Monday, April 4, 2011
THE BUSINESS AND FASHION NEWSPAPER OF THE HOME
How Penney and Kohl’s Ride Their Polo Ponies Home BY JENNIFER WHITE KARP N EW YORK — Are two of the most important home textiles introductions of the past decade — both from the famed Polo stable — not the prized stallions they once were? Their retailers are not saying, but the bedding collections of American Living at JCPenney and Chaps Home at Kohl’s, which were both created several years ago in conjunction with design powerhouse Polo Ralph Lauren, appear to have lost some of their luster. Few of the merchandising bells and whistles that were announced with the debut of these brands are in place and neither seems to have the premium positioning on the sales floor it did at its launch. Home Textiles Today editors recently shopped the programs at a New York area branch of each retailer and while these impressions only represent the shopping experience at these individual stores, they may be more indicative of the bigger picture. This report kicks off a new series in HTT called “Face to Face” comparing similar merchandising classifications at pairs of competing retailers. Kohl’s executives were traveling and unavailable for comment, according to a spokesperson. JCPenney executives could not respond to a request for comment in time to meet HTT’s press deadline. Introduced three years ago, American Living, created by Polo Ralph Lauren, is the newer brand. The program was the largest brand launch to date in the company’s history and was initially intended for the retailer’s “best” pricing category.
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Marimekko Steps Up U.S. Expansion NEW YORK — Marimekko is continuing to expand its distribution in the United States this year with the opening of a flagship store in Manhattan, a U.S.-based e-commerce site, and extended collaboration with Crate and Barrel. Marimekko’s also plans to increase its presence in home furnishing stores as well as new retail partnerships for clothing and accessories. “We’re really pulling it together for a target consumer is predisposed to great design,” said Lynn Shanahan, president of Marimekko North America Retail LLC, a subsidiary established in the United States earlier this year. As ceo of brand management firm SEE EXPANSION PAGE 23
Lynn Shannahan, president of Marimekko North America, right, with Revman International’s Rich Roman during the opening of the first Marimekko shop-inshop within Crate & Barrel in Manhattan last fall. Revman produces Marimekko’s home textiles.
SEE FACE PAGE 24
Lowell Returns to Textiles BY CECILE B. CORRAL
Both Kohl’s, left, and JCPenney have chosen from the Ralph Lauren stable for flagship programs, but several years into their shelf life, are the two lines starting to show their age?
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N EW YORK — It’s been about five years since celebrity interior decorator and home fashions designer Christopher Lowell developed and marketed his own branded collection of home textiles and room décor merchandise. But now he’s back. Lowell — who partnered with Burlington Coat Factory for the Christopher Lowell home collection from 2001 to 2006 and hosted his own decorating program on The Discovery Channel for nine years — is launching a new collection of bedding and bath textiles this spring. Only this time Lowell, who is represented by The Beanstalk Group, has opted to take a different approach with his home textiles program. Instead of licensing his
designs and brand to a retailer, he has joined forces with home textiles supplier Fayette-Renaissance to create and market his new collection to a variety of retail tiers from discount through better department stores. The foundation of Lowell’s new collection is based on the designer’s long-established Color Courage palette, which he created as a color tool with pre-selected color combinations designed to work together. Lowell offers four decorating style categories — City, Town, Country and Shore — which he also employs in his new linens collection. Aside from adhering to Lowell’s color deck, the new collection has been broken down into three design stories that each address a different customer bracket. SEE LOWELL PAGE 20
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January 10, 2011
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TEXTILES INDUSTRY
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Marimekko Steps Up U.S. Expansion NEW YORK — Marimekko is continuing to expand its distribution in the United States this year with the opening of a flagship store in Manhattan, a U.S.-based e-commerce site, and extended collaboration with Crate and Barrel. Marimekko’s also plans to increase its presence in home furnishing stores as well as new retail partnerships for clothing and accessories. “We’re really pulling it together for a target consumer is predisposed to great design,” said Lynn Shanahan, president of Marimekko North America Retail LLC, a subsidiary established in the United States earlier this year. As ceo of brand management firm SEE EXPANSION PAGE 23
Lynn Shannahan, president of Marimekko North America, right, with Revman International’s Rich Roman during the opening of the first Marimekko shop-inshop within Crate & Barrel in Manhattan last fall. Revman produces Marimekko’s home textiles.
Lowell Returns to Textiles BY CECILE B. CORRAL
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HIGH POINT SHOWPLACE 3233 April 2-7, 2011
HIGH POINT SHOWPLACE 3233 April 2-7, 2011
N EW YORK — It’s been about five years since celebrity interior decorator and home fashions designer Christopher Lowell developed and marketed his own branded collection of home textiles and room décor merchandise. But now he’s back. Lowell — who partnered with Burlington Coat Factory for the Christopher Lowell home collection from 2001 to 2006 and hosted his own decorating program on The Discovery Channel for nine years — is launching a new collection of bedding and bath textiles this spring. Only this time Lowell, who is represented by The Beanstalk Group, has opted to take a different approach with his home textiles program. Instead of licensing his
designs and brand to a retailer, he has joined forces with home textiles supplier Fayette-Renaissance to create and market his new collection to a variety of retail tiers from discount through better department stores. The foundation of Lowell’s new collection is based on the designer’s long-established Color Courage palette, which he created as a color tool with pre-selected color combinations designed to work together. Lowell offers four decorating style categories — City, Town, Country and Shore — which he also employs in his new linens collection. Aside from adhering to Lowell’s color deck, the new collection has been broken down into three design stories that each address a different customer bracket. SEE LOWELL PAGE 20
www.surya.com 3/25/2011 5:26:48 PM
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April 4, 2011
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Balta brings Outdoors in with Mohawk Home “Luxury Flatweave” Collection Launches Website, N EW YORK — Balta U.S. is giv-
ing legs to its signature outdoor line of sisal-like rugs with a new indoor-inclined collection of similar products. “We’re known for our outdoor rugs, so for this market we thought we’d create a new indoor look in flatwovens,” explained Patrick Moyer, president. This new program comes in two styles – a double-ply and a single ply – which offers two price brackets for different consumer bases. Marketed as Luxury Flatweave, the double-ply grouping is called “Grace” and is a heatset cabled, twisted yarn construction with four strands of color in each fiber. Moyer described these rugs as “well thought out, well engineered products” in a flatweave polypropylene construction. The retails are set to range from $129 to $199. Its more promotional sister product, marketed Premier Flatweaves, are non-heat set singleply rugs that still offer a sisal-looking texture for indoor use. The retail price is set at $69 to $79.
Rolls Out QR Apps
Patrick Moyer, president of Balta U.S., with the retail display fixture and product samples from the company’s new Luxury Flatweave collection of indoor casual rugs.
Moyer said the company has added loom capacity to accommodate this growing business for Balta U.S., adding the company has “the first 4-meter-80 loom that allows us to produce two 8by-10 [rugs] side by side.” He continued, “We’re very committed to this category, both for outdoor and now indoor.”
New in-store displays are also part of this new push. Balta U.S.’s national account marketing and planning director, Jeff Patrick, based the design on parent company Balta’s similar displays for its broadloom products. The flatweave display accommodates up to 20 rug samples. HTT
Newport/Layton Touts “Made in the U.S.A.” Statement BY CECILE B. CORRAL N E W YO R K — Newport/Layton Home Fashions’ message to retailers during the recent New York Home Fashions Market was a patriotic one. “We’re touting our continued growth in our Made in the U.S.A. business, and we’re emphasizing that message to our retail partners,” said Corey Faul, president. Originally a domestic manufacturer of bedding and decorative pillows that this year celebrates its 55th anniversary, Newport/Layton’s first began importing around 2000 and continued on that path through 2004 sold its quilting equipment and moved the bulk of its top-of-bed manufacturing offshore, mostly to China but also to India. “At the same time, our dec pillow business went from 90%
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cut-and-sewn in the U.S. down to 20% U.S., 80% overseas,” he said. But in the past three years, the company has seen a shift favoring domestic manufacturing. Hindrances related to importing bedding and decorative pillows in recent years, he said, have included too-long lead times, inconsistent quality, and cost increases related to manufacturing. “But as costs continue rising in China, the gap has been narrowed with U.S. cutting-and-sewing manufacturing,” Faul said. Then there are the hand-written and emailed letters sent to corporate headquarter in Portland, Ore. “There is a consumer movement going on for Made in the U.S.A. products,” Faul noted. “We must receive 15 to 20 letters each month from people tell-
ing us how happy they are about buying a U.S.A.-made dec pillow. One lady even told us that price wasn’t an issue. She liked the design of one of our pillows, and liked even more that it was made in the U.S.A., so she bought it.” As the company returns to its home-manufacturing roots, 60% of its decorative pillow line is now made at Newport/Layton’s 100,000-plus square-foot facility at headquarters. All of its U.S.made goods carry a label saying so. The company is working with another U.S. mill based in Pennsylvania to produce some bedding products. Additionally, Newport/Layton recently hired 45 new factory workers to man its cutting and sewing operations, “and we’re looking for more domestic manufacturing partners to develop more products for us here,” Faul said. HTT
C A L H O U N , G A . — Mohawk Home this recently went live with its new website as well as a bevy of new high-tech initiatives that include a new QR — or Quick Response — as well as heavy focus on social media. At the heart of the effort is the newly revamped site — www.mohawkhome.com — which features on its launching page a message from divisional president Bill Kilbride as well as several informational tabs — Company, Products, Retailers, Customers and Greenworks. While users cannot purchase company products — area and accent rugs, indoor and outdoor mats, and washable bath rugs — directly from the site, Mohawk Home marketing specialist Jennifer Palmer said they can select the retailer tab and from there link to any of nine stores — Anna’s Linens, Bed Bath & Beyond, The Home Depot, Kohl’s, Lowe’s Menards, Sears, Target and Walmart – all of which carry Mohawk Homebranded products, and be sent “to [each retailer’s] Mohawk Home launching page where
our consumers can link to live product for purchase.” From the site, shoppers can also download two PDF files with answers to their most frequently asked questions related to “Care and Cleaning” and “What’s the right size rug?” Customers can also interact live with Mohawk via its many social media pages, including Facebook, Myspace, Twitter, Friendster and others. Another way to access this information or shop for Mohawk product is via its new QR apps, which are rolling out to all product labels for easy downloading from mobile devices. “We’re embracing social media and mobile marketing because of its importance today,” explained Jeffrey Seagle, director of marketing and product merchandising. He described the QR app as “a silent salesperson” that provides consumers with a broad range of product-related information, and “the beauty of it is that we can track it and learn how people use it and how we can better help them.” HTT
Suppliers Ready Intros for High Point Imax is showing the Betty Ruth pillow at High Point this week. It is among suppliers hitting market this week with multiple new product introductions. See pages 6-8 for a gallery of what else is new at market.
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cornerstone of the home textile market Best Building. Best Rent. Best Tenants. That’s why industry leaders such as Mohawk, Glenoit, Shaw, Oriental Weavers, Welspun, Home Dynamix, Gertmanian, YMF Carpets, Achim Importing, KAS Rugs, Carpet Enterprises, Natco Products, Town & Country Living and Ruia Home make 295 Fifth their home. Make it yours, and you can enjoy these advantages: • More actual square footage for your rental $. 295 Fifth has the lowest loss factor in the home textile showroom market.* Compare our space measurements and you’ll see how you’re paying much less for actual square footage at 295. • The most Market Week traffic. 295 Fifth is the only building to rent exclusively to the home textiles, tabletop and gift industries for showrooms. And we have more than double the number of showrooms than any other building. • Free freight service and more freight cars running full-time, including weekends prior to each Market Week. • State-of-the-art security and 15 daytime employees—twice the staff of any comparable building to keep the building spotless and well-serviced.
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April 4, 2011
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OPINIONTodaY Marching Toward a Better Economy “Last month’s total business for the Redbook group was about 1.5% larger than it was in March 2010 — without Easter sales to goose things along.”
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A RCH 2010 BROUGHT cheery news for in March 2009. Last month, they did about $15.95 bila weary retail sector. Same-store sales on lion. Silver lining: Last month’s total business for the the Johnson Redbook Index Redbook group was about 1.5% larger than it that month rose 9.0%, the best was in March 2010 — without Easter sales to monthly performance in a decade. goose things along. The fact that Easter took place in March Last week, the U.S. Commerce Department helped boost results, as did comparisons to EDITOR-IN-CHIEF reported a 0.7% uptick in consumer spenda puny March 2009, when comps fell 0.8%. ing in February — the eighth straight month But at the time, it seemed like a turning of growth — but noted most of the extra dolpoint. lars were spent covering higher food and enIt turned out not to be, but that point ergy costs. was approaching. Redbook’s monthly sameWith consumer incomes ahead by only 0.3% store sales index has been running positive in February, consumers continue to act more monthly comps consecutively since Octoprudently than they did during the giddy bubble ber 2009. years. Consumers are still paying down debt and But while the relative numbers are up, the overall vol- using credit cards more sparingly than they used to. ume of business remains lower than it was two years ago. It’s all a part of what “For Your Home Host” Vicki The basket of retailers tracked by Redbook — which in- Payne calls “living smaller.” cludes general merchandise, grocery, drug and specialPayne spent a few days in the Royale Linens showty retail chains — generated about $16.8 billion in sales room during the recent New York Home Fashions Mar-
Jennifer Marks
ket for the launch of her bedding line there. Since she deals with all areas of home — from construction and remodeling to decorating — I asked her what broad lifestyle trends she’s seeing in home. “People are living smaller — they’re right-sizing their homes,” she said. Although people are moving into smaller homes, “they’re going to get so much more use out of the space now.” Yesterday’s furniture is too big, she added. One of the biggest selling mattress sizes now is twin because rooms are becoming more multi-purpose, she said. “We’re also starting to take the labels off our rooms,” said Payne. “Maybe you never use that formal dining room, but you need a space where your kids can have work stations and you can keep an eye on what they’re doing on the computer.” All interesting developments to watch — and create product to address — as the economy slowly moves forward. HTT
My, My Macy’s “Macy’s has righted itself and become a pretty good retailer, outperforming a lot of the other kids on the block and in the process taking itself well off the endangered retail species list.”
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HOE V E R T HOUGH T T H AT in the lyn. Penney used to be pretty good at individual store asyear 2011 we would be talking about Ma- sortments, but its bureaucracy tainted the process. Bed cy’s as one of the better performing retail- Bath & Beyond is the best at it and has made the forers in home furnishings? mula work longer and better than anyone ever As recently as within the last decade a whole possible. Warren thought lot of people thought we would be talking about Macy’s went in the exact opposite direction Macy’s in the past-tense as in the late, lamented Shoulberg as it consumed other department store namedepartment store we once knew. plates as if it were a zombie refugee from some PUBLISHER/ Instead, Macy’s has righted itself and be- EDITORIAL DIRECTOR Night of the Retail Living Dead movie. It clearcome a pretty good retailer, outperforming a ly wasn’t working. lot of the other kids on the block and in the But the My Macy’s program is. It’s not just a process taking itself well off the endangered rereturn to regional merchandising, it’s neighbortail species list. hood retailing in the truest sense. The Macy’s And here’s the most amazing part. Macy’s in Garden State Plaza in Paramus will have a did it largely through – drum roll, wait for it – different mix on the floor than the one in Newmerchandising. Incredible. port in Jersey City 20 miles away. Mind you, Macy’s still has enormous upside Does it work perfectly? Probably not. But it’s potential to do better and you could walk the floor of any a great advance and it shows that large-scale operations its stores anywhere in the country and find lots of things it don’t have to drown in their own enormity. could be doing better. But it’s not just My Macy’s. It’s the private label proBut from where it was – and more importantly, where gram and more importantly, the choice of private labels. it was headed – it’s a pretty remarkable story. The names and celebrities it has picked are above average Merchandising has been the vehicle that has taken Ma- and approaching Kohl’s, which is perceived (at least here) cy’s there. The My Macy’s program of localized assort- as the best private brand merchandiser in the business. ments has been the most important piece of the puzzle. Martha Stewart and Tommy Hilfiger are great additions Tailoring the mix to fit the locale has been the holy grail to Macy’s selling floor, and locking them up has been a of retailing ever since the old “O” tables at A&S in Brook- key piece of the merchandising equation.
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And there’s more. The national advertising for Macy’s, often featuring its stable of celebrities, is witty, clever and memorable. This is one area where Macy’s in fact outshines Kohl’s, which seems to change slogans and ad directions almost as often as its floor displays. Let’s not forget Macys.com. Late out of the gate and modestly started, it has matured into a hugely successful operation, in the same league as the best of class (OK, maybe not Amazon, but just about anybody else). Finally, there is management. From Terry Lundgren on down, Macy’s has developed a strong merchandising team that gets the job done. I haven’t heard a vendor complain about Macy’s in almost a year, and there’s no better proof than that that it has its act together. There are still too many three-day one-day sales and the coupons, gift cards and other promotional paraphernalia could still be simplified in my book. I’d love to see its circulars look as good as Crate and Barrel and West Elm and some of the other better marketers. And there’s still room for Macy’s to push the top end a bit more than it does… without pissing off Bloomingdale’s. Yet it sure is nice to see Macy’s where it is now. I’ve taken my shots at it in the past and no doubt there will be others down the road. So even if we’re still not at the miracle on 34th Street stage yet, it’s a lot closer than anybody would have thought possible not all that long ago. HTT
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Live Music
Great People
Complimentary Cocktails
Fab Food
Beautiful Al Fresco Setting
THE PLACE TO BE
After a full day at Market, kick back and relax at the place to be. Join your friends at the Market’s cocktail party to see and be seen!
Saturday, April 2 through Tuesday, April 5 • 5:30 pm • 3rd Floor Balcony of Showplace
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High Point
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1. Eastern Accents’ Clayton mixes a rich floral and leaf top of bed with accents of animal prints and stripes.
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2 Bedford Cottage’s Chesterfield throws are hand-knit from smooth finish acrylic yarns for a supple drape. 3. JLA’s newest collection under the Woolrich brand includes Hadley Plaid in warm-toned micro fiber and dec pillows designs drawn from Woolrich’s archives. 4. Casa Fiora’s new fabric for market include a stylized linen damask in brown and cream earth tones. 5. Pamela Kline’s Eagle River bedding celebrates America’s west with a mix of cotton, chambray, chenille and fringed faux leather.
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12 6. Kimlor’s Browning Pink Buckmark comforter and sheet sets also include window treatments and shower curtains. 7. Down Inc. is debuting a new construction in its all-down Triad Pillow that keeps the pillow from bottoming out so that it supports both back and side sleepers. 8. Interdecorations is showing a number of colorful pillows from Amsterdam-based painter and designer Mariska Meijers, including In Bloom, seen here. 9. P/K Lifestyles, a division of P Kaufmann, is showing Java Moon from its Iman Home collection on cotton duck with embroidery. 10. Vision Fabrics is showing the Everyday Color Elements Collection, a group of 38 patterns and 156 skus, including woven jacquards and textured solids in a variety of weights. 11. Imax’s Vera Green rose pillow is made by craftsmen in Thailand and inspired by the sheer embellishments seen in women’s apparel and accessories. 12. Corona features some of the world’s best-known imagery in the Vincent Van Gogh Collection of dec pillows, which are woven in France with a velvet backing.
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High Point
April 4, 2011
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1. Rug Market America taps popular peace and love imagery for this cotton handhooked rug for kids. 2. Textillery Weavers is showing a mix of bamboo and cotton throws featuring menswear looks. 3. Company C’s Jasmine Mink rug collection offers a whimsical interpretation of traditional Suzani embroidered textiles in 100% tufted wool.
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4. Ruggerio’s Ruggierios’s Greenhouse group featires a mid-tone coloration suggestive of algae, as in the Tie Dye pattern here. 5. Karastan is using clean-lined geometrics, painterly abstracts and mid-century modern designs in its Artois Collection, including Halle Fog, seen here in two-ply nylon. 6. Leggett & Platt’s SilverShell antimicrobial mattress protector inhibits 99.9% of germs and protects against stain- and order-causing bacteria as well as mold and mildew. 7. Fabrictech is introducing Celliant performance fibers to mattress pads and pillow protectors, helping the body reduce pain and heal faster by increasing oxygen levels in the body. 8. Protect-a-Bed’s Bed Bug Protection Kit includes a six-sided mattress encasement, a bed bug-proof box spring encasement and two Allerzip pillow protectors.
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Surtex Panel Will Explore Design Evolution WHITE PLAINS , N.Y. — A panel
of industry experts will review the state of American design during the upcoming Surtex show at the Javits Center in New York. “American Embraces Design…Finally” will take place May 17. A continental breakfast begins at 8 a.m., with the program running from 8:30-10:00 a.m. Tickets are $125 per person. Register at www.surtex.com. For more information, contact Sikalis at 914-421-3297, penny_ sikalis@glmshows.com, or visit www.SURTEX.com. Panelists include • Richard Roman, president and ceo of Revman International, Inc., the marketing company he founded in l988 to partner with some of the industry’s best-known brands, among them Marimekko, Laura Ashley, Tommy Hilfiger, Vera Wang and Candice Olson; • David Bolotsky, founder and ceo of UncommonGoods. com, an online marketplace focused on creatively designed, high-quality merchandise at affordable prices; • Lynn Shanahan, ceo of the C2 Group, a company that partners with and invests in both strategic and private equity firms, and provides operating management for its affiliates. She is currently acting president of Marimekko, North America; • David Hedley, managing director of Artwork Design Ltd., a 25-year-old design studio located near the traditional textile center of Manchester, UK; • Elizabeth Bournaud of Francois Bournaud, Paris, since l973, a leading design resource for textiles, stationery, and other products; • Michelle Ishay-Cohen, executive art director at Abrams, including such design-focused imprints as Stewart, Tabori & Chang; • Tom Mirabile, svp of Global Trend and Design for Lifetime Brands, Inc. The moderator will be Dan Rubinstein, editor-in-chief of Surface magazine. HTT
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Jaipur Rugs, Raymond Waites to Fete New Collection at High Point A T L A N T A — Hand-knotted,
hand-tufted and flat-woven contemporary rug company Jaipur Rugs and designer Raymond Waites have teamed up for a new collection of soft floor coverings, and together they are fet-
ing its launch at the upcoming High Point Market. An exclusive preview of the collection was set for opening day of market — April 3 — with a cocktail party from 4 to 6 p.m. at Jaipur’s onsite showroom in
suite 3415 in the Showplace area. Waites was set to attend to meet and greet attendees and present his new branded line. “We’re very excited to see Raymond’s unique creative vision come to life in this new
collection. The breadth of designs and constructions are incredibly diverse and we know that retailers will find something for every taste within the range,” said Asha Chaudhary, president of Jaipur. HTT
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First Monday: Specialty Retailing Casaideas’ first U.S. unit is located at The Shops at Sunset Place in Miami.
Casaideas Breaks into U.S. Market with Miami Unit BY CECILE B. CORRAL M IAMI — Having picked this
pan-Latin city as its entry in the U.S. market with a new store that opened its doors here in December, it may come as a surprise that the focus of South American home furnishings discount chain Casaideas — or “Home Ideas” in English — is not a Hispanic customer. “We treat our customer as a global customer,” explained Diego Mora, international business manager, to HTT during a recent store tour. “And here, we are targeting the American consumer — not just the Hispanic customer.” Casaideas Miami occupies one of the anchor-tenant spots at
The Shops of Sunset Place, an alfresco mall in the middle- to upper middle-income neighborhood of South Miami. Its twostory, roughly 30,000-square-foot space (which includes about 22,000 of selling floor and 8,000 of staff offices and storage space) is the most visible of this mall — which also houses a 24-screen AMC Theater and Gametime as well as other stores like Pottery Barn, Armani Exchange, Banana Republic, The Gap and GapKids, Barnes & Noble and many others. “Miami was one of the areas that was hit by the economic crisis, but less so than other areas in the United St ates, so we decided to start our U.S. business in Miami,” Mora said.
The plan is to expand the chain locally within South Florida from Palm Beach to Broward and more throughout MiamiDade counties with eight to 10 new units to open in the coming few years. On the Miami store’s first floor are some bedding and bath presentations but mostly kitchen textiles and cooking supplies, table linens, decorative entertaining, pieces, dinnerware like plates, cups, glasses, etc., home décor pieces like mirrors, candles, vases, picture frames, wall décor, etc., and personal items like bags, personal care items, small travel gear, journals, pens, and other miscellaneous seasonal goods. On the second floor is the main presentation of
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its full line of bedding and bath linens and coordinate accessories as well as a full room décor line of juvenile novelty goods. Casaideas opened its first store in 1993 in Chile. Today, its store count has reached 52 units in Chile, where it operates its headquarters, as well as in Peru, Colombia, Bolivia and now here. Originally, textiles were the retailer’s focus, but over the years Casaideas has layered in some hard decorative goods to enhance its offering. Furniture, however, is not part of the mix with the exception of some small occasional pieces — rattan chairs at present being the largest item on the selling floor. Home textiles, which Mora said “continues to be our core offering,” comprise more than 50% of the current total merchandise mix. “Our products are made to be lived and consumed in everyday life. That is the key to our concept,” he continued. Every three weeks, Casaideas refreshes about 500 skus of its total 12,000 skus per store to remain relevant during shifts in trends and seasons. Price points for home textiles items include: $24.90 for all-cotton queen sheet sets; $9.90 for two-pack sets of shams; $39.99 for throws; $69.90 for duvet covers; $29.90 for curtains; $54.90 for sofa slipcovers $39.90 for chair slipcovers; $14.90 for deco-
rative pillows; $29.90 for shower curtains; $3.99 for tip, $6.99 for hand, $7.99 for bath, and $14.90 for bath sheet towels; $1.90 to $3.99 for placemats; $4.99 for four-pack sets of napkins; $24.90 for tablecloths; $16.90 for 2-by3 accent rugs; and $39.90 for 5by-9 area rugs. Price points are standard by category for the most part for the textiles assortment — regardless of handiwork and embellishments or lack thereof. Construction is largely all cotton or cotton-rich. “We are able to offer low prices because we are vertical — we operate all of our own design, manufacturing, logistics, retail, distribution. We pass along the savings to our customer. The idea is to help people enjoy their homes at a low investment, at a discount,” said Mora. Casaideas’ pricing hurdle has related to translating the value message to the consumer, Mora explained. “We think people are sometimes confused by our low prices,” he said. “They see our prices as too low, almost, and sometimes that work against us. So we are working on better communicating the value of our products so that they feel more comfortable about buying our goods at our prices.” And yet, while price is admittedly “important,” Mora said the company’s “strength is our design.”
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April 4, 2011
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Fashion bedding along with Casaideas’ other home textiles offerings — utility bedding, bath, table linens, kitchen textiles, soft window treatments and rugs — account for more than 50% of the retailer’s total merchandise mix.
Casaideas’s 70-member inhouse design team develops more than 85% of the retailer’s total product mix in tandem with the more than 2,000 manufacturers worldwide — mostly in China, India and Pakistan — with whom Casaideas works directly to develop its whole line — from nail files to bedding collections. “We don’t offer a Hispanic
look,” Mora said of the chain’s brightly colored merchandise, much of which employs some form of special treatment and/ or embellishment. “Ours is a global look that we maintain throughout the chain for all of our customers.” Casaideas’ designers are inspired by “our travels worldwide, whether it’s at home or
in Europe, Australia, the U.S. We try to appeal to everyone,” Mora added. “This is a borderless world and people live much in the same way regardless of where they live or what language they speak.” Casaideas Miami has not yet set up a wedding or baby registry service, but plans to add both soon. HTT
Safavieh to Debut Dec Pillows PORT WASHINGTON, N.Y. — Looking to give retailers a
broader product offering andmore design trends to pick from, high-end rug house Safavieh is launching a new decorative pillow collection as an independent but complementary product category to its soft floor coverings. Set to debut during the High Point Market, April 2 to 7, at the company’s Market Square showroom in suite 120, the category spans 50 skus in a range of designs intended for furniture stores to mid-tier chains to upperend home furnishings retailers, catalogs and websites. The dec pillow collection has been sourced, developed and designed by Tiffany Yaraghi, product manager for Safavieh’s pillow line. “Inspirations for this collection include the trend to vivid colors, often softened with white, and patterns range from Suzanis, to modern lace interpretations, to Moroccan motifs,” she said. “Our pillows complement the newest looks in furniture and fabrics, and will not be adapted from our rug designs. The pillow collection is designed to make a fashion statement as a standalone line, exactly the same way that retailers would program and display them in stores.”
Fabrics chosen for the first collection include cotton canvas with hand-stitched embroidery, 100% cotton, hand-woven cotton novelty fabrics, and easy-care polyester. Fill content is either a down and feather blend or polyester. The pillows are made in India, China and throughout Europe, and will be available for pre-summer delivery. Sizes include 18-inch squares and 22-inch squares. The suggested retails start at $45 for an 18-inch size with feather and down fill. HTT
Behind: The Honeycomb pattern in the Pink Abbey colrway os translated in 100% hand-woven cotton. At front: Seen here is ZigZag in the Red Aura colorway, a 100% handwoven cotton pillow with a down/
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April 4, 2011
Rugs
Winter 2011 Rug Preview
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Encouraged by the continued pace of improving sales from December into this year’s first quarter of business, area rug suppliers launched a broad assortment of new looks deemed to decorate the floors of traditional indoor settings, family-friendly spaces and outdoor living rooms and patios. Suppliers were booked up with retailer appointments for the markets, giving them cause to feel assured that buyers are returning to their showrooms to write orders and stock their shelves with new products in the coming months. Whether formal or casual, new design trends are meeting somewhere in the middle, with many nature-inspired palettes and organic design elements dominating the season’s trends. “We are seeing big trends in tonal and textured looks,” explained Steven Peykar, principal, Saddle Brook, N.J.-based Nourison. “So we have developed a number of new lines that utilize multiple textures, whether by using different yarns or different constructions like hand-made with cut-and-loop textures or others.” Here is a sampling of some major rug suppliers’ product introductions for winter and spring 2011. HTT 3 1
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1. Surya Inc. is launching the new Moderne collection with designer Bob Mackie. Inspired by his costume and formalwear designs, these handtufted New Zealand wool rugs feature faux silk highlights. Moderne rugs are made in India. 2. Mohawk Home is expanding its licensed collection with Woolrich with several new designs, including this one titled Cedar Run. 3. Ebisons Harounian Imports is launching its new Urth collection, which spans seven antique Persian and Anatolian designs in four color combinations. 4. Rizzy Rugs is showing Avant Garde, a Tibetan hand-knotted and handspun semi-worsted rug made in a New Zealand wool and viscose blend. Designed for the high-end market, a 5-by-8 is set to retail for $1,799. 5. Oriental Weavers/Sphinx’s new Montego collection from Egypt uses a palette of citron green, terra cotta, bright mineral blue, fresh ivory and deep cocoa brown. Giving a modern twist to classical design, these 100% polypropylene machine-made rugs are made to complement outdoor living areas. 6. F.J. Kashanian Rugs new Indo-Peshawar collection of handmade rugs from India comes in a variety of designs, like this one titled Maharaja in the aqua-and-ivory colorway.
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1. The Rug Market’s new Expressions collection comprises designs that are “all things trendy, hip and sophisticated” with looks like this one titled Whirl. These synthetic fiber rugs are being added to the company’s Ecconox line of value-priced products.
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2. Capel Rugs’ new Daisy Climber Vine is one example of several rugs by designer Kevin O’Brien. Made in India, this collection is hand tufted from pure wool. 3. Harounian Rugs International is adding various new designs to its growing private label program of hand-crafted rugs made from wool and/or synthetic fibers. These skus are made to order to retailers’ specifications, including custom sizes, colors, and qualities. 4. Creative Home Ideas’ Figaro is a two-color cut and loop accent rug. It features a latex non-skid back, and is machine washable. 5. C & F Enterprises Inc. is introducing the Parfait collection of hand-hooked washable rugs and matching decorative pillows. Designs are seasonal, like this seashell pattern. 6. Momeni is expanding its machine-made offerings with several new collections as well as design additions to some existing, including the Sensations collection.
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1. Nourison’s Lake rug is hand tufted in the company’s heaviest dense wool pile. Made in India, its construction is 75% New Zealand wool and 25% viscose. Designs are transitional and abstract. 2. cmi is launching seven new collections, including Olivera. These pieces employ Thimbleberries fabric colors and durable alternating braid construction. Made of 70% polyester and 30% cotton, Olivera reversible rugs come in dusty shale, soft black, vintage blue, light parsley, cranberry blend, and warm chestnut. 3. Company C’s new Mayfield rug, seen here in the cream colorway, is part of the Summer Brights collection of painterly floral hooked rugs made of 100% wool. 4. 828 International Trading Co. is introducing the Ellington collection of traditional and transitional styles. Made in India, these 60-count wool-and-silk rugs are hand-tufted and acid washed and feature some hand-carved details. 5. Shaw Living’s designer collection with Angela Adams grows this market with the addition of Modern Comfort, a grouping of machine-woven U.S.A.-made rugs constructed of the company’s “EverTouch” nylon fiber.
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PEOPLETodaY Walmart Establishes Eastern Business Unit, Brewer Named President ATLANTA — Walmart has established the headquarters here of its new eastern business unit, which spans almost 1,600 stores with 560,000 associates in 20 states stretching from Florida to Maine. This eastern business unit will be led by Atlanta veteran Rosalind Brewer, president of Walmart East and evp of Walmart U.S. “With the busiest airport in the world and a central location, Georgia is the ideal destination for our eastern business unit,” Brewer said. “Atlanta
has a strong history of corporate and divisional headquarters and we’re delighted to join this group and spotlight the city within our global organization.” In her new role, Brewer is responsible for establishing the strategic direction for the eastern business unit, including growth opportunities in store innovation, people development, supply chain and real estate. S h e j oi n e d Wa l m a r t i n 2006 as regional vice president, responsible for operations in Georgia, and was soon pro-
moted to president of the southeast operating division. She later led the south business unit of Walmart U.S. as executive vice president and president before being appointed to her current role. Prior to joining Walmart, she worked for Kimberly-Clark Corp. and Molson Coors Brewing Company. She serves on the board of trustees for Spelman College and the Westminster Schools in Atlant a. And, in 2010, she was named one of Fortune magazine’s “50 Most Powerful Women.” HTT
Vision Fabrics Taps Robinson for Sales INDIANAPOLIS — Vision Fabrics,
a newly launched textile converter that opened its doors in December during Showtime, has hired Travis Robinson to join its sales team. Robinson began his career in textile sales six years ago and is a fourth-generation textile sales professional. In his new stint, he is respon-
sible for the jobbing and handling retail and specialty market segments within the Southeastern U.S. “We are extremely excited to have Travis as a part of our growing sales team” said Tom Carter, national market manager. “He has an impressive track record of success in what has been a difficult time for the
industry these past few years. He has a true passion for this industry and is a perfect fit for our company’s culture of providing innovative textile solutions and excellent customer service.” Vision Fabrics USA’s head office is located here, and the company is a division of parent company J. Ennis Fabrics. HTT
Perfect Fit Names vp-sales, Adds to Product Dev Team C HARLOTTE , N.C. — Perfect Fit
Industries has added Bonnie Wilson as vp of sales, a new position. She will oversee Perfect Fit’s account team in the US and Canada as the company expands into new product categories and channels. Wilson will report to Dan Hammer, president and ceo. Wilson’s 25 years of experience in the home textile industry crosses multiple product categories. Previous executive positions have included Springs Global and Liz Claiborne Home.
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“We’re thrilled to have Bonnie with us,” said Hammer. “Her expertise in managing a broad portfolio of product categories is an ideal fit with our vision of expanding into new products and new distribution partnerships.” In other company news, Perfect Fit has added two new positions to its product development team. Terrie Zagorski and Kendall Dunlap join the company as merchandise managers and report to Carmen Waite, vp of marketing
and product development. Zagorski, a 20-year veteran of the home textiles industry, most recently served as merchandise manager for fashion bedding at Springs Global and will lead Perfect Fit’s new product initiatives in sheets, pet beds and furniture covers. Dunlap comes to Perfect Fit most recently from Boy Scouts of America with prior positions at Hanes and Springs Global. She will be responsible for product growth for key accounts. HTT
Capel Appoints Kim Walker Sales Associate TROY, N.C. — Capel Rugs has
named Kim Walker its sales associate based at the company’s Atlanta showroom at the AmericasMart. Most recently, Walker was the showroom manager and salesperson for Utmost Interiors, a design firm in the Atlanta area. There, she handled sales, visual merchandising, purchasing and a range of marketing initiatives. In her new stint, Walker’s duties at Capel’s Atlanta show-
room, located in the Mart’s space 6F2, include developing new marketing initiatives to increase designer attendance and sales. She reports to Allen Robertson, vp of sales. “We are excited to welcome Kim to our Atlanta team,” said Robertson. “Interior designers are an increasingly important source of sales for Capel, and Kim’s experience in the design world will help us guarantee we are meeting the needs of designers as customers.” HTT
Welspun’s Jerry McCarthy Plans to Retire N E W YO R K — Welspun USA announced industry veteran Jerry McCarthy, director of towel sales, plans to retire. McCarthy has spent more than five years with Welspun. His previous career included executive positions at both Springs and Fieldcrest/Cannon. During his tenure, Mr. McCarthy has worked with all of the major retailers, and Welspun said he has been “instrumental
in establishing Welspun as the largest supplier of towels to the U.S. market.” Jeff Moss has been hired to fill the position. Also an industry veteran, he spent the last five years with Towellers. Prior to that, Moss worked with Fieldcrest/ Cannon and Leshner Mills. Moss and McCarthy will work together in the immediate term to insure a smooth transition. HTT
Castellani Named Group President N EW YORK — Kevin Castellani has been named president of the Sandow Media group of retail trade publications that includes Home Textiles Today. He was previously vp and publishing director. In addition to HTT, the group includes Furniture Today, Casual Living, Gift and Decorative Accessories, Home Accents Today, Kids Today and Playthings. In addition to the printed editions, Castellani will continue to also oversee the online editions for each title.
“I am fortunate to be surrounded by what I believe are the best editorial and publishing teams in the business-to-business sector,” said Castellani. “With their ongoing support, we will continue to grow by bringing our audiences must-have market intelligence and creative marketing solutions in print and online.” “He is a true leader and expert in the industry and indisputably capable of surpassing the industry’s expectations,” said Adam Sandow, chairman and ceo of Sandow Media. HTT
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Home Textiles Today
New Line LOWELL FROM PAGE 1
The first, dubbed the Christopher Lowell Collection, is “more of a traditional line of bedding based on pre-coordinated prints and solids we know men will like,” Lowell said. “Here, we are going with a lot of earth tones that match the palette and a heavy spa influence in the patterns,” which include many organic design themes.
April 4, 2011
The second is Lowell’s Boutique Hotel Collection, which he said “turns the master suite into a luxury hotel suite.” The third, CL on Campus, is a college-oriented collection “that has very high style and smart colors.” The designs here use techsavvy lingo for a “very hip” assortment. “This collection is really built on the idea that a lot of these kids only have two or three resources to pick out cool stuff for their dorms that they can pick
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themselves,” he told HTT. In creating his program, Lowell drew from his design experiences that taught him how to work strictly with couples — and not just the lady of the house — in designing and decorating spaces. “The days of florals are over now,” he said. “Too many women abused that look at home for too long, and the guys hated it, so you aren’t going to see that now.” What you will see, however, he continued, is “a very sexy, stream-
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lined approach. Our patterns are more botanically inspired with a suggestion of nature.” It will all be “non gender-specific” so that is appeals to both men and women equally. Additionally, Lowell is giving a sense of practicality to the line, incorporating “as many reversible looks as we can,” as well as new fiber technologies that offer comfort at the right price. The sheeting aspect of the line will include products made of a
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new grain of microfiber — “a new grade that answers to the price of cotton in our industry,” Lowell noted. “These sheets are completely woven, front to back, to allow them to breathe like natural and expensive cotton. But this is better because it lasts longer and comes out of the dryer wrinkle free.” The collection targets “all price levels,” which Lowell described as ranging from an off-price chain through a better department store. “As a designer, I know where to put the perceived value, where to add the detail on the bed ensemble and where not to waste your time putting it,” Lowell noted. “We also are out in the world all the time, so we know the hotels where people would like to stay in but can’t afford,” he went on. “My specialty is to take influence from those things, bring them to marketplace and pre-coordinate it and develop the look so the shopper can afford it.” Added Daniel Levin, managing director of Beanstalk Los Angeles: “The time is right now [for the launch] because people are looking more and more for ways to not to make a mistake when designing their homes. Budgets more than ever are a concern for consumers, so they want to make sure they are making really smart choices. And Christopher’s philosophy will give them true confidence in buying his products and knowing they will go with the lifestyle and look they want to achieve.” Levin is also Lowell’s close friend and colleague, having represented him and collaborated with him on his many professional endeavors over the past 18 years. “Budgets more than ever are a concern for consumers, so they want to make sure they are making really smart choices,” Levin continued. “And Christopher’s philosophy will give them true confidence in buying his products and knowing they will go with the lifestyle and look they want to achieve.” The first part of the collection to release this spring will be the sheets. More bedding and bath will follow, and in the future possibly other home textiles categories, which Lowell said he hopes will be done in conjunction with Fayette-Renaissance. In the meantime, Lowell has a new TV series in development that will support the collection. In the soft home category, Lowell has licensed Jo-Ann Fabrics for fabrics. HTT
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April 4, 2011
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EDITOR-IN-CHIEF Jennifer Marks 10 Ocean Blvd #8B Atlantic Highlands, N.J. 07716 (732) 204-2012 | jnegley@hometextilestoday.com FOUNDING EDITOR-IN-CHIEF Carole Sloan PRODUCT EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | cbcorral@aol.com MANAGING EDITOR Julie Murphy (646) 805-0224 | jmurphy@hometextilestoday.com DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | dfrench@sandowmedia.com
Williams Sonoma Riding Away From Recession with Record Earnings SAN FRANCISCO — Williams Sonoma
Inc. is seeing the light at the end of the recession tunnel, having posted record earnings for fiscal 2010 and stronger performances in each of its five nameplate brands over the prior year. Laura Alber, president and ceo, explained the company “made substantial progress on our longer-term growth and profitability initiatives. We are particularly pleased with the progress we made in merchandising, marketing, customer acquisition, and customer service, as it is these competitive advantages that allowed us to attract new customers to our brands and gain profitable market share all year, including Internet revenue growth of 27%.” For the quarter, total company net revenues increased 9.7% to $1.195 billion versus $1.090 billion in the year-ago period, including Internet net revenue growth of 27.2% and a comparable store sales increase of 5.2%. Non-GAAP diluted earnings per share grew 26% to $1.08 per share.
Quarterly retail net revenues increased 5.3% to $729 million versus the prior year’s $692 million, primarily driven by the Pottery Barn, West Elm and Williams-Sonoma brands. Retail net revenues represented 61% of total company net revenues in Q4 ‘10 versus 64% in Q4 ‘09. And comparable store sales in the fourth quarter increased 5.2% versus 7.6% in 2009’s fourth quarter. Comp store sales results by retail concept were as follows: WilliamsSonoma, 2.3%; Pottery Barn, 8.9%; Pottery Barn Kids, 4.6%; Outlets, and 11.4%. The company’s direct-to-customer segment was a shining star in the fourth quarter, churning a 17.3% increase to $466 million versus $398 million a year ago, primarily driven by the Pottery Barn, Williams-Sonoma, PBteen, Pottery Barn Kids and West Elm brands. Internet net revenues increased 27.2% to $393 million versus $309 million in Q4 ‘09. Direct-to-consumer net revenues represented 39% of total company net revenues in the quarter versus
36% in Q4 ‘09, representing a channel mix shift of 300 basis points. For the full fiscal 2010, net revenues increased 12.9% to $3.504 billion versus $3.103 billion in fiscal 2009, including Internet net revenue growth of 26.9% and a comparable store sales increase of 9.8%. NonGAAP diluted earnings per share grew 105% to $1.95 per share – “a new record for the company,” Alber noted. Direct-to-customer net revenues for the year increased 18.6% to $1.453 billion versus $1.225 billion, primarily driven by the Pottery Barn, Pottery Barn Kids and PBteen brands. Internet net revenues increased 26.9% to $1.197 billion compared to $943 million in 2009. Direct-to-customer net revenues represented 41% of total company net revenues in the year versus 39% in is fiscal 2009, representing a channel mix shift of 200 basis points. This shift resulted in a 20-basis-point rate improvement in the company-wide operating margin due to the directSEE WILLIAMS PAGE 23
PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | wshoulberg@hometextilestoday.com ASSOCIATE PUBLISHER Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER NORTHEAST/MIDWEST/ WEST COAST/CANADA Mary McLoughlin (646) 805-0227 | mmcloughlin@hometextilestoday.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 swhittle@sandowmedia.com Karen Hancock (336) 605-1047 khancock@sandowmedia.com MANAGER, CHINA Nancy Yu Tel: 86 (0) 21 5126 0111; Fax: 86 (0) 21 6539 0321 nancy@oceaniamedia.net MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | kj_reeds@yahoo.co.in ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com DIRECTOR, WEB OPERATIONS Chris Schultz | (336) 605-1076 | cschultz@sandowmedia.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | dsage@sandowmedia.com E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | maxe@sandowmedia.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | aternes@sandowmedia.com PRESIDENT, FURNITURE TODAY GROUP Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com
SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow VP CREATIVE AND EDITORIAL Yolanda E. Yoh EVP, GROUP PUBLISHER James N. Dimonekas
Same-store sales
Weekly Comps Benefit from Spring Purchases N EW YORK — Consumers have begun spending on
Comparisons for the final week of March on the respring merchandise, lifting same-store sales 2.6% dur- tail calendar, which concludes April 2, are expected to be ing the fourth week of March, according to the John- tough since last year the week benefited from pre-Easter Sunday shopping. HTT son Redbook. Discounter comps ran slightly ahead of plan with a 2.2% gain, while department stores fell just below plan with a 3.4% rise, said Catlin Levis, RedJohnson Redbook Index book analyst. Fourth week of March, year-over-year % change “Students on spring break during this periWEEK ENDED 3/5 3/12 3/19 3/26 4/2 MONTH TARGET od also helped to give sales and traffic an exDepartment stores* 4.8 4.2 4.6 3.4 4.2 5.2 tra boost,” she added. “In the coming weeks reDiscounters 0.7 0.9 1.4 2.2 1.3 1.3 tailers are hoping that extra cash from income Redbook Index 2.0 2.0 2.4 2.6 2.3 2.5 tax refunds will spark sales while some worried *Including chain stores and traditional department stores about continuing rising oil prices stalling conSource: Johnson Redbook Index sumer spending.”
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3/29/2011 5:27:21 PM
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Quarter WILLIAMS FROM PAGE 22
to-customer channel’s significantly higher operating margin versus the retail channel. Fiscal 2009’s retail net revenues increased 9.2% to $2.052 billion, from $1.878 billion the prior year, primarily driven by the Pottery Barn, West Elm and Williams-Sonoma brands, despite a 4.1% year-over-year reduction in retail leased square footage, including 18 net fewer stores. Retail net revenues represented 59% of total company net revenues in FY 10 versus 61% in FY 09. Comparable store sales increased 9.8%. Comp store sales results by brand for the full year were: Williams-Sonoma, 4.6%; Pottery Barn, 14.3%; Pottery Barn Kids, 13.0%; and Outlets, 9.8%. Merchandise inventories at the end of fiscal 2010 increased 10.1% to $513 million on reve-
nue growth of 12.9%. “As we look forward to fiscal 2011, we will remain focused on gaining market share and improving profitability,” Alber said. “To gain market share, we will continue to attract new customers to our brands through highly targeted multi-channel marketing; creative, innovative and relevant product offerings; and expansion of our brands into new markets and international geographies. To improve profitability, we will be implementing new efficiencies in our worldwide supply chain; driving increased traffic and higher sales per foot in our retail stores by reinventing the customer experience; and expanding our e-Commerce business – including rolling out international shipping in the back half of the year.” In the new fiscal year, 2011, the company expects its e-commerce business to “once again
be our most profitable and fastest growing channel,” she continued. As such, Williams Sonoma Inc. is projecting its direct-tocustomer segment to reach 43% of total company revenues compared to 41% in fiscal 2010. “From an investment perspective in fiscal 2011, we expect capital spending to be in the range of $135 million to $150 million – with over a third of that in e-commerce and supply chain,” Alber went on. “We also plan to invest an incremental $25 million in SG&A to support our e-commerce, international, and business development growth strategies. Including all of these investments, we expect fiscal 2011 to be another record financial year – with non-GAAP diluted earnings per share increasing in the range of 8% to 12% and net revenues increasing in the range of 4% to 6%.” HTT
23
Home Textiles Today
April 4, 2011
Marimekko EXPANSION FROM PAGE 1
C2 Group, Shanahan has worked with Marimekko to expand brand penetration in North Ameica. The flagship store, set to open this fall, will be located in a historic building, that was formerly known as “The Toy Building” at the corner of 5th Avenue and Broadway on 200 Fifth Avenue. The nearly 4,000 square foot sales floor will mirror the recently opened flagship store in Helsinki. While the broad porfolio of Marimekko products will be available at the store, the newest products will be the focus each season. About 50% of the assortment will be apparel, with hard and soft home as well as accessories making up the remainder, Shanahan told HTT. “We are design first,” she added. “The apparel and home [products] are palettes for the design.”
Marimekko’s U.S.-based online shop will be live by this summer. A Marimekko shop will also be added to the Crate and Barrel e-commerce site. In addition, Crate and Barrel plans to open more than 20 new Marimekko shop-in-shops over the next three years. The first opened last October in Crate’s Broadway store in New York. This spring, shops will be opened in New York (Madison Avenue,) Chicago, Los Angeles and San Francisco. “Opening a store of our own in an excellent location in the heart of Manhattan will support our strategy of building Marimekko’s profile and strengthening the brand image,” said Marimekko president and ceo Mika Ihamuotila. “It is crucially important for us to be able to ensure wide availability of our products but to do so while introducing our customers to the whole world of Marimekko in our own way.” HTT
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Home Textiles Today
April 4, 2011
News
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cmi “Resurfaces” with New Brand and Website PAWTUCKET, R.I. — Family-run
braided texture rug company cmi – Colonila Mills Inc. – has come up with a new branding message to go with its newly revamped website, www.colonialmills.com. Lynne Minchello, director of marketing, and Meredith Thayer, product and design manager, have been working together since summer 2010 on a rebranding
JCP vs. Kohl’s FACE FROM PAGE 1
There was a big fanfare accompanying the launch, thanks to commercials that aired during the 2008 Academy Awards in February, of which JCPenney was the exclusive retail sponsor. Press releases also touted store-within-a-store formats, white wooden fixtures, store associates wearing red American Living polos and American Living shopping bags. The white wooden fixtures appear to be the only vestige remaining of the marketing effort at the American Living bedding section at the busy Queens Center in Elmhurst, Queens. There are four American Living bedding collections represented, although not all pieces listed on signage could be found on shelves. American Living bedding occupies a narrow 20 foot by 5 foot footprint, with sheets found in a separate area. Additional American Living bedding could be found on the back wall of the bedding department. There are two display beds and the first features the Eastborne collection, a damask jacquard in tan and tea. Discounts are steep: The Eastborne queen comforter set, featuring a comforter, bedskirt and two shams, was originally $335 and is on sale for more than half off at $149.99. Coordinating Euro and decorative pillows are slashed from $70 to $34.99 and $60 to $29.99, respectively. Prints, especially floral patterns, rule the collections. The second bed displays the Granville comforter set, originally $300, on sale for $129.99. This is also a damask jacquard in gold. The coordinating decorative pillows have floral em-
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project that has one main goal in mind: “show customers that cmi is resurfacing from this recession with a rejuvenated look that will allow customers to feel the texture and appreciate the construction that cmi has to offer [with its] braided-texture area rugs and accessories,” the company said. That goal was first achieved via cmi’s most recent product catalog, which launched Febr. 1, fol-
lowed by the new website, which also launched last month. Simple navigation is at the core of the new website. “We categorized the ‘Browse By’ function into eight different categories to make it easy for the retailer or consumer to quickly find the rug that fits their décor,” said Minchello. “Search by Modern Rugs, Outdoor Rugs, Juvenile Rugs, Traditional Rugs, Yarns/
Fabrics, Colors and Eco-friendly Rugs. The site looks great and really accomplished the rebranded, revived look Meredith and I set to accomplish with the 2011 cmi image.” The new website also offers cmi’s assortment of accessory baskets, chair pads and stair treads for viewing and ordering. Other features include Decorating Tips, a Factory Tour, Rug Care, Cus-
tom Design Steps, Tradeshow Information and more. Additionally, cmi is currently in the process of implementing the website’s ‘Phase 2’ effort, which will include a wide-range of options for customers/retailers to utilize. On a related note, social media is another new focus for cmi, which is active on Twitter and Facebook. HTT
broidery or ribbon stripes, they were originally $50 and are now on sale for $24.99. While there are prices listed for full/queen and king sizes for a third bedding collection called Blue Point, a traditional quilt pattern with small scale floral print, there are only decorative pillows (originally $60 on sale for $34.99) and shams (originally $50 on sales for $29.99) stocked on shelves. Curiously, a small, four-shelf tower held just a small assortment of a fourth look, Somerset Park. There are three quilts in lilac and champagne satin stripes with an all-over damask pattern stitching, (full/queen quilt size was once $170 and is on sale for $59.99). Matching decorative pillows in lilac are on another fixture, while Somerset Park comforter sets are found along the back wall, cut off from view by tall fixtures. A comforter set in queen size, originally $270, is on sale for $99. The steep price cuts were probably not part of the initial vision. In February 2008, Jeff Allison, evp for home told HTT that American Living “represents traditional, classic, beston-floor quality with a real feel of Americana.” HTT reported that initial price points were some 10 to 30 percent higher on average than the typical Penney product. In what also seemed like a departure from the initial vision that promoted cross promotion, American Living sheets are not in the same area but located separately. Blakely queen sheet sets in a 425 thread count feature a small, paisley tone on tone print and come in six colors. They are $69.99, on sale from $140. Online shoppers can buy Landon, a higher 800 thread count in a long staple Egyp-
tian cotton sateen in white or coconut milk. Also online are quilts, comforters and shams for five other collections, but not every comforter and quilt has a matching sham. There are woven cable-knit Supima blankets listed online at outlet prices of $19.99 to $29.99, originally $70 to $100. There’s no indication to the consumer of the Polo Ralph Lauren connection, at least not overtly, but that is part of the plan. As Allison told HTT in the launch interview, it is “like their Rugby line which also has no [corporate] identification. There’s a great connection with the product to the JCPenney customer. It’s so obvious [as to its heritage].” Chaps Home, designed and developed by Ralph Lauren and sourced directly by Kohl’s, employs a similar strategy of communicating the brand through design. It too was a huge launch for the retailer, back in May 2007, becoming the first national brand that Kohl’s carried in every one if its major departments. A visit to the bedding department, at a Kohl’s store also in Elmhurst, finds the Chaps brand on the far side of the area, next to towels and across from sleepwear. The brand occupies a 14-by-6 footprint, plus another 5-by-8 adjacent area where the more steeply discounted bedding is found. There appears to be seven Chaps Home bedding collections with one bed on display for a floral pattern collection called Rosemont. A Rosemont queen comforter set with comforter, bed skirt and two shams, originally $419.99, is on sale for $289.99. Sale prices for this collection are 25% to 35% off original, with an additional 20 percent if shoppers open a Kohl’s
charge card. Prices are actually hard to determine. Signage simply lists original and sale prices, for example, $49.99 was now $34.99, but what exactly did one now get for $34.99? For that one has to consult another list to determine $49.99 represents decorative pillows or shams, or if the second list isn’t available, compare price tags on products and determine the sale price. While there are steep savings to be found on each collection, the chance of pulling together a coordinated bed fell along with the prices. For Montego Bay, a watercolor paisley print, marked down 80 percent on a clearance fixture, there are only five comforter sets and two single shams. On the same fixture, Montauk Studio offers three quilts, six shams and a comforter. Nantucket Studio offers a single quilt. Several collections are split up, with half found on fixtures in the center of the shop while along the back wall is the rest of the bed. In the back there are cream and red quilts for the French Rivera collection, as well as a single red floral needlepoint-like decorative pillow that completes the rest of the bedding. There are also additional pillows, shams and a quilt that complement the rest of the Anjou collection, a vintage floral pattern, also found in another location. One of the Leighton decorative pillows, in a deep red velvet with a royal-looking crest on in it, offers perhaps the clearest design link to Ralph Lauren. Just about every collection has a few pieces belonging to other collections, making an attempt to quantify what was in stock and what was missing, rather dizzying. Sheets are in abundance, offered on a couple fixtures. Chad-
wick queen sheet sets in a 700 thread count, 100 percent Egyptian cotton sateen, are reduced from $199.99 to $109.99, a discount of 45 percent, a point of information that was helpful noted on the signage. Online there are at least eight more collections, although some have more components than others. The floral and patchwork Wainscott collection offers a wide range of comforter sets, duvet sets, sheet sets, Euro pillows, decorative pillows and shams at prices that were about 30 to 35 percent off. For Dylan quilt coordinates, there is simply a full/ queen quilt in a bold red and white geometric pattern, originally $199.99 now $79.99 and a decorative pillow, originally $44.99 now $21.99. On whole, the Chaps area seems tucked off to the side, sort of lonely, so much so that the centrally located Vera Wang bed, with her pale Chrysanthemum collection dec pillows shimmering like a bride, gives one the feeling that Chaps has been relegated, forgive the metaphor, to forever be the bridesmaid. While the Chaps line is not identified as a Ralph Lauren brand, it is a label Polo has used previously and one that had been linked to Ralph Lauren. American Living was created especially for the Penney program. Taken with Polo’s multiple other home brands, including Lauren Ralph Lauren and Ralph Lauren Home Collection, it represents the company’s strategy of multiple tiering, something it has successfully executed in apparel for years. Based on these isolated store visits, it remains to be seen how American Living and Chaps will play out long-term in that strategy. HTT
3/29/2011 5:08:15 PM
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