February 11,
2010 by in UnCategorized 
By Home Furnishings Business in Bedding on February 12, 2010
Houston-based Mattress Firm has made a number of changes in its management team, including in the senior management office where the company is following a succession plan put into place in 2007.
Steve Stagner has been named president and chief executive officer, and Gary Fazio has been named chairman of the board of directors. Stagner had been chief operating officer, and Fazio had been chief executive officer. Both changes were effective Feb. 3, the kickoff of the company's fiscal year. With the changes, Stagner assumes direct leadership of the day-to-day operations of Mattress Firm, while Fazio will focus on strategic growth opportunities.
Fazio joined Mattress Firm in 2001 and led the retailer from a regional player to the nations leading multi-brand mattress retailer, more than tripling store count. Mattress Firm now has more than $500 million in sales. Many of Fazios initiatives launched nine years ago are now part of Mattress Firms differentiating concept such as the companys innovative store design, expanded merchandise assortment, luxury product leadership position, Red Carpet delivery service and warehouse and delivery system.
In January 2007, we began a process designed to empower our key leaders to accelerate Mattress Firms growth objectives and move the company into a leadership position in the industry, Fazio said. That aggressive approach has allowed us to grow quickly yet strategically and establish ourselves as an industry leader. We have a strong foundation, a proven retail model, and a great team for future growth and Steve is the perfect leader to execute on this opportunity.
Stagner has been with Mattress Firm since 2005 when his franchise group, Mattress Firm Elite, was acquired by Mattress Firm corporate. Named President in 2006, Stagners leadership role has included operations, merchandising, sales and marketing and training, as well as real estate, where he led the creation of a proprietary, metrics-base decision making program that has become a model in the specialty retail industry. Stagner began his career on the manufacturing side of the bedding industry prior to opening his first Mattress Firm franchise store in 1996 in Atlanta. He and his team built the franchise group to become the companys largest with 50 stores in six markets and more than $60 million in sales making it an attractive acquisition for Mattress Firm.
In the last three years we have made six acquisitions, opened five new markets, and opened more than 200 stores under the Mattress Firm banner, Stagner said. We gained market share during the downturn. I am looking forward to my expanded role with Mattress Firm and to the challenges of maintaining an aggressive growth strategy while also continuing to provide our customers with the unmatched shopping experience that has defined Mattress Firm. I have never been more excited about our potential.
In other personnel moves, the company has named Dave Brummett vice president of product development, a new position with the retailer, and Craig McAndrews vice president of merchandising.
In his role, Brummett oversees the development of product strategy and the overall direction of product, price, promotion and placement on a national level.
"Dave is a seasoned veteran with 21 years of experience in the furniture and bedding industry," Stagner said. "He has been instrumental in creating a phenomenal merchandising line up and building vendor relationships. His innovative approach to product selection will help our organization develop and create a truly differentiated product strategy that will drive traffic, conversion, margin and ticket."
Brummett joined Mattress Firm in 2007 as vice president of emerging markets. In that role, he was responsible for managing Mattress Firms entry into new markets and coordinating the activities related to expanding into new territories. Later that year, Brummett was named vice president of merchandising and oversaw the planning and execution of the companys merchandising efforts and vendor relationships.
Prior to joining Mattress Firm, Brummett served as regional vice president and general manager for Mattress Giant, a buyer for Sears Homelife Furniture, and vice president of business development for Simmons.
McAndrews succeeds Brummett as vice president of merchandising and is responsible for strategic merchandising planning, growth of vendor relations and executive analysis of merchandising performance.
"Craig provides a tremendous amount of industry experience for our organization," Stagner said. "He has seen all sides of the business from owning a franchise to retail consulting. Drawing from his vast industry experience, Craig will help build on our current merchandising platform by developing competitive strategies around data-driven insights."
McAndrews' first interaction with Mattress Firm was in 1992 as a sale representative for Stearns & Foster and Sealy. In 1996, he began working with Simmons as a sales representative and later as vice president of sales for the Southeast region. In 1999, he moved to Phoenix to open the market as a Mattress Firm franchisee and built the company to 18 stores before Mattress Firm, Inc. acquired the business.
In 2003, McAndrews and his business partner co-founded the Innovative Retail Group, a provider of retail solutions and training programs designed for the bedding industry. After his time with Innovative Retail Group, McAndrews started a new venture, The Retail Institute, a consumer research and sales education company committed to studying consumer buying behaviors. Through McAndrews research and consultation, several sales education and leadership development programs were created at Mattress Firm.
McAndrews returned to Mattress Firm in February 2009 as the east regional sales manager and reengaged into the Mattress Firm culture. Drawing on his previous relationship with Mattress Firm, as well as his research and development expertise, McAndrews created several innovative tools around strategic market-level direction and individual development plans.
February 11,
2010 by in UnCategorized
By Home Furnishings Business in Executive Changes on February 12, 2010
Furniture Brands International, St. Louis, has extended Chairman and CEO Ralph Scozzafava's contract for three years.
The extension was in an Security and Exchange Commission filing FBI submitted this week. To see the filing, click here and select 8-K filed Feb. 10.
The material changes to the Scozzafava's amended contract are as follows:
* Extension of employment for an additional three years as of July 10 and elimination of Scozzafava's automatic renewal provision.
* Change cash severance from three times base salary plus average bonus paid over the prior three years to two time bas salary plus the target bonus for year of termination.
* Addition of the right to receive a pro-rated annual bonus payable as if Scozzafava had remained an employee throughout the period.
* Elimination of payment of pro-rated cash long-term incentive payments unless at least 18 months or more of the the three-year performance period has lapsed.
* Elimination of tax gross-up on health, dental and vision benefits.
* Elimination of excise tax gross-up on change in control benefits effective Dec. 31, 2011.
* Increase of Scozzafava's non-compete obligations from one year to two years following termination.
* Addition of a clawback provision allowing FBI to recoup the after-tax portion of any performance-based pay that would not have been earned on restated financial results if paid no more than three years prior to restating the financial statements.
FBI also will reimburse Scozzafava for up to $20,000 of his attorney's fees in connection with the new employment agreement.
February 11,
2010 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on February 12, 2010
Creative Classics Furniture, Alexandria, Va., is celebrating its 10th anniversary with a sale featuring a different American manufacturer each month.
Founded in 2000 by the husband-and-wife team of Scott and Rachel Hughey, Creative Classics is a local, family-owned home furnishings store that focuses on furniture scaled for town homes and condos.
"We saw a need for furniture of a scale that wouldn't overwhelm small rooms and sized to fit through the tight doorways and staircases that are common in Old Town and the District," said Rachel Hughey. "We were surprised to find that even folks in larger homes often prefer furniture that is more space efficient and less 'overstuffed' as well."
From now through the end of the year, Creative Classics will celebrate its 10-year anniversary with a sale featuring a different American manufacturer each month. February's sale is on Simply Amish solid hardwood bedroom, dining room and living room furniture. Simply Amish furniture is handcrafted in Arcola, Ill., by a variety of Amish craftsman in solid cherry, maple or oak in a variety of stain finishes.
February 11,
2010 by in UnCategorized
By Home Furnishings Business in economic news on February 12, 2010
According to the National Retail Federation, January retail industry sales (which exclude automobiles, gas stations, and restaurants) increased 0.5 percent seasonally adjusted month-to-month and decreased 0.2 percent unadjusted year-over-year.
January retail sales released this week by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.5 percent seasonally adjusted over December and 3.2 percent unadjusted year-over-year.
"We continue to see the economy show subtle signs of improvement," said Rosalind Wells, chief economist for NRF. "While the recovery still has a long way to go, we remain encouraged by the latest retail sales figures."
Retailers offered special deals aimed at enticing shoppers to hit the stores to use gift cards they received over the holiday season and stock up on clearance items.
Sales at electronics and appliance stores increased 1.2 percent seasonally adjusted and decreased 7.6 percent unadjusted year-over-year. Clothing and clothing accessory store sales increased 0.3 percent seasonally adjusted month-to-month and decreased 1.7 percent unadjusted from January 2009. Sporting goods, hobby, book and music stores also saw
solid increases, with sales jumping 1.0 percent seasonally adjusted from December and 5.5 percent unadjusted year-over-year.
Sales at health and personal care stores increased 0.1 percent seasonally adjusted month-to-month and 2.3 percent unadjusted year-over-year. The housing market is still showing signs of uncertainty as sales at furniture and home furnishing stores fell 1.4 percent seasonally adjusted over the previous month and 6.4 percent unadjusted year-over-year.
February 11,
2010 by in UnCategorized
By Home Furnishings Business in Bedding on February 12, 2010
Tempur-pedic CEO Mark Sarvary was on CNBC Friday morning to discuss the bedding manufacturer's new ad that hooks into social media.
A new Tempur-Pedic ad challenges consumers to go on Twitter or Facebook to give their take on Tempur-Pedic's product. Sarvary said the company knows people say good things about Tempur-Pedic, and was confident enough to dare consumers to offer their unfiltered comments.
Click here to see the segment.