Monday, April 18, 2011
THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY
Bath Industry Dips Due to Costly Cotton BY CECILE B. CORRAL NEW YORK — 2010 will not easily be forgotten in the minds of bath suppliers. And 2011 is shaping up to also be just as unforgettable. Thank cotton and raw material price increases for the memories. This much-talked about dilemma is quickly becoming a tired one, but it’s not ready to go away. Suppliers surveyed by HTT for the annual Bath Facts report largely agreed that 2010 got off to a decent start, especially compared to 2009’s onset. But by the fall, business really began to waffle in the face of higher raw ma-
terial prices, offsetting the earlier gains with dwindling business. The result — a 2.7% dip in total industry sales to $3.385 billion from 2009’s $3.480 billion. The past year has been “extremely challenging for the home textile business,” noted PK Markanday, business head for the home textiles division of The Trident Group, which operates its U.S. offices in New York but is headquartered in India. He estimates that for highcotton textiles products like towels and sheeting, “raw material cost forms more than 60% of the product cost. The impact of raw cotton and cotton yarn price has been immense.”
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Anna’s Linens Getting Ready to Hit 300 or exuberance for the company he founded in 1987 and named L AS VEGAS — Alan Gladstone will be after his mother, says there’s the first person to tell you that he is the more to come. “February was biggest cheerleader for his Anna’s Linthe most profitable month in ens retail operation. our history, and March is lookBut even he was in rare form at the ing very the same.” company’s recent annual summit for its In comments to the 350 management and suppliers here. company executives and store “I’ve never been more optimistic management and a similar about this company than I am now,” number of suppliers and venGladstone, founder and president of dors gathered for the annual the 270-store chain, told Home Texevent, Gladstone took center Alan Gladstone tiles Today in an exclusive interview durstage to celebrate the Anna’s ing the meeting. “We just finished the biggest story and then talked about the year just passed year in sales and profits in our history,” he said, and new initiatives for the coming 12 months as privately held Anna’s volume grew into the with HTT. high $300 million range and profits doubled “There’s no question that we took marversus a year ago. ket share last year. We opened 22 stores in Gladstone, who is never short of enthusiasm SEE ANNA’S PAGE 12 BY WARREN SHOULBERG
SEE FACTS PAGE 6
Chortex Encores Rhapsody Royale Collection for U.S. N EW YORK — Longtime Turk- States and Canada. ish towel manufacturer ChorThe company, which calls tex is shifting to a retailer-direct Europe its core market, has business model with the recent SEE CHORTEX PAGE 22 opening of the distribution facility in the Inside This Issue United States. TexStyle Files For Ch. 11........................page 2 Industry veteran Young Establishes Consulting Biz ........page 2 Eric Vergucht took on representation of Alkin Marks Return to Textiles Relm ...page 2 Chortex earlier this When China Price is Not so Nice ..........page 4 year to help expand The End of El NoNo? .............................page 4 the company’s retail Anna’s Hosts Vendors in Vegas ............page 13 reach in the United
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Wearbest Embracing New Markets NEW YORK — Wearbest Sil-Tex Mills has weathered the recession by pivoting to a new strategy and embracing new markets. “We have at the same time prudently cut and prudently invested,” said Irwin Gasner, president of the fourth-generation, family-owned fabric manufacturer. “The result has been explosive growth in placements in the past two years.” Wearbest still produces most of its goods at its plant in Garfield, N.J. The longtime manufacturer for the residential market has found growth in the health, hospitality, indoor/outdoor and casual furniture sectors. While the number of Wearbest employees does not match the pre-globalization tally, the company is now up to 90 employees. “We rebuilt back from the bottom,” said Gasner. SEE WEARBEST PAGE 22
Ari Gasner, left, and Irwin Gasner of Wearbest.
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Home Textiles Today
Retail Briefs Ross Raises 2Q Guidance
B
ased on above-plan March sales and favorable gross margin and expense trends over past two months, off-price chain Ross Stores raised its secondquarter guidance. The retailer is now projecting earnings per share for the 13 weeks ending April 30 to be somewhat above the high end of its initial guidance of $1.27 to $1.32. The company expects April comps in line with Ross’s prior forecast for a 4% to 5% increase.”
eBay to Acquire RueLaLa Parent
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Bay plans to acquired ecommerce and interactive services provider GSI Commerce for about $2.4 billion, financing the deal with cash and debt. GSI is parent to online private sale retailer RueLaLa. com as well as ShopRunner.com, a members-only shopping service that offers free two-day shipping and free shipping on returns for a $79 annual subscription. “We intend to lead the next generation of commerce innovation,” said John Donahoe, eBay president and ceo, who added GSI would “significantly strengthen our ability to connect buyers and sellers worldwide.”
Kohl’s Adds Ecommerce DC
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ohl’s has acquired a distribution center in Edgewood, Md., to support ecommerce in the east. Expected to open in July, the 602,000-square-foot facility will be expanded to 1 million square feet by next year. The retailer’s ecommerce sales grew more than 50% last year, and Kohl’s expects online revenue to hit $1 billion this year.
Overstock Cuts Ties in Arkansas
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verstock.com ditched its Arkansas ad contracts after the state’s governor signed a law requiring online retailers to collect sales taxes from affiliate web sites with which it they do business in the state. The company cancelled ad contracts in Rhode Island, New York, North Carolina, and Illinois after those states passed similar laws. Overstock is also pursuing the matter in court.
Walmart to Stock Fabric Again
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almart U.S. said it will broaden its assortment by some 8,500 skus, reintroducing some items it had cut during an earlier bout of editing — including fabrics. In 2009, Walmart began eliminating fabric departments in many stores as part of its upscaling remodel to lure higher-income shoppers out of food and commodities into its general merchandise departments. Restored products — many of them regional food favorites — will carry “It’s Back” flags. Walmart also will step up its price match policy and launched a national TV advertising campaign to support it.
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News
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TexStyle Files For Ch. 11 BY JENNIFER MARKS N EW YORK — Multi-category home textiles supplier TexStyle filed for Chapter 11 bankruptcy protection last week. The company expects to emerge this summer. “TexStyle remains fully operational and will continue to fully service its customers. The company expects court approval of a financing package from Wells Fargo Business Credit to finance its continued operations,” said Guyer McCracken, chief operating officer and cfo.
In September 2010, thenowner Babine Lake Corporation sold the company to Bolan Textile (HK) Limited of China, which made a $500,000 equity infusion into TexStyle and a $1 million secured loan to the supplier. That was followed by an additional $80,000 loan from Bolan in December. McCracken told HTT Bolan plans to increase its investment in the company during the restructuring. No changes in ownership or management are planned, he added. No layoffs are planned because of the fil-
ing, he said. According to the filing in the Bankruptcy Court of the Southern District of New York, TexStyle has 19 employees. Court papers show the company with roughly $7.6 million in assets and about $13.8 million in liabilities. Last year, TexStyle recorded losses of more than $4 million on sales of $16 million, according to the filing. That compares to 2009, when the company generated sales of $26 million and losses of $2 million, court papers state. HTT
Alkin Marks Return to Textiles Relm I RVINE , C ALIF . — 100% Pure co-founder Jonathan Alkin, who sold the business and left the industry a few years ago, reappeared last month during the New York Home Fashions Market with a flexible new business concept that provides U.S.-based cut and sew services along with design consulting. Although Alkin and thenbusiness partner Trevor Rabkin sold 100% Pure to GTT International in 2007, Alkin hung on to the West Coast cut and sew facility. “Never got rid of it. Reduced it tremendously, obviously,” said Alkin, whose new business
is iJon LLC. However, “China price not being ‘China price’ anymore,” Alkin has seen an opportunity to leverage the facility, which just took in its first order from a high-end organic bedding company. “I’m not trying to compete with China or India – period. That’s an impossibility,” said Alkin. For moderate to better goods, the facility offers fast sample turn-arounds for bedding, windows and pillows on the proposition that U.S. suppliers can work with iJon’s facility to nail down design specs before sending samples off to factories abroad for
production. The company can also warehouse fabrics. “We’re not going to have labor inflation over here,” he said. “On better-end goods, I don’t think the labor costs are as significant.” As Alkin made the rounds during New York’s market last month, he said he also received inquiries about offering design consulting. “I was very pleased that people were saying, ‘Great idea – and why aren’t you wearing the design hat?’” As to his return after a hiatus, he said: “It was very refreshing coming back in.” HTT
Bud Young Establishes Consulting Biz HIGH POINT, N.C. — Bud Young, a marketing executive in the home furnishings industry with more than 40 years of experience, recently announced the launch of CR Young Consulting, a consulting firm for home furnishings manufacturers. Young’s business will address all aspects of home furnishings manufacturing, including exports, financing, marketing and product development, according to a press release. Young recently stepped down from his longtime post as vp of marketing for rug maker Capel. “My goal in creating CR Young Consulting is to bring a new approach to servicing the home furnishings industry,” Young said. “I am excited for this opportunity to share what I’ve learned throughout my career
and to offer clients the services of people I’ve enjoyed working with, who are each experts in their fields.” A number of leaders in the home furnishings industry will contribute to the services CR Young Consulting will offer. Bruce Hric, former president and ceo of Capel Rugs and current managing director with Essex Capital Group, has developed a partnership with CR Young to advise clients with capital needs. “I have enjoyed a great relationship with Bud over 11 years, and I look forward to working in partnership with him to help companies in the home furnishings industry finance their operations going forward,” Hric said. Norm Sweeters, president of Sweeters Consulting, will offer his services to clients interested
in sourcing floor coverings and related textiles out of India and Nepal. “I’ve known Bud for many years, and he has more marketing and exports savvy than anyone I know,” Sweeters said. “I am excited to be networking with such a notable member of the home furnishings industry.” One of CR Young’s early goals is to offer clients the opportunity to tap into fabric sourcing opportunities in India other than area rugs. Sarah Stroh Thornton, a principal in Trade Data Reports, will be acting as a textile design coordinator for CR Young clients who source out of India. She will work with designers from CR Young clients on the operational realities of design implementation in India. HTT
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Home Textiles Today
April 18, 2011
> hometextilestoday.com
OPINIONTodaY When China Price is Not so Nice “With freight prices up everywhere and labor prices rising in China, I’m hearing more people talking about selective, niche domestic production.”
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H E SO - C A L L E D “CH I N A PR ICE ” isn’t in this issue, 100% Pure co-founder Jonathan Alkin what it used to be. And one of the topics talks about finding opportunities for a domestic cutthat’s bubbling up in recent months is the and-sew facility that was largely shuttered several years idea there is some opportunity for ago as the industry thundered across the water a bit more U.S. production. for cheap imports. Not — by any means — a return to the On this issue’s People page, HTT reports on glory days of big mills and large cut & sew industry veteran Rick Rogers being tapped to EDITOR-IN-CHIEF head sales for Industrias Texil, a fabric weavfacilities. Not anywhere close to it. But with freight prices up everywhere ing and finishing facility in Mexico that is ofand labor prices rising in China (and likely fering itself as an alternative to Asian sources. to continue as the middle class grows and Indian powerhouse Welspun’s bedding plant workers seek out more lucurative industries in Mexico gives it not only proximity to marthan textiles for their labor), I’m hearing ket (with some duty advantages), it has bemore people talking about selective, niche come a platform for opening up business in domestic production. Or something nearLatin America. by, like Mexico. We also heard indications during the recent In this issue, we have a story about fabric Wearbest New York Home Fashions Market that a Made in the Sil-Tex Mills finding a path out of the darkness to re- U.S.A label has some cachet with consumers. build some of its domestic manufacturing base. Also 1888 Mills — the last domestic towel manufacturer
Jennifer Marks
standing — put an emphasis on its Made in the U.S.A products during market — although U.S.-made goods account for only 10% of the company’s total production. Still, company executives said the strategy is generating interest. Newport/Layton Home Fashions also came to market with a Made in the U.S.A story to tell. Although 80% of its dec pillow cut and sew moved overseas several years ago, Newport moved a chunk of that production back— and have received an encouraging response from consumers (in the form of letters and emails) who like seeing the U.S. label on items they’ve bought. The company is now producing 60% of its dec pillows domestically. One shouldn’t over-estimate the importance of a domestic label — especially in such a soft economy. Right product/right price remains the winning formula in the market and always will. But it makes you think. HTT
The End of El NoNo? “If you ever thought a home textiles product price was too high, all you had to do was wait a minute and a new, lower one would be coming right along.”
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OU K NOW A L L A BOU T El Niño and La Asian imports looming ever larger, product de-specing Niña and all the other weather patterns out running amok at a frightening pace and the basic laws of there that seem to wreck havoc with the cli- supply and demand coming into play, prices have largemate. ly gone down, not up. Well, perhaps you are less familiar with If you ever thought a home textiles product another climatic occurrence we’ve seen price was too high, all you had to do was wait Warren a minute and a new, lower one would be coman awful lot of over the past few years: El NoNo. Shoulberg ing right along. Never heard of it? Sure you have. In The length and depth of all of this has proPUBLISHER/ fact, depending on your place on the prod- EDITORIAL DIRECTOR duced an entire generation of retail buyers and uct food chain of the home business, you’ve merchandising staffs that has never been apbeen a prime cause of it or a suffering vicproached with higher prices, much less had to tim … maybe even both. implement them. This generation is affectionJust like El Niño and El Niña, the El ately known as Generation No. NoNo weather pattern has been defined by Generation No operating in a climate domione prevailing wind characteristic: When a nated by El NoNo produced a decade-long perprice increase is discussed, it is blown away fect storm of resistance to the very idea of in— quickly and decisively. creased prices. And to be fair, this is not unique But unlike its namesake climatologic partners, El to the home textiles industry: Most consumer products NoNo has not lasted a scant year or two and then moved cost less than they did ten years ago. on to some other weather zone. It has been lumbering But the winds are clearly shifting. The sheets have over the home business for the better part of a decade. hit the fan and the climate patterns are changing. OK, Probably longer. enough metaphors: All of this textiles stuff is going to It’s been at least that long since the industry has had cost more. any real discussions about raising prices. In fact, with At the most recent market in New York, there were
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real legitimate discussions about price increases. Not about if, but about how much. So, what’s the forecast for the coming business climate? (Yes, back to the weather wordplay.) Frankly, predicting how this all turns out is likely to be about as accurate as the guy on the TV weather report. There are just too many variables and not enough historical data to make totally believable statements. That’s a big part of the problem. Neither the retailer nor the consumer has had to deal with any of this for so very long that they are simply not prepared. Back in the days when there were annual price increases, you could just go back and say, well, this is how we did it last time, we’ll just do the same thing this time. For sure, everyone will be watching the leaders to see how they handle things. Walmart, despite its recent merchandising meanderings, remains the poster child for pricing and it sets the floor in the marketplace. Further up the ladder, Kohl’s and Macy’s are the ones to watch. As they get their pricing patterns established, the others will fall into place and it’s going to be fascinating to see how all those patterns play out. Which of course practically begs the question: Do you need to be a weatherman to know which way the pricing winds blow? HTT
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April 18, 2011
Bath Facts [price] increases. Retailers raised in some cases bath rug retails where they might not have before to offset towel increases. They basically began elevating retails across the [bath] department to spread out the price increases, which are all related to cotton.” On the terry side, New Yorkbased Welspun USA had a good year, said director of towel sales Jerry McCarthy, because “what we tried to do was, because of what was going on with price of cotton, we tried to react so that the retailers could give the consumers good value.” More specifically, the company reengineered some of its towels to lighter-weight, quicker-drying constructions, he explained, “so that the consumer still felt a great hand, saw a great color, and saw great attributes while we still hit key volume price points. Just because cotton goes from $1 to $2 doesn’t mean the consumer is willing to pay twice as much for a towel or sheets or anything else. And in tough economic times they don’t have the wherewithal to spend the extra money.” Welspun USA’s highlight in 2010, and into this year, has been its highly-absorbent QuickDry towel line.
FACTS FROM PAGE 1
Still, Markandy cited a silver lining to the rising cotton prices: course correction. “While the last year saw a major increase in cotton price, an upward correction was due for the last many years,” he said. “For the last many years, the price of cotton and cotton-based products had been witnessing a falling price trend while most other commodities had been experiencing an increasing price trend. The correction in cotton price was inevitable, but the extent of price increase has stunned everybody. The industry was obviously not prepared for such a sudden change.” Sugar Valley, Ga.-based Mohawk Home, for example, said its bath rug business “started out very good” in 2010 and remained so through August, said Bart Hill, general manager of bath and area rugs. Mohawk Home was “trending way ahead” over the first eight months of last year, seeing 4% to 5% sales increases. “But as cotton went up it affected the overall industry because the overall open-to-buy dollars became more limited,” he continued. “Plus, we saw some retail movement to offset towel
Distribution Channels
($millions)
2010 total retail sales: $3.385 billion down 2.7% from 2009 2010
2009
% CHANGE
Discount department stores $1,953.1
$2,008.0
-2.7%
Home textiles specialty chains $477.3
$497.6
-4.1%
Mid-price chains
$551.8
$563.8
-2.1%
Off-price chains
$155.7
$156.6
-0.6%
Warehouse clubs
$67.7
$69.6
-2.7%
Department stores
$44.0
$45.2
-2.7%
Home improvement centers
$16.9
$17.4
-2.7%
Single-unit home specialty stores $20.3
$20.9
-2.7%
$98.2
$100.9
-2.7%
$3,385.0
$3,480.0
-2.7%
Other Total
*Other channels include direct-to-consumer and other channels such as PXs, grocery stores, and the like.
Merchandise mix
($millions) 2010
Bath towels Bath/scatter rugs
2009
% CHANGE
$1,706.0
$1,750.4
-2.5%
$853.0
$880.4
-3.1%
Shower curtains
$467.1
$480.2
-2.7%
Bath accessories
$328.3
$337.6
-2.7%
$30.5
$31.3
-2.7%
Tank sets
Facts
“It’s been phenomenal,” McCarthy added. New York-based Loftex USA, too, experienced a good first half of 2010 for towels, “and for most retailers the good retail climate extended through the year with sales gains,” said Gretchen Dale, coo. “Behind the scenes, unknown to the retail customers, manufacturers and retailers were struggling with skyrocketing cotton increases. This cotton situation really was not reflected on the retail floor in a major way until early 2011, when retails started to climb.” Des Plaines, Ill.-based Revere Mills International Group enjoyed “a slightly better year in 2010 than 2009,” said Elaine Aschenbrand, director of marketing and product development. “We do business with so many people that I think our diversity was what helped us last year,” she explained. “We work with all levels of retail and had programs in place across the board, and I think that is what helped us last year.” When cotton began its incline late last year, Revere really focused on the issue during talks with retail accounts during the September 2010 New York Home Fashion Market. But at the recent market in March, the company put the topic to rest “because we felt people already knew about it. Instead, we focused on our new products and that kept our meetings very upbeat. Retailers were receptive to our introductions.” Revere this year is planning for another slight increase, Aschenbrand said. “We are being very conservative. We hope in next six to nine months [price increases] will stabilize so our customers can plan better going forward.” By early fall 2010, despecing became the name of the game as the cotton pricing situation worsened and raw material costs also started going up. Keith Sorgeloos, president and ceo of Atlanta-based Home Source International, said what he has seen emerging since last summer was despecing and price increases. “The price issue really became an issue that was literally beyond our control going into the second half of 2010, so much so that there has to be some movement in despecing or price increases or both. It got to the point where suppliers could no longer deal with the escalating cotton with-
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out passing it along to retailers.” He continued: “For the most part, suppliers despeced their product, and they hung in for the first half of this year. A lot of despecing took place in the second half of 2010, and now we’ll see the effects of that in the first half of this year. Despecing accommodates the price increases, but technically the customer is paying the same price for a lesser product, which in the end is essentially a cost increase.” The problem was that the formula for despecing and price increases wasn’t adding up, he said. “The maximum [suppliers] were despecing was 20% — the norm being between 15% and 30%. But with price increases at 30% to 35%, [retailers] had to finally accept price increases, and that’s what they are doing now,” Sorgeloos explained. “At the end, it’s the customer who is going to suffer,” warned Bob Weiss, president of Central Islip, N.Y.-based Creative Bath Products, a domestic manufacturer and importer of bath coordinates. “And that’s because, with all the despecing, the consumer gets an inferior product at an expensive price. It’s a shame. But there is just no other way around it.” He said Creative Bath’s towel prices, which regularly went for $7 to $8 wholesale, are now priced at $10 to $12 wholesale “for the same standard of product.” That’s not to say the company has not despeced some of these towels. “Maybe some of our new towels will feature fewer embellishments,” he said. “It’s basically quieter fashion but the same quality.” Added Joe Shafran, vp, Faze Three Ltd.: “You can’t despec product enough to make up for the price increase. You just wind up with nothing at end of the day, and the consumer will reject it.” Faze Three, which operates its U.S. offices in Columbus, Ind., is
“very careful that the despecing we do still offers the consumer something worth paying for,” Shafran noted. “Despecing is a tricky business when you are working with cotton that is double or triple the price it used to be. Retailers are facing the challenge of having to raise prices, but in reality it’s a challenge for everyone.” Among Faze Three’s efforts to cope with price increases is the development of its new Easlyon fiber system, a new yarn system the company created from polyester and infused with different looks and characteristics in terms of constructions and lusters. This manmade fiber line represents a relatively new business for Faze Three, for which cotton comprises 80% of its business. “So this is a smaller piece of our business, but we see it growing, so we created Easylon.” Scottsboro, Ala.-based Maples Rugs is seeing its own bath rug business grow at a faster pace lately than its accent and area rug segment. As this trend continues, the company has refocused its bath rugs to entirely 100% nylon, in response to its accounts’ preference for Maples Rugs’ opening price points products in the fiber. “Our strengths have been our opening price point, $9.99 nylon bath rugs,” said Wade Maples, coowner of his family-run, domestic manufacturing company. He is optimistic about his business this year despite a rough start. “In the last three months, raw materials have been going up like crazy, and that certainly has hurt us,” Maples said. “But 2011 looks like it is going to be pretty good for us. The first three months we were up double digits, and we think we will be up this year over last year by 5% to 10%. We have gotten some new placements, and a lot of the new placements are really doing well at retail. Plus, the economy seems to be getting stronger.” HTT
METHODOLOGY In determining product category sales figures, as well as determining retail sales for those categories by channel of distribution, the editors and research department of Home Textiles Today used data compiled from a variety of sources, including publicly filed financial reports, vendor sales information compiled by the editors, and information provided by retailers and home fashions suppliers. The research was compiled by Cecile B. Corral, product editor; and Dana French, director of market research.
Source: HTT Research
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April 18, 2011
NRF: Home Furnishings Category Helped in March WASHINGTON — Home furnishings and furniture are among the product categories that benefitted from March’s warm weather trends, spurring increases in retail sales for the ninth consecutive month. According to the National Retail Federation, March retail industry sales – which exclude automobiles, gas stations, and
restaurants – grew 0.6% seasonally adjusted from February and 3.9% unadjusted year-over-year. With respect to furniture and home furnishing stores, sales increased 3.6% seasonally adjusted month-to-month and 3.8% unadjusted year-over-year. “Shoppers last month were eager to t ake advant age of retailers’ spring promotions on
everything from apparel to outdoor furniture,” said Matthew Shay, NRF president and ceo. “While current indicators point to a more confident consumer, increasing gas prices and a cramped job market could hamper consumer spending during the upcoming summer months, a key time of year for retailers.” March retail sales released
last week by the U.S. Commerce Department showed total retail sales – which include the nongeneral merchandise categories NRF excludes from its figure – increased 0.4% seasonally adjusted over February and 7.3% unadjusted year-over-year. “Improving financial situations including the temporary payroll tax cut, wage gains and
a strengthening labor market likely supported March spending gains,” said Jack Kleinhenz, NRF chief economist. “If gasoline prices can stabilize over the next few months, consumer spending may continue to grow, but it remains to be seen what consumers will cut out of their budgets because of the cost of filling up their tank.” HTT
Survey: Cotton Merch Retails to Jump This Summer N EW YORK — Capital Business Credit’s recent survey of 70 consumer goods manufacturers and importers projects retail pricing on cotton merchandise will rise 10% to 15% this summer, especially in apparel and home. In addition to higher pricing on raw cotton, respondents took into account the impact of higher logistical costs when evaluating retail increases. Some 62% said their logistics costs were up more than 5% - and nearly two-thirds of that group said their were passing along at least a portion of the pain to retailers. “For manufacturers and importers the rise in oil prices (89.6%) as well as the conflicts in Egypt and Libya (62.5 %) is the driving force behind this increase,” said Capital Business Credit, a commercial finance company specializing in supply chain financing with a focus on the retail industry. HTT
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Pier 1 to Invest $200M for Growth F ORT WORTH , TEXAS — Pier 1
Imports said it will invest about $200 million over the next three years to speed up its ecommerce initiative, improve infrastructure and technology, remodel existing stores and open new ones. The board also authorized a share repurchase program of up to $100 million. Pier 1 president and ceo Alex Smith said the plan includes moving up the time table for ecommerce sales, and it is now expecting to be selling online in early summer 2012. The company “has made and will continue investments in search engine optimization as well as extensive improvements to the content of its website,” the Fort Worth, Texas-based retailer said in a release. It launched an in-store merchandise availability feature on Pier1.com in October and saw an increase in incremental visitors to its website, offi-
cials said. In late spring, it will launch a site-to-store initiative called Pier1.2Go, allowing customers to order and reserve goods online and then pick them up and pay for them in stores. Then it will move to full e-commerce capability in 2011. The retailer said 90% of its existing stores will be affected by store improvement initiatives over the next three years, noting among other things that it has developed new merchandise fixtures designed to give stores a more open look and provide mobility and flexibility for merchandise resets and seasonal changes. The company will roll out the fixtures to select stores, at first concentrating on its highervolume stores. In addition, store remodels will range from minor cosmetic improvements in most cases to major overhauls including new flooring, lighting and fixtures.
Pier one also said it expects to add a net 54 stores over the next five years after some store closings, growing to about 1,100 stores in new and existing markets in the United States and Canada. Technology investments over the next three years will include a new point-of-sale system and investments in the ecommerce platform, as well as replacing older software systems and enhancing existing ones in areas including labor scheduling, merchandise planning, warehouse management and store analytics. The three-year investment will be funded by the retailer’s cash flow from operations, the company said. And the plan “will allow us to continue to build strength and sustainability into our business, improve top and bottom line results and with an overall goal of increasing shareholder returns,” Smith said. HTT
Tuesday Morning Revises Guidance Based on Favorable 3Q Results D A L L A S — Off-price chain
Tuesday Morning Corp. eked out modest sales and comp increases during its third quarter, the company reported last week. Sales for the period, ended March 31, rose 1.3% to $174.3 million. Comps inched up 0.7%, which was comprised of a 3.2% decrease in traffic and a 3.9% increase in ticket. Year to date, sales slipped almost 0.2% to $626.4 million, and comp decreased 0.1%. “We achieved an increase in total sales and comparable store
sales for the quarter in spite of severe weather that affected many of our stores during and around key marketing events early in the quarter,” said Kathleen Mason, president and ceo. “During a period of continued housing declines, as well as substantial inflation, we were able to improve earnings during the quarter, year over year.” Based on the third-quarter sales results, the 839-store retailer said it currently expects to have improved earnings of 1 cent to 3 cents per share for the three-month period ended
March 31, and the loss per share for the quarter to be in the range of 7 cents to 9 cents versus a loss of 10 cents last year. “While we remain positive about our business,” the company said, it is revising our guidance for the full fiscal year ending June 30. Net sales are expected to be in the range of $830 million to $836 million; comparable store sales are expected to be flat; and diluted earnings per share are expected to be in the range of 30 cents to 34 cents compared to25 cents in the prior fiscal year. HTT
Pacific Coast Affirm Pillow Proclaimed a Winner by Good Housekeeping SEATTLE — Good Housekeeping
named Pacific Coast Feather Company’s Affirm all-down pillow the Best Down Pillow in its March issue after testing a variety of pillows. “We’re pleased to be selected again this year by Good House-
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keeping,” stated Danielle Ebert, vp of marketing for PCFC. Affirm’s patented design features three horizontal internal down-filled chambers wrapped in a down-filled outer pillow for firmer support and better comfort. It’s filled with PCFC’s
exclusive Hyperclean down at 600 fill power with a the company’s 500-count, Egyptian Cotton Barrier Weave Fabric. The pillow is machine washable and carries the manufacturer’s allergy-free warranty and 30 Night Comfort Guarantee. HTT
> hometextilestoday.com
Ellery Opens New Showroom
Ellery Homestyles celebrated the opening of its new showroom at 295 Fifth Avenue last month. Budd Goldman, ceo, cut the ribbon flanked by Bruce Garfinkel and Angela Boswell, both of Ellery.
Triangle Home Moves into New HQ DAYTON, N.J. — Multi-category manufacturer Triangle Home Fashions has moved into its new corporate office and warehouse ceremony after relocating from Cranbury, N.J. “This is an exciting time for us,” stated Jenny Zhu, president and chief design officer for the company, which produces bedding, window and shower curtains, decorative pillows and
table linens. The new facility is 10 times larger than the old one to support Triangle’s growth plans. “We participate with directto-consumer programs with many of the top retailers as well as private label and replenishment programs to support the brick and mortar accounts,” said Dennis Marton, executive vp. HTT
Kohl’s Strikes Marketing Deal with Chase M E N O M E N E E FA L L S , W I S . —
Kohl’s has formed a multi-year marketing partnership with Chase Card Services that will reward Chase cardholders with special retail promotions.
All cardmembers enrolled in Chase’s Ultimate Rewards can receive enhanced gift card promotions and expanded bonus point programs for certain Kohl’s purchases. HTT
4/14/2011 11:50:34 AM
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Home Textiles Today
April 18, 2011
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NYIGF DwellStudio Fabrics for Home Debut at Calico Corners Interior home of hip designs, fresh colors and a chic lifestyle and still break ico merchandise manager Lori Accepting design firm DwellStudio has a livable modern look,” accord- rules of design, she added. Cropp. “The fabrics are modern expanded its decorative fabrics ing to the company. She described Calico’s store enough for contemporary living Noms for collection for Robert Allen @ “The most stylish people associates as “design enablers, and can act as a sophisticated Home into retail at Calico Cor- these days understand a fun- not style dictators. They help accent in transitional and even damental aspect of good liv- customers discover their own traditional interiors.” Retailer nersThestores. fabrics – 44 prints and ing—it’s always evolving,” style and follow their instincts In addition to Calico’s more – are designed by Dwell- said Lemieux, who recently to achieve a personal look.” than 90 stores, The DwellStuAward wovens Studio founder Christiane authored a new book, “Undec“We like the DwellStudio dio for Robert Allen @ Home N E W YO R K —
W H I T E P L A I N S , N.Y. — The
nominating process has opened for the Ret ailer Excellence Awards sponsored by the New York International Gift Fair. Nominations will be accepted through April 22 at www.nyigf. com. Winners will be announced during the gift fair on Aug. 14 at The Lighthouse at Chelsea Piers. The ceremony will run from 6:30 p.m to 10 p.m. Presented by HTT sister publication Gifts & Decorative Accessories magazine, the awards will honor achievement in four categories: Gift Store Design/ Redesign; Marketing; Visual Merchandising/Display; and Store Events. The evening will also honor a Rep of the Year and an Industry Rising Star. Gift For Life, the home industry’s charitable organization, will also bestow its annual Industry Achievement Award. The NYIGF will take place from Aug. 13-18. HTT
Lemieux and the studio’s design team and “reflect their aesthetic
orate.” Home decorators can have
aesthetic because it’s a little edgy but still accessible,” said Cal-
designer collection is online at www.calicocorners.com. HTT
Surtex Touts International Line-up WHITE P LAINS , N.Y. — Surtex
2011, the surface design show celebrating its 25th anniversary, will feature artists from nearly a dozen countries when it takes place in May 14-17 at the Jacob Javits Center in New York. “Some 30% of the 300 exhibitors we expect will be from outside the US,” said Penny Sikalis, vp of show organizer GLM and manager of the show. In addition to U.S. artists, exhibitors at the show also represent design studios and licensing agents from the United Kingdom, France, Canada, The Netherlands, Japan, Spain, India, Martinique, Italy, El Salvador, and South Korea. For more information, contact Sikalis at (914) 421-3297, penny_sikalis@glmshows.com, or visit www.SURTEX.com. HTT
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Global Shop Show Highlights Latest Design Techniques BY MARILYN NASON LAS VEGAS — As bare bulb light-
ing in retail displays gives way to the high-tech LED bulb, this year’s annual Global Shop Show in Las Vegas showcased the latest design techniques that also epitomize commitment to sustainability, energy-saving, reuse, recycling promises. Several exhibitors noted the significance of identifying how important flexibility has become in LED systems and display fixturing finishes for both modular and permanent display components. The new Madix Beam LED Canopy Light aims to create the brightest-possible, “truer” light to show customers the full depth of original colors in a display both on the sales floor and in window vignette visual presentations. Schneider Electric showed the latest innovations in recessed, track and linear LED fixtures in its Juno Lighting Group that promises reduced maintenance and energy savings by combining running cool capability with maximum illumination potential. It also promoted what it described as “one of the most comprehensive energy-saving, automated/webenabled control systems available in the visual merchandising industry today.” General LED Lighting introduced a new line of lamps that offers color temperatures, energy efficiency and long-life specifically for the retail market. These new retrofit LED lamps offer a
wider range of retail applications that pay for themselves in less than a year, according to the company. The new lamp line ranges from small MR 16, PAR 20 and PAR 30 to PAR 38 and T8 types, most ideal for track, recessed ceiling, retail display and pendant fixtures purposes. Also new from General LED Lighting is the RATL (remote adjustable track lighting system) that consists of a linear track, track head, handheld remote aiming device allowing the light source in the track head to be rotated on both pan and tilt axes via the remote aiming device. The RATL Standard track head contains a medium socket accommodating any type screwbased halogen or metal halide PAR lamps. The linear track provides 120V AC to the light bulb. RATL LED version contains track head with LED light engine featuring General LED Lighting patent-pending PoinGEN technology and advanced control features. Global Shop exhibitors also addressed other merchandising needs. For flexibility in changeable display signage and graphics, Avery Dennison’s Avery Graphics Division introduced a series of multi-purpose ink jet media film for use in revamping merchandise displays and locations to draw shoppers to a presentation. Called Ultra-Clear, the 2.0 mil polyester film can be reused for one year while still maintaining a good film finish, gloss level, adhesive performance and
flexibility. It is easily removable from any display fixture, the company said. conVerd and Finch Paper LLC introduced substrates for digital wide-format, screen and commercial applications requiring full-color quality with environmental recyclable, renewable features. Their Enviroboard is designed for all wide-format signage retailing needs. Made with FSC-certified fiber including 10% post-consumer waste fiber, Enviroboard is made from renewable resources and is 100% recyclable. It can be used for both indoor and outdoor applications. DuPont Graphics showed a LifeCycle-based solution with Tyvek media to create wide-format banners, display graphics and bags. Known for lightweight strength, durability, drapeability and printability, Tyvek is also recyclable and reusable. Wire Weld Inc. showed two new wire shelving systems. The custom-coated design lends itself to fine textiles. Also new was a flexible wire system. New from Southern Imperial Inc. was a line of gravity-feed hooks, whose unique design provides proper slope to allow soft goods merchandise to face forward naturally for optimal product present ation in limited space. The hooks also have special, lubricious coating to aid in proper merchandise placement. They are available in 8-inch, 10inch, and 12-inch lengths and use the company’s FastFlip label holders. HTT
> hometextilestoday.com
Karastan Unveils Online Video Series DALTON , G A . — Karastan’s latest marketing effort is its newlylaunched video series featuring lifestyle experts sharing their recipes, tips and ideas for “living beautifully.” The upscale rug house calls this video program “Perfect Pairings,” and the first webisode premiered in March with master sommelier Andrea Immer Robinson showing viewers how to throw an indoor tailgate party. At the heart of the effort for Karastan is providing “helpful information for our customers while drawing them to www. karastan.com to see all the wonderful products Karastan has to offer,” said Connie Berry, director of marketing. “The idea is to pair things in our lives that enhance each other. That could be a classic combination of a Karastan rug and carpet to bring Karastan quality throughout the house or it could be pairing dinner and dessert with the
perfect wine.” Karastan described Robinson as one of the country’s leading wine educators and one of only 16 women in the world who have been appointed Master Sommelier by the Court of Master Sommeliers. She has published several books about wine and hosts two television shows, “Pairings with Andrea” and “Simply Wine.” Berry said Karastan chose to pair with Robinson “because her down-to-earth and energetic approach to wine and food pairings is the perfect fit for the Karastan lifestyle—which is livable, beautiful and easy,” Berry said. Upcoming webisodes of “Perfect Pairings” will offer more recipes from Robinson as well as experts on home and design, entertaining and fitness. “Perfect Pairings” can be viewed on www.karastan.com by clicking Video Gallery, as well as on YouTube. HTT
Aerin Lauder Launching Lifestyle Brand NEW YORK — The youngest gen-
eration of the Lauder cosmetics dynasty is stepping into territory the parent company never has – licensing her name to create a luxury lifestyle brand. Aerin Lauder, granddaughter of The Estée Lauder Companies’ eponymous founder, has formed a company called Aerin LLC to steer the venture. The Aerin brand will launch first in the beauty industry, but
is expected to move into other lifestyle categories, including home. Prior to the announcement, Lauder was senior vp, creative director for the Estée Lauder brand. She has been with the company since 1992 in a variety of positions and will retain her seat on the board. She will serve as creative consultant as well as style and image director. HTT
McRostie Designs Inspired by Ancient Wovens WILMINGTON, N.C. — Designer Kate McRostie will debut her Ikat Floral collection at Surtex in New York and The Licensing Expo in Las Vegas. The hand-painted line takes its inspiration from an ancient ikat technique, using bold colors and florals. She will also debut the Treasure Cove, with features fanciful tropical fish in the colors of deep sea, coral, navy and turquoise, as well as Whister’s Garden, a vibrant take on songbirds and flowers. HTT
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Su Hilty Announces Plans to Retire From 7W N E W YO R K — As of June, Su Hilty will retire from her position as vp of marketing at showroom building 7 W 34th Street. Hilty’s career had spanned more than 40 years and included stints at Bloomingdale’s, Gucci and Liz Claiborne Accessories before she joined former showroom building 225 Fifth Avenue as vp of marketing. When the building was sold in 2004 to be turned into condos, Hilty was recruited by MMPI for the newly opening 7 W New York. “After a varied and reward-
ing career and finally achieving MMPI’s highest honor, the coveted Marty Award, last year, I felt the timing was right for the next step,” Hilty said. “This is never an easy decision, but while I may be resigning from 7 W, my love for and connection with the home and gift industry will continue.” Hilty will continue to be involved with the International Furnishings & Design Association, of which she is past president for the NY Chapter. She is also committed to
the Home Products Advisory board of FIT, The Fashion Group International, Gift for Life, the alumnae chapter of sorority Alpha Chi Omega and the Global Give Back Circle. A farewell reception is in the works, with details to be announced. Jessica Kreider will assume many of Hilty’s responsibilities. She will work closely with Nancy Michael, MMPI’s new senior marketing and strategy director for the gift and home decor industry. HTT
Abhishek Industries Changes Name to Trident L UDHIANA , I NDIA — Abhishek
Industries, whose products go into the market under the Trident brand name, is changing its corporate name to Trident Limited.
“This business decision regarding the change in the name of the company is a part of branding strategy of the Trident Group, and there is no change in con-
Home Textiles Today
April 18, 2011
stitution/control/management of the company,” said P.K. Markanday, joint managing director. The change becomes effective April 18. HTT
Comfort Revolution Fetes Launch
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Shaw Living Aligns with Artist Bob Timberlake DALTON , G A . — Shaw Living
has partnered with longtime artist and designer Bob Timberlake to create a new collection of area rugs. The launch took place during the High Point Furniture Market earlier this month. Shaw described this new collection as a representation of “a celebration of a slower pace, a sense of history and an appreciation of nature.” Fo r t h e p a s t f o u r - p l u s decades, Lexington, N.C.-based Timberlake has been known for his realistic painting style that draws its inspiration from “simplistic beauty found in everyday rural southern living,” Shaw said. The Bob Timberlake area rug collection will span machinewoven products made of Shaw’s own EverTouch-branded nylon, which is recyclable, and are available in six sizes that range from 1-foot-10-inch-by-2-foot-9inch to 9-foot-6-inch-by-12-foot10-inch. The suggested retail for
a 5-foot-5-inch-by- 7-foot-9-inch is $739. The style groups that make up the design portfolio are: • Forest Ferns, a bot anical look that features oversized fronds and foliage silhouetted and overlapping in a sophisticated color palette - dark green, dark brown, beige, and cranberry; • Hearthside, which is inspired by the natural beauty and texture of timeworn and weathered wood, available in dark brown and beige; • Herit age Heriz, which takes its cues from the slopes of Mount Sabalan and incorporates traditional geometric elements and a center medallion in a primitive style. It is available in navy, beige, and dark brown. The rugs are the latest addition to Timberlake’s licensed collection of home furnishings, which currently also includes furniture, lamps and decorative artwork. HTT
Kas Rugs to Open New DC this Summer S O M E R S E T , N. J. — Area and accent rug company Kas Rugs Inc. is gearing up for the opening this June of its new distribution facility in Calhoun, Georgia. The site will measure 110,000 square feet and will include space for expansion. “Kas has streamlined our diverse and exciting product line and has increased our inventories in high-turn qualities so we can meet the immediate sales
needs of our customers and meet their expectations,” said Brandon Culpepper, national sales manager. In other news, the company is also distributing its new fullcolor catalog and has launched a new and more functional website, www.kasrugs.com. Kas also created a Facebook page to educate and learn more from current and potential customers, the company said. HTT
Laura Ashley Honors Licensees Hollander and Revman FORT M ILL , S.C. — Laura Ash-
The Comfort Revolution team celebrated the new company’s official launch in its New York showroom at 230 Fifth Avenue during New York Home Fashions Market last month. From left, Dimitrio Corodemus, Michael Fux, Freda Elliott, Tommy Bruno and David Fuchs.
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ley Inc. presented performance awards in several categories to its top licensees during its annual licensing conference. Hollander Home Fashions received the award for Best Sales Performances for its Laura
Ashley assortment of utility bedding. Revman Internt aional, licensee for fashion bedding and bath, won the award for Best E-Commerce for growing the brands online distribution opportunities. HTT
4/14/2011 3:07:57 PM
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> hometextilestoday.com
And The Winners Are… L A S V E G A S — What would
an awards dinner be without awards? At its annual summit here recently, Anna’s Linens honored its vendors in a variety of categories at a dinner attended by more than 600 suppliers, store managers and company executives. Accompanied by Alan Gladstone’s State of Anna’s annual presentation,
tributes to industry members who had passed away and a fanciful video on Anna’s growth, the evening proved to be it the usual Anna’s Linens love fest. Among the vendors honored were: • New Vendor of the Year: Swissco • Decorative Vendor of the Year: Suntex Designs / Sun-Yin
USA • Bath Vendor of the Year: Saturday Knight Limited • Bedding Vendor of the Year: Universal Home Fashions • Window Vendor of the Year: CHF Industries • Business Partner of the Year: Transplace • Merchandise Partner of the Year: BCP Home HTT
2010 annual sales: High $300 millions Number of stores: 271 Stores opened in 2010: 22 Stores to be opened in 2011: 31 Average store size: 8,000 to 12,000 square feet States operating in: 19 Number of employees: 2,800 Number of Gladstones in management: 3 Source: Company reports
The Founding Family: From left, Alan Gladstone, Carie Gladstone Doll, Shawn Gladstone and Scott Gladstone.
Ramping Up to 300 Stores ANNA’S FROM PAGE
2010, but as we have for the past three years, it was all infilling in existing markets. “This year we are planning to open 31 stores, which will get us to 300,” he said. “And that will include at least three new markets,” although he declined to identify which ones they will be. The new units will follow the recent footprint of 8,000 to 12,000 square feet and will feature decorative bedding and windows as core categories. But there will be several merchandising initiatives this
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year, he said, including an expansion of what he calls the “things” side of the business. Those will include more decorative accessories and impulse items, but not basic housewares products like small electrics. “And they will follow the same value equation.” He estimated that these classifications will represent about 10% of floor space going forward. On the soft side, Anna’s will put a much bigger push on the kids licensed side of the business, something it used to do but had largely walked away from over the past few years. Disney character merchandise will be key part of that merchandise mix, he said.
Licensing will also come into play on the adult side. “We’re going to be going into an exclusive arrangement this fall” with a licensed program to be announced in late summer. Gladstone wasn’t ready to discuss details, but the implication was that it would be a program keyed to the Anna’s customer demographic. Anna’s will still adhere to its basic mix of 80% replenishment/20% opportunistic buy strategy, with an increasing amount of goods made exclusively for the store and a reliance on the store name as key label. “Anna’s is our brand, we just don’t think there is a significant brand out there we should be
focusing on,” said Gladstone. Several years ago, there was speculation about Anna’s going public, but Wall Street’s lack of enthusiasm for retail offerings in general and the company’s own financial position now mean that is not a certainty. “We don’t need to go public to finance the company,” Gladstone said. “We know if we run a great business, good things will happen.” Until that time, Anna’s will continue to roll along, the Gladstone family being the key, but not the only, prime movers. Daughter Carie Gladstone Doll and son Scott Gladstone both hold key senior management positions and Alan Gladstone is
most proud of them. “They have both paid their dues and today they are vital parts of the company. Both Scott and Carie do what they do better than I do. “But over the past five years we’ve brought in executives from eight public retail companies,” he added, saying Anna’s is poised to continue to manage its growth successfully.”Now we have the team.” Don’t look for Alan Gladstone to be cutting back his role anytime soon, however. He stars in the store’s new TV ad campaign and is very much the rock star of the Anna’s annual event. “I will always be the chief cultural officer of this company.” HTT
4/14/2011 3:44:59 PM
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Anna’s-o-Rama 1
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PHOTOS: JIM LAURIE PHOTOGRAPHY
LAS VEGAS — It was all Anna’s all the time for the retailer’s recent annual summit here. Anna’s Linens brought in senior managers from its close to 300 stores as well as inviting key vendors for the event, which included a merchandising show and was highlighted by a big awards dinner and a supplier cocktail party. Anna’s founder and president Alan Gladstone was on hand to host the meeting and press the flesh with both employees and vendors. HTT
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1. Anna’s founder Alan Gladstone, from left, with some of the key supplier executives on hand: Tom O’Connor of Springs, Barry Leonard of Welspun and Loren Sweet of Brentwood. 2.
Carie Doll of Anna’s with Michael Lichtenberg of S. Lichtenberg, left, and Bruce Garfinkel of Ellery.
3 At the vendor’s reception, from left, Robert Scotland and Shawn Doll of Anna’s with Carl Goldstein of Lichtenberg. 4.
Kevin McClain of Anna’s, center, with Andy Piscione, left, and Josh Piscione of P&A Marketing.
5.
Kim LaGrange of Hollander with John Partington of Anna’s.
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Eastern Accents Debuts NPD: Table Linens Barclay Butera Collection Sales Driven by
BY JENNY HEINZEN YORK
H IGH P OINT , N.C. — Eastern
Accents and Barclay Butera have teamed up for a collection of bedding ensembles and decorative pillows created by the noted designer. Butera and the Eastern Accents team captured the essence of Barclay’s design vision for five diverse collections: Mountain — The Rustic Lodge Collection; Desert — Palm Canyon Collection; City — Hyland Park Collection; Town — Clayton Collection; Beach — Sag Harbor Collection. All coordinate with his licensed lifestyle products with other vendors. “Finding the right partner has always been the key to success for us when selecting our licensed companies to manufacture and promote the Lifestyle family of brands,” Butera said of the partnership. “Upon meeting the Eastern Accents team for the first time we all knew it was the right fit.” Butera said his vision for the lines is inspired by where he sees the designs put into use. For example, Clayton is all about color. “Clayton is a city near St. Louis,” he said. “I think about living in areas that have a lot of
gray — you want to come home to some fresh color.” Ridvan Tatargil, owner of Eastern Accents, said his company had found the right licensing partner in Butera. “He’s very easy to work with because he has a clear vision of what he wants and what works for his target customer,” he said. “His is a great brand. Combining that with our production abilities, we think both will become even stronger.” The next stop for the Barclay Butera lineup of products - which includes lamps from Bradburn, wall décor from Wendover Art, furniture from HFI Brands, fabrics from Kravet, rugs from Merida, and others — is an accessory collection with Zodax that will debut in the fall. Butera said his longer-term goal is to set up a franchise or in-store gallery operation. “There’s enough depth to what I’m doing now to make it possible,” he said. “We can go anywhere in the country and make these lifestyles work.” Also new for spring, Eastern Accents’ designers have “captured the elegance of Old World beauty” with three additions to the bedding company’s line:
Gallagher, featuring earth-tone crewel; Ceylon, a blue and white ikat; and Daphne, in French and Belgian style. Each piece in Leyla, a new collection of felt pillows, is handcut and individually pieced in Eastern Accents’ Chicago workshop. New pillow additions to the Studio 773 line are Bon Voyage and Destination, both featuring map fabrics and block-printed burlap, and Jet Setter, a pillow in the shape of a suitcase. Eastern will unveil six new Niche Bedding and Living collections (with a pillow program), pairing yellow and gray earth tones and metallic. De Medici Fine Linens is introducing Lunetta, a new jacquard with 560 thread count, 100% Egyptian cotton sateen. Marquise has been supplemented with more decorative pillows, and the faux leopard textiles collection Congo now includes upholstered ottomans and table runners. Also this market, Eastern Accents debuted the showroom’s new Custom Workroom Area, where interior designers can learn about online custom quoting options and view the company’s entire fabric selection. HTT
ITM Opens Permanent Showroom
Special Occasions
PORT WASHINGTON, N.Y. — Consumer research firm The NPD Group found kitchen and dining linens purchases for special occasions are on the rise almost across the board from birthdays and bridal showers to Mother’s Day and Christmas/Hanukkah. “However, items purchased for no special occasion are on the decline,” NPD concluded. According to NPD’s “Outdoor Entertaining Trends 2010: Consumers Bring the Indoors Out,” the overall kitchen and table linens assortments were down during the 12 months ending February 2011, but placemats gained 14% in dollar sales compared to the previous year. Among table linens, solid dark colors and patterns/prints “are gaining popularity.” NPD noted, with 11% and 9% percent dollar sales growth, respectively,
compared to last year. The report found that the number of consumers entertaining at home continues to increase, reflecting more prudent spending habits. Eight in 10 consumers said they entertain at their home, indoors or outdoors, 12% said they entertained at home more this year than in past years, and 37% said they entertained about the same amount as in the past. “Consumers continue to spend more time at home, and entertaining at home is a cost effective way of getting together with family and friends,” said Kathleen Cella, director of The NPD Group. “With increased frequency, and more casual gatherings in general, the table is following suit with cost effective, convenient, and casual options.” HTT
HGTV’s Richardson to Keynote WCAA Conference G OLD R IVER , C ALIF. — HGTV host Sarah Richardson will serve as the keynote speaker for the Window Coverings Association of America’s first conference and trade show this fall. Under the theme Inspire 2011, the event will take place Sept. 7-10 at the Galt House Hotel in Lousiville, Ken. Richardson’s keynote is scheduled for Sept. 8. She is the host and co-producer of “Design
Inc” and “Sarah’s House.” The conference will include classes, seminars and demonstrations along with an industry trade show, vendor “speed biz” event and a gala dinnery saluting WCAA’s 25th anniversary. Attendees will include workroom owners, designers, decorators, installers, retailers and window coverings dealers. For information, visit www.wcaa.org or call (888) 298-9222. HTT
ICON 2011 Event in Atlanta to Feature Kenny Loggins
ITM celebrated the opening of its first permanent showroom during the New York Home Fashions Market last month. At this new space, located at 230 Fifth Avenue, members of the company’s team enjoyed some down time with industry friends. Seen here are, left to right: Tom Gallucci, Canterbury Sales; with Jeff Cohen and Ed Pires, both of ITM.
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ATLANTA — ICON Honors 2011 – the awards program during the Atlanta International Gift & Home Furnishings Market that will recognize outstanding home and gift retailers, manufacturers, sales agents and service providers — will feature a concert performance by Grammy-winning singer/songwriter Kenny Loggins. The event will take place
during the summer show on July 14 at the Atlanta Marriott Marquis. The awards program is sponsored by AmericasMart Atlanta and the Gift & Home Trade Association. Home Textiles Today, along with its sister publications from Sandow Media, are co-sponsors. For additional information, visit www.AmericasMarticonhonors.com. HTT
4/13/2011 3:35:21 PM
CONFERENCE
Online Technologies 2nd Annual
Winning Strategies for Internet Marketing Wednesday, May 18th • AmericasMart, Atlanta • 9am - 4:30pm Join us for this special one-day conference devoted exclusively to how retailers and manufacturers in the home furnishings and decorative accessories industries are using the Web to grow their businesses. Discover the latest online marketing tactics and tools; review case studies; and learn how you can implement the newest online strategies to become more successful.
Early-Bird Registration (through April 17th) Standard Registration (starting April 18th)
$
99
(SAVE $90)
189
$
Fee includes Lunch & Conference Notebook. Seating is Limited.
$169/night Westin Peachtree Plaza 800-241-6405
Topics include: • Choosing a website developer Learn how to create a request for proposal (RFP) • Social media – Hear from a retailer who knows what works to drive sales and customer loyalty • Integrate Online + Offline – Getting your sales team and online marketing working together • Web-based Research – Competitive intelligence, product testing, training and more can be done online • Social Networks to Social Shopping – Selling through Facebook plus the role of “group buying” clubs • Where are Etailers investing their marketing dollars? Here from top online US retailer CSN stores • The Future of Tablets – Android, iPad and Windows
Sponsors:
Register online at FurnitureTodayOnline.com/Conferences. For more information contact Penny Schneck at 336-605-1084 or pschneck@sandowmedia.com
16
Home Textiles Today
April 18, 2011
> hometextilestoday.com
PEOPLETodaY Krecl Returns to Nourison SADDLE B ROOK , N.J. — Nouri-
son is welcoming back Lee Krecl as its account executive assigned to the company’s Southern Texas and Louisana sales region. Krecl is an industry veteran, both on the wholesale and retail sides of the business. Prior to relocating to Houston, he spent 18 years working for Nourison in both operational and sales positions. Earlier in his career he was part owner and operator of a rug specialty store in the
greater Atlanta area. In his new position at Nourison, Krecl is responsible for servicing and developing business with the company’s dealer base in his designated area. He handles Nourison’s broad rug line, which includes more than 65 active collections, as well as its broadloom and runner lines, which include thousands of skus, and also the company’s newer but growing Nourtex brand of goods, which encompasses more moderately priced decorative broadloom and
runners. “We are thrilled to have such a valuable, talented individual back in the organization. Lee has held several positions at Nourison in the past and excelled at all of them. [He] is very familiar with our product line and our company, and is excited to be part of both again,” said Gerard O’Keefe, vp of sales. “We know he will represent Nourison well as he always has, and make an immediate impact in his new territory.” HTT
Victor Group Appoints Roy to Head Residential Unit SA I N T- G EO RG ES , Q U E B EC —
Fabric producer Victor Group, which bought Quaker in 2007 and Craftex in 2009, has restructured its residential business unit and named Martin Roy as its general manager. Roy will oversee everything from operations to sales, design, research and development for residential. He was previously materi-
als manager in charge of purchasing, planning, production and distribution. He worked in upper management at two large manufacturers prior to returning to Victor Group in January 2010 as director of operations for the Fall River, Mass. plant. The company said the realignment of the Victor Group is necessitated by continued growth in the residen-
tial unit. Roy and his team will focus on the company’s residential business to establish closer working relationships with customers, enhance design direction and alignment, and maint ain customer service and reliability. Besides the residential unit, Victor Group is active in the contract, outdoor, apparel and specialty markets. HTT
Capel Rugs Promotes Cameron Capel TROY, N.C. — Four generation
family-owned rug house Capel Rugs has promoted Cameron Capel to become the company’s new vp-national accounts. She joined the company in 1990 and, as the granddaughter of company founder Leon Capel, has a lifelong connection to Capel Rugs. During her tenure, Capel has served in a variety of sales and marketing positions, most recently as director of national accounts. In her new role, Capel continues to manage some of the company’s most important customer relationships and is also charged with spearheading the develop-
ment of proprietary braids for those customers. She also serves now as a primary media spokesperson for Capel Rugs. She continues to report to John Magee, president and ceo. “Cameron is extremely talented at developing new business and managing relationships with our most important clients. She knows this company, and the rug industry, inside and out,” said Magee. “We are very happy to recognize all of Cameron’s hard work and look forward to continuing to work with her as we write a new chapter in Capel Rug’s long history as a leader in the rug industry.” HTT
Rogers Named Sales Director for Industrias Texel MEXICO CITY —Industry veteran Rick Rogers has been director of sales and marketing for Industrias Texel here, a weaving and finishing facility producing fabrics for furnishings and top-of-bed. The company operates about
100 jacquard looms. Rogers will be responsible for sales in Mexico as well as the rest of North America. Rogers said the company is offering itself as an alternative to Asian sources. HTT
Sleep Innovations Introduces Dara Torres as Spokesperson W EST L ONG B R ANCH , N.J — Olympic swim-
mer and gold medalist Dara Torres will serve as a spokesperson for Sleep Innovation’s new Rejuvenation Pillow. According to the company, the memory foam pillow helps position the head and neck correctly and also keeps airways open,providing a faster, better night’s sleep. Torres will be featured in direct TV ads that will run for three months before the Rejuvenation Pillow launches at retail. HTT Torres with Sleep Innovations president and ceo Michael Thompson at the company’s showroom during the New York Home Fashions Market.
htt110402_016 16
4/14/2011 11:31:31 AM
2011 LOGISTICS CONFERENCE
L
GISTICS: the critical link to supply chain excellence th Join us for this special one-day conference filled with expert speakers, panels and workshops devoted exclusively to retailers and manufacturers in the gifts and home furnishings industries.
WEDNESDAY, JUNE 15, 2011 AMERICASMART, ATLANTA, GA
99
$
EARLY BIRD REGISTRATION Until May 16th
189
$
STANDARD REGISTRATION After May 16th
8:30am-9:20am Check-In and Registration 9:20am-9:30am Opening Remarks Ray Allegrezza, Editor in Chief, Furniture/Today
9:30am-10:15am How the New Logistics Can Keep You Profitable In the New Normal Jack Holmes, President, UPS Freight With the economy still problematic, smart companies are tapping into new logistics solutions to help them navigate in today’s unpredictable waters. What are these new logistics solutions and how can you put them to work for you? Jack Holmes, President of UPS Freight, has the answers.
10:15am-11:15am Ocean Freight: Setting the Course for Smooth Sailing Ocean freight typically represents your second largest expense and with see-saw freight pricing, how can you minimize freight costs while maximizing efficiencies and profitability? A panel of experts including Chad Rosenberg of American Global Logistics, John Graves of Hanjin Shipping, Steve Wolfe of Stanley Furniture, Steve Burdette of Havertys Furniture and John Lomax of Furniture Brands will share invaluable tools and tips for staying afloat in today’s market.
11:15am-11:30am Break 11:30am-12:30pm Home (Sweet Home) Delivery
159/NIGHT
$
As e-commerce sales continue to rise, will demand for home delivery also rise? Are traditional retailers turning to home delivery rather than maintaining their own delivery fleets? With the majority of furniture imported from Asia, what
challenges does this pose to home delivery companies? Why are some importers now taking on the role of home delivery? Patrick Cory of Cory Home Delivery, Keith Hewitt of hepdirect, Will O’Shea of 3PD and Jim Waters of Home Depot, along with their retail partners, will address these critical topics.
12:30pm-1:30pm Lunch and Networking 1:30pm-2:30pm The Law, Logistics and You Mike Roll, Pisani & Roll LLP Are you CTPAT proficient? Does your new math include an understanding of 10+2 Importer Security Filings? To help you understand these intricate issues, we’ve invited Mike Roll of Pisani & Roll LLP, a law firm that specializes in international trade and customs law, including matters relating to supplychain security, to be your guide. He also will provide an update on the latest developments with U.S. Customs.
2:30pm-3:30pm Warehouse Management: Thinking Inside and Outside Your Big Box With forecasting tougher than ever, the demand for just-intime delivery and domestic availability is spiking. Whether you are a retailer, importer or are related to any of the links in the supply chain, you need to bring your notepad to this session. Bob Smith of Garr Consulting will lead a panel discussion that includes Eric Lamphier from Manhattan Associates, Jack Hawn of Zenith and Edward Massood of Thomasville.
3:30pm-3:45pm Break 3:45pm-4:15pm Q&A, Closing Remarks, Adjourn
WESTIN PEACHTREE PLAZA 800-241-6405
Register online at www.FurnitureTodayOnline.com/Conferences. For more information contact Heather Grant at (336) 605-1061 or hgrant@sandowmedia.com
18
Home Textiles Today
> hometextilestoday.com
April 18, 2011
BUSINESS TodaY BBB Posts Double-Digit Profit Increase UNION, N.J. — Bed Bath & Beyond’s fourth-quarter earnings per share jump 30% despite its consumers’ shift toward lowermargin merchandise. Net income for the quarter ended Feb. 26 was $283.45 million, 86 cents per share. Sales rose 11.6% to $2.5 billion, with comps up 8.5%. For the fiscal year, net income climbed 31.9% to $791.3 million. Sales rose 11.9% to $8.8 billion, with comps up 7.8%/ During the retailer’s quarterly conference call with analysts, executives cited better gross
margins — 43% of net sales for the year compared to 42.6% the previous year — mainly due to less couponing and fewer markdowns. As always, executives kept their color commentary to a minimum. Steve Temares, ceo, noted the environment faces “higher commodity prices, relatively high unemployment, a sluggish housing market and fragile consumer confidence,” but said BB&B’s strategy remains unchanged. The company plans to open about 45 stores this year across
all of its nameplates — which also include Harmon Face Value, Harmon, Christmas Tree Shops and buybuy Baby. In its earnings release, Bed Bath & Beyond mentioned its two-store joint venture in Mexico, Home & More, but did not specifically address any plans for expansion. For the current fiscal year, the retail expects comp increases in the range of 2% to 4% for the first quarter and full year, with sales increase in the midsingle-digit range for the first quarter and full year. HTT
Family Dollar Keeps Ramping up Consumables, Mindful of Home BY CECILE B. CORRAL MATTHEWS, N.C. — As consum-
ables take much of the credit for Family Dollar’s continually improving sales trends, the chain has plans of further expanding the assortment this year at the expense of some discretionary categories. But home was identified as the next best performing area — albeit a far second — during the retailer’s second quarter, the category increasing sales by 3% to $328,633 during period. “We saw a solid performance in both home and apparel,” said James Kelly, president and coo, responding to an analyst’s question about plans for both discretionary business segments going forward during Family Dollar’s
second-quarter earnings webcast. “We will continue to work on those areas,” Kelly continued. “They are part of our strategy, and we will work on them. But given the macro-economic event, we will do so cautiously.” As employment and the general economy continue to be soft, Family Dollar is turning most of its attention to growing its lower-margin but higher-turning consumables and healthand-beauty categories, adding about 350 new skus in these areas in the coming months. “Our plan is to increase our investment in consumables… and broaden our assortment of food and health and beauty aids while reducing some more discretionary areas,” added Howard
Levine, chairman and ceo. In the second quarter, consumables accounted for 62.2% of total sales. Family Dollar’s ongoing store renovation effort calls for 800 units to be completed this year and all 6,800-plus units to be updated within the next four years. Additionally, the chain plans to open about 300 new units this year. Net income for the second quarter, ended Feb. 26, increased 9.8% to $123.2 million, or 98 cents per share. Sales rose 8.3% to approximately $2.263 billion and comps increased 5.1%. Year to date, net income climbed 4.6% to $197.5 million, and sales were up 8.9% to $4.3 million. HTT
Ecommerce, Luxury Growth Leaders in March N EW YORK — The MasterCard
Advisors SpendingPulse report, which tracks retail and services sales growth, reported good increases in March for the ecommerce and luxury sectors. Ecommerce posted its fifth consecutive month of double-digit growth, with sales up
htt110402_018_019_020 18
16.1%. The Luxury Index, which includes department stores, general apparel categories, and highend rest aurants/food stores, increased 8.5% — the largest year-over-year increase since December 2010 and the sixth consecutive month of growth.
Michael McNamara, vp of research and analysis for MasterCard Advisors, said gas prices are impacting shopping behavior. “High gas prices typically result in consumers consolidating shopping trips, shopping closer to home, and making fewer trips,” he said. HTT
Pier 1 Sees Boffo 4Q F ORT WORTH , TEXAS — Pier 1 Imports rang up a 65.4% increase in net income in its fiscal fourth quarter as sales rose 7.7% with same-store sales climbing 8.9%, the Fort Worth, Texas-based retailer reported. Pier 1 said it also achieved a positive operating profit in the fiscal year ended Feb. 26 for the first time in six years, with merchandise margins improving to 58.4% of sales from 55.8% the previous fiscal year. Net income for the latest quarter was $57.1 million or 48 cents per share, compared with $34.5 million or 30 cents per share a year earlier. Sales of $426.6 million were up from $396 million with gains in store traffic, conversion rate and average ticket. For the full year, the company earned $100.1 million or 85 cents per share, compared with $86.8 million or 86 cents per share the previous year. But the previous year, the company had negative operating income of $3.3 million and benefited from a $49.7 million gain on retirement of debt, and a $54.8 million gain on an income tax refund.
Sales for the latest year were just shy of $1.4 billion, up from $1.29 billion the previous year. “Our new year is off to a good start and our spring and Easter assortments are resonating with our customers. Although the Easter holiday falls into April this year, March comp store sales increased 11.3% on top of last year’s March comp store sales increase of 19.4%,” said Alex Smith, president and ceo. He noted that operating income improved more than $100 million last year, adding, “The journey we started our years ago to return Pier 1 Imports to profitability and beyond has reached its initial destination - profitability - but we are by no means done.” Smith said the company has a new three-year growth plan designed to improve sales, profits and shareholder value. Pier 1 said it ended the fiscal year with inventory of $311.8 million, down slightly from $313.5 million a year earlier. It had cash and equivalents of $301.5 million, compared with $187.9 million at the end of 2009-2010. HTT
Same-store sales
April Off to a Decent Start N EW YORK — Sales of seasonal merchandise predominated during the first week of April, pushing comps up 4.7%, according to the Johnson Redbook. The discount store segment’s same-store sales rose 5.7% during the week ended April 9, with the comp for department stores up 2.8%. “Seasonal programs are generally on track for most retailers as they enter the final month of their first quarter,” said Catlin Levis, Redbook analyst. With Easter shifting into the April this year, Redbook expects overall comps for the month will rise 6.1%. HTT
Johnson Redbook Index First week of April, year-over-year % change WEEK ENDED
4/9
Department stores* Discounters Redbook Index
2.8 5.7 4.7
4/12
4/23
4/30 MONTH TARGET
2.8 5.7 4.7
3.5 7.5 6.1
*Including chain stores and traditional department stores Source: Johnson Redbook Index
4/13/2011 10:59:56 AM
Business
> hometextilestoday.com
19
Home Textiles Today
April 18, 2011
Later Easter Hits March Comps BY CECILE B. CORRAL NEW YORK — What a difference
a year makes. Take it from most key retailers. March’s comparable store sales results for more than half of the 13 major retailers tracked monthly by HTT were negative, showing a very different picture from a year ago when every company on the list posted positive gains, many of them double digits. To blame is the delayed Easter holiday this year, which comes April 24 — almost three weeks later than last year. “As expected, we reported a decrease in comparable-store sales in March due to the timing of Easter,” noted Kevin Mansell, chairman, president and ceo of Menomonee Falls, Wis.-based Kohl’s, which posted the highest comp decrease for March, down 6.5%. Ironically, the mid-tier department store reported the highest comps among key retailers this same time last year — up 22.5%. Among the good news this year, home was among the cate-
10.0%
Tony Buccina, vice chairman and president – merchandising. “We believe the combination of the shift of the Easter holiday sales as well as the arrival of more seasonable weather will result in a strong sales performance in April. We are pleased with our merchandise assortment as well as the level and freshness of our inventory.” Seemingly less affected by the later holiday were the five retailers that posted comp increases, most of them modest.
WINNERS AND LOSERS
BJ’s Wholesale Club b The Bon-Ton Stores Inc. Costco Wholesale Corp. c d Dillard’s Inc. Duckwall-ALCO Stores Inc. Fred’s Inc. J. C. Penney Company Inc. Kohl’s Corp. Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp. The TJX Companies Inc.
7.0% 1.3% 0.9% 0.7% 0.4%
LOSERS Kohl’s Corp. The Bon-Ton Stores Inc. Target Corp. Stein Mart Inc. Dillard’s Inc. Ross Stores JCPenney Co. The TJX Companies
(6.5)% (6.1)% (5.5)% (3.9)% (1.0)% (1.0)% (0.3)% (0.1)%
5.5%
BJ’s Wholesale Club b The Bon-Ton Stores Inc. Costco Wholesale Corp. e Dillard’s Inc. Duckwall-ALCO Stores Inc. Fred’s Inc. J. C. Penney Company Inc. Kohl’s Corp. Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp. The TJX Companies Inc.
2.5% 1.0%
-2.0% -3.5%
March Same-Store Sales Johnson Redbook Index
-5.0% MAR APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR Source: Johnson Redbook Retail Sales Average, a unit of Instinet, a Reuters company.
gories that outperformed Kohl’s company average. After Kohl’s, York, Pa.-based The Bon-Ton Stores posted the highest comp decline at 6.1%. But here, too, home — including furniture — was among the regional department store’s best performing categories. “As expected, the calendar shift of Easter into late April this year unfavorably impacted March traffic and sales, particularly in the apparel category,” explained
htt110402_018_019.indd 19
2010 SALES
$1,083.3 $254.5 $8,330.0 $519.8 $43.8 $188.0 $1,467.0 $1,723.0 $2,207.0 $828.0 $127.1 $5,955.0 $2,040.0
$992.7 $272.4 $7,150.0 $526.8 $42.5 $183.5 $1,528.0 $1,812.0 $2,172.0 $811.0 $133.6 $6,233.0 $2,030.0
Only Costco had a high single digit result – 7.0%, which was helped along by a double-digit comp increase in housewares and home furnishings as well as a few other soft-lines categories. BJ’s Wholesale Club, based in Westborough, Mass., attributed its 1.3% comp gain — second best on the March list — in part to increased sales of food. Sales of general merchandise decreased by approximately 2%. A close third in the month was
2011 SALES
2010 SALES
$1,897.4 $452.2 $50,790.0 $1,012.4 $79.3 $342.5 $2,681.0 $2,884.0 $3,969.0 $1,423.0 $207.5 $10,705.0 $3,500.0
$1,737.3 $472.3 $45,210.0 $1,026.0 $76.2 $334.1 $2,710.0 $2,896.0 $3,839.0 $1,365.0 $208.1 $10,870.0 $3,400.0
a. Reporting periods vary from chain to chain. b. Including gasoline, merchandise comparable club sales increased in March by about 5.3%. Year-to-date, BJ’s merchandise comparable club sales including gasoline increased 5.4%. c. Total sales results in March include sales fromthe company’s Mexico joint venture; without those sales, the increase would have been 14.0%. d. March comp club results are for the U.S. division -- including the positive impacts of inflation in gasoline prices and strengthening
4.0%
-0.5%
2011 SALES
TOTAL % CHG.
9.1 (6.6) 17.0 (1.0) 3.0 3.0 (4.0) (4.9) 1.6 2.0 (4.9) (4.5) 1.0
SAME-STORE % CHG.
1.3 (6.1) 7.0 (1.0) 0.4 0.7 (0.3) (6.5) 0.9 (1.0) (3.9) (5.5) (0.1)
9 WEEKS
WINNERS Costco Wholesale Corp. BJ’s Wholesale Club Macy’s Inc. Fred’s Inc. Duckwall-ALCO Stores
2011 year-over-year
7.0%
Four weeks ended April 2, 2011 (dollar amounts in millions) a
Same-store sales % change
2.0%
8.5%
MARCH SALES FOR KEY RETAILERS
Cincinnati-based Macy’s, which generated a 0.9% comp increase — exceeding expectations, according to chairman, president and ceo Terry Lundgren. “We generated same-store sales increases at both Macy’s and Bloomingdale’s, despite a calendar shift in which the pre-Easter period and a planned cosmetics promotion at Macy’s fell into April this year versus March last year,” he said. Macy’s said it continues to be optimistic about sales in April, which should benefit from the Easter shift and a cosmetics promotion. The department store expects its same-store sales this month to be up by 8% to 9%, which would translate to an increase of 4% to 4.5% for the combined March-April period. Previously, the company said it expected combined March-April
TOTAL % CHG.
9.2 (4.3) 12.0 (1.0) 4.1 3.0 (1.1) (0.4) 3.4 4.0 (0.3) (1.5) 2.0
SAME-STORE % CHG.
1.8 (3.7) 4.0 (1.0) 1.7 0.7 2.7 (2.2) 3.0 1.0 0.3 (2.4) 1.0
foreign currencies, comparable club sales for the month were up 11% in the U.S. division, 17% in the international division, and 13% for the total company. e. Because it is on a different fiscal calendar than the other key retailers on this list, Costco’s year-to-date sales and comp results reflect the past 31-week period. Year-to-date comp club results are for the U.S. division -- including the positive impact of inflation in gasoline and strengthening foreign currencies, comparable club sales were up 6% in the U.S., 14% in the international division, and 8% for the total company.
sales to be up by approximately 3%. The last positive comp producer on the list was DuckwallAlco, which in March achieved its second consecutive month of positive same-store sales, noted Rich Wilson, president and ceo. “Our strategic initiatives to deliver more value, improve store execution and better manage inventory continue to build momentum,” he said. At JCPenney comps were essentially flat — down 0.3%, with the home business cited as a driver during the five weeks and so far in the first quarter. Within JCP’s home department, the biggest increases came from housewares, bath and luggage. Home is also credited with boosting traffic and significantly increasing sales lately online
at JCP’s ecommerce site, www. jcp.com. Minneapolis-based Target’s soft comps, down 5.5%, were in line with expectations, said Gregg Steinhafel, chairman, president and ceo. He added: “Our stores are well-prepared for the upcoming Easter season, and we continue to expect a mid-teens increase in Target’s April comparable-store sales.” Home, however, was weak at Target in March, declining in the high single digit range. At Jacksonville, Fla.-based Stein Mart, comps were also down 3.9%, but home was a bright spot along with men’s sportswear and intimate apparel. The story was the reverse at Dillard’s, where home was significantly below trend. The department store’s poor March comps of fell 1.0%. HTT
4/12/2011 4:54:24 PM
20
Home Textiles Today
April 18, 2011
News
NRF: Retail Container Traffic to Be Up 9% in April W A SHINGTON — Pointing to a
potentially improving economic trend, import cargo volume at the nation’s major retail container ports is expected to be up 9% this month over April 2010, said the National Retail Federation. According to its monthly Global Port Tracker, which NRF released last week with consulting firm Hackett Associates, which helps produce the report, U.S. ports handled 1.1 million Twenty-foot Equivalent Units (TEU) in February, traditionally the slowest month of the year and the latest for which actual numbers are available. That was down 8% from January but up 10% from February 2010. It was the 15th consecutive month to show a year-over-year improvement after December 2009 broke a 28-
month streak of year-over-year declines. One TEU is one 20-foot cargo container or its equivalent. “These numbers are an indication that the economy is recovering and retailers are expecting continued increases in sales through the summer and beyond,” said Jonathan Gold, NRF vp for supply chain and customs policy. “There are challenges ahead from rising prices for gasoline and other essentials, but inventories are under control and retailers are optimistic.” March was estimated at 1.2 million TEU, an increase of 11 % over March 2010. April is forecast at 1.24 million TEU, up 9 % from a year ago; May at 1.32 million TEU, up 4 %; June at 1.38 million TEU, up 5 %; July at 1.45 million TEU, up 5 %; and August
at 1.54 million TEU, up 8 %. The first half of 2011 is forecast at 7.4 million TEU, up 8% from the first half of 2010. For the full year, 2010 totaled 14.7 million TEU, a 16% increase over 2009. Last year’s percentages were high because 2009’s 12.7 million TEU was the lowest level seen since 2003. “The economy is slowly on the mend with many of the key shortterm indicators providing positive directions,” said Ben Hackett, founder of Hackett Associates. Global Port Tracker covers the U.S. ports of Long Angeles/ Long Beach, Oakland, Seattle and Tacoma on the West Coast; New York/New Jersey, Hampton Roads, Charleston and Savannah on the East Coast, and Houston on the Gulf Coast. HTT
> hometextilestoday.com
Bon-Ton to Open New Carson’s in Indiana YO R K , PA . — The Bon-Ton Stores Inc. is gearing up for the opening of a new Carson’s unit in the Midwest later this year in time for the 2011 holiday selling season. T h e 6 0 , 0 0 0 - s qu a r e - f o o t
space — currently an ElderBeerman store — is located at Markland Mall in Kokomo, Ind. Bon-Ton expects to remodel the site and complete the project by November 2011. HTT
Hong Kong Int’l Home Textiles Fair Set H ONG KONG — The 2nd annual HKTDC Hong Kong International Home textiles fair will take place this week with about 240 exhibitors from 10 countries. Spun off last year as a standalone event that runs concurrently with the HKTDC Hong Kong Houseware Fair, the home textiles show is set from April 2023 at the Hong Kong Conven-
tion and Exhibition Centre. Product categories include bedding, bath, rugs, upholstery and infant goods. Exhibitors hail from China, India, Korea, Taiwan, Indonesia, Vietnam and Spain, among other countries, according to fair organizer the Hong Kong Trade Development Council. For additional information, visit www.hktdc.com. HTT
CLASSIFIEDS HELP WANTED Product Category Manager Ellery Homestyles is growing and adding 3 new positions. Window, Bedding and Throw Product Category Managers collaborate and partner with sales and key design team partners to support the execution of product while managing to the appropriate and expected
timelines and deliverables. Submit resumes in confidence to: hr11@elleryhomestyles.com
COSTING/PRODUCT MANAGER Victoria Classics a Home Textile Importer based out of Central New Jersey seeks a Costing/Technical Expert professional with around 3 years exp. Home Textile or Apparel background required. Must have experience working with Merchandisers and Design Teams and Chinese factories. Must have a degree in Textile Engineering or equivalent exp and speak Mandarin. Must be able to calculate costs of Products. Send Resume in Confidence to: hresources@victoriaclassics.com
CLOSEOUTS CLOSEOUTS WANTED --BOUGHT AND SOLD-Seeking Unlimited Quantities on Firsts, Irregulars and Overstocks HOME FASHIONS DISTRIBUTOR INC Mike O’Neil 207-646-1949 Email: mike@homefashionsinc.com
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FASHION BEDDING DESIGNER Royal Heritage Home, a home textile importer of fashion bedding, based in mid-town Manhattan, seeks a Creative and Highly Organized professional with at least 2 years experience. Must know PHOTOSHOP/ILLUSTRATOR. Send resume in confidence to: khartman@royalheritagehome.com
Wanted: Sales Manager, as well as Replenishment Buyer and Packaging Designer Leading Bath, Kitchen & Acct Rug Mfr w NYC Showroom/Design/ Sales Office, Company Owned Factory in China & East/West Coast Distribution Centers looking for talented, hard working Sales Manager with experience selling Major Retailers. Attn: BB20151 to classifieds@sandowmedia.com
small space
BIG RESULTS ! htt110402_018_019_020 20
4/14/2011 4:08:59 PM
STARTYOUR OWN
SOCIAL COMMUNITY DON’T GET LEFT BEHIND. AS THE HOME FURNISHINGS INDUSTRY LEADER WE CAN HELP YOUR COMPANY WITH A CUSTOM SOCIAL MEDIA STRATEGY AND TURN-KEY PROGRAM. NEW TO SOCIAL NETWORKING? LACKING TIME AND RESOURCES? WE’VE GOT YOU COVERED!
There are more than 500 million active users on Facebook and more than 70% of retailers are now on Facebook or MySpace. You can’t afford to ignore this important communications channel. Benefits of a social media program include: • • • •
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Supima_Welspun.indd 1
8/13/2010 3:39:45 PM
> hometextilestoday.com
News
April 18, 2011
HTT Parent Acquires Surfaces Magazine NEW YORK — Sandow Media, parent company of Home Textiles Today, has purchased Surface magazine and its website from Quadra Media. Surface, “the American voice of the contemporary luxury and de-
Wearbest Growth
WEARBEST FROM PAGE 1
“The beginning of 2010, that’s when we started to see the plan gaining traction.” Even the residential business is showing improvement, he said. “Since upholstery fabrics at the mid- to high-end are so expensive, no one can afford to buy the level of in-
sign world,” will publish its first issue under Sandow’s Interior Design Media Group with the July/August edition. “As a leading design, fashion and lifestyle consumer magazine, Surface will be a strong addition to Interior Design
ventory an Asian mill would require,” he explained. Wearbest is addressing the situation by offering short runs, proprietary design, a commitment to resolving problems and “manic turn-around time.” The mill’s Bella-Dura high performance fabric, launched about six years ago, has expanded into contract and healthcare as well as the casual market. Wearbest has also developed performance fabrics for the health-
Media Group,” said Adam I. Sandow, chairman and ceo, Sandow Media. The acquisition also further expands Sandow Media’s global presence with Surface Asia and Surface China. HTT
care market. “We did not add capacity,” said Gasner. “We invested in material to develop new products rather than hardware.” Next up, Wearbest plans to sign an agreement with a group that will work with its design studio on “a new and creative aesthetic” for the BellaDura line. “We aren’t just a sleepy little mill in New Jersey,” said Gasner. HTT
22
Home Textiles Today
360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com EDITOR-IN-CHIEF Jennifer Marks 10 Ocean Blvd #8B Atlantic Highlands, N.J. 07716 (732) 204-2012 | jnegley@hometextilestoday.com FOUNDING EDITOR-IN-CHIEF Carole Sloan PRODUCT 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 DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | dfrench@sandowmedia.com PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | wshoulberg@hometextilestoday.com ASSOCIATE PUBLISHER 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, CHINA Nancy Yu Tel: 86 (0) 21 5126 0111; Fax: 86 (0) 21 6539 0321 nancy@oceaniamedia.net MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | kj_reeds@yahoo.co.in ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com 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
SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow
Bella Dura high performce fabrics have been expanded from residential into the contract, healthcare and casual living segments.
Chortex Plans CHORTEX FROM PAGE 1
been working on and off in the United States over the past 10 years dealing mostly with high-end brand suppliers. The company will continue to do business with independent specialty retailers, albeit on a direct basis, as well as department stores and online retailers. The drop-ship capabilities for online at Chortex’s DC in upstate New York “is one of the major things,” Vergucht told HTT. The company is also bringing back
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to the U.S. market its high-end bath ensemble collection Rhapsody Royale after a five-year absence and will expand to the mill’s full line of offerings. Chortex will take a booth at the New York International Gift Fair in August, returning after several years. It launched Rhapsody Royale in 1996, and three years later the product earned the “Best Product Award” during the NYIGF that year. Vergucht explained Chortex wanted to bring back Rhapsody Royale to respond to the customers’ requests for the product. “Due to popular demand, the Rhapsody Royale towel is enjoying a
renaissance in the USA market,” Vergucht said. “We are delighted to offer once again a full range of these magnificent towels. Our Rhapsody Royale towel is the real thing. It’s a very good quality, very soft product. No corners were cut here to produce it.” At 660 gsm, the bath towel is set to retail at $24.99. Suggested price points for other pieces are: $7.99 for tip, $17.99 for hand and $39.99 for sheet. Chortex is co-owned by Onur Uyanik, who is based at the company’s headquarters in Turkey. Claire Smithson heads the company’s European headquarters in London. HTT
CFO/COO Christopher Fabian VP CREATIVE AND EDITORIAL Yolanda E. Yoh EVP, GROUP PUBLISHER James N. Dimonekas SUBSCRIPTIONS: U.S.A. (866) 456-0405 All other countries: (515) 247-2984 HTTcustserv@cdsfulfillment.com FAX SUBSCRIPTIONS: 1-866-310-7181 THE WEEKLY BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY® 360 Park Avenue South, New York, NY 10010 Telephone: (646) 805-0227 Fax: (646) 365-2307 USPS 497-490 HOME TEXTILES TODAY (USPS 497-490) (ISSN 0195-3184) is published 29 times a year except for the weeks of 1/3, 2/14, 2/28, 3/20, 4/11, 4/25, 5/2, 5/16/,5/30, 6/13, 6/27, 7/4, 8/1, 8/15, 8/29, 9/5, 9/26, 10/17, 10/31, 11/14, 11/28, 12/12, 12/26 by Furniture/Today Media Group, 360 Park Avenue South, 17th fl., New York, NY, 10010 a subsidiary of Sandow Media LLC, 3731 NW 8th Ave, Boca Raton, FL 33431. Periodicals postage paid at New York, NY, and additional mailing offices. HOME TEXTILES TODAY copyright ©2011 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $169.97; 1 year, other countries $325.99 for surface mail and $525.00 for airmail. All payments must be made in U.S. currency. Subscription inquiries: HOME TEXTILES TODAY, PO Box 5879, Harlan, IA 51593-1379. Phone: (866) 456-0405. HOME TEXTILES TODAY and THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY are registered trademarks of Sandow Media LLC, used under license. Sandow Media LLC does not assume and hereby disclaims liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident or any other cause whatsoever. (Posted under Canadian International Publication Agreement No.40624074. Sandow Media/CDS (Mint Hill) POSTMASTER: Send address changes to HOME TEXTILES TODAY, P.O. Box 5879, Harlan, IA, 51593-1379 Email: HTTcustserv@cdsfulfillment.com. Return undeliverable Canadian addresses to: RCS International; APC; PO Box 503, RPO West Beaver Creek, Rich Hill, ON L4B 4R6
4/15/2011 1:38:30 PM
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Chortex April 18th_HTT.indd 1
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