February 4,
2007 by in UnCategorized 
By Home Furnishings Business in Bedding on February 2007
Linwood, Pa.-based Foamex International, the world’s largest producer of foam for furniture, bedding and other applications, announced Thursday that the U.S. Bankruptcy Court has set the stage for its emergence from Chapter 11 by approving its second amended joint plan for reorganization.
“Today’s announcement represents a significant and almost final milestone in Foamex’s Chapter 11 case,” said Raymond Mabus, chairman and CEO. He said the plan will enable Foamex to “emerge as a stronger, more competitive company that is better able to compete in the marketplace, invest in our operations and R&D efforts and provide our customers with the innovative solutions they need.”
The company said Foamex’s plan provides full recovery of holders of allowed claims. The company’s emergence from Chapter 11 is expected to occur on Feb. 12. In addition to producing comfort cushioning for furniture and bedding, Foamex serves the carpet cushion and automotive markets. It also manufactures high-performance polymers for diverse application in the industrial, aerospace, defense, electronics and computer industries.
February 4,
2007 by in UnCategorized
By Home Furnishings Business in Accessories on February 2007
Sarreid, Ltd., a Wilson, N.C.-based importer of decorative accessories, lighting and furniture, has teamed up with the Greensboro, N.C., public relations and event marketing firm Brand Communications.
The collaboration is an important part of Sarreid’s aggressive plan to increase sales, operating efficiencies and visibility as a furniture resource within the industry.
“Leslie (Newby) and her team’s expertise and professionalism have already begun to make valuable contributions to Sarreid’s expansion and visibility goals,” said Sarreid President Alex Sarratt. Newby is president and founder of Brand Communications. “We are looking forward to achieving our growth objectives in 2007 with the support of Brand Communications.”
Sarreid has seen significant growth in recent years as the 40-year-old importer has transitioned from an accessories and lighting company to a premier supplier of occasional furniture and solid wood case goods. While furniture now accounts for the bulk of Sarreid’s product offerings, the company continues to provide home décor products marketed in conjunction with its four lines of branded furniture, including the 300-piece Chatham Crossing collection, which will debut at the spring High Point Market.
“Sarreid is one of the few companies to sustain a progressive approach to the home furnishings business since its inception 40 years ago,” Newby said. “It is an honor to work with such a venerable industry pioneer.”
February 4,
2007 by in UnCategorized
By Home Furnishings Business in Case Goods on February 2007
O’Sullivan Industries, Lamar, Mo., will cut the pay of its 800 workers by 6.6 percent in March in a move company officials describe as a necessary, but temporary step in its turnaround plan, according to Associated Press reports. O’Sullivan, which makes ready-to-assemble furniture, announced the decision to employees Friday, saying both production workers and management-level personnel will see paycuts. The company’s factory in Lamar is its sole production facility after the company closed a smaller plant in Martinsville, Va., in mid-2006. In a written statement, Kelly Terry, O’Sullivan’s senior vice president of operations said the company tried to avert paycuts. “We investigated every possibility we could to avoid reducing the compensation and benefits of our employees,” Terry said, according to the AP reports. “However, our turnaround plan requires additional temporary cuts to enable us to maintain the liquidity we need to operate efficiently. We plan to increase salary and wages to their former levels as soon as financial results allow.”
January 31,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on February 2007
For furniture stores, selling appliances means battling head-to-head with The Home Depot and Lowe’s. In recent years, the twin Goliaths of the $23 billion appliance category have used aggressive price cutting to gain a collective 25 percent share of the appliance market.
Furniture retailers that sell appliances say staying in the game has required them to adopt new tactics and focus on niches the nation’s largest appliance sellers overlook.
“I’d be the first to tell you, it’s getting more difficult to be successful at selling appliances, but we’ve been at it for a long time,” said Slug Hefner, owner of Hefner Furniture & Appliance in Poplar Bluff, Mo. “We may be a dying breed.”
At Badcock Furniture &more, President and Chief Executive Officer Don Marks said it has become difficult, if not impossible, for the chain’s 300 stores to match the prices of The Home Depot, Lowe’s or Best Buy. “It’s gotten to be a commodity business, and the big-box guys are trying to outgun each other with monthly specials. The small retailer caught in the middle of all that is going to get hurt,” said Marks, whose company is based in Mulberry, Fla.
With the buying power that comes with 300 stores, Badcock is less vulnerable to pricing pressures than a single mom-and-pop store, but still its appliance strategy is based on elements other than price. Under Badcock’s unique structure, dealers earn a 25 percent commission on everything they sell. Given that a chain like Best Buy sells appliances at a far lesser profit margin—of perhaps 15 percent—Badcock’s appliance prices are typically higher than big box competitors, Marks said.
Convenience and Credit
Yet, appliance and electronics still account for about one-third of Badcock’s sales in many of its stores because of the preferences of its rural and credit customers. “In rural towns, the customer may have to drive 50 to 100 miles to get that (big box) price, and they may not be able to get delivery,” he said. “We also carry our own credit, and customers who may have difficulty obtaining credit elsewhere come to us,” he said. “It’s a tremendous service for the customer who may want it from a credit standpoint and a tremendous convenience for customers in smaller towns.”
In-house credit is also a powerful diffrentiator for Tepperman’s Furniture near Windsor, Ontario. Credit is one of the tools it has been using to counter competitors like The Home Depot, which has been active in the Canadian market for some time. Before the big-box retailer arrived, Tepperman’s completed a shift away from lower-end appliances to state-of-the art units that are carefully merchandised to “showcase a lifestyle look rather than lines of white fridges,” said Andrew Tepperman, president of the family-owned retailer.
He said Tepperman’s stands out from the big box crowd with next-day delivery on in-stock items and concientious delivery drivers. Whether it’s an appliance or a furniture purchase, Tepperman’s delivery crews protect the purchaser’s floors by laying down runners, and wear boot covers to avoid tracking dirt.
At AVB Brand Source in Anaheim, Calif., a buying group with $10 billion in purchasing power, Chief Executive Officer Bob Lawrence said that while the number of retailers selling both furniture and appliances has declined over the past decade, their numbers have stabilized in recent years. He said appliances still represent a solid opportunity for some furniture retailers, and cites large furniture retailers chains like R.C. Willey and Nebraska Furniture Mart as the most successful examples. “The beauty of it is those stores are a one-stop shop .... It’s much easier for established outlets than somebody who is going to jump into the business today.”
Perception of Value
Hefner said his sales staff was worried when a Lowe’s store opened near one of his two locations in 2005. While Hefner’s sales associates urged him to lower prices, he instead changed the delivery policies of his two stores. “We now have a take-with price and a stepped-up price that includes (appliance) delivery and installation. Lowe’s doesn’t have free delivery and they don’t have a service department like we do,” he said, adding that Hefner’s appliance sales remain strong. “I think furniture stores that sell appliances can compete, but the perception of value is what the challenge is because Lowe’s is constantly on TV.”
Hefner said his stores also have a dedicated appliance service department that helps set Hefner stores apart from larger competitors, which typically outsource repairs.
At Badcock, Marks said the company has to be careful in its advertising to avoid featuring appliances that may cost more than featured products at big-box stores. “The consumer may believe that what you’re selling appliances for is higher than at The Home Depot or Lowe’s down the street, even if they’re not. Consequently, they may think your furniture prices are high, too, even if they’re not.”
Appliance-Furniture Synergy
Marks said appliances can lead to furniture sales among credit customers who make a fixed payment every month, including many customers who bring their checks to a Badcock store each month. “When they’ve paid down their balance a little bit, they can buy furniture and it won’t even raise their monthly payment,” he said. “The credit business is a large driver for us.”
Hefner says people are often purchasing appliances for new homes, so many have a need for furniture, too. “You can use it as an enticement,” he said. “If their main purchase is furniture, a salesman who is really on his A game can tell them that they can save a (future) delivery charge by purchasing an appliance at the same time.”
Still, it can be challenging to have sales associates who are skilled at selling both furniture and appliances, Lawrence said. “With furniture, you’re selling fashion, but with appliances, it’s technology you’re selling. It’s an inside story versus selling a fashion item.”
The salespeople at Tepperman’s are dedicated to either furniture or appliances, and the retailer sees advantages in offering furniture, appliances and electronics under one roof. “Very few of our customers buy only one category from us,” said Noah Tepperman, treasurer and director of customer care. “Many have either opened a Tepperman’s credit account or are receiving one of our preferred customer (mailings). We’re continually working to create new compelling reasons why Tepperman’s can help you, whether you need furniture, appliances or electronics.”
January 31,
2007 by in UnCategorized
By Home Furnishings Business in Upholstery on February 2007
It was only a matter of time before style guru Barbara Smith—a woman the Wall Street Journal has called “one of the most formidable rivals of Martha Stewart”—found a partner in the home furnishings business. The former model and current star of “B. Smith With Style” on cable network TV One recently announced a deal with upholstery supplier Clayton Marcus, which will introduce three lines in March—two inspired by her city and country homes, and one by her world travels.
Both B. Smith and Clayton Marcus, a division of La-Z-Boy, tout their partnership as groundbreaking, in that she will be the first African-American woman with her own furniture line.
With B. on board, Clayton Marcus will enjoy the attention of fans who have dined in her “B. Smith” restaurants, watched her television show or used any of the many products with which she is associated—from B. Smith bedding at Bed Bath & Beyond to General Mill’s Betty Crocker cornbread and muffin mix. In addition, she is the author of two books on cooking and entertaining.
From her apartment overlooking New York’s Central Park, B. Smith took time to talk about her new venture in furniture, her recent visit to the Showtime fabric market in High Point and where her entrepreneurial spirit will take her next. Clayton Marcus is known for its more traditional lines, and your homes have a very contemporary feel. Why are you and the company a good fit?
I was so impressed with the quality of their product, but I thought I could expand on what they do. I’m doing three collections, drawing on my own homes. I have an apartment on Central Park South, and a home in Sag Harbor, in the Hamptons. And the third collection draws on my travels, from the time I was modeling. I also have had a television show for eight years. People have seen me in beautiful locations, in my restaurants, in my homes—and I’ve been in their homes. I bring a loyal consumer to Clayton Marcus.
What are these collections going to look like?
For the “Hamptons” collection, it’s not just my house I draw on. I also have a restaurant in Sag Harbor, in a marina. Where the house is more coastal, the restaurant is more nautical. I’m drawing from both of those looks.
If you look at my own “Central Park South” apartment I have a sectional, and sleek but comfortable side chairs. I’m still looking for fabrics, and waiting for some samples to come back from Showtime, but I’m thinking solid, tailored fabrics and muted tones. The look is more masculine than feminine.
Then there’s the “Global” collection. When I think of “Global” I think of patterns, some of them almost look playful. I think rich colors—the burgundy, the brown—like curry and spices.
Did you see anything at Showtime that really grabbed you? That’s a traditional market with a lot of floral prints.
I did see lots of florals, but I also saw textures, things with a little metallic feel, and things that fit into the Hamptons collection. There were two particular showrooms, though I don’t want to give names, which I know I’m going to go back and work with personally. We’re playing beat-the-clock because March will be here very soon.
What’s your target market?
My consumer is, say, 34 to 54. That’s a wider range than most people use, but I get the mother and the daughter. Anybody younger than 34 is buying a less-expensive product, and they’re still developing their style and taste. My customers can pick up my frames and put the upholstery they want on it and create their own personal look.
You’re a first—the first African-American woman to have a home
furnishings line. Why is this
meaningful to you and the industry?
Any type of a benchmark is important. It’s like Jackie Robinson. (Clayton Marcus) is my Branch Rickey. Hopefully the industry will see the validity of non-traditional viewpoints of style.
Your name graces seasonings, cornbread, restaurants, a television show, jewelry and now furniture. What’s next and what’s your ultimate goal?
I’m trying to write a new book on food. After that, one on interiors. The goal is to keep expanding into areas that fit the brand. We have had lamps at Bed Bath & Beyond. I’ve had throw rugs, bath rugs. I want to finish the room. I’m going into more cookware, perhaps framed art.
How do you counter the criticism that celebrities are slapping their names on anything and everything without really knowing the product?
It’s not that I’m just running around and putting my name on things just to put my name on it and not working on it. I put together trend boards. I create recipes. From the time I was in the fashion business, style is my life.