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Creative Leisure News
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Date: September 2, 2002 TABLE OF CONTENTSCOMMENTARY: FLAT SALES = LESS INTEREST?I recently talked to a successful scrapbook retailer in the Midwest, who says his business is "way down." Store traffic appears ok, but his average sale is down, and stickers and paper now comprise a higher percentage of his total sales. Here's why, I think:The hardcore scrapbookers have already purchased the higher-ticket items. They have their carry-all and their 10 pairs of scissors. They may be scrapping as much as ever, but now they only need to buy consumable items. The retailer's problem: he needs to attract novices who haven't yet purchased the more expensive products. That's easier said than done, given the number of other memory independent stores, plus the chains, the Creative Memories home parties, and the e-commerce sites. This process is true for most hobbies. Once novices discover the joy of a particular hobby, they buy the tools -- a camera, a table saw, a sewing machine. From that point on, they only need to buy film, wood, or fabric. When a trend is new, retailers don't have to work very hard to attract novices to their stores. Once the trend is established, however, the challenge becomes very real.
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ELIZABETH WARD JOINS CREATIVITY INC.Creativity Inc. announced that Elizabeth Ward (Blue Moon Beads) has joined Creativity's team of industry companies -- Westrim Crafts, Crop in Style, and DMD Inc. Creativity is a holding company based in Menlo Park, California.Elizabeth Ward Gosselink, owner of Elizabeth Ward, will join Creativity in a senior management position, focusing on sales, marketing, product development, and design for the Blue Moon Beads brand of jewelry-making products. Westrim will manage the warehouse, distribution, and supply-chain management of the Blue Moon Beads brand of products starting in January. Until that time, Blue Moon Beads products will be ordered in the current manner and shipped from the existing facility in Kensington, Maryland.
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MICHAELS: PROFITS MORE THAN TRIPLENet income for the quarter ended Aug. 3 was $21.5 million, a 357% increase. Earnings/share were $0.30, 23 cents higher than a year ago and 11 cents higher than analysts' consensus. Total sales rose 19% to $576.6 million and same-store sales were up 9%.CEO Michael Rouleau said, " ... while we are very pleased with our current financial performance, the real sales and profit benefits of the significant investments we have made in our infrastructure are still ahead of us and give us great confidence in our future." Execs during the conference call listed books, kids, crafts, ribbon, wearables, art supplies, and even seasonal as the strongest categories. They also reported that customer traffic increased 5% and the average purchase rose 4% percent ... The stores will decrease their in-aisle displays by 20-25% next year because focus groups complained that the aisles were too crowded. How did Wall Street react? Michaels' stock jumped more than $5 the day after the late-afternoon conference call with analysts. During the quarter Michaels opened 18, closed two, and relocated one Michaels store. It also opened seven, closed two, and relocated one Aaron Brothers store.
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JO-ANN'S: BREAKING A 20-YEAR RECORDFor the second quarter ended Aug. 3, net income was $2 million ($0.10/diluted share), compared with a net loss of $16.1 million (-$0.88) a year ago. Net sales rose 7.1% to $353.7 million and same-store sales increased 7.7%.This is the first time in more than 20 years that Jo-Ann's made a profit in the second quarter, historically its worst quarter of the year. Officials attributed the improvement to strong sales and better margins. (Note: a year ago, Jo-Ann's was in the midst of its "SKU Reduction Initiative" clearance sales, which boosted sales but lowered margins. So the improved margins were expected, but the strong sales, compared to a year ago, were impressive.) Chair/CEO Alan Rosskamm said, "The entire sewing and craft sector is performing extremely well, benefiting from a long-term trend toward home-based activities." Execs expect same-store sales to grow at a 3% rate for the reminder of the year, which should generate earnings/diluted share in the $1.80 to $1.90 range. However, officials warn that the fourth quarter will have six fewer selling days between Thanksgiving and Christmas, and the 2001 holiday season lost very few days to inclement weather. During the second quarter, Jo-Ann's closed six and relocated two traditional stores. No stores were opened. Execs expect to close another 20 - 25 traditional stores, primarily in the fourth quarter, but said in a conference call that they plan to open about 15 etc stores next year. The current store count is 875 traditional stores and 70 Jo-Ann etc superstores.
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HANCOCK: PROFITS MORE THAN DOUBLENet earnings for the quarter ended Aug. 4 were $1.5 million ($0.08/diluted share), up from $590,000 ($0.03). Overall sales rose 6.8% to $92.7 million; same-store sales rose 7.3%.CEO Larry Kirk said gross margin had improved, while expenses as a percent of sales declined. The store-within-a-store home dec concept is now installed in 225 stores and should be in 300 stores by year's end. Quilting sales have improved and the home dec category now comprises 29% of sales, up from 25%. Hancock launches a new cut-to-order program for special-occasion merchandise this month. During the quarter, Hancock opened 6 stores and closed 7. The current store count is 436 in 42 states.
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HIA RESEARCH: CONTINUED INDUSTRY GROWTHThe industry continued to grow in the second-quarter, according to the quarterly update to the 2001 HIA Nationwide Craft & Hobby Consumer Usage and Purchases Study conducted by Ipsos/NPD and commissioned by the Hobby Industry Assn.Total annual sales from July 2001 to June 2002 were $26.7 billion. Needlecrafts and painting/finishing increased in the second quarter of 2002 compared to the first quarter of 2002, while sales in florals and general crafts declined slightly, but all categories in the second quarter grew compared to the second quarter of 2001, the research indicated. "Through the first six months of 2002, all signs are pointing toward another successful year," said HIA Executive Director Pat Koziol. HIA members can find the Q2 2002 Update at the member level of the website at www.hobby.org. Non-members may purchase subscriptions to the 2001 Study and the quarterly tracker that reports information four times during the year. Call 201-794-1133 for membership info or visit the website.
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PAINTING REPORT: HEART OF OHIO TOLE SHOW(Note: The following was written by a very well known painter and leader in the decorative painting category.)There was the usual excitement and the usual discounting, but most vendors were happy with sales, especially on Wednesday night (registered students only) and on Thursday (a large crowd with several bus groups). Friday was slower, and on Saturday (the last day), vendors did most of the shopping and looking. I believe about 1,300 students registered, an excellent turnout. However, students were balking at the hotel and parking rates. The host chapter did not make their room block. Students are following the same path as vendors -- seeking cheaper rooms. I hope the chapter leaders -- and the hotels -- are hearing the message! Did not see much new in surfaces. Loew Cornell displayed only their new products and gave out coupons which people doing the "try it" tables could take to LC's distributors, spend $10 or more, and receive a new brush. I liked this system of manufacturers supporting their customers -- same with DecoArt. DecoArt is pushing its new Everyone Can Paint program, and the teachers' and the students' kits are shipping now. The kits are wonderful, as are the teachers' manual and video. -- Name withheld by request
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CLN'S 2003 BUDGET SERIES, PT. II: TRADE SHOWSTrade shows are one of manufacturers' largest expenses. As margins shrink, vendors are taking a hard look at their return on their trade show investment. Many, in virtually all industries, are reducing their trade show schedule. That can be penny-wise and pound-foolish.The frustrating thing about trade shows is you never know what might happen -- what new buyer you might meet, what new business relationship might be established, what rumor might be quashed, and so on. Years ago, an exhibitor said in the first hour of the first day of a show, "This has been a great show!" "How can you say that?" we asked. "The show's only been open an hour." "Because of the deal I made in the hotel bar last night." Perhaps a better idea than eliminating one or more trade shows completely is to exhibit, but with a smaller booth and fewer personnel. That way you can still meet the new buyer; convince the retailer who saw your products at the last show, but hadn't made up his mind; see first-hand what your competitors are offering; and stop rumors before they start. ("Gee, Company A's not here; are they in trouble?") There are no guarantees, of course, except one: no one has ever attended a show and not learned something.
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EMAIL: EXHIBITING AT TRADE SHOWSThe trade show blues seem to be everywhere in every industry. For our part, we'll keep going, but will reduce the size of our booth, reduce the number of people needed to staff it, reduce the number of booth samples, but still have a presence. Of course slow, dying, poorly attended, or poorly managed shows will be eliminated.One thing missing is the "convention" aspect of shows. I hope that as shows slow down and buyers and sellers have a little more time, we can add some educational value to the shows -- and I don't mean classes and make-it/take-its. Business building, creativity, human resource management, self-improvement -- that kind of education. But no matter what anyone says, "success" is judged by the number of bodies in front of YOUR booth. -- Name withheld by request
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TRENDS: DESIGNS IN THE GIFT MARKET(Note: The following report on trends in the gift industry is from industry consultant Ellie Joos.)Though it was hot outside, inside the New York Gift Show traffic was lively and brisk. Most vendors I spoke with reported increased business, better than the January show and better than expected. I saw some really beautiful products in the Handcrafts section. Overall, the direction was in fleece, denim, toile prints (with brown toile looking newer than black or red), botanical prints, floral and leopard prints, and vintage-looking prints. Some of the booths were outstanding. In particular, Goody Goody, which sells fabulous decorated slippers and shoes, purses, and scarves, did the entire booth in wide strips of colored velvets stitched together, including the floor which was covered with clear heavy plastic. In accessories, the jewelry is definitely more interesting; a lot of turquoise, but the newer looks combine other gorgeous colored beads and stones. Other ideas: There were numerous beautiful, handmade fabric-and-trim-covered books, photo albums, and picture frames. One company showed lovely items with heat transfer patterns -- from old fabrics -- on suede. Decoupage plates using vintage-looking print motifs ... Roosters were hot ... Billie Beads raises polymer clay crafts to new levels. The piggy banks and other treasures are collector pieces. African Eclectic had some fun items done with tin cans and bottle tops. They flattened the cans, cut out shapes, and decorated frames. The bottle tops were applied to a wire mesh and became decorative baskets. Pillows were very interesting, many with simple stamped motifs in the center on raw silk fabric, and fleece with applique designs combining fringe, buttons, and other trims. There were "tween" looks in many booths, with products in bright colors, bold patterns, trims, and feathers. Two's Company had bulletin boards shaped like tee shirts, covered with a knit fabric and brightly painted. Seemed to be a "melt down" when it came to candles -- by the lack of them at this show. (Note: Ellie Joos is President of Ellie Joos and Associates, a consulting firm with a number of industry-related clients. 1220 Hope Bridgeville Rd., Blairstown, NJ 07825. Call 908-459-9269; fax 908-459-9269; email eleapple@hotmail.com.)
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VENDOR-RETAILER PRICING: AN INTRODUCTIONThe following emails are in response to "Fixing The Broken Pricing Model" that appeared in our last issue. In that article, a well-known manufacturer complained about the growing pressure retailers are putting on vendors. He warned that if the manufacturers' profit margins become too small, they'll stop investing in this industry.We asked for comments -- and were swamped! What follows below are some of them. Consequently, we thought it appropriate at this time to clearly state Creative Leisure News' policies regarding the letters and emails we receive and publish. 1. All correspondence to us must be signed, but the name will be withheld if the writer requests it. We prefer to publish the author's name, but we understand why most of the authors of the following emails cannot afford to jeopardize their relationships with customers. 2. If a writer wants his/her name withheld, under NO circumstances will we reveal it. 3. Any unproved charges against a particular person or company will be deleted. 4. We may not agree with a particular letter, but will publish it if we think it's thought-provoking and raises an issue that is important to the entire industry. 5. All letters will be edited for length, clarity, and good taste. 6. Any reader is welcome to send us comments on any industry topic, at any time. We want Creative Leisure News to be a forum for discussion of important issues. Phone your comments to me at 309-925-5593 or email mike@clnonline.com.
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EMAIL, I: STOP THE ARM TWISTING!There is a heck of a lot more to this iceberg of a topic than touched upon by the "leading manufacturer" in the article you recently published.The Pricing Model has been broken for quite some time. There are two separate, distinct breakdowns: The first is pricing from the retailer to the consumer. About 7-10 years ago, retailers gave opium to craft consumers and now cannot find an acceptable means to wean them off of the drug of discount/markdown expectation. It's more than "Always Low Prices ... Always". Consumers understand the pricing life span of a product/line, and when the markdown will come. "Don't buy that now, Alice. It will be on sale next Tuesday," says Harriet Shopper to the newbie craft consumer at Michaels. The second problem is often seen as a direct result of this first problem: The high-pressure margin squeeze by the retailer to the manufacturer. Over the past 10 years we have seen almost a full 10 cents on the retail dollar shift from the manufacturer to the retailer. It is not untypical for the manufacturer to end up with less than 30 cents of the actual sale to the consumer today -- after accounting for additional product discounts, new store discounts, line-in/line-out discounts, ad allowances, promo allowances, rack charges, cash discounts, extended terms, etc. Out of this the manufacturer must cover all direct costs, overhead, product development, and SG&A costs. It is nearly impossible to make money as a craft manufacturer today. I said, "The second problem is often seen as a direct result of this first problem"; however, it is NOT this way at all! Retailers needed help several years back and tightened the screws on their vendors. The vendors agreed to additional discounts and the spiral began: continued tightening on the vendors' pocketbooks, year after year after year. Each year retailers invent a different, unique way to take a little more of the retail dollar for themselves. It is no secret that a few retailers have in place a program where store managers claim shortages on the shipments they receive. After all, how could this ever be disproved? But most of the siphoning off of the vendors' profits comes by twisting the arm of the retailer-dependent vendor CEO's to agree to more support for the retailer -- or risk banishment. (The word support is starting to get a very negative meaning in our industry today.) In an age where the consumer is becoming more comfortable with e-commerce, the brick-and-mortar retailers would be served best by coddling the relationships they have with their vendor-partners. In this post 9-11 era in which craft retailers have received a double-whammy profit-explosion due to the nesting phenomenon and the recession, fat and happy craft retailers should not be so quick to ask their hurting vendor base to squeeze even more life-blood from their operations. Rather, it is time to release their tourniquet as their retailer wounds have long-since healed. -- Long-time craft manufacturer. Name withheld by request
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EMAIL, II: RETAILERS AIM FOR SHORT-TERM PROFITSI am divulging my name to you but please do not publish it. The reason I ask you not to publish it is one of the reasons the "pricing model" is so defunct.#1. A good number of buyers today buy on emotion -- with whom do they have the best relationships, who provides the most entertainment, who coddles them the most, etc. Most companies have a policy that theoretically prevents buying buyers' loyalty, but very few companies enforce it. I have heard stories of family trips, dinners, ball games, jewelry, etc., purchased for buyers. That seems to be a conflict of interest, but is done on a regular basis. #2. The craft industry is one of the worst offenders regarding pressuring vendors. Now the recent positive news about the growth of the industry is making retailers even more greedy. I believe the craft retailers will continue to pressure their vendors to the point where the vendors go out of business (or opt to invest in more profitable industries). Then we will see a reversal of the craft retailers' successes. Without the competitiveness from several vendors, craft retailers will be forced to pay higher prices and accept fewer entitlements, therefore reducing their profits and/or sales. One final note: You will probably receive several emails singing the same song as I am. However, retailers won't care or pay attention. It is all about the here and now. If they can make a big profit today, they could care less about tomorrow because they (the current CEOs, buyers, etc.) will be on to a different job by that time -- strutting the successes they had at the expense of their vendors. -- Major manufacturer. Name withheld by request
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EMAIL, III: WALL STREET IS THE CULPRITI have seen our industry evolve over the last 25 years. The advent of the public chain has caused prices to rise at a greater rate then they should, and that has stifled creativity.The entitlements demanded by chains help their income statements and their stock prices, but do not provide a single benefit for our industry. Items that should be retailing for $2.99 are now selling for $4.99. Manufacturers must raise the cost of their products to meet the demands of the retailer. The retailers are insisting on exorbitant margins because the volume in our industry can't support the demands of Wall Street. The buyers are put under pressure to beat up on the manufacturers: they need to meet their numbers. The manufacturers would like to sell their products at a reasonable price so the consumer would not have to think twice about their purchases. This also puts the buyer/vendor relationship at risk. For example, manufacturer A has goods to ship and buyer Y needs them for his stores. But manufacturer B, A's competitor, knows buyer Y will demand a lot of back-end discounts, so he concentrates on buyer W, who only wants the best price up front. -- Manufacturer's Rep. Name withheld by request
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EMAIL, IV: ONE LOW PRICE?Jo-Ann's has done a turn-around in what they are looking for. They now want all entitlements (volume rebates, ad allowances, etc.) to be put into the price. And they are looking for a net price -- no more discounts from the suggested retail price. One low price.Of course, there is nothing to say that they won't come back next year (after getting low, low prices) and ask for new add-ons. -- Major Manufacturer. Name withheld by request
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EMAIL, V: INAPPROPRIATE GIFTS?In recent years I have heard numerous stories about buyers taking inappropriate gifts from manufacturers. These include family trips, expensive seats at the Indianapolis 500 and NASCAR races, impossible-to-get concert tickets, and lavish Christmas gifts.This is not just from manufacturers, but also from certain reps who have major lines with major customers and are making hundreds of thousands of dollars in commissions. Jo-Ann's has a policy that prevents this and they seem to live with it. In fairness, it does seem to be confined to a very small number of buyers. -- Major Manufacturer. Name withheld by request
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EMAIL, VI: WAITING FOR WAL-MART(Note: In our last issue we also reported that some people believe Wal-Mart was getting too big for the health of retailing in general. The following is in response to that report.)I am pleased that someone has recognized the danger of a "Whale-Mart". There are so many stories out there that prove that they are not the "cure all" for retailing. It is interesting that our group [Sierra Pacific Crafts] cannot get a price quote on Christmas lights until our vendor has settled with Wal-Mart! I see similar things with Michaels. Competition is good, but when the giants demand so much, the little guy gets hurt and eventually the vendor. -- Adrian Taylor
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EMAIL VII: THOUGHTS ON AMES' DEMISENo one likes to see people losing their jobs and I hope the Ames employees will be hired by other retailers who are successful.Other than that, I don't think Ames going out of business is any great loss. The recent history is Ames filing for bankruptcy and reorganizing, and of course not paying vendors. Then re-opening with demands (threats) to vendors for outrageous discounts and give-aways. Instead of taking responsibility for poor performance, the CEO [Joseph Ettore] blames "continued softness in sales, combined with tightening terms and slower shipments from our suppliers, [which] have reduced our funds availability below critical levels." How come other retailers are able to be profitable within the same markets? What happened to the expertise needed for success at Ames? What other choices do vendors and banks have with companies like Ames, other than to reduce terms, etc.? I'm curious to know what "golden parachute" Mr. Ettore has when the dust settles. -- Marv Gross, Candlewic (Note: From the reactions we're hearing, Marv's thoughts represent the thinking of the majority of Ames' former vendors.)
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RANDOM NOTES, RANDOM THOUGHTS1. Interesting article in a recent Los Angeles Times about a new feature being tested in a California American Eagle Outfitters store. It's a "clothing customization station" where teens can personalize their new purchases. The store "offers far more than just denim distressing -- the store's staff, armed with scissors, stencils, patches, and colorful paints, will attempt to create the customer's vision, for free.... It could be as simple as an eagle stencil on a rear jeans pocket or as complex as a T-shirt that's cut into pieces and reattached with ribbons," the article reported.Hmmm. Sounds like a potential craft class. How about "Jazz Up Your Jeans" for a title? 2. In the last issue I asked readers to tell me if their companies were doing anything special to commemorate 9/11. Gail Czech of the Creative Network says her company will shut down on 9/11 "and I am urging my people to spend at least one hour that day reflecting, praying, or doing volunteer work." Gail herself is "flying to NYC on 9/11 and staying till 9/15. I feel an obligation -- a duty, if you will -- to show support and respect, and most of all show no fear to those who want to instill fear in us." A year ago, Gail went to New York from her home in Portland to do volunteer work in the aftermath of the tragedy.
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MISCELLANEOUS NEWSPEOPLE, I. A.C. Moore added Eli Segal, a former assistant to President Clinton, and Larry Fine, A.C. Moore President, to its board of directors. The additions increase the size of the board to seven, with the majority being independent. While assistant to the President, Segal was responsible for the legislation that created AmeriCorps, President Clinton's national service initiative, and serves on the board of a variety of companies. Fine replaces Patricia Parker, who has resigned from the board but remains the Exec. VP of Merchandising.PEOPLE, II. Plaid named Michelle Temares as Design Director, effective Sept. 23. Michelle was president of Bella Michelle Studios, a design firm with numerous clients in and outside the craft industry. She's a member of the Society of Craft Designers and Society of Decorative Painters. PEOPLE, III. Rex Rambo, Exec. VP/COO of A.C. Moore, will retire at the end of January. At that time, Larry Fine will assume the duties of COO in addition to those as president. BACK TO SCHOOL. We're hearing preliminary reports that general back-to-school sales aren't particularly strong, but Michaels August sales are better than expected. SCRAPBOOKING. There will be a free information seminar sponsored by the Scrapbook Preservation Society during the Memories Expo in Denver. It's Sept. 5 from 2 to 5 pm at the Denver airport Holiday Inn. This organization is trying to develop consistent, verifiable terminology for the industry, and eliminate the confusion over terms such as acid-proof and photo safe. All manufacturers are invited -- and encouraged -- to attend. STAMPS. Plaid signed a licensing agreement with Anna Griffin Inc. and will produce a line of rubber stamps and accessories featuring Anna Griffin designs under the company's All Night Media brand. The first products will be a collection of 15 wood-mounted Fall/Christmas stamps available this month. A complete line of Anna Griffin products, called Decorative Impressions, will launch in December and will include stamps, stamp sets, punches, inks, brass stencils, and a 28-page how-to book. FLORALS. zeBlooms is a new home-party, direct-sale company launched by The Antioch Company, which owns the Creative Memories home-party scrapbook operation. Antioch, based in Yellow Springs, Ohio, also owns Webway, a photo album manufacturer, and Antioch Publishing, a manufacturer of journals, stickers, address books, etc. For more info, call 866-601-8126 or email dshaffer@zeBlooms.com. The website is www.zeblooms.com. CANADA. White Rose emerged from bankruptcy as a new corporation, White Rose Home & Garden Centres. The company has increased its home dec inventory, but crafts, per se, do not seem as strong. Officials promise "a unique, ever-changing assortment" geared in each store to local tastes and interests. There are 27 stores, all in Ontario. White Rose Home & Garden Centres, 4038 Highway 7, Unionville, ON L3R 2L5. 905- 477-3330; www.whiterose.ca COMPANY FOR SALE. Small company in the home dec/craft categories is available. This profitable small company deals with distributors and major chains -- a great company to roll into another to gain access into these majors. For more info, contact Mike Hartnett, in complete confidence, at 309-925-5593 or email mike@clnonline.com. QUILTS. Beginning Oct. 1, C&T Publishing will be the exclusive distributor of Piece O' Cake's current line and publisher of its new books and patterns. Piece O' Cake is led by the popular design team of Linda Jenkins and Becky Goldsmith. Watch for a new pattern from Piece O' Cake, Lucky Stars, and the 2002 International Quilt Association Donation Quilt in Oct. Visit www.ctpub.com, email ctinfo@ctpub.com, or call 800-284-1114. CONDOLENCES, I. Our very best wishes to Karen Kilbourne of DRG, whose husband, Rick, passed away after a long illness. Send condolences to Karen (one of the industry's absolute best salespersons) to 890 Buckley Place, Norcross, GA 30093. CONDOLENCES, II. Our very best wishes to the family of Kaethe Kliot of Lacis who passed away suddenly Aug. 17. She started what became Lacis in 1964. Send gifts in her memory to The Lace Museum, 552 South Murphy Ave., Sunnyvale, CA 94086. There's a tribute to Kaethe in the Guest Book at the Lacis website, www.lacis.com. STENCILS. Beverly Decor has a new website, www.beverlydecor.com, showing its accent wallcovering stencils and Stencil House craft designs. DIE CUTS. Commcut added hundreds of new dye images to its website, www.commcut.com. There's a weekly promotion, too. NEW COMPANY. ARTOMNI produces products for decorating candles. Candle-Paper is a line of colorful, imported, fireproof papers which wrap around a candle. Candle-Tape is a double-stick tape for attaching flame resistant materials to candles and lanterns, and flame-resistant Candle-Raffia is sold in easy to use 5-ft. lengths. A merchandiser and a shelf clip strip are available. ARTOMNI is led by President Michael Paragon, former VP/co-owner of Paragona Art Products, who has created dozens of popular craft product lines. See sample projects and more info at www.artomni.com. Write 233 Wilshire Blvd., #400, Santa Monica, CA 90401. Call 310-264-0207; fax 310-496-2989; email info@artomni.com. REP NEEDED. One of the industry's fastest growing seasonal import firms is looking for solid sales representation in California. Looking for an independent rep, not company employee personnel. Call Mike Hartnett, in confidence, at 309-925-5593 or email mike@clnonline.com. DUCKWALL-ALCO. Net earnings for the quarter ended Aug. 4 rose 35% to $1.3 million ($0.29/diluted share) on sales of $103.5 million, which was an increase of only 2.1% and same-store sales rose only 0.5%. Gross margin improved to 33.3% of sales, and inventories were nearly $8 million below prior-year levels. STOCK. Wal-Mart will show executive stock options as an expense item in the fiscal year beginning Feb. 1 ... President/CEO Lee Scott and Exec. VP/CFO Thomas Schoewe signed sworn certifications that the company's annual and other financial filings contain no material omissions or misstatements ... The Wal-Mart board declared a quarterly cash stock dividend of 7.5 cents/share, payable on Oct. 7 to shareholders of record on Sept. 20 ... The board also authorized a new $5 billion share-repurchase program. ROLODEX. As of Sept. 8, K Stull Inc. and Hands On ... Crafts For Kids have a new address and email. Kathie Stull, 7079 Navajo Trail, Solon, Ohio 44139. 800-348-3909 or 440-349-3977; fax 440-349-3995; email kathiestull@apk.net or ksinc@apk.net. REMINDER. The deadline for submitting nominations for the various HIA awards is Sept. 6. Email Nominating Committee Chair Howard Hoffman at hh@tonerplastics.com or fax 413-789-1144 for a nominating form ... HIA is still looking for more corporate sponsors for the annual golf outing on Jan. 24. Email Susan Brandt at sbrandt@hobby.org. Call 201-794-1133.
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BUSINESS PROFILE: PRYM-DRITZ CORPORATIONThe Prym-Dritz Corporation is part of the Prym Company, which is a worldwide, family-owned company headquartered in Stolberg, Germany. Its origin dates back to 1642 when William Prym erected a brass mill in Stolberg and began manufacturing copper and copper alloys.In 1924, Hans August Prym came to America and established William Prym, Inc., USA in Long Island City, New York and became the exclusive sales agent for William Prym. In 1939, Hans moved the company to Dayville, Connecticut and began manufacturing straight pins, safety pins, cover buttons, snap fasteners, and hooks and eyes. A lot has happened since then! Today Prym-Dritz USA and Canada are the leading manufacturers and distributors of sewing notions, quilting notions, and related accessories in North America. Prym-Dritz, which is part of the Prym Consumer Group, has manufacturing facilities located all over the world, including Mexico, England, Germany, Malaysia, Czech Republic, Hong Kong, Australia, and China. The Prym Company is the largest manufacturer of straight pins, safety pins and metal sewing notions in the world. In recent years, Prym-Dritz has grown and diversified its business through the following acquisitions: W. H. Collins, Inc., a leading distributor of sewing and quilting notions, Omnigrid Inc., the leading manufacturer of quilting and sewing rulers; and Dal-Craft, a well-known manufacturer of LoRan needlework accessories. Diversification continues to be an important strategy for Prym-Dritz, through both on-going acquisitions and the development of new products for the broader craft market. The Prym-Dritz family of products now includes these brand names: Blue Ribbon, Coats, Collins, Creative Hearts, Dritz, Dritz For Dolls, Dritz Quilting & Cutting, Dylon, Finger Gloves, Hix, Hollywood Trims, Interior Expressions, LoRan, Mary Engelbreit, Omnigrid, Prym, Quilt By Numbers, St. Jane, and The Quiltery. Effective Sept. 30, Johan Starrenburg will become the new president, replacing Paul Mackey, who worked for the Prym Group for 40 years and served as president of Prym-Dritz since 1988. According to Johan, who has served as V. P. of Operations since 1990, "I am pleased to serve Prym-Dritz in this new role and look forward to leading the excellent staff and talents of the company to further expansions into the sewing and craft markets." The mission at Prym-Dritz is to achieve consumer-focused marketing; develop innovative, quality products that offer consumer value; promote the education of sewing and quilting; and help expand our industry. ROLODEX: Prym-Dritz Corporation, P. O. Box 5028, Spartanburg, SC 29304; Customer Service: 800-255-7796; e-mail: customerservice@dritz.com; visit www.dritz.com. Note: If any industry-related company is interested in a Business Profile such as the one above, call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.
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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*: 21.26 ... Change**: +2.51Hancock Fabrics (HKF). Last*: 14.55 ... Change**: -2.20 Jo-Ann Stores (JAS.A) [a]. Last*: 30.00 ... Change**: +0.30 Michaels (MIK). Last*: 46.49 ... Change**: +5.94 Rag Shops (RAGS). Last*: 4.25 ... Change**: +0.16 Wal-Mart (WMT). Last*: 53.48 ... Change**: -0.31 CLN Retail Index. Last*: 100.501 ... Change**: +3.9% Dow Jones Index. Last*: 8,663.50 ... Change**: -1.3% *August 30 ** from August 16 [a] voting share Prices are exclusive of dividends
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RETAILER SIGNSLast weekend my wife and I were driving home from a wedding in Wisconsin, and we stopped for gas. The gas station was in the middle of NOWHERE. No other business or sign of human life could be seen in any direction.And there, prominently displayed above at the cash register, was this sign: "No Out of Town Checks Accepted"
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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 16.
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