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Monday, January 30, 2012

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY

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| Vol. 33, No. 4 | $85.00

2012 BUSINESS ANNUAL

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Home Textiles Today

January 30, 2012

Table of Contents

> hometextilestoday.com

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY® 360 Park Avenue South, New York, NY 10010 Telephone: (646) 805-0227 Fax: (646) 365-2307 USPS 497-490

Retailing Giants

The Facts

Top 50 home textiles retailers ............. 6

Top Of Bed .......................................... 34 Utility Bedding .................................... 35 Sheets .................................................. 36 Bath...................................................... 37 Kitchen Textiles ................................... 38 Area Rugs ............................................ 39 Window Treatments ........................... 40

Supplier Giants Top 15 home textiles manufacturers .. 20 Top 5 manufacturers by product category ........................... 24

HOME TEXTILES TODAY (USPS 497-490) (ISSN 0195-3184) is published 29 times a year except for the weeks of 1/16, 2/6, 2/20, 3/12, 3/26, 4/9, 4/23, 5/7, 5/21, 6/4, 6/18, 7/2, 7/16, 7/30, 8/13, 8/27, 9/17, 10/1, 10/15, 10/29, 11/12, 11/26, 12/10, 12/24 by Furniture/Today Media Group, 360 Park Avenue South, 17th fl., New York, NY, 10010 a subsidiary of Sandow Media LLC, 3731 NW 8th Ave, Boca Raton, FL 33431. Periodicals postage paid at New York, NY, and additional mailing offices. HOME TEXTILES TODAY copyright ©2012 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $169.97; 1 year, other countries $325.99 for surface mail . All payments must be made in U.S. currency. Subscription inquiries: HOME TEXTILES TODAY, PO Box 5879, Harlan, IA 51593-1379. Phone: (866) 456-0405. HOME TEXTILES TODAY and THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY are registered trademarks of Sandow Media LLC, used under license. Sandow Media LLC does not assume and hereby disclaims liability to any person for any loss or damage caused by errors or omissions in the material contained herein, regardless of whether such errors result from negligence, accident or any other cause whatsoever. (Posted under Canadian International Publication Agreement No.40624074. Sandow Media/CDS (Mint Hill) POSTMASTER: Send address changes to HOME TEXTILES TODAY, P.O. Box 5879, Harlan, IA, 51593-1379 Email: HTTcustserv@cdsfulfillment.com. Return undeliverable Canadian addresses to: RCS International; APC; PO Box 503, RPO West Beaver Creek, Rich Hill, ON L4B 4R6

360 Park Avenue South, New York, N.Y. 10010 Tel: (646) 805-0227; Fax: (646) 365-2307 www.hometextilestoday.com EDITOR-IN-CHIEF Jennifer Marks 10 Ocean Blvd #8B Atlantic Highlands, N.J. 07716 (732) 204-2012 | jnegley@hometextilestoday.com PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | wshoulberg@hometextilestoday.com SENIOR EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | cbcorral@aol.com MANAGING EDITOR Julie Murphy (646) 805-0224 | jmurphy@hometextilestoday.com CONTRIBUTING GRAPHIC ARTIST Desiree Nunez (646) 805-0233 | dnunez@giftsanddec.com DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | dfrench@sandowmedia.com ASSOCIATE PUBLISHER Jeff Reeves (336) 605-1009 | jreeves@hometextilestoday.com ACCOUNT MANAGER NORTHEAST/ MIDWEST/CANADA Mary McLoughlin (646) 805-0227 | mmcloughlin@hometextilestoday.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 swhittle@sandowmedia.com Karen Hancock (336) 605-1047 khancock@sandowmedia.com MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | kraczko@aol.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | Kaushal@kaushals.com ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | pschneck@sandowmedia.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com DIRECTOR, WEB OPERATIONS Chris Schultz | (336) 605-1076 | cschultz@ sandowmedia.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | dsage@sandowmedia.com E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | maxe@sandowmedia.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | aternes@sandowmedia.com PRESIDENT, FURNITURE TODAY GROUP Kevin Castellani (336) 605-1034 | kcastellani@sandowmedia.com FOUNDING EDITOR-IN-CHIEF Carole Sloan, 1979-2011

SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow CFO/COO Christopher Fabian VP CREATIVE AND EDITORIAL Yolanda E. Yoh EVP, GROUP PUBLISHER James N. Dimonekas SUBSCRIPTIONS: U.S.A. (866) 456-0405 All other countries: (515) 247-2984 HTTcustserv@cdsfulfillment.com FAX SUBSCRIPTIONS: 1-866-310-7181

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Top 50

Home Textiles Today

> hometextilestoday.com

January 30, 2012

ADVERTISEMENT

Top 50 Retailing Giants BY JENNIFER MARKS

TOP MULTI-DIVISION OPERATIONS

NEW YORK — In the weak econ-

omy that prevailed through much of 2010, it was a battle of inches for retailers looking to garner greater market share in home textiles. At the top of the heap, No. 2 ranked Bed Bath & Beyond is creeping close enough to Walmart to begin threatening its status as the largest seller of home textiles in the United States. In 2010, the volume distance between them was just $40 million — compared to $380 million in 2009 and $448 in 2008. After brushing aside JCPenney to claim the No. 3 spot in last year’s ranking, Target widened the gap. Target outsold JCP by $275 million in 2010 after outpacing the department store by just $80 million in 2009. The Top 5 retailers – Walmart, Bed Bath & Beyond, Target, JCPenney and Kohl’s – once again are the only companies generating $1 billion or more in home textiles sales. As a group, their sales grew 3.2% to $13.2 billion, but their share of the Top 50’s $23.0 billion in 2010 remained stagnant: 57.4% last year compared to 57.5% a year earlier. The Top 50’s tot al sales rose 3.3%, compared to a 2.9% increase in total U.S. home textiles sales from all sellers, which rang in at $25.05 billion last year. No retailer made a big leap up the ladder in HTT’s exclusive Retailing Giants report this year, but several stepped up rung — most notably Ross Stores, which moved into the Top 10 for the first time. Ross dislodged Family Dollar, last year’s No. 10, with an 11.6% jump in home textiles sales to $480 million. The Top 10 saw a 3.4% increase in home textiles sales in 2010 to $16.576 billion while its share of the Top 50’s total sales remained flat at 72.0%. Among retailers ranked 1120, Big Lots was the only one to move up the line in this year’s survey, displacing Ikea to become No. 12. Within that group, No. 16 Luxury Linens is poised to eclipse No. 15 Sears (once a Top 10 retailer) as their home textiles sales in 2010 were separated by only $3 million. The Top 20 retailers generated a collective 3.5% gain in sales last

htt120104_006 6

ELITE SPONSORS

RANK

1 2 3 4 5

COMPANY/CITY

HOME TEXTILES SALES ($MILLIONS) 2010 2009

PERCENT CHANGE

SHARE OF HOME TEXTILES UNIVERSE

NUMBER OF STORES 2010 2009

Wal-Mart Bentonville, Ark.

$3,761

$3,760

0.0%

15.0%

4,413

4,360

Sears Holding Corp. Hoffman Estates, Ill.

$1,220

$1,228

-0.7%

4.9%

2,163

2,189

TJXC ompanies Framingham, Mass.

$968

$919

5.3%

3.9%

2,089

2,026

Macy’s,I nc. New York

$955

$968

-1.3%

3.8%

850

850

HSNi New York

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Intertextile $225

$198

13.6%

0.9%

10

11

1. Includes No. 1 Wal-Mart and No. 24 Sam’s Club 2. Includes No. 6 Kmart, No. 15 Sears and No. 40 Lands’ End 3. Includes No. 8 T.J. Maxx/Marshalls and No. 17 HomeGoods 4. Includes No. 7 Macy’s and No. 31 Bloominigdale’s 5. Includes No. 26 Cornerstone Brands and No. 42 HSN Source: Home Textiles Today market research

HOW THE TOP 50 WERE RANKED Home Textiles Today’s exclusive survey of the Top 50 home textiles retailers ranks the top U.S. retailers by sales of 2010 home textiles. All home textiles categories, bed, bath, kitchen, table linen and window coverings, including alternative window coverings, custom decorating and accessories that are generally sold with textile items, are included in the sales estimates. In order to be eligible for the ranking, each retailer must sell more than one home textile category. The ranking crosses all formats of home textiles retailing. Companies are classified by their primary channel of distribution. Channels include discounters; specialty stores; home improvement centers; department stores; dollar stores; national chains, such as Sears; direct-to-consumer retailers that sell primarily through catalogs, television and/or the Internet; warehouse membership clubs; military exchanges; furniture stores; and supercenters, which sell both food and general merchandise in their mix.

year and accounted for 86.0% of the Top 50’s home textiles sales, up slightly from 85.8% in last year’s report. Four retailers in the rankings from 21-30 moved up in this year’s ranking: QVC (No. 23, moving ahead of Sam’s Club); Corner Stone Brands (No. 26, jumping ahead four places); Crate & Barrrel (No. 29, also up by four paces); and BrylaneHome (No. 30, up one spot). Market share gainers in the remainder of the Top 50 include: • Dollar General, No. 30; • Country Curtains, No. 37;

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For Wal-Mart, Kmart and Target, the ranking includes discount stores and supercenters. All home textiles sales information, except for publicly held companies that break out lineof-business sales for home textiles, are Home Textiles Today market research estimates. Sales figures are given for the 12-month period ending closest to December 31, 2010. Individual retailer descriptions include the date of the fiscal year end or the 12-month periods that deviate significantly from that date. Sales estimates are based on information from a variety of sources including the companies themselves, public company filings with the Securities and Exchange Commission, discussions with industry analysts and suppliers and published and unpublished reports, including newspaper articles in various retail trading areas. In cases where companies have identical sales of home textiles, the one with the fastest sales growth is ranked higher.

• Army & Air Force Exchange, No. 39; • Ashley Furniture Stores, No. 41; • Dollar Tree, No. 44; • Garden Ridge, No. 46; • Cost Plus World Market, No. 49. Each of them moved up one place in the ranking. Of the retailers that lost home textiles market share among the Top 50, only two slipped more than one place. Bloomingdale’s fell to No. 31 from No. 38 while Restoration Hardware dropped to No. 32 from No. 29. By channel of business, dis-

counters continue to hold the greatest market share, with 40.6% of the Top 50’s sales compared to 41.0% in the previous year. Specialty stores constitute the second largest channel, with 26.4% of home textiles sales in 2010 compared to 25.0% a year earlier. Direct-to-consumer accounts for 4.1% of home textiles sales — but this accounts only for the pure-play retailers. Major brickand-mortar retailers as well as catalogers do big business in online retailing, but their ecommerce sales are included in their overall numbers. HTT

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January 30, 2012

Home Textiles Today

Top 50

> hometextilestoday.com

Specialty Retailers Gain Share in 2010 Sales NEW YORK — In terms of year-over-year sales gains, 2010 was a good year for home textiles specialty chains – the economy notwithstanding — a decent year for dollar stores, a so-so year for discounters and a challenging time for department stores. Every one of the Top 5 specialty retailers in HTT’s Top 50 Retailing Giants report increased its home textiles market share in 2010. Bed Bath & Beyond and Williams-Sonoma racked up double-digit gains of 10.8% and 15.1%, respectively. But Anna’s Linens and Ikea also racked up solid increases at 8.0% and 5.9%, respectively. Luxury Linens recorded a 1.7% increase. TORE REAKOUT Y YPE By contrast, only one of the Top 5 department stores PERCENTAGE OF TOP 50 SALES BY DISTRIBUTION CHANNEL in the Top 50 boosted its home textiles market share: Kohl’s, up 5.7%. The others — JCPenney, Macy’s, Specialty Stores gained 1% of share from 2009, Bloomingdale’s and The Bon-Ton Stores — saw share while Department Stores lost 1%. decline by single digits during a difficult year. Other* While the Top 5 discounters largely gained, leaders Walmart and Target did so modestly — up 0.1% and Warehouse Clubs Dollar Stores 2% 3.7%, respectively. Ross Stores showed the most robust 2% 3% Home growth, up 11.6%, while Kmart was the only share loser, improvement Direct-todown 0.5%. Centers consumer The three leading dollar stores turned in solid volume 1% 4% growth in home textiles: Family Dollar, up 4.9%; Dollar General, up 5.0%; and Dollar Tree, up 5.2%. Cornerstone Brands led all others in percentage of Department sales growth, up 18.2%. The division of HSNi — which Stores Discount Stores includes Garnet Hill, Ballard Designs and Frontgate, & Supercenters 21% among other direct-to-consumer nameplates — didn’t 41% even rank among last year’s Top 10 year-over-year gainers by this measure. Specialty Stores As was the case in last year’s ranking, Bed Bath & 26% Beyond was the leader as measured by net sales growth, expanding its volume by $345 million. That was a sharp improvement from its net sales growth in home textiles *Other includes Sears, Army & of $98 million in 2009. Air Force Exchange Service and Target also jumped onto the ranking of net sales gainAshley Furniture HomeStores ers by adding $90 million in home textiles volume. As 2010 Top 50 Total: $23.02 Billion did Williams-Sonoma jumped with its additional $70 million in home textiles volume. Neither ranked among 2009 Top 50 Total: $22.28 Billion the Top 10 in this segment last year. Top 50 overall % change over 2009: 3.3% Dollar General added the most stores last year — Source: Home Textiles Today market research 544 — followed by Dollar Tree, which added 209 units.

2010 S

B

B T

ABOUT THE CHARTS All home textiles sales information, except for publicly-held companies that break out line-of-business sales for home textiles, are Home Textiles Today’s market research estimates. All data is for calendar year ending Dec. 31, fiscal-year end or trailing 12 months closest to that date. Store type: DTC: Direct-to-consumer DP: Department store DC: Discount department store DS: Dollar store FS: Furniture store PX: Military exchange SC: Supercenter SP: Specialty store Methodology The accompanying listings of Home Textiles Today’s fastest growing retailers are derived from the exclusive Top 50 Retailing Giants rankings (see page 12). The rankings cross all formats of home textiles retailing—including discount department stores; dollar stores; specialty stores; department stores; national chains, such as Sears; nonstore retailers, such as catalogs and Internet retailers; warehouse clubs; military exchanges; home improvement centers; and supercenters, which sell both food and general merchandise in their merchandise mix. (For the Top 50 Methodology, see page 6.)

HTT

TOP 5 HOME TEXTILES DISCOUNTERS TOP 50 RANK

HOME TEXTILES SALES (IN MILLIONS) 2010 2009

COMPANY

PERCENT CHANGE

TOP 5 HOME TEXTILES DEPARTMENT STORES

NUMBER OF STORES 2010 2009

TOP 50 RANK

COMPANY

HOME TEXTILES SALES (IN MILLIONS) 2010 2009

PERCENT CHANGE

NUMBER OF STORES 2010 2009

1

Wal-Mart 1

$3,575

$3,570

0.1%

3,804

3,755

4

JCPenney

$2,275

$2,380

-4.4%

1,106

1,108

3

Target

1

$2,550

$2,460

3.7%

1,750

1,740

5

Kohl’s

$1,275

$1,206

5.7%

1,089

1,058

6

Kmart 1

$841

$845

-0.5%

1,307

1,327

7

Macy’s

$820

$830

-1.2%

805

810

8

T.J. Maxx/Marshalls

$690

$657

5.0%

1,753

1,703

31

Bloomingdale’s

$135

$138

-2.2%

45

40

Ross Stores

$480

$430

11.6%

1,055

1,005

34

The Bon-Ton Stores

$125

$126

-0.8%

275

278

10

1. Includes sales from supercenters Source: Home Textiles Today market research

Source: Home Textiles Today market research

TOP 5 HOME TEXTILES SPECIALTY RETAILERS

TOP 3 HOME TEXTILES DOLLAR STORES

TOP 50 RANK

COMPANY

2

Bed Bath & Beyond

9

HOME TEXTILES SALES (IN MILLIONS) 2010 2009

PERCENT CHANGE

NUMBER OF STORES 2010 2009

TOP 50 RANK

COMPANY

HOME TEXTILES SALES (IN MILLIONS) 2010 2009

PERCENT CHANGE

NUMBER OF STORES 2010 2009

$3,535

$3,190

10.8%

1,071

1,039

11

Family Dollar

$453

$432

4.9%

6,888

6,689

Williams-Sonoma

$535

$465

15.1%

576

593

33

Dollar General

$126

$120

5.0%

9,372

8,828

13

Ikea

$415

$392

5.9%

37

37

44

Dollar Tree

$61

$58

5.2%

4,015

3,806

14

Anna’s Linens

$378

$350

8.0%

278

265

16

Luxury Linens

$305

$300

1.7%

443

425

Source: Home Textiles Today market research

htt120104_008_010 8

Source: Home Textiles Today market research

1/16/2012 4:51:18 PM


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January 30, 2012

Home Textiles Today

Top 50

> hometextilestoday.com

TOP 10 HOME TEXTILES RETAILERS

TOP 10 HOME TEXTILES RETAILERS

BY % SALES GROWTH

BY NET SALES GROWTH HOME TEXTILES SALES* 2010 2009

PERCENT CHANGE

NET CHANGE*

$132

18.2%

$24

$535

$465

15.1%

$70

Ross Stores (10) Pleasanton, Calif.

$480

$430

11.6%

$50

Crate & Barrel (29) Northbrook, Ill.

$138

$124

11.3%

$14

Bed Bath & Beyond (2) Union, N.J. $3,535

$3,190

10.8%

$345

$64

9.4%

$6

RANK

TYPE

COMPANY (TOP 50 RANK)/CITY

1

DTC

Cornerstone Brands (26) Waltham, Mass. $156 Williams-Sonoma( 9) San Francisco

2

3

4

5

6

7

8

9

10

SP/DTC

DC

SP

SP

FS

DC

SP

DTC

SP

RANK

1

2

3

4

5

Ashley Furniture HomeStores (41) Arcadia, Wis. $70

6

Big Lots (12) Columbus, Ohio

$424

$388

9.3%

$36

7

Anna’s Linens (14) Costa Mesa, Calif.

$378

$350

8.0%

$28

BrylaneHome( 30) New York

$136

$128

6.3%

$8

HomeGoods( 17) Framingham, Mass.

$278

$262

6.1%

$16

8

9

10

* In millions of dollars

Source: Home Textiles Today market research

HOME TEXTILES SALES* 2010 2009

SP

Bed Bath & Beyond (2) Union, N.J. $3,535

$3,190

10.8%

$345

Target( 3) Minneapolis

$2,550

$2,460

3.7%

$90

$535

$465

15.1%

$70

Kohl’s( 5) Menomonee Falls, Wis. $1,275

$1,206

5.7%

$69

DC/SC

SP/DTC

DP

DC

DC

DC

SP

DTC

SP

Williams-Sonoma( 9) San Francisco

Ross Stores (10) Pleasanton, Calif.

$480

$430

11.6%

$50

Big Lots (12) Columbus, Ohio

$424

$388

9.3%

$36

T.J. Maxx/Marshalls (8) Framingham, Mass.

$690

$657

5.0%

$33

Anna’s Linens (14) Costa Mesa, Calif.

$378

$350

8.0%

$28

Cornerstone Brands (26) Waltham, Mass. $156

$132

18.2%

$24

Ikea( 13) Conshohocken, Pa.

$392

5.9%

$23

$415

* In millions of dollars

Source: Home Textiles Today market research

TOP 10 HOME TEXTILES RETAILERS

BY % UNIT GROWTH

BY NET UNIT GROWTH NUMBER OF STORES 2010 2009

PERCENT CHANGE

NET CHG. (UNITS)

TYPE

COMPANY (TOP 50 RANK)/CITY

1

DTC

Hanover Direct (25) Weehawken, N.J.

4

3

33.3%

1

QVC( 23) West Chester, Pa.

8

7

14.3%

1

Bloomingdale’s( 31) New York

45

40

12.5%

5

Garden Ridge (46) Houston

48

43

11.6%

5

Army & Air Force Exchange Service (39) Dallas 198 183

8.2%

15

Hobby Lobby Stores (43) Oklahoma City

2

3

4

5

6

7

8

9

10

DTC

DP

SP

PX

SP

DS

DS

FS

DC

1

2

3

4

5

6 467

432

8.1%

35

Dollar General (33) Goodlettsville, Tenn.

9,372

8,828

6.2%

544

Dollar Tree (44) Chesapeake, Va.

4,015

3,806

5.5%

209

401

5.2%

21

1,005

5.0%

50

7

8

Ashley Furniture HomeStores (41) Arcadia, Wis. 422 Ross Stores (10) Pleasanton, Calif.

9

10 1,055

Source: Home Textiles Today market research

htt120104_008_010 10

RANK

NET CHANGE*

COMPANY (TOP 50 RANK)/CITY

TOP 10 HOME TEXTILES RETAILERS RANK

PERCENT CHANGE

TYPE

NUMBER OF STORES 2010 2009

PERCENT CHANGE

NET CHG. (UNITS)

TYPE

COMPANY (TOP 50 RANK)/CITY

DS

Dollar General (33) Goodlettsville, Tenn.

9,372

8,828

6.2%

544

Dollar Tree (44) Chesapeake, Va.

4,015

3,806

5.5%

209

Family Dollar (11) Matthews, N.C.

6,888

6,689

3.0%

199

Ross Stores (10) Pleasanton, Calif.

1,055

1,005

5.0%

50

T.J. Maxx/Marshalls (8) Framingham, Mass. 1,753

1,703

2.9%

50

Wal-Mart( 1) Bentonville, Ark.

3,804

3,755

1.3%

49

Big Lots (12) Columbus, Ohio

1,398

1,361

2.7%

37

467

432

8.1%

35

Bed Bath & Beyond (2) Union, N.J. 1,071

1,039

3.1%

32

Kohl’s( 5) Menomonee Falls, Wis.

1,058

2.9%

31

DS

DS

DC

DC

DC/SC

DC

SP

SP

DP

Hobby Lobby Stores (43) Oklahoma City

1,089

Source: Home Textiles Today market research

1/16/2012 4:53:06 PM


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12

Home Textiles Today

January 30, 2012

Top 50

> hometextilestoday.com

RETAILING GIANTS RANK 2010

RANK 2009

1

1

STORE TYPE

COMPANY

HEADQUARTERS

DC/SC

Wal-Mart

Bentonville, Ark.

2010

$3,575

2009

$3,570

% CHANGE

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

0.1%

1.4%

14.3%

NUMBER OF STORES 2010 2009

3,804

3,755

Fiscal year ended Jan. 31. Sales and store counts are for U.S. Wal-Mart stores and Neighborhood Market stores, plus online sales; excludes Sam’s Clubs. Began testing a smaller format, Walmart Express, store this summer. After cutting fabrics departments in 2009 as part of a streamlining process, announced in spring 2011 it would restore fabrics. International expansion included buying a Chinese ecommerce company and taking a 51% stake in Massmart, a retail conglomerate in Africa. Sales for the home category accounted for 5% of sales in 2010 and 2009. Private-label store brands for textiles include Hometrends, Mainstays and Canopy. Total 2010 sales were $260.3 billion, up 0.1% from $259.9 billion in 2009.

2

2

SP

Bed Bath & Beyond

Union, N.J.

$3,535

$3,190

10.8% 40.4%

14.1%

1,071

1,039

Fiscal year ended Feb. 26. Operated 1,139 stores in all 50 states, the District of Columbia, Puerto Rico and Canada at fiscal year end, including 982 Bed Bath & Beyond stores, 66 Christmas Tree Shops, 46 Harmon Face Value stores and 45 buybuyBaby stores. Sales and store counts do not include the 22 stores in Canada or the 46 Harmon stores. Also not included, are the two retail stores in Mexico under the name Home & More. Domestics accounted for 41% of sales in 2010 and 2009. Bed linens declined to 12% of total sales in 2010, from 13% in 2009. Total 2010 sales were $8.76 billion, up 11.9% from $7.83 billion in 2009. Comp-store sales were up 7.8%. Opened 40 stores last year, including 18 BBB and its first store in Hawaii. Plans to open 45 new stores this year.

3

3

DC/SC

Target

Minneapolis

$2,550

$2,460

3.7%

3.9%

10.2%

1,750

1,740

Fiscal year ended Jan. 29. Opened 13 new stores in 2010 and closed three. Focused on remodeling stores and expanding food sections in general merchandise stores last year. Its short-run Liberty of London program in home and apparel in spring 2010 was a smash hit. Plans to open 21 new U.S. stores this year. Selected 105 former Zeller units in 10 Canadian provinces to remodel into Target stores following its acquisition. Comp-store sales increased 2.1%, driven by a 2% increase in the number of transactions and a 0.1% increase in the average transaction amount. Home furnishings and decor, as a percentage of total, comprised 19% in 2010, the same as in 2009. Total 2010 sales were $65.8 billion, up 3.7% from $63.4 billion in 2009.

4

4

DP/DTC

JCPenney

Plano, Texas

$2,275

$2,380

-4.4% 12.8%

9.1%

1,106

1,108

Fiscal year ended Jan. 29. Includes sales from 28 Home Stores, three furniture outlet stores and online. Opened two stores and closed four last year. In January, announced plans to wind down its catalog and outlet operations. Also plans to close six retail stores in 2011. Unveiled a new logo in February, the most meaningful update in 40 years. Liz Claiborne is new brand introduction in home fashions, with official debut set for fall 2011. Apple retail chief Ron Johnson to become new ceo, effective November, with current chairman and ceo Mike Ullman to exit the company in early 2012. Total 2010 sales were $17.8 billion, up 1.2% from $17.6 billion in 2009.

5

5

DP

Kohl’s

Menomonee Falls, Wis.

$1,275

$1,206

5.7%

6.9%

5.1%

1,089

1,058

Fiscal year ended Jan. 29. Home outperformed total comp store sales growth last year. Home sales accounted for 18% of 2010 sales, the same as in 2009. Launched ELLE Décor in approximately 350 stores in September 2010. The brand includes contemporary home and home décor products. New Rock & Republic brand set for spring 2012 launch in apparel and footwear will eventually expand into home. Total 2010 sales were $18.39 billion, up 7.1% from $17.18 billion in 2009. Comp-store sales were up 4.4%. Opened 31 units in 2010 and remodeled 85. Plans for 2011 include opening 40 stores and remodeling 100.

6

6

DC/SC

Kmart

Hoffman Estates, Ill.

$841

$845

-0.5%

5.4%

3.4%

1,307

1,327

Fiscal year ended Jan. 29. Part of publicly held Sears Holdings, which also owns Lands’ End and Sears. Operated 1,307 stores across 49 states, Guam, Puerto Rico and the U.S. Virgin Islands at fiscal year end. Store count includes discount stores and supercenters. Also sells online. Offers a number of different textiles brands including Jaclyn Smith, Casa Cristina, Country Living and Cannon, marking its first year since the 1990s with the once-powerhouse Martha Stewart Everyday brand. Total 2010 sales were $15.59 billion, down 1% from $15.74 billion in 2009, primarily reflecting the impact of having fewer stores in operation. Comp-store sales increased 0.7%, driven by increases in most categories.

7

7

DP

Macy’s

New York

$820

$830

-1.2%

NA

3.3%

805

810

Fiscal year ended Jan. 29. Sales and store counts are for Macy’s only, including 67 Macy’s Furniture Gallery stores and online. Adopted mobile technology last year giving consumers the ability to use any smart phone to navigate its e-commerce sites. Also launched an upgraded iShop app for the iPhone and began piloting Shopkick, a new location-based shopping app at 150 stores in the New York, L.A., San Francisco and Chicago markets. Announced in summer 2011 the international launch of macys.com ecommerce in 91 countries. Home sales for Macy’s corporate comprised 15% of 2010 sales, down from 16% in 2009. The company’s Internet business in 2010 increased 28.7% last year. Total corporate sales were $25 billion in 2010, up 6.4% from $23.5 billion in 2009.

8

8

DC

T.J.M axx/Marshalls

Framingham, Mass.

$690

$657

5.0%

4.9%

2.8%

1,753

1,703

Fiscal year ended Jan. 29. Part of The TJX Companies. Sales and store counts are for the Marmaxx Group operating 923 T.J. Maxx and 830 Marshalls in the U.S. and Puerto Rico at fiscal year end. The off-price retail chains sell brand-name and designer merchandise at prices 20% to 60% below department and specialty store prices. Home categories improved significantly last year, with same store sales increases above the chain average of 4%. Total 2010 sales were $14.09 billion, up 6.2% from $13.27 billion in 2009. Marmaxx expects to open approximately 116 new stores in 2011, including the conversion of 65 A.J. Wright stores. Marshalls will open its first stores in Canada this year.

9

9

SP/DTC

Williams-Sonoma

San Francisco

$535

$465

15.1% 15.3%

2.1%

576

593

Fiscal year ended Jan. 30. Publicly held, specialty home furnishings retailer with six brands - Williams-Sonoma, Pottery Barn, Pottery Barn Kids, PBteen, West Elm and Williams-Sonoma Home - selling through 592 stores in 44 states, Washington, D.C., Canada and Puerto Rico, six direct mail-order catalogs and six e-sites. Figures do not include the 16 stores in Canada. In 2010, expanded by opening three PB and three PBK stores through a franchise agreement with M.H. Alshaya Company in Dubai and Kuwait. Completed the restructuring of the Williams-Sonoma Home brand with the transition to online only and closing retail stores. Began shipping internationally through online sites to more than 75 countries in June 2011. The Internet is the fastest-growing channel accounting for 41% of revenues. Williams-Sonoma experienced record performance last year with all brands doing well. In the direct channel, growth was driven by the three PB brands. At retail, growth was driven by PB, West Elm and Williams-Sonoma. Total 2010 revenues were $3.5 billion, up 12.9% from $3.1 billion in 2009.

10

11

DC

RossS tores

Pleasanton, Calif.

$480

$430

11.6%

6.1%

1.9%

1,055

1,005

Fiscal year ended Jan. 29. Operated 988 Ross Dress for Less locations in 27 states and Guam and 67 dd’s Discounts stores in six states at fiscal year end. Both off-price chains target value-conscious consumers. Home had low, double-digit same store sales increases last year. Home accents and bed and bath accounted for 25% of 2010 sales, up from 24% in 2009. Total 2010 sales were $7.87 billion, up 9.5% from $7.18 billion in 2009. Comp store sales increased 5%. Last year, opened 41 new Ross stores and closed six and opened 15 new dd’s Discounts stores. In 2011, plans to open 60 Ross stores and 22 dd’s units, including the retailer’s initial entry into Illinois and Arkansas. All home textiles sales information, except for publicly held companies that break out line-of-business sales for home textiles, are Home Textiles Today market research estimates. All data for calendar year ending Dec. 31, fiscal year-end or trailing 12 months closest to that date. NS=No stores; NA=Not available; R=Revised Store type: DTC=Direct-to-consumer; CH= Chain store; DC=Discount department store; DP=Department store; DS=Dollar store; HIC=Home improvement center; PX=Military exchange; SC= Supercenter (includes food in merchandise mix); SP= Specialty store; W=Warehouse club; FS=Furniture store Source: Home Textiles Today market research

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14

Home Textiles Today

January 30, 2012

Top 50

> hometextilestoday.com

RETAILING GIANTS RANK 2010

RANK 2009

STORE TYPE

COMPANY

HEADQUARTERS

11

10

DS

FamilyD ollar

Matthews, N.C.

2010

2009

$453

$432

% CHANGE

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

4.9%

5.5%

1.8%

NUMBER OF STORES 2010 2009

6,888

6,689

Fiscal year ended Aug. 28. Sales and store counts for trailing 12 months ended Feb. 26. Operates more than 6,800 general merchandise retail discount stores in 44 states. Stores are typically between 7,500 and 9,500 square feet offering merchandise at prices from less than $1 to $10. Home product sales, including textiles such as blankets, sheets and towels, increased to $1.06 billion, up 5.4% from $1.01 billion in 2009. Total sales for the chain increased 8.5% to $8.21 billion in 2010. Plans to re-accelerate its new store growth, opening approximately 300 new stores this fiscal year, a 50% increase over last fiscal year. Will also renovate some 600 to 800 stores.

12

13

DC

BigL ots

Columbus, Ohio

$424

$388

9.3%

8.6%

1.7%

1,398

1,361

Fiscal year ended Jan. 29. Opened 80 stores and closed 43 last year. Acquired Liquidation World this year and will enter the Canadian market with the takeover its 92 stores. Home sales, including domestics, stationery and home decor, increased 9.2% last year, increasing from a 15.2% share of sales in 2009 to 15.8% in 2010. The company believes the gains in domestics were stimulated by improved quality of offerings and improved value positioning. Sales of furniture and mattresses are tracked separately and accounted for 16.8% of 2010 sales, up from 15.2% in 2009. Comp-store sales increased 2.5%. Total 2010 sales were $5.0 billion, up 4.8% from $4.7 billion in 2009.

13

12

SP

Ikea

Conshohocken, Pa.

$415

$392

5.9% 12.2%

1.7%

37

37

Fiscal year ended Aug. 31. Sweden-based specialist with more than 300 stores in 38 countries. Sales and store counts are for U.S. only. Phone-order sales from a Baltimore call center and online sales are included. The textiles mix includes bed, bath and kitchen textiles, rugs, cushions and cushion covers, window treatments, blankets, throws and placemats and dining textiles. Total sales were $3.4 billion for the most previous fiscal year, up 6.25% from $3.2 billion. Will open its first Denver-area store in late July. The 415,000-square-foot unit will have a supervised children’s play area, 50 room settings, three complete model home interiors and a 500-seat restaurant serving Swedish specialties. Future plans include a second Massachusetts store in Somerville.

14

14

SP

Anna’sL inens

Costa Mesa, Calif.

$378

$350

8.0% 96.2%

1.5%

278

265

Fiscal year ended Jan. 31. Privately held, founded in 1987. Operates in 18 states and the District of Columbia. Also sells online, with about 20% of the online assortment not sold in the stores. Opened a net 13 stores in 2010, in existing markets. In 2011, plans to open 31 stores, including entry into three new markets. The new units will follow the recent footprint of 8,000 to 12,000 square feet and will feature decorative bedding and windows as core categories. Total 2010 sales were $393 million, up 7.7% from $365 million in 2009. Will increase the “things” side of the business with more decorative accessories and impulse buys. Plans a bigger push on the kids licensed side of the business with Disney character merchandise a key part of that mix.

15

15

CH

Sears

Hoffman Estates, Ill.

$308

$313

-1.6%

1.3%

1.2%

842

848

Fiscal year ended Jan. 29. Part of publicly held Sears Holdings, which also owns Lands’ End and Kmart. Operated 842 full-line stores across all 50 states and Puerto Rico at fiscal year end. Offers a wide array of products and service offerings across many merchandise categories, including home. Also sells online an assortment of home, apparel and accessory merchandise. Textiles brands including Casa Cristina, Country Living, Cannon and Ty Pennington Style. Total 2010 sales were $22.94 billion, down 3.1% from $23.67 billion in 2009. Comp-store sales decreased 3.6% driven by declines in the hardlines categories especially consumer electronics, as well as apparel.

16

16

SP

LuxuryL inens

Burlington, N.J.

$305

$300R

1.7%

8.3%

1.2%

443

425

Fiscal year ended Jan. 29. Part of publicly held Burlington Coat Factory Investments Holdings. Operates as a home furnishing and linens department in the company’s Burlington Coat Factory division of 443 stores in 44 states and Puerto Rico. In 2010, opened 25 new BCF stores and closed seven. Plans to open between 18 and 23 stores this year. Will also continue an aggressive refresh of its stores with new flooring and painting, as well as the implementation of upgraded lighting to make stores more energy efficient and easier to navigate. 2009 sales and store count were revised to reflect the change in fiscal year from the Saturday closest to May 31 to the Saturday closest to Jan. 31. Total consolidated 2010 sales were $3.67 billion, up 4.2% from $3.52 billion in 2009.

17

17

SP

HomeGoods

Framingham, Mass.

$278

$262

6.1% 14.2%

1.1%

336

323

Fiscal year ended Jan. 29. Part of The TJX Companies, sales and store counts are for the stand-alone stores as well as the HomeGoods sections in T.J.Maxx and Marshalls units in the U.S. and Puerto Rico. The off-price retailer sells a broad array of home basics, giftware, accent furniture, lamps, rugs, wall décor, decorative accessories, children’s furniture, seasonal merchandise and other fashions for the home. Home performed particularly well last year at HomeGoods. Same store sales at HomeGoods increased 6%. Total 2010 sales for the retailer were $1.96 billion, up 9.1% from $1.79 billion in 2009. HomeGoods plans to add a net 38 stores this year, including the conversion of 16 A.J. Wright units.

18

18

DC

TuesdayM orning

Dallas

$233

$235

-0.9% 28.2%

0.9%

845

858

Fiscal year ended June 30. Sales and store counts for trailing 12 months ended Dec. 31. Publicly held closeout retailer of upscale decorative home accessories, housewares, and gifts. Purchases first quality, brand name merchandise — never seconds, irregulars, refurbished or factory rejects — at closeout pricing and sells at prices well below those charged by department stores and specialty and catalog retailers. Opened its first store in 1974 and now operates some 840 stores in 41 states. Also sells online. Total 2010 trailing 12-month sales were $824.9 million, up 1.7% from $811.2 million in 2009. Continues to pursue attractive expansion and relocation opportunities in its existing store base.

19

19

W

Costco

Issaquah, Wash.

$210

$212

-0.9%

0.3%

0.8%

424

421

Fiscal year ended Aug. 29. Sales and store counts are for the trailing 12 months ended Feb. 13 and include only the stores in the U.S. and Puerto Rico and online sales. Opened three net new clubs during the trailing 12 months. Softlines, including domestics, home furnishings, apparel, small appliances and housewares, accounted for 10% of fiscal 2010 and 2009 sales. Textiles carried include bed and bath assortments, as well as rugs and window coverings. Total 2010 trailing 12 month sales were $80.2 billion, up 10.5% from $72.6 billion in 2009.

20

21

SC

Meijer

Grand Rapids, Mich.

$205

$203

1.0%

1.4%

0.8%

195

190

Family owned and operated. Also sells online. Operates stores throughout Michigan, Ohio, Indiana, Illinois and Kentucky. Opened five stores last year, including two smaller-format stores. At just over 100,000 square feet, smaller-format stores are about half the size of a typical store and feature a full-service grocery and pharmacy and fewer general merchandise items. The first of these opened in the Chicago suburb of Niles in early 2010 and the second opened in the Chicago suburb of Orland Park in the summer. Plans for 2011 include opening a 192,000 square-foot supercenter in Stevensville, Mich., and a third small format store in the Chicago suburb of Melrose Park. Is also remodeling 10 stores in Michigan and Ohio. Total 2010 sales estimated at $14.2 billion.

All home textiles sales information, except for publicly held companies that break out line-of-business sales for home textiles, are Home Textiles Today market research estimates. All data for calendar year ending Dec. 31, fiscal year-end or trailing 12 months closest to that date. NS=No stores; NA=Not available; R=Revised Store type: DTC=Direct-to-consumer; CH= Chain store; DC=Discount department store; DP=Department store; DS=Dollar store; HIC=Home improvement center; PX=Military exchange; SC= Supercenter (includes food in merchandise mix); SP= Specialty store; W=Warehouse club; FS=Furniture store Source: Home Textiles Today market research

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January 30, 2012

> hometextilestoday.com

RANK 2010

RANK 2009

STORE TYPE

COMPANY

HEADQUARTERS

21

20

HIC

Lowe’s

Mooresville, N.C.

2010

$204

2009

$207

Home Textiles Today

% CHANGE

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

-1.4%

0.4%

0.8%

15

NUMBER OF STORES 2010 2009

1,723

1,694

Fiscal year ended Jan. 28. Sales and store counts exclude units in Canada and Mexico. Also sells online. Opened 29 net new U.S. stores during 2010. Expects to open 25 to 30 new stores this year, one-fourth of which will be in Canada. Operates 14 U.S. distribution centers. Comp store sales increased 1.3% in 2010; comp store customer transations increased 0.9%; and comp store average tickets increased 0.5%. Sales of grills, grill accessories, patio furniture, holiday products and room air conditioners performed the best last year. Total 2010 sales were $48.8 billion, up 3.4% from $47.2 billion in 2009.

22

22

SP

Pier 1 Imports

Fort Worth, Texas

$196

$199

-1.5% 15.4%

0.8%

967

973

Fiscal year ended Feb. 26. Operated 967 stores in the U.S., 39 in Mexico and 79 in Canada at fiscal year end. Sales and store counts are U.S. only. Textiles accounted for 15.4% of 2010 total sales, down from the 17% in 2009. Sales from bedding and throws almost doubled last year, while kitchen textiles sales increased almost 20%. Total 2010 revenues were $1.27 billion, up 8.2% from 2009. In 2010, opened a new unit in Reno, Nev., and reopened two stores in California and Iowa. Also closed nine. Announced a three-year plan to open up to 80 stores and close about 30. This year, plans to open 11 U.S. stores and close three. Resumed online sales in June with the launch of a site-to-store initiative called Pier1.2Go. Will move to full e-commerce capability in 2012, after closing down its online business four years ago.

23

24

DTC

QVC

West Chester, Pa.

$194

$184

5.4%

3.7%

0.8%

8

7

Fiscal year ended Dec. 31. Part of publicly held Liberty Media. Markets and sells primarily through its televised shopping programs on the QVC networks and online. Operates its Studio Store located at QVC headquarters and six Outlet stores – two each in Pennsylvania and Delaware and one each in South Carolina and North Carolina. Opened the outlet store in Mebane, N.C., in November. Closed its flagship store at Minnesota’s Mall of America this May. Home, accounted for 48% of sales in 2010, up from 47% in 2009. Total 2010 U.S. revenues were $5.24 billion, up 5.4% from $4.97 billion in 2009. Bombay Company debuted its first full collection at QVC last year, including furniture, tabletop, top-of-bed, accessories and textiles. This February, Thom Filicia debuted his brand-new bedding collection, including an assortment of top-of-bed pieces.

24

23

W

Sam’sC lub

Bentonville, Ark.

$186

$190

-2.1%

0.4%

0.7%

609

605

Fiscal year ended Jan. 31. Division of publicly held Wal-Mart. Sales and store counts are for Sam’s Club division only, including online sales. As part of a corporate realignment, sales and store counts for Puerto Rico clubs are now included. Opened four new clubs last year. The home and apparel category, including textiles, as well as home improvement, outdoor living, grills, furniture, mattresses, apparel, jewelry, housewares and small appliances, accounted for 8% of 2010 and 2009 sales. Comp store sales increased 3.9% last year. Total 2010 sales were $49.5 billion up 3.5% from $47.8 billion in 2009.

25

25

DTC

HanoverD irect

Weehawken, N.J.

$183

$182

0.5%

NA

0.7%

4

3

Privately owned. Provides quality branded merchandise for the home through catalogs, e-commerce web sites and outlet locations for Domestications, The Company Store and Company Kids. Operates three Company Store Outlet locations in La Crosse, Madison and Pleasant Prairie, Wis., and one Domestications Outlet in Roanoke, Va. Opened the Pleasant Prairie outlet store in November 2010. Plans to open its fourth The Company Store Outlet in Kittery, Maine in early August. Hanover Direct also owns UnderGear, Silhouettes and Scandia Home.

26

30

DTC

CornerstoneB rands

Waltham, Mass.

$156

$132

18.2% 17.7%

0.6%

10

11

Fiscal year ended Dec. 31. Part of publicly held HSNi, which also owns HSN. The division is comprised of catalogs, related websites and retail and outlet stores for seven home and lifestyle brands. Sales and store counts are for its three largest brands, Frontgate, Ballard Designs and Garnet Hill, as well as Smith + Noble. Circulated more than 275 million catalogs in 2010. Home accounts for about 65% of Cornerstone’s sales, with the balance from apparel. Total 2010 sales were $880.9 million, up 18.8% from $741.7 million in 2009. Cornerstone’s growth was led in part by an increase in demand for luxury and home furnishings products. Closed the Garnet Hill Outlet in Manchester, Vermont.

27

27

SC

FredM eyer

Portland, Ore.

$143

$142

0.7%

NA

0.6%

130

130

Fiscal year ended Jan. 29. Part of publicly-held Kroger. Founded in 1922, Fred Meyer operates in the Pacific Northwest and Alaska. Stores, averaging 150,000 square feet, carry more than 225,000 items. The retailer provides one-stop shopping with food, health and beauty care, clothes, home products, electronics and more, all under one roof. Home products include bed and bath, home accents, furniture, housewares, home improvement, garden and seasonal goods. Opened its 131st store earlier this year, in Wilsonville, Ore.

28

26

HIC

HomeD epot

Atlanta

$141

$145

-2.8%

0.2%

0.6%

1,976

1,976

Fiscal year ended Jan. 30. Sales and store counts are for U.S. stores only, including Puerto Rico and the U.S. Virgin Islands and Guam, as well as sales online. Opened two new domestic stores last year, including one relocation, and closed one. Continued its partnership with Martha Stewart Living Omnimedia to offer the exclusive Martha Stewart Living brand of home products. Comp-store sales for U.S. stores increased 2.5% last year driven by an overall 2.4% increase in comp store customer transactions and a 0.5% increase in comp-store average tickets to $51.93. Total 2010 sales were $67 billion, up 1.2% from $66.2 billion in 2009.

29

33

SP

Crate & Barrel

Northbrook, Ill.

$138

$124

11.3% 10.6%

0.5%

174

174

Fiscal year ended Jan. 30. Lifestyle retailer selling midpriced to high-end home furnishings throughout the United States and Canada. Sales and store counts for U.S. only. Also operates eight CB2 units offering contemporary furnishings for apartments, lofts and homes. Sells online, including shipping to 10 countries. In 2010, entered into a franchise agreement with Dubai-based Al Thayer Group, opening two stores. In October, Finnish textile and clothing design house Marimekko, opened a 1,775-square-foot shop-within-a-shop in the retailer’s SoHo showroom in New York. In addition to Marimekko’s bedding and bath collections already carried, the boutiques will offer decorative pillows, table linens, ceramics, tabletop, kitchenware and accent furniture. Plans to roll out more than 20 in-store shops over the next three years.

30

31

DTC

BrylaneHome

New York

$136

$128

6.3%

8.7%

0.5%

NS

NS

Fiscal year ended Dec. 31. Division of Redcats, a part of French-based PPR operating a group of Europe and U.S.- based retail companies specializing in fashion and home furnishings. Sales are for Redcats USA’s BrylaneHome brand. BrylaneHome consists of two divisions: BrylaneHome, known as “America’s White Sale Catalog”, offering everything from fashion bedding and home accents to housewares and BrylaneHome Kitchen, offering hard-to-find kitchen and home essentials. Also sells through BrylaneHome.com and OneStopPlus.com, Redcats’ community e-commerce site dedicated to the large size segment. Redcats USA accounted for 34% of Redcats Group revenues in 2010, up from 33.6% in 2009. Total 2010 revenues for Redcats Group were 3,436 million Euros, up approximately 1.5% over 2009 revenues.

All home textiles sales information, except for publicly held companies that break out line-of-business sales for home textiles, are Home Textiles Today market research estimates. All data for calendar year ending Dec. 31, fiscal year-end or trailing 12 months closest to that date. NS=No stores; NA=Not available; R=Revised Store type: DTC=Direct-to-consumer; CH= Chain store; DC=Discount department store; DP=Department store; DS=Dollar store; HIC=Home improvement center; PX=Military exchange; SC= Supercenter (includes food in merchandise mix); SP= Specialty store; W=Warehouse club; FS=Furniture store Source: Home Textiles Today market research

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16

January 30, 2012

Home Textiles Today

Top 50

> hometextilestoday.com

RETAILING GIANTS RANK 2010

RANK 2009

STORE TYPE

COMPANY

HEADQUARTERS

31

28

DP

Bloomingdale’s

New York

2010

2009

$135

$138

% CHANGE

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

-2.2%

NA

0.5%

NUMBER OF STORES 2010 2009

45

40

Fiscal year ended Jan. 29, part of publicly-held Macy’s Inc. Opened a new full-line store in Santa Monica, Calif., in 2010. And, launched a new Bloomingdale’s Outlet store concept, with four new outlets opening last Fall: one each in Paramus, N.J., Woodbridge, Va., and Miami and Sunrise, Fla. Expects to open three new outlets this year. Opened in February 2010 a store in Dubai, United Arab Emirates, under a license agreement with Al Tayer Insignia. Has increased social media marketing efforts and adopted mobile technology. Last fall, allowed customers to check in at any Bloomingdale’s store on Foursquare to be automatically entered for prizes.

32

29

SP

RestorationH ardware

Corte Madera, Calif.

$132

$134

-1.5%

NA

0.5%

104

107

Owned by private equity firms, Catterton Partners and Tower Three Partners. Upscale multi-channel retailer of premium goods, operating through stores in the U. S. and Canada, online and catalogs. Sales and store count for U.S. only. Catalogs include RH Home, RH Outdoor & Garden and RH Baby & Child. Continued to reposition itself to the high-end of the market, renovating 85 stores to the “gallery” format. First introduced this format with the opening of its new stores in New York City’s Flatiron District and the Town Center Corte Madera shopping center in 2009. Last fall, opened its first store for the design trade with a 9,500-squarefoot flagship store in San Francisco’s Design District. May file an IPO in 2011 potentially raising as much as $300 million. The retailer went private in 2008.

33

34

DS

DollarG eneral

Goodlettsville, Tenn.

$126

$120

5.0%

1.0%

0.5%

9,372

8,828

Fiscal year ended Jan. 28. Operates in 35 states. Units average 7,200 square feet offering merchandise at substantial discounts. Home accounted for 7% of 2010 sales, down from 7.4% in 2009. Total 2010 sales were $13.03 billion, up 10.5% from $11.8 billion in 2009. Same-store sales increased 4.9%. Launched the True Living line of home products in 2010. Will continue to upgrade selection, quality and presentation of its private brand offerings in home, including textiles. Made significant progress in expanding its private brand efforts in textiles last year. Plans to open 625 stores in 2011 entering Connecticut, New Hampshire and Nevada. Plans to open its first stores in California in 2012.

34

32

DP

The Bon-Ton Stores

York, Pa.

$125

$126

-0.8%

4.2%

0.5%

275

278

Fiscal year ended Jan. 29. Currently operates stores in 23 states in the Northeast, Midwest and upper Great Plains under the Bon-Ton, Bergner’s, Boston Store, Carson Pirie Scott, Elder-Beerman, Herberger’s and Younkers nameplates and, in the Detroit area, under the Parisian name. Also sells online. In textiles, offers exclusive private brands as well as national brands such as Calvin Klein, Croscill, LivingQuarters Loft, MaryJanes Home and Tommy Hilfiger. Home accounted for 16.8% of 2010 sales, the same as in 2009. Total 2010 sales were $2.98 billion, up 0.7% from $2.96 billion in 2009. Comp store sales increased 0.9% up from a decrease of 5.4% in 2009. Closed three stores at the end of its fiscal year. In November, will open a Herberger’s in Edina, Minn., and a Carson’s store in Kokomo, Ind., replacing the Elder-Beerman store there.

35

35

DC

Shopko

Green Bay, Wis.

$94

$93

1.1%

NA

0.4%

138

136

Privately-held affiliate of Sun Capital Partners. Sales and store counts exclude five Shopko Express Rx stores. Operated 136 Shopko stores and two Shopko Hometown locations in 13 states throughout the Midwest, Mountain and Pacific Northwest regions at years end. Also sells online, having recently renovated its e-commerce site. Last summer, introduced Shopko Hometown, a new concept store designed to meet the needs of smaller, underserved markets, in Oconto and Kewaunee, Wis. The stores offer a broad merchandise selection, as well as pharmacy services and eye care centers, but in a smaller format, at 36,000 square feet. Both the Oconto and Kewaunee stores replaced Pamida stores. Plans to have a total of 10 Hometown stores by the end of 2011. Total 2010 sales estimated at $2 billion.

36

36

DP

Belk

Charlotte, N.C.

$78

$75

4.0%

2.2%

0.3%

305

305

Fiscal year ended Jan. 29. Operates stores in 16 states, primarily in the southern U. S. Also sells online. Opened a new store in Port Orange, Fla., last year and completed major remodel projects in 10 stores. Plans to complete three store expansions and open one replacement store this year. Home accounted for 9% of 2010 sales, the same as in 2009. Total 2010 sales were $3.51 billion, up 5% from $3.35 billion in 2009. Comp store sales increased 5.1% compared to a decrease of 4.6% in 2009. Last year, launched a new logo and tag line, “Modern. Southern. Style,” representing the first significant change to Belk’s brand identity since 1967.

37

38

DTC

CountryC urtains

Lee, Mass.

$73

$72

1.4% 93.6%

0.3%

26

25

Private family and employee owned company founded in 1956. Sells through its catalog, website and retail stores located in 13 states in Connecticut, Delaware, Illinois, Massachusetts, Maryland, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia and Vermont. Known for its quality window treatment designs and window decorating services, the company also offers bedding, pillows and coordinates, including chair pads and table linens and home décor, including rugs. In November 2010, opened its 26th store and first one in Pennsylvania, in Warrington.

38

37

DP

Dillard’s

Little Rock, Ark.

$73

$75

-2.7%

1.2%

0.3%

308

309

Fiscal year ended Jan. 29. Operates in 29 states. Carries a broad selection of apparel and home furnishings from national brand merchandise and exclusive brands. Accounting for 6% of total sales, the home and furniture category was down only 3.6% last year, compared to a 22.4% decrease in 2009 when the category accounted for 7% of total sales. Total 2010 sales were $6.02 billion, up 2.2% from $5.89 billion in 2009. Opened two stores last year in Austin and Fairview, Texas, and closed three in Helena, Mont., Coral Springs, Fla., and Miami. No planned store openings for 2011. Will close the unit in Decatur, Ala., midyear. Purchased a former Target distribution center in Maumelle, Ark., with plans of converting the building into a fulfillment center to support online growth.

39

40

PX

Army & Air Force Exchange Svc. Dallas

$72

$69

4.3%

1.0%

0.3%

198

183

Revenues based on worldwide sales, excluding gasoline. Market areas include worldwide Army/Air Force posts and bases serving active-duty personnel, guard and reservists, retirees and their families, some 7 million customers. Receives no funds from the Department of Defense. Has main stores or shopping centers worldwide and in every state. Textiles are carried in 198 main stores, the online website AAFES.com, and in print catalogs. Customers can also shop and buy through mobile apps for the iPhone and Blackberry. Worldwide total 2010 sales were $7.3 billion.

40

39

DTC

Lands’E nd

Dodgeville, Wis.

$71

$70

1.4%

NA

0.3%

14

14

Fiscal year ended Jan. 29. Part of publicly held Sears Holdings, which also owns Kmart and Sears. Direct merchant offering traditionally-styled products for the home through catalogs, including the specialty Lands’ End Home catalog, its retail stores, its website and Sears full-line stores. Lands’ End retail stores, averaging 8,600 square feet, offer merchandise primarily from catalog and Internet channel overstocks. Lands’ End Shops inside Sears’ full-line stores numbered 292 at years end. Each shop offers products for women, men and kids and select stores offer items for the home.

All home textiles sales information, except for publicly held companies that break out line-of-business sales for home textiles, are Home Textiles Today market research estimates. All data for calendar year ending Dec. 31, fiscal year-end or trailing 12 months closest to that date. NS=No stores; NA=Not available; R=Revised Store type: DTC=Direct-to-consumer; CH= Chain store; DC=Discount department store; DP=Department store; DS=Dollar store; HIC=Home improvement center; PX=Military exchange; SC= Supercenter (includes food in merchandise mix); SP= Specialty store; W=Warehouse club; FS=Furniture store Source: Home Textiles Today market research

htt120104_012_018 16

1/16/2012 4:59:19 PM


Invistia.indd 1

1/13/2012 8:56:48 AM


18

January 30, 2012

Home Textiles Today

Top 50

> hometextilestoday.com

RETAILING GIANTS RANK 2010

RANK 2009

STORE TYPE

COMPANY

HEADQUARTERS

2010

2009

41

42

FS

Ashley Furniture HomeStores

Arcadia, Wis.

$70

$64

% CHANGE

HOME TEXTILES AS SHARE OF A % OF STORE’S HOME TEXTILES TOTAL SALES UNIVERSE

9.4%

2.9%

0.3%

NUMBER OF STORES 2010 2009

422

401

Manufacturer’s dedicated store network of licensed and company-owned promotional to midpriced stores throughout the United States. Figures exclude those from the Furnish 123 stores, a separate concept licensed by Ashley, and those retail units located outside the U.S. Ashley’s textiles mix includes comforter sets, rugs, pillows and throws. Added a net 21 units in 2010. Ashley is looking to open retail stores in China. The company currently has licensed stores in Vietnam, Japan, Costa Rica, Mexico, Guatemala, Jordan, Indonesia and many other world markets.

42

41

DTC

HSN

St. Petersburg, Fla.

$69

$66

4.5%

3.3%

0.3%

NS

NS

Fiscal year ended Dec. 31. Part of publicly held HSNi, which also owns Cornerstone Brands. HSN sells third party and private label merchandise directly to consumers through its television home shopping programming and its website. In summer 2011, names HauteLook.com gmm Arthur Lewis senior vp of merchandising, digital commerce. Textile brands include Croscill, Nate Berkus, Cottage Collection, John Robshaw Bedding, Nourison Rugs and Sure Fit Slip Covers. Home which also includes electronics, fitness and housewares, accounted for 54.6% of 2010 sales, down from 55.5% in 2009. Total 2010 sales were $2.12 billion, up 5.4% from $2.01 billion in 2009. Vern Yip, interior design celebrity, will debut his new home collection on HSN in July. The collection will include bedding, window treatments, rugs, furniture, lighting and décor items.

43

43

SP

Hobby Lobby Stores

Oklahoma City

$62

$60

3.3%

NA

0.2%

467

432

Privately held and family-owned, founded in 1972. Currently operates 479 stores in 40 states. Also sells online. Stores carry over 60,000 products in 13 departments. The home accent department includes textile products such as pillows, throws, table runners, quilts and rugs. Figures include seven-store home furnishings retailer, Hemispheres, operating one unit in Oklahoma and six in Texas, including an outlet store. Hemispheres’ textiles mix includes hand-knotted rugs and luxury bedding. Plans to open some 35 to 40 stores in 2011, having already opened 14 so far this year. Total 2010 sales estimated at $2.2 billion.

44

45

DS

DollarT ree

Chesapeake, Va.

$61

$58

5.2%

1.0%

0.2%

4,015

3,806

Fiscal year ended Jan. 29. At fiscal year end, operated 4,101 discount variety retail stores under the names of Dollar Tree, Deal$, Dollar Tree Deal$, Dollar Giant and Dollar Bills, in 48 states, the District of Columbia and Canada. Also sells online. Sales and store counts for U.S. only. About 95% of stores sell items for $1.00 or less in the U. S. and $1.25 or less in Canada. Opened 235 stores, expanded 95 stores and closed 26 stores last year. Also made its entry into Canada with the acquisition of Vancouver, British Columbia-based Dollar Giant. The 86-store chain was acquired in November. Home, including kitchen linens and textiles, accounted for 45.8% of 2010 sales, down from 46.8% in 2009. Total 2010 sales were $5.88 billion, up 12.4% from $5.23 billion in 2009.

45

44

DTC

LinenS ource

Beverly, Mass.

$59

$59

0.0% 88.4%

0.2%

NS

NS

Part of Orchard Brands, a portfolio company of San Franciso-based Golden Gate Capital. Linen Source was officially launched under the Orchard Brands umbrella in January 2011 as part of the Appleseed’s Group along with The Tog Shop and Monterey Bay. Linen Source, offering premium linens and home décor items through its monthly catalog and website, was acquired by Orchard Brands in March 2010. Orchard Brands filed for Chapter 11 bankruptcy protection on Jan. 19 of this year, only to emerge a few months later, in April. Total 2010 sales for Linen Source were basically flat at $66 million.

46

47

SP

GardenR idge

Houston

$57

$55

3.6%

NA

0.2%

48

43

Privately held, fiscal year ended January. Is owned by a group of investors led by New York-based private equity firm Three Cities Research. Began as a one-store operation in San Antonio, Texas, in 1979, and now operates in 18 Midwestern and Southern states. Opened five stores last year. Is opening at least three stores this year including one in Humble, Texas that recently opened and ones in Richmond, Va., and Orlando, Fla. Textiles include bed-in-a-bag with expansive product mix, as well as sheets, top-of-bed, towels, window coverings, pillows, tabletop linens, area rugs, utility bedding products and patio furniture cushions. Also features extensive seasonal textiles and décor products.

47

46

DC

SteinM art

Jacksonville, Fla.

$55

$56

-1.8%

4.7%

0.2%

264

267

Fiscal year ended Jan. 29. Offers moderate to better fashion apparel for women and men, as well as accessories, shoes and home fashions at prices competitive with off-price chains. Stores are located in 29 states and the District of Columbia. Also sells online. The home segment, which has been given new focus, had sales of $137.7 million in 2010, down just 0.9% from $139 million in 2009. Home sales had decreased almost 14% the previous fiscal year. Total 2010 sales were $1.18 billion, down 3.1% from $1.22 billion in 2009. Will continue to make growth in the home category a priority this year. Opened two stores and closed five last year. Plans to open three to five stores, close three to five stores and relocate about five in 2011.

48

48

DP/DTC

The Neiman Marcus Group

Dallas

$53

$50

6.0%

1.4%

0.2%

73

71

Fiscal year ended July 31. Sales and store counts for trailing 12 months ended Jan. 29. Operates 41 Neiman Marcus stores across the U. S. and two Bergdorf Goodman stores in Manhattan. Also operates 30 off-price stores under the Neiman Marcus Last Call brand, including three Last Call Studio stores. The direct-toconsumer business includes print catalog and online operations for Neiman, Bergdorf Goodman and Horchow. Earlier this year launched a website for the Neiman Marcus Last Call brand. Total 2010 trailing 12-month sales were $3.82 billion, up 7.6% from 2009. Opened a new line of outlet stores last year called Last Call Studio offering moderately priced goods aimed at the value-minded shopper. The stores opened in Dallas, Rockville, Md., and Paramus, N.J.

49

50

SP

Cost Plus World Market

Oakland, Calif.

$46

$44

4.5%

5.0%

0.2%

263

268

Fiscal year ended Jan. 29. Publicly held specialist in 30 states under the names World Market, Cost Plus World Market, Cost Plus Imports and World Market Stores. Also sells online. The stores, averaging 15,700 square feet of selling space, have products imported from more than 50 countries. Returned to profitability last year for the first time since fiscal 2005. Home furnishings accounted for 60% of sales last year, up from 59% in 2009. Total 2010 sales were $916.6 million, up 5.7% from 2009. Comp store sales increased 7.2% compared to a decrease of 7.1% in 2009. In 2010, opened two new stores in the existing markets of San Antonio, Texas, and Chicago and closed seven. The company is currently testing consumable products in three Bed Bath & Beyond stores. Earlier this year, closed four underperforming stores.

50

49

DC

Fred’s

Memphis, Tenn.

$46

$46

0.0%

2.5%

0.2%

677

669

Fiscal year ended Jan. 29. Operated 677 discount general merchandise stores in 15 states at years end, including 24 franchised units. Stores average 14,319 square feet of selling space. About 46% of the stores have full service pharmacies. Apparel and linens accounted for 7.6% of total sales in 2010, down from 7.9% in 2009. Total 2010 sales were $1.84 billion, up 3% from $1.79 billion in 2009. In 2010, introduced and began the roll-out of its Core 5 Program highlighting key categories, including Home. More than 200 stores were remodeled and refurbished last year, implementing the new program. Plans another 200 remodels and upgrades this year. Also plans to open 20 to 25 stores and close 10 stores in 2011.

All home textiles sales information, except for publicly held companies that break out line-of-business sales for home textiles, are Home Textiles Today market research estimates. All data for calendar year ending Dec. 31, fiscal year-end or trailing 12 months closest to that date. NS=No stores; NA=Not available; R=Revised Store type: DTC=Direct-to-consumer; CH= Chain store; DC=Discount department store; DP=Department store; DS=Dollar store; HIC=Home improvement center; PX=Military exchange; SC= Supercenter (includes food in merchandise mix); SP= Specialty store; W=Warehouse club; FS=Furniture store Source: Home Textiles Today market research

htt120104_012_018 18

1/16/2012 5:00:55 PM


20

Home Textiles Today

January 30, 2012

Top 15

HTT’s Top 15 Supplier Giants

> hometextilestoday.com

(sales in $millions)

SIGNIFICANT EVENTS Thanks to high single-digit increases in bath rug sales and some more mod-

Mohawk Home

1

Est. ‘11 Sales

‘10 Sales

% Change

1 (’10)

$636

$620

2.6%

2 3 (’10)

Welspun Est. ‘11 Sales

‘10 Sales

% Change

$550

$498

10%

Alok US

3

Est. ‘11 Sales

‘10 Sales

% Change

5 (’10)

$430

$396

8%

4 6(’10)

‘10 Sales

$348

$308

% Change

13%

WestPoint Home

5

Est. ‘11 Sales

‘10 Sales

% Change

4 (’10)

$345

$423

-18%

6 2 (’10)

Springs Global US Est. ‘11 Sales

‘10 Sales

% Change

$319

$542

-41%

Pacific Coast Feather

7

Est. ‘11 Sales

‘10 Sales

8 (’10)

$294

$289

htt120104_020_022 20

SIGNIFICANT EVENTS In a year of streamlining, Welspun closed its satellite office in North Carolina and idled its bedding plant in Mexico as it pulled back from fashion bedding to concentrate on category replenishment business. In February, the multi-category mill launched a line with designer Tom Filicia for QVC. It also continued to pursue expansion outside the U.S.

SIGNIFICANT EVENTS Alok enhanced capacity in weaving and processing, helping to grow its already dominant sheet category. It strengthened US infrastructure and signed licensing agreements to expand into new retail channels. During its second full year in the towel business, Alok landed some major retail placements. The cotton blanket business grew substantially, and the mill added four new categories: soft window, table linens, shower curtains and basic bedding.

SIGNIFICANT EVENTS Carpenter scored a coup when the “2 Guys, 600 Pillows” promotional video

Carpenter Est. ‘11 Sales

est growth in its area and accent rug sales, Mohawk home was able to nudge up its total business performance for 2011 by almost 3%. Bath rugs enjoyed a strong year, generating a 7% increase to $210 million. New product innovations helped fuel growth, as did efforts to be more promotional with offerings. Sharper marketing was also credited with sales improvements and offsetting some volatile raw material costs. The rug category – which for Mohawk Home includes tufted, printed, and woven area and accent sizes – also posted gains, albeit a narrower 3%, to $370 million. The growth stemmed primarily from price-point stabilization. Product innovations continue to be critical to the product growth in this category as well. The ongoing challenges in the macro-economy resulted in the company’s more focused approach to its rug business with a greater emphasis on value-oriented goods.

% Change

it commissioned went viral, garnering more than 150,000 clicks and winning a Webby award. As part of an ongoing effort to communicate with consumers directly – both through its SleepBetter. org web site and direct campaigns — Carpenter tapped sleep specialty Dr. Lisa Shives – also known as “Dr. Lisa, The Sleep M.D.” — as its resident sleep authority under a multi-year contract.

SIGNIFICANT EVENTS WestPoint underwent a leadership shake-up in June as industry veteran

Norman Savaria became the company’s new president and ceo, succeeding John Piazza. Savaria is the third ceo installed in the job since 2005 by billionaire investor Carl Icahn, whose Icahn Enterprises owns a majority stake in the company. In another key appointment, former Linens ’n Things vp Taran Chernin was named executive vp and chief merchandising officer.

Springs USA’s business continued to decline as a percentage of the Brazilian-based Springs Global’s overall business, contributing less than 50% of total sales through most of the year. The company continues to invest heavily in new branded programs – most of them involving Springs-manufactured hard goods as well as textiles. New launches announced in 2011 included Paula Dean and Nate Berkus, both scheduled to debut in 2012.

SIGNIFICANT EVENTS

SIGNIFICANT EVENTS This is the first time PCF’s numbers include sales from United Feather and Down. The two companies announced their merger in March 2011. Overall, the combined numbers reflect a mixed year. Down and down alternative comforters sales declined; while pillows and mattress pads were up slightly.

2%

1/16/2012 5:05:12 PM


22

Home Textiles Today

8 10 (’10)

9 13 (’10)

January 30, 2012

Top 15

> hometextilestoday.com

SIGNIFICANT EVENTS Hollander managed a modest increase in the difficult category of down and down alternative comforters as well as a boost in pillows. Sales of mattress pads remained even, however. This year, the company opened a Hollander full-service office in Mumbai and made key additions to its sales team.

Hollander Home Fashions Est. ‘11 Sales

‘10 Sales

% Change

$285

$272

5%

SIGNIFICANT EVENTS Among the area rug companies on HTT’s top 15 list this year, Oriental

Oriental Weavers/ Sphinx Est. ‘11 Sales

‘10 Sales

% Change

$273.5

$242

13%

Weavers/Sphinx posted the highest sales gain at 13%. Benefitting its business, the company noted, was its ability to make the best of both its worlds — domestic manufacturing and overseas production capabilities. OW/Sphinx was able to overcome negative impacts from unstable raw material costs and increases in retail price points by exploiting its U.S. manufacturing while still working with its Egypt-based roots.

SIGNIFICANT EVENTS A house of domestically-made, synthetic fiber soft floor coverings, Shaw

Shaw Living

10

Est. ‘11 Sales

‘10 Sales

% Change

9 (’10)

$271.3

$274

-1

Living had its own share of challenges in 2011 with raw material costs and price point volatility — just like many of its closest competitors. Still, the company managed to maintain its rug sales status quo at $220 million and took only a 5% hit on bath rug sales, going to $51.3 million from 2010’s $54 million rates. Shaw blamed mostly shifts in product mixes at retail for the lackluster results in the year. Environmental initiatives continued to be important to Shaw’s mission, as the company furthered its efforts to offer recyclable rugs and employ eco-friendly production initiatives at its many plants.

SIGNIFICANT EVENTS 1888 Mills enjoyed double-digit sales gains thanks to what it called contin-

1888 Mills

11

Est. ‘11 Sales

‘10 Sales

% Change

14 (’10)

$270

240

12.5

ued growth in both its bath towels and kitchen textiles — which posted $200 million and $34 million in sales for 2011 respectively. Also giving business a lift: the launch of its exclusive partnership with HGTV celebrity designer David Bromstad for bath and bedding; the company’s acquisition of window covering manufacturer Beacon Looms; and the opening of a commercial apparel facility in Ghana.

SIGNIFICANT EVENTS Sleep Innovations took an “adapt or die” attitude with a push in product

Sleep Innovations

12

Est. ‘11 Sales

‘10 Sales

% Change

7 (’10)

$261

$275

-5%

Maples Rugs

13

Est. ‘11 Sales

‘10 Sales

% Change

11 (’10)

$240

$260

-7

SIGNIFICANT EVENTS Domestic manufacturer Maples Rugs, which has produced synthetic machinemade area, accent and bath rugs for three generations, was unable to fight off a single-digit sales decline this year. Even though the family-owned-and-operated company increased placements with new and existing retail customers, a sharp decline in consumer demand hurt the business. The pain was distributed evenly between area/accent rugs and bath rugs — each of which went down 7.7% to $120 million.

SIGNIFICANT EVENTS A major force in sheets, Divatex also does enough business in its ancillary categories — duvet sets and throws, in particular — to thrust it into the Top 15. The company marked its 25th anniversary last year the way it does most things: quietly and under the radar.

Divatex

14

Est. ‘11 Sales

‘10 Sales

% Change

NA (’10)

$230

NA

NA

SIGNIFICANT EVENTS Despite a lot of shifts in categories of business and channels of distribution, CHF managed to hold the line on sales in 2011. While the bedding business declined, the bath business jumped significantly and window remained flat.

CHF Industries

15

Est. ‘11 Sales

‘10 Sales

% Change

15 (’10)

$224

$224

0

htt120104_020_022 22

development. Michael Thompson, president and ceo noted that “aggressive customer programs and sell-through initiatives positioned us for continued growth in 2012.” The company tapped Olympic swimmer Dara Torres as a spokesperson and moved its gel-infused memory foam out of the bedroom with products for the bath as well as a foam chair for kids and teens.

1/16/2012 5:06:57 PM


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1/4/2010 5:48:42 PM


24

Home Textiles Today

Top 5

January 30, 2012

> hometextilestoday.com

Supplier Giants Bath Accessories 1. Allure Home Creation Boonton, N.J.

2. Saturday Knight Ltd. Cincinatti.

3. Creative Bath Products Central Islip, N.Y.

4. Croscill Home New York

5. Ex-Cell Home Fashions New York

’11 Sales $mil

’10 Sales $mil

% Chg.

Comments

$82

$80

2.5%

Allure made sales gains as a result of its focus on developing core basic programs in solid colors, metal and other mediums, and at sharper price points..

54

NA

NA

42

48

-12.5

The company blames an over-abundance of closeout products available to retailers in the marketplace to its declines in sales and placements over the year.

35

35

0

Like its sister company Ex-Cell, Croscill maintained its sales flat for a second consecutive year; fashion offerings continued to be the company’s focus in the category.

12

12

0

Lke its sister company Croscill, Ex-Cell maintained its sales flat for a second consecutive year. .

New placements with major retailers paired with continued growth among existing customers helped drive double-digit growth for the company’s total bath sales.

Bath Rugs 1. Mohawk Home Sugar Valley, Ga.

2. Maples Rugs Scottsboro, Ala.

3. Shaw Living Dalton, Ga.

4. Welspun USA New York

’11 Sales $mil

’10 Sales $mil

% Chg.

$210

$196

7%

New product innovations helped fuel growth; promotional efforts, including end-cap assortments, helped drive overall sales and offset raw material costs.

120

130

-8

Despite increased placements with new and existing retail customers, consumer demand was low in the year and resulted in sales declines.

51

54

-5

Shifts at retail in Shaw’s product mix negatively impacted sales..

50

NA

NA

A few years after entering the business through its acquisition of Sorema, Welspun moves into the top ranks, displacing Springs.

5. Faze Three Ltd. Columbus, Ind.

18

17

6

Comments

New York

2. 1888 Mills Griffin, Ga.

3. Trident New Delhi, India

4. Loftex New York

5. WestPoint Home New York

The year proved challenging for bath accessories suppliers. After many years of sustaining a place on this list, Springs Industries dropped off as its category sales fell to $4 million from last year’s $11 million – a 42% loss from 2009. Additionally, Creative Bath suffered a double-digit dip at the hands of staunch competition from closeouts in the marketplace. And sister Ex-Cell and Croscill hung on to their same sales from the prior year – again. But it was not a bad 2011 for all. Longtime player Saturday Knight muscled into second place with $42 million thanks to double-digit strides with new and existing retail customers.

Wrap-Up The year ended with a toss-up among winners and losers in the top five bath rug players. Mohawk Home and Faze Three — both of them suppliers of natural fibermade product — posted gains. But synthetic-fiber powerhouses Maples and Shaw faced obstacles that saddled them with declines.

Faze Three maintained its cotton programs despite challenges; benefitted from renewed interest in cotton-made products as pricing stabilized; also helpful were new bath yarns and additional programs.

Bath Towels 1. Welspun USA

Wrap-Up

’11 Sales $mil

’10 Sales $mil

% Chg.

$290

$294

2%

Welspun sought to tackle high cotton prices by offering towel constructions that could retail from $4.99 up, including an all-poly construction.

200

183

9

1888 maintained and added key placements during a volatile/competitive period impacted by rising cotton prices.

185

157

18

Abhishek Industries changed its corporate name to Trident early in the year, syncing up with its brand identity. The mill also launched a major capacity expansion for which it will spend $500 million over two years.

119

NA

NA

Loftex makes its debut in the Top 5 list for this category. In branded action during the year, it launched N Natori in bath, a diffusion line for its luxury Natori collection.

95

114

-17

WestPoint stepped up its focus on technological attributes, introducing the snag-resistant Snag No More towel and the eco-friendly Second Nature towel made of 50% Modal and 50% cotton.

Comments

Wrap-Up The mantra for towel manufacturers facing higher cotton prices became “a pound lighter and a dollar more expensive.” Not only did they drop bulk, they retreated from the oversized constructions that proliferated during the aught years. Manufacturers also experimented with alternative fiber blends to keep prices from ballooning too far.

Source for all chart information: Home Textiles Today market research.

htt120104_024_032 24

1/16/2012 5:12:32 PM


26

Home Textiles Today

Top 5

January 30, 2012

> hometextilestoday.com

Supplier Giants Blankets 1. Sunbeam Boca Raton, Fla.

2. Berkshire Sugar Valley, Ga.

3. WestPoint Home New York

4. Pendleton Woolen Mills Portland, Ore.

5. Alok Industries US New York

Wrap-Up

’11 Sales $mil

’10 Sales $mil

% Chg.

$124

$121

2%

While a number of competitors have jumped into the electric blanket business, the Sunbeam brand keeps it at the top of the heap.

85

73

16

Growth in core basics as well as increased business in mid-tier accounts helped bolster Berkshire.

47

58

-19

WestPoint built its blanket programs around solutions but also exited unprofitable programs.

25

23

9

22

NA

NA

Comments

Pendleton continues to grow and saw its last quarter programs sell well with early re-orders. The company reports growth in all channels. Although a relatively new player in the blanket category, Alok went after the business aggressively.

Table Linens 1. Town and Country Living New York

2. Elrene Home Fashions New York

3. Bardwil Linens New York

4. Homewear Linens/Sam Hedaya New York

5. Windham Weavers (Natco Home) West Warwick, R.I.

’11 Sales $mil

’10 Sales $mil

% Chg.

$174

$174

0%

Maintained business with existing customers; gained new placements with licensed programs; coped with volatility in raw material pricing.

Comments

85

82

4

Continued steady growth in the category by maintaining its core placements as well as adding newness to many assortments through pattern updates and infusing seasonal colors into basics.

62.7

64

-2

Retailers were guarded with their replenishments of basic goods, namely solid colored table linens; retailers also kept overall inventories tighter over the year.

35

30

17

Increased market share came as the company expanded its design offerings and developed new products for the business for both Homewear-branded and private-label products.

17

17

0

Placements with existing retail customers were maintained.

Throws ’11 Sales $mil

’10 Sales $mil

% Chg.

1. The Northwest Company Roslyn, N.Y.

$115

$109

6%

Comments

Northwest reported its strongest year ever due to its profitable licensing partnerships. Evergreen properties, such as the NFL license, allow the company to play at virtually every retail tier.

Hendersonville, N.C.

55

53

4

3. Ellery Homestyles

31

30

3

Ellery relaunched its corporate website during the fall, providing image galleries, color swatches and insight into the technology behind its products.

24

21

14

New accounts on the customer list added to Berkshire’s positive bottom line.

12

10

20

The company saw small increase in its filled blankets as well as throws.

New York

4. Berkshire Blanket Sugar Valley, Ga.

5. Downlite Mason, Ohio

Wrap-Up Raw material pricing volatility had its hand in the table linens business, causing some upheaval, as did retailers’ more cautious approach to inventories. But two top five companies – Elrene and Homewear Linens – overcame these challenges and reported gains. Bardwil faced some troubles with its core staples of solid-colored basics as retailers kept their shelf space for these goods limited. Top dog Town and Country and its fifth-place counterpart, Windham Weavers, kept the status quo for yet another year with flat sales each.

Wrap-Up

The family-owned, fourth generation gift and home décor manufacturer is planning a series of market events during the winter 2012 shows to celebrate its 80th anniversary.

2. Manual Woodworkers

While still counting on last quarter cold snaps for final numbers, the category saw increases in multiple channels. A bitter winter in early 2011 created a real boom for business that carried through to the sell-in season for winter 2012.

As consumers avoided big-ticket purchases for much of the year, ancillary accessories categories offered shoppers an opportunity to splurge a little without spending a lot. Licensing and specialty products did well in the category. A second half rally helped deliver a modest increase.

Source for all chart information: Home Textiles Today market research.

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1/18/2012 11:06:27 AM


HTT_Jan30th_Gul_Ahmed_issue.indd1 1

1/17/2012 10:47:12 AM


28

Home Textiles Today

January 30, 2012

Top 5

> hometextilestoday.com

Supplier Giants Decorative Pillows 1. Brentwood Originals Carson, Calif.

2. Spencer N. Enterprises El Monte, Calif.

3. Arlee Home Fashions New York

2. Home Fashions International New York

5. Newport/Layton Home Portland, Ore.

’11 Sales $mil

’10 Sales $mil

% Chg.

$138

$138

0%

63

63

0

Sales strength was experienced at the mass merchant, midtier department store, and specialty chain levels despite headwinds of macro-economic downtrends.

54

52

4

Placements with new customers paired with gains from new product offerings drove sales.

32.5

34

-4

The company started out the year with strong orders, but then lost business from a major account when the retailer dropped “two pack” pillow sets from its assortment.

26

24

8

Most of the sales increase stemmed from growing business with existing customers.

Comments

Margin pressure lessened as raw materials stabilized; fashion and better price points dominated, benefitting the company.

Down (& Down Alt.) Comforters ’11 Sales $mil

’10 Sales $mil

% Chg.

$108

$88

23%

Downlite saw growth in a difficult year with new introductions, including a line for allergy sufferers endorsed by Dr. Jeffrey Miller.

80

86

-7

The results include business from merger partner United Feather and Down.

73

70

4

Despite higher costs on raw materials, Blue Ridge Home managed a small increase. The cost and availability of down continues to plague makers.

44

49

-10

Price increases on raw materials across the board impacted the bottom line. Controlled cost cutting and a strong hotel and institutional business were the focus for the company.

40

37

8

Hollander produced the first line of down bedding certified by the Asthma and Allergy Foundation of America (AAFA) as asthma and allergy friendly.

1. Downlite Mason, Ohio

2. Pacific Coast Feather Seattle

3. Blue Ridge Home Fashions Irwindale, Calif.

4. Phoenix Down Totowa, N.J.

5. Hollander Home Fashions Boca Raton, Fla.

Comments

Foam Pillows/Toppers 1. Carpenter Richmond, Va.

2. Sleep Innovations West Long Branch, N.J.

3. Hudson Industries New York

4. Sleep Studio New York

5. Sinomax Houston, Texas

’11 Sales $mil

’10 Sales $mil

% Chg.

$329

$299

10%

Carpenter’s expansive marketing, including social media and its widespread Sleep Better campaign helped sales increase in the double digits.

233

234

0

Sleep Innovations had a winner with its Rejuvenation Pillow in the spring and extended the construction (gel-infused memory foam and Luratex foam) into toppers.

61.5

57

9

New gel, cool & infused foams have led to a bump in memory foam business in the face of a soft economy, including strong e-commerce numbers. It anticipates specialty memory foams will be “game-changers” in 2012

60

60

0

The company introduced a gel memory foam line and saw some movement in the mattress category, but ended the year flat.

50

NA

NA

Comments

Wrap-Up The decorative pillow business was a cozy place to be in 2011, when shoppers largely focused their limited home décor spending dollars on the category at the expense of other home textiles segments with higher tickets. Pet beds and outdoor cushions buoyed sales for some of the major players on this list, and priceand fashion-right looks in traditional shapes kept others comfortably status quo. Only HFI took a small hit when a major retail customer opted out of two-pack pillow sets on its store shelves.

Wrap-Up Raw material costs plagued this category with both cotton and down prices at record levels. As was seen across the board in many categories, suppliers switched to synthetic and/or blended fills and shells. Emphasis on thread count largely abated.

Wrap-Up Foam continues to be among the strongest bedding categories, with increases at most of the top suppliers. Gel constructions swept the category, and manufacturers marketed toppers as a cost-effective alternative to buying a new mattress.

After opening a New York showroom in late 2010, Sinomax breaks into the top 5 on the strength of it private label business with retailers.

Source for all chart information: Home Textiles Today market research.

htt120104_024_032 28

1/16/2012 5:14:30 PM


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30

Home Textiles Today

Top 5

January 30, 2012

> hometextilestoday.com

Supplier Giants Rugs 1. Mohawk Home Sugar Valley, Ga.

2. Oriental Weavers/Sphinx Dalton, Ga.

3. Shaw Living Dalton, Ga.

4. Nourison Rug Saddle Brook, N.J.

5. Maples Rugs Scottsboro, Ala..

Wrap-Up

’11 Sales $mil

’10 Sales $mil

% Chg.

$370

$360

3%

Product innovations continue to be critical to growth in this category; the economy resulted in the company’s more focused approach to the business with an increase in affordable product offerings.

273.5

242

13

Even though raw material costs were a challenge and sparked higher retails, OW offset the damage by emphasizing its domestic production and overseas sourcing strengths.

220

220

0

Shaw maintained its numbers flat as a result of shifts in product mixes at retail coupled with an ongoing appetite among shoppers for value-priced goods.

152

148

3

The company attributes the growth to its investment in showrooms and machinery, and not to customer demand, which remained soft.

120

130

-7

Despite increased placements with new and existing retail customers, consumer demand was low in the year and resulted in sales declines.

Comments

Top of Bed* 1. Alok Industries US New York

2. Welspun USA New York

3. Divatex New York

4. Springs Global USA New York

’11 Sales $mil

’10 Sales $mil

% Chg.

$288

NA

NA

The leader in sheets began pushing harder on its fashion bedding offerings, creating brand identities tied to different design motifs.

225

NA

NA

Welspun’s sheet business grew incrementally, but it began to pull back on fashion bedding.

205

NA

NA

Divatex saw growth in all categories as the market shifted to man-made fibers and microfiber constructions in response to high-priced cotton.

174

NA

NA

Although total sales declined overall, combining Springs’ sheet and comforter business keeps the company in the running for Top 5 in this category.

NA

The company added spinning operations and began preliminary construction to double the size and capacity of the mill within the next few years. The company developed and presented first license “For Your Home with Vicki Payne.”

5. Royale Linens/Yunus New York.

165

NA

Comments

Shower Curtains 1. Maytex Mills Yonkers, N.Y.

2. Ex-Cell Home Fashions New York

3. Allure Home Fashions Boonton, N.J.

4. Saturday Knight Ltd. Cincinatti

5. Creative Bath Products Central Islip, N.Y.

’11 Sales $mil

’10 Sales $mil

% Chg.

Comments

$119

$109

9.5%

The company’s focus on innovation in designs and constructions propelled its sales upward over the year.

75

75

0

Ex-Cell maintained its sales flat for a second consecutive year, keeping major business with key retailers.

73

72

1

Business was up slightly in both the fashion and promotional categories.

36

NA

NA

New placements with major retailers paired with continued growth with its existing customers helped drive double-digit growth for the company’s total bath sales.

27

29

-7

The company faced increased competition from retailers sourcing product directly overseas; stayed focused on style and margin and boosted commodities like liners.

Consumers were strapped for cash over the year, keeping them honed in on affordable goods — including rugs. The major category players that picked up on this trend and kept their focus on it managed gains — some big like in the cases of Mohawk Home and OW/Sphinx and some more modest as Noursion. That’s not to say that Maples didn’t get the memo. The company garnered increased shelf space over the year. But even so, shoppers barely responded, causing a high single-digit sales dip. Only Shaw reported flat sales as it balanced its mix with smaller consumer appetites for rugs.

Wrap-Up It was a big year for polyester in the bedding business. As cotton prices soared, poly-dominate constructions began showing up on shelves in sheets. Bed in a bag assortments got lighter, often with all-poly comforters and poly/cotton blend sheets. Indo Count Industries, with a combined estimated of $122 million, would have charted as the 4th largest sheet supplier had the categories not been combined this year.

* Sheets, Comforter/Duvet sets, Bed in a Bag

Wrap-Up Like its sister category bath accessories, the shower curtain business was challenged as cashstrapped consumers held off on discretionary purchases in exchange for necessities. Liners met that criteria, helping along the main players. But not enough to keep Creative Bath from posting a high single-digit sales decline. ExCell maintained its status quo for another year in a row. Better off were Maytex, Allure and newcomer to the list — Saturday Knight, all of which posted gains thanks to maintained or increased placements with customers.

Source for all chart information: Home Textiles Today market research.

htt120104_024_032 30

1/16/2012 5:16:15 PM


Top 5

> hometextilestoday.com

Home Textiles Today

January 30, 2012

31

Supplier Giants Sleep Pillows

Wrap-Up

’11 Sales $mil

’10 Sales $mil

% Chg.

$204

$197

4%

A focus on sleep solutions, package messaging and marketing helped grow the business in a tough climate.

141

134

5

The company’s acquisition of United Down & Feather helped contribute to sales.

Louisville, Ky.

73

82

-11

Louisville named Rob Rudy executive vp and chief merchandising officer for its U.S. division and signed with residential furniture retail chain La-Z-Boy to their Canadian licensed partnership into the United States.

4. Downlite

38

30

27

The company’s new pillow facility opened for business in 2011 with pillow sales up for the year.

36

50

-28

A difficult year saw the layoffs of 123 workers at its Monroe, S.C. plant during the summer and the November exit of ceo Dan Hammer.

1. Hollander Home Fashions Boca Raton, Fla.

2. Pacific Coast Feather Seattle

3. Louisville Bedding

Mason, Ohio

5. Perfect Fit Industries Charlotte, N.C.

Comments

Curtains/Draperies 1. S. Lichtenberg New York

2. Ellery Homestyles New York

3. CHF Industries New York

Montreal

4. Croscill Home New York

5. Softline Home Fashions Gardena, Calif.

Wrap-Up

’11 Sales $mil

’10 Sales $mil

% Chg.

$148

159

-7%

The company lost business in some key accounts, resulting in a decrease for the year.

103

95

8

Ellery’s numbers increased as a result of continued strength in core replenishment programs across proprietary brands including Eclipse as well as private labels.

97

97

8

33

30

10

33

34

-3

20

NA

NA

4. Commonwealth Home Fashions

Usually the darling among the bedding categories, sleep pillows pulled in good numbers. As was the case across the industry, manufacturers turned to poly and other fibers to offset higher cotton costs on shells and grappled with higher prices for feathers.

Comments

The year was topsy-turvey, but in the end CHF’s window business finished up even. Sales were strong in functional products, lead by the Thermalogic and Outdoor Decor brands. Commonwealth also landed new placements in specialty and chain stores.

Function and performance fabrics and products gave customers reason to spend more in this category. The two biggest pieces of news in the category in 2011 had nothing to do with the Top 5 suppliers. In January, JCPenney — which has long claimed to own one-third of the country’s window business — announced it was severely cutting back its custom window business. In October, Top 5 towel manufacturer 1888 Mills acquired window specialist Beacon Looms as part of its expansion into a multi-category resource.

Retailer’s shift to in-house and private label brands has continued to challenge Croscill.

Softiline saw significant growth in its online business with major retailers. Commitments from top retailers as well as its expansion into Canada added to the bottom line for the decade-old company.

Source for all chart information: Home Textiles Today market research.

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1/18/2012 11:11:41 AM


32

Home Textiles Today

Top 5

January 30, 2012

> hometextilestoday.com

Supplier Giants Kitchen Textiles 1. Town and Country Living New York

2. Franco Manufacturing Metuchen, N.J.

3. The John Ritzenthaler Co. West Conshohocken, Pa.

4. 1888 Mills Griffin, Ga.

’11 Sales $mil

’10 Sales $mil

% Chg.

$73

$73

0%

73

72

1

Expansion in placements for licensed and branded offerings for both adult and juvenile styles sparked slight sales growth; value prices also helped business grow.

64

62

3.2

Ritz continued to focus on core basic programs and offering new fashion styles, spurring sales for the year..

30.5

27

13

Utility kitchen product offerings saw strength as consumers honed in on value-priced and functional goods.

7

Maintained core placements; added two fully-coordinated programs to its mix, which helped lift sales and expanded its offerings in aprons.

5. Elrene Home Fashions New York

Wrap-Up

31

29

Comments

Maintained business with existing customers; gained new placements with licensed programs; coped with volatility in raw material pricing.

Mattress Pads 1. Louisville Bedding Louisville, Ky.

Seattle

3. Hollander Home Fashions Boca Raton, Fla.

4. Perfect Fit Charlotte, N.C.

Wrap-Up

’11 Sales $mil

’10 Sales $mil

% Chg.

$68

$69

-1%

Still a leader in this category, the company got kudos for its patented Expand-A-Grip feature in a year with flat year-to-year results. At the fall market, Pacific Coast Feather significantly expanded its mattress pad line with the creation of a portfolio of new, state-of-the-art mattress pads featuring new designs, leading edge materials and proprietary, added-value features.

2. Pacific Coast Feather 42

39

8

41

41

0

30

40

-25

Consumers must have been cooking up a storm in their kitchens in 2011, from the looks of the top players’ sales increases. Only Town and Country reported flat sales. The other four majors all posted gains, ranging from 3.2% at Ritz to 13% at 1888 Mills. Utility goods at value prices stole the spotlight and resulted in healthy gains. By comparison, sister category table linens didn’t make the grade.

Comments

The most problematic of the bedding categories, with sales mostly flat to down, mattress pads suffered from the out-of-sight/ out-of-mind syndrome. Where consumers sought pillows or foam, they overlooked this category of comfort sleep. Higher cotton prices raised retails slightly, but not enough to lift overall sales.

Hollander refined its packaging and solutions messaging built around the “Live Comfortably” theme. Despite a new executive team hired in 2010, Perfect Fit was not able to battle back against retail-direct business. By late summer, many of the executives were no longer with the company.

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34

Home Textiles Today

January 30, 2012

Facts

> hometextilestoday.com

Top of Bed Shows Small Improvement BY JILL ROWEN NEW YORK — An improving eco-

nomic picture helped boost the Top of Bed category in 2010, despite serious pricing pressures on all sides. The first of HTT’s bedding reports (Utility Bedding and Sheets and Pillowcases will follow), the Top of Bed category managed a 2% increase overall. Sales were up to $2.55 billion in 2010 compared to $2.0 billion in 2009. Within the categories, comforters sets and filled bedding sets showed the smallest gain — only 1.7%. The category with the largest gain was quilts with a 2.8% increase. Current trend darlings, quilts are now top of mind for a number of suppliers, who are hoping to ignite the category further with new and updated designs. Peking Handicraft Inc. (PHI) is one of the companies leading the quilt charge. According to

Carole Antone, creative director, “We are still doing traditional quilts, but transitional looks and cottage ‘shabby chic’ styles are new ways to interpret the look of quilts. They are cleaner, brighter and up to date.” PHI is also giving its bedding extensive embellishments and embroidery details, and trying to do it while combating rising prices. A trend that may have begun as cotton prices rose; Antone noted that “there is a non-cotton trend out there.” According to Antone, “We are building on that trend with brushed poly looks with very cool finishes that look great. And, we are doing creative things with embroidery and embellishments.” “From a product perspective, we are seeing a continued growth of interest and sales in lighter weight top of bed options — particularly in the quilt and coverlet category; and you see this uptick of interest is mir-

rored in the majority of the consumer style magazines,” noted Diane Piemonte, vp, creative services, Revman. “We are showing more and more quilts and coverlets each season across several designer brands, and even adding a quilted coverlet for our own Manor Hill collection this market.” Comforter sets are also changing up the marketplace. No longer configured with double-digit pieces, newer and smaller combinations speak to a more modern sensibility among consumers. “One change that we’ve noticed is that there are fewer requests for bed skirts. A lot of our customers are in the market for more updated looks and prefer an accessory such as a decorative pillow instead,” said Angela Boswell, vp product development, Ellery Homestyles. “Accessories allow you to really push the envelope in style and design.” Boswell noted that

Top of Bed Categories Comforter sets/bedding sets

($millions)

2010

2009

CHANGE

% OF TOTAL 2010

% OF TOTAL 2009

$1,494.3

$1,470.0

1.7%

58.6%

58.8%

Comforters

$471.8

$460.0

2.6%

18.5%

18.4%

Bedspreads/coverlets

$173.4

$170.0

2.0%

6.8%

6.8%

$61.2

$60.0

2.0%

2.4%

2.4%

Quilts

$349.4

$340.0

2.8%

13.7%

13.6%

Total

$2,550.0

$2,500.0

2.0%

100.0%

100.0%

2009

CHANGE

Duvet covers

Distribution Channels Home textiles specialty chains

2010

2010

2009

$275.4

$275.0

0.1%

10.8%

11.0%

$51.0

$52.5

-2.9%

2.0%

2.1%

Department stores

$137.7

$137.5

0.1%

5.4%

5.5%

Mid-price chains

$487.1

$475.0

2.5%

19.1%

19.0%

$1,101.6

$1,075.0

2.5%

43.2%

43.0%

Off-price chains

$130.1

$125.0

4.0%

5.1%

5.0%

Variety/closeout

$96.9

$95.0

2.0%

3.8%

3.8%

$173.4

$170.0

2.0%

6.8%

6.8%

Warehouse clubs

$71.4

$70.0

2.0%

2.8%

2.8%

Other

$25.5

$25.0

2.0%

1.0%

1.0%

$2,550.0

$2,500.0

2.0%

100.0%

100.0%

Single-unit home textiles specialty stores

Discount department stores

Direct-to-consumer

Total

htt120104_034 34

the upcoming market promises very eclectic looks from Ellery that are “fresh and clean and have an optimistic outlook.” The company recently expanded its showroom just as it announced a recapitalization with Trivest Partners. The retail results for the Top of Bed category showed that single unit chains continued to decline, down 2.9% from the previous year. Off-price chains (TJ Maxx, Homegoods, etc.) showed the largest gain with a 4% increase from the previous year. The off-pricers benefitted from other retailers consolidating inventories, and from opportunistic buys as others were locked into programs with ever rising prices. The continually rising prices (due to costs related to cotton, polyester, transportation, value of the dollar and any number of other things), is a huge factor for suppliers going forward. Prices are going up and the new game in town is to accomplish this as painlessly as possible for retailers, vendors and consumers. Though de-specing has become an unpopular word, the truth is that everyone is doing their best to move forward, maintaining the quality and coming as close as they can to price preferences. “We’re really not changing too many things,” noted Scott Howard, vp, JLA Home “But we are working closely with our customers and spec changes may have to occur to hit a retail price.” JLA last month added

Woolrich to its license roster and introduced Top of Bed products and accessories under the outdoor brand name. Kevin Finlay, president, Ellison First Asia, agrees. “We’re sensitive to the key price points our customers want to reach,” he noted. According to Finlay, Ellison is still doing well with its embroidery story and its print offerings. Frank Snow, vp merchandising and operations, Royale Linens, noted that consumers are cognizant of the price increases that are imminent, but the industry is still unclear about where that new magic price point will fall. “The biggest retailers are still trying to establish what the new price points will look like,” he said. According to Snow, despecing of outer bed cloths on comforters, and modified thread counts in microfiber products and sheets are in consideration for suppliers across the Top of Bed category. For instance, “components in the luxury category were at 400 thread count, but they are now at 300.” Overall, “it’s actually a resurgence of where thread counts were years ago,” said Snow. At market, Royale Linens will be showcasing For Your Home by Vickie Payne, a better department store collection inspired by the syndicated TV show of that name. Ultimately, for the Top of Bed category, it all comes down to creativity. According to Snow, whatever the economics, “well designed products are still going to be in demand.” HTT

METHODOLOGY In determining product category sales figures, as well as determining retail sales for those categories by channel of distribution, the editors and research department of Home Textiles Today used data compiled from a variety of sources, including publicly filed financial reports, vendor sales information compiled by the editors, and information provided by retailers and home fashions suppliers. Home Textiles Today will produce a series of three reports on bedding, of which this is the first, breaking the overall bedding category into three of its component parts: Top of The Bed; Utility Bedding, Blankets and Throws; and Sheets & Pillowcases. The research was compiled by editorial contributor Jill Rowen; Dana French, director of market research; and Jennifer Marks, editor-in-chief.

1/16/2012 4:02:59 PM


Facts

> hometextilestoday.com

Home Textiles Today

January 30, 2011

35

Utility Bedding Steady; Braces for Consumer Reaction to Pricing in attempt to maintain costing without degrading the product. The key is to offer the consumer a true solution at whatever price point is on the floor,” he added. According to Altbaier, growth in its department store and catalog business remained primarily in the private label area, while brands continued to drive growth with wholesale club, box and off-price accounts. “The price increases have definitely caused us to re-examine our value proposition at each key price point,” said Scott Maddalene, senior vp, sales, Berkshire Blanket, Inc. “We always have paid a lot of attention to marketing in the form of packaging and presentation at point of sale but that effort is being intensified as we explore new price points.” According to the numbers, within the utility bedding category, pillows, blankets and throws showed small increases, while mattress pad sales continued to be fl at. At retail, the direct to consumer sector made the most strides, up 5.6% from the previous year. These results point to the growing power

BY JILL ROWEN NEW YORK — Despite the problems of rising raw material prices (and rising everything else), retail sales in the utility bedding category held steady year to year. The utility bedding category ended 2010 at $1.995 billion dollars, up .08% from $1.980 billion in 2009. Now, everyone is holding their collective breath as goods with higher retails – and in many cases, lower specs – begin to hit store shelves. For vendors, the typical business buzz words of value, performance and specs are weighing more heavily on the industry. “We are const antly challenged to design and build products with the most ‘value,’ said Chad Altbaier, vp sales and marketing, Downlite. “Although retailers have taken cost and price increases for fall 2011 and spring 2012, in many instances this is also being done in tandem with product and/or packaging changes in order to maintain costing. “Specification tweaks are conversations that we have regularly with our retail partners

Utility Bedding Distribution Channels

($millions)

2010 total retail sales: $1.99 billion up 0.8% from $1.98 billion in 2009 2010

Discount department stores $1,181.0 Home textiles specialty chains 393.0 Mid-price chains 161.6 Department stores 83.8 Direct-to-consumer 43.9 Warehouse clubs 37.9 Single-unit home textiles specialty stores 29.9 Off-price chains 21.9 Variety/closeout 23.9 Other 18.0 Total 1,995.0

2009

% CHANGE

1,170.2 388.1 164.3 85.1 41.6 37.6

0.9% 1.3% -1.7% -1.6% 5.6% 0.8%

29.7 21.8 23.8 17.8 1,980.0

0.8% 0.8% 0.8% 0.8% 0.8%

* Other includes home improvement centers, military exchanges and gift/home accent stores.

Merchandise Mix

($millions) 2010

Sleep Pillows Blankets Throws Mattress pads Total

htt120104_035 35

$740.1 496.8 393.0 365.1 $1,995.0

2009

$730.6 491.0 390.1 368.3 $1,980.0

% CHANGE

1.3% 1.2% 0.8% -0.9% 0.8%

of internet retailers as well as the trend toward choosing the online option even for the existing brick-and-mortar stores. Not surprisingly, discounters, off-prices and close-out stores marked small increases in a still difficult economy. In the pillow category particularly, the plethora of performance products bring a new level of challenge to vendors in

“The price increases have definitely caused us to reexamine our value proposition at each key price point.” —SCOTT MADDALENE, Berkshire Blanket, Inc

developing product as they work to differentiate themselves. “The performance consumer will always pay a little more to get what they need; the pricesensitive consumer may be a little more cautious,” said Steven Romero, vp, marketing, Sinomax. “We have had to look at how to re-spec product, especially in the opening price points: developing new foam with lower density, for instance, but delivering the same performance and quality.” Romero noted that Simonax has been careful in keeping increases no higher than 10% to avoid giving consumers sticker shock. Dan Schecter, vp, sales and marketing, Carpenter, noted that performance and function continue to be the cornerstone of its approach. “Our value-add business was not impacted severely, and our high-end and value-add branded Sleep Better products sold and sold well. The mid-priced product struggled. Products that do ‘things’ for people did well, i.e., IsoCool, Isotonic and Perfect Harmony,” he said. At Hudson Industries, utility bedding is therapeutically influenced, “which I am happy to report has witnessed a nice resurgence in the last year and year to date,” said Lonnie Scheps, svp. He added: “Brand-

ing, we believe, runs a distant second to performance and efficacy, and the customer is definitely voting that way.” More and more are voting that way through online choices. According to Scheps “ In our arena of therapeutics, the sector getting the most attention is, of course, the Internet as many, many consumers are researching their purchase prior to shopping at the brickand-mortar location. And if they are pleased, they may even see it and then go back to their PC to click away.” In addition, the Internet is becoming a great motivator. “Seeing other consumer comments, comparing prices, comparing shipping charges comparing products and attributes — all these advantages and total transparency make the ‘net’ nothing less than enormously influential in many buying decisions,” said Scheps. Whether in-store or online, vendors all await the reactions of consumers as they see rising retail prices. They are also working on getting their marketing message out more forcefully to capture that consumer. “I think the days of a consumer buying on impulse will be gone for a while,” noted Joe Mauer, vp sales, M & Z Marketing. According to Mauer, “pillows with a purpose” — everything from helping with sleep apnea, snoring and back pain

— is key to finding consumers in untapped markets. “Our goal is always to create value in our product, but to also speak plainly on our packaging and as graphically as possible,” noted Chris Ernst, vp, Sleep Studio. “We are really making an effort to tell consumers not only what we are doing, but also telling them clearly why it can help them.” “Consumer reaction to hikes when they see them everywhere tends to reduce their negative influence. Like gas at the pumps, we still will pay the going price, but perhaps do more comparing and sometimes maybe drive less or buy somewhat less. We are still finding the jury out on this issue,” said Scheps. “Just like you and me they are buying what they need and only when they need it. The biggest change I see is that the consumer is not augmenting their incomes with credit so a major purchase is just that, said Schecter. “Marketing is very important but more important that catchy words and colorful packaging is meeting and exceeding consumer expectation. If they buy something that disappoints it goes right back to the store,” he added. “We have to make products that do what they say they will do. If not — not only do you lose a sale but you lose a customer.” HTT

METHODOLOGY In determining product category sales figures as well as determining retail sales for those categories by channel of distribution, the editors and research department of Home Textiles Today used data compiled from a variety of sources, including publicly filed financial reports, vendor sales information compiled by the editors, and information provided by retailers and home fashions suppliers. Home Textiles Today is producing a three-part series on bedding — this report being the second — breaking the overall bedding category into three of its component parts: Top of The Bed; Utility Bedding, Blankets and Throws; and Sheets & Pillowcases. The research was compiled by: editorial contributor Jill Rowen; Dana French, director of market research; and Jennifer Marks, editor-in-chief.

1/16/2012 5:22:06 PM


36

Home Textiles Today

January 30, 2012

Facts

> hometextilestoday.com

Sheets Flat With Prices Poised for Increase BY JILL ROWEN N EW YORK — Sales for sheets and pillowcases were at $1.715 billion for 2010, down 0.6% from $1.725 billion in 2009. A combination of factors impacted results, according to suppliers. A still slow economic recovery, raw material cost and supply issues, as well as decreased inventory levels across all tiers and a still cautious consumer kept sales flat overall. And that’s just fine, according to many vendors. As most of the industry holds its breath as higher prices hit store shelves, suppliers in this category (the second in HTT’s bedding reports) are confident that increases will not be so dramatic (averaging no more than 10%) and consumers will absorb the higher pricing with not too much fuss. All have been working to develop and design (and sometimes despec) products that match consumer

in line and developing products accordingly. Inventory is smaller and color assortment is smaller, but the overall character of assortments is better.” “We have great relationships and have been able to keep our products at an affordable level for end users,” said Liz Rapelye, director, marketing and public relations, Sferra. “We are known for affordable luxury. While some of our prices have had to go up, it is not going to lessen the quality we offer at all.” “Blissliving Home has … worked relentlessly to maintain a lean supply chain and to be able to continue to offer our audience great value,” said Mareike Finck, director, marketing and public relations, Blissliving Home. “We have had to increase prices slightly on open stock sheeting and the more elevated duvets that we are introducing which have more fabric interest and design

Distribution Channels

($millions)

2010 total retail sales: $1.715 billion down 0.6% from $1.725 billion in 2009 2010

Discount department stores $893.5 Home textiles specialty chains 245.2 Mid-price chains 322.4 Department stores 37.7 Off-price chains 63.5 Variety/closeout 53.2 Other* 30.9 Direct-to-consumer 37.7 Single-unit specialty stores 15.4 Warehouse clubs 15.4 Total 1,715.0

2009

% CHANGE

$897.0 250.1 324.3 39.7 62.1 53.5 31.1 36.2 15.5 15.5 1,725.0

-0.4% -2.0% -0.6% -4.9% 2.2% -0.6% -0.6% 4.2% -0.6% -0.6% -0.6%

* Other includes interior designers, military exchanges and other channels

expectations with buyer price expectations. According to Frank Snow, vp, merchandising, sales, Yunnu s / R o y a l e L i n e n s , 2 0 1 0 showed “that prices were still a struggle and the results are the combination of low average prices for the category and weak volume.” Snow expects higher average prices to inch up results for the coming year. On the positive side, “The slow market has actually led to better business practices,” noted Bob Hamilton, marketing director, Welspun USA, who sees companies “keeping inventories

htt120104_036 36

detail. We are forecasting and making fabric purchases to stock in order to have a competitive advantage. On the manufacturing and freight front, we have seen increases and many times make adjustments to construction or materials to keep our prices similar to the past.” And the looming higher prices for sheets and pillowcases on shelves? Not to panic. “While consumers will be more prudent, in this category it will not be as big a factor as in other industries,” noted Hamilton. “The purchase pattern for sheets is about every three years

and I don’t think consumers will have a negative reaction to a set that they might have paid $49.99 and now costs $52.99.” “We have already witnessed that if the product is right and there is a preserved value, then there is little resistance,” said Finck. “With our spring/summer 2011 collection we have introduced a new white bed called Belgravia with a MSRP 49% higher than our cotton duvets. Despite the pricing difference, the Belgravia duvet set quickly became a customer favorite and is now on our best seller list. Our brand partners feel the Belgravia bed has great value since there was so much detail to the duvet. We believe that you can still build and maintain a loyal brand following if you have a quality product that is about design and the experience more so than about price. If you can top this off with great service and the branding and right marketing efforts, you are still set up for success.” With food and gas prices through the roof, most people agree that consumers will be more selective all around, but it is not a deal breaker here. According to Snow, retailers and their suppliers are now in a dance to find the right “grid.” “The major thing going on is a new alignment of thread count and quality grade and what the final product will look like for each retailer,” he said. “It’s a transitional period and everyone is finding what the proper grade of cloth and what attributes, i.e., easy care/ wrinkle free, will connect with the customer.” Not surprising, one of the first things to go in this economy is thread count. Some retailers are revisiting basic thread counts of years gone by of 180/200 threads counts, with a count of about 225 at the higher end of ‘basic.’ “If you give the consumer a good hand, colorfastness and a durable sheet, her focus will go away from thread count,” said Arun Agarwal, Alok Industries. In fact, he noted that there might be need for a ‘thread count police.’ “There is a lot of product which is not meet-

ing labeling specifications. This needs to be controlled. This can hurt the category really badly,” he said. Jeremy Wooten, coo, HomeTex, makers of DreamFit sheets, says that the company has reengineered product, incorporating microfiber offerings as well as products made with natural man-made fibers such as Tencel. “Part of what we are doing is focusing on performance fibers and looking at what value they can provide consumers,” he said. “Ultimately, they want comfort, a soft hand and a sheet that’s silky smooth. With the right fi ber and finishing, what consumers want is what they are going to get.” Wooten pointed out that manufacturing in the United States and supplementing that with overseas production gives it an advantage and the ability to quick ship product in certain cases. According to Agarwal, higher costs also require providing consumers “extra motivation to make her purchase.” Alok recently announced an internal Textile Technology Group that helps do just that by allowing the company to enhance its basic products through new technology, propriet ary finishes. At the other end of the supply chain, Lenzing, maker of Modal, Tencel and Viscose fibers, the perspective on the sheet industry is also focused on price, but in a different way. “We work very closely with our partners and make sure we have the allocation that they

need for their products. Our fiber is not traded on the open market and doesn’t fluctuate. They know what they’re going to pay. That’s a huge benefit in this economy: a stable price and the right supply,” said Nina Nadash, home textiles merchandiser, Lenzing. According to Nadash, limited capacity kept the company from taking fullest advantage of new customers that began looking at alternative fibers when cotton and polyester prices skyrocketed. Now, virtually all of Lenzing’s manufacturing plants around the world are increasing capacity for all its fibers, including building a brand new Tencel plant. “That means a true commitment to sust ainability, a belief in the fiber and a commitment by Lenzing to the home textile industry,” she said. According to HTT’s latest figures, off-pricers and directto-consumer — read internet —showed an increase for 2010 compared to a year earlier. Department stores took the biggest hit, declining 4.9% for the year. With new pricing patterns in the offing, these charts may look very different next year. And new winners are emerging. “Department stores, who everyone had started writing off, are coming back very strong. Mass merchants have all started looking very similar and differentiation can decide between who wins and who looses. Dotcoms are gaining a huge market share,” said Agarwal. Stay tuned. HTT

METHODOLOGY In determining product category sales figures, as well as determining retail sales for those categories by channel of distribution, the editors and research department of Home Textiles Today used data compiled from a variety of sources, including publicly filed financial reports, vendor sales information compiled by the editors, and information provided by retailers and home fashions suppliers. Home Textiles Today has produced a series of three reports on bedding, breaking the overall category into these component parts: Top of the Bed (February 7); Utility Bedding (May 9); and Sheets and Pillowcases. The research was compiled by editorial contributor Jill Rowen; Dana French, director of market research; and Jennifer Marks, editor-in-chief.

1/16/2012 5:23:02 PM


Facts

> hometextilestoday.com

Home Textiles Today

January 30, 2012

37

Bath Industry Dips Due to Costly Cotton towels and sheeting, “raw material cost forms more than 60% of the product cost. The impact of raw cotton and cotton yarn price has been immense.” Still, Markandy cited a silver lining to the rising cotton prices: course correction. “While the last year saw a major increase in cotton price, an upward correction was due for the last many years,” he said. “For the last many years, the price of cotton and cotton-based products had been witnessing a falling price trend while most other commodities had been experiencing an increasing price trend. The correction in cotton price was inevitable, but the extent of price increase has stunned everybody. The industry was obviously not prepared for such a sudden change.” Sugar Valley, Ga.-based Mohawk Home, for example, said its bath rug business “started out very good” in 2010 and remained so through August, said Bart Hill, general manager of bath and area rugs. Mohawk Home was “trending way ahead” over the first eight months of last year, seeing 4% to 5% sales increases. “But as cotton went up it affected the overall industry

BY CECILE B. CORRAL NEW YORK — 2010 will not easily be forgotten in the minds of bath suppliers. And 2011 is shaping up to also be just as unforgettable. Thank cotton and raw material price increases for the memories. This much-t alked about dilemma is quickly becoming a tired one, but it’s not ready to go away. Suppliers surveyed by HTT for the annual Bath Facts report largely agreed that 2010 got off to a decent start, especially compared to 2009’s onset. But by the fall, business really began to waffle in the face of higher raw material prices, offsetting the earlier gains with dwindling business. The result — a 2.7% dip in total industry sales to $3.385 billion from 2009’s $3.480 billion. The past year has been “extremely challenging for the home textile business,” noted PK Markanday, business head for the home textiles division of The Trident Group, which operates its U.S. offices in New York but is headquartered in India. He estimates that for highcotton textiles products like

Distribution Channels

($millions)

2010 total retail sales: $3.385 billion down 2.7% from 2009 2010

2009

% CHANGE

Discount department stores $1,953.1

$2,008.0

-2.7%

Home textiles specialty chains $477.3

$497.6

-4.1%

Mid-price chains

$551.8

$563.8

-2.1%

Off-price chains

$155.7

$156.6

-0.6%

Warehouse clubs

$67.7

$69.6

-2.7%

Department stores

$44.0

$45.2

-2.7%

Home improvement centers

$16.9

$17.4

-2.7%

Single-unit home specialty stores $20.3

$20.9

-2.7%

$98.2

$100.9

-2.7%

$3,385.0

$3,480.0

-2.7%

Other Total

*Other channels include direct-to-consumer and other channels such as PXs, grocery stores, and the like.

Merchandise mix

($millions) 2010

Bath towels Bath/scatter rugs

2009

% CHANGE

$1,706.0

$1,750.4

-2.5%

$853.0

$880.4

-3.1%

Shower curtains

$467.1

$480.2

-2.7%

Bath accessories

$328.3

$337.6

-2.7%

$30.5

$31.3

-2.7%

Tank sets

because the overall open-tobuy dollars became more limited,” he continued. “Plus, we saw some retail movement to offset towel [price] increases. Retailers raised in some cases bath rug ret ails where they might not have before to offset towel increases. They basically began elevating retails across the [bath] department to spread out the price increases, which are all related to cotton.” On the terry side, New Yorkbased Welspun USA had a good year, said director of towel sales Jerry McCarthy, because “what we tried to do was, because of what was going on with price of cotton, we tried to react so that the retailers could give the consumers good value.” More specifically, the company reengineered some of its towels to lighter-weight, quicker-drying constructions, he explained, “so that the consumer still felt a great hand, saw a great color, and saw great attributes while we still hit key volume price points. Just because cotton goes from $1 to $2 doesn’t mean the consumer is willing to pay twice as much for a towel or sheets or anything else. And in tough economic times they don’t have the wherewithal to spend the extra money.” Welspun USA’s highlight in 2010, and into this year, has been its highly-absorbent QuickDry towel line. “It’s been phenomenal,” McCarthy added. New York-based Loftex USA, too, experienced a good first half of 2010 for towels, “and for most retailers the good retail climate extended through the year with sales gains,” said Gretchen Dale, coo. “Behind the scenes, unknown to the retail customers, manufacturers and retailers were struggling with skyrocketing cotton increases. This cotton situation really was not reflected on the retail floor in a major way until early 2011, when retails started to climb.” Des Plaines, Ill.-based Revere Mills International Group enjoyed “a slightly better year in 2010 than 2009,” said Elaine Aschenbrand, director of marketing and product development. “We do business with so many people that I think our diversity was what helped us last year,” she explained. “We work

with all levels of retail and had programs in place across the board, and I think that is what helped us last year.” When cotton began its incline late last year, Revere really focused on the issue during talks with retail accounts during the September 2010 New York Home Fashion Market. But at the recent market in March, the company put the topic to rest “because we felt people already knew about it. Instead, we focused on our new products and that kept our meetings very upbeat. Retailers were receptive to our introductions.” Revere this year is planning for another slight increase, Aschenbrand said. “We are being very conservative. We hope in next six to nine months [price increases] will stabilize so our customers can plan better going forward.” By early fall 2010, despecing became the name of the game as the cotton pricing situation worsened and raw material costs also started going up. Keith Sorgeloos, president and ceo of Atlanta-based Home Source International, said what he has seen emerging since last summer was despecing and price increases. “The price issue really became an issue that was literally beyond our control going into the second half of 2010, so much so that there has to be some movement in despecing or price increases or both. It got to the point where suppliers could no longer deal with the escalating cotton without passing it along to retailers.” He continued: “For the most part, suppliers despeced their product, and they hung in for the first half of this year. A lot of despecing took place in the second half of 2010, and now we’ll see the effects of that in the first half of this year. Despec-

ing accommodates the price increases, but technically the customer is paying the same price for a lesser product, which in the end is essentially a cost increase.” The problem was that the formula for despecing and price increases wasn’t adding up, he said. “The maximum [suppliers] were despecing was 20% — the norm being between 15% and 30%. But with price increases at 30% to 35%, [retailers] had to finally accept price increases, and that’s what they are doing now,” Sorgeloos explained. “At the end, it’s the customer who is going to suffer,” warned Bob Weiss, president of Central Islip, N.Y.-based Creative Bath Products, a domestic manufacturer and importer of bath coordinates. “And that’s because, with all the despecing, the consumer gets an inferior product at an expensive price. It’s a shame. But there is just no other way around it.” He said Creative Bath’s towel prices, which regularly went for $7 to $8 wholesale, are now priced at $10 to $12 wholesale “for the same standard of product.” That’s not to say the company has not despeced some of these towels. “Maybe some of our new towels will feature fewer embellishments,” he said. “It’s basically quieter fashion but the same quality.” Added Joe Shafran, vp, Faze Three Ltd.: “You can’t despec product enough to make up for the price increase. You just wind up with nothing at end of the day, and the consumer will reject it.” Faze Three, which operates its U.S. offices in Columbus, Ind., is “very careful that the despecing we do still offers the consumer something worth paying for,” Shafran noted. SEE BATH PAGE 42

METHODOLOGY In determining product category sales figures, as well as determining retail sales for those categories by channel of distribution, the editors and research department of Home Textiles Today used data compiled from a variety of sources, including publicly filed financial reports, vendor sales information compiled by the editors, and information provided by retailers and home fashions suppliers. The research was compiled by Cecile B. Corral, product editor; and Dana French, director of market research.

Source: HTT Research

htt120104_037 37

1/16/2012 5:23:41 PM


38

Home Textiles Today

January 30, 2012

Facts

> hometextilestoday.com

Kitchen Textiles, Table Linens See Modest Growth in 2010 BY CECILE B. CORRAL N EW YORK — 2010 could have

been a lot worse for kitchen textiles and table linens suppliers, who enjoyed modest low singledigit gains — but gains, nonetheless — in a period when the still-sluggish economy continued act as a drag on the home textiles industry. For the year, the table linens business industry-wide was up by 0.9% to $800 million from $793 million, and kitchen textiles grew 4.6% to $620 million from $593 million. But considering the sister categories’ recession-proof resemblance to decorative pillows as affordable redecorating options for homes, kitchen textiles and table linens could have fared better than they did. Acting against them was the onset of cotton price hikes, which started a rapid incline in the second half of the year and persists today, compounded by growing costs in alternative fibers worldwide. “It is a real issue that we have to address on a daily basis — internally and with our customers,” said Michael Ciavolino, vp of sales for New York-based Windham Weavers, a division of Natco Home Products. In 2010, the company was the fifth largest table line suppliers with $17 million in category sales. “In the past, [price increases] was never a real conversation. But now it is THE conversation. So we’re exploring price increases as well as other options, like down specking and new constructions, to work with our retail customers. It is all very real. Now it is a discussion and we have to be smarter as vendors to come up with ways to work through increases.” Long Beach, Calif.-based Foreston Trends is also working closely with its retail customers, and is successfully passing along price increases, said vp of sales Dick Gould. “As you know, cotton went up 86% just in 2010, so we’ve obviously had to pass it on,” he said. “Retailers had to take their retails up, and I think they’ll face that this year more than last year.”

htt120104_038 38

Gould explained the company raised its prices because, like many others, “we didn’t have a choice. Retailers don’t want to take the increases, but we can no longer reorder goods at the same prices as before. We can’t absorb 10% increases off the bottom line. So we’ve tried not to increase our prices significantly, but it has to be workable for everybody.” Foreston Trends enjoyed improved sales in the kitchen textiles category in 2010 thanks to new business at retail with new and existing customers, including warehouse clubs, department stores, and discount chains. “Our changes came because we expanded our distribution,” Gould continued. “The reorder business was a struggle, especially in the second half of year.” And Foreston’s table linens business was “pretty flat, pretty much the same as the year we did the year before,” he added. New York-based Bardwil enjoyed growth in 2010 in its table linens business, which grew 5% to $64 million last year, making the company the country’s third largest category supplier. President of sales and marketing, Nancy Kristoff, attributed the gains to success with its three major branded programs — Lenox, Tommy Bahama and Vera. But even so, Bardwil was “definitely impacted” by the cotton crisis, she said. “We have taken numerous increases from our vendors overseas and we are relooking at our specs and constructions to help us through this period.” The longtime kitchen textiles supplier John Ritzenthaler Co. — the country’s third largest kitchen textiles company with $62 million in sales last year — finds “retailers are just as aware of what is happening, they are very knowledgeable about these cotton increases,” allowing them to more easily justify price increases. “You can’t really debate it anymore,” said Elissa Vogt, vp of sales and marketing for the West Conshohocken, Pa.-based company. “We’re not passing along

increases across the board. We are trying to be selective about where and when to pass them along. In 2011, we are still going to be watching cotton because we just haven’t seen the light at the end of the tunnel yet.” There is a silver lining to these price shifts, at all levels, for the industry, agreed Kurt Hamburger, president and managing director of New York-based Lintex Linens, and Lorraine Ragland Maberry of Trendex Home Designs in Montreal, Quebec. “I do anticipate better business this year,” Hamburger said. “A lot of retailers have exhausted their supplies, and they can’t have empty shelves, so they will have to buy new goods. There is now a need for stores to replenish, and because of this, they can no longer ignore price increases.” Added Maberry: “[2011] is going to be another challenging year, and everyone has their work cut out for them, including the retailers. We all see retailers accepting price increases. But the real question is if [retailers] see price increases as an opportunity to put something fresh out there that is new and exciting for shoppers, which is what we all need, or if they will take on price increases but just maintain the same type of product on their shelves and lessen the quality to keep the prices in same range.” Thanks largely to the continued strength of its utility products, 1888 Mills in Oakbrook, Ill. managed an 18.5% sales increase last year to $32 million in the category, positioning the company as the fourth largest supplier in the United States. But Fulton Allen, president of the company’s consumer products division, warned this year will be more challenging as the category is “very price sensitive and piece-count sensitive.” “The cotton situation will put pressure on prices and piece counts that the consumer is used to getting,” he went on. “To maintain retails, we will have to either offer fewer piece counts or lesser quality. We are working on what

Table Linens Distribution Channels

($millions)

2010 total retail sales: $800 million up 0.9% from $793 million in 2009 2010

2009

Discount department stores Home textiles specialty chains Mid-price chains Off-price chains Department stores Direct-to-consumer Single unit specialty stores Variety/closeout Warehouse clubs Other*

$288 172 173 63 30 30 14 17 7 6

$285 171 170 62 29 29 14 17 8 6

% CHANGE

0.9% 0.4% 1.4% 2.2% 0.9% 0.9% 0.9% 0.9% -9.2% 0.9%

Total

$800

$793

0.9%

* Other includes home improvement centers, military exchanges and gift/home accent stores.

Merchandise Mix Placemats Tablecloths Napkins Runners Napkin rings

($millions) 2010

2009

% CHANGE

$344 201 174 58 22

$340 200 173 58 22

1.1% 0.5% 0.9% 0.9% 0.9%

Kitchen Textiles Distribution Channels

($millions)

2010 total retail sales: $620 million up 4.6% from $593 million in 2009 2010

2009

Discount department stores Home textiles specialty chains Mid-price chains Off-price chains Variety/closeout Warehouse clubs Single unit specialty stores Department stores Direct-to-consumer Other*

$379 68 99 23 18 12 4 6 6 5

$362 66 94 22 17 12 4 6 5 5

Total

$620.0

% CHANGE

4.7% 2.7% 5.2% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6% 4.6%

593.0

4.6%

* Other includes home improvement centers, military exchanges and gift/home accent stores.

Merchandise Mix Kitchen towels Potholders/mitts Dishcloths Chair pads Aprons

($millions) 2010

2009

% CHANGE

$322 137 112 43 6

$308 130 107 42 6

4.6% 5.0% 4.6% 3.1% 4.6%

SEE KITCHEN PAGE 42

1/16/2012 5:24:30 PM


Facts

> hometextilestoday.com

January 30, 2012

Home Textiles Today

39

Rug Suppliers Struggle to Overcome a Second Year of Setbacks BY CECILE B. CORRAL N E W YO R K — Impacted by

pricing pressures, the area and accent rug industry’s distribution shifted somewhat in favor of discounters and other valueminded mass merchants in 2010. As consumers focused on lower-priced goods at affordable retail stores, unit volume remained relatively even, but total dollar volumes fell. As a result, according to research by Home Textiles Today the accent and area rug industry took a 5.3% sales hit in 2010, taking volumes down to $3.55 billion from $3.75 billion the prior year, when the industry has just suffered the much harder blow of an 18.5% sales decline. By distribution channel, discount department stores continued to lead the pack with a 35.2% share of total sales, or $1.25 billion. In a faraway second place were direct-to-consumer retailers, who took 16.8%, translating to $600 million. Mid-price chains occupied third place with an 8.4% share, or $300 million of total sales, fol-

lowed closely by home improvement chains’ 7.5% share, or $270 million. Ending the year with the smallest piece of the rug pie were department stores at $30 million, or 0.9% of total sales. “Lower price points have caused some markets to shrink dramatically. Most retailers have been focused in the area of $149 or less for a 5-by-8,” said Wade Maples, co-owner of Scottsboro, Ala.-based Maples Rugs. The company has long been among the top five category suppliers, reporting $130 million in sales for 2010. “Retail price points have come down, and that takes it to where you need to sell a lot more units to do the same in dollars that you had been doing,” he added. “And that is the big change in the market.” Maples said he considers himself “lucky” to have reported a single-digit decline — 7.1% — in sales in his area/accent rug business for 2010 from last year’s $140 million in sales. “Our business was good but not great and it was because of the decline in average price per

Area Rugs Distribution Channels

(billions)

2009 total retail sales: $3.55 billion Down 5.3% from $3.75 billion in 2009 2010

2009

% CHANGE

Discount department stores Home improvement centers Furniture stores Mid-price chains Direct-to-consumer Carpet/floorcovering stores Home textiles specialty chains Department stores Off-price chains Warehouse clubs Variety/closeout Gift/home accent stores and single-unit specialty textile stores Other

$1.25 0.27 0.16 0.30 0.60 0.18 0.19 0.03 0.13 0.11 0.13

$1.28 0.28 0.17 0.31 0.63 0.21 0.21 0.03 0.14 0.12 0.13

-2.3% -5.3% -9.4% -4.2% -5.3% -12.1% -12.0% -5.3% -2.7% -5.3% -2.6%

0.16 0.05

0.18 0.06

-13.2% -5.3%

Total

$3.55

$3.75

-5.3%

Discount department stores include Kmart, Shopko Stores, Target and Wal-Mart. Home improvement centers include Home Depot and Lowes as well as regional and local home improvement centers. Mid-price chains include JCPenney, Kohl’s, Mervyn’s, Meijer, Fred Meyer, Sears, TJMaxx/ Marshalls, Stein Mart and Ross Stores. Direct-to-consumer includes television shopping channels, Internet and catalog sales Variety/Closeout includes stores such as Dollar General, Family Dollar, Freds, Value City, Tuesday Morning and Big Lots. Other includes interior designers and military exchanges Source: Home Textiles Today market research

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unit at retail,” he explained. Also down was Sugar Valley, Ga.-based Mohawk Home. Sales for the company, which is the longtime leading area/ accent rug supplier, saw its sales decline by 5% to $360 million from $377 million last year. To blame: Pricing pressures, noted general manager Bart Hill. “We maintain shelf space and retail placement, but like everyone else, we were hurt by retail compression,” he said. “And this was against another pretty tough year [2009].” Hill said consumers shopped over the year for soft floor coverings, but traded down from better goods like wovens to cheaper price point tufted constructions, among other more affordable goods like polypropylene, that retail. “About the same amount of units was sold as last year, but we saw a 15% to 20% price erosion,” he estimated. Reflecting the year’s pricing shifts was the 5% growth in Mohawk Home’s tufted and printed rug business, Hill said. Its $49 to $99 retails “held up fine last year.” However, the company’s higher-end wovens in the $149 to $199 range “struggled,” he said. On the other end of the sales spectrum last year was the smaller and younger yet rapidly growing Surya Inc. rug company, which churned 47% increases. Seth King, vp sales and marketing, said the company’s growth stemmed mostly from its emphasis on serving furniture stores — big and small — and design firms. “We turned our focus to providing them with the right price points and styles and services on them,” he explained. But like its more large-scale competitors, Surya was forced to create “a more promotional program” that for the first time in the company’s history included $99 5-by-8 rugs, which include machine-made heat-set polypropylenes. “Our core has always been mid-tier to high-end, but this year we went more promotional.

Now our prices include $99, $129, $149, $179 and $199.” This new pricing strategy landed Surya a new set of customers, King said: lower-end furniture stores and mom-and-pop retailers. Still, the mid-tier market is Surya’s strongest sector, despite pricing shifts at retail. “The $299 to $699 price bracket is still the bulk of what we do,” he noted, “with $299 to $399 being our most popular price point range.” After overcoming two challenging years, suppliers surveyed by HTT said they were eager to quickly turn their attention to the New Year, which most are facing with some hope but much appreciation, understandably. Greenville, S.C.-based 828 International Trading Co. president, John Shepherd, cited “manufacturing costs, shipping costs, and currency exchange are [three] big areas to watch” in 2011. Raw material price hikes pose one of the biggest sources of stress, they agree, even though in the long run they could have positive effects — namely, higher retail price points. “With inflation from raw materials, we have got to get retails back up or the industry is really going to suffer,” warned Hill. “We feel with raw material prices continuing to go up, that retails have got to go up, too. And we see this across the board, not just in rugs.” Shaw Living, in Dalton, Ga., expects to “continue to see increase in units sold, but decreases in selling price as consumers continue to look for value,” said brand manager Kim Barta, as well as a “continued difficult economic climate and conservative consumer shopping.” For this reason, Shaw is forced to “continue to find new ways to create value for the consumer,” Barta said. Allen Robertson, vp of sales for Troy, N.C.-based familyrun Capel Inc., said the company is anticipating a 3% to 5% sales increase, “and we feel certain that prices will have to be increased as raw materials continue to increase in price. The

price of wool and cotton are going to be volatile for the foreseeable future. The middle class market in both China and India are growing rapidly and demanding higher quality. Our clients are looking for upgraded rugs while at the same time requesting low price high volume loss leaders. We are working to supply both needs.” On the same vein, Robertson said another “significant challenge” in 2011 will be “keeping costs in balance with demand. Hand-knotted rugs will continue to be in limited supply. The trend toward Soft Contemporary and Transitional styling should translate into higher average sales for the mid price levels.” Dallas-based Feizy Imports & Exports has managed “for some time now to keep from passing [raw material price] increases on to our clients due to our strong relationships,” said Leah Feizy, assistant to the ceo. She did not say if Feizy would continue that strategy this year. Rather, she said the housing market’s “slow recovery” recently is giving the company cause to be hopeful for “some growth within the industry. We have already seen an upswing from our year-to-date 2009 figures, and definitely expect this trend to continue across all of the home furnishings and accessories categories.” Still, she admitted the country’s economic recovery remains slow, posing a danger for many rug suppliers. “Another stall in the recovery could really be the nail in the coffin for some of the smaller home furnishing and floor covering stores that have been hanging on with all their might for some time now,” she continued. “On the other hand, all of the tougher competition has forced retailers and manufacturers alike to become more creative and inventive with their marketing techniques and product development. We’re seeing some of the most exciting new products in years and are coming up with amazing ways in which we can market them with very little investment.” SEE RUGS PAGE 42

1/16/2012 5:26:11 PM


40

Home Textiles Today

January 30, 2012

Facts

> hometextilestoday.com

Windows Peek Through; Performance Used to Push Opening Prices BY JILL ROWEN N EW YORK — Window coverings managed a slight increase for 2010, finishing at $ 2.035 billion for the year, up 1.8% from $2 billion in 2009. While other home textiles categories are feeling the pinch and suffering under the weight of exorbitant costs of raw materials, window coverings have fared slightly better. Though still dealing with the rising costs of doing business (labor, transportation) and the rise of polyester prices, the category mostly escaped the debacle that came with increased cotton prices. “Window coverings are not as dependent on cotton and more on polyester so the price increases — which did happen — were not as impactful as with bedding and towels,” said Dan Johnson, national sales manager, PDK/ Arley. Despite the increment al increase in volume for the category, the economy overall and conservative shoppers have to show improvement for suppliers to feel like they are out of the woods. One specific point suppliers agree on: the systematic decreased value on products in this category. Vendors are finding it hard to put higher priced goods into the marketplace. “The number of units sold may be up, but the amount of goods at opening price points is so large, the value is down,” noted Budd Goldman, ceo, Ellery HomeStyles. “It’s not necessarily that consumers wouldn’t opt for a higher price option, but there isn’t

enough differentiation,” noted Loren Sweet, vp, Brentwood Originals. “Why pay more when there’s a $19.95 option that has enough bells and whistles? Until retail business gets strong — not stronger, strong — that’s what you’re going to see. It’s going to require better housing stats.” Louis Hornick of Louis Hornick & Sons agreed, anticipating a long haul before the economy and housing starts recover, and partly blaming the way the category has “dumbed down and speced down products over the last 10 years.” For many, the answer is creating the differentiation for themselves in the form of performance products and value-add performance enhancers. “Simple solids aren’t enough,” said Cathy Carroll, an account executive with Regal Home Fashion. Added Goldman: “First you want your product to be decorative — I’ve always said we’re in the consumer products business — and if it can also be a value add, why not? The home furnishings industry has not been the most progressive, but at Ellery we want to stay on top of our game.” Ellery’s performance options continue to expand through its room darkening and noise reducing Eclipse and Eclipse Kids brand, as well as offering treated window coverings to neutralize odors under the Arm & Hammer banner. Also in the performance business is Glen Raven and its subsidiary Tri Vantage. “We’re keeping step with what’s happening in the marketplace and working closely with our development and mar-

keting to deliver modern and elegant offerings,” said Dan Fouratt, director, Solair Shade Solutions. The company markets Sunbrella Sheer fabrics for window coverings and Solair shades. Louis Hornick & Sons continues to expand its Firefend brand in new styles and colors. As always, the company emphasizes the ‘Made in USA” label on its brand as a particular plus in the performance category. At Commonwealth Home Fashions, its energy-saving and room darkening offerings using Thermologic technology have been strong sellers. “We’re having a great year so far,” noted Barry Goodman, vp. “The concept of energy savings is getting even more important, and we’re trying to be more creative and push the envelope in what we do.” But, he cautioned, “There is a lot of product out there with a room darkening label that isn’t; and things marked extra wide that certainly aren’t. There have to be standards, especially as the performance piece of the market grows.” On the fashion side for window coverings, grommets are still a huge trend. “Grommets are still big, maybe even over saturated,” noted Johnson of PDK Arley. “But consumers like them more than ever. They like the ease of putting them on and the ease of opening and closing them.” Johnson reports that the company is also doing a strong curtain business. “A lot of people have gotten out of the curtain business, but those still in are doing well,” he said.

Distribution Channels

($millions)

2010 total retail sales: $2.035 billion up 1.8% from $2.00 billion in 2009 2010 SALES

2009 SALES

% CHANGE

Mid-price Chains $916.8 $900.0 1.9% Discount department stores $672.2 $659.6 1.9% Home textiles specialty chains $230.0 $228.0 0.9% Direct-to-consumer $93.8 $91.0 3.1% Home improvement centers $35.4 $35.0 1.2% Single-unit specialty stores $15.3 $15.0 1.8% Department stores $15.9 $15.6 1.8% Off-price chains $20.8 $21.0 -1.2% Variety/closeout $19.7 $19.8 -0.3% Other $15.3 $15.0 1.8% Total $2,035.0 $2,000.0 1.8% *Other includes warehouse clubs and military exchanges

METHODOLOGY In determining product category sales figures as well as determining retail sales for those categories by channel of distribution, the editors and research department of Home Textiles Today used data compiled from a variety of sources, including publicly filed financial reports, vendor sales information compiled by the editors, and information provided by retailers and home fashions suppliers. The research was compiled by Dana French, director of market research.

Among retailers, figures for window coverings are in line with the rest of home textiles. Direct to consumer continues to show consumers more and more comfortable with shopping online; the direct channel showed a significant gain due to internet purchases both at web stores and through websites run by their brick-and-mortar counterparts. One segment that didn’t do as well: off-pricers. Many off-price chains took

advantage of excess inventory and found themselves in the window business. Now they must work to stay in that business. “This was a new category for many off-pricers,” noted Carroll of Regal Home. “They are now beginning to make changes, such as testing pairs instead of offering only open stock items.” Off-price chains were down 1.2% year over year while the direct to consumer channel increased by 3.1%. HTT

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42

Home Textiles Today

Janaury 30, 2012

Facts

> hometextilestoday.com

The Facts Kitchen Textiles and Table Linens KITCHEN FROM PAGE 38

the balance would be between quality of product and the number of pieces per pack.” That brings up the issue of the effects of pricing pressures on product quality. Lintex and Trendex both vowed to “not compromise our quality to try to hit a price point. We still want to pursue fashion,” Mayberry said, adding that the company will launch its largest breadth of new product introductions in the past five years come March at the New York Home Fashions Market. “We’re going to show a wide range of colors, a wide range of textures and treatments and finishes, because the time is now to get the customer something exciting,” Maberry continued. “As a consumer I see products out there that have been despecked. But I’ll pay a few extra dollars for more quality, and we need to remember there

Bath Facts BATH FROM PAGE 37

“Despecing is a tricky business when you are working with cotton that is double or triple the price it used to be. Retailers are facing the challenge of having to raise prices, but in reality it’s a challenge for everyone.” Among Faze Three’s efforts to cope with price increases

Rug Facts RUG FROM PAGE 39

Also being creative with product development and streamlining business operations to overcome raw material price hikes — now and later —

htt120104_038 42

are other consumers out there willing to do that for their textiles, as well.” Hamburger described despecing as a “danger I won’t go for.” He said many of his contemporaries in the business are “reducing product qualities to go after price. They take 25% to 30% off of the weight in order to meet retailers’ price demands — and that only diminishes the worth of the product and the business. By reducing the quality, they are compromising their brand, and that is something I will not do because we’ve worked too hard to establish a strong quality image over the years.” Still, kitchen textiles suppliers and table linens suppliers must carefully walk the pricequality tightrope to satisfy both the bottom line and their customers. Home Fashions International/Westgate in New York is actively “changing some constructions from rayon to polyester, primarily in chenille fabrics,” to help alleviate the pain. In other cases, it is passing along the costs, and other times

it admittedly absorbs the price increases, explained Rebecca Gaeta, design director for the company’s decorative pillows, pet beds and table fashions. Windham Weavers is “coming up with other fabric options to choose from,” Ciavolino said. “People are still looking for value-added product and fashion and designs that are more updated, so we’re trying to be smarter in finding ways to make or product better without exploding or increasing our prices significantly.” Vogt acknowledged that “impulse items are where you need to be in this environment. It is the novelty, the fun, the newness that is really selling, as well as the more useful utility and value-packs and aprons that the shopper is responding to.” Distribution did not tilt much in 2010 for both categories, except only to lean slightly harder on the discounters, warehouse clubs, mid-tier chains and off-pricers for the obvious reason that these venues offer shoppers the sharper price points they are seeking in this challenging economic climate. Bryan Siegel, chairman and

ceo of New York-based Elrene Home Fashions saw 2010 as a time when the table linens and kitchen textiles “fared well against other areas. While we might not have moved up by too much, we definitely did not go backwards.” He noted a “strong comeback” from specialty ret ailers, “who were finally over the hump of the Linens ’n Things closing. They were now able to slice up the remaining pie without having to fight store closing sales and closeout markdowns.” His company, which in 2010 was the second largest table linens suppliers with $82 million in sales and the fifth largest kitchen textiles supplier with $28.5 million in sales, also saw “major improvement” at the department store level. “Differentiation of product, brands and price points have finally been clearly defined by this segment and now we are seeing strong results,” Siegel added. Looking to 2011, some companies have plans to expand their product offerings to help offset potentially damaging effects of price increases for cot-

ton and raw materials. New York-based Arlee Home Fashions, which a year ago launched its tapestry table linens business, is building on the response to its hefty seasonal programs with the addition of a new stand-alone placemats and runner line spanning up to 20 new patterns, said Lance Orlick, vp. The debut is set for March during the New York Home Fashions market. “We see a void in the marketplace for decorative placemats and runners that don’t coordinate with anything,” he said. “These are just pretty designs for everyday use that we are pricing modestly.” Runners are set to retail for $12.99 to $14.99. At Foreston Trends, a new rug program is in the works for market, as well. The effort is the company’s strategy for 2011 to “try to do less cotton sales and go after the petroleum business,” Gould said. Rugs, which represents an untapped product category for the company, are poised to help Foreston increase its total sales this year. HTT

is the development of its new Easlyon fiber system, a new yarn system the company created from polyester and infused with different looks and characteristics in terms of constructions and lusters. This manmade fiber line represents a relatively new business for Faze Three, for which cotton comprises 80% of its business. “So this is a smaller piece of our business,

but we see it growing, so we created Easylon.” Scottsboro, Ala.-based M a p l e s R u g s i s s e ei n g i t s own bath rug business grow at a faster pace lately than its accent and area rug segment. As this trend continues, the company has refocused its bath rugs to entirely 100% nylon, in response to its accounts’ preference for Maples Rugs’ opening price points products in the

fiber. “Our strengths have been our opening price point, $9.99 nylon bath rugs,” said Wade Maples, co-owner of his family-run, domestic manufacturing company. He is optimistic about his business this year despite a rough start. “In the last three months, raw materials have been going up like crazy, and that cer-

t ainly has hurt us,” Maples said. “But 2011 looks like it is going to be pretty good for us. The first three months we were up double digits, and we think we will be up this year over last year by 5% to 10%.” “We have gotten some new placements, and a lot of the new placements are really doing well at retail. Plus, the economy seems to be getting stronger,” he added. HTT

is Port Washington, N.Y.-based Safavieh – a high-end designer rug house. “Raw material prices have increased in China and as a result the dollar is weakening there. We forecast that prices will continue to increase in

2011, so we are reducing costs to compensate,” said Arash Yaraghi, principal. “Safavieh is doing this by using new materials, new constructions and techniques that provide the values consumer’s want without sacrifi cing qual-

ity.” Social media will be Somerset, N.J.-based Kas Rugs’ tactic in 2011 to stir customer interest – and ultimately, sales, said key account manager of sales and marketing Wendy Reiss. “We have a new cat alog

launching now, a new Facebook page just launched with a contest for a free iPad with buyers who ‘friend’ us between now and Jan. 17, and also a new website which will be launching just prior to January market.” HTT

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