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Monday, June 10, 2013

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

Sheex on the Move

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hometextilestoday.com

| Vol. 34, No. 14 | $8.00

Andersons Tweaks Soft Home Assortment

Plans to expand into bath, open specialty shop, and broaden marketing

BY CECILE B. CORRAL I RMO, S.C. — Sheex, which develops high-end athletic-inspired fabrications for its growing roster of home products, is again stretching into new business segments and broader markets via several new initiatives.

With the sheeting and top-of-bed fashion and utility programs established and growing, Sheex is now pursuing bath coordinates.

Under development, this new line will encompass Sheex-branded towels, shower curtains and accessories.

SEE SHEEX PAGE 20

BY CECILE B. CORRAL M AUMEE , I LL . — A year after redesigning, reconfiguring and vastly expanding the softer side of its home department, four-unit regional chain The Andersons Stores is now in the process of fine-tuning the categories in response to customers’ preferences by late this fall.

At the top of that list is the bedding section, noted Rick Swank, director of merchandising.

“We probably got overly aggressive in price points and that industry has shifted over time,” he said.

Added Leslie Hearn, senior buyer, bedding, bath and window: “We are trying to build a ‘good, better, best’ pricing strategy to make SEE ANDERSONS PAGE 8

New Big Lots Chief Expresses ‘Sense of Urgency’ Michelle Marciniak, left, andSusan Walvius.

Inside This Issue Dennard Rejoins Kaleen as Senior VP ......................................... page 2 Polartec Back in The Upholstery Business................................... page 2 Whodda Thunk? ............................................................................ page 4 The Penney Post-Partum Predicament ........................................ page 4 Feathers Adjusts To Shoppers’ Nesting Needs ........................... page 8

C O LU M B U S , O HIO — On the heels of Big Lots’ tough first quarter, the company’s newly appointed ceo and president, David Campisi, outlined his goals for the business.

“My top priority is to engage with our executive leadership team, merchants and our planning groups, our store operations team, as together we will travel to stores and our single focus will be to learn more about the business and our customers’ wants and desires, and develop a vision on how best to

move Big [Lots] forward,” said Campisi, who assumed his post on May 6, upon the departure of his predecessor, Steve Fishman.

Speaking during the company’s quarterly conference call on May 30, the 30-year retail veteran added: “Merchandising, marketing and execution all the way through to the stores are the engine, which needs to accelerate in this business at a much quicker pace and with a sense of urgency.”

Campisi said the merchandis-

INSPIRED BY: NATURE

ing team has already begun testing a few of initiatives. Among them is a recently introduced cooler program on trial in 75 stores located in five markets to draw in more traffic. In particular, Big Lots is hoping to attract shoppers enrolled in the Federal government’s SNAP — Supplemental Nutrition Assistance Program — formerly known as the food stamp program.

Also proving successful so far is Big Lots’ store remodel program, which calls for new SEE QUARTER PAGE 18 ATLANTA

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Home Textiles Today

June 10, 2013

News

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ADVERTISEMENT

ELITE SPONSORS

Dennard Rejoins Polartec Back in Kaleen as Senior VP The Upholstery DALTON, GA. — Rug manufacturer Kaleen Rugs is bringing a famil-

iar face back to its management team.

Blake Dennard, who has more than 23 years of floor covering experience, including a previous stint as vice president of sales for Kaleen, is the company’s new senior vice president. In this role, he will report to Kaleen ceo Monty Rathi In his new position, he is responsible for the Kaleen sales & marketing teams and the expansion of Kaleen’s account base into the furniture store and Ecommerce market segments. Dennard will also BLAKE DENNARD lead the expansion into new market categories.

“I am very excited to be re-joining Kaleen,” said Kaleen Rugs Dennard. “The combination of the outstanding team of employees and the power of true vertical integration gives us unlimited upside potential.”

Prior to rejoining Kaleen, Dennard held management positions with Beaulieu, Oriental Weavers and Momeni. HTT

American Homes and Textiles Advances Design Reach NEW YORK — American Homes and Textiles has partnered with several New York design houses for access to design libraries and archives for application in the fashion bedding and beach categories.

“AHT has always been a strong print house in its own right, but these new partnerships promise to enhance our capabilities and flexibility in

that regard, throughout all of our product groups, and facilitate faster turnaround time with custom design development for our retail partners,” said Naveed Shamsi, vp of U.S. operations.

The company offers adult and juvenile sheet sets and fashions bedding as well as blankets, terry bath products, shower curtains, infant bedding and towels and beach. HTT

Tracking Textiles

BEDDING SALES CLIMB +4%

44%

Brick and mortar

In-store is still driving business but online also important*

32% Online

24% Other

Percentage of growth coming from each channel

Brick and mortar remains the largest share of the market — 85% — with online accounting for 13%. For the period, 18% of online bedding dollar sales came from sheet sets, which was up 21% compared to the 12 months ending April 2012. *12 months ending April 2013 Source: The NPD Group, Inc./Consumer Tracking Service.

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Business L AWRENCE , M ASS . — Polartec is re-entering the contract upholstery business in partnership with C.F. Stinson with the launch the “Fit by Polartec” collection at NeoCon show in Chicago this week.

“Two years ago Polartec launched a revolutionary new waterproof breathable technology for mountaineers and athletes called Polartec NeoShell.

We have optimized and adapted the performance of this technology for upholstery, namely incredible moisture barrier technology and durability in a breathable, highly comfortable seating material,” said Allison Spahr, vp of global design at Polartec.

Polartec partnered with Patagonia to create a modern synthetic fleece for the cold weath-

er apparel sector in the early 1980’s. With the C.F. Sinson alliance, Polartec is applying technology from outdoor apparel textiles to create new, high performance contract upholstery fabrics.

“It’s not entirely clear which is the harsher environment, the top of Mt. Everest or seating in a medical waiting room, but we have worked closely with Polartec to bring their advanced textile science and valued brand to the commercial interiors and furniture markets,” said John Rowan, Director of Sales and Product Development for CF Stinson.

All styles in the Fit collection are being produced in the U.S. at Polartec’s bluesign certified manufacturing facility in Lawrence, Mass. HTT

Leon & Lulu’s Curtin Among the Best of Detroit munities. The store also won Curtin, co-owner of lifestyle Best Furniture Store and Best store Leon & Lulu’s Curtain, Unique Shop in the Daily Triwas voted best independent store bune’s 2013 readers poll, and owner by the readers of upscale Best Place to Find Home Décor Hour Detroit magazine in its Real Detroit Weekly’s 2013 Best 2013 Best of Detroit contest. of Detroit contest.

“What a thrill and a great surIn April Curtin also was invitprise to win this very ed by The Wall Street Journal special honor,” said to be a small business conCurtin. “Hour Detributor to The Experts, an new online forum designed troit is a very presto give readers a better untigious publication derstanding of small business and I am beyond issues covered in The Jourgrateful the fans of nal Reports, one of the paLeon & Lulu, staff, friends and clients MARY LIZ CURTIN per’s most popular sections.

Leon & Lulu Curtin and the others intertook the time to act with readers though short vote and think of me. It’s been a very lucky seventh blog posts and video interviews about once every six weeks. year in business for us.”

Last year, Curtin received Leon & Lulu has landed several awards this year, including the Icon Honor for individual The Next Big Give put on by the career accomplishment during Dallas Market Center, which the Atlanta International Gift recognizes specialty retailers that and Home Furnishings Market. make a difference in their com- HTT

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Home Textiles Today

June 10, 2013

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OPINIONTodaY The Penney Post-Partum Predicament

Whodda Thunk?

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F U NN Y T HING H A PPENED after the cotton crisis. When cotton prices became so unstable that quotes on programs were changing by the hour, polyester sheets made a comeback. And even through cotton prices have stabilized, polyester sheets remain with us.

Now, it’s worth noting that although the cost of raw cotton has settled down, the price of cotton yarn has been steadily escalating over the past several months. So from a manufacturing and purchasing perspective microfiber (i.e., polyester) still represents a relative value.

But here’s the other thing: if shoppers had rejected microfiber sheets that would have been the end of the story.

They didn’t. As one supplier noted: “We all [in EDITOR-IN-CHIEF the industry] turned up our noses at it. But the consumer told us different.”

In many parts of the mass market, microfiber sheets have become the new opening price point offering. Online they’re often marketed as a “luxury” item — even if the price points are anything but.

For the most over-the-top examples, search “microfiber sheets” on Amazon, where one can find “1200 count Egyptian Weave” microfiber ($20 for a queen set) as well as “Silky Soft Luxurious Supreme Microfiber” ($26) and “Microfiber Spa Quality” (a whopping $49.97).

Over at Walmart.com, type “microfiber” into the search bar and three options immediately pop up: microfiber bedding, microfiber sheet sets and microfiber no sew throws. For the same search at Kmart.com, the top three suggestions that pop up are microfiber towels, microfiber table clothes and microfiber blankets.

Target.com, on the other hand, offers only two microfiber sheets, while Bed Bath & Beyond mostly confines the construction to infant and juvenile bedding (the exception being lace-trimmed solid color sheets).

Outside of bedding, microfiber has been part of consumers’ lives for some time now — in outerwear, handbags, and blankets. So maybe the question should be why it took the cotton crisis to move the construction into sheets.

Maybe, at the end of the day, it was all just a case of dumb luck. HTT

Jennifer Marks

W

ITH THE R ET UR N OF MIK E U L L M A N, the birthing process has once again taken hold at JCPenney and retailing from Plano to the Plains and from coast to coast is about to get reborn again.

Certainly the RonJon Warren dividend that stores like Maand Bed Bath and TJX Shoulberg cy’s cashed in is now null and PUBLISHER/ void as Ullman tries to bring EDITORIAL DIRECTOR back the not-so-glory days of Penney … which would still represent an improvement over the past year’s debacle brought on by the Johnson Administration.

So what does it all mean for the stores that compete against Penney? Let’s take a look, shall we: Macy’s: Even though the former Feds at the company won’t come right out and say it, Macy’s has been the biggest beneficiary of the JCP era. It has kept its foot to the promotional pedal non-stop while continuing to expand its private label and exclusive offerings. Macy’s would by definition be the most vulnerable store to Ullman II, the question being whether it will be able to retain the new shopping dollars it gained over the past 18 months. I say yes … at least for the short-term.

Kohl’s: Here’s the store that should have had the most to gain from RonJon-ism but didn’t.

It has kept the coupons coming and will prob-

ably need to sharpen its scissors even more so as Penney gets back in the clip business. If only that was the sole problem emanating from Menomonee Falls.

TJX: Hard to quantify but a big chunk of the run-up in sales at TJ Maxx, Marshalls and especially Home Goods has had to come directly out of the Penney pot and that’s not likely to change.

Home Goods is poised to become a huge player in the home business and the three horsemen of the Apocalypse — Jonathan Adler, Terrence Conran and Michael Graves — along with their faithful companion Martha are in no position to stop that from continuing.

Bed Bath & Beyond: A little more difficult to figure out how much it has benefited from the Plano problems, but certainly it has picked up market share. With coupon clipping more and more the driving force of BBB sales, one has to wonder how the return of the old Penney will impact sales here.

Target: You have to think that it was the Target customer that was Johnson’s sweet spot for the new JCP, but one has to also think it wasn’t happening. The Target customer never left the store to go across the highway to JCP … but she’s clearly been going someplace else, that’s for sure. Target needs to continue to work to bring her back.

Sears: Lots of pain, not much gain. No change.

Right now there’s a giant pregnant pause in the Penney picture. Let’s see what happens … in nine months. HTT

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6/6/2013 12:53:14 PM

News

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Home Textiles Sourcing Expo Boosts Participation NEW YORK — The Home Textiles Sourcing Expo, which will run in conjunction with Texworld USA next month, will have even more new manufacturers from China among its exhibitors.

“Our Chinese partner CCPIT

has exceeded their original planned number of exhibitors for the July event,” said Whitney West, marketing manager, New York textiles shows for show organizer Messe Frankfrut.

This year’s event will take

place July 16-18 at the Jacob Javits Center in New York City.

For more information, visit www.

HomeTextilesSourcing.com.

For a preview of introductions from new 2013 exhibitors, see pages 14 and 15. HTT

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Home Textiles Today

June 10, 2013

Retail Briefs Dillard’s Becoming Less Promotional In Home

G

uiding a walk-through of Dillard’s NorthPark Mall store in Dallas last week, company chairman and ceo William Dillard III touched on a few company initiatives.

In the home department, he said the company is tacking away from a concentration on promotional pricing to create more balance amore pricing tiers. Dillard’s is also shifting toward more contemporary looks, the company announced in a recap of his remarks.

Sales in home and furniture were down “significantly” during the first quarter, but gross margin was up “significantly,” according to the company.

Ecommerce is another area Dillard’s has targeted for growth, and first quarter sales at dillards.com jumped 21%.

Belk Celebrates 125th Anniversary

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Study: Large Retailers Lag in Omni-channel Efforts C HICAGO — Big retailers are behind the curve in terms of building seamless integration between their online and in-store shopping experiences, according to a new study by SD Retail Consulting, a leading strategic retail advisory firm and unit of Hilco Trading.

The study covered 35 leading retailers in the U.S. and UK, including department store, specialty store, big box, grocery and convenience store chains, most with revenues of over $1 billion.

“Multi-channel is disrupting store operations across real estate footprint, inventory ‘location,’ customer service and selling and is the most significant challenge to store operations that I have seen in the last 25 years,” said Joe Madigan, vp, store operations, SD Retail Consulting.

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Among the findings: • 80% of retailers surveyed are not effectively training instore staff to address the needs of multi-channel shoppers, including how to deal with “show rooming,” competitive price-matching, in-store pick-up requests, or specific product knowledge customers may have gained from the web; • Only 29% of U.S. retailers surveyed have implemented instore pick-up options, and only 24% are planning to unveil a pilot program by late 2013; • Just 18% of U.S. retailers have implemented mobile POS systems across a significant portion of their stores, often rolling it out to select groups of stores; • Mobile POS is typically used for only one or two specific uses

(i.e. line busting or search/assistance within specific departments), rather than leveraging the full extent of its capabilities (CRM, labor scheduling, traffic counters, etc.); • Fewer than 10% of retailers surveyed have created a method to incentivize and recognize store-level associates for crosschanneling selling.

“The seamless customer experience and speed of change led by pure play e-retailers such as Amazon is setting a high bar for retailers operating both bricks and mortar and e-commerce channels. The pace of change to meet this high bar needs to accelerate as the pressure from these new competitors continues to grow,” said Antony Karabus, president of SD Retail Consulting.” HTT

amily-owned Belk kicked off the department store company’s 125th anniversary in late May with instore events and giveaways at its 301 units.

William Henry Belk, grandfather to current chairman and ceo Tim Belk and president and coo John Belk, opened the family’s first store on May 29, 1888 in Monroe, N.C. “On this day we’re celebrating our rich heritage over the last 125 years, but we also want to celebrate our bright future,” said Tim Belk.

Belk will continue the anniversary celebration throughout 2013 with more than 125 exclusive designer brand products available in stores and on belk. com. The company is also launching 125 Days of Prizes, which will award a prize valued from $500 $6,500 every day until July 10 to consumers who register on Belk’s Facebook page or on belk125prizes.com.

During 2013, Belk is also participating in 125 Days of Service. Through a $2 million partnership with the Points of Light Institute, Belk associates will work in local schools to bring “Modern. Southern. Style.” to the schools through makeover projects. The project concludes July 10 and will serve 225 schools throughout the 16 states the company serves.

PBteen Forays into So. California With First Area Unit

W

illiams-Sonoma, Inc. nameplate PBteen opened its first Southern California store June 1 at The Oaks Mall in Thousand Oaks.

The store is anchored around a PBteen Design Lab, where teens and their parents can digitally creating a personalized room on a computer monitor and quickly see it come to life on a television screen overhead.

“We are excited to open the first PBteen store in southern California and to complete our family of Pottery Barn brands in this region,” said Sandra Stangl, president, Pottery Barn Brands. “We have many loyal customers in the Los Angeles area and are thrilled to bring them PBteen’s personal in-store experience just in time for back-to-school shopping.”

6/5/2013 3:59:32 PM

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Home Textiles Today

June 10, 2013

News

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FIRST MONDAY:

Feathers Adjusts To Shoppers’ Nesting Needs Weathers industry shifts over two decades

BY CECILE B. CORRAL P ITTSBURGH — With his extensive experience in luxury linens retailing, there is one thing in particular that has served Jeff Mulert well: adapting.

During nearly three decades of working in high-end linens, most of that time owning and operating his specialty shop Feathers, Mulert has mastered the art of adapting to the ever changing landscape, especially in recessionary times.

In recent years, Mulert has steered Feathers into new business strategies, creating a new

private label program and layering in new product categories, among other efforts.

But he has been adapting since the beginning.

“After graduating from college I opened up my own antique business, wanting to be an entrepreneur,” Mulert told HTT. “But I soon realized I needed a real job, and ended up getting one with Gimbels [now-defunct Gimbel Brothers department stores], and over my five years there I worked as a department manager, an assistant manager and buyer.”

From there, he went to work for Altmeyer’s BedBathHome

FORMERLY NYIGF

Jeff Mulert has adapted his Pittsburgh specialty shop Feathers to keep up with a changing retail landscape.

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in Pittsburgh. At the age of 29, Mulert opted to return to running his own retail operation, opening a Scandia Down [today known as Scandia Home] franchised shop. That was 1984.

“I did it highly leveraged, and the first store we did, here on Walnut Street, was a success right away,” Mulert recalled.

“From there we opened one additional location and bettered the square footage.”

For the next eight years, Mulert operated a Scandia Down store locally. He left the franchise in 1992 to open Feathers.

“I still carry Scandia product to this day. But since then we have expanded into other cate-

gories.”

Marking its 21st anniversary this year, Feathers today offers a carefully curated assortment of home goods that centers on top-of-bed and sheeting but also includes other categories, from luxury lingerie through fine furniture pieces — an expanded offering that has gradually grown in line with market trends.

Feathers started with highend down products, but Mulert quickly expanded the assortment to include better linens in bedding, bath and table.

Feathers has experienced its share of tough times over the years. Mulert owned and operated a second Feathers unit near the flagship shop for four years in Sewickley, Pa. But he closed it when the economy went south in 2009.

Over the years, Feathers has made a niche for itself in fashion top-of-bed products, as the

6/4/2013 5:40:48 PM

> hometextilestoday.com

sheeting segment has increasingly become a more competitive business.

“Sheeting is more highly competitive and it has become more of a commodity product,” he explained. “This is the big story right now. In purveying other brands as a small retailer, it is difficult for us to compete with a NeimanMarcus.com, where they are selling the same brands as we carry. So we are finding the exclusivity in private label. It allows us to offer something unique in our store while still keeping very competitive prices. My plan is to gradually go toward more private label product in basic sheeting.”

Feathers first launched the private-label, high-end sheet program four years ago in partnership with Italian fine linens house RB Casa. The line started out with 600-count Egyptian cotton sateen hemstitch sheets in white and ivory.

As this basic offering has grown in sales and popularity

June 10, 2013

Home Textiles Today

among Feathers’ customer base, the store recently unveiled its first extension of the program to reach more competitive price points. The new assortment comprises 300-count Egyptian cotton sateen sheets featuring a double stripe accent on flat sheets and cases.

Feathers is now looking at expanding again, with the addition of another 300-count grouping featuring a solid hemstitch.

Because “white and ivory make up 85% of business,” he added, “we’re sticking with only these two colors in terms of stocking.”

Price points begin at $300 for the 300-count sheets and begin at $500 for the 600-count varieties.

Mulert said Feathers customers “know us very well, and know we have been the high-end linens store in Pittsburgh for many years. They want fine Italian sheets of excellent quality at very competitive prices. So instead

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Manufacturers including Yves Delorme, Schlossberg, Sferra, Anichini, SDH, Missoni, and Scandia are represented at Feathers.

SEE SPECIALTY PAGE 22

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6/4/2013 5:41:03 PM

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Home Textiles Today

June 10, 2013

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Andersons

Rick Swank and Leslie Hearn in the revamped bath towel department.

ANDERSONS FROM PAGE 1

our assortment easier to understand for the customer, and to appeal to a broader customer base.”

Swank said that means “getting our merchandise aligned into our sweet spot, because right now, we are probably skewed too much on the higher end.”

These and other adjustments are coming as Andersons Stores approaches the first anniversary of its home department relaunch.

“We made it into a more modern destination shop.”

—RICK SWANK, director of

During spring/summer 2012 Andersons Stores conducted a total re-merchandising of home from front to back. The effort involved vastly enlarging the space allocated for soft and decorative home goods.

“Top-of-bed was probably was one of the biggest expansions for us, taking it from nowhere to where we are today,” Swank said. “Before we were just buying promotional deals, and we had maybe only 60 lineal feet dedicated to the category.”

Today, top-of-bed — which comprises utility and fashion bedding — occupies about 24,000 square feet.

“We changed our merchandising approach,” Swank explained. “We were about 96 to 120 feet deep off the center aisle. To get product recognition in the store it was pretty difficult. So we went to a modular format, like [a major home textiles specialty chain] and re-laid out the department so that everything was podded and modular, hence our towel pod, our bath accessories pod.”

Additionally, Andersons made facelifts to the area, including carpeting — “we had epoxy painted floor before,” Swank noted — as well as added better lighting, wire-weld fixtures, lifestyle images and graphics to support the merchandising and other physical touch-ups.

“Basically, we made a signifi-

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PHOTOS: JOEL MASTERS

merchandising

cant upgrade from what we were before in this area,” he summed.

“We made it into a more modern destination shop.”

Andersons Stores is a division of parent The Andersons Inc., a diversified company rooted in agriculture. Founded in 1947, the company’s North American businesses include the grain, ethanol, and plant nutrient sectors, railcar leasing, turf and cob products, and consumer retailing.

The Andersons Stores carry a wide assortment of products for home decor and maintenance, home goods from bedding and bath coordinates and kitchen wares, furniture, mattresses and window fashions gallery, as well as lawn and garden, pet food and supplies, automotive supplies, casual/work clothing, and specialty food and grocery offerings.

“Our concept has always been ‘More for your home,’ and it’s very fitting, relative to what you find in store,” Swank said.

“We’ve got everything from 2-by4s to fine wines. We cover a vast area of retail turf.”

But in recent years, he said Andersons Stores started notic-

ing it was “a bit weaker than we needed to be in home textiles and even some other areas of [decorative] home. We didn’t have space committed to it. But we knew the sales and margin structure there, and we saw [a major home textiles specialty chain] was strong in the business, so it told us something had to be done. We needed to be stronger in those goods.”

In addition, Andersons Stores wanted to add mattresses to its mix, and “by adding mattresses, we realized we needed to expand our top-of-bed assortment within our walls to support it.”

So last year the retailer got busy making adjustments that included exiting some low-margin categories, such as sporting goods and building supplies, and gave that footage to home textiles and kitchen categories.

“We were at 48 linear feet in towels, for example, and now we have 600 to 700 square feet,” Swank noted. “It’s a huge department, definitely a category destination.”

Since the soft home’s retooling last year, shoppers of Anderson Stores “can do their whole

home project within our walls,” Swank continued. “Whether it’s for the kitchen or the bath, we pretty much have everything covered that you need to get the job done.”

Another critical change that was made as part of the soft home remodeling was the hiring of new and experienced talent. Hearn joined Anderson in January after 24 years at JCPenney working in various capacities, including textiles.

She said that while her most recent position was as buyer for furniture for 18 months, prior to that she spent 12 years buying soft home products — “my true love,” she said.

“I was looking [to work] at a place that really cared about its people,” she told HTT. “And this company — if you have ever been here at our offices you would know, you would understand that that is what Andersons is all about. It’s been a very pleasant change.”

And also very different from her previous job. For starters, she noted, “I’ve gone from [buying] for 1,100 stores to four. And here at Andersons, they let me

be the buyer and merchandise all of the different categories I run. Here, the buyer is the planner and inventory manager — everything.”

Added Swank: “Leslie is the expert. As the buyer, she is the business unit manager, responsible for the assortment, the financials, the space and productivity. We work together, reviewing and comparing notes. But as the buyer, she is really accountable.”

Hearn manages 5,500 skus across the softer side of the home business. As she works with Andersons to continue to perfect the store’s soft home business, she has set several goals.

Foremost: “Forging and establishing good relationships with our vendors, to help us grow this business together. In turn, Andersons is a great partner for any vendors because we have great financial standing, which not all retailers can say these days.”

Also in the plan: “Build a strong ‘good, better, best’ strategy to hit all the ranges of the business, and at the same time lure the customer from wine and food to the home side.”

6/5/2013 11:20:53 AM

> hometextilestoday.com

Adopting “a branded strategy” for its new bedding and bath business, Andersons carries products under the J. Queen New York, Croscill Home, Raymond Waites, Tommy Hilfiger, Veratex and other brand and designer names.

But with a heavy tilt on “best” priced products, Andersons is aggressively pursuing a wider pricing structure and with it, a wider range of products.

“We are not high-flying fashion, but we are functional, and we’ve had to get modern and current to compete against biggies — Penneys, Kohl’s, Target, Bed Bath & Beyond, Meijer,” Swank explained. “That is the arena we get compared to as customers make their decisions about where to shop for their home goods.”

Rugs is another home textiles area that is being revamped. The category is merchandised within hard lines — a different area of the store but close by — across from the linens and decorative home areas.

Stocked generously with products from several vendors — including Surya, Oriental Weavers and Dalyn, among others — Swank said, “We are reworking our rug mix to make sure we have the right fashion and variety — the right sizes, styles, colors, and constructions — relative to the overall program and relative to the price points.

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June 10, 2013

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Home Textiles Today

We want to make sure we are merchandised well throughout the category. And most of all, we want to be sure we hit the right price points within the space we’ve dedicated to rugs.”

The rug refresh is part of the retailer’s grander effort to reset its hard lines area — the last section of the store to be remodeled. The project got started about two years ago when Andersons Stores invested in a makeover of its food/grocery business with updates and upgrades to its facilities and packaging.

“It proved successful,” Swank said.

“So then, we moved to the soft lines, and completed that last year. Now we are getting into hard lines with a significant update as part of the final piece of the puzzle, with the same touch we used in food and soft lines — changes to the merchandising presentation, changes in the mixes in the different categories, and just making sure everything in the store is better aligned for the customer.”

With a target date of Nov. 1, Swank said, all of the final fixes to soft home as well as the changes to hard lines should be in place in time for the all-important, end-of-year holiday selling season.

“By time we get to Q4, we plan to be done resetting, making our stores even better than they were before,” he The merchandise presentation focuses on fashion and good/better/best assortments. added. HTT

View our Video mwwsolutions.com

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6/5/2013 11:20:37 AM

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Home Textiles Today

June 10, 2013

News

> hometextilestoday.com

Sales Up, Units Flat in Sheets

BY JILL ROWEN N EW YORK — Sales for sheets

and pillowcases in 2012 grew less than 1%, with sales totaling $2.59 billion for 2012 in HTT’s third and final report on the bedding segment’s performance last year.

But for the most part, industry watchers say the increase was a result of growing retail prices, with unit sales flat overall.

“The volume is in opening

prices points and promotional items,” noted Frank Snow, vp, merchandising, Royale Linens. “We see that U.S. total bed sheet sales were up slightly in dollars primarily due to higher ret ail prices.

Unit sales suffered,” agreed Dan Harris, vp, retail sales, Bari Textile Mills.

Rich Yanowitz, president of Divatex, noted that the overall sheet business was up slightly l a s t y e a r , a d di n g t h a t t h e

SHEETS AND PILLOWCASES

2.59

$

B

10% of the Home Textiles Universe

$26.10B $25.72B 2012 Home Textiles 2011 Home Textiles Universe Universe

Up

1.5%

“Cotton pricing has normalized for the most part, but spinning prices have gone up. Many of the changes such as the growth of growth of blends will remain.”

—DAN HARRIS, Bari Textile Mills

microfiber sheet business continues to do well because “it’s relatively inexpensive, it feels good and washes well.” When it came to retailer’s regular cotton sheet programs, “pricing settled down,” said Yanowtiz, which allowed stores to create sharper promotional offerings.

“Cotton pricing has normalized for the most part, but spinning prices have gone up. Many of the changes such as the growth of growth of blends will remain. Also remaining: the change to microfiber on the low end, which has really affected Pakistani mills at the promotional end of the sheet market,” said Harris. “Poly/cotton blends on 300 thread count and under is a very important part of most retailers’ assortments at the moderate promotional level. Anything over 300

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

SHEETS AND PILLOWCASES Distribution channels 2012 total retail sales: $2,590 million up 0.6% from $2,575 million in 2011 2012

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

Figures have been rounded.

htt130601_010 10

$1,353 $486 $374 $96 $79 $57 $57 $46 $23 $23 $2,590

2011

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

% CHANGE

1.0% 0.7% 0.7% -0.5% -0.3% 0.6% 0.7% -0.3% -0.4% -0.5% 0.6%

thread count should be a quality 100% cotton product in my opinion.” Bari Textile continues to focus on its niche.

According to NPD Group research, the average retail price for sheet sets stayed stable over the last year. Open stock sheet prices did continue to inch up.

NPD also saw open stock items — generally higher-price point products in this category — selling better than sets. According to Debra Mednick, executive director and home industry analyst, NPD Group, consumers are still not readily parting with their disposable income, but when they are ready to buy, they are sometimes willing to “spend on little luxuries.”

According to HTT’s results, Discount stores showed the largest gains within the sheets category. Direct to retail was up slightly, but unlike a more decorative category like top of bed, the internet doesn’t provide the volume numbers for a core category such as sheets and pillowcases.

“The internet is a good way to see what is selling,” said Snow. “But the consumer that is using it is looking for very particular things. It is an interesting barometer of design style.”

“The internet retail business continues to grow at a fast pace.

The challenge is the high risk and expense for the supplier’s side,” noted Harris. “We have committed to it because it will continue to grow in the future.

The internet business is still on a learning curve for many suppliers, including how it affects other customers.”

While the “Made in USA” banner is being bandied about throughout the textile industry, two major players in the sheets and pillowcases category made moves in this area, essentially putting their money where their mouths are. At the most recent New York Market, Ellison First Asia introduced a line of sheet sets that had been completely produced in the United States, from the cotton to the spinning to the weaving to the finishing to cut-and sew. In addition, HTT reported last month that Alok Industries plans to open a spinning mill in the United States. Other suppliers reported that the ‘Made in the U.S.A’ concept is in their sights, with most of them open to doing cost analysis on homegrown products.

The issues causing worry lines: rising cost of yarn and the overall economy. It may be improving, but folks don’t feel ready to spend. According to Mednick, consumers are holding on to their money and making smaller purchases rather than remodeling or redecorating. And issues such as U.S.made goods are certainly not enough to get people to spend money.

“Customers may not care about ‘Made in the U.S.A.’ as much as we’d like them to,” said Scott Howard, svp, sales & licensing, JLA. Business in this category is in transition, not on fire. You have to get customers back into the stores at the end of the day. And it’s not all about the retailers, because some have never looked better.”

Going forward, Bari Textile is focusing on its growing knit sheets business, which Harris says is “becoming an important basic business in the heavier gram weight fabrics with new constructions like heathers, stripes, and plaids.” According to Harris, “Quality at a fair price will always sell. Being diligent about controlling the costs all along the supply chain is critical at being competitive.” HTT

6/5/2013 11:28:05 AM

Lenzing AG, A-4860 Lenzing, Austria

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The fiber can be used in every aspect of sleeping – beginning with mattresses and mattress pads to bed covers and linens, all the way to lingerie.

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Leading Fiber Innovation

1/11/2010 2:37:49 PM

12

Home Textiles Today

June 10, 2013

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> hometextilestoday.com

Safavieh Outdoor Rugs Furnish New Delta Sky Deck at JFK P ORT WASHINGTON , N.Y. — High-end area rug and home accessories house Safavieh has created custom collection of outdoor rugs for Delta to be featured in the airline company’s new Sky Deck at Delta Sky Club at New York City’s John F. Kennedy Airport.

This first-ever outdoor airport terrace for Delta opened its doors on May 24 as part of the airline’s $1.2 billion expansion in Terminal 4 of the airport.

A second Sky Deck at Delta Sky Club is scheduled to open at Hartsfield-Jackson Atlanta International Airport on June 10, and will also feature custom outdoor rugs by Safavieh.

Designer Thom Filicia and Jonathan Yaraghi of Safavieh at the new 2,000-square-foot Sky Deck at Delta This special program is part of Delta Air Lines’ partnerSky Club at the new Terminal 4 at John F. Kennedy International Airport in New York. ship with Architectural Digest and interior designer Thom Filicia, who was charged with developing the decks as distinctive spaces that would be extensions of the Delta Sky Clubs.

For the effort, Safavieh created two 9-by-25 custom outdoor rugs to be included in the 2,000-square-foot JFK Sky Deck, and two additional rugs measuring 10-by-11 and 9-by-17-feet5 inches for the Atlanta airport. Made in Turkey, the rugs are commercially rated adaptations of Filicia’s residential outdoor Chatham rug for Safavieh Couture in Indian Red. “We are honored that our rugs are featured in Thom Filicia’s design for the new Delta Sky Decks,” said Arash Yaraghi, Safavieh principal. “And we are proud to be in the company of the other beautiful furnishings Thom specified for the project. Not only do Delta’s outdoor terraces enhance the luxury travel experience, they are in synch with the growing demand by consumers for elegant outdoor spaces in their own homes.”

HTT

Sleep Studio Becomes Authentic Comfort

Grammy Winner Peter Frampton to Perform at Icon Honors

NEW YORK — Memory foam sleep products producer Sleep Studio

ATLANTA — AmericasMart has

is changing its name to Authentic Comfort. Company officials said that the change more accurately reflects its growing line of Made in the USA comfort products.

“While Sleep Studio is a recognized leader in the specialty sleep category, new offerings are broadening the company’s assortment outside of sleep,” the company said in a release.

Sleep Studio was founded in early 2006 with a focus on innovations in memory foam that offer measureable benefits for the consumer and the environment such as breathability, plant-based ingredients, odorless technologies, personalized support and temperature regulation.

“We believe the name Authentic Comfort accurately represents our core value of providing real comfort for the consumer and her family,” said Michael Rothbard, ceo and president of Authentic Comfort.

The company will begin doing business as Authentic Comfort immediately.

No other changes are planned to its operations, personnel or locations. HTT

announced that Grammy-winni n g mu s i ci a n Peter Frampton will headline the 2013 Icon Honors, which will t ake place July 11 at 7 p.m. at the Atlanta Marriott Marquis PETER during the Atlanta F RAMPTON International Gift & Home Furnishings Market.

Frampton is a celebrated guitarist whose Icon Honors performance will highlight “a spectacular evening created to champion the achievements of those in the

htt130601_012_013.indd 12

gift and home furnishings arena whose passion for what they do is as genuine as the music they will enjoy,” according to an Americasmart press release.

The concert shares the Icon Honors 2013 main stage with the awards presented to home and gift retailers, manufacturers, sales agents and service providers from across the industry.

“Peter Frampton’s inedible mark on music and culture is testimony to the sheer power and passion of his artistry,” said Jeffrey Portman Sr., president and chief operating officer of Icon Honors co-sponsor AmericasMart Atlanta.

“His signature style is unmistakable with a sound and energy that only he can create. Throughout his career Mr. Frampton has pushed the limits of innovation and creative expression, which is exactly what the Icon Honors celebration is all about.”

In addition to AmericasMart, sponsors of the 2013 Icon Honors include the Gift & Home Trade Association and Home Textiles Today parent company Sandow Media.

For more details, visit www. americasmarticonhonors.com.

Tickets and tables are available at www.americasmarticonhonors. com/tickets. HTT

6/4/2013 5:02:18 PM

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> hometextilestoday.com

Home Textiles Today

June 10, 2013

13

Hollander Completes Acquisition Las Vegas Market of Louisville Retail Business Launches Global Goodness Initiative

BOCA R ATON, FLA. — Hollander Home

Fashions has finished its acquisition of Louisville Bedding’s retailer business.

The combined companies will now operate under the name Hollander Sleep Products.

Terms were not disclosed.

“The acquisition boosts our brand portfolio and provides additional manufacturing facilities in North America,

CHRIS BAKER Hollander

expanding our capabilities and enhancing our distribution network. We look forward to combining the best practices of the two companies and maximizing the benefits of the combined organization,” said Hollander ceo Chris Baker.

The deal was announced in mid-April and includes all of Louisville’s retail business. Louisville continues to operate its contract bedding business. HTT

C & F Enterprises Gets Cute in the Kitchen N E W P O R T N E WS , VA . — C & F Enterprises is rolling out Kitchen Cuties, a new line of children’s aprons embroidered with fun sayings.

The colorful aprons come with matching child-sized over mitts and chef hats.

“We wanted to give parents an option that encourages imaginative play patterns,” said Nelson Chow, vp of sales said. “Additionally, the band on the chef hat allows for monogramming, making these aprons great gift ideas.”

The new line offers six styles and will be available in August. The standard retail price is $23. HTT

L A S V E G A S — International

Market Centers has established an awards program that will recognize and celebrate Las Vegas Market vendors that act in a socially responsible manner.

Five companies will be honored with the inaugural Global Goodness awards during the summer 2013 Las Vegas Market, running July 29-Aug.2.

“Many suppliers today understand that good deeds and good business go hand-in-hand,” said Dorothy Belshaw, president of Gift & Home Décor, International Market Centers. “Numerous companies exhibiting in the gift and home décor category at Las Vegas Market offer artisanal, sustainable, eco-friendly and fair trade products that help improve the lives of people all over the world.”

The Global Goodness awards are open to all Las Vegas Market exhibitors, and four honorees will be selected by an independent jury comprised of trade press editors, retail executives and industry experts. To date, the judging panel includes Marcella Echavarria of Surevolution, Caroline Kennedy of HTT sister publication Gifts &

Decorative Accessories, Carol MacNulty with BDH, Patricia Norins of Gift Shop Magazine and Barbara Wujcik of Giftware News. A fifth People’s Choice Award honoree will be determined by popular vote conducted via social media.

Las Vegas Market exhibitors wishing to participate in the Global Goodness initiative should submit essays that describe their personal journey, outline the socially responsible products that they offer and demonstrate how those products and the sourcing process have had a positive impact on people and communities throughout the world. Essays, which must include both photos and text, are due by June 25.

Submissions should be sent to Cain Brodie at cbrodie@imcenters.com.

Essays from all applicants will be posted on the Las Vegas Market website, and the five finalist submissions will be featured in a dedicated display space on the 11th floor of Building C. The awards will be presented during a recognition reception from 4-5 p.m. July 30.

HTT

NYNow Will Highlight Sustainability WHITE PLAINS, N.Y. — NYNow,

the semi-annual trade show formerly known as the New York International Gift Fair, will celebrate sustainability through a three-part program that includes a juried product display, educational sessions and eco-friendly product design awards.

The display will feature roughly 120 products from 70 NYNow exhibitors as well as sustainable materials and production processes from exhibi-

htt130601_012_013_014_015 13

tors in Artisan Resources, a new companion trade show at Pier 94 that matches artisanal producers with U.S.-based volume importers.

“The trend we’re seeing in eco-friendly products is the use of materials which have previously been overlooked. Makers are still using traditional recycled materials, but are now supplementing them with, for example, papers and other pulp-based materials made from new plant

“The trend we’re seeing in ecofriendly products is the use of materials which have previously been overlooked.”

—ILENE SHAW, Shaw + Co Productions

varieties,” said display curator Ilene Shaw of Shaw + Co Productions.

The “Leveraging Sustainability: Building Your Business While Building a Better World” session will take place Aug. 19, from Noon to 1 p.m. with a focus on how to integrate sustainability, technology and social purpose to reach socially-minded consumers, drive business and accomplish a positive social impact.

A second educational session will spotlight locallymade products that promote sustainability.”Cash-In on the

Cachet of ‘Made in the U.S.A’” will be presented Aug. 17, from Noon to 1:30 p.m.

Tickets for seminars are $20 in advance and $25 onsite. Advance registration is available online at www.nynow.com/programs.

NY Now, the Market for Home & Lifestyle, will run from Aug. 17-21 at New York City’s Jacob K. Javits Convention Center and Passenger Ship Terminal Pier 94. For more information visit www.nynow.com. HTT

6/5/2013 12:44:53 PM

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Home Textiles Today

June 10, 2013

News

> hometextilestoday.com

Home Textiles Sourcing Show Sneak Peek New Resources Making N.Y. Fair Debut

Tie-dye brushed throws from Nontong Fortune Trade Co. Burn-out organza from Shaoxing Chutong Textile

Faux fur throw from Being Cosmos International.

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6/5/2013 4:46:00 PM

> hometextilestoday.com

News

June 10, 2013

Home Textiles Today

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Embroidered bedding ensemble from Yantai Zhonglian Industrial Co.

Tencel tie-dye bed from Yuyue Home Textile Co.

Microfiber and cotton embroidered quilt set from Changzhou HauErRui International

Microfiber bedding from Huzhou Zhenlong Textile Co.

Printed flannel rug from Chanshu Paite Ornamentation

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PEOPLETodaY Home Furnishings Students Awarded Celia Moh Scholarships for 2013-2014 Academic Year HIGH POINT, N.C. — Seven stu-

dents have been awarded Celia Moh Scholarships for the 201314 academic year.

They are: • Hazel Chang, a junior interior design major at Appalachian State University; • James Ellis, a junior in the industrial design program at Appalachian State University; • Stacy Folker, a junior furniture design major at Kendall College of Art & Design;

HAZEL CHANG

• Casey Gloster, a junior industrial design major at Appalachian State University; • Sarah Kakol, a senior home furnishings major at High Point University; • Catherine Ruvolo, a senior studying interior design at High Point University; • Angela Truehill, a senior majoring in interior design at East Carolina University.

The scholarships cover fulltime tuition and fees as well as

CATHERINE RUVOLO

CASEY GLOSTER

room, board and books. In addition, the scholarship hosts and annual networking trip to the High Point Market along with internship and career guildance.

The program was established in 2001 by furniture industry entrepreneur Laurence Moh, best known as the founder of Universal Furniture and later, Fine Furniture Design, to honor his wife, Celia. Since then, the $3 million endowment has provided 80 full scholarships total-

JAMES ELLIS

STACY FOLKER

ing nearly $3.7 million.

The seven new scholarship recipients join three returning undergraduate students selected as Celia Moh Scholars last year: Evan Fay of Kendall College of Art & Design; and Jessica Rose and Danielle Souder, both studying at North Carolina State University.

For more information about the Celia Moh Scholarship program, visit www.mohscholarship.org. HTT

ANGELA TRUEHILL

SARAH KAKOL

Ramos Joins Bella-Dura N E W YO R K — MJ Ramos has joined textiles mill Bella-Dura as director of Bella-Dura-merchandising.

Ramos brings more than 20 years of experience in textiles and trimming to the new role in the company’s expanded merchandising and design department, “MJ is an exceptionally talented individual with an incredible eye and intuition for design,” said Irwin Gasner, Bella-Dura/ Wearbest ceo. “Her past collaborations have produced many of the best-selling fabrics and trim in production today. We are honored and thrilled to have her on our team and we are already planning some amazing things.”

Ramos began her career at Sunbury Textile Mills. She later created the Highland Court brand, a luxury division of an international wholesaler.

“I specialize in working with textile manufacturers, trimming mills, wholesale distributors and private companies around the world,” Ramos said. HTT

AICO’s Chuck Reilly to Chair City of Hope Group L OS A NGELES — Chuck Reilly,

senior vice president of sales and marketing for full-line resource AICO, has been named chairman of the City of Hope’s National Home Furnishing Industry Group.

He takes over a role most recently held by co-chairs Jena Hall of Jena Hall Associates and Roger Friesen of Casana Furniture.

“Passion is contagious, and Jena and Roger have spread their passion for City of Hope, touching so many and inspiring us all

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to give our time and hearts to such a great cause,” said Reilly, who began his new role in late April.

“Our industry longs for campaigns that unite us for a common cause. Our involvement in City of Hope offers an opportunity to make a significant difference globally in the fight against cancer and diabetes and, at the same time, brings us together as a unified industry striving to better ourselves as a whole.”

The City of Hope is a medical and research institution devoted

to finding cures for life threatening diseases such as cancer, diabetes and HIV/AIDS. Reilly, who previously served on the group’s West Coast Golf & Tennis Tournament committee, will act as a liaison between the City of Hope and industry supporters. He will also assist with the selection of honorees and new volunteers and help unify supporters’ national fund-raising efforts.

Hall and Friesen will remain involved by serving on the industry group’s executive commit-

tee, focusing on national and regional efforts to support the organization. Hall was on the group’s national board for 16 years before becoming co-chair in 2006. Friesen has supported the organization since 2004 and became co-chair in 2008.

Each year, the National Home Furnishings Industry group honors outstanding figures in the industry. This spring it presented its most prestigious philanthropic honor, the Spirit of Life Award, to Michael Amini of AICO and the Goldberg fam-

ily - Neil, Steve and Michael - of retailer Raymour & Flanigan.

Later this spring, it will present the Lifetime Achievement Award for exceptional professional, personal, and philanthropic accomplishments at the West Coast Golf & Tennis Tournament in Coto de Caza, Calif. Larry Harrow and Jason Harrow of Hollywood Bed Frame Co. will be presented with this award on June 10. The West Coast Golf & Tennis Tournament chairman is Rick Powell, president of Ashjer LLC. HTT

6/5/2013 12:51:06 PM

September 22-26, 2013 Fall NY Home Fashions Market Week 7 West 34th Street

For exhibition space, please contact: Joe Carena, Show Manager, jvcarena@gmail.com (203) 329-9553 Warren Shoulberg, Publisher, Home Textiles Today wshoulberg@hometextilestoday.com (917) 934-2876 Ms. Kaushal Shah, Manager, HTT India, kaushal@kaushals.com 91-22 6663 4597

Exhibitor Space Now Open! Reserve Your Space Today!

HTT_GHS8 tab.indd 1

5/23/13 3:47 PM

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Home Textiles Today

> hometextilestoday.com

June 10, 2013

BUSINESS TodaY Fred’s Inc. Post Mixed Bag of First-Quarter Results M EMPHIS, TENN. — Sales came

in flat, and comps retracted in the first quarter, but net income proved a highlight for Fred’s Inc. during the regional chain’s first quarter.

Fred’s net income increased 9.1% to $11.4 million, from $10.5 million in the first quarter, which ended April 28.

Earnings per diluted share grew 10.7% to 31 cents compared to 28 cents.

Total sales were essentially flat — up a modest 0.2% — to $501.5 million from $500.5 million for the same period last year. More challenged were comps, which declined 1.3%

versus a decrease of 0.4% for the first quarter last year.

“We are very pleased with our first-quarter results, which topped the high end of our earnings guidance for the period,” said Bruce A. Efird, ceo.

These improvements, he continued, “reflected the immediate impact of our recently launched reconfiguration plan, as we outperformed in gross margin results and expense management. Given the unusual weather conditions that affected top-line growth during the quarter, our team’s ability to control expenses was one of the primary reasons we were at the

high end of expectations.”

Efird added “aggressive” plans are in place for 2013, including the “reconfiguration plan targeting pharmacy department growth, expanding our specialty drug program, and rolling out our expanded auto and hardware program.”

Fred’s is also continuing to update and refine its new prototypes and launch the test of the destination stores.

Earnings from operations for the quarter are expected to improve in the range of approximately 25% to 75% compared with the same period last year.

HTT

Same-store sales

May Comps Meet Expectations N EW YORK — Same-store sales for May rose

moderate in July, the transitional month ahead of fall restocking and the back-to-school peri-

2.7% year-over-year and 0.6% month-overmonth, in line with projecJohnson Redbook Index tions from the Johnson RedFourth week of May, year-over-year % change book Retail Sales Index.

For the retail sales week WEEK ENDED 5/11 5/18 5/25 6/1 MONTH TARGET ended June 1, comps in the Department stores* 1.9 1.4 1.5 1.7 1.6 1.7 discount channel rose 3.5% Discounters 3.3 2.9 3.4 3.5 3.3 3.3 Redbook Index 2.8 2.4 2.7 2.9 2.7 2.7 while same-store sales in the *Including chain stores and traditional department stores department store segment inSource: Johnson Redbook Index creased 1.7%.

Redbook analyst Catlin Levis credit Memorial Day promotions and pur- od,” she added. chases related to school graduations for boost- Redbook’s preliminary forecast for June is for year-over-year comp growth of 3.0% and a flat ing sales in the month’s final week.

“Seasonal demand is expected to continue a month-over-month change against May.” to drive business through June, but will likely HTT

Big Lots QUARTER FROM PAGE 2

fixtures, new flooring, repaired ceilings, new doors, improved lighting, and new signage. The effort is being expanded to stores in four states over this summer.

U.S. operations results for the first quarter included: Consolidated income from continuing

htt130601_002_018 18

operations of $32.3 million, or 56 cents per diluted share; net sales of $1.27 billion, up 1.0%; and a 2.9% decline in comparable store sales.

The home category posted comps that were down in the mid-single digits, and Big Lots expects the trend to “remain difficult and promotional to make room for new prod-

uct” this fall.

First quarter results for Big Lots’ Canadian operations included: a net loss of $4.4 million, or 8 cents per share nonGAAP, versus a net loss of $6.1 million, or 9 cents per share non-GAAP a year ago; a 13.5% increase in net sales to $36.6 million; and a 13.2% gain in comps. HTT

Costco Q1 Results Sing I SSAQ UA H , W A S H . — Costco

Wholesale Corporation posted a 19% increase in net income in the first quarter, along with strong comp gains and sales growth over the 12 weeks as well as year to date.

Net income hit $459 million, or $1.04 per diluted share, compared to last year’s $386 million, or $.88 per diluted share.

Quarterly net sales were up 8.0%, to $23.55 billion, compared to $21.85 billion. And comps grew 7% in the U.S. division, 7% internationally and 7% for the total company, excluding negative impacts from changes in gasoline prices and foreign exchange rates.

Year to date, net income jumped 29% to $1.42 billion, or $3.23 per diluted share, compared to $1.10 billion, or $2.50 per diluted share, last year. The company said these results were positively impacted by a second quarter $62 million, or $.14 per diluted share, tax benefit in connection with the portion of the special cash dividend paid in December 2012 to the company 401(k) plan participants.

Net sales for the first thirty-six weeks increased 8.0%, to $71.10 billion, from $65.54 billion last year. And comps grew by 6% in the United States, internationally, and for the total company. HTT

Online Retailer Inmod.com Acquires Chiasso Assets

BY CLINT ENGEL FAIRFIELD, N.J. — Online modern home furnishings retailer Inmod.com has acquired the Chiasso trademark and domain name from the previous owner, who shut down the Chicago-based home furnishings business.

The purchase price was not disclosed. Chiasso’s online store was closed earlier this year and traffic to that domain name is now being redirected to Inmod’s website, with a welcome message and discount offer.

The Chiasso name will be “preserved and used,” said Inmod.com E-commerce account manager Ashley Tinter, though the company declined to provide details. More information about the acquisition will be disclosed in the third quarter, she said.

Chiasso once operated more than a dozen stores and had annual revenues of $20 million, according to Inmod.com.

It was later acquired at a bankruptcy auction by Chris Segal son of Crate & Barrel founders

Gordon and Carole Segal - and Greg Kadens and was operated

by Chiasso Acquisitions until the announced closure earlier this year.

“In a sea of online competition, we have always held Chiasso in the highest regard,” Alan Finkelstein, co-founder of the Fairfield, N.J.-based Inmod. com, said in a release.

“They were instrumental in revolutionizing the way people shopped for furniture and brought validity to the idea of experiencing and purchasing it online. They did it before anyone else did, and they did it better than most.”

Casey Choron, Inmod cofounder, said the company acquired the brand assets from Chiasso Acquisitions “to honor the Chiasso identity and its customers because it’s our wish to carry on their tradition of providing its customers with stylish design at great prices, backed by excellent customer service and an impeccable reputation, which are core values of the Inmod brand.” HTT

6/5/2013 11:25:23 AM

ACME HOME TEXTILES CO.

D E S O CLEXT MARKET

N l i t ‘

Do you really want to be in front of your customers for only 2 weeks a year?

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Home Textiles Today

June 10, 2013

News

Bemz Branching into Window Treatments LM , SWEDEN — Bemz, best known for its custom-designed covers for Ikea sofas and chairs, in August will introduce made-to-measure curtains in a range of designs.

The curtains from Bemz will be available in four made-to-measure styles: with tabs, pencil pleats, eyelets or rings; and two flexible sizing options: readymade, in four standard sizes that fit the most common window sizes, or made-to-measure, in narrow panel curtains or full size lengths.

“Our new line of curtains is a fantastic addition to the Bemz range of products and a unique offering for our customers,” said Lesley Pennington, founder and ceo of Bemz. “Bemz is making designer décor more accessible to savvy, quality conscious customers, who wish to express their personal style in the home and surround themselves with things they love.”

Customers will be able to choose curtains in more than 200 fabrics, including Designers Guild, Marimekko, Strömma, Viola Gråsten and more.

Curtains are made of natural materials and are machine-washable. HTT

Bemz curtain fabric in Candy Pink Panama Cotton

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Sheex

Sheets, top-of-bed and utility bedding components make up Sheex’s core business.

SHEEX FROM PAGE 1

“We are in full design mode with these products,” said Susan Walvius, co-founder of Sheex in conjunction with her business partner, Michelle Marciniak. Formerly University of South Carolina women’s basketball coaches, both women left their day jobs in 2007 to create what they claimed to be the world’s first luxury bedding made from performance athletic fabrics. Since then, Sheex has been endorsed by the National Sleep Foundation as well as many professional athletes.

The first Sheex bath collection could hit retail “as early as January 2014,” she added, and will include performance products — namely, cooling towels and quick-dry towels.

“Everything we develop for Sheex has a unique function while marrying the fashion side of it. It is very high function with simple design for the high-end market,” she said.

This latest project comes on the heels of Sheex’s launch in January of its newest product category addition — sleepwear/ loungewear.

“Our sleepwear was actually designed to work with our bedding to keep you more comfortable, with air flow, air circulation,” Walvius said. “Our fabric is very breathable and slowly releases heat. The bedding and the sleepwear form a system to release trapped heat and improve sleep quality.”

Sheex sleepwear/loungewear pieces are made using the same performance, athletic-inspired fabrics employed in the com-

pany’s sheets. They are currently sold through the company’s website — www.sheex.com — but the plan is to roll it out this year at other retail venues.

Among those would be Sheex’s new retail shop concept.

Along with the new products in the queue in the coming year is the opening of a Sheex-branded luxury linens shop in 2014 in Southern California, where the company has experienced some of its strongest sales.

The store would carry an exclusive line of Sheex products, consisting of the company’s highest-tier assortments within all of its current product categories.

These include sheets, pillows, duvets, duvet covers, pillowcases, shams, mattress pads and comforters as well as the sleepwear/ loungewear pieces.

To support the growth, Sheex is at the same time ramping up its marketing initiatives with a soon-to-come, “very aggressive” campaign that will at first be tested regionally — likely the Charlotte, N.C. market — in time for the fourth quarter holiday selling season.

“We plan to learn what we can from that effort, and then take it from there,” Walvius said.

Social media is part of this effort. Sheex’s Facebook fan count recently hit an encouraging 65,000, Marciniak noted.

“Our customer includes this high-tech generation, a younger consumer who has an affinity for an athletic lifestyle. For them, it’s about sexy, edgy, cool,” Marciniak continued.

These consumers, she added,

“talk about sheets.”

“It’s a generation of consumers who understand our products,” Walvius added. “It’s a generation that understands and prefers performance fabrics because they want the best technology they can find,” whether it is for communication or comfortable living.

Marciniak and Walvius said Sheex products are made of a specially-developed performance fabrics that “breathe three times better than cotton,” based on research and testing conducted by North Carolina State University. For that reason, the products offer “fashion with function,” helping its users to achieve sounder, longer sleep at a higher comfort level.

“Cotton traps heat, and heat disrupts sleep,” Marciniak explained. “We’ve done a lot of research and we’ve found that sleeping cooler helps you get a deeper sleep.”

Ultimately, Walvius and Marciniak explained, their growth strategy centers on comfort.

“We’re creating a new category that goes from 8 p.m. to 8 a.m.,” Marciniak said. “So, when you come home at night and ask yourself what you want to change into to be comfortable, we want Sheex to be the brand you hang out in, the one you sit back and have a glass a wine in and relax.”

Added Walvius: “We want Sheex to define what you sleep in, sleep on and sleep under. It’s our concept of comfort. We want to be the brand that provides that solution.” HTT

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Home Textiles Today

Feathers SPECIALTY FROM PAGE 7

of having them go on the smartphone after they leave our store to find out who else has a private sale or is offering a coupon for same goods, we are now able to offer our own Feathers-branded collection that they know and trust, and they feel good about the service and commitment we give them.”

The top-of-bed category “is where we show our fashion,” he said. “It’s how we can knock people out when they come in the store. And that is our goal — knock them out with gorgeous top-of-bed duvets and coverlets and shams.”

Mulert said that over the store’s many years in existence, it has carried a lot of vendors. “We’ve tried pretty much everybody. I’ve

June 10, 2013

been around so long, we’re very knowledgeable here about products in better bedding.”

Key vendors include Yves Delorme, Schlossberg, Sferra, Anichini, SDH, Missoni, and Scandia. Their products are merchandised on the store’s four display beds and in other vignettes throughout the 1,500-squarefoot floor plan.

Accounting for about 60% of Feathers’ total business, bedding is “still our bread and butter,” Mulert said. “And we’re working now toward building a narrower assortment of top of bed that is fashion driven and focused.”

Other segments, by dominance in sales, include: bath at about 12%; lingerie/loungewear at about 10%; and the remaining 18% comprises table lines, rugs and the fledgling furniture business.

Feathers has lately experi-

News

enced high growth rate in the luxury lingerie and loungewear business. Originally, Feathers only carried robes, but then two years ago Mulert layered in some fashion sleepwear, lingerie and loungewear items, like tunics.

“It’s growing quickly,” he said.

Vendors and brands include Pluto, Yves Delorme, Gretchen Scott, John Robshaw and Yala Designs.

Rugs and furniture also represent newer business segments for Feathers, as Mulert looks to remain relevant to its customers and new high-tech generations of shoppers.

Helping him move into these segments was Company C. “We started out with their sheet sets and duvet covers in 2007, and as they have expanded into furniture, we have added their furniture to our mix,” he

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explained. “We also included some of their rugs. That has helped us expand into these categories.”

Feathers also carries rugs from Surya.

Aside from Company C, Feathers’ only other furniture source currently is Matouk for new upholstered headboards.

These pieces are featured on the four display beds.

Finally, in time for the season, Feathers has added yet another category — melamine casual outdoor tabletop from Le Cadeaux.

“We’re doing very well with it so far,” Mulert said. “It hits a lower price point than we normally carry, but it is the only hard tabletop product we have right now.”

Marketing is also an area Mulert is giving attention, accelerating Feathers’ social media

activity and expanding its online presence.

“The most significant change that I have witnessed in 29 years of purveying fi ne linens and down [bedding products] is the competition from online sales. Wholesalers sell directly to my customers. Their ability to provide the quickest fulfillment to a customer gives them a huge edge in providing better service. Typically, the first place an informed customer searches is the brand’s website,” he said.

Feathers is responding by improving online capabilities, adding product categories, taking advantage of ‘private’ sales that a vendor may offer and cultivating customer relationships.

“In other words,” said Mulert, “a retailer must be the best purveyor of their goods on the planet.” HTT

CLASSIFIEDS HELP WANTED Full-time Experienced Sales Manager Established Home Textile Import company with permanent showroom in NY is looking for an experienced sales manager. Experience selling to mid-tier large national accounts is preferred. Please email resume to: hr.centralnj@gmail.com

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Home Textiles Today

June 10, 2013

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May Proves a Challenging Month for Fred’s MEMPHIS, TENN — Despite unseasonable weather conditions, Fred’s met its modest sales expectations in May. For the four weeks, ended June 1, Fred’s total sales inched up 0.2% to $152.4 million, and comparable store sales decreased 0.5%, compared with an increase of 1.3% in the same period last year.

Year to date, total sales increased

0.2% to $653.9 million, and comps decreased 1.1% versus an increase of 0.1% for the year-earlier period.

“May comparable stores were consistent with the outlook we shared last week in connection with first quarter results,” said Bruce Efird, ceo. “Unseasonal cool and wet weather in May continued to have a negative impact on lawn and garden merchandise,

summer toys, and other seasonal departments. Additionally, the sales impact of the ongoing brand-to-generic conversion in the pharmacy department more than offset continued growth in script counts.”

As a result, Fred’s estimates that the shift reduced total and same-store sales for the month by about 200 basis points. HTT

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Stein Mart’s May Sales Again Led By Linens JACKSONVILLE, FLA. — Linens continued to be a key driver of both sales and comps for Stein Mart in May. The 262-unit off-price mid-tier department store chain saw its total sales for the four weeks grow 3.6% to $107.3 million. Comps jumped 8.2%.

For the 17-week year-to-date period, sales rose 3.7% to $428.7 million and comps grew 2.9%.

Linens along with ladies’ casual sportswear, ladies’ boutique and ladies’ career sportswear posted the strongest sales for the month, the company reported.

Geographically, sales increased in every state, with Southeastern units performing better than the chain and Northeastern stores performing slightly lower. HTT

Macy’s Expands Presence in Puerto Rico N EW YORK — Macy’s Inc. has announced its plans to open a new store in Ponce, Puerto Rico by fall 2015.

The two-level, 150,000-square-foot store will be located in Plaza Del Caribe, the largest mall in southern Puerto Rico, owned by Empresas Fonalledas. It marks Macy’s second unit on the island — the first of which opened in 2000 in San Juan’s Plaza Las Américas mall.

The Ponce store will include home as well as apparel and accessories for women, men, and children, all tailored to the preferences of Puerto Rican consumers.

“We look forward to the opportunity to serve the large and dynamic market in southern, central and western Puerto Rico,” said Peter Sachse, Macy’s chief stores officer. HTT

Costco Posts Strong Results in May ISSAQUAH , WASH. — Costco Wholesale Corp. reported strong results for May, with increases in both sales and comps.

Net sales rose 7% to $8.13 billion the four weeks ended June 2.

Excluding changes in gasoline prices and foreign exchange rates had negative impacts on comparable sales for the four-week period, comps rose 5% in the U.S., 7% internationally, and 6% for the total company.

For the thirty-nine weeks, Costco reported net sales of $77.13 billion, an 8% increase. Excluding “immaterial impacts,” comps rose 6% in the U.S., 6% internationally, and for 6% the total company. HTT

Belk Sales up, Profit Squeezed in Q1 C HARLOT TE , N.C. — Familyowned Belk department stores saw a tidy sales increase during the first quarter, but promotional activity contributed to lower year-over-year net income.

Net income for the quarter ended May 4 tumbled 32% to $28.2 million. In addition to lower merchandise margins, the bottom line was impacted by high expenses associated with strategic investments.

“While those investments will increase our expense in the short term, we expect them to generate strong future returns,” said Tim Belk, chairman and ceo.

Sales rose 5.1 percent to $956 million. Comps climbed 5.2%,

the company’s 13th consecutive quarter of same-store sales growth. Leading merchandise categories included ladies accessories, cosmetics, fine jewelry, men’s and kids.

Ecommerce sales jumped 67% and positively affected comparable store sales by 1.6%.

Belk plans to open new flagship stores in 2014 at the Galleria in Dallas, Texas, and Bridge Street Town Centre in Huntsville, Ala. It also plans to expand existing stores in Flowood, Miss., Greensboro, N.C. (Friendly Center), and Mt. Pleasant, S.C. and convert them to flagship stores over the next two years.

HTT

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