Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, April 25, 1993 TAG: 9304270302
SECTION: BUSINESS PAGE: D-1 EDITION: METRO
SOURCE: SANDRA BROWN KELLY STAFF WRITER
DATELINE: HIGH POINT, N.C. LENGTH: Long
Also, a wait-and-see consumer attitude inspired by President Clinton's speeches on the need for tougher fiscal policies slowed retail sales at the end of the first quarter.
But manufacturers at the International Home Furnishings Market last week seemed to stay cool in the face of pressure.
If anything, they seemed confident that business conditions, including the efficiency of their operations, were getting better.
Albert Prillaman, president of Stanley Furniture Co., said what's happening is "just Econ 101," like he studied at Roanoke College.
He said the export of logs, bans on timber cutting because of environmental concern about the endangered spotted owl and fewer log suppliers still in business created a shortage of lumber. The price increase resulted. However, supply and demand will come together again.
He said Stanley's sales were only off 10 percent for the first quarter, and "April will be one of the best months Stanley has had."
Prillaman said at least Clinton's talk of "sacrifice" didn't dump the furniture industry into a recession, like when President Carter asked Americans to put away their credit cards.
Prillaman said he doesn't even believe people disagree with Clinton, but just want to see how much taxes will rise before they purchase a lot of new goods.
That's especially true for furniture, which almost nobody has to buy, the executive said.
Consumers' caution, coupled with increasing demand for better goods at lower prices, has pressured retailers and the manufacturers to deliver higher quality and service and do more marketing of what they already make.
And that's where the companies are focusing.
That was true even for a Roanoke company that is just a year old and making its first appearance at the wholesale furniture show.
Twist & Turns, which manufactures wrought iron furniture in Vinton, met and hired its first national sales manager at the show, said David Selfe, a co-owner with Joe Cassell.
Selfe said the sales manager's role will be to get other salespeople to represent Twist & Turns throughout the country and help the company get some of its pieces shown in catalogs.
Manufacturers are trying to make it easier for both the retailer to shop the wholesale markets and the consumer to shop the stores.
They have used a variety of techniques. Some have expanded product lines so that a retailer can have a greater selection from one source, a one-stop shopping approach. Manufacturers also provide advertising and display packages to retailers who purchase their products. Others are encouraging stores to use computer and video programs that make it easier for customers to choose furniture.
For instance, Roanoke's Singer Furniture Co. reactivated its Manor House division to make furniture that is slightly more upscale than the typical Singer brand sold through mass merchants such as Sears, Roebuck and Co.
Singer President Dennis Ammons said the company "wanted to capture" a new market.
The result was "Grand Canyon," which company executives describe as a country look with Southwest accents that include wrought iron hardware. A basic Grand Canyon dining room group of furniture will sell at retail for $2,500 to $3,000 compared to a Singer dining set at $1,500 to $2,000, and the retail store owner can get them both from the same manufacturer.
Two weeks ago, Singer reopened a plant in Lenoir, N.C., to make the Manor House pieces. The plant had been closed for four years when Singer's previous owner abandoned the Manor House line.
American of Martinsville, which is a division of LADD Furniture Inc., and Pulaski Furniture Co. concentrated on adding new pieces to existing lines. For American, it meant the addition of color accent pieces and more bed designs for its American Ancestry shaker-style line.
Among Pulaski's offerings were a small-scale version of a baker's rack it introduced several markets ago and three- and four-panel folding screens that can be custom-covered.
The company emphasized its chair program, which provides a dealer with display design, advertising materials and the promise that customers can choose from a variety of fabrics and chair styles, all offered at one price.
Pulaski's Ridgeway Clock division introduced a $7,000 limited edition grandfather clock to commemorate the 250th anniversary of Thomas Jefferson's birth, and smaller grandfather clocks for the budget-conscious.
Its Cratique division, which makes 18th century reproductions, added a serpentine-front sideboard and a 13-foot-long dining table to its line.
The absence of massive introductions of new items was an indication that the furniture business is doing rather well.
"If business is good, extensive new product isn't needed," said Tom Prato, spokesman for Bassett Furniture Industries.
Bassett paid special attention to its "collections," which are coordinated groups in upholstered and wood items, including tables and other accent pieces like computer desks.
It also continued to do what it excels at, which is producing lower-cost versions of popular furniture. A copy of a Frank Lloyd Wright chair was added to its mission furniture group, Legend. The company also made a hickory log bed that is a look-alike to a Ralph Lauren design.
Rowe Furniture Co., which manufacturers furniture in Salem, was one of the few companies that did not increase prices, but upholstery companies haven't had the lumber price increases that the wood furniture manufacturers have gotten.
However, Rowe followed suit in paying attention to detail rather than broad introductions. It introduced "Secrets," which included sofas in which the center cushion folds down to provide a table and ottomans that open to reveal a flip-up work table and storage space.
by CNB