Retailer Confidence Boosts Furniture Industry

Furniture World Magazine

That seems to be the trend for retail buyers attending the International Home Furnishings Market in High Point for the past several years. The Spring 2000 edition from April 6-13 was a continuation of the furniture industry's business boom, reports Appalachian Hardwood Manufacturers, Inc. (AHMI). The High Point, NC-based trade association represents more than 200 lumber producers, distributors and consumers in the 12-state Appalachian Mountain region promoting their products around the world. Each furniture market, AHMI surveys its furniture membership on their use of hardwoods and results at market. With a multitude of manufacturers rolling out new designs and expansion of existing lines for Spring 2000, the retailers responded with what many were calling an "open to buy" attitude. From major bedroom collections to a small case good addition, furniture manufacturers report said the retail buyer was positive about the product available and came to market to purchase. While attendance figures are difficult to confirm, market veterans reported increases in the volume of traffic on opening day April 6 through Monday, April 10. It is estimated that more than 74,500 manufacturers, sales representatives, home furnishings buyers, interior designers, exhibitor support personnel, suppliers and news media attend furniture market. "We saw a variety of wood on display this market and are pleased to report a continued growth in the use of maple and ash," said AHMI Executive Vice President Mark A. Barford, CAE. "Cherry has been a market leader for the past several years and it continues to be a consumer favorite but we are seeing more variety on the showroom floor." Several manufacturers were using cherry finishes on other Appalachian hardwood species in response to the economics of cherry, Barford said. The price of Appalachian cherry has risen as supplies have tightened. "Depending on the manufacturer, cherry was still in the showroom," he said. "But we saw soft maple and poplar also being used with a cherry finish to meet a price point that the furniture maker was seeking." Stanley Furniture Co. selects its species based on the design of the product and the price point, reports Bill Sibbick, senior vice president of sales. Orders for Stanley collections in ash, maple, oak and cherry were strong and a new group, Contours, produced from alder, was well-received. "We had not used that (alder) before and found this species was right for the look we wanted and the way it took the finish," Sibbick said. "This design has a very contemporary look and turned out fine, but all of our other collections did excellent as well. We design everything for the same price point and once again we had a terrific market." The Stanleytown, VA-based manufacturers continued to build programs with retailers to expand offerings in traditional lines but also increase business for youth and home office products. "We believe our business is going to continue to be very strong in these areas and we use a tremendous amount of wood here," Sibbick said. "While the economy may be in a bit of turmoil right now, there is still a lot of demand out there," he said. "People have bought new homes, they are remodeling and they need new furniture." Sibbick forecast continued growth through the remainder of 2000. Bernhardt Furniture introduced two collections at market, Caneel Bay made from oak solids and veneers and Grand Savannah made of hardwood solids with prima vera veneers. The groups from the Lenoir, NC-based company offer dining room, living room and bedroom furniture. Bernhardt Vice President of Sales Mike Keveryn said officials were very pleased with the response to its 130 new pieces at market. "Our attendance was good, probably about average for a spring market," he said. "But the people were definitely ready to buy." Bernhardt has made no drift from its use of cherry. The company offers four cherry collections and there were no changes or substitutes at the Spring market. Keveryn said sales of each group continues to be strong. "We really anticipate the next quarter to be especially strong with a backlog of orders and a healthy account base," he said. "We're hoping that the next six months will be excellent for Bernhardt." Kincaid Furniture had more than 50 introductions in ash, oak and other hardwoods on the floor for Spring market. Attendance was steady and sales were written like the past several markets, said Bill Johnson, senior vice president of operations. "We feel great about what we did at market this time," he said. "Our products were again well received and we have found our retailers like the solid hardwood we produce." The species mix from Kincaid, based in Hudson, NC, continued to emphasize cherry, ash and oak. Johnson said lumber suppliers have been promoting cherry substitutes. Kincaid Furniture does offer a poplar collection with a cherry finish, but the group has been out for several years. "While the price of cherry has made it a little more difficult to compete with the substitutes, our buyers know what they are getting when they purchase Kincaid," he said. "The future looks very solid, just like our furniture, and we are very optimistic." Thomasville Furniture Industries expanded its Ernest Hemingway Collection of case goods from hardwood solids and upholstery. Officials said the group has become the industry's most successful higher-end seller. "We have experienced a wonderful first year with The Ernest Hemingway Collection," said Jim Adams, senior vice president/chief marketing officer. "We will have sold in excess of $100 million this year, and our plans continue to evolve into new product being added, as evidenced by the additions at this April 2000 market. "We are confident that the momentum and popularity of this exciting, dynamic collection will continue for many years to come," he said. Thomasville, based in Thomasville, NC, also used the Spring market to introduce a new line of cabinetry for kitchen, bath and other rooms in the home. The line will be marketed exclusively through Home Depot's more than 950 locations. "The prevailing demand from consumers is for furnishings that add personalization to the home," said Mitch Scott, Thomasville vice president of customer service. A recent Home Depot survey identified Thomasville as the number one brand in home furnishings. Furniture style cabinetry is becoming a leading storage choice for other rooms of the home, the survey identified. The Thomasville Cabinetry is offered in maple, oak, hickory and colored laminates. Other AHMI member companies offering introductions at market included: Bassett Furniture Co., Bassett, VA, with 90 pieces in three collections made from ash, cherry and alder. Century Furniture Co., Hickory, NC, with 23 introductions in a variety of hardwood species. Florida Furniture Industries, Palatka, FL, offered two bedroom groups and more than 25 pieces in oak. Keller Manufacturing Inc., Corydon, IN, plans 30 new pieces in cherry and oak. Richardson Brothers Co., Sheboygan Falls, WI, announced a 25-piece group in oak and a 16 piece collection in hard maple. "The news from the furniture industry continues to be extremely positive," Barford said. "That translates into good news for lumber suppliers throughout the Appalachian region who provide these companies with the world's finest resource, Appalachian hardwoods." To learn more about Appalachian hardwood lumber and AHMI, visit the AHMI website at www.appalachianwood.org.