November 5,
2007 by in UnCategorized 
By Home Furnishings Business in on November 2007
Furniture Row Cos. is expanding its store network again.
The growing retailer is opening a Furniture Row Shopping Center in Johnson City, Tenn. The company’s strip center will include its four specialty furniture stores—Oak Express, Bedroom Expressions, Sofa Mart and Denver Mattress Co. The center is set to open Nov. 17.
“The center will bring a unique furniture shopping experience to the area,” said Bill McKendry, marketing director for the Denver-based Furniture Row. “Unlike other furnishings retailers, our centers have four specialty stores in one destination.”
November 5,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on November 2007
The owners of the Ashley Furniture HomeStore in San Angelo, Texas, closed a deal Thursday to acquire two more Ashley stores located in Abilene and Wichita Falls, Texas, according to a Monday report in the Times Record News of Wichita Falls.
San Angelo businessmen Tad Lanford and Rodney Bratton opened their San Angelo Ashley store in 2006.
“We are very excited to be in Wichita Falls,” Lanford told the newspaper. “Wichita Falls is a much larger market than San Angelo. We have opportunities there that we don’t have in San Angelo. It is a great facility and location.”
Lanford said Steve Fairchild will continue to serve as the general manager of the Wichita Falls store.
Lanford and Bratton also own a television, appliance and furniture store in San Angelo under the Bratton’s Bargain City name, according to the report.
November 4,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on November 2007
Furniture Row, a Denver-based retailer with more than 330 stores, announced Friday that it has signed a three-year contract with Nascar veteran Joe Nemechek to drive the company’s entry in Nascar Nextel Cup, the sport’s top series.
Nemechek has four victories in the top level of Nascar racing since 1999. He has been a Nextel Cup driver since 1994 after entering the lower-level Busch Series as Rookie of the Year in 1990 and capturing the Busch Series Championship in 1992.
Furniture Row has been one of the only sponsors to own and operate its own Nascar team since it entered the sport in 2005. Like most new teams, it has struggled by failing to qualify for numerous races this year. Since joining the team, Nemechek has qualified for all but two of the nine races he has attempted to enter. Long before joining Furniture Row, he gained the nickname “Front Row Joe” on the way to winning nine pole awards as the fastest qualifier in those events.
Furniture Row announced plans earlier this year to expand the race team to two cars for 2008 by seeking an additional sponsor for Nemechek’s 78 car and moving Furniture Row’s sponsorship to a second car.
“We’re thrilled to have (Nemechek) on board,” said Team Manager Joe Garone. “We’re geared up to win in 2008, and are planning for growth as we enter or third Nextel Cup season,” he said, calling Nemechek “the best qualifier and the best average finisher of available drivers.”
November 4,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on November 2007
Stung by the housing slump, Mattress Gallery, a Los Angeles-based chain of 52 stores, announced Friday it has submitted a plan of Chapter 11 reorganization in the U.S. Bankruptcy Court in Delaware.
With court approval, the plan’s provision for debtor-in-possession financing would allow it to continue normal operations and extend its relationships with principal vendors. Mattress Gallery CEO Jim Ristas said he “look(s) forward to emerging from bankruptcy and operating Mattress Gallery in a new corporate structure with the additional resources of a strong operating partner going forward.”
A report published in the Los Angeles Times Saturday stated that Ortho Mattress, a Cerritos, Calif.-based retailer with more than 50 locations, plans a substantial investment in the the reorganized company.
November 4,
2007 by in UnCategorized
By Home Furnishings Business in on November 2007
New orders for residential furniture fell 3 percent in August 2007 compared to the same month last year, and remain 4 percent below the first eight months of 2006. That’s according to the October Furniture Insights report from the High Point accounting and furniture industry consultancy Smith Leonard.
For comparative purposes, August 2006 orders were 7 percent lower than August 2005, and at this time last year, new orders were off 1 percent from the first eight months of 2005.
After a majority of participants reporting increased order rates for July, the participants’ orders flipped in August with approximately 64 percent of the participants reporting declines in orders compared to August 2006. As with the July results, approximately 70 percent of the participants reported lower orders year-to-date.
Shipments in August were only off 1 percent from August 2006. August 2006 shipments were off 5 percent from August 2005. Only 53 percent of the participants reported lower shipments in August versus August 2006. Shipments were 20 percent higher than July shipments, somewhat normal due to most companies only shipping three weeks in July.
Year-to-date, shipments remained 6 percent below August 2006. Similar to last month, shipments were lower for approximately 71 percent of the participants. Backlogs were 8 percent lower than August 2006 levels, the same as last month. With shipments higher than new orders, backlogs fell 6 percent from July’s backlogs.
Receivable levels fell 2 percent from last August, in line with sales for the month, but off a little compared to year-to-date sales. Timing of shipments and the volatility of shipments per month can impact these levels, but overall, they appear reasonable.
Inventories were 11 percent lower than last August, the same as last month compared to July 2006. Inventories were even with July 2007 levels. Approximately 70 percent of the participants reported lower inventory levels, in line with those reporting lower orders and shipments. It appears that most companies are not building inventories in anticipation of business picking up.
Factory payrolls were 7 percent lower than August 2006, up from 6 percent comparing July 2007 to July 2006. Payrolls were 16 percent higher than July, but this reflects the effects of the normal July shutdowns.
The number of factory employees was even with July 2007 but down 12 percent from last August. August 2006 employees were down 6 percent from August 2005, continuing to reflect plant closings and lower business volumes for domestic producers.
Last month Smith Leonard reported that July results had shown some improvements with hopes that the industry may have bottomed out, but those results were not a trend as orders in August fell 3 percent from August a year ago.
From Smith Leonard’s conversations with manufacturers and retailers, business in September and October has not improved significantly, but the report indicated High Point Market was surprisingly up beat, with exhibitors surprised at buyer attendance and mood, and many compliments on improvements at the market itself, particularly regarding transportation and entertainment.
Most retailers continue to say their business is very sluggish and many sales are coming from discounting.
Smith Leonard predicted sluggish business overall into 2008, but said certain niches still are doing well.