ROANOKE TIMES
Copyright (c) 1997, Roanoke Times
DATE: Sunday, January 5, 1997 TAG: 9701070009
SECTION: BUSINESS PAGE: 7 EDITION: METRO
TYPE: ECONOMIC FORECAST
SOURCE: MEGAN SCHNABEL STAFF WRITER
Baby boomers in search of comfort and a style all their own will drive the furniture industry this year, industry watchers predict.
Retailers who sell better-quality furniture - the kind middle-aged boomers now can afford to buy - will be the big winners this year, said analyst Jerry Epperson, who follows the furniture industry for Mann, Armistead and Epperson, analysts in Richmond.
Furniture manufacturers including Rowe Furniture Corp., Bassett Furniture Industries and Stanley Furniture Co. have picked up on the new market and made casual chic one of the key design concepts at the International Home Furnishings Market held last fall in High Point, N.C.
New, liveable styles, plus traditional furniture with casual twists, dominated the October market. Rowe expanded its slipcover sofa line - Comfortable Stuff by Rowe - with new fabrics, including brushed-cotton denim in colors and prints, plus an extra-soft down-blend cushion.
"We baby boomers, we're really looking for comfort," said Jim Haggar, director of retail operations for Rowe.
Casual is a key word for case goods manufacturers, as well. Bassett introduced its McKenzie River line, a collection of dining rooms and bedrooms in burnished oak with a distressed finish that gives it a warm, rustic look.
While retailers and manufacturers who cater to the aging boomer audience will thrive, companies that focus on sales to new households and younger customers will have a tougher time of it, Epperson said. These retailers typically rely on credit sales, and with consumer debt levels as high as they are, people will be reluctant to spend more money. But the credit problem should ease as the year progresses, he predicted.
Buoyed by rising housing starts, overall furniture sales should grow by 4.5 percent to 5 percent over 1996, he said, after a 4 percent increase last year.
The American Furniture Manufacturers Association predicts consumers will spend $52.3 billion on furniture and bedding this year, up from last year's $49.5 billion. The biggest growth will be in upholstered furniture, which will see a 6 percent increase in shipments this year, according to AFMA.
New introductions that were rolled out in October at the International Home Furnishings Market in High Point, N.C., will begin to appear in retail stores soon. Here's some of what consumers will see:
* Entertainment centers. After neglecting these TV-and-stereo units for several years in favor of concentrating on home office furniture, manufacturers realized their mistake last year. With the continuing emphasis on cocooning - on renting movies instead of going to the theater, for instance - there's a huge consumer market for entertainment systems.
Manufacturers gave plenty of floor space and lots of hype to their new entertainment collections, which are built around highboys and armoires that blend with existing furnishings. Most of the new lines are designed to accommodate today's top-selling big-screen televisions.
* Home office. Just because manufacturers have placed new emphasis on entertainment units, don't think home office is passe. Computer friendly desks and armoires are still hot, with more and more companies rolling out models designed to blend in with existing furnishings. Their philosophy, which has struck a chord with telecommuters and other work-at-home folks: You may work at home, but that doesn't mean home has to look like the office.
LENGTH: Medium: 64 linesby CNB