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


Creative Leisure News
2677 Ashley Ct.
Tremont, IL 61568
Phone: 309-925-5593
Fax: 309-925-9068
Email: mike@clnonline.com

 

 


Date: October 1, 2001
Vol. V, No. 19

Printer Version

TABLE OF CONTENTS

bulletCommentary: Helping America
bulletThe Effect on Our Industry
bulletStrategies To Implement -- Now
bulletThe Industry's Efforts To Help and Heal
bulletWall Street and Our Industry
bulletMore Personal Comments
bulletWebsites of Interest
bulletRandom Notes, Random Thoughts
bulletMiscellaneous News
bulletThe Creative Network: Job Openings
bulletLife in Manhattan
bulletLife (Just) Outside Manhattan
bulletReminders

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.

[ top ]

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."

[ top ]

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.

[ top ]

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.

[ top ]

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%.

[ top ]

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."

[ top ]

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/.

[ top ]

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.

[ top ]

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.

[ top ]

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.

[ top ]

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!

[ top ]

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.

[ top ]

REMINDERS

1. Paid subscribers are invited to have their website evaluated by Lynn Carlisle of Carlisle Communications. She'll check the site and provide a confidential assessment and suggestions for improvement. Just email mike@clnonline.com or ljc@carlislecommunications.com.
2. If you want a hard-copy of this issue, click on "Printer Friendly version".
3. If your company is a paid subscriber, everyone in the main office is welcome to register, free.
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.

[ top ]
xxx