Date: December 5, 2005
Vol. IX, No. 23

Printer Version

TABLE OF CONTENTS

COMMENTARY: What I'll Attend at CHA  

The complete schedule of CHA show events is now online at www.chashow.org. As I went through it, I started to pick out seminars and events for this issue, but there were so many worth mentioning that this issue would be a book, not a newsletter. Besides, you can see the entire schedule at the CHA site. Instead, I'm including a highly personal list of events that I won't miss, and which ones I'd attend if I were a retailer or a vendor. (In case you've been in a coma these last few months, the show is Jan. 30-Feb. 2 in Las Vegas.)

Many of the events require tickets and many will sell out fast, as will some show hotels, so don't delay making plans.

New Trade Show Exhibitors. NEW! A listing of the new exhibitors at the January TNNA show – names, descriptions, and links. Still online is the updated list of the new exhibitors at the January CHA show.

Designing Perspectives. There's a wide variety of CHA show activities for designers – and vendors who want to work with them. Here's the schedule.

Memory, Paper & Stamps. The schedule for digital imaging seminars at the CHA show.

Note. If you surf to a column and it's an "old" column, click the "Refresh" or "Reload" button of your browser.

You're in the midst of the holiday rush, but take a moment to vote with fellow retailers and vendors on how your sales are going this season. Better or worse than last year? Vendors, what are you hearing from your retailer customers? Are their sales up or down? To vote, click on Industry Polls in the right-hand column or click HERE.

In the last issue CLN wondered if the lower gas prices had helped sales. Apparently not much. Collectively, 40% of the retailers said business had picked up "substantially" or "somewhat." But 30% said business was "about the same" and 30% said sales had "dropped a bit."

Vendors painted a slightly worse picture; 15.4% said stores' sales had picked up "substantially" or "somewhat." On the other hand, 38.5% said business was about the same, and 46.2% said sales had dropped "a bit."

Sales for retailers who discounted heavily were strong, but for the rest it was a lackluster month. Michael Niemira, chief economist at the Int. Council of Shopping Centers, told the Associated Press the month's sales were "uneven," that they "had an uncomfortable feel. You had some very good performances by only a handful of stores, but you also had a fair amount of weakness."

Jo-Ann's net sales decreased 0.4% to $190.2 million and same-store sales fell 6.1%. A year ago, same-store sales rose 2.7%. Year-to-date, sales have increased 3.8% to $1.469 billion, but same-store sales have slipped 0.6%.

Hancock's total sales fell 7.5% to $38.1 million; same-store sales dropped 9.2%. Year to date, total sales have declined 6.6% to $323.1 million and same-store sales have declined 7.3%. Hancock also reported it has completed sale/leaseback transactions for two store properties since the end of the third quarter which, together with cash from operations, has resulted in debt being paid down from $62 million to $57 million since the end of October.

Wal-Mart's same-store sales rose 4.3%, the first time in 18 months its same-store sales increase was higher than Target's which rose 2.6%. (Wal-Marts were up 3.8% and Sam's Clubs rose 7.0%.) Wal-Mart execs, however, predicted Dec. increases would be smaller – 2%-4%.

Others. Bombay, +12.4% ... CVS, +7.0% ... Costco, +6.0% ... J.C. Penney, +3.6% ... Duckwall-ALCO, +3.5% ... Family Dollar, +3.4% ... Nordstrom, +2.8% ... Pier 1, +1.9% ... Dillard, +1.0% ... Big Lots, +0.7% ... Saks, +0.1% ... Kohl's, -0.1% ... Dollar General, -0.2% ... Federated, -3.4% ... ShopKo, -3.9% ... Pamida Division (ShopKo), -8.9%.

Black Friday started with a bang as consumers scooped up the early-morning, door-buster specials at huge discounts, but then .... it depends on who is reporting. Michael Niemira of the Int. Council of Shopping Centers, told the Associated Press he estimated that the overall weekend's sales were down from a year ago. "There was a lot of hype, a lot of promotions, and lot of people, but the results were on the lukewarm side," he said.

The National Retail Federation was more positive. The NRF claims its research indicated 60+ million consumers shopped on Black Friday – that's up 7.9% – and the traffic count on Saturday was up 13.3% to 52.8 million. Collectively consumers spent $27.8 billion, up 21.9% from a year ago. The NRF is standing by its previous prediction that overall holiday sales will increase 6% to $439.5 billion.

Meanwhile, Cyber Monday continues to grow. A Nielsen/NetRatings survey reported a unique audience of 27.7 million consumers shopped online on Monday. The Wall Street Journal reported that Joann.com, the online division of Jo-Ann's and operated by Idea Forest, reported that by midday, sales were 80% higher than same day a year ago. Idea Forest's CEO, Linsly Donnelly, told the Journal increased traffic, larger shopping-cart basket size, and the number of web surfers actually making purchases were the key. Hot items included scrapbook kits and knitting supplies.

However, no organization is projecting how profitable the season will be for retailers. Retailers may very well sell more, but consumers may spend less because stores continue to feed the customer's lust for discounts. Last year CLN reported on a study conducted by Big Lots to determine how large a discount has to be before consumers consider it a true sale. The result was more than a third off the suggested retail price – and judging by the way some consumers were trampling each other in the pre-dawn hours of Black Friday, their demands are growing.

Co-Founder/CEO Jack Parker announced he will retire from A.C. Moore by the end of next year.

The board of directors hired a search firm, Korn/Ferry Int., to look for a successor. The search will include internal as well as external candidates. "My timetable is flexible," Parker said. "The board and I want to assure a smooth transition, and I will remain fully engaged with the management team until my successor is on board and up to speed." He will remain on the company's board of directors.

Parker, 64, will complete a career that spans 46 years in retail. He was A.C. Moore's co-founder and has been a director and the CEO since its inception in 1984. He was also president until June 2001. From 1959 to 1984 he worked for F.W. Woolworth, most recently as President/CEO of the U.S. division of 1,000+ stores.

To read the complete press release, visit www.acmoore.com/newsrelease.asp?ID=62.

1. Kizer and Bender will conduct "Store Planning 101: How Store Layout Affects Your Store's Performance," and "If Your Shelves Could Talk: What You Need to Know About Category Management." I've attended their seminars and they are excellent. They will also conduct a "Guided Retail Store Tour" on Thursday when the show closes. It should be fascinating to have them point out ideas you can emulate in your stores.

2. Dennis Conforto of the SMART Group is conducting a number of seminars, including "Using SMART Numbers." In it he will explain why turnover is more important than margin – probably the single most important concept for independent retailers to understand. I've heard and read countless explanations of the subject in 26+ years in the industry, and Dennis explains it better than anyone I've heard.

3. Jeanne Wines-Reed of Scrapbook Retailer will sponsor "Five Keys to a Successful Scrapbook Retailing" on Sun., Jan. 29, from 9:30 am to 2:00 p.m. A similar seminar was very successful at the CHA summer show.

4. Yes, there is going to be a 3,500 sq. ft. scrapbook store on the show floor that promoters say will be state of the art, and yes, the entire store – merchandise, fixtures, POS system, the works – will be given to an attendee.

5. Are you a first-timer at CHA? Then don't miss "Inside Tips for a Successful Show: New Buyer Program and Reception" the day before the show opens.

6. To get a head start on seeing products, attend "What’s New at the CHA Show 2006". More than 100 products will be showcased the night before the show opens.

7. Want a one-on-one consultation with a retail expert? That's available, too – by appointment. Email Debra Kirk at dkirk@craftandhobby.org or call 201-794-1133, ext. 209.

8. There are two special Pavilions worth noting: A) The Digital Imaging Pavilion can help you understand and take advantage of the digital photo revolution. To see the schedule for the digital imaging seminars, click on Memory, Paper & Stamps. The Pavilion will also include a number of exhibitors new to CHA. B) The United Kingdom Pavilion features 16 U.K. companies in one location for a one-stop look at U.K. products. (Click HERE for company descriptions and links to their websites.)

9. And of course, there are 91 technique workshops led by many of the industry's leading designers and teachers.

1. Most businesses in this industry do a lousy job of public relations. Many could receive far more free press coverage if they worked at it. That's why "Growing Your Business through Effective Media Relations" should be a must-attend. CHA spokesperson/TV personality Terri Ouellette will moderate a panel including Allan Fliss, a real pr pro; a consumer magazine editor to be named; and Karen Ancona, Editor of CNA.

2. The Internet and email have become critical tools for buyers and sellers alike. Hence the importance of "Creating the Right Strategy for Successful Internet Selling" and "Seven Simple Secrets for Successful E-Mail Marketing."

3. Futurist Ed Barlow is speaking on "Crafts and Hobbies in a Continuum of Change." I have heard Barlow's presentation and it is excellent – lots of food for thought.

1. A CHA Summer Show event that is being repeated because it was so wildly popular is "Selling to the Big Chains: Is Your Company Up to the Challenge?" Mike McCooey (Plaid) is the moderator and the panelists include Jim Scatena (FloraCraft), Rebecca Jones (Jo-Ann's), Michelle Burian (a consultant to Wal-Mart suppliers), Eric Dickerson (Michaels), and Herb Lantinga (Notions Marketing).

2. Other key seminars: "How to Work with a Licensed Artist," with Joanne Fink; "Operating Efficiency: The Real Competitive Advantage In the Supply Chain," with Tom Mentzer; and "Key Traits of Successful Innovators: Integrating your New Product Process," with Mark Weisboro.

3. Looking for some great freelance designers? Visit the Designer Showcase on Sun., Jan. 29, from 1 to 4:30 pm, then stay for a reception immediately following.

4. Exhibiting for the first time? Don't miss the "New Exhibitor Program and Reception" the day before the show opens.

1. CHA booth. Members of the board of directors and their Membership Linkage committee will be in the booth during the entire show. Have a question, comment, or complaint regarding CHA? Stop by the booth – and non-members can learn about the Association.

2. Annual business meeting/breakfast. It's Wed., Feb. 1, 7:30 - 9:00 am and it's free. Highlights of the new 2005 CHA Usage & Attitude Study and other association activities will be discussed, the new directors on the 2006 board and the members elected to serve on the 2006 Nominating Committee will be presented, as will recipients of industry awards and the Innovations Showcase winners.

3. The new CHA Usage & Attitude Study, "$30 Billion Dollars One-Crafter-At-A-Time," will be unveiled at a special seminar on Tues, 4:00 -5:30. The new Study will show that the industry has surpassed the $30 billion level and that 75% of U.S. households contain at least one member who has crafted. This seminar promises to provide detailed information – and how to interpret it. Bankers love data like this – and it always helps to keep your banker happy, no matter how large or small your business.

4. Aleene Jackson and family will be in the CHA Theater Monday from 1 to 3 pm. If you want a true historical perspective on our industry, consider this: Aleene was demonstrating crafts on Art Linkletter's television show when the vast majority of consumers didn't even have a tv. Most of us wouldn't be in the industry today if it weren't for Aleene – because there wouldn't be an industry. Learn some history about the industry that's giving you your livelihood.

5. The keynote speaker Monday evening is Tim Sanders of Yahoo! who will speak on "The Likeability Factor." I'm not familiar with him, but with one glaring exception, CHA keynote speakers have always been excellent. (The exception was tv personality Phyllis George, who put me to sleep. Want to lapse into a coma? Listen to Phyllis tell you how great she is.)

Net income for the third quarter ended Oct. 29 increased 30.5% to $55.4 million ($0.40/diluted share) – another record and above Wall Street's expectations. Net income for the first nine months of the fiscal year has risen 34.7% to $132.8 million ($0.96).

As CLN reported earlier, CEO Michael Rouleau said sales were impacted by unseasonable weather, higher gas prices, and a reduced promotional program, but margins improved. Rouleau said Michaels made "solid progress" regarding the 'Pursuit of the Perfect Store' program, the Hybrid Distribution method, and the conversion to cost accounting. Due to the success of the 25 "Perfect Store" remodels, Michaels will expand the remodel program to approximately 65 additional stores next year.

Rouleau expects a successful holiday season driven by enhanced merchandising of jewelry, papercrafting, and yarn and by more focused advertising. Michaels is expanding on last year's "Gift Giving" initiative, and has launched its first-ever nationwide radio ad campaign.

For the fiscal year, execs are forecasting fourth quarter same-store sales to increase 3%-5%, total sales to increase 8% to 9%, and earnings to increase 26%-29% to $1.83-$1.87.

During the quarter, Michaels opened 19 and relocated seven Michaels stores and opened one Aaron Brothers store. The company also signed a lease for a new distribution center in Centralia, WA beginning in late fiscal 2006. The store count: 889 Michaels stores, 166 Aaron Brothers stores, 11 Recollections stores, and four Star Wholesale operations.

To read the complete press release, visit www.michaels.com; click on Corporate Information, then Press releases.

Jo-Ann's Chair/CEO/President Alan Rosskamm is giving up his presidency and CEO responsibilities. Rosskamm will continue to serve as executive chairman with primary responsibility for the strategic direction, vision, and culture of the company. Jo-Ann's has begun a nationwide search to fill the new position of president/CEO, who will report to Rosskamm and assume responsibility for day-to-day operations and execution of the company's strategy.

A company press release said the change "will allow the company to accelerate its ongoing strategic transformation while bringing sharper focus to the execution of the strategy and the management of day-to-day operations."

The action follows the recent resignations of the CFO, VP of Merchandising, and Corporate Attorney.

Rosskamm stated, "I believe passionately in the company's superstore strategy and our vision for the future. We have a great brand, the leading market position in sewing, and a large and growing share of the market for crafts. As we continue to transform our business from traditional fabric stores to superstores offering a wide assortment of crafts and fabrics, it is clear that we must focus sharply on retail execution and operational excellence. Now is the right time to bring in someone with whom I can partner to accelerate change and secure our future growth and success."

Gregg Searle, Jo-Ann's lead independent director, said, "The directors are united in support of Alan's leadership and strategic vision for the company. And we agree that this new executive structure will provide the appropriate organizational foundation to take the company to the next level of growth and performance."

Recently the Associated Press sent its subscriber newspapers an article on a scrapbooking trend that has ominous implications for the traditional scrapbook industry: scrappers turning to digital scrapbooks and no longer buying embellishments and other products that makes scrapbooking profitable for retailers. It's unknown how many news publications published the article, but no doubt it is a large number, including CNN.com.

The article described a hard-core scrapper, Wendy Armstrong; she's scrapping as much as ever, but now, two years later, her scrapbooks are on a computer. "Armstrong is ready to get rid of her collection [of supplies] altogether," the AP reported.

The article cited Scrapbook Bytes, which has attracted almost 40,000 registered members since it went online in 2003. Visit http://scrapbookbytes.com/store/home.php. 

Some thoughts about A.C. Moore's Jack Parker: A) Jack started with one store, just like the founders of Michaels, Jo-Ann's, Wal-Mart, etc. Moral? Just because you start small doesn't mean you stay small. B) Some keys to Jack's success: He's adamant about empty shelves ... He understands the value of using distributors ... A few years ago he temporarily postponed expansion plans until he was certain the company's infrastructure was ready – and thereby avoided the mistakes other chains have made by expanding right into bankruptcy.

CHA. Although the Winter show will have 1,100+ exhibitors, due to popular demand officials have expanded the show and so booths are still available. The exhibit space contract is available at www.chashow.org. For more info, call Shelley Fulghum at 201-794-1133, ext. 220 or email sfulghum@craftandhobby.org.

DESIGNERS. Want to reserve a table at the Designer Showcase at the CHA Winter show? It will be held Jan. 29, 1 to 4:30 pm and all exhibitors, publishers, and the press will be invited to attend. A reception will be held immediately afterward. The deadline to reserve a table is Jan. 9. Forms can requested by email by writing to memberservices@craftandhobby.org.

EXHIBITORS. The deadline for CHA Winter Show vendors to submit the registration form for the Innovations Showcase of new products is Dec. 23. Most buyers peruse Innovations before walking the show – it's a perfect way to gain additional exposure. Prizes will be awarded by category, as well as a "Best of Innovations" award.

TNNA. Exhibit space for The National NeedleArts Assn. show, Jan. 21-23, 2006 in San Diego is sold out. There will be 327 exhibitors (11 new) in 826 booths. There is a waiting list. Online attendee pre-registration ends Dec. 22. Visit www.tnna.org. For more info, call 740-455-6773 or email tnna.info@offinger.com.

SEWING. The Home Sewing Assn. will sponsor a seminar/networking session, "The Long and Winding Road: Navigating Today's Challenging Business Paths," this Thursday at Arno Ristorante in New York City, It's free to HSA members and industry execs. The event will feature a keynote presentation by Bill D'Arienzo, Founder/CEO of WDA Marketing Solutions, a brand consulting firm. To attend, call HSA at 412-372-5950 or email jperhac@sewing.org.

COMPANY FOR SALE. Small, well-established scrapbook supply manufacturer, with strong brand identity and product lines, seeks buyer. Annual sales: $350,000. This company would be an excellent candidate for vertical integration into an existing company. Products work well with a variety of other products. Excellent customer base, including key accounts, and valuable clean mailing list. Owner willing to work through transition period. For more info in confidence, email Mike Hartnett at mike@clnonline.com or call 309-925-5593.

QUOTATION. "What are we to take from the shopping patterns of the [Thanksgiving weekend]? That some retailers are living lives of not-so-quiet desperation, resorting to any and all methods of generating traffic and create the illusion that they are creating real and long-term growth? That consumers are doing exactly what retailers want them to do – becoming like trained dogs, responding only to some Pavlov’s bell announcing sales and discounts and promotions, thereby commoditizing and devaluing the act of acquisition? There is a sense that this is all spinning out of control." – Kevin Coupe, Morning NewsBeat.com

HOLIDAYS. Massachusetts Attorney General Thomas F. Reilly's office told six retailers that staying open on Thanksgiving violated state law. The retailers included Wal-Mart, Family Dollar, and Big Lots.

MEDIA. In a recent edition of Woman's Day and excerpted in MSNBC, Editor Robyn Moreno encouraged consumers to visit their local Jo-Ann's and Michaels stores to attend craft demos and make-it/take-its for last-minute gifts and holiday decorations. To read the excerpt, visit http://msnbc.msn.com/id/10293229.

DESIGNERS. The Society of Creative Designers replaced its Certified Craft Designer program with the Recognized Creative Industries Designer program for designers "who make a commitment to the creative industries and meet requirements to maintain the recognition through education, teaching, leadership, and writing skills." For more, visit www.craftdesigners.org.

PROMOS. To see a unique way to promote scrapbooking, visit www.twopeasinabucket.com/safeway.

TRENDS. "Along with traditional holiday decorations, Rose Pacifico, floral designer at A. C. Moore Arts & Crafts in Wappingers Falls, said this year she's seeing lots of sparkly trimmings. 'The more glitter, the better,' she said. The store's general manager, Jason Erney, said the 'glitter' includes frosted and frozen-looking ornaments, everlasting berries and silk-like garland and greenery accented with pretend mini-ice cubes and artificial snow." – Poughkeepsie (NY) Journal

PEOPLE. Promotions at Creativity Inc.: Allan Kretchman to Sr. VP of Sales. He will be responsible for the sales efforts of all Creativity companies, including Autumn Leaves. Angie Bright and Christine Alm were promoted to VP Sales positions. The Creativity umbrella includes Autumn Leaves, Blue Moon Beads, Crop in Style, DMD, and Westrim Crafts.

CHA. Hired Loren Barrows as Marketing Manager, reporting to VP Sandy Ghezzi. Loren’s most recent position was Marketing Manager for the Charmant Group, manufacturer of Hugo Boss and Michael Kors eyewear ... John Erich joined the staff as Trade Marketing Manager, reporting to VP Tony Lee. John formerly worked as Show Manager for George Little Management ... Keri Cunningham joined CHA as Marketing Coordinator reporting to Barrows.

AWARD. Cutters Productions received an MVP award from American Public Television. "Cutters Productions has provided APT with 23 program titles for national distribution on public television," APT said. "Many of their titles have been highly successful fund-raising programs, almost all of which were distributed via UNC-TV. Its production, One Stroke Painting With Donna Dewberry, is one of the top-grossing how-to pledge programs."

PAINTING. The Society of Decorative Painters's Nominating Committee picked the following for the 2006-7 ballot. Voting takes place by absentee ballot and at the Conference, June 5-10 in Nashville: VP/Pres.-Elect: Jillybean Fitzhenry and Phyllis Gibbs ... Treas.: Jo Lutness and Kaye Singer ... Board Members: Patti DeRenzo, Judy Hawkins, Barbara Jenkins, Doxie Keller, Sheila Rouse, and Anita Shackelford. Nominating Committee: Debra Henkener, Shirley Nan Ruchong, Golda Rader, Susan Vivoli, Barbara Wilson, and Ann Kingslan.

NAMES. Prym-Dritz has changed its name and is now known at Prym Consumer USA Inc., which remains in South Carolina.

To see the latest listing of available jobs, click on Jobs in the left-hand column, or click HERE.

A. C. Moore (ACMR). Last*: 14.16 ... Change**: -0.58
Hancock Fabrics (HKF). Last*: 4.30 ... Change**: -0.39
Jo-Ann Stores (JAS). Last*: 11.89 ... Change**: -0.53
Michaels (MIK). Last*: 37.86 ... Change**: +3.83
Wal-Mart (WMT). Last*: 47.97 ... Change**: -1.53
CLN Retail Index. Last*: 162.46 ... Change**: +0.7%
Dow Jones Index. Last*: 10,877.51 ... Change**: +1.0%

The CHA annual charity golf tournament will be held at the Royal Links Golf Club in Las Vegas on Saturday, January 28. In the spirit of the event, here are some golf comments emailed to CLN by a subscriber:

1. Eighteen holes of match play will teach you more about your foe than 18 years of dealing with him across a desk. – Grantland Rice

2. Golf appeals to the child in us. Just how childlike golf players become is proven by their frequent inability to count past five. – John Updike

3. If profanity had any influence on the flight of the ball, the game of golf would be played far better than it is. – Horace G. Hutchinson

4. They say golf is like life, but don't believe them. Golf is more complicated than that. – Gardner Dickinson

5. If a lot of people gripped a knife and fork as poorly as they do a golf club, they'd starve to death. – Sam Snead

6. Golf is a day spent in a round of strenuous idleness. – William Wordsworth

7. If you drink, don't drive. Don't even putt. – Dean Martin

8. Man blames fate for all other accidents, but feels personally responsible when he makes a hole in one. – Author Unknown

9. My golf game is so bad, if I grew tomatoes they'd come up sliced. – Author Unknown

10. The only time my prayers are never answered is on the golf course. – Billy Graham

11. It's good sportsmanship to not pick up lost golf balls while they are still rolling. – Mark Twain

12. Golf and sex are the only things you can enjoy without being good at them. – Jimmy DeMaret

13. May thy ball lie in green pastures... and not in still waters. – Author Unknown

14. If I hit it right, it's a slice. If I hit it left, it's a hook. If I hit it straight, it's a miracle. – Author Unknown

15. Golf is a game invented by the same people who think music comes out of a bagpipe. – Author Unknown

REMINDERS

1. If you want a hard-copy of this issue, click on "Printer Friendly version."

2. If your company is a paid subscriber, everyone in the main office is welcome to register, free. Just click on "Work for a paid subscriber? Click here to register."

3. Creative Leisure News is published the first and third Mondays of each month.  Your next issue will be Monday, December 19.

xxx

[ Home ] [ Business-Wise ] [ Kate's Collage ] [ "Vinny Da Vendor" ] [ "Benny Da Buyer" ] [ Kizer & Bender ] [ Newsbriefs ] [ Memory, Paper & Stamps ] [ Category Reports ] [ Designing Perspectives ] [ Subscribe to CLN ] [ Legal Q & A ] [ Scene & Heard ] [ Jobs ] [ Tech Topics ] [ Industry Research ] [ Store Layout/Design Tips ]

©Copyright 2009 by Creative Leisure Communications
(Reproduction or re-transmission without permission is prohibited.)