RTA vendors voice doubts about attending '90 show - National Housewares Manufacturers Association Semiannual International Housewares Exposition; ready-to-assemble furniture

Discount Store News, August 7, 1989

RTA Vendors Voice Doubts About Attending '90 Show

CHICAGO -- Ready-to-assemble furniture manufacturers showed their wares to an intimate gathering of retailers attending the International Housewares show here last month.

While most manufacturers of housewares products questioned their participation in future July shows due to low turnout, RTA vendors in particular voiced doubts about attending the July 1990 show.

RTA vendors and buyers--unlike those from many other housewares categories--can afford to be selective about the conventions they attend because they have generally more opportunities; many shows lend themselves to the display of RTA--including the home center, hardware and furniture shows. The RTA industry has made a home for itself at the High Point market, making the July show especially expendable.

With few exceptions, vendors displayed one or two new pieces at last month's National Housewares Manufacturers Association show, holding the major introductions for either the International Home Furnishings show in High Point in October, or the January NHMA show.

Jerry Rosenthal, president of Charleswood furniture, was among those questioning future participation. "I am surprised at all the open space. This show is not a magnet for retailers. When you see all the open space, it has to affect the show. I don't know if we will be here next July."

Robert Livergood, vice president of sales at Gusdorf, said he found the attendance low even in comparison to last year's quiet July show. Nonetheless he said he expects to be at the show again next year. "It's not an expensive show for us to be at. We did have the opportunity to meet with some of our key accounts here," he noted.

Tom O'Sullivan, national sales manager at O'Sullivan furniture, said it was a slow show overall. He said that he had, "several important conversations dealing with issues for ongoing programs," but "did not do much new selling."

Disappointing Attendance

While show attendance was disappointing, O'Sullivan said the NHMA's show is less expensive than any other his company attends.

Consolidation within the RTA and retail industries was a main topic of discussion. The bid for Armstrong World Industries by the Canadian Belzberg Family, and the proposed sale of May Department Stores' Venture and Caldor discount store divisions spawned speculations about how consolidations would impact the industry.

Phil Terry, furniture buyer at Caldor, maintained his chain was operating normally following the announcement by May Department Stores that it wanted to sell its discount chains. Terry expects that Caldor will have a "good fourth quarter" selling period.

"Business as usual" was also the way that David Brown, marketing manager at Armstrong RTA, Lancaster, Pa., described his company's current operations. The Belzberg Family had stated that if it succeeded in its hostile takeover attempt, Belzberg would divest itself of divisions that did not relate at all to Armstrong World Industries' core business, home improvement products. Divisions such as Thomasville case good furniture and the Armstrong RTA division could be jettisoned.

"Nothing will happen for a long time down the road . . . The Commonwealth of Pennsylvania is one of the most proactive toward stockholders' rights protection . . . The law reads that no assets of the acquired company can be sold for five years," Brown explained. The Belzberg's are seeking clearance to acquire at least 50 percent of Armstrong's outstanding shares.

Armstrong came to the show with the largest and most noteworthy new RTA introductions. The company officially unveiled its juvenile furniture line, the first of its kind in RTA. The line--which includes items such as a crib, and dual purpose armoir/chest and changing table/dresser--is styled as part of Armstrong's Avalon collection.

Several RTA vendors said they were relieved that Southern Wood Furniture's parent, Miami-based Atlantis Group, had bought Rospatch's Jessco division (which includes Affordable furniture). Early indications that Charleswood's parent, National Home Products, Buffalo, N.Y., would purchase Affordable furniture would have made these two competitors an even more powerful force to be reckoned with, the vendors commented.

Ben Levy, director of Soundesign's ready-to-assemble furniture division, headquartered in Jersey City, N.J., summed it up: "The industry is becoming more finance-driven than merchandise-driven. More and more financial people are getting involved in the decisions; no one except for the leaders, are safe from acquisition."

Soundesign debuted a new videotape storage cabinet/television table at the show. Several of the items introduced at the April market in High Point were being displayed at the NHMA show for the first time, primarily entertainment pieces.

PHOTO : Carole Cousin, product manager for Crate & Barrel, the innovative home fashions chain,

PHOTO : visits with Benjamin Levy, director, RTA furniture, Soundesign.

PHOTO : Robert Livergood, Gusdorf's vp of sales.