Home Textiles Today November 19th Issue

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Monday, November 19, 2012

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

Online Pad/Pillow Business Grows But With Provisons

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| Vol. 33, No. 25 | $8.00

Gilt Debuts its Own Branded Collection

BY WAYNE MARKS NEW YORK — When it comes to how the pillow and pad category is performing in the thriving e-commerce space, the answer seems to be “it depends,” but there’s a general consensus that the business is growing. “Market-share wise, we see a similar amount of pillows and pads bought online as in stores. One exception would be feather beds and fiber beds, where we see “We see a similar more sales onamount of pillows line due to the and pads bought size of the item online as in stores. as well as conOne exception venience,” said Stefan Hunter, would be feather Downlite’s diSTEFAN HUNTER beds and fiber Downlite rector of ecombeds.“ merce. Bret Kelley, president of White Loft, a maker of silk comforters, pillows and pads, told HTT, “Pillows are the most personal thing on the bed. It’s like buying shoes.” Making the point that customers often want to feel and touch and try out a pillow at the point of purchase. Nevertheless, he continued, “We’re definitely seeing the trend of online, but more so in comforters than in pillows and pads.” Andy Schantz, ceo/chief product officer, Allied Home LLC, pointed to a significant presence of pillow and pads online. Most online retailers can expand assortment significantly, he noted, saying while there’s definitely high quality on the floor at major reSEE PADS PAGE 12

Inside This Issue JCP: Price Tweaks A Tactic, Not a Strategy Change ........................................................ page 2 HFPA Annual Meeting Produces Slates, Stats And School ...................................... page 2 A Tweak? Or a Twist? ........................................................... page 4 Trade-Offs.............................................................................. page 4 Carpenter Co.’s New Video Carries “SleepBetter” Message ........................................................ page 5

BY WARREN SHOULBERG N EW YORK — Signaling the latest step in the evolution of the online flash sale sites, Gilt last week introduced the Gilt Home Collection, a group of furniture, rugs and decorative accessories designed by Tom Delavan, creative director for the company. This marks the first time Gilt has sold prod-

uct under its own name. Since its launch in 2007, Gilt — like many of its similarly modeled competitors including OneKingsLane and RueLaLa — has focused on selling nationally branded goods, touting its discounts which are only available for a limited amount of time and involve a finite amount of goods. Gilt’s launch comes as other flash sites are SEE LAUNCH PAGE 23

Round Three: Marketing NEW YORK — In August, Home Textiles Today profiled six new companies that were first-time exhibitors at the New York International Gift Fair. They are also contestants in HTT’s new “America’s Next Great Home Textiles Company” series. Industry veterans from the areas of showroom design, product development and marketing visited each of the companies during the show at the Jacob Javits Convention Center here. In the Sept. 24 issue, the showroom designer Beth Darragh rated the contestents’ booth designs. In the Oct 22 issue, veteran home textiles designer Patricia Feiwel weighed in on product design. In this issue, Carolyn D’Angelo — an industry veteran in marketing — assesses the contenders on four criteria: product, price, place and promotion. Her evaluations can A SPECIAL REPORT be found on pages 6-7.

America’s Next Great Home Textiles Company

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11/15/2012 4:19:40 PM


News JCP: Price Tweaks a Tactic, Not a Strategy Change

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Home Textiles Today

N E W YO R K — JCP ceo Ron Johnson held his quarterly sitdown with analysts here earlier this month to discuss what he described as two businesses: the old JCPenney, “which is a promotional department store,” and the new JCP, “which is a start-up.” Insisting the new JCP is not retreating from its streamlined pricing strategy and elimination of promotions, he described a series of steps that certainly lean in that direction. • While the customer "knows what the right price is" for merchandise, she still likes to see a comparison price. So signs are going up listing the manufacturer's suggested price (with a slash through it) along with JCP's everyday price. This is still Fair + Square pricing, said Jonshon. It just gives the customer a point of reference. • When a national brand holds a national promotional event, JCP will take part. When Jockey does its semi-annual sale, at JCP the

November 19, 2012

signage will read: “Now 25% off our Fair + Square price, provided by Jockey.” • Black Friday is "an American institution," and JCP will be participating. "And it'll be a doozy," said Johnson. "We'll have some of the lowest prices in JCPenney history." • After a year in which JCP has run no promotions, there will be one promotion that runs from Black Friday through Dec. 23 called Merry Christmas America. Although this is a single promotion, a large portion of seasonal merchandise across the store will carry lower prices. • The $10 offer JCP sent out in October via email and direct mail was a gift, not a coupon. It was also a test. JCP may well do it again. "I don't want to feel like I'm breaking some promises with the retail gods," said Johnson. • And free in-store haircuts for kids are back. They began Nov. 4 and will be offered every Sunday going forward. HTT

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JCP to Begin Breaking out Numbers for Home New York – The home department at JCP is still on track for a major overhaul in spring 2013, but in the meantime it generates the lowest productivity in the store, with sales per square foot somewhere near the $69 mark. Exactly how the department is faring will become more apparent in the company’s fourth quarter report, when JCP will begin breaking out some financials for home, apparel and as-yet unspecified categories, ceo Ron Johnson told analysts at a quarterly review meeting here earlier this month. Although Martha Stewart topped the list of home brands flashed on the screen during the presentation (the others were Michael Graves, Jonathan Adler and Bodum), there was no discussion of the Stewart/Macy’s dispute and how that might impact Stewart brand identification at JCP. During the webcast, which is available online in the investor section of JCP’s site, Johnson led viewers through a virtual tour of the company mock-up, which for the first time included a portion of the home department. The soft home segment is discernible only in the distance in the closing seconds of the video. Johnson described the home makeover as “perhaps the most exciting area” in the store. In addition to shop-in-shops, the department will also feature classification merchandising, he said. “It’s very different from what we created before,” he added. HTT

HFPA Annual Meeting Produces Slates, Stats and School BY WARREN SHOULBERG N EW YORK — There was business and textiles industry enlightenment on the agenda at last week’s annual meeting of the Home Fashion Products Association, the industry’s trade organization.

Some three dozen HFPA members and guests were on hand for the event, which saw the confirmation of a new presidentelect and board members, as well as presentations from North Carolina State University’s textiles program and the NPD Group. Keith Sorgeloos of Home-

Tracking Textiles BABY, IT’S COLD OUTSIDE

Norman Savaria, ceo of WestPoint Home, is HFPA’s incoming president.

Sales of Winter Warmth Products Are Off But Average Selling Prices Are Up

Comforter

$40.20

Electric Blanket

Quilt

$39.70

$35.05

Bedspread/ Coverlet

Nonelectric Blanket

$34.51

$18.43

Bed Throw

$17.36

In the 12 months ending Sept. 2012, sales of these products declined 16% reflecting last year’s mild winter compared to the harsher weather a year before. But prices were up 7-25% for the period compared to the year before. Source: The NPD Group, Inc. / Consumer Tracking Service. 12 months ending September 2012

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Source and the current HFPA president announced that Norman Savaria, president of WestPoint Home, would be the next president of the group, taking over the helm in January 2014. In addition to reelecting eight existing board members, three new board members were added: Spencer Foley of CHF, Harry Kartus of Pem America and Jeff Kaufman of Avanti Linens. Sorgeloos said the association, after completing work on voluntary standards for terry towels and

bed sheets, is now working on a measure for rugs, but no completion date has been announced. Other association business included a legal update from Bob Leo, the group’s counsel, who brought members up to date on a variety of issues including the status of flammability legislation at the federal and state levels, care labeling requirements and trade developments. Next up was Dr. Blanton Godfrey, dean of the College of Textiles at North Carolina State University. His presentation — the first the school has ever made to the HFPA and part of its efforts to take a more high profile position within the New York-based home textiles community — touched on a wide number of programs and projects the school is currently involved in, in both the woven and non-woven areas. Dr. Godfrey said in addition to extensive testing and laboratory facilities, the school is actually doing some production work for textiles companies on a contract basis. It is also working with other schools around the world, including the Fashion Institute of Technology in

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11/15/2012 4:44:27 PM


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Home Textiles Today

November 19, 2012

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OPINIONTodaY A Tweak? Or a Twist?

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ET ME STA RT W I T H T HIS : I am rooting for Ron Johnson and the JCPenney/JCP ceo’s strategy. I hope he does transform the company. I hope he does create a breathtaking, 21st century format for department store retailing. I want to walk into JCP — the moniker for the future, completely fresh format store than consists of 100 shop-in-shops — and be so blown away that my purse pops open of its own accord and my debit card whisks itself through one of those nifty iPads the company’s free-range associates will be using to check out shoppers on the spot. I’d also like a little frankness. The original conEDITOR-IN-CHIEF cept of straight-up EDLP introduced in February did not work. Just as it has not worked for so many others before. The “tweaks” since applied to the pricing strategy are, in fact, a retreat. You can call a $10-off email offer a “gift,” but it’s still a coupon. Especially when you acknowledge you’re probably going to do it some more. You can say your holiday strategy amounts to a single, weeks-long promotional event, but when you promise it will offer the lowest prices in the company’s history across every department in the store, you’re engaging in standard-issue holiday door-busting. When you revise your price placards so shoppers can compare the everyday price to the suggested price, that’s called discount merchandising. A couple of weeks ago, Johnson was back in New York for his quarterly face-to-face with the analyst community, and he presented these initiatives as “tweaks.” C’mon. The other thing that stood out for me about what Johnson had to say at the meeting was this: For the first time, he dropped the pretense that JCP is trying to cater to its traditional customers while wooing new ones. How do we know? Because for the first time since the company’s big “Fresh Air” presentation of the new vision eight months ago, he did not utter those words. And frankly, since the loyal JCPenney customer of yore (meaning January 2012 and back) only shopped the store four times a year, how much was there to hang on to? So, implicit in that is the idea that JCP is taking a flying leap. My fingers are crossed, and I’m hoping for a happy landing. HTT

Jennifer Marks

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Trade-Offs

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HE DEL ICAT E BA L A NCE that has been the Asian sourcing model for most American companies in the home textiles business is about to change…again. And this one is a biggie. There are of course some large, overriding issues impacting trade: A new leader in China, the re-election of President Obama in the U.S. and the overWarren all slowdown in the globShoulberg al economy. But three very specifPUBLISHER/ ic factors are impacting EDITORIAL DIRECTOR the way America deals with Asian sourcing nations, particularly China. Each is not mere speculation, but cold hard fact, and each will have a reverberating effect on what happens with India, Pakistan and other countries that have been major sources of home textiles supplies. 1. The continuing collapse of the Common Market Economy in Europe. At the recent Canton Fair, orders from European importers were reportedly off 10%, coming on the heels of previous drops over the past 18 months. All of those Asian suppliers that previously said they would rather deal with Europe than the States — because business there is a little less cutthroat and there’s more slack on consumer acceptance of higher prices – no longer have an outlet for EU business. Country after country is experiencing downturns throughout Europe, like so many dominoes, and unless you’re an Asian supplier who sells almost exclusively to Germany, you’re in trouble. The European meltdown will impact all Asian exporting nations. 2. The China-Japan political standoff. In

case you’re not following world geopolitical headlines, China and Japan are fighting over a few scraps of rock in the Pacific, each claiming to have sovereignty. Right now Japan controls them and that is causing a massive boycott of each nation’s exports to the other. Japan is feeling it the most in industries like automobiles and travel, but China is getting hit pretty hard, too. At that same Canton Fair, orders from Japanese countries were off a reported 30%. The U.S. doesn’t import a whole lot of Japanese textiles products so that’s not the impact here. But what is playing out is that Chinese exporters have to find new markets for their products, and guess where they are going to look? While this issue primarily impacts Chinese companies, everything is connected these days, so it won’t be isolated to just these two countries. 3. The Chinese middle class will be arriving a little later than expected. This one is a bit more amorphous and hard numbers are difficult to come by, but nobody will dispute the fact that the big bubble of the growth of the middle class in China is going to be delayed from original projections. By how much and for how long is just speculation. It’s happening and it’s happening right now. This impacts not just Chinese companies but those elsewhere in Asia who were hoping to supply this demographic with consumer products. Put all three of these factors together and they equal an Asian sourcing model in transition. Up until very recently, exporters had many directions in which to go to gain business. Increasingly, they have one: East to the U.S. The American economy may not still be anything to write home about, but it sure beats the alternatives for Asia. HTT

11/15/2012 4:31:51 PM


News

> hometextilestoday.com

Retail Briefs

Carpenter Co.’s New Video Carries “SleepBetter” Message R ICHMOND , VA . — Carpenter Co.

and its Sleepbetter.org site have teamed up with YouTube stars Rhett & Link for a new video to broadcast the “SleepBetter” message to its customers and site viewers. The result is what is said to be the first ever side-by-side “Spot the Differences” video on YouTube. Staged as a music video for the original song “Sleep Tight,” the video “tells the whimsical tale of the Higgenbottem family who is looking for a good night’s sleep before a ‘big day,’ only to be interrupted by all-night sleep intruders — Rhett & Link in costume,” Carpenter and Sleepbetter explained. The twist: A split screen that at first glance looks like the same footage but upon further inspection has dozens of differences throughout for viewers to find. “In fact, there are so many differences that the video must be replayed in order to spot them all,” they said. The video can be found at http://youtu.be/ UBYU-6wHufQ or by searching online for “SPOT the DIFFERENCES Music Video - Rhett & Link”. Dan Schecter, vp president of consumer products at Carpenter Co. and creator of SleepBetter. org, said the video “fits into the long line of successful outreach tactics in our multi-year dialogue with America about the profound benefits of sleeping better, and we expect it will benefit the entire industry as the message spreads.” The video drives viewers to the SleepBettter Facebook page – facebook.com/sleepbetter – where they can access the “Answer Key” video after entering their guess for the total number of differences, and thereby entering a contest for SleepBetter bedding products and a $4,000 cash prize. SleepBetter, which boasts almost 200,000 fans on Facebook, said it will market the program in all of its social media channels, including on SleepBetter.org and on its Facebook page as well as targeted YouTube ads and online banner advertising in the bedding trades. HTT

Gift Card Biz Keeps on Giving

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hoppers told the National Retail Federation (NRF) in a recent survey that they plan to spend more than ever on gift cards, especially since retailers are increasingly offering more ways to personalize and deliver them as holiday gifts. NRF’s 2012 holiday consumer spending survey, which was conducted by BigInsight and polled 9,383 consumers from Nov. 1-6, found 81.1% of shoppers will purchase at least one gift card and will spend an average of $156.86 on gift cards — the highest amount in the survey’s 10-year history. Total spending on gift cards will reach $28.79 billion. A record number of consumer said they will give their friends or family members a gift card for an online merchant (11.2%) and coffee shops (18.1%). Others will buy gift cards for department stores (39.1%), book stores (20.8%), grocery/gasoline stores (12.6%), and discount stores (14.2%). And 33.3% of shoppers will send friends and family for a night out with restaurant gift cards. According to NRF’s first holiday survey, released in October, six in ten (59.8%) of consumers polled said they would like to receive gift cards this year, up from 57.7% last year.

West Elm Opens First Indiana Store

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ome furnishings retailer West Elm opened a new store in Indianapolis on Nov. 15, its first in Indiana. The unit is located in The Fashion Mall at Keystone at 8702 Keystone Crossing. Through a partnership with Etsy, the store features a locally made collection of decorative accessories from artists in the Indianapolis area. The store at The Fashion Mall at Keystone is the eighth new West Elm store this year.

Sears Holdings Completes Partial Spin-off of Interest in Sears Canada

S The new video, top, is the second Rhett & Link have created for SleepBetter.org. A related contest, above, lends an interactive element to the campaign.

Karastan to Expand, Remodel Atlanta Showroom S UGAR VALLEY, G A . — Upscale

area rug designer and manufacturer Karastan is remodeling and expanding its flagship showroom in Atlanta at the AmericasMart. The company said it needs a larger and updated space “to showcase a broader, deeper product mix” it plans to show during the Atlanta International Area Rug Market, scheduled Jan. 10-13. With the additional space the

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Home Textiles Today

November 5, 2012

company is adopting from an adjacent showroom, Karastan will occupy 7,000 square feet. Karastan is located in the third floor of the Mart’s Buidling 1. “Our goal is to always provide a stylish, functional and elegant backdrop for Karastan’s wide array of product offerings,” said Brandon Culpepper, vp of specialty sales. “Our expansion plan is key to presenting our new-

est products in a comfortable and inviting environment, and as always the new showroom will capture the sophistication and style of the Karastan brand.” Karastan represents one of the anchors for AmericasMart’s rug section, said Kevin Malkiewicz, AmericasMart vp of leasing “We are very happy about Karastan’s new commitment to AmericasMart,” he said. HTT

ears Holdings Corporation completed its previously announced spin-off of a portion of its interest in Sears Canada Inc. Sears Holdings distributed about 44.5% of the total issued and outstanding common shares of Sears Canada on a pro rata basis to holders of Sears Holdings common stock. Following the partial spin-off, Sears Holdings has an approximately 51% ownership interest in Sears Canada. Sears Holdings will continue to be listed on the NASDAQ Global Select Market under the symbol “SHLD,” and Sears Canada will continue to be listed on the Toronto Stock Exchange under the symbol “SCC”.

Target Canada Seeks LEED Certification

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arget is pursuing Leadership in Energy & Environmental Design (LEED) certification for all 124 Canadian stores opening in 2013. Looking to conserve energy and water, reduce greenhouse gas emissions, and limiting waste sent to landfill, Target will spend more than $10 million remodeling each location, including LEED preparations. The first wave of stores will open in March/April. Target is said to be among the first organizations in Canada to be part of the U.S. Green Building Council’s (USGBC) LEED Volume Program, which streamlines the certification process for multiple buildings of a similar type.

11/14/2012 4:55:22 PM


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Home Textiles Today

America’s Next Great Home Textiles Company

November 19, 2012

News

Round 3: Marketing Criteria: Product, price, place, promotion.

A SPECIAL REPORT

HedgeHouse Product: Price: Place: Promotion:

★★★★ ★ ★ ★

The throw bed is very niche market, but earns one star for being expensive. This is for someone who has the disposable income for a unique, comfortable product that is a luxury to have. Owner has designed a unique way of carrying/storing the product, but in traditional stores it will be challenging to communicate what this item is. For small boutiques where the product can be demonstrated, the current “packaging” works. Owner is entering all contests to get word of mouth out there. She recently has a nice editorial hit in House Beautiful. Website should include any editorial coverage. Consumers can buy on the website. Needs to develop social media as a tool.

Le Cote Francais Maison Product: ★ ★ ★ Place: ★ ★ Price: ★ ★ Promotion: ★ ★ Limited edition decorative pillows, bedding and throws combine vintage textiles to create unique designs. The website looks great and is consumer friendly. Easy to shop on line, tells the story well, and also has a store finder. Handout materials at show should have been professionally done. Booth was really nicely executed, and had the feel of a client working with an interior designer with a desk positioned in the booth.

Pyar & Co Product: Price: Place: Promotion:

★★★★ ★★★★ ★★ ★★★

While the product might not be as unique as some of the others, this owner/founder knows how to market. Her handout materials at the booth were well executed, all the details were thought out (like the logo of her company that incorporates a heart because Pyar means “love” in Hindi). Products feature hang tag with information. Great photography on the marketing materials. Website is easy to navigate and attractive. Cannot buy on website, but will drive a consumer to a place where she can buy.

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11/14/2012 3:57:45 PM


News

November 19, 2012

Judge: Carolyn D’Angelo D’Angelo is vp brand management for the home division of Iconix Brands, overseeing the Fieldcrest, Cannon, Royal Velvet and Charisma brands, among others. Prior to that, D’Angelo was svp for the Ralph Lauren Home business at WestPoint Home and previously held senior positions at Waverly Lifestyle Group and Springs Industries.

Home Textiles Today

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America’s Next Great Home Textiles Company A SPECIAL REPORT

Simple Syrup Product: Price: Place: Promotion:

★★★ ★★ ★★ ★

This company was started by two women, one an artist, and the other a former Wall Street executive who was looking for a simpler life when she moved to Nashville. Great story, but it needs to be marketed/communicated better. The materials they handed out at the gift show could be better; should put together a great package of information about the artists, the story behind the company, etc. Website should be a huge marketing tool. This website needs work … where to buy, was not easy to navigate. Product very expensive, more like a collectible item.

Stamattina Product: Price: Place: Promotion:

★★ ★★★★ ★★★★ ★

Very limited assortment of decorative bedding and coordinating accessories and sheets, but focused. Placements in Gracious Home and other independents, a well-defined niche. Price surprisingly affordable. Handout materials not great, but probably serve the purpose of serving the limited client base. Website needs help. Also, this company should participate in social media for marketing. Not sure if they actually want to build equity in their own brand, or are happy providing a particular look to their retail customers?

Wabisabi Green Prodcut: ★ ★ Price: ★ ★ Place: ★ ★ Promotion: ★ ★ Need to spend more time on the booth to make it more inviting and tell the story of the product: eco friendly decorative pillows and tablelinens. Handouts at booth were not great — just one postcard. Need to play up the eco-story more. Was not obvious from the booth. Without this story, the designs could be something seen at West Elm or Crate and Barrel. Website is really well executed and easy to navigate. Easy for a consumer to find and buy the product. Company uses Facebook, website, all forms of social media.

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11/14/2012 2:49:30 PM


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Home Textiles Today

November 19, 2012

News

> hometextilestoday.com

FTC Revises, Adds to Green Guides BY HEATH E. COMBS H IGH P OINT, N.C. — In Octo-

ber, the Federal Trade Commission released its revised Green Guides, which take aim at making sure marketers substantiate environmental claims. The Guides contain new sections on certifications and seals of approval, carbon offsets, freeof claims, non-toxics, renewable energy and renewable materials claims. They also have guidance on compostable, ozone, recyclable and recycled content claims. The guides are general principles for environmental marketing and give guidance for qualifying and substantiating claims for clarity with consumers. The FTC issued the first Green Guides in 1992, with subsequent updates in 1996 and 1998. Changes were proposed in 2010 following the green renaissance of the mid-to-late 2000s, which helped shape the newly revised guides. The FTC noted that in recent years it has stepped up enforcement against companies making

deceptive environmental claims. In one case, the FTC sued a company offering “free” books showing consumers how to become “green millionaires” by installing roof solar panels for free. Since 2009, the FTC has settled or barred exaggerated energy efficiency cost savings claims by window makers, green certifications that were neither tested nor green, biodegradable claims, rayon fabric advertised as “environmentally friendly” bamboo, and paper products that were claimed to be biodegradable. According to the guides, all marketers, regardless of their size, must comply with Section 5 of the FTC Act, which prohibits ‘‘unfair or deceptive acts or practices in or affecting commerce.’’ The FTC often gives small businesses a chance to come into compliance after informal counseling or a warning letter advising them of the need to revise claims, according to the guides. If a company fails to respond, it often follows up with investigations and enforcement. The guides were revised to

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make them more sophisticated and up-to-date, said Vicki L. Worden, president of Worden Associates, which consults with the Specialty Sleep Assn. “So much has changed from when the original version was put together in terms of environmental marketing claims, and that was really the purpose of creating a revised version of the guides,” Worden said. “In terms of furniture and bedding, I think there are still a lot of general claims being made by the industry and the updated green guides are very loud and clear (that) there should not be unsubstantiated claims made,” she said. The guides direct marketers to craft messages that give consumers a uniform way to judge one product against another, she said. They emphasize that marketers should be able to qualify all claims. Among the changes, the guides caution marketers against making broad and unqualified claims that products are “environmentally friendly” or “eco-friendly” because very few have the attributes consumers perceive with those claims. Other changes involve claims that a material is “renewable.” Those claims must be qualified with terms that distinguish how fast a renewable material like bamboo is replenished, or by saying how fast a renewable material is replenished compared with how much of it is used. One area addressed is the relationship between providers of seals and certifications and the manufacturers — namely that those relationships are clear to the consumer, so the credibility of claims can be assessed, Worden said. Seals should also clearly show what attributes are being highlighted so consumers have a basis for comparison, she said. “Without that, the seal seems to elevate a product but it doesn’t necessarily provide a consumer with the ability to really differentiate between the two,” Worden said. “You can’t anymore just have a general seal of approval that a consumer has to draw their own conclusion as to what it’s saying.” The FTC did not to address the terms sustainable, natural and organic. Worden said the FTC decided “sustainable” has too many different meanings to be able to address, and must be

Green Guides Highlights The newly revised Green Guides from the Federal Trade Commission: • Discourage marketers from using broad, unqualified and difficult to substantiate “environmentally friendly” or “ecofriendly” claims without listing specific attributes to back them up. • Contain guidance for disclosing connections to certification or seals that could affect the credibility of claims. • For recycled content claims, focus on environmental cost versus benefit or percentages of recycled content, among other qualifications. The revisions ask marketers not to highlight small or unimportant benefits in products.

substantiated specifically. For organics, the FTC opted not to duplicate government efforts by other government agencies. Guidance for those claims are defined by through the U.S. Department of Agriculture’s National Organic Program. That information is online at http://www.ecfr.gov/cgi-bin/text-i dx?c=ecfr&SID=61a915bc2327 b8a3c90518e1b3fe5231&rgn=di v5&view=text&node=7:3.1.1.9.3 2&idno=7. Sandra Marquardt, the Global Organic Textile Standard representative in North America, said that not having the terms sustainable and natural clearly defined is a weakness, when there is such extensive specificity by the USDA for production and terminology in organics. “I don’t know why they didn’t (define the terms). They’ve already taken years to address natural or sustainable so it seems to be an oversight,” Marquardt said. She added that, for example, livestock and produce have specific legal definitions spelled out for “organic.” Most farms and businesses that grow, handle, or process organic products must be certified, according to the USDA. The FTC said it did not have the legal authority to define the terms natural and sustainable since they convey a wide range of meanings, not all environmental. They said no consensus had been reached on how to measure that those qualities. The FTC did say that if marketers use “sustainable” and if a consumer perceives a general environmental benefit claim, marketers should be able to substantiate the claims. “With the increasing amount of organic furniture out there such as mattresses, chair cover-

ings, fabrics — you want to know what you’re getting. With the word ‘organic’ you can. With sustainable and natural, particularly with natural, there’s no definition,” Marquardt said. Having a strict set of rules in place raises the question of whether the guides may have a chilling effect on companies that decide making a green claim is too difficult. Worden said the guides should help ensure the marketplace isn’t overwhelmed with claims that can’t be defended. The rules could create a need for cross functional teams to work on marketing campaigns that include legal counsel familiar with Green Guides, along with product designers and marketers who can agree on what claims a company can make, Worden said. “It has the potential to dissuade those that wouldn’t jump into the market with both feet. This type of scrutiny by the federal government could dissuade those who just want to dabble,” Worden said. “For those who are serious about going after this niche — a potentially high dollar niche market — it’s going to provide more incentives for that group to ensure that they have their third party certifications in place and have fully thought through their marketing programs,” she said. The Global Organic Textile Standard’s Marquardt said that the role of the guides is to have an enabling effect. “If it has a chilling effect it means that the companies were doing something wrong,” Marquardt said. “I think if anything this gives liberty to companies to make claims that are truthful and accurate that consumers can believe in and that are the right things to do by the environment.” HTT

11/14/2012 4:15:32 PM


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11/9/2012 10:01:31 AM


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Home Textiles Today

November 19, 2012

News

> hometextilestoday.com

Weavetec’s Simply Home Division to Acquire Santee Fabrics BY CINDY W. HODNETT W Y T H E V I L L E , VA . — Simply

Home, a division of Weavetec Inc., announced plans today to acquire High Point-based converter Santee Fabrics. Company officials declined to disclose the purchase price, but said that Santee’s sales office in High Point will close on Fri-

day. All accounts will transfer to Simply Home’s customer service team in Wytheville, under the direction of Operations Manager Caren Blanchett, on Nov. 12. Santee Fabrics was incorporated in 1994 under the direction of Dan Ennis and has a niche in yarn-dyed cotton fabrics produced by Weavetec and piecedyed velvets and twills from var-

ious suppliers. Simply Home has been a supplier of home décor products since 1995 and launched a signature residential fabric line under the leadership of Nick Chmil in 2010. Simply Home officials said the acquisition will further solidify its position as a resource for residential upholstery fabrics. The company said it will operate the two

lines independently, with Simply Home Classics under the direction of Chmil and Santee Fabrics by Simply Home under the direction of Ennis. They are both sales managers. Weavetec, incorporated in 1987, is a specialty weaver that produces fabrics for the home décor, upholstery, wall covering, equestrian and industrial fabric

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markets. Sandy Carroll has joined Simply Home as customer service manager for both divisions. Previously, Carroll was inventory manager at Chemicals & Solvents in Roanoke, Va. Ennis said the acquisition is timely given the increased interest in domestic sourcing for textiles. “This acquisition will be beneficial for Santee Fabrics because it allows us to focus on product development and sales as opposed to the structural issues associated with an independent business,” he said. “More importantly, our customers will benefit from the strength and stability of Simply Home and its parent company, Weavetec.” HTT

Stein Mart to Restate Several Financial Reports JACKSONVILLE , FLA . — Based in part from a revision to how it had been accounting for markdowns and leasehold improvement costs, Stein Mart said it will restate its financials for fiscal years 2009, 2010 and 2011 as well as the first quarter of 2012. Quarterly earnings data for each of the three fiscal years also will be restated. “None of the adjustments necessary to correct any of the errors will impact reported cash balances currently,” the company said in a statement. Stein Mart had been accounting for some markdowns as promotional or temporary, which doesn’t impact the value of unsold inventory or the cost of sales until the merchandise is sold. The company now believes those markdowns should have been categorized as permanent, which would impact the value of the unsold inventory as well as the cost of sales. Stein Mart estimates the value of inventories were overstated by roughly $2 million as of July 28 of this year and cost of merchandise sold was unstated by a similar about. It expects variations in previous quarters. The discovery came to light as Stein Mart was completing the installation of a new merchandise information system. HTT

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Home Textiles Today

November 19, 2012

News

Online Pad/Pillow Business Grows PADS FROM PAGE 1

tailers, but consumers can find even higher quality online. Online offers “an added ability, if there’s something unique or specific to need you’re probably going to look online,” said Schantz. “It’s a sizable position as a lead-in, leading for our company,” said Bob O’Connell, executive vp of sales and marketing at Soft-Tex. “It’s a big position.” Most suppliers contacted by HTT agreed that Amazon and Overstock are the 800 pound gorillas in the room when it comes to purely e-commerce merchandising sites, but QVC and HSN also were cited. Valerie Stranix, chief marketing officer, Natura World believes that sites offered by brickand-mortar stores are seeing that “online allows them to offer

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And catalogers have a niche/specialty item focus.” said Fritz Kruger, senior vp of marketing at Pacific Coast Feather Company. He added: “Whereas on Amazon and Overstock, consumers “Our allergy find a plethoprevention pillow ra of choices and mattress covers without great focus on orbusiness is up 42%, ganization. this as more people are Essentially being diagnosed with JEFFREY TAUBER these two eRoyal Heritage allergies.“ tailing giants Home are trying to tiles are also big online outlets for be everything to everyone.” But there are also specialpillows and pads as well. “Traditional brick-and-mor- ists. Jeffrey Tauber, ceo of Royal tar retailers basically offer an ex- Heritage Home, owns four allertension of their core format into gen brands — National Allergy the online channel. Consumers Supply, Allergy Solution, Allergy will see online what they would Control and Allergy Guard Disee in-store — well thought out, rect — which primarily sell diplanned product assortments. rectly to consumers. greater assortment.” She adds that customers know and trust these brands already. And the most important brickand-mortar retailers for home tex-

FRITZ KRUGER Pacific Coast Feather Co.

“Traditional brick-and-mortar retailers basically offer an extension of their core format into the online channel. Consumers will see online what they would see in-store – well thought out, planned product assortments. “

“Our allergy prevention pillow and mattress covers business is up 42%, this as more people are being diagnosed with allergies,” he said, adding the company has also seen strong wholesale increases with major retailers. With respect to flash sites, SoftTex’s O’Connell sees varying degrees of success depending on the timing of what else is being offered. Tauber, on the other hand, views flash sites as a “big fat zero.

They are not focused. We could help, but they don’t focus on this big opportunity.” White Loft’s Kelley chalks up most of the online growth to changing habits. “Ten years ago, you had people in their 50s and 60s with purchasing power leery of the Internet. Now, you have that same demographic much more comfortable purchasing online. People enjoy the free shipping and convenience.” Kelley said. HTT

11/14/2012 6:56:30 PM


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Home Textiles Today

November 19, 2012

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PEOPLETodaY Belk’s evp, cfo Marley to Retire; Orvos Tapped to Replace Him C H A R L O T T E , N.C . — Culminating more than 12 years with the company, Brian Marley will retire from his post as evp, cfo of regional retailer Belk Inc. come May 4, 2013, and the company is promoting Adam Orvos to replace him. “Brian has played an integral leadership role in many key strategic initiatives that have greatly strengthened the company and its financial position,” said Tim Belk, chairman and CEO. “He has left an indelible mark on Belk, and we greatly appreciate his dedication and service. We wish him much happiness and continued success upon his retirement.” Adam Orvos is Belk’s evp of human resources. He joined the company 2006 as senior vice president of finance and corporate controller, and was promoted to his current position in 2009. Orvos’ career in retail began in 1987 with the May Department Stores Company in St. Louis,

Mo. Six years later, he joined the Foley’s division of May in Houston, Texas, and was named vice president and controller in 2000 and senior vice president and cfo in 2004. “We’re pleased to name Adam Orvos as chief financial officer for Belk,” said Tim Belk added. “His experience as the chief financial officer of a division of May Department Stores and three years as our corporate controller have prepared him well for his new position. Adam is a talented executive and strategic thinker, and we look forward to his continued outstanding contributions to Belk.” Following his retirement, Marley has agreed to serve as a consultant to Belk for 12 months to assist in the transition of his responsibilities and provide advice on various financial matters. He will also continue to serve on the investment committee of The Belk Foundation and the advisory board of the Belk School of Busi-

ness at UNC-Charlotte. Marley joined Belk in 2000 after a 20-year career with the firm of KPMG LLP. Among his many accomplishments at Belk, Marley was instrumental in establishing expense controls, capital planning processes and cash management practices that enabled the company to emerge from the recession with a strong balance sheet and over $500 million in cash. In 2011, the Charlotte Business Journal recognized Marley’s efforts by naming him cro of the Year. Marley is credited with leading the successful sale of Belk’s credit card portfolio to GE and structuring the financing of Belk’s acquisitions of the Proffitt’s/McRae’s and Parisian store chains. He also spearheaded a capital allocation process which strengthened the company’s balance sheet and enabled the company to invest in significant growth initiatives. HTT

Sleep Studio Taps Veitch for vp, sales N EW YORK — Sleep solutions

products supplier Sleep Studio LLC has hired 20-year industry veteran Will Veitch as its new vp of sales. Over the past two decades Veitch has held sales and marketing positions at Sealy, Latex International, and Kingsdown Inc. “With his extensive knowledge and experience in the cate-

gory, we are thrilled to have Will on our team and expect him to make a significant contribution to our future growth”, said Michael Rothbard, president. “We expect Will to reinforce the significant growth track we’re currently on and at the same time help us leverage our technological advantages to broaden our distribution.” HTT

GHTA Confirms New Board G RAND R APIDS , M ICH . — The Gift and Home Trade Association (GHTA) confirmed its 2012-2013 board of directors during the 10th Annual GHTA Conference last month in Orlando, Fla. The GHTA’s executive board includes: Julie Dix of Justa Bout Any Thangoes, chairman of the board; John Keiser of OneCoast, president; Bob Watson Jr. of Annalee Dolls, vice president; Todd Litzman of Brandwise, treasurer; and Cindy Henry of Wellspring, secretary. In addition, several new mem-

bers joined the board: Fred Schmidt of All for Color, Bob Ricciardi of About Face Designs, Randy Spoor of Center Stage, Lisa Wohlhart of Ivystone, Allison Barrows of Ganz, and Kim Pounds of Next Generation. Continuing their board terms are Steve Papevies of Southern Accents Today and Joe Harris of Whereoware. George Kacic of Ganz and Mary Liz Curtin of Leon & Lulu will continue in their roles as ex-officio members. Andy Bjork of Ivystone will act as parliamentarian. HTT

Team Surya Runs for Charity C ALHOUN , GA . — A team from rugs and accessories source Surya ran a half marathon race in Atlanta last month to raise more than $29,000 for Ashkaya Patra, a group that helps provide meals for children in rural India. The non-governmental organization serves more than 1.3 million children. For many of them, an Akshaya Patra-provided lunch might be their only complete meal of the day, and acts as an incentive for parents to keep their children in school. Surya became involved with the organization earlier this year, donating $250,000, enough to help provide thousands of children with healthy meals for an entire year. Surya President Satya Tiwari

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decided to use the Oct. 7 Atlanta AllState Half-Marathon to further the cause. He and a team of Surya employees ran the race and enlisted the help of family, friends, customers and the local community in raising donations for the program, dubbed Miles for Meals. In raising more than $29,000, the group exceeded its initial goal by over $4,000. The donations will help Ashkaya Patra feed 1,941 children over the coming year, officials said. “I want to personally thank all of those who donated their time and money towards this amazing cause. Growing up in northern India, I saw the desperate need that still exists in so many communities for the healthy food and educational

From left to right: Russell Turner “Turner Homestores”; Lynde Worley; Kurt Von De Bur; Megan Nyman; Eric Nyman; Parvati Kakodkar; Seth King; Sandeep Luke; Satya Tiwari; and Kevin Von De Bur.

opportunities that can so easily be taken for granted,” said Tiwari.

More information about Akshaya Patra and how to donate is on Surya’s Miles for

Meals site at http://www.razoo. com/story/Suryamilesformeals. HTT

11/14/2012 5:07:37 PM


November 19, 2012

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GLM Expands Web Market Reach W HITE P L AINS , N.Y. — GLM

has acquired the events group of Vertical Web Media (VWM), including Internet Retailer Conference & Exhibition (IRCE) as well as two allied events - Internet Retailer Mobile Marketing & Commerce Forum (MMCF) and Internet Ret ailer Web Design and Usability Conference (IRWD). The acquisition creates a strategic partnership between the two companies whereby the existing IRCE sales, marketing and operations team will remain with the events group and operate as an independent division of GLM. VWM will continue to provide conference agenda development, speaker recruitment services and marketing support, and it will retain all of its media properties, including its Internet Retailer Magazine, news and informational web sites, e-mail newsletters and research databases and directories. Terms of the transaction were not disclosed. “The IRCE event presents top-quality, forward-looking conference content, and continues to see strong growth as to both conference attendees and exhibition participants,” said Charles G. McCurdy, GLM chairman and ceo. “Because internet retailing and e-commerce are such important growth topics for the retailers and suppliers who attend GLM’s existing shows, this is a natural extension of GLM’s reach and impact within the supplier and retailer community.” Added Jack Love, chairman and publisher of VWM: “We are extremely excited about this collaboration with GLM. Our extensive knowledge of and contacts within the e-commerce and online retail space, combined with GLM’s tradeshow expertise and expansive reach within the retail community, lay a strong groundwork for future development of GLM events and Internet Retailer publications around the globe.” Launched in 2005, IRCE is said to be among the largest conference and exhibition devoted to e-commerce developments and technologies. The annual event features about 600 e-commerce vendors and 100 conference ses-

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sions over a four-day period, and attracts nearly 9,000 e-retailing and e-commerce executives. Its speakers and attendees comprise a broad worldwide collection of e-commerce competitors, including retail chains, web-only merchants, retail goods manufacturers and wholesalers and consumer services companies. The 2013 edition of IRCE is scheduled to run June 4-7 at McCormick Place West in Chicago. Web design and usability conference IRWD, launched in 2008, is an annual event that features 60 exhibits and more than 30 conference sessions, including an SEO Day and Design Workshop. IRWD attracts a diverse crowd of top e-commerce executives, web designers and developers, and marketers from web-only merchants to e-commerce operations of the top chains. Its 2013 event is scheduled for Feb. 11-13 at the Omni Orlando Resort in Orlando. MMCF, which was launched in 2010, presents marketing and e-commerce information for competitors in the mobile commerce space. Its annual event features 40 exhibits and more than 25 conference sessions, attracting representatives from retail chains, web-only merchants, catalogers, branded manufacturers and e-commerce vendors. The most recent MMCF was held last month in San Diego. “There is a high degree of fragmentation in the e-commerce space, with both established and new service providers competing for retailers’ business. We know from our research that retailers and suppliers whom GLM supports are in a highadoption phase of online marketing and e-commerce capabilities,” McCurdy noted. “IRCE gives us the ability to embed access to credible e-commerce content and suppliers into our existing shows, above and beyond IRCE’s strong base of participants and growth prospects.” GLM anticipates co-locating e-commerce content and resources drawn from IRCE’s network with many of its existing shows, starting in 2013, and sees potential for expansion of IRCErelated events in the United States, Europe and Asia. HTT

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11/14/2012 4:02:20 PM


16

Home Textiles Today

> hometextilestoday.com

November 19, 2012

BUSINESS TodaY TJX Expects Strong Momentum in Holidays as Third Quarter Ends With a Bang F R AMINGHAM , M A SS . — TJX

Cos. posted double-digit increases in net sales and income during the third quarter as all of its U.S. brands saw strong traffic and ticket rates in the period. Net income for the 13 weeks jumped 13.7% to $462 million from $406.5 million and diluted earnings per share were up an even better 17% to $.62 versus $.53 per share last year. Quarterly net sales were boosted by 11% to $6.4 billion compared to $5.8 billion, and consolidated comparable store sales rose 7%. By segment, results for the quarter included: • Marmaxx: Sales up 10% to $4,161 million, and a 7% comp; • HomeGoods: Sales up

16% to $638 million, and a 6% comp; • TJX Canada: Sales up 9.0% to $769 million, and a 4% comp. Year to date, net income soared 30% to $1.3 billion from $1.0 billion, and diluted earnings per share came in at $1.73 compared to $1.31 in the same period last year. Net sales for the 39 weeks were up 10% to $18.2 billion, and comps increased 8%. Carol Meyrowitz, ceo, said the company’s earnings per share and comp gains in the quarter “both significantly exceeded our original expectations and every division delivered excellent performance.” She also noted customer traffic – including a growing set of

younger shoppers • was up at all divisions in the U.S., Canada and Europe, driving the comparable store sales increases. Looking ahead, TJX Cos. has many initiatives lined up to bank on “terrific opportunities for the holiday selling season and fourth quarter.” As Meyrowitz outlined, “we will be shipping fresh gift selections to our stores continuously throughout the holiday season; our marketing campaigns will be seen by more people; we have fantastic in-store initiatives planned; and of course, we will be offering consumers great fashions and brands at extreme values.” Also in the pipeline for the holidays: a more aggressive gift card business; and remodeled

Same-store sales

Comps on Steady Incline in November’s Second Week N EW YORK — The Johnson Redbook Retail

ning on opening their doors on ThanksgivSales Index was up 1.6% in the second week ing Day in order to jump-start the weekend of November following a 0.8% gain the pri- madness,” she continued. “Meanwhile, in the or week. Month-to-date, NovemJohnson Redbook Index ber was up 1.2% compared to Second week of November, year-over-year % change November of last year, relaWEEK EN DED 11/3 11/10 11/17 11/24 MONTH TARGET tive to a target of a 2.1% gain. Department stores* (0.7) (0.2) (0.4) 0.3 Month-over-month showed a Discounters 1.5 2.6 2.1 3.1 0.2% drop, relative to a target Redbook Index 0.8 1.6 1.2 2.1 of a 0.7% gain. *Including chain stores and traditional department stores November is a four-week Source: Johnson Redbook Index month on the retail calendar ending on November 24th. Business was relatively soft as the country Northeast region, shoppers headed to malls focused on national elections at the beginning and discounters to replenish basic consumof the week, then picked up into the upcom- ables and rebuild following Hurricane Sandy. ing Veterans Day long weekend, noted Catlin Retailers are now looking towards Thanksgiving and the start of the holiday period as the Levis, Redbook analyst. “Some retailers are rolling out and promot- next available opportunity to restore momening holiday deals earlier than ever and plan- tum to their sales.” HTT

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stores offering an “upgraded shopping experience which we think will continue to lift sales,” she said. With that in mind, TJX offered its newly revised fourth quarter and full year fiscal 2013 outlook. For the fourth quarter, the company expects diluted earnings per share to be in the range of $.72 to $.75, which would represent a 16% to 21% increase over $.62 per share last year. This outlook is based upon estimated consolidated comparable store sales growth of flat to 2%. This includes an expected $.07 per share benefit from the 53rd week in the company’s fiscal 2013 calendar. Excluding this benefit, the adjusted guidance in the range of $.65 to $.68

represents a 5% to 10% increase over the prior year. For the fiscal year ending February 2, 2013, TJX Cos. is raising its guidance for diluted earnings per share by $.01. The company now expects diluted earnings per share for the full year to be in the range of $2.45 to $2.48, compared with $1.93 on a reported basis in fiscal 2012. This guidance represents a 23% to 25% increase over the prior year’s adjusted earnings per share from continuing operations of $1.99 and is now based upon estimated consolidated comparable store sales growth of 5% to 6%. In addition, the company’s full-year guidance includes the $.03 per share negative impact from the third quarter items discussed above. HTT

Home Depot Gets Boost in Q3, Raises Expectations for Fiscal 2012 ATLANTA — An improving hous-

ing market was partially credited with helping The Home Depot churn better-than-expected third quarter sales, comps and earnings, prompting a more positive revised guidance for the fiscal year. Net earnings increased 1.4% to $947 million, or 63 cents per diluted share, compared with $934 million, or 60 cents per diluted share. The company explained that these results reflect a nonrecurring charge of $165 million, net of tax, or 11 cents per diluted share due to the previously announced closing of seven stores in China. On an adjusted basis, Home Depot’s net earnings jumped 23.3% to $1.1 billion, or 74

cents per diluted share, from the prior year. Sales for the 13 weeks were up 4.6% to $18.1 billion, versus $17.3 billion a year ago, and comparable store sales for U.S. stores increased 4.3%. Buoyed by its performance, The Home Depot updated its fiscal 2012 guidance and raised its sales growth guidance to be up 5.2% for the year on a 53week basis, and diluted earnings per share to be up 18% to $2.92 for the year. On an adjusted basis, the company raised its diluted earnings per share growth guidance to be up 23% to $3.03 excluding the $0.11 per diluted share impact related to the closing of seven stores in China. HTT

11/14/2012 4:18:20 PM


November 19, 2012

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Hurricane, Elections Impact October Sales

To the best goes the brightest.

WASHINGTON — For the first time in three months, retail sales ticked

down as consumers cooled discretionary spending in the face of inclement weather and uncertainty here in the nation’s capital. According to the National Retail Federation, October retail sales – excluding automobiles, gas stations and restaurants – decreased 0.3% seasonally adjusted from September yet increased 3.9% unadjusted year-over-year. By segment, furniture and “While Hurricane home furnishing stores’ sales Sandy certainly decreased 0.6% seasonallyimpacted consumer adjusted month-to-month yet spending in the increased 7.3% unadjusted Northeast and year-over-year. The data for mid-Atlantic states, other segments: the larger threat to • Clothing and clothing the overall economy accessories stores: down 0.1% is the impending fiscal seasonally-adjusted month-tomonth; up 4.2% unadjusted cliff, which impacts year-over-year; Americans across the • Electronics and applicountry.” ance stores: down 1.0% sea—MATTHEW SHAY, sonally-adjusted month-toNRF month; down 4.2% unadjusted year-over-year; • General merchandise stores: up 0.2% seasonally-adjusted month-to-month; 1.1% unadjusted year-over-year. “While Hurricane Sandy certainly impacted consumer spending in the Northeast and mid-Atlantic states, the larger threat to the overall economy is the impending fiscal cliff, which impacts Americans across the country,” said Matthew Shay, NRF president and ceo. “The automatic tax increases and spending cuts set to take effect at the end of the year may have more of an impact on business confidence and consumer spending than any other issue.” October retail sales, released by the U.S. Department of Commerce, showed total retail and food services sales – which include non-general merchandise categories such as automobiles, gasoline stations, and restaurants — decreased 0.3% seasonally adjusted month-to-month yet increased 3.8% unadjusted year-over-year. “The underlying strength of the American consumer is encouraging but it’s far from definitive,” said Jack Kleinhenz, NRF chief economist. “Hurricane Sandy will have short-term and long-term reverberations on the economy and will continue to impact consumer spending and retail sales over the coming months in the hardest-hit areas. Even though retail sales declined in October, NRF remains confident in moderate consumer spending nationwide, and expects a solid holiday shopping season.” HTT

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11/14/2012 4:00:46 PM


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Home Textiles Today

November 19, 2012

Business

> hometextilestoday.com

NRF: More Consumers Getting Early Jump On Holiday Shopping This Year WASHINGTON — Thanksgiving

Day is still not upon us, and yet more consumers than last year are already beginning to make a dent in their holiday shopping lists, according to the National Retail Federation’s 2012 Holiday Consumer Intentions and Actions Survey. Conducted by consumer research firm BigInsight, which polled 9,383 consumers from November 1-6, the survey found 52.8% of Americans have already started their holiday shopping, up from 51.4% in 2011. “In order to win over savvy shoppers this year, retailers are well aware that their deals have to stand out, and it looks like

there’s plenty of people eager to get their hands on the exclusive promotions we are already seeing,” said Matthew Shay, NRF president and ceo. “With more promotions to come, gift givers will have ample opportunities this holiday season to seek out the perfect gift — either for themselves or for others.” With plans to spend slightly more than last year, shoppers said they will be stocking up many discretionary gifts for their loved ones. The most popular choice: clothing and clothing accessories. According to the survey, nearly six in 10 (59.7%) consumers will splurge on fashion and apparel items and other

accessories. About the same amount of people (59.2%) will buy gift cards, which are also the most requested gift item. Children will also benefit this holiday season — 45.1% of people say they will buy toys. Additionally, 22.5% of shoppers will go the extra mile and surprise someone special with jewelry, the highest amount since 2007. Other popular gifts will be books, CDs, DVDs, videos and video games (51.5%), electronics (31.7%), personal care or beauty items (24.4%) and food and candy (32.6%). The survey also found shoppers much prefer to use money they already have or have saved

up to purchase holiday gifts. More than four in 10 (43.4%) will rely on debit cards as their primary form of payment. An additional 25.2% will use cash and 2.8% will use a check. Nearly three in 10 (28.7%) will charge their gifts. “Consumers are keen on scoring hot holiday deals this year, and exclusive apparel, electronics and toy promotions are making them all the more anxious,” said Pam Goodfellow, BigInsight consumer insights director. “Trying to stay within budget, shoppers will map out their holiday season shopping strategy before stepping foot in any store or logging onto any website.” To find inspiration for what

gifts to give, more holiday shoppers are turning to the web this year, as 47.3% of consumers surveyed said they will look for holiday gift ideas online. Coming in a close second is in-store inspiration, with 45.2% of Americans noting that they will take a stroll in the store to find the ideal gift. Other popular areas for insight include advertising circulars (36.2%), television (35.4%) and friends and family (40.4%). Proving they are still seen as a value to shoppers, more than one-third (34.1%) of consumers say they will seek ideas from catalogs. Additionally, 13.3% will head to Facebook and 5.8 % will use Pinterest for ideas. HTT

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11/14/2012 4:26:10 PM


Anna’s Linens turns 25 this year and Home Textiles Today is celebrating with a Special Commemorative Report in our December 3, 2012 Issue. LAST

This Special Report will be all about Anna’s – past, present and future – and will pay tribute to the thousands of Anna’s a’s employees, suppliers iers and customers who helped make it all possible.

TWO WEEK

TO SIGN UP S !

You’re invited to be part of the celebration with a commemorative ad honoring Anna’s. And a portion of all gross ad proceeds will be donated to Anna’s favorite charity, the St. Jude Children’s Research Hospital.

Your Home Textiles Today sales representative can give you all the details.

TEXTILES IS OUR MIDDLE NAME

Jeff Reeves, 336-605-1009 jreeves@hometextilestoday.com

HTT_Anna's Linens tab.indd 1

Mary McLoughlin, 646-805-0227 mmcloughlin@hometextilestoday.com

Kaushal Shah, 91-9821715431 kaushal@kaushals.com

10/26/12 10:36:43 AM


20

Home Textiles Today

November 19, 2012

Calendar December 2–5 Showtime Fabric Fair Market Square, Textile Tower, High Point, N.C. (336) 885-6842

January 2013 9 – 12 Heimtextil Frankfurt Fair & Exhibition Center Frankfurt am Main, Germany (770) 984-8016 heimtextil.messefrankfurt.com

9 – 16 Atlanta International Gift and Home Furnishings Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

10 – 13

Dallas Market Center, Dallas (214) 655-6100 www.dallasmarketcenter.com 16 – 22 Dallas Total Home & Gift Market Dallas Market Center, Dallas (214) 655-6100 www.dallasmarketcenter.com

18 – 20 F!NDS Dallas Temp Show World Trade Center, Market Hall, Dallas (214) 655-6100 www.dallasmarketcenter.com

At 7 W New York, Jan. 26-30 (800) 272-7469 www.nyhometextilesmarketweek. com

27 – 31 CGTA Gift Show Toronto International Centre; Toronto Congress Centre, Toronto, Canada (416) 679-0170 www.cgta.org/Assoc/Home.aspx

28 – 29 Dallas Fabric Show Dallas Market Hall, Dallas, TX (214) 655-6100 www.dallasmarketcenter.com

18 – 22 Maison & Objet Parc des Expositions, Paris-Nord Villepinte, Paris (888) 522-5001 www.maison-objet.com

The Atlanta International Area Rug Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

Surfaces Mandalay Bay Convention Center Las Vegas (866) 860-1975 www.surfaces.com

February Intirio Flanders Expo, Gent, Belgium +32 09/24 38 450 www.intirio.be

3–7

Domotex Hannover Hannover Fairgrounds, Hannover, Germany (609) 987-1202 www.domotex.de

Spring Fair The National Exhibition Centre (NEC), Birmingham, UK (609) 921-0222 www.springfair.com

13 – 16 National Retail Federation Convention & EXPO Jacob K. Javits Convention Center, New York (202) 626-8162 www.nrf.com

22 – 25

12 - 14

Interiors Birmingham The National Exhibition Centre (NEC), Birmingham, UK +44 (0) 20 7921 8408 www.interiorsbirmingham.com

Expofil Parc des Expositions, Paris-Nord Villepinte, France +33 (0) 4 72 60 65 00 www.expofil.com

14 – 20

26 – 30

12 – 15

imm cologne The Exhibition Center Cologne, Germany (773) 326-9920 or +49 221 821-0 www.imm-cologne.com

New York International Gift Fair Jacob K. Javits Convention Center, Passenger Ship Terminal Piers, New York (800) 272-7469 www.nyigf.com

Texworld Paris Le Bourget Exhibition Centre, Paris, France +33 155 268 989 www.texworld.messefrankfurt.com

Dallas Holiday & Home Expo

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20 – 25 13 – 15 Interstoff Asia Essential— Spring Hong Kong Convention & Exhibition Centre, Hong Kong Messe Frankfurt (HK) Ltd. (852) 2238 9963 http://www.messefrankfurt.com. hk/fair_homepage.aspx?fair_ id=1&exhibition_id=1

High Point Market International Home Furnishings Center, Other locations, High Point, N.C. (336) 869-1000 www.highpointmarket.org

15 – 17 Atlanta Spring Gift, Home Furnishings & Holiday Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

17

May

Home Textiles Today’s New York Winter Market Kickoff Party (646) 805-0226 www.hometextilestoday.com

7–9

18 – 21

18 – 21

New York Home Fashions Market Home Fashion Products Association (212) 297-2122 (Kellen Co.) www.homefashionproducts.com

International Contemporary Furniture Fair (ICFF) Jacob K. Javits Convention Center, New York (914) 421-3200 www.icff.com

Proposte Villa Erba in Cernobbio, Como, Italy +39 02 6434054 www.propostefair.it

3– 6

12 – 15

16 – 22

Vision13: International Window Coverings EXPO New Orleans Convention Center, New Orleans, LA (651) 293-1544 www.wf-vision.com

Intertextile Shanghai Home – Spring Edition Shanghai World Expo Centre, Shanghai, China +852 2238 9902 www.intertextilehome.com

28 – 31

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

The Canadian Home Furnishings Market (TCHFM) The International Centre Mississauga, Ontario, Canada (514) 866-3631 http://www.tchfm.com/

Texworld USA Jacob Javits Center, New York (770) 984-8016 www.texworldusa.com

19 – 23

5– 7

28 – February 1

12 – 15

14 – 16

March

25 – 31 New York Home Textiles Market Week At the New York International Gift Fair, Jan. 26 - 30 At 230 Fifth Avenue, Jan. 26-31

15 – 19 Ambiente Frankfurt Fair & Exhibition Center, Frankfurt am Main, Germany (770) 984-8016 www.ambiente.messefrankfurt. com/frankfurt

17 – 20 ASD Las Vegas Las Vegas Convention Center, Las Vegas, NV (310) 481-7300 www.asdonline.com

15 – 17

21 – 24

15 – 19

Dallas Total Home & Gift Market Dallas Market Center, Dallas (800) 325-6587 www.dallasmarketcenter.com

Evteks CNR Expo, Istanbul, Turkey +90 212 465 74 75 http://www.cnrevteks.com/

Hospitality & Design Show Sands Expo Center, Las Vegas (508) 743-8502 www.hdexpo.com

19 – 21 26 – 28 Domotex asia/CHINAFLOOR Shanghai New International Convention Center, Shanghai, China +86 21 6247 7668 www.domotexasiachinafloor.com

April 3–5 Lineapelle Fair District, Bologna, Italy +39 02 8807711 www.lineapelle-fair.it

Surtex Jacob K. Javits Convention Center, New York (914) 421-3200 www.surtex.com

June 2–5 Showtime Fabric Fair Market Square, Textile Tower, High Point, N.C. (336) 885-6842 www.itma-showtime.com

11/14/2012 12:42:54 PM


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shri lakshmi Cotsyn ltd. signature Cabinetworks llC signature Plumbing specialties signoria di Firenze sinomax-usa inc. sleep innovations sleep studio llC sleepwell sM Products, inc. smartful Home, llC smokey Mountain designs spencer Home Fashions society Hill Textile softline Home Fashions soft-Tex Manufacturing Co. somma for Muse source Global enterprises sphinx by oriental Weavers splash Home standard Textile stanley roberts star Bedding star silk & Wollen Mills strands Textile Mills usa, llC stratford Home strauss’ inc . studio sri, inc . stupell industries styles Corporation suburban Home suntex designs inc . sun-Yin usa surya rugs sweep Bedding systems sybaritic industries synergy Global Home, inc. Tag Tatara Group Taymor industries inc. Terri Puma Texstyle / Bolan usa Textile City Textiles Plus, inc . Textrade, inc. The 319 Vision by Gussco The Gallery Thomas Kindade Thro, ltd Today’s Curtain Todd Taylor uK Town & Country living Trade lines inc. Trade linker international, inc . TransForm Trendex Home designs Triangle Home Fashions Trump Turkish Towel Co. TV Products usa, inc ulster linens united linens universal Home Vantage ind./leggett & Platt Venezia Ventex Home Fashions Venus Home Fashions Veratex Versailles Home Fashions Verticom Vicki Payne Home Collection Victoria Classic Vijayeswari usa llC Visions in Towels Vista Home Fashions Vivatex Home VTx Fine Bed linen W.G. Gry Warner Bros Water Works Waverly Home Fashions/ellery Welspun usa inc . Westco sales Westone, inc WestPoint Home Westport linens, inc . Windham Weavers World dynast Woven Workz Y & H international llC Y. M. F. Carpet, inc. Your True Nature Yunus Yves delorme Z2astore.Com, llC Zambaiti usa, inc . Zorlu usa, inc.

A marketing and advertising plan using Home Textiles Today in both print and online can help your company stand out from the crowd as well as introduce you to new buyers at those key retail accounts. Your HTT sales representative can give you all the details.

TexTiles is our Middle NaMe


CLASSIFIEDS HELP WANTED Window Design Director

Do you want to share your designs and ideas with the most popularity and with more than 10 million from the most exciting market of the world?

We will introduce your designs together to millions of our consumers in China. •

We will offer market prices for your artwork if chosen by our product team.

CLASSIFIEDS

Now offering custom borders! SPENCER WHITTLE:

Ask how we can

swhittle@sandowmedia.com ph 336.605.1027 fax 336.605.1143

make your ad stand

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

out from the rest!

info@shanghaibroadway.com

T

THEY’RE LOOKING AT OUR CLASSIFIEDS

R

If you are interested, please forward your studio profile or personal resume to:

TODAY

E

The candidate who is interested in this co-operation should have a minimum of 5 years experience in design and/or art or a related field. Candidates will be asked to show their pictures and comments on their own designs to our consumers.

THEY’RE LOOKING FOR YOU

HOME TEXTILES

V

Do you want to show your face on the biggest B to C website in Asia?

small space BIG RESULTS !

D

One of the most successful online home textile brands in China, Racy’s Home, is seeking cooperative opportunities with home textile studios or designers from Europe and the U.S.

ABW is a distributor of stock lots, seconds and textile waste products. We are currently looking for salespeople and buyers to work out of our office in Philadelphia. We are seeking aggressive energetic people who thrive on performance goals and objectives. Please send resumes to hkanefsky@bestrags.com or by fax to 215-482-6190

A

NJ based Home Textile Importer seeks a Window Design Director to be responsible for the creative design and development of Window Treatments for a diverse customer base. Must know trends, be creative and technical. 5+ years exp. in window design required. Must be able to multi-task and handle deadlines. Send resume to: recruitment.newjersey@gmail.com

TAKE YOUR AIM!

I

ADVERTISE WITH US

Lines Offered (Reps) Help Wanted Retail Recruitment Real Estate Showroom Space

For Sale/Lease Factoring Services Announcements Legal Notices Parts

KAREN HANCOCK: email: KHancock@sandowmedia.com ph: 336.605.1047 • fax: 336.605.1143

E

SPENCER WHITTLE: email: SWhittle@sandowmedia.com ph: 336.605.1027 • fax: 336.605.1143

S

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> hometextilestoday.com

News

November 19, 2012

Showtime Gears up for December HIGH POINT, N.C. — The Showtime fabrics fair has put on a fresh face as it heads into its winter edition, which will take place here Dec. 2-5. The event, sponsored by the International Textile Market Association, has launched a new website at a new address: www.showtime-market.com. In addition to an exhibitor list, the site offers a scheduling planner, information about the ITMA Foundation and its programs, and a video of the runway fashion show from the most recent Showtime event last June. The December show will also fea-

ture special events. Among them: • International Pavilion reception on Dec. 2 at 5:30 p.m. • I’ve Been Pinned, an update on the uses of social media and Internet marketing in the home fashion space, with a particular focus on Pinterest. Sessions will take place Dec. 3 at 2 p.m. • Swarovski Elements inspirational trends for autumn/winter 2013/14. Sessions will take place Dec, 3 at 10:00 a.m. and Dec. 4 at 2:00 p.m. • Designer Plate Auction on Dec. 3 from 6 to 8 p.m. to raise funds for

the ITMA Educational Foundation. • Suite Libations, complimentary cocktail hour that will take place Dec. 3 and Dec. 4 from 4 to 6 p.m. The ITMA Educational Foundation has also opened submissions for its 2013 Showtime Directory and Guide Cover Competition. Students are invited to create a fabric design for print or jacquard which could be featured on a 2013 directory cover. The winning student and school will receive exposure in the Showtime Preview, and the student will also receive $500. HTT

Gilt Home

The bulk of the collection is furniture, with upholstered sofas, modulars and chairs representing the largest offering. But there are also six rug styles, offered in a variety of sizes, from runners to room-size, ranging in price from $125 to $1,499. There are also a number of decorative pillows in velvet, shearling and other fabric coverings. At the present time there are no core home textiles products such as bedding or towels but those could be added down the road, the company said. Delevan, an interior designer who also was a former editor with the now

defunct Domino magazine, began designing the collection in May. The company said it was “created with functionality in mind. It was important for Tom to create a collection that’s of great quality and at the same time, offers great value, style and accessibility.” Gilt said the timing was right for it to move into its own branded collection. “In the fashion world, there are plenty of great designs at every price point. However this is less true in home design where Tom, along with Gilt, believed there was an opportunity to offer great design and accessible prices.” HTT

LAUNCH FROM PAGE 1

expanding their businesses. OneKingsLane has offering curated collections of products under its name and just this past week another site, Fab, debuted its own collection of sheets and bedding. The Gilt Home Collection broke Nov. 14 at 9 p.m. on the Gilt site and will be offered at flash sale prices through next Wednesday. After that the collection will continue to be featured on the site but will return to regular retail prices.

23

Home Textiles Today

360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com www.facebook.com/httmag EDITOR-IN-CHIEF Jennifer Marks 10 Ocean Blvd #8B Atlantic Highlands, N.J. 07716 (732) 204-2012 | jnegley@hometextilestoday.com PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | wshoulberg@hometextilestoday.com SENIOR EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | cbcorral@aol.com MANAGING EDITOR Julie Murphy (646) 805-0224 | jmurphy@hometextilestoday.com CONTRIBUTING GRAPHIC ARTIST Desiree Nunez (646) 805-0233 | dnunez@giftsanddec.com DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | dfrench@sandowmedia.com ASSOCIATE PUBLISHER, ACCOUNT MANAGER SOUTH/EAST/CHINA Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER NORTHEAST/MIDWEST/ WEST COAST/CANADA 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, 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 2305 9305 Fax: 91-22-66634596 | Kaushal@kaushals.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@sandowmedia.com DIRECTOR, WEB OPERATIONS Chris Schultz | (336) 605-1076 | cschultz@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 PRESIDENT, FURNITURE TODAY GROUP Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com FOUNDING EDITOR-IN-CHIEF Carole Sloan 1979-2011

SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow CFO/COO Christopher Fabian

The Toscana Shearling pillow and the Lulu hand-woven flatweave rug are among Gilt’s Home collection.

HFPA Meeting HFPA FROM PAGE2

New York, to coordinate educational efforts within the textiles area. The final presentation at the meeting was from The NPD Group, the consumer tracking organization that specifically follows the home textiles industry. Carrie O’Connor, account manager for several home categories, gave an overview of the company and provided the findings of some recent research, gleamed from consumer interviews. Among them: • Consumer confidence in the

htt121102_001_012_023.indd 23

economy is rising, from 36.6% of people who felt positive about things a year ago to 41.1% this past September. • NPD is expecting a better-thanaverage holiday shopping season, citing “frugal fatigue” as a reason why consumers will buy more over the next six weeks. • The sweet demographic spot for home textiles remains people over age 45 making $75,000 or more. People who fit into those categories have increased their purchases more than the general population. • Online’s share of the market con-

tinues to increase, depending on the specific product category. In bedding, 11.7% of purchases are made online; in windows 10.6%; in bath, 5.5%; and in kitchen and dining, 5%. She also outlined several broad trends NPD sees impacting the home textiles business: increased consumer preference for convenience; the doit-yourself economically movement; the need for little luxuries; consumers seeking well-being; and more growth in less utilitarian, more “form” products such as decorative pillows versus more commodity “functional” products likes sheets and towels. HTT

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 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 29 times a year except for the weeks of 1/16, 2/6, 2/20, 3/12, 3/26, 4/9, 4/23, 5/7, 5/21, 6/4, 6/18, 7/2, 7/16, 7/30, 8/13, 8/27, 9/17, 10/1, 10/15, 10/29, 11/12, 11/26, 12/10, 12/24 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 ©2012 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $169.97; 1 year, other countries $325.99 for surface mail . 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.40624074. 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; APC; PO Box 503, RPO West Beaver Creek, Rich Hill, ON L4B 4R6

11/15/2012 4:24:51 PM


Lenzing AG, A-4860 Lenzing, Austria

The fiber brand for the botanic bed TENCEL速 is made from wood and is thus 100 % from Nature. TENCEL速 can be used in lots of different ways in beds, starting with mattresses and mattress overlays, to bed covers and bed linens, through to lingerie. Thus a completely botanic bed becomes a reality. Lenzing Fibers, Inc. 530 Seventh Avenue, Suite 808, New York, NY 10018-3508 Phone: 212 944-7898, E-Mail: n.nadash@lenzing.com

www.lenzing.com/tencel


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