Daily News Archive
Brought to you by Home Furnishings Business
September 29,
2011 by in UnCategorized 
By Home Furnishings Business in economic news on September 30, 2011
Retailers placed 8 percent more new orders for furniture in July 2011 than the same month last year, according to the latest Furniture Insights survey.
High Point accounting and consulting firm Smith Leonard conducts the monthly survey of residential furniture manufacturers and distributors. Orders were 8 percent lower than June 2011 orders, but that decline is normal. Year-to-date, new orders are 5 percent ahead of 2010. Through July 2010, orders were up 9 percent over 2009
results.
"We are not able to track units, since we have never been able to determine what units should be measured, so we think that some of the increase reported is attributable to price increases," Smith Leonard Managing Partner Ken Smith said in the survey report. "What we heard over the spring and summer months was that many were putting in price increases this summer, mostly in the 3 to 5 percent range, so some of our increase in orders likely relates to these increases."
July 2011 shipments fell 1 percent from the same month last year.
"Some of this could be timing as July 2010 shipments were 15 percent higher than July 2009." Smith said. "Shipments in July 2011 were 19 percent lower than June 2011, a somewhat normal result due to most companies taking off the week of July 4, with very little shipping that week."
Year-to-date, shipments are 3 percent ahead of 2010. Backlogs increased 4 percent over last year and were up slightly over June, likely affected by some import orders not being shipped as quickly as orders are taken.
July receivable levels fell 2 percent from last year, in line with the 1 percent reduction in shipments.
"Interestingly they were only down 2 percent from June in spite of the 19 percent decline in shipments," Smith wrote. "But for some reason, this seems to happen each year. Most likely this is due to little billing the week of (July 4), causing payments to be delayed to August."
Inventories rose 3 percent in July from June and were 5 percent higher than July 2010, which appears in line with the increase in orders.
The number of factory and warehouse employees rose 1 percent from June levels, but fell 1 percent from July 2010. Last year at this time, employment was up 3 percent over July 2009. July 2011 factory and warehouse payrolls fell 3 percent lower than July 2010, when they were 17 percent higher than July 2009. Payrolls were down 23 percent from June, due primarily to the July 4 shutdown.
In summary, Smith reiterated that the year-over-year order increase in July related largely to price increases.
Consumer confidence remained a drag on performance in September.
"News from Washington continues to depress most all of us and the global news is not much better, or even worse," Smith noted. "Add to that the recent wild swings in the stock market and there is no wonder consumers do not have confidence.
"One bright spot has been the recent decline in gas prices, but that has not held in the past, so we doubt consumers are confident such prices will stick."
Negative rhetoric surrounding the presidential election won't help consumer attitudes, either, he noted, but Smith did see some brighter spots.
"Housing on the other hand seems to be bouncing along," he said. "Weather has had some impact, but the overall market seems somewhat improved. Even though houses are being sold at lower prices, they will still need furniture over the months following a purchase. So all is not bleak.
"The other good news for the industry is that, while a 5 percent year-to-date increase in orders over last year is not what everyone needs, it is at least comparing to pretty good results last year when we were up 9 percent over year-to-date 2009. So while business is tough, in light of the poor performance of the economy in general, moving forward is a good thing."
September 29,
2011 by in UnCategorized
By Home Furnishings Business in Acquisition on September 30, 2011
Foam mattress and pillow maker Latex International has signed a letter of intent to purchase the balance of Pure Latexbliss.
The deal is expected to close by the end of September.
Pure Latexbliss founders Kurt Ling and Joe Hunt will continue to be involved with the leadership of the brand. Latex International will continue to actively pursue its OEM business in North America with its key manufacturing and factory direct partners. Latex International currently does business in 60 countries around the world.
"In the past two years, Pure Latexbliss has become one of the fastest growing luxury mattress brands in the world, doing business in six countries. The brand has proven to be a successful alternative for retailers to maintain high tickets and increase margin dollars of specialty bedding consumers who are ready to spend $2,000 to $3,000 on a mattress but don't like the feel of memory foam," said Shelton, Conn.-based Latex International President and CEO Dave Fisher. "The latex industry needs a stable of strong brands to sit across from successful memory foam on retail floors, and retailers need more profitable alternatives in the specialty sleep market. We believe that Pure Latexbliss is a 'pure' stallion in our sector."
"Latex International has been a tremendous supporter of our company since inception," Ling said. "This deal is good for us personally and professionally. It allows Pure Latexbliss to go to the next level to service retailers and consumers."
Pure LatexBLISS was founded in 2009. Latex International bought a 51 percent stake in the company in the fall of 2010, and this transaction will bring its ownership interest to 100 percent, making it a wholly-owned subsidiary. As a part of this new direction, following its success with it direct to retail pillow business, Latex International will transition from its Rejuvenite line to Pure Latexbliss branding.
Two retailers had encouraging reaction to the deal.
"Pure Latexbliss has been an important component of our merchandising and our success," said Steve Lytell of Mattress Xpress. "They have been an integral part of our floor in a big way since they started and I believe this change will help them service us better by being fully integrated under the Latex International umbrella."
"Pure Latexbliss is one of the greatest recent success stories of the mattress industry," said Bill Twelves of Olum's Furniture in Upstate New York. "They have built a product that is very different, easy to sell and provides margins that are unlike anything else on the floor because of the business model they use. It is exciting to watch them expand and step into this next chapter."
September 29,
2011 by in UnCategorized
By Home Furnishings Business in on September 30, 2011
The Travel Channel will feature La-Z-Boy's Siloam Springs, Ark., plant on the premiere episode of the network's new "Made in America" show.
"Made in America" will premiere 8:30 p.m., Oct. 4 with an episode that showcases what thousands of skilled workers at La-Z-Boy plants do every day in America and why La-Z-Boy remains a quintessential American brand.
"The show highlights the quality craftsmanship that goes into building and assembling custom-made La-Z-Boy furniture," said Kevin Harmon, general manager at La-Z-Boy Arkansas in Siloam Springs, Ark. "Our Siloam Springs employees are skilled, hardworking people with a true talent for building furniture and we think audiences will be impressed when they see us in action."
As a part of his day long filming visit in May 2011, George Motz, accompanied by a camera crew, toured each section of the La-Z-Boy South manufacturing facility in Siloam Springs. Starting with an overview of the plant with Harmon, Motz learned about the materials La-Z-Boy uses to build its furniture and how many materials come from domestic sources and are then shipped to five La-Z-Boy manufacturing plants in the United States.
"The day of filming was a crash course in furniture assembly for George," said Harmon. "It truly showcased the hard work that goes into making a custom piece of La-Z-Boy furniture."
Next, the crew filmed in the polyurethane department, where Motz helped cut the large foam blocks into seats and backs. Motz also helped to assemble all of the parts into a recliner--testing and inspecting for quality and comfort all along the way. Finally, he applied the fabric cover and upholstered the recliner with a stylish colored pattern.
La-Z-Boy currently features a "Made in America" seal on its furniture to help consumers identify products assembled in America.
Each week "Made in America" travels from city to city to find out how some of the most iconic products in the world are made. The premiere episode of the show also will highlight Crayola and Gibson.
September 29,
2011 by in UnCategorized
By Home Furnishings Business in Community/Charitable Support on September 30, 2011
Solid wood furniture and upholstery vendor Kincaid Furniture has launched initiatives promoting its partnership with Habitat for Humanity.
Kincaid, Hudson, N.C., is currently Habitat's only home furnishings corporate partner, supporting the worldwide organization's efforts to build safe, affordable, decent housing throughout the world.
The six-week celebration kicked off with a company sponsored build day at two Habitat homes in Lenoir, NC. More than 30 Kincaid staffers spent a day installing insulation and hanging siding at one home and painting the interior of the other. With additional volunteer labor from Kincaid employees and other community volunteers the homes are expected to be ready for occupancy before Christmas.
To help celebrate the completion of Habitat's 500,000th home, Kincaid is introducing a new Facebook challenge. For each new "like" on Kincaids Facebook Page during the month of October, the company will donate $1, up to a total of $10,000, to Habitat. In addition to the financial component, Kincaid views the additional exposure as an opportunity to share important information about Habitat with a wider online audience.
During the upcoming High Point Furniture Market, Kincaid, will provide retailers and designers with an easy way to participate in the challenge. Two dedicated computer stations will be available for guests to "like" Kincaid's page, helping the company maximize its contribution. Additionally, Kincaid is partnering with the High Point Market Authority's "Six Causes That Matter" program, which will feature expanded opportunities for giving on Monday, Oct. 24, the day the Authority has designated for Habitat for Humanity.
In honor of World Habitat Day, Oct. 3, retailers will have the opportunity to push Kincaid's contributions to Habitat even further. The manufacturer has pledged to double its donation to the non-profit on all new orders of their Homecoming Collection received on World Habitat Day. That means 2 percent of the wholesale price of each piece ordered from the Homecoming Collection on Monday, Oct. 3, will be donated to the charity.
Kincaid is providing retailers with an extensive, integrated marketing package to help advertise and promote the Homecoming Collection during the Great Home Upgrade Event, including customized print and TV ads, postcards, circulars, Facebook and digital newsletter content, special discounts, and programs for partnering with Habitat affiliates in their trading areas. A new area of the company's Web site, designed as a scrapbook, has been launched to showcase Homecoming retailers and their collaborations with local Habitat affiliates. Participating dealers are provided a page where they can submit their own event or volunteer photos and content, with links to their website and the Kincaid retail locator.
"The most significant way we can contribute is by spurring grassroots efforts that support Habitat's endeavors across the U.S. and the world," said Max Dyer, Kincaid's vice president of marketing. "Retailers that create local events help shine a light on Habitat, increasing volunteerism, donations, and support of Habitat's ReStores."
Kincaid announced its partnership with Habitat for Humanity International in October 2010 with the launch of the company's Homecoming Collection. For every item sold from the nearly 100-piece collection, Kincaid is donating 1 percent of the item's wholesale price to Habitat for Humanity, with a minimum contribution of $100,000 per year for three years.
September 28,
2011 by in UnCategorized
By Home Furnishings Business in Store Openings on September 29, 2011
Home furnishings retailer Parmida Home will open its ninth location on Nov. 5 in San Antonio.
The new store is in the Village at Stone Oak shopping center. Festivities begin at 10 a.m., which will include door prizes valued at more than $500, along with music, wine, gourmet foods and more.
The McKinney, Texas-based retailer showcases furniture and home decor in lifestyle vignettes. Furniture and decor lines include Palecek, Uttermost, D.V. Kap Home and more. The store also sells luxury gifts such as wine and cheese accessories, gourmet accessories, imported coffees and teas, bath and body collections, candles and imported oils.
"We are very excited to open our Home Lifestyle store in the San Antonio marketplace," said Parmida Marketing Director Siotha Vest. "Our store features at home luxuries for entertaining guests, social gatherings, or enjoying gourmet tea with neighbors at home. When we opened our store in Austin, we discovered how many people enjoy our shopping experience, the boutique atmosphere and timeless gift items."
After the grand opening, Parmida shoppers can expect continual activity in the store each weekend. For example, customers may sample select gourmet foods, coffees, and teas throughout the weekends.