Daily News Archive
Brought to you by Home Furnishings Business
September 30,
2008 by in UnCategorized 
By Home Furnishings Business in on October 2008
Following a moderate improvement in August, the Conference Board Consumer Confidence Index inched up again in September, increasing to 59.8 from 58.5 (1985=100).
The Present Situation Index decreased to 58.8, its lowest level in more than a year, from 65 last month, but the Expectations Index increased to 60.5 from 54.1 in August, achieving its highest mark since January.
“September’s increase in the Consumer Confidence Index was due solely to an improvement in the short-term outlook,” said Lynn Franco, director of the Conference Board Consumer Research Center. “However, these results did not capture all of the tumultuous events in the financial sector this month, and until the dust settles a bit more, we will not know the full impact on consumers’ expectations.”
Consumers’ appraisal of current conditions eroded further in September, with those saying business conditions are “good” or “normal” slipping from 67.3 percent to 65.8 percent.
Short-term (six month) expectations improved, with 78.7 percent of consumers anticipating business conditions would be the same or better, measured against 74.8 percent in August.
Consumers’ purchasing plans for big-ticket items in the next six months took a downturn, with 4.9 percent planning on buying a car, off from 5.2 percent in August; 2.1 percent expecting to buy a home, down from 3.4 percent last month; and 28.2 percent anticipating buying a major appliance, off from 32.5 percent in August.
Five of the nine U.S. regions posted gains in the confidence for the month, led by the East South Central’s 15.9-point increase to 79.9 points. The other regions recording gains were Middle Atlantic (up 5.1 points to 50), East North Central (up 6.2 points to 45), South Atlantic (up 7.4 points to 63.7) and the Pacific (up 11.7 points to 61.7).
The Consumer Confidence Survey is based on a representative sample of 5,000 U.S. households. The cutoff date for Septembers preliminary results was Sept. 23.
September 30,
2008 by in UnCategorized
By Home Furnishings Business in Case Goods on October 2008
Hickory Chair announced Monday that it has achieved certification under the American Home Furnishings Alliance’s Enhancing Furniture’s Environment Culture (EFEC) program. AHFA created EFEC to assist furniture companies in evaluating their operations to ensure continuous improvement of their environmental stewardship.
Hickory Chair is one of six furniture companies with a total of 14 manufacturing facilities that are now EFEC-certified. EFEC, a voluntary environmental management system for furniture manufacturers, requires certified companies to use management tools that help the company integrate environmental concerns into daily business practices resulting in better environmental performance and improved profitability for the company.
Hickory Chair also has an entry in the AFHA’s Sage Award competition. Winners will have demonstrated wisdom, experience and leadership within the home furnishings industry in the areas of sustainable business practices, social responsibility and profitable growth.
“Hickory Chair has demonstrated great visionary leadership in its efforts to move beyond compliance to effective environmental stewardship,” said Bill Perdue, AHFA’s vice president of environmental affairs. “By embracing the core values of EFEC, the company is creating a corporate culture that will emphasize sustainable business practices and focus on continuous improvement that will result in a significant reduction of its environmental footprint.”
Hickory Chair has developed an environmental stewardship program called EDGE (Employees Dedicated to Growth and Excellence) that guides all activities related to reducing the company’s environmental footprint and implementation of sustainable business practices.
President Jay Reardon said, “Our goal is to recycle and repurpose all of our waste materials. Through EDGE, our employees are looking at ways to redesign our processes such that waste is prevented from being created in the first place.”
Donna Musick, Hickory Chair’s environmental coordinator added, “The improvements generated by EDGE have made a tremendous difference on our ability to positively impact the environment, and can be grouped into three areas: better machine utilization which reduced energy consumption, process improvements that eliminated additional work or wasted materials, and the elimination of non-value added operations which improved productivity and reduced energy and materials usage, providing better values without compromise for our customers.”
Hickory Chair’s specific actions include:
• Domestic wood purchased from sustainable/renewable sources.
• Beginning in 2007, catalogs were printed by a firm that meets FSC (Forest Sustainability Council) certification and are printed on paper that also meets FSC certification. Other printed products came from well-managed forests and recyclable wood fiber.
• Many of the fabrics offered are made from 100 percent natural/organic fibers.
• Installation of new insulation and heat reflective roofing to reduce energy costs.
• Compressors have been updated to eliminate the need for a water cooling system, resulting in water conservation.
• Wood dust is the primary fuel source for their boiler for the manufacturing process and facility heating, thus avoiding putting more than 2000 tons of wood biomass in the landfill.
September 30,
2008 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on October 2008
Cynthia Logan has joined High Point-based Profitability Consulting Group to add an office in the Denver, Col., area for the furniture retail consultant.
Logan came to PCG with more than 10 years of experience in the home furnishings industry as a store owner/general manager, and as field operations consultant for a national home furnishings retail chain.
At PCG, Logan will consult with home furnishings retailers in the United States and Canada on merchandising, financial analysis, and exit planning matters.
She holds a bachelor’s degree in business from the University of Colorado and an M.S.A. in Business from the University of Notre Dame.
September 30,
2008 by in UnCategorized
By Home Furnishings Business in on October 2008
Chromcraft Revington Inc., West Lafayette, Ind., announced Monday it will close its furniture plant in Lincolnton, N.C., by the end of November, and Lincolnton’s warehousing and distribution operations during the first half of 2009. Chromcraft also will reduce staffing at its administrative office there.
The moves will result in the layoff of around 185 employees.
The company intends to source its custom dining furniture produced at this site from various suppliers and cease upholstered furniture manufacturing.
Chromcraft Revington expects to incur total restructuring costs and related asset impairment charges of $5.5 million to $7 million pre-tax to write-down buildings, equipment and inventories and to record severance benefits, inventory relocation and other exit related costs. Third-quarter 2008 results are expected to include a pre-tax charge of $4.5 million to $5.5 million for asset impairments and inventory write-downs to anticipated net realizable value. A portion of these charges and expenses, resulting in cash expenditures ranging from $1 million to $1.5 million pre-tax, do not include expected cash proceeds from the sale of buildings and equipment ranging from $3.0 million to $3.5 million pre-tax. General, administrative and costs associated with the wind down of these operations will be recorded as incurred.
The restructuring charges associated with the asset impairment of buildings and equipment are expected to range from $3.5 million to $4 million pre-tax. In connection with the restructuring, a write-down of raw materials and in-process inventories, ranging from $1 million to $1.5 million pre-tax, is expected to be recognized to reflect anticipated net realizable value. In addition, severance for terminated employees, inventory relocation, and exit costs are expected to range from $1 million to $1.5 million pre-tax.
Chromcraft Revington’s residential brands under the CR-Home banner include Chromcraft, Peters-Revington, Silver Furniture, Cochrane and Sumter brand names. It sells commercial furniture under the Chromcraft brand name.
September 30,
2008 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on October 2008
Furnitureland South, the world’s largest furniture store, said its international sales team has sold more than $7.6 million in furniture to shoppers in more than 50 countries over the past two years.
Three recent orders—from Cyprus, Bermuda and the United Arab Emirates—totaled $379,000. Executives at the company said those large orders result from the company’s ability to ship internationally and cater to global customers wishing to outfit whole homes or furnish new businesses with the selection offered at the store that has 1.1 million square feet of showroom space.
“We are delighted to see such growth in our international sales division,” said Jason Harris, executive vice president, Furnitureland South. “Furnitureland South’s international sales and shipping teams offer unparalleled service to clients all over the world. We greatly value our customers everywhere and will continue to expand our international capabilities as we strengthen our reputation as a global brand.”
Furnitureland South’s experienced international sales team guides global clients throughout the purchasing process, beginning with assistance in planning their trip to the Jamestown, N.C., store and continuing with the matching of each client with a professional on-site interior designer, specially trained in international sales.
After the order has been processed, it is placed on a container and sent directly from Furnitureland South’s new $15 million distribution center. The new distribution center allows for the Furnitureland South international sales team and shipping team to process orders more quickly and respond to customer service issues directly.
A news release Tuesday gave specific examples of recent sales, including Socrates and Xenia Metaxas of Limassol, Cyprus, who spent a week with their four children at the Furnitureland South campus in August and purchased $179,000 worth of furniture for their homes and business.
Also, Bassam Hamade of Dubai recently purchased $100,000 in bedroom sets for both personal and business use. Susan Fairhurst of Bermuda purchased more than $100,000 worth of furniture to re-furnish her home after it was destroyed by a hurricane. She is planning to build a home in South Carolina and will consult with Furnitureland South on her new home, too.
Furnitureland South’s unique services to international clients includes shuttle service to and from local airports and hotels. Furnitureland South also offers to set up child care services for clients.