HTT January 31st Business Annual Issue by Sandow Media

Monday, January 31, 2011

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

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| Vol. 32, No. 4 | $85.00

2011 Business Annual htt110104_001 1

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Home Textiles Today

January 31, 2011

Table of Contents

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THE WEEKLY BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY® 360 Park Avenue South, New York, NY 10010

Retailing Giants

The Facts

Top 50 home textiles retailers ............. 4

Top Of Bed .......................................... 32 Kitchen Textiles ................................... 33 Bath...................................................... 34 Area Rugs ............................................ 36 Utility Bedding .................................... 38 Sheets .................................................. 40 Window Treatments ........................... 42

Supplier Giants Top 15 home textiles manufacturers .. 18 Top 5 manufacturers by product category ........................... 22

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360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com EDITOR-IN-CHIEF Jennifer Marks 375 South End Avenue #32U New York, N.Y. 10280 (212) 945-9151 | jnegley@hometextilestoday.com FOUNDING EDITOR-IN-CHIEF Carole Sloan 16 E. 96th St., New York, NY 10128 Tel: (212) 831-8266 | Fax: (212) 831-0814 PRODUCT EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | cbcorral@aol.com COPY EDITOR Julie Murphy (646) 805-0224 | jmurphy@hometextilestoday.com DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | dfrench@sandowmedia.com PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | wshoulberg@hometextilestoday.com ASSOCIATE PUBLISHER Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER NORTHEAST/ MIDWEST/CANADA Mary McLoughlin (646) 805-0227 | mmcloughlin@hometextilestoday.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 swhittle@sandowmedia.com Karen Hancock (336) 605-1047 khancock@sandowmedia.com MANAGER, CHINA Nancy Yu Tel: 86 (0) 21 5126 0111; Fax: 86 (0) 21 6539 0321 nancy@oceaniamedia.net MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | kj_reeds@yahoo.co.in ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com 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 VP, PUBLISHING DIRECTOR Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com

SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow 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

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Home Textiles Today

Top 50

> hometextilestoday.com

January 31, 2011

Top 50 Retailing Giants BY CAROLE SLOAN NEW YORK — The top 50 retailers of home textiles slightly outperformed the entire home textiles universe last year, with each segment recording declines, according to the annual Home Textile Today Top 50 Retail Giants survey. While both the total universe and the Top 50 declined, the drops were not as severe as they were for the Top 50 and the universe in the 2008 rankings. The Top 50 had a decline of 1.8% for fiscal 2009, accounting for 93.2% of the total universe, versus 91.1% the prior year. Tot als for the Top 50 were $22.28 billion, down from

$2.380 billion. But the Top 5 rankings are getting closer, year by year. For 2009 the difference between Walmart at No. 1 and Kohl’s at No. 5 was $2.376 million, down from the difference between the two in 2008 of $2.413. Bed Bath & Beyond narrowed the gap with the leader to $380 million, compared with the 2008 gap of $448 million. And the Top 5 lost share of the Top 50’s sales pool, taking 57.5% versus 57.8% in 2008. Sales for this segment were $12.808 billion, versus $13.114 billion, down 2.3%. The Top 10 held its share at 72% despite a sales decline of 2.3% to $16.035 billion.

four places to No. 22. HSN gained three positions, hitting No. 41. Ross Stores moved from No. 14 to No. 11, while Fred Meyer jumped to No. 27 from No. 30. The biggest ranking declines were recorded by Cornerstone Brands and Stein Mart, each dropping two slots to No. 30 and No. 46, respectively. Beyond the Top 5, in the next quintet, Kmart and Macy’s held their No.6 and No. 7 positions, but T.J. Maxx/Marshalls and Wil-

liams-Sonoma swapped placed at No 8 and No. 9. Family Dollar joined the group at No. 10. In the next quintet, Ross Stores moved to No.11 succeeding Family Dollar. Ikea and Big Lots at No. 12 and No. 13 and were joined by Anna’s Linens at No. 14. Sears held on to No. 15. The trio of dollar stores — Family Dollar, Dollar General and Dollar Tree, each moved up in the rankings. Family Dollar edged up a slot to No. 10,

TOP MULTI-DIVISION OPERATIONS CORP. RANK

CORPORATION

HOME TEXTILES SALES ($MILLIONS) 2009 2008

htt110104_004 4

The Top 15, Top 20 and Top 25 segments gained share. The Top 15 lost 1.4% with sales of $17.908 billion and market share in the Top 50 up slightly to 80.4%. The Top 20 lost 1.3% in dollar sales to $17.908 billion on a slight increase of 85.8% of the Top 50. The Top 25 had a Top 50 share of 90.1%, up from 89.6% on sales of $22.285 billion, down 1.8%. In terms of rankings, there were substantially more moving up than down, with 32 companies making that shift. Two new players joined the Top 50 — Fred’s and Cost Plus World Market at Nos. 49 and 50, respectively. Among the biggest ranking gainers was Hobby Lobby, jumping six slots to No. 43. Ashley Furniture HomeStores and Dollar Tree each climbed five slots, to No. 42 and No. 45, respectively. In its move to recover financially, Pier 1 Imports rose

SHARE OF PERCENT HOME TEXTILES CHANGE UNIVERSE

NUMBER OF STORES 2009 2008

Wal-Mart Bentonville, Ark.

$3,760.0

$3,752.0

0.2%

15.7%

4,146

4,105

Sears Holdings Corp. Hoffman Estates, Ill.

$1,228.0

$1,290.0

-4.8%

5.1%

2,189

2,238

Macy’s, Inc. Cincinnati

$968.0

$990.0

-2.2%

4.1%

850

847

TJX Companies Framingham, Mass.

$919.0

$849.0

8.2%

3.8%

2,026

1,998

HSNi New York

$198.0

$218.0

-9.2%

0.8%

1. Includes No. 1 Wal-Mart and No. 23 Sam’s Club 2. Includes No. 6 Kmart, No. 15 Sears and No. 39 Lands’ End 3. Includes No. 7 Macy’s Home Store and No. 28 Bloominigdale’s 4. Includes No. 8 T.J. Maxx/Marshalls and No. 17 HomeGoods 5. Includes No. 30 Cornerstone Brands and No. 41 HSN

$22.68 billion in 2008. Among the Top 50, 28 retailers posted sales declines in home textiles in 2009. The total universe beyond the Top 50 was $22.9 billion, down 4.0% from the 2008 total universe of $24.9 billion. Based on 2009 sales, the ranks of the leading players in home textiles changed. In addition, 2009 showed a tightening between Walmart, which retains the top spot but is being seriously challenged by Bed Bath & Beyond, which holds on to the No. 2 position. Target edged out the onetime home textiles sales champion JCPenney, moving up to the No. 3 slot and bumping JCPenney to No. 4. Kohl’s held on to the fifth position. In the Top 5, Target and Penney were the two retailers that showed sales declines in home textiles — the former with a drop of 7.2% to $2.460 billion, while Penney dropped 11% to

Dollar General went to No. 34 from No. 35, and Dollar Tree surged five slots to No. 45 from its debut positioning in the 2008 Top 50 rankings. The economy played a good part in increasing dollar store rankings as consumers pulled back on discretionary merchandise purchases. But dollar retailers also took aim at the marketplace with new approaches to home textiles assortments, sourcing opportunities and marketing. HTT

Source: Home Textiles Today market research

How the Top 50 were Ranked Home Textiles Today’s exclusive survey of the Top 50 home textiles retailers ranks the top U. S. retailers by sales of 2009 home textiles. All home textiles categories, bed, bath, kitchen, table linen and window coverings, including alternative window coverings, custom decorating and accessories that are generally sold with textile items, are included in the sales estimates. In order to be eligible for the ranking, each retailer must sell more than one home textile category. The ranking crosses all formats of home textiles retailing. Companies are classified by their primary channel of distribution. Channels include discounters; specialty stores; home improvement centers; department stores; dollar stores; national chains, such as Sears; direct-to-consumer retailers that sell primarily through catalogs, television and/or the Internet; warehouse membership clubs; military exchanges; furniture stores; and supercenters, which sell both food and general merchan-

dise in their mix. For Wal-Mart, Kmart and Target, the ranking includes discount stores and supercenters. All home textiles sales information, except for publicly held companies that break out lineof-business sales for home textiles, are Home Textiles Today market research estimates. Sales figures are given for the 12-month period ending closest to Dec. 31, 2009. Individual retailer descriptions include the date of the fiscal year end or the 12-month periods that deviate significantly from that date. Sales estimates are based on information from a variety of sources including the companies themselves, public company filings with the Securities and Exchange Commission, discussions with industry analysts and suppliers and published and unpublished reports, including newspaper articles in various retail trading areas. In cases where companies have identical sales of home textiles, the one with the fastest sales growth is ranked higher.

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Home Textiles Today

January 31, 2011

Top 50

> hometextilestoday.com

Slight Gains in Tough Economic Year BY CAROLE SLOAN N EW YORK — Three home tex-

tiles channels — primarily focused on mainstream customers — led the sales pace among the Top 50 retailers in fiscal 2009. But in a year that saw sales of home textiles (as well as most other product categories) decline because of the macro-economic conditions, the gains were slight at best. Discount stores and their supercenter siblings continued to hold a majority share of the home textiles business. In fiscal 2009, this group edged up to 40.9% of Top 50 sales, compared with the group’s 40.7% in fiscal 2008. Specialty stores ranked second among the eight distribution channels analyzed in the annual Home Textiles Today Top 50 Retailing Giants report, with a share of 25.0% in fiscal 2009, up from a 24.1% in fiscal ’08. The dollar store segment, a growing home textiles distribution channel, was the third to gain ground with a 2.7% share, up from 2.5% the previous year. From a sales perspective, dollar stores had the strongest performance, despite the group’s small segment base, recording a 6.8% increase over 2008 with $610 million for fiscal 2009; and specialty stores recorded a 2.1% increase to $5.579 billion. Discount stores and supercenters had home tex-

tiles sales of $9.125 billion, a decline of 1.3%. On the negative side, home improvement stores lost share,

down to 1.6% for the group versus 1.7% in fiscal 2008 on a sales decline of 6.6% to $352 million. Department stores dropped 6.0%

2009 STORE BREAKOUT BY TYPE Percentage of Top 50 Sales By Distribution Channel Discount Stores & Supercenters lost 1% of share from 2008, while Department Stores gained 3%.

All home textiles sales information, except for publicly-held companies that break out line-of-business sales for home textiles, are Home Textiles Today’s market research estimates. All data is for calendar year ending Dec. 31, fiscal-year end or trailing 12 months closest to that date. Store type: DTC: Direct-to-consumer DP: Department store DC: Discount department store DS: Dollar store HI: Home improvement center SC: Supercenter SP: Specialty store

25%

Department Stores

Discount Stores & Supercenters

22%

41%

Direct-toconsumer 4%

COMPANY

Wal-Mart **

Other*

Home 2% Improvement Warehouse Centers 1% Clubs 2%

The accompanying listings of Home Textiles Today’s fastest growing retailers are derived from the exclusive Top 50 Retailing Giants rankings (see page 16). The rankings cross all formats of home textiles retailing—including discount department stores; dollar stores; specialty stores; department stores; national chains, such as Sears; nonstore retailers, such as catalogs and Internet retailers; warehouse clubs; military exchanges; home improvement centers; and supercenters, which sell both food and general merchandise in their merchandise mix. (For the Top 50 Methodology, see page 14.)

Dollar Stores 3%

2009 Top 50 Total: $22.29 Billion 2008 Top 50 Total: $22.69 Billion Top 50 overall % change over 2008: -1.8% Source: Home Textiles Today market research

HOME TEXTILES SALES* 2009 2008

PERCENT CHANGE

$3,570.0

$3,540.0

Target

$2,460.0

$2,650.0

Kmart **

$845.0

$875.0

T.J. Maxx/Marshalls

$657.0

$610.0

7.7%

Ross Stores

$430.0

$385.0

11.7%

* sales in millions of dollars ** Includes sales from supercenters

0.8%

TOP 5 HOME TEXTILES DEPARTMENT STORES STORES 2009 2008

TOP 50 RANK

COMPANY

HOME TEXTILES SALES* 2009 2008

PERCENT CHANGE

JCPenney

$2,380.0

$2,675.0

-7.2%

1,740 1,682

Kohl’s

$1,206.0

$1,157.0

4.2%

-3.4%

1,327 1,368

Macy’s Home Store

$830.0

$840.0

-1.2%

810

807

1,703 1,680

Bloomingdale’s

$138.0

$150.0

-8.0%

The Bon-Ton Stores

$125.5

$132.0

-4.9%

278

281

1,005

956

Source: Home Textiles Today market research Source: Home Textiles Today market research

PERCENT CHANGE

-11.0%

STORES 2009 2008

Source: Home Textiles Today market research

HOME TEXTILES SALES* 2009 2008

COMPANY

3,550 3,503

TOP 5 HOME TEXTILES SPECIALTY RETAILERS TOP 50 RANK

Methodology

Direct-to-Consumer 4% * Other includes Sears, Army & Air Force Exchange Service, and Ashley Furniture HomeStores

line retailers as well as shifts in marketing activities away from broadline catalogs and towards more focused offers. Department stores, warehouse clubs and home improvement centers as well as other categories all reported declines because of many factors, particularly the economy. HTT

About the Charts

Specialty Stores

TOP 5 HOME TEXTILES DISCOUNTERS TOP 50 RANK

in dollars to $4.879 billion on a market share decline to 21.9% of the Top 50 compared with ‘08’s share of 22.9%. In dollars, direct to consumer slid 5.9% to $892 million or 4.0% of the Top 50, down from 4.2% in ’08. The latter shift was a combination of new reporting of direct businesses at full

1,108

1,093

1,058 1,004

*sales in millions of dollars

TOP 3 HOME TEXTILES DOLLAR STORES

STORES 2009 2008

TOP 50 RANK

COMPANY

HOME TEXTILES SALES* 2009 2008

PERCENT CHANGE

STORES 2009 2008

Bed Bath & Beyond

$3,190.0

$3,092.0

3.2%

1,039

993

Family Dollar

$432.0

$396.0

9.1%

6,689 6,643

Williams-Sonoma

$465.0

$500.0

-7.0%

593

611

Dollar General

$120.0

$119.0

0.8%

8,828 8,362

Ikea

$392.0

$387.0

1.3%

Dollar Tree

$58.0

$56.0

3.6%

3,806 3,591

Anna’s Linens

$350.0

$335.0

4.5%

265

260

Luxury Linens

$304.0

$298.0

2.0%

431

409

Source: Home Textiles Today market research

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Source: Home Textiles Today market research

*sales in millions of dollars

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Home Textiles Today

January 31, 2011

Top 50

TOP 10 HOME TEXTILES RETAILERS BY % SALES GROWTH RANK COMPANY (TOP 50 RANK)

TYPE

HOME TEXTILES SALES* 2009 2008

PERCENT NET CHANGE CHANGE*

> hometextilestoday.com

TOP 10 HOME TEXTILES RETAILERS BY NET SALES GROWTH RANK COMPANY (TOP 50 RANK)

TYPE

HOME TEXTILES SALES* 2009 2008

PERCENT NET CHANGE CHANGE*

Pier 1 Imports (22) Fort Worth, Texas

$199.0

$169.7

17.3%

29.3

Bed Bath & Beyond (2) Union, N.J.

$3,190.0

$3,092.0

3.2%

98.0

Ross Stores (11) Pleasanton, Calif.

$430.0

$385.0

11.7%

45.0

Kohl’s (5) Menomonee Falls, Wis.

$1,206.0

$1,157.0

4.2%

49.0

HomeGoods (17) Framingham, Mass.

$262.0

$239.0

9.6%

23.0

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

$657.0

$610.0

7.7%

47.0

Family Dollar (10) Matthews, N.C.

$432.0

$396.0

9.1%

36.0

Ross Stores (11) Pleasanton, Calif.

$430.0

$385.0

11.7%

45.0

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

$657.0

$610.0

7.7%

47.0

Family Dollar (10) Matthews, N.C.

$432.0

$396.0

9.1%

36.0

QVC (24) West Chester, Pa.

DTC

$184.0

$175.0

5.1%

9.0

Wal-Mart (1) Bentonville, Ark.

$3,570.0

$3,540.0

0.8%

30.0

Anna’s Linens (14) Costa Mesa, Calif.

$350.0

$335.0

4.5%

15.0

Pier 1 Imports (22) Fort Worth, Texas

$199.0

$169.7

17.3%

29.3

Kohl’s (5) Menomonee Falls, Wis.

$1,206.0

$1,157.0

4.2%

49.0

HomeGoods (17) Framingham, Mass.

$262.0

$239.0

9.6%

23.0

Ashley Furn.HomeStores (42)FC Arcadia, Wis.

$63.5

$61.0

4.1%

2.5

Anna’s Linens (14) Costa Mesa, Calif.

$350.0

$335.0

4.5%

15.0

$58.0

$56.0

3.6%

2.0

QVC (24) West Chester, Pa.

DTC

$184.0

$175.0

5.1%

9.0

10 Dollar Tree (45) Chesapeake, Va.

* in millions of dollars

DC/SC

* in millions of dollars Source: Home Textiles Today market research Source: Home Textiles Today market research

TOP 10 HOME TEXTILES RETAILERS BY % UNIT GROWTH NUMBER OF STORES 2009 2008

TOP 10 HOME TEXTILES RETAILERS BY NET UNIT GROWTH

PERCENT CHANGE

NET CHG. (UNITS)

16.7%

Dollar Tree (34) Goodlettsville, Tenn.

8,828

8,362

5.6%

466

3,806

3,591

6.0%

215

Dollar Tree (45) Chesapeake, Va.

3,806

3,591

6.0%

215

Neiman Marcus Group (48)DP/DTC Dallas

6.0%

Lowe’s (20) Mooresville, N.C.

HIC

1,694

1,627

4.1%

IKEA (12) Conshohocken, Pa.

5.7%

Target (3) Minneapolis

DC/SC

1,740

1,682

3.4%

Dollar General (34) Goodlettsville, Tenn.

8,828

8,362

5.6%

466

Kohl’s (5) Menomonee Falls, Wis.

1,058

1,004

5.4%

Luxury Linens (16) Burlington, N.J.

431

409

5.4%

Ross Stores (11) Pleasanton, Calif.

1,005

956

5.1%

Kohl’s (5) Menomonee Falls, Wis.

1,058

1,004

5.4%

Wal-Mart (1) Bentonville, Ark.

DC/SC

3,550

3,503

1.3%

Ross Stores (11) Pleasanton, Calif.

1,005

956

5.1%

Bed Bath & Beyond (2) Union, N.J.

1,039

993

4.6%

Hobby Lobby Stores (43) Oklahoma City

432

411

5.1%

Family Dollar (10) Matthews, N.C..

6,689

6,643

0.7%

Fred’s (49) Memphis, Tenn.

669

639

4.7%

Fred’s (49) Memphis, Tenn.

669

639

4.7%

RANK COMPANY (TOP 50 RANK)

TYPE

QVC (24) West Chester, Pa.

DTC

Dollar Tree (45) Chesapeake, Va.

RANK COMPANY (TOP 50 RANK)

TYPE

NUMBER OF STORES 2009 2008

PERCENT CHANGE

NET CHG. (UNITS)

* in millions of dollars Source: Home Textiles Today market research Source: Home Textiles Today market research

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January 31, 2011

Home Textiles Today

Top 50

> hometextilestoday.com

R ETAILING GIANTS Rank

’08 Rank

Company, HQ & Store Type

Wal-Mart, Bentonville, AR DC/SC

Bed Bath & Beyond, Union, N.J. SP

Target Stores, Minneapolis DC/SC

JCPenney, Plano, Texas DP/DTC

Kohl’s Menomonee Falls, Wis. DP

Kmart Hoffman Estates, Ill. DC/SC

Macy’s New York DP

T.J Maxx/Marshalls Faramingham, MA DC

Williams-Sonoma San Francisco SP/DTC

Family Dollar Matthews, N.C. DS

2009

2008

Percent Change

Home Textiles as a Percentage of Store’s Total Sales

$3,570

$3,540.0

0.8%

1.4%

sales in millions of dollars Share of Home Textiles Universe

14.9%

Number of Stores 2009 2008

3,550

3,503

Fiscal Jan. 31. Walmart US store count was 3,708 up from 3,503 in fiscal 2008. Future US growth will be in more metro markets plus new formats and stronger integration with online business. Walmart.com traffic exceeded 1 billion visits in fiscal 2010, an increase of more than 15% over the previous year. Walmarts operate in all 50 states with supercenters in 48 states, discount stores in 47 states and Neighborhood Markets in 16 states. Supercenters range up to 260,000 square feet. Home, including home furnishings, housewares and small appliances accounted for 5% of sales in fiscal 2010, the same as in fiscal 2009. Has entered a major sourcing pact with Li & Fung under a realigned Global Merchandising Centers concept.

$3,190

$3,092

3.2%

40.7%

13.3%

1,039

993

Fiscal Feb. 27. Net earnings soared about 40 % on a net sales increase of about 8.6% with comp store sales up about 4.4 %. Domestics business overall dropped to 41% of the total in fiscal 2009, down from 43% in fiscal 2008 and 44% of net sales in fiscal 2009. Bed linens accounted for 13%, 13% and 14% in those years. No other product category accounted for more than 10% or more of net sales in those years. During the year added 39 Bed Bath & Beyond stores in the US and Canada, 14 buybuy Baby stores, five Harmon Face Value stores and 9 Christmas Tree Shops units. At year end operated 965 Bed Bath & Beyond stores with its first store in Hawaii this summer. In fiscal 2010 plans 60 new stores with about 30 in the BBB division.

$2,460

$2,650

-7.2%

3.9%

10.3%

1,740

1,682

Fiscal Jan. 31. Sales increased 0.6 percent to $65.4 billion, with home furnishings and décor contributing 19% of the total. The comp sales decline in fiscal 2009 of 2.5% followed a decline of 2.9% in fiscal 2008 versus a comp gain of 3% in fiscal 2007. The declines were driven largely by a drop in the average transaction amount, with fewer units. Home furnishings and décor percentage to total sales has slipped from 22% in fiscal 2007, to 21% in fiscal 2008, to the current level. The company made major efforts to increase consumers’ perception of its competitive pricing while maintaining and enhancing its fashion business. This year will emphasize new approaches in home assortments and presentation.

$2,380

$2,675

-11.0%

13.6%

10.0%

1,108

1,093

Fiscal Jan. 30. Home furnishings, especially its once dominant window coverings business and furniture, were two of the weaker performers for ‘09 with home overall the weakest of its fourth quarter businesses. In summer ‘09 Penney opened its first store in Manhattan which has been successful and pointed to new directions in merchandising and marketing. The company emphasizes its 12 private “power brands” including Linden Street, Studio JCP Home and Cooks. American Living, launched store-wide in ‘08 and created by Polo Ralph Lauren’s Global Brand Concepts has been remerchandised in both price points and styling. Home represents 19% of the mix. Home online business, once the segment’s biggest producer, is starting to improve.

$1,206

$1,157

4.2%

7.0%

5.0%

1,058

1,004

Fiscal Jan. 30. Operated 1,058 stores in 49 states with comp sales up 0.4% in ’09 versus a drop 6.9% in ’08. Home, at 18% of total sales, outperformed total store results. Home is undergoing a major retrofit with about 30 new and 65 or more remodeled units this year with a goal of increasing efficiencies with more sales floor capacity and more fixture flexibility in presentation. Kohl’s also is looking to expand some of its exclusive designer brands now in apparel to the home side. A redesigned Elle-branded lifestyle program will be expanded into a home collection in September. The company is dramatically expanding its ecommerce activities, with drop ship to consumer a key point.

$845

$875

-3.4%

5.4%

3.5%

1,327

1,368

Fiscal Jan. 30. Part of publicly held Sears Holdings. Operated 1,327 stores in 49 states, Guam, Puerto Rico and the US Virgin Islands including discount stores and Super Centers.. Plans to close 21 Kmart stores this year. Cross-marketing some Sears’ products especially in hard lines and appliances. Has a strong and growing multi-classiciation home collection with Jaclyn Smith. Launched the Country Living Collection for home in September. Comp sales dropped 0.8% in ’09; total sales were down 2.9% to $15,74 billion.

$830

$840

-1.2%

3.5%

810

807

Fiscal Jan. 30. Expanded its My Macy’s localization program nationally from the 20 market pilot program in 2008, creating eight stores regions and 49 new districts, bringing the district piece to 69 to tailor merchandise assortments and shopping experience by location. In ’09, all top 12 sales growth markets were from the pilot program. Increasing integration of stores and online sites. Combined sales increases for macys.com and Bloomingdales.com were up 20% in ’09. Continues to emphasize private brands store-wide with Charter Club, Hotel Collection and Style & co. key players in home textiles. Home textiles, housewares and mattresses were the strongest home businesses in ’09.

$657

$610

7.7%

5.0%

2.7%

1,703

1,680

Fiscal year ended Jan. 30. Sales and store counts are for the Marmaxx Group (T.J. Maxx and Marshalls) in the U.S. and Puerto Rico, but does not include sales from HomeGoods. Both chains sell quality, brand name and designer merchandise at prices 20% to 60% below department and specialty store prices. Home at Marmaxx improved significantly during the year with same store sales increases above the average. Same store sales increased 7% in ‘09. Total ‘09 sales for the Group were $13.27 billion, up 7.4% from $12.36 billion in ‘08. Plans to open about 53 net new stores in ‘10. TJX plans to test a new-concept chain in spring ‘11 that will have the potential to be a 90 to 100- store chain .

$465

$500

-7%

15.0%

1.9%

593

611

Fiscal Jan. 31. The various Pottery Barn divisions led fiscal 2010 results for parent Williams-Sonoma with PBTeen the best performing brand in the company, recording an 18% increase. Overall, Pottery Barn revenues increased 10% with PB Kids contributing a 9% rise. The company plans to expand its West Elm assortment especially in textiles with more multi-channel marketing and more opening price points. About 36% of total revenues were from catalog and Internet sales although fiscal ’09 Internet sales are down 8.7%. The company expects to open 10 stores, close 17, bringing the 2010 total to 603.

$432

$396

9.1%

5.7%

1.8%

6,689

6,643

Fiscal August 31. Capitalized on the economy with added emphasis on discretionary merchandise like home textiles to enhance its basis merchandise via product mix changes, more appealing in-store presentations and more focused marketing. The company operates more than 6,600 stores in 44 states. In fiscal 2009, home products accounted for $988 million that includes blankets, sheets and towels as well as housewares, giftware and home décor. It was the second largest merchandise segment after the dominant consumables segment that produced sales of $4.7 billion in the period.

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

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January 31, 2011

Home Textiles Today

Top 50

> hometextilestoday.com

R ETAILING GIANTS sales in millions of dollars

Rank

’08 Rank

Company, HQ & Store Type

Ross Stores Pleasanton, Calif. DC

IKEA Conshohocken, Pa. SP

Big Lots Columbus, Ohio DC

Anna’s Linens Costa Mesa, Calif. SP

e 15

Sears Hoffman Estates, Ill. CH

Luxury Linens Burlington, N.J. SP

HomeGoods Framingham, Mass. SP

Tuesday Morning Dallas DC

Costco Issaquah, Wash. W

Lowe’s Mooresville, N.C. HIC

2009

2008

Percent Change

Home Textiles as a Percentage of Store’s Total Sales

Share of Home Textiles Universe

$430

$385

11.7%

6.0%

1.8%

Number of Stores 2009 2008

1,005

956

Fiscal Jan. 30. Home, especially home textiles, and apparel are marketed under the Ross Dress for Less major division, and the growing dd’s Discount stores for relatively more moderate income consumers. Home textiles have become a significant piece of the overall merchandise mix and with home accents accounted for 24% of total sales in 2009. Comp sales for the company rose 6% versus 2% in 2008. New store openings will focus on states where Ross already is located to increase market penetration.

$392

$387

1.3%

12.3%

1.6%

Fiscal Aug. 31. Sweden-based global retailer catering to a young customer base, but increasingly gaining older consumers with large assortments in home textiles and all other home lines under its global product development and styling teams. Opens few but large stores, the most recent a 355,000 square foot unit in Charlotte, North Carolina. Plans call for a store in Colorado and Massachusetts in 2011.

$388

$387

0.3%

8.2%

1.6%

1,361

1,339

Fiscal Jan. 30. Opened 52 stores in ’09, closed 30, with a total of 1,361 units in 47 states with 80 new stores and closing 40 in 2010. About 50 will be traditional stores and estimate about 30 new “A” locations – higher income neighborhoods. Merchandise across the board, and especially in home, will be focused on quality at a price versus an earlier approach of low price. Top of bed, window and all home textiles are key candidates for reenergizing. The home category is in a virtual tie with the furniture/mattress segment – each at 15.2% of the company total, behind the category leader – consumables – with a sales share of 30.8%. Home underperformed through the second fiscal quarter but rebounded due to merchandise changes and improvement in consumer spending.

$350

$335

4.5%

95.9%

1.5%

265

260

Privately held. Focused on its core customer base of moderate income consumers with value-oriented, price-driven efforts. Opened five stores in ’09 and plans 25 new stores for this year. Operates in 18 states. Home textiles in ‘09, its core category, increased 4.5% over ‘08 sales, more than total store sales, which increased 4.0% to hit $365 million last year.

$313

$340

-7.9%

1.3%

848

856

Fiscal Jan. 30. Part of Sears Holdings and is increasingly cross-merchandising product collections with sibling Kmart. The company is emphasizing online sales versus its retail stores. Some merchandise is available same day or next day at customers’ home, or at a Sears or Kmart store. Operates 908 broadline stores with 840 full line units in all 50 states and Puerto Rico – averaging 116,000 square feet. There are 30 Sears Essentials/Grand stores. Sears also operates 12 The Great Indoors stores focused on merchandise for kitchen, great room, bathroom and bedroom. Sears Domestic comp store sales and total sales declined 8.7% and 6.5% respectively in fiscal ’09.

$304

$298

2.0%

1.3%

431

409

Fiscal May 31, will now be the Saturday closest to Jan. 31. Sales and store counts for 2009 and 2010 are cfor the trailing 12 months ended Feb. 28 for each year. Operates as a full home business – home textiles, gifts, furniture and home décor through the company’s Burlington Coat Factory division of 424 units. Opened its first Puerto Rico store in ’09 with plans for two more in ’10 among the approximately 25 more planned across the country. New prototypes are more self service oriented and feature white and metal fixtures. Everyday low pricing is the benchmark of marketing. Has yet to go online for sales.

$262

$239

9.6%

14.6%

1.1%

323

318

Fiscal year ended Jan. 30. Division of publicly held TJX Companies. Sales and store counts are for the stand-alone stores as well as the HomeGoods portion in T.J. Maxx and Marshalls. Off-price retailer offers a broad array of home basics, giftware, accent furniture, lamps, rugs, wall décor, decorative accessories, children’s furniture, seasonal merchandise and other fashions for the home. Home performed particularly well in ‘09 for the different TJX companies. Total ‘09 sales for HomeGoods were $1.79 billion, up 13.7% from $1.58 billion in ‘08. Comp store sales increased 9% in ‘09 compared to a 3% decrease in ‘08. The division plans to open a net nine units this year.

$235

$240

-2.1%

29.0%

1.0%

858

860

Fiscal year ended June 30. Sales and store counts are based on trailing 12 months ended Dec. 31. Publicly held closeout retailer of upscale home furnishings, housewares, gifts and related items. Purchases first quality, brand name merchandise – never seconds, irregulars, refurbished or factory rejects — at closeout pricing and sells at prices well below those charged by department stores and specialty and catalog retailers. Total trailing 12 month sales were $811.2 million, down 1.2% from $821.0 million in ‘08. The retailer continues to primarily pursue expansion and relocation opportunities in its existing store base, closing stores by allowing leases to expire for unprofitable stores and opening fewer new stores.

$212

$210

1.0%

0.3%

0.9%

421

406

Fiscal year ended Aug. 30. Sales and store counts are for the trailing 12 months ended Feb. 14 and include only U.S. and Puerto Rico stores. Also sells online at Costco.com. Closed its two Costco Home stores July 2009, part of a cost-saving program to combat lower consumer spending. Opened 15 net new clubs during the 12 trailing months. Soft lines, including home, accounted for 10% of fiscal 2009 and 2008 sales. Total 2009 trailing 12 month sales were up 1.7% to $72.6 billion.

$207

$222

-6.8%

0.4%

0.9%

1,694

1,627

Fiscal year ended Jan. 29. Sales and store counts exclude Canada. Also sells online. Opened 56 new U.S. stores during 2009. Plans to open 40 to 45 new stores this year, including continued expansion in Canada and its first stores in Western Canada and Monterrey, Mexico. New stores include 117,000 and 103,000 prototypes for large markets and 94,000 for smaller ones. Comp store sales declined 6.7% in 2009. The average ticket decreased 5.4% from $65.15 in 2008 to $61.66 in 2009. Home textiles were down more than the overall home furnishings. Sales for flooring, including rugs, decreased 3.9%. Total 2009 sales were $47.2 billion, down 2.1% from $48.2 billion in 2008.

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Top 50

> hometextilestoday.com

Home Textiles Today

January 31, 2011

sales in millions of dollars

Rank

’08 Rank

Company, HQ & Store Type

Meijer Grand Rapids, Mich. SC

Pier 1 Imports Fort Worth, Texas SP

Sam’s Club Bentonville, Ark. W

QVC West Chester, Pa. DTC

Hanover Direct Weehawken, N.J. DTC

Home Depot Atlanta HIC

Fred Meyer Portland, Ore. SC

Bloomingdale’s New York DP

Restoration Hardware Corte Madera, Calif. SP

Cornerstone Brands Waltham, Mass. DTC

2009

2008

Percent Change

Home Textiles as a Percentage of Store’s Total Sales

Share of Home Textiles Universe

$203

$201

1.0%

1.4%

0.8%

Number of Stores 2009 2008

190

185

Family owned and operated. Also sells online. Is known as the inventor of the one-stop shopping concept. Operates stores throughout Michigan, Ohio, Indiana, Illinois and Kentucky. All stores are open 24 hours and average 200,000 to 250,000 square feet. Debuted a 102,000-square-foot, grocery-focused store in the Chicago suburb of Niles this January. Was late to the online game as it began selling via the web in 2007, but has seen recent growth. 2009 web sales reached $20.7 million. Total 2009 sales estimated at more than $14 billion.

$199

$169.7

17.3%

17.0%

0.8%

973

1,018

Fiscal year ended Feb. 27. Operated 973 Pier 1 stores in the U.S., 81 stores in Canada and 35 stores in Mexico. Sales and store counts are U.S. only. Stores average 7,900 square feet and sell a wide variety of product imported from over 50 countries. Textiles grew to approximately 17% of total sales in ‘09 compared to 14% in ‘08 primarily as a result of increased sales in furniture pads and pillows as well as in kitchen textiles, rugs and window treatments. Total ‘09 revenues in the U.S. were $1.17 billion, down 2.2% from $1.2 billion in ‘08. Closed only 38 units last year because of better than anticipated negotiations over rental reductions; had thought to close up to 80 stores. Also, discontinued its contract and closed all seven stores in Puerto Rico last fall. In ‘10, plans to open four stores in the U.S., and close three. Will begin selling online next year, three years after closing its earlier online business.

$190

$212

-10.4%

0.4%

0.8%

596

602

Fiscal Jan. 31. In fiscal 2010 operated 596 units, down from 602 units in fiscal 2009. Plans to add or relocate 10 clubs this year and remodel about 80. Home and apparel, a broad category that includes home improvement, outdoor grills, gardening, furniture, seasonal and mattresses on the home side, dropped to 8% of total sales in fiscal 2010 from 9% in fiscal 2009 – each year the smallest product segment of the business. Sam’s Club will be part of the new sourcing program between Walmart and Li & Fung. Total 2009 Sam’s Club sales were $46.7 billion, down 0.4% from $46.9 billion in 2008.

$184

$175

5.1%

3.7%

0.8%

Fiscal year ended Dec. 31. Part of publicly held Liberty Media. Markets and sells primarily through its televised shopping programs on the QVC networks and via the internet. Operates its flagship store at Minnesota’s Mall of America, its Studio Store located at QVC headquarters and five Outlet Stores – two each in Pennsylvania and Delaware and one in South Carolina. Home, accounting for 44% of U.S. net revenues the previous three years, accounted for 47% of revenues in ‘09. U.S. revenues in ‘09 were $4.99 billion, up 1.5% from $4.91 billion in ‘08. QVC launched the Williamsburg: Home for All Seasons collection in February ‘09 and opened its fifth outlet store, in Myrtle Beach, S.C., in fall ‘09.

$182

$200

-9.0%

0.8%

The privately held company operates Domestications, its moderately priced catalog, and The Company Store, targeted to a higher income consumer in terms of pricing and merchandise.

$145

$155

-6.5%

0.2%

0.6%

1,976

1,971

Fiscal year ended Jan. 31. Sales and store counts are for U.S. stores only, including Puerto Rico, the U.S. Virgin Islands and Guam, as well as online sales and sales from its Home Depot Direct catalog division. Opened five new stores in the U.S. in 2009. Began selling Martha Stewart home goods this year including the launch of patio furniture in January and many other home decor and organization products throughout 2010. Comp store sales decreased 6.6% for fiscal 2009. Total 2009 retail sales were $66.2 billion, down 7.2% from $71.3 billion in 2008. Experienced positive comps in U.S. stores during the first quarter of 2010, the first time since the fourth quarter of 2005.

$142

$145

-2.1%

0.6%

130

129

Fiscal year ends Jan 30, founded in 1922. Part of publicly held Kroger. Operates stores in Alaska, Idaho, Oregon and Washington. Stores carry more than 250,000 products and employ nearly 30,000 associates. Also sells online at Fredmeyer.com. Features its Rewards Card, earning participants 1 point for every $1 spent. When shoppers earn 500 or more points in a 13-week period, they’re mailed a rebate to spend at any Fred Meyer store or online. Home products include bed and bath, home accents, furniture, housewares, home improvement, garden and seasonal goods. Total 2009 sales estimated at more than $8 billion.

$138

$150

-8.0%

0.6%

Fiscal Jan. 30. The full line, upscale division of Macy’s Inc. significantly improved its performance in the second half of 2009 with reemphasing designer merchandise in home as well as apparel. Opened two stores in Dubai, one for home, the other for apparel under a licensing agreement with Al Tayer Insignia. Will launch its first four outlet stores, each about 25,000 square feet, in New Jersey, two in Florida, and Virginia. Using social media and new marketing approaches to attract younger customer base as well; as bhome catalogs to showcase high fashion, new trend home lines.

$134

$145

-7.6%

0.6%

107

108

Owned by private equity firms, Catterton Partners and Tower Three Partners, the company is focusing on differentiating its merchandise mix and launched a gallery program in its New York flagship and California that focuses on unique and antique furniture pieces, accessories and some home textiles. The galleries also include the company’s bed and bath assortment within this environment. Introduced Restoration Hardware Garden catalog. Sales figures do not include the trade division that focuses on the contract and other non-residential businesses.

$132

$154

-14.3%

17.8%

0.6%

Fiscal year ended Dec. 31. Part of publicly held HSNi, which also owns HSN. Cornerstone primarily offers mostly exclusive home and outdoor furnishings and casual and leisure apparel. Sales and store counts are for the home furnishings catalogs - Ballard Designs, Frontgate, Garnet Hill and Smith + Noble. Also sells online for each brand and through 11 retail and outlet stores – two Garnet Hill stores, five Ballard Designs locations and four Frontgate retail stores. Textiles offered by the four include bath, bedding and kitchen as well as window treatments and rugs. Total ‘09 sales were $741.7 million, down 14.4% from $866.7 million in ‘08. Earlier this year, Garnet Hill introduced exclusive Lilly Pulitzer bedding and bath in comforter covers, shams, bedding, bath and area rugs and shower curtains.

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January 31, 2011

Home Textiles Today

Top 50

> hometextilestoday.com

R ETAILING GIANTS sales in millions of dollars

Rank

’08 Rank

Company, HQ & Store Type

BrylaneHome New York DTC

The Bon-Ton Stores York, Pa. DP

Crate & Barrel Northbrook, Ill. SP

Dollar General Goodlettsville, Tenn. DS

Shopko Green Bay, Wis. DC

Belk Charlotte, N.C. DP

Dillard’s Little Rock, Ark. DP

Country Curtains Lee, Mass. DTC

Lands’ End Dodgeville, Wis. DTC

Army & Air Force Exchange Service Dallas PX

2009

2008

Percent Change

Home Textiles as a Percentage of Store’s Total Sales

Share of Home Textiles Universe

$128

$141

-9.2%

7.8%

0.5%

Number of Stores 2009 2008

Fiscal year ended Jan. 30. Operates in 23 Northeastern, Midwestern and upper Great Plains states under the Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s and Younkers nameplates and under the Parisian nameplate in the Detroit, Mich., area. Soft home was one of the best performing categories during the fourth quarter of ’09. In textiles, the stores offer exclusive private brands as well as nationally distributed brands such as Calvin Klein, Croscill, Karen Neuburger Home, Laura Ashley Home, Living Quarters and Ruff Hewn. Home category accounted for 16.8% of ’09 sales, down from 17.6% of ’08 sales. Total ’09 sales were $2.96 billion, down 5.4% from $3.13 billion in ‘08.

$125.5

$132

-4.9%

4.2%

0.5%

278

281

$124

$131

-5.3

10.7%

0.5%

174

167

Fiscal Jan. 31. Specializes in mid to upper mid priced lifestyle home furnishings, primarily in contemporary consumers as well as five CB2 stores, a growing group dedicated to a younger, more metropolitan based consumer in apartment and loft living spaces. In textiles, focuses on its long term relationship with Finnish-based Marimekko in bed and bath, with other exclusives developed by the company and its global supplier network. Opened two Crate & Barrel stores under a franchise agreement with Dubai-based Al Tayer group. Overall, took major steps to enhance its bridal registry across all product lines.

$120

$119

0.8%

1.0%

0.5%

8,828

8,362

Fiscal Jan. 29. Operated more than 8,800 stores in 35 states with a 12.8% sales increase and a comp increase of 9.5%. Total sales were $11.8 billion. While focused on consumables, the company is now putting expansion efforts in non-consumables including home with trend relevant designs and colors, updated brands and new packaging. Launching True Living brand as a home brand for kitchen and bath as well as outdoor, lawn and garden and kids. All True Living merchandises will have coordinatred packaging, and crisp color schemes. Expanded direct sourcing activities and plans for further expansion.

$93

$96

-3.1%

0.4%

136

135

Privately-held affiliate of Sun Capital Partners. Sales and store counts are for Shopko only and exclude five Shopko Express Rx stores. Also sells online at Shopko.com. Operates throughout 13 states in the Midwest, Mountain and Pacific Northwest regions. Opened one new store during 2009. Opened two Shopko Hometown stores, smaller in size and designed to serve smaller communities and markets, in two Northeast Wisconsin communities this May. Will open two more Hometown concept stores, later this summer. Launched its e-commerce platform in November 2009. Total 2009 sales estimated at $2 billion.

$75

$82

-8.5%

2.2%

0.3%

305

307

Fiscal Jan. 30. Privately owned, Belk’s had net income of $67.1 million for fiscal 2009, reversing a $213 million loss in the prior fiscal year largely attributed to improvements in merchandise margins. In ’09 the company opened three stores and expanded three. New merchandise initiatives have a focus on regional tastes and needs with an updated approach.

$75

$92

-18.5%

1.3%

0.3%

309

315

Fiscal year ended Jan. 30. Operates in 29 states located primarily in the southwest, southeast and midwest. Carries a broad selection of fashion apparel and home furnishings from national brand merchandise as well as exclusive brands. All merchandise categories experienced significant sales declines last year, with home and furniture down the most. Accounting for 7% of total sales, the home and furniture category was down 22.4% for the year. Total ‘09 sales were $5.89 billion, down 12.6% from $6.74 billion in ‘08. Opened two new stores in March ‘10 in Fairview and Austin, Texas. Will close the store in Helena, Mont., and will continue to close underperforming stores where appropriate.

$72

$78

-7.7%

93.4%

0.3%

Private, family-owned. Sells window treatments and drapery hardware, shades, fabrics, bedding, chair pads, decorative pillows, table linens and home décor, including rugs through its catalog, website and retail stores. The stores are located in 12 states along the East Coast from New Hampshire to Virginia, and from Boston to Chicago. Stores display window treatments in hundreds of styles, sizes and colors. Also offers custom window treatments.

$70

$75

-6.7%

0.3%

Fiscal year ended Jan. 30. Part of publicly held Sears Holdings Corp. Direct merchant offering traditionally-styled products for the home through catalogs, including the specialty Lands’ End Home catalog, its retail stores, its website and Sears full-line stores. Lands’ End retail stores, averaging 8,600 square feet, offer merchandise primarily from catalog and Internet channel overstocks. Continues to open Lands’ End Shops inside Sears’ fullline stores. In ’09, increased the number of “store-within-a-store” departments by 71 to 293 in ’09, including its first ones in the states of Alabama, Arizona, Iowa, Louisiana, Nebraska and Texas. Operates Lands’ End Shops at Sears in Canada, sales not included.

$69.4

$69

0.6%

0.7%

0.3%

183

Revenues based on worldwide sales, excluding food, services and vending. Market areas include worldwide Army/Air Force posts and bases serving active-duty personnel, guard and reservists, retirees and their families, some 7.3 million customers. Receives no funds from the Department of Defense. Has main stores or shopping centers worldwide and in every state. Textiles are carried in 183 main stores, the online website AAFES.com, and in print catalogs, including the interactive Home Decor catalog. Worldwide total 2008 sales were $9.8 billion, down from $9.9 billion in 2008.

htt110104_010_016 14

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New York International Gift Fair l PIERS 92 & 94, NYC

JANUARY 29 – FEBRUARY 3, 2011 AUGUST 13 – AUGUST 18, 2011

JAVITS CENTER

1/13/2011 6:43:03 PM

GLM_Jan31st_Issue.indd 1

nyigf.com

Velvet Pillows by Kevin O’Brien Studio

January 31, 2011

Home Textiles Today

Top 50

> hometextilestoday.com

R ETAILING GIANTS sales in millions of dollars

Rank

’08 Rank

Company, HQ & Store Type

HSN St. Petersburg, Fla. DTC

Ashley Furniture HomeStores Arcadia, Wis. FC

Hobby Lobby Stores Oklahoma City SP

Linen Source Tampa, Fla. DTC

Dollar Tree Chesapeake, Va. DS

Stein Mart Jacksonville, Fla. DC

Garden Ridge Houston SP

The Neiman Marcus Group Dallas DP/DTC

Fred’s Memphis, Tenn. DC

Cost Plus World Market Oakland, Calif. SP

2009

2008

Percent Change

Home Textiles as a Percentage of Store’s Total Sales

Share of Home Textiles Universe

$66

$64

3.1%

3.3%

0.3%

Number of Stores 2009 2008

Fiscal year ended Dec. 31. Part of publicly held HSNi, which also owns Cornerstone Brands. HSN sells a wide range of third party and private label merchandise directly to consumers through its television home shopping programming and its website. Offers a wide variety of textiles including bath and bedding, kitchen and table linens, pillows and throws, as well as slipcovers, window treatments and rugs. Home which also includes electronics, fitness and housewares, accounted for 54.8% of total sales in ‘09, up from 52.1% of total sales in ‘08. Total ‘09 sales were $2.0 billion, up 2.6% from $1.96 billion in ‘08. In August, HSN will launch a second 24-hour television shopping channel called HSN2.

$63.5

$61

4.1%

2.9%

0.3%

401

390

The largest chain of licensed and company-owned stores in to promotional to mid-priced range of furniture stores has expanded its non-furniture categories in rugs, throws, top of bed and decorative pillows. A new concept of under 5,000 square foot stores or store in store approach will capitalize on vertical space and integrate even more textile product with 300 stores expected to open this year. Each category will be merchandised at a single price point. Total 2009 sales were $2,130 billion, up 1.7% over 2008.

$60

$58

3.4%

0.3%

432

411

Privately held. Family-owned, founded in 1972. Also sells online. Operates stores in 37 states, primarily in the Midwest and Southeast. Stores average 55,000 square feet of selling space and are closed on Sundays. Opened 21 net stores in 2009. Plans to open 21 new stores in 2010. Also operates seven-store home furnishings retailer Hemispheres, located in Oklahoma City and throughout Texas, figures included. Home textiles mix includes handknotted rugs at Hemisphere’s stores and rugs and decorative pillows at Hobby Lobby stores. Total 2009 sales estimated at nearly $2 billion.

$58.5

$61

-4.1%

88.4%

0.2%

Previously owned by Thompson and Co., the direct to consumer home furnishing retailer was acquired in March by Orchard Brands Corp. which is owned by San Francisco based Golden Gate Capital. Linen Source was founded in 1943 as Colonial Maid Curtains. Orchard Brands operates 15 print catalogs and online businesses as well as ca number of non-home related retail store groups. Golden Gate’s retail investments include Eddie Bauer and J.Jill. Linen Source is moving its operations from Florida to Massachusetts and will put more emphasis oin exclusive product and upgraded merchandise.

$58

$56

3.6%

1.1%

0.2%

3,806

3,591

Fiscal year ended January 31. Operates under the banners of Dollar Tree, Deal$ and Dollar Bills in 48 states and the District of Columbia. Stores have an average of 8,480 square feet of selling space. Substantially all items sell for $1.00 or less. Opened 240 new stores in 2009, expanded or relocated 75 and closed 25. Home offerings include bath, kitchen and bedroom linens. Comp store sales were up 7.2% in 2009. Total 2009 sales were $5,231 million, up 12.6% from $4,645 million in 2008.

$56

$65

-13.8%

4.6%

0.2%

267

276

Fiscal Jan. 30. After several years of losses and uncertain direction, new management from David Stovall, Jr., president and ceo and Brian Morrow, chief merchant appear to be making progress. The home textiles and gifts areas, at one time markedly dimished, have been given new focus and direction. Plans for 2010 are conservative and focus on improving sales, expense and operating controls as well as a new supply chain process and information system enhancement.

$55

$59

-6.8%

0.2%

Privately held, fiscal year ended January. Is owned by a group of investors led by New York, private equity firm three Cities Research. Began as a one-store operation in San Antonio, Texas, in 1979, and now operates in 18 Midwestern and Southeastern states. Neither opened nor closed stores last year. Textiles include bed-in-a-bag with expansive product mix, as well as sheets, top-of-bed, towels, window coverings, pillows, tabletop linens, area rugs, utility bedding products and patio furniture cushions. Also features extensive seasonal textiles and decor products. Total 2009 sales estimated at more than $400 million.

$50

$65

-23.1%

1.4%

0.2%

Fiscal year ended Aug.1, 2009. Sales and store counts are for trailing 12 months ended Jan. 30. Operated 43 Neiman Marcus and Bergdorf Goodman luxury stores at the end of January and 28 clearance centers. Also sells through its online and print catalog operations of Neiman Marcus, Bergdorf Goodman and Horchow. Opened one specialty store and three clearance centers during 2009. Is a wholly-owned subsidiary of Newton Holding, controlled by investment funds affiliated with TPG Capital and Warburg Pincus. Trailing 12 month sales in 2009 were $3.55 billion, down 14.7% from $4.16 billion for the same period in 2008.

$46

$50

-8.0%

2.6%

0.2%

669

639

Fiscal year ended Jan. 30. Operates discount and general merchandise stores, generally serving low, middle and fixed-income households, in 15 states, primarily located in the Southeast. Founded in 1947. at year end, operated 669 stores, 24 franchised. Opened 30 net new stores in 2009. Pharmacies are included in 307 stores. Regularly stocks 12,000 frequently purchased products. The apparel and linens category accounted for 7.9% of 2009 total sales, down from 8.6% in 2008 and 9.9% in 2007. Sales per square foot were $188 in 2009, up from $184 in 2008. Comp store sales increased 0.4% in 2009. Total sales decreased 0.6% in 2009 to $1,788 million.

$44

$49

-10.2%

5.0%

0.2%

268

296

Fiscal year ended Jan. 30. Specialty retailer of casual home furnishings and entertaining products in 30 states under the names World Market, Cost Plus World Market, Cost Plus Imports and World Market Stores. Stores, averaging 15,700 square feet, offer textile products - rugs, pillows, bath linens, table linens, kitchen textiles and window coverings. Home furnishings decreased 16.2% in ‘09 and dropped to 59% of total sales last year compared to 61% in ‘08. The balance of sales comes from the retailer’s wide selection of gourmet foods and beverages. In ‘09, launched the World Market Explorer customer loyalty program to recognize and reward its best customers. Total ‘09 sales were $875.0 million, down 13.3% from $1.0 billion in ‘08. Opened two new stores and closed 30 last year. Expects to close five stores and relocate one this year.

htt110104_010_016 16

1/18/2011 1:57:10 PM

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1/11/2010 2:37:49 PM

Home Textiles Today

January 31, 2011

Top 15

HTT’s Top 15 Supplier Giants Mohawk Home

Est. ‘10 Sales

‘09 Sales

% Change

2 (’09)

$620

$629

-1.43

2 1 (’09)

Springs Global USA Est. ‘10 Sales

‘09 Sales

% Change

$542

$996

-45

Welspun USA Est. ‘10 Sales

‘09 Sales

% Change

3 (’09)

$498

$444

4(’09)

Est. ‘10 Sales

‘09 Sales

% Change

$423

$375

Est. ‘10 Sales

‘09 Sales

% Change

$396

Carpenter Est. ‘10 Sales

‘09 Sales

% Change

$308

$261

Pacific Coast Feather

Est. ‘10 Sales

‘09 Sales

% Change

6 (’09)

$289

$284

-3

htt110104_018_020 18

SIGNIFICANT EVENTS The US division of Brazil-based Springs Global is in transition mode as major accounts took the volume private label business that was long a mainstay of its sales directly to offshore manufacturers. For the Springs Global Corporation, the good news is that a robust Brazilian market now accounts for 44% of sales. The US operation pivoted last year by going after big brands that can offer international distribution as well as sub-branded mass distribution opportunities at home. New licenses include Diane Von Furstenberg, Sami Hayek and Water Works as well as the reintroduction of Springmaid as a Target exclusive and Cindy Crawford Home at JCP.

While its corporate parent, Welspun India, is generating strong growth from Europe, the UK, the domestic market in India and other parts of the globe, the US division was able to capitalize on China’s woes despite higher raw material pricing. Welspun USA unveiled a new label with designer Tom Felicia, struck an agreement with Louisville Bedding for distribution in Canada and forged an alliance with Kojo Worldwide to step up its global reach in the hospitality arena. The biggest news of the year came in the form of a corporate restructuring just ahead of the fall market which brought in US industry veteran Barry Leonard as president and ceo after more than eight years at the helm of Glenoit/Excell/Croscill.

Anyone who hadn’t been paying attention would be surprised at the strong sales growth at WestPoint Home, now a division of billionaire investor Carl Icahn’s Icahn Enterprises Inc. But after a truly miserable 2009, WestPoint was able to leverage its production facilities in Bahrain and Pakistan to take advantage of the retailer-direct flight from China in the face of higher labor costs. New introductions included the launch of Caribbean Joe and Hanes in bed and bath. But the company faces a formidable challenge in 2011 as Ralph Lauren Home, its longtime upstairs license, takes some production in-house. WestPoint retains the utility bedding business and says it has assurances that some of the fasion bedding and bath production will take place at its off-shore plants.

SIGNIFICANT EVENTS Making its first appearance on the Top 15, Alok Industries’ US division, Alok

Alok US

NA (’09)

9 (’09)

SIGNIFICANT EVENTS Up against what it described as another tough year, Mohawk Home traded a steady rate of unit volume sold at retail for a decrease in dollars as retailers downshifted to lower price points. Consumers traded down from higher-end wovens to cheaper-priced goods, such as tufted and printed constructions, that they could afford. As a result, the company said its market suffered a 15% to 20% price erosion in the rug business. Mohawk’s tufted and printed rug segments, which carry $49 to $99 retail-priced pieces, grew by about 5% while wovens and other better goods within the $149 to $199 bracket struggled. Bath rugs kept the pace, but the highlight for Mohawk in the year was its doormat segment, which grew 16.3% to $64 million. New placements at retail for existing and new product introductions like its Chrome-rubber mats pushed numbers upward by double digits.

SIGNIFICANT EVENTS

WestPoint Home

5 6

(sales in $millions)

SIGNIFICANT EVENTS

> hometextilestoday.com

expanded its U.S. customer base with a company-owned U.S. distribution facility. Proprietary/ trademark features like Sheersoft, Optifit and Alpha Cotton were well received and helped in growth. Towels, a relatively recent addition for the sheet manufacturer, gained firm footing – and the company expects huge growth in the category going into 2012. Alok also expanded into several new categories, including blankets, decorative pillows, and tote bags.

SIGNIFICANT EVENTS Working in the better end of the market, Carpenter responded to higher raw material costs by raising its prices. It also experienced growth with its drop-ship program for internet retailers — an especially strong channel for bed pillows. In addition, Carpenter stepped up its consumer marketing and commissioned a music video — “2 men and 600 pillows” — that went viral with some four million hits.

PCF completed plant consolidations into its new facility in Henderson, N.C., and also opened its first production plant in Europe. The company saw slight increases in mattress pads and pillows, but did well in the comforter category. A key factor now and moving forward: managing margins and focusing on in-store productivity, the company reported.

SIGNIFICANT EVENTS

1/19/2011 10:08:09 AM

Home Textiles Today

January 31, 2011

Sleep Innovations

Est. ‘10 Sales

‘09 Sales

5 (’09)

$275

$300

% Change

-8

It was a year of transition for Sleep Innovations, which brought in a new executive team led by Michael Thompson, ceo. In addition to new gel bead technology infused into memory foam to take its core pillow and topper business to a new level, Sleep Innovations expanded into foam furniture pieces and products aimed at college-dorm dwellers, senior citizens, pregnant women and new mothers to expand its distribution options.

SIGNIFICANT EVENTS Shaw continued to focus on its eco initiatives while revamping its ap-

Shaw Living Est. ‘10 Sales

‘09 Sales

% Change

7 (’09)

$274

11 (’09)

> hometextilestoday.com

SIGNIFICANT EVENTS

9 10

Top 15

proach to the rug business through the consolidation of its production distribution domestically, the launch of new selling tools for retail partners and the marrying of some of its successful broadloom programs with a healthy assortment of coordinating area rugs. Shaw sought to improve efficiencies by embarking on the first phase of the consolidation of its rug distribution facility at Ringgold, Ga., for machine-made woven and tufted rugs. Finally, Shaw created synergy between its broadloom business and its area rugs by forging the two with a special new program dubbed Woven Expressions.

SIGNIFICANT EVENTS Hollander saw an increase in sales across all categories for 2010. According to the company, new merchandising and marketing initiatives as well as increased market share in a variety of distribution channels paved the way for an increase. The company also added several licenses to its portfolio, including Waverly and Homedics.

Hollander Home Fashions Est. ‘10 Sales

‘09 Sales

% Change

$272

$246

Maples Rugs

Est. ‘10 Sales

‘09 Sales

% Change

8 (’09)

$260

SIGNIFICANT EVENTS Even though Maples Rugs had a good year in bath rugs, the company took some hits in its rug division in 2010. In the end, it left the company’s total sales unchanged from 2009 at $260 million. Maples’ bath rugs experienced an 8% growth – to $130 million from $120 million in 2009 — thanks to placement gains with discounters and mid-tier department stores for its Invista-branded performance products. Encouraged, the company added in the fall a higher-ticket collection to the licensed program – Invista Luxura – which is a 990-denier nylon microfiber that for Maples represents its “top-of-the-line” bath rug. Offsetting that increase was the 7% decline in sales of area and accent rugs, to $130 million from $140 million the prior year, despite the company’s efforts to bring eco-friendly PET-fiber-made assortments in shag and other constructions.

SIGNIFICANT EVENTS The table linens and kitchen textiles categories for Town and Country Living

12 10 (’09)

13 13 (’09)

Town and Country Living Est. ‘10 Sales

‘09 Sales

% Change

$247

continued to be anchor businesses for this longtime supplier of multiple products, including bath, fashion top-of-bed and decorative pillows. Armed with an ever-growing catalog of licenses spanning juvenile through adult markets, Town and Country kept its business even with 2009. Both the table linens and kitchen textiles business posted flat sales for the year, with $174 million and $73 million again, respectively. It overcame raw material and production- and distributionrelated price increases via strong product development and new product introductions as well as in-roads at retail with additional placements and new business. The company’s list of licenses includes KitchenAid, Farberware, Paula Dean, Debbie Mumm, Ralph Lauren, and Disney. Revamped and expanded its value-oriented assortment by developing a new category of rugs that hit a more promotional price bracket than previously offered by the company. The new line targeted national mass accounts, and it worked out, helping boost OW/Sphinx’s 2010 sales by double digits. Also aiding the company last year were other factors. The Cairo, Egypt-based parent restructured it corporate operation, benefitting the U.S. segment. New Axminster product offerings and middle-price goods were also a highlight at retail for OW/ Sphinx. And finally, Oriental Weavers Group’s reorganized and rebranded its hospitality carpet and rug company, Cambridge Weavers Ltd.

SIGNIFICANT EVENTS

Oriental Weavers/ Sphinx Est. ‘10 Sales

‘09 Sales

% Change

$242

$218

11%

(revised)

1888 Mills

Est. ‘10 Sales

‘09 Sales

% Change

NA (’09)

$240

SIGNIFICANT EVENTS Moving to break free from the maw of no-name private label production,

CHF Industries

Est. ‘10 Sales

‘09 Sales

% Change

12 (’09)

$224

$215

htt110104_018_020 20

SIGNIFICANT EVENTS The only towel manufacturer that still produces in the United States — as well as at owned facilities in Pakistan and Bangladesh. 1888 Mills continued to build out its kitchen towel business while racking up solid sales gains in its core bath towel line. The company’s total sales (not refected here) also include commercial and retail bedding as well as commercial apparel.

CHF over the past few years has focused on national brand programs, which constitute 75% to 80% of its business. The company brought Kate Spade back into bed and bath through a licensing deal and continues to be one of the innovative suppliers in the juvenile bedding area.

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1/4/2010 5:48:42 PM

Home Textiles Today

Top 5

January 31, 2010

> hometextilestoday.com

Supplier Giants Bath Accessories 1. Allure Home Creation Boonton, N.J.

’10 Sales $mil

’09 Sales $mil

$80

% Chg.

Comments

In light of the struggling economy, Allure turned its focus to building up its basics business, creating more free-standing options, and developing more value-oriented promotions..

Central Islip, N.Y.

-9

Unit sales were up significantly thanks to new freestanding opening price point USA-made plastic ensemble sets that sold well at major discount stores; on the flip side, imported coordinated ensembles sales were less strong.

3. Croscill Home

The company maintained flat sales despite multiple cost increases thanks to strategic planning efforts in managing its business.

-42

Springs has begun putting more emphasis on higher-margin, nationally branded programs that can deliver better margins.

2. Creative Bath Products

New York

4. Springs Global USA New York.

5. Ex-Cell Home Fashions New York

1. Mohawk Home Sugar Valley, Ga.

2. MaplesRugs Scottsboro, Ala.

3. Shaw Living Dalton, Ga.

4. Springs Global USA New York.

5. Faze Three Ltd. Columbus, Ind.

’10 Sales $mil

’09 Sales $mil

$196

130

120

Shaw’s bath business remained fairly static over the year, as price points and distribution remaining solid.

-47

Sales in this category continue to fall victim to retaildirect programs from large accounts.

Faze Three gained some additional placements and experienced a mild recovery of some current programs that had suffered slightly.

Comments

The company managed to hold sales in line with last year by churning incremental gains in market share. Maples saw its bath rug volume increase in the year as the company picked up additional placement with its discount and mid-tier retail customers.

Bath Towels 1. Welspun USA New York

2. 1888 Mills Griffin, Ga.

3. Trident New Delhi, India

4. WestPoint Home New Yorkk

5. Springs Global USA New York.

As was the case with a sister category, shower curtains, bath accessories top five players struggled in 2010. Basics in promotional price brackets were the preferred route shoppers took throughout most of the year. Suppliers responded with simple freestanding styles priced affordably. The result was a status quo year for most of this list, and some declines for others.

The company maintained flat sales despite multiple cost increases thanks to strategic planning efforts in managing its business.

Bath Rugs % Chg.

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

$284

$261

Despite higher cotton prices, Welspun expanded its volume in a category where it already has a heavy penetration.

180

173

Diversity of production — U.S., Pakistan and Bangladesh — gives 1888 fexibility in addressing rising raw material prices.

157

145

Trident/Abhishek Industries recently completed the expansion of its terry towel capacity to 374 looms, adding 24 new looms and upgrading 18.

114

110

Innovations like its bleach-resistant caught fire last year and helped move the category out of a me-too commodity posture.

130

-30

Comments

Wrap-Up For the top five bath rug suppliers, 2010 was a respectable year with acceptable flat sales for some and much appreciated gains for others. Pricing pressure affected all the major players, but for the most part they were able to overcome hurdles in the year. Maples and Faze Three were most successful, producing significant gains in light of the stillchallenging economy. Category suppliers are now bracing for steeper obstacles in 2011, when they will have to battle shortages and steep price increases for cotton as well as for oil-based fibers, all of which ultimately intensify pricing pressures.

Wrap-Up It was a good year to have towel production located outside of China, where the rising labor costs combined with sharply higher cotton costs to make what is almost always a 100% cotton product more expensive. Towel manufacturers also rolled out “quick dry” towels – lighter-weight products that sought to avoid higher retails as much as possible by using an eco-friendly spin.

Strong demand from Brazil consumers more of the parent company’s resources, Springs embarked on an ambitious brand-building strategy this year.

Source for all chart information: Home Textiles Today market research.

htt110104_022_030 22

1/19/2011 10:17:11 AM

Top 5

> hometextilestoday.com

January 31, 2010

Home Textiles Today

Supplier Giants Blankets 1. Sunbeam Boca Raton, Fla.

2. Berkshire Ware, Mass.

3. WestPoint Home New York

4. Springs Global USA New York.

5. Pendleton Woolen Mills Portland, Ore.

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

$121

$118

-2%

Dollar volume hampered by price depression and expanded number of companies playing in the electric blanket category.

Price pressures continue to loom large, but company credits creative supply management and adding new accounts for its good performance.

WestPoint added some branding muscle to the category with the launch of Carrebbean Joe and debut of Hanes, building on the Izod franchise it unveiled in 2009.

-18

Higher raw material prices and major accounts’ emphasis on going direct impacted the category.

Pendleton credited a multi-channel approach and a diverse customer base with the increase. The company also benefited from locking in a supply of lower cost wool.

Comments

Comforters ’10 Sales $mil

1. Springs Global USA New York

2. Royale Linens/Yunus Kearney, N.J.

3. WestPoint Home New York

4. Welspun USA New York

’09 Sales $mil

% Chg.

-29%

Springs is looking to rebuild the fashion bedding business with the creation of diffusion lines – more commonly know as sub-brands – for some of its new marquee brands, especially DVF by Diane Von Furstenberg.

Pricing pressures were a problem, but the company responded with more blended product.

After a soft 2009, WestPoint Home began regaining placements..

Production in Mexico as well as India helped give Welspun a major cost advantage in a year characterized by price increases.

-22

The Croscill brand – now a part of the aggregated Croscill/ExCell/Glenoit company – is still looking for a purchase in a category now dominated by retail house brands and exclusive licenses.

$124

$174

5. Croscill Home New York

Comments

Shower Curtains 1. Maytex Mills Yonkers, N.Y.

2. Ex-Cell Home Fashions New York

3. Allure Home Fashions Boonton, N.J.

4. Creative Bath Products Central Islip, N.Y.

5. Springs Global USA New York

’10 Sales $mil

’09 Sales $mil

% Chg.

Comments

$109

$91

19.5%

The double-digit increase was driven by placement gains at most major retail customers’ stores for Maytex’s new and innovative product introductions.

The company maintained flat sales despite multiple cost increases thanks to strategic planning efforts in managing its business.

In light of the struggling economy, Allure turned its focus to building up its basics business, creating more free-standing options, and developing more value-oriented promotions.

-9

Customer orders were sluggish in the first half of the year and then picked in the back half, but not enough to offset earlier losses; sales of liners increase over fashion goods.

-36

In what was a difficult year for many in the category overall, Springs devoted more of its energies to categories where fashion and branding lead.

Overall, the category had a good 2010, with Mother Nature providing the cold weather and an improving economy providing the cash. Price pressures abound, but many found new channels to focus on, including increasing their online presence. New companies continued to enter the category, especially fashion bedding producers seeking ways to expand their total volume.

Wrap-Up In an abrupt turn from the heady days of globalization, the number of pieces stuffed into a bag dropped as manufacturers and buyers look for ways to hold the line on retail pricing – as much as possible. Blends became a bigger factor to offset higher cotton pricing, while textural prints swung into action along with embellishments to offer better perceived value.

Wrap-Up Similar to its bath accessories counterpart, shower curtain sales in 2010 proved a mixed bag of results among the top suppliers, as only Maytex Mills posted a gain – and significant, at that. As consumers largely held off on redecorating their bathrooms with new looks, category players focused on the basics and sharp price points. The second half of 2010 saw sales pick up but only slightly, leaving suppliers with flat to negative results for the year.

Source for all chart information: Home Textiles Today market research.

htt110104_022_030 23

1/19/2011 11:28:40 AM

Home Textiles Today

January 31, 2010

Top 5

> hometextilestoday.com

Supplier Giants Decorative Pillows 1. Brentwood Originals Carson, Calif.

2. Spencer N. Enterprises El Monte, Calif.

3. Arlee Home Fashions New York

4. Home Fashions International New York

5. Newport/Layton Home Portland, Ore.

’10 Sales $mil

’09 Sales $mil

% Chg.

$138

Margin pressure caused by the volatile raw material markets was partially offset by strong growth in the company’s outdoor cushion business.

Business remained steady as the company lost some placement with a few customers but recovered that business by gaining new placements with other major retailers.

Refocused design direction to expand product mix with new basic and embellished looks for broader appeal.

10%

Despite losing some placement at a major discount department store, the company gained significant additional business with new and existing retail customers.

The company’s retail customers moved the merchandise as shoppers picked up their spending in the category; continued successes with the outdoor cushion business.

Comments

Down (& Down Alt.) Comforters ’10 Sales $mil

’09 Sales $mil

% Chg.

$88

$83

Modest growth came from existing and new customers in the retail and hospitality sectors. Cost pressures resulted in lower unit sales at some retailers, but Downlite was still able to grow business overall.

A solid year for PCF in this category, the company credits its branded goods and its value-added offerings for the uptick.

-4

Unprecedented costs in everything from labor, freight and materials made it a challenging year for the company.

-9

Phoenix sold fewer items in higher price points, ending down for the year. Its staple products did better, according to the company.

Hollander reported it gained share through product development initiatives as well as through brand offerings to end the year on an upswing.

1. Downlite Mason, Ohio

2. Pacific Coast Feather Seattle

3. Blue Ridge Home Fashions Irwindale, Calif.

4. Phoenix Down Totowa, N.J.

5. Hollander Home Fashions Boca Raton, Fla.

Comments

Foam Pillows/Toppers 1. Carpenter Richmond, Va.

2. Sleep Innovations West Long Branch, N.J.

3. Sleep Studio New York

4. Hudson Industries New York

5. Louisville Bedding Louisville, Ky.

’10 Sales $mil

’09 Sales $mil

% Chg.

$299

$251

19%

Carpenter introduced Avena, a new memory foam technology, and combined several of its solutions technologies into new items.

234

255

-8

With a new executive team on board, Sleep Innovations put its efforts into the developing foam products beyond its core pillow and pad business to reach other channels of distribution.

Hudson reports that volume growth cam from new Polar Foam line, a major uptick in e-commerce placement and overall category growth.

-12

Sales were down for Louisville, which continues to concentrate on benefits and solutions based products in all its bedding categories.

Comments

Growth came from an expansion of its customer base for its ViscoFresh memory foam toppers and pillows.

Wrap-Up The decorative pillow category proved “recession proof” for the top players, as retailers across the board – from discounters to department stores – had success with these affordable accessories for the home. As a result, three Top 5 suppliers posted sales gains and the remaining two managed to stay flat over 2009. For Brentwood and Newport, the outdoor living segment of the business was a sales driver in the year. For the others, it was a matter of shifting placements, losing space in some cases but offsetting that with new business elsewhere. Also supporting category growth was the pet cushion segment.

Wrap-Up Brands led the category, which overall showed a significant drop in units sold. Raw materials costs took their toll as well. Companies that were able to manage or pass along increases saw better results.

Wrap-Up The category is still heavy on new technologies and promises of better sleep. Cooling gels were a big trend in 2010, as companies continued to develop products that produced comfort nirvana for recession-weary consumers. So far, the category has remained largely immune to the direct-sourcing trend among big box retailers. But like every other category, foam got hit with higher raw material prices.

Source for all chart information: Home Textiles Today market research.

htt110104_022_030 24

1/19/2011 10:22:17 AM

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Home Textiles Today

January 31, 2010

Top 5

> hometextilestoday.com

Supplier Giants Kitchen Textiles 1. Town and Country Living New York

2. Franco Manufacturing Metuchen, N.J.

3. The John Ritzenthaler Co. West Conshohocken, Pa.

4. 1888 Mills Griffin, Ga.

’10 Sales $mil

’09 Sales $mil

% Chg.

$73

Franco Mfg. continued to make strides in its kitchen textiles business by maintaining placements and expanding its licensed offerings.

3.3

The company’s overall business stabilized, and new product introductions were well received at retail.

18.5

New placements and business was gained for the company’s utility products, increasing sales steadily another year.

Elrene maintained its core placements at retail as well as expanded its seasonal offerings. Additionally, the company added two new solid-colored kitchen toweloven mitt-pot holder set programs.

5. Elrene Home Fashions New York

Wrap-Up

Comments

The company continued to develop new products and make in-roads at all levels of retail; the company also saw success with its roster of licenses.

Mattress Pads 1. Louisville Bedding Louisville, Ky.

2. Perfect Fit Charlotte, N.C.

3. Pacific Coast Feather Seattle

4. Hollander Home Fashions Boca Raton, Fla.

5. Springs Global USA New York

The slow economy kept people at home and cooking in their own kitchens, away from restaurants, sparking sales of kitchen textiles. Utility products were a driver, not surprisingly, and 1888 Mills stood to gain with new placements and strong category sales. Basic goods, such as solid-colored looks, were also a hit in 2010, as were pre-packaged sets and ensembles that could retail at more promotional price brackets.

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

$69

Still a leader in this category, the company got kudos for its patented Expand-A-Grip feature in a year with flat year to year results.

-9

Business remained flat, and inched down in mattress pads, mostly driven by direct import placements according to the company.

A soft category in the last few years, PCF held its own with an emphasis on protection capabilities as well as comfort.

Increased market share by growing our better mattress pad business, reacting to consumer’s needs that concentrated on added features and benefits.

-52

Commodities businesses were hard-hit last year, especially as production shifted out of China to other countries.

Comments

A difficult year for mattress pads. Taking a cue from other utility categories, mattress pads were outfitted with new features and benefits.

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12/13/2010 11:08:52 AM

Home Textiles Today

January 31, 2010

Top 5

> hometextilestoday.com

Supplier Giants Rugs

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

Comments

$360

$377

-4.5%

Top line sales were slightly down due to industry-wide price compression, but the company maintained its retail placement and overall units shipped.

220

Units were up slightly but dollars were flat due to consumers’ increasing demand for lower price point rugs at the expense of higher-end products.

218

The company expanded market share in the promotionally priced category as retailers sought value to attract customers; the Axmisnter product lines and mid-priced products also helped drive sales; and rug pad sales jumped.

Saddle Brook, N.J.

148

145

The company expanded its more affordable price point assortments by manufacturing new machine-made varieties and moving them at the discounters.

5. Maples Rugs

130

140

-7

Maples Rugs increased placement with existing retail customer base, but was hit as some of those chains shut units.

1. Mohawk Home Sugar Valley, Ga.

2. Shaw Living Dalton, Ga.

3. Oriental Weavers/Sphinx Dalton, Ga.

4. Nourison Rug

Scottsboro, Ala..

242 (revised)

Sheets & Pillowcases 1. Alok Industries US New York

2. Springs Global USA New York.

3.Divatex New York

4. Welspun USA New York

5. WestPoint Home New York.

’10 Sales $mil

’09 Sales $mil

% Chg.

$243

Alok’s core category management to power away even as the company has moved into fashion bedding, dec pillows, blankets and towels.

178

287

-38

Although Springs sources from around the world, rising costs in China and tough currency exchange from its parent company’s production base in Brazil impacted business.

175

165

Solid growth for the company, which prides itself on running at maximum efficiency.

171

143

Welspun continues to gain traction, focusing on solutions placements.

103

100

WestPoint Home began to build back business using new brands and a host of solutions-oriented products. Its production on Bahrain gave it a cost advantage as cotton prices were shooting up globally.

Comments

Curtains/Draperies 1. S. Lichtenberg New York

2. CHF Industries New York

3. Ellery Homestyles New York

4. Croscill Home New York

5. Springs Global USA New York.

’10 Sales $mil

’09 Sales $mil

% Chg.

$159

153

The consumer shift to value products boosted Lichtenberg, which does a big mass market business. The company also mourned the passing of president Herbert Lichtenberg, who passed away after more than 40 decades at the helm.

A focus on coordinates for its national branded business at key retailers as well as a stepped presentation of fashionforward energy-saving constructions helped push sales.

The company had its best year in the category, with its Eclipse brand and overall offerings gaining shape at retail.

-10

The company is looking to tap its design background in this area to revitalize sales in what had once been its core strength.

-42

As Springs has shifted its emphasis to branded fashion textiles with better margins, its role in the curtain sector continues to dwindle.

Comments

Just as it did last year, price deflation hit rug suppliers again in 2010. But this time, category suppliers were more prepared to tackle it – somewhat. Low-end through upscale rug players on this list came out en force with sharper priced products, largely in the synthetic machinemade category but also in handtufted categories, to drive sales. The tactic helped OW/Sphinx earn a low double-digit increase, Nourison rise a couple of points and Shaw maintain flat sales. And even though synthetic rug manufacturers Maples and Mohawk suffered declines, their efforts to ante their value-driven assortment prevented them from suffering steeper losses.

Wrap-Up Indian mills got a big boost this year as higher costs in China combined with higher cotton costs to send buyers scrambling for cost savings wherever they could find them. Sheet manufactures responded by amping up blended products.

Wrap-Up Black-out and energy-saving constructions created a lot of buzz, with several companies jumping into the fray after the watching Ellery Homestyles’ Eclipse curtain explode off shelves. Cotton constructions fell to poly, but many suppliers managed to step up the hand of synthetic goods. Another notable entry in the field in 2010 was Louis Hornick’s introduction of Firefend, the first fire-retardant fashion window covers for residential use.

Source for all chart information: Home Textiles Today market research.

htt110104_022_030 28

1/19/2011 10:26:37 AM

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Home Textiles Today

Top 5

January 31, 2010

> hometextilestoday.com

Supplier Giants Sleep Pillows 1. Hollander Home Fashions Boca Raton, Fla.

2. Pacific Coast Feather Seattle

3. Louisville Bedding Louisville, Ky.

4. Perfect Fit Industries Charlotte, N.C.

5. Springs Global USA New York.

’10 Sales $mil

’09 Sales $mil

% Chg.

$197

$180

Growth for Hollander came from market share gains (new and existing retailers) and new placements from an expanded brand portfolio.

134

133

Pillows were a mixed bag for PCF, with its upper tier offerings faring better.

Offering body pillows, dust-mite and allergen reduction items and other benefit-specific products, Louisville continues to market itself as a solutions-based company.

Pillows remained flat pace to the year before, with the company reporting sales were good on better pillows.

-42

Comments

New York

2. Elrene Home Fashions New York

3. Bardwil Linens New York

4. Homewear Linens New York

5.Windham Weavers New York

’10 Sales $mil

’09 Sales $mil

% Chg.

$174

The company continues to develop new products and make in-roads at all levels of retail; the company also saw success with its roster of licenses.

Elrene enjoyed organic growth with its programs at major mass merchants, and the company also saw its retailer-supported ecommerce business rise considerably.

Bardwil’s growth continues to stem from its solid-colored tablecloth and placemat business, as well as from successful sell-throughs for its licensed brands — Lenox, Tommy Bahama and Vera.

Market share gains helped the company continue on its annual trend of sales increases, as did successes with its private label and Homewear-branded products at retail.

Windham maintained all of its placement programs with its existing roster of retail customers.

Comments

Throws

Boca Raton, Fla.

2. Manual Woodworkers Hendersonville, N.C.

3. Ellery Homestyles New York

4. Berkshire Blanket Sugar Valley, Ga.

5. Downlite Mason, Ohio

Wrap-Up As the nesting trend persisted among cash-strapped consumers, table linens suppliers stood to gain in 2010. Consumers still too cautious to spend on restaurant dining opted to eat in and entertain at home, giving them cause to spend their limited discretionary dollars on new fashions for their tables, especially evergreen looks like solids. The result: A healthy year for top category players in an otherwise still-challenged economy. Top five list newcomer Homewear Linens/Sam Hedaya Linens staked fourth place, bumping Windham Weavers down a notch.

Wrap-Up

’10 Sales $mil

’09 Sales $mil

% Chg.

$109

$93

17%

The family-owned company, now in its third generation, jumped on the bird motif trend while continuing to offer a broad assortment of styles.

Ellery “held its own” in this category, reporting solid results across its customer base.

New fabrications and designs helped create interest in the category, which managed an increase at the end of the year.

Downlite’s growth in this category continues to be fueled largely by its exclusive licensed brands. (Company includes filled blankets and throws in the category.)

1. The Northwest Company

Still the workhorse category of utility bedding, pillows stood firm in 2010. Features and benefits touted everything from pillows designed for side sleepers to those that can help with snoring.

During the year, responsbility for much of the company’s business shifted to the New York office, with utility bedding left in compay’s traditional headquarters in Fort Mill, S.C.

Table Linens 1. Town and Country

Wrap-Up

Comments

Northwest reported its strongest year ever due to its profitable licensing partnerships. Evergreen properties such as the NFL allow the company to play at virtually every retail tier.

The biggest event in this category was the shuttering in late 2009 of longtime power player Biederlack of America, which was brought down when a major customer shifted the business into direct sourcing. The German parent company has been putting some programs into the market at the higher-end niche sector. Overall, licensing remains the key component in this category. Trends such as faux fur also gave the category a lift.

Source for all chart information: Home Textiles Today market research.

htt110104_022_030 30

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Home Textiles Today

Facts

January 31, 2011

> hometextilestoday.com

Pricing Weighs Heavily on Top of Bed BY JILL ROWEN NEW YORK —In the year that just

passed, many may have wanted to just pull a cover over their heads, including suppliers in the top of bed (TOB) category. As the first of HTT’s bedding reports, (basics and sheets and pillowcases will follow) the results were predictable and were right in line given the circumstances. Two of the bellwether events — the demise of Linens & Things and the economic meltdown of 2008/2009 — can be seen in the numbers. An economic turnaround will help, but pricing issues, both at retail and at the manufacturing site looms large as a concern for 2010. Results show that the overall category was down about 6.4% to $2.5 billion for 2009. No sector within the category was spared. Bedspreads and coverlets fared better than other items, but still declined by 3.5% for the year, to $170 million. Comforter and filled bedding sets took the biggest hit, with a decline of 6.7%, to $1.47 billion for the year. The latter number may reflect the slow, but steady move away from mega-size comforter sets.

The numbers also reflect a dwindling volume overall, as retailers streamlined their offerings and inventory. According to Frank Snow, vp merchandising and operations, Royale Linens, the consolidation is ongoing. “Each retailer has its own strategy of eliminating skus that haven’t been performing and conforming to their needs,” he said. Comforters, for instance, were one of the product areas that left retailers with excessive inventory when the downturn hit — a scenario few want to repeat. A few suppliers saw an uptick in online purchases, as well, though that distribution venue suffered along with everyone else. “Top of bed is probably the biggest soft goods category online,” noted Frank Foley, ceo, CHF. “But it has a long way to go to catch up to traditional retail outlets.” Not surprisingly, single-unit home specialty stores were the hardest hit in the last year, with a decline of 21%. Mom and Pop can’t compete with Walmart. Home textiles specialty chains — LNT’s category — dropped 14.2%; and department stores were down 11.2%. Only two distribution channels managed

increases for the year: off-price chains, up 4%; and warehouse clubs, up 0.9%. Consumers may have found bargain luxury goods at both venues at prices they could digest to spark that category. One of the concerns looming large for TOB going forward is pricing, which Snow believes has yet to reach “critical mass.” The increases in material costs coupled with retailers looking for the sweet spot are at odds and have been for a long while. “Unit production has stayed the same, but what you’re getting for it is less,” noted Amy Bell, executive vp, HFI. “There is price compression from both ends: raw material costs and what retailers are willing to pay.” “It’s one thing on everybody’s mind,” agreed Foley. “The price of cotton has been erratic, and rising fuel costs will impact the cost of polyester and other synthetics.” “From the cotton and fuel costs, which invariably increase the cost of the yarns, the cost of manufacturing and everything else — the consumer has not yet seen these costs passed on to them,” said Snow. “Pricing hasn’t reached the retail counter and average prices are falling while

Top of Bed Categories

($millions)

2009

Comforter sets/bedding sets $1,470.00

2008

CHANGE

% OF TOTAL 2009

% OF TOTAL 2008

$1,575.30

-6.7%

58.8%

59.0%

Comforters

460.00

491.28

-6.4%

18.4%

Bedspreads/coverlets

170.00

176.22

-3.5%

6.8%

6.6%

60.00

64.08

-6.4%

2.4%

340.00

363.12

-6.4%

13.6%

-6.4%

100.0%

Duvet covers Quilts Total

Distribution Channels Home textiles specialty chains

$2,500.0

2009

$2,670.0

2008

CHANGE

2009

$320.4

-14.2%

11.0%

12.0%

52.5

66.7

-21.3%

2.1%

2.5%

Department stores

137.5

154.9

-11.2%

5.5%

5.8%

Mid-price chains

475.0

520.6

-8.8%

19.0%

19.5%

1,075.0

1,121.4

-4.1%

43.0%

42.0%

125.0

120.2

4.0%

5.0%

4.5%

Discount dept. stores Off-price chains Variety/closeout

95.0

96.1

-1.1%

3.8%

3.6%

170.0

173.6

-2.1%

6.8%

6.5%

Warehouse clubs

70.0

69.4

0.9%

2.8%

2.6%

Other

25.0

26.7

-6.4%

1.0%

$2,500.0

$2,670.0

-6.4%

100.0%

Direct-to-consumer

Total

Source: HTT research

htt110105_032 32

consumers are choosing to add color to their homes, with decorative pillows or TOB as the easiest way to accomplish that. According to Galili, color is making a comeback. “It’s not crazy colors, but really great blues, for instance. There are new designs with bigger medallions and embroidery that you don’t typically see in promotional price points,” he said. “We’ve had a good year, and that’s because we do a lot of market research into what our customers and their customers really want,” said Carol Antone, vp marketing, PHI. “We focus on design creation and development. We put a lot of energy in packaging, presentation and design. Beyond the pure basics, today at retail there has to be something with a lot of detail that will catch your eye.” Antone noted that having a large part factory ownership has helped the supplier get the best prices it can, an important element in a frugal economy. “We really watch our costs at every step,” she said. “We have to remind people that this is ultimately a fashion business, and that’s what we have to be striving for,” explained Snow. At Royale Linens, one of the new looks includes a Tencel fabric duvet with an animal skin design featuring a tone on tone color story that coordinates back to a range of solids. “Color and layering of patterns continues to be a strong trend direction for 2010,” reported Piemonte. While vendors and retailers hash out the pricing, fashion may be the answer, as new offerings give consumers a reason to go shopping again, especially if they are given something new and exciting. HTT

2008

$275.0

Single-unit home textiles specialty stores

products actually moved up in quality and grade.” According to many vendors, the challenge will be how retailers will be able to position themselves well and decide what an ever more discerning customer is willing to pay for TOB products. “It’s all about perceived value right now, and the consumer is savvier than ever,” said Bell. “She knows the max price she’s willing to pay.” While HFI saw a dip in its bedding business during 2009, it is going strong with new introductions for 2010. Bell noted that traditional looks are still strong, with transitional, modern and contemporary also making a splash. “We’re seeing interest in quilts and duvets. We are a jacquard mill, so that’s our strong suit, but we’re seeing embroidery and piecing also on the rise,” she said. Revman is offering a more modern story as well. “We are seeing increased interest in duvet covers and quilts, more than in previous seasons,” said Diane Piemonte, vp, creative services, Revman. “Consumers seem to be more receptive to using alternative TOB products. I feel this may be because of the very strong trend to more modern looks in bedding. Duvets and quilts have a sleeker, newer look than traditional comforters and their clean lines complement graphic patterns, which continue to be one the strong print trends. “ “There are retailers that only ask for price, but a few of them are pushing the envelope,” said Jessie Galili, vp sales at Hallmart. “They are asking us, ‘show me something that we haven’t seen before that will really give us something to showcase.’” While not necessarily redecorating whole rooms,

METHODOLOGY In determining product category sales figures, as well as determining retail sales for those categories by channel of distribution, the editors and research department of Home Textiles Today used data compiled from a variety of sources, including publicly filed financial reports, vendor sales information compiled by the editors, and information provided by retailers and home fashions suppliers. Home Textiles Today will produce a series of three reports on bedding, of which this is the first, breaking the overall bedding category into three of its component parts: Top of The Bed; Utility Bedding, Blankets and Throws; and Sheets & Pillowcases. The research was compiled by editorial contributor Jill Rowen; Dana French, director of market research; and Jennifer Marks, editor-in-chief.

1/18/2011 2:06:56 PM

Facts

Home Textiles Today

January 31, 2011

Table and Kitchen Textiles Look to Leverage a Good Year BY CECILE B. CORRAL N EW YORK — Table linens and kitchen textiles suppliers reaped the most benefits from a noticeable uptick in consumer spending in 2009 as shoppers returned to the stores with a focus on stillaffordable, smaller decorative items — and utilitarian pieces, as well. By the second quarter of 2009, retailers were reporting gains in and expansions to their kitchen textiles and/or table linens businesses. In Walmart Stores’ second quarter, sales in kitchen, dining and food preparation products continued to be strong, noted vice-chairman Eduardo CastroWright. “In fact, when we compare our monthly home performance to what other retailers are reporting on monthly sales day, we believe we continue to gain significant share in this business,” he said. Kohl’s Food Network line, launched in fall 2007, was expanded in 2008 with the addition of the Bobby Flay program — which proved a bright spot among the otherwise weaker home segment at the onset of last year. Upon the roll-out of its Cannon bedding program at Kmart and Sears in April, Iconix — which owns the Cannon brand — expanded the brand into kitchen textiles, table linens, and other categories later in the year. “2008 and 2009 were both tough, but last year we definitely saw the light at the end of the tunnel,” said Elissa Vogt, vp, marketing, West Conshohocken Pabased The John Ritzenthaler Co. “As the year progressed, it moved into a positive direction, and we see that continuing this year.” Aided by positive trends in consumer spending and other related factors, both the kitchen textiles and table linens grew by 5% each — $593,250,000 and $792,750,000, respectively. “Nobody is reducing space to their kitchen and table categories,” said Nancy Kristoff, president of sales and marketing, New York-based Bardwil Linens. “At the same time, I can’t think of anyone increasing it either. But it is definitely not being decreased. Overall, the table and kitchen businesses are pretty healthy — they really are. We’ve all gone through a tough year, from the beginning of 2008 to the begin-

htt110105_033 33

ning of 2009. But the business was definitely better than they planned for the second half, without a doubt.” Kristoff continued, noting that pricing stayed the same on both categories, even if that also meant no one “was willing to take price increases.” The growth category going forward for Bardwil includes aprons. “We chose to include aprons in our Lenox and Vera lines, and we are definitely seeing nice sales there with every retailer,” Kristoff said. “It’s become a functional but fun, feminine and flirty product. It is just sort of a new up-and-coming category, and we don’t have many of those in table and kitchen.” Solid-colored products and licensed lines — such as Vera and Lenox — “in total helped us offset the losses we felt from Mervyn’s and [Linens ‘N Things],” she said. With the demise of Mervyn’s, LNT and Fortunoff, Kristoff hypothetically asked, “Where did that business all go?” Her answer: Some went away completely. But off-price chains recovered the rest as did a major specialty home textiles chain and mid-price and regular department stores. HTT’s research shows those trends, too. In kitchen textiles, off-price chains enjoyed the most gains — 11% — to $21.9 million of total market share from $19.7 the prior year. Mid-price chains were in second place with a 7.7% jump to $94.2 million, followed by home textiles specialty chains, which rose by 5.9% to $65.82. Table linens distribution similarly showed off-price chains in the lead in terms of growth over the year, with a 9.2% hike to $61.8 million, followed by mid-price chains up 7.5% to $170.50 and home textiles specialty chains, which grew 5.5% to $171.29 million. Vogt suggested recent trends are helping the kitchen textiles and table linens categories make gains in existing and new channels. “The fun people are having in their kitchens relates to the trends we are seeing with the many celebrity chefs right now, and that is encouraging a lot of people to entertain in their own kitchens, which ties in with the livingwithin-your-means trend,” she said. “People are really becoming their own experts in cooking. The

kitchen is the new living room.” With all the activity in the kitchen, consumers are needing more supplies — but on a budget. For this reason, they bought bulk last year. New York-based Elrene Home Fashions found retail placement “all over the place” last year for its five-, 10- and even 20-piece packs and sets of patterned kitchen towels, said Bryan Siegel, chairman and ceo. The company was among the few top five suppliers in both kitchen textiles and table linens that posted sales gains last year. Foreston Trends’ growth in the kitchen textiles category last year stemmed from business with new retail customers as well as a strong re-order business of basic products with existing customers, said Dick Gould, vp, sales. “Last year, we had good customers — we didn’t do anything different,” he said. But the company did tweak some programs. One example was the shift to a 10-piece from an eight-piece terry kitchen towel set of solids and stripes for an existing program at a major warehouse club. “We had that program for about two years and it did extremely well, and then we tried a different configuration — 10 pieces instead of eight — and we were able to increase the price point,” he said. Growing sales of its basic terry kitchen towels have also helped 1888 Mills make strides in the category over the past few years. The company joined the ranks of the top five kitchen textiles suppliers in 2008 and retuned to the list in 2009 with $27 million in category sales. Fulton Allen, president of the company’s consumer products division, attributes this growth to cash-strapped shoppers’ increasing need for functional products for their kitchens — and retailers being conscious of providing plenty of these products to make the sales. “What we noticed is that retailers, especially in the kitchen category, are making sure they have plenty of space allocated to basic utility products — bar mops, dish cloths, and that multipacks seem to be winning at the $5 or under price bracket,” Allen explained. “The customers need to feel like they are getting a value. And that means buying bulk in some ways or buying a product with an added

function to it.” 1888 Mills’ Clorox-branded antimicrobial kitchen towels hit the spot for the company in meeting these criteria, he said. Looking to continue building on the momentum in 2010, 1888 Mills “will keep looking for

a combination of value and attributes that means something to the customer once they get the product home … basic utility will continue to dominate the marketplace, and that is dominated by discount and food SEE KITCHEN PAGE 42

Table Linens Distribution Channels

($millions)

2009 total retail sales: $793 million up 5% from $755 million in 2008 2009

Discount department stores $285.48 Home textiles specialty chains 171.29 Mid-price chains 170.50 Off-price chains 61.85 Department stores 29.34 Direct-to-consumer 29.34 Single unit specialty stores 14.27 Variety/closeout 16.65 Warehouse clubs 7.93 Other* 6.34 Total

$793.0

2008

% CHANGE

$ 271.8 162.3 158.6 56.6 30.2 30.2 15.1 15.1 7.6 7.6

5.0% 5.5 7.5 9.2 -2.8 -2.8 -5.5 10.3 5.0 -16.0

$755.0

5.0%

* Other includes home improvement centers, military exchanges and gift/home accent stores.

Merchandise Mix

($millions) 2009

Placemats Tablecloths Napkins Runners Napkin rings

$340.20 199.84 172.87 57.89 22.20

2008

% CHANGE

$323.90 188.75 165.35 55.87 21.14

5.0% 5.9 4.6 3.6 5.0

Kitchen Textiles Distribution Channels

($millions)

2009 total retail sales: $593 million up 5% from $565 million in 2008 2009

Discount department stores $361.73 Home textiles specialty chains 65.82 Mid-price chains 94.29 Off-price chains 21.94 Variety/closeout 17.20 Warehouse clubs 11.86 Single unit specialty stores 4.15 Department stores 5.93 Direct-to-consumer 5.34 Other* 4.74 Total

$593.0

2008

% CHANGE

$344.65 62.15 87.58 19.78 16.95 11.30 5.65 5.65 5.65 5.65 565.0

5.0% 5.9 7.7 11.0 1.5 5.0 -26.5 5.0 -5.5 -16.0 5.0%

* Other includes home improvement centers, military exchanges and gift/home accent stores.

Merchandise Mix

($millions) 2009

Kitchen towels Potholders/mitts Dishcloths Chair pads Aprons

$308.36 130.46 106.74 41.51 5.93

2008

% CHANGE

$293.80 124.30 101.70 39.55 5.65

5.0% 5.0 5.0 5.0 5.0

1/18/2011 2:11:48 PM

Home Textiles Today

January 31, 2011

Facts

> hometextilestoday.com

Bath Industry Picks up the Pace in 2009 BY CECILE B. CORRAL NEW YORK — Dead-set on turning business around after one of the most unforgiving years in memory, bath product suppliers and retailers gave consumers a reason to start shopping in 2009 with new products that offered performance and value at the right price. The fruit of their labor resulted in a modest but hopeful 1.8% increase in total industry sales to $3.48 billion from the prior year’s $3.42 billion. Welspun USA’s director of marketing, Bob Hamilton, attributed the growth to several factors, including low inventories at retail that needed to be replenished, rampant promotional activity in all channels, and aggressive pricing. “There was and is a lot of action at $3.99 and $4.29 in bath towels,” he explained. “The business is being done by [midtier department stores] at 60% on Saturday mornings. What is regularly priced at $10 is promoted for $4.49.” The catch, however, he pointed out, is that “it never really was $10. The level of percentage is greater, and val-

ues being promoted to consumers on bath towels, as an example, are far greater than they have been in long, long time. They really carry a great value for what the consumer is getting for the price.” Reviewing the year, 2009 got off on a slow start, observed Joanne Krakowski, U.S. sales and marketing manager for Trident India. “Customers were selling more lower-priced goods and more towel packs,” she said. “That’s what was selling at the start of the year.” Des Plaines, Ill.-based Revere Mills “concentrated on developing very compelling promotional packs. These packs allowed our customers to retail bath, hand and wash packs all at one price,” said Elaine Aschenbrand, director of marketing and product development. The company’s business was slightly up last year. Its core everyday programs were off, “but we made up volume with promotional activity. The biggest factor on the core business was that retailers seemed to be controlling their inventory levels very tightly.” Once the fall season kicked

Distribution Channels

($millions)

2009 total retail sales: $3.48 billion up 1.8% from 2008 2009

Discount department stores $2,008.0

2008

% CHANGE

$1,915.2

4.8%

Home textiles specialty chains

497.6

492.5

1.0%

Mid-price chains

563.8

554.0

1.8%

Off-price chains

156.6

147.1

6.5%

Warehouse clubs

69.6

71.8

-3.1%

Department stores

45.2

58.1

-22.2%

Home improvement centers

17.4

23.9

-27.3%

Single-unit home specialty stores 20.9

27.4

-23.7%

100.9

130.0

-22.3%

3,480.0

3,420.0

1.8%

Other Total

*Other channels include direct-to-consumer and other channels such as PXs, grocery stores, and the like.

Merchandise mix

($millions) 2009

Bath towels Bath/scatter rugs

2008

% CHANGE

$1,750.4

$ 1,716.8

2.0%

880.4

861.8

2.2%

Shower curtains

480.2

475.4

1.0%

Bath accessories

337.6

335.2

0.7%

31.3

30.8

1.8%

Tank sets

in, consumers’ and retailers’ attitudes as well improved and the bath business turned for the better, noted Jeff Kaufman, president and coo of Moonachie, N.J.-based Avanti Lines, an embellished towel and bath coordinate supplier. “We saw buying patterns return to normal in the second half of 2009 after seeing a great deal of inventory pulled out of the supply chain by retailers in the fourth quarter of 2008 and the first quarter of 2009,” he said. “Once the inventory levels were reset to the new lower levels, we saw a more regular flow of orders since a lot of safety stock was pulled out of the stores. With an upturn in business and relatively light inventory levels in the stores, we expect to see a strong, consistent order flow in 2010.” By the time the fourth quarter arrived, consumers’ uplifted attitudes about the economy drove them back to stores to restock on much-needed bath linens and fashions. “People deferred their spending on decorative items,” Hamilton said. “People waited and waited and waited and waited, and when they saw their home had not foreclosed and that things were looking brighter, there was some pent-up demand that began releasing in the marketplace.” Added Keith Sorgeloos, president and ceo, Atlanta-based Home Source International: “In the second half of 2009, particularly in the fourth quarter, we started to see some movement from consumers that enabled the bath area to pick up. There were incredible values going on last fall season. Consumer business started to gradually turn positive, driven by value available in the marketplace.” Sorgeloos also noted a resurgence of the luxury customer. These high-end shoppers returned to their usual upscale department store haunts. But the affluent customer, unlike lowerto middle-income shoppers, was not necessarily looking for aggressively priced products. “She was starting to spend her money again but not on value,” he explained. “She reemerged because she felt more positive in the second half about her position.” So where did the business go

in 2009? Like many other home textiles categories, bath products made the greatest turns at off-price chains and discount department stores, which grew by 6.5% to $156.6 million and 4.8% to $2,008.0 million in share of sales, respectively, for the year. Mid-price chains and home textiles specialty chains also grew but at a lesser rate — 1.8% to $563.8 million and 1.0% to $497.6 million, respectively. Suffering the greatest loss in category business were home improvement centers, which dipped 27.3% to $17.4 million in share of total industry sales. One major discount department store chain reacted quickly to the recession’s effects, earning the retailer considerable growth in home products including bath, said Gretchen Dale, president of New York-based Loftex USA. “They were right on top of that wave. They took a lot of business away from the retailers above them and they brought to the market some pretty interesting stuff, some innovation,” she said. This ret ailer launched a branded home program that “appealed to a customer who could not shop at [a major mid-tier department stores] or higher,” Dale continued. “And [the new bath program] was something they wanted and could afford.” But other stores across all levels of retail quickly caught on and began offering their own value programs — branded and unbranded. While pre-packs got the year off to a strong start, products with performance attributes at the right price carried the category into the rest of the year. In both bath towels and bath rugs, quickly-drying goods that

saved energy earned points with shoppers. “I think one of the most interesting things, candidly, is the introduction of lighterweight, bulkier bath towels at a $4.99 price point,” Hamilton noted. “It had a huge impact on growth within the industry. It’s a great product, it has great shelf appeal with its loft, and it sells for a great price.” Trident India also went the quick-dry route, but using a lighter-weight cotton towel, and it comprised “a majority of our business” last year, Krakowski said. It retails for $4.99 to $5.99 at various different channels. “What happened for us was that we began focusing on performance-based [bath rug] products, and one took hold pretty well at retail,” said Joe Shafran, vp, Faze Three Ltd. “We got a nice boost from that. It was for a quick-drying fiber. It didn’t weigh less, we just used a new technology in making the fiber to make it dry faster.” Maples Rugs in 2009 “did pretty well” because the Scottsboro, Ala.-based bath rug domestic manufacturer “reacted to market conditions and we were able to give value to our customers, which resulted in better business performance.” This included new placement with existing retail customers for its sustainable PET fiber offerings, and additional business into 2010. Sugar Valley, Ga.-Based Mohawk Home said that in 2009 synthetic fibers still represented 80% of the market — specifically mostly nylon with a few micropoly programs. The balance, or 20%, was occupied by natural fiber products, mainly reversible pieces and table-top constructed cotton coordinate styles. “Retailers changed fewer proSEE FACTSPAGE 35

Source: HTT Research

htt110105_034_035 34

1/18/2011 2:12:51 PM

Facts Bath Facts FACTS FROM PAGE 34

grams in 2009 in an attempt to save markdown dollars, and they seemed to focus more on color updates and extended sizes and constructions within their current assortments,” said Bart Hill, general manager of bath products, tufted and printed area rugs, Mohawk. “Retails stayed relatively flat for the year in rugs, but we did see some downsizing in traditional sizing — from 21by-34 to 20-by-34 [for example] — at a couple of retailers.” In the accessories and shower curtains side of the bath business, New York-based Town and Country Living said its strong 2009 category sellers included basic bath goods, such as liners and hooks, and PEVA shower curt ains. Down slightly for the company were sales of bath ensembles. Creative Bath Products, based in Central Islip, N.Y., made strides with its domestically made plastic goods that could retail at opening price points. “Low-end discounters took advant age of opening price point plastic sets, [of] which we shipped tonnage units, but they offered low revenue,” said Bob Weiss, vp, sales and marketing. “These plastic four- and threepiece sets sold between $2 and $6. Customers purchased the basic items. Shower curtains, wastebaskets and rugs were the bulk of the sales.” Suppliers are optimistic about sales in 2010, as business remains buoyant for bath. But new concerns are cropping up in the form of escalating raw material prices for everything from cotton to wood, metals, synthetic fibers and more. Revere Mills described it as “the most serious situation — pricing,” Aschendbrand said. “We are facing a major issue with the incredibly large increases the on cost of raw materials and freight. Retailers must face this and deal with the realities of the situation.” Added Dale: “Cotton has gone up almost 20% all over the world, relating to a roughly 10% increase in the towel. It is shaping up to be a tough year, and everyone is trying to figure out what to do about it. As it takes effect in the third and fourth quarter, I expect retailers will be a little more cautious this year

htt110105_034_035 35

than last year.” With raw material prices escalating, “we might see a fallout,” Sorgeloos projected. “If consumer demand keeps picking up, we’ll weather the storm. But if consumer demand doesn’t keep moving in the right direction, these increasing raw material prices will make it very hard [for suppliers] to offer that valuedriven product. That will be the

January 31, 2011

telling sign of what will happen in the second half of 2010. We’re in a very wild and wacky time in our industry.” Maples is also feeling heat from raw material price hikes, which are creating “an ongoing daily challenge to maintain value retails. The increases are being absorbed by the manufacturer.” Ex-Cell/Croscill/Glenoit, based in New York, is taking the

same approach, swallowing the added expense stemming from raw material prices. But the company noted another new hurdle — altered consumer attitudes toward spending, which in turn relates directly to the effects of raw material price increases. “Even if consumers are not personally affected by the economy, they are out there in a different shopping mode,” said Ida

Home Textiles Today

Moran, vp, merchandising, fashion bath. “They don’t want to be conspicuous. Whether you can afford it or not, it’s not en vogue to be ostentatious. Today’s bragging rights are about how inexpensively someone paid for something whereas before they bragged about the exclusivity of a product they bought. And so what all this means is that price points are still really important.” HTT

1/19/2011 11:34:01 AM

Home Textiles Today

January 31, 2011

Facts

Rug Industry Takes a Double-Digit Sales Hit in 2009 BY CECILE B. CORRAL N EW YORK — Plagued by raw

material price hikes, finished product price deflation and the overall malaise at retail — particularly at middle and higher end stores — retail sales of area and accent rugs contracted by almost one fifth in 2009, with an 18.5% drop in sales from the prior year. The suffering varied among segments of the business. Handmade and high-end suppliers took the hardest blow — estimating 25% or more in losses of sales in general — as strapped shoppers backed off from luxury purchases. Domestic manufacturers fared better as machine-made synthetic wares were favored more by shoppers looking for affordable redecorating items to freshen up their homes. That segment of the industry did see declines in the 10% range overall, but many of them gained new business as retailers and consumers traded down over the year to match their shrinking budgets. “The price points we compete at certainly held up over the year,” said Jeffrey Seagle,

director of marketing and product merchandising, Sugar Valley, Ga.-based Mohawk Home. “The $200 or less 5-by-8s didn’t get hammered. And the $99 or less tufted and low-end printed wovens did okay, too.” Starting in November and through the holiday selling season that just passed, offprice stores “were doing sensational,” noted Paul Sullivan, svp, sales and marketing, Anderson, S.C.-based Orian Rugs, as were the discount department store chains. “There was a time, early on, when you’d hear people telling [their friends] not to be afraid of parking their Mercedes in Target’s parking lot. Today, we see Mercedes-Benz everywhere, like the [off-price stores].” Sullivan said it is because off-pricers sell branded product at fair price points. “They aren’t price gouging,” he explained. “If they by it for $3, they’ll sell it for $6. They are offering their customers great deals, and it is working.” Sullivan said customers turned their attention to more aggressively priced goods, leading Orian to give “a bit more concentration to the under

Area Rugs Distribution Channels

(billions)

2009 total retail sales: $3.75 billion Down 18.5% from $4.6 billion in 2008* 2009

2008

% CHANGE

Discount department stores Home improvement centers Furniture stores Mid-price chains Direct-to-consumer Carpet/floorcovering stores Home textiles specialty chains Department stores Off-price chains Warehouse clubs Variety/closeout Gift/home accent stores and single-unit specialty textile stores Other

$1.28 0.28 0.17 0.31 0.63 0.21 0.21 0.03 0.14 0.12 0.13

$1.38 0.38 0.28 0.35 0.73 0.32 0.32 0.05 0.15 0.15 0.15

-7.6% -25.4 -37.5 -9.8 -13.3 -34.8 -33.6 -33.3 -11.1 -21.0 -10.8

0.18 0.06

0.28 0.07

-34.8 -23.6

Total

$3.75

$ 4.60

-18.5%

Discount department stores include Kmart, Shopko Stores, Target and Wal-Mart. Home improvement centers include Home Depot and Lowes as well as regional and local home improvement centers. Mid-price chains include JCPenney, Kohl’s, Mervyn’s, Meijer, Fred Meyer, Sears, TJMaxx/ Marshalls, Stein Mart and Ross Stores. Direct-to-consumer includes television shopping channels, Internet and catalog sales Variety/Closeout includes stores such as Dollar General, Family Dollar, Freds, Value City, Tuesday Morning and Big Lots. Other includes interior designers and military exchanges *2008 figures have been revised

htt110105_036 36

$100 range rugs in our assortment.” But he said, “There is still a sweet spot for $150 goods.” Concurring was Patrick Moyer, president, Dalton, Ga.based Balta U.S. “Off-pricers and discounters for sure benefitted last year. I wouldn’t say that they were incredibly profit able, but I would say that customer traffic was driven to them and away from department stores,” said Moyer. “Bottom line – people were obsessed with value and low price, and they found it at the off-pricers and discounters.” Product-wise, he said, “The $299 price point all but disappeared,” in the woven rug segment. “The biggest growth came from the $99 and under rugs. People were trading down, and they were looking for temporary solutions.” Direct-ship business serving catalogs and online retailers represented Port Washington, NY-based Safavieh’s best segment in 2009. “These products are the ones that sell at our more moderate price brackets and to younger consumers,” explained Arash Yaraghi, vp. Building on that momentum, the company is expanding its licensed program with celebrity designer Thom Filicia. The collection caters to a younger set of shoppers – both in price and design. It was in 2009 when “there came a permanent change in the way we all think,” said Wade Maples, co-owner, Scottsboro, Ala.-based Maples Industries. “People became more value conscious, and now they want products that last them longer and are more basic in nature.” That is how Maples explained the shift in customer preference last year – and into this year. “From a pattern point of view, we’ve seen a higher percentage of sales for basic looks,” he sad. “Basic rugs don’t have to be changed when you redecorate your home. They last longer.” As basic looks dominated the selling scene, price points became increasingly challenged. “There has been a significant downturn in the average retail price – that is one thing

we’ve noticed,” he continued. “And I believe prices in 2010 will be flat.” Troy, N.C.-based Capel Rugs’ customers also showed a penchant for the company’s basics – braided rugs, or as vp of sales Allen Robertson described them, “our American originals.” “These are the same rugs we’ve been making for almost 100 years,” he said. “That business has really held up in this economy because we don’t need to carry a huge inventory of it. We’ve got them readily available, and we make them right here in the USA.” Domestic manufacturing, he continued, resonated with store buyers and their shoppers more than ever in 2009 as retailers looked to give their customers more reasons to make purchases. Capel held its prices “pretty firmly” but found itself promoting at 20% higher rates than in recent memory. “We had to promote, with special offers and discounts, to get the business last year,” Robertson said. Est ablished less than a decade ago, the domestics accent rug division of Saddle Brook, NJ-based Nourison proved to be one of the 30-yearold area rug company’s bright spots in 2009. “These rugs are a lot more affordable, so we gained market share,” explained Alex Peykar, principal. Fort Lee, NJ-based Couristan is entering the New Year with a new line of contemporary styles – more than the typically traditional- and transitional-focused company has ever offered in the past. Price points are also top of mind as the company looks to court new business this month at the upcoming rug markets. But Couristan is being wary to maintain its reputation as a source of better goods at fair prices, explained Larry Mahurter, advertising and marketing director. “The challenge for us, with our high brand recognition is that we are associated with high-end goods on the residential side, and we don’t want to shift that in the rug side,” he explained. “We need to maintain our brand recognition in

good and bad times, and that is accomplished with solid product development.” Part of this effort has been not only new product offerings but also new selling tools for retailers. “Business has been picking up lately and steadily. A lot of our accounts are looking for new materials – products and selling tools – unique selling tools that help to educate consumers about the products in today’s industry,” he said. “While consumers know prices are going down, the quality is still there. We’ve made more innovation in our fibers and constructions and production than ever before, and we need to educate consumers about these advances.” With the added education shoppers are receiving – both voluntarily and involuntarily – comes a new challenge for rug suppliers – and that is making sure to offer perceived value, said Asha Chaudhary, president and ceo of Atlanta-based Jaipur Rugs. “That is why we are being planned and strategic in our new collections so that we can be very specific in how we cater to our different customers and their needs,” she continued. “We’re being very strategic in how our rugs are designed, how we color them, price them. We want to make sure our collections are meaningful to the customer.” After more than a year of absorbing production-related cost increases, Pawtucket, RIbased cmi (Colonial Mills Inc.) has decided to raise its product prices by 3%. The company recently issued a newsletter to its customers alerting them of the change. “ We ’r e f a ci n g a l l t y p e s of increases – raw material, health care – every time you turnaround the cost goes up,” explained Don Scarlata, president and ceo. “Just the overall cost of doing business has been increasing, and we really tried to be modest with the 3% hike. We’ve tried to keep it to a minimum, especially in this type of a market when you don’t want to come out with price increases. But we can no longer absorb these increasing costs of running our business.” HTT

1/18/2011 2:14:26 PM

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WAYS TO SAY

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Home Textiles Today

January 31, 2011

Facts

> hometextilestoday.com

Rising Prices Loom Large in Utility Bedding Recovery logically things are improved.” According to Palmer, the focus on home and the idea of sleep as a health benefit is also helping.

BY JILL ROWEN N EW YORK — Utility bedding, traditionally one of the strongest of the bedding categories, declined about 4.6% overall last year, despite a “comeback” fourth quarter in late 2009. Most vendors are optimistic going forward, expecting a boost in yearto-year comparisons — admittedly, not too difficult a thing considering the recent economic rollercoaster. Blankets and sleep pillows, while down overall, fared better than other categories. The blanket high season came when the economy was just turning, which helped. Pillows, because of the industry-wide marketing push for better sleep, also did better. More pressing issues abound, however, including product pricing and the skyrocketing cost of raw materials. The rising cost of both cotton and down – due to shortages and other issues — are especially a question mark on pillows and mattress pads within the basics category, as well as comforters. “Things are clearly better than last year,” noted Brandon Palmer, executive vp, United Feather & Down. “Our sales have picked up and retailers are telling us that people are showing up in their stores. So, psycho-

According to Chad Altbaier, vp sales and marketing, Downlite, “Brands, relevant and understandable performance features, new and unique fabrications and new packaging concepts,” are continuing to be the tipping points for most consumers. Palmer noted that from raw materials to transportation costs, every aspect of business has been impacted by rising costs. Like other vendors, Palmer expects the costs to reach consumers starting in the fall, the very beginning of the big bedding season. “Better down products were traditionally low for the last couple of years,” he noted. “There was a lot of $59 comforter product. I think you’ll see more middle ground from around $149 to $399, for instance.” John Crippen, vp, Blue Ridge Home Fashions, agrees that consumers will see prices up in the fall. But he sees other changes in construction and manufacturing also in play to offset rising costs. “You’re going to see more reverse down blends and alternative down products where it makes sense and more feathers than down.”

Utility Bedding Distribution Channels

($millions)

2009 total retail sales: $1.98 billion down 4.6% from $2.075 billion in 2008 2009

Discount department stores $1,170.2 Home textiles specialty chains 388.1 Mid-price chains 164.3 Department stores 85.1 Direct-to-consumer 41.6 Warehouse clubs 37.6 Single-unit home textiles specialty stores 29.7 Off-price chains 21.8 Variety/closeout 23.8 Other* 17.8 Total $1,980.0

2008

% CHANGE

$1,211.80 415.00 174.30 93.38 41.50 41.50

-3.4% -6.5% -5.7% -8.8% 0.2% -9.3%

35.28 20.75 20.75 20.75 2,075.00

-15.8% 5.0% 14.5% -14.1% -4.6%

* Other includes home improvement centers, military exchanges and gift/home accent stores.

Merchandise Mix

($millions) 2009

Sleep Pillows Blankets Throws Mattress pads

htt110105_038 38

$730.6 491.0 390.1 368.3

2008

% CHANGE

$763.6 512.5 410.9 388.0

-4.3% -4.2% -5.1% -5.1%

Other vendors also report shifting to more duck than goose feathers and replacing 100% cotton shells with polyester/cotton blends in ticking and other products. “The cost increases affect everything from base material — i.e. polyester, foam, fabric but also poly bags, corrugate, paper, ink — everything. We are not doing anything different nor are we taking short cuts in production. But with the industry suffering from deflation at retail, something has to give,” reported Dan Schecter, vp sales and marketing, Carpenter. “I have no doubt that there will be and are price increases. The retailer has no choice but to accept the increases and try to pass them on to the consumer.” “There’s no secret to building a sustainable business at retail,” noted Guy Eckert, evp, business development, Outlast Technologies. “You need to execute on the four ‘P’s’ … you’ve got to have the right product, at the right price, in the right place (distribution) and with the right promotion. However, there’s a 5th ‘P’ that no one talks about and that’s ‘partner.’ No doubt the cost of raw materials will play a role in the future, but if you’ve structured your supply chain with raw material suppliers that are true partners, then working together you can minimize the impact at the retail level.” According to Beth Mack, Hollander Home Fashions, vendors also have to be wise in their product development efforts. “We don’t want to do development for development’s sake,” she noted. “Our product development hits the market that we’re playing in.” Mack reported that Hollander is working on a series of new fabrications and finishings, some of which are designed to maintain the thread counts consumers are used to but in blends, for instance, to offset some rising material costs. “Pillows did better than most categories,” said Donna Kelloway, North American business manager, Invista. “They are a relatively low-price purchase compared to others.” According to Kelloway, consumers will spend more for the right product in this category, but retailers still have to be convinced of it. Invista is working

on new fiber fills that will maintain loft and performance, and again, perhaps offset some price issues. Expectedly, utility bedding retailers saw declines and some shifts in 2009, with more changes coming in this category. Single unit stores showed the largest decline, down 15.8%; with variety and closeout chains right behind at 14.5%. The largest gain was seen at off-price chains, which took advantage of excess inventory and showcased a lot of bedding. That, however, may soon change. Palmer noted that as manufacturers continue to tighten their belts, lower inventories mean less opportunistic buys for both off-price chains and discounters. According to Crippen, retailers such as Big Lots, Home Goods and TJ Maxx , not traditionally in down products, took advantage of the overstocks and low prices and got into the act, but may not have the same opportunity again. “We felt the slowdown like everybody else in both our retail and hospitality channels, and with retailers reducing inventory levels, this reduced our selling opportunities as well. Promotional business, outside of the retailers ‘core’ assortment became much more important in making up dollar volume,” said Altbaier. “Products that feature some form of technology generally did better than plain commodity product,” noted Schecter. “I sus-

pect that will continue to be the case for some time to come. If [the consumer] is going to spend money then she is looking for value — but the new consumer translates value to benefit at an affordable price or as some say a fair price. So we finally have a direct correlation between price and benefit. This is an opportunity to increase the quality of transaction at point of sale.” How will consumers react to paying more? Vendors all tout value as the key ingredient. Carol Haslach, marketing communications manager, Invista, notes that in this category, consumers may be willing to pay more for comfort. “Consumers are willing to pay a bit more, but they are still sometimes confused. They still want to know how to buy a pillow that they like and are comfortable with.” “Our largest hurdle is conveying that a mattress pad purchase isn’t made solely to protect your mattress purchase. It can enhance comfort in a variety of ways and temperature regulation is one of them,” said Eckert. Mack noted that Hollander has made a concerted effort to ramp up graphics and images to get the message across to consumers and will continue to work to “simplify” its solutions-based messaging. The focus on restful and healthful sleep and product benefits, then, may be the thing that keeps consumers looking for the perfect bedding, despite any price increases. HTT

METHODOLOGY In determining product category sales figures as well as determining retail sales for those categories by channel of distribution, the editors and research department of Home Textiles Today used data compiled from a variety of sources, including publicly filed financial reports, vendor sales information compiled by the editors, and information provided by retailers and home fashions suppliers. Home Textiles Today is producing a three-part series on bedding — this report being the second — breaking the overall bedding category into three of its component parts: Top of The Bed; Utility Bedding, Blankets and Throws; and Sheets & Pillowcases. The research was compiled by: editorial contributor Jill Rowen; Dana French, director of market research; and Jennifer Marks, editor-in-chief.

1/18/2011 2:16:05 PM

Home Textiles Today

January 31, 2011

Facts

> hometextilestoday.com

Sheets Makers Optimistic Amid Price, Delivery Issues BY JILL ROWEN N E W YO R K — R e t a i l s a l e s

o f s h e e t s a n d p i l l ow c a s e s decreased by 4.7% in volume for 2009, the third piece of the bedding puzzle in HTT’s Facts reports to show a decline. Like utility bedding and top of bed, the sheets and pillowcases category is mired in issues like inventory tightening, fewer retail doors, still rising costs of raw materials and supply and delivery problems. The category came in at $1.725 billion in 2009 versus $1.810 billion in 2008. Some vendors and retailers are finding themselves caught in an unpleasant cycle. Retailers pulled back their inventory significantly last year. Once

they were ready to buy, supply and delivery demands were strained to the limit. In addition, prices of cotton hit this category particularly hard with many vendors saying that pricing is now here to stay. “We’re all dealing with the same dilemma,” noted Lee Goodrich, a textile industry veteran and co-founder of Thomas Lee, Ltd., an online source for better bedding. “I’m talking to suppliers that can give me a good price, but I’m not confi dent about the quality. And I’m talking to another supplier who I know can deliver on quality but is pricey.” “When it comes to supplies, 2010 will truly separate the boys from men,” said Arun Agarwal, ceo, Alok Industries. “Because

Distribution Channels

($millions)

2009 total retail sales: $1.725 billion down 4.7% from $1.810 billion in 2008 2009

Discount department stores $897.0 Home textiles specialty chains 250.1 Mid-price chains 324.3 Department stores 39.7 Off-price chains 62.1 Variety/closeout 53.5 Other* 31.1 Direct-to-consumer 36.2 Single-unit specialty stores 15.5 Warehouse clubs 5.5

Total

$1,725.0

2008

$923.1 271.5 343.9 45.3 63.4 54.3 36.2 36.2 18.1 18.1

% CHANGE

-2.8% -7.9% -5.7% -12.3% -2.0% -1.5% -14.2% 0.1% -14.2% -14.2%

$1,810.0

* Other includes interior designers, military exchanges and other channels

METHODOLOGY In determining product category sales figures, as well as determining retail sales for those categories by channel of distribution, the editors and research department of Home Textiles Today used data compiled from a variety of sources, including publicly filed financial reports, vendor sales information compiled by the editors, and information provided by retailers and home fashions suppliers. Home Textiles Today has produced a series of three reports on bedding, breaking the overall category into these component parts: Top of the Bed (February 22); Utility Bedding (May 10); and Sheets and Pillowcases. The research was compiled by editorial contributor Jill Rowen; Dana French, director of market research; and Jennifer Marks, editor-in-chief.

htt110105_040 40

of price fluctuations there will be a supply base which will try to sell cheap, but the question is will they deliver?” “I agree raw material cost going up was the major issue.

“Everyone’s ready to spend on home. We’re being asked for bright, new fresh and different products.” —AARON STEWART, Sferra

Fortunately, it’s a global issue and not restricted to Pakistan only,” said Azim Sattar, director, AL-Abid. “With Pakistan and India among the largest suppliers in this category, the competition and progress of the cotton crop is a vital issue worldwide. “ There is good news with bright spots and optimism in the industry. According to Aaron Stewart, creative director, Sferra, “The market is really picking back up. We saw it first in the major markets: Chicago, New York, L.A.; but now it’s really picked up across the United States, including in the middle of the country.” “We feel 2010 will be a strong year as we are getting significantly higher sales forecasts in these categories from U.S. retail sector,” noted Sattar. “The overall climate is already picking up,” said Agarowal. “This segment is seeing healthy growth. Alok was a pioneer in MXL technology and created new standards for wrinkle free. We are in the works with another technology which will create new standards for sheets.” “As a fairly young company, Blissliving Home has continuously been able to grow our business year after year – including 2009,” said Mareike Finck, marketing manager. “Most of the growth [in sheeting] came from retail business with consumers that purchase an entire look, including a duvet set, decorative pillows, possibly a throw blanket and a sheet set. We are a design-driven brand and take

pride in the design elements such as embroidery det ails worked into our sheets. “We have continued to grow throughout the recent economic downturn. Our customers have come to expect a level of quality and value from us. We don’t want to cheapen the product,” Goodrich said. Thomas Lee markets better bedding under the PerfectCale label. “Everyone’s ready to spend on home,” added Stewart of Sferra. “We’re being asked for bright, new fresh and different products. One of the things that is happening is a still a basics story, but away from the offwhite and taupe to more modern looking shades of grey.” At Home Source, a new licensed line for the Italian brand Diesel is being introduced. The brand will have an edgier and more European flair, according to the company, with

“We have continued to grow throughout the recent economic downturn. Our customers have come to expect a level of quality and value from us.” —MAREIKE FINCK, Blissliving Home

unique prints and colors. Home Source also produces Vera and Portico brands, according to Scott Sorgeloos, vp sales. The company has long focused on bamboo products, Sorgeloos noting that recent government warnings about bamboo were not an issue for the company. “We’re experienced in this business and have been compliant since 2004,” he said. Whatever the new trends, everyone expects to see some increases in prices at the retail level, but suppliers are crunching the numbers to see how they can minimize the impact. “It’s true that our customers are willing to pay a little bit more for the quality they’ve

come to expect. But even then, there’s a limit. You have to ask yourself how to best handle it — do you decrease your mar-

“Waw material cost going up was the major issue. Fortunately, it’s a global issue and not restricted to Pakistan only.” —AZIM SATTAR, AL-Abid

gin and keep your pricing or increase it slightly and see how that goes,” said Goodrich. Ret ailers playing in this category also showed signs of strain, with single-unit stores, warehouse clubs and department stores showing double digit declines. It is a wake-up call for many, as they readjust their entire home areas. Direct-to-consumer stayed the course, while closeout/variety chains lost only 1.5% of volume buoyed by consumers shifting down market. “Retailers narrowed down their lines in both width and breadth of offerings,” said Frank Snow, vp merchandising and operations, Royale Linens. “They are more streamlined both top to bottom and side to side, and are calibrating their offerings. They are now being very selective.” One change Snow predicts is that there will be more differentiation with grades of cloth. “For some time, thread counts of 300, 400, etc., were collapsing on top of each other. I think you will see a separation of the products,” he said. One of Royal Linens’ projects: a warp denier product of 100% polyester with 100% cotton fill. “The retail landscape is shifting,” said Agarwal. “Linens ’N Things going away is an old story. What is more important is, because of pricing pressure, smaller players are reducing their shelf space in this category. Natural gain will come to those retailers which are perceived as “destinations” for sheets.” HTT

1/19/2011 11:26:32 AM

Home Textiles Today

January 31, 2011

Facts

> hometextilestoday.com

Windows Open for Sales Potential BY JILL ROWEN N E W Y O R K — The window

treatments category fared better than most home textile products last year and is well entrenched in recovery mode. HTT’s latest statistics show the category was down 3.6% to $2 billion in 2009, from $2.075 billion in 2008. With moderate window coverings being a relatively inexpensive way to update and decorate a home, vendors predict the future is bright as the economy – and housing starts in particular – make a comeback. So far, 2010 has seen growth in the category. One trend that is helping the sector is a technical approach to the window coverings — in addition to the obvious fashion model. Programs touting everything from energy savings and darkening qualities to high-tech fire-resistance and outdoor weather proof patterns are giving the category a utilitarian leg up. “A lot of our window market is about energy efficiency and utilitarian models,” noted Angela Boswell, vp, product development Ellery Homestyles. “The consumer is looking at product, saying ‘we can save heating and energy costs.’ It gives her a reason beyond fashion to purchase an item.” For Ellery, its Eclipse line is at the forefront of this movement with the Eclipse Thermalayer promoting reduced energy costs, better light blocking and better noise blocking. According to Boswell, new introductions will give the line more fashion flair, with pleating and embroi-

Kitchen KITCHEN FROM PAGE 33

and drug retailers. They control what is going on there.” Croscill/Ex-Cell/Glenoit is on the road to recovering its table linens business with a renewed focus on it line beyond just seasonal offerings, said Debbie Powell, vp, merchandising. “We are trying now to bring back a full line that includes seasonal and everyday looks,” she explained. “We are definitely trying to reinvigorate some of our expertise and experience in the category that was not being fully utilized in recent years. We’ve been in this business, but not really con-

htt110105_042 42

dery adding interest to the performance properties. Ellery also produces Waverly branded products, which markets the Waverly Sun and Shade outdoor curtains, designed to resist mildew and stains. Chip Scala, head of the Ellery’s Waverly division, notes that some consumers are liking the look of the fabric enough to even use it indoors. “In addition to the very traditional Waverly looks, the brand has a lot to offer in more transitional, modern styles,” he said. “It’s one of the least expensive ways to redecorate, so we’ve always found windows to be more recession proof,” agreed Carl Goldstein, senior vp, S. Lichtenberg. According to Goldstein, style points such as grommet details and a resurgence of printed fabrics are now on trend. Louis Hornick & Company is also competing in the performance area. “Our solution to competing in this market has been to approach it in a very scientific way,’ said Louis Hornick II, ceo. The result was Firefend, a fire-resistant, ready-made window product. One of its attributes is its made-in-USA tag. “That was important to us,” he said. “It means quick response. And, we want to deliver a better quality product. We have the strictest certifications and that would have been harder to oversee offshore.” About 300 skus of Firefend products will be introduced this summer. According to HTT’s research, mid-price chains still dominate the window treatments category, but it was the mass merchants

who had a gain in this sector. Discount department stores gained 2.2% of volume, while single unit specialty stores and department stores lost the most ground. Variety/closeout chains made the largest leap, up 3.7% from a year earlier. Off-pricers and directto-consumer outlets also showed healthy gains. “Retail business in the first quarter was up,” said Goldstein, noting that retailers were playing ‘catch-up’ after last year’s inventory tightening. That’s good news for Barry Goodman, vp, Commonwealth Home Fashions, who says that business is very strong right now thanks to the fact that retailers’ tight reins on their pocket books have eased. For Commonwealth, one of the fastest growing areas is its internet and the factory direct business. “ We w o r k w i t h a l o t o f accounts and those that do it right and spend the time and money on buying key words in search engines are doing very well,” he said. Commonwealth is also reaping the benefits of the performance products with insulated and outdoor décor items selling. The category is not without its issues. The tightened inventory of ’09, has lead to some shortages in 2010 with lead times going from a nominal 90 days to 120 days in some cases, according to a number of vendors. Pricing is also on everyone’s mind, with most vendors expecting to pass along increases that consumers should start to see in late 2010. Boswell has faced rising raw

material and resource costs. “We’ve just got to design smarter,” she said. “The window business is up. The key is to be innovative and keep introducing new programs,” noted Loren Sweet, ceo, Brentwood Originals. “It’s hard to increase prices on an existing program.” According to Sweet, patterns have been a strong trend story for Brentwood and contributed to its growth this year. “It’s a more challenging business with more competition, but it will get

stronger,” he added. “It’s been a long time since anyone in this business could spell price increase,” said Hornick. “There has been incredible price deflation over the last few years. It has to come back into balance.” For Goldstein, the key is in the relationship with retailers. “Business has changed. You used to wait for two markets a year, but now we work with our top consumers 12 months a year,” he noted. HTT

centrating on it until now.” Backed by “a good team with a lot of experience,” Croscill/ExCell/Glenoit is working on more closely coordinating its table linens and kitchen textiles pieces. “We feel that is important again,” Powell said. “It went away for a while. Everything was matchy-matchy for a while, and then we went away from that. But now, we see it coming back again. Retailers want that full package for their shoppers.” While napkin rings remain a dominant chunk of Croscill/ExCell/Glenoit’s category business, Powell did notice tablecloths gain some sales momentum in late 2009.

“Placemats and runners have been strong and for last 10 to 15 years now,” Siegel said. “But for a little while last year we saw tablecloth and napkins make a nice little comeback, and it’s probably because people are dining in more and dining in bigger groups, like with their families and with dinner parties. People can do that on a budget.” He added that Elrene has been tracking the sales of its table linens product categories for more than 15 years, “and in that time, this is the first time we’ve seen tablecloths improve.” Also looking to more fully coordinated programs in the near future is Windham Weavers. The

company, which was acquired by Natco Home Products in September 2008, was a newcomer to the top five list of table linens suppliers in 2009, taking the fourth spot with $17 million in category sales. “One of the businesses we went after in a big way was decorative pillows,” explained Michael Ciavolino, vp sales. “We already did tapestry placemats and runners, so we extended those looks to dec pillows and chair pads because we see people starting to coordinate again in the kitchen.” Decorative pillows also served as a vehicle for Westgate to embark on its latest new product

venture — table linens. The multi-category company, anchored by a fabric business, launched its table linens business one year ago with collections of coordinating placemats, napkins, runners, chair pads and tablecloths. “Many of the designs we did were taken right off the fabrics we use for pillows,” explained Neil Zuber, evp. “The looks naturally work for table, and the idea has worked. We’ve seen steady growth since we started.” As in the case of the company’s dec pillows, Westgate’s table linens styles include embroideries, quilted products, appliqués, chenilles, and many others. HTT

Distribution Channels

($millions)

2009 total retail sales: $2.00 billion down 3.6% from $2.075 billion in 2008 % OF TOTAL

Mid-Price Chains 45.00% Discount department stores 32.98% Home textiles specialty chains 11.40% Direct-to-consumer 4.55% Home improvement centers 1.75% Single-unit specialty stores 0.75% Department stores 0.78% Off-price chains 1.05% Variety/closeout 0.99% Other 0.75%

2009 SALES

2008 SALES

$900.0 659.6 228.0 91.0 35.0 15.0 15.6 21.0 19.8 15.0

$935.8 645.3 269.8 89.2 41.1 18.7 18.7 20.5 19.1 16.8

*Other includes warehouse clubs and military exchanges

1/18/2011 2:17:59 PM

HOLLANDER

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