd of supplithat when one talks to suppliers here about for- ers attempting to grow their share of the U.S. market. I’ve aging overseas for new customers the response expressed surprise before that as many home textiles prois often “why bother.” ducers made it through last year’s tumult. But in recent So it is interesting to run up against groups of manufac- months several suppliers have expressed the view that tures who hold the same attitude about the United States 2010 is the year that will dispense with weaker compaas business opportunity. nies. At the recent Furnex home furnishings show in Egypt On the retail side, nobody seems eager to start throwearlier this month, I was hard-pressed to find ing up massive numbers of new boxes again. many suppliers who showed much enthusiasm Much of the focus this year centers around refor the idea. There were a few, but most devamping store formats (Target, Walmart), investscribed the United States as too complicated, ing in system upgrades (Fred’s) and/or reconfigtoo demanding and too price-oriented. EDITOR-IN-CHIEF uring the buying/allocation structure (Macy’s, Product editor Cecile Corral heard a simiPier 1). lar point of view expressed when she attended While more boxes equal more business for the TexFair do Brasil late last month. The half the supply side, it’s nice to see retailers are holddozen or so mills that used to service U.S. acing back on the over-storing impulse, at least for counts in the quota days have whittled down the time being. their exports to the market drastically — if not There are still a whole lot of things that need stopped them altogether. to pull themselves out of the ditch before the There’s an unfavorable currency exchange economy really hums again — housing and emfactor, but that’s not the only compelling factor. Brazil’s ployment chief among them. But it looks like as the econconsumer economy is doing quite nicely, and manufactur- omy is moving forward, the industry is not trying to outers are concentrating on servicing the domestic market. run the reality — and that’s good. HTT

Jennifer Marks

An Off-Price World

> hometextilestoday.com

360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com EDITOR-IN-CHIEF Jennifer Marks 375 South End Avenue #32U New York, N.Y. 10280 (212) 945-9151 | jnegley@hometextilestoday.com FOUNDING EDITOR-IN-CHIEF Carole Sloan 16 E. 96th St., New York, NY 10128 Tel: (212) 831-8266 | Fax: (212) 831-0814 PRODUCT EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | cbcorral@aol.com COPY EDITOR Julie Murphy (646) 805-0224 | jmurphy@hometextilestoday.com DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | dfrench@sandowmedia.com PUBLISHER Joseph V. Carena Jr. (203) 321-0232 | jcarena@hometextilestoday.com ACCOUNT MANAGER SOUTH/EAST Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER Mary McLoughlin (646) 805-0227 | mmcloughlin@hometextilestoday.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 swhittle@sandowmedia.com Karen Hancock (336) 605-1047 khancock@sandowmedia.com MANAGER, CHINA Nancy Yu Tel: 86 (0) 21 5126 0111; Fax: 86 (0) 21 6539 0321 nancy@oceaniamedia.net MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | kj_reeds@yahoo.co.in ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | dsage@sandowmedia.com E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | maxe@sandowmedia.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | aternes@sandowmedia.com VP, PUBLISHING DIRECTOR Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com

“As we watch retailers struggling to emerge, the off-price community appears to be grabbing more and more market share.”

HER E’S A PHENOMENON about to happen fered often exceeds the fashion/value equation of their mainin the home furnishings world, and probably it stream competition. will happen first in the realm of home textiles. Most industry watchers are familiar with the long-standing The newsmaker will be the first off-price retail- and highly profitable (for both sides) relationship between an er to acquire an exclusive for a major designer or celebrity uber design house and a key off-pricer. It’s one that has existbrand — one that will be a launch in the home arena first, ed for years, and probably will continue for eons. or one that has legs that take it from that retailer’s apparel side But as one looks at that off-pricer and its competitors — to the home world. each of whom is growing in both product acumen, physical As we watch retailers struggling to emerge from the nasti- space and marketing finesse — we’re certain to see major ness of the economic realities of the past couple of changes in how the supplier base and the designyears, the off-price community appears to be graber egos confront these growing retail bases. bing more and more market share. Just the other day, a senior department store Earlier in this downturn we saw the emergence exec lamented the loss of one of his key, youngFOUNDING of the retailers whose nameplates included the er buyers to TJX. Why? Because the off-pricer is EDITOR-IN-CHIEF word “dollar” in some way. There was a definite opening skillions of stores outside of the United appeal to an ever-increasing segment of the AmerStates, hiring bright young buyers to merchandise ican consumer base. them and bringing a host of new ideas and challenges to reAnd while the economy seems to be improving a tad, tailing where they are so sorely needed. don’t discard those guys as “dead meat” from a nasty era. By working both in this country and overseas, the exciteThey’re going to be around for a long, long time for many ment level, challenges in development and just getting a taste U.S. consumers. of how the rest of the world lives and works is an experience But it’s the off-pricers that are intriguing. As we watch their that conventional retailing can’t compete with. numbers grow — both in terms of store count and dollars Just imaging the knowledge and fashion experience that generated in sales and profits, they are a force to be dealt with these young generation retailers can bring to the table with from a merchandise and marketing perspective. the understanding of how brands and celebrities work in the The sophistication of the marketing efforts rivals the best mainstream — and translate that approach to the off-price of the mainstream retail community, while the product of- world. HTT

Carole Sloan

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SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow COO AND CFO Scott R. Yablon VP CREATIVE AND EDITORIAL Yolanda E. Yoh EVP, GROUP PUBLISHER James N. Dimonekas

SUBSCRIPTIONS: U.S.A. (866) 456-0405 All other countries: (515) 247-2984 HTTcustserv@cdsfulfillment.com FAX SUBSCRIPTIONS: 1-866-310-7181

THE WEEKLY BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY® 360 Park Avenue South, New York, NY 10010 Telephone: (646) 805-0227 Fax: (646) 365-2307 USPS 497-490 HOME TEXTILES TODAY (USPS 497-490) (ISSN 0195-3184) is published 30 times a year except for the weeks of 1/18, 2/1, 2/15, 3/15, 3/29, 4/5, 4/19, 5/3, 5/17, 5/31, 6/14, 6/28, 7/5, 8/2, 8/23, 8/30, 9/20, 10/4, 10/18, 11/1, 11/15, 11/29, 12/13 and 12/27 plus extra issues 1/26 and 11/22, by Furniture/Today Media Group, 360 Park Avenue South, 17th fl., New York, NY, 10010 a subsidiary of Sandow Media LLC, 3731 NW 8th Ave, Boca Raton, FL 33431. Periodicals postage paid at New York, NY, and additional mailing offices. HOME TEXTILES TODAY copyright ©2010 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $169.97; 1 year, other countries $325.99 for surface mail and $525.00 for airmail. All payments must be made in U.S. currency. Subscription inquiries: HOME TEXTILES TODAY, PO Box 5879, Harlan, IA 51593-1379. Phone: (866) 456-0405. HOME TEXTILES TODAY and THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY are registered trademarks of Sandow Media LLC, used under license. Sandow Media LLC does not assume and hereby disclaims 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. (Posted under Canadian International Publication Agreement No.4202803. Sandow Media/CDS (Mint Hill) POSTMASTER: Send address changes to HOME TEXTILES TODAY, P.O. Box 5879, Harlan, IA, 51593-1379 Email: HTTcustserv@cdsfulfillment.com. Return undeliverable Canadian addresses to: RCS International; Box 697 STN A, Windsor Ontario N9A 6N4. Printed in the USA.

6/18/2010 2:01:21 PM

News

> hometextilestoday.com

Crypton Signs with Richloom W EST B LOOMFIELD , M ICH . — Crypton Inc. has signed a licensing agreement with Richloom Shanghai Trading Co. to produce Crypton high-performance fabrics in Hangzhou, China for distribution in Asia, Europe, and the Middle East. Richloom Shanghai, in addition to producing its own Crypton fabrics, will finish fabrics for other fabric suppliers at its facility

in China, said Jim Richman, ceo of Richloom Fabrics Group. Until now, companies that were manufacturing products in China were not able to easily access Crypton fabrics there because of cost and time-consuming production factors. “This licensing agreement allows Crypton to meet the growing global demand for Crypton high performance fabrics,

and it represents a significant opportunity for our customers and business partners,” said Randy Rubin, the company’s co-founder. “Richloom is excited to partner with Crypton to be the first producer of Crypton fabrics in China and to expand its portfolio of fabric offerings with Crypton in Asia, Europe and the Middle East,” said Richman. HTT

HTT Parent Readies Furniture Publication for China N EW YORK — HTT sister publication Furniture/Today will launch a Chinese language version of its publication in September. Furniture/Today China will beproduced in concjunction with Oceania Media Limited, which is also HTT’s sales agent in China. Distribution will take place throughout mainland China, Taiwan and Hong Kong.

“Furniture/Today’s ability to consistently deliver the news, statistics and analysis that the industry relies on makes it the perfect vehicle to provide similar content, both in print and online, to the burgeoning home furnishings business in Asia,” said Adam Sandow, ceo of Sandow Media, which recently acquired Home Textiles Today and Furniture/Today as well as Home Accents Today, Gifts

HTT

Robert Allen

segment of the business” – continues to be a focus but not as important, he explained. While the company primarily focuses on its own brands, which include Robert Allen@Home, Robert Allen, Beacon Hill, Robert Allen Contract and Ametex, licensing is growing where it makes sense, he acknowledged. Currently, the Larry Laslo collections are very important and strong, Nautica is growing in importance, and the newly launched Dwell program “brings a very important contemporary fresh look and merchandising that is compelling and different from the Robert Allen niche,” he said. In addition, Robert Allen@ Home designs are licensed to JLA Home for bedding and window now, “but we’re also interested in bath and rugs,” said Greg Tarver, who was elevated to president and coo when Jeff Cordover moved up. “We went with JLA because of their expertise and background at retail. The bedding and window collections are doing quite well at Bed Bath & Beyond. They liked the classic look of our designs, and the brand also represented trend colors,” he explained. Overall, the company is going to focus on niches with the most opportunity. “We now have balance and a clarity of communica-

tion as well as a spirit of entrepreneurial activity,” Cordover added. “Today we are among the broadest players in the business regarding product focus and a balance with expertise in each niche.” Other niches include the Soft Home program that does fabrication for finished product for window and bedding – but not upholstery. “It’s very successful but difficult to manage,” Cordover aknowledged. The company also participates in the Shade Store products in showrooms as well as on the Shade Store’s internet site and catalogs. “It’s a complement to the high end and approachable for interior designers. It’s simplified the ordering process and there’s a network of measuring and installation people.” The company also has a growing relationship with the Sherwin Williams paint program. “It’s important in merchandising fabric and paint in terms of color,” he said. And while Ron Cordover has retired as chairman and ceo, he remains with the company as chairman emeritus. “He is the principal inspiration for this change, and we will have him focus on the big picture versus day to day,” Jeff Cordover said. HTT

GROUP FROM PAGE 2

square footage was reduced for furniture, but the fabric presentation remained the same size. But Cordover hastened to add, “This is not a firm, universal policy.” Remaining key furniture suppliers include E.J. Victor, Ferguson, Copeland, Swaim, Kindel and Woodland, housed in 18 company showrooms in the U.S. and Canada as well as one in London. “It’s a modest but stable and very important part of our mix,” Cordover emphasized. A significant part of its importance, while contributing less than half of the total volume “is serving as a market presence as well as driving sales – independent of volume.” The rest of the company’s designer business is done through 45 agent showrooms in this country and more than 50 in the rest of the world. In addition, “we have a very important sample book program.” “We are focusing aggressively on the commercial side of the business – adding architecture and design and health care in addition to our hospitality business, which is a strong suit for us,” Cordover added. Converting – “once a very big

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Home Textiles Today

June 21, 2010

& Decorative Accessories, Kids Today, Casual Living and Playthings. Kevin Castellani, the B-toB group’s vp and publishing director, described the new title as “the first true gateway publication that not only provides market intelligence, but also facilitates commerce between key home furnishings suppliers in Asia and the United States.”

Pier One PIER FROM PAGE 1

build our profitability one sku and one customer at a time.” Pier 1’s operating income for the first quarter ended May 29 was $8.3 million compared to an operating loss of $26.7 million last year. The company, which operates 971 stores in the United States and 79 in Canada, generated sales growth of 8.9% to $306.3 million. More significantly, comps grew by 14.3% compared to a 7.5% comp decline last year. Net income fell to $7.7 million, or 7 cents per share compared to $29.3 million, or 32 per share, for the same period last year, which included a $47.8 million gain on the repurchase of debt and a $10.0 million litigation recovery. Analysts had projected a first-quarter loss for Pier 1. Smith attributed the quarter’s sales increase primarily to steady gains in store traffic, conversion rate and average ticket. “We have for some time demonstrated that we can run a tight ship and expand our merchandise margin. What has been harder to demonstrate, thanks to the recession, is our ability to grow sales,” Smith admitted. “Over the last quarters, with some help from the economy, we’ve shown that we can grow sales.”

Target TARGET FROM PAGE 2

resemble a brand-new Target store.” Food, a key sales driver over the past year, is being enhanced further this year. Another approximately 350 Target stores will include the “PFresh” program in 2010. In home, Target recently revamped the department, where “we’ve clarified the assortment and aligned each style with best segments, all within a more open, visually compelling department that features…inspirational signage and more opportunities to touch and feel the products,” Steinhafel explained. Also, this year Target expects to open 13 new sites, which net of store closings and relocations will result in 10 new sites. Among those is Target’s

He cited Pier 1’s 13.7% comp store sales gain in last year’s third quarter followed by a 6.5% comp gain in the fourth quarter. “We are seeing improved sales and profitability in all merchandise areas,” Smith continued. “It’s great to see the consistency throughout the store, which is something we’ve been striving for some time.” He credited Pier 1’s buying team and planning and allocation team with achieving the consistency, as they “continue to execute better, not only as individual teams but equally as a cohesive unit. They are doing a good job of balancing careful thought and analysis with an entrepreneurial merchant spirit. I know they’ll get even better.” But Smith warned investors and analysts that results might now be as strong during the second quarter, as the retailer samples a different sales approach this summer. “We are not having a Pier 1 Imports sale this year, just a seasonal clearance,” he announced. “So the margin rate will be above last year. That said, please don’t expect a 58.6% margin in the second quarter.” Pier 1 is opting out of its annual clearance event, Smith said. “To get rid of an annual sale is a big deal for us,” but one the retailer is willing to try as part of its business turnaround initiative. HTT

“highest investment store” yet, which is slated to open in the coming six weeks in New York City’s Spanish Harlem neighborhood. “We’re not bashful about building in high-density areas,” Steinhafel explained to an investor during the question-and-answer segment. “We get the sales and profit associated with more guests coming to those stores.” Looking ahead to the next decade, Target has outlined several multi-dimensional strategies aimed at driving long-term growth. These include: • Refreshing the existing store base; • Continuing to expand current formats in suburban trade areas; • Testing smaller store formats in dense, urban markets; • Exploring future opportunities for international expansion. HTT

6/18/2010 2:00:48 PM

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