Daily News Archive
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May 15,
2012 by in UnCategorized 
By Aggregated Content in on May 16, 2012
from http://c.moreover.com/click/here.pl?z6499499699&z=1250249030
Cost Plus Inc. (>> Cost Plus, Inc.) posted a slight loss in its fiscal first quarter, though core results topped expectations as the retailer's customers continued to spend more per visit. Cost Plus operates stores that sell a mix of home furnishings, accessories and gourmet food and wine at discount prices. Its fortunes have improved since its near-extinction during the depths of the financial crisis, when its shares were trading for less than $1 during parts of 2009. Improving results prompted Bed Bath & Beyond Inc. (BBBY) to make a cash tender for Cost Plus valued at about $550
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May 14,
2012 by in UnCategorized
By Home Furnishings Business in on May 2012
Before joining Home Furnishings Business, my retail experience in the furniture industry was my regular college summer job with Heilig-Meyers. Oh, how I enjoyed those days so much. I got to hang with the warehouse guysBuck, Cornell and Big John. They all were good people and taught me a lot.
While one of them did not know how to read or write, he was responsible for assembling everythingand I mean EVERYTHINGthat came in the door. His skill amazed me, and although he has passed, he will always have my respect. Those were good times!
I was hired to assist in the warehouse and do in-home deliveries. I quickly learned retailers wear a lot of hats. Before you know it, I was helping Big John put product on the floor, next was tagging the merchandise, then it was monitoring the weekly deliveries from the distribution center.
I also got a lesson in life on credit and collections. Heilig-Meyers was one of the last furniture companies to provide in-house financing to the consumer. I spent many hours calling past-due accounts, trying to get them to keep the promise they madepaying monthly and on time. To me, if you made that promise, well you damned well better keep it. Before I knew it, I was on my way to my first repo. You see, part of the in-house financing plan was if you dont pay for it, we will come and get it.
We made our way down the rural country roads in the repo truck, and for those who remember Heilig-Meyers, yes it was that hideous green. After a few miles in the country we came across the mailbox and long dirt path entrance. We were met by the mother of the gentleman we were chasing for payment. She explained that her son was not going to be able to make the payment and because she co-signed, she wanted us to take the merchandise back.
We were happy to oblige; it had been nearly five months since we received the last payment. She unlocked the door to his house and we went in for our items. She was hurrying us along because she expected him to be home shortly and didnt want us to get caught up with him ¦ to say the least, she anticipated trouble if he arrived. We snatched down a waterbed (the waterbed mattress had been replaced by a regular spring mattress so it went fast), grabbed a TV, and out the door we went. We reviewed our paperwork and noticed one additional item. I grabbed a couple of tools, crawled up an oil tank beside the house, and on to the roof I went. This was long before cable had made it to the rural areas ¦ yes, I was about to take back his TV antenna. I was okay with what my boss told me to do; he hadnt paid, so we needed to collect our stuff. And besides, his big floor model console TV was sitting in the pickup, so he certainly would not need an antenna!
My retail experiences didnt introduce me to the financing partners available today. Back then, I had no idea that any options were even available.
It kind of felt the same way when I joined HFB in April 2008; financing companies were running to get out of this industry. My discussions since still show its difficult for retailers to find good finance partners. There are a few around; the most visible seems to be GE Capital. I always see Susan Barnett and her team at Markets and industry events; they have remained a constant. Use this issue to educate yourself on the options you have and be sure to select a partner that is a good fit for you and your team. Good business partners are always tough to find, so we have provided you some good insight to consider.
Making the right choice is a must, or you could always take the in-house approach. If you select the latter, give me a call to discuss my experience on handling repossessions. Im sure to be able to provide you a couple of pointers and tricks I learned along the way!
May 14,
2012 by in UnCategorized
By Home Furnishings Business in on May 2012
In marked contrast to Januarys Las Vegas Market, at which numerous new products were unveiled, Aprils High Point Market was more about selling beds than the beds themselves.
A number of companies used High Point as an opportunity to talk about their story rather than introduce new mattresses. Of primary importance in telling those stories is a more aggressive utilization of social media such as Facebook, Twitter and Pinterest.
Facebook, in particular, is key to some mattress companies upcoming plans. They are going to utilize the social networking site to promote upcoming sales initiatives, giveaway contests, customer endorsements and anything else they can thrust upon the public to increase brand awareness and pull shoppers into bedding stores.
Heres a look at what was new in beddingincluding some new products as well as marketing programsat Aprils High Point Market.
Sealy announced the launch of its online Sealy Schwag Shop. Following the lead of its playfully suggestive Whatever you do in bed, Sealy supports it ad campaign, the shop will sell T-shirts and other wearables with the same edgy kind of bed-related humor. Made on a Sealy is an example of the slogans on the schwag, which will be heavily promoted on Sealys Facebook page, which now has over 251,000 fans.
The company also showcased its recently announced (at Las Vegas Market in January) Optimum line of specialty gel mattresses. The Optimum beds add OUTLAST material to gel-infused memory foam for an optimal, cooler sleeping temperature than that of regular memory foam beds. The beds, which will be supported with aggressive TV advertising and online promotion, rolled out to Midwest retailers in late April and will hit stores in the South in the spring.
Sertas big news at Market was the companys upcoming premiere its new TV commercial to feature its iconic sheep characters. The spot was filmed on location at Sertas headquarters building in Chicago. The company also showed its new Freestyle Pillow, which joins two previous pillows released under Sertas iComfort brandthe Scrunch and Contour Pillows. Also featured in Sertas High Point space was its iSeries innerspring beds. This line comes in a zippered-cover model priced from $1,799 to $2,499, a smooth-top mattress that comes in plush and firm for $1,499, and a quilted bed selling for $1,299 and $1,499.
Classic Brands introduced a new cover design added to its PostureCloud collection of gel foam mattresses. The design incorporates new ticking and construction, giving the beds a fresher, more contemporary look. The PostureCloud line will now be offered in three models: the 9-inch Essence, 11-inch Sanctuary and a new model, the 13-inch Ambiance. Each will have the lines new pindot ticking and blue design; the Sanctuary and Ambience will feature blue waved suede border designs. The company also announced the intro of its new Cool Gel Pillows, which will come in Alpine and Spirit styles. The Alpine is designed for stomach sleepers, with a slimmer height than the Sprit.
FXI Anatomic Global debuted its ANEW Series beds, which feature the companys proprietary Activus foam. The models incorporate up to six layers of foam to reduce joint pressure. The ANEW Series starts at $2,499 in queen. The company also introduced its first mattress designed specifically for adjustable bed frames, the Ascent 6, which features patent-pending technology enabling it to mimic the contour of an adjustable frame to eliminate gaps between bed and base. The Ascent 6 has 12 inches of Visco memory foam.
Gold Bond rolled out new gel foam mattresses as part of its five-model eco-friendly EcoSense line. The Cool Response Gel beds have an open-cell gel foam construction to blend the cool comfort of gel with the support benefits of latex. The three Cool Response models will range in price from $1,099 to $1,499 in queen. The nine-inch Azure model will have a three-inch layer of gel foam and a layer of AcellaFlex foam; the 11-inch Cobalt and 13-inch Sapphire models have additional layers of memory foam and transitional foam.
To commemorate the 129th anniversary of its founding, Jamison Bedding introduced the gel foam-encased Anniversary innerspring bed, available in Eurotop or tight-top styles and expected to retail for $599 in queen, reduced from its previous $799 price point. The company also premiered new Gel Comfort pillows and toppers, and is stepping up its use of new penguin mascot Captain Cool with a tropical-themed summer promotion program that features plushes of the character dressed in hula skirts and leis.
Magniflex unveiled its new UNO bed, a modular sleep system designed to work with all of the companys mattresses. UNO is an ergonomic system that can be constructed with either a spring base or wooden slats, and is available in wood, leather, eco-leather, metal or microfiber in a variety of colors. The systems headboard, legs and base are customizable, enabling it to be integrated into virtually any classic or contemporary room décor. UNO will retail starting at $2,799 in queen, which will include the frame and headboard. Magniflex also showed its revamped Memoform Snooze high-profile mattress collection, which was rolled out at Januarys Las Vegas Market but now has an improved top and new design based on comments from Market attendees.
The main announcement from Pure Latex Bliss (PLB) was the latex bedding specialists launch of a new, improved Web site that will use video segments and other real-time tools to educate consumers about the companys product in an info-taining way. The site will be iPad- and smartphone-friendly. PLB also showed its Natural Talalay Latex 3.0 Hybrid series, which combines latex rubber with a dense support core and 450-gram weight fabrics for additional durability. Available in both fast response and slow response collections of three models apiece, these beds will range from $1,399 to $1,999 (fast) and $1,499 to $2,099 (slow) in queen.
The big news from Shifman Mattress at High Point wasnt new product; rather, it was the announcement of the companys aggressive new social networking marketing campaign. Conceived to boost public awareness of the brand and drive consumers to dealers that carry it, the new campaign incorporates a contest designed to educate browsers and increase traffic to Shifman retailers. The company also unveiled the results of a recent durability test in which Shifman outperformed seven leading brands in terms of durability; these tests will be provided to retailers to educate consumers, but will not be trumpeted in any future advertising campaign.
Therapedic announced the addition of new SKUs and features to its EcoGel, PureTouch and Therawrap collections. A fourth model, Blue Paradise, was added to the EcoGel line that has a three-inch gel foam layer and DynaFlow cooling fabric. This bed will be priced from $1,099 to $1,999 in queen. The ecofriendly latex-based PureTouch beds have added multiple latex layers for a wider range of comfort levels, alogn with a sunflower pattern and removable zippered cover. Prices will run from $1,499 to $2,999 in queen for these beds. A layer of EcoGel gel-memory foam has been added to the Therawrap wrapped-coil beds for cooler sleep, and a new 2,000-coil model, Sophie, was added to this line. This collection is priced from $899 to $1,599 in queen. HFB
May 14,
2012 by in UnCategorized
By Home Furnishings Business in on May 2012
When recession struck the U.S. economy a couple of years back, furniture retailers were among the first businesses to feel its impact.
As with other stores, Southern California retailer von Hemert Interiors faced the worst business environment since the Great Depression. With so much out of its control, the three-store, Costa Mesa-based company looked to the things it could do something about and found out that at times, attitude is everything.
When asked what strategies von Hemert Interiors used to cope, CFO Kelly von Hemert took a step back to explain how the organization moved away from recession-driven denial, shock, panic and paralysis.
We chose to take an inside-out approach, she said. In my view, you cant experience a recovery without feeling it first. All three of our stores are located near or on Highway 1, which connects with the soul of the Pacific Ocean. During this recession, we found both solitude and inspiration by looking to the ocean for answers. In my office, I have pinned to an inspiration board The Surfers Code by Shaun Tomson. (See Finding Inspiration on page 35.)
As a company, we soon began to seek clarity and accept that things have changed forever, she continued. And if we were going to survive, we might find the answers again by looking to the ocean.
Along with The Surfers Code, the book Deep Dive by Rich Horwath was another font of inspiration.
His book helped us create a strategy design using what he calls the Seven Salient Aspects, von Hemert said.
Those are:
¢ Purposethe reason you exist in the marketplace.
¢ Valuethe primary type of value you provide (best product, cost, solution).
¢ Contextthe description of the current situation.
¢ Whothe customer groups you are targeting.
¢ Whatthe offerings you are providing to customers.
¢ Howthe distinct capabilities the company possesses to create value for customers.
¢ Advantagethe differentiated value you provide to customers.
FROM MIND TO ACTION
That look insidetaking a deep mental breathhelped von Hemert identify critical factors in dealing with a down economy.
From there, we asked ourselves what are the key insights, where will we focus our resources, and how will we achieve an advantage in the marketplace?, von Hemert said. We took those answers and built a serious strategic planning map that led us to three critical success goals: strengthen our sales team, gain more market share, and enhance our product mix.
A first step was to identify ways von Hemerts high-end customer had changed.
She no longer was willing to make a purchasing mistake because the cost was too great, von Hemert said. She wasnt as interested in the products that we showed but more interested in how we connected with her on an emotional level. In a nutshell, it really came down to how we wanted to communicate to make her needs and dreams come true. We took that knowledge and refreshed the idea of communicating more effectively.
The company conducted a presentation using strong visuals, quotes and information based on John C. Maxwells book,
Everyone Communicates, Few Connect: What the Most Effective People
Do Differently.
A quote that that sticks out in my mind is that People will not always remember what you said. They will not always remember what you did. But they will always remember how you made them feel, said von Hemert.
The second step was a move to gain market share by getting closer to the customer.
We leveraged technology by investing in iPads and iPhones to give our customers instant gratification, von Hemert said. We promoted ourselves by using social media platforms such as Facebook, Twitter, blogging and Pinterest to stay relevant and alert our customers of upcoming events. We ramped up our e-mail, direct mailers, e-blasts and Web site presence to introduce ourselves and promote our sale periods with our customer base. We created a buzz by getting bloggers, local newspapers and magazines to write about events and grand re-openings that we hosted during the recession.
For example, a Royal Wedding contest and event in April was still getting comments on von Hemerts Facebook Page in September. The event got picked up by bloggers and helped create a lot of happy buzz at a time when customers were still feeling the recession blues.
We also continued to use the newspaper aggressively as it is still one of the most effective means of advertising in southern California, von Hemert added.
The third step: Give the lady what she wants.
Now more than ever, customers have a greater need for quiet luxury, comfort and ease, von Hemert said. We serve the high-end market where we design interiors that are a reflection of the client not a design trend. To quote Barbara Barry, just buy well and keep it forever.
Over the past three years, we have made a continued effort to provide timeless furniture by adding Stickley, Marge Carson and Lexington to our product mix.
The retailer also spent money, completely renovating its Laguna Beach store in the midst of the recession.
92-YEAR PEDIGREE
von Hemert Interiors traces its roots to 1920 and Anna Martin in a Los Angeles design studio called Martin and von Hemert.
The company made beautiful, hand-sewn drapes and custom upholstery, and sold luxurious velvets, brocades and tapestries by the cut yard. Martins son, Ted von Hemert, joined the company during the 1930s after studying in New York under the influence of several talented interior designers. He designed homes in Los Angeles and Beverly Hills, as well as several Hollywood movie sets for movies including Sherlock Holmes in 1945.
After the Great Depression, Ted Martin moved the company to Laguna Beach and began to carry all the elements of a full-service interior design shop, including wall paper, area rugs, carpeting, fabrics, art, lamps, accessories, mirrors and later, furniture.
Teds son Barry joined the company in the 1960s and helped add two new locations in Torrance and Costa Mesa. Between 1979 and 1986, Barry and his wife Sue began to travel to Italy and Spain and began their direct importing business. Barrys children joined the company in the late 1980s and early 1990s as the companys emphasis on interior design projects and the continued acquisition of quality furniture manufactures began to take hold.
TELLING THE TALE
While von Hemert has made strides the past couple of years with social media, traditional advertising vehicles such as print ads and mailers remain a draw for the stores high-end customer.
The social media, the Web site presence, has changed, but everything else has remained very similar, von Hemert said. We tested itwe know traditional media is still our number one draw. We watch the customer flow, key traffic counts into the computer and find out how they heard about us. Once they purchase, we ask why they buy.
The retailer has three elements in its marketing strategy: Know the target audience, have a goal and keep the message simple.
We feel that with our industry changing, it is more important than ever to diversify our marketing plan so that our brand is constantly talking to our customer, von Hemert said. We use magazines, newspapers and social media to continually be top-of-mind and relevant to our customers. We greatly value the customers who have been our customers for a long time, but (we) are always striving to reach our future target market.
With more and more people engaging in social media and doing their homework online, its paramount to keep our Web site updated and increase their engagement in social media activities. Currently, the most effective advertising media (are) newspaper, direct mail and Facebook.
ON THE FLOOR
How does that vision translate in the three von Hemert locations?
In my opinion, our buildings and storefronts stimulate and reinforce our customers desire to want to come in and explore our merchandising story, von Hemert said. Similarly, the exterior of a beautiful home gives you a glimpse of an interior design vision that should run through it.
The newly renovated Laguna Beach store, which now has an Italian-inspired Mediterranean feel, is a good example of von Hemerts external and internal visual display.
In 2009, we started a massive construction project and stripped our flagship store down to the studs, von Hemert said. The idea was to attract the affluent customer with Andalusian architecture reminiscent of an old Tuscan Villa. The exterior was adorned with contemporary hand-blown glass light fixtures by local Laguna Beach artist John Barber, inlayed terracotta tile, large glazed pots with Tuscan inspired plants, and wood-framed glass entry doors with wrought-iron grill fronts that were framed with custom colored Malibu tiles, one of the most romanticized California clay products from the 1920s.
Interior enhancements included painted and embossed tile and marble flooring in the entryway, a permanent hand-forged iron chandelier, a large skylight centered above the showroom and beautiful arched walkways.
The Laguna store is different because we redid it from the ground up, von Hemert said. Torrance and Costa Mesa are more contemporary on the exterior, but product is consistent throughout the locations.
Inside the stores, von Hemerts aim is to inspire and surprise.
In the example of our Laguna Beach store, the merchandising story isnt just Italian, von Hemert said. As Californians, we understand that there is a wide range of tastes from the sophisticated modern, to the arts and crafts style, to traditional and Mediterranean-influenced designs.
California is eclectic by definition; we live in a diverse place where people from all over the world come to live with the pursuit of happiness in mind. We give people something tangible, which reinforces their need for choice, exclusivity, prestige, quality and value. HFB
May 14,
2012 by in UnCategorized
By Home Furnishings Business in on May 2012
In October 2010, in the midst of one of furniturelands toughest couple of years, Citigroup unloaded $1.6 billion in consumer financing business to GE Capital, much of it for home furnishings.
It was a sign of the times: Not only were retailers having difficulty maintaining their own lines of credit, but some lenders had drawn a red circle around just about anything related to the home, including financing of consumers home furnishings purchases.
Citis interested again, though, inking a credit card deal with home furnishings, electronics and appliance retail buying group BrandSource that offers qualifying customers 0 percent interest, 24-month financing for a six-week promotional period that began April 22 and lasts through the end of this month.
Citis also back at High Point Furniture Market, shopping for home furnishings business through its Retail Services group.
While some retailers report a mixed bag on credit approvals, more consumer caution in the wake of the recession when it comes to their debt load has more lenders looking more favorably overall on financing purchases for home furnishings and other goods.
BEST IN YEARS
Industry analyst Jerry Epperson said shoppers ability to finance purchases continues to improve.
Credit for consumers is the best its been in five years, hands down, Epperson, managing partner with Mann, Armistead & Epperson in Richmond, Va., said during an interview at High Point Furniture Market. You always look at the marginal credit when youre talking about availability. People who need it least can always get it.
He noted that car companies expect to sell 16 million vehicles this year with auto sales up 20 percent; SUVs, 3 percent; and trucks, 7 percent.
Thats all done with credit, and the banks are coming back in and financing, Epperson said, adding that credit availability is spreading for furniture as well.
The NHFA negotiating rates for members, buying groups, the large retailers, they can always get the good rate, he noted. The Wells Fargos, GEs are going after larger independent retailers as wellthey want that business.
Just before April Market, Home Furnishings Independents Association (HFIA), whose membership includes lots of smaller independents, announced a deal with TD Bank to bring TDs Renovate private label credit card program to member stores. HFIA President Mary Frye pointed out that the groups retailers now offer credit along the lines of their larger competitors.
THE FINANCERS VIEW
Lessons learned during the recession have made many consumers better credit risks when it comes to financing big-ticket purchases such as furniture.
The economy is improving, and consumers are saving at a higher rate than they were before the recession, said James Seger, general manager for retail and home furnishings at GE Capital's Retail Finance business. Were confident with the direction our business is going. Consumers like our product, and they see it as a great tool to help them finance big ticket purchases.
At Wells Fargo Retail Services, Terry Fuller, senior vice president, has seen significant change this year in the increased utilization of longer-term (24-, 36- or 48-months) no-interest, equal-payment special-term promotions.
Our retailers have experienced the advantages of these longer-term promotions in higher average transactions, stronger customer approval rates and we have been able to provide these promotions at attractive costs to our retail partners, he said via e-mail. It is our opinion these types of promotions are strong incentives to the customer and provide an attractive sales option for our retailers.
Seger said GEs decision to maintainand growits position in consumer financing for home furnishings will stand it in good stead as the economy improves.
Our business model has been predicated on doing business with all sizes of retailers, bringing big-box solutions to small independent retailersthat has not changed, Seger said. We managed through this cycle, some of our competitors have exited. Weve found during the recession that theres a significant amount of loyalty not only from GE to our partners, but also from our retailers to us. Its a significant differentiator.
He added that GE has been in this segment for more than 80 years.
(Our product) is a key component of our furniture retailers strategy, since it helps their customers spread payments and manage the financing of big ticket purchases, Seger said.
Fuller also emphasized that its home furnishings retail client list includes a wide range of retailers, sizewise.
Wells Fargo Retail Services has always approached the home furnishings market from a broad industry perspective, he said. It is one of our core markets, and one in which we have a tremendous amount of experience and expertise. It is our goal to form a relationship with every one of our participating retailers and to provide them with the best possible marketing and sales solutions to move their product(s) and create loyalty with their customers.
While we certainly have credit programs for buying groups and manufacturers, we have always supported the independent home furnishing retailer and thousands of independent retailers are enrolled today in our home furnishings credit program.
A MIXED BAG
Consumer credit might be loosening overall, but retailers we contacted reported a mixed bag when it comes to approvalsand the amounts approved for home furnishings purchases. Results varied region to region.
Customers at Hillside Furniture, a contemporary retailer in Bloomfield Hills, Mich., which uses Wells Fargo for consumer financing, could get credit even during the worst of the recession, but CEO Bruce Selik believes thats largely due to the stores higher-end clientele.
We didnt see the approval rates fall, but the amounts being approved came down, he said. Where a customer might have financed $15,000 to $20,000 before, its now more like $10,000 to $12,000 without further negotiation.
In South Florida, Pedro Capo, COO of Miami Gardens-based El Dorado Furniture, another Wells Fargo retail partner, sees definite room for improvement.
We had hoped that by this time, the overall approval rate with our external retail finance company for our customers would have been higher but actually has gone down a bit or stayed the same compared from store-to-store, year-to-year, he said.
And while the store itself was able to maintain its own credit facilities throughout the recession, Belfort Furniture in Dulles, Va., reported consumers still have a tough time getting credit.
Their ability to obtain financing is more difficult than a year ago, noted Rick Petry, senior director of finance and administration. Weve seen approval rates go down a little. ¦ It seems fewer customers are trying to obtain credit, theyre trying to pay down their debt.
Capo reported a similar trend at El Dorado: Customers coming in with more cash, or using their own credit cards to buy furniture more than they did than in the last 10 years.
Customers are being more frugal in their decisionand once they decide to purchase, they know that if they have the money instead on relying on credit that is going to be best for them long term, Capo pointed out.
Verona Mair, owner of The Emporium, Ponca City, Okla., and HFIA board chair, says her customers credit remains tight, and could stay that way for a while.
Consumer credit is still pretty hard to get because consumers credit scores have been adversely affected by the last few years activity, she said, adding that in her small town, there are few signs of improvement, fewer jobs, and people moving to where employment opportunities seem better.
ON THE OTHER HAND ¦
Stephen H. Kidder of Superstore Furniture Sales of Williston, Vt., said his shoppers are finding financing more easily.
Consumer credit has gotten easier in the last year because there is more competition for business from consumer lenders, he said. Kidder noted that in his part of the country, approvals are always high and vendors are pushing credit with promotions as long as 60 months.
The same is true at Starcke Furniture in Seguin, Texas.
Consumer credit is better or slightly better because lending agencies are less restrictive than a year ago, said Hilmar Starcke, owner. There are more consumer loans and fewer business loans being made. Consumer spending is expanding because banks want to make money and the rules of the game allow for that now.
Randy Greengus, owner of Sun City Furniture, Shreveport, La., and a board member of HFIA, says banks are competing for financing again.
Consumer credit seems a little bit better than a year ago because of competition for consumer business from finance providers, he said, but added that could tighten again depending on how the economy shakes out.
Dodd Home Furnishings also reported increased credit for its customers in Guin, Ala., for the same reason.
Consumer credit is more available because of a new provider, said Owner Dale Dodd, also an HFIA board member. Increased competition for consumer financing has made it easier.
OUTSIDE FACTORS
Government regulations controlling no-no-no financing are good for most retailers in the long run, in the opinion of Selik at Hillside Furniture.
That put everyone on the same playing field, he said, since the big boxes couldnt offer terms smaller retailers couldnt meet.
Again, I can definitely see an easing of the credit requirements as 2012 progresses, he said. People with reasonable credit, scores in the high 500s, low 600s, can get the minimal amount; people 650 or higher, they can get more than a year ago.
Hes actually understanding of constraints on banks willingness to finance consumer purchases of furniture versus something like automobiles.
You buy a sofa for $3,000, and in five seconds its worth $1,500; and because this product isnt registered, you dont have to have a title like with a car, he pointed out. If you skip out on a car payment, they can trace the vehicle. Skip out on a furniture payment, and its gone.
Starcke at Starcke Furniture believes consumer credit will improve marginally because the rules lenders are operating under now promote consumer lending.
Dodd believes market forces will help improve consumer credit availability.
It will improve because there is pressure to loan money to consumers, he said. Theres pressure on banks to put money to work.
Fuller at Wells Fargo doesnt anticipate any restrictions or major changes to the availability of credit to consumers throughout 2012.
It has been a top priority of Wells Fargo Retail Services to maintain a stable and consistent approach to the granting of credit throughout the economic downturn and the current recovery, he said. We have been providing access to credit to home furnishings customers for nearly 50 years and are constantly looking for ways to increase credit access to support consumers and home furnishing retailers. HFB