Daily News Archive
Brought to you by Home Furnishings Business
January 31,
2010 by in UnCategorized 
By Home Furnishings Business in economic news on February 1, 2010
After ending a two-year decline in October, new retailer orders for furniture started climbing again in November, up 10 percent over November 2008, according to the latest Furniture Insights survey of furniture manufacturers and distributors from the High Point accounting and consulting firm Smith Leonard.
Flat results in October had marked the first month since October 2007 where new orders were not lower than the previous year.
The industry still has some catching up to do--November 2008 orders were off 23 percent from November 2007--but it's the second month in a row of now decline.
Fifty-one percent of the participants reported increased orders in November, up from 41 percent in October, 33 percent in September and 20 percent in August.
That is a good trend. Year-to-date, new orders were down 14 percent compared to the same period a year ago, down from 16 percent last month. Last year at this time, new orders were down 13 percent year-to-date.
Shipments in November were off 1 percent compared to November 2008, the first month that shipments were off less than 10 percent since June 2008. Shipments were 4 percent higher than October, but obviously have not yet caught up with the increase in orders. November 2008 shipments were 21 percent lower than November 2007 shipments.
Backlogs were 6 percent higher than October, as orders exceeded shipments. Backlogs were 7 percent higher than November 2008 after a 1 percent increase
last month, following many months of significant declines in backlogs.
Receivable levels were 14 percent lower than November 2008 compared to a 20 percent decline last month.
"We mentioned last month that the 20 percent decline might have related to timing as it appeared a bit out of line," Smith Leonard Managing Partner Ken Smith said in the report. "The 14 percent decline is in line with year-to-date shipments decline of 17 percent."
Inventories fell 1 percent from October 2009 and were down 27 percent from November 2008, versus a 26 percent decline last month.
"The decrease in inventories is likely the result of most companies working hard to convert inventories to cash, the decline in volumes, as well as more direct imported products included in sales that never hit inventory," Smith said.
Factory and warehouse employment was even with October and down 11 percent from last November. November 2008 employees were down 17 percent from November 2007. Payrolls were down 3 percent compared to last November, when they were down 22 percent compared to November 2008. Year-to-date, payrolls were 18 percent lower than the same period a year ago. Year-to-date payrolls in 2008 were 14 percent lower than the same period in 2007.
In summary, Smith said November results were encouraging for a change.
"While comparing to very weak results from last year, coupled with the October results, we may in fact be reaching the bottom, assuming the economy doesn't hit another snag," he said. Two months do not really create a trend, but it is certainly a start. That along with recent conversations make us at least begin to feel that we may have finally reached bottom."
Smith noted that recent volatility in the stock market is not going to help consumer confidence.
"On the other hand, hopefully some of the craziness coming out of Washington, may begin to slow down a bit and reduce consumers worries about all of the negative news about deficits, crazy spending, etc.," he said. "Hopefully, they are getting the picture that jobs and the economy need fixing more than some other areas of concern. While consumers probably do not feel that good about most news that comes from Washington, hopefully they will not feel worse."
January 30,
2010 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on January 31, 2010
San-Diego-based Jeromes Furniture plans to open a 40,000-square-foot store in a new California market by President's Day.
The new store, the retailer's sixth showroom, will open in Murrieta, Calif., in a former Levitz showroom, and will serve the surrounding areas including Temecula, Calif. The 56-year-old, family-owned company also operates six clearance centers.
The new location signals the furniture retailers ambition to increase its footprint, making products available to more consumers across southern California.
After the Murrieta showroom opens, the company will employ 370 people. The new store will employ between 35 and 40 people.
Our customers drive to our various locations far and wide across San Diego County, especially from Murrieta, said Lee Goodman, president and CEO of Jeromes Furniture. As a family-owned business that provides value to our customers with quality products at a price people can afford, we feel that the Jeromes brand resonates well with consumers in Temecula and the surrounding areas. Theres a large makeup of hard-working families that we believe will continue to become Jeromes customers for life and welcome our furnishings into their home.
Located right off the I-15 freeway in Murrieta, just a few miles north of Temecula, the new location will serve the inland empire region, an area the company has long wanted to be a part of. The showroom will include Jeromes most popular departments, including Kidz to Teens, leather, dining, Jeromes Dream Shop, living room, baby, entertainment and home office.
The City of Murrieta is very excited that Jeromes Furniture will be opening in the former Levitz building at the Village Walk shopping centera highly visible location at the I-15/California Oaks Road interchange," said Murrieta Mayor Kelly Bennett. Jeromes is a well-respected, highly successful retailer, and we welcome them to the City of Murrieta. The City has fast tracked the permits within one day, and they will open before the Presidents Day holiday.
The office manager is Cheyney Stivalet, who will oversee the office within the store, finalizing sales and arranging necessary financing. The locations sales manager overseeing sales, customer service and interior design will be Ali Tommalieh.
Jeromes has recently seen an uptick in sales from consumers that may have paid more with other retailers and now seek value and style. With Jeromes, customers can find the same style as top retail stores that compare in style, while being incomparable with an unbeatable price. Their prices are negotiated with the manufacturers directly to provide the best possible prices, everyday.
The fact that Jeromes continues to expand while other stores in the furniture industry close is a testament to our customer service and incredible prices, as well as the loyalty of our customers, Goodman said.
Flocke & Avoyer Commercial Real Estate and SENTRE Partners represented Jeromes in the lease transaction.
January 28,
2010 by in UnCategorized
By Home Furnishings Business in Executive Changes on January 29, 2010
The chief merchandising executive for Cost Plus/World Market (CPWM) has left the retailer, and the company has made several organizational changes.
George Whitney, senior vice president of merchandising, has left the company. Moving forward, Marilyn Incerty has been named vice president of home and trend development, and Matt Gee continues in his role as vice president of consumables.
Both Incerty and Gee report to Barry Feld, president and chief executive officer of Cost Plus.
Incerty joined the retailer in March 2007 as director of merchandising. She has more than 26 years of retail experience, and prior to joining the company, Incerty held divisional level positions with Pottery Barn, Levi Strauss and Gymboree.
Gee joined Cost Plus in March 2007 as vice president of consumables. He has more than 22 years retail experience and has held senior level positions at various food and beverage retailers. Prior to joining the company, Gee was vice president of merchandising for Beverages & More.
Jeff Turner has been promoted to the position of executive vice president of operations and chief information office, and Laura Sites-Reynolds has been named senior vice president of inventory management.
Turner is responsible for information technology, store operations, logistics and the distribution centers. He joined Cost Plus in September 2007 as senior vice president, chief information officer, and has 26 years of information technology experience, as well as 18 years of retail experience. Prior to joining the company, Turner was senior vice president, chief information officer for Restoration Hardware.
Sites-Reynolds joined Cost Plus in March 2006 as vice president of inventory management. Sites-Reynolds has more than 24 years of retail experience. Prior to joining the retailer, she was vice president of inventory management and supply chain for Design Within Reach.
Both Turner and Sites-Reynolds report to Feld.
"The strategic changes to our organizational structure are designed to streamline sourcing and development processes, recognizing that we have two distinct businesses, home and consumables, and increase the speed by which we can profitably bring unique and authentic products from over 50 countries to our retail stores," Feld said.
Cost Plus has 268 stores in 30 states.
January 28,
2010 by in UnCategorized
By Home Furnishings Business in Bedding on January 29, 2010
Houston-based Mattress Firm has brought back its founder and one of the original owners to spearhead the retailer's new franchise program.
Harry Roberts, the founder, and his brother Charlie Roberts, who joined the company shortly after it was founded, left the company about 10 years ago. Now they are back and, in addition to managing the company's franchise program, plan to open a Mattress Firm franchise operation together.
We are extremely excited to welcome Harry and Charlie back into the Mattress Firm fold, said Gary Fazio, CEO of Mattress Firm. The Roberts brothers are well known in the industry and have a tremendous amount of experience in driving growth through franchising. I am confident that their experience, combined with a unique understanding of the Mattress Firm brand, will make them extremely valuable assets to our franchise development team.
The franchise development team at Mattress Firm also includes another early Mattress Firm partner who has recently returned. Philip Busker was one of Mattress Firms first franchisees. Later, Busker formed Mattress Pro, a 36-location mattress retailer that was acquired by Mattress Firm in 2007. After rejoining Mattress Firm following the acquisition, Busker was named national director of franchise development, and he joined Jason Goodman, manager of franchising for Mattress Firm, to begin a revival of the companys franchise model.
The result is a complete turnkey package offering assistance with everything from operations to sales to store design to assist franchisees as they work to build market leadership. The franchise package also includes systems, distribution and marketing strategies to support partners. While the opportunity to return to the company they helped create was appealing, the Robertses said it was the chance to help spearhead the accelerated re-launch of the franchise program that was truly exciting.
When Charlie and I sat down to discuss what we wanted to do next, we had plenty of opportunities to consider, Harry Roberts said. But Mattress Firm offered us something unique, the opportunity to help others become entrepreneurs through the franchise program, which is something that is a great passion for both of us, while also helping grow a company which is near and dear to our hearts; it was an opportunity that we just couldnt pass up.
Franchisees are typically pretty much left to their own devices, with only minimal support from the corporate office, but with the Mattress Firm model, nothing could be further from the truth, added Charlie Roberts. In fact, Mattress Firms franchising program is one of the most comprehensive programs I have seen, offering an incredible amount of support for franchises. I am especially excited about the new satellite franchise model which offers potential franchisees an affordable option and even greater level of support as they set out to build their own business.
Since renewing its focus on franchising as a growth opportunity and introducing a new franchise model, Mattress Firm has signed three new franchisees. The first, based in Hilton Head, SC, has recently announced plans to expand into the Savannah, Ga., market. The second started in Chattanooga, Tenn., and has expanded into Knoxville, Tenn., and is exploring additional territories for future growth. The newest franchisee, Chuck Dawson, a former senior executive at Sealy, signed a deal to develop the Milwaukee and Madison, Wis. markets with plans to open multiple stores this year. Dawsons first store is scheduled to open Feb. 1.
The satellite franchise program is a new concept from Mattress Firm. Satellite franchisees will have the opportunity to open new stores within a close proximity of the current corporate-owned markets. These locations will be within 100 miles of a Mattress Firm core market, too far to be effectively managed by the corporate office, but still close enough to receive significant support from corporate marketing efforts and distribution.
Mattress Firm, founded in 1986, has more than 500 stores in 38 markets.
January 28,
2010 by in UnCategorized
By Home Furnishings Business in Executive Changes on January 29, 2010
Sourcing veteran Tony Ferguson has joined case goods and motion upholstery vendor Home Meridian International as vice president of operations for Southeast Asia.
Reporting to HMI's COO, Lamont Hope, Ferguson will manage operations in all all Asian countries excluding China. Those countries include Vietnam, the Philippines and Malaysia. Ferguson has responsibility for product sourcing, quality, and supply chain management for four of five HMI companies (Pulaski Furniture, Samuel Lawrence Furniture, Creations and Prime Resources International), and will work out of Home Meridian's facility in Ho Chi Minh City.
Ferguson is an engineer by trade with more than 30 years of furniture operations experience at Standard Furniture, Hammary, Aspen, Bassett and most recently as director of manufacturing and quality services for North America sourcing at Kimball International. HMI Asia is organized into groups of factories. Each business unit is assigned a dedicated team that is responsible for all aspects of supply chain management which includes a quality team in each factory, a dedicated product development person to make samples, and an analyst who measures performance against best practices. Each of these business units excluding China will report to Tony Ferguson.
"Tony is an experienced Far East manager with a proven track record," said George Revington, president and CEO of Home Meridian International. "He will spearhead our plans to grow our Asian organization and expand our sourcing base in Southeast Asia. The winners in the next generation of furniture marketing will be those that can provide superior value, consistent quality, and deliver when promised. Superior supply chain management requires sophisticated integrated systems and exceptional people to manage them. Tony is one of those exceptional people and we have the systems in place to manage business growth.
Hope said Ferguson has the experience and contacts to grow Home Meridian's solid base of off-shore business and to bring the company's supply chain management to the next level.
"We are staffing in Asia to improve our flow and quality," Hope said. "Tony has a reputation for being an excellent communicator and team builder. He has managed large staffs, has a consistent record of accomplishment, and has successfully transitioned manufacturing from one country to another. He is a perfect fit for our needs."
"My passion is to be the best in the business for our dealers, our Asian partners and HMI stakeholders," Ferguson said. "We must deliver product that meets specific price points, deliver them on time, and with superior quality. Living here where the manufacturing is done, with the relationships we have developed, we truly believe we can deliver this to HMI customers."