Daily News Archive
Brought to you by Home Furnishings Business
August 14,
2007 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on August 2007
Students heading for college will give a boost to furnishings sales this year, spending $5.43 billion in the category, according to results of a National Retail Federation survey released Tuesday.
Overall, NRF’s 2007 Consumer Intentions and Actions Survey indicates students and families will spend $47.3 billion gearing up for college. Students and their parents will spend a combined average of $956.93 on back-to-college merchandise, up from last year’s $880.52.
The survey showed that thanks to trendy in-store promotions and youth-focused merchandise, dorm and apartment furnishings are now becoming increasingly important to students. Spending in this category is expected to reach $5.43 billion, up from last year’s $3.82 billion. Young adults ages 18 to 24 will shell out the most in this category, spending an average of $158.61.
The NRF 2007 Back-to-College Consumer Intentions and Actions Survey was designed to gauge consumer behavior and shopping trends related to the back-to-school season. The survey, which polled 7,710 consumers, was conducted for NRF by BIGresearch August 1-7. The consumer poll has a margin of error of plus or minus 1 percent.
August 14,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2007
Restoration Hardware said Tuesday that it is eliminating about 100 positions at its corporate headquarters in Corte Madera, Calif.
The company’s statement said the move was in response to challenging market conditions in the home furnishings sector. The move is expected to save the company $3.5 million after severance and outplacement charges for the balance of the year, and about $9 million annually.
“This is a difficult but necessary decision that will enable us to operate more efficiently in the current environment,” said Gary Friedman, president and chief executive officer. “We believe the cost-cutting actions we have announced this year, combined with our strategic growth and supply chain initiatives, will drive improved sales and profitability in the second half of 2007 compared to a year ago.”
Friedman said the company is committed to executing strategies to drive its growth and that it plans to continue with its brand extensions of Restoration Hardware Bed & Bath, Restoration Hardware Baby & Child and Restoration Hardware Trade.
“Despite the challenging circumstances we’re facing today, our team is focused and committed; we’re positioning the business to achieve our long-term revenue and operating margin goals,” he said.
In addition to its catalog and online business, Restoration Hardware has 102 retail stores and eight outlet stores in 30 states, the District of Columbia and Canada.
August 14,
2007 by in UnCategorized
By Home Furnishings Business in on August 2007
The U.S. Department of Labor announced Tuesday a National Emergency Grant of $617,515 to assist workers affected by the closure of Quaker Fabric Corp.’s plant in Fall River, Mass. The department certified on July 25 that workers at the site also are eligible for Trade Adjustment Assistance.
“This $617,515 grant will provide these workers with re-employment services to help them start new careers in growing industries,” said U.S. Secretary of Labor Elaine L. Chao.
On July 2, Quaker Fabric Corp. announced its intent to close in Fall River. More than 900 employees are affected by the company’s announcement.
The grant announced today will provide workers with services not covered under the TAA program, such as assessment, career counseling and job search assistance.
August 14,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2007
Macy’s will open a furniture clearance store in Aurora, Ill., later this year.
In addition, the department store is building a new distribution center in Minooka, Ill., to replace its existing center in Chicago, which will be closed in the spring. The company currently operates a clearance center at its Chicago distribution center.
According to the
Chicago Sun-Times, the new clearance store will employ 10 people. The new distribution center will employ 150 full-time and 60 part-time workers.
August 14,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on August 2007
Atlanta-based Simmons, one of the nation’s largest mattress manufacturers, said Tuesday that net sales in its second quarter increased 15.2 percent to $277.9 million. Net income for the second quarter that ended June 30 was $0.9 million, down from $2.1 million a year earlier.
“In the second quarter and first half of this year our business operated at record sales levels despite a relatively soft home furnishings sales environment,” said Chairman and CEO Charlie Eitel. “Our year-to-date sales growth of 14.3 percent has been driven principally by effective marketing and our decision to be competitive at a broad range of retail price points. This has resulted in strong demand for our U.S. products, especially our Beautyrest brand, and we believe a sizable gain in market share.”
He said operating margins in the first half of the year were negatively impacted by roll-out costs tied to the transition to a new Beautyrest line and compliance with new flame resistance standards that became effective last month.