Top Stories from May 2009
Natuzzi sales target hits major setback as revenues drop more than 35%
UPHOLSTERY | SALES
Italian sofa manufacturer Natuzzi will have to double in size in the next two years if it wants to meet its ambitious 1bn Euro sales target by 2011. The upholstery firm suffered a heavy 35% revenue drop in the first quarter of 2009 – but did at least manage to halve the losses incurred in the same period last year.
Furniture design firm bought by Educational IT supplier
CONTRACT | ACQUISITION
Isis Concepts has been sold to school computer supplier RM for almost £3m. Isis is a furniture manufacturer specialising in high tech design in the education sector. It has a turnover of £3.6m and a pre-tax margin of more than 10%.
IN BRIEF | 29TH MAY
Cormar Carpets sales and profits drop
One of Britain’s most successful carpet manufacturers has seen sales and profits fall. Lancashire tufted carpet firm Cormar saw sales drop £7m to £60.6m and pre-tax profits fall to £2.9m from £4.6m in the year to 30th September 2008. It is the first sales fall in more than 5 years.
Sales drop back again in May
Retailers suffered a sales setback in May after April had shown the first signs of a recovery. The CBI’s Distributive Trades Survey said a balance of 48% of retailers reported falling sales. Despite the drop, the CBI said the results represented the second best set of figures since June of last year.
More people turn to instore credit to fund furniture purchases
RETAIL | CREDIT
The number of consumers buying furniture through instore credit has risen again. In March, shoppers spent £230m through credit deals such as interest free and buy now pay later, an increase of 9% year on year...........full story
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Retail store credit on the rise despite lending squeeze
Soft furnishings firm saved; Former John Lewis subsidiary rescued by management
TEXTILES | OWNERSHIP
Fabric supplier JH Birtwistle has been bought out of administration by the md of a firm acquired just last year by the textile weaver.
DIY retailer to increase furniture offer as it targets volume sofa market
RETAIL | DIVERSIFICATION
DIY retailer B&Q is to step up its campaign to become a mainstream furniture player by introducing upholstery to its Internet offer.
Sofa chain DFS to sponsor Crufts
UPHOLSTERY | MARKETING
Upholstery retailer DFS is to become the principal sponsor of this year’s Crufts dog show at the NEC. The sofa firm – the industry’s most active marketer – has had a string of sponsorships in recent years, including the television shows Dancing On Ice and All Star Mr & Mrs.
Recession will create £855m opportunity for home furnishings retailers
DOWNTURN | SALES
Furniture and flooring firms will be battling to pick up an estimated £855m bounty in the aftermath of the recession.
Resilient Topps Tiles suffers heavy sales fall but remains profitable
FLOORING | TRADING
Like for like sales dropped 18.5% for Topps Tiles in the half year to 28th March – and 13.4% overall to £92.1m. The floor and wall tile chain also suffered a drop in gross margin but managed to return a £10.3m operating profit, a 50% fall on last year.
IN BRIEF | 27TH MAY
Place available on Morris’ Cannonball Run
Morris Furniture has one place available for its Cannonball Run – an 800 mile charity drive through Eastern Europe with all money raised going to the manufacturer’s Build Aid charitable trust. Hotels, meals, dinner and dancing in Zagreb, Prague and Budapest are all included in the entrance fee. For more information email robert.morris@morrisfurniture.co.uk or visit www.buildaid.org.uk
Singapore furniture manufacturers target Eastern Europe
A delegation of ten furniture manufacturers are to tour Hungary, Poland and the Czech Republic today as part of a Singapore Furniture Industries Council initiative to explore new export markets. They will hold exploratory meetings with retailers and importers, as well as attending the furniture fair in Poznan.
Upmarket Heals wants its share of online retail market
London furniture retailer Heals has relaunched its website and hopes it will soon account for up to a fifth of all sales. The company has adopted a host of technological upgrades in its new site, which has in the past been responsible for about 5% of turnover.
Furniture is star performer for Essex department stores; Double digit LFL sales rise
FURNITURE | RESULTS
Chelmsford and Braintree department store group The Quadrant has seen furniture sales rocket in the past year, with like for like revenues jumping by 12.7%.
Furniture format will be called John Lewis at Home
HOME | EXPANSION
Department store group John Lewis is to call its new home and electricals format John Lewis at Home. The first standalone homeware store will be in Poole, Dorset.
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John Lewis to launch smaller dedicated home stores
IN BRIEF | 26TH MAY
Another furniture trade show is postponed until 2010
The Spanish edition of worldwide furniture components show Zow has been postponed till 2010. Zow Zaragoza was due to take place from 2-5 June. Further shows are planned for Istanbul, Verona and Moscow later this year before it returns to Germany for the flagship event in February 2010.
Bespoke bedroom and kitchen firm gets financial help
Qualite Kitchens and Bedrooms has received a £250,000 transitional loan from the Northwest Regional Development Agency. The manufacturer sells direct to the public from its own showroom in Warrington. The vertical firm wants to expand into the contract sector.
Warranty firm snaps up French rival as it looks to Europe
Homeserve hopes to expand into mainland Europe after buying French warranty provider SFG for a net £17.1m. Homeserve is parent to the Multimaster range of furniture care kits and works with retailers to offer insurance on furniture purchases.
Winter sale disappoints for John Lewis of Hungerford
KITCHENS | SALES
Turnover dropped by a quarter at kitchen manufacturer and retailer John Lewis of Hungerford in the half year to 28th February.
Furniture retailers gear up for Bank Holiday weekend; Independents adopt subtle approach
HOLIDAY | PROMOTIONS
Britain’s national furniture chains are to slash prices this Bank Holiday weekend while their independent rivals look to attract customers with multibuy and voucher promotions.
More woe for Land of Leather; Guilty of misleading consumers over promotions
PRICES | LEGAL
Defunct upholstery retailer Land of Leather has been found guilty of misleading consumers by falsely claiming to be discounting its sofas.
IN BRIEF | 22ND MAY
Ikea to cut store opening hours
Swedish furniture retailer Ikea is to reduce the number of hours its Brent Cross, London store remains open. It will close two hours earlier following a fall in consumer footfall. Similar measures have already been introduced at some of the retailer’s other UK stores.
Jobs go following Smallbone sale
Kitchen firms Mark Wilkinson and Smallbone of Devizes are to be co-located on one site in Wiltshire, with up to 100 jobs to go as a result. The two firms were rescued by entrepreneur Leo Caplan following the administration of the publicly quoted Smallbone Group earlier this year.
ONS reports April sales rise
Retail sales in April climbed 3% on the same month last year, according to figures released by the Office for National Statistics. It is the first set of data released by the ONS since it revised its data collection methodology, which had previously been criticised for being out of kilter with other retail monitors.
Furniture retailers agree sales commission in the name of charity
INTERNET | TRADING
A number of the UK’s top furniture retailers have signed up to pay a sales commission to charities, if consumers buy goods through a new online trading portal. The website, called ibelongto.com, has attracted home retailers including Furniture Village and John Lewis as well as pureplay online traders Furniture123, Bedworld and Your Furniture.
French cabinet firm Brigitte Forestier ceases trading after failure to find buyer
CABINET | FAILURE
Brigitte Forestier has lost its long running battle for survival, the Furnishing Report understands. The bedroom and living room furniture manufacturer had been in difficulty for some time, but it had been hoped a buyer or investor could be found.
UK Residential flooring sales hurt Headlam as revenue drops 8.5%
FLOORING | TRADING
Flooring wholesale group Headlam has reported an 8.5% fall in turnover to £168.4m in the first four months of the year. Domestic sales dropped by almost 12%, while the carpet and wood floor distributor’s mainland European operation saw a 7.7% sales uplift.
IN BRIEF | 20TH MAY
Retail warranties revenue drops at Homeserve
Warranties provider Homeserve, which owns the Multimaster suite of furniture repair brands, has increased full year operating profits to a shade over £100m. However, its retail warranties business has suffered in the recession, with turnover falling £6m.
Sealy md leaves as Mernock takes responsibility
Jim Harrower is to leave his post as md of bed firm Sealy after nine years in the role. Neal Mernock will take over Harrower's duties in addition to his position as chief executive of the Silentnight Group - which owns the Sealy license in the UK.
Furniture helps Marks & Spencer dispel fears of home market collapse
FURNITURE | RETAIL
Marks & Spencer’s furniture and homeware category outperformed all other product groups in the year to 28th March – suggesting talk of consumers putting home spend on hold is wide of the mark.
Industry champion denies allegations of expenses wrongdoing
POLITICS | EXPENSES
Madeleine Moon MP, the chair of the All Parliamentary Furniture Group, has rebuffed allegations in the Telegraph newspaper that furnishing expenses claimed back for her second home in London were actually bought for her constituency home in Wales.
Trade body calls for end to supplier squeeze as late payment takes toll
FURNITURE | CASH
The Forum for Private Business is to step up its campaign to name and shame late payers as its latest survey reveals more small businesses are suffering cash flow problems.
IN BRIEF | 18TH MAY
Return for home furnishing chain mooted
One of the biggest home furnishing casualties of the recession could make a return to the UK retail sector. Indian industrialist Sanjay Dalmia, who runs GHCL, the company which acquired Rosebys in 2006, wants to resurrect the business worldwide over the next five years. He wants to create a $200bn global retail chain, but says they may not use the Rosebys brand name.
Fire safety guide to be launched today
The British Furniture Confederation will today launch an updated guide to the Furniture and Furnishings Fire Safety Regulations. The trade collective will introduce the guide at the combined London headquarters of the Furnishing Trades Benevolent Association and the Worshipful Company of Furniture Makers.
London sales outperform the rest of UK but furniture remains difficult
Furniture retailers in London are struggling to keep pace with fellow city store operators who are outperforming the rest of the UK retail sector. The furniture category found trading difficult during April, while the whole of the retail sector in London recorded a 5.4% uplift compared to last year. Sectors attracting tourists did better, as the weak pound brought more overseas shoppers to the capital.
‘No furniture market is suffering more than the UK,’ says Ikea boss
FURNITURE | TRADING
Outgoing Ikea chief Anders Dahlvig says the UK furniture market is suffering more than any other and is the worst he has ever seen it.
Harrogate bed retailer to undergo £250k revamp
BEDS | REFURB
Yorkshire independent To Catch A Dream is to broaden its product offer and introduce a coffee shop as part of a quarter of a million pound upgrade of its Harrogate store.
IN BRIEF | 15TH MAY
Budget retailer accused of bullying customers
Brighthouse has been accused of harassing customers who cannot meet furniture repayments. A BBC investigation pointed the finger at the retailer, which sells goods on credit at high interest rates, saying it goes too far in trying to reclaim goods or cash when customers fail to pay. The retailer denies any wrongdoing.
Furniture Village sales fall 10.2%
Retailer Furniture Village has reported a 10% sales fall to £178.5m and a 15% drop in like for like sales in the year to 29th March. Operating profits fell by almost £5m to £2.7m.
John Lewis enjoys strongest furniture week of the year
Furniture sales at John Lewis were higher last week than at any other time this year. The retailer said home sales were the strongest of its product categories, despite an overall 0.4% fall in year on year sales.
Dining room furniture boost from recession
More Brits are spending money on dining room furniture as they eat at home to save money. That’s the finding from a survey carried out by Internet search engine Ask Jeeves, which found more consumers willing to spend cash on dining room furnishings as they abandoned restaurants.
Unwanted footfall as furniture firm sees travellers take over car park
PROPERTY | LAW
A group of travellers have settled in the car park of the national headquarters of garden and outdoor furniture supplier Gloster Furniture.
Attendance falls ‘just 8%' at High Point
EXHIBITIONS | DATA
US trade fair High Point saw an 8% fall in visitor numbers at its Spring Market, which took place in North Carolina last month.
UK furniture manufacturers take advantage of weak pound as output climbs
FURNITURE | SUPPLY
The weak pound is helping UK furniture manufacturers reclaim some of the ground lost to importers over the past decade, with output climbing during March.
IN BRIEF | 13TH MAY
Mixed fortunes for furniture show organiser
The fall in revenue at United Business Media’s flagship UK furniture event Interiors Birmingham was offset by a strong performance at its Furniture China exhibition. The company said the revenue fall was anticipated, but its Chinese event was among a host of international exhibitions in line to deliver good growth in 2009.
Sales fall for Furniture Brands International
US furniture supply group Furniture Brands International saw first quarter sales drop 25% to $356.9m as it recorded a loss of $4.2m. The company is parent to brands including Broyhill, Thomasville, Lane and Drexel Heritage.
New marketing manager for Fira
Inga Wells has joined the Furniture Industry Research Association (Fira) as marketing manager. She had previously spent eight years at Cranfield University in a number of marketing roles including launching contract research, services and MSc/doctorate programmes globally to industry and potential students.
Cornwall independent opens new look showroom following £1.3m revamp
Furniture retailer Rosevears of Bugle has opened its extended showroom following a ten month refurbishment programme. The £1.3m revamp sees the store treble in size to 6,000sq ft. The retailer stocks brands including Tempur, Sherborne, Celebrity and Alstons.
Year on year furniture sales rise for the first time in 15 months
RETAIL | SALES
April saw furniture retailers enjoying their first month of year on year sales growth since January of last year, according to the BRC-KPMG retail sales monitor. Total like for like retail sales climbed 4.6% year on year - the fastest rate of growth in three years - and 6.3% overall with new floor space included.
IN BRIEF | 12TH MAY
Design group prepares New York flagship
Top end furniture supplier Molteni & C will open a New York flagship store to coincide with the International Contemporary Furniture Fair in the city later this month. The Italian designer furniture firm already has a London store, on Shaftesbury Avenue.
1QF sales slump for Moores Furniture parent
The American owner of British furniture group Moores Furniture has seen first quarter sales fall 26% to $1.8bn. Masco's other interests include top furnishing brands such as Hansgrohe.
Ikea tops retail trust consumer survey
Swedish furniture chain Ikea is the most trusted retail brand in the world, according to a consumer survey carried out by retail consultancy Ebeltoft Group. Department store John Lewis was the most trusted UK retailer.
Bed supplier prepares twin assault as it looks to expand supply and retail arms
FURNITURE | EXPANSION
Beevers Beds plans to raise the profile of its manufacturing business while at the same time turning its retail arm into a one-stop home furnishings hotspot in the north east.
IN BRIEF | 11TH MAY
Sharps and Moben concessions in BHS
The parent company of two of the largest high street bedroom and kitchen brands is trialling concessions in BHS Home stores. If the trial goes well, Homeform will look to open further Sharps and Moben retail concessions, both in BHS Home stores and other partner retailers.
Carpetright snapping up high street sites as rents fall
Lower high street rents are helping flooring chain Carpetright increase its town centre presence. The carpet firm has picked up a number of former Woolworths sites and wants to double its high street store portfolio to about 40 stores.
Department store John Lewis to launch dedicated Home stores
RETAIL | EXPANSION
John Lewis plans to take its furniture offer beyond large towns by opening smaller format ‘supermarket size’ stores selling just homeware and electricals.
Leaner Morris returns to profit following disposal
FURNITURE | PROFITS
The Morris furniture group has returned to profit despite a £13m fall in revenue in the year to 31st January. It chalked up a £3m operating profit on sales of £37m, whereas the year before it lost £5.1m with a turnover of £50m.
Silentnight consolidates sales force; One team for four brands
BEDS | SALES
Bed group Silentnight is to merge the sales teams of its branded products. By the end of the month its Silentnight Beds, Rest Assured, Pocket Spring Bed Company and Layezee brands will be sold by one sales team based at the firm’s Barnoldswick headquarters. Its Rest Assured sales office in Batley will be gradually wound down.
No more phoenix firms; Government wants end to pre-packs
RETAIL | LAW
Pre-pack administrations like the one orchestrated by the management of MFI months before its fatal collapse should be outlawed, according to a Government business and enterprise committee......read more
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IN BRIEF | 6TH MAY
Derbyshire furniture store undergoes £250,000 makeover
Castle Gresley retailer Toons Furnishing is refurbishing its store at a cost of a quarter of a million pounds. The furniture independent is expected to complete the revamp in June.
Singapore furniture show turns to industry for new boss
Richard Koh is the new chief operating officer of the International Furniture Fair Singapore. He was formerly chief operating officer of Buylateral Group, a subsidiary of Nobel Design Holdings and has been on the organising committee of IFFS since 1986.
Supermarket chain Tesco opens another Homeplus store
Tesco will open another dedicated non-food store in Preston next month. The 43,000sq ft Homeplus store opens 1st June and besides home furnishings will also serve as a collection site for customers buying through its Tesco Direct online and catalogue operation.
Sales climb for Next Directory
General retailer Next has reported a 1.1% rise in sales in the 14 weeks to 2 May. Turnover within its Next Directory division, through which the retailer sells much of its homeware offer, climbed by 1.6%.
Profits increase at Co-op Group
The Co-operative Group, which runs a large bed retail operation, has recorded an 11% climb in operating profit to £393m. Sales topped £10bn thanks largely to significant gains in its food and funerals businesses.
Fewer furnishing failures in April; Third successive monthly fall
HOME | INSOLVENCY
54 furniture and homeware retailers have disappeared from UK high streets since the start of February. The failed firms are among 128 home furnishing businesses to have ceased trading in the past three months, but the number of companies going into liquidation appears to be falling.
IN BRIEF | 5TH MAY
£1.3 trillion stimulus package boosts Chinese furniture sales
Chinese domestic furniture sales have skyrocketed since the Government ploughed more than a trillion pounds into the economy. The nation, which has seen furniture exports flounder as Western economies have hit the buffers, saw a 24% furniture sales rise in March.
US furniture giant sees sales/profits slump
Furniture manufacturer and retailer Ethan Allen returned a $48.7m loss in the three months to March 31. Its sales fell to $140.2m from $235.9m in the same period in 2008.
Tile Depot diversifies into bathrooms
Floor and wallcoverings retailer Tile Depot is to launch sanitaryware in some of its stores. The tile and stone retailer will offer bathroom suites in High Wycombe and Whetstone, while promoting the new line via brochures in other stores.
Nine in ten shoppers place more trust in virtual salesmen
92% of consumers are more likely to believe information gleaned from the Internet than that imparted by in-store sales staff. A survey by LinkShare and Penn Schoen & Berland Associates into British shopping habits found the vast majority of consumers prefer to carry out research online and were more likely to believe information given on websites.
Reid improves margin following factory closure
RETAIL | SALES
Reid Furniture returned an operating profit of £752,000 in the year to 28th June, a vast improvement on the £1.7m loss it posted the year before.
IN BRIEF | 1ST MAY
Deadly sofas destroyed by Trading Standards
Non fire retardant sofas and mattresses seized by Trading Standards in Northampton are to be destroyed. The furniture, being sold by a company called XRH, was being offered to consumers via the Internet auction site eBay.
Carpetright to up marketing spend
Flooring retailer Carpetright is to increase its advertising budget by 15% by switching much of its spend to television and away from printed media. It hopes to grow market share despite its own faltering recent sales performance, which has seen sales fall by more than 10% in the past half year. Chief rival Allied is thought to be considering closing some of its stores.
Lean manufacturing workshops launched
The Manufacturing Advisory Service is to run a series of free best practice workshops in the West Midlands. The sessions will be delivered by Oneflow, a consultancy with expertise in furniture manufacturing. Firms wishing to take part can find out more by calling 01248 671 101 or visiting www.manufacturingmatters.co.uk
Major independent readies £2m stock clearance; Makeover for flagship store
INDEPENDENTS | REFURB
Glasswells is to host its largest ever stock clearance sale in advance of the refurbishment of its flagship Bury St Edmonds store. The retailer, recently voted the country’s best by AIS suppliers, will shift £2m worth of product during the sale.
Retail consumer store credit soars despite lending squeeze
RETAIL | CREDIT
Interest free credit and buy now pay later deals are helping furniture retailers defy the credit crunch. Store instalment credit, used to fund big-ticket furniture purchases, rose 8% year on year to £206m in February, according to the Finance and Leasing Association.
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FLOORING
CF rebrands retailers as members
Carpet Foundation to phase out the use of Registered Specialist name and logo.
FLOORING
Carpet trade in 25% target
Flooring retailers and manufacturers to unveil action plan for reducing waste sent to landfill.
LEGALS
Cresta Furniture in administration
The Manchester office of PKF in charge after Preston retailer falls into administration.
SPECIAL REPORT
The UK's greenest furniture firm?
A report on the changes made to the factory at Westbridge Furniture - Marks & Spencer's chief upholstery supplier.
BEDS
Growth at £14m bed supplier
Burnley bed manufacturer Sweet Dreams to take on more staff following positive start to year.
SUPPLY
G-Plan to roll out POS package
Sofa manufacturer to extend new point of sale package after a successful trial at Bristol independent.