Daily News Archive
Brought to you by Home Furnishings Business
June 2,
2008 by in UnCategorized 
By Home Furnishings Business in on June 2008
New orders for furniture in March fell 11 percent compared to the same month last year, reflecting ongoing sluggishness in the furniture industry. That’s according to Furniture Insights, the monthly survey of residential furniture manufacturers and distributors from the High Point accounting firm and consultant Smith Leonard.
That was on top of poor performance in March 2007, when orders were 4 percent lower than March 2006. New orders for March 2008 were 2 percent higher than February. This increase was somewhat lower than normal as March is typically higher than February.
Year-to-date, new orders were reported to be 8 percent lower than the first quarter of 2007. The first quarter of 2007 was 5 percent lower than the same quarter in 2006, resulting in a 12 percent decline over the two year period. For the month, 83 percent of the participants reported lower orders compared to last year. With only a few exceptions, those reporting increases were only up very slightly. For the quarter, just over 80 percent of the participants have reported declines in orders compared to the previous year first quarter.
March 2008 shipments fell 9 percent compared to March 2007, when shipments declined 6 percent from March 2006. Similar to orders, 83 percent of the participants reported lower shipments. Shipments were 5 percent higher than February 2008.
Year-to-date, shipments are now 7 percent lower than the first quarter of 2007, when they were down 6 percent from 2006. Some 78 percent of the participants reported lower shipments in the first quarter. With orders down more than shipments so far this year, Smith Leonard does not expect shipments to improve significantly in April.
With shipments exceeding orders, backlogs fell again in March, down 2 percent from February, but down 10 percent from March 2007.
Receivable levels fell 6 percent from March 2007 and were down 4 percent compared to February, even though shipments were higher in March than they were in February. With shipments down 7 percent year-to-date, the 6 percent decline in receivables appears to be in line after being somewhat out of line in January.
Inventory levels fell 7 percent in March compared to March 2007, in line with the decline in shipments. While the decline appears in line with shipments, the survey report questioned, with so many of the shipments now direct from Asia to retailers, why inventories are as much in line as they appear to be.
The number of factory employees fell 1 percent from February and 7 percent from last March. In February 2008, the number of factory employees was down 8 percent from February 2007. Factory payrolls fell 13 percent compared to March 2007, when payrolls were down 11 percent from March 2006.
While factory payrolls were 9 percent higher than February, that was likely the result of more days in the month. Year-to-date, factory payrolls are down 10 percent from last year.
On an unadjusted basis, sales at furniture and home furnishings stores were down 3.4 percent from March and down 2.7 percent from April a year ago. For the first four months of the year, sales were reported 4.3 percent lower than the same period a year ago.
Smith Leonard hopes that April High Point Market orders will help to improve results over the next few months, but with few reports of good business and with orders down so much, believes it will take some time for shipments to catch up.
“Our hopes that we had somewhat bottomed out last year and might be somewhat flat in 2008 while waiting on economic conditions to improve, have not been realized so far this year,” the report read. “It is pretty obvious that inflation in so many staple areas is hurting retail. ... We believe it is just going to take time to get through all of this. The housing/ mortgage situation is bad enough, but adding to that are the problems that oil prices are creating with not only gas prices but also so many other products increasing as well, as freight costs are adding to most everything. Consumers’ disposable income is being chewed up.”
June 2,
2008 by in UnCategorized
By Home Furnishings Business in Case Goods on June 2008
Industry veteran Donald Eisen, through his company, Collage Marketing, has launched the Platinum Furniture Collection, which will serve as the exclusive sales and marketing arm for a Chinese manufacturer with four factories making case goods upholstery and contract furniture.
Eisen spent 25 years as a vice president and retail merchandiser for Englanders/Worrells, where he ran the South Florida division. He then spent six years as executive vice president of Collezione Europa and the last four years as president of a rep group covering Arizona, Nevada and Utah.
Platinum will debut at the Las Vegas Market this July in space 226 of the World Market Center’s Building B. The initial offering will include arch bookcases, ladder bookcase wall, two bookcase/flatscreen walls, an executive desk, two complete bedrooms and a media wall. Dining room will debut in High Point this Fall Market.
“We had a sample ladder library wall at High Point for several accounts to see that was received with a lot of enthusiasm,” Eisen said. “All products that we produce will be all wood, no resin, no mdf, beautiful hand-rubbed designer finishes, and include all of the quality details that high-end stores would expect. Our pricing will be an excellent value, so the dealer can make the highest margin possible and be profitable to survive this economy.”
Eisen said Platinum will utilize the best in sophisticated designs for the American market. Offerings include a platform bed with bunching cabinets. Samples are now being made, and Eisen said the company has commitments from two major retailers. Platinum can also do single-order total custom work as well as make exclusive designs for customers.
Another goal is to be pro-retailer and pro-rep.
“In a time when companies have fired reps and cut commissions we are offering top earnings and will only hire reps that will make the commitment to work with limited distribution and give sales meetings and store service to grow the business,” Eisen said. “We are not looking to sell everyone. At first we will offer mixed containers and net 30-day billing to qualified retailers. There is a U.S. warehouse facility in the West Coast. We have hired reps for California, Texas , Florida and the Midwest but have many territories open. There will be no ‘house’ accounts.”
Eisen said that as a former retailer, he understands customer needs.
“We will not sell the discount stores,” he said. “I have target customers that I want to build a relationship with. For the first time, I can make commitments that I know will be followed. Platinum will not be the biggest. Our goal is to be the best.”
For further information, please call (702) 234-1318.
June 1,
2008 by in UnCategorized
By Home Furnishings Business in on June 2008
• Consumer spending on home furnishings inched up in April to $418.4 billion, up 1.5 percent over April 2007 spending. Compared with last month, home furnishings spending was up 1 percent.
Spending on furniture and bedding slipped in April, down 1.7 percent from this time last year to $85.4 billion. Measured against March spending, consumers spent 0.2 percent more on furniture and bedding in April.
The U.S. Department of Commerce (DOC) tracks consumer spending. Included in home furnishings is virtually everything in consumer homes, including home textiles, consumer electronics, home accents and major appliances. Antiques and valuable art are not included.
• Sales of new homes in April, on a seasonally adjusted basis, increased 3.3 percent compared with the prior month, surprising many analysts who had predicted sales would slip versus March sales. The U.S. Department of Housing and Urban Development, in a joint release with the U.S. Census Bureau, announced preliminary results of 526,000 new home sales in April.
New homes sales skyrocketed in the Northeast, which posted a 41.7 percent increase in April measured against March sales. Sales in the Midwest increased 5.8 percent and were up 8.3 percent in the West. New home sales in the South slipped 2.4 percent.
Looking at year-over-year sales figures, new home sales fell 42 percent in April, with the Northeast taking the biggest hit, plummeting 58 percent compared with April of 2007. In the Midwest, new homes sales fell 39.7 percent, sales in the South were down 41.7 percent and new home sales in the West declined 37.8 percent.
• Paralleling new home sales results, the supply of new home sales available for sale, measured in the number of months on the market, decreased 4.5 percent to 10.6 months in April compared with March. Measured against year-ago numbers, the supply of new homes on the market increased 43.2 percent.
Weekly Review of Economic News (WREN) reports are summaries of recently-released economic statistical data that affect the home furnishings industry. WREN reports are compiled by
HFB Research Editor Janice Chamberlain.
June 1,
2008 by in UnCategorized
By Home Furnishings Business in Bedding on June 2008
In a new mattress survey, 57 percent of respondents said their health improved after they began sleeping on a new mattress, and 76 percent said the quality of their sleep had been enhanced.
The Mattress Firm, Houston, which operates 480 stores, commissioned the Harris Interactive survey of 2,239 adults, including 1,924 who had purchased a new mattress. Additionally, 41 percent of employed adults say they became a better employee after bringing home a new mattress. Asked why they purchased a new mattress, 47 percent did so mainly because their old mattress had become uncomfortable.
“On average a mattress should be replaced about every seven to eight years, but the average consumer replaces it every decade or more and, in turn, likely spends many nights not getting the deep, restorative sleep that they need,” said Gary Fazio, CEO of Mattress Firm. “We spend one-third of our lives sleeping and finding the right mattress can be the key to making sure that we get the kind of quality sleep we need to function optimally during the other two-thirds of our lives that we are awake.”
June 1,
2008 by in UnCategorized
By Home Furnishings Business in Merchandising on June 2008
Broyhill Home Furnishings has named Tom Little vice president of sales/merchandising, a new position at the Furniture Brands International company. He reports to Anthony Teague, Broyhill vice president of upholstery merchandising.
Previously, Little was vice president of sales for Craftmaster Furniture, overseeing sales, marketing and merchandising for the company’s upholstery line. His other industry experience includes sales for Bassett Upholstery.
Little will work closely with Teague and Deitra Smith, merchandise manager – upholstery, to better penetrate other product categories, continue to diversify the upholstery presentation and to broaden the Broyhill customer base. He will play an integral role in the company’s Design Center of Excellence, which focuses on the development of more relevant, coordinated product across all categories and targets ways to help the company’s retail partners sell increasingly greater volumes of Broyhill furniture.
“Our upholstery program is experiencing explosive growth,” said Jeff Cook, president of Broyhill, Lenoir, N.C. “We created Tom’s position to be sure we continue to introduce the right product at the right time and to do that by directly integrating the feedback of the sales team with the creative juices of the merchandising team. Tom is one of the few individuals in the industry who has a demonstrated track record of combining both sales and merchandising skill sets and doing it well. He will be a powerful addition to our leadership team.”
Teague noted that Little has a strong sense of what’s happening at retail.
“He has developed solid relationships among retailers because he listens carefully, analyzes the needs of his customers and provides quick, reliable solutions,” Teague said. “He is well-connected, knowledgeable, hardworking and trustworthy.”
June 1,
2008 by in UnCategorized
By Home Furnishings Business in Furniture Retailing on June 2008
Bernie & Phyl’s Furniture, Norton, Mass., opened its sixth store over Memorial Day weekend in Hyannis, Mass.
“We are thrilled to be in Hyannis and overwhelmed by the support of customers who are so happy to have us here,” said Larry Rubin, CEO of Bernie & Phyl’s Furniture in a release. “This is a new, untapped market for us and we are excited to be bringing our stylish furniture, reasonable prices and exceptional customer service to the residents of Cape Cod and the islands.”
Bernie & Phyl’s was recently named the Massachusetts Family Business of the Year in the large company category. Last year, the company received for the second time the Better Business Bureau’s Local Torch Award for Excellence.
Bernie & Phyl’s Furniture has six stores in New England: Braintree, Mass.; Hyannis, Mass.; Nashua, N.H.; Raynham, Mass.; Saugus, Mass.; and Westboro, Mass.
June 1,
2008 by in UnCategorized
By Home Furnishings Business in on June 2008
A joint venture of five companies has been granted court approval to acquire the Sharper Image brand and other intellectual property for $49 million.
Hilco Consumer Capital, Gordan Brothers Brands, Bluestar Alliance, Windsong Brands and Crystal Capital have developed a global licensing strategy for wholesale, direct to retail, e-commerce and catalog business that will build on The Sharper Image’s upscale specialty positioning.
The new owners said they will close Sharper Image’s 86 remaining stores, and try to sell more than $50 million of inventory. Hilco and Gordon Brothers already have led liquidations at 96 other Sharper Image stores.
Jamie Salter, chief executive officer of Hilco Consumer Capital, said the group is moving forward to partner with licensees and retailers to introduce products under The Sharper Image name.
Sharper Image filed for Chapter 11 bankruptcy protection in February and was put up for sale in April.