August 12,
2007 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on August 2007
For July 2007, month-to-month retailer purchasing volume jumped 7.74 percent over June’s volume. The July increase over June along with the June increase over May represents the first consecutive two-month purchasing increase in 2007.
Additionally, year-over-year retailer purchases jumped 26 percent in July 2007 compared to a very weak July of 2006 , when purchases dropped nearly 16 percent compared to 2005. As a result, July 2007 purchases trended closer to 2005 figures with a bump of 6 percent over that period two years ago. Year-to-date purchases trended higher at 8.97 percent ahead of last year.
Click
here for the complete view of the May report of the FurnishNet Index.
August 12,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on August 2007
Despite tough business conditions, furniture store sales for 2007 could beat earlier predictions compared with 2006 numbers, based on annualizing slight improvements in this year’s first quarter. That’s according to the Fall Business Outlook from the High Point Market Authority.
The authority compiles it’s twice-a-year forecast through economic data, and consultation with leading retailers who are bucking current trends, manufacturers and industry experts in a variety of fields to explore their strategies for success.
The report noted mixed overall economic indicators for the first half of the year. While the stock market is hitting record highs, home furnishings stocks are lagging.
On the bright side, unemployment sits at a very comfortable 4.5 percent, less than one point above the “full employment” level, and after two months of decline sent it to an April low of 106.3, the Consumer Confidence Index rose to 108.5 in May.
The prime interest rate, though, has held steady at 8.25 percent for the past six
months, a quarter point above its level of this time last year; and a near-4 percent increase in grocery costs since May has combined with high gas prices to make living expenses more daunting for consumers.
Sales of existing homes, perhaps the most critical indicator for the home furnishings industry, dropped another 2.6 percent in April, falling nearly 11 percent off of their April 2006 pace.
Still, the U.S. Department of Commerce reported that furniture store sales were slightly better in the first quarter of 2007 than they were for the same period last year. Averaging the annualized rate for the first three months of this year, indicates a healthy $64.9 billion, representing modest growth over the $61.8 billion average from the first quarter of 2006.
In April, the U.S. Census Bureau reported that “sales of new one-family houses in April 2007 were at a seasonally adjusted annual rate of 981,000... 10.6 percent (±11.8 percent) below the April 2006 estimate of 1,097,000.” Meanwhile, Furniture Digest’s Five Year Residential Furniture Industry Economic Forecast, compiled by Mann, Armistead and Epperson, suggested the industry “should receive some benefit in the second half of 2007 from increased housing activity,” but didn’t foresee “steadily building momentum” until 2008 and have pegged 2009 as the year of “solid recovery” for furniture sales.
For a complete look at the Fall 2007 Furniture Industry Business Outlook, click
here .
August 12,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on August 2007
Chino, Calif.-based Jacuzzi, which has become virtually synonymous with whirlpool baths and spas, is extending its brand into the mattress category.
Jacuzzi has teamed with Thurmo Medical Sleep Products of High Point, N.C., on a line of Jacuzzi Sleep Systems that include mattresses and sleep products using a proprietary gel visco-elastic memory foam. Jacuzzi Sleep Systems will be sold through upscale specialty bed stores, full-line furniture stores, department stores and interior designers.
“The Jacuzzi brand is known around the world for the highest quality innovative products that help people rest and rejuvenate in a luxurious and stylish manner,” said Jacuzzi Brands President and CEO Thomas Koos. “Upscale consumers indicated strong interest in purchasing luxury bedding under the Jacuzzi brand and with this license we will extend our outstanding health and wellness credentials to that important category.”
August 12,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on August 2007
Foamex, Linwood, Pa., a producer of foam for bedding, furniture, carpet cushion and automotive products, reported Friday that net sales in its second quarter declined 7 percent to $320.8 million, but its net income of $7.6 million increased dramatically from a $13.2 million net loss a year ago.
“Despite the soft market demand, Foamex was able to reduce net debt by $11 million,” said CEO John Johnson. “We anticipate continued debt paydown going forward. In addition, we continue to focus on reducing costs while increasing operating efficiencies throughout the company.”
The company recently reported plans to combine two factories to produce $5 million in annual savings. It also said it would sell its majority interest in Foamex Asia to a joint venture partner.
August 12,
2007 by in UnCategorized
By Home Furnishings Business in Mattresses on August 2007
Minneapolis-based Select Comfort announced Friday that it has renewed its partnership with Radisson Hotels & Resorts that now offers the bed retailer’s mattresses in most rooms in the United States, Canada and the Caribbean.
The new deal builds upon a 2004 agreement in which Radisson pledged to put more than 90,000 mattresses at hundreds of Radisson properties. A Radisson spokeswoman said Monday that up to 90 percent of rooms in North America and the Caribbean now have Select Comfort mattresses. More than 180 properties have the bed.
“We are very pleased about the new agreement because the Sleep Number bed has helped Radisson stand apart in the minds of frequent travelers,” said Nancy Johnson, Radisson’s executive vice president of full-service hotels.
Johnson said more than two-thirds of Radisson guests are aware of the Select Comfort brand, and guests rate “comfortable beds” as one of the strengths of Radisson properties.
Select Comfort’s mattresses are unlike traditional inner-spring mattresses, and use dual-adjustable air chambers that are adjustable to anyone’s preference via a Sleep Number setting. Select Comfort operates 460 stores across the United States and also sells through select bedding retailers.