Home Textiles Today June 11th Issue

Monday, June 11, 2012

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

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hometextilestoday.com

| Vol. 33, No. 13 | $8.00

Flash Sale Sites Still Glowing Revolutionary E-tailers Shake up Their Formats to Capture More Sales

A 20-by-20 Kyllini pillow was for sale in May on One King’s Lane.

BY JENNIFER WHITE KARP NEW YORK — They’re no flash in the pan.

In fact, while the buzz about these fast online marketplaces may be somewhat quieter now, flash sale sites are clearly here to stay. But they are not standing still. Many of main players in the flash sale site category have unveiled major changes to their formats — adding specialty niches in home furnishings that include high-end home textiles, offering longer sale periods or teaming up with a bigger, more established retailer.

Like any merchant, sites such as OneKingsLane, HauteLook, Gilt, the Foundary, Rue La La and others are looking to grab a bigger piece of the retail pie, according to Sucharita Mulpuru, an e-commerce analyst at Forrester Research and the author of last year’s report, “The Myths and Truths About Daily Deals.” In her report, she describes daily deals as “[p]erhaps the most hyped retail business model of the past decade.”

To Mulpuru, the fact that several sites are offering sales that now extend from four to five days or even much longer — seemingly the antithesis of the original “flash” model — “is more about growing sales than anything else.

These sites did a healthy business when the sales were shorter; they’re just trying to squeeze more out of what they have, likely because the supply of inventory that’s good is finite and limited, yet they still have aggressive growth goals to meet,” she told HTT. Traffic is still very strong at these sites, reports Matt Tatham, media relations representative for Experian Hitwise, which tracks online consumer behavior. Total visits to these sites have increased

Call for Submissions for Atlanta Rug Market Home Textiles Today provides special distribution at the Atlanta International Area Rug Market. The preview issue’s publication date is July 9, 2012. To be included, please send HTT your written product introduction news and one or two new product images by Monday, June 25.

Please submit your high-resolution images by email to HomeTextilesToday@gmail.com. Images should be at least 3-by-5 inches at 300 dpi (900-by-1,500 pixels).

For further information, please contact senior editor Cecile Corral via email at cbcorral@aol.com or by phone at (305) 661-7493. HTT

Inside This Issue How the Deal Went Down ..................................................................page 4 Of Slices and Sheets .............................................................................page 4 Guest Column: Notes from a Concerned Observer ...........................page 5 Seymour Garfinkel, 83 .........................................................................page 8 Cotton Concerns Still King in Sheets .................................................page 9 May a Good Month for Many .............................................................page 18

SEE FLASH SALES PAGE 14

JCPenney Makes More Tweaks

BY JENNIFER MARKS PLANO, TEXAS — Four months into its turnaround effort, JCPenney continues to refine its marketing message, pitch patience to Wall Street and rework its executive structure — including the appointment of a new general merchandise manager for home.

In a shift of positions, Paul Rutenis was promoted to gmm of home just over two weeks ago while John Tighe, who had held the position of svp/gmm of home since April 2010, moved over to become gmm of the men’s division.

Rutenis joined JCP in April 2011 as the dmm for furniture and decorative accessories. He began his retail career with May Department Stores in 1991 and joined Dick’s Sporting Goods in 2006 as dmm.

“One area we’re very excited about is home,” ceo Ron Johnson said at the Piper Jaffary Consumer Conference in New York last week. “We have an unlimited choice of product from a brand perSEE JCP PAGE 23

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6/8/2012 2:28:25 PM

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Home Textiles Today

June 11, 2012

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ELITE SPONSORS

Tuesday Morning Abruptly Dismisses ceo D A L L A S — One month away

from her 12th anniversary at her post, president and ceo Kathleen Mason has been shown the door at Tuesday Morning as of June 5.

The company also announced last week that Sheldon Stein resigned from the board of directors, effective May 31.

Mason joined the off-price chain and assumed her position on July 31, 2000. She had more than 20 years of general man-

agement and merchandising experience at the time, having held positions at several retail chains, including Homegoods, The Limited, Mervyns, Emporium and Kaufmanns.

Replacing her is Michael Marchetti, who remains coo but also becomes president and interim ceo with the company searches for a successor to Mason.

Additionally, Melinda Page is being promoted to evp and chief merchandise officer from

her former role as svp-general merchandise manager, and Seth Marks has also moved up to svp and chief marketing officer from his position as svp of alternative sourcing and e-commerce.

“The board of directors concluded it was the right time to transition leadership to a new executive who will guide the company through its next stage” said Bruce Quinnell, chairman of the board. “We are confident in Mike, Melinda, Seth and the rest of the senior management

team to help lead the company through this important transition.”

In other news, Tuesday Morning also announced it is revising its 2012 fiscal year guidance.

The company now expects: net sales for the year to be in the range of $810 million to $815 million; comparable store sales to decrease by 3.2% to 3.9%; and earnings per diluted share to be in the range of 11 to 15 cents before costs associated with the replacement of the ceo. HTT

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LuxeYard Taps Growing Indian Market with Expansion

BY ALEX LEMONDE-GRAY L OS A NG ELES — LuxeYard, a

members-only flash sales site for home furnishings and fashion products, plans to expand to India under an exclusive licensing deal with veteran technology and retail entrepreneur Sashi Chimala.

According to the terms of the agreement, Chimala will establish LuxeYard India, which will work closely with the U.S. team to leverage the company’s existing e-commerce platform and operations infrastructure as well as product category expertise.

“This exciting deal provides access to one of the fastest grow-

ing e-commerce markets in the world, where rising consumer spending power and demand for luxury goods will combine to help us achieve our revenue goals and business objectives,” said Braden Richter, ceo, LuxeYard. “Under Sashi’s leadership and with his history of successful entrepreneurial ventures, we have great confidence that our partnership will be successful.”

Non-travel e-commerce, currently 30% of the total industry, is estimated to grow 10 times to approximately $6 billion by 2015, according to the Internet and Mobile Association of India.

LuxeYard’s Indian venture

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Over a third of consumers (38.5%) said they replace their pillows every two to three years; just under another third (28%) said they pillow shop annually. But almost 20% of consumers said they didn’t remember the last time they replaced their pillows.

Source: Dacron ® brand team research: Results from 2012 online survey of consumers, N=195.

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expands the company’s international presence, and creates increased revenue potential through reciprocal access to products offered on both sites, according to the company.

“The e-commerce market is in a state of rapid growth and the flash sale model is just now beginning to emerge in India,” Chimala said. “Our partnership is structured to immediately leverage our respective products, people and technol-

ogy and will allow LuxeYard to enter the market quickly. Over time it will also allow us to realize even more efficiencies and cost savings.”

L u x e Ya r d a l s o r e c e n t l y expanded its presence to Australia through a partnership with buyinvite as well as New Zealand.

LuxeYard will maintain ownership of all developed intellectual property related to LuxeYard India. HTT

PBS’ “Downton Abbey” Poised to Become Home, Lifestyle Brand L AS VEGAS — Knockout Licensing Co. has been appointed by NBCUniversal International Television Production to launch and manage the licensing program for the “Downton Abbey” entertainment brand in the U.S. and Canada.

The Emmy and Golden Globe Award winning British television series will begin its third season in January 2013.

The period drama is PBS’s mostwatched program since the Ken Burns documentary “National Parks” premiered in 2009.

Knockout Licensing said it is seeking manufacturing and retail partners to launch the brand into North American markets through key product categories including bedding and bath, home furnishings, home décor, housewares, kitchenware “and other appro-

priate products” such as apparel, accessories, bags, etc.

“Audiences around the world have connected with ‘Downton Abbey’ and the reaction from American viewers has been incredible,” said Brad Wald, chief commercial officer, NBCUniversal International Television Production. “The Knockout team understands the brand and we are looking forward to working with them to develop a strong licensing program that brings to life the Downton experience.”

Knockout Licensing co-president Carole Postal said she has been a “Downton Abbey” fan since the first season. “I love the writing, the fashions, the décor, and everything else about the story and setting that makes ‘Downton Abbey’ such a compelling brand for licensing.” HTT

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6/8/2012 2:07:35 PM

SEYMOUR GARFINKEL (1929-2012) On Saturday, June 2, 2012, we sadly said goodbye to Seymour Garfinkel. As the poem, “The Dash” says...“it is not the dates on a person’s tombstone that matter. It is the small dash in between that does since that dash represents the manner in which one lives his life.” Seymour Garfinkel made that dash count EVERY day of his life!!

On November 10, 1986, Home Textiles Today wrote an article on Seymour Garfinkel stating how much of an icon he was in the textile industry.

Back then, he was quoted as follows, “as I see it, ideas of fashion are shared by more people in more places.” He said that the U.S. is a new country in terms of fashion. It’s modern America.

According to Seymour, change in the way Americans live is responsible in large part for the change in mass retailing.

They like good things, they like colors and they don’t like drabness. And that is exactly how he lived his life....Colorful and bright!!

Now, today we not only remember him as an icon in the textile industry, but as a legend in the lives of all who were lucky enough to know him Seymour Garfinkel made the world of textiles as well as the world of all who knew him bigger and brighter!!

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OPINIONTodaY

C

How the Deal Went Down

OST PLUS R EL E A SED its preliminary proxy statement last week, outlining how the process of its pending acquisition by Bed Bath & Beyond unfolded.

The story begins in October 2009, when PJSC — Cost Plus’ financial advisor — reached out to companies that might be interested in making an equity investment or forming a strategic partnership with the retailer. At the end of the month, Cost Plus would report a narrower third-quarter net loss from continuing operations of $22.3 million (vs. a net loss of $24.0 million in the comparable 2008 period), a 10.4% drop in sales and a comp decline of 3.4%.

EDITOR-IN-CHIEF BBB responded to the strategic inquiry by proposing the test of a store-in-store concept leveraging, in particular, Cost Plus’ merchandising and logistic experience with food and beverage.

In the fall of 2010, BBB opened “World Market” food and beverage departments in three stores, expanding to a fourth location late last year.

“From time to time, the parties spoke informally about a possible expanded strategic relationship, but no formal proposals were made,” according to the proxy statement filed with the Securities and Exchange Commission.

Early this year, Cost Plus and BBB began talking about adding “World Market” departments to additional stores. By February, BBB ceo Steve Temares raised the idea of exploring an acquisition — stipulating than such a deal would need to be negotiated and completed quickly.

Various meetings and confidentiality agreements ensued. Cost Plus gave the goahead for BBB to perform due diligence in March.

More meetings ensued. On April 17, BBB reaffirmed its interest in acquiring the company, and a draft of the merger was drawn up 10 days later. The deal was publicly announced May 9.

So, in the grand scheme of things, the acquisition, once proposed, did advance at a good clip. It’s also intriguing that BBB — known for testing new programs to the nth degree — was sufficiently impressed with the results from just four test sites to go for the whole enchilada.

P.S. Should the deal go through as expected, it could push Bed Bath & Beyond past Walmart to become the No. 1 seller of home textiles in the country. HTT

Jennifer Marks

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Of Slices and Sheets

I

F YOU ’ V E BE E N to New York City recently and weren’t eating all of your meals on an expense account, you are probably aware of the single biggest dining and eating controversy going on in the history of this town.

We’re talking about the $1 Pizza Wars.

It’s cert ainly the most dramatic develWarren opment in pizzadom Shoulberg since the 1970s, when PUBLISHER/ it seemed like every EDITORIAL DIRECTOR single slice joint in town was vying to see which could be the most Original Rays.

That era produced a disease the city has yet to fully recover from, summarized in a theory that I developed to analyze the situation: the Rays Original Theory … or ROT. The theory was that an industry jumps on a trend, usually counter-productive to its best interests — both collectively and individually — when it sees that trend take hold with the general population. When every pizza parlor claimed to be THE Original Rays it produced a lemming effect that still haunts some neighborhoods a generation later.

Well, now ROT has resurfaced but with a different manifestation. Someone — and really, who knows who that actually was — at a hole-in-the-wall pizza place somewhere in the city decided to cut its prices and drop

the cost of a single slice for a buck.

Faster than you could say pepperoni pizza, dozens of places popped up promoting the popularity of pizza for just 100 pennies. Some places even went further, dropping down to 79 cents and for all I know, it’s gotten lower even as we speak.

This current iteration of the Pizza Wars is only one more example of what happens when ROT sets in and industries get sucked into death-non-defying situations.

Such situations, it should be pointed out to those of you more interested in sheets than slices, are quite commonplace in our own little world of sheets and towels. Pricing Wars have taken place in virtually every single home textiles product classification, from bed-in-a-bag to solid color towels to quilts to multi-packs of washcloths. It happens.

But what the home textiles business can’t ever seem to quite grasp is that the actions of the industry cannot be viewed in a vacuum. The same shopper who is buying $9.99 king sheet sets is also buying 99 cent slices of pizza … and for the same reason: It’s a bargain, perceived or otherwise.

A lot of those buck pizza slices are pretty dreadful and so are many of the crap-in-abag products this industry sells. But it’s what the customer wants — or at least thinks she wants — so it will go on.

The home textiles business can’t ever forget it is part of a larger consumer buying universe.

It’s just another slice of the pie. HTT

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Retail Briefs

Notes from a Concerned Observer

O

N M AY 27, CAT H Y HOR Y N wrote a piece in The New York Times’ “Style Section” titled “Charting the Rise of the King of Retail,” a short descriptive of Mickey Drexler, chief executive of J. Crew.

She wrote, “The fact is, Mr. Drexler is the stuff of retailing. He’s a genius of merch.”

Julian What is missing is the deTomchin scription of Drexler as a merchant, something that makes GUEST COLUMNIST him a very rare creature in today’s retail environment where talent is judged by the ability to read a spreadsheet.

There aren’t many that come to mind. Mike Gould at Bloomingdale’s, Gordon Segal at Crate and Barrel, but Horyn probably is unaware of him as he doesn’t deal in clothes. Off the top of my head, I can’t think of many others.

Drexler and his relationships with the members

of the design team, with the rolls of shirting in Italy, (Good Lord, he travels overseas!) with his use of a public address system to reach his employees suggests to me that he wants to be able to reach his employees — a very old-fashioned concept and “the stuff of retailing.”

I’ve been away for awhile, but I’m in touch with many buyers of and sellers to various retail groups, and what I hear far too often is that the contact magic is missing or gone.

It is my opinion that Drexler’s approach adds another benefit that has been fading far too quickly, which is the interest in the wants and needs of the consumer. Horyn points this out in her comments on the menswear focus and the continuous drive for innovation.

More power to him and his people. Long may they thrive. HTT Julian Tomchin held vp positions at Bloomingdale’s, Macy’s West and Fieldcrest. He has been writing a monthly feature called In-Store Review for HTT since last winter.

Bed Bath & Beyond Acquires Linen Distributor U NION , N.J. — Just weeks after

announcing it will acquire specialty retailer Cost Plus, Bed Bath & Beyond announced on June 1 the all cash acquisition of Linen Holdings, LLC for approximately $105 million.

Based in Gibbsboro, N.J., Linen Holdings is a privatelyowned, value-added distributor

of bath, bed and table linens and other textiles for the hospitality, cruise line, food service, healthcare and other industries.

“We are very excited to add the talented Linen Holdings team members and their sourcing and sales expertise to our existing operations. We look forward to the opportunity to support and aug-

ment the offerings provided by Linen Holdings, LLC to its current and prospective customers,” said Steven Temares, ceo of Bed Bath & Beyond.

Bed Bath & Beyond already has a division that sells into the hospitality market, but the Linen Holdings acquisition is expected to ramp up its presence there. HTT

Jaipur Rugs Garners Two Distinctions For 2011 Catalog

BY ALEX LEMONDE-GRAY NORCROSS, GA. — Jaipur Rugs re-

cently received two brand communication design awards announces for its 2011 Jaipur Product Catalog. The rug source, based here, received recognition from both the 18th Annual Communicator Awards and Graphic Design USA’s American InHouse Design Awards.

Founded in 1963, Graphic Design USA is the news magazine for graphic designers and other creative professionals. The publication’s annual American InHouse Design Awards honors

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excellence in graphic design and brand communications across a range of organizations and industries.

This is Jaipur’s third consecutive year of recognition for its product catalog from Graphic Design USA. Graphic Design USA presents the American In House Design Awards distinction to a select few from a pool of entries, according to Jason Moody, creative director, Jaipur.

Jaipur also collected a 2012 Communicator Awards’ Award of Distinction for its catalog. An international award program, the

Communicator Awards focuses on new and innovative ways to communicate brand messaging across a range of industries, according to a press release.

“We’re honored to receive recognition for our work from such well-respected organizations,” Moody said. “Even as web and social media continue to become larger components of our messaging, print pieces such as the catalog continue to play an enormous role in effectively communicating the benefits of our products and the essence of the Jaipur brand to our customers.” HTT

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Pier 1 Logs Solid 1Q Sales

P

ier 1’s first quarter same-store sales jumped 7.2% on top of a 10.2% gain in last year’s Q1.

Total sales for the quarter ended May 26 rose 7.9% to $361 million. Merchandise margins expanded to approximately 60.2% sales compare to the yearago rate of 59.8% of sales.

“The new website and ‘Pier 1 To-You’ project is entering its final stages. We are on track and will be ready for our launch in late July,” said Alex Smith president and ceo.

The company will report full earnings results June 14.

Target’s Fieldcrest Pillows to Add Dacron Memory Fiber

F

ieldcrest, a brand exclusive to Target, this month will introduce down-alternative sleep pillows filled with Dacron Memory Fiber, a recent Invista development.

“Down alternatives have been around for years, but this is a pillow with luxurious loft and a comfortable feel that we believe will have great consumerappeal,” said Roberto Fontanillas, global business director for Invista’s Dacron fiberfill business, citing the fill’s “full hand and resilience.”

The Fieldcrest Dacron pillow will feature a 300count cotton sateen stripe cover and carry the Dacron seal on its packaging. The hypoallergenic pillows are machine-washable.

Deal Will Put Macy’s Brands Into China

M

acy’s will become a stakeholder in China’s VIPStore Co. Ltd. and will sell its private label merchandise through VIPStore’s new omei.com ecommerce site for luxury and fashion brands.

Macy’s has made a $15 million equity investment in the company, which makes it a minority stakeholder. VIPStore also operates jiapin.com, a flash sale site.

This is the third strategic move on the international front for Macy’s Inc. Macys.com began selling online in more than 100 nations — including China — last year through a collaboration with FiftyOne, an international ecommerce provider. In 2010, it opened its first international Bloomingdale’s store in Dubai through a licensing agreement with Al Tayer Group LLC, a leading luxury retailer and distributor in the region.

Toys ‘R’ Us, Nordstrom Direct Execs To Keynote Shop.org Summit

A

t Shop.org’s upcoming annual Summit event this fall, two industry executives — Jerry Storch, chairman and ceo of Toys”R”Us, and Jamie Nordstrom, president of Nordstrom Direct — will be the keynote speakers.

Scheduled this year at Denver’s Colorado Convention Center from Sept.10 to 12, the summit caters to retailers of e-commerce, digital and multichannels. Shop.org is a division of the National Retail Federation.

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Home Textiles Today

June 11, 2012

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FIRST MONDAY:

NEW DATE

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AUGUST 18 - 22, 2012

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News

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Past Basket Mingles Antiques With High-end Linens For Custom Looks

Fat Snake by Zoeppritz Since 1828, NYIGF At Home featuring Home Textiles exhibitor.

ARTISAN r e s o u r c e™ August 19 – 21, 2012 Pier 92, NYC Co-located with the New York International Gift Fair (NYIGF®)

Debuting at NYIGF® in August 2012, Artisan Resource is a new semiannual production-sourcing venue for overseas artisan enterprises to showcase their products and production capabilities at export terms from the country of origin.

Artisan Resource connects US-based importers with international producers and exporters. Artisan Resource exhibitors have experience in meeting export demands and are selected by their commitment to design innovation, cultural preservation, social enterprise and sustainability.

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For more information on the NYIGF, including full market dates, visit nyigf.com.

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BY CECILE B. CORRAL

Past Basket showcases an array of luxury linens on display beds in Milwaukee.

MILWAUKEE — Many home textiles businesses start

out in a garage, somewhere.

Count Linda McFadden’s among them, although she might tell you the beginning of her high-end linens business is rooted in a basket.

Hence, the name of her two-unit luxury linens and antiques nameplate, Past Basket.

“The name really has a double entendre meaning,” explained store manager Ashley Evans.

“When she started out, many of the things she carried were from the past, and she has always liked the appeal of a basket as a place to gather things.

She likes to think of her store as a basket where she collects things from the past.”

While McFadden still offers some antique pieces, Past Basket has evolved over its 30-plus year existence from “a small booth” at an antiques mall in Geneva, Ill., to her home garage and finally into a pair of linens stores carrying current lines from major suppliers.

“Linda always tells the story that her garage kept getting full of great finds and diamonds in the rough,” Evans said. “But that one day her husband said it was time to get all of her stuff out of the garage, it was too full. And that’s when she

decided to open her store.”

McFadden “has very broad knowledge of textiles, and she put that to use to start her business,” Evans added.

The shop here, which she opened 11 years ago, is an official Yves Delorme corner store, “the only one in the state of Wisconsin,” Evans noted. “We stock all of Yves Delorme’s bedding and bath lines here.”

But McFadden’s Past Basket home textiles assortment also includes basic and fashion offerings from other sources, including SDH, Matouk, Peacock Alley, Traditions, Bella Notte, and Pine Cone Hill for bedding and Yves Delorme, Matouk, and Abyss & Habidecor for bath.

Table linens are also part of the mix, but more so at the company’s original store in Geneva, Ill. Brands primarily include Le Jacquard Française and Garnier-Thiebaut as well as others.

The Past Basket Milwaukee unit, which is located in the city’s posh North Shore neighborhood by Lake Michigan, concentrates more heavily on linens, while the Geneva store is smaller and serves more as a kitchen cabinetry and fix-

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tures showroom also stocked with tabletop and table linens collections.

Here in Milwaukee, about 40% of the sales and merchandise mix stems from bedding, bath and table linens. Of that, bedding linens make up a quarter of total store sales.

In its 3,000 square feet of space, the Milwaukee store’s selling floor features three display beds where McFadden, Evans and their team showcase Yves Delorme — “which represents our store’s signature line and our No. 1 seller,” Evans noted — but also gets creative, blending together lines from other brands to offer customers a new take on looks infused from multiple high-end suppliers.

“Our store is very colorful; it is not a gray look,” Evans said. “Our appeal to our customers is how we mix and match different looks to give them a custom look for their home. Our knowledge base [in linens and décor] helps us pull from every brand to create a unique look for our customers.”

That’s not to say basic bedding is not part of the offering. Past Basket offers simpler white and ivory collections from Yves Delorme, Peacock Alley and Matouk, among others.

In general, sheet price points start at about $144 for a basic white with some light accent treatments — “a little ruffle, some hemstitching maybe” — from Pine Cone Hill and can run as high as more than $1,000 for SDH or Yves Delorme lines.

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Thread counts are equally vast, from 200 to 1,000.

In bath, most everything is 100% Egyptian cotton and can range from “a really nice, lightweight pile bath towel called ‘Kaa’ from Abyss for $87 to a very luxurious, Egyptian cotton and modal bath towel by Yves Delorme called ‘Etoile’ for $65,” said Evans.

To round out the store’s look, feel and merchandise mix, Past Basket still carries some antiques, Evans said, which is part of the store’s draw among its loyal clientele.

“It is a lot about how we display,” she explained. “We have a lot of color and we always put things together in really unique and beautiful way, and it’s why people come to see us often. They come here to get inspired. We get so many comments about it, about how they want to come by the store to get inspiration and feel happy.”

Evans added that longtime customers “sometimes stop in daily or weekly to see what’s new. We know them by name, we know what they have purchased, and we are able to give them ideas on everything, from how to finish their guest bedroom for their mother-in-law’s visit to prepping for a party or special event.”

Like many other retailers, big and small, Past Basket is in the process of ramping up and expanding its social media presence.

The company is especially keen on Pinterest as a venue to show products along with its décor styles and ideas. HTT

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Home Textiles Today

June 11, 2012

Dressy tablecloths, runners and placemats collection get the focus at the Geneva, Ill., store.

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Home Textiles Today

June 11, 2012

Gordmans Pitches Business At Consumer Conference

BY CECILE B. CORRAL N EW YORK — Gearing up for its initial public offering, Gordmans pitched its prospects to the investor and analyst community last week at the Piper Jaffray Consumer Conference here.

Currently with 78 stores in 18 states, the 97-year-old, apparel and home chain announced in late May it would be holding an IPO. “What’s really exciting about Gordmans is that the growth in terms of geographic footprint and expansion is clear and our growth with respect to comparable store sales,” noted Jeffrey Gordman, president, ceo and secretary.

In the most recent fiscal year, Gordmans reported net income of $25.2 million on sales of $551.5 million. For the first quarter ended April 28, the company posted $8.05 million in net income on sales of $133.9 million. “[Those] are two catalysts driving the top line. That is one issue that I think investors don’t fully appreciate,” Gordman continued. “And then secondly, unless you’ve been in one of our stores, it’s hard to fully appreciate our differentiated proposition...We’re trying to optimize savings, selection, and the shopping experience in a way that truly sets us apart. We present a high-energy specialty store. We’ve got entertainment like a children’s theater seating area and a men’s sports seating area. It’s just a fun, unique, energetic brand and shopping experience.”

He also cited Gordmans “consistent” sales and store growth over recent years, especially since going public in August 2010. “We’ve added almost $100 million in top line revenues over last few years, translates to 20% growth in top line,” he continued.

This year, Gordmans wil add

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50% more stores to its roster over last year, or 9 new units total, and will enter two new states Idaho and Utah.

“We don’t have limitations from a financial constraint perspective to new store openings,” said Gordman, adding that the chain can potentially grow to 300 stores or more throughout the country.

As it has been for a while now, home continues to be an important and growing component of Gordmans’ sales mix.

The division comprises about 30% of total store sales, and home comps have improved over the last few quarters,” Gordman noted.

In the recent first quarter, “home décor was certainly a number one driver,” he continued. “We think, from a macroeconomic standpoint, that the [home] business could and should be more difficult with relation to [the slow market in] housing. However, if a retailer highly differentiates itself... it can perform better in [more challenging] macroeconomic times.”

What has helped Gordmans home businesses succeed in both good and bad economic periods has been its merchandise mix, Gordman said.

“In home, we have so many different businesses, from décor items like window treatments [and others] to home essentials that include kitchen trends, textiles, pampered pet products. We’ve got a lot of diversity within home and lots of themes we can leverage, whether it’s wine or icons such as birds and hearts, and color as well as key items.”

To support growth in home, Gordmans recently expanded its home décor merchandising team with a second divisional merchandise manager “who we hired to help us take advantage of additional opportunities we see in home.” HTT

News

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Ann Gish Returns to Former Showroom at AmericasMart

BY SUSAN DICKENSON ATL ANTA — Ann Gish has released the showroom her company formerly occupied for ten years in AmericasMart, on the 9th floor of Building One. The fine linens and bedding producer has shown for the last three Atlanta markets in HD Home.

Gish told HTT sister publication Home Accents Today that she is very excited about the company’s move back to the larger space, which will be

open for the July 2012 Market, and is open year-round every Wednesday and at other times by appointment.

“It always seems to be about timing,” Gish said of the move.

“It seemed like the right time to re-establish a singular presence in Atlanta again, doing things the way my company believes they should be done, being able to really work closely with our customers. The space being the same as I had for ten years and getting to work with the AmericasMart group again is all spe-

cial to me.”

Ann Gish will be debuting several new collections in the showroom this summer, including ombre chiffon, olive basketweave, Tree of Life, crossstitch on linen, and new “more affordable” knitted throws.

The Ann Gish showroom at AmericasMart is suite 9-A-5.

Contact person is Diane Moorhead, at (404) 408-3752.

The company also shows in High Point, NYIGF-Accent on Design, Dallas Home Finds and, this year, at ICFF. HTT

Ann Gish’s retail showroom in New York.

Seymour Garfinkel, 83 NEW YORK — Services were held Lichtenberg, Hornick and other here last week for Seymour Gar- families, that were closely identifinkel, former presfied with their companies. ident and owner of In a 1986 profile in Ellery Products ManHome Textiles Today, he ufacturing Inc., the was quoted as saying, “As company that today I see it, ideas of fashion are lives on as Ellery shared by more people in Homestyles. He was more places.”

83 and died on June He said that the U.S. 2 after a brief illness. is a new country in terms SEYMOUR Garfinkel started of fashion, and change in G ARFINKEL with Ellery in 1953 the way Americans live is in sales and eventuresponsible in large part ally went on to buy the company for the change in mass retailing. in 1981. After a 47-year career in He said: “They like good things, the window curtain business, he they like colors and they don’t like retired in 1997. drabness.”

He was one of a generation of Ellery Homestyles today is legendary figures in the window owned by Budd Goldman. Garbusiness, along with the Kahn, finkel’s son, Bruce Garfinkel, is

president of the firm, which has expanded into bedding and other home textiles categories.

Bruce Garfinkel, in speaking about his father, said, “He was never one to promote himself. He just liked to be the person he was.”

He is survived by his wife of 62 years, Rhoda, and besides Bruce and his wife Sandi, a daughter Bonnie Miller and her husband Mark and five grandchildren. Another daughter, Robin, passed away in 1976.

The family is requesting that donations can be made to the Jeri-Finesilver Cancer Foundation and sent to Margie Horowitz, 236 Hamlet Drive, Jericho, NY 11753. HTT

6/7/2012 3:18:32 PM

From the editors of

Sponsored by

Cotton Concerns Still King in Sheets

htt120601_009 1

6/7/2012 3:35:53 PM

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Home Textiles Today

News

June 11, 2012

> hometextilestoday.com

Cotton Comes Down, Sheets Go Up

BY JILL ROWEN

SHEETS AND PILLOWCASES

N E W YO R K — Cotton prices

2.58

$

B

10% of the Home Textiles Universe

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

Up

2.7%

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 t aking a look at solutions-based design to keep the category alive and find their niche in the marketplace.

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.

$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%

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-to-wear 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 knowledge 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, H o m e Te x . H o m e Te x p r o duced microfiber offerings, rayon/nylon blends and other

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6/7/2012 5:22:12 PM

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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 flexibility 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 e-tailing 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.

The next Database report will appear on June 25 and will cover the window treatments category.

11

Home Textiles Today

June 11, 2012

Cotton Scrutiny Continues

BY WAYNE MARKS NEW YORK — Keeping an eye

on cotton is no small part of engagement in the home textiles business, which is why a few recent items regarding the critical commodity are worthy of attention.

According to a May 23 story in the Financial Times (FT), the Commodities Futures and Trading Commission, via its enforcement division, launched a probe into trading activity during last year’s spike in cotton prices. The article reports that certain market participants have complained that Allenberg Cotton, a subsidiary of Louis Dreyfus Commodities, forced sellers into the exchange even though alternatives may have been available. FT also reports that less than one in four CFTC enforcement investigations resulted in legal action last year.

In the same FT edition, a story appeared regarding a decline in cotton consumption, which has dropped approximately 8% over the last decade, according to the International Cotton Advisory Committee. The FT story cites contributing factors such as: changing preferences, the evolution of polyester in the apparel space (specifically in athletic wear), more compet-

itive pricing of synthetics as well as polyester’s ability to be sourced locally in production powerhouses such as China.

Nevertheless, on the pricing front, the United States Department of Agriculture reports in its monthly World Agricultural Supply and Demand Estimate released on May 10 that, “World consumption is expected to rise 3.3% due to

all polyester at Kmart, Target, and Walmart.

While cotton prices are expected to remain flat, macro-economic factors may come into play in the near term. There is some speculation in financial markets that due to the disappointing May jobs report the Federal Reserve will engage in a third round of quantitative easing,

“World consumption is expected to rise 3.3% due to modest growth in both world GDP and cotton’s share of world fiber demand, as lower cotton prices relative to polyester improve cotton’s competitive position.”

— UNITED STATES DEPARTMENT OF AGRICULTURE, World Agricultural Supply and Demand Estimate

modest growth in both world GDP and cotton’s share of world fiber demand, as lower cotton prices relative to polyester improve cotton’s competitive position.”

A comparison of the market baskets of major retailers that HTT reported in February 2012 with the baskets reported five years ago, showed no significant shifts in fiber construction in nearly all categories at most of the stores.

However, cert ain bedding items such as queen sheet sets, queen bed-in-a-bag and dust ruffles that were cotton/polyester blends in 2007 are now

also known as QE3, or even more commonly as “printing money.” Such Fed action tends to drive up the price of commodities generally, including cotton, as investors seek shelter in more tangible assets.

The previous round of quantitative easing was cited as one of many contributing factors to the 2010-2011 cotton price spike by John Robinson, professor and extension economist-cotton marketing at Texas A&M’s Department of Agricultural Economics in an interview with HTT last fall.

HTT

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HTT_June11th_Tencel_jacob_javits1 1

6/7/2012 9:45:24 AM

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Home Textiles Today

June 11, 2012

13

Sealy Signs Licenses With Downlite, American Textile Co. A RCHDALE , N.C. — Sealy has

signed new licensing agreements with two companies to manufacture and market basic bedding accessories. A comprehensive line of sleep products will be offered

by Downlite and American Textile Co. beginning early in 2013.

Downlite will produce and market down and synthetic filled bedding, including pillows, blankets, comforters, and sheeting products, for the Sealy, Sealy Posturepedic and Stearns & Foster brands. American Textile Co. will produce and market mattress and pillow protectors for the same brands.

“We’re taking a fresh look at this category, and have selected two dynamic organizations known for high-quality products and innovation,” said Sealy ceo Larry Rogers. “They are forward-thinking, which is consistent with our strategy to grow through licensing and other strategic partnerships. With this new direction, Sealy will offer customers down and down-alternative products, protectors, and encasements that are the best made and most technologically advanced in the world.”

For Downlite, the licensing agreement provides the opportunity to reach new markets and customers in partnership with Sealy.

“This is a great honor for us and Downlite is extremely

Baltic Linen Adds Snider, Leal N E W YO R K — Baltic Linen has hired Mark Snider as vp of design and Keith Leal as vp of sales.

Snider spent many years running his own design studio and the past five years as the head of design for a bedding importer.

Leal was most recently vp of sales and marketing at Venus Group. Prior to that, he was vp of sales of the bath division of Pem America. HTT

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proud to be partnered with a leading brand like Sealy,” said James Lape, ceo of Downlite. “Our company is forever linked with the highest quality and innovation. We are focused on developing intelligent part-

nerships, with complementary brands, who allow us to manifest our corporate strategies.”

“We are very excited about our new partnership with Sealy,” said Blake Ruttenberg, executive vice president of sales and marketing

for American Textile Co. “This license is a great addition to our portfolio and will give American Textile Co. the opportunity to further capitalize on developing new and innovative product under the Sealy

brand. We believe that our consumer-focused approach to product development combined with the power of the Sealy brand will expand the protector category within the U.S. and Canada.” HTT

July 24 – 26, 2012 Javits Convention Center New York, NY

The North American sourcing destination for fabrics and finished soft goods for all home applications.

Register Online Now! HomeTextilesSourcing.com/ HTT Co-Located with:

6/7/2012 4:53:22 PM

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Home Textiles Today

June 11, 2012

News

Flash Sale Sites Still Glowing FLASH SALES FROM PAGE 1

19% year-over-year.

At home furnishings flash sale site One Kings Lane, traffic for April 2012 was made up of 75% of returning visitors within the last 30 days. That was up from 36% in April 2011, Tatham said. He noted that the average time spent on flash sale sites is about 10 minutes and that has stayed about the same in a comparison of April 2012 versus April 2011.

Heavily curated assortments, as well as style advice, a hallmark of many of flash sites , may give consumers the nudge to try new brands and products. And at a discount, the fear factor is lessened. Online retailing has met its match: Itself.

One Kings Lane

Bold pillows for sale on One Kings Lane.

One Kings Lane recently unveiled Vintage & Market Finds, offering discounted furniture and accessories and art for an extended sale period of five days as opposed to the site’s typical 72hour timeframe.

Susan Feldman, One Kings Lane co-founder and chief merchandising officer, explained the reasoning behind the extended sale period. “Our members have told us they love the freshness of shelves changing every day, but also want a permanent online marketplace. We add new products to Vintage & Market Finds every day, which stay in the marketplace for five days or until it’s sold out. Our daily sales continue to last 72 hours.”

As the inventory on the site changes daily, textiles typically represent about 10% to 15% of the items offered on One Kings Lane. That includes bedding, bath towels, throws, pillows, fabrics, and curtains.

While the report by Mulpuru, the Forrester Research analyst, focuses heavily on the challenges and pitfalls of flash sale sites (chief among them is training the consumer to shop only when there is a deal), she singled out One Kings Lane with optimism. She notes that One Kings Lane is likely to “benefit from rich product assortments that can be sourced from manufacturers that are more likely to support profitable drop-ship efforts, while at the same time they avoid facing extensive competition from physical retailers like T.J.Maxx or Ross stores that can absorb large volumes of merchandise.”

One Kings Lane said it was the first to start flash sales in the home category with a supply of premium, branded products sold at deep discount over a short period of time. In 2010 it expanded into vintage and one-of-a-kind products with the launch of Tastemaker Tag Sales, and in 2011 launched movie set sales, estate sales, and shopped the globe to bring finds from destinations like Belgium, Italy, India, and Morocco.

Feldman said that through the Tastemaker Tag Sale program, One Kings Lane discovered hundreds of high-quality vintage sellers who were looking for new online channels to sell their items, inspiring the launch of Vintage & Market Finds.

HauteLook

A luxury bedding sale on HauteLook.

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Nordstrom acquired HauteLook last year to gain entry into the private sale online marketplace, a deal which has given the online retailer some heavyweight support.

Kecia Hielscher, vp of home at HauteLook, said the acquisition has been a boon to the flash sale site. “In home, [Nordstrom has] supported us in acquiring key home brands and inventory. And they’re just one more reason for our members to feel confident about our brands, assortments and service.”

Home is a strong business for HauteLook and one of its fastest growing categories, Hielscher said. In 2011 HauteLook saw a 104% increase over 2010 in the home category. Home textiles makes up about 25% of the home business, she said.

Hielscher noted that new sale events start each day at 8 a.m. Pacific and they last for four days on the site. The time frame works for HauteLook customers, she said. “We have found that our members like to take measurements in their spaces and envision how the products will look in their home before purchasing. They like to take time to consider their purchase, however they know that there is limited inventory available, so they do buy quickly when it’s an item they really love.”

Will other brick and mortar retailers follow Nordstrom’s example? Mulpuru said she was not aware of anyone actively pursuing other businesses. That’s “largely because retailers are risk averse and frugal, and many of these home flash sale companies think very highly of themselves with extraordinary valuations that retailers are unlikely to pay.”

Some retailers may be considering getting into the space themselves. Saks and Neiman’s have done it on their own for clothes, she noted, “but I’ve seen few executions of it because it requires a separate team and I think is viewed as a management distraction now, especially since the buzz around flash sales has died down by now.”

6/7/2012 4:16:43 PM

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Rue La La Interested in joining Rue La La? New members can request a spot on the waiting list, which adds to the air of exclusivity surrounding this invitation-only private sale shopping site. In addition to fashion, accessories, footwear, home, wine, gourmet food, it has added categories like travel and local deals. Its top selling home textile brands are Frette and W Hotel.

Rue La La appears to be sticking to its original flash sale model of two-day sales. “At Rue La La our members love the excitement and urgency of shopping our 48-hour boutiques every day,” said Stacey Santo, vice president of marketing communications. However, Santo noted that, “We do preview our boutiques three to five days before they go live to ensure our members never miss their favorite brands.”

Santo described how Rue La La consumers function. “Members often check the brands’ web sites or stores for an idea of the types of merchandise they may hope to find.”

That behavior is naturally a challenge to sellers of full-price merchandise, whose stores become mere showrooms for bargain hunters wanting to try on merchandise before buying. And e-tail sites of fullprice merchandise can be used for research and price-checking.

But while the concept of daily deals, half-off and other steep discounts are not actually new in retailing, what is new, as Mulpuru points out in her research for Forrester, is that the deals are heavily curated. She points out that “[e]ven smaller companies like Rue La La say that most of their 400 employ-

Sentiments decorative pillows were recently featured on Rue La La.

ees are dedicated to buying and sourcing merchandise.”

As Santo explained, “We offer the best brands in the home category that we know our members will love, as well as inspire them to try new brands and products that they might not be familiar with.”

Gilt Home Gilt Home launched late last year and the response has been “tremendous,” said Jason Goldberger, president of Gilt Home.

“Gilt Home is one of the biggest businesses at Gilt and it’s becoming increasingly important to the overall Gilt brand. Gilt Home also represents one of the biggest growth opportunities within Gilt,” he said.

Bedding is one of the Gilt Home’s popular categories, Goldberger said. “Home textiles are a very important part of our business and it continues to grow exponentially. Our customers have really been responding to the range of textiles sales on the site, whether it’s bedding and high-thread count sheets from Frette, Missoni Home, W Hotels, towels from Sferra and Matouk, [and] cashmere throws.”

Gilt Home was one of several niches added by the Gilt Groupe, joining sites for food, travel, menswear, children’s clothes and local business deals.

Goldberger said: “Daily flash sales continue to be a favorite feature on Gilt Home.” Longer sale formats were recently introduced.

“We currently offer a range of sales — some are three days, some are four, and some are up to a week long. The durations vary. Often when have a special sale featuring a unique brand or product range, or if it’s curated by a notable designer, we extend the sale for a longer period of time to give our members a better chance and longer time to shop.”

Missoni Home is a top textile brand for Gilt Home.

The Foundary Private home furnishings sale site the Foundary also launched longer sales. In April, it created a section on it web site called Specialty Shops, which feature a new sale each week for its members. These sales last for 14 to 45 days, compared to the main site’s typical three day events.

“These longer-lasting Shops give Foundary members adequate time to research and consider their purchases. This is especially helpful when considering higher price points,” said Emily Dixon, marketing specialist for the Foundary.

The extended time frame also allows the Foundary staff to generate more editorial information and integrate it with sales – linking up product descriptions, social media and House Press, the Foundary blog.

Longer sale periods are not necessary replacing flash sales, Dixon said. “Specialty Shops appeal to members that prefer longer purchase considerations. In a sense, it is the Foundary’s way of capturing a broader audience while remaining true to our original members.”

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The Foundary recently created Specialty Shops, which feature a new sale each week for its members.

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PEOPLETodaY JCPenney Names Paul Rutenis gmm for Home P L ANO , TEX AS — In a shift of

positions, Paul Rutenis has been promoted to gmm of home at JCPenney while John Tighe, who had held the position of svp/gmm of home since April 2010, will become gmm of the men’s division.

Rutenis joined JCP in April 2011 as the dmm for furniture and decorative accessories. He

began his retail career with May Department Stores in 1991 and joined Dick’s Sporting Goods in 2006 as dmm.

Prior to joining JCP in 2002, Tighe spent 10 years at Filene’s in men’s, young men’s and juniors. He also spent two years with Meier and Frank as a divisional merchandise manager in juniors. HTT

Jana Burvikovs Joins Highland House HICKORY, N.C. — Fabric expert and interior designer Jana Burvikovs has become senior fashion director for furniture manufacturer Highland House, where she will oversee upholstery fabrics and work with dealers and designers on fabric and fashion direction for their stores.

Previously, she was vp of design at Wesley Hall. Earlier, she held positions at Textile Fabrics Associates, Ethan Allen,

MSLO Taps Bukawyn to Head Global Licensing N E W YO R K — As it looks to expand its brand presence beyond North America, Martha Stewart Living Omnimedia Inc. has hired Ann Casey Bukawyn as executive vp, global licensing.

Bukawyn joins MSLO from Perry Ellis International Inc., where she was president of licensing. Prior to that, she was at Liz Claiborne Inc., where she served most recently as pres-

S AN F R ANCISCO — Anna Last, who had been editor-in-chief of Martha Stewart Living Omnimedia’s Everyday Food publication, has been named the senior vp and executive creative director of the Williams-Sonoma brand.

She will oversee that Williams-

Midwest Textiles & Home Products Assn Plans Charity Outing

W HITE P L AINS , N.Y. — GLM has promoted John Kelly to the position of sales manager for the general gift division of the New York International Gift Fair (NYIGF), effective June 1.

Kelly is responsible for developing and executing sales strategies for the Fair’s largest division, which includes some 750 exhibitors.

“John’s eight years with GLM has provided a solid foundation of experience with tradeshow

htt120601_016_017 16

10:00 a.m., with continental breakfast and registration opening at 8:30 a.m. Cash bar cocktails will begin at 3:30 p.m., followed by dinner at 5 p.m.

Pre-outing activities include a sacual dinner on June 24 at the country club at 6 p.m. as well as golf outings on June 23 and June 24. For information, contact Paul Ruddy at (614) 7641168 or pr@ruddymkt.com.

For additional information or to register, visit http://www. mthpa.com.

expand the company’s international footprint.

MSLO’s international business encompasses television programming in 86 countries and magazines distributed in more than 20 countries, including Germany, Korea, Turkey and Dubai. The new Martha Stewart Home Office line with Avery at Staples is expected to launch in the United Kingdom this July.

HTT

Former Martha Stewart editor new Williams-Sonoma svp

Domain and Sitwell.

“We are fortunate to have someone with Jana’s taste and experience level to join us at such an important time for the company,” said Parker Goss, president of Highland House.

“Jana’s experience will be key for us as we prepare for the launch of the new Candice Olson collection of upholstery and case goods to be introduced in October.” HTT

C OLUMBUS , O HIO — Midwest Textiles & Home Products Association has opened registration for its annual golf, tennis and swimming outing to raise money for community organizations.

The event will take place June 25 at The Country Club of Muirfield Village, 8715 Muirfield Drive, in Dublin, Ohio.

Golf will be limited to the first 144 people who sign up and registrations are requested

by June 10.

The golf scramble begins at

ident, bridge brands.

“MSLO’s merchandising business is thriving and we strongly believe the Martha Stewart brand and other brands in our portfolio have potential beyond the US and Canada,” said Lisa Gersh, president and coo.

Bukawyn will work with Gersh, Martha Stewart and Patsy Pollack, senior executive vice president of merchandising, to

Sonoma catalog, williams-sonoma. com and the brand’s retail stores.

“Her wealth of experience in food, entertaining, style and the art of storytelling will make our catalog, our website and our stores richer experiences for our customers,” said Richard Harvey,

Williams-Sonoma brand president.

Prior to MSLO, Last was senior style editor for Real Simple magazine, contributing editor at Marie Claire Australia and food editor for Vogue Entertaining + Travel. HTT

GLM Moves Kelly up NYIGF Ladder to Head Sales sales, marketing, management and operations,” said Christian Falkenberg, NYIGF director and GLM vice president, to whom Kelly now reports.

“He has a proven record in setting and exceeding sales goals, which will serve him well in his new responsibilities for General Gift.”

Since June 2004, Kelly has held sales and operations positions with several shows owned or operated by GLM, including

sales manager for The Licensing Gallery @ NYIGF, an annual business-to-business forum presented at the winter 2010 and winter 2011 editions of NYIGF. Most recently, he worked on Surtex as well as several GLMmanaged events in the hospitality industry (International Hotel/ Motel & Restaurant Show; Las Vegas Hotel & Restaurant Show and the Upper Midwest Hospitality, Restaurant & Lodging Show). HTT

CHECK US OUT ON THE WEB

6/6/2012 11:47:03 AM

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Home Textiles Today

June 11, 2012

New Juvenile Show Offers Heimtextil 2013 One-on-one Meetings With Buyers Almost Fully L AS VEGAS — The nGage Co. is launching a new juvenile show this summer here that brings juvenile manufacturers and retailers together for guaranteed one-on-one meetings in a private forum.

The nGage Co. said the KidzBiz Insights event is set for July 15-17 at THEhotel at Mandalay Bay, and includes both a conference and guaranteed face-toface, one-on-one meetings with key buyers from major retailers, including Babies ‘R’ Us, One Step Ahead, giggle, Great Beginnings, Magic Beans, Posh Tots, Target, CVS, The Museum Store, Zulily, and many more of the top independent juvenile, gift and toy specialty stores. The nGage Company said it will have between 50 and 75 total retailers represented at the show.

Qualified ret ailers who make or heavily influence buying decisions receive a hosted package that includes airfare,

ground transportation, deluxe hotel accommodations, meals and access to the conference.

Those buyers are then required to attend scheduled one-on-one appointments, general sessions and continuing educational programs.

Show organizers said manufacturers attending the show will know in advance how many oneon-one meetings they will have, and who they will be with.

The conference is for those in several segments of the juvenile industry, including maternity, babies, toddlers and older, and covers categories including juvenile products, toys and games.

The agenda also includes speakers from both inside and outside of the juvenile market who will discuss current trends and what’s ahead in the future. Tana Hallows of Moms Best Media will deliver the keynote address on “How to connect your brand with influential moms.”

“KidzBiz Insights is all about getting down to business with a comprehensive agenda, focused introductions and engaging discussions that will continue for years to come,” said Philip McKay, president of nGage Co. Events. “There is a distinctive strategy behind KidzBiz Insights.

We are committed to providing a unique business experience to maximize our clients’ time and profitability by bringing the top buyers and leading manufacturers of the juvenile and toy industries together in a private business environment for networking, cutting edge content and strategies. We are also utilizing the latest social media platforms to engage our community year-round. This is an event and forum that goes well beyond the superficial hit-or-miss meetings at a typical tradeshow.”

For more information on the event, contact Anne Frost at afrost@sandowmedia.com. HTT

Booked FRANKFURT, GERMANY — The Heimtextil international home textiles fair is nearly booked up, with participation from both new exhibitors as well as companies returning after an absence, according to show organizer Messe Frankfurt.

The 2012 show grew 2.4% to 2,634 exhibitors, and “the current registration level gives us good ground to take an optimistic view of the future and underscores the positive developments in the sector,” said Olaf Schmidt, vp of textiles and textile technologies, Messe Frankfurt.

Next year’s show will also feature young, innovative companies in a presentation titled New@More in Hall 11. HTT

Proposte Sees Upswing In U.S. Visitors C ERNOBBIO , I TALY — The 20th

edition of Proposte last month experienced a 14.5% increase in visitors from the United States.

The fair drew 6,363 visitors, 64.5% of them from outside

Italy, up from 61% last year. By country, Germany provided the highest number of foreign visitors (564), followed by Great Britain (423) and the U.S. (372).

Other foreign visitors came

from China, Japan, Taiwan, India, Russia, Sweden, Norway, Denmark and the Netherlands.

The next edition of the show will take place May 7-9, 2013.

HTT

Handloom Export Promotion Council sets 2013 dates CHENNAI, INDIA — The next edi-

tion of the India International Handwoven Fair (IIHF) will take place March 5-7, 2013 at the Chennai Trade Centre here.

The recently concluded

show, which took place in March, featured 149 Indian exhibitors, according to the Handloom Export Promotion Council, which organized the show.

In addition to domestic buy-

ers, the show was attended by 90 buyers from 31 other countries.

Australia had the highest number of overseas buyers, followed

by Serbia, Uzbekistan, Japan, Uganda, the United States, Germany, Italy and Brazil. HTT

Robely Trading Relocates C ONCORD , O NTARIO — Robely Trading, manufacturer of kitchen and bath accessories, has relocated its Canadian head office into a new space with a state-ofthe-art showroom.

htt120601_016_017 17

The showroom uses advanced technology to display interactive story boards for current and future home trend products and textiles, according to the company, which also has a New York

showroom at 7 W 34th St. The new address in Canada is: 20 Barnes Court – Building H, Concord, ON, L4K 4L4, Canada. Company phone numbers remain unchanged. HTT

Oeko-Tex to Sponsor Sustainable Textiles Show G R E E N S B O RO , N.C. – Global

testing and certification organization Oeko-Tex will sponsor Continuum, a textiles trade show highlighting innovation solutions for textiles sustainability, which will take place July 24-25 in New York.

“Oeko-Tex’s focus on and dedication to a safer and more sustainable textile industry is right in line with the principles of the Continuum show,” said show organizer and ceo-founder

Andrew Olah.

Companies that attend Continuum “are the thought leaders and innovators who will drive meaningful improvements in the textile industry,” said Dr. Jean-Pierre Haug, secretary general for the International OekoTex Association.

The show will take place at Center 548, 548 West 22nd St. For information visit www.thecontinuumshow.com or email erin@olah.com. HTT

6/6/2012 11:47:15 AM

18

Home Textiles Today

> hometextilestoday.com

June 11, 2012

BUSINESS TodaY May a Good Month for Many

BY CECILE B. CORRAL NEW YORK — Almost all of the key retailers tracked monthly

by HTT enjoyed comp increases in May, getting the second quarter period off to a smart start.

O n l y K o h l ’s r e p o r t e d a comp decline — down 4.2% — which chairman, president and ceo Kevin Mansell described as

store sales increased 8% both on a consolidated basis and at The Marmaxx Group, the company’s largest division. “ We w e r e p a r t i c u l a r l y pleased to see all of our businesses across the U.S., Canada and Europe continue to post such consistent, strong performance. Once again, customer traffic was up significantly at every division, which we be-

10.0%

4.0%

8.5%

MAY SALES FOR KEY RETAILERS Five weeks ended May 26, 2012 (dollar amounts in millions) a 2012 SALES

The Bon-Ton Stores Inc Costco Wholesale Corp. b Duckwall-ALCO Stores Inc. Fred’s Inc. Kohl’s Corp.

Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp.

The TJX Companies Inc.

2012 year-over-year

7.0%

4.0%

The Bon-Ton Stores Inc. Costco Wholesale Corp.

Duckwall-ALCO Stores Inc. Fred’s Inc. Kohl’s Corp.

Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp.

The TJX Companies Inc.

2.5% 1.0%

May Same-Store Sales Johnson Redbook Index

-2.0%

TOTAL % CHG.

$181.0 $7,140.0 $38.4 $143.6 $1,372.0 $1,936.0 $661.0 $98.5 $4,799.0 $1,700.0

1.2 7.0 4.4 6.0 (2.6) 4.1 13.0 3.4 5.0 10.0

SAME-STORE % CHG.

1.5 5.0 1.8 1.3 (4.2) 4.2 8.0 3.1 4.4 8.0

17 WEEKS

5.5%

-0.5%

$183.1 $7,670.0 $40.1 $152.1 $1,337.0 $2,015.0 $746.0 $101.9 $5,038.0 $1,900.0

2011 SALES

-3.5% -5.0%

2012 SALES

2011 SALES

$823.9 $31,090.0 $157.3 $652.6 $5,580.0 $8,158.0 $3,103.0 $405.2 $21,575.0 $7,700.0

$830.9 $27,680.0 $151.6 $628.0 $5,534.0 $7,825.0 $2,736.0 $402.0 $20,379.0 $6,900.0

TOTAL % CHG.

-0.8 12.3 3.8 4.0 0.8 4.3 13.0 0.8 5.9 11.0

SAME-STORE % CHG.

(0.7) NA NA 0.1 (0.9) 4.3 8.0 0.4 5.1 8.0

MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY Source: Johnson Redbook Retail Sales Average, a unit of Instinet, a Reuters company.

“lower than our expectations” and the cause for the chain’s softened guidance for Q2.

“We now expect second quarter comparable store sales to be modestly negative,” he said. “We made some progress in building our inventory levels, but continue to expect lower units to hinder our sales until the back-to-school season.”

Leading the pack as they have for the past several months were off-price rivals Ross Stores and TJX Companies, both posting 8.0% comp increases.

TJX boosted its secondquarter earnings guidance in the wake of the May numbers.

During the month comparable

htt120601_018_020 18

a. Reporting periods vary among retailers. b. Costco’s May comp results are for the U.S. division and do not include the slightly negative impact of deflation in gasoline prices or the negative impact from foreign currencies. Including those impacts, comps for the month were up 5.0% in the U.S. division, 3.0% in the international division, and 4.0% for the total company.

WINNERS AND LOSERS Same-store sales % change

WINNERS Ross Stores TJX Cos. Costco Wholesale Corp.

Target Corp.

Macy’s Inc. Stein Mart Duckwall-ALCO The Bon-Ton Stores Fred’s Inc.

8.0% 8.0% 5.0% 4.4% 4.2% 3.1% 1.8% 1.5% 1.3%

LOSER Kohl’s

(4.2)%

lieve speaks to the power of our values, brands and fashions,” said ceo Carol Meyrowitz.

Ross Stores vice chairman and ceo Michael Balmuth said May sales “demonstrate that our ongoing focus on providing exciting assortments of name brand fashions for the family and the home continues to resonate with today’s value-oriented consumers.”

With a 4.4% comp increase, Target’s May results came in at the high end of the company’s expected range, said Gregg Steinhafel, chairman, president and ceo.

However, home and hardlines comps decreased slightly.

Macy’s boasted of contin-

ued momentum for its sales and comps. “ G r ow t h … c a m e f r o m stores and online, and across geography and categories of business,” said Terry Lundgren, chairman, president and ceo.

Online sales for macys.com and bloomingdales.com combined were up 42.3%in May and 35.7% year-to-date.

May bought comp increases for Bon-Ton and Stein Mart after several months of struggle for both chains.

Stein Mart posted a 3.1% comp increase after taking a 1.6% comp hit in April, thanks

in part to continued strength in linens — among the strongest categories for the month.

Jay Stein, interim ceo, noted that it has been “nearly six years since we had a monthly increase greater than this without the addition of a significant promotional event or impact from a calendar shift.”

Bon-Ton’s 1.5% comp was attributed to “compelling new offerings and refinements in our marketing efforts,” said Brendan Hoffman, president and ceo. In addition, its e-commerce business posted doubledigit sales increases. HTT

6/6/2012 11:32:40 AM

How do you make your company stand out from the hundreds of other suppliers calling on the same ten retail accounts?

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

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20

Home Textiles Today

June 11, 2012

Business

> hometextilestoday.com

Dollar General Q1 Results Buoy Outlook; Home A Highlight GOODLETTSVILLE , TENN. — Hav-

ing earned record sales and net income in its first quarter, Dollar General called the period its fifth consecutive quarter of “accelerating improvement.”

“Dollar General is starting off 2012 with strong performance in the first quarter due to excellent same-store sales growth of 6.7%,”

resulting from increases in both customer traffic and average transaction, noted Rick Dreiling, chairman and ceo in a conference call with analysts last week.

Net sales increased 13.0% to $3.90 billion compared to $3.45 billion a year ago.

Net income leapt 36% to $213 million, or 63 cents per share.

While consumables remained a driver, several discretionary areas had strong results, including seasonal and home.

Dreiling said the positive momentum in home continues and added: “With what we’re seeing in home decor and window treatments, I’m happy with what we’re seeing there.”

Buoyed by its first quarter performance, Dollar General raised its full year financial outlook to adjusted EPS of $2.68 to $2.78.

“Our first quarter was strong, and we are pleased with our May sales performance,” Dreiling continued. “I believe we are positioned well to invest in the future of our business as we continue to

redefine small-box retailing and reinforce Dollar General’s role as America’s general store.”

The company continues to expect sales to increase 8% to 9% over the 53-week fiscal year, or 10% to 11% on a comparable 52-week basis. Same-store sales are expected to increase 3% to 5%. HTT

Shop.org Study Finds Social Media At Center Of New Retail Strategies WASHINGTON — Almost two out

of five – 38% – of online consumers follow retailers through one or more social networking sites, and Pinterest is increasingly the favored venue.

Online U.S. consumers using social media follow an average of 9.3 retail companies on Pinterest, compared to the average 6.9 retailers they follow on Facebook and the 8.5 retailers they track via Twitter, according to the recent 2012 Social and Mobile Commerce Study, a joint research project by NRF’s Shop. org division with comScore Inc. and The Partnering Group.

“Never before has social media been so attractive to consumers, literally,” Shop.org noted.

The report, which surveyed

1,507 online U.S. consumers and was conducted in March by comScore, shows that as social media continues to grow, retailers are actively evaluating where their customers want them to be. The results show that company blogs, YouTube and Facebook command the majority of consumers’ social activity.

In particular, 70% of those who follow a retailer’s blog click through to the website, and though sometimes overlooked in the overall social media mix, more than 68% of consumers use YouTube to browse and research a retail company.

“Retailers have done a commendable job embracing social media -- engaging their customers where it makes sense while keeping their brand relevant, in-

teresting, appealing and exciting on each platform,” said Shop. org executive director Vicki Cantrell. “Specifically, Pinterest has given retailers another channel to ‘listen’ to and interact with both existing and new customers, telling an ongoing visual story through images of their products and their brand ‘spirit,’ a story that customers can then tell again to their friends and family members.”

Finding good deals is still the leading reason consumers shop online, but less so these days.

This year, 51% said they follow a retailer to get information on deals and coupons, down from 58% who said so last year. Four in 10 (43%) said they are looking for product information and 36% want to post and/or read

Same-store sales

Memorial Day Helps Push Comps Above Plan N EW YORK — Same-store sales rose 3.1% in the first Johnson Redbook Index week of June, according to First week of June, year-over-year % change The Johnson Redbook Retail WEEK ENDED 6/2 6/9 6/16 6/23 6/30 MONTH TARGET Sales Index.

Department stores* 2.4 2.4 2.2 Month-to-date, June was Discounters 3.5 3.5 3.3 up 3.1% compared to June Redbook Index 3.1 3.1 2.9 of last year, besting a re*Including chain stores and traditional department stores vised target of a 2.9% gain.

Source: Johnson Redbook Index Month-over-month showed goods as well as seasonal apparel,” she said. “Rea 1.1% gain, relative to a tartailers also said business picked up nationwide get of a 0.9% gain.

The week included the Sunday and Monday due to widespread warmer temperatures.”

June represents the peak of seasonal business of the Memorial Day weekend period and was slightly above plan, noted Catlin Levis, Redbook before traditional July clearance sales, she noted. “Weather will be key in terms of allowing analyst.

“Memorial Day promotions helped to drive stores to make up sales before margin cutting demand for a broad range of summer and picnic clearance time,” Levis summed. HTT

htt120601_018_020 20

comments about merchandise or services.

Three in 10 consumers who follow ret ailers through social media said they are actively looking for information about events (34%), current trends and ideas (31%), or photos and videos (30%), such as “how-to’s” and styling ideas, as well as expert opinions (27%).

Smartphone-toting consumers, the study found, are interested in sharing their location with retailers. One-third (33%) of those who own smartphones said they have shared their location with retailers. Locationbased services, such as Groupon Now!, FourSquare and Facebook have helped retailers instantly reach customers by targeting special offers, discounts

and coupons to their mobile devices once they’ve “checkedin.”

Jennifer Vlahavas, senior director of comScore, said retailers “have just begun to scratch the surface of using location data to better serve their customers. In-store shopping maps and customized shopping lists are a few of the emerging mobile technologies that promise to shape consumers’ future behavior.”

The study found that men are more likely than women to share their location with a retailer (40% vs. 25%, respectively), and 46% of those between the ages of 18 and 34 said they have shared their location, compared to just 22% of those ages 35 to 54. HTT

Digital Sales Increasingly Important For HSN N EW YORK — More than one-

third of HSN’s transactions now take place through the web or mobile devices and the retailer is doing a digital redesign to drive sales higher.

“Our goal is to engage the customer across as many screens as possible,” ceo Mindy Grossman told analysts at the Piper Jaffary Consumer Conference here last week.

Mobile shopping is also increasingly important for the company as well. During the first quarter, the sales volume coming from mcommerce equalled 50% of that generated by mobile devices for all of last year, she said.

“Our goal is to engage the customer across as many screens as possible.”

— MINDY GROSSMAN, HSN

For the company’s Ballard Design brand, Grossman added, Pinterest is now the top driver of traffic to the nameplate’s ecommerce site. “They were an early adapter” to Pinterest, she noted.

HTT

6/6/2012 11:27:31 AM

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5/24/2012 9:32:44 AM

22

Home Textiles Today

June 11, 2012

Calendar June

20 – 26

July

24 – 26

11-13

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

10 - 12

Texworld USA Jacob K. Javits Center, New York (770) 984-8016 ext. 401 www.texworldusa.com

NeoCon World’s Trade Fair The Merchandise Mart, Chicago (800) 677-6278 www.merchandisemart.com/neocon

12 – 14

22 – 25

Licensing International Expo Mandalay Bay Convention Center, Las Vegas (212) 951-6612 www.licensingexpo.com

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

20-26

27 – 30 & July 4 – 7

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

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

Global Sources China Sourcing Fair Miami Beach Convention Center, Miami tradeshow.globalsources.com

11 – 18 The Atlanta International Gift & Home Furnishings Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

12-15 The Atlanta International Area Rug Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

ASD/AMD Las Vegas Las Vegas Convention Center, Las Vegas, (310) 481-7300 www.asdamd.com

17-23 24 – 26 Home Textiles Sourcing Jacob K. Javits Center, New York 770 984 8016 www.HomeTextilesSourcing.com

30 – August 3 Las Vegas Market World Market Center and Pavilions, Las Vegas (702) 599-9621 www.lasvegasmarket.com

August 12-15

New York Home Textiles Market Week Jacob K. Javits Convention Center, New York Aug. 19-22 At 7W Aug. 17-23 At 230 Fifth Ave. Aug. 18-23 (800) 272-7469 www.nyhometextilesmarketweek.com

18 – 22 New York International Gift Fair Jacob K. Javits Convention Center, Pier 94, New York, (914) 421-3200 www.nyigf.com

CLASSIFIEDS HELP WANTED Executive Sales Assistant Home Textile Importer based out of New Jersey seeks a results-oriented, organized executive sales assistant with 3+ years administrative experience to support sales team.

Proactive, multi-tasking and strong Excel skills a must.

Send CV to: hometextileshr@gmail.com

Leading Home Textile supplier, located in New York seeks Fashion Bedding designer. Must have minimum of 5 years experience and be proficient in embroidery and jacquard design.

Must have full understanding of Illustrator and Photoshop.

Both domestic and international travel is required.

Send resumes Attn: BB159 to classifieds@sandowmedia.com

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REPS WANTED One of the biggest home textiles manufacturers in India is looking for result oriented Sales Reps specifically targeting retailers like Macy’s and Lowes, BBB , JCP for ready-made Curtains and Dec pillows business Reply : Attn: BB169 to: classifieds@sandowmedia.com Established Commission Based Sales Reps Wanted For major importer of Home Textiles including blankets, throws, beach, kitchen etc. We stock large volume inventories.

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6/8/2012 2:15:47 PM

News 360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com www.facebook.com/httmag EDITOR-IN-CHIEF Jennifer Marks 10 Ocean Blvd #8B Atlantic Highlands, N.J. 07716 (732) 204-2012 | jnegley@hometextilestoday.com PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | wshoulberg@hometextilestoday.com SENIOR EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | cbcorral@aol.com MANAGING EDITOR Julie Murphy (646) 805-0224 | jmurphy@hometextilestoday.com CONTRIBUTING GRAPHIC ARTIST Desiree Nunez (646) 805-0233 | dnunez@giftsanddec.com DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | dfrench@sandowmedia.com ASSOCIATE PUBLISHER, ACCOUNT MANAGER CHINA Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER NORTHEAST/MIDWEST/ WEST COAST/CANADA Mary McLoughlin (646) 805-0227 | mmcloughlin@hometextilestoday.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 swhittle@sandowmedia.com Karen Hancock (336) 605-1047 khancock@sandowmedia.com MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | Kaushal@kaushals.com ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com DIRECTOR, WEB OPERATIONS Chris Schultz | (336) 605-1076 | cschultz@sandowmedia.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | dsage@sandowmedia.com E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | maxe@sandowmedia.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | aternes@sandowmedia.com PRESIDENT, FURNITURE TODAY GROUP Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com FOUNDING EDITOR-IN-CHIEF Carole Sloan 1979-2011

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htt120601_001_014_015_022 23

Home Textiles Today

June 11, 2012

23

Duckwall-Alco Revved By Strong Q1 as it Readies Ecommerce Launch A BILENE , K ANSAS — A first quarter with positive sales and comps plus a narrower net loss are helping Duckwall-Alco set the pace as the regional discounter plans to launch its new ecommerce business and expand its store presence into new markets.

Set to launch at the end of this month, the company’s expanded ecommerce initiative will include more than 13,000 new products, according to Richard Wilson, president and ceo.

“The team in e-commerce, headed up by Brent Streit, vp marketing and ecommerce, represents an outstanding

example of the dedication and strategic execution the entire management team at Alco is committed to providing Alco’s customers and shareholders,” he said during last week’s quarterly call with analysts.

For the first quarter, ended April 29, net loss came in at $1.3 million, or 34 cents per share, an improvement from a loss of $1.5 million, or 40 cents per share, for the first quarter of fiscal 2012.

Net sales increased 3.6% to $117.2 million, and same-store sales, excluding fuel center sales, increased 1.7%

to $113.0 million.

The company is pursuing four key initiatives to improve sales and profitability: • Improving gross margin through regional pricing strategies; • Closing unprofitable locations while modestly growing the chain’s store base; • Reducing debt by elminating unproductive inventory; Growing top line sales through better marketing, value and customer service.

Duckwall-Alco currently operates 216 units in 23 states. HTT

A&B Wiper Supply and Nation/Ruskin Merge PHILADELPHIA — A&B Wiper Supply, supplier of terry towels for the discount retail and institutional channels, has merged with Nation/Ruskin, which manufactures and distributes paint sundries and houseware cleaning products under the EZ One brand as well as retail private label brands.

Nation/Ruskin is a new entity formed

by the consolidation of Nation Accessories Inc and Ruskin Sponge Co. “The merger is mutually beneficial.

Nation/Ruskin’s customers will benefit from A&B Wiper Supply’s global sourcing and buying power,” said Hal Kanefsky, ceo of A&B Wiper Supply.

“Nation/Ruskin’s reputation for high standards in all aspects of customer

service is a natural fit.” Nation/Ruskin will operate as a separate entity under its existing management team, headed by its president Ray Adolf.

A&B Wiper Supply was founded in 1947. In addition to terry towels, it supplies a range of microfiber products as well as professional wiping cloths.

JCP Tweaks

al roles, has been promoted to senior vp, merchandising planning and allocation. Prior to JCP, he worked for Kaufmann’s department stores, starting in its merchandise training program and becoming a buyer.

Vaneet Grover has been appointed senior vp, procurement. He was previously senior vp, supply chain, for Tandy Brands. Before that, he held strategic sourcing and supply chain roles at Abercrombie & Fitch, Gap, Agilent Technologies and Boeing.

Both report to chief operating officer Mike Kramer.

Bob Peterson has been appointed to senior vp, operational strategy, and will be responsible for identifying and evaluating key business opportunities and strategic alliances. Peterson previously spent 20 years at Piper Jaffray in several positions, most recently leading the global equities business. Prior to that, he was the head of the Private Client Services business, where he helped to transition the business to a wealth management model and sell off the division to UBS. He reports jointly to coo Kramer and cfo Ken Hannah.

In addition, Eric Cerny has joined the retailer as vp, investor relations.

Most recently, he oversaw investor relations at Abercrombie & Fitch.

Also last week, Johnson told ana-

lysts and investors that JCPenney expects a year of sales declines as it anniversaries last year’s highly promotional selling calendar, then should experience rising year-over-year sales. The company continues to believe sales performance will improve later in the year, he added.

Rather than test the current streamlined pricing in one part of the country before adopting it across the company, “we decided we have to go through one year of transformation and we will get to the other side,” said Johnson.

Rolling out the everyday pricing strategy in one fell swoop also allowed the company to immediately cut expenses, particularly ad spend and personnel, he said.

“It does take time for people to understand a pricing change,” he said.

“It’s taking longer than I anticipated.”

In discussing the experiences that led him to forge the current policy, Johnson offered a story about his time in the home department at Target, where he spent five of his 11 years at the retailer. In 1995, 40% of the merchandise in Target’s home assortment sold through at a sale price, he said.

By 2000, 97% of Target’s home merchandise went out the door at full price. HTT

JCP FROM PAGE 1

spective.”

Michael Graves has already developed 190 skus and Martha Stewart has knocked out around 3,000 for the new JCPenney shop-in-shops that will launch in the redesigned home department next spring.

Along with Stewart and Graves, other brands that have been announced so far for the home include Jonathan Adler, Sir Terrance Conran and Bodum as well as Royal Velvet, which is already in stores as a brand exclusive to JCP. The brands will be offered “in an all-new presentation that’s really going to be loved by customers,” said Johnson.

JCPenney will begin rolling out its first shop-in-shops this fall, mainly in apparel. Widely known brands like Levi and Martha Stewart will likely go into all 1,100 stores, while more niche brands such as Michael Graves may only land in the company’s 700 metro area stores, he said.

Late last week, the retailer announced another round of executive appointments in operations, planning and procurement.

Thorsten Weber, who has been with the company since 2002 in sever-

HTT

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