Monday, January 17, 2011
THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY
Suppliers Cautiously Optimistic for First Half of 2011 BY CECILE B. CORRAL AND JILL ROWEN N EW YORK — Home textiles suppliers are hoping not to stumble on their way in the door to 2011, and so far they’re feeling largely cautiously optimistic about their prospects for this year, especially coming off a promising fourth quarter holiday season. But “cautiously” is the operative word here, as everyone is
bracing for the continuing and steady climb of cotton and raw material prices, which affects the industry at a variety of angles, from manufacturing to product development to shipping and beyond. In their own words, here is what some suppliers had to say in response to HTT’s recent survey that asked them: What is your business outlook for the first half of 2011 — considering the impacts from rising
cotton and raw material prices, and recent reports that some retailers were delaying buying due to these cost increases?
Alpha Home Fashions Elaine Pankowicz, ceo
We are very positive about the first half of 2011, even though there are increases on raw materials, labor and finished product. We are still optimistic that the new pricing is reasonable and
| Vol. 32, No. 2 | $8.00
Heimtextil Traffic Up BY JENNIFER MARKS FRANKFURT, GERMANY — Heimtextil’s 2011 show last week turned out what appeared to be slightly better traffic than in the past two recent years. “It’s been a lot heavier in traffic,” said Lexi Schlandenhauffen, vp of marketing and design for 1888 Mills. “We’ve seen a lot of people coming through, which is a positive for us. You know at 1888 Europe 2011 we’ve expanded our booth to really attract that global customer. And we’re seeing a lot of the really important global customers.” SEE HEIMTEXTIL PAGE 23
SEE OUTLOOK PAGE 11
Vendors Position for Price Upswing Grateful for Solid Holiday, Typical Clearance Push BY JAMES J. MAMMARELLA NEW YORK — Aggressive inventory control over the past year, wariness at the coming upward price shifts, an upswing in ecommerce, and a fair amount of product and style innovation, combined to produce a satisfying holiday season and a brisk January clearance period, home textiles vendors told HTT. On the other hand, it is clear that retailers and vendors alike will be
feeling their way toward a new pricing plateau as the fourth quarter rounds to an end and cost pressures fully impact ongoing sourcing and wholesale orders. Across broad categories of products and most tiers of retail, the suppliers pointed to a level of promotional activity this month that was in line with their expectations for the postholiday season, noting that the year-ago climate — and the at-
mosphere earlier in 2010 — had been much more punishing. Now, however, even as retailers unleash clearance plans and call in markdowns in the seasonal push to clear their aisles for fresh merchandise, the stage is set for a dance of unstoppable upward price adjustments played against a backdrop of a wavering U.S. economy and uncertain consumers. “The promotional situation is about what we expected,” said Frank Snow, vp merchandising and sales, Royale Linens. “Each SEE VENDORS PAGE 10
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1/14/2011 3:09:09 PM
Home Textiles Today
Retail Briefs Target to Open 21 New Stores, Expand Fresh Food assortment
arget Corp. said that it plans to open 21 new stores in 12 states in 2011, and as part of the expansion is further integrating its fresh food assortment into the layout. The new store count includes five stores in California, a third in Hawaii, and a SuperTarget in Minnesota. Target currently operated 1,752 units in 49 states. “With the addition of an expanded fresh food assortment, our new stores will offer guests everything they need in one convenient location,” said John Griffith, evp. Target said the general merchandise stores in the mix will include an expanded fresh food assortment for added convenience and value to shoppers. These sites will measure about 135,000 square feet each and will employ 100 to 250 team members. The new 174,000-square-foot SuperTarget, opening in Woodbury, Minn., will feature a full-line and full-service supermarket, including a bakery and deli and certified organic produce and will also feature all the amenities of a general merchandise store. It is expected to employ 200 to 300 team members.
Macy’s Launches New Workshop
ooking to “nurture and grow” the next generation of minority and women-owned retail talent, Macy’s Inc. has created and is launching its new oneof-a-kind program covering the business of fashion The Workshop at Macy’s. The department store said this new Workshop is the latest evolution of Macy’s long-standing commitment to vendor diversity and to providing customers with unique goods and services that meet their lifestyle. The specially-designed business development curriculum of The Workshop targets minority- and women-owned retail businesses that are poised to succeed on a larger scale but need additional tools on business practices to move to the next level and sustain growth. The Workshop is a four-and-a-half-day intensive training course scheduled to begin May 9 at Macy’s Herald Square offices here. It will be taught by Macy’s seasoned executives and industry experts as well as key retail partners. The program will aim to invite at minimum 20 candidates to attend the course.
Home Depot Promotes Carmack to President of Canada division
he Home Depot has promoted Aaron Carmack to president of its Home Depot Canada business, effective January 31. Carmack is currently regional vice president of the Pacific North region in the U.S. In his new post, he is replacing Annette Verschuren, who has held the post since March 1996 but is leaving the company after nearly 15 years. To assist with Carmack’s transition, Verschuren will remain with the company until Jan.30, which marks the close of the company’s 2010 fiscal year.
January 17, 2011
Target Enters Canada via Acquisition of Zellers’ Units MINNEAPOLIS — Target Corporation is for the first time expanding beyond U.S. borders with its purchase of the leasehold interests in up to 220 sites From Zellers Inc. This transaction — which calls for Target to pay $1.825 billion — will allow the discount retailer to open its first Target stores in Canada beginning in 2013. Zeller’s is a subsidiary of the Hudson’s Bay Company (HBC). Gregg Steinhafel, chairman, president and ceo, described the acquisition as “an outstanding opportunity for us to extend our Target brand, Target stores and superior shopping experience beyond the United States for the first time in our company’s his-
tory. We believe our investment in these leases will strengthen the surrounding communities as well as create strategic and financial value for Target stakeholders.” Target will make two equal payments of C$912.5 million, first in May and then in September 2011. Zellers Inc. will sublease these sites from Target and continue to operate them under the Zellers banner for a period of time. Further enhancing its Canadian presence, Target expects to open 100 to 150 Target stores throughout the North American country in 2013 and 2014. The retailer noted the financial returns on these stores are expected to be in line with
returns on new Target stores in the United States, resulting in dilution to earnings prior to store openings followed by accretion to earnings in the first full year of store operations. “These stores will provide a strong, initial foundation for a more robust Target presence in Canada over time,” Target said. Target expects that renovation of leased sites will result in an aggregate investment of more than C$1 billion. Target also announced today that it intends to actively pursue the sale of its credit card receivables portfolio, which totaled US$6.7 billion as of Oct. 30, 2010. First Annapolis has been engaged to advise Target in this process. HTT
Williams-Sonoma Gets Holiday Revenue Boost, Ups Guidance SAN F RANCISCO — Five-nameplate high-end specialty retailer Williams-Sonoma had a jolly holiday, with a 10.5% jump in net revenues and a 5.0% increase in comparable store sales over the eight-week holiday period ended Dec. 26. Net revenues rose to $865 million versus the year-ago’s $783 million. As a result, the company is increasing its fourth quarter revenue guidance to a range of $1.170 billion to $1.190 billion and fourth quarter GAAP diluted earnings per share (EPS) guidance to a range of $0.92 to $0.94. Excluding an estimated $0.04 EPS impact of unusual business events relating to asset impairment and early lease termination charges for underperforming retail stores, fourth quarter non-GAAP diluted EPS is expected to be in the range of $0.96 to $0.98. “We are extremely pleased with our holiday sales performance. A positive consumer response to our key merchandising and marketing strategies, combined with strong operational execution, drove a 10.5% improvement in year-over-year sales, higher gross margins, and better than expected lever-
age of controllable expenses,” said Laura Alber, president and ceo. Also strong for WilliamsSonoma in the period was its e-commerce business, which Alber noted, “as expected… continued to grow as a percentage of total net revenues,” reaching 32% in 2010 versus 27% in 2009. Year-over-year revenues in e-commerce increased 30% in the holiday period. “Based on these results, and the trends we are seeing in the month of January,” she added, the company is increasing its fourth quarter and fiscal year 2010 diluted EPS guidance. Revenue in the fourth quarter is now expected to increase in the range of 7% to 9% and diluted EPS is expected to be in the range of $0.96 to 98 cents versus 86 cents last year on a non-GAAP basis. For fiscal 2010, revenue is now projected to increase in the range of 12% to 13% and diluted EPS on a non-GAAP basis to be in the range of $1.83 to $1.85 versus 95 cents last year. Looking ahead to fiscal 2011 and beyond, the company will remain focused “on the fundamental strategies that have driven our success over the
past two years and have allowed us to gain market share and improve profitability,” Alber went on. “To continue to gain market share, we will attract new customers to our brands through relevant product offerings and highly targeted marketing, grow our merchandise categories where we see ‘white space’ in the market place, and expand the reach of our brands into new markets – both domestically and internationally.” A d di t i o n a l l y, W i l l i a m s Sonoma this year said it will further drive efficiencies in its worldwide supply chain, reinvent the customer experience in our ret ail stores to drive increased traffic and higher sales per square foot, and further expand our initiatives in ecommerce, which operates at a significantly higher operating margin than our other sales channels. The company also expects its e-commerce segment to continue to increase as a percentage of total company revenues. Collectively, the company said it expects these initiatives to drive top-line revenue growth in the mid-single digits and nonGAAP diluted EPS growth in the low double digits. HTT
1/14/2011 2:41:49 PM
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Home Textiles Today
January 17, 2011
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 375 South End Avenue #32U New York, N.Y. 10280 (212) 945-9151 | email@example.com FOUNDING EDITOR-IN-CHIEF Carole Sloan 16 E. 96th St., New York, NY 10128 Tel: (212) 831-8266 | Fax: (212) 831-0814 PRODUCT EDITOR Cecile B. Corral 428 Bianca Ave. Coral Gables, FL 33146 (305) 661-7493 | firstname.lastname@example.org COPY EDITOR Julie Murphy (646) 805-0224 | email@example.com
Desperately Seeking Stability “The consumer is already getting less for the prevailing price point, and the canny ones have surely noticed already.”
T WA S COT TON for breakfast, lunch and dinner es of brew. last week at Heimtextil — smothered in a zesty sauce Several manufacturers cop to considering inflation a of price increases. good thing. And after so many years of price deflation, who What’s that crunching sound? De-specing. could blame them? All as anticipated, of course. But there was palpable reMaybe they’re not alone. TJX president and ceo Carol lief as the week progressed. Things are moving forward de- Myerwitz told analysts during the company’s third-quarter spite the turmoil. conference call a couple of months ago that inflation is “a Equally anticipated: a settling down of cotton prices. positive move for our business.” Nobody I spoke with expects that to happen beBut maybe that’s a bit of gloss. fore the third quarter — regardless of whethAt turning points in the industry, there is aler they lay the blame for volatility at the feet ways one retailer held up as emblematic of of hedge funds and speculators (as some do) or What’s Wrong Here. consider this a perfect storm of supply/demand/ EDITOR-IN-CHIEF At one point it was May Company and weather events or (in many cases) both. charge-backs. Then it was Bed Bath & Beyond As for poly and other alternative fiber price and charge-backs. Then it was Target and reverse increases, consensus holds they lock when cotauctions. Then it was Target and in-house prodton does. uct development. Then it was JCPenney and inOnce cotton prices settle, most believe they house development. will do so on the high side, relatively speaking. Now it is TJX and … well, there’s no easy The consumer is already getting less for the word for it. Let’s just say somebody’s piling up prevailing price point, and the canny ones have shoes and belts and such where hometex invensurely noticed already. tory isn’t. TJX was truly the singular retailer talked about One U.S. sales rep said his 100-sheet roll of paper tow- at the show. els now comes at the same price but offers only 82 sheets. The big question mark: Pulling the trigger for back-toAnother recently looked at the fine print on his favorite 12- college dorm stuff or no? Time is growing short. oz. beer and discovered the bottle contained 11.5 ouncAh, sweet mystery of life. HTT
DIRECTOR OF MARKET RESEARCH Dana French (336) 605-1091 | firstname.lastname@example.org PUBLISHER/EDITORIAL DIRECTOR Warren Shoulberg (646) 805-0226 | email@example.com ASSOCIATE PUBLISHER Jeff Reeves (336) 605-1009 | firstname.lastname@example.org ACCOUNT MANAGER NORTHEAST/MIDWEST/CANADA Mary McLoughlin (646) 805-0227 | email@example.com CLASSIFIED AD SALES Spencer Whittle (336) 605-1027 firstname.lastname@example.org Karen Hancock (336) 605-1047 email@example.com MANAGER, CHINA Nancy Yu Tel: 86 (0) 21 5126 0111; Fax: 86 (0) 21 6539 0321 firstname.lastname@example.org MANAGER, EUROPE Mirek Kraczkowski Tel: 48 22 401 70 01; Fax: 48 22 401 70 16 | email@example.com MANAGER, INDIA Kaushal Shah Cell: 91-9821715431; Tel: 91-22-6663 4597 / 24988658 Fax: 91-22-66634596 | firstname.lastname@example.org ONLINE SALES MANAGER Penny Schneck (336) 605-1084 | email@example.com PRODUCTION MANAGER Rich Lamb Tel: (336) 605-1074; Fax: (336) 605-1143 | rlamb@ sandowmedia.com MANAGER, CLIENT SERVICES, WEB ADVERTISING Dan Sage | (336) 605-1080 | firstname.lastname@example.org E-MEDIA PROJECT MANAGER Missy Axe | (336) 605-1005 | email@example.com DIRECTOR OF AUDIENCE MARKETING Allison Ternes (704) 573-9007 | firstname.lastname@example.org VP, PUBLISHING DIRECTOR Kevin Castellani (336) 605-1034 | email@example.com
SANDOW MEDIA PRESIDENT AND CEO Adam I. Sandow VP CREATIVE AND EDITORIAL Yolanda E. Yoh
Growing Direct to Consumer “The number of companies in home textiles that have embraced this concept is growing by leaps and bounds.
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
OR SOME Y E A RS NOW, we have been discuss- promotional (aka - lower than low price point) message ing the growth of direct-to-consumer businesses, to customers as well as drop ship capabilities from supplier to Then there is the issue of retailers not ordering until retailer’s customer. the 11th hour because of ever-changing price quotes. ReThe number of companies in home textiles that have tailers can fill the home textiles space for back-to-school embraced this concept is growing by leaps and with more shoes and backpacks to cover the inbounds — though not under a name that would ventory scarcity. But how many more pairs of be known by the accounts who place orders — shoes is Johnny or his mother going to buy? or even the consumers, who don’t care anyway. Inventory cannot be filled up with “stuff.” FOUNDING There seems to be a further challenge in this The key is not so much “something different” home textiles world in these days of higher and EDITOR-IN-CHIEF without validity, but more significantly, the need higher raw material prices versus retailers thinkto offer fresh, clean and lighter looks that will ating the consumer won’t spend on good products. tract customers with newness but not radical change Today, it’s virtually impossible to segregate the bottom Hopefully, last week at Heimtextil the members of the feeders from what had been viewed in the marketplace home textiles world shopping the show recognized the draas retailers hoping to project a new product image, per- matic change in the world and the need to respond to it. haps a fashion-forward image as well as a highly focused HTT
THE WEEKLY 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 HOME TEXTILES TODAY (USPS 497-490) (ISSN 0195-3184) is published 29 times a year except for the weeks of 1/3, 2/14, 2/28, 3/20, 4/11, 4/25, 5/2, 5/16/,5/30, 6/13, 6/27, 7/4, 8/1, 8/15, 8/29, 9/5, 9/26, 10/17, 10/31, 11/14, 11/28, 12/12, 12/26 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 ©2011 by Sandow Media LLC. Annual subscription rates: U.S. and Canada $169.97; 1 year, other countries $325.99 for surface mail and $525.00 for airmail. 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
1/14/2011 2:43:09 PM
Why You Go to Frankfurt
O, HER E’S THE THING about Heimtextil. It’s not your father’s Heimtex, but it remains the single most important event on the home PUBLISHER/ textiles industry calendar. And if you miss it, EDITORIAL DIRECTOR you are not doing your job right and your company will not be as good as it can be. The reason why you go to Heimtex has changed, but the reason for going has not. Heimtex, back in the good old days, used to be the place where you shopped fashion and saw the best the home fashions world had to offer when it came to design and trends. And there is still plenty of that to be found. But let’s face it: There are fewer European fashion leaders exhibiting in Frankfurt as Maison Objet has gained in importance. And while the American presence at the fair was never at the scale of what you could find at the New York show, the big mills of yore did make a play here for a number of years and — say what you want about the demise of the American manufacturing base — we do create beautiful sheets and towels. But even back then you didn’t just go to Heimtex to see fashion. You went to see people. To see your counterparts from around the world who did what you did, but did it someplace else and — surprise, surprise — experienced many of the same business dynamics as you did. Because even if the definition of beautiful sheets and towels is very different in different places, the business of sheets and towels is not. Cotton is cotton, looms are looms and the twain meets all over the world. You just don’t know what a conversation with your counterparts from around the world will yield until you have it and the best place to have the conversation is at Heimtextil. But now the fair is of course much more. When American companies stopped being manufacturers and became essentially importers, the need for those importers to meet with their suppliers became the single most important reason for Heimtextil, at least to Americans. And that’s why you can’t miss it. How can you not jump at the chance to see your business associates face to face, the chance to search out new suppliers, find resources you might not have known about and see who else is working with who else. So, what did all of the meetings, conversations and get-togethers yield? First and foremost, there is the issue of raw material prices. From all appearances, we’re not likely to see much relief in the costs of things like cotton, polyester and down and feather. Nor does it seem that the sudden spikes in prices and the wild swings in those prices is going to abate. The old triggers that used to moderate prices — the new crop coming in, the fall slaughter of geese — don’t seem to be impacting prices the way they used to. There is a new state of business and it does not seem to be going back to the way it was. If you came to Heimtex, you understood that better. And you also got a pretty good read on business conditions overall. The fact that the American economy is coming back very slowly, but it is coming back. The fact that there are fewer factories in China making home textiles. The fact that India and Pakistan are likely to gain market share in the home textiles world. And the fact that sources in countries like Portugal and Turkey and Bangladesh have valuable contributions to make to the business if used correctly. It wasn’t easy to get to Heimtextil for some people in the United States this year with all the rotten weather on the East Coast last week. But it was worth the effort. HTT
Home Textiles Today
January 17, 2011
Target Adds to Executive Committee MINNEAPOLIS — Target Corporation has promoted two of its top executives to the company’s executive committee. Tina Schiel, formerly svp of enterprise strategy and new business development, has been elevated to evp of stores and will join Target’s executive committee. And Laysha Ward has also been promoted to the executive committee and will continue in her current role as president of Target’s community relations and Target Foundation. “Tina and Laysha are proven leaders who have played a significant role in Target’s success over the years,” said Gregg Steinhafel, chairman, president and ceo. “Both women have a keen understanding of Target’s business and will bring valuable experience and unique insight
to their new positions.” Schiel has been with Target for more than 23 years, joining the organization as a stores team member in 1987. She has held a variety of leadership posts across the company and most recently managed the corporation’s new business development and strategy efforts, which included Target’s recent announcement of its urban growth strategy and longterm plans for international expansion. In her new role, Schiel will manage the operations of Target’s stores across the United States. Ward, a 19-year veteran of Target, has held a number of leadership positions across Target’s community relations organization and was named president of community relations and Target’s Founda-
tion in 2008. In this position, Ward oversees Target’s ongoing commitment to give 5% of its income to the communities where Target guests live and work. In addition to managing the company’s domestic and international grant making, Ward also coordinates the company’s civic activities, including the creation of volunteer opportunities for Target’s more than 350,000 team members. Ward serves on the board of Denny’s Corporation and the Corporation for National and Community Service. Additionally, she serves on the board of the Executive Leadership Council, a national organization focused on building an inclusive business leadership pipeline and developing African-American corporate leaders. HTT
Texworld USA Partners With Stylesight N EW YORK — Texworld USA has partnered with trend content global provider Stylesight, and together they will debut their alliance at the January 2011 Texworld USA Trade Fair here. The goal for the partnership is to create a new platform for exhibitors and attendees that will address the needs of the marketplace year-round. Utilizing the physical tradeshow and the digital world of Stylesight in tandem, the partners said they aim to define the importance of speed to market and consistent communication between buyers and sellers. “Ultimately, Texworld USA exhibitors will have the ability to fully access Stylesight’s library of more than six million inspired images of global
runway collections, street and events, worldwide trend content and industry analysis, and stateof-the-art design tools,” the entities said. “Furthermore, a marketplace in the form of online showrooms will also be created by the partnership.” At the event, scheduled for Jan. 18 to 20, there will be “an expertly curated” trend display and series of industry seminars for show attendees, combined with a future rollout of innovative digital services for Texworld USA exhibitors. “This partnership is cuttingedge for the tradeshow world, and only the beginning of the innovative approaches that we intend to introduce by combining the physical world of tradeshows and the digital world of Stylesight,” said Frank Bober,
founder and ceo of Stylesight. “I’m thrilled that Texworld USA has the courage and foresight to embark on this exciting journey.” Added David Audrain, president and ceo of Messe Frankfurt North America: “The key to successful tradeshow participation is targeted preparation, pre-show promotions, then follow up. Stylesight’s innovative trend content, tools and technology will enable Texworld USA exhibitors to prepare relevant collections targeted for our market and also provide direction and focus on-site at the show. We look forward to facilitating year-round contact between our exhibitors and attendees by means of a creative platform in partnership with Stylesight.” HTT
Ginsey Home Solutions, Rubbermaid Extend Partnership to Bath Organization B E L L M AW R , N. J. — Ginsey Home Solutions has extended its licensing partnership with Rubbermaid for a new program of branded bath organization products. Ginsey, a longtime supplier of bath-related products, said the addition of bathroom organization is “a natural expansion”
to the company’s current line of Rubbermaid bath mat and accessory items. “Our vision for the line was to soften the often cold appearance of standard bath organization. Pieces will blend while simultaneously offering a sense of style and texture to a frequently utilized environment,” said
Mary Fullam, svp of marketing and brand management. The Rubbermaid bath organization line is expected to reach retail shelves by spring of 2011. Ginsey Home Solutions will be premiering the line during the March 2011 International Housewares Show in Chicago. HTT
1/13/2011 12:28:21 PM
Home Textiles Today
January 17, 2011
John Portman: The Chairman ATLANTA — Of all the first-generation legends that built the trade show and market center infrastructure that has served the home furnishings industry over the past half century, only one remains. Trammel Crow, George Little, Joseph P. Kennedy, the families that built the High Point market: They are all gone. But John Portman, who created the Atlanta Market Center – indeed, arguably he created modern-day Atlanta too – is alive and well and comes to work most days at his glassed-in office atop what is now called AmericasMart. “I love it. This is where it all
happens.” Portman, still chairman and ceo of the market center that is celebrating its 50th anniversary in 2011, was reflecting on that half-century and what it took to make AmericasMart the powerhouse it is today. His office is a reflection of the man himself: the artwork he created in a building he designed in a market center he invented in a city he helped to make one of the most important urban centers in the country. That original creation grew out of a long-since demolished downtown Atlanta parking garage that Portman leased and set up as an exhibition space for whole-
sale trade shows. When he went to a get a construction loan to build what would become the Merchandise Mart, he said the banker told him, “If you can lease this amount of space in a garage, you’ve really got something.” Portman got the loan, but he already had something no
NYIGF’s Newest Division Welcomes 200 New Global Exhibitors W HITE P LAINS , N.Y. — About
200 new companies from 17 countries will be among the exhibitors debuting new gift, home and lifestyle products in the “Newest” division of the winter 2011 New York International Gift Fair (NYIGF). The newcomers to the “Newest” division represent businesses of all sizes, NYIGF noted, including individual designers, importers, and major manufacturers. New York’s Newest runs Jan. 29 through Feb. 2. A full list of the exhibitors is available online at http://search.nyigf.com. “New York’s ‘Newest’ is a discovery zone where buyers can
source cross-category, highquality resources new to the New York market,” said Dorothy Belshaw, NYIGF director and GLM senior vice president. P r e s e n t e d a t N e w Yo r k City’s Passenger Ship Terminal Pier 92, New York’s Newest will feature a concentration of 200 exhibitors new to NYIGF. Within the division’s full range of product categories, jewelry and personal accessories will be especially well-represented this winter. Innovative personal accessories will be showcased by many companies, NYIGF said. Some highlights include Mad Bay Designs’s nautical collection of
bags and pillows, Angelrox’s ecofriendly contemporary women’s apparel and wraps including maternity; Native Union’s mobile phone accessories, and Blunt USA’s umbrellas. Among the products offered by international exhibitors are: handmade Peruvian home textiles from Inversiones Textiles; fair trade products from Uganda from Jinja Fair Trade; and fair trade gifts from around the world featuring the Kisii Stone from Venture Imports. Ret ailers are invited to attend the New York’s Newest welcome reception on Pier 92 from 8:30 to 10 a.m. opening day. HTT
Kay Dee Designs Turns 60 H OPE VALLEY, R.I. — Kitchen
textiles house Kay Dee Designs is celebrating its 60th anniversary this year. The company first opened its doors in 1951 as a hand-printer of linen towels and calendar towels. Six decades later, Kay Dee Designs still operates here in a rural area of Hope Valley but has in recent years partnered with major factories worldwide
“to provide customers with every want imaginable in aprons and kitchen textiles,” the company said. Its product lines span “trendy to traditional” looks, from solid color programs to “flirty aprons,” a bevy of licensed artists’ print designs, and more recently silicone embellishments. New and related product categories joining the roster include a program of melamine
trays and cork-backed placemats that coordinate with textile print designs. These new items and others are featured in Kay Dee Designs recently released 2011 Catalog and will be officially launched to retailers this month during the Atlanta International Gift & Home Furnishings Market at the AmericasMart in suite 1801 (with the Ivystone Group) in Building 2. HTT
other developer had: He was an architect by training and he knew how to design a building the trade needed. More importantly, he knew building a mart was not an isolated event. “We took a holistic approach,” he recalled, one that led him to build hotels to serve marketgoers. The first was of course the Hyatt Regency, which was the first major new hotel to use an open-atrium design, setting the template for a generation of hotels around the world. Portman said he also knew he had to get people to his mart and hotels and the answer was an airport. Not just any airport, but one that has grown into the major transportation hub for the southern half of the country. With all the pieces in place, the Atlant a Market Center became a key destination for the home furnishings industry and
15 years ago, it was rebranded AmericasMart to better reflect the fact that it was no longer just a regional center. Portman – everyone in the organization calls him The Chairman – has turned over day-to-day management of the mart business to his son Jeff, but if his days are a little less busy than they used to be, his mind is no less sharp. He can recall conversations from a half-century ago and then quote the Federal Reserve chairman’s latest statement on economic conditions. And those economic conditions, by the way, don’t faze him all that much. “This is the worst home furnishings market I can remember. But it’s like when you’re stuck in traffic and wondering if you’ll ever get out of it. “We will get out of it.” HTT
Hundreds of Exhibitors Slated for January Home Textiles Event W HITE P L AINS , N.Y. — Orga-
nizers of Home Textiles Market Week in New York are expecting nearly 500 suppliers of midrange to high-end home textiles to participate in the event, which runs concurrently with the New York International Gift Fair. Exhibitors will show in four locations in Manhattan: at the Jacob Javits Center and nearby Ship Terminal Piers 92 and 94, 230 5th Avenue and 7W New York at 7 West 34th St. The “At Home featuring Home Textiles” segment of the gift fair at the Javits will present roughly 200 exhibitors, including the debut by Sferra of highend Ralph Lauren bedding and bath. Suppliers returning to At Home after an absence or that are relocating from other sectors of the NYIGF include: Aalamwaar Textiles (pillows, accessories); DownRight (down products); Enovy (silk pillows, shawls); Lavender Blue (bed linens); Marcel Miller (luxury linens); Madeira Embroideries Institute (Portuguese linens); and Peacock Alley (bedding). At 7 W New York, 10 home textiles suppliers have opened
suites for the 2011 market: Blonder Home (Suite 635); Bellino Fine Linens (922); Synergy Global Home/Shri Lakshmi Cotsyn Limited (Suite 627); Kaleen Rugs (Suite 820); Liberty Fashion Textiles (Suite 521); Loretta Lee Limited (Suite 718); Levtex LLC (Suite 613); Milagros Imports (Suite 920); Pacific Coast Home (Suite 539); and Rizzy Home (Suite 733). 7 W tenants expanding their space include: Devgiri Exports / ABC Industries (Suite 817); Harman (Suite 711); InterDesign (Suite 504); Phoenix Home Fashions (Suite 500); Peking Handicraft (Suite 912); Robely (Suite 423); and SARO (Suite 900). 230 Fifth Avenue’s newcomers are Signoria Di Firenze (Suite 1903) and Trendex (Suite 1002). Tenants expanding their showroom space are C.C. Premiums (Suite 1315) and Softline (Suite 1209). Produced cooperatively by GLM, 230 Fifth Avenue, and 7 W New York, Home Textiles Market Week runs Jan. 28, through Feb. 3. For more information, visit www.nyhometextilesmarketweek.com. HTT
1/13/2011 12:25:29 PM
In every industry there is one resource that stands out from the rest. In the home fashions industry, that resource is Home Textiles Today.
866-456-0405 Outside the USA please call 515-247-2984 Please reference key code: I03HTHSAD
3/24/2010 2:24:04 PM
A D V E R T I S E M E N T
January 29 – February 3 Javits Center | Piers 92 & 94 1-800-272-SHOW (7469) www.nyigf.com
EXHIBITORS FORUM Mei Xu
Creator & CEO, Blissliving Home Jacob Javits Center At Home Section Booth #7823
From fashion to food, New York is one of the best places to find the latest and greatest trends. So, as a design-driven company, we think of our participation in the NYIGF as a test. When our collection can debut and succeed against some of the fiercest competition in the world, we know we’ve done our job. See for yourself at booth #7823.”
Paul J. Hooker
President, SFERRA Jacob Javits Center, At Home Section Booth #7904-8003
We are extremely excited about this show, perhaps more so than any show before, as we have two major brand introductions. The Ralph Lauren Home introduction will feature 3+ beds and accessories in the classic Ralph Lauren manner. Fashion runway designer Peter Som is introducing his first foray into Home with us, featuring 3 brilliantly colored bedding prints made in Italy, in the manner that only Peter could. They were all inspired by his infamous runway fashion hits, and Peter will be at our booth on Sunday afternoon to meet potential customers. As well as our new Italian Jacquard bed ensembles, we are featuring a new towel program in a 24 color range, with bath rugs to match, in both a dobby and a no-dobby option. The program is from Belgium, from one of the most famous towel mills in the world, who to date, has never imported his quality of towels into the American market. Needless to say, we can’t wait to get 2011 off to a great start.”
A D V E R T I S E M E N T
PRODUCT SHOWCASE January 29 – February 3 Javits Center | Piers 92 & 94 1-800-272-SHOW (7469) www.nyigf.com
NYIGF ® : One Stop Shopping for Home Textiles By Traci L. Suppa Simplify your sourcing with a visit to the New York International Gift Fair® (NYIGF®) during Home Textiles Market Week® in New York this winter. Find home textiles and related products in At Home featuring Home Textiles, a consolidation of some 200 high-end home textiles resources including bed and bath fashions, table linens, kitchen textiles, towels, decorative accessories, area rugs, window treatments and decorative fabrics. Other divisions offering home textiles include Accent on Design®, Handmade Designer Maker®, Handmade Global Design®, and Tabletop & Housewares. NYIGF is the nation’s premier gift, home and lifestyle marketplace, with 2,800 exhibiting companies featuring an extraordinary breadth and depth of design-driven home fashion products and complementary giftware. Some 35,000 attendees from all 50 states and more than 85 countries worldwide are expected. The nation’s largest collection of mid- to high-end home textiles, Home Textiles Market Week showcases more than 600 home fashion suppliers located at the Javits Center, Piers 92 and 94, 230 Fifth Avenue and 7 W New York™.
Market Week participants will bring hundreds of new and inspired resources to NYIGF. Here’s a preview:
Oxford Collection by Peacock Alley A timeless diamond pattern is updated for spring 2011. The coverlet is available in either classic scalloped or modern tailored, queen and king. The collection, which also includes standard, king and European shams, comes in soft ivory and crisp white. Imported from Portugal, this machine-washable set is 100% cotton with polyester fill. www.peacockalley.com At Home featuring Home Textiles, Javits
Topper Rug by Michaelian Home A vibrant and bright zig zag pattern illuminates this hand-tufted wool rug in an earthy color palette. Standard sizes for this style are 3’round and 5’round, while custom sizes are also available. www.michaelianhome.com At Home featuring Home Textiles, Javits
Spring 2011 Collection by Kim Seybert These designer lifestyle accessories mix rich colors and textures with ultra-refined embellishments. The collection includes the Gold/Silver Moroccan Linen Runner and Brown/Gold Wood Cuff Napkin Ring (both handmade in India); Natural and Sienna Zigzag Placemats; and White/Brown/ Gold Herringbone Napkin in 100% Linen. www.kimseybert.com Tabletop & Housewares, Javits
Tea Towels by Studiopatro The simple kitchen towel, a hardworking and essential kitchen tool, can still be special. Whimsical patterns and designs from nature and architecture are handprinted sustainably on these, using water-based inks on an absorbent linen/ cotton blend. The line includes over 20 towel styles, aprons, market bags, beach towels and totes, cushions and pillows. www.studiopatro.com New York’s Newest, Pier 92
“Kai” Throw by Sefte Luxuriously soft, this throw is created from baby alpaca yarn, among the rarest and finest fibers in the world. Each is unique; hand-woven on a traditional wooden loom by native Andean women. The three colorways--cream, silver, and celadon—are created using Oeko-Tex Standard 100 dyes. Available in: 50”x70” and 60”x90”. www.sefteliving.com At Home featuring Home Textiles, Javits
Sea Foam Bed Linens by Belle Epoque/ CGG Home Fashions The superior Belle Epoque™ line of linens includes classic, traditional styles as well as clean, crisp contemporary designs like the Sea Foam collection in a natural color palette. Belle Epoque’s processing formula, combined with the highest quality, combed supima cotton yarns, results in a soft hand. www.cgghomefashions.com At Home featuring Home Textiles, Javits
Taos Ikat Bedding Collection from Pendleton Woolen Mills Inspired by an Ikat weaving in a museum, this collection includes a standard sham, queen and king bedding, and coordinating robe. The Ikat technique originated in Indonesia. This jacquard loom interpretation captures the same depth of color and subtlety. Unnapped, whipstitched. 82% wool/18% cotton. www.pendleton-usa.com At Home featuring Home Textiles, Javits
Roberta Roller Rabbit by Roberta Freymann These accent pillows add a splash of color to any room, and are available in a multitude of bright patterns. Each hand block-printed cotton canvas pillow is finished with piping in a complementary solid color with zip closure. Produced in India by skilled artisans, no two are identical. Available in sizes 18”x18”, 22”x22”, and 26”x26”. www.robertarollerrabbit.com At Home featuring Home Textiles, Javits
Luxurious Bathrobe by Alicia Adams Alpaca A rare species, Suri alpacas produce wool naturally in 24 colors; this luxurious robe is available in two of them. The unisex style is knit in an elegant herringbone pattern from 100% lightweight baby alpaca; a shiny, silky, hypoallergenic textile. www.aliciaadamsalpaca.com At Home featuring Home Textiles, Javits
S AVE T HE DAT E: Ma rk et Week Highlights Saturday, January 29 – Ice dancing performance by former Olympian and home products retailer Ryan O’Meara Sunday, January 30 – Seminar: Home Trends 2011-2012, presented by WGSN-HomeBuildLife.com Monday, January 31 – Seminar: Color Pulse 2012, presented by IFDA Tuesday, February 1 – “A Night on Broadway” featuring MEMPHIS For more information, visit www.nyigf.com/programs
1/11/2011 2:53:10 PM
Home Textiles Today
Price Upswing VENDORS FROM PAGE 1
retailer is trying to restructure their lines — some went after it a lot earlier than others.” “All of Christmas was promotional,” said Louis Hornick, chairman and ceo of Louis Hornick & Co. “I suspect it will take the entire month of January and maybe until mid-February to purge out the system; this is symptomatic of recessionary times.” “Overall, I think retailers are being less aggressive than last year at this time,” said Jason Carr, founder and president, Softline Home Fashions, who couched that comment by adding, “They were just clearing goods all through 2010 — it was a hard grind.” “January/February is shaping up to be slower than last year,” said Barry Goodman, vp national accounts, Commonwealth Home Fashions, “as retailers were restocking their shelves in 2010, after a very poor 2009 where they let their inventories run down during the recession.” “Promotional pricing is about where we expected it to be,” said Amy Andrews Bell, executive vp of Home Fashions International. “Retail inventories are a little less this year.” “We haven’t seen any real reductions in inventory at the retail level,” said Carl Goldstein, executive vp, S. Lichtenberg Co., explaining that the window treatments category is less a seasonal-change business than, for example, bedding. “They feel they’ve got to have new styles constantly, new turn...rather than a reorder business.” “In this economic environment, the desire to keep merchandise turning and inventory levels low is expected,” said Joe Blazar, director of marketing and product development, consumer products, Future Foam. He called the current promotional activity “expected” but added, “Post-holiday retail sales, the last week of 2010 and the first week of the new year, were exceptional.” Sean Frankel, principal at Arlee Home Fashions, told HTT that promotional pricing among
January 17, 2011
his retail customers is “in line with expectations — but aggressive, given forthcoming price increases.” Frankel was quite positive looking ahead, however, calling the current activity “encouraging.” He added, “Since fourth-quarter sales were strong, consumer demand and traffic appear greater than last year.” “I think there is concern” among retailers, offered Budd Goldman, ceo of Ellery Homestyles. “I’ve heard some inquiries from retailers saying, ‘How is business in general; what are you seeing?’ When you get a call like that — it indicates they are having concerns or issues.”
Price adjustments loom Snow of Royale said the onrushing momentum for price hikes — driven in particular by rising material costs in cotton and polyester — is being addressed at a different pace by buyers in different segments of retail. While nearly all home textiles goods on the selling floor at holiday had been made and delivered prior to the chaos in the cotton casbah last fall, indications of this upward movement in pricing began to be felt, here and there, as Q4 got underway, and have become more clearly evident as merchandisers start to shift in new goods this month. “Probably the most significant thing is how each one was adjusting to rising prices,” Snow said. “Department stores, with their high-low umbrella, were shielded a bit from pending price increases. The EDLP [every day low price] retailers felt the impact more — but they turn inventory much faster; they benefited much quicker when prices were falling.” And off-price chains? “In order for them to really succeed, they need to show real differences in price,” Snow observed. “So they are waiting for the new price structure to establish itself.” In large part, the off-price retailers will have several more months to prepare their new pricing strategies agreed Bell of Home Fashions International. “Raw materials costs won’t impact them until April or May.” She pointed out that to an extent, off-pricers “comp off of somebody else.” The lowest
price tier, the dollar-merchant types, said Bell, could feel the most pressure. “They’ll be quite challenged. As far as the make, you can’t take any more out.” One response, she suggested, is to wow shoppers with sales events that create a “uniform, collective look throughout the whole store — from gifts and mixing bowls to soft and hard home.” At least one off-price chain has had good success with such events in the last two years, said Bell. “I think it is being more aggressive,” Goodman of Commonwealth said of the current promotional marketplace. “However, the latest price increases are making it more challenging to reach the magic retail price points.” “We’re talking about a retail community where probably any of the buyers who have been buying for 10 years or less don’t know the words ‘price increase.’ If anything, they’ve seen price deflation,” said Goldstein of S. Lichtenberg. “But we’re past that point. It’s not rumored, it’s not ‘We’re not going to pay the increase.’ You can negotiate — we always do — but the reality is, the costs are up. The real question is who absorbs it. The supply side has for the past year. We’re at the point now where the factories are not going to absorb these costs.” “The problem the retailers have is that sales for the last three years have been flat or down from 2007,” Goldstein asserted. “Now with costs going up, do they absorb that and maintain their price points — or raise retails to maintain margin?” “I think buyers are growing more understanding of the problems said Carr of Softline. “There’s more press about what’s been going on in China, Pakistan, India, everywhere. Anyone who thinks that retailers at all levels are not going to have to increase their price points is delusional.” Goldman of Ellery said the conversations with ret ailers about price instability began at the end of October. “We looked at our costs and said, ‘Hey, we need some partnership with the retailers.’ We measured our strategies, talked with each of them... We’ve not heard one retailer say,
‘What are you talking about?’ They bring in enough product themselves; they know.”
New products, dot-com pleased Some vendors pointed to holiday business that exceeded expectations; several described standout products that helped them achieve pronounced upside in the fourth quarter. And in spite of the general economic doldrums, it appears that a fashion cycle, a move away from basics, might even be getting underway. “I’m glad that retailers are going a bit more for the novelty fabrics, trying to get a little more risky in color,” said Carr. “Some buyers are giving us the opportunity to test a lot more than they used to” in terms of both product selections and the number of doors, he said. “I think every buyer is looking for the next great thing; we’re trying to appeal with a more fashion-driven product.” “For us, throws sold real well” in the fourth quarter, said Ellery’s Goldman. They are giftable.” The runaway best-seller for the company, he said, was the SoundAsleep Comfort Pillow, a basic polyfil bed pillow with built-in speaker compatible with iPods and other mobile music devices. “It was huge online and in bricks and mortar,” said Goldman. “It resonated with consumers.” Another utility bedding item, memory foam mattress toppers, led the way at holiday for Future Foam, according to Blazar. Arlee saw Black Friday sales kick off strongly with two-pack decorative pillow sets and luxury throws, said Frankel. Overall through the holiday season, its best performing offerings seem to have been pet beds and blackout thermal curtains. For Commonwealth, “Our best selling category for this period was our Thermalogic Energy savings curtains,” said Goodman. “Our basic Weathermate cotton duck insulated program” was the style leader in sales. Dot-com merchandising was clearly a bright spot for a range of vendors. Softline, which established itself as a progressive resource for web-based merchandising, has seen retailers av-
idly participate, said Carr: “We are providing our online retailers the necessary photography, personnel and staff to upkeep their site if need be, and we continue to get even more active online.” “In many cases, dot-com wasn’t even a conversation three or four years ago,” Carr said, noting that more and more buyers realize the advantages, such as testing new goods with less inventory exposure, that an e-commerce program can yield. Goldstein agreed, but cautioned that when a retailer calls for an e-commerce exclusive, the vendor must be wary of taking on the costs of design, production and delivery, only to be out of luck if that retailer has over-assorted a category, due to the easy entry costs of web-only product presentation. E-commerce can mean more than an electronic stand-in for a print catalog, however. New twists in marketing are a key component. To pump up a social media campaign, Ellery tapped a viral marketing agency to help with its SoundAsleep rollout at holiday, and the company plans to increase such online marketing efforts in 2011, said Goldman. “Online retail by far” was the most satisfying merchandising segment for Commonwealth during holiday, said Goodman. Louis Hornick & Co. enjoyed an outstanding rollout of its Firefend thermal blackout curtain line this holiday, with exceptional results at online merchants — and “we just went live with JCPenney.com on Jan. 4,” said Louis Hornick. He added, “Customers purchased from four to 12 units; they must be dressing a significant number of windows in their households. In my 35 plus years in the business, I’ve never seen anything like that.” Tripp Hornick, coo of the company, told HTT the Firefend Facebook page gains dozens of new consumer “friends” each day, and the company plans a number of sales-boosting initiatives, including a Name the Dog contest for the line’s Dalmatian logo, a promotion that could be ready for launch around the time of the March market week. HTT
1/13/2011 3:52:46 PM
First Half Outlook OUTLOOK FROM PAGE 1
will not slow the growth in our categories. Realistically, pricing has been artificially low for the last ten years, and now, it is normalizing. The bottom line is that the value is still there and the consumer will recognize it, even at slightly higher prices.
Arlee Home Fashions Sean Frankel, national sales manager
Our outlook for the first half is upbeat. Ret ailers are expanding their creative boundaries and experimenting w i t h h i g h e r p r i c e p oi n t s , both of which convey confidence in consumer demand.
Balta US Patrick Moyer, president
We are cautiously optimistic about the first half of 2011. We are encouraged by signs in the marketplace that consumers are willing to spend again. However, with unemployment still hovering above 9.5% and the housing market still struggling, we fear this may only be temporary. The companies that will win in this unpredictable environment will be those that focus on product innovation and product value. That is where we are focusing at Balta as we prepare for 2011.
Brentwood Originals Loren Sweet, president
I am optimistic about the first quarter and we are close enough to be able to feel pretty good about it. LOREN SWEET All I can adBrentwood dress is from the top line sales standpoint. Obviously, the volatility in pricing is challenging to the bottom line, but I feel business will be good. However, one quarter out is as far as I would want to go. The second quarter of 2011 is just too far away to have any comfort level with.
Carpenter Dan Schecter, vp, sales and marketing
Our outlook for 2011 is positive – the No. 1 issue we think about is the New Reality on consumer spending patterns and how they execute transactions at point of sale. The features and benefits communicated to consumers and how they are communicated are top of mind. She will spend but she has to understand what the benefit is – how her problem is solved or needs met and the value she sees in the product. By value I do not mean price but rather how her expectations are going to be met. She will spend a penny but she will not waste a penny.
Creative Bath Products Bob Weiss, president
Creative Bath will have the best first quarter in company history because of our domestic manufacturing capabilities. This increased volume will have no correlation with any textiles whatsoever. The increase will be all injection molded items made right here in the U.S.A. Textiles will see a minimum increases.
Elrene Home Fashions Bryan Siegel, chairman and ceo
Our business outlook for the first half of 2010 is cautiously optimistic. We think it is good that Easter is coming a little later this year. This will give retailers more time to maximize their seasonal selling. While we have been dealing with rising cotton and raw material prices since the middle of 2010, I think the direct effects to the consumer will start to show very soon.
Future Foam Joe Blazar, director of marketing and product development
We’re right where we expected. As a matter a fact, on the high end of the market, we had some stronger than forecast pillow sales right after the holidays. I’ve been working to get raw materials and production going to meet the demand. We anticipate a good year. There is a lot of pent up demand and our and mattress toppers show signs of doing well in all price categories. We’re not raising prices, but we have re-merchandised a lot of programs.
January 17, 2011
Home Fashions International (HFI) Neil Zuber, evp
We are looking at good business growth for decorative pillows during the first half of 2011. We have already booked large placements with several major reNEIL ZUBER tailers and HFI have ongoing replenishment programs with many of our customers. Our core decorative pillow business is very solid, with reorder-able placements for spring/summer 2011. We started a quick-ship” stock program during the September 2010 market, [and] based on its tremendous success, we have expanded it to more than 40 styles. The quick-ship program’s success has now crossed over to our pet bed classifi cation. We have put together a quick-ship pet bed program of more than 30 styles. [It] became an immediate success and we are expanding the program for the March market. Our table fashion business continues to grow and we are contemplating stocking some of our best selling styles in placemats and table runners. Regarding rising cotton prices, this will have a minimal effect on our overall business because the fabrics we use are primarily not made with cotton yarns. However, we will be affected by the increase of polyester prices because of the polyester fiber we use to fill our decorative pillows and pet beds. We do anticipate having some price increases in both pet beds and decorative pillows based on raw material cost increases.
Hudson Industries Inc. Lonnie B. Scheps, svp
[We’re] quite bullish for the second half of 2011 with a lot of positive buzz with increasing SKU counts for many retailers and e-commerce. A few majors seem to want to do more with some slight SKU reduction-but they are anticipating heady dollars for the 3rd and 4th quarters. We see more positive economic
Home Textiles Today
indicators meaning a more positive consumer mood …We are seeing few if any delays on the retail side as most clients were well prepared for this issue [of raw material costs]. We massaged these increases in late ‘09 so their impact would be minimal.
Perfect Fit Industries
John Ritzenthater Co.
Jeff Chilton, svp, sales and marketing
Elissa Vogt, vp, sales and marketing
Challenging, to say the least, due to the significant increase to the price of cotton. However, Ritz will continue to seek out opportunities to help grow our business.
M & Z Marketing Clyde Zucker, president
Everyone is doing business in a different way. We can only commit [to a price] as far out as we’ve committed. There are factories that don’t want to commit too far out themselves – only to what raw material they have in hand. Some retailers will have to bite the bullet and raise their prices.
Maples Rugs Arnold Stevens, vp
The outlook probably is even to a little better than last year.
Mohawk Home Jeffrey Seagle, director of marketing and product merchandising
We still have uncertainty in the market, but we do feel retailers pulled back on inventories to close out 2010, which should present the opportunity for a correction and upside potential later in Q1, compared to the order flow of Nov and Dec. and January. However we do feel both Q1 and Q2 will lag behind the 2010 levels which were strong across all of our businesses. Continued deterrents in the market center around infl ation across all retail products — not just home. Increased retail price points across the retail spectrum have limited overall open to buy dollars, and restricted growth compared to LY at many retailers.
Nourison Industries Rita Karmiol, evp of sales
The mood is good, [our] introductions plentiful. New qualities make everything upbeat — in-
expensive decorating for immediate gratification. In area rugs, we are working on lower price points, on newness, and on reacting to retailers needs and making them need us newness at a price for customers.
In the basics area [retailers] are placing orders. Raw material increases are pounding everyone’s bottom line and no one can eat these types of increases. We are dealing with them on a case-bycase basis and there isn’t one customer, vendor or supplier unaffected by this. In many cases we’re looking at ways to change the product — without sacrificing quality — to soften the increase.
Revere Mills International Group John Vanden Berge, president and ceo
We are cautiously optimistic for the first half. However, with the price of cotton at unprecedented levels it is extremely difficult to figure out how this will reflect on the business, particularly in the second quarter. As the inventories of lower cost cotton depletes itself from the pipelines and the high cost cotton flows into the supply lines it’s a real “wild card” as to how it will effect business in towels.
Surya Inc. Satya Tiwari, president of the U.S. division
We are very excited about the business prospect in the first half of 2011. We feel the economy is slowly rebounding and consumers will be more comfortable spending as job data improves further. Our business has continued to grow and have seen some strong signs of improvement across the board. As global consumption of basic raw material as well as labor is increasing, we have no choice but to increase our prices to our retailers. The market has no choice but to accept the price increase. We now have two major countries — India and China — where the middle class is growing with a fresh appetite that didn’t exist before. HTT
1/13/2011 4:17:14 PM
Home Textiles Today
January 17, 2010
Euro-Stores: How Retailers Did Christmas on the Continent
Liberty of London in the U.K. went the glamour route with this very elaborate and very red display that Stylesight called “decadent.”
PARIS — Before all the “Soldes,” “Verkauf” and plain old “Sale” signs go up in stores all over Europe in January, retailers throughout the continent put on their best faces to entice shoppers to part with their Euros for the holiday selling season. Just as their American counterparts do, store windows and inside displays remain an all-important element in European retailers’ merchandising plans. And while U.S. stores like Macy’s, Barney’s and Bloomingdale’s are no laggards when it comes to holiday windows and in-store vignettes, European retailers like Selfridges, Galleries Lafayette and Le Bon Marche lend their own distinctly British and French flavor to the art. With the help of Stylesight, the online fashion trend and forecasting service, Home Textiles Today surveyed a cross-section of European stores from the past 60 days with the highlights presented here. While it is difficult to generalize, the store displays employ a somewhat broader touch of whimsy and often use scale to their advantage more so than U.S. stores. And as befits the season, they are heavy on color, particularly red: ‘Tis the season, after all. “Holiday red got some fashion street cred as this season’s musthave color across all markets,” said Oona McSweeney, vice president of retail and special markets for Stylesight. “Baroque references were a common theme, but many retailers took a clean, mod-
ern take on red with bold painted backdrops and minimal props.” One unexpected theme played off boxes and packages, a technique that can be copied at relatively low cost for retailers elsewhere. “Serving as a visual reminder for the masses to finish up their holiday shopping, many retailers turned to gift boxes and packages to fill their windows,” said McSweeney. “Stacked, arranged or hanging boxes were wrapped in festive paper and bows, or left with logos visible.” There was also extensive use of mannequins, understandable when showing fashion apparel, but they also turned up to showcase other products, including home. At Printemps in Paris, “Scenes paired spectacularly clad mannequins in holiday looks ranging from the late Alexander McQueen to Valentino with elaborate holiday crystal and tableware,” she said. Galleries Lafayette, also in Paris, chose bold signs and wordage to get its holiday message across, particularly at its home store. And what would Christmas displays be without the ubiquitous Christmas tree but leave it to the French to find a new angle… that angle being upside down, as in the display at Le Bon Marche in Paris. HTT Stylesight is an online trend and fashion forecasting service. For more information, contact them at: Stylesight, 212-6758877, firstname.lastname@example.org.
Printemps in Paris also used red in all its glory for this featured window display; note the use of mannequins as statements in the display.
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Home Textiles Today
January 17, 2011
Head 1 XXX XXX FROM PAGE 13
1. Galleries Lafayette in Paris used giant letters and signs for its Maison home store windows, including this vignette featuring tabletop. 2. Liberty of London used ornaments, a common enough visual element, but filled up an entire window with them, adding in a frog forâ€Śwell, weâ€™re not sure for what. 3. Galleries also used oversized lettering in its main store, employing teal, turquoise and gold, not typically associated with the holidays, to create a standout display. 4. Liberty mixed apparel and home into common displays, again making mannequins the centerpiece of the window.
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Home Textiles Today
January 17, 2011
3 1. Galleries suspended gift-wrapped boxes under its landmark art glass dome which would put even the sourest Grinch in the Christmas spirit. 2. Le Bon Marche in Paris figured the retail world is upside down, why shouldnâ€™t the symbol of the season be so as well. More room for presents, some kids might say. 3. Louis Vuitton used its signature luggage patterns as the basis for an overscaled window full of boxes and more boxes. Note the mannequins again. 4. Selfridges in London also chose fully wrapped boxes but set them against an oversized but decidedly truncated bed, an idea that begs to be used in home textiles store displays. All photos from Stylesight.
1/13/2011 12:33:33 PM
March 13-17 A Must-See Destination Spring NY Home Fashions Market Week If your firm is targeting the U.S. market, you must attend the March Market in NYC, and Home Textiles Today offers the best combination of showroom space and promotion available.
Global Interiors Home Collection Show For complete information, contact: Joe Carena, Show Manager, email@example.com (203) 329-9553 Warren Shoulberg, Publisher, Home Textiles Today firstname.lastname@example.org (646) 805-0226
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Maison et Objet
January 17, 2011 1
1. Pendleton Home adds Crossroads to its collection. It features unnapped, sueded trim and is 82% wool and 18% cotton.
3. Margaret Muir adds the Dove Tail group to its collection. It is a feminine story in soft greys with pink and blue accents.
2. Maspar features Majestic Splendor portfolio of bed covers, pillow cases, duvet covers and many more bedding items that come with crystal studs meant to enhance the richness of fabric.
4. Chilewich features its Shag Ombre Floormat. The indoor/outdoor floormats are heavy-duty and offered in three sizes: doormat, utility mat, and big mat.
1/13/2011 1:53:36 PM
MARKET KICKOFF PARTY PENTHOUSE LOUNGE & ROOFTOP CLUB Sunday, March 13, 2011 • 6pm – 8pm Cocktails & Hors d’oeuvres
For sponsorship opportunities, contact Warren Shoulberg at email@example.com or 646-805-0226.
Industry business card required for admittance.
Home Textiles Today
January 17, 2011
PEOPLETodaY JCPenney Shifts Senior Leadership P L A N O , T E X A S — JCPenney
Company Inc. has promoted several members of its senior management team into new posts within its finance, sourcing and technology segments. Michael Dastugue has been named evp and cfo; Ken Mangone is now evp of product development, design and sourcing; and Ed Robben has been appointed svp and chief information officer. All three are members of JCP’s executive board. “These promotions reflect the strong bench of management talent in our organization and our commitment to training and promoting leadership across the company,” said Mike Ullman, chairman and ceo. “Michael, Ken and Ed each bring exceptional experience and expertise to their new positions, leading areas of critical importance and strength at JCPenney.” Dastugue succeeds Robert Cavanaugh, who will be stepping down as cfo after 32 years with the mid-tier department store chain. Cavanaugh will serve as an adviser to Ullman to providing counsel in support of JCP’s long-term financial objectives, until his expected retirement in January 2012. Mangone succeeds Peter McGrath, who retired December 31 after 37 years with JCP but will continue to be a key contributor to the retailer’s Supplier Council. “On behalf of the board and entire JCPenney organization, I would like to thank Bob Cava-
naugh and Peter McGrath for their many years of exceptional service,” Ullman added. “As cfo over the past decade, Bob has played a key role in maintaining JCPenney’s fiscal health during very challenging economic periods and positioning the company as a leader in terms of financial strength in the retail industry. Peter was instrumental in building the company’s design and sourcing organization, which has set the standard in the industry. They each trained outstanding successors and teams, which will result in a seamless transition in both of their roles.” Dastugue is a finance executive who has developed broad experience across a range of critical functions since joining JCP in 1991, including corporate finance as treasurer and svp of property development, where he was responsible for the development of the company’s new store growth and renovations. Most recently, he was svp of finance, responsible for directing the financial strategies of all JCP business units, including more than 1,100 JCP stores, its international buying offices, logistics facilities and home office here. In his new role, Mangone directs JCP product development, design and sourcing organization. His responsibilities include driving the success of JCP’s private and exclusive brands, which account for approximately 50% of the company’s annual sales. Mangone joined JCP in 1977, and over his tenure is credited with helping
establish JCP’s private brands. Furthermore, he played key roles in both the development of the company’s central sourcing strategy prior to the launch of JCP’s sourcing organization in 1998, and most notably in the development of its private brand design organization. Under his leadership, JCP has also expanded its design talent from 80 to 230 people over the last four years, and established a robust recruitment and training program through which JCP recruits top talent from the best design schools in the country. Robben is now responsible for JCP’s information technology platform, including the design and development of systems and infrastructure to ensure an exceptional online shopping experience. He joined the company in 2007 as svp of core applications development, and most recently directed information technology for the company’s merchant, sourcing, and direct organizations. Prior to joining JCP, he was a vice president at EDS, implementing technology solutions for the Navy Marine Corps Intranets (NMCI) program. Earlier, he served as a consultant at the Feld Group, an IT management consulting firm later acquired by EDS. Dastugue and Mangone now report to Ullman. Robben reports to Tom Nealon, group executive vice president, who is responsible for jcp.com, IT, corporate strategy and JCP’s digital ventures organization and previously held the CIO position.HTT
Brentwood Originals’ cfo, Kent Evans, Dies CARSON, CALIF. – Decorative pil-
low and soft window treatment company Brentwood Originals is mourning the sudden passing of its longtime cfo, Kent Evans. Evans suffered an aortic aneurysm and died Jan. 6. His career at Brentwood
spanned the past 22 years. He joined the company in May 1988 from Kenwood Electronics. “I am deeply saddened,” said Loren Sweet, president and ceo. “He will leave a giant whole in our organization, but his memories will continue to inspire us
as we move forward. Kent was a devoted father and an integral part of our management team. Our thoughts are with his family.” Evans is survived by his son Cole and daughter Chelsea. HTT
ITM Taps Martins for VP, Operations C UMBERLAND , R.I. — Braided rug and door mat company International Textile Manufacturing has named Manny Martins to the newly created position of vp of operations He will report to Ed Pires coo. ITM created the new post for Martins to support its continued growth in the braided rug and door mat categories. Martins will be responsible for all of the company’s manufacturing and distribution functions. “We are thrilled that Manny has joined our firm,” Pires said. “Manny has braided rugs in his
DNA. He will contribute in both quality control and product development areas in addition to his manufacturing and distribution responsibilities.” Martins was previously vp of operations at cmi (Colonial Mills Inc.), where he was employed for 30 years. Martins will serve on the board of directors and is an equity partner in ITM. “There is a lot of excitement at ITM and I am looking forward to helping to build the firm into an even stronger supplier to our retail partners,” said Martins. HTT
NRF Foundation, AmEx Name Winners of Intercollegiate Retail Challenge NEW YORK — The NRF Founda-
tion has selected the six winners of its annual NRF Foundation/American Express Intercollegiate Retail Challenge and scholarships. This annual challenge is designed to help build awareness of diverse career paths in retail by engaging university students in a competitive, collaborative roleplay to implement a multitiered business strategy with support from executive retail mentors. The NRF Foundation is the nonprofit research and education arm of the National Retail Federation and has conducted industry research and developed education programs. This year’s challenge required students to evaluate and propose new customer service policies for a major U.S.based crosschannel general merchandise retailer, and determine how mobile technologies could be used to enhance the customer engagement across all channels. The winning team was led by Jerry O’Brien, director of Kohl’s
Department Stores’ Center for Retailing Excellence at the University of Wisconsin. The students and universities on the winning team include: • Caitlin Clements, Florida State University • Lisa Duckrow, University of Florida • Trevor Hinske, University of Arizona • Michael Stallsmith, University of Wisconsin • Sara Beth Sullivan, Georgia Southern University • Timo Trumpp, University of Michigan These winners received complimentary registration to the NRF’s 100th Annual Convention and EXPO in New York City and presented their awardwinning business plan to Convention attendees. Additionally, each of the six students received a $2,500 scholarship, provided by sponsoring retail partners JCPenney, Macy’s, Sears Holding Corporation, Toys “R” Us and NRF’s digital Shop.org division. HTT
1/13/2011 2:36:47 PM
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Textiles is our Middle Name
Home Textiles Today
January 17, 2011
BUSINESS TodaY December Comps on Plus Side for Most Key Retailers BY CECILE B. CORRAL
NEW YORK — The harsh winter
Same-store sales % change
weather dumping snow over swaths of the country could not keep the sun from shining at select stores in December, when almost all of the 13 key retailers tracked by HTT posted same stores sales gains. Only Stein Mart was unable to pull through the critical holiday selling season, instead suffering a 1.9 decline in comps and a 2.3% dip in sales to $166.3 million from last December’s $170.2 million. And yet, ironically, it was this Jacksonville, Fla.-based mid-tier off-price department store that cited home textiles specifically as one of its three top-performing categories, exceeding the company trend, for the month. The others were ladies’ career sportswear and accessories. By comparison, 264-unit Stein Mart’s ladies’ special sizes, men’s sportswear and ladies’ casual sportswear experienced weaker trends. Soft home was also among the “best-performing” businesses for The Bon-Ton Stores, based in York, Pa., during the five-week period. “Our December comparable store sales came in positive over the prior year period despite severe snow storms, which we estimate impacted our sales by approximately 150 to 200 basis points,” explained Tony Buccina, vice chairman and president, merchandising. He added that Bon-Ton “ended the month with inventories fresher than prior year. Our remaining fall inventories are priced aggressively and we are well positioned for a successful January semi-annual home and furniture sale.” Duckwall-Alco’s 1.1% comp gain last month further pushed
J.C.Penney Costco Wholesale Corp. Ross Stores Kohl’s Corp. Macy’s Inc. BJ’s Wholesale Club J.C.Penney
7.0% 4.0% 4.0% 3.9% 3.9% 3.8% 3.7%
LOSER Stein Mart Inc.
the 23-state regional discounter on its turn-around track. The company successfully delivered a 0.4% same-store sales increase from August through December, recuperating from a six-month sweep of comp decreases in the first six months
“December sales were below expectations, as strength in grocery and apparel was offset by softness in electronics, toys and some home categories.” —GREGG STEINHAFEL, Target
of 2010. Unfortunately, its home décor business wasn’t a bright spot in the chain’s “critical November and December holiday period,” as the category was singled out among departments that performed below company trend in the five weeks, said Rich Wilson, president and ceo. Instead, food and consumables, electronics, apparel, small appliances and housewares were the strongest holiday season performers for the Abilene, Kan.-based retailer. Home helped drag the December performance of Min-
DECEMBER SALES FOR KEY RETAILERS Five weeks ended January 1, 2011 (dollar amounts in millions) a 2010 SALES
BJ’s Wholesale Club b The Bon-Ton Stores Inc. Costco Wholesale Corp. c d Dillard’s Inc. Duckwall-ALCO Stores Inc. Fred’s Inc. J. C. Penney Company Inc. Kohl’s Corp. Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp. The TJX Companies Inc.
$1,250.0 $510.8 $9,190.0 $1,068.7 $69.4 $210.6 $2,955.0 $3,192.0 $4,619.0 $1,008.0 $166.3 $9,882.0 $3,000.0
$1,160.0 $511.1 $8,260.0 $1,005.9 $64.7 $209.3 $2,889.0 $3,014.0 $4,422.0 $934.0 $170.2 $9,741.0 $2,900.0
TOTAL % CHG.
SAME-STORE % CHG.
7.3 (0.1) 11.0 6.0 7.3 1.0 2.3 5.9 4.5 8.0 (2.3) 1.4 6.0
3.8 0.1 4.0 7.0 1.1 0.2 3.7 3.9 3.9 4.0 (1.9) 0.9 2.0
TOTAL % CHG.
SAME-STORE % CHG.
8.4 0.7 11.0 2.0 (0.5) 3.0 1.4 7.2 6.6 (3.2) 3.8 4.3 8.0
4.7 1.0 4.0 3.0 (2.5) 2.2 2.7 4.6 4.7 (1.8) 2.1 2.4 4.0
43 WEEKS 2010 SALES
BJ’s Wholesale Club b The Bon-Ton Stores Inc. Costco Wholesale Corp. e Dillard’s Inc. Duckwall-ALCO Stores Inc. Fred’s Inc. J. C. Penney Company Inc. Kohl’s Corp. Macy’s Inc. Ross Stores Inc. Stein Mart Inc. Target Corp. The TJX Companies Inc.
$9,987.8 $2,800.4 $29,780.0 $5,643.6 $447.1 $1,713.0 $16,855.0 $17,566.0 $23,695.0 $1,118.7 $61,404.0 $51,522.0 $20,600.0
a. Reporting periods vary from chain to chain. b. Excluding gasoline, merchandise comparable club sales increased 1.4% for the five-week period. Year-to-date merchandise comparable club sales excluding gasoline increased 2.7%. c. Total sales results include sales fromthe company’s Mexico joint venture. Without those sales, the increase would have been 8.0%. d. December comp club results are for the U.S. division. Excluding the positive impacts of inflation in gasoline prices and strengthening foreign currencies, comparable club sales for the month were up
neapolis-based Target Corp., which nonetheless reported a comp gain, albeit modest, of 0.9% for the month. “December sales were below expectations, as strength in grocery and apparel was offset by softness in electronics, toys and some home categories,” said Gregg Steinhafel, chairman, president and ceo. “Sales in some key gift-giving categories moved earlier into the holiday season, and lower margin items drove a higher portion of sales
$9,211.9 $2,779.7 $26,830.0 $5,539.2 $449.4 $1,663.0 $16,616.0 $16,380.0 $22,236.0 $1,155.3 $59,147.0 $49,406.0 $19,000.0
3% in the U.S. division, 8% in the international division, and 4% for the total company. e. Because it is on a different fiscal calendar than most of the other key retailers on this list, Costco’s year-to-date sales and comp results reflect the past 18-week period. Excluding the positive impact of inflation in gasoline and strengthening foreign currencies, comparable club sales were up 3% in the U.S., 9% in the international division, and 5% for the total company year to date.
than expected.” He added that Target’s 5% “REDcard Rewards” program is delivering the expected results, and the 49-state 1,752-unit discounter is “confident that we will continue to generate profitable growth, even while consumer buying patterns exhibit volatility across categories and over time.” Off-price chain competitors Ross Stores in Pleasanton, Calif., and TJX Companies in Framingham, Mass., were
equally satisfied with their respective 4.0% and 2.0% December comp increases which exceeded expectations for both. “I am extremely pleased with December’s sales results, as we significantly exceeded our plans during this important period,” said Carol Meyrowitz, president and ceo, TJX Cos. “Our 2% comp store sales growth was achieved on top of a very strong 14% increase last year, a much more difficult comparison than SEE SALES PAGE 21
1/13/2011 1:13:42 PM
December Comp Sales SALES FROM PAGE 20
those faced by most other retailers, with our largest business, Marmaxx, delivering a 2% comp store sales increase over a 15% increase last year. Comp store sales continue to be driven by growth in the number of customer transactions as value, fashion, and great brands continue to resonate with customers.” Ross Stores’ Michael Balmuth, vice chairman and ceo, said he was “pleased to report” that both sales and margins in December “were well ahead of our expectations. These results are especially noteworthy considering the very challenging prior year comparisons.” The chain’s juniors and dresses were the strongest merchandise categories, while Florida continued to be the top performing market. Not surprisingly, e-commerce grew for several key retailers in December as shoppers took advantage of the convenience and increasing ease of online shopping – as well as retailers’ expanded holiday promotions such as free shipping and web-only deals over the five weeks. For Cincinnati-based Macy’s Inc., online sales at its macys. com and bloomingdales.com websites combined were up 28.4% in December and 28.8% in 2010 year-to-date, compared with the same periods in 2009. Building on this movement, Macy’s will soon be expanding the technology, merchandising, marketing and creative functions of its e-commerce organization, as well as building a major new online fulfillment center. Menomonee Falls, Wis.-based Kohl’s Corp. was “pleased with our e-commerce business, as significant investments in IT and distribution helped us achieve a 66% increase in sales this month,” noted Kevin Mansell, chairman, president and ceo. Bon-Ton’s e-commerce sales more than doubled in December from the prior year period.
Home Textiles Today
January 17, 2011
Cost Plus Sees Strong Uptick During Holiday OAKLAND, C ALIF. — Cost Plus
Inc.’s sales increased 6.4% to $277.5 million in the nineweek holiday selling period, ended January 1. Same-store sales rose 7.0% compared to a 0.3% increase for the nine-week period last year. This increase was attributable to a 5.6% increase in customer count and a 1.3% increase in the average ticket per customer. “We are extremely pleased
with our holiday sales results which were consistent across the eastern and western regions,” said Barry Feld, president and ceo. He credited the 30-state 263unit’s strategic use of layered media, combined with its “core competency in seasonal gift giving and entertaining merchandise” with helping drive gains in traffic and ticket. “I am confident that we will achieve the high end of our
previously announced full year fiscal 2010 guidance, and now have the potential to achieve net income in fiscal 2010, one year ahead of expectations,” Feld continued. As of Jan. 5, the home furnishings specialty chain had $17.0 million in borrowings and $10.3 million in letters of credit outstanding under its asset-based credit facility, compared to $40.5 million in borrowings and $11.8 million in
letters of credit at the same time last year. Cost Plus’ new $200.0 million five-year credit agreement was executed and became effective on January 3, 2011. The bank consortium led by Bank of America also includes Wells Fargo and SunTrust. The structure of the new facility allows for increased borrowing capacity with similar financial covenants and includes a $50.0 million accordion feature. HTT
Tuesday Morning’s 2Q a Time of Low Single-Digit Declines in Net Sales and Comps D A L L A S — Up against tough comparisons from the same period last year when it posted gains, closeout home furnishings chain Tuesday Morning Corporation’s net sales and comparable store sales dropped in its second quarter and year to date periods. For the quarter, ended Dec. 31, net sales declined 3.6% to $279.3 million compared to
$289.6 million for the year-ago quarter. Comparable store sales similarly decreased, by 3.2%, which comprised a 2.9% dip in traffic and a 0.3% decline in ticket. Year to date, net sales went down slightly, by 0.6%, to $452.6 million compared to $455.5 million last year. Comparable store sales for the six-month period also decreased slightly, by 0.5%.
“Although we did not achieve a comparable sales increase for the quarter, against last year’s strong 5.1% increase, we are in good inventory position heading into the third quarter,” said Kathleen Mason, president and ceo. “We will continue to focus on our product offerings, real estate portfolio, and profitability.” Based on the second quarter sales results, the 842-unit retail-
er in 44 states currently expects diluted earnings per share for the second quarter to be in the range of 39 cents to 41 cents. Diluted earnings per share were $0.43 for the quarter ended Dec. 31, 2009. Tuesday Morning will discuss more of its second quarter and year-to-date results during a scheduled webcast on Jan. 24. HTT
December Comps Exceeded Expectations NEW YORK — The Johnson Redbook Retail Sales Index was up 2.8% in the first week of January and for the month to date, compared to January 2010, relative to a revised target of a 2.6% gain. However, month-over-month results showed a 0.5% drop compared to December, relative to a target of a 0.7% drop. January is a four-week month on the retail calendar ending on January 29th. The Johnson Redbook said consumers continue to redeem gift cards in the post-Christmas season. Cold weather across the country drove consumers into stores for cold weather clothing. Outerwear and other seasonal clothing ranked high on sales leader lists. Retailers at department stores said consumers were motivated by prices as January clearance sales got under way. “Some discounters reported that consumption had reverted to more normal patterns, with a focus on basic commodities and
food,” Johnson Redbook added. “Clearance is the key theme in January, with most retailers planning to bring in new Valentine’s Day and spring merchandise from about the middle of the month.” In observance of Martin Luther King Jr. day on Jan. 17, Johnson Redbook noted it will release its scheduled Jan. 18 report on Jan. 19. HTT
Johnson Redbook Index First week of January, year-over-year % change WEEK ENDED
Department stores* Discounters Redbook Index
4.0 2.3 2.8
4.0 2.3 2.8
2.7 2.5 2.6
*Including chain stores and traditional department stores Source: Johnson Redbook Index
1/13/2011 1:16:06 PM
Home Textiles Today
January 17, 2011
18 – 20 Texworld USA Jacob Javits Center, New York (770) 984-8016 www.texworldusa.com
24 – 28 Las Vegas Market World Market Center, Las Vegas (702) 599-9621 www.lasvegasmarket.com
18 – 23
8 – 10 Expofil Parc des Expositions, Paris-Nord Villepinte, France +33 (0) 4 72 60 65 00 www.expofil.com
11 – 15
imm cologne The Exhibition Center Cologne, Germany www.imm-cologne.com (773) 326-9920 or +49 221 821-0 www.imm-cologne.com
25 – 27
19 – 25
29 – February 3
Dallas Holiday & Home Expo Dallas Market Center, Dallas (214) 655-6100 www.dmcfinds.com
New York Home Textiles Market Week At the New York International Gift Fair, Jan. 29 - Feb. 3 At 230 Fifth Avenue, Jan. 30 - Feb. 4 At 7 W New York, Jan. 28 - Feb. 3 (800) 272-7469 www.nyhometextilesmarketweek.com
Surfaces Mandalay Bay Convention Center Las Vegas (866) 860-1975 www.surfaces.com
Ambiente Frankfurt Fair & Exhibition Center, Frankfurt am Main, Germany (770) 984-8016 www.ambiente.messefrankfurt.com/ frankfurt
27 – March 2
19 – 25 Dallas Total Home & Gift Market Dallas Market Center, Dallas (214) 655-6100 www.dallasmarketcenter.com
21 – 24 F!NDS Dallas Temp Show World Trade Center, Market Hall, Dallas (214) 655-6100 www.dmcfinds.com
21 – 25 Maison & Object Parc des Expositions, Paris-Nord Villepinte, Paris, France (888) 522-5001 www.maison-objet.com
23 – 26 Interiors Birmingham The National Exhibition Centre (NEC), Birmingham, UK +44 (0) 20 7921 8408
March 12 - 14
New York International Gift Fair Jacob K. Javits Convention Center, Passenger Ship Terminal Piers, New York (800) 272-7469 www.nyigf.com
The Atlanta International Fine Linen and Home Textiles Market & The Atlanta Spring Gift, Home Furnishings & Holiday Market AmericasMart, Atlanta (404) 220-3000 www.americasmart.com
30 – February 3
CGTA Gift Show Toronto International Centre; Toronto Congress Centre, Toronto, Canada (416) 679-0170 www.cgta.org/Assoc/Home.aspx
Home Textiles Today’s New York Winter Market Kickoff Party The Penthouse Lounge and Rooftop Garden at 230 Fifth 6 p.m- 8 p.m. (646) 805-0226 www.hometextilestoday.com
29– February 3
30 – February 2 Intirio Flanders Expo, Gent, Belgium +32 09/24 38 450 www.intirio.be
February 2 —4 Tex Trends India Pragati Maidan New Delhi, India +91-124-2708082 textrendsindia2011.com
6 – 10 Spring Fair The National Exhibition Centre (NEC), Birmingham, UK (609) 921-0222 www.springfair.com
7 – 10 Texworld Paris Le Bourget Exhibition Centre, Paris, France +33 155 268 989 www.texworld.messefrankfurt.com
ASD Las Vegas Las Vegas Convention Center, Las Vegas (310) 481-7300 www.asdamd.com
14 – 18 New York Home Fashions Market Home Fashion Products Association (212) 297-2122 (Kellen Co.) www.homefashionproducts.com
16 – 18 Interstoff Asia Essential— Spring Hong Kong Convention & Exhibition Centre, Hong Kong Messe Frankfurt (HK) Ltd. (852) 2238 9917 www.interstoff.messefrankfurt.com
24 – 27 Dallas Total Home & Gift Market Dallas Market Center, Dallas (800) 325-6587 www.dallasmarketcenter.com
22 – 24
Domotex asia/CHINAFLOOR Shanghai New International Convention Center, Shanghai, China +86 21 6247 7668 www.domotexasiachinafloor.com
April 2–7 High Point Market International Home Furnishings Center (IHFC), High Point, N.C. (336) 869-1000 www.highpointmarket.org
6–8 Lineapelle Fair District, Bologna, Italy +39 02 8807711 www.lineapelle-fair.it
26 – 28 gulfBID Bahrain International Exhibition and Convention Centre, Manama Kingdom of Bahrain +973 1729 3131 www.gulfbidexhibition.com
May 4–6 Proposte Villa Erba in Cernobbio, Como, Italy +39 02 6434054 www.propostefair.it
14 – 17 International Contemporary Furniture Fair (ICFF) Jacob K. Javits Convention Center, New York (914) 421-3200 www.icff.com
15 – 17 Surtex Jacob K. Javits Convention Center, New York, (914) 421-3200 www.surtex.com
18 – 20 Hospitality & Design Show Sands Expo Center, Las Vegas (508) 743-8502 www.hdexpo.com
26 – 28 Vision10: International Window Coverings EXPO Georgia World Congress Center, Atlanta (651) 293-1544
18 – 22 Evteks CNR EXPO, Istanbul, Turkey +90 212 465 74 75 www.itf-evteks.com
1/14/2011 3:55:54 PM
Heimtextil HEIMTEXTIL FROM PAGE 1
The final tally will not be available until the German governmental agency that verifies Messe attendance figures signs off on the numbers. But most exhibitors who spoke with HTT said customers have come to grips with higher prices. S t a n Fr a di n , p r e s i d e n t , Rockland Mills — a longtime
“It’s been a lot heavier in traffic. We’ve seen a lot of people coming through, which is a positive for us.” —LEXI SCHLANDENHAUFFEN, 1888 Milles
Heimtextil exhibitor — said he came into the fair with trepidation, but was leaving feeling positive. “Everyone has come to the realization whatever forces are
happening in terms of price increases, they’re not happening to any individual company. They’re not happening to any individual buyer,” said Fradin. “So with this kind of understanding by the mass group, both the sellers and the buyers, there’s this understanding that it is what it is.” Reflective of the international fair’s positioning as the largest home textiles show in the world, Heimtextil 2011 featured exhibitors from 64 countries. The primary home textiles producing nations continue to grow in representation, with China offering 425 exhibitors (up from 417 last), India with 391 and Pakistan with 212. German exhibitors retained the strongest presence among Europeans, with 341 companies showing, followed by Italy with 103. There were 34 U.S. exhibitors this year, which included fabric and finished textiles manufactueres, companies allied to the trade as well as design firms, fiber producers and packaging manufacturers. HTT
Home Textiles Today
January 17, 2011
Kmart Division Takes Spotlight At Sears, Home a Plus HOFFMAN ESTATES, ILL. — Sears
Holdings Corporation reported slight comp declines for its tot al company and harsher deceases at its Sears stores, but made strides at its Kmart stores in December, its fourth quarter-to-date and its year-to-date results. Specifically, comparable store sales were: at Kmart up 2.3% in December, up 3.4% quarter to date, and up 0.8% year to date; at Sears down 6.0% in December, down 5.3% quarter to date and down 3.8% year to date; and for the total company down 1.7% in December, down 1.1% quarter to date and down 1.6% year to date. Home got some credit for part of Kmart’s recent successes. The company explained Kmart’s quarter-to-date comps “continued to benefit from our layaway program as well as from increases in the toys, home, sporting goods, apparel and
footwear categories.” But these increases were partially offset by declines in the food and consumables and pharmacy categories. S e a r s D o m e s t i c ’s s a l e s decline was primarily driven by the hardlines categories, the company continued. “Over half of the decline occurred in consumer electronics with appliances and tools also experiencing declines. In contrast, Sears’ footwear, jewelry, and automotive categories generated comparable store sales growth during the quarter-to-date period.” As a result, the company expects net income attributable to Holdings’ shareholders for the quarter ending January 29 to be between $370 million and $450 million, or between $3.39 and $4.12 per diluted share. The expectation of fourth quarter net income attributable to Holdings’ shareholders and earnings per share attributable to Hold-
ings’ shareholders excludes the potential impact, if any, related to store closings and impairment charges, restructuring activities including severance, and markto-market gains and losses on hedge transactions executed by Sears Canada. For the full fiscal year, ending Jan. 29, Sears Holdings expects net income attributable to Holdings’ shareholders to be between $130 million and $210 million, or between $1.16 and $1.88 per diluted share, which also excludes the potential fourth quarter impact, if any, related to store closings and impairment charges, restructuring activities including severance, and markto-market gains and losses on hedge transactions executed by Sears Canada. The company currently plans to release financial results for its fourth quarter and full fiscal 2010 on or about Feb. 24 before the market opens. HTT
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200 INDUSTRY EXPERTS inspiring 2500 SUBSCRIBING COMPANIES. Join us as we change the world of design. The COMPONENTS OF RESEARCH - Forecasting, Color, RUNWAY ANALYSIS, Vintage, Active, Accessories, DENIM, Retail, TRADE SHOWS, Lifestyle, Interiors, Beauty, PRINTS & GRAPHICS, Speed-to-Market, Streets & Events, VIDEOS, Webinars, STYLE TRAVELER, Celebrity, Industry News and more - all a click away. Marc Jacobs
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