New Store Registration Increases 40 Percent At The Recently Expanded Portland Gift & Accessories Show®—May 31-June 3, 2003

Furniture World Magazine

New store registration increased over 40 percent at the May 31-June 3, 2003 Portland Gift & Accessories Show® over the summer 2002 market; and buyers were thrilled with the new facility of the Oregon Convention Center. Exhibitors reported that buying was brisk on the show floor. Northwest retailers attending the 144th semi-annual market discovered more new trends and products for the busy fourth quarter. Due to the timing of the show, many retailers from resort areas throughout Oregon and Washington were able to supplement their inventory for the onslaught of summer tourism. This summer event also marked the move to the new expansion of the Oregon Convention Center—providing an increase of booth sales to just over 600. “Portland show dates have been moved earlier for summer, and many exhibiting companies offer ‘guaranteed’ delivery before the national gift events. This prompted many of the better stores in the Northwest to attend the May 31-June 3 market to start their buying for the fourth quarter,” said David Gilfoyle, Show Manager of the Portland Gift & Accessories Show, Western Exhibitors, LLC. “Exhibitors were reporting an increase in their sales over last years figures—many speculated a growth in consumer confidence,” continued Gilfoyle. “Western Exhibitors has developed several programs that are geared toward personal contact with retailers in the Northwest region. Our Buyer Service representative, Jhana Jordan, has worked diligently to attract local and surrounding area stores to the Portland market. Her endeavors can be tracked by the increase of new store registration. In addition, we continue our extensive telemarketing effort—beginning about three months prior to the show,” stated Mike Dean, President of Western Exhibitors, LLC. “The attraction of larger and ‘out-of-the-area’ stores is also due to the tireless sales efforts of David Gilfoyle and his ability to draw from a more diverse and exciting exhibitor base,” added Dean. Almost three quarters of Americans (73%) support tougher bankruptcy laws and if enacted, 79% would be less likely to file for bankruptcy, according to the Cambridge Consumer Credit Index. Almost three quarters of Americans (73%) are in favor of bankruptcy legislation which would make it much more difficult for debtors to discharge their debts and get a fresh start, according to the Cambridge Consumer Credit Index. Conversely, 27% are against pending bankruptcy laws. Of those polled, 79% say that if the legislation was enacted, it would deter them from filing for bankruptcy while 21% would be more likely to file for bankruptcy. This year’s results shows strengthening support for toughened bankruptcy laws. In June 2002, 69% were in favor and 31% were against the legislation. This law has been passed by the U.S. House of Representatives and awaits action in the Senate. “Despite the weak economy and rising unemployment, the Index survey demonstrates a vast majority of Americans favor toughening bankruptcy laws, perhaps because they feel that too many people are filing for bankruptcy who have the ability to repay their debts and have been getting off the hook too easily. In the last 12 months, a record 1.6 million Americans have filed for bankruptcy, partly out of fear that it will become far more difficult to do so if this bill becomes law. Clearly, many Americans resent this rush to the bankruptcy courts, “ says Jordan Goodman, spokesperson for the Index. These findings are the result of monthly nationwide telephone poll of 1000+ adults conducted by ICR/International Communications Research in the past week, sponsored by the Debt Relief Clearinghouse. The overall Cambridge Consumer Credit Index increased by five points from May to 61. The Index rose in two of the three component questions. The “Reality Gap,” which is the difference between the amount of debt consumers say they will pay off in the next month compared to the amount of debt they actually pay off a month later, widened to eleven points, reversing its three-month narrowing trend. A month ago, 79% of Americans planned to pay off debt, while a month later 68% actually did so. The Cambridge Consumer Credit Index is a forward looking economic indicator gauging consumer spending and debt. It is released on the fifth business day of every month to coincide with the Federal Reserve Board's G19 release of consumer credit outstanding data. In conjunction with the Index, the Cambridge Credit Counseling Corp. is releasing its monthly survey of people who have called in for credit counseling services over the past month. Cambridge representatives ask callers for the primary reason that they found it necessary to get help with their debts now. Of the 1085 people who answered, this was the order of their responses: 1. I am frustrated with high bank rates and fees (28.1%) 2. My income has been reduced from a lower salary, less overtime or layoff (23.4%) 3. I want to improve my ability to achieve future financial goals like buying a house or saving for retirement (14.6%) 4. I got into too much debt by overspending (12.9%) 5. My lack of financial education caused me to take on too much debt (8.1%) 6. Other reasons (5.1%) 7. Large medical expenses forced me to take on huge debts (4.8%) 8. My recent divorce or widowhood forced me to take on large debts (2.3%) For more information on the survey see www.cambridgeconsumerindex.com/camsurveyasp The Cambridge Consumer Credit Index number is a composite of these three questions: 1. In the past month, have you taken on more debt or paid off debt? The Index reads 64 on this question, a jump of fourteen points from May. In June 32% of Americans say they have taken on more debt, with 22% taking on a little and 10% taking on a lot more debt. Conversely, 68% of Americans have paid off debt, with 48% paying off a little and 20% paying off a lot. The reading is considerably higher than May, when 25% of consumers had taken on more debt while 75% had paid off debt. 2. In the next month, do you anticipate taking on more debt or paying off debt? The Index reads 40 on this question, a drop of 2 points from May. In June, 20% plan to take on more debt, with 4% planning to take on a lot and 16% planning to take on a little debt. Conversely, 80% plan to pay off debt, with 65% paying off a little and 16% paying off a lot. In May, 21% planned to take on debt and 79% planned to pay off debt. 3. In the next six months, do you expect to take on debt because you are thinking of making a major purchase such as a car, education, appliance, medical procedure, furniture or carpeting? The Index reads 80 on this question, a rise of four points from May. In June, 40% of Americans plan to take on more debt to make such purchases, with 11% taking on a lot of debt and 29% taking on a little more debt. In contrast, 60% of Americans plan to pay off debt in the next six months, with 41% expecting to pay off a little and 19% expecting to pay off a lot. In May, 38% of Americans planned to take on more debt, while 62% planned to pay off debt. “The June Index reading is the biggest change in the overall index since August 2002, indicating a growing consumer confidence. The combination of the end of the Iraqi war, potential savings from the new tax cut legislation and a more robust stock market seems to have given consumers more willingness to go into debt to buy the things they want and need. The widening of the Reality gap is also an indication that consumers are taking on more debt and once again paying their debts off less than they intended too. ” says Jordan Goodman, spokesperson for the Index. The Index survey is conducted by ICR (International Communications Research) of Media, Pennsylvania over five days in the week before the Index is released. Over 1000 households are polled based on random-digit dialing, with all demographic and regional groups in America fairly represented. The Index has a margin of error of plus or minus three percentage points. For more information about the Cambridge Consumer Credit Index, contact media relations representative Paramjit Mahli at pmahli@cambridgeconsumerindex.com or 631-786-6450, or economist Allen Grommet, who provides an economic analysis of Index results, at agrommet@cambridgeconsumerindex.com or 800-804-0575, or the Index website at www.cambridgeconsumerindex.com. Consumers wishing to find out more about Debt Relief Clearinghouse referral services should call 1-888-4DEBTHELP or visit www.debtreliefonline.com.