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

 

 


Date: October 7, 2002
Vol. VI, No. 19

Printer Version

TABLE OF CONTENTS

bulletCommentary: New Products Are Coming!
bulletHoliday Sales Outlook Darkens
bullet3rd Qtr. Stock Report: It Could Be Worse
bullet"Altered Books" -- The Next Trend?
bulletEmail: "Alternatives" for Memory Consumers
bulletTrend Report: Product Categories
bulletOnline Painting Magazine Previews This Week
bulletSigns of the Times
bulletRandom Notes, Random Thoughts
bulletMiscellaneous News
bulletBusiness Profiles: Ellison Craft & Design
bulletThe Creative Network: Job Openings
bulletThe CLN Retail Index
bulletEmail: Customer Satisfaction
bulletReminders

COMMENTARY: NEW PRODUCTS ARE COMING!

I'm pleased to announce that Creative Leisure News will unveil a new product section in our next issue. I've been bombarded with requests, so I'm taking the plunge.

Essentially it will work like this: CLN will create a special section of the newsletter; vendors will email the material and photos, which will remain posted for six months, with links to the vendor's email address and webpage.

Each newsletter issue will contain a very brief description of the new items with a link to the product page, so downloading the issue will be as quick as ever.

The benefits: the info and photos will be posted by the next issue of CLN. Vendors don't have to wait a month or two for a magazine to see if their product was included. And it's guaranteed. -- we won't run out of space or pages like would often happen when I published a hard-copy magazine. For retailers, they can read about new products NOW, while they really are new, not months from now.

Please, don't bombard me with emails and phone calls -- yet. I'll be sending you a special email or fax later today with the details of how to submit items.

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HOLIDAY SALES OUTLOOK DARKENS

It looks as if this coming season will once again test the old adage that consumers turn to crafts when they're worried about the economy.

LABOR WOES. The situation on the west coast docks is getting increasingly bitter. The Pacific Maritime Assn. has locked out the International Longshore and Warehouse Union, and vows to maintain the lockout until a new contract is signed. A long strike could have disastrous consequences on the Christmas season, if retailers can't receive their seasonal orders from Pacific Rim manufacturers. Analysts say the national economy is losing as much as $2 billion for each day the docks are idle.

In a letter to President Bush, the Mass Retail Assn. wrote, "This shutdown is affecting every aspect of the U.S. economy. This includes agricultural exports sitting on the docks, railroads sitting idle not accepting containers destined for export, the loss of drayage work at the ports, the depletion of just-in-time manufacturing inventories forcing assembly lines to shut down, and a threat to the availability of finished consumer products for the important Christmas holiday sales period. "It is estimated that for each day the port is closed, it will take five days to clear the backup," the letter continued. "That means that even if the situation were resolved today, it would take more than a month before the global supply chain would be back to normal."

The full text of the letter is available at www.imra.org.

As we understand the law, once a federal judge has declared that a strike or lockout is a national emergency, President Bush can invoke the Taft-Hartley Act and order the docks reopened for an 80-day period.

WALL STREET. The various stock indices have hit multi-year lows recently and their performances in the third quarter (see article, below) were the worst in years. Millions of consumers have seen their retirement savings shrinking, which could have a dampening effect on their holiday spending.

RETAIL. September sales figures for general retailers, to be reported this Thursday, will probably be disappointing, despite the comparisons with a year ago when the country shut down for a while after 9/11. Even Wal-Mart lowered its prediction for its September same-store sales. And a year ago, taxpayers were spending their tax rebate checks.

HALLOWEEN. Falls on a Thursday. That reduces the number of parties and therefore the number of decorations, adult costumes, etc.

CHRISTMAS. Even if the longshoremen sign a new contract so seasonal goods appear in stores on time, there are six fewer shopping days between Thanksgiving and Christmas.

MISCELLANEOUS. Housing was down for the first time in months in August ... Consumer confidence has dropped ... The federal deficit is soaring and many state budgets are sprouting red ink ... U.S. manufacturing contracted in September for the first time since January, Reuters reported, and spending for new offices, plants, and stores hit a six-year low ... Meanwhile, the prospects for war are growing as does the threat of another recession.

These facts do not necessarily mean a poor Christmas for our industry. That old adage about crafts thriving in an uncertain economy is an adage because it has been true in the past.

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3RD QTR. STOCK REPORT: IT COULD BE WORSE

Is the glass half full or half empty? Most industry-related stocks performed poorly in the third quarter -- but did not fall as much as most stocks, or stock indices.

The big winner was Michaels , up 17.2%. The stocks of our other public retailers all fell: Jo-Ann's, -4.0%; Rag Shops , -7.8%; A.C. Moore, -10.7%; and Hancock, -13.1%. The Dow fell 17.9%, one of its worst quarterly performances in recent years.

(Comment: If you look at the balance sheets of our industry's retailers, it appears that our prediction of a few months ago came true: The economy is so shaky, and the threat of war is so strong, that many investors are pulling out of stocks altogether. Rather than anything "wrong" with our retailers, that has caused their stock to drop.)

Most of the other industry-related stocks performed worse than our retailers. Martha Stewart's company dropped 39% as the company suffered from a blizzard of negative publicity about her alleged insider trading activities.

Many retail chains suffered, too. Target was down 22.5% and ShopKo dropped 35.3%.

One exception to the rule was our industry's public publishers. Primedia, whose Special Interest Publications division produces Craftrends, Creating Keepsakes, Crafts, Sew News, and others, rose 13.9%. Meredith and its Better Homes & Garden's Craft Division rose 12.3%.

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"ALTERED BOOKS" -- THE NEXT TREND?

Altered books make more sense when you see them, rather than read about them. Artist/crafter Debbie Dodd described it this way: "Rather than destroying a perfectly good book, it is the act of using one's artistic skills to add to the work. Altering may involve cutting out pages, sections or caches' in the book, adding collage, painting, rubber stamping, and adding pages -- among other things. Altering may be done related to the topic of the book or not -- there aren't really many rules, except to remember that a work of art is being created."

Essentially, the process is using an old book, or selected pages, as a surface for personal crafting ideas and expression.

Altering a book will probably appeal mostly to scrapbookers and stampers because it uses many, if not most, of the same tools and supplies. It should appeal to painters, too. Decoupage enthusiasts will see that the end result can often look like a collage.

At the moment, the category is attracting "artists" and many of the finished projects are more abstract than we're accustomed to, but that will change as the industry adapts it for a more mainstream audience. For example, Design Originals has just produced Altered Books 101 (#5167) and Altered Book Page Ideas (#5168) and Altered Books -- Materials Guide (#5171) will appear in January.

To learn more about it, go to www.google.com, type in "altered books" and check out some of the web listings. Here are a few:

Well-known painter Tera Leigh has taken the altered-book plunge: www.teraleigh.com/alteredbooks.htm ... A transcript of an altered-book beginner's class: crafts.dm.net/convention/981026altered.html ... Debbie Dodd's work: mystudio3d.tripod.com/altbooks.htm.

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EMAIL: "ALTERNATIVES" FOR MEMORY CONSUMERS

Manufacturers and retailers would be wise to pay attention to the growing "alternative arts" category and the larger world of paper arts in general. While I don't have all of the statistics, clearly there is a growing movement; for example, look at the new magazines in the past year!

Expression launched early this year, the publishers of Memory Makers magazine recently launched Paper Crafts and More, and the Somerset Studio family just launched Legacy ("Turning Family History Into Art") and have plans for a new art doll publication next spring. Creating Keepsakes seems to be incorporating more and more alternative techniques and the "Melange" section of Somerset Studio continues to receive rave reviews. Meanwhile, new mini conventions and alternative-arts retreats are popping up and getting better attendance every year.

Insignificant? Maybe, but perhaps not. Also, if you look at the Yahoo Groups discussion lists, the alternative and general paper arts lists have nearly as many members as the mainstream scrapbooking and rubber stamping lists -- and they're every bit as active!

In a recent letter to the editor at CNA, Tera Leigh wrote, "I believe that this is a natural progression of the convergence of the stamping and scrapbooking trends. Many of the artists that enter the field start with cute stamping and scrapbooking, then go to more serious art work...."

I completely agree and I see this happening more and more -- with stampers and scrapbookers and other artists, too.

The industry seems to be largely ignoring this category, and so artists must rely on local antique malls and thrift stores for collage-worthy ephemera, small rubber art stamp companies that produce the sophisticated designs they crave, and the few manufacturers who are creating other necessary products.

If you look at the list of advertisers in any of the Somerset Studio magazines, you'll see what I mean. Why are the large/better-known companies not taking note?

Products for collage and altering, rubber art stamps, and classes by teachers such as Teesha Moore and Claudine Hellmuth would probably do wonders for many small retailers. I would certainly become a regular at my local scrapbook store if this were the case; it seems there are always new techniques to try and new products to find.

Anyway, I was flipping through Legacy this afternoon and felt compelled to share my opinion (obviously I'm not speaking on behalf of the Society of Decorating Painters. -- Kristine Campbell, Web Producer, Society of Decorative Painters

(Note: Some sites to visit: www.somersetstudio.com, www.somersetstudio.com/html/legacy.html, www.expressionartmagazine.com, www.creatingkeepsakes.com, www.memorymakersmagazine.com, and http://www.alteredbook.com/
internationalsocietyofalteredbookartists.htm
)

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TREND REPORT: PRODUCT CATEGORIES

SCRAPBOOKING. Still very strong, but the pie is being divided into lots of pieces. Three-dimensional pages are now the rage for experienced scrappers, and new forms of paper crafts should appeal to them, but it's getting more difficult to attract as many newcomers as it has been in recent years.

YARN. Is every movie star in Hollywood knitting these days? It sure seems like it -- and that publicity has generated very strong sales, which should continue as more younger people take up the category. Now look for a greater emphasis -- and publicity -- on crochet.

ALTERED BOOKS. This is a new way for scrapbookers, stampers, and others to use (and therefore buy more of) the products they have.

JEWELRY. Looks like it's growing yet again, and the higher-end glass beads are attracting adult crafters, not just teens and tweens. Look for more bead shops -- and bead shows.

PAINTING. Hopefully will grow as Decoart's new teaching program creates new painters as successfully as Plaid's One Stroke program. According to a recent newsletter from American Public Television, the PBS show, One Stroke Painting with Donna Dewberry was among the top rated programs in July. Simon and Garfunkel: The Concert in Central Park and One Stroke Painting with Donna Dewberry are leading the way with the highest pledges for 2002 PBS summer pledge shows. The Society of Decorative Painters ' new online magazine, Learn To Paint (see article, above) should certainly help, too.

EXCLUSIVES. Look for an increase in selected vendors designing and producing product lines specifically and exclusively for one chain or another.

OTHERS. Sales are generally strong in the other basic categories; unless the economy goes to hell in a handbasket, those sales should continue.

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ONLINE PAINTING MAGAZINE PREVIEWS THIS WEEK

This week the Society of Decorative Painters will preview a new online publication, Learn to Paint at www.learntopaint.org. It will be a bi-monthly beginning in January. It's targeted to crafters and beginning painters, and officials claim it "will present a fresh, accessible, and highly creative approach to decorative painting by use of diverse mediums and techniques."

Projects will include the paper arts (rubber stamping, collage, scrapbooking, etc.); textile surface design (fabric painting, dyeing, stamping/stenciling, art quilting, and embellishment); home dec (furniture painting, faux finishing, stamping/stenciling, murals and trompe l'oeil, glass, ceramics); and exercises in water media, oils, acrylics, and multimedia.

Officials believe many artists from other arts and crafts areas are already using decorative painting techniques, but just aren't calling it decorative painting. Another goal is to expand the public's awareness of all that decorative painting encompasses.

Learntopaint.org will provide retailers and manufacturers with marketing opportunities for beginner-to-intermediate-level design ideas, sponsorship, product promotion, and advertising.

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SIGNS OF THE TIMES

A miscellaneous collection of news items that indicate the world ain't what it used to be.

BOMBS. Police in the Liberty City area of Miami received a call saying an item in a deserted lot near a grade school had a bomb in it. The police found the item and blew it up. No bomb inside. The item was a teddy bear.

BIG BROTHER. A hit at the recent GlobalShop, billed as the "world's largest annual store design and in-store marketing show," is a new in-store customer tracking system by a company called Brickstream. Brickstream uses video cameras to track all of the movements of thousands of customers throughout a store. Then the data is uploaded to computers for various types of analysis -- wait times, traffic flows, which displays attract the most customer interactions, etc. The website is www.brickstream.com.

ART. A new business, Artomat, sells original art out of recycled vending machines. See for yourself at www.artomat.com.

TRADE SHOWS. The recent National Hardware Show in Chicago saw a decline in the number of U.S. exhibitors -- and an increase in Pacific Rim exhibitors, particularly from China. That's due, in part to China's recent admission into the World Trade Organization.

KNITTING. The new women's magazine, Grace, published an article on Hollywood celebrities taking up knitting -- just like all the other women's magazines have done. What caught our eye this time, however, was news that the latest movie star picking up knitting needles is Russell Crowe, of Gladiator and A Brilliant Mind fame.

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RANDOM NOTES, RANDOM THOUGHTS

1. As a writer, I'm a little leery of this "altered book" idea, but I'll pay attention to it, remembering that about 15 years ago Suzanne McNeill called me and said the next big industry trend would be .... scrapbooking.

Scrapbooking? Sticking photos in an album is a craft? I couldn't "see" it, but Suzanne could. Now her company, Design Originals, is conducting a workshop at the HIA show next January. The topic? Altered books.

2. Here's a mystery to me: why more craft retailers haven't picked up on the growing trend of consumers creating their own teddy bears. The Build A Bear chain now has 100 stores, where kids can choose a bear, stuff it at the store, then choose from a wide variety of clothes and accessories to give each bear its own personality. The result can be a substantial sale.

3. I recently returned from the Society of Craft Designers' Educational Seminar in Chicago. I hadn't attended for a while and was pleasantly surprised by how much it had grown. And I was reminded once again about the enormous pool of talent that SCD represents. Nice to see so many old friends, too.

Every manufacturer should become a corporate member. Looking for new uses for your products, new instruction sheets, madeups for your booth, a demonstrator, and/or someone to write how-to articles for magazines? You can find the right people at SCD. And I can't imagine a designer NOT joining SCD. For more info, go to the website, www.craftdesigners.org. For a Profile of SCD click here.

4. That old adage mentioned above, that crafts does well in a down economy, implies that the craft industry is different, apart from the national economy. In light of what's going on in the industry, I hope so, but I wonder. Russell Crowe, the Gladiator, tells a national magazine he loves to knit. The Quality Paperback Book Club just listed Michelle Gebrandt's Scrapbook Basics as one of its featured books for November. Wall Street is no longer overlooking craft chains. The latest victim of the sniper shootings in the surburban Washington, D.C. area was in the parking lot of a Michaels store in Fredericksburg, VA. Maybe we are mainstream and will rise and fall and rise again, like the national economy. We'll find out, soon enough.

5. Hmmmm. Frank's Nursery & Crafts says it can't compete against the Michaels and A.C. Moore's of the world, so instead it adds readymade home dec items so it can compete against Hobby Lobby and Pier 1. Does that sound like a plan to you?

6. I received a call from a frustrated, angry vendor commenting on the emails from other frustrated, angry vendors in recent issues of CLN. He finally dropped Wal-Mart because of the additional charges for things such as products he claims were shipped properly, then damaged in a Wal-Mart warehouse. He finally said "enough." He's had to scale back his operation, including laying off some employees -- but claims his company is now more profitable.

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MISCELLANEOUS NEWS

A.C. MOORE. Reported sales of $89.7 million for the third quarter ended Sept. 30, an increase of 18%. Same-store sales rose 4%, at the upper end of the company's forecast. For the year, overall sales are up 23% and same-store sales are up 9%. CEO Jack Parker stated, "We fully expect to meet our third-quarter earnings forecast and reaffirm our full year profit guidance." Third quarter earnings will be released this Thursday and there will be a conference call at 5 pm EDT; to listen, visit the "Investor Relations" portion of www.acmoore.com.

SCRAPBOOKING. The recent Memory Trends show in Las Vegas was very successful. Read the show and new-product review by The Graceful Bee (an excellent scrapbooking website at www.gracefulbee.com/articles/article_8.shtml). One exhibitor told us she was surprised at the number of chains in attendance, who were placing orders.

SCD. The recent annual Educational Seminar sponsored by the Society of Craft Designers was a big hit. Attendance was 275, breaking the previous record. 50 companies participated in the Manufacturers Showcase and 138 designers participated in the Designers Showcase. The Established Member sessions attracted some veteran designers who hadn't attended for a while. The next seminar is Oct. 8-11 2003 in St Louis. For a Profile of SCD, click here.

HIA. The Nominating Committee announced the following candidates for the board of directors. Nominated to a second three-year term is Thomas Ware, Bag Works. For a Profile of Bagworks, click here. Nominated to a first three-year term after having served the one year remaining of Steve Baune's resigned term is Richard Brown, Spinrite. Nominated to a first, three-year term are Dave Bolen, Jo-Ann's; Bob Ferguson, Ferguson Merchandising/Ben Franklin Crafts; and Herb Lantinga, Notions Marketing. The election will take place during the HIA show in January.

STOCK OPTIONS, I. It does pay to be an exec of a successful public company. A number of Michaels execs exercised options and sold them in September. They bought 278,250 shares of Michaels stock at guaranteed prices of $10.75 to $20.98 and sold 214,418 shares for $44.87 to $46.25. Examples: On Sept. 4, CEO Michael Rouleau bought 50,000 shares at $15.25 and sold 50,000 shares the same day for $46.00 -- a profit of $1,537,500. On Sept. 3, Exec VP Bryan DeCordova (who is leaving Michaels Oct. 31) bought 50,000 shares at $14.56 and sold them for $44.87 for a profit of $1,515,550.

STOCK OPTIONS, II. Execs cashing in options does not necessarily mean the company has trouble on the horizon. Often options come with a deadline -- cash them in or lose them. Or the exec wants to diversify his/her portfolio, needs cash for a major investment, etc.

DUPEY. Mike Dupey, one of the true pioneers of the craft industry, is back in retailing, opening M Port in Dallas -- just a few blocks from where he started with a Ben Franklin store that eventually evolved into the industry's first superstore and a chain of about 60 stores. No crafts this time, though; M Port is a discount store stocked with home dec, fashion accessories, and, from what we're hearing, an amazing jewelry department.

JOB OPENING. Frances Meyer is looking for a Major Account Manager. Must relocate to Savannah. Call Paul Bailey at 217-235-1051.

JOB HUNTING. Industry pro with major experience with major corporations -- manufacturers, importers, distributors -- is looking for a senior exec position. For more information, email Mike Hartnett in complete confidence or call 309-925-5593.

NEW COMPANY. APG Inc., producers of eyelets and other items that can be used for dimensional scrapbook pages and other craft uses. See examples at www.babyeyelets.com. The company is also looking for dynamic account managers. Applicants should fax resumes to 514-327-7095 or email hr-recruit@babyeyelets.com. For more info, call Pasquale at 514-327-7650 or email pasquale.pizzi@pierregrenier.com. 10775 Ave Racette, Montreal, Quebec, H1G5H5.

LICENSING. Mary Engelbreit artwork will soon be seen on buttons and sewing notions from Blumenthal Lansing and needlework instruction books from Leisure Arts, reported Gifts & Decorative Accessories magazine ... Faber-Castell's Creativity for Kids brand has released a line of Dr. Seuss kits and a number of others for kids aged 3 and up.

ACCI I. Is accepting applications and proposals for technique classes and Mega sessions for the show July 18-20, 2003, with education starting July 17. Applications are available at the website, www.accicrafts.org, or by calling 888-360-2224. The deadline for technique classes is Feb. 1, but the deadline for Mega sessions (workshops, seminars, and events) is Dec.1.

ACCI II. Part II of the transcript of the panel discussion of some of the industry's top retailers is now online. The discussion took place during the show in July, but the comments are still very relevant. Go to www.accicrafts.org to read them ... The first retail seminar is now on ACCI's website. It's written by George Whalen, a popular business speaker at ACCI shows. To go directly to the seminar, go to www.accicrafts.org/mini-seminar1.htm.

HALLOWEEN. According to iParty.com and its 35 stores, the top Halloween costumes this year are Sponge Bob, Spiderman, Spy Kids, Divas, Bob the Builder, Austin Powers and Friends, Scream, Hippies, Gothic, and perennials such as witches, cheerleaders and ghouls ... The Home Sewing Assn. has a variety of Halloween ideas at its website, www.sewing.org.

AWARDS. Lion Brand Yarn received A.C. Moore's 2002 Vendor Award for New Production and Innovation ... S&S Worldwide's Gee-Perz! product line, developed in part by Next Level Marketing, was selected as one of the Dr. Toy's 100 Best Children's Products for 2002 and also as one of Dr. Toy's 10 Best Creative Products for 2002. For a Profile of Next Level Marketing, click here. Dr. Toy's Guide is the first online magazine to review toys and kids' products on the web at www.drtoy.com ... Nancy Martin, founder and president of Martingale and That Patchwork Place, will win Quilt Market's 2002 Silver Star award. The award will be presented at the Quilt Market Oct. 27.

TEACHERS. Jo-Ann's launched a Teachers Appreciation Program which gives educators a "Teacher Discount Card" that qualifies them for a 10% discount on sale and non-sale classroom and project supplies for the entire 2002-2003 school year.

MICHAELS. Will open a second Star Decorators Warehouse, a wholesale operation for wedding and event planners, decorators, retail florists and gift shops, hotels, and restaurants, according to an article in The Dallas Morning News. The location for the second Warehouse has not yet been disclosed.

QUILTS. Last month Jo-Ann's donated hundreds of American Spirit quilts to fire stations across the country. In conjunction with American Sewing Guild chapters, Jo-Ann Stores and ASG members created quilts to honor 9/11 victims and heroes, and local emergency personnel. The American Spirit commemorative, limited-edition quilt was created exclusively for Jo-Ann's by Jo-Ann's employee Cindy Casciato, the wife of a retired firefighter.

WAL-MART. Reuters reports the chain is now the #1 retailer of jewelry/watches, surpassing Zale's, the former leader. It had already passed Toys R Us as the leading toy retailer, and has now passed Kroger as the largest grocery seller. Its pharmacies have pushed it to the #3 drug seller, behind Walgreen's and CVS. (Note: We have never heard a bona fide total dollar figure of Wal-Mart's craft/sewing sales. Conversations with various vendors, however, make us think the number is more than $2 billion, which would put it #2 behind Michaels.)

KNITTING. Knitting needles may be confiscated by airport security personnel if they are found in carry-on bags, reports Conde Nast Traveller magazine. The needles are one of the few items that are left to the discretion of the security people. The magazine recommends "using circular needles (the shorter, coiled kind connected by a flexible plastic cord) rather than the long, hard ones, which appear more menacing to security personnel." Travel with projects in the early stages, the magazine suggests, because the security guards can confiscate the project, too.

QUOTATION. Speaking about the flat or declining sales of chain stores catering to teens: "We're entering an age of individualism. Teens don't want to be dictated to." -- Kurt Barnard of Barnard's Retail Trend Report (Associated Press). (Comment: Hmm, shouldn't handmade jewelry and embellished clothes solve teens' need for individuality?)

ROLODEX. Daniel Enterprises has moved to larger facilities: PO Box 685, 2365 Hwy 210 West, Hampstead, NC 28443. Call 910-270-9090; fax 910-270-0084; email denterprise@earthlink.net.

REPORTS. Michaels announced that its CEO, Michael Rouleau, and its CFO, Bryan DeCordova, have submitted certifications to the SEC that the company's recent financial report is accurate and complete. That's part of the new legislation passed by Congress to make top execs more accountable, in this post-Enron environment.

2003. Apparently Wal-Mart is expecting the recent droop in the economy to be temporary. The chain announced it will grow another 48 million sq. ft. in 2003, an 8% increase in U.S. retail space, Reuters reported. The breakdown: 45-55 new discount stores, 200-210 Supercenters (some are relocations), 20-25 Neighborhood Markets, and 40-45 Sam's Clubs.

PEOPLE. C&T Publishing named Amy Marson as Publisher. She replaces Todd Hensley, who moves up to CEO. Marson had been Director of Production ... Debi Schmitz has been named Key Accounts Manager for Expo International ... James Nichols, president of Accu-Cut, has resigned to pursue work as a college professor and marketing consultant. Steve Nabity, who credits Nichols as the originator of the Accu-Cut machine, remains as CEO ... Martha Stewart, who may be indicted for alleged insider trading and lying to investigators, resigned as a member of the board of the New York Stock Exchange ... NAMTA named Rick Munisteri as Marketing Director and Rachel VanOoyen as Membership Director.

WAREHOUSE/MARKETING. Established industry company in the Southeast has enough warehouse space -- and sales/marketing expertise -- to handle those functions for small industry companies who may not have all the necessary resources to succeed, depite good products. For more info, email or call Mike Hartnett in complete confidence at 309-925-5593.

EMPLOYEES. Last Friday Wal-Mart held special activities in each store honoring its more than 144,000 cashiers. There was a morning brunch for the cashiers who will each receive a special gift. The company press release highlighted Annabelle Stilwell, who has been a cashier at the Bentonville, AR Wal-Mart for 18 years. She is 81 years old. (Comment: Interaction at the check-out counter is the last -- and lasting -- impression consumers receive at a store. It certainly makes good sense to keep the cashiers' morale high.)

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BUSINESS PROFILE: ELLISON CRAFT & DESIGN

Ellison Craft & Design is a division of Ellison Educational Equipment, Inc. Founded in 1977, the company sprang to life when LaDorna Ellison Eichenberg and her husband, Bob Eichenberg, developed the first hand-operated die-cutting machine. The Ellison Machine quickly became a hit with teachers and crafters because it allows them to cut perfect letters, numbers and shapes quickly and easily. Today Ellison die-cutting equipment is found in over 70% of schools nationwide and is available for consumer use in scrapbook, craft, rubber stamping, stationery, fabric, and camera stores worldwide. Ellison is also a wholesale and retail distributor of craft materials for a variety of manufacturers.

The Ellison Machine is available in two sizes and offers a selection of more than 1,700 die designs. The machine is able to cut a range of craft materials, including up to five sheets of paper at once, cardstock, sheet magnet, self-adhesive rubber, thin metal, paper wood, fabric, and poly foam. Accessories include the Ellison Embossing System, the Super Shuttle, storage solutions, books, and videos.

In 2001, Ellison teamed up with Provo Craft to develop the Sizzix Personal Die-Cutting System -- a consumer version of the Ellison Machine. It subsequently won the Craftrends Award of Excellence for Best Scrapbooking Tool and has become a must-have tool for scrapbookers and general crafters. The Sizzix System is able to cut a wide variety of craft materials and offers hundreds of creative die shapes, letters, and numbers in three sizes.

Ellison offers its retailers extensive support including full-page consumer advertising, consumer trade show support, in-store and trade show workshops, project sheets, store and booth signage, online ordering, and quick turnaround delivery. Ellison also conducts The Scrapbook Institute, a workshop for new owners of scrapbook stores that covers accounting and business basics, marketing and merchandizing tips, demographic data, and class ideas. In addition, Ellison's Sr. VP, Sandi Genovese, is a frequent guest on television craft shows and contributes articles and projects to craft media featuring Ellison and Sizzix die-cuts. She also showcases both die-cutting systems on her own show, the popular DIY Scrapbooking.

Through unprecedented growth, Ellison has remained a family company. President Lisa Corcoran, LaDorna Eichenberg's daughter, leads a dedicated staff of 130-plus employees and experiences almost zero-turnover. The company operates out of 137,000 sq. ft. of modern facilities in Lake Forest, Calif. and continues to expand to meet the increasing demand for its quality die-cutting products.

KEY EXECUTIVES: Lisa Corcoran, President; Sandi Genovese, Senior VP and Creative Director; Kristin Highberg, National Sales Director; Kim Fogarty, Int. Sales Manager

ROLODEX: Ellison Craft & Design, 25862 Commercentre Dr., Lake Forest, CA 92630; phone: 800-253-2238; fax: 800-253-2240; websites: www.ellison.com and www.sizzix.com; email: info@ellison.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 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.

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THE CLN RETAIL INDEX

A. C. Moore (ACMR). Last*: 16.08 ... Change**: -6.07
Hancock Fabrics (HKF). Last*: 15.62 ... Change**: +0.23
Jo-Ann Stores (JAS.A) [a]. Last*: 25.30 ... Change**: -7.80
Michaels (MIK). Last*: 40.10 ... Change**: -7.89
Rag Shops (RAGS). Last*: 4.75 ... Change**: -0.85
Wal-Mart (WMT). Last*: 51.75 ... Change**: -2.65
CLN Retail Index. Last*: 153.06 ... Change**: -14.0%
Dow Jones Index. Last*: 7,528.40 ... Change**: -9.4%
*October 4 ** from September 16 [a] voting share Prices are exclusive of dividends

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EMAIL: CUSTOMER SATISFACTION

Had a great comment a few weeks ago from a customer -- I bet it applies to 75% of companies today. I was in my office midafternoon when the receptionist called to say she had a customer in the lobby who was fairly upset about an order, and all of the personnel appropriate to talk with him were in a meeting, not to be disturbed. I told her I would come down and try to help, even though the products involved were in the other division.

I met with him and resolved the problem to his satisfaction. But as he left, and in a constructive manner, not with any ill will intended, he said, "Perhaps your company should spend less time in MEETINGS and more time on CUSTOMER SERVICE."

Very appropriate, and even more so as this economy tightens up. We had better do everything we can to keep every customer on the books! -- Importer, Name Withheld

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REMINDERS

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