COMMENTARY: SO, WHO RECEIVED
THE EMAIL?
Our world certainly is dependent on an apparently fragile
electricity network, isn't it? On Friday, I emailed a newsbrief to CLN's
online subscribers containing the latest press release from the ACCI/HIA
Task Force. I have no idea who received it, due to the blackout.
Apparently it doesn't matter where you are, it depends on where your
host server is located. It's similar to the airlines; your flight
from Chicago to Denver is cancelled because the plane is stuck in
New York.
So if you haven't read the latest about the ACCI/HIA unification
effort, it's posted in the Business-Wise section -- click HERE.
NEW COLUMNS THIS ISSUE
Business-Wise.
Last week's newsbrief about ACCI/HIA, plus the complete press
release regarding the ACCI/HIA unification efforts, and an extended
Q&A about the process.
Memory,
Stamps, & Paper. The president of a rubber stamp company
offers thought-provoking views of scrappers, stampers, altered
books, and cardmaking.
Category
Reports. Painting/design pro Shea Szachara reports on the
state of decorative painting and offers suggestions for improvement.
Designing
Perspectives. Sound, practical advice on how to choose the
right designer for your company.
Legal Q. & A.
Can you copyright a relatively common image?
Reminder: If you surf to one of the above columns and you see
an "old" column, click on your "Refresh" or
"Reload" buttons on your browser.
COMMENTS ON THE ACCI/HIA
UNIFICATION EFFORT
(Note: Emailed reactions to the initial CLN
newsbrief.)
1. "THIS IS GREAT FOR THE INDUSTRY. Hard to believe that
ACCI was started due to HIA not meeting the needs of the craft
community all those years ago. I guess this is an example of going
full circle." -- Industry Manufacturer
2. "Just wanted to say...I'm glad! I've been involved
with both organizations since 1986 and could never figure out why we
needed two. Thank them. -- Judy Joyce, American
Traditional
3. "Although I am not as involved in the craft industry
with our business as much as in the past, I would have to say this
is one of the great pieces of news of the past few years. I know you
and I had personal feelings on what was behind the movement against
this in the past, but am glad to see there are some reasonable folks
on the Boards now. I commend you and your associates for this
move." -- Casey Casebolt, Gerson International
4. "Wow! You made my day. Thank you. I am so excited
about the two associations becoming one. Am also pleased to see the
name includes Crafts. The war is over and hopefully we won't look
for any new battlegrounds. " -- Katherine Yoss, Katherine
Yoss & Associates
5. "Nice job, and congrats to all on the association
merger. Makes all the sense in the world, and is very exciting
news." -- Deborah Murphy, Deborah M. & Daisy
Kingdom
6. "Congratulations in succeeding at what has always
been obvious. In my time on the board of HIA, we have tried, but
failed, and Miguel [Litchi, a former board member] and I never
understood the situation. We are them and they are us. Having
experienced people on the task force, who have served on both
boards, must have been a great help. It will make the new
Association much stronger, and will definitely attract new foreign
buyers at the February show and in July." -- Ron Aptroot
7. "I think this is the best news to come along in
awhile regarding the arts/crafts industries. It is especially hard
for new businesses that want the exposure to come up with the
membership fees, etc., and get their products noticed by the powers
that be. Plus, in today's tight economy, it is always the
entrepreneurs who raise the stakes, reinvent the wheel, and come out
stronger providing more jobs, and eventually a stronger economy.
Just take a look at history and see who started obscurely and are
now mega-moguls." -- Jayne Quintero, Smoxrox, Inc.
Have any thoughts on the ACCI/HIA merger? Email them to mike@clnonline.com.
INDUSTRY RETAILERS ARE RANKED
DSN Retailing Today issued its annual Industry Report
with rankings by sales of the largest 150 retailers. As a category,
crafts were lumped into "Craft, Hobby & Seasonal
Stores," and indicated 2002 sales of $7.35 billion, up 9.1%
from 2001. (Note: If that number seems a far cry from HIA's
Size of Industry figure of $29 billion, keep in mind only
those chains listed in bold below comprised the $7.35 billion
figure.)
Stores of interest and their 2002 ranking (and their 2001 ranking in
parentheses): Wal-Mart, 1 (1) ... Target, 4 (4) ... Kmart, 11 (7)
... Toys R Us, 27 (26) ... QVC, 46 (47) ... ShopKo, 55 (51) ... Michaels,
56 (55) ... Jo-Ann's, 71 (72) ... Home Shopping Network, 72
(73) ... Hobby Lobby, 86 (86) ... Garden Ridge, 118
(116) ... FAO, 122 (146) ... Hancock, 125 (124) ... Duckwall-ALCO,
128 (125) ... A.C. Moore, 130 (134) ... Frank's 144
(129).
Two industry related companies, Hobby Lobby and Garden Ridge, are
private, but DSN reported Hobby Lobby's 2002 sales at $1.16 billion,
up 14.6% over 2001. DSN said this year the store count will
grow by 20 to 307 with another three opening next year -- and Garden
Ridge's sales dropped 0.2% in 2002 to $500 million. The store count
remains at 44.
Many industry vendors are looking to penetrate other markets as
well. DIY/Home Centers grew 11.6% in 2002, Office Supply Superstores
were up 4.8%, and Dollar Stores grew 13.1%. The Report will
be available soon at http://www.dsnretailingtoday.com/instore_surveys.
WAL-MART: MORE PROFIT RECORDS
For the quarter ended July 31, net income jumped 14.7% to $2.3
billion ($0.52/share), a record. Sales increased 11.3% to $62.6
billion. For first half of the fiscal year, sales rose 10.5% to
$119.4 billion, and net income increased 14.7% to $4.1 billion,
another record.
For the second quarter, the Wal-Mart Stores segment, including
Supercenters, reported an operating profit (profit before interest,
unallocated corporate expenses, and income taxes) of $3.317 billion,
up 9.3%. For six months the operating profit was $6.07 billion, up
8.7%. The employee count, worldwide, is 1.4 million. Same-store
sales were up 3.1% for the quarter and 2.7% for the first two
quarters.
JO-ANN'S EVOLUTION CONTINUES
The new prototype of Jo-Ann's opened in Frisco, TX (the
same affluent town where Michaels opened its first ReCollections
scrapbooking store). At 35,000 sq. ft., the new store is about
10,000 sq. ft. smaller than the other 80 superstores (formerly
called Jo-Ann's etc). Jo-Ann's officials told DSN
Retailing Today what has been obvious for the last couple of
years, that the company strategy is to evolve into a chain of
superstores which will replace the traditional stores.
The superstore averages $6 million in sales and $150/sq. ft.,
compared to $1 million and $100/sq. ft. for the traditional stores.
Jo-Ann's plans to open 30-40 superstores a year, eventually growing
to 700, DSN reported.
Jo-Ann's also is using the old MJDesigns Dallas mega-store (77,000
sq. ft) laboratory to test various departments such as party, an
expanded scrapbook section, etc., DSN reported.
HELPING THE WORLD'S POOR
THROUGH KNITTING
Cari Clement, president of Bond America/CC Bond Product
had long dreamed of using her company's knitting machines to help
poor women out of poverty. In late 2001 she decided it was time to
turn that dream into action: to help establish a women's economic
cooperative for turning knitting into an income-generating activity
in Africa.
She contacted UNHCR, the UN refugee agency, and late last year
Clement donated and shipped to Rwanda 60 Ultimate Sweater
Machines and numerous accessories, plus over 1,000 skeins of
yarn, donated by The Craft Yarn Council of America.
Clement traveled to the Kiziba refugee camp, home to 15,000
Congolese refugees, in Rwanda last month, and at a fair she attended
in Kigali she saw exceptional, high quality, crafts.
"The quality of the crafts (primarily baskets, embroidery,
sewing, knitting and crochet) in this, Africa's poorest country, is
so extraordinary -- what people do with the most basic of
materials!" Clement said. "Their knitting is so even, it
looks as if it was done on a machine."
At the fair, Clement saw a woman at a booth selling a knitted vest
and learned that it had taken the woman two weeks, knitting eight
hours/day, seven days/week to make it. Price? $3.00 U.S. Clearly,
these talented women must work more productively and sell their
items in more affluent markets, Clement concluded.
Now confident in the Rwandan women's exceptional needlework skills,
Clement taught 100+ women, none of whom spoke English, to use the
machines.
The goal is a women's cooperative, where members can knit throws and
pillows, shawls, and even sweaters for sale in the U.S. and Europe.
For many Westerners Rwanda is just known for its recent (1994)
history of genocide and resulting poverty, especially for women and
children. However, Clement says Rwanda is now one of the most stable
countries in Africa, known for its industrious people, spectacular
countryside, and a post-genocide policy of inclusion, repatriation,
and reunification.
Clement's next goals are to secure funding for more machines for
Rwandan women's groups, assist them in forming cooperatives to
manage the business, and, ultimately, to create high-end knitted
projects for re-sale in the U.S. and Europe. Clement will assist
with the initial designs, but then plans to work with Rwandan
designers, especially students, for future projects. Initially, the
yarn source will most likely be mohair from South Africa; however,
the Rwandan government has indicated an interest in ultimately
producing the mohair yarn itself.
In January, 2003, Clement sold her company to Caron International,
and has remained as Director of Marketing for Bond products, Editor
of Ultimate Knitting magazine, and assists Caron in
developing new yarns. If Clement can obtain funding for additional
machines, Caron has made it part of her job to return to Rwanda to
expand the program.
For more info and photos of Clement's trip, visit http://bond-america.com/whats_new/rwanda_aug_03.html.
ACCI WRAP-UP
The 2003 ACCI show may be over, but it's not quite done. The
exhibitor list, with links to vendors with websites, is still online
at www.accicrafts.org.
The show attracted 4,070 attendees with 564 exhibitors (including
172 new companies) occupying 1,247 booths. In addition, 36 companies
were represented in the new MarketCenter. A total of 1,349
tickets were sold for technique classes, 22 of which sold out.
Another 1,243 tickets were sold for other Mega events,
including seminars, workshops and classes; 585 attended the Retail
Summit. ... The Art Glass Show hosted 1,404 buyers,
vendors, and others.
Exhibitors who would like a show registration list on disk, free,
get an order form at www.accicrafts.org/kit_pdf/postshow_reglist.pdg.
The form must be returned by this Friday.
A show survey for buyers is at www.accicrafts.org/surveys/BuyerPostShowSurvey.htm
and for sellers at www.accicrafts.org/surveys/ExhibitorPostShowSurvey.htm.
Whether or not the ACCI/HIA merger goes through, there will be a
show next July -- the 16th through the 18th with education starting
the 15th. Call 740-452-4541 for info.
THOUGHTS ON THE HISPANIC MARKET
(Note: As CLN reported in its last issue, the Hobby
Industry Association recently revealed the results of an
extensive study of the Hispanic market. We gave the study to Barbara
Hartnett, for her thoughts. Barbara is the Executive Director of
Friendship House, a United Way agency in Peoria, IL that does
extensive work with Hispanic immigrants -- language classes,
after-school programs, etc.)
1. My knowledge is very, very narrow and limited to poor,
recent immigrants, only from Mexico. They are quite different in
some ways from immigrants from Cuba or Puerto Rico, so it's
dangerous to lump all these groups under the "Hispanic"
label.
2. The HIA study was conducted only in large cities, only of
people with published telephone numbers. Was the interview done in
Spanish?
3. Many speak no English and therefore, read no English. Many
have no telephones, although teens are slowly getting cell phones.
Computers are rare.
4. Often their reading ability in Spanish is low because they
dropped out of school in rural Mexico in 4th or 5th grade.
5. They have a strong family and religious orientation, so
crafts are often done in the context of celebrating baptisms, first
communions, etc.
6. Often they have no cars, so they shop where they live and
pay what they have to for necessities; or they do have cars but
little money, so discount stores and thrift stores are their primary
choices.
7. There is a respect for the elderly, but a disdain for the
"old country" ways wherein traditional crafts often fall.
Among recent Mexican immigrants, the generational division is
greater in many ways than what we are used to, because the kids get
"Americanized" very quickly. But if craft retailers can
translate teen trends into crafts that can be made cheaper than
readymades, there may be a market for the younger crowd -- i.e.
friendship bracelets, not embroidered shawls. The skills grandmother
can teach must be translated into new, hip products.
8. Among Mexicans especially, compared to other Hispanic
groups, there is less disposable income because they send billions
of dollars back to family in Mexico.
9. An important key for craft retailers, I think, is to focus
on the escapism and social aspects of crafting for Mexican women.
This is still a strongly sexist culture -- most women don't work
outside the home, few of them drive, and often they have large
families. In many places, the work of the men is seasonal and the
women are alone for long periods of time. The older children are in
school and their parents are in Mexico. A knitting/crocheting group
is a safe, socially acceptable outlet for them to get together, out
of the house, with their husbands' permission.
(Note: Barbara started a Warm Up America! group for
them. See "Random Notes, Random Thoughts" below. Before
Barbara retired from teaching psychology, she conducted workshops at
HIA and ACCI shows, and Society of Craft Designer
seminars.)
WANNA BE ON THE RADIO?
Have a business problem but can't afford a high-priced
consultant? Business consultant Doug Hall is available, free. Hall
is the star of BrainBrew Radio, broadcast on Public Radio
International. A highlight of the recent
show was a live broadcast of the program.
The process works like this: contact Assistant Producer Corie
Roudebush at corie@brainbrewradio.com
or call 513-271-9911, ext. 869 and request a guest information
sheet. Complete and return it, and a time will be scheduled for a
phone interview with Hall and his partner, Dave Wecker. The
interview will be taped and played on the air at a later date.
To learn more about the show and listen to the latest installment,
visit www.brainbrewradio.com.
JULY SALES IMPROVE
Business seems to have picked up in July. The Commerce Department
reported retail sales, not counting auto sales, rose 0.8%, the best
in recent months. Economists had expected 0.5%.
Jo-Ann's same-store sales increased a whopping 9.2%, but
officials warned that the sales "were aided by the acceleration
of clearance sale events this year that occurred in August of last
year." The result is lower margins, but still in line with
management's expectations.
Net sales for the second quarter rose 1.6% to $359.2 million and
same-store sales for the quarter were up 2.4%. Year-to-date, net
sales are $734.0 million, up 1.1%, and same-store sales increased
2.5%. Second-quarter earnings will be announced today.
Michaels same-store sales rose 1.0%. Second-quarter sales
rose 7.0% to $616.7 million, and same-store sales grew 1.0%. Year-to-date,
sales are up 8.0% to $1.273 billion and same-store sales rose 2%.
For the month and quarter, the top categories were Summer Seasonal,
Apparel Crafts, General Crafts, Floral, and Ribbon. Strongest areas
of the country were the Northeast, Southeast, and Mid-Atlantic
zones. Michaels' customer traffic was flat and the average ticket
increased 1%.
CEO Michael Rouleau expects diluted earnings/share to be $0.32-$0.36
in the second quarter, $0.46-$0.50 in the third, $1.28-$1.32 in the
fourth, and $2.40-$2.45 for the year.
As of the end of July, 76% of the stores are on the perpetual
inventory system, and 40% of the basic, replenishable SKU's in those
stores are on automated replenishment.
Hancock's same-store sales rose 3.0% ... Wal-Mart's
same-store sales rose 4.6% and raised its earnings estimate for the
second quarter to $0.52/share. Duckwall-ALCO's same-store
sales rose 2.7%; crafts was not listed as a strong category.
HSA: NEW DIRECTOR, SHOW
DETAILS
The Home Sewing Association has named Joyce Perhac as
Executive Director. Perhac, the president of ProShow, Inc., has been
the Consumer Show Director for the American Sewing Guild.
She's a former member of the HSA board and executive committee.
HSA's National Sewing Show is set for Sept. 23-25 at the
Riviera Hotel in Las Vegas. Highlights include a) Fashion Row
with designs from numerous pattern companies offering a wide variety
of unique patterns, from historic and ethnic styles to patterns
ideal for embellishment and hard-to-fit sizes; and b) a
runway fashion show previewing Spring, 2004.
For more information, call 212-714-1633 or email sewing@sewing.org.
HSA members can register online at www.expotrac.com/shows/sewing/prereg.asp.
RANDOM NOTES, RANDOM THOUGHTS
1. Yes, the Barbara Hartnett who wrote about the Hispanic
market is married to me. Here's one story from her that says
something about the Hispanic people: Barbara learned about the Warm
Up America! program where people knit/crochet afghans for the
needy, and knew many of her Hispanic clients loved to knit and
crochet. So we talked to the good folks at Lion Brand Yarn,
who then donated yarn to get Barbara started. Two years later, there
are a dozen women who come to Friendship House one morning a week --
and crochet afghans for the poor. Barbara recently received another
huge donation of yarn from SpinRite.
Here's the bottom line: These women are VERY poor, but they're
making the afghans for people poorer than they are.
2. Another phone call from a frustrated manufacturer who
needed to vent: "I'm so sick of these entitlements some
retailers demand. Who says they're entitlements? Aren't they
demands? The best chains I deal with are Hobby Lobby and Wal-Mart.
No one percent here and two percent there; they just ask for the
best price. When I have something new, guess which chains I'll show
it to first?"
3. As a member of the ACCI/HIA Task Force, a very big thank
you to the trade press who had been given an off-the-record
"heads up" on the process early enough to save space in
their next issues. My appreciation for a professional job well done.
Watch for articles in their September issues.
4. Recently I published a request by a manufacturer who was
looking for a packaging designer to give his products a new look. A
number of you graciously offered names, including Duncan's
Ann Donnelly. She referred me to the Women in Packaging website, womeninpackaging.org/rfp.html,
which has a "Request for Proposal" page, where you can
post your needs, and members of the group respond directly.
MISCELLANEOUS NEWS
AUGUST. Business seems to be gathering steam, and the
early reports on the back-to-school sales are good, but the blackout
in the Northeast may impact the month's final numbers for retailers.
For many retailers, back-to-school is the second largest revenue
period of the year. Having to close late on Thursday afternoon is
not critical, but if the stores aren't open on the weekend.... Then
there's the matter of distribution centers. If they have to shut
down for any period, that can disrupt "just-in-time"
deliveries.
MEDIA. Watch for a new magazine, Simply Creative Crochet,
on newsstands Oct. 7, published by Better Homes & Gardens
and Spinrite. There are 40+ modern, fashionable projects,
from "hip" accessories for teens to apparel and home
accents. All the projects call for Spinrite yarns such as Bernat.
To carry it in your store, call 800-265-2864. (Comment:
there's no reason why crocheters can't get as turned on as knitters
have been recently.)
SCRAPBOOKS. The final Memories Expo of this year is
Oct. 9-12, in Orlando. The Expo dates for 2004 are Las Vegas,
Mar. 5-6... Chicago, April 2-3 ... New Jersey, Apr. 30-May 1 ...
Orlando, Oct. 7-9. For more info, visit www.memoriesexpo.com.
BOOKS. The Jeanette Crews August releases have been
posted at www.jeanettecrews.com/results.cfm?SubCategory=87.
HINT. Be sure to include that four-digit number to your zip
code, especially when sending out invoices. The Post Office claims
mail (including checks) will reach you faster that way -- and you do
want those checks delivered quickly!
BUSINESS PROFILE
Note: To learn more about how your company can be profiled
in CLN, call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.
To read other profiles, click "Business Profile Archives"
in the right-hand column. Profiles remain in the Archives for one
year; each time a profiled company is mentioned in a subsequent
issue, it will be linked to the profile.
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.
THE CLN RETAIL INDEX
A. C. Moore (ACMR). Last*: 24.34 ... Change**: -0.06
Hancock Fabrics (HKF). Last*: 18.32 ... Change**: +0.31
Jo-Ann Stores (JAS.A) [a]. Last*: 27.15 ... Change**: +0.79
Michaels (MIK). Last*: 37.15 ... Change**: -0.55
Rag Shops (RAGS). Last*: 3.69 ... Change**: +0.03
Wal-Mart (WMT). Last*: 58.10 ... Change**: +2.83
CLN Retail Index. Last*: 100.50 ... Change**: +2.0%
Dow Jones Index. Last*: 9,321.69 ... Change**: +1.8%
*Aug. 18 ** from Aug. 4 [a] voting share Prices are exclusive of
dividends
SADDAM HUSSEIN'S FAMILY
(Note: Making the rounds on the Internet.)
Now that Uday & Qusay have been eliminated, many of the lesser
known family members are coming to the attention of American
authorities.
Among the brothers: Sooflay, the restaurateur ... Guday, the half-Australian
brother ... Huray, the sports fanatic ... Sashay, the gay brother
... Kuntay & Kintay, the twins from the African mother ...
Sayhay, the baseball player ... Ojay, the stalker/murderer ... Gulay,
the singer/entertainer ... Ebay, the internet czar ... Biliray, the
country music star ... Ecksray, the radiologist ... Puray, the
blender factory owner ... Regay, the half-Jamaican brother ... Tupay,
the one with bad hair
Among the sisters: Lattay, the coffee shop owner ... Bufay, the 300-pound
sister ... Dushay, the clean sister ... Phayray, the zoo worker in
the gorilla house ... Sapheway, the grocery store owner ... Ollay,
the half-Mexican sister.
Finally, there is Oyvey, but the family doesn't like to talk about
him.
REMINDERS
1. For more information on how your business can be the
subject of a "Business Profile" or have products/photos
included in the "CLN's Online Product Preview, 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. Just click on "Current
Subscribers Click Here To Register."
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 1. Happy Labor Day!
xxx
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