Home Textiles Today Sept 12th 2011

Monday, September 12, 2011

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

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hometextilestoday.com

| Vol. 31, No 21 | $8.00

COTTON CRISIS II Prices Begin to Settle. Now What?

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Cotton Pricing: What goes up Must Come Down ‌ Sort of. Page 9 Market Basket Revisited: New Retails for Old Standbys. Page 10 Continuing Commentary on Cotton Considerations. Page 4

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Home Textiles Today

Retail Briefs BrylaneHome Expands Plus Size Living

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rylaneHome’s Plus Size Living Collection now includes more than 20 styles of quilts in the oversized bedding collection in both traditional and modern looks as well as larger-size office chairs and matching desks, kitchen and dining chairs, parson chairs, and occasional chairs with matching ottomans and bar stools that support users up to 350 lbs.

Gordman’s Focusing on Home for Holiday

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egional value department store Gordman’s is pushing the home department during the upcoming holiday season.

“One of our many big ideas to drive sales in the fourth quarter is called ‘Cool Yule,’ which is based on a very vibrant, neon-based color palette. It’s very differentiated and has a very contemporary theme,” said president and ceo Jeff Gordman.

Big Lots Touts Home

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ome was among Big Lots’ most improved merchandise categories during its second quarter, and the chain is expecting continued momentum as it starts to implement several initiatives. “The early trends look good,” according to Steve Fishman, chairman, ceo and president.

“It’s early, but we absolutely believe our home business and the assortments will improve over the next several quarters,” he said.

Burlington Coat Factory Sees 2Q Sales Boost

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econd quarter sales increased 8.9% to $793.3 million, with comps up 4.0%. “Many areas of the business contributed to this result, which we believe provides positive momentum for the remainder of 2011,” said Tom Kingsbury, ceo.

Pier 1 Logs Strong 2Q sales

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ier 1’s sales for the second quarter rose 9.7%, with comps up 10.8% on top of an 11.2% same-store sales increase in the year-ago quarter.

Sales for the quarter were $340 million, and merchandise margins for the second quarter will be approximately 59.3% of sales, up from last year’s second quarter merchandise margins of 58.3% of sales.

Second quarter earnings are expected to be 14 cents per share.

CSN Relaunches as Wayfair.com

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nline retail powerhouse CSN Stores - the second largest online seller of home furnishings in the U.S. - officially relaunched itself as Wayfair.com last month, consolidating more than 200 product sites into one megasite, with more than 4.5 million items and 5,000 brands.

In a release, the company called the move a “major strategic development,” adding that the company is on course to top $500 million in sales this year.

The new site includes a new tagline, “a zillion things home.”

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September 12, 2011

News

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Softline Eyeing New Frontiers at 10th Anniversary

BY JILL ROWEN G ARDENA , C ALIF . — Softline Home Fashions is celebrating is 10th anniversary this year and founders Jason and Rodney Carr are as passionate and energetic in running the company as they were that first day in August 2001.

In fact, speak to them for a few minutes and their energy is contagious. The distributors of ready-made curtains, decorative pillows, and fabrics continues to thrive despite weathering some intense economic storms. And, they have big plans for the next 10 years and beyond.

They are no strangers to adversity. Case in point: starting the business in the midst of 9/11 chaos that made it difficult for then Toronto-based Rodney to get a Visa to work with Jason in Los Angeles. And, when the U.S. economy imploded in 2009, Soft-

The Carr brothers: Rodney (l) and Jason

line’s response: expand into Montreal, Canada with a showroom and full distribution center.

Today, Softline’s products are distributed not only to major SEE SOFTLINE PAGE 39

Making Showroom Magic How Designers Create Spaces that Influence Textile Buyers

BY JENNIFER WHITE KARP N EW YORK — Here’s a riddle:

When is a bed not just a bed?

When it is part of a showroom, one that is all tricked out with carefully chosen lighting, wallpaper and accessories to highlight the bedding or other textiles and appeal to retailers’ sensibilities.

And for that there is a small

army of professionals who elevate the bed — and the space around it — from humble sleep zone to buying tool by interpreting the mood of the collection, building showrooms with the ingenuity of set designers and making the bed with the precision of a food stylist. The fruit of those labors can be seen at this month’s New York Home Fashions Market.

And while those showrooms are typically visions of serenity, how manufacturers arrive at the finished product is typically a frenzied process.

Surprisingly, it all often starts out with a single word, according to showroom designer Tracy Bross, who has a background in interior design and has worked for Tommy Hilfilger and Ralph SEE SHOWROOMS PAGE 38

Revman to Produce Portico Bed and Bath for Hospitality N E W YO R K — Revman International has signed to produce bedding and bath for the hotel and spa industries under the Portico sustainable lifestyle brand.

The collection will include eco-friendly sheets, duvet covers, dec pillows, throws, bath

towels, bath rugs, robes and accessories.

“As more people become aware of their environment and the importance of eco-friendly products we believe they will develop a strong preference for products like Portico which are not only luxurious, but are also

environmentally responsible,” said Rich Roman, president and ceo of Revman International.

Gregg Haft, president of Portico, said the new line is “beautiful, comfortable and environmentally friendly - something hotel management and their guests can feel good about.” HTT

9/8/2011 10:49:02 AM

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Home Textiles Today

September 12, 2011

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OPINIONTodaY Buying Less, Buying Better

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A M TOR N. For the past several weeks I’ve been writing about economic data that outlines the middle class and its buying power in sharp decline.

On the other hand, the anecdotal evidence trickling in about consumers’ reactions to elevated price points suggests they are willing to pay more — they’re just not buying when or what they don’t have to.

Pragmatism isn’t bad. In fact, it was a complete lack of pragmatism that landed this country where it is at present. And it is quite pragmatic to understand it will take EDITOR-IN-CHIEF quite some time to dig out.

As the industry headed into 2011, the retail mantra was “Same open-to-buy, fewer skus.” That, by several accounts, continues to stand as the strategy going into 2012.

Retailers are buying less, but buying better (one hopes) because consumers are doing so. That holds true not just for the distressed middle and working class. Boutiques serving the better-heeled consumer see a need to project value. Check out our story on page 34. As one independent retailer notes: “Those that had $20 million now have $10 million and they are running scared.”

Running scared, of course, is no sound strategy for those in business. Understanding to what extent one’s customers are running scared — and adjusting accordingly — is eminently rational.

I’m torn because in preliminary market previews, I’m seeing a creative emphasis on texture as well as great, bright colors. (Hello, 1980s!

We don’t have to start wearing shoulder pads again, do we?)

This is where one of us on this page would normally write: “Don’t wimp out. Be bold. Give your consumer something she can’t walk away from.”

I’m torn. But on second thought, I still stand by the sentiment.

Jennifer Marks

HTT

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Yet Another Column About Cotton

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F YOU ’ R E SI T T I NG T H E R E saying you can’t believe he’s writing another column about cotton, how do you think I feel?

Who knew a guy could spend his entire career in business journalism and be reduced to endlessly ruminating about a little pale gray bud that grows in very hot fields and somehow has come to dominate virtually every distaking place when the Warren cussion conversation turns to sheets Shoulberg and towels?

So, if you’ve been on the PUBLISHER/ EDITORIAL DIRECTOR planet Uranus the past two years and haven’t been following this soap opera, maybe you don’t know that cotton, the most widely used raw material in home textiles products, hit historically high price levels last winter at exactly the time when orders were being placed for goods hitting retail shelves right now.

The price then subsequently dropped almost as quickly as it rose, indicating to most people that the pricing scenario had a lot more to do with speculation than agriculture. Prices are about half what they were last February, but still nearly twice as high as they were two years ago.

Retail prices, in the meantime, went up a minimum of 10% on most cotton-based products and much higher on others. Cotton’s share of market was reduced as vendors and retailers moved to alternatives, like blends and 100% polyester products.

OK, so now that you’re back from Uranus, you

can pick up the story from here as we get ready for September market week.

Here is what could … and could not happen: 1. Some retailers are going to come in kicking and screaming and wanting price rollbacks to reflect the lower cotton prices. They will want this on the goods now being delivered to their stores.

These retailers will be deemed insane and will be treated as such.

2. Some vendors will try to justify their higher prices by explaining the many nuances and deviations in the worldwide futures market for commodities, bringing in the complexities of international agri-politics and cultural references. These suppliers will be deemed as crooks and will be dealt with harshly by their customers.

3. Many people on both sides of the buying equation will continue to look to polyester as the great emancipator of cotton slavery, claiming the products are every bit as good and the consumer every bit as satisfied with sheets and towels made out of old, dead dinosaurs. These people will be deemed idiots and will be banished from the marketplace.

4. A very few businesspeople will understand that cotton is a volatile crop subject to very real climatic, financial and political factors and that they need to make the best of a situation, knowing that higher prices for products that have sunk to unsustainably low levels is not necessarily the worst thing that could happen to the American home textiles industry. These people will be deemed few and far between and will no doubt look for their first available opportunity to get out of the home textiles business.

And so, the cotton pickings continue HTT

9/9/2011 4:43:15 PM

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*according to official REBNY guidelines

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Home Textiles Today

September 12, 2011

News

Ellery Homestyles Expands its Brands N EW YORK — Expansion is the

name of the game at Ellery Homestyles this month as it readies new introductions for the New York Home Fashions Market.

The Vue bedding collection is being broadened under the Vue Signature name. The line, designed to appeal to a fashion-conscious consumers who favor contemporary motifs for the master bedroom, includes four-piece comforter sets consisting of a comforter, two shams and a bedskirt. A range of decorative accent pillows

feature pleats, embroidery, appliques and chenille embellishments to complete the collection and add interest.

Ta p p i n g i n t o t h e g r ow ing trend in outdoor living, Ellery has expanded its Parasol indoor/outdoor living collection of curtains and coordinating decorative pillows.

Additions include curtains fabricated in textural, woven solids with matching sheers and coordinating pillows. Parasol products are water- and faderesist ant and repel mildew, stain and soil resistant. Cur-

tains use rust-proof grommets.

Curtainfresh soft window treatments, which employ odor-neutralizing technology developed in partnership with Church & Dwight (maker of Arm & Hammer), has been expanded to include four new styles with prints and solids in various lengths plus a wide assortment of printed and embellished kitchen tiers sold as sets and separates. Curtainfresh’s embedded technology neutralizes unpleasant odors from cooking, pets, smoke, must and mold. HTT From Ellery’s Vue bedding collection.

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Steel: GLM Plans to Grow W H I T E P L A I N S , N.Y. — Alan Steel, president of GLM, shared some information about the company’s plans for growth under the new ownership of Providence Equity Partners with HTT sister publication Gifts & Decorative Accessories.

Steel assures us that growth will not come at the expense of what’s already here: none of GLM’s roster of shows will be going away, and there are no plans for personnel changes except, perhaps, for eventual promotions and new hires.

Steel said there were three initiatives already underway, though not in the gift or home industries. These include a previously announced action sports expo in Singapore and an antique, jewelry and watch show in Chicago.

“We have a third launch that will take place in California,” he added. “That one has not yet been announced, but it is in the area of youth culture.”

“As far as plans beyond that,

we’re really at too early a stage,” said Steel. “The first thing we’re going to be doing is getting our feet under the Providence table, so to speak. One of the things we’ll be doing in the first hundred days of ownership is producing a strategic plan for acquisitions.”

As to what those acquisitions might entail, “We would look at anything in the marketplace that we serve. I wouldn’t rule out anything, but it’s too early to say,” Steel said, in response to a question about whether GLM would consider acquiring any of the properties entering the market as the result of Vornado’s decision to refocus MMPI on three core cities.

As for organic growth, Steel says GLM will be looking at both domestic and international markets, and will “look at both tradeshows and the online products we offer and see what kind of expansion there is alongside those products.” HTT

Surya Earns Badcock Furniture’s Highest Vendor Award

Pacific Resource Group Adding Robert Allen/Beacon Hill Showroom P HOENIX — Pacific Resource Group has been selected as the Arizona agent showroom for Robert Allen and Beacon Hills.

The locally owned showroom is located at The Alter Group’s Arizona Design Center in Scottsdale, Ariz.

“We believe this will provide our customers from all over the state with a convenient location to see our products,” said

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Robert Duban, senior vice president of sales for Robert Allen Group.

The Robert Allen Group was previously represented in the Phoenix area at 68th Street and Thomas.

Said Mark Erwin, owner of Pacific Resource Group: “This will significantly increase our capacity to serve the growing design trade.”

Fabric designs by Robert

Allen and Beacon Hill will occupy approximately half of the company’s 3,600-sq.-ft. of showroom. Pacific Resource Group plans to have the line available for local designers on Sept 1. A grand opening will t ake place in early October and a special Fall Market featuring internationally renowned designer Larry Laslo will be followed by a reception at the showroom on Nov. 9. HTT

CHARLESTON , S.C. — Surya was recently honored with the “Most Valued Supplier-Partner” award from regional retail chain Badcock Furniture.

The area rugs and home furnishings supplier received the award during the retailer’s annual conference held here in late August.

Privately-owned The W.S. Badcock Company operates 330 stores across the Southeast.

The company said it hosts this event each year to show all of its new merchandise, celebrate its accomplishments, and engage its employees, franchisees, and suppliers “in a meaningful way as it prepares for the busy fall season.”

More than 500 people attended this year’s conference, and multiple partners were honored for their progressive and value added approach.

“It’s truly an honor to receive this award from Badcock Furniture,” said Satya Tiwari, Surya Inc.’s president. “A primary focus

at Surya is to make sure that our customers, like Badcock, have the most relevant and trend-setting designs so that they can better serve their customers, the general consumer. We design our rugs and home accessories with our customers’ end consumer in mind.”

Surya products have been in Badcock stores for several years.

“Surya has some of the best designed rugs in the industry, but what sets them apart is their solution-based approach to serving the market. Their team gets what superior customer service means,” said Badcock’s rug buyer and fifthgeneration family member, Will Daughtrey II.”As we expand into new markets, like Virginia and North Carolina, it’s imperative that we leverage our strong supplier base.”

For Surya, the award from Badcock represents the second time this year that the supplier is recognized by a retailer -- Rugs Direct named Surya Partner of the Year.

HTT

9/9/2011 1:37:15 PM

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Home Textiles Today

September 12, 2011

COTTON CRISIS II

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Cotton Cools Down Which Raises Even More Questions worst of it, with the cotton spike from last year. Those goods are in our pipeline as we speak.”

NEW YORK — During the frantic months during which TJX ceo Carol Meyrowitz described the recent hiscotton prices were whipsawing on a daily and some- tory in pricing as “crazy,” adding: “[Prices] accelerated times hourly basis, industry members expressed the beyond belief. And now, I think they’re something like hope that pricing simply settle somewhere — what- 50-something percent less than they were when it all so I do not think that there will be a big reduction in ever level that might be. As prices started to hike up. So it’s going to be price at retail as the raw material cost is not back to have begun to do so, a new question very, very interesting.” those extremely low levels,” said Frank Snow, vp of “Price increases in the arises: Now what?

The next 90 days will be critical merchandising at Royale Linens.

Cotton prices were delightfully in determining what happens with It’s also worth noting that while ret ail prices first half have been in low through the early half of 2009, programs in terms of specs and pric- increased, they did not reflect the full magnitude of the mid-single digits running somewhere between 49 to ing for next year, according to Keith higher raw material costs, which were absorbed as and that will continue 52 cents per pound, depending upon Sorgeloos, president and ceo, Home much as possible by manufacturers, noted Nelson in the second half. We the grade.

Source International.

Chow, vp of sales for C & F Enterprises. are working with our That was great for cotton consum“Retailer pricing will be pretty “Many suppliers, including ourselves, absorbed a vendors on that. But ers, but not for cotton farmers, many much locked in through year end significant part of the increase and did not pass the we see that pressure of whom decided to spurn cotton in as it takes suppliers about 90-120 entire cotton price increases to the retailers,” he said. lessening as we talk favor of corn and soybeans, which day lead times to manufacture and “Now that cotton prices are cooling off, it does not about next spring.” were commanding far better prices, run through higher priced cotton mean supplier’s prices are also decreasing in propor—DAVID STOVALL JR, Stein Mart according to Cotton Inc. economist inventory,” he noted. “If cotton tion to the lower cotton prices.”

Jon Devine. Once cotton prices took drops below 90 cents per pound on And cotton pricing isn’t the only cost that shot up off, farmers pivoted again, resulting the spot market and below 80 cents since 2009. in what the US Department of Agriculture expects to per pound in 120-day futures, then it’s a good bet that “The issues are more difficult in fashion bedding be a bumper global cotton harvest this fall. prices will decline as this scenario takes us back to because most comes from China, where cost has not “Last year was certainly extreme,” Devine said. “I December 2009 pricing. Most of the price increases/ come down, although factories are not full over there. think this year will be more [stable], but there will be de-specs were negotiated China has inflation in labor cost and cura little bouncing around.” between January 1 to July rency issues,” said Michael Vidra, presi“Now that cotton prices Loftex USA’s Gretchen Dale, chief operating offi- 1 of this year when cotdent, Next Creations. are cooling off, it does cer, noted pricing on finer yarns remains high. “You ton pricing was running And the sizeable cotton global cotton not mean supplier’s prichave cotton like Pima, Egyptian — the high-quality anywhere from $1.25 to crop that awaits harvest has been plagued by es are also decreasing in cottons — they haven’t moved at all.” $2.00.” weather issues of various sorts, noted Cotton proportion to the lower Higher priced goods began appearing at retail last Arun Agarwaal, ceo of Inc.’s Devine. West Texas, where wildfires spring, but the real hikes (and specification adjust- Alok Industries, said new have been raging for weeks, is the largest cotton prices.” ments) began flowing in a few weeks ago with fall mer- price discussions have cotton-producing area of the United States.

—NELSON CHOW, C & F Enterprise chandise. The industry finds itself grappling with 2012 already started — “but only The wildfires followed a season of uncomcontract pricing even before the full verdict is in from based on when increases monly severe drought for the area. “Cotton consumers about the new pricing grid. were done. There virtually was no business conducted can get by with very little [water], but this year they’re Many retailers expect prices to drop. at peak cotton price, which was $2-plus, so that is a very not getting a drop.”

“Price increases in the first half have been in the mid- theoretical number.”

Add to that the impact of heavy rains in Pakistan and single digits and that will continue in the second half,” He added; “Better goods are being quoted (higher India as well as some rain in China, and the supply may Stein Mart ceo David Stovall Jr. told analysts last month. thread counts), but spec improvement is not a point of turn out to be lighter than originally projected, he said.

“We are working with our vendors on that. But we see conversations yet.”

As this issue of HTT was going to press, the USDA was that pressure lessening as we talk about next spring.”

Fulton Allen, president of 1888 Mills, believes dis- expected to revise its estimate for the fall cotton harvest, Target evp of merchandising Kathryn Tesija last cussions will revolve around what manufacturers offer most likely downward. month predicted higher retail prices will hit their peak at different price points.

If nothing else, many agree, the roller-coaster ride during the third quarter and will begin to ease during “Many of the innovations such as light-weight, of the past 20 months has provided the industry with the fourth. Ross Stores’ vice chairman and ceo Michael quick-dry towels which have found a home will stay for an education about the volatility of raw material pricBulmuth said he expects the company’s prices “will be some time.” He also predicted all-cotton product will ing after a decade of steady deflation. moderated by next spring.” regain ground in bath and bedding. “It will be inter“You can take a poll and ask how many merchants Williams-Sonoma’s Sharon McCollam, evp, direc- esting to see if microfiber sheets were a Band-Aid for knew the price of cotton three years back, and you tor, coo and cfo, said that she “would like to say that the consumer or really can compete with a more tradi- will find literally no one,” said Alok’s Agarwaal. “Now the worst is behind us with commodities down. But tional cotton-rich product a similar price point.” even my housekeeper knows cotton prices are changlabor is up in China ... We do have in our margins the “I saw retailers take price increases very carefully, ing.” HTT

BY JENNIFER MARKS

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9/9/2011 2:27:41 PM

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Home Textiles Today

September 12, 2011

The Hard Truth About a Soft Substance

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evisiting the Cotton Crisis nine months after HTT’s first look at the subject shows some things have changed radically … and some not so much.

In an effort to present some facts about the subject of cotton, HTT once again has produced a timeline showing cotton prices, both in real dollars of the time and in inflation-adjusted prices, going back to 1980.

You don’t need to be a statistician to see what’s happened to the price of cotton. In real dollars, cot-

ton is the most expensive — by far — it’s ever been over this period. However, the current price, around $1 a pound — give or take or couple of bowls — is less than half the price cotton was just six months ago. But even at that level – our time line below only runs through June 2011 and so does not reflect the most recent reductions in prices — cotton is at historical highs versus the past several decades.

It’s when you add on inflation that the pricing picture gets a little more complicated. It does show that in the early 1980s, when adjusted for inflation, cot-

ton was more expensive than it is today, or at its winter-time peak. But just barely.

The take-away from this pricing chart is clear that no matter what the ups and downs of the decades: Cotton remains expensive.

We also repeat two charts from our earlier report: Where cotton comes from and where it goes to endusers.

Put all of this information together and you’ve got the basis for some pretty lively market-week conversations, don’t you think? HTT

Cotton Pricing 1980-2011 That Was Then, This is Now $2.50

Highest historical inflation-adjusted price

The next time you see this chart, the lines will be trending down but for now cotton is as high as an elephant’s eye.

$2.54 in 1980

$2.25

Price* (per pound) Inflation-adjusted price**

$2.00

*Source: National Cotton Council of America “A” Index, calendar year average **Source: Bureau of Labor Statistics Consumer Price Index Inflation Calculator ***Year-to-date, January to June

(per pound) Highest historical actual price

$1.95 in 2011***

$1.75 $1.50 $1.25 $1.00

Lowest historical inflation-adjusted price

$0.45 in 2002

$0.75 $0.50

Lowest historical actual price

$0.25 $0

$0.57 in 2002

1980 1981 1982 1983

1984 1985 1986 1987 1988 1989 1990 1991

Where the Cotton Comes From More than half of the world’s cotton now comes from Asia

4% Uzbekistan

16% Other

Source: U.S. Department of Agriculture, 2010 Estimates

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2006 2007 2008 2009 2010 2011

Where the Cotton Goes Unlike the good old mill days, very little cotton is used in the United States

26% China

7% Brazil 8% Pakistan

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

25% Other 42% China

2% Brazil 23% India 16% U.S.A

4% U.S.A

12% Pakistan

15% India Source: International Cotton Advisory Committee

9/8/2011 6:16:11 PM

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Home Textiles Today

September 12, 2011

Market Basket

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Higher Prices Arrive set dropped from $70 in February to $28 when HTT visited in August. MeanETAILERS WARNED high- while, the retail on its priciest bed-in-bag er prices would be coming in jumped $20 to $79. the fall, and so they have. Six Family Dollar also had a lower priced months after completing the an- total basket in the August set; however, nual Market Basket survey, HTT revisited the Family Dollar store HTT visited had 10 leading retailers in the study to explore neither a queen bed-in-bag nor a queen to what extent pricing had changed since quilt available, so the total basket assortFebruary on key home textiles items that ment was smaller than those of its comtend to be constructpetitors in the ed entirely or mostly survey. of cotton: Queen bedEight of the Looking at the total in-a-bag, queen sheet 10 retailers raised basket – a combination set, queen quilt and a prices on their of the lowest- and highbath towel. opening price est-priced baskets at each In most cases pricpoint baskets, but es were up smartly — only three did so retailer — eight out of the whether for the lowby double digits.

10 raised their prices. est priced items in the Walmart, truncated basket or whose opening for the highest priced price point colgoods. lection in the survey rose 52.2%, hiked Looking at the total basket — a com- pricing on a queen sheet set ($23.96, up bination of the lowest- and highest-priced from $19 in February), and queen bedbaskets at each retailer — eight out of in-a-bag ($48.96 vs. $44), queen quilt the 10 raised their prices. In order, they ($56.88 vs. $20) but lowered the price were: on its OPP bath towel ($1.96, down from • Kohl’s up 60.1%; $3.42 last spring).

• Marshall’s up 36.4%; Kohl’s OPP basket jumped 50.3% , • Walmart up 29.2%; with pricing literally doubled on a queen • Bed Bath & Beyond up 14.7%; bed-in-bag and up 33.3% on a queen • Kmart up 12.1%; quilt.

• JCPenney up 9.2%; Family Dollar, which had only two • Target up 8.2%; of four items available for comparison • Macy’s up 3.5%. in the OPP basket, up was 60%, boostBig Lots trimmed its market basket ing the price of its least expensive queen by 9.3%. Pricing remained even on like sheet set 68% and raising the rag on its items in the lowest priced basket com- basic bath towel by 50%. pared to February. Where it pulled back Macy’s, by comparison, drove down was its top pricing. The biggest shift: re- the pricing on its OPP basket goods tail on its most expensive queen sheet even as it took double-digit price inBY JENNIFER MARKS

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Bed, Bath and Beyond PRICE $34.99 99.99 99.99 4.99 $239.96

MANUFACTURER CONSTRUCTION Springs Cotton Keeco Poly/Cotton Welspun Cotton Revere Mills Cotton +6.6% from $224.96 in February 2011

COUNTRY Thailand China China Pakistan

PRICE $199.99 249.99 169.99 39.99 $659.96

MANUFACTURER CONSTRUCTION Springs Cotton Chenab USA Poly/Cotton Nostalgia Home Fashions Cotton Home Source Intl Cotton +17.9% from $559.96 in February 2011

COUNTRY China China China India

Top Price Point ITEMS Queen sheet set* Queen bed-in-a-bag Queen quilt Bath towel Total Retail

Total Market Basket $899.92

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CHAIN BBB Big Lots Family Dollar JCPenney Kmart Kohl’s Macy’s Marshall’s Target Walmart

AUGUST 2011 $249.99 79.00 21.00 335.00 79.99 209.99 535.00 69.99 99.99 84.76

ITEM FEBRUARY 2011 Bed in a Bag $199.99 Bed in a Bag 70.00 Sheet Set 20.00* Bed in a Bag 335.00 Sheet set/Quilt 69.99 Bed in a Bag 119.99 Quilt 400.00 Sheet set 49.99 Bed in a Bag/Quilt 89.99 Bed in a Bag 74.00

ITEM % CHANGE Sheet set +25.0% Sheet set +12.9 Sheet set +5.0 Bed in a Bag 0.0 Quilt +14.3 Quilt +75.0 Bed in a Bag +33.8 Sheet set +40.0 Quilt +11.1 Bed in a Bag +14.5

*Comparing only items available in February and August

Lowest Prices Swing Everywhere* CHAIN BBB Big Lots Family Dollar JCPenney Kmart Kohl’s Macy’s Marshall’s Target Walmart

AUGUST 2011 $4.99 5.00 3.00 10.00 3.99 3.99 12.00 4.99 4.99 1.97

FEBRUARY 2011 $4.99 3.75 2.50 8.00 1.99 3.99 18.00 3.99 4.99 3.42

% CHANGE 0.0% +33.3 +20.0 +25.0 +100.5 0 -33.3 +25.1 0 -42.4

*Bath towel price comparison

creases in its top-price basket.

The total tag on Macy’s OPP basket fell 36.6%, driven by big price reductions on queen bed-in-bag ($100, down from $400). Macy’s actually raised prices on two items on its OPP basket, with the queen sheet retail up 110% and the queen quilt up 25%. Macy’s lowered the price of its bath towel to $12 from $18.

Target trimmed the pricing on its opening basket by 3.75%, primarily by knocking $30 off the retail on its

queen bed-in-bag. All other retailers took increases in their OPP baskets.

Eight of the 10 retailers in the survey increased prices in their top price baskets, with all but JCPenney doing so by double digits: • Kohl’s up 66.2%; • Family Dollar up 60.0%; • Marshall’s up 50.0%; • Macy’s up 30.0%; • Bed Bath & Beyond up 17.9%; SEE BASKET PAGE 12

Big Lots

Opening Price Point ITEMS Queen sheet set * Queen bed-in-a-bag Queen quilt Bath towel Total Retail

Top Prices Swing Up

+14.7% from $784.92 in February 2011 *only one price point available in this category

Opening Price Point ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt * Bath towel * Total Retail

PRICE $15.00 35.00 27.00 5.00 $82.00

MANUFACTURER CONSTRUCTION Big Lots Polyester Victoria Classics Ltd Polyester Keeco Cotton Revere Mill Cotton +1.5% from $80.75 in February 2011

COUNTRY China China China Pakistan

PRICE $28.00 79.00 27.00 5.00 $139.00

MANUFACTURER CONSTRUCTION WPH Cotton/Poly Big Lots Polyester Keeco Cotton Revere Mill Cotton -14.7% from $163.00 in February 2011

COUNTRY Bahrain USA China Pakistan

Top Price Point ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt * Bath towel * Total Retail

Total Market Basket $221.00

-9.3% from $243.75 in February 2011 *only one price point available in this category

9/8/2011 1:11:54 PM

Market Basket

> hometextilestoday.com

Family Dollar*

JCPenney

Opening Price Point ITEMS Queen sheet set* Queen bed-in-a-bag Queen quilt Bath towel Total Retail

Opening Price Point

PRICE $21.00 NA NA $3.00 $24.00

MANUFACTURER Family Dollar

Family Dollar Cotton +60.0% from $15.00 in February 2011

Pakistan

CONSTRUCTION Cotton

COUNTRY Pakistan

ITEMS PRICE Queen sheet set * $21.00 Queen bed-in-a-bag NA Queen quilt NA Bath towel $5.00 Total Retail $26.00 Total Market Basket $50.00

MANUFACTURER Family Dollar

COUNTRY Pakistan

Top Price Point

Family Dollar Cotton Pakistan -4.0% from $25.00 in February 2011 -25.05% from $40.00 in February 2011 *Comparing only items available in February and August **only one price point available in this category

ITEMS PRICE Queen sheet set $19.99 Queen bed-in-a-bag* 57.99 Queen quilt ** 51.49 Bath towel 3.99 Total Retail $133.46

MANUFACTURER CONSTRUCTION JCPenney Home Cotton/Poly JCPenney Home Cotton/Poly Taoyuan Textiles Co. Cotton Springs Global Cotton +8.0% from $338.00 in February 2011

COUNTRY China China China Brazil

ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt Bath towel Total Retail

PRICE $180.00 335.00 170.00 30.00 $715.00

MANUFACTURER CONSTRUCTION JCPenney (Chris Madden) Cotton JCPenney Home Cotton/Poly JCPenney Home Cotton JCPenney (Liz Claiborne) Cotton +9.8% from $651.00 in February 2011

COUNTRY India China China India

Total Market Basket $1,080.00

+9.2% from $989.00 in February 2011

Opening Price Point MANUFACTURER CONSTRUCTION Kmart Poly Kmart Poly/olefin Kmart Cotton/poly Kmart Cotton +7.7% from $123.96 in February 2011

COUNTRY China China China India

MANUFACTURER CONSTRUCTION Kmart Cotton Kmart Poly/olefin Pem America Poly/cotton Pem America Cotton +14.8% from $202.96 in February 2011

COUNTRY India China China China

Top Price Point

ITEMS Queen sheet set * Queen bed-in-a-bag Queen quilt Bath towel* Total Retail

PRICE $34.99 139.99 119.99 3.99 $298.96

MANUFACTURER CONSTRUCTION Kohl’s Cotton/Poly Kohl’s Cotton/Poly Kohl’s Cotton Kohl’s Cotton +50.3% from $198.96 in February 2011

COUNTRY China China China India

ITEMS PRICE Queen sheet set 109.99 Queen bed-in-a-bag 209.99 Queen quilt 199.99 Bath towel 24.99 Total Retail $544.96 Total Market Basket $843.92

MANUFACTURER CONSTRUCTION Kohl’s Cotton Kohl’s Polyester Kohl’s Cotton Croscill Cotton +66.2% from $327.96 in February 2011 +60.1% from $526.92 in February 2011 *Same price as February 2011

COUNTRY India China China China

MANUFACTURER Imperial Collection

COUNTRY China

Top Price Point

ITEMS PRICE Queen sheet set $79.99 Queen bed-in-a-bag * 57.99 Queen quilt 79.99 Bath towel 14.99 Total Retail $232.96 Total Market Basket $366.42

+12.1% from $326.92 in February 2011 *only one price point available in this category **Five-piece set

Marshall’s*

Macy’s

Opening Price Point

Opening Price Point PRICE $84.00 100.00 200.00 12.00 $396.00

MANUFACTURER CONSTRUCTION Martha Stewart Collection Cotton Victoria Classics Ltd. Poly/Cotton Martha Stewart Collection Cotton Martha Stewart Collection Cotton -36.0% from $618.00 in February 2011

COUNTRY China China China India

ITEMS PRICE Queen sheet set $400.00 Queen bed-in-a-bag 200.00 Queen quilt 535.00 Bath towel 55.00 Total Retail $1190.00

MANUFACTURER CONSTRUCTION Sferra cotton Pem America Inc. poly-cotton Natori cotton The Hotel Collection combed cotton +30.0% from $915.00 in February 2011

COUNTRY Italy China China India

Total Market Basket $1,586.00

+3.5% from $1,533.00 in February 2011

ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt Bath towel Total Retail

PRICE $24.99 NA 29.99 4.99 $59.97

CONSTRUCTION Microfiber

Ivy Hill Home Inc. Poly/Cotton Newton Buying Corp.

Cotton +9.1% from $54.97 in February 2011

China Pakistan

MANUFACTURER Lintex Co.

COUNTRY India

Top Price Point

Top Price Point

ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt Bath towel Total Retail

PRICE $69.99 NA 69.99 9.99 $149.97

Total Market Basket $209.94

CONSTRUCTION Egyptian coton

WestPoint Home Inc. cotton Croscill cotton +50.0% from $99.97 in February 2011

China China

+36.4% from $153.94 in February 2011 *Comparing only items available in February and August

WalMart

Target

Opening Price Point

Opening Price Point PRICE $28.99 49.99 69.99 4.99 $153.96

MANUFACTURER CONSTRUCTION Target Corp.

Cotton/Poly Target Corp.

Cotton/Poly Sunham Bedding Poly fiber Target Corp.

Cotton -3.75% from $159.96 in February 2011

COUNTRY China Mexico China India

PRICE 79.99 99.99 99.99 12.99 $292.96

MANUFACTURER CONSTRUCTION Target Corp.(Fieldcrest) Cotton Target Corp.(Fieldcrest) Cotton Target Corp.

Cotton Target Corp.

Cotton +15.8% from $252.96 in February 2011

COUNTRY India Pakistan China India

ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt * Bath towel Total Retail

PRICE $23.96 48.96 56.88 1.97 $131.77

MANUFACTURER CONSTRUCTION Wal-Mart Cotton Wal-Mart Poly/Cotton Better Homes & Gardens Cotton Wal-Mart Cotton +52.5% from $86.42 in February 2011

COUNTRY Pakistan Pakistan China Pakistan

PRICE $66.88 84.76 56.88 9.00 $217.52

MANUFACTURER CONSTRUCTION Wal-Mart Cotton Wal-Mart Polyester Wal-Mart Cotton Wal-Mart Cotton +18.3% from $183.88 in February 2011

COUNTRY India China China China

Top Price Point

Top Price Point ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt Bath towel Total Retail

PRICE $60.00 160.00 135.00 10.00 $365.00

Kohl’s

Opening Price Point

ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt Bath towel Total Retail

ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt Bath towel Total Retail

Top Price Point CONSTRUCTION Cotton

Kmart

ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt Bath towel Total Retail

11

Home Textiles Today

September 12, 2011

Total Market Basket $446.92

+8.2% from $412.92 in February 2011

ITEMS Queen sheet set Queen bed-in-a-bag Queen quilt * Bath towel Total Retail

Total Market Basket $349.29

+29.2% from $270.30 in February 2011 *only one price point available in this category

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9/8/2011 1:12:36 PM

Market Basket Sheet Construction

Sheet Construction

Top Price Points

Opening Price Points

Poly 10%

Country of Origin

Blend 10% Blend 20% Blend 30%

Cotton 40%

Poly 50%

Cotton 90%

February 2011

Cotton 90%

August 2011

Cotton 30%

February 2011

12

Home Textiles Today

September 12, 2011

Poly 30%

COUNTRY China India Pakistan Other

FEBRUARY 2011 62% 23 12 3*

AUGUST 2011 59% 17 16 8**

*Brazil, United States *Bahrain, Brazil, Italy, Mexico, Thailand, United States

August 2011

Price Points BASKET FROM PAGE 10

• Target up 15.8%; • Kmart up 14.8%; • Walmart up 18.3%.

Looking at the critical deployment of cotton in sheet sets, the survey found little change between February and August in the top price baskets. All-cotton constructions accounted for 90% of sheets among the 10 retailers in both visits. There was a shift, however, from all-poly to poly/cotton blends for the remaining 10%.

In the OPP assortments, however, all-cotton sheets dropped from 40% of the assortment in February to 30%. All-poly constructions made up 50% of the top-tier sheeting last winter, but gave way to blends in the fall set, with 30% of sheets combing poly and cotton and 30% all-poly.

Many retailers have lately been saying the price bulge has peaked. Left unsaid is to what extent they will adjust retail pricing going forward. HTT

Methodology For the September 2011 Market Basket Report, HTT editors visited stores in the metro New York and Miami areas in the month of August. Only items tagged at everyday prices were included in the survey; sales or clearance items were not used.

The following stores were surveyed: Bed, Bath and Beyond, New York City; Big Lots, Copaigue, NY; Family Dollar, Lindenhurst, N.Y.; JCPenney, Jersey City, N.J.; Kmart, New York City; Kohl’s, Massapequa, N.Y.; Macy’s, Miami; Marshalls, Miami; Target, Jersey City, N.J; WalMart, Massapeaqua, N.Y.

htt110901_010_011_012 12

9/8/2011 4:36:36 PM

14

Home Textiles Today

September 12, 2011

News

Strong Attendance at NYIGF WHITE PLAINS, N.Y. — The New York International Gift Fair just wrapped up its latest bi-annual event, which represented its largest ever in attendance and exhibitor participation since summer 2008.

NYIGF described the growth it experienced at its summer 2011 fair — which took place Aug.1318 — as “reflecting a pre-recession level of business activity.” It drew more than 2,800 companies —110 more than in winter 2011 — and attracted a record 35,000 attendees from all 50 states and 80 countries, with especially strong

attendance from Japan, Australia, South America and Canada.

“Anecdot ally, exhibitors reported strong sales and orderwriting,” said Dorothy Belshaw, NYIGF director and GLM senior vp. “Despite negative economic reports, buyers were optimistic, and the resulting energy on the show floor was palpable.”

Added JoAnne Grazzini, of Bed Head, an exhibitor in NYIGF’s personal accessories division: “Both the winter and summer New York show are equally great for me now – this is a recession-proof market. I find the

quality of buyers to be higher at NYIGF, and they place bigger orders here.”

Nearly 450 companies exhibited for the first time at NYIGF in a variety of categories, such as home, tabletop, textiles, housewares, personal care, accessories, children’s products and more.

The Fair’s international representation was bolstered with new groups from Argentina, South Korea, Panama, China, India, Malaysia and Nepal. In total, 46 countries were represented throughout NYIGF’s ten divisions. HTT

Peking Handicraft Taps Designer Valori Wells SAN FRANCISCO — International

manufacturer and wholesaler of home decor, tabletop and giftware items Peking Handicraft Inc. (PHI) has added the new Bloom series by Valori Wells to its rug and pillow offerings.

The series, comprised of two rug and pillow designs, features an oversized flower pattern and

comes in two colorways - cobalt and cocoa.

The wool-and-cotton blend rugs are available in two sizes.

A 4-by-6 has a suggested retail price of $270, and a 3-by-5 $160.

Also made from a wool-andcotton blend construction are coordinating 18-inch-square

Made in Canada

hooked pillows that feature a single large bloom design.

These are set to retail for $48 each.

The new Bloom collection can be seen during the New York Home Fashions Market, which will run Sept. 19-23, at PHI’s showroom in suite 912 at 7 West 34th St. HTT

and around the world

295 5th Avenue Suite 1605 New York (212) 683-3286 (800) 265-3359 www.cambridgetowel.com

htt110901_014 14

> hometextilestoday.com

7 W Touts New Tenants, Expanding Showrooms for September Home Fashions Market N E W YO R K — Home textiles showroom hub 7 W New York is gearing up for the upcoming Home Fashions Market week next month with the debut and expansion of spaces with new and existing tenants.

“Our building houses some of the most impressive brands in home fashion; our mission lies in presenting it to buyers in a convenient one-stop-shopping environment,” said Chris Collins, vp and president of 7 W. “The showrooms excel in offering the very best and most exclusive merchandise which continues to make Home Fashion Market Week on of the premier events on the 7W calendar.”

Companies opening new showrooms at the building, which is located on 34th Street off Seventh Avenue, include: • Nishat Chunian in suite 639. This company offers luxury solid sheeting and top of bed items as well as printed fashion sheets and bedroom coordinates, such as decorative pillows and window treatments.

Their dyes and finishes can be adapted in accordance with customer requirements.

• Kaleen Rugs in suite 820.

The international manufacturer of area rugs offers hand-tufted, hand-knotted, and hand-loomed varieties as well as machinemade styles. At market, the company will introduce two new collections • Astronomy and Bimini • as well as several new Khazana designs.

• Berkshire Blanket in suite 939. The Massachusetts- based company produces innovative throws, blankets, bedding, quilts, comforters, pillows, baby products and gift lines.

• Bolan USA LLC in suite 514. Bolan USA offers a wide range of textiles and accessories.

Tenants expanding their existing 7 W suites in time for market include: • Sam Salem and Son in suite 500. This manufacturer of bedding, linens, throws, baby blankets and promotionallypriced products also has licensing agreements with Harve Benard, Joseph Abboud and Serta among others.

• aaa Bath Fashions LLC in suite 724. This company imports handmade bathroom accessories in brass, resin, ceramic, glass and various other materials, along with bath hardware, racks, canisters and trays.

Some new and returning temporary suites will include: • Charisma in space C102, a longtime brand of bed linens and bath towels.

• Home Textiles Today’s Global Interiors Home Collection Show in spaces 645-647, which is a show-within-a-show that features five manufacturers from around the globe presenting their products.

• Inovatex in 725, for branded bedding products including sheets, comforters, blankets, duvets, pillows, mattress pads and toppers, pillow protectors, and mattress covers.

• NuSteel by Tatara in 721, offering bath collections, accessories, barware and housewares in many interesting materials such as stainless steel, brass, iron, copper, zinc, resin, aluminum, glass, stone, ceramic and melamine.

• CMN in 1021, an Indiabased purveyor of original home furnishings and accoutrements.

Complete and continuallyupdated information about 7 W New York can be accessed online at www.7wnewyork. com or on Facebook and Twitter. HTT

9/8/2011 1:39:57 PM

16

Home Textiles Today

September 12, 2011

News

> hometextilestoday.com

Soft-Tex Adding Williamsburg, Avanti to Unveil New Bath, Kitchen 40,000 Square Feet to Factory and Table Linens Program WATERFORD, N.Y. — Utility bed-

W I L L I A M S B U R G , VA . — Wil-

liamsburg and new licensee Avanti Linens are set to launch their new collaborative program of bath towels, kitchen textiles and table linens at the upcoming New York Home Fashions Market this month.

Williamsburg said Avanti’s “powerful design expertise and rich contemporary aesthetic paired with an understanding of Williamsburg’s roots” have led to

the development of 11 new patterns.

Avanti’s designers drew inspiration from Williamsburg’s product lines from Pratt & Lambert and new designs from Royal Heritage Home.

The product assortment includes: shower curtains, accessories and bathmats for the bath; napkins, pot holders, kitchen towels and window curtains for the kitchen category; and tablecloths,

placemats, runners and napkins in table linens.

“Avanti has incorporated a variety of colors on trend for today, from creamy yellow with pops of chartreuse, to warm coral and orange, to gray-blues and rich browns,” Williamsburg noted.

“Whether floral, damask or ikat, a resist, embroidery or chintz, Avanti’s new Williamsburg products are diverse and well suited for contemporary homes.” HTT

Raymond Waites Design Revamps Image with New Initiatives N E W YO R K — The Raymond

Waites Design company has announced some new efforts it is currently implementing to revamp its image.

These “major steps,” said St acey Test a, svp of design, include: • A completely new website at www.raymondwaites.com, which now features “an updated vintage home aesthetic,” Testa said, as well scenes of the studio, all of the designer’s licensees with product imagery, and

“some fun interactivity.”

• The launch of the company’s Facebook and Twitter accounts and presences. This will enable Raymond Waites Design to communicate and broadcast “to the whole world” any new designs, marketing efforts, and promotional activity by the company and/or its licensing partners. Currently, there are two Facebook pages Raymond Waites and Raymond Waites Design — and both are being tested “to see which is

the best approach for us,” Testa said.

• The release of a special advertisement in the Aug. 21 New York Times Style Magazine. “This advertisement featured images of all the product we design for our licensees.

It also showcased our new image, logo and website,” Testa explained.

“We are very excited by our updated image and our future of social networking,” she summed. HTT

Indo Count Global to Debut New top-of-bed Category Collection at Fall Market NEW YORK — Indian sheet man-

ufacturing company Indo Count Global is set to launch a new topof-bed collection this September during the Home Fashions market here.

Indo Count Global (ICG) is said to be India’s third largest sheet manufacturer. The company said it looked to its “core fabric-engineering strengths and master sewing skills to develop a new line of top of the bed products.”

htt110901_016 16

The newly introduced bed ensembles, dubbed Colorsense, are designed to offer an easy-tounderstand, mix-and-match look with lots of layering options.

“We have developed quite a few new top of the bed fabrics specifically to work back to our newest sheet innovations” said Mohit Jain, ICG’s promoter. “Consumers seem to respond to our sheets because of the way they look, feel, and perform, so we felt it would make sense to grow the number

of offerings in this area to include top of the bed.”

In addition to these, ICG will also bring to market its entire, indepth sheet line, which the company said demonstrates its “wide abilities in weaving, finishing, and high tech performance features.”

The Colorsense launch will take place at ICG’s showroom in suite 1019 at 295 Fifth Avenue, during market week - Sept. 19 to 23. HTT

ding manufacturer Soft-Tex is expanding its production facility here by 40,000 square feet.

“Customer demand remains strong and we want to ensure we are able to meet future needs,” said Arthur Perry, president.

The additional space will be used as Soft-Tex’s main distribution and sort point. The company has been working with a recycling group to recycle 9095% of its waste.

“We have always been driven

to use an eco-friendly manufacture process, and this cooperation will complete the cycle for us,” said Perry.

In June the company added an office in Shanghai to assist in its import operations. It has also opened a new distribution facility on the west coast. U.S. sales and marketing staffs have also been expanded, the company said.

Soft-Tex brands include Therapedic, Natures Rest, Sona, Health Guard, and Sensorpedic Memory Foam. HTT

Domay Secures New Permanent Showroom in NYC M ONTREAL — Domay Inc. has moved into a new showroom located at 230 Fifth Avenue in Suite 308.

For the upcoming New York Home Fashions Market, the space will feature Domay’s collection of branded programming, including Gourmet Pro, Hotel by Domay, Hotel Spa, Enviro and exclusive licensed art “Our customers, which include many national retailers, appreciate that we’ve been running lean these past years and

didn’t need a fancy showroom to do business with them,” said Jeffrey Bernstein, Domay’s vp.

He described the new showroom as “beautiful but still modest, reflective of our company mantra.”

Bernstein said Domay’s licensed art continues to be an important driver of the business. During market, Domay will unveil a large variety of new licensed programs targeted to mid to upper level retailers.

HTT

Kaleen Moves into New Space at 7 W DALTON, GA. — Area rug manufacturer Kaleen is gearing up for the opening of its new permanent showroom this month in time for the New York Home Fashions Market.

The new space is in suite 820 at showroom hub 7 West 34th St., off Fifth Avenue.

The Indian company produces hand-tufted, hand-knotted, and hand-loomed varieties as well as machine-made styles of rugs. At market, Kaleen is set to launch two new collections Astronomy and Bimini — as well as several new Khazana and Hana Charcoal designs. HTT

UF&D Showroom Relocates N E W YO R K — Following its merger with Pacific Coast Feather earlier this year, UF&D’s Manhattan showroom will relocate into the PCF showroom ahead of this month’s New York

Home Fashions Market Week.

The showroom is at 1071 Avenue of the Americas (the same building UF&D had its old showroom) on the third floor. HTT

9/7/2011 3:05:43 PM

Welcome to Northwest and Welcome to New York The Northwest Company has a brand new market showroom, a great story to tell and some terrific restaurant picks for you this market

sposored by

2 FEATURE | Welcome to Northwest and Welcome to New York

Appealing to the passionate fan The Northwest Company aims to be a one-stop force at retail For The Northwest Company, a business strategy focused on providing exciting products for the passionate fan – of sports or entertainment franchises – is paying off.

T

he long-time leader in the decorative throw category with an impressive array of sports and entertainment partnerships with powerhouses like the NFL, MLB, Disney and Nickelodeon is building on that licensing expertise to become a one-stop resource for retailers.

“We thoroughly understand the licensing business,” said Ross Auerbach, president of the 26-year-old company. “The right license at the right time can be a force at retail, and we’re proud of our ability to partner with top-notch licensors, and to deliver programs with depth and breadth at retail.”

The company’s success in the throw business is serving as a launching pad as it takes aim at other textile categories, such as sports bedding. “My father always told me when we started the business: ‘Become the best

at something first, before trying to do other things.’ This has been one of our company’s credos,” Auerbach said.

The Northwest Company, which does big business across multiple distribution channels in the home textiles business, is focused on growing its food and drug business as well as its Internet retail business.

“Early on we adopted a philosophy that, although sell-in is important, sell-through is more important, said Auerbach. “It is for this reason that we have developed incredibly strong partnerships with all of our retail accounts.”

The proof is in the numbers: According to Stanley Mieszkowski, executive vice president of sales and marketing, 2010 sales were over $105 million and the company expects to grow sales by 10% for 2011.

Driving that growth is innovation, said Mieszkowski. “We’re constantly innovating new products.” The company entered the drinkware category with its sport licensors in January and continually adds to its roster of textile products.

New in stores for the fourth quarter will be a juvenile body pillow with a coordinating throw, featuring images licensed from Disney, Nickelodeon and the NFL. The product folds in such a way that the character image can be seen at point of purchase. Children can also pack their pajamas inside, making it “great for a sleepover,” said Mieszkowski.

“Although the micro raschel throw continues to be the number one selling construction in our assortment, Northwest continues to introduce new constructions like the sherpa/micro or the sherpa/sherpa to differentiate our customer assortments,” Mieszkowski said.

He said that the company’s Comfy Throw – a throw with sleeves and full-panel art – continues to get a great deal of attention at

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Welcome to Northwest and Welcome to New York | FEATURE 3 A

retailers like Kmart, Hot Topic and Transworld.

The juvenile comfy throw enables children to dress up like superheroes or princesses.

While mass is where the company has the best distribution and very good market share, the company’s products can also be found at specialty, mid-tier, sporting goods stores, catalogs, internet retailers and food and drug chains. The latter two are growing channels for Northwest.

“Today we’re focusing on our Internet growth,” Mieszkowski said. Some of their dotcom customers are benefiting from Northwest’s new computer system that helps them drop ship products. “We have invested serious money into this system to accelerate growth.”

To increase its food and drug chain business, the company is focusing on its display packaging and boosting point of purchase selfsales.

Growth is the reason Northwest is moving into a new showroom at 261 Fifth Avenue for market in September. The company needed a bigger space to display its new product

B

C

D The World of Northwest A. 16 oz Freezer Crystal Mug B. Toy Story Comfy Throw C. Sports Bedding D. Princess Body Pillow and Throw Set

4 FEATURE | Welcome to Northwest and Welcome to New York categories. The new showroom is about 40 percent bigger than the old showroom at 295 Fifth Avenue.

Northwest also has a new showroom at its office dedicated to Walmart in Bentonville, Arkansas.

“The Northwest Company has always invested heavily in our showrooms and the presentation of our products. It is important for our licensing partners to understand that their brands are important to us, and for our customers to be impressed with all of our offerings,” Mieszkowski said.

Mieszkowski said launching new businesses like drinkware and expanding its product categories “makes us more desirable” to retailers.

“We become a one-stop shop. And retailers get our licensing expertise. We’re shipping the right team to the right market. And with sports, newness sells.”

Shipping the right product to the right market is one of the key factors that makes The Northwest Company such an attractive partner for the NFL, said Leo Kane, vice president consumer products at the NFL. Northwest has the “inventory to supply a hot product in a hot market,” said Kane, who called the company “very aggressive” about supporting the NFL’s markets. Their wide range of distribution is important, he said, “when you have 180 million fans that shop at all distribution channels.”

The Northwest Company’s retail relationships are an asset to licensing partners.

“Clearly they have great distribution, like Bed Bath & Beyond, sporting goods stores, JC Penney and Walmart,” said Kane, naming some retailers. And while the NFL has product at many retailers, with Northwest they were able to boost distribution at places like Bed Bath and Toys’R’Us, he said.

And thanks to their successful partnership, Kane said, “every year we do more business with them. In the last 10 years their business has tripled with us.”

us.” Significantly, to a sports organization like the NFL, at Northwest, they get it, meaning they understand a sports fan’s passion.

“In the NFL, our fans get excited about their teams,” Kane said. The Northwest innovative designs help fans display their enthusiasm for their teams, he said. And this meeting of the minds is most evident in the ultimate sports fan event, the Superbowl.

“We anxiously await Northwest’s Superbowl interpretations each year. We think they do a great job understanding what the Superbowl is all about. Their Superbowl products are the

Growth is the reason Northwest is moving into a new showroom at 261 Fifth Avenue for market in September.

Licensing partners praised Northwest’s design team’s ability to connect with consumers.

“Northwest, like other industry leaders, sets the bar in quality, value, and innovation,” said Stephen Teglas, vice president and general manager for fashion and home at Disney.

“We have a strong collaboration between our product design teams, meeting frequently and open to new ideas and exploration. Quality and storytelling are at the top of our list at Disney.

The Disney guest expects nothing less from

best products they do,” Kane said. “Ross takes a personal interest in design of their product.”

It helps that Auerbach is a die-hard New York Giants fan. In fact, most of the company’s staffers are big sports fans. Mieszkowski estimated, a bit tongue-in-cheek, that 95% are sports fans.

“It also helps to be a kid at heart to work here, since you are also surrounded with wonderful entertainment characters,” Mieszkowski said.

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Welcome to Northwest and Welcome to New York | FEATURE 5

Just the facts Founded in 1985 by the late Shay

Awards: “Best Sports & Sports-Themed

Auerbach

Entertainment Brand Licensed – Soft

Led by Ross Auerbach, president 2010 sales topped $105 million Products: decorative throws, blankets, comfy throws, decorative pillows, bedding sets (comforter, sheets, pillowcases), shams, rugs, bath towels, bathroom accessories, beach towels and beach accessories, drinkware, room décor, pet products, auto accessories, seasonal items and travel accessories

Goods” from the International Licensing Industry Merchandisers’ Association (LIMA) for its 2009 Collegiate Licensing Company program; Walmart “vendor of the quarter;” Small Business Commerce Association’s Best of Business Award in 2009; for the past six years in

Major retail partners: Walmart,

the throw

Target, Kmart and Bed Bath & Beyond

category

Major sports licenses: Major League Baseball, National Hockey League, National Basketball Association, National Football League, NASCAR, Major League Soccer, Collegiate Licensing Company and numerous

B

and ranked #1

in Home Textiles Today’s Annual Compilation of Industry Leaders.

schools and universities.

Entertainment licenses: Disney, Nickelodeon, Warner Bros., Mattel, Hasbro, Harley-Davidson, Dreamworks, Sanrio, Sony and many more.

A

C The World of Northwest A. Superman Comfy Throw B. Cowboys Throw C. NFL Drinkware

6 RESTAURANT REVIEWS | Welcome to Northwest and Welcome to New York

Thoughts For Food

Home textiles people do not live by Northwest blankets and throws alone, so when you’re in New York City for market week and looking for some place for lunch or dinner, your friends at The Northwest Company offer up the following suggestions.

We present some choices within walking distance of our new showroom at 261 Fifth Avenue first and then cast a wider net for a few great picks worth a cab ride away. We’ve skipped some of the better known choices because Zagat seems to have that ground covered, but these are among our favorite places representing the full spectrum from cheeseburgers to haute cuisine.

Bon appétit.

Close to the Market: A Voce 41 Madison Ave. 212-545-8555 Avocerestaurant.com The wonderful pastas, amazing fresh fish and incredible vegetables are just part of the appeal of this place, which looks like it took a page out of Mad Men with its décor. If it’s a nice evening, pick a table outside. Our secret favorite is the ricotta di bufula appetizer, served with the most amazing thick, lightly toasted bread this side of an Italian bakery.

Artisanal 2 Park Ave. 212-725-8585 Artisanalbistro.com The word dignified seems

to come to mind instantly when you walk into this long-running hit just a few blocks from the market action. Cheeses are the featured item on the menu in all shapes, sizes and configurations, but there are great fresh seafood platters, salads and a traditional French brasserie menu, all served in a room where you don’t necessarily have to hear your neighbors’ conversations.

Barbes 21 E. 36th St. 212-684-0215 Barbesrestaurantnyc.com A few blocks away from the market, but this little neighborhood FrenchMoroccan place is a real find. We’re hesitant to even tell you about it, but

we do believe in sharing with friends. That’s what you’ll want to do with some of the menu choices, including the tangines and lamb entrees. And there’s couscous like mom never made. It’s dark and cozy inside, just the spot for an intimate dinner for two… or more.

Duo 72 Madison Ave. 212-686-7272 Duonewyork.com This location may have had its share of tenants over the years – anyone remember Mad 28 or Oleana? – but it seems to have found a special resident these days. Duo is hard to describe because it’s as much club as it is restaurant, but it plays

each of those roles with a certain panache. A visual eyeful to take in on the décor front, Duo’s iPad-like menu is an experience in ordering. Don’t forget to check out the artwork on the walls.

Eataly 200 Fifth Ave. 212-229-2560 Eataly.com This isn’t so much a restaurant as it is a total food immersion. A huge sprawling complex of Italian food markets, wine and cheese bars, housewares and book stores and sit-down restaurants, Eataly needs to be experienced in person to be truly appreciated. And you will appreciate virtually anything you put into your

mouth, much of it from celebrity chef Mario Batali.

Our suggestion: Scope out the dinner choices first, get your reservation in and then take a walk around the place while you wait your turn. It will all be worth it, trust us.

I Trulli 122 E. 27th St. 212-481-7372 Itrulli.com Italian restaurants come and go all the time in Manhattan, but I Trulli isn’t going anywhere. It better not. It consistently ranks as one of our favorite choices for pasta, fresh fish and an amazing wine list, none of which you can find at most other Italian places around town. The entrees are wonderful but we always

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Welcome to Northwest and Welcome to New York | RESTAURANT REVIEWS 7

end up with one of the homemade Pugliese-style pastas. If it’s a nice night, make sure you sit in the enclosed garden out back.

John Dory Oyster Bar 1196 Broadway 212-792-9000 Thejohndory.com Who says seafood places need to be over-priced fancy establishments? Not John Dory, a new casual spot on the ground floor of the very trendy Ace Hotel.

You sit at high-top tables and order lots of small plates, from fresh oysters to exotic appetizers to some outstanding crustacean offerings. The scene is very hip, very informal and very tough to get into at dinner, so it’s a good choice for lunch most days.

SD26 19 E. 26th St 212-265-5959 Sd26ny.com There’s a new kid in the Madison Square Park ‘hood and it’s this lovely spot, brought downtown – in look, prices and attitude – from a previous incarnation on Central Park South. An incredibly stylish dining room, complete with open kitchen, sets the stage for a menu that’s most certainly Italian, from the freshly sliced meats and cheeses to pastas and more. Insider tip for lunch: A simple, yet delicious buffet in the upfront lounge is a great choice for an informal midday meal and at $14.99 it may be the best value in the City.

Wolfgang’s 4 Park Avenue 212-889-3369 Wolfgangssteakhouse.com There are great steaks and then there are great places for great steak. Wolfgang’s fits that bill to a T: A T-bone to be exact. The porterhouse is the steak to get and don’t forget the German potatoes, creamed spinach and slices of bacon, tomatoes and onions… though not necessarily in that order. Leave room for dessert, always with some schlag – that’s German for really decadent, really fattening whipped cream.

And it’s all served up in a historic tiled room that used to be the entrance to the New York Central Railroad Station. Very noisy, but very delicious.

Worth The Ride Away Corner Bistro 331 W. 4th St. 212-242-9502 Before cheeseburgers became trendy high cuisine, with prices to match, there was this hole-in-the-wall West Village corner place. It’s nothing to look at and chances are you’ll have a wait, but it’s hard to find a better burger anywhere in the city. The plates are paper, the forks plastic but the beer is icy cold

and the burgers are…well, we’re getting hungry just thinking about them.

pay handsomely for the privilege, but a privilege it will be.

El Parador Café 325 E. 34th St. 212-679-6812 Elparadorcafe.com Forgive us for not sending you to one of the newer, trendier Mexican places in town, but we’ll always have a soft spot for El Parador, which has been serving up classic –and quite tasty – fare since before many of us were born. You won’t be knocked out by the décor, but the service and cuisine will do the trick for you and it’s one of those local hidden secrets that you can tell everyone you discovered.

Veritas 43 E. 20th St. 212-353-3700 Veritas-nyc.com Newly reopened just a few months ago, home textiles legend Park B. Smith’s veritable restaurant is as good as ever. The intimate room is divine, the food delectable and the wine… well, it may be the finest wine list this side of the south of France. The prix fix menu is pretty pricey, so save this for a special occasion, but any evening at Veritas is special indeed.

And that’s the truth.

Eleven Madison Park 11 Madison Ave. 212-889-0905 Elevenmadisonpark.com Walkable on a nice evening, this may be the most civilized restaurant in the city. Housed in a former bank office, it’s an elegant room with widely spaced tables and perfect service. But then there’s the food. If you’re looking for a menu, you won’t find a traditional one here: There are suggestions on food ingredients and possible preparations, but basically anything is possible at Eleven Madison Park. You’ll

Yakitori Totto 251 W. 55th St. 212-245-4555 Torysync.com For anyone who thinks Japanese food starts and ends with sushi, there is this second-floor spot that specializes in broiled chicken, vegetables and other assorted items that make you feel like you’re just off the Ginza in Tokyo.

It’s always crowded, but it moves fast and the trick is to order lots of different skewers of things, which makes it great for a group.

Don’t be afraid to try chicken parts that never make it on to the Colonel’s menu.

Northwest_Buyers_Guide.indd 1

8/31/2011 5:37:11 PM

The Big Party Is Moving to a New Location

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HTT Sept2011 Market party ad.indd 1

9/1/11 2:08 PM

26

Home Textiles Today

September 12, 2011

> hometextilestoday.com

PEOPLETodaY Safavieh Promotes Varjabedian to director of international sales P O R T W A S H I N G T O N , N.Y. —

Upscale area rug house Safavieh has promoted Yervant Varjabedian to the newly created position of director of international sales.

A fourth-generation rug industry veteran, Varjabedian has been with Safavieh for the past 12 years, serving over this time in various sales management capacities.

In his new stint, he Cyrus Yaraghi. “With will continue to overthe addition of each see key and long-standdesigner to the Safaing national accounts. vieh Couture program, “Varjabedian had overseas demand has been proactive in increased. But response developing internato the introduction of YERVANT tional business for Ralph Lauren Home in VARJABEDIAN Safavieh’s designer January 2011 was overSafavieh lines since the launch whelming and requires of Thomas O’Brien in a structured interna2005,” said company principal tional sales program.” HTT

SnapRetail’s Dikos Moves up Sales Ranks PITTSBURGH —Technology mar-

keting company SnapRetail has promoted Tara Dikos to vp of sales.

SnapRet ail, which works with independent retailers to grow their sales and profits via social and other digital marketing, credited Dikos with implementing a lead referral program that enabled many of the company’s sales partners and territory managers to widely promote its “TrafficBuilder” to retailers.

Additionally, Dikos has enabled sales representatives to use the company’s software to advance their own business, “resulting in rapid adoption in the industry as well as industry accolades. And she has led SnapRetail’s strong showroom presence at physical markets

which have contributed double what was expected in terms of new subscribers,” the company noted.

Added Ted Teele, ceo: “Tara’s promotion is in line with our strategy for growth, including ambitious plans to add thousands of retailers to our customer base and grow our vendor base by 50% over the next year.

Since she joined the company early last year, Tara has done a terrific job with our show management and sales partner relationships and we are confident that she will excel in her new responsibilities.”

In her new role, Dikos will work closely with Teele and Tyler Johnston, vp of business development, and will be responsible for supporting the compa-

ny’s growth of retailer customers through SnapRetail’s network of sales and vendor partners. She will also be responsible for vendor relationships, including managing the company’s vendor sponsorship program and vendor content acquisition. Dikos also will be a member of the company’s executive management team, and in that capacity, help to determine SnapRetail’s strategy, priorities, and tactics.

Prior to joining SnapRetail, Dikos co-created The POWER Group (Proud Outst anding Women Energizing Retail), a sales agency in the wholesale gift and home Industry covering the Mid-Atlantic region. She also served as a consultant for various Colorado start-up companies. HTT

Revere Mills’ Vanden Berge Announces Retirement D ES PLAINES , ILL . — John Van-

den Berge has retired after more than 16 years with bath and beach towel and kitchen towel manufacturer and supplier Revere Mills International Group Inc. His retirement was effective Aug 1.

htt110901_026 26

During his tenure, Berge, ceo, was credited with being “instrumental in developing Revere Mills into a premiere towel supplier to the North American market,” the company said. “His knowledge and integrity was recognized throughout the entire industry. He will remain involved

as a consultant for the company focusing on bringing innovative products to the marketplace.”

Vanden Berge began his career on the retail management side of the business.

The company told HTT that it has not yet named a successor.

HTT

Mike Walsh Joins J.Queen N E W YO R K — J.Queen New York has added industry veteran Mike Walsh to its team of sales executives.

He joins the company as account executive covering customer accounts, including department and specialty stores in the Midwest and on the West Coast. Walsh will be based out of J.Queen’s new office location in Chicago and will be on

hand at the company’s Manhattan showroom during the New York Home Fashions Market this month.

Don Whittam, evp of merchandising, said: “With Mike‘s anticipated contributions, J.Queen New York will continue its robust sales growth track as we approach the September market and make plans for 2012.” HTT

Senegal Stepping Down at Costco ISSAQUAH , WASH. — Longtime Costco Wholesale Club executive Jim Senegal will exit the post of ceo at the end of the year.

President and chief operating officer Craig Jelinek will become president and ceo effective Jan. 1, 2012. Jelinek has been with Costco for 28 years, beginning as a warehouse manager and working in several areas of the retailer’s merchandise and business operations since then.

“Costco has a very strong

culture and a deep bench of management talent,” said Senegal. “I have total confidence in Craig’s ability to handle his new responsibilities and feel we are fortunate as a company to have an executive of his caliber to succeed me as chief executive of Costco.”

Senegal will serve in an advisory capacity through January 2013 and will continue to serve on the board of directors. He plans to stand for reelectionto the board at the January 2012 annual meeting. HTT

HFPA’s YoPros Gear up for Market Jam in September NEW YORK — The Home Fashion Products Association’s Young Professionals, or YoPros, will be hosting their Market Jam event here during the upcoming biannual New York Home Fashions week in September.

Set for Sept. 20, the HFPA/ YoPros Market Jam event is scheduled to kick off at 9 p.m. and run through midnight at Legends, located at 6 East 33rd Street off Fifth Avenue. There will be live music and special guests.

Admission is $20, and all of the proceeds will benefit the

organization’s scholarship fund.

The HFPA, founded in 1968, serves to advance the growth of the global home fashion industry by setting standards for excellence through technical product compliance, advocacy, and awareness efforts. Its HFPA Foundation supports students of home fashion surface design and marketing, and has awarded multiple annual scholarships since 1996.

For more det ails , contact Denise Matlack at (310) 503-9805 or via email at MatlacDM@LouBed.com. HTT

9/7/2011 3:52:59 PM

January 11 – 14, 2012 Frankfurt, Germany

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28

Home Textiles Today

> hometextilestoday.com

September 12, 2011

BUSINESS TodaY Mixed Comp Results Among Key Retailers in August would have been approximately 1.5 percentage points higher if not for the store closings and reduced customer traffic caused by the hurricane,” said Terry Lundgren, chairman, president and ceo.

“Sales on Sunday, the first day of the September reporting period, also were impacted

BY CECILE B. CORRAL N EW YORK — Hurricane Irene

took part of the blame for some of the comp declines a handful of major retailers reported in August, but was credited by others — particularly the wholesale clubs — for driving up sales late in the month.

The back-to-school season, which got off to a slightly later start than in the prior year, also impacted results in some categories during the four-week period BJ’s Wholesale Club lead HTT’s list of 13 key retailers with a 7.9% increase in comp club sales. The Northeastern regional chain experienced sales increases throughout the month but saw its strongest gain in the last week from hurricane-related sales. Sales of food grew by about 10; sales of general mer-

WINNERS AND LOSERS Same-store sales % change

WINNERS BJ’s Wholesale Club Coscto Wholesale Corp.

Macy’s Inc. Target Corp.

Dillard’s Inc. Ross Stores

7.9% 6.0% 5.0% 4.1% 4.0% 4.0%

LOSERS Stein Mart Inc. The Bon-Ton Stores JCPenney Co. Kohl’s Corp.

10.0%

(7.5%) (4.7%) (1.9%) (1.9%)

4.6%

8.5%

2011 year-over-year

7.0% 5.5% 4.0% 2.5% 1.0% -0.5% -2.0%

August Same-Store Sales Johnson Redbook Index

-3.5%

AUGUST SALES FOR KEY RETAILERS Four weeks ended August 27, 2011 (dollar amounts in millions) a 2011 SALES

BJ’s Wholesale Club b The Bon-Ton Stores Inc. Costco Wholesale Corp. (d) (e) Dillard’s Inc. Duckwall-ALCO Stores Inc. Fred’s Inc. J. C. Penney Company Inc. Kohl’s Corp.

Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp.

The TJX Companies Inc.

$901.6 $177.1 $6,900.0 $441.7 $33.5 $137.8 $1,374.0 $1,414.0 $1,716.0 $659.0 $73.9 $5,292.0 $1,720.0

2010 SALES

TOTAL % CHG.

$784.8 $187.2 $5,900.0 $426.8 $32.5 $134.3 $1,439.0 $1,416.0 $1,636.0 $608.0 $80.9 $5,023.0 $1,650.0

14.9 (5.4) 17.0 3.0 3.1 3.0 (4.5) (0.1) 4.9 8.0 (8.7) 5.4 4.0

SAME-STORE % CHG.

7.9 (4.7) 6.0 4.0 2.2 3.6 (1.9) (1.9) 5.0 4.0 (7.5) 4.1 1.0

30 WEEKS 2011 SALES

BJ’s Wholesale Club c The Bon-Ton Stores Inc. Costco Wholesale Corp. (f) Dillard’s Inc. Duckwall-ALCO Stores Inc. Fred’s Inc. J. C. Penney Company Inc. Kohl’s Corp.

Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp.

The TJX Companies Inc.

$6,655.5 $1,422.5 $80,180.0 $3,327.1 $269.7 $1,076.0 $9,223.0 $9,824.0 $13,544.0 $4,823.0 $647.6 $36,766.0 $12,400.0

a. Reporting periods vary from chain to chain. b. These comp results exclude the positive impact of gasoline.

Including a contribution from sales of gasoline, merchandise comps increased in the month by 11.5%. c. These comp results exclude the positive impact from sales of gasoline. Including a contribution from gas sales, merchandise comps increased year to date by 3.7%. d. Total sales results in August include sales from the company’s Mexico joint venture; without those sales, the increase year to date was 14.0% e. These comp results are for the U.S. division and do not include Costco’s Mexico operations or the positive impacts of inflation in

2010 SALES

TOTAL % CHG.

$5,990.2 $1,457.1 $70.4 $3,217.3 $253.7 $1,055.0 $9,306.0 $9,551.0 $12,747.0 $4,455.0 $657.9 $35,307.0 $11,700.0

11.1 (2.4) 14.0 3.0 6.3 2.0 (0.9) 2.9 6.3 8.0 (1.6) 4.1 6.0

SAME-STORE % CHG.

3.7 (1.8) 5.0 4.0 4.9 0.6 2.0 1.1 5.8 4.0 (0.7) 3.1 3.0

gasoline prices and strengthening foreign currencies. Including those impacts, comps for the month were up 9.0% in the U.S. division, 18.0% in the international division, and 11.0% for the total company. f. Because it is on a different fiscal calendar than the other key retailers on this list, Costco’s year-to-date sales and comp results reflect the past 52-week period, or full year. Comp results for fiscal 2011 here are for the U.S. division and do not include Costco’s Mexico oprations or the positive impact of inflation in gasoline and strengthening foreign currencies. Including those impacts, comps were up 7.0% in the U.S., 16.0% in the international division, and 10.0% for the total company.

-5.0% AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG Source: Johnson Redbook Retail Sales Average, a unit of Instinet, a Reuters company.

chandise increased by 4%.

BJ’s closest competitor, Costco Wholesale Corp. had the second best comps in August, up 6.0%.

Macy’s generated a 5.0% comp gain - despite closing more than 100 of stores temporarily because of the hurricane, including some of the largestvolume locations in the company.

“We estimate that samestore sales for the month of August, which ended on Saturday,

htt110901_028_030 28

by about 130 hurricane-related store closings,” he added. “Our business over the past three days has been strong, and we have rescheduled our Shop For A Cause event to this coming Saturday in disrupted markets.

Thus, we expect the hurricane’s effect on sales will be substantially offset as we move through September and the third quarter.”

Stein Mart — which posted the largest comp dip in HTT’s roster for the month, down 7.5%

— said Hurricane Irene for disrupted the retailer’s largest promotional event of the month.

The company tested a new media mix supporting the event, “which was not as effective in generating customer traffic and sales during the promotion compared to the prior year.”

Bon-Ton Stores, too, said it took a hurricane hit. But the regional department store did not specify how much of its 4.7% comp decline was the result of the storm.

“We believe there was a negative impact on our eastern

stores from Hurricane Irene, however, it is difficult to quantify the lost sales caused by the disruption to our customers’ shopping patterns,” said Tony Buccina, vice chairman and president - merchandising.

He said the start of the backto-school season began slowly, with related apparel categories below last year’s sales. “We begin September with inventories well positioned in support of merchandise initiatives we believe will drive top line sales in the second half,” said Buccina.

JCPenney and Kohl’s also reported comp declines in the month.

JCP said its sales during the last week of August were negatively impacted by by Hurricane Irene. Comps fell 1.9%.

Kohl’s said its 1.5% samestore sales slip was driven by lower customer traffic. “We are aggressively increasing our marketing as well as sharpening our pricing focus for the remainder of the fall season to reverse this trend,” said Kevin Mansell, chairman, president and ceo.

HTT

9/7/2011 3:55:10 PM

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30

Home Textiles Today

September 12, 2011

Business

> hometextilestoday.com

Quarterly Results Vary for Retailers reports from retailers brought mixed news about consumer sentiment.

Home was a star at some chains and continued to pose problems for others.

ly, for the second quarter of 2010.

• Net loss widened to $8 million from a net loss of $7 million.

• Sales up 3.2% to $197.9 million.

• Comps up 2.8.

the start of the back-to-school season, said president and ceo Jeff Gordman.

• Net income down 12% to $2.9 million.

• Sales up 3.4% to $117.0 million.

• Comps up 0.4%.

Belk Department Stores

Dollar General

Tuesday Morning

C HARLOTTE , N.C. — Ecommerce as well as home are

GOODLETTSVILLE, TENN. — As consumables drive sales,

DALLAS — After a difficult fourth fiscal quarter, Tues-

among the most rapidly growing business segments for Southeastern regional department store chain Belk Inc., which saw its net income more than double during the second quarter.

• Net income up 101.6 % to $25.0 million.

• Sales up 5.6% to $831.8 million.

• Comps up 5.2%.

the home department is among the discretionary areas loosing space during the second quarter.

“Basically, it is all sku rationalization,” said ceo and chairman Richard Dreiling. “As we looked at home, we've made changes in other areas that have affected the business piece by piece, and we've started eliminating unproductive skus. And that is what we did in [home] in the [second] quarter."

Dreiling did not specify which home goods have been pared back.

• Net income up 3.5% to $146 million, or 42 cents per share.

• Sales up 11.2% to $3.58 billion.

• Comps up 5.9%,.

day Morning Corp. said it is bent on improving its performance through the back half of the calendar year in time for the holiday selling season.

“While we are disappointed with the results of our fiscal fourth quarter, we are focused on several key areas to optimize our marketing efforts, improve our customer’s experience on our website and drive traffic to our stores,” said Kathleen Mason, president and ceo. “These efforts, combined with disciplined cost and inventory management, and prudent capital allocation, will be our focus this year as we strive to drive sales, improve profitability and enhance shareholder value.”

• Quarterly net loss of $1.4 million, or 3 cents per share, compared to net income of $1.3 million, or 3 cents per diluted share.

• Sales down 3.0% in the quarter to $194.8 million.

• Comps 4.5%.

• Fiscal year net income down 11% to $9.6 million, or 43 cents per share.

• Sales down 0.9% to $821.2 million.

• Comps down 1.2.

NEW YORK — The most recent set of quarterly financial

Big Lots C OLUMBUS , O HIO — Home was among Big Lots’ most

improved merchandise categories during its second quarter, even though it comped down against a doubledigit positive same-store sales increase last year.

The retailer is also focused on absorbing its new Canadian — formerly Liquidation World — which Big Lots acquired on July 18.

At the top of the list, said cfo Joe Cooper, is merchandise. “We need to fill shelves with great quality and extreme value merchandise. Today, inventory levels are down over 70% or so compared to prior year levels. Lots of empty shelves and a fair amount of inventory that is in stores in aged, and we’re moving swiftly to liquidate.”

• Net income down 8.2% to $35.7 million, or 50 cents per share.

• Sales up 2.2% to $1.17 billion.

• Comps down 1.5%.

Cost Plus OAKLAND, C ALIF. — The home business segment deliv-

ered same-store sales increases during the second quarter at Cost Plus Inc. despite shoppers’ cautious approach to discretionary purchases.

The home textiles category was singled out as among the more resilient non-consumble areas for the retailer.

The mix between consumables and home as a percentage of net sales was 65% and 35%, respectively, for the second quarter of 2011 versus 66% and 34%, respective-

Fred’s MEMPHIS, TENN. — Same-store sales in home during the

second quarter declined in the mid-single-digit range at Fred’s, making it the retailer’s hardest-hit category.

“The challenging economic conditions coupled with low consumer confidence during the debt crisis took its toll on our customers throughout the quarter,” said Bruce Efird, ceo.

He said Fred’s sourcing team is “focused on lower costs within home...Home is the biggest challenge at this point in time and we’re constantly making changes in our Core 5 and tweaking it.”

• Net income up 3% to $5.1 million or $0.13 per diluted share compared with $5.0 million or 13 cents per share in the year-earlier period.

• Sales up 1% to $452.7 million.

• Comps down 0.4% versus.

Gordman’s OMAHA , NEB. — Gordman’s home department was hit

with a comp decline during the second quarter, and the textiles category was among the lagging merchandise areas.Dec pillows saw some uptick in August with

Williams-Sonoma SAN FRANCISCO — Williams-Sonoma Inc.’s more afflu-

ent shopper flocked back to its stores and websites during the second quarter.

Sharon McCollam, evp, director, coo and cfo, explained, “The high-end consumer is doing well and our high-end products are selling well.”

• Net earnings up 27.6% to $39.3 million, or 39 cents per share.

• Total sales up 5.1% to $815 million.

• Company comps up 6.5%.

• Pottery Barn comps up 4%.

• Pottery Barn Kids comps up 8%.

• PBTeen comps up 20%.

• West Elm comps up 29%. HTT

NRF: BTS, BTC Shoppers Still Prefer Discounters But Also Liking Department stores W A S H I N G T O N — Discount chains continue this year as the most frequented retailers by back-to-school and backto-college shoppers, but are competing more closely with department stores, a recent National Retail Federation survey has found.

NRF’s 2011 Back-to-School and Back-to-College surveys, which were conducted by consumer research firm Bigresearch, showed that among

htt110901_028_030 30

college-bound shoppers the discount stores circuit is the top destination for almost half – or 48.2%, followed closely by department stores (39.6%). Clothing stores rose among that crowd with 27.7%.

Among the K-12 grades set, the gap between discounters and department stores was slightly wider but still narrower than last year’s results. More than half -- 56.9% -- of shoppers surveyed selected discount retailers

as the top shopping destination for last-minute BTS shopping, while 47.1% -- representing a 10% increase over 2010’s 42.7% -- chose department stores. Also gaining traction are two others: specialty clothing stores with 40.8%, up 19% from last year’s 34.3%; and online, which rose 16 points to 21.7% Overall, the report noted the average family has already completed 43.0% of their shopping for their K-12 students, similar

to last year’s 43.2% rate. College students and their parents have completed 44.3% of their shopping, up slightly from last year’s 43.1%.

NRF’s 2011 Back-to-School and Back-to-College Consumer Intentions and Actions surveys were designed to gauge consumer behavior and shopping trends related to back-to-school and back-to-college spending.

The surveys were conducted August 2 through 9 and polled

8,632 consumers.

“As school begins in many areas around the country, parents and students are furiously visiting stores and websites to cross the final items off of their back-to-school lists,” said Matthew Shay, NRF president and ceo. “Retailers know the final stretch of the back-to-school season is crucial and are continuing to offer exceptional values on everything from clothing to computers.” HTT

9/7/2011 3:56:26 PM

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32

Home Textiles Today

September 12, 2011

Calendar September

18

9 – 13

Home Textiles Today Market Kickoff Party Bar Basque at the Eventi Hotel 6 p.m. to 8pm (646) 805-0226

Maison & Objet Parc des Expositions, Paris-Nord Villepinte, Paris www.maison-objet.com

Showtime Fabric Fair Market Square, Textile Tower, High Point, N.C. (336) 885-6842

18 – 20 Texworld USA Jacob Javits Center, New York (770) 984-8016 www.texworldusa.com

18– 23 CMC Gift and Home Market California Market Center Los Angeles, California http://www.californiamarketcenter. com/markets/lagifthome.php

19 – 23 New York Home Fashions Market Home Fashion Products Association (212) 297-2122 (Kellen Co.) www.homefashionproducts.com

10 – 12 Dallas Total Home & Gift Market Dallas Market Center, Dallas (800) DAL-MKTS www.dallasmarketcenter.com

10 – 12 Atlanta Fall International Gift & Home Furnishings Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com 10-12 F!NDS Dallas Temp Show World Trade Center, Market Hall, Dallas, TX (214) 655-6116 www.dmcfinds.com

12 – 14 Domotex Middle East Dubai Airport Expo Centre, Dubai, United Arab Emirates +971 4 337 6072 www.domotex-middle-east.com

13 – 14 HD Boutique Exposition & Conference Miami Beach Convention Center, Miami Beach, Fla. (770) 291-5400 www.hdboutique.com

13 – 15 Indigo (Home Furnishing Edition) Brussels Expo, Brussels, Belgium +33 (0) 1 70 38 7000 www.indigo-salon.com

23 – 26 ABC Kids Expo Louisville, Ky. (210) 691-4848 www.theabcshow.com

October 2–3 New England Curtain Show Holiday Inn Hotel and Suites Marlborough, Mass.

508-536-5959 www.curtainchic.com

6–8 Interstoff Asia Essential – Autumn Hong Kong Convention & Exhibition Centre, Hong Kong (852) 2238 9917 www.interstoff-asia.com

January 2012 Dallas Fabric Show Dallas Market Hall, Dallas (214) 655-6100 www.dallasmarketcenter.com

Dallas Total Home & Gift Market Dallas Market Center, Dallas (214) 655-6100 www.dallasmarketcenter.com

National Retail Federation Convention & EXPO Jacob K. Javits Convention Center, New York (202) 626-8162 www.nrf.com

20 – 23

Las Vegas Market World Market Center, Las Vegas (702) 599-9621 lasvegasmarket.com

11 – 14

20 – 24

Heimtextil Frankfurt Fair & Exhibition Center Frankfurt am Main, Germany (770) 984-8016 heimtextil.messefrankfurt.com

Maison & Objet Parc des Expositions, Paris-Nord Villepinte, Paris, France (888) 522-5001 www.maison-objet.com

11 – 18

22 – 25

Atlanta International Gift and Home Furnishings Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

Interiors Birmingham The National Exhibition Centre (NEC), Birmingham, UK +44 (0) 20 7921 8408 www.interiorsbirmingham.com

12 – 15

24 – 26

The Atlanta International Area Rug Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com

Surfaces Mandalay Bay Convention Center Las Vegas, (866) 860-1975 www.surfaces.com

F!NDS Dallas Temp Show World Trade Center, Market Hall, Dallas (214) 655-6100 www.dmcfinds.com

29 – February 2 14 – 17

12 – 15

14 – 17

29 – February 3

International Hotel / Motel Show Jacob K. Javits Convention Center, New York (914) 421-3200 www.ihmrs.com

Domotex Hannover Hannover Fairgrounds, Hannover, Germany (609) 987-1202 www.domotex.de

New York Home Textiles Market Week At the New York International Gift Fair, Jan. 29 - Feb. 3 At 230 Fifth Avenue, Jan. 30 - Feb. 4 At 7 W New York, Jan. 28 - Feb. 3 (800) 272-7469 www.nyhometextilesmarketweek. com

December

Intirio Flanders Expo, Gent, Belgium +32 09/24 38 450 www.intirio.be

15 – 18

CGTA Gift Show Toronto International Centre; Toronto Congress Centre, Toronto, Canada (416) 679-0170 www.cgta.org/Assoc/Home.aspx

November

New York International Gift Fair Jacob K. Javits Convention Center, Passenger Ship Terminal Piers, New York (800) 272-7469 www.nyigf.com

30 – February 3 18 – 24

The Canadian Home Furnishings Market (TCHFM) The International Centre Mississauga, Ontario, Canada (514) 866-3631

4–7

htt110901_032 32

Dallas Holiday & Home Expo Dallas Market Center, Dallas (214) 655-6100 www.dmcfinds.com

9 – 10

22 – 27 High Point Market International Home Furnishings Center (IHFC), High Point, N.C. (336) 869-1000 www.highpointmarket.org

28 – February 2

29 – February 1 18 – 24

21 – 23 Heimtextil Russia IEC Crocus Expo Exhibition Center, Moscow, Russia +7 (495) 721 1058 www.messefrankfurt.ru

Cologne, Germany (773) 326-9920 or +49 221 821-0 www.imm-cologne.com

16 – 20 imm cologne The Exhibition Center

February 2012 5–9 Spring Fair The National Exhibition Centre (NEC), Birmingham, UK (609) 921-0222 www.springfair.com

7 – 10 Texworld Paris Le Bourget Exhibition Centre, Paris, France +33 155 268 989 www.texworld.messefrankfurt.com

March 2012 11 Home Textiles Today’s New York Winter Market Kickoff Party (646) 805-0226 www.hometextilestoday.com

12 – 15 New York Home Fashions Market Home Fashion Products Association (212) 297-2122 (Kellen Co.) www.homefashionproducts.com

9/8/2011 12:05:15 PM

Home Textiles Today’s

Global Home Show

September 18-22 A Must-See Destination Fall NY Home Fashions Market Week 295 5th Avenue and 7 West 34th Street Interested exhibitors, join an exciting array of companies at the 4th HTT Global Home Show.

Make appointments now with these leading suppliers:

Mr. Jiten Rajput

Mr. Eric Vergucht

Telephone: +91-22-67432875 Email: jiten.rajput@bombaydyeing.com Web: www.bombaydyeing.com

Mr. Ryan Malfitano

Mr. Adam Kester

Telephone: (914) 930-8440 Telephone: (704) 554-8621 x 312 Telephone: (704) 527-6133 x 2411 Email: eric.vergucht@chortex.com Email: rmalfitano@consolidatedfibers.com Email: akester@contourhealth.com Web: www.chortex-usa.com Web: www.consolidatedfibers.com Web: www.ContourHealth.com

Mr. Joseph Shafran

Mr. Ben Noonan

Ms. Diane Carleo

Telephone: (812) 343-6200 Email: joe.shafran@fazethree.com Web: www.Fazethree.com

Telephone: (704) 232-4187 Email: bennoonan@carolina.rr.com Web: www.pradipoverseas.com

Telephone: (706) 260-7635 Email: diane@carpets.com Web: www.unitedweavers.net

For complete information, contact: Joe Carena, Show Manager, jvcarena@gmail.com (203) 329-9553

FFor complete exhibitor information, contact: ODATIONS: M M O C C A L E HOT tes go to For lowest ra eek om/MarketW .c ts n u co is lD NYCHote 00-521-8765.

-8 1 t a s u ll ca or

HTT_GHS fall11 tab2.indd 1

W Warren Shoulberg, Publisher, Home Textiles Today wshoulberg@hometextilestoday.com w ((646) 805-0226

8/30/11 10:01:53 AM

34

Home Textiles Today

September 12, 2011

> hometextilestoday.com

First Monday: Specialty Retailing

More Independents Offering “Affordable” Options for High-End Customers

BY JILL ROWEN N EW YORK – For the past few years, economic woes that prevailed on mid- and lower-tier markets seemed to escape luxury customers, who were still spending, according to many industry pundits. That has changed.

Ret ailers told HTT that, while still optimistic, they are making changes: cutting spending at shows and markets, paring down holiday offerings and looking to infuse a more demo-

htt110901_034_036 34

cratic price mix in their stores.

Independent retailers across the country are looking for more affordable offerings to showcase alongside the more traditional high-end styles some have always featured.

“It’s all relative,” said Caroline Reyes-Dorson, owner of the Birdcage in Solana Beach, Calif. “We’re in one of the highest demographic groups in the country, but the specialty home furnishings market has been particularly hard hit in California.

Those that had $20 million now have $10 million and they are running scared.”

Reyes-Dorson noted this was the first year she didn’t attend any shows (usually New York and Las Vegas) and cut back, buying late for holiday. “I bought about one-third of what I would usually buy. If I was late in the past, everything would be gone. Not this time. I got everything I wanted,” she said.

Though most retailers contacted by HTT said they did find

time to attend markets and trade shows over the summer, many went with a smaller checkbook, or at least kept an eye out for lower price tags.

Joan Miller, owner of Early to Bed in Omaha, Neb., attended the New York International Gift Fair. “It was a good market for me, and I accomplished what I set out to do, but I did not spend a lot of money, which was my goal,” she said. “In this economy, I did not want to be carrying too much inventory.”

Of her recent buying ventures, Vicki Blanchard, coowner of Fraiche on the Avenues in Richmond, Va., noted “We’ve become pillow happy.

It’s a quick fix in this difficult economy; putting colorful throw pillows on a neutral couch can change the whole look of a home.”

In fact, the store has dedicated a whole room to its array of pillows. “Textiles have been good for us all year,” said said, SEE SPECIALTY PAGE 36

9/9/2011 3:56:17 PM

Clean Up With

More companies choose Home Textiles Today for their marketing & advertising than all other industry publications put together. www.HomeTextilesToday.com

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36

Home Textiles Today

Independent Retailers

SPECIALTY FROM PAGE 34

with the Matouk brand one of the brands she calls a “real workhorse.”

Blanchard has also opted to include new vendors in more moderate prices. The store now offers Linen Way, a Russian line of table top goods. The difference? The store’s best-selling Le Jacquard Francais line sells for $30 for one napkin while Linen Way is $68 for four napkins. “They’re all beautiful, but we needed another price point,” she said.

According to Jeff Mulert, owner of Feathers in Pittsburgh,

September 12, 2011

vendors at the Atlanta Inernational Gift Market were ready for price-sensitive buyers. “I spent less money,” he said. “But a lot of vendors were offering a greater range of prices for their products.” Mulert said Feathers’ business continued to be steady.

“Instead of buying three sets of luxury customized bedding, our customers may now buy one,” said Meg Carroll, owner, Bedside Manor, a four-store chain based in Chicago. “They are mixing it up with a basic and a less expensive bedding option.” Carroll said the company is trending ahead of last year in sales, but she is keeping her approach “conservative.”

News

“Our clientele is doing well and better than some other parts of the country,” noted Sylvia Dorsey, owner, Longoria Collection, Houston. “We are usually a very-understated store, but we’ve brought in some less expensive, fun items that I think will do well.” Among the newer brands, Pine Cone Hill bedding that has “young and very affordable looks.”

“I’m trying to find value in better-priced goods,” said Phoebe Howard, owner Ms. Howard, a four-unit upscale specialty chain headquartered in Jacksonville, Fla. Howard says business is booming. “Our ace-in-the-hole is that we sell off the floor, so people don’t have to

Peacock Alley Offers Fire and Ice for Fall DALLAS – Peacock Alley’s mood for fall melds gray

and ginger for elegance and warmth.

The foundation of the ensemble includes flinthued Soprano sheets, Napa woven washed duvet covets and an all-season blanket. The palette is spiced with Corsica, yarn-dyed, contemporary herringbone duvet cover and shams with satin-stiched details.

On the other end of the spectrum, Peacock Alley is introducing what it calls “Storybook Whites.” These include Virtuoso, a sateen sheet set made in Italy of 600-count Egyptian cotton and Soprano in 450-count Egyptian cotton with a satin-stitched trim. Retail for queen sets are $700 and $495, respectively.

Under the same umbrella, Peacock Alley is offering Lyric, a 500-count Egyptian cotton sheet set from Italy with a double hemstitch ($635 queen) and Boutique, a 200-count percale with a colored satin stitch ($225 for a queen set). HTT

Peacock Alley’s Corsica bedding.

Shine Handmade Deubts at NYIGF ST. C HARLES , I LL . — Table linens from

Shine Handmade made an inaugural showing at the New York International Gift Fair recently with “one-of -a-kind” table toppers and table runners made of designer drapery fabrics in home studios.

The company taps fabric sources across the United States to create unique combinations of color and pattern for the table.

Shine Handmade has produced more than 2,200 toppers and runners to date. The pieces are sold in specialty stores, home furnishings stores, kitchen stores and boutiques as well as by interior designers.

HTT

htt110901_034_036 36

> hometextilestoday.com

order things and wait for them to arrive.”

Whatever the quantity, virtually every retailer named color as an overwhelming sales driver.

From grays, plums and mauves at Feathers to rich dark shades at Early to Bed and batik styles for the coastal customer at Fraiche on the Avenues, many are using color as antidotes to the economy blues.

Going forward, the retail outlook for holiday is optimistic.

“We’re in Florida, so our business is very seasonal, and right around Thanksgiving people start getting their houses in order,” said Penny Murphy, president, Pioneer Linens, West Palm Beach. The company is

celebrating its 100th year in business in February 2012. Murphy anticipates duplicating the great holiday season it had last year.

“We’re looking forward to a great holiday,” agreed Blanchard.

“I think people have a pent up spending desire and we’re going to feed right into it.”

Noted Carroll, “We want to be confident and feel good about business for holiday; at the same time we don’t want to be frivolous and add new categories too far out of the box than what we are known for.”

Howard does not mince words. “It’s going to be an entertaining and exciting Christmas for us.” HTT

Peking Handicraft Shows Rug Designs

by New Licensee Scott Church S A N F R A N C I S C O — Peking Handicraft’s division serving the gift and specialty retailing segment recently unveiled seven hook rugs featuring seasonal designs from its newest licensee, Scott Church.

Six of the rugs focus on the winter holiday season with animal themes such as an elephant toting a Christmas tree and hedgehog pulling a sleigh piled with gifts.

There is also a Halloween offering that depicts trickor-treaters moving through a grove of trees.

Rugs come in a range of sizes, with retails running from $80 to $160. HTT

zicci bea Launches Bedding Collections NEW YORK — Interior designers Shoshanah Weinstock and Yali Katz recently paired up to create zicci bea, a line of affordable luxury bedding that draws inspiration for their high-end, custom bedding.

The debut collection includes six bedding sets with a reversible duvet cover, fitted sheet, sham and pillow case(s).

The grounds are neutral to

coordinate with solid sheets and other accessories, but he duvet cover designs include stripes and damasks in bold colors and over-sized patterns. Sets are constructed of 220-count, pigmentdyed cotton sateen.

Retails for queen are $289 and are available at www.siccibea. com and in select beding shops, boutiques, small chain stores and interior designers. HTT

9/9/2011 3:59:40 PM

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8/31/2011 12:50:57 PM

38

Home Textiles Today

Designing Spaces SHOWROOMS FROM PAGE 2

Lauren in the past. To get the ball rolling, her major bedding client will show her the collections and produce an inspiration board made of magazine tear sheets that display the vibe of the collection and supply a theme, like “urban” or “country.”

“Just a few swatches and words — that’s all I need,” said Bross. “I’m used to interpreting.”

Once she has her theme, she’s off and running to build an entire room.

“In my showrooms — I do wallpaper, decorating, lighting, curtains.” She likened it to designing a set. “It’s creating a lifestyle. My showrooms feel like they’re in someone’s home — except that there are five beds.”

And showrooms come together under very tight deadlines, because as Bross points out, “bedding samples come in so last minute.” Since designers like her can’t pick the props until they see the samples, typically the bulk of the work is done in the weeks right before the market opens, she said.

Bross uses the time between markets to shop for accent pieces and side tables from home stores and websites like Ballard Designs and Mecox Gardens. “I buy everything, recycle, recover it,” she said. “I can use mirrored side tables multiple times.” Then every so often, she clears out her warehouse, much to her staff’s delight, and starts buying fresh.

While Bross has a lot of room for interpretation, there are some basic rules she must follow, namely: 1) don’t block the bed, 2) light the bed well, 3) don’t touch the bed. Don’t even lean on it.

That’s because her beds are typically made up by one particular specialist, who declined to be interviewed for this story. Her work is so precise that Bross likened her to a food stylist and said she possessed a “really specific talent” when it comes to dress-

September 12, 2011

ing the bed.

Similarly, the bed tailoring team from another showroom designer, Mayo Studios, uses an elaborate checklist for preparing a bed, including pressing, steaming and pinning bedding to lay on a bed in an attractive way. The preparation for a single bed can take up to one hour. And that’s just the bed — then there’s the rest of the showroom to set up.

But all this effort begs the question: why do it? If the focus is supposed to be on the bedding, why take the time — and money — to create displays as elaborate as one bedding manufacturer did for a past market that required actual sand on the floor for a Tiki beach hut theme.

One bedding manufacturer, Revman International, had this response.

“The cost is significant, but the investment is worthwhile,” said Diane Piemonte, vp of creative services. It’s all about giving the retailer a great experience, she explained.

“If you create the proper lifestyle context for each collection, it helps to highlight the brand’s image and visualize the customer who will purchase the products. It also helps to instantly differentiate among our many brands and helps the retailer ‘shop,’ the same way that great visual merchandising displays in a store inspire the consumer to purchase,” Piemonte said.

Some of the most memorable displays Revman has done in the past, Piemonte said, included the Tommy Bahama launch, which required removing a wall to double the space.

More recently, she said, the front of Revman’s showroom went through a transformation for the Vera Wang collection, which added a minimalist setting quite different from what Revman has done in the past.

Mayo Studios is currently involved with three projects at 295 Fifth Avenue. The company is working with Victoria Classics to design its large new showroom for spring 2012. Mayo is also doing another revision of the Kassatex windows. And Nourison has

News

engaged Mayo Studios to design its Fifth Avenue window display for the upcoming market week.

Mayo Studios, which started out by photographing home fashions for print, catalogs and the web, in recent years added showroom design. Mark Mayo, who runs the company with his wife, Sandy, described the importance of creating a comprehensive depiction of the brand in the showroom.

“In many cases, our role in a showroom design project extends beyond the bed, bath, floor-covering product our clients sell: it’s the environment as a whole that tells a story about the company and directly affects the ‘memorability’ of a showroom.”

Mayo Studios can enter the showroom design process as different stages.

They often jump in when a space is gutted to collaborate with the client and architect to create space for display and offices. Or enter when the space is further along to assist in the decorating.

Manufacturers with more complicated needs, such as those with multiple licenses “require a strategy that will walk the buyer sensibly through the showroom and allowing for a clear focus on one product category at a time,” Mayo said. “One of our basic bedding customers had only a handful of down comforters and pillows to feature — in that instance we presented each product almost like a jewel in a museum.”

Mayo described the work as highly collaborative and said his team does their research, immersing themselves in a client’s product line. “We often ask the client to walk us through their existing space or showroom and present product to us as if we were one of their buyers,” he said.

His clients, he said, “have a lot of input along the way” and receive progress reports. “We find the most successful design projects are those when our clients are part of the decision-making process and by the end of the project, they share a sense of the creative ownership that we certainly do.” HTT

> hometextilestoday.com

360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com EDITOR-IN-CHIEF Jennifer Marks 10 Ocean Blvd #8B Atlantic Highlands, N.J. 07716 (732) 204-2012 | jnegley@hometextilestoday.com PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | wshoulberg@hometextilestoday.com 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 ASSOCIATE PUBLISHER, ACCOUNT MANAGER CHINA Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER NORTHEAST/MIDWEST/ WEST COAST/CANADA Mary McLoughlin (646) 805-0227 | mmcloughlin@hometextilestoday.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 swhittle@sandowmedia.com Karen Hancock (336) 605-1047 khancock@sandowmedia.com MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | Kaushal@kaushals.com ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com DIRECTOR, WEB OPERATIONS Chris Schultz | (336) 605-1076 | cschultz@sandowmedia.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | dsage@sandowmedia.com E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | maxe@sandowmedia.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | aternes@sandowmedia.com PRESIDENT, FURNITURE TODAY GROUP Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com FOUNDING EDITOR-IN-CHIEF Carole Sloan 1979-2011

SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow CFO/COO Christopher Fabian VP CREATIVE AND EDITORIAL Yolanda E. Yoh EVP, GROUP PUBLISHER James N. Dimonekas SUBSCRIPTIONS: U.S.A. (866) 456-0405 All other countries: (515) 247-2984 HTTcustserv@cdsfulfillment.com FAX SUBSCRIPTIONS: 1-866-310-7181

Surya Earns a Place in Inc. Magazine’s 500/5,000 List A T L A N TA — Area rug and decorative accessories source Surya has been named to Inc. Magazine’s “Inc. 500/5,000” list of America’s fastestgrowing privately-held companies.

Surya said it has seen strong growth since 2004, with double-digit expansion annually through 2011, “a difficult task considering the United

htt110901_002_038_039 38

States’ recent economic recession,” said ceo Satya Tiwari.

“It is a great honor to be named to the Inc. 5,000 list of the fastestgrowing companies in the country,” he continued. “At Surya we pride ourselves on providing our customers with high-quality and innovative designs for all of our products, and

receiving this honor shows that our customers are taking notice.”

Inc. Magazine will honor Surya at the publication’s 30th Annual Inc. 500/5,000 Conference and Awards Ceremony Sept. 22-24 in Washington, D.C. Surya’s Inc. 5,000 Company profile can be seen at www.inc. com/5000. HTT

THE WEEKLY BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY® 360 Park Avenue South, New York, NY 10010 Telephone: (646) 805-0227 Fax: (646) 365-2307 USPS 497-490 HOME TEXTILES TODAY (USPS 497-490) (ISSN 0195-3184) is published 29 times a year except for the weeks of 1/3, 2/14, 2/28, 3/20, 4/11, 4/25, 5/2, 5/16/,5/30, 6/13, 6/27, 7/4, 8/1, 8/15, 8/29, 9/5, 9/26, 10/17, 10/31, 11/14, 11/28, 12/12, 12/26 by Furniture/Today Media Group, 360 Park Avenue South, 17th fl., New York, NY, 10010 a subsidiary of Sandow Media LLC, 3731 NW 8th Ave, Boca Raton, FL 33431. Periodicals postage paid at New York, NY, and additional mailing offices. HOME TEXTILES TODAY copyright ©2011 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $169.97; 1 year, other countries $325.99 for surface mail and $525.00 for airmail. All payments must be made in U.S. currency. Subscription inquiries: HOME TEXTILES TODAY, PO Box 5879, Harlan, IA 51593-1379. Phone: (866) 456-0405.

HOME TEXTILES TODAY and THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY are registered trademarks of Sandow Media LLC, used under license. Sandow Media LLC does not assume and hereby disclaims liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident or any other cause whatsoever. (Posted under Canadian International Publication Agreement No.40624074. Sandow Media/CDS (Mint Hill) POSTMASTER: Send address changes to HOME TEXTILES TODAY, P.O. Box 5879, Harlan, IA, 51593-1379 Email: HTTcustserv@cdsfulfillment.com. Return undeliverable Canadian addresses to: RCS International; APC; PO Box 503, RPO West Beaver Creek, Rich Hill, ON L4B 4R6

9/9/2011 11:01:25 AM

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> hometextilestoday.com

Softline Celebrates 10 Years SOFTLINE FROM PAGE 2

retailers domestically and in Canada but also exported to customers in Puerto Rico, Mexico, South America, New Zealand and Australia. The company operates showrooms in Los Angeles, as well as in New York, Atlanta and Montreal.

“The reason we’ve been successful in these adverse times is that we always followed our business plan and our vision,” said Jason. “We were not greedy. We always put money back into the company.”

That included continuing to advertise and make smart use of new media even during a crunch. Softline created an industry buzz with a short film about the company in 2007, and has a well-followed Facebook page, a blog and an active web-

site, which is being revamped.

“We want our customers to have as many sales tools as possible,” said Jason. “The photography you see on the website is not just panels next to a chair and lamp; it’s a real lifestyle approach.”

The tenacity at the beginning — Rodney on the road 300 nights out of the year and a presence at 40 trade shows a year during the company’s infancy — paid off with a large order from Jo-Anne Fabric for decorative fabrics. In 2004, the company began marketing ready-made panels, a move that opened up its customer base to the big national chains. Decorative pillows came next.

According to Rodney, Softline’s focus on “affordable elegance” and its use of polyester fabrics designed to look like silk

Home Textiles Today

September 12, 2011

gave the company a specialty niche that was a hit with customers.

Now the plan is to continue to innovate in product development and in how it services customers. The company recently announced an exclusive partnership deal with GuardIn Natural Fabric Protection, which uses all-natural technology to make fabric anti-bacterial and flameresistant as well as stain- and water-repellant.

Bedding is the newest venture, with a modern product line of coverlets to be shown at the upcoming New York Home Fashions Market. And down the road, the brothers have an eye on a brand prize. “We’re doing our homework right now, looking at designers and corporate brands. We’re a strong brand and recognize the advantages of having both brands and private

labels,” said Jason.

What has changed over the last 10 years? “We have retailers taking our calls quicker,” noted Jason. Added Rodney: “Retailers don’t give you 1,000-store orders any more. There is a lot more testing of programs for 100 to 150 stores,” he said.

One other remarkable thing about the Carrs: how well they get along. The brothers are close and have forged a productive working relationship with seemingly little familial conflict. “We know our strengths and respect each other’s talents,” noted Rodney. While Jason is the buying and operations guy, Rodney has always been more of the sales guy.

The easy sibling camaraderie is evident in their relationship.

Asked to name milestones, Rodney doesn’t hesitate: “When the company was profitable enough

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that I could afford to move out of Jason’s L.A. apartment.”

For Jason, it was finishing the Los Angeles marathon with his brother in order to get Rodney to stop smoking. Both accomplished their goal. The family camaraderie is also pivotal in how it treats its employees. The company provides full health care coverage, profit incentives and even English classes for non-native speakers, and prides itself on the low turnover since the company began.

A 2004 HTT article had this to say: “Softline wants to become a leader in design and styling, stay aggressive in product development, increase its importance to existing customers and offer products that retailers haven’t seen, added the brothers.”

That, at least, hasn’t changed.

“That’s exactly what we still live by,” they both agreed. HTT

CLASSIFIEDS THEY’RE LOOKING FOR YOU

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HELP WANTED BATH DESIGNER WANTED Large Midwest based bath products company seeks an experienced bath towel, shower curtain and accessory designer, working out of its NY design office.

Candidate should have experience designing and presenting products to mass merchants, specialty and department stores. Candidate must have hands-on CAD experience. Extremely confidential! Email: bath.textiles@yahoo.com

Leading Home Textile supplier, located in New York seeks Fashion Bedding designer. Must have minimum of 5 years experience and be proficient in embroidery and jacquard design.

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Send resumes Attn: BB159 to classifieds@sandowmedia.com Leading Home textile supplier, located in New York seeks Product Development professional in Fashion bedding.

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LINES OFFERED BATH SALES REPRESENTATIVE WANTED Large Midwest based bath products company seeks a sales person to handle national and regional accounts, working out of its NY sales office. Candidate should have experience selling bath towels and related products to mass merchants, specialty and department stores.

Extremely confidential! Email: bath.textiles@yahoo.com National Sales Manager and Sales Representatives 36-yr privately held mfr and importer of home textiles and general merchandise seeks qualified NY based Nat’l Sales Manager, and, nationwide Sales Reps for a developing/expanding new division of company. Division focuses exclusively on closeout merchandise in various categories. Position reports to CEO/COO. Candidate must have min. of 8 yrs sales exp. to largest discount retailers in the country. Relationships a must. Resumes to classifieds@sandowmedia.com B162

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