Top Furniture and Flooring stories in March 2009
Interiors Birmingham to be put back a week; No Cologne show clash
31st March | exhibitions | The organisers of Britain’s largest furniture trade show have shifted the dates back a week in a bid to placate visitors who may want to attend other shows taking place around Europe during January.
IN BRIEF | 31ST MARCH
Laura Ashley bounces back after miserable 2008; LFL sales jump 5.3%
Laura Ashley has seen like for like sales climb 5.3% in the past seven weeks, and 4% overall, as it ramped up promotional activity across its stores. The positive numbers contrast with a disappointing year to 31st January, which saw large double-digit LFL sales falls across its furniture ranges.
Marks & Spencer Home sales drop 2.3% in fourth quarter
The chairman of retailer Marks & Spencer, Sir Stuart Rose, hailed the ‘steady progress’ the firm had made in all areas of its homewares offer, including furniture, as it released a trading update for the 13 weeks to 28th March. Overall sales nudged 1.9% ahead of last year, while Home sales fell 2.3%. Like for like sales across its general merchandise categories were down 4.8%.
John Lewis puts focus on Home in ad campaign
Department store group John Lewis is to put its Home category at the centre of a new print and in-store promotional campaign. Its main focus will be on reminding consumers that small accent pieces and home accessories can make a big difference to the overall appearance of people’s homes.
Carpetright can grow market share following Allied takeover
Flooring chain Carpetright could profit from the US investment fund backed takeover of rival Allied Carpets, according to analysts at Singer Capital Markets, who believe the new owner will slim down the number of stores in its portfolio.
Land of Leather insurers contest liability for DMF sofa claims
30th March | compensation | The insurance company representing collapsed sofa chain Land of Leather is contesting compensation claims from consumers who suffered burns and rashes from leather sofas containing the chemical DMF.
Ulster Carpets puts Axminster workers on four-day week
30th March | flooring | Ulster Carpets has put half its workforce on a four-day week. The carpet manufacturer has seen a shortfall in demand for some of its Axminster lines, suggesting the top end has been harder hit since the start of the economic slowdown.
IN BRIEF | 30TH MARCH
TV Makeover show boosts growth
An online furniture business in the north east has put its fast growth down to a tie up with television makeover show 60 Minute Makeover. Homes Direct 365, which specialises in French antique style furniture, has received numerous mentions on the programme, which consequently sent website traffic through the roof. The firm now has plans to open a showroom on Teeside.
Laura Ashley profit and sales figures expected
Homewares retailer Laura Ashley is this week expected to report full year pre-tax profits of about £9.1m. The predicted 6% like for like sales fall is better than was previously expected from the firm, but analysts say 2009 results will show further LFL falls of up to 10%.
Carpet retailer reopens after flood damage
Michael Metcalf Carpets, a retailer in Morpeth, reopened at the weekend after being forced to stay shut for six months following serious flooding when a river burst its banks. The retailer, which has another store in Bedlington, thanked its suppliers and staff for helping the firm get back on its feet.
Ex Ilva chief returns; Ryalux parent reports £9m loss after posting £4.7m profit in '07
27th March | carpets | The former chairman and chief executive of Danish retail chain Ilva is returning to the home furnishings industry with Airea, the parent company to carpet manufacturer Ryalux. Martin Toogood will join the firm on 1st April, as a non-executive director.
It is a delicate period for the carpet group, which besides Ryalux also includes contract supplier Burmatex. In the six months to December 31st, the group reported an £8.8m loss, after making £4.7m in the same period 12 months before.
Anti-Dumping vote looms…..Ikea among those watching with interest
27th March | imports | The European Commission will vote on possible tariffs for anti-dumping duties on Chinese made goods next month. The vote relates to Chinese made candles, but retailers will watch with interest to see if there is an appetite for broadening the number of products that could be considered for import duties.
IN BRIEF | 27TH MARCH
Sofa compensation claims to be dealt with today
Argos, Walmsleys and the administrators of Land of Leather could be ordered to pay millions of pounds in compensation to consumers who suffered a reaction to sofas manufactured in China by Eurosofa and Linkwise. A judge is expected to rule on the case today.
Sales fall at John Lewis
Department store group John Lewis saw sales fall 12.6% in the week to March 21. It said this was influenced by the timing of Easter and good weather, but said underlying trade remains strong.
Marks & Spencer opens Cardiff Home store
General retailer Marks & Spencer has opened its third dedicated Home store, in Cardiff. Unlike its other Home stores, in Manchester and Lisburn, Northern Ireland, the Cardiff outlet will also stock food lines to drive footfall.
Next vows to maintain pricing
Home and fashion retailer Next says it won’t compromise margins by downtrading its products or by artificially raising prices to make them appear more of a bargain when they are discounted at a later date. The chain also says it will up the amount of space devoted to homewares including dedicated home stores.
Ties grow stronger between Nicoletti and Calia; Joint venture set for debut
26th March | upholstery | Sofa manufacturers Calia Italia and Nicoletti will unveil a new brand, dubbed Italian Homes, at the High Point furniture exhibition in North Carolina next month. The two Italian suppliers' collaboration cements a relationship that started last Autumn when Nicoletti resumed production by using a part of Calia’s factory.
Supermarket told it can’t sell furniture as council sticks up for independent retailers
26th March | retail | Independent retailers in Essex have been buoyed by a district council ruling that prevents a new Tesco store from selling big ticket items including furniture. The supermarket chain has gained planning permission to expand its Fullbridge, Maldon store, on the condition that products including furniture are not added to the firm’s non-food portfolio at the site.
Rent day arrives for under pressure retailers; Allied saved
25th March | cash | Many furniture and flooring retailers today face massive rental payments that could push some over the edge. Major chains must shell out large seven figure outlays to pay their rent for the next three months, but the firm considered most at risk in the home sector will not be succumbing today.
Store expansion on hold at Topps Tiles as sales dip
25th March | flooring | Topps Tiles will not be looking to greatly expand on its 340 UK stores for the remainder of the financial year as it reported a large drop in sales. Like for like turnover for the 26 weeks to March 28th will be almost 20% down, with sales of £92m. Last month the retailer was also forced to contend with credit insurance being pulled for a number of its key suppliers.
Designers to be given online platform to showcase talent; Milan launch scheduled
24th March | design | Furniture retailers and manufacturers will soon be able to source new products and designers via the Internet. The owner of a major timepiece manufacturer will use next month’s furniture fair in Milan to introduce Radostar – a social networking site for creatives to share and showcase their work.
Floors-2-Go pulls back on expansion plans amid housing uncertainty
24th March | flooring | Wood floor specialist Floors-2-Go has pulled in the reins on its expansion plans. The firm’s founders, who bought the flooring chain out of administration in the summer of last year, had planned to open 40 new stores, but have cut the number to 20 or less.
Blackpool furniture retailer to close as owners turn store into houses
23rd March | independents | A three-storey furniture store in Blackpool is to be demolished and replaced by seven mews houses. The showroom, John Thompson Design Centre, is an award winning upmarket furniture store that also supplies new housing developments and other contract clients.
It will close at the end of the month after a dip in sales over the past year prompted bosses to apply for planning permission to turn the store into new homes. Eight people will lose their jobs, adding to the dozen who have already left the business in the past year.
Lombok to roll out lighter woods in bid to broaden appeal
23rd March | retail | Ethnic furniture retailer Lombok is to roll out its first ever range of lighter timbers in the next fortnight. The cabinet retailer, which trades from 10 London stores and nine others across the UK, is known for its Asian sourced dark wood ranges.
It is hoped the move will help the firm reach a new audience beyond its traditional customer base. It is also seen as an alternative to discounting, by bringing in fresh product to drive consumer interest.
The new ranges have been introduced in two stores and will go across the remainder this week and next, as well as online. Lombok sells living, dining and bedroom furniture as well as a host of accessories, including a new collection at keener price points.
Natuzzi chief leaves after less than a year; founder to take charge again
20th March | international | Aldo Uva has resigned as Natuzzi chief executive and will be replaced by the firm’s founder Pasquale Natuzzi. It is the second time that a chief executive has lasted less than a year at the helm of the Italian furniture giant.
Independent furniture retailer forced to close one of its two stores
19th March | independents | A furniture retailer in the south east of England has called on councils to do more to support independents after it was forced to leave one of its two stores. The lease at Oak Interiors’ Crayford store is expiring and its landlord plans to redevelop the site. The company, which has another store in Sussex, is on the lookout for a new Crayford site but will trade via its warehouse in the meantime.
Department store Beales sees like for like sales dip in first quarter
19th March | retail | Like for like sales at department store Beales fell 4.5% in the 19 weeks to 14th March, but the company said it believed this was a stronger performance than many of its rivals.
Italian furniture exhibition to rebrand under new moniker
19th March | exhibitions | The Salone del Mobile di Pesaro is to rebrand as Domo360. The four-decade old event takes place at the Fiera di Pesaro from September 24-27, with this year’s edition putting additional focus on kitchen exhibits.
Furniture supply firm to go to court to rubber stamp debt restructuring plan
18th March | finance | The parent of foam supplier Vitafoam and underlay manufacturer Ball & Young hopes to wipe almost £500m off its debt burden by swapping it for equity. British Vita, a chemicals firm with large furniture and furnishings interests, has secured provisional agreement from its senior lenders but must now go to court to push the restructuring plan through.
Retailers prepare to increase IT spend despite downturn
18th March | systems | Retailers are increasing their IT budgets in the hope of finding greater efficiencies, particularly in the area of warehouse management. An Aldata/IBM survey of IT bosses in the European retail sector showed 77% of firms would raise or equal their IT spend in the year ahead.
Furniture retailer outsources pension scheme to fund manager
18th March | management | Habitat is to outsource the running of its pension scheme to a fund management firm. SEI has won the contract to manage the furniture retailer’s £20m+ pension pot, with Habitat saying it wanted to leave the day-to-day running of the scheme to an outside company so it could cut costs and focus on ‘strategic issues.’
Cabinet firm Nathan takes to the road
18th March | marketing | Nathan Furniture is to take its show van on a UK tour of British retailers this summer. The cabinet supplier, known for its teak ranges, hopes to visit firms that didn’t attend the Interiors Birmingham exhibition in January. It will show its Shades dining and occasional range along with the new Living Library collection.
Independent furniture retailer plans to turn store into restaurant
17th March | retail | Furniture retailer Woods & Woods wants to turn one of its two stores into a bar and restaurant. The firm, which has stores in Muswell Hill, London and St Albans in Hertfordshire, has made a change of use planning application.
ScS parent reduces stake in manufacturing giant
17th March | finance | Private equity group Sun Capital Partners has significantly reduced its stake in US furniture manufacturing group Furniture Brands International. The finance firm, which is parent to upholstery retailer ScS in the UK through its Sun European arm, has sold in excess of 700,000 shares in the past month.
20 new jobs to be created by carpet merger
17th March | flooring | Carpet sampling firms Multishades and Meritmill are to merge. The combined firm, called Creative Sampling Solutions, will lead to the creation of up to 20 new jobs.
US furniture manufacturer cosies up to larger retailers with preferential pricing plan
17th March | international | Cabinet and upholstered furniture supplier Broyhill is to introduce discounts for its highest spending retail customers. The US firm will offer price reductions of up to 5% for firms that spent in excess of $1m in the previous year, while others who ordered slightly less will see prices held at existing levels.
Polish furniture manufacturer to close as debts take their toll
16th March | international | One of the largest furniture manufacturers in Poland is shutting down. The company, Swaredz Meble, is listed on the Warsaw Stock Exchange, but has succumbed to debts that will lead to more than 300 staff losing jobs and four factories closing. The firm specialised in cabinet furniture for the living, dining and bedrooms.
At Home Furnishings uses web to expand into new sectors
16th March | expansion | Independent furniture retailer At Home Furnishings has launched two online stores selling rugs and art, and plans two more offering conservatory furniture and lighting. The Stockton-on-Tees retailer has one of the largest independent furniture stores in the north east of England, and hopes its product diversification will boost turnover to as much as three times its existing level.
Briant to return with 10-store World of Sofas chain; LoL bid rejected by administrators
13th March | upholstery | Land of Leather founder Paul Briant is to launch a new sofa chain called World of Sofas and has revealed he had a bid of 40p in the pound for his former business turned down by the administrators of the failed retailer.
Argos mirrors JLP with grim furniture outlook
12th March | retail | Argos says furniture and homewares were its weakest areas in the past year as the slowing housing market stifled sales. Like John Lewis yesterday, Argos says home electronics were among the star performers as it delivered an overall 0.9% fall in sales to £4.28bn in the year to 28th February. Like for like sales in the 52 weeks were 4.8% down, although this has improved more recently. The multichannel retailer returned a 1.6% fall in like for likes in the eight weeks to 28th February.
Margins have also fallen, with adverse currency movements and heavy promotional activity post Christmas among the contributing factors.
Falling carpet demand hits Interfloor as 54 are to lose jobs
12th March | jobs | Flooring firm Interfloor is to cut 54 jobs at its factories in Scotland and Lancashire. The company, a major underlay supplier, will shed 29 jobs at its plant in Dumfries with a further 25 going at its site in Haslingden.
Home sales fall 6.7% at John Lewis
11th March | retail | Furniture has been among the poorest performing categories for department store retailer John Lewis in the past year. Home sales fell 6.7% in the year to 31st January 2009, offsetting growth in fashion and home technology products.
Malaysian furniture fair hit by flash floods
11th March | exhibitions | One of the most popular international furniture shows with UK buyers was severely disrupted by flooding caused by an adjacent river bursting its banks last week. The Malaysian International Furniture Fair (MIFF) was forced to relocate almost all of the exhibitors in one of its show halls after water reached levels of four feet. The disruption took place on the first day of the Kuala Lumpur based show.
Click here to see how bad the flooding got
'MFI store' sells discounted goods at rate of £17,000 an hour
10th March | sales | The last store to be used in Chris Dawson’s MFI guerrilla sale reopened at the weekend and took more than £17,000 an hour. Dawson, who owns The Range, a leisure, home and garden retail chain, bought £68m worth of former MFI stock earlier this year after the retailer collapsed.
Dreams Scottish warehouse hit by fire
10th March | beds | The Scottish distribution centre of bed retailer Dreams has been damaged by fire. The blaze, at the retailer’s site in Cambusling in South Lanarkshire, was tackled by eight crews including more than 50 fire fighters and is thought to have caused significant damage to stock.
Sofa Brands to close Cameo
10th March | upholstery | The last of the remaining Christie-Tyler factories looks set to close. Loss making private label upholstery manufacturer Cameo, now owned by Sofa Brands International, could close as part of a restructuring of SBI’s manufacturing interests in the UK and Eastern Europe. SBI also owns brands including Duresta, Derwent, Parker Knoll and G-Plan Upholstery.
BRC calls for VAT and rates plan to be put on hold
9th March | legislation | The plan to reinstate 17.5% VAT and a 5% increase in business rates should be shelved, according to the British Retail Consortium. But the retailer funded lobby group’s call is likely to fall on deaf ears within Government, with chancellor Alistair Darling insisting both measures will go ahead as planned.
Irish furniture retailer told to stop misleading advertising
6th March | Ireland | An independent furniture retailer in Ireland that has been promising large discounts in advance of closing its stores has been slapped on the wrist for misleading the public. Two-store Emerald Fine Furnishings has been publishing closing down sale advertisements in leading Irish newspapers for nearly a year, despite no sign the company is to stop trading.
Las Vegas draws in 19% more international buyers
6th March | exhibitions | February’s Las Vegas Market saw international visitor numbers climb by a fifth and well over 6,500 first time attendees. The show, which featured 1,500 exhibitors, saw overall attendance fall 4% compared to its July 2008 event, suggesting talk of retailers putting buying on hold is wide of the mark.
Steinhoff expects to grow market share as vertical business model aids progress
5th March | retail | Furniture conglomerate Steinhoff says it expects to up its market share in the UK as rivals flounder in the current downturn. The South African company, which owns large swathes of the UK furniture retail and manufacturing sectors, believes its vertical model means it is well placed to maximise existing operations, while at the same time mopping up empty retail sites as they become available.
MBO at Haskins as furniture business is sold
5th March | independents | Haskins Furniture has been sold to its md Garry Preston and is no longer part of the founding Haskins family business. The MBO follows a £3m development of the Haskins Retail Centre in Shepton Mallet, Somerset, where Haskins Furniture will be based in a 20,000sq ft showroom.
Howdens bids to up consumer profile while keeping costs under control
5th March | kitchens | Trade kitchen supplier Howdens says it will take measures to increase its consumer profile as it looks to improve sales lost as a result of the planned ending of its relationship with failed retail chain MFI.
Group revenue at parent firm Galiform dropped from £976.5m in 2007 to £805.7m in 2008 although Howden Joinery depot sales increased from £768.4m to £782.9m. 20 new Howden depots opened in 2008 although no more are planned for this year.................full story
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Christmas cheer for kitchen firm as it reduces rental liability on former MFI stores
Furniture manufacturers' optimism improves despite fall in orders
4th March | manufacturing | A balance of -73% of British furniture manufacturers saw a fall in orders in the four months to February 2009, and a balance of -85% have seen profit margins drop during the same period.
According to the Association of British Furniture Manufacturers’ (BFM) State of Trade Survey, more than half of furniture manufacturers in the UK have been on short time working in the past four months (56%) and a similar number (54%) expect this to continue until the summer.
Sleep Council sexes up National Bed Month to promote sales
4th March | marketing | Bed promotion group The Sleep Council will put sex at the top of the agenda during National Bed Month. The organisation has carried out a number of consumer surveys including questioning the location, motivation and frequency of the nation’s sexual habits.
Thousands of sofas face recall after EU decision to ban DMF
3rd March | upholstery | UK furniture retailers could be forced to recall all of the sofas containing DMF manufactured by Chinese firms Eurosofa and Linkwise, including those that haven’t solicited an allergic reaction from consumers.
Last month the Furnishing Report told how EU officials had started the process of banning DMF in all products bound for Europe, following the skin reactions suffered as a result of mould preventing sachets containing the chemical being inserted into upholstery by the two Chinese suppliers............full story
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Land of Leather share listing cancelled as efforts to sell the company continue
3rd March | multiples | The administrators of Land of Leather have cancelled the company’s share listing saying there is little chance of returning any value to shareholders out of the administration.
The retailer went into administration in January and despite being linked with a swift buyout by current and former members of the management team, no deal has been forthcoming. Deloitte, the administrator, says it continues to talk to potential buyers. A number of the chain’s stores have now closed.
Smallbone shares suspended as sales fall in February
3rd March | kitchens | Less than a month after agreeing a new financial package, kitchen manufacturer and retailer Smallbone has suspended its AIM share listing.
The firm says February sales have fallen ‘significantly’ and so too have customer deposits. It will conduct a review of its ‘working capital needs’ that could result in a sell off of some of its subsidiaries, or the sale of the entire group to a larger company with ‘greater balance sheet strength.’
The Smallbone group consists of Smallbone of Devizes, Mark Wilkinson Furniture, Hopton Works and Paris Ceramics.
DFS to take a punt on the St Leger following sponsorship deal
3rd March | marketing | Upholstery chain DFS is to sponsor September’s St Leger Festival – one of horse racing's most prestigious events. The furniture chain, which spends more on marketing than any other UK furniture retailer, will pay £100,000 for the sponsorship package, which includes naming rights to some of the races at the event.
Police seize Polish upholstery being sold across the south of England
2nd March | upholstery | Non fire retardant sofas imported illegally from Poland have been seized from travelers’ sites in Essex. Trading standards officers and police claimed the upholstery after being tipped off about a consignment being delivered last week.
Ekornes improves sales by putting promotion at the centre of its strategy
2nd March | brands | Ekornes has upped its marketing activity in a bid to beat the market downturn. The Norwegian upholstery manufacturer, parent to the Stressless brand, saw a 3.9% rise in gross revenues during 2008 and has managed to improve 2008 sales figures in the early part of this year. The firm reported sales of NOK 2.7bn in 2008.
