
Creative Leisure News
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Email: mike@clnonline.com

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Date:
October 1, 2001
Vol. V, No. 19
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TABLE OF CONTENTS
COMMENTARY: HELPING AMERICA
This issue contains my summary of the feelings of many industry
leaders on the effects that the September 11th tragedy and the
probable recession will have on our industry. Most of the people I
talked to believe the industry will benefit.
Many were seemingly embarrassed, almost ashamed to say that we might
gain from the mind-boggling horror of September 11th. They shouldn't
be.
I think Americans need comfort, security, and an outlet to express
their patriotism and their love of family and friends. Our industry
can fill those needs. So don't be embarrassed if you throw yourself
back into your work, as President Bush has urged us to do, and break
out the red, white, and blue products and patriotic projects.
Help America heal.
THE EFFECT ON OUR INDUSTRY
After the initial shock of September 11th wore off, we emailed a
number of industry veterans and asked for their predictions on how
the tragedy will affect our industry. Everyone prefaced their
comments by saying they were guessing. "I am inside a giant
question mark," said consultant Ellie Joos. "We are so
living in the now, not knowing what the next step for the country
will be, or the next step after that."
1. The short-term effect was disastrous. "If one takes
the sales of Michaels, Wal-Mart, A.C. Moore, Hobby
Lobby, and JoAnn's and calculated the dollars lost for
just three days," one industry VP estimated, "it totals
between $65-$100 million." Independents, particularly those in
tourist areas, took a bad hit, as did mail order, e-commerce, and tv
shopping companies.
Heavier dock security slowed the unloading of imports ... Trucking,
air freight, and UPS shipments slowed ... Major presentations to
large customers were canceled because people refused to fly ...
Industry events to which people drive should be relatively
unaffected, but it's another story for shows that require air
travel.
2. A recession is coming. Mark Hill, VP at Plaid,
said, "Given the impact this terrorist action has already had
on the airline, transportation, leisure, and advertising industry,
on a global scale, I can only surmise that the country -- and
perhaps Europe -- will probably be pushed into recession."
The CFO of a needlework company thinks we're already in a recession.
"I believe we were in a recession around 4-6 months ago. As is
typical with recessions, the data only shows it six months after it
had begun."
3. The recession will be short-lived. "The politicians
and Wall Street think our American economy will indeed sink to even
lower depths in the weeks to come," says NSI's Erik
Mandleberg, "especially if we find ourselves at war, but it
will come back like a roaring lion, stronger than ever, 6-12 months
from now."
"Unfortunately," says Jim Scatena, President/CEO of FloraCraft,
"this will be a test of the feeling that our industry is
recession proof."
4. Layoffs are growing. "It has already had an impact on
our business," reports Gail Czech of The Creative Network,
the personnel recruitment firm. "Companies are downsizing
significantly. Good, solid companies that everyone recognizes are
experiencing a slowdown in business. This is in the craft industry
as well as other consumer package goods companies outside our
industry. There are many talented and skilled people out here with
no jobs."
5. Government war spending may not help. "This is a war
without a defined enemy other than Terrorists'," said the
needlecraft CFO. "This is a war against NO country and a war
that would require many, many surgical strikes, which take very
little in the way of equipment/supplies that will need
manufacture."
6. A recession will help -- or hurt. "Perhaps in the
beginning sales will be down," said painter/author Priscilla
Hauser, "but not in the long run. In a recession, people turn
to creativity and produce more with their hands than with their
pocketbook. I've seen it before."
Steve Perl of Art Wire Works disagreed. "It is my belief
that the craft industry is NOT helped by a recession. I have heard
the line -- gifts will be crafted, not purchased -- but it rings
hollow. When job cuts are many and money is scarce, retail is
affected...."
The president of a major craft company isn't sure. "I don't
know if crafts still benefit from recessions like in times past,
when a gift made by oneself saved half or 2/3rds from buying the
finished item in a retail store. Now beautiful imports from China
can be purchased at a fraction of what the raw materials would cost
in a craft store.
"We are nervous," he added, "that if this crisis puts
us in more of a recession, the impact could put a weak major
retailer in the tank."
"Our hope has to be," he added, "that personally
making something for someone else becomes even more important in the
minds of the givers and receivers."
7. Changing consumer tastes. "The long-term effects of
this tragedy on DMC's business will be consistent with the
craft industry, which we believe will be strengthened by this
experience," wrote Robin Scheer Ettinger, Marketing VP.
"We see a shift away from materialism and edgy' design and
pursuits to more traditional values -- exactly the values that
crafting represents: family, home, and togetherness.
"The desire to express one's emotions through creativity is
what crafting is all about," Robin added. "Not just now,
in the immediate aftermath where everyone is looking for a patriotic
symbol to wear and support, but longer term, as our society
re-examines our values and motivators. We do not see this as a fad,
but much more of a long-term trend."
"Patriotic themes in product graphics, color, and sentiment
will certainly be more prevalent as people look to express their
solidarity and surround themselves with reassuring symbols,"
said John Lowenthal of Next Level Marketing. "It's also
quite possible the market for home-based leisure activities will
improve as the current fear of flying reduces travel -- not the
ripple effect we are hoping for, but a possible eventuality. And as
always, crafting will also be looked at as a relatively
cost-effective and beneficial stress-reducer."
8. Scrapbooking will grow. "I find myself even more
passionate about preserving my family's legacy through modern
scrapbooking," wrote Editor Cathy Arnold at the Graceful Bee
website (www.gracefulbee.com).
"This tragedy has made me even more aware of all that is good
in my life and has encouraged me to make sure that when my time
comes to leave this world, I have captured as many memories as
possible to leave behind for my family and friends."
9. People will look at work differently. "Every New York
contact with whom I have discussed this tragedy has the same
reaction of disbelief, a stunned feeling of a deer permanently
caught in the headlights," said the needlework CFO. "It's
an enormous sorrow that cannot be described and has slowly turned
into a numbness that even brings about an ambivalence towards their
work. I believe these feelings are shared to a lesser degree by all
Americans who cannot help but strongly empathize with New
Yorkers."
Doug Stansbury of 4Kids agreed. "I, for one, really now
understand that what matters most is my God, my family, and my
country -- not that I didn't feel this way before, it just was
somewhere in the background of my mind, and my work was in the
foreground. Never again."
10. A yearning for traditional ways. "In hard times,
nostalgia usually sets in for the good old days. That could mean an
increased demand for Americana, folk art, and soft crafts like
knitting, quilting, and crochet," wrote C Boyd, a
manufacturer's rep.
11. Helping people heal. "People are drawing those
around them who are important and they're realigning their
priorities," said Cindy Kemp, a Ben Franklin retailer in
Ojai, California. "I think it could be good for our industry.
Think about scrapbooking, think about memory quilts, think about the
human desire to return to a simpler time. All of those things can
work in our favor as a way of healing and going forward."
Ellie Joos added, "Many, many people will experience an
overwhelming need for comfort and security and seek ways to bring
that into their homes and lives.
"They will also want ways to express themselves and to reach
out to others," Ellie added, "as we have seen with the
overwhelming donations of blood, food, supplies, and money.
Especially as the holidays approach, people will rethink their way
of celebrating and spending. I can see people decorating in themes
of red, white, and blue and certainly have an awareness of buying
Made in America' products. There will certainly be less traveling
over the holidays and more intimate, at-home parties with loved
ones, and more picture taking and scrapbooking."
"I believe people find peace in using their hands to create and
escape," Priscilla Hauser said, and quoted one of her students:
"What would I have done without my painting to calm me? My
painting helped pass the time and gave me a sense of control over at
least my immediate environment."
Cari Clement of CCP/Bond America predicts the
"serious" side of our industry (non-disposable crafts) and
products that take kids' minds off their fears will do well.
"People will turn to their creative side," she said.
"They want to find a way to contribute to the cause. In some
small way, creating quality, even heirloom, projects that bring us
closer to our families and friends makes us feel as if we're
contributing to the greater good."
12. A red, white, and blue season. Offray added staff and
machines at its sites in Alabama, Maryland, and South Carolina to
produce red/white/blue and yellow ribbon -- and industrial-strength
webbing and straps for emergency personnel gear. "Every one of
our management and factory staff members is committed ... because
all of us at Offray have lost friends or family, or know of the
thousands of others who have, and we refuse to be beaten," said
President Claude Offray, Jr.
"I've been in the industry since 1972," said
manufacturer's rep Wolfie Rauner, "and the single biggest event
that really put the industry on the map was the bi-centennial in
1976."
13. The future is up to us. Mark Lee of AMACO said,
"As Americans, we set our own destiny, based first on our own
attitude towards what has taken place. If we run scared and unsure,
then we will most likely make decisions that will harm our business.
But if we keep a positive attitude, keep the faith, and look for
opportunities, we will make the best of this situation and any
others that may happen."
"We have all been blessed with good minds," Priscilla
Hauser said. "If we use them, we'll survive this situation
beautifully. We have always managed to do that in the past."
STRATEGIES TO IMPLEMENT -- NOW
Ideas from industry expert Asher Pavel:
1. Independents who use classes as a marketing tool should a)
promote projects with patriotic themes; b) offer special
discount classes with patriotic themes for kids, scouts, etc.; and c)
promote classes where the store provides materials free or at a
discount and customers donate their time to make small items
(eyeglass cases, lightweight picture frames, etc.) for donation to
U.S. armed forces personnel overseas.
2. Independent retailers who do not normally sponsor classes
should do so now.
3. Make U.S. flag replicas to hang in home windows (small
quilts, plastic canvas, etc.)
4. Independent retailers should promote products that are
made in the U.S.A.
5. Manufacturers and wholesale distributors should
immediately promote products made in the U.S.A.
6. For independents, IMMEDIATELY begin promoting
Thanksgiving. This year it is likely Thanksgiving will be big. Make
wreaths with patriotic themes which can be hung on front doors for
the holiday or donated to nursing homes, hospitals, etc.
7. Donate plastic canvas and appropriate yarn (red, white,
and blue) to a local senior citizen day care center.
8. Regarding a slowdown in deliveries, independents MUST look
closely at the source of popular items and make contingency plans
NOW.
9. There are several types of quilts which are relatively
easy and fast to make (e.g. tied quilts). As a project, a store can
have a class to make one or more such quilts to donate to the local
fire department as a banner.
THE INDUSTRY'S EFFORTS TO HELP AND
HEAL
So many industry companies, from large manufacturers and chains to
small stores and individual designers, are doing something for the
war/recovery effort, that it is impossible to list all of them.
First it was money and blood; now it's publications, products, and
projects with patriotic themes (usually with all or some proceeds
donated to an appropriate charity).
One industry friend suggested we all donate our tax refund checks to
the relief effort -- and insisted I not mention his name.
The Home Sewing Association immediately posted instructions
on its website, www.sewing.org,
to sew an American flag.
HIA is offering printed posters and digital artwork for a
poster emblazoned with patriotic craft ideas and the headline,
"Celebrate America the Beautiful." HIA will print 25,000
copies for distribution to members, and as a bonus in the HIA 2002
Show Buyer Registration Kit. Industry members may purchase posters
in quantity, or a computer disk with digital artwork, by making a
contribution to the HIA Foundation. HIA members can order
extra posters for a minimum donation of $2 each, or the digital
artwork on CD-ROM for $10. HIA's covering the printing-mailing
costs, so all of the donations will be donated to the Red Cross.
The Society of Decorative Painters will present original,
signed artwork by the industry's leading painters for auction on
eBay Dec. 11-20, with the proceeds donated to the Red Cross. The
list of artists includes Ginger Edwards, Michael Fulton, Priscilla
Hauser, Jo Sonja Jansen, Andy Jones, Ann Kingslan, Mary Jo Leisure,
and many others. Beginning Dec. 11, SDP's website, www.decorativepainters.org,
will have links to the eBay auction pages, which will picture the
artwork up for bid. To donate directly, send checks to SDP-Relief
Fund, 393 N. McLean Blvd., Wichita, KS 67203-5968. For credit cards,
call 316-269-9300, ext. 114.
Crafting for Compassion is a card-making, letter-writing
campaign spearheaded by I.Q. Promotions, a Pennsylvania PR
agency. Consumers wishing to console the grieving families in New
York, Washington, D.C., and Pennsylvania can write/make cards and
drop them off at 15 Philadelphia-area A.C. Moore stores and
other locations. The first batch of cards are being delivered this
week to the families of the workers at the Windows of the World
restaurant that once existed at the top of a World Trade Center
Tower. To get involved, call Alicia Sheerin at 610-521-5405; fax
610-521-5406; or email iqpr@aol.com.
Other Examples. A.C. Moore donated $100,000 and Jack and
Patricia Parker are donating $50,000 ... We hear Krause
Publications will publish a book of patriotic projects donated
by members of the Society of Craft Designers ... JHB Int.
introduced the American Pride Tack Pin -- a replica of the
American Flag. (#76130; $2.75 retail). There's also an American
Pride Ribbon Pin (#76922; $16.50/dozen wholesale, $2.75 each
retail.) They can be seen at www.buttons.com.
More: Design Originals is reprinting books with patriotic
projects ... Alpine Imports donated a portion of the proceeds
from a recent promotion ... Janlynn is manufacturing a tote
sporting an American flag ... Lion Brand Yarn has
instructions for three flag-inspired projects -- a knit sweater, a
crochet sweater, and a crochet afghan -- on its website at www.lionbrand.com
... CNA is donating 10% of its ad revenue from its November
issue ... Offray donated tri-colored ribbon pins to the New
York relief forces and made a monetary contribution ... Dimensions
released a variety of needlework kits with patriotic designs ... CCP/Bond
America and Caron have a project sheet for an American
Flag Throw in CNA's November issue.
WALL STREET AND OUR INDUSTRY
If a rising tide lifts all boats, clearly our industry's boats, like
everyone else's, were low in the water after September 11th. In the
first week of trading after the markets reopened, the Dow dropped
14.3%. All industry-related stocks declined: Michaels, -19.4%
... Jo-Ann's, -13.2% ... Hancock, -6.3% ... Rag
Shops, -2.3%. (Note: Hancock declared a 4 cents/share
dividend.)
Usually Wall Street bets on discount stores during a recession, but
no one was betting on anything during that first week. Wal-Mart
slid 3.4%, Target and Shopko dropped 17%, and Duckwall-ALCO
dropped 10%. During the week, Kmart was the subject of a
report that some analysts doubted the success of the company's
turnaround efforts; the stock dropped 31%. Ames reappeared
under the symbol AMESQ at 25 cents and promptly fell to 6 cents. Right
Start, the new owner of Zany Brainy, fell 18%, and Martha
Stewart dropped 23%.
The market improved substantially the second week following the
disaster, but the end result was still negative for most stocks.
However, as the prospects of a recession increased, investors began
looking for recession-proof stocks. Most of our industry-related
retailers regained much of what they'd lost during that first week.
In the two weeks since the tragedy, the Dow had fallen 7.9%, but A.C.
Moore actually gained 13% and Wal-Mart was up 7%. Hancock lost only
2.5%, Rag Shops fell 4.5%, and Jo-Ann's dropped 5%. Michaels was
down 13% and Right Start dropped 19%. Kmart was the worst performer
of the discount stores, falling 23%. Target was down 1.4%, Shopko
dropped 9%, and Duckwall-ALCO fell 16%. Martha Stewart dropped 12%.
For the third quarter, most industry-related stocks outperformed the
Dow, which dropped 15.8%. Jo-Ann's rose 33%, A.C. Moore was up 6%,
and Wal-Mart increased 1.4%. Michaels was down 11%, and Rag Shops
fell 23%.
MORE PERSONAL COMMENTS
1. "I wanted to let your readers know that we are not
alone in our grief. All this week, throughout the world, every last
one of the international distributors and customers I know, have
written to me expressing condolences, and 100% support for the U.S.
in this time of unfathomable sadness." -- Ellie Creelman-Hons, ECH
International Sales Development
2. "My brother, a Navy Commander, was returning to his
office at the Pentagon when he saw the impact. His section of the
Pentagon was adjacent to the impact. He says the section hit housed
the computer systems for the defense department budget office."
-- Angus Mackie
3. "Our factory has been in a sort of class battle' over
the last few weeks. The Downstairs' employees (packagers, shippers,
quality control, etc.) were upset over a luncheon to which only the
sales (a.k.a. the Upstairs') department was invited. Things got
really tense, feelings were hurt, some unkind things were said.
Tuesday put an abrupt end to our silly rift; we cried together, we
attempted to do our work, we collected money, we gave blood, we
pledged the flag and said the Lord's Prayer -- together. Probably
NOT what the terrorists had in mind, huh?" -- Industry
Manufacturer
4. "My friends and I talk about our generation, the
20-somethings, and we've been pretty spoiled and sheltered
throughout our lives. None of the major world issues, conflicts,
disasters have ever hit as close to home as this has. As I watched
everything unfold on Tuesday and the days that followed, it changed
me and my attitude about being an American. I understand so clearly
now why people love this country so much, a country that many,
including myself, have taken for granted. To see the rescue workers,
fire fighters, leaders and everyone who was helping pull together as
they did was absolutely remarkable and it filled me with a sense of
pride for being an American that I have never felt before." --
Brett King, Alpine Import
5. "I just read your newsletter and was touched.
Unfortunately, I can confirm a piece of information. My best
friend's sister-in-law, who just started as a buyer at T.J. Maxx,
was with 6 T.J. Maxx employees on the American Flight #11 that was
the first plane that crashed into the first tower. Neilie Casey
leaves behind a bereaved husband and a beautiful 6-month-old
daughter, Riley. My understanding from the family is that T.J. Maxx
has been wonderful during this tragedy. God bless America." --
Maureen Remitz of Tauton Press
6. Dan Sadur of Aldastar sent along a note from a
customer in France: "We saw with astonishment what happened to
your country, and I wanted to show you through these few words, on
behalf of all Wesco Company, our support and our friendship
to surmount the terrible ordeal your country is living today. The
Statue of Liberty, a gift from the people of France in the 19th
century, weeps as it gazes on the destruction of the 21st."
WEBSITES OF INTEREST
1. For a collection of very moving photographs of the world's
reaction to terrorism, go here.
2. To give kids, from small children to teens, craft projects
to help them express their feelings and console the victims'
families, go here;
for older kids and teens go here.
3. For an excellent description of current conditions in
Afghanistan, surf here
for an article from Newsday, the newspaper published on Long
Island.
4. The Angel Project sponsored by Clapper
Communications is a crusade asking citizens to make an angel for
September 11 victims. Visit here.
5. Coping
with Terrorism is a website by the American Psychological
Association.
6. CraftersCommunity.com is organizing an effort to encourage
everyone to make a quilt block. The blocks will be combined into one
or more International Peace Quilts and auctioned to raise money for
the relief effort. Go to www.crafterscommunity.com/~quilts/.
RANDOM NOTES, RANDOM THOUGHTS
1. Keep in mind that I am an optimist and a prejudiced,
unabashed fan of the industry. Also remember that I am not a
technical market analyst. That said, I think this is an excellent
time to buy certain industry stocks.
2. I understand if Americans have stopped traveling because
of grief. I do not understand not flying because of fear. Flying is
probably much safer today than a month ago. Part of my thinking is
based on my childhood, growing up in a very tough neighborhood in
Chicago. I learned at a young age that if you're going to let fear
keep you indoors, you'll never leave the house. There's always
something to be afraid of.
3. Think you have a cash flow problem? Lloyd's of London has
to pay $1.9 billion in claims for the World Trade Center.
4. A personal little story: my brother-in-law was stranded in
Nottingham, England when the terrorists struck. The hotel allowed
all of the stranded Americans to stay as long as necessary and make
international calls -- for free.
5. The terrorists hurt us in so many ways. Jo-Ann's
donated a portion of the proceeds from a 3-day sale to the Sew
For The Cure campaign to help fight breast cancer. But the sale
was September 14-16 and surely did not collect as much money as it
would have if the event was held before September 11.
6. Marketing people in all industries are re-thinking how
they market their products so they do not offend the sensitized,
grieving consumer. Everyone should.
For example, a few days after September 11th, an industry-related
e-commerce site sent its monthly email newsletter to consumers who
had signed up to receive it. I suspect the file had been created
long before September 11th, and no one thought to look at it before
it was emailed to who-knows-how-many subscribers. The email included
a pitch to buy photographs of New York, and there, prominently
displayed in the email, was a photo of the World Trade Center.
I'm not naming the site by name because surely the people running
the site couldn't possibly be that exploitative, calculated,
tasteless, stupid, or insensitive.
MISCELLANEOUS NEWS
YARN. The Craft Yarn Council of America cancelled the Knit-Out
and Crochet for New York City; city officials had urged the CYCA
to hold the event, as one more effort to return to normalcy, but it
was scheduled for the same time as the huge memorial service in
Central Park. The first Los Angeles-area Knit-Out and Crochet
was to go forward yesterday with Tiffany Windsor of the Craft
Home & Style tv series serving as MC.
YARN. A recent issue of People magazine had photos of
Tyra Banks, Darryl Hannah, and Justine Bateman, and the squares they
made for a Warm Up America! afghan. They and other actors
(Bridget Fonda, Brooke Shields, etc.) are contributing to the
afghan, which will be joined together by Los Angeles retailer Edith
Eig, then auctioned on eBay.
YARN. Michaels is encouraging knitters and crocheters to
donate a 7" x 9" square for the Warm Up America!
and Blankets for Canada campaigns. Then the stores will host
a community afghan-joining party the weekend of October 20. A
similar effort in January resulted in 1,820 afghans donated to
various non-profit organizations.
SHOWS. The ACCI show in Chicago will be three days,
with longer hours, instead of four. The 2002 show will be July
19-21, with educational events starting the 18th. The 2002 floor
plan and contracts will be mailed this week.
DESIGN. The Society of Craft Designers' recent
educational seminar, highlighted by presentations by Peter Russo and
Gloria Tracey, attracted 229 designers, up from last year, including
44 newcomers and some veterans who had not attended recently. Next
year's show is September 25-28 in Schaumburg (suburban Chicago),
Illinois. Call 740-452-4241; fax 740-452-2552; email scd@offinger.com;
visit www.craftdesigners.org.
SHOWS. The August TNNA Phoenix Needlecraft Market was
the largest ever with 117 exhibitors (an 8% increase), including 20
new exhibitors, and a 37% jump in attendance. ... Upcoming shows:
January 12-14, 2002 in San Diego; March 17-18, in Philadelphia; June
8-10 in Columbus, OH; and August 25-26 in Phoenix. Call
740-455-6773; fax 740-452-2552; email tnna.info@offinger.com;
or visit www.tnna.org.
PEOPLE. Popular industry veteran Howard Hoffman, formerly of Decoart,
has joined Toner Plastics as VP of Sales and Marketing ...
Christopher Pavain was promoted to President/COO of Craft House
International ... Lisa Oscarson, formerly of Jo-Ann's, is
VP of Business Development with Crafty Productions ... Don
Dow is President/CEO of Artograph. Paul Stormo has retired.
PEOPLE. CPE named Charles Smith as President/CEO, Richard
Carr III as VP of Sales and Marketing, and Rocky Mankins as VP of
Finance; appointed Joey Duncan to VP of Manufacturing and Charles
Evan to VP of Material Management, and hired Angela Phillips as
Sales Representative.
MICHAELS. Promoted Brenda Lugannani to VP/DMM of the Creative
Arts Division and Eric Dickenson to VP/DMM of the Crafts Division.
Brenda's responsibilities include art/memory, candles, books &
storage, and apparel. Eric's areas are general crafts, wood,
needlework & yarn, party, and kids.
AMES. Received approval from the court to use the $755
million DIP financing. The money will be used for daily operations,
including paying for goods shipped after the bankruptcy filing ...
The new stock symbol is AMESQ. It started trading at 25
cents.
WAL-MART. Said it expected September sales to meet its plan
of a 4-6% same-store sales increase. The company sold 316,000 U.S.
flags September 11-12.
RIGHT START. For the quarter ended August 4, the new owner of
Zany Brainy lost 26 cents/share on sales of $13.5 million. A
year ago, the loss was 66 cents/share on sales of $13 million.
Same-store sales fell 1%. In an announcement before September 11,
the company said it expected to become profitable later this fiscal
year. The store count is 67, plus the ZB stores.
HOME DEC. HomeBase becomes House2Home and its stock
begins trading under the new symbol, HTH, on the NYSE on
September 10. The changes are part of the conversion that closed the
company's 89 home improvement stores and converted 42 of them to its
House2Home home dec concept that will focus on outdoor living,
accessories, seasonal and party goods.
HOME DEC. Martha Stewart and Kmart are introducing 260
new Martha products for the home, including acid-free picture frames
and photo-storage products, mirrors, lamps, lampshades, clocks, and
candles.
QUILTING. The October issue of Rosie magazine includes
a wonderful article on creating a memory quilt from the clothes of a
deceased loved one.
STOCK. Soon after the August sales figures were announced,
Southwest Securities reiterated coverage of Michaels at Buy
and Merrill Lynch upgraded Michaels to Near Term Buy ...
After September 11, Lehman Brothers reiterated coverage of Wal-Mart
at Strong Buy, Goldman Sachs upgraded Wal-Mart to its Recommend
List, A.G. Edwards upgraded the stock to Accumulate, and
JP Morgan upgraded it to Buy.
PROMOTIONS. HIA just concluded its Celebrate The Seasons
consumer promotion as part of its ongoing branding/promotion effort.
The promo ran from September 16 to September 29 and obviously was
planned long before the terrorism on September 11.
MEDIA. The new season of the HGTV tv series, Simply Quilts,
will feature Sandy Bonsib's new book, Flannel Quilts, and
appearances by as many as 14 That Patchwork Place authors.
TNNA. New board members: Ken Bridgewater, Carol Gantz, and
Deborah Wilson. Retailers Maria Gornatti (Southwest) and Jan Stahl
(Midwest) were elected regional directors.
HALLOWEEN. Wizards (thanks to Harry Potter) tops the list of
the Home Sewing Association's subjects for Halloween
costumes. There's advice/ideas for consumers to sew costumes at the
HSA site, www.sewing.org.
WEB. Martingale has added a "Marketing Update" to
its website. Visit www.martingale-pub.com/info/Update.html.
AWARD. Winter Woods won the Business of the Year award
from the Ashland, Wisconsin Area Development Corp. and the Ashland
Chamber of Commerce. The company started in a cabin in Northern
Wisconsin in 1976 and has grown into a multi-million dollar business
with 35 full-time employees, 35 part-timers, and 40 seasonal
employees in two production buildings and five warehouses. Learn
more at www.winterwoods.com
... Reynolds Consumer Products won an American Graphic
Design Award for the packaging of its Creative Essentials
Bright Ideas line.
MEMORY. Attendance at the final Memories Expo of 2001,
in Orlando November 2-3, should not be hurt because most attendees
will drive. The lineup for 2002: March 8-9, Las Vegas ... April 5-6,
Chicago ... May 3-4, Somerset, NJ ... August 16-17, Columbus, OH ...
October 11-12, Denver ... November 1-2, Orlando ... The growing
consumer organization, Memories Community, named two new
Regional Directors, Jill Foley for the Southeast and Kim Luty for
the Northeast. Directors are still needed for the Midwest,
Northwest, and West. . Call 740-452-4541; fax 740-452-2552; email memories@offinger.com;
visit www.memoriesexpo.com.
MEMORY. Martha Stewart will demonstrate a Memory Hands
Keepsake Kit from Precious Impressions on her tv show
October 24. The kit contains the components to capture the
three-dimensional likeness of a baby's, child's, or adult's hands.
The kit is distributed by Darice; call 800-321-1494 ... Ellison
Craft & Design's Sandi Genovese will host a weekly
scrapbooking show on the DIY Network.
WEB. The Home Sewing Association redesigned its
website (www.sewing.org) so a
visitor can refer another sewing enthusiast to the site with the
click of a mouse; plus there's an updated search page to locate
stores and educators.
WEB. Hot Off The Press has a business-to-business area on its
website, www.craftpizazz.com.
Retailers can place orders, get the latest memory retail marketing
ideas, and even promote store events to consumers. Worth checking
out, but you need a code to access that portion of the site. To
receive your code, call Sally Ward at 800-227-9595.
WEB. Dow redesigned its craft site, www.stryofoamcrafts.com,
with 200+ new project ideas and an easier navigation system.
"The Dow Chemical Company has been very aggressive in driving
consumer awareness of all STYROFOAM brand products, and the
results are impressive," says Jim Scatena, President/CEO of FloraCraft.
"Most of our major accounts are showing double-digit sales
growth in the category this year."
EXPANSION. Gerson moved into its new, three-story office
complex, which is directly connected to the distribution facility.
The address for all Gerson divisions is 1450 S. Lone Elm Rd.,
Olathe, Kansas 66061. Call 913-262-7400; fax 913-262-3568. The
company also broke ground on its 250,000 sq. ft. addition to the
warehouse, which will double its size ... DecoArt has broken
ground on a 36,000 sq. ft. expansion to its warehouse, increasing
its size by 50+%.
QUOTATION. "There's a rhythm to knitting that can settle
the spirit and quiet you down." -- Actress Tyne Daly, in the
October 9 edition of Family Circle, which includes a how-to
for knitting a cap.
MERCHANDISING. The KB Toys chain is opening toy
"stores" inside 29 Sears stores. That's similar to
The Right Start chain opening Right Start departments inside
the stores of its new acquisition, Zany Brainy. Toys R Us
plans to expand its Imaginarium "stores" into all
of its 700 stores in 2002, according to Playthings magazine.
The idea is to leverage brand names and offer a new array of
products.
PAINTING. Priscilla Hauser's Decorative Painting Secrets
is now available from Sterling. Hardcover, 128 pages. $24.95
... Priscilla's lastest Plaid book is Priscilla Paints
with Daubers. $10.95.
CONDOLENCES. Our very best wishes to Larry Kennie on the
death of his father, Lloyd E. Kennie, who was one of the industry's
first retailers and later a salesman for Pittman Art Supplies.
Memorials can be sent to the American Diabetes Foundation, Ste. 309,
1060 N. Kings Highway, Cherry Hill, NJ 08034.
THE CREATIVE NETWORK: JOB OPENINGS
To see a sampling of the current job openings and to contact The
Creative Network, click on the "Jobs" button in the left
hand column.
LIFE IN MANHATTAN
Gail Czech of The Creative Network just returned from
Manhattan and sent this report:
On the plane to New York, I was seated with the former CEO of
Merrill Lynch, now retired and consulting. He said he didn't think
the economy would return to a high state for at least five years.
When we discussed the tragedy, his eyes changed and his voice
lowered. He has lived in Manhattan all his life and was proud to be
a New Yorker; his pain was very obvious.
He also felt they would never re-build two such tall towers again;
they would probably build four 50-story buildings instead.
We flew directly over the WTC site, still smoldering. It is
difficult to comprehand the immensity of the site.
The cab driver, from Pakistan, has lived in NYC for 20 years. He
said he had just picked up a fare at the WTC and was on the way to
the airport. Three of his friends (cabbies) were waiting at the WTC
behind him when he left; they are now among the missing.
The Friday rush-hour traffic was much less than usual. When I arrive
at the hotel, I discovered I was one of only 17 guests there for the
weekend and all the hotels are nearly empty. Each day I would leave
a dollar for the maid and she left me a thank-you note. Her husband
had been a maintenance worker at the WTC and is now missing; she is
struggling to make ends meet.
The unemployment rate in NYC is devastating, and I was told that
companies that lost their offices are temporarily, if not
permanently, moving to New Jersey or elsewhere. American Express
decided to move its entire operation to Stanford, Connecticut
permanently.
I visited two churches at different times and watched, listened, and
prayed. I saw people of all races -- business people coming to pray,
friends meeting and holding each other, mothers and their children
praying together. It was very humbling.
One sight with a huge emotional impact: the fire stations. There
were flowers, candles, pictures of the missing, letters, poems,
notes from school kids, and books to sign for all of us who are
hurting. The firefighters were consoling many of us, instead of us
consoling them.
The entire city had pictures of the missing, letters, and poems
posted wherever there was a highly visible spot. One child wrote,
"Please Stop the Sirens." There was a lovely impromptu
memorial of flowers, candles, and balloons right in the middle of
Times Square.
Street vendors had more flags for sale than I have ever seen in my
life. Flags were everywhere -- on buildings, windows, cars, vans,
all types of vehicles. On hats, clothing, and even on a dog sweater!
Patriotism and standing together were very much on display.
I walked through an empty Macy's on Saturday morning and bought a
skirt. The clerk was a young man from the Middle East. When I asked
him how he was, tears welled up in his eyes; he held my hand and
shared trembling words on how it has devastated his family. He is a
student but now may have to quit school.
A woman from Paris shared how it affected her and her family in
Paris and Singapore. She stressed prayer and faith and cried and we
held each other for a long time. I meet several tourists from Europe
who had many wonderful things to say about the support they offered
us. This disaster is so worldwide in scope, touching so many people.
Mayor Giuliani is a strong, positive influence. He is encouraging
everyone to come to NYC, support the arts, shop, and stay in the
hotels. We should think about not only the memorial funds being
raised, but also how we can give financial and emotional support to
the people. Two things I did not do: Go to "ground zero".
I didn't need to; I saw it in New Yorkers' eyes and faces. And I
didn't take any pictures; that would have been intruding on their
grief.
I was the one who was touched and was given much more than I could
give to the people of New York. I returned home humbled, but so very
proud to be an American!
LIFE (JUST) OUTSIDE MANHATTAN
Written by Karen Ancona, the Editor of CNA:
I doubt anyone who does not live in or near NYC can understand how
this is killing our business, ripping our hearts open, and causing
worry about the future. Trust me, this is massive financially, even
here in the Poconos. I am 65 miles away, but it's a community of
commuters.
My postman's brother is brain dead in a hospital in New Jersey; my
hairdresser's daughter, a floor marshal on the 76th floor of Tower
2, has had a nervous breakdown. Every family I know -- every one --
knows someone who lost his/her job since September 11. We all still
cry every day.
I am afraid I will break down when I see the new skyline for the
first time. I am not normally an emotional person, and assumed I
would get over this by now. I haven't.
CNA's writer, Michelle Temares, lives in Garden City, on Long
Island, which is the hardest hit. She will be attending funerals for
three weeks. Imagine: these are not old people who died. Imagine:
three weeks of death.
When I was babysitting at my son's home in New Jersey, a man came to
the door with a small bag and a note. He said it was a thank you for
Chris and Kristine for contributing $200 to the Red Cross in memory
of his mom, who died in Tower 1. He cried, I cried. The little bag
contained a red, white, and blue votive candle.
When Chris and Kris came home they spent 30 minutes talking to Matt
(age 9) about this man and his mom. Matt plays with the man's kids
and knew what had happened. Matt hugged me and said he was so glad I
did not work in the Towers.
I started my "Viewpoint" column for CNA 12 times in
as many days. It was the most difficult thing I have ever written. I
feel certain the financial impact of this will be severe, long
lasting, and worldwide. I hope the sympathy, empathy, and
brotherhood hold out.
Just imagine the janitors, the taxi drivers, the kitchen workers,
the doormen, the maids, the newspaper vendors, the street people,
and the people who cannot go home in Battery Park City. They are
looking for homes and I am thinking about taking someone in.
REMINDERS
1. Paid subscribers are invited to have their website
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for improvement. Just email mike@clnonline.com
or ljc@carlislecommunications.com.
2. If you want a hard-copy of this issue, click on
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4. If you want to recommend CLN to a friend, use the
"Tell Your Friends" box on the home page.
5. Creative Leisure News is published on the first and
third Mondays of each month. Your next issue will be Monday,
September 17th.
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