Date: June 17, 2004
Vol. VIII, No. 12

Printer Version

TABLE OF CONTENTS

COMMENTARY: Gone for a While

This issue is a bit early because I'll be in London to attend the CHA (formerly HIA) European Symposium and taking a few days of vacation. I happen to be a firm believer in NOT checking email and phone messages while on vacation because it's, well, vacation. The value of vacation is to return from it refreshed, not brain dead. And since many people might conclude my brain is already on life support, it needs all the "refreshing" it can get.

I'll return the calls and answer the emails when I return, July 28. (Of course then my "refreshed" brain will have jet lag, so you may not be able to notice any improvement.)

Business-Wise. Why one woman decided NOT to open an independent store.

Category Reports. The combined TNNA/INRG show was historic and much bigger than usual (see below). But was it successful? Yes and no. Read comments and analyses from exhibitors and buyers.

(Note: If you visit one of the columns mentioned above and it appears to be an "old" column, click the "Refresh" or "Reload" button on your browser.)

Where does scrapbooking go from here? Will it continue to grow? Has it peaked? Click HERE to cast your vote and then see how the rest of the industry voted.

Overall, industry sales have been pretty good thus far this year in CLN's decidedly unscientific poll – although we suspect subscribers who are doing well are more apt to vote in a poll like this than are readers who are depressed because sales are down. Manufacturers appeared to be having better year than retailers, but of course the poll asked only about sales, not profits.

For retailers: Sales up 10% or more: 21% ... Sales up 0-10%: 21% ... Sales flat: 17% ... Sales down 0-10%: 28% ... Sales down more than 10%: 14%.

For manufacturers, Sales up 10% or more: 36% ... Sales up 0-10%: 26% ... Sales flat: 10% ... Sales down 0-10%: 12% ... Sales down more than 10%: 16%.

By many accounts, the TNNA/INRG combined show was very successful. TNNA had been riding a wave thanks to the resurgence of knitting and crochet, but the question was, would the INRG members attend and exhibit?

The increase in vendors and buyers is larger, percentage-wise, than we've seen for any industry show in recent years – maybe ever: Buyers, up 60% ... Buying Companies, up 67% ... Exhibitors, up 89% ... Booths, up 66% ... New Exhibitors, up 200%.

The Tribute to Excellence in Needlework (TEN) Award was given to DeDe Ogden, who has been a retailer, TNNA board member, teacher, and designer in her 38+-year needlework career. To see her work, visit www.needledede.com.

Still, some cross-stitch vendors and buyers were not particularly happy. To read positive – and negative – reactions, plus some interesting analyses by vendors and buyers, click on Category Reports.

The scrapbook playing field is about to get a little more crowded. In August Linens 'n Things will begin selling four Leeza Gibbons Legacies scrapbooking kits, an adhesives tool kit, and a LEGACIES Idea Book, written by Gibbons, a television hostess/broadcaster. Xyron is the manufacturer and Meredith is the book publisher.

The complete LEGACIES line includes 330+ SKUs in four coordinated product categories – papers, albums, tools, and embellishments. Retail prices range from $0.99 to $99.00.

"Scrapbooking has been growing steadily over the past few years and is poised to break out of the craft and specialty market into the mass channels," said Xyron's Tobianne Hall. This line was specifically developed to be a catalyst for that expansion ...."

The 460-store chain will sell the line in the frames department.

Numbers. The Society of Decorative Painters International Convention attracted almost 1,500 SDP members from 42 countries, and 2,619 registered onsite. There were almost 200 exhibitors in 394 booths.

Make-it/take-its. From sand dollars in the Loew-Cornell booth to mini-purses in the Delta/SDP sponsored booth for youngsters, there was a lot from which to choose. Royal Brush offered paper projects using the new Wisp brush and Donna Dewberry Ent. focused on Plaid’s new Papier Paints. There were many others including B&B Etching Products, Genesis Artist Colors, Kala Art Products, Martin/F. Weber, Russian Gifts Jewelry Center, and Silver Brush. In addition, it seemed most booths without make-it /take-its offered demos galore.

Products. Many vendors expanded to include paper surfaces, bead and trim embellishments, metal embossing, and dimensional pastes. There was much more glass shown, including an easy etching method for glass surfaces. A myriad of white china surfaces appeared in one booth and attracted a lot of attention. And for the first time, there was one booth dedicated solely to tabletop easels of all kinds.

Orders. The majority of vendors agreed for the most part that business was steady this year. A few said they were doing better than they had expected.

DAC. The Decorative Arts Collection's new book, A Sentimental Collection of Roses, became the hit of the show – more than 500 were sold the first morning. (The 144-page book features more than 70 original works dedicated to beautiful roses.)

Product Winners. Rebecca Baer's Cedar Veneer was voted Best New Product. The adhesive-backed cedar veneer turns any box into an instant cedar chest. Visit www.rebeccabaer.com ... Best Publication went to Norsk Design for Rosemaling Heirlooms of Tomorrow. Visit www.joannemacvey.com.

Officers. Pres. Sheila Rouse; VP/Pres.-Elect Ann Johnson; Past Pres. Carolyn Bacon; Secretary Linda Biedermann; Treasurer Sue Bowers. Board Members-at-Large: Erika Ammann, Megan Capuano, Jillybean Fitzhenry, Nancy Genetti, Toni McGuire, and Prudy Vannier.

Certification. A record 74 painters qualified for various levels of SDP's certifications. A sign of the times: 86% of those are Japanese/Asian.

Awards. Donna and Marc Dewberry of Dewberry Designs won the Priscilla Hauser Award for Business and Industry: Andy Jones won the Silver Palette Award. Jan O'Quinn's "Floral Sampler," was named the People's Choice Award.

History. From its humble beginnings with founder Priscilla Hauser and 22 decorative painters, SDP has grown to 27,000+ members in U.S. and 48 countries.

Info. For more regarding the Decorative Arts Collection and Museum, The DACA Competition, or the Roses book, email contact Jan Vavra, at jan@decorativepainters.org or call 316-296-9300, ext. 103. The next SDP Conference is in Tampa, FL May 23-28. Email sdp@decorativepainters.org or call 316-296-9300, ext. 114.

(Note: Our thanks to Shea Szachara for this report.)

Garden Ridge named Jack Lewis CEO, succeeding Armand Shapiro, who remains on the GR board. Lewis had been CEO during the 90's. "We are focused on our goal to become the Lowe's of home decor by being the category killer for everything the customer wants for her home," Lewis told Retail Merchandiser. "We will do this by working with our current vendors and developing new vendor relationships, especially in furniture, domestics, housewares, and floral."

New execs include Steve Higgins, Sr. VP/GMM; Jerry McBrair, Sr. VP of Stores/Operations; and Rich Brown, CFO.

Garden Ridge filed for Chapt. 11 bankruptcy protection in February and closed a number of stores, leaving the store count at 36 in the Midwest and South.

A recent article in the Minneapolis Star Tribune outlined the alleged practices of some retailers who pocket some of the promotional allowances or dollars paid by vendors, rather than using the money for its intended purpose. These allowances are supposed to work like this: if a retailer promotes a "Buy 1, Get 1 Free" offer, it's a good bet the vendor, not the retailer, is paying for that "free" item.

The Star Tribune claims vendor payments/allowances total as much as $100 billion a year just in the food industry alone. Simply pocketing the money is a violation of the Robinson-Patman Act which says in part that retailers "should expend the allowance solely for the purpose for which it was given."

As an example, the Star Tribune cited General Mills. In 2002 the food conglomerate spent about $500 million on advertising, but gave retailers $2.25 billion, or 26% of its total sales. Whether retailers spent that $2.25 billion as federal law requires is the question. But the question largely goes unanswered, the Star Tribune claims, because the government doesn't have the money/staff to investigate all of the alleged abuses.

Here is the first installment of our report on new exhibitors at next month's CHA Summer (formerly ACCI) show. It is not a complete list – only those exhibitors with web pages. Click on the links to learn more about the companies. The complete list is available at www.e-offinger.net/acci/2004_show_exhibitors.cfm.

Accent Bead Design (#7013). Beaded ornaments, books, and jewelry kits. www.alteredarts.com/.

Altered Arts Magazine (#7005). New magazine with projects/articles for altered books, mixed media, etc. www.accentbead.com/.

Artist Supplies & Products (#6810). Baroque Art Gilders Paste offers various waxes, resins and high concentrations of pigments. www.gilderspaste.com/.

Artistic Die (#7305). Scrapbook and stamp supplies – dies, die-cutting, embossing, foil stamping, bindery, and easels. www.artisticdie.com/.

Awesome Albums (#8417). Border kits, tags, fibers, and Scrap Gurl, a collection for "gals with attitude." www.awesomealbums.com/.

Balsa Foam/American Foam (#8409). Balsa-Foam is a plastic that can be carved, sculpted, sanded, painted, etc. www.balsafoam.com/.

Bee Organized (#6708). Storage/organizers for scrapbooking, cardmaking, and stamping. www.beeorganized.biz/.

Blue Cardigan Designs (#8310). Papers, cut-outs, and stamps. www.bluecardigan.com.

Bluegrass Publishing (#7815). Books of sayings, slogans, etc., for use in scrapbooks. www.theultimateword.com/.

Boss Kut (#8308). Alphabet sets, portable die-cut system. www.bosskut.com.

Boundless Memories (#6808). Scrapbook kits/supplies. www.boundless-memories.com.

Boxer Scrapbook Products (#8014). Scrapbook calendars, tools, and embellishments. www.boxerscrapbooks.com/.

By Tamara (#8018). Designer Canes are made of polymer clay which, after baking, can be used for jewelrymaking, miniatures, and other craft projects. www.designcanes.com.

Cam Commerce Solutions (#7115). Software for retailers (POS, inventory control, etc.). www.camcommerce.com/.

Chikamasa & Co. (#7505). Scissors/cutting tools. www.chikamasa.co.jp/english/top/top.html.

Club Crafty (#7017). Home parties for scrapbookers. www.clubcrafty.com/.

Colonial Needle (#6612). Imported English needles for all types of needlework. www.colonialneedle.com.

Color An Angel (#7209). Multi-cultural scrapbook stickers. www.coloranangel.com/.

Crafter's Workshop (#4022). PaperComplements papers & AlphaBetterLetter templates. www.thecraftersworkshop.com/.

Creative Arts & Crafts (#7405). A variety of craft and home dec publications. www.creativehomeowner.com/.

Creative Impressions (#7508). Colored eyelets, brads/paper fasteners, textures/fibers, etc. www.creativeimpressions.com/.

Creative Toys USA (#7403). A variety of educational toys/kits. www.creativetoysusa.com.

Creek Bank Creations (#7812). Scrapbook products (design templates for brads, faux metal stickers, etc.). www.creekbankcreations.com/.

Darby (#7613). A variety of scrapbook papers and stickers. www.darbypaper.com/.

Diane's Daughters (#8214). Die-cuts, tags, papers, etc. www.darbypaper.com/.

Embellish It! (#8304). Scrapbook class kits. www.aboveandbeyondonline.com/.

Everlasting Keepsakes (#8309). QuoteStix, ScrapTags, TexTiles, and ShakerPiecings for craft and scrapbook products. www.everlastingkeepsakes.com/.

Fancy Pages (#6510). Scrapbook supplies, including laser cuts. www.fancypages.us/.

Fiddlerz3 (#7009). Scrapbook papers. www.fiddlerz3.com/.

Flair Designs (#6702). Art papers, vellum sheets, and die-cut cardstock stickers. www.flairdesignsinc.com/.

Flock Developments (#6908). Paint pads, rollers and other applicators. www.paintpads.com.

Fun-n-nuf (#7004). A wide variety of bookmarks. www.paintpads.com/.

Gary M. Burlin (#7112). Writing instruments, embossing supplies. www.garymburlin.com/index/index.asp.

GottaMesh (#7309). Mesh, burlap, cork for scrapbooks. www.gottamesh.com.

Happy Hammer (#8312). Seasonal-design eyelets in theme packs. www.thehappyhammer.com/.

Helmar Australia (#7910). Wide variety of Australian-made adhesives and other industry-appropriate liquids. www.helmar.com.au/main.php?page_id=000000014.

Infinitudes/Nature's Business (#6812). 3-D pop-up decorative stickers, including butterflies and dragonflies. www.naturesillusions.com/.

International Handcrafts (#7212). Silks – hydrangeas, roses, pansies. www.ihsilk.com/.

John F. Allen & Son (#7120). Imported genuine and imitation stones/beads. www.jfallen.com/.

Joyful Expressions (#8303). Themed scrapbook papers. www.joyfulexpressionsinc.com/.

Junkitz (#7103). Buttons, self-adhesive zippers, and other scrapbook embellishments. www.junkitz.com/.

Keepsake Kits (#7803). Themed scrapbook-page kits. www.kcscrapbook.com/.

Knitting Pretty Group (#7310). Instructional knitting videos. www.knittingpretty.com/.

Kodomo (#8203). Rubber stamps. www.kodomoinc.com/.

Kupon Ahsap Wooden (#8117). Raw and painted hand-made, decorative wooden trays from Turkey. www.okarsan.com/icerik.asp?ice=hak&dil=en.

LaserLine (#7708). Laser-cut designs and scrapbook supplies. www.laserlinecuts.com.

LAZZO Products (#8201). Assorted pens, including laser pointer pens, LED pens, cellular phone sensor pens, laser key chains, etc. www.lazzoproducts.com/.

Liquid Nails/Perfect Glue (#8414). Variety of adhesive products. www.perfectglue.com.

Little Black Dress Designs (#7715). "Essential items for every crafter's closet. www.littleblackdressdesigns.com/. 

Magnetic Poetry (#7304). Refrigerator, word magnets. www.magneticpoetry.com/.

Malin Images (#7003). Fundraising photography programs. www.fundraisinginaflash.com/.

Mara-Mi (#7213). Papers, scrapbook and party supplies. www.mara-mi.com/.

May Arts (#7503). Wide variety of ribbons. www.mayarts.com/.

Maya Road (#7117). Fibers, accents, and embellishments. www.mayarts.com.

Memory Maker Photo Jewelry (#8108). Bracelets, pendants, etc., into which photos can be placed. www.memorymakerbracelet.com.

Memory Stitches (#7605). Embroidered papers and kits. www.memorystitches.com/.

Mercart USA (#8114). Metal embossing supplies and video. www.mercartusa.com.

Michael Miller Memories (#7512). Fabric paper for scrapbooking. www.michaelmillermemories.com/.

MM's Designs (#8105). Stationery, including the "Guess How Much I Love You" Collection. www.mmsdesigns.com/.

Nature's Handmade Paper (#8004). Handmade paper in solid or petal papers, skeleton leaves, and organza ribbon. www.natureshandmadepaper.com/.

1. Emailed from a friend: Question: What is the truest definition of Globalization? Answer: Princess Diana's death. Question: Why?

Answer: An English princess with an Egyptian boyfriend crashes in a French tunnel, while riding in a German car with a Dutch engine, driven by a Belgian who was drunk on Scottish whisky, (check the bottle before you change the spelling), followed closely by Italian paparazzi, on Japanese motorcycles; treated by an American doctor, using Brazilian medicines.

This is sent to you by a U.S. citizen; you're probably reading this on your computer that uses Taiwanese chips, and a Korean monitor assembled by Bangladeshi workers in a Singapore plant, transported by Indian lorry-drivers, hijacked by Indonesians, unloaded by Sicilian longshoremen, and trucked to you by Mexican illegals.

That, my friends, is Globalization.

2. You think our industry is just a U.S. industry? Recently I've gained subscribers in Algeria and Panama. CLN already has subscribers in Hong Kong, China, Japan, Malaysia, Philippines, Canada, Mexico, Great Britain, Germany, Spain, Netherlands, Australia, and New Zealand. And I always try to say "U.S." when talking about the 50 states, ever since a Mexican subscriber said, "Hey, we're America, too!"

3. The National Retail Federation Foundation announced it received a $2.25 million grant from the Department of Labor to develop curriculum used to train nearly 44,000 workers in the retail industry. Excuse me? With a federal budget deficit of $600+ billion, the taxpayers are going to pay to train retail employees? Shouldn't that be the retailers' job?

LICENSING. The International Licensing Show in New York was very active and crowded, particularly the movie studios. Look for new films such as SpongeBob SquarePants, Lemony Snicket's Series of Unfortunate Events, The Hitchhikers Guide to the Galaxy, and C.S. Lewis's Chronicles of Narnia: the Lion, the Witch and the Wardrobe, and numerous sequels.

GREAT BRITAIN. Scrapbooking Memories and More is a new British magazine dedicated to scrapbooking, stamping, and cardmaking in the UK and Europe. The first issue will appear on newsstands across the British Isles this summer, supported by special promos and TV shows that reach 11+ million households. The magazine will feature how-to projects, layout ideas, manufacturers' product listings, etc., and reportedly will also provide opportunities for manufacturers to sell their products through TV shows and an interactive website. For more info, call Julie McGuffee in the U.S. at 817-448-8122 or email scrapbook@flash.net.

SCRAPBOOKS. A new organization, The SMART ( Scrapbook Manufacturer And Retailer Trade) Group will hold its inaugural meeting July 15 at 9 am in rm. 9 of ACCI convention center. All independent scrapbook retailers – and vendors who sell to them – are invited. To learn more, visit www.thesmartgroup.biz.

PAINTING. Delta announced its new Painting Challenge. Winners receive $1000 U.S., their projects featured in Delta’s 2005 consumer ads and at the 2005 CHA, Creative Painting, and Society of Decorative Painters show booths. For more, visit www.deltacrafts.com.

IMPORTS. The Dept. of Commerce raised the anti-dumping duty on Chinese candles from 95.95% to 108.3%, Gifts & Decorative Accessories reported.

TV. On July 1, Jo-Ann's CEO Alan Rosskamm will be a guest at 6:40 am on the Bloomberg network's Morning Call. He will also appear on Business Week: Money Talks on the Bloomberg network later in the month.

PROMOS. This month CHA (formerly HIA) will distribute kits regarding its Celebrate the Season promo that runs Sept. 19-Oct. 2. The kits include specific instructions on how stores can participate and take advantage of the nationwide promotion.

SIGN OF THE TIMES. Scrapbooking has even made the comic strips. The 6/7 - 6/10 segments of the Zits comic strip dealt with mom waxing enthusiastic about making a scrapbook with her clearly unhappy teenage son.

ROLODEX. Xyron moved to 7400 E. Tierra Buena, Scottsdale, AZ 85260. Other info remains the same: call 480-443-9419, 800-793-3523, or for customer service, 480-948-4690; fax 480-443-0118.

PEOPLE. Deb Knauer has resigned as Publisher of Krause Publications craft division (CNA, Michaels Create!). A replacement has not yet been named ... Lynda Musante is Marketing Dir, Hobby/Craft, for Cardinal Brands.

QUILTING. The 3rd series of America Quilts Creatively uploads to PBS stations July 4. Hosted by Karen Good and Sue Hausmann, the series is sponsored by Pfaff, Hewlett Packard, Electric Quilt, Sulky of America, The Warm Co., Rowenta, Sew Artfully Yours, Rit Dye, With Needle and Thread, Brandy's, Lazy Girl Designs, Cactus Punch, Jo-Ann's, Krause, Bear Thread Designs, and the Picket Fence. Call your PBS station and ask for it.

UNIONS. Perhaps a crack has appeared in Wal-Mart's defense against the unionization of employees. A majority of the workers in a Wal-Mart in Terrace, British Columbia recently signed membership cards applying to the Labour Relations Board for union representation with the United Food and Commercial Workers of Canada. The Board will conduct a mandatory vote of the employees. Canadian Wal-Mart employees in stores in Thompson, Weyburn, and North Battleford are also trying to join the union.

PAINTING. Tera Leigh will appear on the Home Shopping Network July 2 for a painting kit (Daler-Rowney acrylic paint and brushes, Stencil-Ease placement guide) and her North Light book, The Complete Book of Decorative Painting. The times are 2, 7, and 10 am and 4 pm. (To read more about Tera, click on Business Profile Archives in the right-hand column.)

CONDOLENCES. To the family of Robbie Rapoport, formerly of Simplicity Pattern, who passed away after a long illness.

DIVIDENDS. Hancock declared a cash dividend of $0.12/share on the outstanding common shares, payable July 15 to shareholders of record July 1 ... Michaels declared a quarterly cash dividend of $0.12/share payable July 30 to shareholders of record July 15.

SHOWROOM. Wrights opened a new showroom in the Kowloon District of Hong Kong to show its various product lines, including ribbon (seasonal and everyday), trimmings for apparel and craft use, home dec trims, tassels and tiebacks, appliques, packaged bias tapes, knitting/crochet implements, and quilting tools and notions. For appointments, call Hong Kong at 413-436-7732, ext. 338 or the U.S. at 800-628-9362, ext. 338.

DESIGNERS. Kalmbach Publishing is seeking contributors with innovative, upscale projects to feature in a new collection of craft books & booklets. Original projects needed in quilting, knitting, crocheting, scrapbooking, card and altered-book making, stamping, and silk floral design. Submit photos, patterns/illustrations, and instructions. Process shots are a plus, and finished items should be available for additional photography by Kalmbach. Call Kristin Schneidler at 262-796-8776, ext. 296 or email kschneidler@kalmbach.com.

Note: CLN will profile one company per issue, which will remain online for at least a year. A Profile is a perfect way for a new company to let itself be known to the industry, or for an established company to enhance its reputation by showing the industry its history, diversity of products, personnel, etc. For more information on how your company can be profiled, call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.

To see the latest job openings in the industry, click HERE.

A. C. Moore (ACMR). Last*: 26.75 ... Change**: +0.08
Hancock Fabrics (HKF). Last*: 12.50 ... Change**: +1.00
Jo-Ann Stores (JAS). Last*: 28.73 ... Change**: +0.05
Michaels (MIK). Last*: 53.28 ... Change**: +1.64
Rag Shops (RAGS). Last*: 3.39 ... Change**: -0.08
Wal-Mart (WMT). Last*: 55.85 ... Change**: -0.74
CLN Retail Index. Last*: 180.50 ... Change**: +1.1%
Dow Jones Index. Last*: 10,377.52 ... Change**: +1.3%

Tired of your religion? Try the Church of Craft. No, we are not kidding – visit www.churchofcraft.org. It has an ordained minister, Rev. Trismegista Taylor, who told the San Francisco Chronicle, "There's no dogma. There's no enforced belief to belong to this church – except that making can be a spiritual practice." There are congregations in New York, San Francisco, Los Angeles, Seattle, Montreal, Portland – and Stockholm.

The mission statement: "The Church of Craft aims to create an environment where any and all acts of making have value to our humanness. When we find moments of creation in our everyday activities, we also find simple satisfaction. The power of creating gives us the confidence to live our lives with all the love we can. By promoting creativity, we offer access to a non-denominational spiritual practice that is self-determined and proactive."

Church members just congregate and ... craft. "There's definitely discussion about God and faith," Taylor told the Chronicle. "And on the other side, there's discussions of European and Continental knitting, and which is better. People are passionate about craft, and they're passionate about religion.... Those discussions never end with any hurt feelings – because it's hard to get really angry with someone that you're sharing your glue stick with." 

REMINDERS

1. 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. If you want a hard-copy of this issue, click on "Printer Friendly version".

3. If your company is a paid subscriber, everyone in the main office is welcome to register, free. Just click on "Current Subscribers Click Here To Register."

4. If you want to recommend CLN to a friend, use the "Tell Your Friends" box on the home page.

5. Creative Leisure News will return to its regular publishing schedule of the first and third Mondays of each month. Your next issue will be Monday, July 5. HAPPY 4^TH OF JULY!

xxx

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