Home Textiles Today 2013 Business Annual by Sandow Media

Monday, January 28, 2013

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

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hometextilestoday.com

| Vol. 34, No. 4 | $85

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Home Textiles Today

January 28, 2013

Table of Contents

Database Retailing Giants Top 50 home textiles retailers ............. 6

Supplier Giants Top 15 home textiles manufacturers .. 20

Top Of Bed .......................................... 24 Sheets .................................................. 26 Area Rugs ............................................ 27 Kitchen Textiles ................................... 28 Bath...................................................... 30 Utility Bedding .................................... 32 Window Treatments ........................... 34

Editor’s Note: HTT has eliminated the report that ranks the top five suppliers by product category. As the industry has shifted from easily identifiable category leaders based in the U.S. to a collection of often privately held manufacturing companies in many countries, it has become difficult to pin down some of the newer resources. Suppliers have also become hesitant to confirm volume estimates, which has prevented this feature from adhereing to the accuracy standards HTT strives to achieve. HTT is open to reviewing this decision and welcomes your feedback.

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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 2/4, 2/18, 3/4, 3/25, 4/8, 4/22, 5/6, 5/20, 6/3, 6/17, 7/1, 7/15, 7/29, 8/12, 8/26, 9/9, 9/30, 10/14, 10/28, 11/11, 11/25, 12/9 and 12/23 by Furniture/Today Media Group, 360 Park Avenue South, 17th fl., New York, NY, 10010 a subsidiary of Sandow Media LLC, 3651 FAU Boulevard, Boca Raton, FL 33431. Periodicals postage paid at New York, NY, and additional mailing offices. HOME TEXTILES TODAY copyright ©2013 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $189.97; 1 year, other countries $345.97 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

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 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/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 9305/6/7 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

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Top 50

Home Textiles Today

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January 28, 2013

BBB Takes Top Spot HOW THE TOP 50 WERE RANKED

Walmart Slips to No. 2 BY JENNIFER MARKS N EW YORK — Bed Bath & Beyond is now the

nation’s largest seller of home textiles, ending Walmart’s 11-year reign at the top of the heap. Bed Bath & Beyond’s $3.74 billion in 2011 home textiles sales edged Walmart’s by $115 million. There was only one other ranking swap among the Top 10 retailers: Macy’s pushed Kmart out of the No. 6 spot with $870 million in home textiles sales, outpacing Kmart by $55 million. Although JCPenney hung on to the No. 4 position, it was the only company in the Top 10 to record a doubledigit decline in home textiles sales last year, down 19.1% to $1.84 billion. All told, the Top 10 retailers accounted for 64.7% of the country’s $25.72 billion in home textiles retail sales last year, down slightly from 66.6% in 2010. The Top 5 retailers’ share of the universe was 50.6% in 2011 compared to 52.7% in 2010. This year’s ranking includes a number of new entries, primarily from the worlds of ecommerce and regional chains. Amazon leaps onto the charts at No. 18 with $250 million in home textiles sales. That figure includes third party sales as well as product Amazon buys directly from suppliers. That is the biggest change among retailers ranked 11 to 21, however it is worth noting Ikea’s

rise through the ranks. Now with 38 U.S. stores, Ikea is just $7 million off lapping Family Dollar for 11th place. Certainly, Family Dollar is growing faster – with a blistering net store opening pace of 370 to 400 units this year compared to Ikea’s strategy of adding one new U.S. store every year or so. However, with Family Dollar increasingly focused on expanding food to drive traffic and Ikea’s broader textiles assortment, the Swedish company could forseeably overtake the hometown deep discounter. There’s also a tight cluster in rankings 19-21, where Tuesday Morning bests Costco by just $2 million and Costco outsells Pier 1 by $5 million. Together, the Top 20 retailers accounted for 77.8% of home textiles retail sales in 2011 vs. 79.6% in 2010. The Top 25 owned 81.8% of total market sales last year compared to 83.5% in 2010. Other newcomers to the rankings fall a bit further back in the pack: • Overstock.com, No. 35 with $125 million in sales; • BJ’s Wholesale Club, No. 45 with $68 million in sales; • Bealls, No. 46 with $65 million in sales. In another first, HTT this year is running a list of “contenders,” retailers whose home textiles sales don’t yet put them into the Top 50, but whose progress we’re monitoring. In addition to regionals like Fred’s, Boscov’s and Gordmans, the list includes flash sales sites Gilt Group, Wayfair, Hayneedle and One King’s Lane. HTT

Home Textiles Today’s exclusive survey of the Top 50 home textiles retailers ranks the top U. S. retailers by sales of 2011 home textiles. All home textiles categories, bed, bath, kitchen, table linen and window coverings, including alternative window coverings, custom decorating and accessories that are generally sold with textile items, are included in the sales estimates. In order to be eligible for the ranking, each retailer must sell more than one home textile category. The ranking crosses all formats of home textiles retailing. Companies are classified by their primary channel of distribution. Channels include discounters; specialty stores; home improvement centers; department stores; dollar stores; national chains, such as Sears; direct-to-consumer retailers that sell primarily through the Internet, catalogs and/or television; warehouse membership clubs; military exchanges; furniture stores; and supercenters, which sell both food and general merchandise in their mix. For Wal-Mart, Kmart and Target, the ranking includes discount stores and supercenters. All home textiles sales information, except for publicly held companies that break out line-of-business sales for home textiles, are Home Textiles Today market research estimates. Sales figures are given for the 12-month period ending closest to December 31, 2011. Individual retailer descriptions include the date of the fiscal year end or the 12-month periods that deviate significantly from that date. Sales estimates are based on information from a variety of sources including the companies themselves, public company filings with the Securities and Exchange Commission, discussions with industry analysts and suppliers and published and unpublished reports, including newspaper articles in various retail trading areas. Sales were assumed flat for those retailers where 2010 data was not available when comparing total 2011 and 2010 data for the Top 50. In cases where companies have identical sales of home textiles, the one with the fastest sales growth is ranked higher.

g n i l i a ts t re ian g

TOP MULTI-DIVISION OPERATIONS RANK

1 2 3 4 5

COMPANY/CITY

HOME TEXTILES SALES ($MILLIONS) 2011 2010

SHARE OF HOME TEXTILES UNIVERSE

NUMBER OF STORES 2011 2010

Wal-Mart Bentonville, Ark.

$3,823

$3,761

1.6%

14.9%

4,479

4,413

Sears Holding Corp. Hoffman Estates, Ill.

$1,185

$1,220

-2.9%

4.6%

2,153

2,163

TJXC ompanies Framingham, Mass.

$1,052

$968

8.7%

4.1%

2,232

2,083

Macy’s,I nc. New York

$1,015

$955

6.3%

3.9%

844

850

$251

$225

11.6%

1.0%

HSNi New York

1. Includes No. 2 Wal-Mart and No. 25 Sam’s Club 2. Includes No. 7 Kmart, No. 17 Sears and No. 43 Lands’ End 3. Includes No. 8 T.J. Maxx/Marshalls and No. 16 HomeGoods

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PERCENT CHANGE

4. Includes No. 6 Macy’s and No. 29 Bloomingdale’s 5. Includes No. 27 Cornerstone Brands and No. 41 HSN Source: Home Textiles Today market research

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Home Textiles Today

Top 50

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Specialty Stores Take Another Bite from Department Stores N EW YORK — Once again, the specialty chain store channel gained home textiles share on a year-over-year basis, pulling 2% from the department store channel.

In general, most department stores on HTT’s Top 50 ranking posted year-over-year gains. The biggest impact on the segment came from JCPenney, where home textiles sales dropped

19.1% — far more consequential than the 3.2% decline at The Bon-Ton Stores and the 1.4% slip at Dillard’s. Aggregate home textiles sales for department stores in HTT’s Top 50 retailers totaled, $4.495 billion, down 7.2% from 2010. Specialty store retailers, by contrast, were on fire in 2011. Ten of the 11 companies ranking on HTT’s Top 50 chart posted positive growth last year. The exception was Crate & Barrel, where sales were flat. Three specialty chains posted doubledigit gains in home textiles sales: Pier 1, up 12.3%; Home Goods, up 12.2%; and Restoration Hardware, up 10.6%. As a group, specialty store retailers in the Top 50 generated $6.53 billion in home textiles sales last year, up 6.5% year over year. The discount department store channel continues to own the largest slice of the pie, hanging onto 40% of home textiles sales, or nearly $9.37 billion. The channel’s share grew just 0.9% in 2011. The biggest yearover-year growth came from offpricers Ross Stores, up 9.4%; and T.J.Maxx/Marshalls, up 7.2. Both Kmart and Target logged declines — with home textiles sales off 3.1% and 1.8%, respec-

2011 STORE BREAKOUT BY TYPE PERCENTAGE OF TOP 50 SALES BY DISTRIBUTION CHANNEL Specialty Stores gained 2% of share from 2010, while Department Stores lost 2%. Warehouse Clubs

Dollar Stores

Other*

Home improvement Centers

Direct-toconsumer

5% Department Stores

Discount Stores & Supercenters

19%

40% Specialty Stores

28% *Other includes Sears, Ashley Furniture HomeStores and Army & Air Force Exchange Service

2011 Top 50 Total: $23.6 Billion 2010 Top 50 Total: $23.4 Billion Top 50 overall % change over 2010: 0.9% Source: Home Textiles Today market research

TOP 5 HOME TEXTILES DISCOUNTERS TOP 50 RANK

COMPANY

HOME TEXTILES SALES (IN MILLIONS) 2011 2010

PERCENT CHANGE

SOME TOP 50 Contenders ESTIMATED 2011 HOME TEXTILES SALES IN MILLIONS

TYPE

COMPANY

HEADQUARTERS

Cost Plus World Market

Oakland, Calif.

$50

The Neiman Marcus Group

Dallas

$50

DTC

Linen Source

Beverly, Mass.

$48

Fred’s

Memphis, Tenn.

$43

DTC

Gilt Groupe

New York

$40

DTC

Wayfair

Boston

$40

Gordmans

Omaha, Neb.

$35

DTC

Hayneedle

Omaha, Neb.

$30

DTC

One Kings Lane

New York

$28

Boscov’s

Reading, Pa.

$20

All home textiles sales information, except for publicly held companies that break out lineof-business sales for home textiles, are Home Textiles Today market research estimates. Store type: DTC=Direct-to-consumer; DC=Discount department store; DP=Department store; SP= Specialty store Source: Home Textiles Today market research

tively. The warehouse club segment posted strong growth in 2011, with home textiles sales among the Top 50 clubs up 5.8% to $491.0 million. The addition of BJ’s Wholesale Club to the Top 50 helped raise the bar, but its competitors also scored solid gains last year. Costco boosted its home textiles sales 7.1%, and Sam’s Club pushed up 6.5%. Among multi-division operations, Wal-Mart Stores Inc.’s U.S. consolidated home textiles sales remain firmly at the top of

heap. However, it’s worth noting that the company’s home textiles sales across discount stores, supercenters and clubs outstrips the Bed Bath & Beyond format’s 2011 sales by just $83 million. The biggest gainer among the multi-division operations was HSNi, up 11.6% to $251 million. Its Cornerstone Brands division of direct-to-consumer sales through online and catalog ranked No. 27 on the Top 50 chart, with $180 million. The remainder comes from HSN online and television sales.

TOP 5 HOME TEXTILES DEPARTMENT STORES

NUMBER OF STORES 2011 2010

TOP 50 RANK

COMPANY

HOME TEXTILES SALES (IN MILLIONS) 2011 2010

PERCENT CHANGE

NUMBER OF STORES 2011 2010

Wal-Mart

$3,625

$3,575

1.4%

3,868

3,804

JCPenney

$1,840

$2,275

-19.1%

1,102

1,106

Target

$2,505

$2,550

-1.8%

1,763

1,750

Kohl’s

$1,300

$1,275

2.0%

1,127

1,089

Kmart

$815

$841

-3.1%

1,305

1,307

Macy’s

$870

$820

6.1%

800

805

T.J. Maxx/Marshalls

$740

$690

7.2%

1,858

1,747

Bloomingdale’s

$145

$135

7.4%

Ross Stores

$525

$480

9.4%

1,125

1,055

The Bon-Ton Stores

$121

$125

-3.2%

272

275

1. Includes sales from supercenters Source: Home Textiles Today market research

Source: Home Textiles Today market research

TOP 5 HOME TEXTILES SPECIALTY RETAILERS

TOP 3 HOME TEXTILES DOLLAR STORES

TOP 50 RANK

COMPANY

Bed Bath & Beyond

HOME TEXTILES SALES (IN MILLIONS) 2011 2010

PERCENT CHANGE

NUMBER OF STORES 2011 2010

TOP 50 RANK

COMPANY

HOME TEXTILES SALES (IN MILLIONS) 2011 2010

PERCENT CHANGE

NUMBER OF STORES 2011 2010

$3,740

$3,535

5.8%

1,101

1,071

Family Dollar

$458

$453

1.1%

7,171

6,888

Williams-Sonoma

$684

$634

7.9%

560

576

Dollar General

$137

$126

8.7%

9,937

9,372

Ikea

$451

$415

8.7%

Dollar Tree

$64

$61

4.9%

4,252

4,015

Anna’s Linens

$405

$378

7.1%

296

278

Luxury Linens

$313

$305

2.6%

461

443

Source: Home Textiles Today market research

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Source: Home Textiles Today market research

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January 28, 2013

Home Textiles Today

Top 50

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TOP 10 HOME TEXTILES RETAILERS

BY % SALES GROWTH

BY NET SALES GROWTH HOME TEXTILES SALES* 2011 2010

PERCENT CHANGE

NET CHANGE*

$156

15.4%

$24

$220

$196

12.3%

$24

$312

$278

12.2%

$34

$70

11.4%

Restoration Hardware (28) Corte Madera, Calif. $146

$132

10.6%

$14

Ross Stores (10) Pleasanton, Calif.

$525

$480

9.4%

$45

Ikea( 12) Conshohocken, Pa.

$451

$415

8.7%

$36

Dollar General (33) Goodlettsville, Tenn.

$137

$126

8.7%

$11

Williams-Sonoma( 9) San Francisco

$684

$634

7.9%

$50

Bloomingdale’s( 29) New York

$145

$135

7.4%

$10

RANK

TYPE

COMPANY (TOP 50 RANK)/CITY

DTC

Cornerstone Brands (27) Waltham, Mass. $180 Pier 1 Imports (21) Fort Worth, Texas HomeGoods( 16) Framingham, Mass.

2 3 4 5 6 7 8 9 10

SP/DTC

RANK

1 2 3

Ashley Furniture HomeStores (39) Arcadia, Wis. $78

4 5 6 7 8 9 10

* In millions of dollars

Source: Home Textiles Today market research

HOME TEXTILES SALES* 2011 2010

Bed Bath & Beyond (1) Union, N.J. $3,740

$3,535

5.8%

$205

Wal-Mart( 2) Bentonville, Ark.

$3,625

$3,575

1.4%

$50

$870

$820

6.1%

$50

T.J. Maxx/Marshalls (8) Framingham, Mass. $740

$690

7.2%

$50

Williams-Sonoma( 9) San Francisco

$684

$634

7.9%

$50

Ross Stores (10) Pleasanton, Calif.

$525

$480

9.4%

$45

Ikea( 12) Conshohocken, Pa.

$451

$415

8.7%

$36

HomeGoods( 16) Framingham, Mass.

$312

$278

12.2%

$34

Anna’s Linens (14) Costa Mesa, Calif.

$405

$378

7.1%

$27

Kohl’s( 5) Menomonee Falls, Wis. $1,300

$1,275

2.0%

$25

DC/SC

SP/DTC

Macy’s( 6) New York

* In millions of dollars

Source: Home Textiles Today market research

TOP 10 HOME TEXTILES RETAILERS

BY % UNIT GROWTH

BY NET UNIT GROWTH NUMBER OF STORES 2011 2010

PERCENT CHANGE

NET CHG. (UNITS)

50.0%

374

336

11.3%

1,533

1,398

9.7%

135

501

467

7.3%

1,125

1,055

6.6%

296

278

6.5%

T.J. Maxx/Marshalls (8) Framingham, Mass. 1,858

1,747

6.4%

111

6.3%

Dollar General (33) Goodlettsville, Tenn.

9,937

9,372

6.0%

565

Dollar Tree (47) Chesapeake, Va.

4,252

4,015

5.9%

237

TYPE

COMPANY (TOP 50 RANK)/CITY

DTC

Hanover Direct (26) Weehawken, N.J.

HomeGoods( 16) Framingham, Mass.

2 3 4 5 6 7 8 9 10

Big Lots (13) Columbus, Ohio Hobby Lobby Stores (48) Oklahoma City Ross Stores (10) Pleasanton, Calif. Anna’s Linens (14) Costa Mesa, Calif.

Garden Ridge (49) Houston, Texas

1 2 3 4 5 6 7 8 9 10 Source: Home Textiles Today market research

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RANK

NET CHANGE*

COMPANY (TOP 50 RANK)/CITY

TOP 10 HOME TEXTILES RETAILERS RANK

PERCENT CHANGE

TYPE

NUMBER OF STORES 2011 2010

PERCENT CHANGE

NET CHG. (UNITS)

TYPE

COMPANY (TOP 50 RANK)/CITY

DollarG eneral( 33) Goodlettsville, Tenn.

9,937

9,372

6.0%

565

Family Dollar (11) Matthews, N.C.

7,171

6,888

4.1%

283

Dollar Tree (47) Chesapeake, Va.

4,252

4,015

5.9%

237

Big Lots (13) Columbus, Ohio

1,533

1,398

9.7%

135

T.J. Maxx/Marshalls (8) Framingham, Mass. 1,858

1,747

6.4%

111

Ross Stores (10) Pleasanton, Calif.

1,125

1,055

6.6%

Wal-Mart( 2) Bentonville, Ark.

3,868

3,804

1.7%

Kohl’s( 5) Menomonee Falls, Wis.

1,127

1,089

3.5%

HomeGoods( 16) Framingham, Mass.

374

336

11.3%

Hobby Lobby Stores (48) Oklahoma City

501

467

7.3%

DC/SC

Source: Home Textiles Today market research

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Home Textiles Today

January 28, 2013

Top 50

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RETAILING GIANTS RANK 2011

RANK 2010

STORE TYPE

COMPANY

HEADQUARTERS

HOME TEXTILES SALES IN MILLIONS 2011 2010

% CHANGE

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

NUMBER OF STORES 2011 2010

Bed Bath & Beyond

Union, N.J.

$3,740

$3,535

5.8%

39.4%

14.5%

1,101

1,071

DC/SC

Wal-Mart

Bentonville, Ark.

$3,625

$3,575

1.4%

14.1%

3,868

3,804

DC/SC

Target

Minneapolis

$2,505

$2,550

-1.8%

3.7%

9.7%

1,763

1,750

DP/DTC

JCPenney

Plano, Texas

$1,840

$2,275

-19.1%

10.7%

7.2%

1,102

1,106

Kohl’s

Menomonee Falls, Wis.

$1,300

$1,275

2.0%

6.9%

5.1%

1,127

1,089

Macy’s

New York

$870

$820

6.1%

3.4%

800

805

DC/SC

Kmart

Hoffman Estates, Ill.

$815

$841

-3.1%

5.3%

3.2%

1,305

1,307

T.J.M axx/Marshalls

Framingham, Mass.

$740

$690

7.2%

4.8%

2.9%

1,858

1,747

SP/DTC

Williams-Sonoma

San Francisco

$684

$634R

7.9%

18.4%

2.7%

560

576

RossS tores

Pleasanton, Calif.

$525

$480

9.4%

6.1%

2.0%

1,125

1,055

Fiscal year ended Feb. 25. Operated 1,173 stores in all 50 states, the District of Columbia, Puerto Rico and Canada at fiscal year end, including 993 Bed Bath & Beyond stores, 71 Christmas Tree Shops, 45 Harmon stores, and 64 buybuyBABY stores. Sales and store counts do not include the stores in Canada, the Harmon Face Value stores, or the Home & More stores in Mexico. Domestics accounted for 40% of 2011 sales and 41% of 2010 sales. Bed linens accounted for about 12% of sales both years, the only product category to account for 10% or more of sales. Total 2011 sales were $9.5 billion, up 8.5% from $8.76 billion in 2010. Comp store sales increased 5.9%, compared to a 7.8% increase in 2010. Recently announced two acquisitions, Cost Plus, and Linen Holdings, a business-to-business distributor of a variety of textile products. The company plans to open about 40 new stores this year.

Fiscal year ended Jan. 31. Sales and store counts are for U.S. Wal-Mart stores and Neighborhood Market stores, plus online sales; excludes No. 25 Sam’s Clubs. In 2011, opened 43 new supercenters and converted 79 discount stores to supercenters; also opened 27 new Neighborhood Markets and closed six. Overall comp store sales increased 0.3% last year. Sales for the home category accounted for 5% of sales in 2011 and 2010. Home generated positive same-store sales during last year’s fourth quarter, the first for quarterly home comps in two-plus years. Private-label store brands include Hometrends, Mainstays and Canopy. Total 2011 sales were $264.2 billion, up 1.5% from $260.3 billion in 2010.

Fiscal year ended Jan. 28. Opened 21 new stores in 2011 and closed eight. Comp store sales increased 3.0% last year. Average transaction amount increased 2.6% and units per transaction increased 2.3% in 2011. Home furnishings and decor, as a percentage of total, comprised 18% in 2011, down from 19% in 2010. Soft home products expercienced double-digit cost increases, driving up retail prices. Is updating its private Target Home brand this fall with new bedding, bath, rugs, table and kitchen textiles collection named Threshold. Will also debut the Nate Berkus Collection for home this fall. Total 2011 sales were $68.5 billion, up 4.1% from $65.8 billion in 2010.

Fiscal year ended Jan. 28. Opened three new stores and closed seven last year. Figures include sales from department stores, online and from 27 Home Stores and two furniture outlet stores. Closed catalog and outlet operations in 2011. Abandoned promotional discounts as a corporate strategy this February in favor of everyday pricing. 2011 comp store sales increased 0.2%. Home sales accounted for 15% of total in 2011, down from 18% in 2010. Debuted Royal Velvet line with bed, bath, rugs utility bedding and window this spring. Will revamp home in 2013 with Martha Stewart shop-in-shops as the new department’s anchor with additional shops from Michael Graves, Conran, Jonathan Adler and Bodum. Total 2011 sales were $17.3 billion, down 2.8% from $17.6 billion in 2010.

Fiscal year ended Jan. 28. Home was one of the businesses with the strongest comparable store sales growth led by strength in electrics. Home accounted for 19% of 2011 sales, the same as in 2010. Launched the Jennifer Lopez collection in multiple departments, including bedding and bath, in September. Total 2011 sales were $18.8 billion, up 2.2% from $18.39 billion in 2010. Comp store sales were up 0.5%. Opened 40 stores last year and remodeled 100. Expects to open about 20 new stores in 2012 and remodel about 50. Will open its fourth distribution center dedicated to serving its e-commerce customers, in DeSoto, Texas this summer.

Fiscal year ended Jan. 28. Sales and store counts are for Macy’s only, including 64 Macy’s Furniture Gallery stores and online. Plans to open two new Macy’s stores this year. Announced a strategic plan to target Millennial customers, ages 13 to 30, over the next three years through in-store improvements, enhancing merchandise and using new and emerging technologies to reach the group. Home sales for Macy’s corporate comprised 15% of 2011 sales, the same as in 2010. Textiles were cited as a strong category in 2011, with the Hotel and Charter Club brands performing well. Total corporate sales were $26.4 billion in 2011, up 5.6% from $25 billion in 2010.

Fiscal year ended Jan. 23. Part of publicly held Sears Holdings, which also owns No. 17 Sears and No. 43 Lands’ End. Operated 1,305 stores across 49 states, Guam, Puerto Rico and the U.S. Virgin Islands at fiscal year end. Counts include 1,279 discount stores and 26 Super Centers. Also sells online. Converted 17 Sears Essentials/ Grand Stores to Kmart stores last year and plans to convert eight more this year. Launched a home collection by Sofia Vergara this year. Other linens brands include Essential Home, Jaclyn Smith, Cannon and Country Living. Comp store sales decreased 1.4% last year. Total 2011 sales were $15.28 billion, down 2% from $15.59 billion in 2010.

Fiscal year ended Jan. 28. Part of The TJX Companies. Sales and store counts are for the Marmaxx Group operating 983 T.J. Maxx and 875 Marshalls in the U.S. and Puerto Rico at fiscal year end. The six Marshalls in Ontario, Canada and the nine Marshalls Shoe MegaShop stores are not included. The off-price retail chains sell brand-name and designer merchandise at prices 20% to 60% below department and specialty store prices. Marmaxx added a net 105 stores last year, including the conversion of a number of the A.J. Wright stores. Expects to open approximately 85 new Marmaxx stores, net of closings, in 2012. Total 2011 sales for Marmaxx were $15.37 billion, up 9% from $14.09 billion in 2010. Same store sales increased 5%. Marshalls opened its first stores in Canada in 2011. The company believes it can grow to be a 90 to 100 store chain in Canada.

Fiscal year ended Jan. 29. Publicly held, multi-channel specialty retailer of high-quality products for the home through Pottery Barn, Pottery Barn Kids, PBteen, West Elm and Williams-Sonoma. Operates retail stores and outlets in the U.S. Canada and the Middle East, e-commerce websites available to customers in more than 75 countries and direct-mail catalogs available to consumers throughout the U.S. Sales and store counts for U.S. only. In 2011, launched its global e-commerce and acquired Rejuvenation, a manufacturer and multi-channel retailer of lighting and high-end door and cabinet hardware. Also opened its first pop-up stores for West Elm and PBteen. Growth in retail and direct-to-customer net revenues were driven by the Pottery Barn, West Elm and Pottery Barn Kids brands. All brands experienced positive comp store sales increases with the exception of Williams-Sonoma, which had a slight decrease at 0.3%. Total 2011 revenues were $3.72 billion, up 6.2% from $3.5 billion in 2010. In the U.S., total revenues increased 5.6% to $3.58 billion. For 2012, W-S plans to expand its global e-commerce shipping capabilities to 99 countries and its franchise presence in the Middle East to 18 stores.

Fiscal year ended Jan. 28. Operated 1,037 Ross Dress for Less locations in 29 states, the District of Columbia, and Guam and 88 dd’s Discounts stores in seven states at fiscal year end. Both off-price chains target the value-conscious consumer, with Ross’ target customers from more middle income households and dd’s from more moderate income households. Home accents and bed and bath accounted for 25% of 2011 sales, the same as in 2010. Total 2011 sales were $8.61 billion, up 9.4% from $7.87 billion in 2010. Comp store sales again increased 5%. Opened 70 net new stores last year, including entry into Illinois, with 12 Ross stores in the greater Chicago area, two Ross stores in Arkansas and one in the District of Columbia. Acquired the land and buildings for its future corporate headquarters in Dublin, Calif., and will be moving into the Emerald Point office complex by mid-2014.

All home textiles sales information, except for publicly held companies that break out line-of-business sales for home textiles, are Home Textiles Today market research estimates. All data for calendar year ending Dec. 31, fiscal year-end or trailing 12 months closest to that date. NS=No stores; NA=Not available; R=Revised Store type: DTC=Direct-to-consumer; CH= Chain store; DC=Discount department store; DP=Department store; DS=Dollar store; HIC=Home improvement center; PX=Military exchange; SC= Supercenter (includes food in merchandise mix); SP= Specialty store; W=Warehouse club; FS=Furniture store Source: Home Textiles Today market research

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RETAILING GIANTS RANK 2011

RANK 2010

STORE TYPE

COMPANY

HEADQUARTERS

HOME TEXTILES SALES IN MILLIONS 2011 2010

FamilyD ollar

Matthews, N.C.

$458

$453

1.1%

5.1%

1.8%

7,171

6,888

Ikea

Conshohocken, Pa.

$451

$415

8.7%

12.2%

1.8%

BigL ots

Columbus, Ohio

$432

$424

1.9%

8.4%

1.7%

1,533

1,398

Anna’sL inens

Costa Mesa, Calif.

$405

$378

7.1%

96.2%

1.6%

296

278

LuxuryL inens

Burlington, N.J.

$313

$305

2.6%

8.1%

1.2%

461

443

HomeGoods

Framingham, Mass.

$312

$278

12.2%

13.9%

1.2%

374

336

Sears

Hoffman Estates, Ill.

$300

$308

-2.6%

1.4%

1.2%

834

842

18 NR

DTC

Amazon.com

Seattle

$250

0.5%

1.0%

TuesdayM orning

Dallas

$227

$233

-2.6%

27.9%

0.9%

861

845

Costco

Issaquah, Wash.

$225

$210

7.1%

0.2%

0.9%

433

424

Pier 1 Imports

Fort Worth, Texas

$220

$196

12.3%

15.8%

0.9%

971

967

% CHANGE

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

NUMBER OF STORES 2011 2010

Fiscal year ended Aug. 27. Sales and store counts for trailing 12 months ended Feb. 25. Operates more than 7,000 general merchandise retail discount stores in 44 states. Stores average 7,100 square feet of selling space and offer merchandise at prices from less than $1 to $10. Home product sales, including textiles such as blankets, sheets and towels, increased 1.2% to $1.08 billion, from $1.06 billion in 2010. Total 2011 sales for the chain increased 8.3% to $8.89 billion. During this past fiscal year, launched a comprehensive store renovation program and significantly expanded its selection of both food and health and beauty aids. This fiscal year, plans to add 450 to 500 new stores, a more than 50% increase over the past fiscal years store openings. Will also open its first stores in California.

Fiscal year ended Aug. 31. Sweden-based specialist with some 335 stores in 40 countries. Sales and stores counts are for U.S. only. Phone-order sales from a Baltimore call center and online sales are included. The textiles mix includes bed, bath and kitchen textiles, rugs, cushions and cushion covers, window treatments, blankets, throws, and placemats and dining textiles. Total sales were $3.7 billion for the most previous fiscal year, up 8.8% from $3.4 billion. Late July 2011, opened its first store in Colorado, a 415,000-square-foot Denver-area store in Centennial. Has rolled out Ikea Family, a customer loyalty program in all its U.S. stores, offering consumers discounts and other perks. Plans to expand its store in the Austin, Texas, area in Round Rock, by 54,000 square feet, with a summer completion date. Is in the process of installing solar panels atop 85% of its U.S. locations.

Fiscal year ended Jan. 28. Opened 92 stores and closed 39 last year. Acquired 89 stores in Canada as a result of the Liquidation World acquisition, not included in sales or store counts. Home sales, including domestics, stationery and home decor, increased 2.0% last year, and comprised 15.5% of total sales in 2011. Sales of furniture and mattresses are tracked separately and accounted for 17.2% of 2011 sales. Expanded square footage for home, especially in top-of-bed offerings, at end of first quarter 2012. Comp store sales increased just 0.1% last year. Total 2011 U.S. sales were $5.14 billion, up 3.8% from $4.95 billion in 2010.

Fiscal year ended Jan. 31. Privately held, founded in 1987. Operates in 18 states and the District of Columbia and sells online. Launched its first proprietary licensed line in September. The new program by Hispanic TV celebrity Domenica Brazzi includes bedding, bath, home décor, window and tabletop collections. Plans to open about 30 units in 2012, including its first two stores in Puerto Rico opening this summer. Will also remodel 25 stores and relocate ten. The new stores will continue to focus on 10,000-square-foot layouts heavily skewed toward bedding and window. Total 2011 sales were $421 million, up 7.1% from $393 million in 2010. Anna’s Linens is celebrating its 25th anniversary this year.

Fiscal year ended Jan. 28. Part of publicly held Burlington Coat Factory Investments Holdings. Operates as a home furnishing and linens department in the company’s Burlington Coat Factory division. In 2011, the company opened 20 new BCF stores and closed one. Plans to open between 17 and 25 new stores in 2012. Continues to improve the customer’s store experience with its store refresh program, customer satisfaction program, training, development and recognition of its store employees, and execution within the stores to get goods to the floor more quickly. Total consolidated 2011 sales were $3.85 billion, up 5% from $3.67 billion in 2010. Comp store sales were up .7% due to improved merchandise content and customer experience initiatives. BCF stores account for more than 99% of the company’s sales.

Fiscal year ended Jan. 28. Part of The TJX Companies, sales and store counts are for the stand-alone stores as well as the HomeGoods sections in T.J.Maxx and Marshalls units in the U.S. and Puerto Rico. The off-price retailer sells a broad array of home basics, giftware, accent furniture, lamps, rugs, wall décor, decorative accessories, children’s furniture, seasonal merchandise and other fashions for the home. Same store sales increased 6% last year. Total 2011 sales for the retailer were $2.24 billion, up 14.6% from $1.96 billion in 2010. HomeGoods added a net 38 stores last year, including the conversion of A.J. Wright units. Plans to add a net 40 stores this year.

Fiscal year ended Jan. 28. Part of publicly held Sears Holdings, which also owns No. 7 Kmart and No. 43 Lands’ End. Operated 834 full-line stores across all 50 states and Puerto Rico at fiscal year end. Stores are primarily mall-based and average 134,000 square feet. Also sells home products online. Closed 34 stores during the first half of 2012. Textiles brands including Cannon, Country Living, Casa Cristina and Ty Pennington Style. Debuted the Kardashian Kollection for home this spring featuring bedding, bath towels and bath accessories. Comp store sales decreased 3.0% last year. Total 2011 sales were $21.65 billion, down 2.8% from $22.28 billion in 2010.

Publicly held, fiscal year ended Dec. 31. Began selling online in 1995. Sells directly to consumers and through third-party vendors. Fulfills orders through U.S. and international warehouses and through co-sourced and out-sourced arrangements. North American sales accounted for 56% of total sales in 2011. Consumer electronics and other merchandise, including fashion bedding, utility bedding, bath and rugs, comprised 60% of net sales. Linen brands include Barbara Barry, Nautica, Oscar de la Renta, Tommy Bahama, Tommy Hilfiger, Berkshire Blanket, Croscill and Royal Velvet. Total 2011 sales were $48.1 billion, up 40.6% from $34.2 billion in 2010.

Fiscal year ended June 30. Sales and store counts for trailing 12 months ended Dec. 31. Publicly held closeout retailer of upscale decorative home accessories, housewares, and gifts. Purchases first quality, brand name merchandise such as Peacock Alley and Sferra linens, Michael Kors bath towels and Couristan rugs in textiles, at closeout pricing and sells at prices well below those charged by department stores and specialty and catalog retailers. Total 2011 trailing 12-month sales were $812.8 million, down 1.5% from $824.9 million in 2010. Plans to expand its store base at levels slightly greater than this past fiscal year. Will also continue to pursue attractive expansion and relocation opportunities in its existing store base.

Fiscal year ended Aug. 23. Sales and store counts are for the trailing 12 months ended Feb. 12 and include the stores in the U.S. and Puerto Rico only. Also includes textiles sold online. Opened nine net new clubs during the trailing 12 months. Softlines, including apparel, domestics, jewelry, housewares, media, home furnishings and small appliances, accounted for 10% of fiscal 2011 and 2010 sales. Home textiles carried include bed and bath assortments, as well as rugs and window coverings. Total 2011 trailing 12 month sales were $91.46 billion, up 14.0% from $80.25 billion in 2010.

Fiscal year ended Feb. 25. Operated 971 stores in the U.S., 47 in Mexico and 81 in Canada at fiscal year end. Sales and store counts for U.S. only. Textiles accounted for 15.8% of 2011 total revenues, up slightly from the 15.4% in 2010. Bedding and kitchen textiles again experienced the greatest growth in sales with bedding increasing 48.2% and kitchen textiles increasing 21.5%. Decorative pillows, the largest textiles category, increased sales 11.4%. Total 2011 revenues in the U.S. were $1.4 billion, up 10% from $1.27 billion in 2010. Is continuing to evolve into a multi-channel retailer, launching its e-commerce operation, Pier 1 To-You, July 28th with a new web site on a new platform. The business will initially carry the same merchandise as the stores, and then add categories not carried in-store. Had resumed online sales last summer with a site-to-store initiative called Pier1.2Go. In 2012, will fully remodel six to eight locations, refurbish about 100 existing stores and integrate new merchandise fixture elements into all stores.

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> hometextilestoday.com

RETAILING GIANTS HEADQUARTERS

HOME TEXTILES SALES IN MILLIONS 2011 2010

% CHANGE

Lowe’s

Mooresville, N.C.

$208

$204

2.0%

0.4%

0.8%

1,712

1,723

Meijer

Grand Rapids, Mich.

$206

$205

0.5%

1.4%

0.8%

197

195

DTC

QVC

West Chester, Pa.

$201

$194

3.6%

3.7%

0.8%

Sam’sC lub

Bentonville, Ark.

$198

$186

6.5%

0.4%

0.8%

611

609

DTC

HanoverD irect

Weehawken, N.J.

$185

$183

1.1%

0.7%

DTC

CornerstoneB rands

Waltham, Mass.

$180

$156

15.4%

17.7%

0.7%

RestorationH ardware

Corte Madera, Calif.

$146

$132

10.6%

15.2%

0.6%

Bloomingdale’s

New York

$145

$135

7.4%

0.6%

HIC

HomeD epot

Atlanta

$144

$141

2.1%

0.2%

0.6%

1,980

1,982

RANK 2011

RANK 2010

STORE TYPE

COMPANY

HIC

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

NUMBER OF STORES 2011 2010

Fiscal year ended Feb. 3. Sales and store counts exclude units in Canada and Mexico. Opened 25 stores, including two relocations and seven that opened in Canada during 2011. Also closed 27 underperforming stores in the U.S. in the second half of the year and discontinued a number of planned new store projects. Expects to open approximately 10 stores in 2012, and about 15 stores per year thereafter. Operates 14 U.S. distribution centers with a fifteenth under construction. Comp store sales were flat last year. Flooring, home fashions, storage and cleaning, seasonal living, nursery and lumber performed at approximately that overall company average. Total 2011 sales were $50.2 billion, up 2.9% from $48.8 billion in 2010. In December, acquired ATG stores, an online retailer of home improvement and lifestyle products, allowing Lowe’s to more than double the number of items available through Lowes.com in 2012.

Family owned and operated. Operates stores throughout Michigan, Ohio, Indiana, Illinois and Kentucky. In May 2011, opened a 191,000 square-foot supercenter in southwest Michigan in Lincoln Township. During the summer, opened a new store concept in the Chicago market called Meijer Marketplace, a more localized grocery store. At 96,000 square feet, the store is about half the size of Meijer’s largest supercenters, but still has the benefits of the larger stores. The “mini” supercenter provides local customers with a tailored grocery offering along with a broad variety of general merchandise items. Opened a supercenter in Bath Township, Mich., earlier this year and announced plans it wants to open its first Wisconsin store in 2014, in Franklin.

Fiscal year ended Dec. 31. Part of publicly held Liberty Interactive, formerly known as Liberty Media. Markets and sells primarily through its televised shopping programs on the QVC networks and online. Operates its Studio Store located at QVC headquarters and six Outlet stores – two each in Pennsylvania and Delaware and one each in South Carolina and North Carolina. Home, accounted for 55% of sales in 2011, up from 44% in 2010. Total 2011 U.S. revenues were $5.41 billion, up 3.4% from $5.24 billion in 2010. In February of last year, Thom Filicia debuted his brand-new bedding collection, including an assortment of top-of-bed pieces. In May 2011, QVC closed its flagship store at Minnesota’s Mall of America. In September, Liberty Interactive completed the split-off of a wholly owned subsidiary, Liberty Media Corporation. The two operate as separately publicly traded companies.

Fiscal year ended Jan. 31. Division of publicly held Wal-Mart. Sales and store counts are for Sam’s Club division only, including online sales. Opened three new clubs last year and closed one. The home and apparel category, including textiles, as well as home improvement, outdoor living, grills, furniture, mattresses, apprel, jewelry, housewares and small appliances, accounted for 8% of 2011 and 2010 sales. Comp store sales, excluding fuel, increased 5.0% last year. Total 2011 sales were $53.79 billion up 8.8% from $49.46 billion in 2010. Net sales were driven by increased customer traffic, increases in average tickets and higher fuel sales.

Privately owned. Provides quality branded merchandise for the home through catalogs, e-commerce web sites and retail locations for The Company Store, Company Kids and Domestications. Operates four Company Stores in Madison and Pleasant Prairie, Wis.; Kittery, Maine; and Mebane, N.C.; and one Company Store Outlet in La Crosse, Wis. Operates a Domestications Outlet in Roanoke, Va. Last August, opened The Company Store locations in Kittery and Mebane. Earlier this year, Hanover closed its Roanoke distribution center and outsourced its fulfillment business to eBay’s GSI Commerce. GSI will handle fulfillment, freight and warehouse management for Hanover’s brands from a facility in Martinsville, Va. Hanover Direct also owns UnderGear, Silhouettes and Scandia Down.

Fiscal year ended Dec. 31. Part of publicly held HSNi, which also owns No. 41 HSN. The division is comprised of catalogs, related websites and retail and outlet stores for eight home and apparel lifestyle brands. Sales and store counts are for its three largest brands, Frontgate, Ballard Designs and Garnet Hill, as well as Smith + Noble and Grandin Road. Circulated more than 300 million catalogs in 2011, up 12% compared to the prior year. Total 2011 sales were $1.02 billion, up 15.4% from $880.9 million in 2010. Opened a Frontgate outlet in Roswell, Ga., earlier this year. In April, announced its acquisition of Chasing Fireflies, a direct to consumer premium children’s and family lifestyle brand.

Fiscal year ended Jan. 28. Luxury brand in the home furnishings marketplace, offering product assortments across a number of categories, including furniture, lighting, textiles, bathware, décor, outdoor, garden and baby and child. Operates an integrated business across multiple channels of distribution including galleries, outlets, catalogs and websites. Sales and store counts exclude five stores in Canada. Restoration Hardware’s textile offerings include bed and bath linens, drapery, rugs, pillows and throws. In Fall 2011, RH introduced an exclusive line of rugs designed by Ben Soleimani of Mansour Rugs. The retailer also developed its full line Design Gallery format last year, offering approximately three times the selling square footage of its average Gallery, opening its first two Design Galleries in Los Angeles and Houston. Over the next two years, plans to open Design Galleries in high profile locations in Scottsdale, Boston, Greenwich, Conn., and Atlanta. The retailer has identified some 50 key metropolitan markets for its Design Galleries. Direct to consumer accounts for 44% of the company’s revenues, with the balance from the retail stores. Total 2011 revenues were $958.1 million, up 24% from $772.8 million in 2010. Comp store sales increased 25%. Filed to go public last year.

Fiscal year ended Jan. 28, part of publicly-held Macy’s Inc. Includes sales through 37 stores, online and through seven outlet locations. Plans to open five new outlets in 2012. Plans to open a new department store in Glendale, Calif., in 2013 and a new replacement store in Palo Alto, Calif., in 2014. Launched a new customer loyalty program called Loyallist this year. Members of the program will accumulate points each time they shop and for every 5,000 points will receive a reward card worth $25. Diane Von Furstenberg’s soft and hard home collection debuted last year. Featured a three-month exclusive Hugo Boss Home line beginning this March.

Fiscal year ended Jan. 29. Sales and store counts are for U.S. stores only, including Puerto Rico, the U.S. Virgin Islands and Guam. Included in the results is Home Decorators Collection, a specialty retailer offering an extensive selection of high-quality furniture, area rugs and accessories through its website homedecorators.com, catalog and six retail stores in Georgia, Illinois, Kansas, Missouri and New Jersey. Continued its partnership with Martha Stewart Living Omnimedia to offer the exclusive Martha Stewart Living brand of home products in select categories, including outdoor living and flooring. Recently extended that partnership to offer a deeper assortment of Stewart’s branded goods, including a new craft furniture line and a broader array of holiday, through March 2016. Flooring was one of the categories listed with positive comp store sales. Overall, comp store sales increased 3.4% last year. Total 2011 sales were $70.4 billion, up 3.5% from $68 billion in 2010. Sales outside the U.S. were $8 billion in 2011 and $7.5 billion in 2010.

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January 28, 2013

Top 50

Home Textiles Today

HEADQUARTERS

HOME TEXTILES SALES IN MILLIONS 2011 2010

% CHANGE

FredM eyer

Portland, Ore.

$144

$143

0.7%

0.6%

131

130

Crate & Barrel

Northbrook, Ill.

$138

0.0%

10.6%

0.5%

108

105

DollarG eneral

Goodlettsville, Tenn.

$137

$126

8.7%

0.9%

0.5%

9,937

9,372

DTC

BrylaneHome

New York

$136

0.0%

0.5%

35 NR

DTC

Overstock.com

Salt Lake City

$125

11.9%

0.5%

The Bon-Ton Stores

York, Pa.

$121

$125

-3.2%

4.2%

0.5%

272

275

Shopko

Green Bay, Wis.

$96

$94

2.1%

4.4%

0.4%

144

138

Belk

Charlotte, N.C.

$82

$78

5.1%

2.2%

0.3%

303

305

Ashley Furniture HomeStores

Arcadia, Wis.

$78

$70

11.4%

2.9%

0.3%

434

422

Dillard’s

Little Rock, Ark.

$72

$73

-1.4%

1.2%

0.3%

304

308

RANK 2011

RANK 2010

STORE TYPE

COMPANY

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

NUMBER OF STORES 2011 2010

Fiscal year ended Jan. 28. Part of publicly-held Kroger. Founded in 1922, Fred Meyer operates in the Pacific Northwest and Alaska. Stores average 150,000 square feet and carry more than 225,000 items providing customers with one-stop shopping for food, health and beauty care, clothes, home products, electronics and more, all under one roof. Home products include bed and bath, home accents, furniture, housewares, home improvement, garden and seasonal goods. In 2011, opened a unit in Wilsonville, Ore.

Fiscal year ended Jan. 29. Lifestyle multi-channel specialty retailer operating Crate & Barrel, CB2 and The Land of Nod as well as e-commerce sites for each. Crate & Barrel offers midpriced to high-end home furnishings throughout the U. S. and Canada. CB2, Crate & Barrel’s “affordable modern” concept store operates in six states, the District of Columbia and Canada. The Land of Nod offers children’s home furnishings in Illinois and Washington. Also operates two franchised stores in Dubai. Sales and store counts for U.S. only. Operates Marimekko in-store boutiques in six of its stores, with some 17 more planned. The boutiques offer decorative pillows, table linens, ceramics, tabletop, kitchenware and accent furniture in addition to Marimekko’s bedding and bath collections already carried in the stores. Expanded into Canada with its CB2 store earlier this year in Toronto and Vancouver.

Fiscal year ended Feb. 3. Operates over 10,000 stores in 39 states and is the largest discount retailer in the U.S. by number of stores. Units average about 7,200 square feet offering merchandise at substantial discounts. Home products accounted for 6.8% of 2011 sales, down from 7% in 2010. Total 2011 sales were $14.81 billion, up 13.6% from $13.04 billion in 2010. Same store sales increased 6%. In 2011, made its initial entrance into Connecticut, New Hampshire and Nevada – the company’s first new states since 2006. Also launched an e-commerce site in September, offering shoppers more than 1,000 products. In 2012, will open approximately 625 new stores, entering California and Massachusetts, and remodel or relocate about 550 stores.

Fiscal year ended Dec. 31. Division of Redcats, a part of French-based PPR operating a group of Europe and U.S.- based companies specializing in fashion and home furnishings. Sales are for Redcats USA’s BrylaneHome brand. BrylaneHome consists of two divisions: BrylaneHome, known as “America’s White Sale Catalog”, offering everything from fashion bedding and home accents to housewares and BrylaneHome Kitchen, offering hard-to-find kitchen and home essentials. Also sells through BrylaneHome.com. In the second half of 2011, PPR launched a process to sell the Redcats Group.

Publicly held, fiscal year ended Dec. 31. Online-only closeout retailer offering discount brand name merchandise. Began selling online in 1999. Direct revenues, with orders fulfilled through its own warehouses, accounted for 16% of 2011 net revenues. The balance, $890.7 million last year, is through fulfillment partners. Sales for the home and garden product category, including bath linens, fashion bedding, utility bedding and rugs, as well as furniture, housewares, garden and patio products, were $611.5 million in 2011. Total 2011 sales were $1.05 billion, down 3.3% from $1.09 billion in 2010.

Fiscal year ended Jan. 28. Currently operates stores in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s and Younkers nameplates and, in the Detroit area, under the Parisian nameplate. Stores offer a broad selection of fashion apparel and accessories, as well as home furnishings, both nationally distributed brands and private brands. In textiles, brands include Calvin Klein, Casa by Victor Alfaro, Croscill, Elite Home Products, Lawrence Home Fashions, LivingQuarters Loft, MaryJane’s Home, Sure Fit, Tommy Hilfiger and Veratex. Home accounted for 17.6% of 2011 sales, up from 16.8% of 2010 sales, largely due to sales of small electronics. Total 2011 sales were $2.88 billion, down 3.2% from $2.98 billion in 2010. Comp store sales decreased 2.8%. In November 2011, opened a new Herberger’s in Edina, Minn., and relocated a Carson’s store in Kokomo, Ind., to a different mall. In October of this year, will open a new Herberger’s in the Pine Ridge Mall in Pocatello, Idaho, the company’s first store in that state.

Privately-held affiliate of Sun Capital Partners. Operated 134 Shopko stores, ten Hometown stores and five Shopko Express Rx locations throughout the Midwest, Mountain and Pacific Northwest regions at years end. Last year, opened eight more Hometown stores, a new concept store designed to meet the needs of smaller, underserved markets. Introduced summer 2010, the stores offer a broad merchandise selection including home textiles, as well as pharmacy services and eye care centers, but in a smaller format, at 36,000 square feet. Earlier this year, Shopko announced the merger of Pamida into its operations, creating a $3 billion company with nearly 350 locations in 22 states. Most of Pamida’s stores will be converted to Shopko’s Hometown format over the next year. Pamida was acquired by Shopko in 1999 and run as a separate division. When Shopko was acquired by Sun Capital Partners in 2005, the Pamida division was spun off from Shopko, but continued to be owned by Sun Capital.

Fiscal year ended Jan. 28. Operates stores in 16 states, primarily in the southern U. S. Also sells online, accounting for about 4% of company sales. Opened a new store in Corinth, Miss., last year as a replacement for an existing store, completed major remodel projects in seven stores, and completed expansions of three stores. Also, expanded its e-commerce center in Pineville, N.C., by 117,000 square feet in the fourth quarter of last year. Plans to complete four store expansions and open two replacement stores this year. Home was one of the merchandise categories with the highest growth rate for the year, accounting for 9% of 2011 sales, the same as the previous two years. Total 2011 sales were $3.7 billion, up 5.3% from $3.51 billion in 2010. Comp store sales increased 5.5%. Recently began operating a new 515,000square-foot e-commerce fulfillment center in Jonesville, S.C.

Manufacturer’s dedicated store network of licensed and company-owned promotional to midpriced stores throughout the U. S. and other world markets. Sales and store counts for U.S. only and exclude Furnish 123 stores, a separate concept licensed by Ashley. Ashley’s textiles mix includes rugs, pillows, throws and bedding. Added a net 12 units in 2011, including the first of at least two licensee-operated stores to open in Vietnam, in Hanoi. The second store is planned for Ho Chi Minh City, opening this year. Recently announced plans to open about 50 sleep shops this year. The 4,500-square-foot shops will operate under the banner of Zzz’s By Ashley.

Fiscal year ended Jan. 28. Offers a broad selection of fashion apparel and home furnishings, both national brand merchandise and exclusive brand merchandise. Accounting for 6% of total sales, the home and furniture category continues to improve, down only 2.8% last year, compared to a 3.6% decrease the year before and double-digit decreases the previous three years. Total 2011 retail segment sales were $6.19 billion, up 2.9% from $6.02 billion in 2010. Closed four stores last year and announced it would close the store in Hutchinson, Kansas during the second quarter of this year. No stores were opened last year and there are no planned store openings for this year. Opened its new Internet Fulfillment Center this spring in a former Target distribution center in Maumelle, Ark.

htt130104_012_018 17

1/22/2013 11:16:42 AM

Home Textiles Today

January 28, 2013

Top 50

> hometextilestoday.com

RETAILING GIANTS RANK 2011

RANK 2010

STORE TYPE

COMPANY

HEADQUARTERS

DTC

HSN

St. Petersburg, Fla.

HOME TEXTILES SALES IN MILLIONS 2011 2010

% CHANGE

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

NUMBER OF STORES 2011 2010

$71

$69

2.9%

3.3%

0.3%

Army & Air Force Exchange Svc. Dallas

$71

$72

-1.3%

0.7%

0.3%

157

198

DTC

Lands’E nd

Dodgeville, Wis.

$70

$71

-1.4%

0.3%

DTC

CountryC urtains

Lee, Mass.

$70

$73

-4.1%

89.7%

0.3%

Fiscal year ended Dec. 31. Part of publicly held HSNi, which also owns No. 27 Cornerstone Brands. HSN sells third party and private label merchandise directly to consumers through its television home shopping programming and its website. Textile brands include Andrea Stark Home Collection, Concierge Collection, Happy Chic by Jonathan Adler, Highgate Manor, Hutton Wilkinson, Nate Berkus, Rose Tree, Sure Fit and Vern Yip Home. Home which also includes electronics, fitness and housewares, grew to 55.6% of 2011 sales, up from 54.5% in 2010, due in part to the electronics and culinary categories. Total 2011 sales were $2.16 billion, up 2.1% from $2.12 billion in 2010. Last July, debuted a new home collection by Vern Yip with furniture, window treatments, rugs, lighting and décor items.

Revenues based on worldwide sales, excluding gasoline. Market areas include worldwide Army/Air Force posts and bases serving active-duty personnel, guard and reservists, retirees and their families, some 7 million customers. Receives no funds from the Department of Defense. Has main stores or shopping centers worldwide and in every state. Textiles are carried in 157 main stores, the online website AAFES.com, and in print catalogs. Customers can also shop and buy through mobile apps for the iPhone and Blackberry. Worldwide total 2011 sales were $10.3 billion.

Fiscal year ended Jan. 28. Part of publicly held Sears Holdings, which also owns No. 7 Kmart and No. 17 Sears. Direct merchant offering traditionally-styled products for the home through catalogs, including the specialty Lands’ End Home catalog, its 14 retail stores, its website and Sears full-line stores. Lands’ End retail stores, averaging 8,600 square feet, offer merchandise primarily from catalog and Internet channel overstocks. Lands’ End Shops inside Sears’ full-line stores numbered 290 at years end. Each shop offers products for women, men and kids and select stores offer items for the home.

Private family and employee owned company founded in 1956. Sells through its catalog which is mailed several times annually, website and retail stores located in 13 states in Connecticut, Delaware, Illinois, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia and Vermont. Known for its quality window treatment designs and window decorating services, the company also offers bedding, pillows and coordinates, including chair pads and table linens, and home décor, including rugs.

45 NR

BJ’s Wholesale Club

Westborough, Mass.

$68

0.6%

0.3%

195

190

46 NR

Bealls

Bradenton, Fla.

$65

5.6%

0.3%

560

541

DollarT ree

Chesapeake, Va.

$64

$61

4.9%

1.0%

0.2%

4,252

4,015

Hobby Lobby Stores

Oklahoma City

$64

$62

3.2%

2.8%

0.2%

501

467

GardenR idge

Houston

$58

$57

1.8%

0.2%

SteinM art

Jacksonville, Fla.

$54

$55

-1.8%

4.7%

0.2%

262

264

Privately held. In September, was acquired by Beacon Holding and CVC Capital Partners. Beacon is an affiliate of Leonard Green & Partners, whose retail holdings also include Jo-Ann Stores and Neiman Marcus Group, among others. CVC holds stakes in a variety of companies in the U.S., Europe and Asia. Operated 195 clubs at year end in 15 eastern U.S. states from Maine to Florida. Also sells online. Opened three new clubs this January, with one each in Gainesville, Va., and Deer Park and Ithaca, N.Y. Clubs feature more than 7,000 products. Textiles carried include bed and bath assortments and rugs. Touts prices of 30% off other retailers and accepts all manufacturers’ coupons. Total 2011 sales were estimated at nearly $11 billion.

Family and employee-owned company founded in 1915. Operates Beall’s Department Stores, Beall’s Outlet Stores and Burke’s Outlet Stores in 16 states across the Sun Belt, from Florida to California. Also sells online through beallsflorida.com. Currently there are 80 Department Stores all in the state of Florida. The outlet stores which were first opened by the company in 1987, operate as Beall’s Outlet Stores in Arizona, Florida and Georgia and as Burke’s Outlet Stores in Alabama, Arkansas, California, Kentucky, Louisiana, Mississippi, Nevada, New Mexico, the Carolinas, Tennessee, Texas and Virginia. All stores carry apparel and accessories as well as home goods with the outlets offering its merchandise at up to 70% off other stores’ prices. Total 2011 sales were $1.17 billion. The company is not affiliated with the stores operating under the Bealls name in Texas and New Mexico that are owned by Stage Stores.

Fiscal year ended Jan. 28. At fiscal year end, operated 4,351 discount variety retail stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant and Dollar Bills, in 48 states, the District of Columbia and Canada. Sales and store counts for U.S. only. Home accounted for 44.6% of 2011 sales, down from 45.8% in 2010. Total 2011 sales were $6.63 billion, up 12.7% from $5.88 billion in 2010. Comp store sales increased 6%. In October, completed a 410,000 square foot expansion of its distribution center in Savannah, Ga., to support growth in the Southeast. The company also invested in e-commerce, offering more than 2,500 items for sale by the case and launching a Spanish-language version of its web site. This year, will begin construction on a new distribution center in the Northeast which is expected to begin shipping product in 2013.

Privately held and family-owned, founded in 1972. Sales and store counts for 494 Hobby Lobby Stores operating across the U.S., and seven Hemispheres stores operating in Texas (6) and Oklahoma (1). The Hobby Lobby Stores average 55,000 square feet and carry over 65,000 crafting and home décor products. Textile products carried by Hobby Lobby include pillows, throws, table runners, quilts and rugs. Hemispheres carries a broad selection of furniture and accessories, including hand-knotted rugs and luxury bedding. Pursuing a strategy of careful growth, Hobby Lobby has opened 13 new stores so far in 2012 and plans to add at least another 16 units before the end of the year.

Privately held. Garden Ridge remains an e-commerce holdout, using its website to tout its broad, value-oriented store assortment. Thus far, it has also eschewed Facebook as a marketing tool. Opened stores in Humble, Texas; Richmond, Va.; and Orlando, Fla., last year. This year will open in Tyler, Texas in a former Wal-Mart Supercenter in August and in The Woodlands in the Houston area mid-year. The Woodlands store has been temporarily closed due to a fire at the store last October. Textiles include rugs, bed and bath, pillows and cushions, window treatments, and kitchen and dining linens. AEA Investors acquired an equity stake in the company last October.

Fiscal year ended Jan. 28. Offers moderate to better fashion apparel for women and men, as well as accessories, shoes and home fashions at prices competitive with off-price retail chains. Stores are located in 29 states, with the greatest concentration in the Southeast and Texas. In August 2011, Stein Mart created a new e-commerce director post to ramp up its online sales efforts. Will offer a greatly expanded assortment for the Internet beginning in Spring 2013. The home segment had sales of $135.1 million in 2011, down 1.9% from $137.7 million in 2010. Total 2011 sales for Stein Mart were $1.16 billion, down 1.8% from $1.18 billion in 2010. This past May, the company said its latest home department formula has rebooted the business and generated positive comps.

htt130104_012_018 18

1/22/2013 11:16:54 AM

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Untitled-84 1

HIGH POINT Showplace 3515

LAS VEGAS WMC A-444

NEW YORK 7W 733

12/14/12 2:38:58 PM

Home Textiles Today

January 28, 2013

Top 15

HTT’s Top 15 Supplier Giants

> hometextilestoday.com

(sales in $millions)

SIGNIFICANT EVENTS Refocusing on core competencies, Weslpun reported higher volumes and im-

proved margins in terry towels, sheets and rugs. Corporately, Welspun merged separate divisions to streamline operations and lower overhead. Welspun is also investing in a vertical textiles operation in Gujarat.

Welspun

Est. ‘12 Sales

‘11 Sales

% Change

2 (’11)

$602

$565

2 1 (’11)

SIGNIFICANT EVENTS Like many of its competitors, Mohawk Home’s floor covering business took a

Mohawk Home Est. ‘12 Sales

‘11 Sales

% Change

$552

$580

-5%

SIGNIFICANT EVENTS Alok experienced growth in bedding, sheets, towels and table linens.

Alok US

Est. ‘12 Sales

‘11 Sales

% Change

3 (’11)

$460

$430

4 4(’11)

Carpenter Est. ‘12 Sales

‘11 Sales

$386

$348

% Change

11%

Springs Global US

Est. ‘12 Sales

‘11 Sales

% Change

6 (’11)

$322

$319

6 8 (’11)

7 12 (’11)

htt130104_020_022.indd 20

hit in 2012 at the hands of several culprits — a still-sluggish economy, volatile cotton prices, and a shift in demand for memory foam products, among other impacts. Floor and door mats remained strong segments of business, and Karastan adapted its offering to accommodate more moderate price point products. In between, the Mohawk Home line maintained key placements but looked to make space for new business with smaller and more regional stores.

In addition to strong positions with major volume retailers, the company pushed heavily into non-traditional sectors to open new lines of business. The company has also invested in infrastructure to better serve ecommerce accounts and saw its online business grow more than 300%.

SIGNIFICANT EVENTS Carpenter Co. continued to pursue consumer marketing. The company redesigned its consumer-oriented site, SleepBetter.org, as it marked the fifth anniversary of the venture, which provides information about the importance of good sleep habits. The company also pursued celebrity marketing, partnering with actress and producer Krysten Ritter, star of ABC’s “Don’t Trust The B____ in Apartment 23.” She appeared at Carpenter’s Great American Pillow Toss rally in downtown Detroit.

SIGNIFICANT EVENTS In early 2012, the U.S. division’s Brazilian-based parent announced it would seek a strategic investor to partner on and steer the U.S. segment. Exempted from that proposition is the utility bedding in the U.S. and Canada — which remains on the books for the parent company while the remainder of the U.S. business is considered discontinued. Springs launched a subbrand for its Diane Von Furstenberg collection in Bed Bath & Beyond. It also sold the Wamsutta brand to the retailer for undisclosed terms. Springs also shipped Nate Berkus to Target, replacing the Springmaid program it had there.

SIGNIFICANT EVENTS Hollander reported growth for 2012, with increases in its mattress pad

Hollander Home Fashions

and comforter businesses. Its biggest issue has been “the ever rising cost and supply for down,” making it difficult to sell and plan businesses. The hits for the year included its Memorelle line, solution-based mattress pads and success with its alternative comforters.

Est. ‘12 Sales

‘11 Sales

% Change

$310

$285

Sleep Innovations Est. ‘12 Sales

‘11 Sales

% Change

$306

$300

SIGNIFICANT EVENTS Sun Capital Partners, a private equity firm, finalized its acquisition of Sleep Innovations in November. Execs noted that the move “offers Sleep Innovations the breadth of financial and operating capabilities to support the future growth of the company.” That could read as more research and development dollars as the company grows its solution-based product lines. Sun Capital’s portfolio includes both retail and consumer products partners. This year, Sleep Innovations expanded its range of memory foam products, with an extension in its Paula Deen line, and new offerings in its bath mat line, and continued its performance focus with a reversible mattress topper introduced last market.

1/22/2013 5:26:49 PM

Untitled-162 1

1/17/13 12:32:16 PM

Home Textiles Today

9 7 (’11)

January 28, 2013

Pacific Coast Feather Est. ‘12 Sales

‘11 Sales

$305

$294

% Change

Himatsingka America

Est. ‘12 Sales

‘11 Sales

NA (’11)

$302

Oriental Weavers USA Est. ‘12 Sales

‘11 Sales

% Change

9 (’11)

$292

$273.5

6.8%

12 11 (’11)

% Change

Top 15

> hometextilestoday.com

SIGNIFICANT EVENTS PCF’s pillow business took a hit from JCPenney’s revised strategy. Like many

other home textiles suppliers, it awaits the upcoming home department reset. The increase reported for 2012 reflected better mattress pad and comforter business. The company is still challenged by down and feather costs. Going forward, it is focusing on brands — Calvin Klein and its own PCF label, as well as leveraging brands from United Feather & Down, with which it merged last year. PCF reported combined results last year, but its numbers for 2012 reflected a more integrated business.

SIGNIFICANT EVENTS The American division of the Indian sheet mill appears on the ranking for

the first time. Himatsingka in 2007 acquired Divatex — which held the No. 14 spot in last year’s chart as an independent entity — as well as DWI Holdings. The founders of Divatex and DWI — Avi Gross and Michael Bernstein, respectively — have left the helm. Industry veteran David Greenstein, founder of Homestead and most recently a senior executive at Li & Fung US, now runs the U.S. businesses.

SIGNIFICANT EVENTS To accommodate growth that began early into 2012, the company opened five expanded trade showrooms over the past 15 months and amplified its manufacturing capacity in the United States as well as overseas in China and Egypt. Oriental Weavers introduced more than 20 new collections over the course of last year and focused new offerings on fashionable but affordable outdoor rugs and mid-price point area rugs.

SIGNIFICANT EVENTS 1888 attributes its double-digit growth to its focus and success on several

1888 Mills Est. ‘12 Sales

‘11 Sales

% Change

$280

$230.5

22%

key initiatives. These included: the integration of Beacon Looms Window into the organization; initial shipments of commercial apparel from its own Ghana, West Africa facility; easy navigation through the pull back of cotton in its bath and kitchen terry business; and a continued focus on its domestic, “Made in USA” terry products.

SIGNIFICANT EVENTS Shaw Living saw small growth in area rugs as well as bath over the course

Shaw Living

Est. ‘12 Sales

‘11 Sales

% Change

10 (’11)

$274

$271

1.0%

Maples Rugs

Est. ‘12 Sales

‘11 Sales

% Change

13 (’11)

$230

$240

-4.2

WestPoint Home

Est. ‘12 Sales

‘11 Sales

% Change

5 (’11)

$227

$322

-30%

Trident

Est. ‘12 Sales

‘11 Sales

% Change

NA (’11)

$205

htt130104_020_022.indd 22

of the year. As most of the company’s core consumer base continued to look for products that offered value-oriented price points but fashion-forward looks and colors, Shaw was able to meet that need with several new styles, brands and innovations developed with these shoppers in mind. The company also put in place plans for more such products for the new year, when it will unveil several new substrates and price points. Shaw also plans to reorganize its residential sales team to continue on its upward swing.

SIGNIFICANT EVENTS The area, accent and bath rugs company picked up incremental business with existing customers and expanded its customer base with new accounts at various distribution class levels in its accent business. This was accomplished thanks to improvements to existing product offerings, as Maples enhanced innovations. However, a still-challenged economy hindered business for several major retailers, causing some slowdowns in sales.

SIGNIFICANT EVENTS Although sales continued to struggle, WestPoint notched a success when its

EBITA (earnings before interest, depreciation, taxes and amortization) hit break-even for the third quarter — the first time in years that metric pulled out of the red. The company shifted its emphasis to lead with design in fashion bedding and surround every property with classification businesses in bedding and bath. To that end, WestPoint in the fall introduced three new brands: Portico, Under the Canopy and Southern Tide.

SIGNIFICANT EVENTS Early in the year, Trident announced a substantial investment to build an integrated textiles complex and expand its yarn facilities at Budhni, Madhya Pradesh. It also boosted its total yarn spinning capacity to 289,728 spindles with the commissioning of the new plant at Sanghera, Punjab.

1/22/2013 5:22:15 PM

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1/22/13 1:21 PM

Home Textiles Today

News

January 28, 2013

Top of Bed Shows Modest Gain, Revs Up Fashion

TOP OF THE BED

BY JILL ROWEN

% of the Home Textiles Universe

$25.72B $25.05B

N E W Y O R K — To p o f B e d

showed a modest increase in 2011 as suppliers upped the ante with embroidery details and other embellishments as well as bolder colors/designs as an antidote to the economic doldrums. Increased product prices also offset increased materials cost and helped the

2.7%

2011 Home Textiles 2010 Home Textiles Universe Universe

TOP OF THE BED “We’re seeing interest in less traditional looks — casual stripes and updated embroidery techniques.”

Merchandise Mix, 2011 Bedspreads/coverlets Quilts

14%

—CHRIS CERTOSIMO, Universal Home Fashions

Duvet covers

Comforters

18%

category with an overall gain. The price issues also led to retailers and suppliers playing a game of hide and seek with comforter sets. Trying to reach a “sweet spot” price, suppliers reimagined the typical bed-in-bag offering. Some continued adding decorative pillows and other

Comforter, filled bedding sets

59%

Source for all tables and charts: Home Textiles Today market research

TOP OF THE BED Distribution channels 2011 total retail sales: $3,455 million up 1.2% from $3,415 million in 2010 2011

Discount department stores Mid-price chains Home textiles specialty chains Direct-to-consumer Department stores Off-price chains Variety/closeout Warehouse clubs Single-unit home textiles specialty stores Other Total

$1,491 $663 $375 $235 $186 $176 $131 $97 $69 $35 $3,455

Other includes home improvement centers, military exchanges and gift/home accent stores. Figures have been rounded. 2010 figures have been revised.

htt130104_024 24

> hometextilestoday.com

2010

$1,475 $652 $369 $232 $184 $174 $130 $96 $68 $34 $3,415

% CHANGE

1.1% 1.6% 1.6% 1.2% 1.0% 1.2% 1.2% 1.2% 1.2% 1.2% 1.2%

OF BED

BA D ATA

accessories to differentiate themselves; others culled their offerings to three or four pieces. The gold standard in comforters is still the 8-piece set, which is about 40% of the bed set universe, according to a number of suppliers. Other category highlights: quilts showed a small gain; standalone bedspreads were flat. “The beginning of the year was tough, but things picked up the second half of the year” said Keith Sorgeloos, president, Home Source International. “There was sticker shock at first as everyone realized they had to work to deliver on the right price point,” he said. “We weren’t going to duke it out at the promotional level,” said Allen Darwin, vp, marketing and brand development, Triangle Home Fashions. “We didn’t want to look like everybody else.” New designs from Triangle included surface treatments such as different laces over various printed designs to give the products depth. “Our customers want more variety and the right design and color, and they want more than the basics to choose from,” said Michael Kaplan, president, Royal Heritage Home. “We try to stay above the fray when it comes to fads and trends and show unique designs. We’ve done new details in our pillows and accessories and new cut and sew techniques using embroidery and different prints on our products.”

At Royal Linens, new designs moved away from geometric looks to more florals, abstracts and linear designs, according to Frank Snow, vp merchandising and operations. “We’ve expanded our master bedroom offerings with new designs and assortments that we are shipping out of the U.S.,” he said. According to Snow, direct shipment is growing as a part of their business, including its new line from TV

“Our customers want more variety and the right design and color, and they want more than the basics to choose from.” —MICHAEL KAPLAN, Royal Heritage Home

personality Vickie Payne. Royal Linens has also done well with its juvenile designs: traditional designs for boys (which Mom picks out) and more “funky” girls’ designs (which more girls choose themselves.) “We’re seeing interest in less traditional looks — casual stripes and updated embroidery techniques,” said Chris Certosimo, president, Universal Home Fashions. Another growing trend seen by Universal: Euro-sized pillows, which translates into more Euro sham options in bedding sets. Will fashion and style updates keep shoppers coming to stores? Suppliers hope that it can help them push through the economic issues still looming. HTT

HTT’s new Database series replaces the long-running Facts series of category sales reports.

1/21/2013 12:24:24 PM

Untitled-183 1

1/22/13 2:21:33 PM

Home Textiles Today

January 28, 2013

News

> hometextilestoday.com

Cotton Comes Down, Sheets Go Up BY JILL ROWEN N EW YORK — Cotton prices have come down significantly, but the raw material cost is still on the minds of suppliers of sheets and pillowcases. The influx of more poly in cotton/poly blends, the use of all--microfibers and other alternative fabrics, and the use of

varying qualities of cotton that became part of the landscape in the last few markets are still in play and not likely to disappear too quickly. In fact, makers faced with rising costs got busy tooling with blends and constructions and taking a look at solutions-based design to keep the category alive

SHEETS AND PILLOWCASES

2.58

10% of the Home Textiles Universe

$25.72B $25.05B 2011 Home Textiles 2010 Home Textiles Universe Universe

2.7%

and find their niche in the marketplace. In the end, after the roller coaster ride for cotton, results for sheets and pillowcases show a 1.4% increase in sales, closely mirroring other bedding results in HTT’s Database series. “In the last few years, we put a lot into designs using alternative fabrics and looking at cotton quality,” said Shay Zamir, vp, merchandising, Divatex. “You have to be more creative.” For Divatex, part of that was delivering on color and translating ready-towear accents such as lace. “Retailers are working their way back to 100% cotton in 200 thread count programs,” noted Frank Snow, vp, merchandising, Royal Linens. “But you’re not going to see the high jumps back to 600 to 700 thread counts.” According to Snow, the promotional goods in microfibers “hit the high watermark.” For Royal Linens, recent market successes included its Vintage Comfort line of 100% cotton prints, as well as its growing kids’ lines. “Our estimates show sheets as a category was up … and business at Alok was very strong,” said Arun Agarwaal, ceo, Alok Industries. “As basic a category as sheets are, when raw material prices went up, the technology aspect become more important,” he said. “We at Alok used our apparel knowl-

Source for all tables and charts: Home Textiles Today market research

SHEETS AND PILLOWCASES Distribution channels 2011 total retail sales: $2,575 million up 1.4% from $2,540 million in 2010 2011

Discount department stores Mid-price chains Home textiles specialty chains Off-price chains Variety/closeout Direct-to-consumer Department stores Other* Warehouse clubs Single-unit specialty stores Total * Other includes interior designers, military exchanges and other channels. Figures have been rounded. 2010 figures have been revised.

htt130104_026 26

$1,340 $482 $371 $96 $79 $57 $56 $46 $23 $23 $2,575

2010

$1,323 $478 $363 $94 $79 $56 $56 $46 $23 $23 $2,540

% CHANGE

1.3% 0.9% 2.2% 2.2% 0.7% 2.3% 0.9% 0.8% 2.5% 0.3% 1.4%

edge and introduced features to enhance hand, feel, color. We also created patented fit technologies.” Another thing on trend, according to Agarwaal: a return to bonus pillowcases. Working on the higher end of the marketplace, Jim Vivacqua, director of marketing, Legacy Linens, noted that the company “adjusted prices for cotton very late in the game” and didn’t run to change its constructions. Embellishments, trims and new colors that combine brights with neutrals — corals with warm greys, for instance — are gaining ground. The company is also focusing on more “user friendly” products that are softer and in lighter weights. Some suppliers are navigating the sheets category with performance and solutions as the focus of their product story. As temperature control has captured the utility bedding category, it is now moving into sheets and pillowcases. “We’re doing a lot about temperature control; there is an emphasis on overall health and wellness and sleeping in a comfortable environment,” noted Jeremy Wooten, coo, HomeTex. HomeTex produced microfiber offerings, rayon/nylon blends and other constructions as cotton soared. “We continue to push the constructions and believe there is still opportunity there, but do see blending cotton back into the mix,” he said. HomeTex plans to open a New York showroom this coming fall, he added. “The category for performance and solutions based attributes is strong and growing,” noted Dan Harris, vp, marketing & product development DesignWeave. The company has two licenses at the core of its offerings: Outlast technology that works in balancing temperatures; and Cocona, which absorbs and controls moisture to help keep sleepers comfortable. Fiber producer Lenzing is also seeing growth in its business as sheet makers continue to look at new options for blends and constructions. “Everyone one has a 300 thread count offering but there is little flexi-

bility in that offering,” said Nina Nadash, home textiles merchandiser, Lenzing. “With a product like MicroModal with the Edelweiss process, it brings additional features to sheeting and is uniquely branded to really distinguish itself.” Nadash noted that Lenzing’s growth has also come from non-traditional retail sectors, including the military and hospitality arena. As HTT’s research shows, for retailers sheets and pillowcases were a mixed bag. On everyone’s mind is JC Penney and how its changes will ultimately impact not only sheets, but all home textile categories. Off-pricers and etailing continue to do well, as do warehouse clubs. “[Off-pricers] love the tough times,” noted Snow. The dot-com business is still flying on all cylinders. “It’s a big part of our marketing,” noted Harris of DesignWeave. “The internet makes it easier for retailers to test products; they don’t have to make as large a commitment. If it does well online, they will often move it to brick and mortar.” Despite an economy that is still moving slowly, for the most part, sheets and pillowcase makers are looking forward to the year ahead. “I’m very optimistic going forward,” said Nadash of Lenzing. “There are still a lot of constructions and blends that have not been executed with our fiber portfolio. There is still a lot of opportunity for makers to really stand out.” “Our mantra is ‘keep producing quality product,” noted Agarwaal of Alok. “A same thread count sheet can differ in many ways in quality. In 2012 we are acquiring substantial brand rights and that should help us extend our distribution channels.” “Given the economy, we’re not expecting a barn burner year,” noted Harris of Design Weave, but we’re confident about the year going forward.” HTT

HTT’s new Database series replaces the long-running Facts series of category sales reports.

1/21/2013 12:26:51 PM

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AREA RUGS

$25.05B

% of the Home Textiles Universe

2.7%

2010 Home Textiles Universe

AREA RUGS Distribution channels 2011 total retail sales: $4,530 million up 3.0% from $4,400 million in 2010

Source for all tables and charts: Home Textiles Today market research

2011

Discount department stores $1,624 Direct-to-consumer $763 Mid-price chains $374 Home improvement centers $340 Home textiles specialty chains $240 Carpet/floorcovering stores $218 Gift/home accent stores & single-unit specialty textiles stores $199 Furniture stores $187 Off-price chains $170 Variety/closeout $164 Warehouse clubs $143 Other $68 Department stores $41 Total $4,530 Discount department stores include Kmart, Shopko Stores, Target and Wal-Mart. Direct-to-consumer includes television shopping channels, Internet and catalog sales Mid-price chains include JCPenney, Kohl’s, Mervyn’s, Meijer, Fred Meyer, Sears, TJMaxx/Marshalls, Stein Mart and Ross Stores.

2010

$1,549 $739 $370 $330 $233 $229 $194 $194 $163 $158 $136 $66 $40 $4,400

Rugs Overcome Pricing Challenges In 2012

$25.72B 2011 Home Textiles Universe

Home Textiles Today

January 28, 2013

% CHANGE

4.8% 3.3% 1.1% 3.0% 3.0% -4.8% 3.0% -3.6% 4.6% 3.5% 4.6% 3.0% 3.0% 3.0%

Home improvement centers include Home Depot and Lowes as well as regional and local home improvement centers. Variety/closeout includes stores such as Dollar General, Family Dollar, Freds, Value City, Tuesday Morning and Big Lots. Other includes interior designers and military exchanges Figures have been rounded. 2010 figures have been revised.

or product specifications down in 2012.” N EW YORK — Rug manufacturOriental Weavers of Amerers and suppliers will likely look ica sees a lingering cautiousback at 2011 as a transitional ness from consumers about year. non-necessities. But that attitude The overall industry managed stands to “help synthetic area rug a modest 2.7% sales increase manufacturers,” explained Aaron to $25.7 billion, compared to Gray, OW’s director of market2010’s $25.05 billion. ing. While retails of $299-$399 It wasn’t an easy feat. Volatile for 5-by-8 rugs are still imporraw material demand took tant, “we are [also] seeing a toll on productionmore consumers lookEA related costs, and ing for rugs that at AR the recessionary $199 ret ails environment and below.” nationwide An kept shopimproving pers guarded economy in i n s p e n di n g some areas is on discretionary also creating an RUGS opening for bettergoods. quality, better-priced “[The] rug business improved in units shipped,” Jef- soft floor coverings, according frey Seagle, Mohawk’s director to Wade Maples, co-owner of of marketing and product mer- Maples Rugs. chandising told HTT. “Unfor“Basically, it’s about bettunately, we have not seen an ter goods that are made [using] improvement in average price more innovative constructions and total dollar sales as retailers and are of a better quality so continue to focus on value and that we can sell them at a better opening price points.” price,” he said. HTT He added raw materials were absorbed by manufacturers for HTT’s new Database series the most part, and a continued replaces the long-running Facts pressure “could force pricing up series of category sales reports. BY CECILE B. CORRAL

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View our Video mwwsolutions.com

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1/22/2013 2:56:27 PM

News

January 28, 2013

Shoppers Turned to Fashion Kitchen, Table Linens in 2011

TABLE AND KITCHEN LINENS

7.1

BY CECILE B. CORRAL NEW YORK — In 2011, shop-

% of the Home Textiles Universe

2011 Home Textiles 2010 Home Textiles Universe Universe

2.7%

pers said good night to ivory, white, black, navy, and beige. After a long, recessioninduced period of buying safe and predictable palettes, they spent last year on the lookout for lively colors and patterns – for everyday use, not just the seasons. “When the times are tough, to get excitement into their stores retailers turn to fashion to [stir]

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Home Textiles Today

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impulse purchases. And we definitely saw increases [last year] in fashion and prints for kitchen and table,” said Bryan Siegel, chairman and ceo, New York-

TABLE LINENS Distribution channels

Merchandise Mix, 2011

2011 total retail sales: $1,022 million up 1.2% from $1,010 million in 2010 2011

Discount department stores $371 Home textiles specialty chains $221 Mid-price chains $217 Off-price chains $81 Direct-to-consumer $38 Department stores $37 Variety/closeout $21 Single unit specialty stores $18 Warehouse clubs $9 Other* $8 Total $1,022

2010

$364 $217 $218 $80 $37 $37 $21 $18 $9 $8 $1,010

% CHANGE

2.0% 1.7% -0.6% 1.8% 1.2% -0.2% 1.2% 1.2% -2.2% 1.2% 1.2%

Napkins

21.7%

Runners

7.3%

Tablecloths

25.2%

Napkin rings Placemats

2.8%

43.0%

*Other includes home improvement centers, military exchanges and gift/home accent stores. Figures have been rounded. 2010 figures have been revised.

KITCHEN LINENS Source for all tables and charts: Home Textiles Today market research

Distribution channels

Merchandise Mix, 2011

2011 total retail sales: $808 million up 2.9% from $785 million in 2010 Discount department stores Mid-price chains Home textiles specialty chains Off-price chains Variety/closeout Warehouse clubs Department stores Direct-to-consumer Other* Single unit specialty stores Total

2011

2010

$495 $127 $88 $30 $24 $16 $8 $7 $6 $6 $808

$480 $126 $86 $29 $23 $16 $8 $7 $6 $5 $785

% CHANGE

3.3% 1.0% 3.2% 3.5% 3.6% 2.9% 0.9% 2.9% 2.9% 2.9% 2.9%

*Other includes home improvement centers, military exchanges and gift/home accent stores. Figures have been rounded. 2010 figures have been revised.

htt130104_028 28

Dishcloths

18.2%

Chair pads

6.7%

Potholders/ mitts

22.0%

Aprons

1.0% Kitchen towels

52.1%

based Elrene Home Fashions. “[Fashion and prints] definitely crept up a few percentage points, taking away from the solid portion of this business.” It was clear from the start that some of the eye-catching options for kitchen textiles, table linens and, increasingly, aprons came at a somewhat higher cost. But ripe for change, shoppers were not deterred. “A direction we have been seeing is that people would rather spend a little more money on something that they really love versus a basic,” noted Abe Haddad, president and owner of New York-based Homewear Linens. “They are looking for more fashion, quality and value and are willing to spend a little more for it, but they expect a little more back.” He explained that the trend, which emerged last year, still holds for both kitchen and table linen products across the board. Furthermore, added Anchor Home Products president and owner Frank Petronzio, “people were moiré willing to spend on full coordinate programs.” By that, he means shoppers bought more matching components for a more complete decor story in their kitchens and dining rooms – “from window [tiers and curtains] to chair pads to place mats to even decorative pillows. People were looking for full fashion coordinates for their homes.” Aprons were also strong last year — and on an upswing in early 2012. “We see the aprons category as expanding. The stores are giving it more attention, displaying more products earlier in the season and enlarging their selections,” Haddad said. “The direction they are going is toward more fashion forward, embellished novelty styles and presenting them as gift-able offerings.” HTT HTT’s new Database series replaces the long-running Facts series of category sales reports.

1/21/2013 12:30:46 PM

Untitled-167 1

1/18/13 10:47:27 AM

Home Textiles Today

January 28, 2013

News

> hometextilestoday.com

Bath Suppliers End ’11 With Sales Gains For Basics

H AND

SE ES

BA A T A D B

for many other home textiles categories, bath products produced a slight sales gain last year, and suppliers are looking forward to better business in 2012 Industry-wide and across the segment’s five categories – bath towels, bath/scatter rugs, shower curtains, bath accessories, and tank sets – the U.S. bath business managed a 2.7% gain in overall sales in 2011 to $25.7 billion, and essentially retained its place at 17.7% as a percentage of the total home textiles universe – a slight dip from the prior year’s 18%. But the sales increase of 2011 did not come easily, suppliers noted. Many suppliers had to work around retailers’ demands for price point reductions – even in the face of rising raw materials and labor costs. “For several years now, they wanted more and more opening price point, more and more price reduction, and that makes it increasingly difficult for companies like ours to increase business,” explained Wade Maples, co-owner, Maples Rugs.

N EW YORK — As was the case

That might explain why the bath rug sales were flat year over year, coming in at $1.1 billion, and comprising about 25% of total retail sales. Towels fared better, experiencing a 2.7% sales increase. Basic solids drove the business as retailers shied away from broader fashion offerings.

BY CECILE B. CORRAL

O H A CCESS

Venus Home’s Shiv Shankaran, general manager, described 2011 as “a tough year” when Venus saw “a downtrend in fashion bath towels and coordinates” but on the other hand “did reasonably well and continue to grow in our value solid towel programs,” which retail for $7.99 and less. Price points were also largely affected by a continued volatility

in cotton pricing over 2011. “Contending with the uncontrollable surge to cotton pricing,” was New York-based Loftex USA, which was nonetheless “very pleased with our 2011 sales growth, which exceeded corporate goals,” said coo Jeffrey Williams. “Given the recent stabilization of cotton, we are very optimistic that 2012 will be another successful year as we will continue to focus on innovation and supply chain excellence,” he added. Added Loftex USA’s vp of marketing/brand development, James Booth: “Going forward it is all about product design and innovation and being ‘in connection’ with the consumer at all levels-retail/social/ mobile.” The hope for bath suppliers now is that 2012 will offer new opportunities for stronger growth. Maples has already noticed from his ret ail partners “a demand for newness and a trade up in price,” which led to his company’s debut in March at the New York Home Fashions Market of the “TruSoft” collection of ultra-soft fiber-made bath

BATH AND BATH ACCESSORIES

% of the Home Textiles Universe

$25.72B $25.05B 2011 Home Textiles 2010 Home Textiles Universe Universe

rugs that are poised to retail for $24.00 – a notch above the typical $12 to $14 bath rug offerings. “We showed our new TruSoft [bath] rugs in both solids and prints, and we got a great reception from retailers,” Maples added. “And this will help business this year for us.” HTT

2.7%

HTT’s new Database series replaces the long-running Facts series of category sales reports.

BATH AND BATH ACCESSORIES Source for all tables and charts: Home Textiles Today market research

Distribution channels

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Merchandise Mix, 2011

2011 total retail sales: $4,550 million up 1.1% from $4,500 million in 2010 2011

Discount department stores $2,648 Mid-price chains $714 Home textiles specialty chains $642 Off-price chains $214 Other* $132 Warehouse clubs $91 Department stores $59 Single-unit home specialty stores $27 Home improvement centers $23 Total $4,550

2010

Shower curtains

13.7%

% CHANGE

$2,597 $734 $635 $207 $131 $90 $59 $27 $23 $4,500

2.0% -2.6% 1.1% 3.3% 1.1% 1.1% 1.1% 1.1% 1.1% 1.1%

Bath accessories

Bath/scatter rugs

24.9%

9.3% Tank sets

Bath towels

0.9%

51.2%

Other* includes direct-to-consumer and other channels such as PXs, grocery stores, and the like. Figures have been rounded. 2010 figures have been revised.

1/21/2013 12:50:41 PM

March 17-21, 2013 Spring NY Home Fashions Market Week Major Showroom Buildings Throughout Market

For exhibition space, please contact: Joe Carena, Show Manager, jvcarena@gmail.com (203) 329-9553 Warren Shoulberg, Publisher, Home Textiles Today wshoulberg@hometextilestoday.com (646) 805-0226 Ms. Kaushal Shah, Manager, HTT India, kaushal@kaushals.com 91-22 6663 4597

Exhibitor Space Now Open! Reserve Your Space Today! Lenzing_Ad_Jan7th.indd 1

12/27/2012 6:55:58 PM

Home Textiles Today

January 28, 2013

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Utility Bedding Shows Growth Amid E-commerce Boom BY JILL ROWEN N EW YORK — Utility bedding made strides at retail with increases evident across the board. The term “utility” may only loosely fit the category as makers continue to use innovative constructions and technology to create specialty products. While these new-fangled products may demand higher prices, the push back from retailers is real.

“Utility bedding is currently anchored by non-utility bedding specialty skus,” said Lonnie Schepps, svp, Sinomax. “There is so much new in the foam category — especially memory foam and its hybrids that utility bedding is almost an oxymoron. All of these are cannibalizing utility real estate. The newer skus are becoming the new basics.” “Foam is looking good,” agreed Dan Schecter, svp, sales

UTILITY BEDDING

2.69

10% of the Home Textiles Universe

$25.72B $25.05B 2011 Home Textiles 2010 Home Textiles Universe Universe

2.7%

and marketing, Carpenter. “That is primarily because the product continues to evolve. Gel is big. Products that are made to work on an ergonomic level are doing well because products such as these have real benefit.” The elephant in the bedroom is still rising material costs. “Increase on raw material has taken a toll on quality and product integrity,” said Schecter. “I think retailers are afraid to increase their retails in fear of not selling product. The end result is their customer is getting something less than what they were getting a year ago.” “Business continues to be pretty strong at most of the major retailers,” said Jyl Davis, director of marketing, Downlite. “Unfortunately, although cotton has stabilized in costing, we are now fighting cost increases in polyester and goose down, which is making it quite difficult for cost/price management going into fiscal 2012. Consumer confidence and spending seems to be stronger now in the domestics/home textiles area versus the past couple of years.” Similarly, wool prices are high, impacting the blanket sector. “I believe wool prices have peaked after two years of

Merchandise Mix, 2011

though the election may somewhat dampen or perhaps slow down some growth temporarily.” “Basic bedding remains a unit and margin driver in home. Little markdowns and high turn make it a favorable category,” said Beth Mack, chief merchandising offi-

2011 total retail sales: $2,685 million up 3.5% from $2,595 million in 2010

18% Sleep pillows

37%

Source for all tables and charts: Home Textiles Today market research

Mattress pads

25%

htt130104_032_033 32

2011

Throws

Blankets

BA D ATA

cer, Hollander Home Fashions. “Retailers are experiencing better sales and therefore they are will to try (test) new products.” According to suppliers, two retail sectors have scored the highest gains in the category: e-commerce sites and warehouse clubs. “The big-box stores and clubs have had the greatest gain as they are drilling down into the category and fortifying their basics,” said Schepps. The National Retail Federation reported in a recent survey that investment in online business surpassed investment in brick and mortar for the first time at some retailers. Suppliers are reaping the benefits as well. Schecter noted that retailers are scrambling to get the sites up and running and to offer something different. “It should be interesting to watch the ‘web wars’ as time goes on,” he said. “This end of the business is one we have placed in high regard as a strategic initiative for the next several months,” said Schepps. “These sites have extremely liberal return policies permitting the customer to try and buy a greater assortment of pillows than she would purchase anywhere.” Schepps acknowledges that the venue comes with

UTILITY BEDDING Distribution channels

UTILITY BEDDING

20%

increases. However, they don’t show signs of falling the way that cotton has,” noted Robert Christnacht, Pendleton Home Division. Despite that, Christnacht noted that business has been good. “With our blankets, people aren’t buying disposable products; they are investing in a generational product.” “I still see some cautious optimism out there with all the innovation engaging our clients, but perhaps a slower growth anticipated until third quarter,” said Schepps. “We feel bullish for the second half of 2012, al-

Discount department stores Home textiles specialty chains Mid-price chains Department stores Direct-to-consumer Warehouse clubs Single-unit home textiles specialty stores Off-price chains Variety/closeout Other Total

$1,591 $529 $216 $112 $60 $52 $40 $30 $32 $24 $2,685

2010

$1,536 $511 $210 $109 $57 $49 $39 $29 $31 $23 $2,595

% CHANGE

3.6% 3.4% 3.0% 3.0% 4.4% 4.6% 2.8% 3.5% 3.5% 2.3% 3.5%

Other includes home improvement centers, military exchanges and gift/home accent stores. 2010 figures have been revised.

1/21/2013 12:53:40 PM

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many complexities in mastering turnaround times and dispatching products. “We also find this to be a great representation testing ground for our clients to test our new innovations and qualify them for brick and mortar placement,” he added. “We have absolutely seen an uptick in business with our direct retailers — both online players only as well as the ecommerce sites for our brick and mortar partners,” said Davis of Downlite. “For larger items, such as feather beds and body pillows, the direct ship to the

customer’s home is particularly enticing.” “We have a story to tell — our history and the work we do with our Native American designs — and the web is a perfect place to really get into it,” said Christnacht. “Digital media is king and Hollander will be a leader in this category,” noted Mack of Hollander. “Hollander’s ecommerce (through retail sites) is growing at a rapid rate. Brick and mortar will not go away, but it will have to be about the customer experience. The ecom business

has been stronger in higher ticket items like mattress pads and comforters. The benefit to ecom is the amount of space dedicated to features and benefits, which is need for the purchasing decision in basic bedding.” There is, in fact, a push to amp up communications to consumers on all levels. Davis noted that Downlite was increasing resources in its marketing and design staff and looking at “new and creative ways to merchandise products.” Schepps believes that the customer is starved for greater edu-

Prices Up for Down; Duck in Demand NEW YORK — Just as cotton prices have stabilized, another commodity has given suppliers pause. Down and feather prices are on the rise, with estimates that prices have at least doubled since 2009. To offset the prices, some makers are shifting some or part of their

the focus shifts away from price promotion and moves toward an emphasis on superior value.” “Down continues to rise and suppliers and retailers are continually evaluating their assortments,” noted Beth Mack, chief merchandising officer, Holland-

“Down prices rose in 2011 and the instability and increases continue thus far in 2012.” — FRITZ KRUGER, Pacific Coast Feather

products to less expensive duck feathers and looking at changes in construction. A recent Wall Street Journal article outlined the problem for apparel makers, but bedding suppliers (who typically use a much larger percentage of down fill per product) have been struggling with this issue for some time. A pound of white goose down which cost about $12 two years ago is now about $28, according to industry estimates. For duck feathers, prices went from about $9 to $19. Within this range are different grades and varieties of down and feather with one thing in common: all have increased in price. “Down prices rose in 2011 and the instability and increases continue thus far in 2012,” noted Fritz Kruger, svp, marketing, Pacific Coast Feather. “We anticipate a recovery in down as

htt130104_032_033 33

er. “Goose down has escalated much faster than duck down, so there is the anticipation that many specs will change from goose to duck.” “Goose down is currently very expensive, based on worldwide supply shortages. But, synthetic fiber is also feeling upward costing pressure now based on oil costing,” said Jyl Davis, director, marketing, Downlite. “We have seen a shift away from goose down to duck down for some major pillow and comforter programs, as well as some down-specing in qualities and fill powers, in order to manage costing and price points.” “It’s an issue of contraction; there is just not as much supply,” noted David Sweet, general manager, Eurasia Feather Co., a feather wholesaler. There is less goose being eaten and down is a by-product of the meat produc-

tion. According to Sweet, a general ‘de-specing’ is taking hold in the industry. “In an effort to keep to a price that retailers want, the down pillow is now offered as a duck pillow and the duck pillow is now a poly product. The question is: will consumers pay more for down?” Sweet added that the shift to duck will impact that supply as well, and ultimately drive up prices. So, how has this increase impacted customers? “What holds true in general is also true in down,” said Kruger. “The consumer base that is price-oriented is struggling with the cost increases that are causing an increase in retail price points. Those consumers who value down have not been affected by the rising retail price points.” “There is and will always remain a down customer,” said Mack. “We need to make sure the message of ‘warmth without weight’ is conveyed to the consumer in order for them to understand the value.” According to Sweet, the consumption of goose continues to drop every year in Europe and the U.S., and even in Asia, though not as drastically. While goose down will not disappear as a commodity product, it may be destined to become a strictly high-end proposition for suppliers and retailers. HTT

Home Textiles Today

January 28, 2013

cation. “Our recently commissioned NPD studies told us that approximately 75% of all American do not know what memory foam is. The opportunity with education, POS ideas and value pricing remain a goal the whole industry needs to perfect.” For textile products, despite the growth in online business, there is always the touch factor to consider. “A pillow is the third most personal thing a per-

son owns,” said Schecter. “Your pillow is always happy to see you at night and always sorry to see you go in the morning. The pillow is an important comfort element and is just as important today as in the past. Yes! People still need to hug their pillow — after all it’s your best friend. It’s the hug-a-pillow argument for home textiles that is very different from buying something like small appliances online.” HTT

UTILITY BEDDING Top 5 Supplier Giants A Recap of the 2011 Utility Leaders (Sales in millions of $) 2011

2010

% Change

Down and Down Alternative Comforters 1 Downlite $108 2 Pacific Coast Feather 80 3 Blue Ridge Home Fashions 73 4 Phoenix Down 44 5 Hollander Home Fashions 40

$88 86 70 49 37

23% -7 4 -10 8

Raw material costs plagued this category with both cotton and down prices at record levels. As was seen across the board in many categories, suppliers switched to synthetic and/or blended fills and shells. Emphasis on thread count largely abated.

Foam Pillows/Toppers 1 Carpenter 2 Sleep Innovations 3 Hudson Industries 4 Sleep Studio 5 Sinomax

$329 233 61.5 60 50

$299 234 57 60 NA

10% 0 9 0 NA

Foam continues to be among the strongest bedding categories, with increases at most of the top suppliers. Gel constructions swept the category, and manufacturers marketed toppers as a cost-effective alternative to buying a new mattress.

Sleep Pillows 1 Hollander Home Fashions 2 Pacific Coast Feather 3 Louisville Bedding 4 Downlite 5 Perfect Fit Industries

$204 141 73 38 36

$197 134 82 30 50

4% 5 -11 27 -28

Usually the darling among the bedding categories, sleep pillows pulled in good numbers. As was the case across the industry, manufacturers turned to poly and other fibers to offset higher cotton costs on shells and grappled with higher prices for feathers.

Mattress Pads 1 Louisville Bedding 2 Pacific Coast Feather 3 Hollander Home Fashions 4 Perfect Fit

$68 42 41 30

$69 39 41 40

-1% 8 0 -25

The most problematic of the bedding categories, with sales mostly flat to down, mattress pads suffered from the out-of-sight/out-of-mind syndrome. Where consumers sought pillows or foam, they overlooked this category of comfort sleep. Higher cotton prices raised retails slightly, but not enough to lift overall sales.

1/21/2013 12:54:02 PM

Home Textiles Today

January 28, 2013

News

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Windows Show Growth BY JILL ROWEN NEW YORK — Sales of soft window treatments are showing signs of growth, but as with all home textiles categories, the overall story is much more complex. While some makers are reporting stellar increases with new programs and new customers, others are only cautiously optimistic given the slow recovery for the economy and increased costs. But across the board, there are two truths that everyone can agree on: the impact of JCPenney’s future plans will be felt deeply in the window category and the ecommerce sector of the business is still growing by leaps and bounds. “Business is picking up and we saw an uptick during tax refund season,” said Sandy MacNeil, svp, sales and merchandising, Beacon Looms. Acknowledging the slowly rebounding economy, MacNeil nonetheless noted that consumers are becoming used to a “new normal” and beginning to slowly spend. In particular, MacNeil said its kids’ business — the industry’s “cheap

and cute” category — was good. “People still spend on their kids,” she said. For Beacon and others, new looks in sheers including textures, embellishments and

embroideries are trending, as are linen and faux linen “dry looks.” “Anything with bling and shine. A lot of linen and dry looks and ikat prints is what we are seeing,” said Jason Carr, principal, Softline Home Fashions. A c c o r di n g t o T h e N P D Group’s Consumer Tracking Service, all drapery lengths saw dollar sales increases in the past 12 months, though ceiling to floor options saw the most significant increases compared to last year.

Solution-based offerings such as black-out curt ains, energy efficient constructions and all-weather offerings are still strong contenders. “We’re having a good year, and are ahead of last year,” noted Carl Goldstein, vice chairman, S. Lichtenberg. “Our blackout business is especially good.” “Business is very good. Spring was great. There’s tentativeness for the next few months, but we’re happy and going full ahead,” noted Barry Goodman, vp, Commonwealth Home Fashions. Winners for the company include its thermal sheers and its outdoor business which is “exceptionally strong.” The tent ativeness comes from the rising price of everything. “The price of cotton —

“Business is picking up and we saw an uptick during tax refund season.” —SANDY MACNEIL, Beacon Looms

which didn’t impact our business as much as others — has come down, but freight, electricity, water, packaging, labor

Source for all tables and charts: Home Textiles Today market research

WINDOW TREATMENTS Distribution channels 2011 total retail sales: $2,695 million up 5.1% from $2,565 million in 2010 2011

Mid-price chains Discount department stores Home textiles specialty chains Direct-to-consumer Home improvement centers Off-price chains Variety/closeout Department stores Single-unit specialty stores Other Total *Other includes warehouse clubs and military exchanges. Figures have been rounded. 2010 figures have been revised.

htt130104_034 34

$1,211 $890 $305 $127 $47 $28 $26 $21 $20 $20 $2,695

2010

$1,156 $847 $290 $118 $45 $26 $25 $20 $19 $19 $2,565

% CHANGE

4.8% 5.0% 5.3% 7.1% 5.1% 6.1% 6.2% 3.7% 3.7% 5.1% 5.1%

WINDOW TREATMENTS

10.5% of the Home Textiles Universe

$25.72B $25.05B 2011 Home Textiles 2010 Home Textiles Universe Universe

is up,” said Goodman. Carr seconds the concerns. “We’re very cautious about our inventory; and we’re cautious about our Chinese partners,” he noted. “The recovery we were hoping for is coming much more slowly.” At retail, there is also understandable turmoil in the category. Michael Francis, JCPenney’s president of only nine months left abruptly last week and the retailer’s still unfolding marketing and merchandising plans are not boosting sales as yet. Suppliers noted that a revolving door of buyers and executives made it difficult to know how it would all work out. “No matter what happens with Penney, the result will be felt by the entire industry,” noted Christine Bolton, president, Corona & Robertson, a division of Natco Fabrics. “It’s unlikely that a 100 million dollar business will shift completely. A large part of that will just be gone.” On the plus side, Bolton reported that Natco’s home center business was good and the company overall was “on a steady roll.” One retail sector that is not in turmoil is e-commerce. In

2.7%

“The price of cotton — which didn’t impact our business as much as others — has come down, but freight, electricity, water, packaging, labor is up.” —BARRY GOODMAN, Commonwealth Home Fashions

HTT’s results, e-commerce was up by 7%, the highest gain of any sector. “ T h e g r ow t h i n e - c o m merce is staggering,” according to Budd Goldberg, ceo, Ellery Homestyles. While the industry overall is up in the single digits, the e-commerce portion is in the double digits in some cases, he noted. According to Interactive Media in Retail Group (IRMA), total internet sales in the United States will grow at an annual rate of 10% to 15% in the next few years. HTT HTT’s new Database series replaces the long-running Facts series of category sales reports.

1/21/2013 1:09:12 PM

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