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Creative Leisure News
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Email: mike@clnonline.com
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Date:
August 19, 2002 TABLE OF CONTENTSCOMMENTARY: WORKING FOR THE FUTUREWell, since our 401K's are now 201K's, and we've pushed back our retirement until about age 85, maybe we should pay more attention to the long-term effects of our business practices. We're going to be here a while, folks. Let's make sure what we do today lays a strong foundation for the future. Ames used to beat up vendors something terrible, to make this quarter look better. Look how successful that policy was.
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AMES TO SHUT DOWNAs we reported last week, Ames announced it would close its 327 stores and liquidate everything. The move came after the creditors appealed to the bankruptcy court to order the liquidation, the Wall Street Journal reported. In about 10 weeks, the stores close for good and approximately 21,500 employees will lose their jobs.In June 1999, Ames' stock reached a high of $48.50 and had sales of almost $3 billion. Then the slide began and by the recent ACCI show, Creative Leisure News heard Ames' vendors say they all had the chain on a tight credit leash. Consequently, we do not expect most industry-related vendors to have serious problems caused by the demise of this once-powerful retailer.
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LESSONS TO LEARN FROM AMES1. The Ames' demise is a classic case of history repeating itself. In 1988, Ames bought the Zayre discount department store chain, and ended up in bankruptcy. Joseph Ettore was brought in and he led Ames out of bankruptcy to growing profitability. Then Ames bought the Hills chain -- and the process started all over again, resulting in another Chapter 11 filing about a year ago.2. It makes you wonder, didn't anyone at Ames remember history? But the turnover rate at many chains is so high, perhaps all the employees from the Zayre period were no longer at Ames when the Hills acquisition was discussed. 3. Why was the Hills acquisition a disaster? A former Ames buyer told us the problem was a difference in philosophies. Hills' customers were used to everyday low prices. Ames' strategy was somewhat higher prices, but with lots of sales. When the stores were converted to the Ames format, customers found, in effect, higher prices on many items. Not a good first impression. Hills was very strong in certain categories, such as toys and cosmetics; Ames wasn't -- yet more disappointment for Hills' customers. 4. It was just three weeks ago that Ames announced, with great fanfare, the introduction of "Dollar Bargains" departments in each store. So much for that idea. 5. When Ames went bankrupt the first time, two vendors who were seriously hurt were distributors -- Craft World, then probably the most powerful company in the industry, and Notions Marketing. The Ames' bankruptcy set off a cash flow problem for Craft World, from which it never recovered. Notions, however, has always been a very conservative, un-flashy, quiet company. It not only survived the Ames "hit", but is stronger today than ever. 6. In March 2000, Ames announced a net profit for the fiscal year of $60.8 million, up 26.4% from the previous year. Apparently, that wasn't enough. 7. Over the years, Ames had the reputation among our industry's manufacturers of being THE most difficult retailer to deal with. Now, Ettore seems to be blaming vendors ("slow shipments") in part for the demise of the chain. Here's the lesson for retailers: if you treat vendors badly and squeeze their margins to the breaking point, don't expect much help from them if you get in trouble.
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THE POST-AMES CRAFT INDUSTRY: PREDICTIONS1. Look for Wal-Mart's craft department to benefit more from the demise of Ames than nearby A.C. Moore, Michaels, Jo-Ann's, Rag Shops, or independent stores. Any consumer halfway serious about crafts wasn't shopping in Ames anyway.2. Ames stores are much larger (about 80,000 sq. ft. or more) than most of our industry-related chains, so I don't see many of Ames' store locations being snapped up by the likes of A.C. Moore, etc. More likely, our chains may hire some of Ames' store managers. 3. The investment community will not look at the Ames' liquidation as a black mark on the craft industry. In fact, the stock of most of the industry-related chains has risen substantially after the Ames announcement. 4. The insider trading scandal regarding Martha Stewart couldn't have come at a worse time for Kmart, now under investigation by the SEC, FBI, and grand juries. Martha's products were one of the few bright spots for Kmart, so Martha's stock troubles just decrease the chances of Kmart surviving. Last week Kmart appealed to the bankruptcy court to change its loan agreement with its creditors so that it may increase the size of the loss it could report, and to increase its line of credit, Chain Store Age reported. Slow sales is the problem. End result? Wal-Mart will be more powerful than ever. A new report, The Age of Wal-Mart -- produced by Retail Forward, a global retail management consulting/research firm -- predicts Wal-Mart may double in size in the next five years. And that report was unveiled before the most recent Ames and Kmart news. "The vendor community is becoming increasingly concerned about Wal-Mart becoming Whale-Mart," Burt Flickinger III of the consulting firm, Reach Marketing, told Retail Merchandiser.
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JULY SALES: CRAFTS REMAIN HOTOnce again our industry's public companies out-performed general retailing. "July sales are soft and we relate this to the fact that there is very little hiring going on. People will buy what they need, not what they want," said Kurt Barnard, publisher of Barnard's Retail Trend Report, to Reuters.The Bank of Tokyo-Mitsubishi publishes a monthly tally of 81 retailers and reported that same-store retail sales rose only 2.6% in July, worse than a year ago when many consumers had recently received tax rebate checks. Hancock. Same-store sales rose 6.9%, and total sales were $28.6 million, up 1%. For the second quarter ended Aug. 4, total sales were $92.8 million, up 6.9% and same-sales rose 7.3%. Jo-Ann's. Same-store sales rose 6.7% and overall net sales rose 5.6% to $105.2 million. Net sales for the second quarter ended Aug. 3 increased 7.1% to $353.7 million, and same-store sales rose 7.7%. Officials now expect the quarterly diluted earnings/share to range from $0.05 to $0.10, and the year's earnings/share to be $1.80 - $1.90, higher than previously expected. Jo-Ann's will release its second-quarter earnings tomorrow, and execs will hold a conference call at 10 am EDT. To listen, visit www.joann.com, scroll down and click on "About Jo-Ann," then "Our Company," then "Investor Relations," then the "Conference Call" icon. It will be archived, too, in case you can't listen to the live call. Michaels. Same-store sales jumped 11%, three percentage points more than previously forecast. Total sales rose 20% to $191.4 million for the month, and 19% to $576.7 million for the quarter. Same-store quarterly sales rose 9%. CEO Michael Rouleau said, "The investments we have made in our systems and infrastructure are really starting to pay off, and we're in great shape as we enter the fall and holiday seasons." As a result of the higher than expected sales, officials raised their earnings estimates by two cents to $0.18/diluted share for the quarter and $1.94 for the year. During the month the company also repurchased 392,000 shares of its common stock. Michaels will release its second quarter earnings results on August 28, and will host a conference call at 4 pm CDT to discuss them. To listen or participate, call 973-633-6740 or access the call at www.michaels.com. A replay will be available until Sept. 6 at the site or by calling 973-341-3080 and using PIN 3121473. Wal-Mart. Same-store sales rose 5.0%. For the quarter ended July 31, total sales were $59.7 billion, up 13.1%, and net income for the quarter was $2.038 billion, up 25.6%. Earnings/share were $0.46, up 27.8%, a penny higher than previously expected. Duckwall/ALCO. Same-store sales decreased 2.6%, but officials cited crafts as a particularly strong category. Total sales fell 1.2% to $27.8 million.
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HIA'S FROZEN ASSETS: AN UPDATELast month's edition of Horizons, the Hobby Industry Assn.'s member newsletter, contained an update on HIA's reserve assets that are frozen due to a Securities and Exchange Commission investigation of Bentley Financial Services, the firm HIA had used. Here's a brief summary:1. Last October, the SEC filed a complaint against a Robert Bentley, Entrust Group, and Bentley Financial Services of Paoli, PA. The SEC asked the court for an injunction freezing Bentley's assets and stopping the company from further business. The court granted the injunction, which froze about $2.4 million in HIA reserve assets. The SEC charged Bentley with taking investors' money and buying certificates of deposit with longer maturation dates and higher interest amounts than they were telling investors. As we understand the SEC complaint, the scheme would work like this: An unsuspecting investor thinks he's buying a $1,000 one-year CD that pays 5%. But Bentley buys a two-year CD that pays 6%. As long as Bentley has the $1,050 on hand to pay off the investor a year later, Bentley can eventually pocket the higher interest payment. And the investor never knows. HIA, which had been investing through Bentley since 1994 and always received the appropriate interest and the principal, was not alone in this. According to the SEC, "investors include numerous small banks, credit unions, and individual investors. Defendants' records show that they have, as of mid-September 2001, at least $318 million of such notes outstanding which have been issued to more than 3,000 investors." 2. In January, Alan Rosskamm, then president of the HIA board of directors, informed the membership of the problem at the HIA annual meeting. Rosskamm said these were reserve assets and would not affect the year's programs or services. 3. In March, the receiver appointed to the case announced that more than 95% of investor's assets were covered by Bentley's portfolio. 4. July 31 was the deadline for all investors to file claims, so a resolution is in sight. No firm date yet, but it's in sight. (Note: There is a website established by the court-appointed receiver, which contains all of the court filings. Visit www.bfscorp.net/default.asp?S=18707.)
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NEW STUDY: CRAFTS AID CLASSROOM LEARNINGKids learn better if craft activities are used to reinforce the classroom curriculum. That's the conclusion of The Academic Value of Hands-on Craft Projects in Elementary Schools, a new study commissioned by the Hobby Industry Assn. and conducted by Rockman et al, an independent educational research firm.Examples include building a model of an erupting volcano in science class, and hand dipping wax candles during a unit on life in colonial America. Some conclusions of the study: 1. Almost three-fourths (72%) of the teachers indicated they intentionally link their instructional units involving hands-on projects to state or national curriculum standards. 2. Students who spent a greater proportion of their classroom learning time engaged in hands-on projects scored significantly higher on writing and drawing knowledge application tasks designed for the study. The findings are uniform in a wide variety of subjects including math, science, social studies, and language arts. 3. Students develop greater curiosity about the subject matter when hands-on projects are incorporated. Teachers reported increases in student motivation, willingness to ask questions and volunteer information, enthusiasm, and attention to assigned tasks. 4. Teachers say learning through hands-on projects is particularly well suited for students who learn more effectively in non-traditional approaches -- such as visual or kinesthetic learners, slow readers or writers, or non-native English speakers. 5. Student behavior and socialization skills -- including cooperation, responsibility, dedication, confidence, and time management skills -- improve when hands-on projects are undertaken. The Executive Summary and the full report are available at www.hobby.org.
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CLN'S 2003 BUDGET SERIES, PT. I: INSURANCE COSTS(Note: This begins our series designed to help you work on your budget for next year. In our next issue, Part II will discuss the costs of trade shows.)Just about the only complaint Hancock CEO Larry Kirk mentioned in the company's quarterly report was rising health insurance costs. Welcome to the club, Larry. There are no solutions to the problem, but here are some actions many companies are taking: 1. Increase the employees' co-pay. Morale could be a real factor here, since hikes in employees' insurance costs could negate their raises. 2. Elicit bids from various insurance companies. The bids should be very specific about what is, and is not, covered. 3. Increase the amount of the deductibles so the insurance company doesn't have to start paying quite so soon. 4. Evolve to more part-time employees, which is what Home Depot is doing. According to Chain Store Age, the hardware giant is evolving to a 50-50 full/part-time ratio. The price paid for such a move is higher turnover, poorer customer service, and higher training costs. Here's a new twist: some insurance companies are now offering a lower-cost option for drug benefits: The company decides which drug you should take. (Here we are, with the world's best medical care available to us, and we're letting accountants decide our drug prescriptions.) TRENDS: THE JOB MARKET HAS CHANGED(Note: This issue of Creative Leisure News includes a new feature, "Trends." Each issue will include a report from an industry expert on trends in appropriate product categories, retailing, television, magazines, and so on. In our next issue we'll report on design trends from the recent New York Gift Show.This first entry is by Gail Czech, President of The Creative Network, the industry's only personnel recruitment firm that specializes in our industry. Gail has worked for a number of industry companies before starting her own company, and is the former president of the ACCI board of directors.) In the past 18 months, the hiring process has taken a dramatic turn; candidates would have multiple job offers presented to them. They were certainly in a solid position to negotiate a strong benefits package and salary. They had a number of choices and made decisions based not only on the position and package, but on family and personal issues as well. Today's climate is certainly different. Numerous companies have downsized and/or trimmed their budgets since the economy started to weaken in March 2001. The tragic events of 9/11 made it worse, and now all the revelations of corporate corruption add to the problem. At the moment, companies are in the driver's seat. We are finding that companies who are hiring are very specific about what skills are needed and desired in order to fill a position; consequently, they tend to be moving slowly and cautiously during the interviewing and hiring process. Plus, salaries are being capped, and little negotiation is being allowed. This is almost a 360-degree turn around from only a few months ago. The overall unemployment rate is dropping; however, with the economic climate as it is, returning to the days of the candidate calling the shots appears to be a long way off. But the good news is, companies are beginning to hire again. My suggestion to job hunters is to network, network, network. If they are working with a recruiter such as The Creative Network, be sure to communicate what you are doing and whom you are contacting, so you do not step on each other's toes. Be persistent but do not be a pest. Know where your strengths lie and what your greatest skills are. Pursue appropriate companies and opportunities diligently. Do not accept a job and continue to search for another, unless you let the first company know, up front, that is your intention. Many companies understand this, but also need help, even if it is temporary. Once you have interviewed, send a thank you note immediately to each person you interviewed with. Most of all, understand job hunting is, overall, a slow process; be patient. (For more information on The Creative Network, click on the "Jobs" button or see below.)
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EMAIL: FIXING THE BROKEN PRICING MODEL(Note: We received the following email from one of the industry's leading manufacturers.)It's an increasingly serious challenge for craft industry manufacturers, importers, and distributors. In recent years, prices have been on a downward spiral. Add to that increasing rebates, co-op allowances, and other "entitlements". All of this is putting a strain on the industry's business equation at a time when the public companies in our industry are demanding bigger margins and higher returns on investment. Unless that formula is reversed, it is going to be unattractive to invest much-needed capital, especially in consumer support and educational programs that increase the desire and drive the demand for our products. -- Name withheld by request (Note: Any thoughts on this? Are chains becoming too demanding or simply requiring vendors to become more efficient? Call 309-925-5593 or email your thoughts -- on or off the record -- to mike@clnonline.com.)
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RANDOM NOTES, RANDOM THOUGHTS1. C&T Publishing has contributed almost $24,000 to the Families of Freedom Scholarship Fund to benefit surviving children and spouses of those lost in the 9/11 tragedy, as well as individuals with permanent disabilities as a result of the disaster. The money raised represents profits (the first of semi-annual payments) from America from the Heart: Quilters Remember September 11, 2001, published by C&T in May. The book is a softcover catalog of 277 quilts made in the immediate aftermath of the tragedy and displayed in Houston at the Quilt Market and Festival. The exhibit, curated by Karey Bresenhan, is currently on tour in the U.S. and abroad. Former President Bill Clinton and former Senator Robert Dole are co-chairs of the Families fund. For more info, visit www.ctpub.com, www.quilts.com, and www.familiesoffreedom.org.Any other companies doing anything special for the 9/11 anniversary? If so, let me know and I'll report it. Email me. 2. I'm hearing unconfirmed rumors that a well-known chain is looking at the possibility of testing the concept of opening a scrapbook specialty store. No confirmation yet, so don't count on it. But if it is true, it's yet another sign that some experienced, savvy retailers think scrapbooking is here to stay, and not just another macrame that fades over time. 3. Our very best wishes to Paul Mackey, who's retiring as president of Prym-Dritz effective Sept. 30. Paul worked for the Prym Group for 40 years and served as president of Prym-Dritz since 1988, when Prym purchased Dritz. Under Paul's leadership, Prym-Dritz has grown and diversified -- purchasing W.H. Collins, Omnigrid, and Dal-Craft. Apart from what he's done for Prym-Dritz, his contribution to the industry as been substantial. He was president of the Home Sewing Assn.; served on the Hobby Industry Assn. board; chaired HIA's Market Research Committee at a time when the Committee made major changes in the way it conducted research; and he currently serves on the board of Sew America!. Thanks, Paul. 4. I'm also hearing stories of employees at the Ames headquarters reacting very bitterly to their treatment regarding the company's demise. If it's any consolation to them, many of the Woolworth employees heard about the Woolworth death on the radio as they drove to work.
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MISCELLANEOUS NEWSHERO. Congrats to Keenan Darnell, a maintenance worker at Gerson. The other day he left for work 15 minutes early. No reason, he just did. While driving on the Interstate, he noticed a lady frantically trying to flag down the fast-moving traffic. Keenan stopped, discovered the woman's friend was in labor in her truck, and ended up delivering a baby girl. Then he waited, holding the baby in his arms, until the paramedics arrived. When everyone was safe and sound, Keenan resumed driving to Gerson's facility. Mother and daughter are doing fine -- and Keenan still doesn't have any earthly reason why he left early for work.SURVEY. Highlights of a June survey HIA conducted at its consumer website, www.i-craft.com: More than 80% of 1,241 respondents reported they shop for crafts at least once or twice/month; 28% shop once or twice/week ... 63% spend $20+ during a visit to the craft store ... Key factor in shopping/purchasing: Price, 76% (of respondents); Variety of items, 57%; Sales, 44%; and Convenience (39%) ... Major categories purchased: General Crafts, 59%; Painting/Drawing, 32%; Scrapbooking, 31%; Needlework, 27%. HIA conducts surveys each month at the site. ACQUISITION. Rupert, Gibbon, and Spider/Jacquard Products acquired Versatex of San Rafael, CA. Jacquard President Michael Katz stated, "This is a logical and strategic combination of product lines that will complement Jacquard's lineup of products. The addition of a screen print line from Versatex will broaden what Jacquard offers for printing on paper and fabric. A new marbling color line will be introduced as a result of this merger. The Versatex Airbrush line will be slowly phased out with no other changes planned for the Versatex product line at this time." JOB OPENINGS. Thanks in part to the success of its Creative Hands brand for kids, Fibrecraft (suburban Chicago) is looking for a Marketing Manager, Marketing Coordinators, and Product Development Coordinators. For more info, email hr@fibrecraft.com. PLAID. Announced partnerships with key European distributors: W. Williams & Son Ltd. and Design Objectives in the United Kingdom, AVEC in The Netherlands, and Hobbygross Erler GmbH in Germany. Retailers who had purchased products from Plaid's now-closed distribution facility in Rotterdam can now order through these companies. TRADE SHOWS. The Assn. of Crafts & Creative Industries and the Art Glass Suppliers Assn. are both offering "booth price protection". ACCI exhibitors who return contracts by Nov. 1 will pay 2002 prices. After Nov. 1, a 5% increase goes into effect. AGSA exhibitors have until Dec. 1 to return contracts to avoid a 5% increase. The shows will run in conjunction at the Rosemont Convention Center in suburban Chicago, and a badge from either show gains entrance to both. ACCI runs July 18-20, with education beginning on the 17th. AGSA is July 18-20, with education beginning the 16th, and will be open to the public (the AGSA show, not ACCI) July 19-20. For more, call ACCI at 888-360-2224 or 740-452-4541, or visit the website, www.accicrafts.org. Call AGSA at 888-866-2472 or 740-452-4541, or visit www.agsa.org. CRIME. The recent media attention about abducted children (even though the national rate has declined) has reached our industry. Last week, a month-old infant was taken from a van in a Wal-Mart parking lot in Abilene, but the kidnapper was caught and the baby returned safely the following day. KMART. The U.S. Attorney's Office impaneled a federal grand jury in Detroit as part of its probe into the bankrupt discounter. More than 20 subpoenas have been issued for witnesses, and bank records, the Associated Press reported. REMINDER. The 5th annual Knit Out & Crochet events are coming up: Sept. 22 in Washington, D.C.; Sept. 29 in Los Angeles; and Oct. 6 in New York and Boston. There are numerous other sites around the country, too. Wal-Mart is participating in a big way this year. On Oct. 12, the stores will have posters, learn-to-crochet kits, free knitting instructions, the cashiers wearing special buttons, etc. For more, visit www.knit-out.com. PEOPLE. Prym-Dritz promoted Johan Starrenburg as president, replacing Paul Mackey, who retires Sept. 30 (see "Random Notes, Random Thoughts", above). Starrenburg joined the Prym organization in 1987, and has recently served as operations vp. SCRAPBOOKING. Teen People magazine has a piece, "How-To: Make a Scrapbook," in its August issue. Fun Facts Publishing, which has an excellent newsletter full of tips for scrapbook retailers, suggests taking the article to your local paper to see if it will run a piece on local teens (who visit your store). Visit www.funfactspublishing.com ... Unusual stat of the month: If all of the copies of one of Design Originals' Punchin' books (#5044) that have been sold were laid end-to-end, they would stretch 25 miles. GIFTS. According to a new report from Unity Marketing, gift industry sales fell 1% to $54.6 billion in 2001. The Gifts and Decorative Accents Report, 2002: The Market, The Competitors, The Trends said collectibles dropped 9.3% in 2001 to $6.5 billion and seasonal items fell 5% to $3.7 billion, but greeting cards/stationery rose 2% and home dec accent pieces rose 2.2% to $16.9 billion. QUOTATION. "A significant consumer trend that will play out in the gifts and home decoratives market, as well as many other consumer product categories, will be a reaction against our increasingly technology-driven culture. As their lives become more virtual' and dependent upon computers and technology, consumers will seek out gifts and decorative accents which will help ground them in the real world. The new touchstone for consumer marketers is to make their products more REAL, more concrete, more solid, more grounded in reality." -- Pam Danziger, president of Unity Marketing and author of Why People Buy Things They Don't Need (Ithaca, NY: Paramount Market Publishing, 2002); www.whypeoplebuy.com. TRADE SHOWS. How about a trade-show-within-a-trade-show? Next February, Toy Fair will incorporate the Doll & Teddy Bear Artists' Showcase of New York at the Javits Center Feb. 16-19, Playthings magazine reported. Dolls magazine produces the Doll show, which is for small producers, even artisans, of dolls and teddy bears. It will have a special section, "Artists' Showcase", in the Collectible Dolls area of the Javits Center. The 2002 Toy Fair attracted 14,000 buyers, sponsors say. For more on the 2003 event, visit www.toy-tia.org/AITF or call fax-on-demand at 212-675-1540. DESIGNERS. The annual Education Seminar of the Society of Craft Designers, "Designing for the Ages," is Sept. 25-28 in Schaumberg, IL, near Chicago's O'Hare airport. Highlights include the "Designers' Showcase" (designers display their designs to manufacturers, editors, and publishers) ... "Manufacturer/Publisher Showcase" (where corporate members display products and designers can sign up to receive them) ... "Creativity Time" (designers enjoy hands-on use of manufacturers' products) ... Private conferences with editors, publishers, and manufacturers ... Certification testing for designers ... 15 Manufacturers' Technique Classes ... 9 Business Seminars. For more info on the Seminar, call 740-452-4541 or email scd@offinger.com. For more info on SCD, visit www.craftdesigners.org or click here. MAGAZINES. Primedia has sold Doll Reader and Teddy Bear and Friends magazines to Ashton International Media. Primedia publishes a number of industry-related magazines, including Crafts, Craftrends, Creating Keepsakes, Sew News, and others. SHOWS. The Miniatures Industry Assn. of America show is Sept. 22-23. Call 740-452-4541; fax 740-452-2552; email miaa.info@offinger.com; or visit www.miaa.com.
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BUSINESS PROFILES: BAGWORKS, INC.BagWorks was born in the early 1970's and was discovered and purchased by Tom & Suzy Ware in 1989. Since their background was in the crafts industry, and fabric painting was the hot new craft, they took BagWorks heavily in that direction. The strategy worked; the business is now over thirty times the size it was the year before they bought it.(We won't say how long Tom has been in crafts, but he remembers grape clusters, Anton Peck decoupage purses, and macrame plant hangers.) Another industry veteran, Ed Baker, joined the company in 1998 as Vice President. BagWorks manufactures and imports bags, aprons, home decor, seasonal, and other basic fabric items -- Soft Surfaces for Decorating. The company has several thousand accounts consisting of chain stores, distributors, mail and web order companies, independents, and professional crafters. BagWorks serves both the domestic and international markets with high quality, value-priced products and quick delivery. As part of the company's customer relationship management program, BagWorks will work with major customers' projections, and will stock goods for delivery within 72 hours of order receipt. Most customers that have used this service have seen their sales and return-on-investment numbers increase dramatically. BagWorks also has the capability to imprint textiles using screen-printing and embroidery to embellish their bags and aprons for businesses throughout the country. In addition to craft items, the company manufactures and sources internationally a wide range of custom and private label products. A new catalog of stocked domestic products will be available in late August. A brochure on stocked import items is also available. BagWorks has a web site at www.bagworks.com where businesses can sign up for B2B (business to business) purchasing. Rolodex: BagWorks, Inc., 3301 South Cravens Rd., Bldg. C, Fort Worth, TX 76119. Call 800-365-7423 or 817-446-8080; fax 800-678-7364 or 817-446-8105; email info@bagworks.com; or visit www.bagworks.com. (Note: Creative Leisure News will profile one company per issue. It could be a manufacturer, retailer, distributor, importer, service provider, or organization. For more information about having your company profiled, call Mike Hartnett at 309-925-5593 or email mike@clnonline.com. To see Profiles from earlier issues, click on the "Business Profile Archives" button.) THE CREATIVE NETWORK: JOB OPENINGSTo see a sampling of the current job openings and to contact The Creative Network, click on the "Jobs" button in the left hand column.
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THE CLN RETAIL INDEXA. C. Moore (ACMR). Last*: 18.75 ... Change**: +3.68Ames (AMES). Last*: 0.00 ... Change**: -0.10 Hancock Fabrics (HKF). Last*: 16.75 ... Change**: +2.25 Jo-Ann Stores (JAS.A) [a]. Last*: 29.70 ... Change**: +5.80 Michaels (MIK). Last*: 40.55 ... Change**: +8.01 Rag Shops (RAGS). Last*: 4.09 ... Change**: +0.29 Wal-Mart (WMT). Last*: 53.79 ... Change**: +7.69 CLN Retail Index. Last*: 163.631 ... Change**: +20.3% Dow Jones Index. Last*: 8,778.06 ... Change**: +5.6% *Aug. 16 ** from Aug. 2 [a] voting share Prices are exclusive of dividends
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A CAUTIONARY TALE FOR THE TIMES(Emailed from a friend)A Japanese company and a U.S. company decided to have a canoe race. The U.S. team practiced hard and long, but lost by a mile. Afterward, the depressed U.S. team decided they had to find a reason for the crushing defeat, so a senior management team was formed to investigate. The management team immediately hired an expensive consulting company which advised management that too many people were steering the boat, while not enough people were rowing. The consultants completely reorganized the rowing team into four steering supervisors, three area steering superintendents, and one assistant superintendent steering manager. They also implemented a new performance system that would give the one person rowing the boat greater incentive to work harder. It was called the "Rowing Team Quality First Program," with meetings, dinners, and free pens for the rower. "We must give the rower the empowerment and enrichments through this quality program," said the consultants. The next year the Japanese won by two miles. Humiliated, the U.S. management team laid off the rower for poor performance, halted development of a new canoe, sold the paddles, and canceled all capital investments for new equipment. Then they distributed the money saved as bonuses to the senior executives.
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REMINDERS1. For more information on how your business can be the subject of a "Business Profile", call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.2. 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. 3. If you want a hard-copy of this issue, click on "Printer Friendly version". 4. If your company is a paid subscriber, everyone in the main office is welcome to register, free. 5. If you want to recommend CLN to a friend, use the "Tell Your Friends" box on the home page. 6. Creative Leisure News is published on the first and third Mondays of each month. Your next issue will be Monday, September 2.
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