For at least three years, High Point Market has fought the doldrums: low sales, grim buyers and aging designs.
Retailers who go to the furniture market looking for store merchandise have suffered during the recession. Their customer traffic slowed, and the few customers who came to buy wanted only the staples of furniture.
But industry experts say the change begins today when High Point Market begins its annual spring run.
“I think everything got dumbed down in the past three years,” said Kevin O’Connor, president and CEO of Samson Marketing, which owns Universal Furniture, Legacy Classic Furniture and Craftmaster.
“We went with basic stuff. They weren’t out buying something fashionable, they were out buying something basic,” he said.
“Styles got pretty simple and (retailers) wanted to get prices lower, so we all reacted,” O’Connor said.
That approach worked and Samson remained profitable last year. But now the company’s lines, primarily wood furniture, will include more flourishes, use of metal and different finishes.
“Now, you’re starting to see some movement toward medium to lighter finishes. People are taking some more risks,” he said.
Despite high unemployment, slow home sales and restrained credit markets, retailers have reached the point where they must have more furniture to sell in their stores. That’s because they have cut costs by selling off inventories before buying more.
Retailers are beginning to lose sales now, however, so they’ve got to catch the customers who are walking in the door.
“We do have some shortages out there,” said Jerry Epperson, a financial expert on the furniture industry for Mann, Armistead & Epperson of Richmond, Va.
“When business was in a free fall last year, it was hard to judge the bottom,” Epperson said. “Production and imports dropped below the retail level. Retailers are telling me in some cases, unfortunately, they’re selling things, and they don’t have a backup and they’re losing sales.”
He also believes that more inventory and smarter styling will allow the industry to raise prices on some types of furniture, and that will be good for business.
Companies that sell custom furniture, on the other hand, are not seeing production problems, Epperson said, because they take orders and then produce the furniture.
High Point’s Culp Inc., which makes upholstery for mattresses and furniture, is doing well through the custom market.
“If you look at their February quarter, their upholstery sales were up 38 percent,” Epperson said. “They’re knocking the cover off the ball right now.”
People who buy flat-screen TVs also are buying comfortable new furniture for their improved family rooms, Epperson said.
Even unemployment can help in some cases.
“Back in 1982 when we had a terrible recession, the one thing that continued to sell well was recliners,” Epperson said. “I guess the unemployed want to be comfortable.”
A company that hopes to bring style to the market is Home Furnishings International Brands with its modern Hotel Maison collection.
Combined with another company, Barclay Boutera, both are offering several hundred new pieces at market.
Brian Casey, president and CEO of High Point Market for about four years, said he is feeling the best about the market since he began his tenure.
It’s impossible to know until the post-market numbers come in, but given that the premarket events for big buyers were very well attended, Casey is forecasting an enthusiastic market.
New designs will bring the curious, he said.
“It drives competition, and those that are not doing product introductions are going to be left behind,” he said. “I’m sensing there’s more of that going on and I’m also sensing that that’s what retailers want. ... Everybody’s looking for a fresh start right now.”
Casey said, “All we need now is for housing to improve and for unemployment numbers to decline, and we’ll really start to see things take off.”
Contact Richard M. Barron at 373-7371 or richard.barron@news-record.com
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