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Date: September 20, 2004
Vol. VIII, No. 18

Printer Version

TABLE OF CONTENTS

bulletCommentary: Keep the Scrapbook Dialog Going
bulletNew Columns This Issue
bulletTake the CLN Poll: New Products for 2005
bulletCLN Poll: 2004: Design Trends on the Upswing
bulletRag Shops Sold
bulletFrank's Bites the Dust
bulletKatherine Yoss, Bob Misterka, Rest in Peace
bulletKatherine Yoss and History
bulletRegimentation, Price vs. Creativity, Service, Pt. I
bulletRegimentation, Price vs. Creativity, Service, Pt. II
bulletEmail: Industry Sales, Politics, and Dollar Stores
bulletCan This Scrapbook Store Be Saved?
bulletRandom Notes, Random Thoughts
bulletMiscellaneous News
bulletBusiness Profile
bulletThe Creative Network: Job Openings
bulletCLN Retail Index
bulletWhat the Human Race Should Be All About
bulletReminders

COMMENTARY: KEEP THE SCRAPBOOK DIALOG GOING

The last issue of CLN included a thoughtful email from Lisa Kanak, an independent scrapbook retailer. Her complaints made me worry about the future of independents, so I emailed a number of industry veterans who are smarter than I am and asked for their thoughts. Their analyses – and Lisa's answers – are in the columns listed below.

In effect, CLN has created a dialog between independents and vendors, which is critical to the success of both. We're happy to play a part in the process, but it would be even more productive if manufacturers and storeowners talked face to face.

So here's an idea: Vendors, if you're exhibiting at next weekend's MemoryTrends show, scan your customer list, pick six of your best who are likely to attend the show, and invite them to breakfast in Las Vegas. The point is not a sales pitch, but simply to ask them how you can better serve them.

You'll receive two types of replies: 1. Practical suggestions that will increase the retailers' profits – and therefore enable them to buy more from you; or 2. impractical suggestions which are impossible for you to use – but give you an opportunity to explain the realities of manufacturing and therefore help retailers be more realistic.

We gotta talk, folks. It's the only way to survive.

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NEW COLUMNS THIS ISSUE

Benny Da Buyer. Is it impossible for a small scrapbook store to survive? Absolutely not, say a number of retailers, but .... Members of the Sierra Pacific Crafts group analyze the plight of the independent.

Vinny Da Vendor. A dialog between vendors responding to Lisa's complaints – and Lisa's answers.

Business Wise. Mike's concerns about the future of independent scrapbook retailers – and some thought-provoking answers.

Memory, Paper & Stamps. Looking for new markets/customers? Sandra Joseph of Reminders of Faith relates her experiences with the Christian Booksellers Assn.

Kate's Collage. Kate loans her column to industry writing pro Kindra Foster who has simple but effective tips for improving your communication skills.

Scene & Heard. Trend pro Ellie Joos reports from the New York Gift Show.

Note. If you surf to a column and it's an "old" column. Click on your "Refresh" or "Reload" button on your browser.

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TAKE THE CLN POLL: NEW PRODUCTS FOR 2005

Vendors: How many new lines will you introduce for 2005? Is that more, fewer, or the same as the number of new collections or lines you introduced this year? To vote, click on Industry Polls.

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CLN POLL: DESIGN TRENDS ON THE UPSWING

"Retro" was the clear winner in readers' predictions of design trends increasing in popularity, with 33%. Others: Modern/Contemporary, 22% ... Americana, 11% ... Traditional, Classical, Spiritual/Religion, and Tropical/Island all came in at 7% ... Asian, 4% ... Celebrity/Pop, Lodge, and Safari/Adventure did not receive any votes.

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RAG SHOPS SOLD

An affiliate of Sun Capital Partners has entered into a stock purchase for 2,671,199 shares (56% of all the issued and outstanding shares) for $4.30/share, 23% over the closing price on Sept. 10. The affiliate of Sun Capital will begin a tender offer for the company's remaining shares.

As part of the deal, Chair/CEO Stanley Berenzweig and board secretary Doris Berenzweig have resigned; President/COO Jeffrey Gerstel and other senior execs will assume the Berenzweigs' duties. Rag Shops will also increase the size of its board to seven directors and an affiliate of Sun Capital Partners will designate four of those directors.

Rag Shops also announced it will restate its financial statements for the first three quarters of its fiscal year ended Aug. 29, 2004 to increase its net loss by $293,247 ($0.06/share) to reflect a recently discovered under-accrual for health insurance benefits.

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FRANK'S BITES THE DUST

Frank's Nursery and Crafts, once the Michaels of both the craft and garden industries, filed for bankruptcy again and plans to liquidate. Media reports put the number of employees between 2,800 and 3,900 in 169 stores in 14 Northeastern and Midwestern states. The company has $140+ million in debts and $124 million in assets. It was the second bankruptcy in three years.

CEO Walter Spokowski cited as the immediate causes poor weather, lower customer traffic, and failure to obtain additional financing for yet another restructuring plan. He did not mention that Wal-Mart, Home Depot, Lowe's, and other big-box retailers had eaten their lunch in the garden area, after the various craft chains had driven Frank's out of crafts. The latest quarterly report listed same-store sales down 4.2% and a net loss of $1.9 million.

Frank's began as a street-corner fruit stand in Detroit in the 1940's, founded by Frank Sherr and Max Weinberg who began selling 79-cent geraniums with the produce, the Detroit Free Press reported. By the mid 1980's the then publicly held chain had grown to more than 200 stores and members of the highly regarded buying staff played very influential roles in our industry's trade associations.

Then Frank's expanded too quickly and eventually began losing market share to craft, discount, and home center retailers. Management seemed to change strategy and personnel every six months, the veteran buying staff left, and the company drifted. The first bankruptcy was in 2001. Frank's retained Keen Realty to market and dispose of the company's 61 owned and 108 leased properties ranging in size from 20,000 to 80,000 sq. ft. For more info, call 516-482-2700 or email: mmatlat@keenconsultants.com.

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KATHERINE YOSS, BOB MISTERKA, REST IN PEACE

Two industry pioneers and long-time friends lost their battles with cancer and a brain tumor since our last issue, Katherine Yoss of Katherine Yoss & Associates, and Bob Misterka of Demis.

Once a small manufacturer (Mats Etc.), Katherine founded and built Katherine Yoss & Associates into one of the finest manufacturer's rep agencies in the industry.

A few months ago Katherine wrote to friends, "There is no doubt that sometimes I feel damn sorry for myself. Then I stop and think how very fortunate I have been, all of the places I have been, all of the wonderful people that have so touched my life and continue to do so. The wonderful family I have and the support that is given me daily. I then stop and count my blessings and say 'Thank You God'. Who knows, I may just be like that battery that just keeps going and going. I know that I have certainly amazed the doctors at times."

For decades Katherine and Bob amazed – and delighted – their countless friends in the industry Send condolences to her husband, Don, and family to Katherine Yoss & Associates, P.O. Box 162, 122 W. 4th St., Appleton City, MO 64724.

Bob is survived by his wife, Cynthia, son Brian, daughters Lois and Marjorie, and four grandchildren. Brian now presides over Demis, a family-run business that Bob and Cynthia bought in 1975 and turned into a perennial leader in unfinished wood.

Bob was an early participant in Southeast Craft & Hobby Association, one of the leading regional craft groups of the time. During the miniatures' craze of the 70s, Bob developed a unique system that allowed anyone to build a custom doll house from scratch, and he consistently found better ways to produce exciting and timely new wood products at lower costs.

Bob always credited Demis' success to his employees (and to Katherine Yoss, one of his close friends and reps), many of whom remained with the company for many years. In recent years Bob became the sole supplier of wood kits for the highly successful Home Depot's kids workshop program.

John McDonald of Sugarloaf said, "Bob had more friends than anyone I know, and he will be greatly missed by all of them. With his fun and inviting personality, Bob was always bringing people together both in business and in his personal life. A great cook and an avid houseboater on Lake Lanier near his home in the Atlanta area, Bob was always throwing together great meals and parties."

Send condolences to Demis Products, P.O. Box 348, Lithonia, GA 30058.

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KATHERINE YOSS AND HISTORY

Katherine Yoss played a pivotal role in our industry's history. Until the mid-1980s, the then Hobby Industry Association was dominated by hobby companies (plastic models, radio control cars, etc.), even though the growing craft segment, riding the macrame wave, had finally outnumbered the hobby companies.

HIA was divided into various product divisions, rather than by function (crafts and models rather than manufacturers and retailers), and Katherine was chair of HIA's Craft Division. In 1980, when the hobby-dominated Nominating Committee picked another all-hobby list of nominees for the board, the Craft Division rebelled. It ran its own slate of candidates, even taking out a full page ad in a trade magazine encouraging craft members to attend the annual business meeting during the 1981 HIA show in Atlanta where the election would be held. Katherine was one of the candidates.

At the time, HIA used an obscure voting method which none of us ever figured out, and the craft rebels lost the election at a bitter annual meeting that lasted about six hours.

But the hobby-dominated board got the point. The following year the Nominating Committee nominated Katherine and she was elected, serving and carrying the craft banner for six years, including trying to change HIA's name to the Craft & Hobby Association.

Eventually the craft companies realized the key to power was to attend the business meeting and elect craft people to the Nominating Committee, which would then nominate craft people to the board.

Over time the craft companies came to dominate the board and the membership as crafts rode the dollmaking, cross stitch, and fabric paint waves. Finally the hobby companies left HIA.

Today HIA is the Craft & Hobby Association, as Katherine fought for, and next year the show returns to Atlanta where the seeds of the industry we know today were sown.

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REGIMENTATION, PRICE VS. CREATIVITY, SERVICE, I

Note: Retailers walk a fine line in many areas. Pt. I is an email from a part-time Michaels employee responding to the CLN report that Michaels is trying to create the "perfect store." Pt. II is an answer to her complaints.

I demo and teach at Michaels a few times a month. Lately when I go there either something has changed or is in the middle of being changed. Great, right? Not if you work at Michaels. For instance, our floral designer had created a beautiful fall display in the entryway all the way to the ceiling. That had to be taken down because corporate doesn't want any "fluff."

Another time, all the back-to-school items that had been neatly arranged in the entryway were gone. Everything had to be cleared out and put back differently. Apparently the district supervisor came around and took pictures of everything, and if something wasn't standard, it had to be changed. (Have they addressed the fact that Michaels has several different size stores and floor plans?)

I'm all for a chain having what I need, no matter where in the country I am, but what's the point of hiring creative people if they have no input into their job? What type of people want to come in and do as they're told down to the last minute detail? I guess we'll find out.

The turnover in the last year at this store has been horrific, including numerous event coordinators. One employee told me they've lost 23 people in three months. What people don't realize is the amount of work the employees are expected to do. The associates check, but they also stock. So it goes like this.

The front-end supervisor answers the phone, takes returns, answers customers' questions, stocks the area around the cashier's station, and checks customers out. When the line has more than four or five customers, she calls an associate (or two), who is stocking product.

The associate stops what she is doing, possibly climbs off a ladder, comes to the front, and checks. Then when there are no customers, she returns to work. Repeat this several times an hour multiplied by however many hours her shift is. Plus, help any customers who approach her. Now they've piled on even more work with the rearranging of the store.

I now realize why Michaels' employees are never eager to help customers. I would be interested in some employee turnover figures for Michaels. I imagine it's very high. – Name Withheld

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REGIMENTATION, PRICE VS. CREATIVITY, SERVICE, II

Chain stores have to walk a fine line. Of course execs want individual store employees to have the freedom to be creative, but Michaels store managers used to have so much freedom (to order products, create endcaps, etc.) that one vendor told CLN, "They're the cowboys of the industry."

The result was organizational chaos. One year it reached the point where the central office had to call vendors to learn how much the company had ordered that year. This was in the pre-Rouleau era, and Michaels was near bankruptcy.

The other line chains walk is price and service. If chains hired more store clerks, customers service would improve, employee morale would rise, and employee turnover would fall. But every product in the store would have to cost more. And the customers in almost every retail sector vote with their pocketbooks for low prices. True, retailers may have trained consumers to always shop for the lowest price, but that's reality today. Only the truly exceptional, creative independent can operate differently.

Michaels must be doing something right; the stock just split again. (See below.)

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EMAIL: INDUSTRY SALES, POLITICS, AND DOLLAR STORES

People who have been in the business for a number of years know one thing to be true: "Sales suffer in a presidential election year." Pre-election jitters and political ads dominate the air waves with mud slinging and stupid nonsense. People get sick of it, and they just sit back and wait until it is over. Unless we have a situation like we had in 2000, people will get back to normal shopping after the first week in November. It has always happened in the past and it will happen again.

Dollar stores have created a monster; now all the copycats are coming out of the woodwork; Target has its dollar sections in the front of their stores. Wal-Mart is now featuring $1 merchandise (e.g. 1,000 drinking straws) at the checkouts. And they are looking for more stuff like that.

Now some of the craft chains are featuring dollar-stuff sections. The funny thing about the whole mess is that rumor has it that Dollar Tree is going up to $5.00. The folly of the chains going after that business is they will actually downsize their business; they'll all be working harder for less money. So the old switcheroo will take place; the dollar stores will be going up to $5 and the chains will chase the $1 sale. – Thomas J. Murray, Pepperell Braiding Crafts

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CAN THIS SCRAPBOOK STORE BE SAVED?

(Note: Scrapbook Retailer magazine received the following email from an independent scrapbook store and forwarded it to CLN to see if we could help. We are publishing it here in hopes that readers will have some suggestions, advice, or leads for her.)

I am writing because I would like to pick your brain about my current situation. I really don’t know where else to turn and thought maybe you would have some good ideas. I opened my business in 2002. I love what I do, but I am now faced with possibly going out of business.

When I opened this business we borrowed money from a couple of different sources (including a retirement account). I tried a year after I was in business to consolidate my debt into one payment. I went to every lending institution possible and even the Small Business Administration; everyone told me the same story. I have no collateral to back it up because all of my personal assets are tied up here. If I could consolidate this mess into a little longer loan arrangement, it would free up my assets!

This has been a wonderful business with great potential and I know I could do so much more if I could work out something with a loan and have a little extra set back for slow times. However, I am so strapped that I cannot generate enough new product in here and move out the old to keep customers in the store. We are a very small town who has had its share of factory closings, etc. But I feel I’ve been through the worst and our economy will get better. I’m just not sure it will be in time for me. I guess what I am asking is if you know of any lending institutions that would be willing to work with me?

(Note: If you have any suggestions, email them to mike@clnonline.com.)

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RANDOM NOTES, RANDOM THOUGHTS

Best Buy is the latest big retailer to warn vendors that it will require them to have Radio Frequency Identification (RFID) tags on their products. It will take a couple of years before our chains will require it, but believe me, it's coming. If you want to sell our industry's chains five years from now, you better look into RFID tags. This is exactly what happened when Wal-Mart led the way with now ubiquitous UPC codes and EDI technology.

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MISCELLANEOUS NEWS

MICHAELS. The board of directors approved a two-for-one stock split that will be effected as a stock dividend for shareholders of record Sept. 27. The dividend will be paid on Oct. 12. The board also announced an increase in the quarterly cash dividend from $0.12/share ($0.06 on a post-split basis) to $0.14, payable Oct. 29, to holders of record of pre-split shares Sept. 27. It is the second 2-1 split since 2001 and the second dividend increase since cash dividends were initiated in 2003.

ACQUISITION. Magic Scraps will join Advantus' Craft and Hobby Division as of Nov. 1. It will retain its key creative staff and will continue to develop and market products under the Magic Scraps name. Magic Scraps founder Ashley Smith said, "I feel that with Advantus behind us we can accomplish so much. Not only does it give us the freedom to produce more products, it will also streamline our customer service; improving all aspects of our business from sales to manufacturing and shipping." The Advantus Craft and Hobby Division already includes The Cropper Hopper and Heidi Swapp brands. Visit www.advantus.com and www.magicscraps.com.

YARN. The largest Knit-Out & Crochet event will be Oct. 3, noon - 5 pm, at Union Square Park in New York City. Emmy winner Terri Ouellette (Terry O), national CHA spokesperson, will be the guest commentator for the Knit-Out fashion show. Meanwhile, the p.r. onslaught continues. Knitting/crochet is mentioned in the Nov. issue of In Style (about men knitting); the Jan./Feb. issue of Cooking Light; there are knitting projects in Country Home, Dance Spirit, and American Cheerleader; Warm Up America stories in Better Homes & Garden and Parents; recent articles in the Birmingham News and the L.A. Times-Washington Post News Service; segments on National Public Radio); and believe it or not, there was a knitting question on an episode of Jeopardy.

MICHAELS. The theme the 8th annual vendor conference was "The Pursuit of the Perfect Store," Essentially that means making the transition to a merchandise-driven, rather than an operations-driven, company ... 2004 Vendor Partners of the Year are Caffco Int., Binney & Smith, Lion Brand Yarn, and MCS Industries ... Vendors who achieve the first three levels of operational performance can strive to become "Gold Vendors" if they ship on time, complete, and error free.

STOCK. Jo-Ann's Chair/President/CEO Alan Rosskamm has adopted a plan under an SEC rule to provide for pre-determined sales of a portion of his shares and shares held in family partnerships and a family trust over the next eight months. The plan allows Rosskamm to sell up to 197,250 shares of common stock over the term of the plan. The maximum number of shares that may be sold represents approximately 9.0% of his beneficial holdings and approximately 0.9% of the issued and outstanding common stock of the company. Most of the shares are held by family partnerships and trust and are being sold at the request of other members of the family.

LEGISLATION. The U.S. Senate Appropriations Committee blocked the Bush administration's new overtime pay rules by adding it to an appropriations bill, which President Bush has now threatened to veto. (Comment: When the Labor Department announced the new overtime pay rules, CLN tried to analyze them to see if they would be particularly relevant to our readers, but the rules were so complicated, we gave up.)

HANCOCK. The board of directors declared a cash dividend of $0.12 cents/share on the outstanding common shares, payable Oct.15 to shareholders of record October 1.

ADVICE. Duckwall-ALCO hired AlixPartners to advise the company on "strategic positioning and operating effectiveness" for $470,000 + expenses. The retailer has 264 stores in Midwestern states. To learn about AlixPartners, visit www.alixpartners.com.

PROMOS. Michaels will host a Free Family Event at its 833 Michaels stores Oct. 2 from 10:00am until 3:00pm. The event will allow participants to make one of several projects using Delta paint, Forster Woodsies, and Royal Langnickel brushes. Consumers can choose to complete a holiday project that can be used as a Halloween, Winter, Christmas, etc., decoration.

SCRAPBOOK VENDORS. Many craft manufacturers have a policy of paying a nominal sum to designers who use the vendors' products in published articles and books. They will also provide product to designers for published projects. It's a smart, inexpensive strategy: it can generate extensive publicity for very little cost. Pamela Smart is collecting information on scrapbook vendors with such a policy so she can disseminate it to designers. Send info to Pamela at pcsmart@bellsouth.net.

LISTS. The current issue of Vanity Fair named Lee Scott, CEO of Wal-Mart, as the most powerful businessperson in the country. Scott, "the folksy chief of the retail mega-giant, drives himself around in a Volkswagen Beetle and lives a vastly more modest lifestyle than most others on the elite list," the New York Post reported.

AWARDS. Michaels CEO/President Michael Rouleau was honored last week at the Retail Industry Leaders Association's Annual Leadership Exchange Conference in Dallas. Also honored were Joe Scarlett, Chair/CEO of Tractor Supply, and Brad Anderson, Vice Chair/CEO of Best Buy.

NEEDLEWORK. The Oct. issue of Elle said needlepoint "has overtaken knitting as the hip-kitten hobby of choice." The article featured pillows by Heather Dunbar which retail for $425 - $750! ... The 11th series of Needle Arts Studio with Shay Pendray downloads to PBS stations Oct. 24. Sponsors include Coats & Clark, DMC, TNNA, Lion Brand Yarn, The American Needlepoint Guild, and Warm Up America.

LOOKING TO HIRE. Anna Griffin, a manufacturer/licensor in the invitation, gift, and scrapbooking categories, is looking for an Atlanta-based National Sales Manager. Candidate should have gift, stationery, and/or craft background and experience working with strong manufacturer rep groups. Contact jobs@annagriffin.com with resume and salary history. No phone calls at this time.

BOOKS. Grace Publications has formed a new division, in effect changing its name to Indigo House. Apparently there is a publisher in the education market named Grace Publications, and "Indigo House" should alleviate the confusion. The latest book is Greetings with Dimension by Margaret Hanson Maddox, featuring dimensional (pop-ups, pull-outs, etc.) card projects. Rolodex: 605 Wesinpar Rd., Johnson City, TN 37604. Call 423-434-2983, fax 423-434-2993, or visit www.indigohouse.com.

NEED A CONSULTANT? Industry veteran Angus Mackie, president of MMC, Inc., is available for consulting work in the marketing/website development, sales training, publishing, or business development arena.. Can do business plans, help pitch for VC cash, analyze marketing campaigns, help plan media schedules, etc. Call 607-547-9359.

PEOPLE. Sandi Genovese, formerly of Ellison and hostess of Scrapbooking on the DIY network, has joined Mrs. Grossman's as Creative Director.

MEDIA. The second issue of Crafts Business, a publication that covers business and lifestyle topics for craft artists and other craft professionals, is now available. For more info, visit www.craftsbusinessmagazine.com or call 800-658-9881.

QUOTATIONS. "The No. 1 issue facing the customer today is energy prices," – Lee Scott, CEO of Wal-Mart (Reuters) ... "Wall Street is keeping one eye on the spending power of low-income Americans, whose endurance appears to be waning as their federal tax refunds run out." – TheStreet.com

SCD. The annual Educational Seminar of the Society of Craft Designers was held last week in Albuquerque, NM and attracted a 5% increase in corporate (manufacturer, publisher, etc.) members. There were 130 designers and 90 corporations were represented. A total of 92 designer showcases offered several hundred original projects to the corporate members, while 69 manufacturers had demos and make-it/take-its giving designers the opportunity to work with the newest products. The 2005 Seminar will be Atlanta Oct. 5-8. For more, email scd@offinger.com, or call 740-452-4541.

INTERNET. Marci Whitford, author of Passing On Your Legacy of Love, has a new website, www.ScrapbookYourLegacy.com. Marci also organizes bus trips for consumers and offers a free newsletter – info available at the site. Soon there will be an e-commerce section, too.

COUPONS. We heard but could not confirm that there was a skit on NBC's Late Night with Conan O'Brien about not being able to use more than one coupon at Michaels. (Comment: We're usually asleep then.)

FINANCING. Sam's Club and GE Consumer Finance now offer a "Premier Line Of Credit" to Sam's Club Business Members. The program offers a credit line of up to $100,000, and interest rates as low as prime-plus-zero. Applications are available at Sam's Club and online at www.samsclub.com under the "member benefits" section.

MARTHA. Tired of waiting for appeals, Martha Stewart requested she start her jail sentence as soon as possible.

PAINTING. This Wednesday NBC's The Today Show will feature a behind-the-scenes segment with the Bob Ross Co., host of the PBS Joy of Painting series.

BEADS. A new series, Beads, Baubles, and Jewels, will be downloaded Nov. 10 to PBS stations. The host is Katina Forte, former jewelry host on QVC, and sponsors include Bead & Button magazine, Fire Mountain Gemstones, Bead Style magazine, Beadalon, Westrim, Blue Moon Beads, Eurotools, and Polyform. Call your local station and ask for it!

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BUSINESS PROFILE

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.

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THE CREATIVE NETWORK: JOB OPENINGS

To learn about the latest jobs available through The Creative Network, click on Jobs in the left-hand column, or click HERE.

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THE CLN RETAIL INDEX

A. C. Moore (ACMR). Last*: 23.05 ... Change**: +2.20
Hancock Fabrics (HKF). Last*: 13.04 ... Change**: +1.82
Jo-Ann Stores (JAS). Last*: 27.40 ... Change**: +0.11
Michaels (MIK). Last*: 58.46 ... Change**: +0.46
Rag Shops (RAGS). Last*: 4.25 ... Change**: +1.07
Wal-Mart (WMT). Last*: 52.48 ... Change**: -0.77
CLN Retail Index. Last*: 178.68 ... Change**: +3.4%
Dow Jones Index. Last*: 10,284.46 ... Change**: +0.2%

*Sept. 17 ** from Sept. 3 Prices are exclusive of dividends

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WHAT THE HUMAN RACE SHOULD BE ALL ABOUT

(Note: The following is from Wolfie Rauner, mostly retired now, but easily one of the most well liked, effective sales reps this industry has ever known.)

In reading this week's CLN, I saw the name ROWENTA, which reminded me to share an interesting story with you. You, as well as most people, are not aware that ROWENTA is an acronym. Before World War II, the company was Jewish-owned and was called Robert Weintraut Aktion Gesellschaft (GMGH).

My father was the sole sales representative for western Germany, Belgium, Luxemburg, and eastern France. The company manufactured large coffee & expresso machines found in every European Caffee & Restaurant. They only started making small appliances after WW II.

After the Nazis confiscated all Jewish property and nazified every business, the new managers were no longer permitted to employ Jews. My father, living in Luxemburg, was secretly employed by the sales manager without the knowledge of the authorities. Mr. Kayer, the sales manager, refused to let my father go, both out of loyalty and his sales successes. From the time in 1938 when the company was seized and even during the German occupation of Luxemburg , Mr Kayser used to bring my father his commission in cash, late, in the middle of the night. All this while wearing his party lapel button, which every one who wanted to survive was forced to wear.

Shortly after the war Mr. Kayser searched out my father in America, having heard we escaped, and sent him a check for commission he said was still due my dad.

After the war Mr. Kayser became CEO of the company and as long as my father was alive sent him a sample of each new appliance when it came out.

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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 is published the first and third Mondays of each month. Your next issue will be Monday, Oct. 4.

xxx

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