Durable Goods Sale Decrease While Businesses Spend More

According to the U.S. Commerce Department, sales for durable goods, which include electronics, furnishings such as bedroom furniture, and other long-lasting goods, decreased by 1% in June. RealtyTrac says foreclosures have also increased during the first six months of the year. This was largely observed in metropolitan areas with population of over 200,000.

Meanwhile, businesses are shown to have increased spending in equipment. This may mean that companies are confident of the continuation of the economic recovery and are equipping themselves to be able to meet market demands.

Jim Sullivan, a New York economist, says that the improvement trend is still intact, though it had been slow going for the past two months.

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Home Line Inds. and Junction Home Furnishings Store Opens Home Makeover Contest to Military Families

Junction Home Furnishings Store, with the support and help of Home Line Inds., or Home Line Furniture, has opened a home makeover contest for military families from the five branches of the U.S. Military, namely the Navy, Marines, Air Force, Army, and Coast Guard. If a family wins, they will be given the furnishings they need to make their house over. The dining room, living room, and two bedrooms are covered by the makeover. The winning family will also get a flat screen television. Home Line Inds. will pay for the furniture used in the makeover while the Junction will take care of delivery anywhere on the continental U.S.

To join the contest, the participant will submit a video explaining why they should win the home makeover prize. The video will be submitted on Junction’s website, www.junctioninc.com. The winner will be determined through online voting.

The Junction has been helping military troops and families by sponsoring various activities such as barbecues. Home Line Inds.‘ marketing vice president, Bill Napier, says that they’re sponsoring the contest because they’re patriots.

Home Line’s furniture products are available at Wholesale Furniture Brokers.

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Housing Market Still Challenged According to Statistics

According to a report by the Mortgage Bankers Assn., home loan applications have decreased to the lowest number in 13 years. The housing market is one of the key factors that affect furniture sales so decrease in the purchase of homes keenly affects furniture sales. Although mortgage rates are low, refinancing demand is still down.

Realty Trac, which publishes foreclosures, said that over one million homes will be lost to foreclosure during the year. The company also reported that over half a million homes were foreclosed during the first six months of 2010.

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Industry Veteran Roland Maddrey Becomes Pulaski Furniture’s Sales VP

Roland Maddrey, who has been in the furniture industry for about 25 years, has recently become Pulaski Furniture's vice president for sales for the eastern territory. Before joining Pulaski Furniture, he worked for Universal Furniture, Hickory Mark, La-Z-Boy, and Broyhill.

Pulaski Furniture president Page Wilson says that they are delighted to have Maddrey on their team. Maddrey will report to Wilson along with his western territory counterpart Dallas George.

Maddrey says that he is thrilled to join Home Meridian International (HMI), the parent company of Pulaski as well as Samuel Lawrence Furniture and Prime Resources International. He adds that HMI is distinguishable from other suppliers because of its financial stability and ability to adapt to market conditions, among other things.

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Furniture Retailers in Gulf Coast Ask BP to Pay Their Lost Profit

Because of the oil spill caused by the BP oil rig explosion, furniture retailers in the Gulf Coast said their business has slowed down since June. In an effort to recover their lost profit, they have filed claims with BP. However, none of these furniture retailers have received any checks yet.

The U.S. government and BP have made an agreement for BP to pay claims from those who have been affected by the oil rig disaster. A $20-billion fund has been created to pay up the claims for damages that will be incurred for the next three and a half years.

BP’s web site provides information as to how to file claims. Since May 3, BP has paid about $162.7 million and has received more than 100,000 claims.

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Leggett & Platt to Sponsor WithIt Conference

Leggett & Platt has been chosen to be the top sponsor of the Women in the Home Industries Today’s (WithIt) education conference which will be held on August 17-19 at the Renaissance Charlotte Suites Hotel in Charlotte, North Carolina. The workshop will focus mainly on leadership.

According to Mark Quinn, marketing for residential furnishings vice president of the furniture and bedding components supplier, Leggett & Platt is proud to be a sponsor. Quinn added that it is important that the company reinforce its ties with organizations such as WithIt.

The conference’s other sponsors include Furniture/Today, Wray Ward, World Market Center Las Vegas, and Home Furnishings Business.

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Leggett & Platt recliner mechanisms are used in sports team recliners available at Wholesale Furniture Brokers.

Decrease in Consumer Confidence Observed in June

After three months of increase of the Consumer Confidence Index, it fell from 62.7 in May to 52.9 in June. The Expectations Index decreased from 84.6 to 71.2 while the Present Situation Index fell from 29.8 to 25.5.

According to The Conference Board Consumer Research Center director, Lynn Franco, uncertainty about the economy’s state as well as the labor market is the reason for the decrease in confidence. She also adds that if job growth doesn’t increase, confidence may not increase as well.

Consumers who expect increase in job prospects decreased from 20.2% to 16% while those who expect income increase fell from 11.4% to 10.6%. Those who expect improvement of business conditions in the coming 6 months declined from 22.8% to 17.2% and those who expect it to be in worse condition rose from 11.9% to 14.9%.

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U.S. Commerce Dept. Says Furnishing Store Sales Decrease in June

According to the U.S. Commerce Department, furniture and other home furnishing sales for June fell by 1.1% compared to sales in May. June furniture sales were $7.54 million while May furniture sales amount to $7.63 billion.

However, June’s sales increased compared to June 2009’s sales which amounted to $7.42 billion. The U.S. Commerce Department also reported that overall retail sales decreased by 0.5% in June of this year compared to May.

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PIERS Observe Increase in Furniture Imports

The Port Import Export Reporting Service (PIERS) Global Intelligence Solutions reported an increase of 20-percent in U.S. furniture imports as well as other goods from China for the first half of 2010. PIERS found out that the increase was mainly caused by the U.S. economic stimulus package for those buying houses for the first time. An 18-percent increase in furniture imports in May this year compared to May 2009 was also reported by PIERS.

PIERS economist Mario Moreno says that new homeowners are furnishing their houses which account for the increase in furniture imports. The housing stimulus gives the first-time home buyer an $8,000 tax credit. The purchase contract should be signed by April 30 and close by September 30.

The analysis by PIERS, however, expects a decrease in furniture imports due to unemployment and credit conditions, among other things.

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Simmons Co. has New CEO

Simmons Co., a manufacturer of sleep products, has named Gary Fazio, a mattress industry veteran, as its new CEO. Fazio worked at Mattress Firm since 2001 up to his appointment at Simmons Co. He replaced Steve Fendrich, who has been Simmons’ CEO since 2008.

Fazio is taking over management of the company after it came out of its Chapter 11 bankruptcy protection. The owners of Serta, last year’s number 2 mattress brand, acquired Simmons Co. this year. Simmon Co.’s US sales from 2009 amount to $858 million.

While Fazio was with Mattress Firm, the company turned from being a regional company to the second largest bedding specialty chain. The company now has stores in 22 states.

Fazio says he is thrilled to be joining Simmons while the company is enhancing its brand. He adds that the company’s opportunities are broad and that he looks forward to joining the leadership team. Simmons Co.’s new CEO will be based in Atlanta.

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Survey Results - Why People Don't Order Furniture Online?

Wholesale Furniture Brokers recently had a Father’s Day 2010 Contest where contestants from the US and Canada needed to fill out a survey and subscribe to their newsletter to be eligible to win a $1000 gift certificate. The survey had results from over 550 people. It was designed to help us learn more about why people don’t order furniture online. The results will be useful for all ecommerce websites that want to know how they can improve their website to target a larger audience.

The results of the survey have been tallied. We are providing the questions and top three answers for each of the questions:

1. What is your gender?
Female: (67.9%)
Male: (32.1%)

2. What is your age?
50+: (44.5%)
40 – 49: (29.1%)
30 – 39: (15.9%)

3. Have you ever bought anything online?
Yes: (92.2%)
No: (7.8%)

4. Do you plan to buy furniture online?
No: (49.9%)
Yes: (50.1%)

Comments:
I might buy furniture online: (45.07%)
I’m not planning on ordering online: (21.13%)
I haven’t thought about it: (18.3%)

5. When shopping for furniture, where are the top three places you would look to gather information and buy? Please select three.
Local Furniture Store: (20.84%)
Online Furniture Store: (14.88%)
Friends or Family: (11.29%)

6. Have you ever order furniture online before? Please choose yes or no and explain why you did or did not order online in the comment box below.
No: (70.3%)
Yes: (29.7%)

Why People Order Furniture Online:
Best price: (32.58%)
I liked the furniture online since it wasn’t available locally: (25.84%)
Free shipping: (11.24%)

Why People Don’t Order Furniture Online:
I want to be able to see the furniture before I buy: (42.86%)
High shipping costs: (15.79%)
I’m not presently in the market to buy furniture: (12.78%)

7. Where do you prefer to buy your furniture? Please let us know and explain why in the comment box below.
Local Furniture Store: (75.08%)
Online Store: (5.89%)
No Preference: (17.01%)

Top 3 Stores:
Ikea
Sears
Brick

8. What are the top three services you would want when buying furniture? Please select three and explain in the comment box below.
Ability To Choose Custom Fabric and Color Options: (28.23%)
Ability To Schedule My Delivery Date When I Place My Order: (27.93%)
Financing Options Ie. No Payments for 90 Days: (15.81%)

9. How important is knowing the reputation of the store you buy from? Ie. You've heard of it before or bought from it before, so you are more likely to buy from them. Please let us know in the comment box below.
Very Important: (55.08%)
Important: (29.69%)
Not Important: (8.39%)

10. If you were to buy furniture online, what store would you buy from and why? Please let us know in the comment box below. You can include a link to the online furniture store.

Top 3 Stores:
Ikea
Sears
Wholesale Furniture Brokers

11. Are you willing to buy without seeing an item if you are able to save a considerable amount on your purchase?
Yes: (51.7%)
No: (48.3%)

12. If the product you want is not currently in stock, what would affect your decision to continue your purchase? Please let us know in the comment box below.

Top 3 Answers:
If it will be in stock soon, it doesn’t matter.
If there is nothing else similar, I will wait.
If I can get a discount.

13. What do you consider an acceptable amount of time to wait for your order to arrive at your home from the date of purchase? Please let us know how many days in the comment box below.
8 – 14 Days: (38.52%)
1 – 7 Days: (35.44%)
15 – 21 Days: (7.23%)

14. What would affect your decision to buy if the product you want is only available online?
Free Shipping: (19.87%)
Price: (50.99%)
Reputation of Website: (6.29%)

15. Is website security a concern of yours and do you look for a certified secure website icon while shopping? Ie. Your credit card information will be safe on a secure website. Please let us know in the comment box below.
Yes: (69.51%)
Yes and I check to make sure it’s secure: (12.89%)
No: (17.6%)

Let us know what you think about the results in the comment box below.

Lea Industries Comes Up with Nickelodeon-Style Kids Bedroom Furniture

Lea Industries, one of the manufacturers who contribute to Wholesale Furniture Brokers collection of kids’ bedroom furniture, has just come up with bedroom furniture that features designs from Nickelodeon shows. Cartoon shows such as SpongeBob SquarePants, Dora the Explorer, and Go, Diego, Go are some of the Nickelodeon shows featured in the new line of kids bedroom furniture. The graphics on the bedroom pieces can be removed or changed to suit your child’s interests.

The new Nickelodeon-style bedroom furniture collection offers three lines: Nick (for ages 3 to 7), TweenNick (for ages 8 to 11), and TeenNick (for teenagers and older).

Check out other furniture pieces by Lea Industries to find more exciting and fashionable furniture.

Furniture Prices to Increase This Summer

Because of increased costs in raw materials, labor, and container shipping, some companies are set to increase the prices of their goods over the summer. A number of case goods and upholstery companies will raise their product prices effective July 1st through August.

The companies raising the prices of their goods include Magnussen Home, Ligo Products, Flexsteel, American Drew, Lea Inds., Hammary, Legacy Classic, and Universal. Most of these companies will implement a single-digit percentage price increase. Other companies may have to raise prices after the summer.

Raw materials which have increased in price include cardboard, steel, and wood such as pine, Appalachian red oak, ash, cherry and maple. Other companies cite freight, packaging costs, and increased cost of labor in Asia as their reasons for increasing the cost of their furniture products.

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Federal Maritime Commission’s Report on Investigation Still Not Released

The Federal Maritime Commission’s report about its investigation on the shipping practices of container shipping companies is already finished. However, the information from Commissioner Rebecca Dye’s report hasn’t been released.

The investigation was launched in March when U.S. importers, including furniture importers, continue to have difficulty finding space on container ships to load their products from China to the U.S. This problem continues to be a problem now even though the worst of it was expected during the Chinese New Year in February.

The final report about the investigation will be due on July 15.

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Mattress Sales for First Five Months of 2010 Increased by 10 Percent

According to the International Sleep Products Association (ISPA), mattress sales have increased by 10% in May compared to numbers from 2009. Unit sales have also increased by 10.4% as evaluated against last year’s sales.

Twenty U.S. mattress manufacturers contributed data for the ISPA’s monthly Bedding Barometer report, from which the association derive data to compare with last year’s statistics. These manufacturers accounted for about 64% of mattress units shipped in 2009.

ISPA reports that the country continues to show improvements as far as shipment and revenues for the first five months of the year are concerned. Its March forecast predicts an increase of 7.5% in revenue and 4.5% increase in sale units compared to 2009’s numbers.

ISPA President Ryan Trainer says that although this year’s industry is performing better than in 2009, there is still no assurance that it will continue because of various economic conditions such as high unemployment rate and anxiety about the economy’s improvement.

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