Furniture & Furnishings News: September 2009
Natuzzi loses a fifth of sales in second quarter; Makes net loss of 3.9m euros
UPHOLSTERY | SALES
Natuzzi's sales in Europe have fallen by 19.6% in the second quarter of 2009, although cost cuts helped the firm improve its gross margin compared with the same period last year.
Contract furniture firm to ramp up UK licensing strategy
FURNITURE | CONTRACT
The UK division of global contract furniture giant Krueger International says it will slash lead times and achieve 'considerable growth' by continuing to pursue licensing agreements with UK and European furniture manufacturers.
Bristol home store margins remain strong despite sales dipping back to £4m
HOMEWARE | RETAIL
Home and garden retailer Rajani saw turnover and profits slip in 2008 but the firm's pre-tax margin remains a healthy 9.9%.
Midlands independent maintains margins; Sales climb above £16.4m
INDEPENDENT | RETAIL
Fourth generation furniture independent Lee Longlands will maintain and possibly extend its strategy of opening clearance stores as it recorded its third successive positive profits return since its reorganisation in May of 2006.
Shipping rates could double on furniture from Asia; Container firms seek to recoup revenues
FURNITURE | IMPORTS
The cost of bringing Asian made furniture to the UK could rise with a number of shipping firms thought to be contemplating rate hikes on European routes.
Volume soft furnishings supplier takes margin hit; Looks to build retail chain
FURNISHINGS | SUPPLY
North west cushion manufacturer Caldeira says it is encouraged by the first eight months trading at Fabric Warehouse, the 14-store retailer it bought out of administration last year.
Bedroom retailer eyes further overseas growth as sales climb 4% year on year
RETAIL | BEDS
Bedroom furniture chain And So To Bed plans to up its overseas store portfolio and says its increased retail footprint will ensure sales growth in 2009. The retailer, which sells from across 22 UK stores including concessions in Harrods, Arighi Bianchi and House of Fraser, grew sales 4% in 2008 to £12.96m.
IN BRIEF | 22ND SEPTEMBER
Belgian flooring firm to open US factory
The parent company of vinyl floor brands Domo and Leolan is to open a new manufacturing plant in the United States. Belgium based IVC group has acquired land in Dalton, Georgia and will build a 520,000sq ft facility.
Surrey independent expands showroom
Vale Furnishers has increased its 36,000sq ft showroom with a new conservatory. The Ash Vale independent will show more beds and sofas in the new space.
New finance director for SATRA
Furniture testing house SATRA has appointed Simon Botterill as finance director. He replaces Rob Morgan, who has retired.
DFS founder slams landlords for 'shameful devices' that give failed firms an edge over rivals
UPHOLSTERY | LEGISLATION
Lord Kirkham has criticised 'short sighted' landlords for allowing failed retailers to gain an edge over hardworking and solvent rivals by taking advantage of pre-pack administration and company voluntary arrangements.
Furniture distributor launches 'natural memory foam' mattress line
BEDS | MEMORY FOAM
Furniture supplier 4 Living has launched what it describes as the UK's first range of natural memory foam mattresses.
Cash injection for upholstery giant as Ultra secures Natwest deal
UPHOLSTERY | FUNDING
West Midlands sofa supplier Ultra Furniture has agreed a funding package with Natwest Bank that will see cash pumped into the business via the Government's Enterprise Finance Guarantee initiative.
Margins squeezed at Furniture Village; Profits hit five year low
FURNITURE | RETAIL
Mid-market retailer Furniture Village made a pre-tax profit of £2.4m in the year to the end of March after sales fell almost 10% to £162m.
Clement Joscelyne says buy British, as it switches flagship store from Bishop's Stortford to Cambridge
FURNITURE | RETAIL
East of England furniture independent Clement Joscelyne will move its headquarters to a former department store in the heart of Cambridge in November, leaving just a small giftware and home accessories store in the Hertfordshire town where it had been based for 130 years.
Upholstery retailer extends Manchester distribution centre into showroom as it expands beyond London
UPHOLSTERY | EXPANSION
Leather and fabric sofa retailer Darlings of Chelsea has opened its Manchester distribution centre to the public at weekends. The Salford showroom marks the firm’s first step outside of London.
Soft furnishings chain delivers 16% like for like growth; Full year profits climb £3.4m; More stores planned
HOMEWARE | SALES
Sales at linen to beds retailer Dunelm Mill rose 6.3% in the year to 4th July and have rocketed a further 26.5% in the first ten weeks of its new financial year. The homeware chain made a pre-tax profit of £52.5m on sales of £417.1m and has vowed to ramp up its store opening programme to take advantage of low commercial rents.
AIS launches Mail on Sunday campaign as it pushes Myer's/G-Plan offers
FURNITURE | MARKETING
Buying group Associated Independent Stores (AIS) is to lead with promotions from bed firm Myer's and sofa manufacturer G-Plan Upholstery this Autumn through its Internet trading portal whatfurniture.co.uk.
Department store chain on the lookout for new buying boss
RETAIL | MANAGEMENT
Beales buying and merchandising director Barbara King has resigned and will leave the department store retailer at the end of the year.
Ashley Manor vows to return to profit; Sister firm AMX growth continues with 25% sales uplift
UPHOLSTERY | RESULTS
Bosses at upholstery firm Ashley Manor say a late 2008 cost cutting exercise came too late to salvage its financial results for the 12 months to the end of March this year. The manufacturer made a pre-tax loss of £176,951 following a 20% fall in sales to £11.6m.
IN BRIEF | 11TH SEPTEMBER
Scottish furniture distributor sees profits halve
Kilmarnock based Containers Direct made a £50k pre-tax profit from sales of £7.74m in 2008. The prior year saw profits of £104k from an £8.96m turnover. The firm sources furniture from across Asia, Eastern Europe and South America. Its turnover remains more than double that of five years ago, when it was £3.59m.
Ex furniture boss promoted at M&S
Marks and Spencer's former home director John Dixon has been promoted to executive director of food for the chain. The furniture division has proved a fertile source of internal promotion at M&S in recent years - Steve Rowe was promoted from the same position to become director of retail.
Flooring firms launch green scheme to prevent vinyl waste
Vinyl floor suppliers Altro and Polyflor are launching a scheme that will see safety floor and smooth vinyl offcuts recycled into new flooring. Axion Consulting is to manage the project, which kick starts this month.
National Floor Show to switch from Harrogate to Birmingham in 2010
FLOORING | EXHIBITIONS
The organiser of the UK's largest flooring trade show will switch the event from its Harrogate location to the NEC in Birmingham next year and bring the dates forward by three months to June.
IN BRIEF | 10TH SEPTEMBER
Airsprung ahead of last year but still some way off 2007
The parent company to Gainsborough, Windsor Beds and Cavendish Upholstery says its strong recovery forecast is coming to fruition. At yesterday's AGM, Airsprung Furniture Group said 'sales are running well ahead of 2008, but still somewhat short of the levels achieved two years ago.'
Carpetright chief optimistic ahead of Autumn trading
Lord Harris believes his Carpetright chain will perform well in the crucial run up to Christmas. He says Allied Carpets' administration, a growth in their insurance business, new house building contracts, and positive mortgage approval data combine to make him 'cautiously optimistic' for the near future.
Argos sales grow but furniture remains challenging
Despite overall sales growth, Argos says furniture sales remain difficult. Its second quarter trading statement issued this morning outlined 2.5% sales growth to £951m, but it was its toy and home entertainment categories that performed strongest.
Italy and Singapore sign furniture knowledge share and partnership agreement
INTERNATIONAL | TRADE
Furniture firms in Italy and Singapore will share design knowledge and may form partnerships following an agreement signed between the lead trade associations for the two nations yesterday (8th Sep).
Bed manufacturer reverses 2007 losses following 19% turnover climb
BEDS | SALES
Yorkshire divan and mattress manufacturer Highgate Beds has returned to profit after sales climbed by almost a fifth to £9.78m. The firm made a pre-tax profit of £35,900 - compared to a pre-tax loss of £793,648 the year before.
IN BRIEF | 8TH SEPTEMBER
Media firm snaps up Ideal Home Show
Publisher and exhibition organiser Media 10 has acquired the Ideal Home Show from DMG World Media. The Spring event, which takes place at Earls Court in London, attracts a quarter of a million consumers each year. Media 10 is best known for running the Grand Designs series of events.
Admin error prompts B&Q to show its hand
The parent company of DIY chain B&Q will report adjusted pre-tax profits of between £285m and £290m in the six months to 1st August. Kingfisher made the pre-announcement after draft figures were leaked yesterday following an administrative error.
UK retail sales slip back in August says BRC
Hopes of a recovery are premature, says the British Retail Consortium, which has reported a 0.1% fall in like for like UK retail sales in its monthly sales monitor. It blamed the bad weather for the fall. It also cautioned that future updates would be against weak 2008 comparables.
David Langford to head up Joynson Holland relaunch as Willis & Gambier prepares to go big in upholstery
UPHOLSTERY | LAUNCH
The boss of one of Britain's leading leather upholstery agencies is to head up Joynson Holland following its acquisition by Willis & Gambier earlier this year.
IN BRIEF | 7TH SEPTEMBER
Sleepmasters changes emphasis with new marketing campaign
Steinhoff owned Sleepmasters has shifted the focus of its marketing with a story based television campaign designed to empathise with customers. The ads will run across the ITV network. To view a sample of the latest ad, go here, and then see how it compares with previous offerings from the bed retailer by following this link.
Department store takes ex-Woolies in Derby
North west based department store retailer TJ Hughes will open a new store in Derby this month - based in the former Woolworths in the Westfield Shopping Centre. TJ Hughes' home offer includes beds and mattresses from brands including Sealy and Silentnight.
Independent furniture store hit by fire
Police are investigating the cause of a fire thought to have started at the rear of a Lancashire furniture store. Clitheroe Country Furniture on Duck Street was damaged along with nearby residential buildings.
Liverpool retail giant expands furniture offer as it moves into former John Lewis city centre store
RETAIL | LOCATION
Home retailer Rapid Hardware has brought forward its move into the former John Lewis store in the centre of Liverpool by almost 18 months and increased the amount of floorspace devoted to home furnishings.
Kettle Interiors cuts minimum order levels by a third with launch of K1 wholesale service
FURNITURE | SUPPLY
Furniture distributor Kettle Interiors has cut its minimum order value to £1,000 by launching a new service called K1 across 300 product lines. It also says it will increase stock levels to reduce lead times to retailers.
Whitemeadow Furniture resists price pressures despite raw material cost rises; Sales climb 3.8%
UPHOLSTERY | SALES
Nottinghamshire sofa manufacturer Whitemeadow Furniture has described its 2008 trading performance as robust, with the firm returning a £268k pre-tax profit from sales of £21.8m.
Artisan Furniture administration confirmed; 'It grew too fast'
FURNITURE | RETAIL
Recovery specialist Campbell Dallas has been appointed adminstrator to seven store furniture chain Artisan. Eight of the firm's 23 staff have been made redundant, but a spokesman for Campbell Dallas said there may be hope for the firm to return under new ownership.
Confusion as seven-store Scottish furniture chain ceases trading
CABINET | RETAIL
Family owned Scottish retailer Artisan Furniture closed suddenly at the end of last week - prompting an angry reaction from both customers and staff.
IN BRIEF | 1ST SEPTEMBER
Department store reduces losses
London department store Liberty has cuts its first half losses by more than 40% after sales climbed a fifth to £25.3m. The firm made a loss of £2.4m in the six months to the end of June, compared with £4.2m in the same period last year.
UK families better off year on year
British households have an average of £652 a month to spend on discretionary items - a 6% improvement on last summer. Supermarket chain Asda's Income Tracker says low inflation and interest rates have helped family budgets.
Simmons US bed arm loses a fifth of sales in Q2
US bed manufacturer Simmons made a loss of $5.8m in the second quarter of its financial year. Worldwide sales dropped to $218m from $268m in the same period in 2008.
