Monday, June 6, 2011
THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY
The Best Retail Money Makers in the Business BY ARTHUR ZACZKIEWICZ NEW YORK — When it comes to retailing in the current climate, bigger is not always better. An analysis of the key publically traded retailers tracked by Home Textiles Today revealed perf o r m a n c e d o mi nance by off-price Ross Stores Inc. and the TJX Cos., which nabbed the No. 1 and 2 spots, respectively. Coming in third was specialty home goods retailer Bed Bath & Beyond Inc., with Family Dollar Stores Inc. claiming the No. 4 slot and specialty retailer Williams-Sonoma Inc. closing out the top tier at No. 5. The retailers garnered their positions via a performance rating composed of five key met-
rics: profit and operating margins (which are measures of profitability); return on assets and return on equity (which are measurements of management effectiveness) and operating revenue growth (which show yearly topline growth). The data compiled reflects the most recent trailing 12-month period — year over year. The data also shows why recent first-quarter results for 2011 came in the way it did, with bumps and misses on the profit line and sagging same-store sales growth, which we’ll get to in a minute. But first, let’s take a closer look at the finish line, which reflects why the off-price segment has been such a sweet spot in the market — at least over the past few years.
The Profit Picture
SEE PROFIT PICTURE PAGE 8
Home a Mixed Bag for Retailers in May N E W YO R K — The month of May, in terms of sales and comps, could be summed up in two words – modest and mixed. Modest because of the mostly humble comp gains seen by 11 of the 13 major retailers tracked monthly by HTT – which ranged from mid to low single digits. And mixed as it relates to the performance of the home department, which at some stores was strong but at others was poor. JCPenney, which was already sore from its 1.0% overall comp
decline for the month, was also hurt by home’s negative numbers. The Plano, Texas-based mid-tier department store explained its home business was hurt by two impacts in the four weeks – the shift of a home mailer from April into May and the elimination of some category promotions that caused declines particularly in the furniture and window covering areas. As a result, JCP’s online home sales were also down. SEE SALES PAGE 18
|
hometextilestoday.com
| Vol. 32, No. 14 | $8.00
BBB: The Beat Goes On BY WARREN SHOULBERG MORRISTOWN, N.J. — On the eve of its annual shareholders’ meeting here later this month, Bed Bath & Beyond’s release of its proxy statement shows a company continuing to operate at the top of its game but intensely aware that the rules of home furnishings retailing remain in constant motion. While all of the financial performance data released in the 68-page document has been previously disclosed, the required filing offers a small window into the obsessively secret company. It shows a company continuing to watch its expenses and one where the “Beyond” side of the house is creeping
up in share of store. One crucial measurement — SG&A, or sales, general and administrative expenses — dropped to 26.7% of sales, a decline of 4.8% versus the 28.5% a year ago and 30.5% two years ago. The company says it achieved this with lower payroll and rent, but also with lower advertising costs. Net ad costs were just under $200 million this past year, down from $231 million and $266 million the previous two SEE BBB PAGE 22
Bed Bath and Beyond continues to operate at the top of its game in an ever-changing retail landscape.
Pioneer Revamps Ahead of Centennial The last time it was fixed up” First Monday: Specialty Retailing was “really PALM BEACH, FLA. — Longsome time in time high-end specialty home 1980s, she recalled, furnishings boutique Pioneer Linens is counting the days until “so we wanted to refresh it give February 2012 when it will be it almost a 50s flair.” celebrating its hard-earned cenThe next phase of the store tennial. revamp project is set for this Preparations are in the summer and tackles the selling works for the Feb. 6 festivities, floor. Plans are still in developwhich Pioneer Linens is plan- ment, but are expected to inning in conjunction with the clude some merchandise shifts, city as one of the area’s oldest Murphy offered. still-in-business storefronts. SEE CENTENNIAL PAGE 10 “We just redid the store’s façade,” Penny Murphy, the third-gener- Inside This Issue ation family business’ HTT Parent Acquires owner and president Material ConneXion ...............................page 2 of Pioneer Linens, A Closer Look at the Pie........................page 4 told HTT. “I want- The Summer of Disconnect ..................page 4 Penny Murphy, ed to give the store a owner and president Pantone Unveils 175 New Shades .......page 6 fresh look and bring CSN Stores Named 2nd Largest it up to date.” BY CECILE B. CORRAL
Online Retailer for Home......................page 22
htt110601_001_020.indd 1
6/3/2011 4:06:26 PM
2
Home Textiles Today
Retail Briefs Dollar General Heads for California
H
aving planted its flag in Arizona and Colorado over the past few years, Dollar General plans to open its first California stores next year. The company is entering three new states this year: Connecticut, Nevada and New Hampshire. California will be its 39th state. Dollar General operates more than 9,500 stores.
June 6, 2011
News
> hometextilestoday.com
Perfect Fit Hires Industry Vets Casali and Tierney CHARLOTTE, N.C. — Utility bedding producer Perfect Fit Industries has hired two industry veterans to jointly oversee its account teams in the United States and Canada. Michael Tierney and Louis Casali Jr. have both been named senior vice presidents of sales and marketing, reporting to president and ceo Dan Hammer.
The company noted that Tierney and Casali collectively bring close to 50 years of home textile industry experience across multiple product categories, and have held top management positions in the past at major companies, including Pillowtex and Dan River, respectively. “Mike and Lou are the ‘best of the best’ in this industry, and we’re
fortunate to have them,” Hammer said. “While innovative product is certainly a key to success in our business, just as important is the ability to service, support and provide guidance to our retail partners. Mike and Lou are experts with proven track records of leading teams to success and we’re all looking forward to working with them.” HTT
Belk Profit up 31%
R
egional department store Belk Inc.’s net income grew 31.3% during the first quarter to $31.9 million. Sales rose 5.6% to $848.6 million, with comps up 5.7%. Top performing categories were shoes, children’s and home, the company reported. Sales growth from ecommerce was “significant.” “As we approach fall, we remain cautious and continue to monitor the consumer impacts of higher apparel prices, especially when combined with higher prices for food and gasoline,” said Tim Belk, chairman and ceo.
HomeGoods opens 1st Manhattan location
H
N EW YORK — Sandow Media,
parent company of Home Textiles Today, has acquired Material ConneXion, a global materials consultancy with the largest subscription-based materials library in the world. Sandow also acquired its sister company, Culture & Commerce, a design management firm. Material ConneXion has offices in New York, Bangkok, Cologne, Daegu (Korea), Istanbul and Milan. It will open an office in Beijing in October to be followed by offices in Shang-
hai and Guangzhou in 2012. By 2017, Material ConneXion plans to operated 10 libraries in China. The company’s international network of specialists provides a global, cross-industry perspective on materials and their potential uses. Culture & Commerce, based in New York, has worked to develop products for retail and hospitality with leading first including Target, Microsoft, Puma, MAC, Rosenthal, Alessi, Cappellini and the Morgan Hotel Group, among others.
“ M a t e r i a l C o n n e X i o n ’s unparalleled expertise in materials, sustainability and design, coupled with it expanding global presence, will bring substantial knowledge to our corporation and greatly magnify our business connections and international reach,” said Adam Sandow, founder and ceo of Sandow Media. “Culture & Commerce’s leadership position at the intersection of the business and design worlds provides a valuable, strategic resource for ourselves and clients.” HTT
Karron, Nagler Among K.I.D.S. Honorees PHOTO: RANDY BROOKE
omeGoods opened its first Manhattan location on the Upper West Side on Sunday, May 22. The two-story, 20,000-square-foot store is located at 795 Columbus Ave. (99th and Columbus). With the addition of this store, HomeGoods has three stores in New York City, including Staten Island and its recently opened Flatbush location in Brooklyn. “We are excited to bring HomeGoods and our off-price concept to Manhattan,” said Richard Sherr, president of HomeGoods. “New Yorkers are some of the savviest shoppers in the country who appreciate great style and value. We know that HomeGoods will be a welcome addition to the area because we offer outstanding prices on highquality home fashions.” HomeGoods merchandise offerings include furniture, rugs, lamps, kitchen and dining, bedding and bath, kids decor, toys, pet goods and storage. HomeGoods operates more than 330 stores across the country and is a division of The TJX Companies, Inc.
HTT Parent Acquires Material ConneXion
Pier 1 Margins Expanded During Q1
P
ier 1 Imports saw merchandise margins expand to 59.5% of sales during the first quarter, compared to 58.6% in the year-ago period. The company said sales rose 9.5% to $335 million. Comps rose 10.2% on top of a 14.3% increase in last year’s first quarter. Company president and ceo Alex Smith said merchandise margins were trending up across all product categories.
htt110601_002 2
At its Fifth Annual Women in Industry Luncheon last week in New York, the K.I.D.S. (Kids In Distressed Situations) organization honored five women who have been big supporters of the charitable group, which aids more than four million children a year. Among those celebrated were, from left, CHF executive vp Joan Karron, Schottenstein Luxury group president Mary Gleason and Beall’s president Lorna Nagler, shown here with Kevin Burke, chairman of the group.
6/3/2011 4:15:34 PM
cornerstone of the home textile market Best Building. Best Rent. Best Tenants. That’s why industry leaders such as Mohawk, Glenoit, Shaw, Oriental Weavers, Welspun, Home Dynamix, Gertmanian, YMF Carpets, Achim Importing, KAS Rugs, Carpet Enterprises, Natco Products, Town & Country Living and Ruia Home make 295 Fifth their home. Make it yours, and you can enjoy these advantages: • More actual square footage for your rental $. 295 Fifth has the lowest loss factor in the home textile showroom market.* Compare our space measurements and you’ll see how you’re paying much less for actual square footage at 295. • The most Market Week traffic. 295 Fifth is the only building to rent exclusively to the home textiles, tabletop and gift industries for showrooms. And we have more than double the number of showrooms than any other building. • Free freight service and more freight cars running full-time, including weekends prior to each Market Week. • State-of-the-art security and 15 daytime employees—twice the staff of any comparable building to keep the building spotless and well-serviced.
Be part of the best for less! Call Lou Lombardi at 212-685-0530. LOU LOMBARDI, President MANHATTAN PROPERTIES COMPANY Owner/Management *according to official REBNY guidelines
295 FIFTH AVENUE • NEW YORK, NY 10016 • 212-685-0530 • ceo295@aol.com
Manhattan Properties.indd 1
3/8/2011 2:28:49 PM
4
Home Textiles Today
June 6, 2011
> hometextilestoday.com
OPINIONTodaY A Closer Look at The Pie
A
S WA SHINGTON POL S W R EST L E over who should or should not be taxed and how much of the pie should be redistributed to which economic tier, Ad Age has released a study that should give everyone in the mass market retail world pause. The top 10% of U.S. households are responsible for nearly half of the country’s purchasing power, leading Ad Age to conclude: “…it’s time to abandon the idea of mass affluence.” Going forward, “the wealthiest households will be the households with significant disposable income to spend.” EDITOR-IN-CHIEF Ad Age does not weigh in on the merits of the trend, but comments: “As the very rich become even richer, they amass greater purchasing power, creating an increasingly concentrated market for luxury goods and services as well as consumer goods overall.” The other 90% of consumers still have to dress their beds, clothe their children and put food on the table, of course. That 90%, according to Ad Age, are set to become increasingly less affluent. As it happened, I read the Ad Age story the same day Dollar General reported its first-quarter results. The retailer’s fastest growing pool of new customers, executives said, consists of households earning $70K and above, with the second fastest growing cohort of new customers coming from the $50K plus demographic. Dollar General’s core customer (under $50K) continues to be enormously stressed financially — to the point that a 15-cent price hike on an item can serve as a deal-breaker, the company’s ceo told analysts. Because of that, Dollar General during the quarter decided to sacrifice margin in order to hold down prices on 228 basic consumable items. Its profit still jumped 15%, but Wall Street didn’t like the whole lower-margins strategy and sent the company’s stock down 7%. Think about that the next time somebody asks how come product has to be de-speced to the point of insanity. HTT
Jennifer Marks
The Summer of Disconnect
I
think it was the former merchandise manager for Stern’s, maybe you remember him — Billy Shakespeare — who said it and boy, was he ever right. Now, indeed, is the summer our disconnect. For the second straight year, we have pinned all our hopes on the back half of the year, starting with the summer to save our collecWarren months, tive economic butts and salShoulberg vage yet another tough fiscal situation. But for the PUBLISHER/ EDITORIAL DIRECTOR second straight year, it’s looking increasingly like that may not happen. There is an enormous disconnect in the marketplace between reality and perception, between sales and profits and between the haves and the have-nots. The summer of 2011 is shaping up to be a doozy in oh so many ways. Disconnect No. 1: Let’s start with cotton and raw material prices, because that’s pretty much where any conversation in the valley of sheets and towels starts these days. Cotton prices are down — way down, in fact — from the insane highs they were hitting early this year, coincidentally right around the spring buying season. That’s good … but not really. Many orders for the second half of the year were placed at those record high levels and now, everyone up and down the food chain is fighting it out on who gets to save a few bucks. It’s not pretty. And let’s not forget that while cotton is as
much as 50 cents a pound cheaper than it was just three months ago, it is still probably 80 cents a pound more expensive than it was two years ago. Where cotton goes next as the world starts to prepare for the fall crop to come in is anybody’s guess. Disconnect No. 2: If you look at retail sales numbers and then talk to vendors about their sales to those retailers, you get the feeling that you are living in two parallel universes. Store comps for the first four or five months of 2011 have been pretty decent. Some stores, like Macy’s, are very decent. Some, like Walmart, are not so decent, but we are not seeing the doubledigit drops we saw during the worst of the 2008 meltdown. Retail is doing OK. Vendors, on the other hand, are moaning and groaning as never before. They continue to bitch about slow ordering, no ordering and basically lame business conditions. They are not just complaining about not making any money, they are saying there’s no business to be had at all. Disconnect No. 3: When it comes to the housing market, if you don’t like the latest statistical report that just came out, don’t worry, there’s another — usually contradictory — one right behind it. We all know the housing market is not what it used to be (if in fact it ever was that in the first place), but exactly where it has settled back into it is largely an exercise in subjectivity. Every time a report comes out saying the market has bottomed out and is starting to inch back up, there’s another one directly behind it saying there’s plenty more downside left to go. Old Billy Shakespeare talked about the glorious times ahead. Obviously he was not in the home textiles business. HTT
What’s new with
HOLLANDER? Hollander Home Fashions presented their new bedding collection at the Hospitality Design Show in Las Vegas. A magnificent display of product with luxurious fabrications featuring various technology that contributes to the hotels success in comfort maintenance.
HOLLANDER l i v e c o m f o r t a b l y®
htt110601_004_005 4
w w w . h o l l a n d e r. c o m
6/2/2011 4:08:47 PM
5
Home Textiles Today
June 6, 2011
> hometextilestoday.com
When the Buyer was King
O
NCE U PON A T IM E when debut it was also policy that they work on their partment stores ruled the retail selling floors every morning. Jody world, their buyers were kings. And At first this mystified me because buyers so it was when I joined Blooming- Bradshaw were so revered I couldn’t understand why they GUEST COLUMNIST dale’s training squad in 1960. were waiting on customers when they could be Note I didn’t say “kings and queens” because out in the market making brilliant buys. When almost all the buyers were men then. I became a buyer, I quickly learned the wisA buyer’s department belonged to him. As dom of it. Since buyers did their own reorderlong as his sales and margin were good, he ing, they certainly knew what was selling; but could do no wrong. He could dress as he liked, only with direct customer contact would they come and go as he liked, and his was the final know what key items they might be missing or word regarding everything in his world. He was how some of their existing wares might be mervirtually autonomous. chandised better or improved. Along with this sovereignty went a commenBuyers learned every aspect of their busisurate amount of responsibility and very busy, varied, and nesses inside and out. Since they often kept their jobs long days. While he did have a staff to implement these for their entire career, some became so proficient, welltasks, the buyer was responsible for: selecting and reorder- known, and regarded that they became living legends. In ing the merchandise, training the selling staff, maintain- domestics, for example, Bloomingdale’s table linen buyer ing his displays and selling floor, signing off bills, taking Hy Bayer was as famous in the industry, both here and inventory — all before PCs and calculators existed to aid abroad, as a movie star. with much of this work. To illustrate the power implicit in being a buyer in Not only did Bloomingdale’s buyers visit one of their those days, let me share a personal story. In my final buythree branch stores every week (part of their kingdom), ing assignment at Bloomingdale’s my domain occupied
Letter
To The Editor Expressing Gratitude
A
s most of you know, our Maples’ community was severely impacted by the tornados which ravaged much of Alabama at the end of April. Many of our employees suffered directly or had friends or family who suffered in different ways – loss of property, loss of possessions, or most horrible, loss of life. Following the tornados, Maples’ management took various measures to help those in need, including the establishment of the Maples Tornado Victims Fund. We are so grateful for the outpouring of support, both monetary and physical, that we have received for our employees from the textiles industry in general, and our suppliers specifically. With your support, the fund is assisting the numerous Maples Rugs employees impacted by the terrible events of April 27. Thank you for your generosity and support of our employees. — Maples Industries, Scottsboro, Ga.
the entire 8th floor of the main store with several departments of lifestyle and casual furniture. One day my boss visited my floor and noticed a merchandise tag was missing. He barged into my office, instructed me to leave the vendor with whom I was working, and join him on the floor. Pointing out the missing tag he ordered me to drop everything, and replace it immediately. I said I would as soon as I finished my vendor meeting. “Now!” he barked, triggering a terrible argument during which I backed my “boss” across the floor and onto the down escalator, where he slowly sank out of sight. I finished my meeting, replaced the tag, and never heard a peep from anyone about my behavior. After all, it was my floor. And this time, the buyer wasn’t king — she was queen! HTT Bradshaw shattered the glass ceiling of male-dominated home furnishings retailing to hold some of the highest merchandising positions at Bloomingdale’s, A&S, and Macy’s as well as being president of Workbench and Conran’s Habitat. After publishing her autobiography Jody, she is finishing The Millionaire Shopkeeper, dedicated to helping independent retailers compete in this challenging environment.
LTM Textiles Opens New Showroom H UNTINGTON B EACH , C ALIF. —
LTM Textile Resources, which produces fabrics for home décor, hospitality and automotive, has opened a new showroom in High Point, N.C. The space is located in the Market Square Tower. During the this week’s Showtime fabric fair, LTM Textile will host a happy hour Monday and Tuesday, June 6-7, from 4 p.m. to 6 p.m., and Wednesday, June 8, from 2:30 p.m. to 4:00 p.m. T h e m a nu f a c t u r e r w i l l also debut its new top-of-theline Beyond collection during Showtime. Available in 150 skus, Beyond features warmer colors, a drier hand and more sophisticated looks. HTT
1•866-456-0405 5l5.247.2984 (outside of US) Update it...Renew it...Change it...Pay for it...Check your Account Status... With the Home Textiles Today Subscription Phone HOT LINE Phone Lines Open 8am and 10pm CST M-F, 8:30am to 5:00pm Sat.
htt110601_004_005 5
Please include your account # in any correspondence. Email: HTTcustserv@cdsfulfillment.com
6/2/2011 4:05:36 PM
6
Home Textiles Today
June 6, 2011
News
> hometextilestoday.com
Acquisition Takes Big Lots into Canada C OLUMBUS , O HIO — Big Lots,
with more than 1,400 stores in 48 states, will enter Canada through the acquisition of Liquidation World, a closeouter with 92 units. “Their home business is a big opportunity,” Big Lots chairman and ceo Steve Fishman told analysts after the announcement. “We think there are some good [home] retailers up there, but it’s still under-penetrated.” He pointed to seasonal, toys and furniture as other small businesses for Liquidation World that Big Lots could help leverage. One-third of Liquidation
World’s stores are under 20,000 square feet; one-third range from 20,000-25,000 square feet; and the first third run from 25,000 square feet. to more than 30,000 square feet, Big Lots executives said. Fishman characterized the markets as “being similar to a more traditional, older Big Lots,” adding the company will evaluate which markets offer the more potential for expansion. The deal, pending approval by the Canadian chain’s shareholders, will include an initial investment of approximately $36.7 million (U.S.), including settling
Liquidation World’s debt and setting up working capital for the business. Fishman said the deal would create opportunities for both retailers’ vendors to expand their business. One analyst noted Liquidation World has been running negative EBIDTA for several years and asked what Big Lots will bring to the table to turn the business around. “We can help with the content of [Liquidation World’s] inventory and access to a vendor base that they have not had had trouble getting to,” said Fishman. HTT
MSLO Looks for Potential Buyer N EW YORK — Martha Stewart Living Omnimedia has retained Blackstone Advisory Partners to examine possible investors or buyers for the company. “As the founder and largest stockholder, I fully support his initiative,” said Stewart. The company has experienced declining revenues for three years – in part a reflection of the difficult advertising environment for print publications
generally as well as the impact of terminating its multi-category licensing partnership with Kmart, which at peak contributed 50% of the merchandise division’s revenues. The company also announced that Stewart will rejoin MSLO’s board of directors during the third quarter. She was forced off the board for a five-year period as part of the settlement in her insider trading case. HTT
Sunbrella Yarn Plant to Feature Solar Energy NORLINA , N.C. — Glen Raven,
Inc., has begun construction of a solar energy installation on the roof of its Sunbrella Yarn Manufacturing Center in Norlina, N.C. The solar array will be the largest under Progress Energy’s SunSense commercial photovoltaic program, generating electric power roughly equivalent to the annual electricity usage of 47 typical homes. T h e $ 3 mi l l i o n p r o j e c t includes replacing the plant’s 175,000-square-foot roof with a highly reflective white roof that will not only enhance the performance of solar panels, but also improve cooling inside the plant. Completion of the solar installation is anticipated this fall. “This project demonstrates how a well-designed environ-
mental program can have multiple benefits,” said Leib Oehmig, president of Glen Raven Custom Fabrics, the Glen Raven subsidiary that operates the plant and manufactures and markets Sunbrella fabrics for awning, furniture and marine applications. “When this project is completed, our plant will have an energy-efficient roof hosting a solar system that will also serve as a long-term provider of renewable electricity to Progress Energy and its customers.” Glen Raven gave the Norlina solar energy project a green light because of several factors that made the project both financially and environmentally feasible — new photovoltaic technology, federal and state tax credits and a commitment by Progress Energy to purchase solar-gener-
ated power. “While conventional solar panels only capture light directly from the sun, the photovoltaic panels we are installing at Norlina Plant are an open grid design, which processes solar energy from 360 degrees, which greatly increases their energy generation capacity,” said John Gant, manager of sustainable development for Glen Raven Custom Fabrics. This project was made possible by Progress Energy’s SunSense Commercial Solar PV program, designed to encourage the development of renewable energy by offering a premium price for solar power developed on commercial rooftops. At 500 kilowatts, the Glen Raven Norlina array will be the largest array under this program. Progress Energy has more than
100,000 kW of renewable energy under contract in North Carolina to help meet the requirements of the state’s renewable portfolio standard. This standard, passed in 2007, requires utilities to generate a percentage of their retail electricity sales from renewable energy resources. “We believe solar power will play an important role in a balanced generation portfolio,” said Lloyd Yates, president and ceo of Progress Energy Carolinas. “We are committed to addressing the challenges of growing energy demand, rising costs and global climate change with a balanced approach that includes investments in renewable energy, energy efficiency and a state-ofthe-art system. ” Glen Raven has operated the Norlina Plant since 1984, and
has a current workforce of 153. “This project at Norlina Plant is just one of many sustainability initiatives throughout Glen Raven,” said Allen E. Gant, Jr., president of Glen Raven, Inc. “We are reducing energy consumption and increasing recycling at all of our facilities. Projects such as this one are not only good business, but good for our associates and the communities in which we operate.” Working with John Gant on the project management team are Todd Wemyss, Norlina plant manager, and Chris Roach, a CPA at Glen Raven. Gupton Roofing of Henderson, N.C., is installing the new highly reflective roof, and Argand Energy Solutions of Charlotte is installing the photovoltaic panels and related controls. HTT
Pantone Unveils 175 New Shades CARLSTADT, N.J. — For the first time in eight years, color
specialist and source Pantone LLC has amped up its Pantone Fashion + Home color system by adding 175 new colors, bringing the total to 2,100 shades. Not since 2003 has Pantone, an X-Rite company, added new hues to its color system. “People have been clamoring for new color,” Laurie Pressman, Pantone’s vp of fashion, home and interiors, told HTT. Its latest additions “reflect today’s global color influences across fashion, home furnishings and interior design [and] enrich the current palette and focus on areas of significant market importance and color trend movement.” “What is key here is it is not just picking colors that are trend-right,” Pressman explained. “The key is that these colors are technically achievable and reproducible in the real world for all of the markets we serve – from fashion and home furnishings to interior and industrial design. Someone really needs to be able to take our colors and
htt11601_007 6
make them a reality.” The 175 new colors are permanent additions to the Pantone Fashion + Home Color System, and all color families were expanded to include: a broader range of nuanced neutrals and midtones; an increased number of vibrant brights; many complex hues with greater depth and intensity; more subdued and smoky variations of popular colors. Vouching for the expanded spectrum is artist and designer Jonathan Adler. “One would think that it would be impossible for Pantone to best themselves, but indeed they have,” Adler said. “I didn’t imagine that there were 175 more colors in the world, but Pantone managed to find them, number them and add them to their already legendary assortments.” HTT
6/2/2011 10:39:09 AM
News
> hometextilestoday.com
C&F Enterprises Launches New Website N E W P O R T N E W S , V A . — To
mark its 35th anniversary, C & F Enterprises has launched a new customer website with over 40 new content sections. at www. cnfei.com. Designed to provide content to C & F’s specialty retail accounts, it features a weekly blog on new product introductions as well as articles on trend and display ideas. Visitors can also subscribe to a monthly enewsletter entitled “Rooms with a View” and sign up for the C & F Facebook page. C &F is also planning a revamped wholesale e-commerce initiative planned for the fall. The company has also added four markets to its 2011 trade show schedule: The Chicago Market: Living and Giving, New York International Gift Fair, High Point Market and Wild Birds Unlimited Vendor Mart. HTT
Ikea Expands Solar Panels CONSHOHOCKEN, PA. — Continu-
ing its greener push, Ikea plans to install solar PV systems on six additional locations in the Eastern U.S. Panels will be installed at Ikea’s Baltimore and College Park, Md.-based stores as well as atop the Cincinnati-area store in West Chester, Ohio. The two Philadelphia-area Ikea stores also will receive solar panels as will the Ikea North America service office here. Ikea already has solar energy systems in: Brooklyn, N.Y.; Burbank, Calif.; Pittsburgh, Pa.; Tejon, Calif. (distribution center) and Tempe, Ariz.; solar water heating systems in Charlotte, N.C.; Draper, Utah; Orlando, Fla.; and Tampa, Fla. Other solar energy systems currently being installed include six locations in California and two on the East coast. A solar energy system and a geothermal system have been incorporated into the Denver-area store opening this year in Centennial, Co. HTT
7
Downlite Receives 4th Consecutive Macy’s Vendor Award M A SO N , O H I O — Utility bed-
ding manufacturer Downlite has been recognized as a Macy’s 2010 5 Star Vendor of the Year Award Recipient for the fourth year in a row. The award is based on quality manufacturing, on-time ship-
ments, support and service for the development of Macy’s private brands and labels. Chad Altbaier, Downlite’s vp sales and marketing, called the award “a testament to the talent, expertise and dedication of our people. Our goal is to deliver the
best products and/or solutions to our customers; we work very closely with the Macy’s team to ensure we are integrated into their design, development and delivery processes.” Downlite has manufactured Macy’s basic bedding since
1992. “This is a great honor for us and the company as a whole is proud of the recognition our customers are giving to us for the service we are providing to them,” said James Lape, ceo. HTT
July 19 – 21, 2011 Javits Convention Center New York, NY HomeTextilesSourcing.com/HHTT Register Online Now!
The only sourcing event in North America solely focused on fabrics and finished soft goods for all home applications.
MesseFrankfurt.indd 1
htt11601_007 7
Home Textiles Today
June 6, 2011
4/14/2011 3:44:50 PM
6/2/2011 5:27:25 PM
8
Home Textiles Today
June 6, 2011
News
> hometextilestoday.com
The Best Retail Money Makers in the Business A new exclusive HTT study identifies which retailers perform the best when it comes to the bottom line. PROFIT PICTURE FROM PAGE 1
For some perspective, roll back two years when consumers got pummeled by macroeconomic woes that centered on less household income and a poor job outlook. As a result, shoppers tightened their belts. But they managed to sock away some money in their savings accounts, and when it came to spending they honed their shopping skills. That’s when trouble hit the retail market. Consumers prowled for bargains and deals, and the results were mixed at retail except for the off-price players and some of the crafty specialty folks such as Bed Bath & Beyond that positioned themselves smack in the sites of the bargain hunt while retailers such as WilliamsSonoma (with its cadre of loyal shoppers) expanded its e-commerce business to new, deeper levels. In the latter half of 2010 — as a Bull Market raged on Wall Street — consumer confidence returned. Holidays sales were better than expected. Pent-up spending was released. In the home space, Pottery Barn and HomeGoods shared equal attention for shoppers looking to dress up the house. But most of the smart and savvy shopper habits remained, which is
why the companies that managed their inventories well and ran their businesses with machine-like precision scored well. Add to that a desire by consumers to get top brands at a discount, and it becomes clear why the off-price players are some of the best performers in the industry. From here, it’s hard to pin down who will fare best. Wall Street is knee-deep in transitioning into a Bear Market — or so the pundits say. Meanwhile shoppers face higher energy costs (gasoline and home energy) and inflationary pressure on their food bills, among other factors — all of which has left shoppers jittery to say the least. Brian Sozzi, senior retail analyst at Wall Street Strategies, said in a recent research note that “not all retailers win in a trade-down movement.” He’s talking about a seismic shift in consumer spending. “I can just sense the changes the consumer made in terms of purchase habits [in April] — an analytical intangible you pick up along the way,” Sozzi pondered. “Who offers the best weekly food values? Where do we go to get the best price on a splurge? These questions were generally off the table in 2010 as rising confidence
The Profit Picture
1
3
htt110601_008 8
and merchandise deflation made it less of a discussion worth having.” But now, egads. Sozzi and other experts warn “never to bet against the U.S. consumer.” “That old adage was tucked away in the memory banks in 2008 and 2009,” Sozzi said in his report, “but has begun to resurface as the consumer has spent more freely. Is there sufficient data to support a bearish bet on the consumer during the summer months? I think the April retail sales report showcases the stress on the average U.S. household from mounting cost of living increases, and therefore stock selectivity where companies have outsized consumer exposure remains key to success.” Those are disconcerting words if you are a retailer sitting on a load of inventory right now and your stock price is stuck in the middle of your 52-week high and low. Even as fuel prices inched up slowly in the first quarter of this year, consumers remained confident but cautious in their spending. “Retail sales in very discretionary categories, say sporting goods, health and personal care, furniture, and electronics have started to transition from solid recovery in 2010 to mixed or weakening trends,” Sozzi added. “The lag effect is obvious when drilling into the data. To me, the retail sales reads [year-to-date] depict a consumer that is cognizant of the factors nipping away at wages and the payroll tax credit funds, as well as being mindful of
4
6
5
7
the downside of spending with reckless abandon circa 2007.” Time will tell if the summer doldrums rip away at the retail market. In the meantime, it pays to look at some of the firstquarter results to gauge how the market is positioned for the next two quarters. In its most recent quarterly report, Ross Stores — our top performance hero — delivered stellar results with home goods a key category. The company said home, dresses and footwear were its best categories with single to low double-digit sales increases in these segments. Meanwhile, total sales and earnings per share came in better than expected — despite difficult year-over-year comparisons, said vice chairman and ceo Michael Balmuth during a conference call with analysts. Earnings per share swelled 28% on sales that gained 7% to $2.1 billion. Noteworthy was that management said it is well-positioned as it continues to get access “to increasing availability of product in the marketplace.” Excess inventory in the market is pure gold for off-pricers. “We’re seeing sizable amounts of product in the marketplace,” Balmuth explained on the conference call. “We don’t know if it is directly attributable to the price increases or to sales not materializing to the degrees of forecasts. But it’s a very good buying market out there, as our pack-away models show.” Just to clarify, Ross’ pack-away model is seen as risky to some analysts who have
6/2/2011 5:42:52 PM
News
> hometextilestoday.com
9
Home Textiles Today
June 6, 2011
BEST AT THE BOTTOM LINE RETAILER
1. Ross Stores Inc. 2. The TJX Cos. 3. Bed Bath & Beyond Inc. 4. Family Dollar Stores Inc. 5. Williams-Sonoma Inc. 6. Dollar General Corp. 7. Kohl’s Corp. 8. Wal-Mart Stores Inc. 9. Target Corp. 10. Macy’s Inc. 11. Stein Mart 12. Bon-Ton Stores 13. Dillard’s Inc. 14. J.C. Penney Co. 15. Sears Holdings Corp.
TOTAL PROFIT MARGIN
OPERATING MARGIN
RETURN ON ASSETS
RETURN ON EQUITY
7.05 6.12 9.04 4.58 5.71 4.82 6.06 3.89 4.33 3.39 4.13 0.71 2.87 2.19 0.31
11.53 10.53 14.71 7.38 9.50 9.79 10.41 6.06 7.79 7.68 4.60 4.51 5.42 4.84 1.30
19.26 18.72 14.92 12.95 9.88 8.66 8.95 9.09 7.44 5.72 8.07 5.08 4.72 4.19 1.43
44.56 44.73 20.87 28.70 16.21 16.87 13.96 22.07 18.94 16.64 21.60 13.22 8.18 7.38 1.66
OPERATING REVENUE GROWTH RATE
9.49 7.92 11.88 6.29 12.90 10.56 7.10 3.26 3.11 6.45 -3.12 0.40 0.43 1.16 -1.63
TOTAL PERFORMANCE RATE
91.89 88.02 71.42 59.90 54.20 50.70 46.48 44.37 41.61 39.88 35.28 23.92 21.62 19.76 3.07
Methodology: The retailers garnered their positions via a performance rating composed of five key metrics: profit and operating margins (which are measures of profitability); return on assets and return on equity (which are measurements of management effectiveness) and operating revenue growth (which show yearly topline growth). The data compiled reflects the most recent trailing 12-month period — year over year. Source: Based on SEC filings, Yahoo! Finance and MarketWatch data from the trailing 12 month periods.
been trained to scorn over-inventoried positions. But as an off-price retailer, one company’s excess inventory is another’s profit. As a result, the pack-away model may continue to bolster Ross Stores in the coming quarters. Pack-away inventory involves off-price retailers buying a large supply of branded merchandise at the end of a season at a steep discount. This inventory is then stored in a facility until the next season.
8
9
htt110601_008 9
At TJX Cos., first-quarter results were good even as the off-pricer faced difficult year-over-year comparisons. Carol Meyrowitz, ceo, told investors and analysts that the sales growth in 2010 was “overwhelming” and will make 2011 comparisons difficult. Still, due to its market position, the retailer will likely continue its love affair with savvy shoppers — especially those who sift through the top brands in its HomeGoods unit.
10
11
For other retailers such as Walmart and Target Corp. in the mass segment and moderate department stores like J.C. Penney, the fickle and unsettled — yet, well-trained — shopper presents a massive challenge. Analysts see lower-income shoppers buying less while middle-income consumers will begin trading down and the excesses and splurges of the higher ranks are expected to subside. It looks like it’s time to batten down the hatches. HTT
12
14
15
6/2/2011 4:43:16 PM
10
Home Textiles Today
June 6, 2011
> hometextilestoday.com
First Monday: Specialty Retailing
Pioneer Linens CENTENNIAL FROM PAGE 1
“Already, we’ve moved the table linens to the front of the store. They had been in the back, but they’ve become more important to our customer,” she continued. Among the headliner brands in the category are Sferra Bros., Yves Delorme and, more recently, and expanded offering of Matouk’s easy-care fine linens and designer Kim Seybert’s contemporary wares. “I would say that we have been working really hard to build up our table linen business because Palm Beach definitely entert ains,” Murphy noted. “In Palm Beach, people want to play golf, entertain, so they may be living a more causal life. We sell a lot of coverlets, but more informal looks
like white lightweight pique styles. We also sell a lot with monogramming and embellishments.” Also in store for summer repairs is repainting and cleaning up the presentation “for a more unified décor. I am hoping I will be able to achieve that, and I’m working with a designer to make it happen.” Pioneer Linens’ journey over the past almost-100 years has had its ups and downs for the four-generation family-operated retail shop — especially in recent years when Murphy inherited the reins at a less-thanillustrious economic time. “We feel [our centennial] is a great accomplishment because statistics say most family businesses don’t make it past the
second generation, plus we’ve been fortunate enough to survive the recession in 2008. We’re still here,” she told HTT during a recent interview. “I feel like we are really lucky to have our loyal customers. I’ve learned that they are the ones who continued to come and purchase from us and allowed us to keep going in these difficult economic times.” Murphy, the granddaughter of Pioneer Linens’ late founder, Max Greenberg, also cited “a couple of other things that made this happen.” She gives much credit to her father, George Greenberg, who she described as “an incredibly dynamic person” who helped teach her the ropes of the family business despite her lack of experience in her early career. “When I was growing up I had no intention of doing this. I
was a kindergarten teacher. I was working for a little school downtown when my dad recruited me in 1994 to do all of the marketing and PR [public relations] for the store,” she explained. “It was a flexible schedule for me. At that time, my kids were all at home, and working for him provided me a flexible schedule to both work and be a mom.” It was her family’s traditional Sunday night dinners that largely provided Murphy the know-how to become president and owner — posts she assumed in August 2007 when her father passed away. “Sunday night was family night — we would always have a family dinner. So my children grew up very close to my family because all of us are here in West Palm Beach. And at these family dinners, somehow the conversation would always turn
to the store and we’d all discuss business,” Murphy recalled. “As that saying goes [roughly], the most I learned about business was at the family dinner table.” Now almost four years into her commanding roles, Murphy recalls her early days at the helm as “a difficult time.” She said she had two matters “going on in my head: The first was that I was the first woman to run this business. My grandfather, Max, was the first and my father, George, was the second. Secondly, I was walking into this from an educational background. I didn’t have a business degree. My dad had done this all of his life, but there were so many things that were just innate to him. Luckily, he was a good teacher.” She admits that there have been “some meat-and-potatoes stuff about this business that I’ve
We can’t promise it will balance a glass of wine but we guarantee you’ll get a great night’s sleep.
REDEFINING COMFORT.
htt110601_010_011 10
6/2/2011 5:51:37 PM
> hometextilestoday.com
been learning as time goes by. But I was really overwhelmed mostly because all of this came to be as the recession started to happen.” In its earlier years, Pioneer Linens was “a destination store in our downtown area,” Murphy said. More than half a century ago, the store’s retail neighbors included heavyweights Burdines, Belk, JCPenney and others. Tough times came in the 1960s, when a new retail concept emerged and “there was a flight to the malls,” she continued, leaving specialty shops like Pioneer Linens looking for inventive ways to retain and attract customers. One critical move that second owner, George, made was to purchase a property across the street from Pioneer Linens and set up a parking lot for its shoppers. “I don’t think we could have survived if he had not done that,” Murphy acknowledged. “We staff it during store hours to help our customers carry packages and watch their cars. It’s a complimentary service we offer.” More struggles came in the 1970s and persisted somewhat into the 80s. But as the economy took a turn for the better in the 90s, “finally, business started to come back,” she said. “Through all
Home Textiles Today
June 6, 2011
11
In anticipation of its centennial anniversary, come February, high-end specialty shop Pioneer Linens is undergoing several renovation projects. The first phase called for a revamped facade, seen here.
these changes we were able to make a comeback.” Giving her the support she needs, professionally and emotionally, are Murphy’s three children — who together represent Pioneer Linens’ fourth generation helping run this family operation.
As her father had done with her, Murphy is exposing her own brood to the business. “My kids worked here in high school, and at home they helped me out with different projects for the store,” she said. “They were always involved with me in the business, one way or another.”
Her oldest child, Alan, “really wanted to get involved,” working at the store all through college. Today, he runs Pioneer Linens’ rapidly growing yacht division. Murphy’s middle child, Marissa, is in charge of the store’s internet and online program. And the youngest,
Camille, is director of marketing and advertising. “My girls seem to really like what they are doing, and because they each have their own niche they don’t step on each other’s toes,” Murphy noted. “I’m really lucky to have them all with me here.” HTT
7W Plans Gift Week Events N EW YORK — Showroom build-
ing 7 W New York has an array of activities planned for Gift & Home Textiles Market Week, which takes place Aug. 12-18. They include: • Shop 7 W First on Friday, Friday, Aug. 12 The first day of the show features promotions and extras specifically designed for early bird buyers, including gift bags and showroom specials. • 60th Annual Retailer Excellence Awards,Sunday, Aug. 14, 6 p.m. to 10 p.m. Attendees are invited to join HTT sister publication Gifts & Decorative Accessories in celebrating the 60th Annual Retailer Excellence Awards The Lighthouse at Chelsea Piers. Finalists will be recognized, retail category winners will be announced and special recognition awards will be presented. As part of the
htt110601_010_011 11
evening, Gift For Life, the gift and home industry’s only charitable organization, will present its 2011 Industry Achievement Award to Michael Aram. In addition, the Lifetime Achievement Award will be presented to 7 W’s Su Hilty, who will be retiring this summer after a 40-year career. Tickets are $150 each and available through www.giftsanddec.com. • Summer Showtime Tropical Cruise, Monday, Aug. 15, 5 p.m. to 8 p.m. 7 W showrooms will sport a cruise theme during an evening of late night shopping with food, drink, and entertainment. • Chart Your Course, Daily Buyers who use the 7 W Showroom Map Postcard to shop participating showrooms can present their card to the showroom for a stamp and turn it in before leaving 7 W. A minimum
of six stamps gains entry into the 7 W drawing for a chance to win a mini-computer. • Showroom Spotlight, Daily Buyers can check out the Spotlight Board upon entering the building for each day’s special events. • Only in NYCFriday, Aug. 12 – Thursday, Aug. 18) Market-goers can enjoy free admission to the Museum of Arts & Design (at 59th St. and Broadway) during Market Week with their summer 2011 badge, compliments of NYIGF, 7 W New York, 41 Madison and 230 Fifth Avenue. Exhibits on view will include: Otherworldly: Optical Delusions and Small Realities; Stephen Burks | Are You A Hybrid?; and A Bit of Clay on the Skin: New Ceramic Jewelry. www.madmuseum.org For more information, visit www.7wnewyork.com. HTT
6/2/2011 5:52:17 PM
12
Home Textiles Today
June 6, 2011
News
> hometextilestoday.com
Matouk Wins SBANE Innovation Award FALL RIVER , MASS. – Home textiles manufacturer John Matouk & Co. received
the Small Business Association of New England’s 2011 Innovation Award. The company was one of 185 nominees, which encompassed the region’s technology, services, retail/distribution and manufacturing industries. “It’s unbelievably gratifying to see our 80 year-old company recognized for innovation,” said ceo George Matouk Jr. “Winning this award is a tribute to our incredible, committed team who work every day to make our company stronger and our customers more satisfied.” Judging was based on four factors: the specific nature of the nominee’s innovation, the social and/or industry impact of the innovation, the company’s rate of growth, and its financial stability. HTT
Matouk’s factory in Fall River, Mass.
NRF: Father’s Day Shopping to be Best in Eight Years W A S H I N G T O N — Consumer
research for the National Retail Federation found shoppers plan to shell out 13% more for the holiday this year than last, and the $106.49 average spend is the highest in the survey’s eight-year history. The Consumer Intentions and Actions Father’s Day survey, conducted by consumer research firm Bigresearch in conjunction with NRF, suggests Father’s Day spending is starting to close the gap with Mother’s Day, for when the average consumer doled out $140.73 this year. Total Father’s Day spending is expected to reach $11.1 billion. “Shoppers seem to be more excited when it comes to gift giving, an encouraging sign for retailers – and dads – everywhere,” said NRF president and ceo Matthew Shay. Most people will buy for their father or stepfather this holiday (50.3%) but others will treat their husband (26.1%), son (8.0%), grandfather (4.7%), brother (5.8%) and friend (5.3%) to something nice. HTT
htt11601_012_013 12
6/2/2011 1:04:06 PM
News
> hometextilestoday.com
Home Textiles Today
June 6, 2011
13
Valley Forge Fabrics Awarded F T. L AUDERDALE , F LA . — Val-
ley Forge Fabrics won the 2011 Earth-Minded Award during the HD Expo hospitality show in Las Vegas for its Tencel+Plus Lyocell Eucalyptus fiber bedding collection, called Living Fresh. Living Fresh debuted two years ago, and the collection
now includes linens, towels, pillow and duvets inserts, mattress pads, protectors and encasements. Tencil+Plus Lyocell products are verified by Tencel manufacturer Lenzing for both commercial performance and fiber origin. At HD Expo, Valley Forge debuted Tencel+Plus Lyocell
Eucalyptus in upholstery fabrics. “ We h a v e s u c c e s s f u l l y brought to market an awardwinning collection that is not only truly sustainable, but provides amazing health and wellbeing benefits as well,” said Diana Dobin, Valley Forge’s senior vp and chief sustainability officer. HTT
From left to right: Ken Koneck, Valley Forge Fabrics; Michael Dobin, Valley Forge Fabrics; Diana Dobin, Valley Forge Fabrics; Deborah Lloyd Forrest, Forrest Perkins; and Michael Adams, Hospitality Design.
Wilson Joins Hollander Home Fashions BOCA RATON, FLA. — Hollander
Home Fashions has appointed Bonnie Wilson vp of sales, reporting to Kay LeGrange, president of sales. “Bonnie is a dynamic sales executive who brings a wealth of knowledge and leadership experience to Hollander,” stated LeGrange. She was previously vp of sales at Perfect Fit Industries. Prior to that, Wilson spent 16 years at Springs, becoming vp of sales. Leading up to that, she served as national sales manager for Springs’ bath division, including Andre Richard, C.S. Brooks, Dundee and Dawson. She was also national sales manager for Liz Claiborne Home. Wilson is based in Charlotte, NC. HTT
Capel Appoints Sales Manager TROY, N.C. — Capel Rugs has named Daryl Peel regional sales manager for its Southwest territory. He brings 20 years of sales experience to the position. Peel comes to Capel with a sales background in upholstery and case goods. He also has experience managing a successful furniture store. Peel is based in Houston and will report directly to Allen Robertson, Capel’s vice president of sales. “His combined experience in home furnishings sales and as a retail manager makes him an ideal candidate for this position,” said Robertson. In his position, Peel will manage sales in Arkansas, Colorado, Louisiana, New Mexico, Texas and Oklahoma. HTT
htt11601_012_013 13
TICKETS ON SALE NOW! SUNDAY, AUGUST 14, 2011 The Lighthouse, Chelsea Piers* | 23 Street & West Side Highway Cocktails 6:30 PM | Dinner and Awards Presentation to follow * Transporation provided from the Javits Center to The Lighthouse
Tickets are $185 per person or $1850 for a table of 10. A portion of the proceeds will be donated to Gift for Life Gift for Life’s Industry Achievement Award will be presented to Michael Aram Gift for Life unites the gift and home industries against AIDS.
Plus G&DA will present a Special Lifetime Achievement Award to Su Hilty of 7 West.
For Event Tickets, visit www.giftsanddec.com or contact Ginny Engle at vengle@giftsanddec.com Sponsored By:
Co-Sponsors:
6/2/2011 1:02:33 PM
14
Home Textiles Today
June 6, 2011
> hometextilestoday.com
PEOPLETodaY Pollack to Head MSLO Merchandising N EW YORK — Industry vet Patsy Pollack has been promoted to senior executive vp at Martha Stewart Living Omnimedia and will oversee the company’s merchandising business. She succeeds Robin Marino and will report directly to Lisa Gersh, who has been named the company’s new president and coo.
Pollack joined MSLO in 2008 to head up the Martha Stewart Living line of home improvement products at Home Depot and the Martha Stewart Collection at Macy’s. Prior to that, she was ceo of Donna Karan Home. She also served as president of Calvin Klein Home, which she steered through its launch in 1995.
“Over the past several years, our Merchandising portfolio has grown and evolved and today enjoys tremendous potential. Leading this dedicated team is an exciting opportunity, and I’m looking forward to continuing to drive results for MSLO and for our terrific group of merchandising partners,” said Pollack. HTT
Feizy Taps Thomasson to Head Design and Product Development D A L L A S — Feizy Rugs has appointed Mitzi Thomasson as its new director of design and product development. She joins the company from the lighting industry, having spent the past 12 years of her career with Savoy House Lighting, most recently as the company’s director
of design and development. Thomasson relocated from Georgia to Dallas to take on her new post at the manufacturer of hand-knotted, hand-tufted and power-loomed rugs. She is responsible for all aspects in the creation and development of Feizy’s Fine and Home collections.
She reports to John Feizy, president and ceo. “Mitzi has been both prolific and influential in her design and product development role in the lighting industry, and I have no doubt that she will do the same for the rug industry” said Leah Feizy, assistant to the ceo. “I am
excited to see how her fresh perspective translates to the world of rugs and other textiles and know that it will benefit us immensely. Her passion for design and her thirst to continue learning and expanding her own horizons were pivotal in the decision to bring her on board.” HTT
Moore Retiring from Home Source ATLANTA — Phyllis Moore has announced her retirement from Home Source International, effective June 1. She has been vp of bed product development/ sourcing.
“Although I am excited about the next chapter of my life, I know I will miss my colleagues, factories, and the wonderful friends I have made in the textile industry,” said Moore.
Downmark Elects President, Directors TORONTO — Downmark of Can- Ontario Pillow Supply, treaada, the country’s down associa- surer; tion, voted Michael de • Ellis Chitiz of la Place another year Westex International as the group’s president (Canada), director; during its annual gen• Freddy Faust of eral meeting here. Down Town Duvets, He is president St. director; Geneve, manufacturer • Sherry Hennessy of down bedding and of Rocky Mt. Down & MICHAEL other home textiles. Feather, director; DE LA PLACE Downmark Directors elected to • Terry Li of Highthe Downmark board land Feather, director; for the coming year include: • Allen Ma of Maholi, direc• Bryan Pryde of Feather tor; Industries, vp; • Spencer Orr of Canada • G a b o r S a u e r w a l d o f Goose, director. HTT
htt110601_014 14
Moore joined Home Source in 2003 after 32 years at Pillowtex under the Fieldcrest Cannon regime, where she was vp product development for all categories. “I have always enjoyed the
home textiles industry and I will never forget the opportunities and support I have been so fortunate to have in an industry that is ever changing and challenging, to say the least,” said Moore. HTT
Charles Levanchy, 88 WEYMOUTH , MASS. — Industry
veteran Charles Levanchy, better known to most as Charlie, passed away on May 3 at home with his family. He was 88. Levanchy started his career in the retail world as a buyer for Denby’s in Troy, N.Y, and moved on to Filene’s in Boston. In the early 1960’s, he then went to work for John Wolfe Textiles out of New York. He traveled the road for Wolfe until he became the national sales manager. His connections there led him to purchase an interest in curtain manufacturer Richmark out of Boston. Over the years, he built Richmark into one of the leading
ready-made curtain manufacturers of the late 1980’s and 1990’s. In 1998 the company was sold to Commonwealth Home Fashions. He was a proud veteran of the US Army serving during World War ll. He also spent time as a professional baseball player in the Boston Braves organization. A former past president and active member of The Boston Curtain and Drapery Club, he touched and impacted the lives of many in the textiles industry. Remembrances in his name can be made to The Friends of South Shore Hospital, 55 Fogg Road, Weymouth, MA 02190. HTT
Safavieh promotes Yaraghi P O R T W A S H I N G T O N , N.Y. —
High-end and designer area rug house Safavieh has promoted Kevin Yaraghi to credit manager for wholesale operations. He reports to Cyrus Yaraghi, the KEVIN YARAGHI family-owned Safavieh company’s principal. Yaraghi joined Safavieh a year ago and has been assigned to several retail division positions as well as developing the company’s recently launched retail website. “Kevin has worked in various capacities and departments at Safavieh during summer breaks through high school and college,” Cyrus Yaraghi explained. “He has been involved in both the front end of the credit department with credit approvals, and back end collections and resolutions. His leadership in these areas will be an asset to both the sales force and customers.”HTT
Founder of TexStyle ,Wayne Crotty, 98 C INCINNATI — Wayne Crotty,
who founded manufacturer TexStyle Home Fashions in 1946, passed away here on May 23. He was 98. “His mind remained sharp to the end,” said his son, Michael Crotty, principal of MKT & Associates. The family sold the business several years ago. In lieu of flowers, memorials may be directed to St. Joseph Home, 10722 Wyscarver Rd., Cincinnati, OH 45241, or Matthew 25 Ministries, 11060 Kenwood Rd., Cincinnati, OH 45242-1816. HTT
6/2/2011 5:21:32 PM
FIRST TIME EVER!
T H E U LT I M AT E C O N S U M E R B U Y E R S G U I D E TA K E A D VA N TA G E O F T H I S U N P R E C E D E N T E D OPPORTUNITY TO REACH THE CONSUMER
I T ’ S A L L A B O U T P R O D U C T. . . P R O D U C T. . . P R O D U C T. FURNISH is a new and exciting way for home f u r n i s h i n g c o mp a n i e s to c o s t - e f fe c t i ve l y c on n ec t w i t h consumer s. 160,000 copi es on newsstands and in book stores across America. Space is filling up fast. Call today
to reserve your spot!
Issue Date: August 2011 Space Closing: July 1, 2011
F O R I N F O R M AT I O N C O N TA C T Y O U R S A L E S R E P R E S E N TAT I V E T O D AY: Publisher/Editorial Director Warren Shoulberg 646-805-0226 wshoulberg@hometextilestoday.com
Associate Publisher Jeff Reeves 336-605-1009 jreeves@hometextilestoday.com
W W W. H O M E T E X T I L E S TO D AY. C O M
Account Manager Mary McLoughlin 646-805-0227 mmcloughlin@hometextilestoday.com
16
Home Textiles Today
> hometextilestoday.com
June 6, 2011
BUSINESS TodaY Fred’s Weathers Storms in 2Q M EM PHIS — Southeastern re-
gional discounter Fred’s Inc. managed a 16% net income gain as well some modest increases in sales and comps in its first quarter despite the harsh weather conditions that plagued the areas served by this chain. “First-quarter challenges included a historic number of tornadoes, flooding and other weather issues that cut across the heart of our markets,” noted Bruce Efird, ceo. “This was on top of more persistent problems, like the significant run-up in fuel costs and ongoing high unemployment.” He added that through it all, Fred’s staff kept stores open during and after the storms. Even so, Fred’s is bracing for potentially deeper impacts on future results as the region works toward recovery. “When we have witnessed
this type of community devastation in the past, markets typically have remained slow for a period of up to 90 days or so, and then average tickets historically have increased as customers recover and regain confidence,” Efird continued. First-quarter results included: a 16% jump in net income to $9.5 million or 24 cents per share compared with $8.2 million or 21 cents per share last year; sales of $484.4 million, up 3%; and comparable store sales up 1% on top of a 2.2% increase for the first quarter last year. Pharmacy continues to be Fred’s core business, occupying the largest share at 33.6% of sales. Home linens and apparel is the 673-unit chain’s fifth largest business, comprising 7.5% of total sales in the first quarter. Home was among the categories that performed better than
planned in the first quarter, Efird noted during Fred’s earnings call late last month. In the second quarter, Fred’s anticipates that May and June comparable sales may trend to a range of 1% to 2% versus an increase of 2.5% in the second quarter last year. Also in the second quarter, Fred’s is expecting total sales to increase 2% to 4%, and earnings per diluted share to increase 8% to 23% to a range of 14 to 16 cents compared with earnings per share of 13 cents in the same period last year. He added that the programs and initiatives now underway “that have proven successful in driving traffic, along with the efforts of our operations team, are keys factors that give us confidence to keep our forecast unchanged for the second quarter and 2011.” HTT
Costco Gains in Third Quarter I SSAQ UA H , W A S H . — Costco
Wholesale Corp. enjoyed double-digit net sales increases as well as single-digit gains in comps and net income during its third quarter. For the 12-week period ended May 8, sales stole the spotlight with a 16% increase to $20.19 billion. Comparable sales were up 6% in the Unit-
ed States, excluding the positive impacts from inflation in gasoline and strengthening foreign currencies. With these effects, U.S. comps were up 10%. Net income grew by 5.9% to $324 million, or 73 cents per share, compared to $306 million, or 68 cents per share, in 2010’s Q3. Year to date, sales were up
13% to $59.46 billion. Results include sales from the company’s 50% owned Mexico joint venture, as Costco began consolidating its Mexico operations beginning with its 2011 fiscal year. Mexico’s sales accounted for approximately three percentage points of the increase for the quarter and the year-todate sales. HTT
Same-store sales
May Sales Hit Their Mark N EW YORK — Aggregate same-store sales
ported strength in merchandise related to school graduation such as women’s wear, men’s wear, footwear and women’s accessories,” said Catlin Levis, Redbook analyst. Redbook’s preliminary target for June is yearover-year growth of 3.3%. HTT
came in on plan, according to the Johnson Redbook. Comps were up 3.9% for the month, with same-stores in the final week of May (ended May 28) up 3.6% overall, with a boost from Memorial Day sales. In the month’s last week, the Johnson Redbook Index department store segment postFourth week of May, year-over-year % change ed a 3.9% comp gain year-overWEEK ENDED 5/7 5/14 5/21 5/28 MONTH year, while the discount channel Department stores* 4.9 3.5 3.7 3.9 4.0 generated a 3.5% gain. Discounters 4.5 4.2 3.2 3.5 3.9 “The grocery division led Redbook Index 4.7 4.7 3.4 3.6 3.9 business at most discount *Including chain stores and traditional department stores stores. Department stores reSource: Johnson Redbook Index
htt110601_016_018 16
TARGET
3.5 4.0 3.9
Cost Plus Calls Cotton “Largest Nemesis” in Textiles Business OAKLAND, C ALIF. — Some textiles product categories in Cost Plus’ home assortment are being hit by inflation costs, forcing the retailer to work harder to re-develop them to meet price points that are palatable to shoppers. While the majority of product costs “are really coming in the forms of freight and increased field charges,” the retailer’s “largest nemesis in certain textile categories continues to be cotton, and so we have had to go back and look at value engineering or revalue engineering in some of our cotton products to ensure the integrity of our everyday value pricing strategy,” explained president and ceo Barry Feld during the retailer’s first quarter earnings call late last month. On the whole, the 259-unit chain has been able to “mitigate and offset a significant amount of commodity pressure as a result of the vendor supply chain that we have established….So we are monitoring and watching and acting accordingly as we see the commodity pressures crop up around the globe, but we’re well organized, particularly with our deep experience with our vendor community, to really deal with this. The main one that puts short-term pressure on the supply chain is the live fluctuations in diesel and bun-
ker fuel.” Cost Plus reported a net loss for the first quarter of of $3.4 million or 15 cents per share, an improvement over a net loss of $10.3 million or 47 cents per share for last year’s 1Q. Sales rose 5.9% to $199.7 million, and comps were up 5.5%. Customer count climbed 6.5% offset by a 1.0% reduction in the average ticket. Analysts asked Feld during the call for an update on Cost Plus’ partnership with Bed Bath & Beyond in three stores, to which he replied, “All I can say is, we have a continued ongoing test with Bed Bath. We’re pleased as the test continues to perform and really don’t have any new news, other than the fact that the test is continuing, and we are pleased at the results thus far.” The retailer’s second quarter guidance calls for sales in the range of $195 million to $199 million, based on a same store sales increase in the range of 2% to 4% compared to a same store sales increase of 6.5% for the second quarter of fiscal 2010. For fiscal 2011, the company expects sales in the range of $946 million to $956 million, based on a same store sales increase in the range of 4% to 5% compared to a same store sales increase of 7.2% for fiscal 2010. HTT
Big Lots Profit Slips in First Quarter C OLUMBUS , O HIO — The home department produced comps in the low single-digit rate at Big Lots during the fist quarter, going up against a strong samestore sales performance in the year-ago period. The off-pricer’s net income from continuing operations for the period ended April 30 was $52.5 million, or 70 cents per share, down 6.25%. The company’s gross margin rate contracted
by 30 basis points ask consumers pivoted toward lower-margin consumables and Big Lots experienced higher freight costs. Sales were flattish — down 0.6% to $1.2 billion – with comps down 3.6%. Chairman and ceo Steve Fishman said of the home department: “We can execute better and we believe this could be one of the better growth opportunities for us.” HTT
6/2/2011 1:17:42 PM
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
June 6, 2011
Retailer Sales SALES FROM PAGE 1
At Minneapolis-based Target Corp., home just added to the discounter’s disappointment for the month. The category’s comps decreased in the low to mid single digits, with the strongest results stemming from stationary and holiday but the worst sales coming from decorative home. “May sales were near the low end of our expected range, driven by a much slower traffic trend in the second half of the month,” said Gregg Steinhafel, Taget’s chairman, president and ceo. “Our guests continue to shop cautiously in light of higher energy costs and inflationary pressures on their household budgets. As a result, we’re focused on delivering more
Four weeks ended May 28, 2011 (dollar amounts in millions) a
WINNERS AND LOSERS Same-store sales % change
WINNERS 7.4% 6.0% 4.0% 3.3% 3.0% 2.8% 2.0%
LOSERS The Bon-Ton Stores Inc. (2.3)% J.C.Penney Co. (1.0)%
10.0%
5.4%
8.5%
2011 year-over-year
7.0%
> hometextilestoday.com
MAY SALES FOR KEY RETAILERS
in that achievement. “Home, ladies’ career sportswear, accessories, and men’s tailored clothing and furnishings posted the strongest comparable sales, while ladies’ special sizes and men’s sportswear post-
Macy’s Inc. Coscto Wholesale Corp. Ross Stores Duckwall-ALCO Inc. BJ’s Wholesale Club Target Corp. Dillard’s Inc. / TJX Cos.
Business
5.5%
BJ’s Wholesale Club c The Bon-Ton Stores Inc. Costco Wholesale Corp. d 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.
2011 SALES
2010 SALES
$952.9 $181.0 $7,140.0 $434.7 $39.8 $143.5 $1,187.0 $1,372.0 $1,937.0 $661.0 $98.5 $4,799.0 $1,700.0
$860.8 $186.5 $6,090.0 $426.5 $38.2 $141.5 $1,228.0 $1,338.0 $1,786.0 $614.0 $98.7 $4,622.0 $1,600.0
TOTAL % CHG.
SAME-STORE % CHG.
10.7 (2.9) 17.0 2.0 4.0 1.0 (3.3) 2.5 8.5 8.0 (0.2) 3.8 7.0
3.0 (2.3) 6.0 2.0 3.3 0.2 (1.0) 0.8 7.4 4.0 0.7 2.8 2.0
TOTAL % CHG.
SAME-STORE % CHG.
13 WEEKS BJ’s Wholesale Club c The Bon-Ton Stores Inc. Costco Wholesale Corp. f 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.
2011 SALES
2010 SALES
$3,722.2 $830.9 $64,750.0 $1,895.5 $154.3 $627.9 $5,130.0 $5,534.0 $7,826.0 $2,736.0 $402.0 $20,379.0 $6,900.0
$3,377.2 $847.9 $57,170.0 $1,858.8 $146.7 $613.1 $5,157.0 $5,373.0 $7,360.0 $2,549.0 $399.7 $19,780.0 $6,600.0
10.2 (2.0) 13.0 2.0 5.2 2.0 (0.5) 3.0 6.3 7.0 0.6 3.0 5.0
2.6 (1.4) 4.0 2.0 3.2 0.8 2.7 1.2 5.9 4.0 1.3 2.2 2.0
4.0% 2.5% 1.0% -0.5% -2.0%
May Same-Store Sales Johnson Redbook Index
-3.5%
a. Reporting periods vary from chain to chain. b.These comp results exclude the impact of gasoline. Including a contribution from sales of gasoline, comps increased in the month by 7.4%. c.These comp results exclude the positive impact from sales of gasoline. Including a contribution from gas sales, comps increased year to date by 6.5%. d.Total sales results in May include sales from the company’s Mexico joint venture; without those sales, the net sales increase would have been 14.0%.
-5.0%
e.These comp results are for the U.S. division and do not include the positive impacts of inflation in gasoline prices and strengthening foreign currencies. Including those impacts, comps for the month of May were up 11% in the U.S. division, 21% in the international division, and 13% for the total company. f. 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 39-week period. Year-to-date comp results here are for the U.S. division and do not include the positive impact of inflation in gasoline and strengthening foreign currencies. Including those impacts, year-to-date comps increased 7 in the United States, 15% in the international division, and 9% for the total company.
MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY Source: Johnson Redbook Retail Sales Average, a unit of Instinet, a Reuters company.
value than ever by offering reliably low prices on high quality, well-designed merchandise both in our stores and at Target. com.” Sales in the home and furniture category “were significantly below trend” at Little Rock, Ark.-based regional department store Dillard’s, even though the retailer eked out a 2.0% overall comp increase. On the flip side was York, Pa.-based The Bon-Ton Stores, which reported the highest comp decline of -2.3% for May but called home one of its “best performing categories.” Jacksonville, Fla.-based Stein Mart reported better results, 0.7% comp gain, for the month, and thanked home for its help
htt110601_016_018.indd 18
ed weaker trends,” the 261-unit off-price mid-tier department store said. “Geographically, May sales were strongest in the Western and Northeast markets.” Home, along with accessories and children’s, outperformed Kohl’s company average, said Kevin Mansell, chairman, president and ceo. But soft home was not credited. Rather, small electrics led the category with double digit increases. Leading the pack in May comps was Macy’s with a 7.4% increase. But home was not mentioned. Instead, chairman, president and ceo Terry Lundgren just said the department store “continued to see very strong sales results in May as every Macy’s
stores region, Bloomingdale’s stores, macys.com and bloomingdales.com all met or exceeded our aggressive expectations. We can attribute this success to the continued crisp execution of our major strategies.” Even with an 8.5% total sales increase to $1.937 billion, it was the company’s online sales from macys.com and bloomingdales. com combined that retained the spotlight, up 37.7% in May and 38.2% year to date. Buoyed by these results, Macy’s updated its second quarter guidance to include a 5% increase in same-store sales, which would calculate to same-store sales growth of approximately 4.5% for the full year of fiscal 2011. Previous guidance was for same-store sales to increase by 4% in the second quarter and
by 4.3% for the full year. As previously noted, year-over-year same-store sales increases in June and July will be lower than in May because of stronger yearago sales in the final two months of the quarter. Costco Wholesale Corp., which came in with the second highest comp at 6.0%, called out domestics as one of the category leaders as well as small electrics. Among the two top off-pricers, the winner was Pleasanton, Calif.-based Ross Stores with a 4.0% comp gains versus Framingham, Mass.-based TJX Cos.’ 2.0 bump up. TJX was “pleased” with the performance of its Marmaxx Group, which includes HomeGoods and Marshalls, as its 4% comp increase showed “continued strong performance…de-
spite the unseasonably cold and wet weather in the key Northeast region. Sales trends picked up as the weather turned warm exiting the month, which bodes well for the important month of June. Further, as we enter June, we are in a great position in terms of the seasonality and quality of our merchandise mix as well as our ability to take advantage of the exciting buys we are seeing in the marketplace,” said ceo Carol Meyrowitz. Ross Stores’ vice chairman and ceo Michael Balmuth described the company’s comparable store sales in May as “slightly ahead of our expectations for a 2% to 3% increase.” It was dresses and accessories — not home — that were Ross’ best performing merchandise categories, he noted. HTT
6/2/2011 5:17:22 PM
YOUR BATH BUSINESS The Spa category is one of the fastest growing areas of the bath business and HTT will have a special report on Spa in the August 8, 2011 issue.
The Report will look at:
• Spa Towels • Bath Accessories • Lotions and Fragrances • Spa Fashions The Special Report will have bonus distribution at the New York Gift Fair and with an exclusive mailing to 1000 Spa Managers around the country. The HTT Spa Special Report is a refreshing way to grow your business. For information on advertising opportunities in the August 8 issue, contact your Home Textiles Today sales representative.
TEXTILES IS OUR MIDDLE NAME Jeff Reeves, Associate Publisher jreeves@hometextilestoday.com (336) 605-1009
HTT_Spa tab.indd 1
Mary McLoughlin, Account Manager mmcloughlin@hometextilestoday.com (646) 805-0227
5/12/11 10:04:05 PM
20
Home Textiles Today
June 6, 2011
News
Calendar
360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com
June
www.americasmart.com
5–8 Showtime Fabric Fair Market Square, Textile Tower, High Point, N.C. (336) 885-6842 www.itma-showtime.com
13 – 15 NeoCon World’s Trade Fair The Merchandise Mart, Chicago (800) 677-6278 www.merchandisemart.com/neocon
13 – 15 American Society of Interior Designers (ASID) National Conference at NeoCon The Merchandise Mart, Chicago (202) 546-3480 www.asid.org/foryou09
31 – August 3 ASD/AMD Las Vegas Sands Expo Center & Las Vegas Convention Center, Las Vegas, (310) 481-7300 www.asdamd.com
August
12 – 14
Las Vegas Market World Market Center and Pavilions Las Vegas, (702) 599-9621 www.lasvegasmarket.com
Domotex Middle East Dubai Airport Expo Centre, Dubai, United Arab Emirates +971 4 337 6072 www.domotex-middle-east.com
13 – 18 New York International Gift Fair Jacob K. Javits Convention Center, Pier 94, New York (914) 421-3200 , www.nyigf.com
22 – 28 Dallas Holiday & Home Expo Dallas Market Center, Dallas (800) 325-6587 www.dallasmarketcenter.com
22 – 28 Dallas Total Home & Gift Market Dallas Market Center, Dallas (800) 325-6587 www.dallasmarketcenter.com
24 – 27 F!NDS Dallas Temp Show World Trade Center, Market Hall, Dallas (214) 655-6116 www.dmcfinds.com
30 – July 3 & July 7 – 10 New Designers Business Design Centre, London 020 7288 6738 www.newdesigners.com
July 13 – 20 The Atlanta International Gift & Home Furnishings Market AmericasMart, Atlanta (800) ATL-MART or (404) 220-2435 www.americasmart.com
15 – 18 (TBD) The Atlanta International Area Rug Market AmericasMart, Atlanta (800) ATL-MART or (404) 220-2437
htt110601_001_020 20
14 – 18 New York Home Textiles Market Week 7 W New York, 230 Fifth Avenue, Jacob K. Javits Convention Center, New York, NY (800) 272-SHOW www.nyhometextilesmarketweek.com
13 – 14 HD Boutique Exposition & Conference Miami Beach Convention Center, Miami Beach, Fla. (770) 291-5400 www.hdboutique.com
13 – 15 Indigo (Home Furnishing Edition) Brussels Expo, Brussels, Belgium +33 (0) 1 70 38 7000 www.indigo-salon.com
14 – 18 Gourmet Housewares Show Jacob K. Javits Convention Center (914) 421-3200 www.thegourmetshow.com
27 – 30 Textile House South America Anhembi Exhibition Pavilion São Paulo (SP), Brazil (+55 11) 2105-7000 www.grafitefeiras.com.br
29 – 31 Intertextil Show Shanghai New International Expo Centre, Shanghai, China (852) 2238 9983 www.messefrankfurt.com/hk
September 9 – 13 Maison & Objet Parc des Expositions, Paris-Nord Villepinte, Paris www.maison-objet.com
10 – 12 Dallas Total Home & Gift Market Dallas Market Center, Dallas (800) DAL-MKTS www.dallasmarketcenter.com
10 – 12
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
10-12 F!NDS Dallas Temp Show World Trade Center, Market Hall, Dallas, TX (214) 655-6116 www.dmcfinds.com
1–5
14 – 16 Licensing International Expo Mandalay Bay Convention Center, Las Vegas (212) 951-6612 www.licensingexpo.com
AmericasMart, Atlanta (404) 220-3000 www.americasmart.com
18 Home Textiles Today Market Kickoff Party 6-8pm the Rooftop and Penthouse of 230 Fifth Avenue 646-805-0226
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, ACCOUNT MANAGER CHINA Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER NORTHEAST/MIDWEST/ WEST COAST/CANADA Mary McLoughlin (646) 805-0227 | mmcloughlin@hometextilestoday.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 swhittle@sandowmedia.com Karen Hancock (336) 605-1047 khancock@sandowmedia.com MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | Kaushal@kaushals.com ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com DIRECTOR, WEB OPERATIONS Chris Schultz | (336) 605-1076 | cschultz@sandowmedia.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | dsage@sandowmedia.com E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | maxe@sandowmedia.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | aternes@sandowmedia.com PRESIDENT, FURNITURE TODAY GROUP Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com
19-23 New York Home Fashions Market Home Fashion Products Association (212) 297-2122 (Kellen Co.) www.homefashionproducts.com
SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow 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
Atlanta Fall International Gift & Home Furnishings Market
6/2/2011 5:40:26 PM
Clean Up With
More companies choose Home Textiles Today for their marketing & advertising than all other industry publications put together. www.HomeTextilesToday.com
HTT_Campaign "11 finals.indd 3
3/9/11 4:31:53 PM
22
Home Textiles Today
Above and Beyond BBB FROM PAGE 1
years. All of these figures are miniscule compared to other national retailers. One way BBB achieved those lower ad costs was by larger contributions from suppliers in co-op allowances. The company said it reduced its ad costs by $17.6 million last year versus $14.5 the year before through this method. All of Bed Bath’s expense percentage results were impacted by strong comp store sales for the year, up 7.8% in 2010 against 4.4% the year before and the company’s first ever decline, 2.4%, in fiscal 2008. Those sales continue to be driven by the hard goods side of the store. Domestics remained at 41% of overall sales last year,
June 6, 2011
same as the previous year, but down from 43% in 2008. Bed linens, as the company refers to them, did decline to 12% of company sales, from 13% in each of the previous two years. Bed Bath did not offer any explanation for the decline, but price deflation and what some in the industry have characterized as a weakened merchandise mix in bedding could be possible reasons. In its letter to shareholders, the company said it remains worried about higher commodity prices, a concern virtually every retailer in the soft home space has voiced in their comments to investors. Nevertheless, Bed Bath said it will remain aggressive in its expansion targets, planning to open 45 stores in all its nameplates this year versus 40 last year. And as always, it will fund
News
that expansion internally: Its cash and cash equivalents position increased 15% to just under $2 billion against zero debt, an unheard-of ratio for a public company of this size. At least a tiny portion of the company’s wealth will be spread around over the next 12 months. It announced another substantial stock repurchase plan and it dramatically raised the total compensation package for Steven Temares, chief executive officer, from $8.7 million last year to $15.4 million this year, following no change in his compensation the year before. Arthur Stark, president and chief merchandising officer, also received a substantial increase in his total compensation, from $2.7 million to $3.2 million. The company’s annual meeting is set for June 23 at 9 a.m. in Morristown, N.J. HTT
> hometextilestoday.com
CSN Stores Named 2nd Largest Online Retailer for Home B OSTO N — Internet Retailer’s 2011 Top 500 list of the largest retail websites ranked CSN Stores as the second-largest online retailer of housewares and home furnishings, exceeding $380 million in 2010 sales. The ranking places CSN, which sells more than three million items from over 5,000 brands — including home textiles — ahead of Crate & Barrel for the first time. Compared to all online retail sites, CSN is ranked No. 51 out of the Top 500 and holds the No. 10 spot for retailers operating solely on the web. “We’re delighted with this year’s rankings,” said Niraj Shah, CSN Stores’ ceo and co-founder. “We chose to invest heavily in
our expansion a few years ago, despite the recession. And those investments have really paid off for us. We’ve also hired a very talented group of 750 people globally.” CSN’s first-quarter performance in 2011 is up by more than 56%. The company hired 250 people last year and has added 100 staffers so far in 2011. Earlier this month, CSN opened a second operations and distribution center, in Ogden, Utah. The privately-held company’s websites include AllModern. com, Luggage.com, Cookware. com and BedroomFurniture. com. CSN recently launched its first flash sale site, Joss & Main, which offers 72-hour sales of luxury goods for the home at up to 70% off. HTT
CLASSIFIEDS HELP WANTED Designer – Window Hardware CHF Industries, Inc., a leader in textile home furnishings, has an immediate opening for a Designer for Window hardware products and soft home design in New York. Minimum of five years design experience in home furnishings with extensive experience in window hardware. Candidate must have a strong sense of design utilizing CAD and product construction. Must understand design specifications and construction details. Must have experience making presentations to major retail customers. Has to work well under pressure, maintain a good attitude and have an eagerness to learn. Good communication skills, organization and attention to detail are needed to be successful. Sourcing knowledge is desired. Send resume to CHF.HR@chfindustries.com or fax to 704.522.4704 with “Window Designer” in the subject line.
Demand Planner – Forecasting Analyst CHF Industries, Inc., a leader in textile home furnishings, has an immediate opening in New York for Demand Planner with minimum of 3 to 5 years experience in home textiles and/or apparel forecasting. Analyzes retail sales data to provide SKU level forecasts for each retailer. Collaborates and communicates with retail planners. Superior organization and attention to detail required. Strong computer skills, including Excel, required. Must be able to work under pressure. Prefer statistics, accounting or math degree. Send resume including recent salary history to CHF.HR@chfindustries.com or fax to 704-522-4704 with “Analyst” in the subject line.
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
www.hometextilestoday.com
www.hometextilestoday.com . www.hometextilestoday.com .
THEY’RE LOOKING FOR YOU
www.hometextilestoday.com .
THIS
COULD BE YOUR AD
SPENCER WHITTLE: swhittle@sandowmedia.com ph 336.605.1027 fax 336.605.1143
KAREN HANCOCK: khancock@sandowmedia.com ph 336.605.1047 fax 336.605.1143
POSITIONS WANTED I am a textile expert having 25 years experience in the textile industry in buying, sou rcing, production, QA. I am interested to work as full time or Agent. I have very reliable contacts overseas. Email me at: lnstextileexpert.com
THIS COULD BE YOUR AD
ADVERTISE
htt110601_001_020.indd 22
6/3/2011 3:52:39 PM
Home Textiles Today’s
Global Home Show
September 18-22 A Must-See Destination Fall NY Home Fashions Market Week 295 5th Avenue and 7 West 34th Street Exhibitor registration begins May 16. Join an exciting array of companies from around the world and across the United States in this global presentation of home fashion products from existing suppliers as well as new companies looking to enter the U.S. marketplace.
For complete information, contact: Joe Carena, Show Manager, jvcarena@gmail.com (203) 329-9553
For complete exhibitor information, contact: Warren Shoulberg, Publisher, Home Textiles Today wshoulberg@hometextilestoday.com (646) 805-0226
HOTEL ACCOMMODATIONS: For lowest rates call nychoteldiscounts at 800-521-8765 or email artengel@optonline.net with HOME TEXTILES TODAY in subject line.
HTT_GIHC Fall 2011 tab.indd 1
6/1/11 9:41:02 AM