Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, October 29, 1995 TAG: 9510270113
SECTION: BUSINESS PAGE: F1 EDITION: METRO
SOURCE: MEGAN SCHNABEL STAFF WRITER
DATELINE: LENGTH: Long
Furniture manufacturers know what you're up to. At the International Home Furnishings Market in High Point, N.C. - the world's largest home furnishings trade show, which ended Thursday - function and versatility were the words of the week. That was evident as a number of manufacturers introduced multipurpose, sometimes scaled-down furniture designed to fit small spaces and untraditional settings.
Bassett Furniture Industries Inc. introduced five dining sets - tables, chairs and hutches - that are sized to fit kitchens or small homes. Arlington-based Rowe Furniture Corp., which has a plant in Salem, debuted scaled-down versions of several popular couches.
Pulaski Furniture Corp. won Home Magazine's American Furniture Award for its information center, a kitchen-style cabinet with a chalk board on the front, storage space inside and a work area. And Hooker Furniture Corp. of Martinsville introduced a combination baker's rack/computer desk, with a metal frame and wooden desktop, that's meant to fit into a kitchen.
The increasing popularity of working at home also was evident at the market, where a number of manufacturers introduced computer-friendly furniture and expanded existing home office lines.
Both Hooker and Bassett introduced computer work stations that fit into corners, Bassett's with a hideaway chair that can be stored in one of the station's cabinets. Hooker also designed a scaled-down version of the computer armoire that it introduced at the April market.
"The home office is becoming a market that's growing by leaps and bounds," said Wayne Burris, merchandise manager for Pulaski Furniture Corp., which showed several home office pieces, including an upright steamer trunk that holds a computer setup and can be rolled from place to place.
But the 70,000 buyers and exhibitors who flooded the 150 market buildings were a bit more conservative overall than at past exhibitions, be cause of the year's soft retail sales and an uncertain outlook.
"Business has been a little bit of a roller coaster this year," said Bill Cubberley, senior vice president of sales and marketing for Stanley Furniture Co. Inc. "We expected more than we got this year."
There were few real surprises at the fall market, one of two held each year in High Point. Jerry Epperson, who follows the furniture industry for Mann, Armistead & Epperson in Richmond, said the uncertain retail atmosphere prompted manufacturers by and large to stick with "bread and butter" introductions rather than opt for too many risky debuts.
The High Point markets draw exhibitors and buyers from all over the world, but these nine-day expos are especially important to this part of the nation. Sixty percent of all U.S. furniture is made within a 200-mile radius of High Point, and close to 10 major furniture and accessory manufacturers have operations in or near Roanoke.
Epperson projected furniture shipments will remain flat for the rest of this year, before rebounding with a growth rate around 7 percent in 1996. The growth rate was more than 10 percent in 1993 and 1994.
Several factors have contributed to the soft market, Epperson said. The interest rate increases that came in February 1994 took a bite out of the housing industry, which usually predicts furniture sales. By November furniture sales had begun to sag, and by February of this year, they "stunk," Epperson said.
Consumers also are paying for what Epperson called the "No-No-No" syndrome: furniture deals that offered no money down, no interest and no payments until months down the road. These customers are just now starting to make payments on many of these purchases, he said. Add to that the fact that Americans piled up more consumer debt during the second half of 1994 than in any other six-month period in history, and the sum is a reluctance among consumers to make any more big purchases.
Some stores are beginning to report sales that are 15 percent to 20 percent higher than last year's figures, Epperson said. He predicts an upswing in the housing market in November and December, and said improved furniture sales shouldn't be far behind.
The numbers up to this point aren't encouraging. According to a Bloomberg Business News report, housing construction slowed for the second month in a row in September, with the slowdown centered in the Midwestern and Southern states. September saw a 0.1 percent decline in housing starts; economists had predicted a 0.3 percent increase.
"We're still on course for slow growth," said Cynthia Latta, an economist at DRI/McGraw-Hill in Lexington, Mass.
Despite the gloomy forecasts, retailers - especially those from major chains - were placing orders at the market. Roanoke-based Singer Furniture introduced its most expensive bedroom set ever - an elaborately carved set available in both light and dark finishes that will retail for around $5,000 - and company president Dennis Ammons said dealers were snapping it up. Rowe has been buried under a backlog of orders, said merchandising coordinator Wayne Victor. And Lane spokesman Brian Linke said his company has seen a huge response to its new Moroccan-inspired Marrakesh collection, which combines European colonial designs with traditional Moorish carvings and tile work.
"There's no less money this year," said John Wampler, president of Pulaski. People are still buying, he said, but they're being more thoughtful about the money they spend.
"The retail market might be soft, but [retailers] have got to have the product anyway," said Hooker's Bill Utley.
by CNB