January 24,
2007 by in UnCategorized 
By Home Furnishings Business in Furniture Retailing on January 2007
Houston-based Mattress Firm, which operates more than 305 stores in 19 states, has been acquired by a Boston-based private equity firm, J.W. Childs Associates, and members of the chain’s management team.
The investors purchased the retailer from Sun Capital Partners, Boca Raton, Fla., which had acquired Mattress Firm in 2002. Terms of the deal were not disclosed. Mattress Firm CEO Gary Fazio, President Steve Stagner and other members of the management team are investors in the purchase and will continue to lead the company.
“J.W. Childs is a great partner for Mattress Firm, as their resources and vision for growth match our objective to become the nation’s leading mattress retailer,” Fazio said in an announcement Wednesday. “This ownership structure gives us capital for growth and the ability to continue the momentum we’ve established over the past several years.”
January 23,
2007 by in UnCategorized
By Home Furnishings Business in on January 2007
A North Carolina General Assembly study panel has proposed a package of incentives and tax breaks to help keep the state’s furniture industry competitive with lower-cost imports.
The study group recommended legislation that would exempt furniture plants from property taxes and give tax credits for job creation and expansion.
The commission also recommended that the state spend $2 million for a new furniture-technology center in Hickory and create a fund of up to $5 million to support the state’s furniture industry.
January 23,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on January 2007
The National Retail Federation has released its 2007 forecast, predicting retail industry sales (which exclude automobiles, gas stations, and restaurants) will increase 4.8 percent over last year.
According to its quarterly Retail Sales Outlook report, NRF expects subdued first half economic growth to give way to accelerated sales in the second half. The prediction excludes automobiles, gas stations and restaurants.
Retail sales increased 6.3 percent in 2006. The stronger-than-expected sales surge was fueled by robust consumer spending in the first half of the year. As expected, the sales picture weakened in the second half as consumer spending power was challenged by the housing slowdown, high energy costs and lackluster employment growth.
“This year, slow economic growth will be reflected in moderate consumer spending and retail sales gains,” said NRF Chief Economist Rosalind Wells. “The quarterly industry sales pattern will be the opposite of last year with modest gains early in the year and better increases in the second half.”
According to the association, industry sales gains of 3.8 percent in the first quarter should increase to 4.6 percent in the second, 5.2 percent in the third, and 5.7 percent in the final quarter. For the year as a whole, industry sales are expected to be up 4.8 percent.
Current retail trends will persist throughout the year. Luxury retailers will continue to outperform. Online shopping will continue to escalate. Retailers catering to the lower and mid-level income consumer will find achieving sales gains more challenging. Demand for merchandise related to the home will be impacted by a soft housing market.
January 23,
2007 by in UnCategorized
By Home Furnishings Business in Bedding on January 2007
Bedding manufacturers and retailers will like what a study published in the latest, Winter 2006 issue of the Journal of Chiropractic Medicine.
The study,“Subjective Rating of Perceived Back Pain, Stiffness and Sleep Quality Following Introduction of Medium-Firm Bedding Systems,” attributes significant improvements in back discomfort, sleep comfort, and quality to sleeping on a new mattress.
Researchers Bert Jacobson, EdD, Tia Wallace, MS, and Hugh Gemmell, DC, EdD of Oklahoma State University, took a group of 59 healthy participants (30 women and 29 men) and compared selected sleep variables in participants’ sleep on their own mattresses (at least five years or older) to sleep on new bedding systems
Results revealed significant improvements for participants regardless of age and weight in all the following areas of focus: lower back discomfort; spine stiffness; sleep quality; sleep comfort, and sleep efficiency.
“Largely from this study we have found that new bedding systems provide immediate and sustained benefits in sleep,” Jacobson commented. “More so, each week as the study progressed, participants noted an increased improvement in sleep quality and efficiency and in the other targeted variables, all attributed to the new sleep surface.”
Among immediate and significant improvements found were less back discomfort and stiffness. The study showed that the age of participants’ original mattresses was one of the stronger predictors of back stiffness.
According to the International Sleep Products Association, the Better Sleep Councils of the United States and Canada, and the European Bedding Industries’ Association the study is the first and only research of its kind; and that the study finally provides firm, scientific evidence of the critical link between mattress quality and sleep quality, as well as the importance of regular mattress replacement.
“Considering the increasing global sleep deficit, this is fantastic news for all consumers in search of viable solutions to improve sleep,” said ISPA Chair Kerry Tramel. “There is now definitive research that underscores the health benefits of sleeping on new bedding systems.”
In a recently published study in the Journal of Chiropractic Medicine titled,
The research found that participants with high back pain reported 63 percent improvement in back discomfort at the end of the study, said Dr. Stacy Irvine on behalf of BSC Canada. “When you couple this with the fact that back pain affects eight out of 10 people, it’s imperative for consumers to evaluate their mattress for optimum comfort and support on a regular basis, especially if they routinely experience back pain.”
The study also notes that sleep deficiency interferes with daytime activity, social interactions, mood, and even loss of work production further making the case that a new mattress can improve sleep quality and therefore overall quality-of-life for consumers.
January 23,
2007 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on January 2007
Ethan Allen, Danbury, Conn., said Wednesday that its its second-quarter profit declined 13 percent to $22.8 million in the quarter that ended Dec. 31. Net delivered sales totaled $257.4 million, down 7 percent from $276 million in the same period of 2005. Comparable Ethan Allen store sales decreased 8.5 percent during the period.
“We are pleased to report quarterly operating earnings of 14.2 percent of sales despite a soft home furnishings retail environment and challenging prior-year comparisons,” said Ethan Allen Chairman and CEO Farooq Kathwari. Looking ahead, he said, “We saw positive trends in comparable written sales during the month of December. We also recognize that the home furnishings retail environment, as a whole, remains uncertain. At this stage, due to the strong positioning of Ethan Allen at retail, we believe the current average of analyst estimates for the fiscal third quarter (ending) March 31, 2007 is within reach.”
According to Thomson Financial, analysts expect Ethan Allen’s third-quarter revenues to rise to $270 million, resulting in earnings per share of 70 cents, equaling its per-share earnings in the second quarter.