Date: December 18, 2006
Vol. X, No. 24

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TABLE OF CONTENTS

COMMENTARY: SO MUCH TO READ, SO LITTLE TIME 

The most common compliment I receive for CLN is, "I like it because I can read it in 10 minutes." Sorry folks, not this time. I think this issue has the best collection of informative, thoughtful, thought-provoking, touching, controversial, and funny columns I've ever published – they're much too good to hold back.

The issue itself is longer, too. Between the news and the summary of the year's top stories, there's a lot to read and think about. If you had any doubts that this is a creative, ever-changing, (goofy?), and fascinating industry, this issue will convince you.

Business-Wise. Industry pros give their predictions for the new year: Industry veteran Howard Hoffman; manufacturer Jim Scatena (FloraCraft); retailer Jim Bremer (Tall Mouse); distributor Frank Stapleton (MacPherson's); a scrapbook vendor; and a manufacturer's rep.

"Vinny da Vendor". Independents contacted CLN complaining about how Provo Craft has marketed the Cricut. Provo's Dir. of Corporate Communication/Training responds.

"Benny Da Buyer". Angry independents comment on Provo's response.

Designing Perspectives. One of the industry's most successful designers, Marie Browning, describes in detail the design and product trends you'll see in 2007, with links to websites that illustrate her points.

New Trade Show Exhibitors. Descriptions, booth numbers, and links to websites for companies exhibiting at the CHA Winter Show for the first time.

Category Reports. A painting teacher helps injured Army vets recuperate from Iraq and past wars. (Got problems? This will put them in perspective.)

Industry Research. The sixth annual Craftrends "Consumer Participation Survey."

Kate's Collage. Some tongue in cheek holiday eating advice.

Note: To read the columns, click on the titles in the left-hand column. If they appear to be "old" columns, click on the "Refresh" or "Reload" button on your browser.

Business-Wise contains a number of industry pros who have gazed into their crystal balls and predicted the future. Now it's your turn. What kind of year will 2007 be for your business? To vote, click on Industry Polls in the right-hand column or click HERE.

CLN survey voters gave the Thanksgiving weekend about a C+. Half of the respondents in this unscientific poll said sales were "ok." More than a fifth, 21.9%, said sales had been very good, while 18.8% said they were disappointing. "Excellent," said 6.3% while 3.1% labeled the season "very disappointing." (Note: Most voters voted on the Monday after the Thanksgiving weekend.)

In recent years, the annual end-of-year issue of CLN said it had been a "year of change." Not this time; 2006 was a year of upheaval. Leadership changes at A.C. Moore and Jo-Ann's, new owners at Michaels, and rumors of category changes at Wal-Mart have vendors and competitors wondering about the future.

Every issue of CLN in 2006 included a report of a company being sold.

Overall, it was a mediocre year in terms of sales, but put that in perspective: according to CHA research, we're a $30+ billion industry, so we had to sell $30 billion to have a "mediocre" year. Not that long ago, a $30 billion year would have been considered sensational.

Yarn was strong but disappointing, because the pipeline was so full; consumers remained interested, but price-cutting to deplete excess inventory reduced profits. Scrapbooking, stamping, and paper crafting remained strong, but consolidation, the demise of smaller/weaker vendors and retailers, and the advance of digital scrapbooking muddied the overall picture. Beads and kids crafts were solid. Home sewing and felt, wearable art, needlepoint, and craft basics showed signs of a resurgence. Decorative painting and cross stitch struggled. Younger consumers, while not the industry's primary demographic, had major effects on numerous product categories.

In general, margins declined as price-cutting ruled the roost.

China continued to become more influential. Imports increased, while Congress squawked about China floating its currency and clamping down on product copying. But as long as the U.S. needs China's help curtailing North Korea's nuclear program, the trend will continue.

Acquisitions. (In more-or-less chronological order.) Berkshire Partners/Weston Presidio bought Party City's 248 stores and 254 franchises, then later purchased Party America's 155 stores ... Lara's Crafts was sold to River Capital, owner of Consumer Products Ent. (CPE) and Masterworks Decor; later River Capital bought Kelly’s Crafts ... Bernina of America acquired Great Notions products ... The acquisition of EK Success by GTCR Golder Rauner was completed ... Chartpak acquired selected assets of the painting/craft business segment of Craft House ... Two Peas in a Bucket was sold to Kaboose for $600,000 and additional considerations ... Testor is now part of the Rust-Oleum companies ... Forster is now part of Loew-Cornell ... Ellison acquired sole ownership of the Sizzix brand ... All My Memories Wholesale was sold to Seastone Co. ... H.I.G. Capital acquired a majority interest in Die Cuts With a View and Pressed Petals and formed DCWV ... Chartpak acquired the selected assets of the Grumbacher Artist Color line from Sanford ... Industry pioneers Jerry and Dee Hacker sold Dee's Delights to Handley House ... Pacon acquired the assets of the Strathmore Artist Papers division from Mohawk Fine Papers ... Bowmark Capital acquired Design Objectives, a UK supplier of paper craft products ... Bain Capital and The Blackstone Group acquired Michaels for $44/share ... Industry pioneer Stan Brown sold Stan Brown Arts & Crafts to Viking Wood, now known as Viking/Stan Brown ... Caron acquired Westex, a NJ-based importer of needlework notions and accessories ... Boxer Scrapbook Productions acquired the Flip Flop Fasteners line from Destination Scrapbook Designs.

Media Acquisitions. Interweave Press acquired the assets of Bead Expo from Recursos de Santa Fe, and then Lapidary Journal, Step by Step Beads, Step by Step Wire Jewelry, and Colored Stone, plus special interest publications, special events, and a website from Primedia ... F+W Publications purchased The Great American Scrapbook Conventions and Scrapbook Retailer magazine ... An industry pioneer, Clapper Communications, was sold to Amos Press; Clapper publishes Pack-o-Fun, Crafts 'n Things, The Cross Stitcher, Painting, and Paper Made Easy ... Primedia sold its Crafts Group to Sandler Capital Management for $132 million. The sale includes Craftrends, Creating Keepsakes, Simple Scrapbooks, Paper Crafts, McCall's Quilting, McCall's Quick Quilts, Quilter's Newsletter, Quiltmaker, Sew News, and Creative Machine Embroidery, plus MemoryTrends and Creating Keepsakes Universities and Conventions. The magazines are now published under the umbrella term Ckmedia.

Magazine Changes. Closures: Paperkuts, Scrapbook Answers, Decorative Artist's Workbook, and CNA's "Scrabook Insider" and "Sewing & Quilting supplements" ... Launches: Creative TECHniques, by All American Crafts; Adorn, by SoHo Publishing, Craft: Make Cool Stuff, by Make; Crochet Today, by Coats & Clark and SoHo ... CNA dropped from 12 issues/year to six and Craftrends will drop from 12 to four, and launch MemoryTrends magazine ... Cross-Stitch & Needlework magazine returned, reintroduced by Bayview Publishing.

Legal. Former Wal-Mart Vice Chair Tom Coughlin pled guilty to wire fraud and filing a false tax return for stealing from Wal-Mart. He was sentenced to 27 months of home confinement, five years probation, and pay restitution of about $411,000 ... Martha Stewart's appeal of her felony conviction was denied ... ABRY Partners and Providence Equity Partners reached a resolution in their dispute regarding and acquisition of F+W Publications ... Michaels Chair and Vice Chair, Sam and Charles Wyly, were investigated by the government for manipulation of off-shore family trusts ... Michaels was subpoenad by a grant jury investigating illegal stock-option grants ... Provo and Xyron fought over a pending patent violation regarding the Cricut and the Wishblade Media Cutter... Shareholders filed a federal lawsuit against Michaels' new owners, The Blackstone Group and Bain Capital, plus and 11 other private equity firms claiming their investments were hurt when the buyout firms violated antitrust laws.

Closures/Trouble. Hancock closed 40+ stores ... Rag Shops closed five ... Treasure Island closed all 16 stores ... Lewiscraft filed for bankruptcy ... The Society of Creative Designers and the Int. Needlework Retailers Guild voted to dissolve ... Herrs Pacific shut down its California warehouse, then later it and EZ Gregory were sold/reorganized as Crafts America with the proceeds going to creditors ... Rag Shops' creditors agreed to a debt settlement of 25 cents on the dollar so the company would avoid bankruptcy and closure ... Same Differences closed ... Shop at Home, a network that broadcast some industry-related shows and sold products to 55 million households, shut down ... Garden Ridge dropped crafts ... Miller Woodcraft left the decorative painting business ... Total Crafts is closing its stores ... The assets of Promotions Unlimited are in the process of being sold by a trustee of the creditors. It is expected that Promotions' owner Ira Greenberg will buy the assets and continue the operation ... The last of the four Craftmart stores closed; Chuck and April Umbarger are retiring.

(Note: To read what industry pros themselves think will be the trends for 2007, click on Business-Wise in the left-hand column.)

1. To distinguish their inventory from the competition and increase margins, chains are adding more private label products via imports or agreements with U.S. vendors.

2. Chain stores will do even more of their own importing.

3. Look for higher prices on books.

4. The decline in the number of independent scrapbook dealers will slow.

5. The trend of investment companies buying craft companies will slow.

6. The consumer's interest in embellishment and personalizing will keep jewelrymaking strong and give wearable art and sewing a boost.

7. Chain stores will finally rid themselves of excess inventory and knitting/crochet will return to normal as a solid category.

8. Wal-Mart will continue to conduct numerous tests, which will keep the industry guessing as to the company's ultimate decision about crafts and fabric.

9. Kid's crafts will continue to grow.

10. One of these years, dollmaking will make a big resurgence.

11. The trend of young people discovering that "it's hip to hem" will continue to boost sewing throughout the year.

12. Celebrities. Martha Stewart's entry into scrapbooking and crafts will boost the entire industry, and Julia Roberts' movie, The Friday Night Knitting Club, will inspire movie-goers.

13. RFID. Radio Frequency ID tags are coming; Wal-Mart is leading the charge, but other retailers will follow, and demand them.

14. "Just say no." Independent retailers are beginning to flex their muscles and refusing to order from vendors whom they think are treating independents unfairly. Will vendors begin to say "no" to chains' demands for increased entitlements?

15. As the industry grows and matures, we've seen entrepreneurs give way to professional managers, and now we're seeing more outside investment companies calling the shots.

16. Look for Michaels to improve its in-store merchandising, Jo-Ann's to re-adjust its inventory, and A.C. Moore to increase its direct importing and inventory technology.

17. As the industry addresses the interests of younger potential crafters, look for fresh, funky designs.

18. As more Baby Boomers retire, the number of potential customers with money and time will grow.

19. The International Herald Tribune wrote, "These days, affluent consumers want to impress their peers by displaying top-flight skills to go with their posh possessions." In other words, there is a new cachet to the phrase, "I made it myself."

20. More successful independents who want to retire, but whose kids don't want the business or can't find a buyer, will simply close.

Jo-Ann's named Darrell Webb Chair/President/CEO, promoted James Kerr to Exec. VP/CFO, and hired Michelle Christensen as VP/GMM, Justin Simmons as VP/Inventory Management, and Travis Smith as Exec VP of Merchandising and Marketing.

A.C. Moore named Rick Lepley CEO/board member, replacing Jack Parker who retired; Marc Katz as CFO; Sandra Smith as VP/GMM; and Neil Silverman as Dir. of Imports/DMM.

Hancock named Gail Moore Sr. VP/Chief Merchandising Officer, Kathleen Kennedy as Sr. VP/Chief Marketing Officer, and promoted Dean Abraham to Sr. VP/Store Operations.

Steve Barnett replaced Steve Stringer as Merchandise Manager for Soft Lines at Hobby Lobby, and Randy Green is the Merchandise Manager for Scrapbooking. New Merchandising Managers are Bill Davis and Tommy Hartis.

(Note: In most cases the chain vacancies were filled from outside the industry, from retail operations such as Office Depot, Fred Meyer, Foot Locker, The Limited, Home Goods, etc.)

DMC appointed Joseph McCabe President/CEO ... Duckwall-ALCO named former Jo-Ann's and Michaels exec Rick Sturdivant Sr. VP, Stores ... Kent Thomsen was promoted to President of Xyron ... Tom Wierzbicki was promoted to COO from VP/General Manager for Martingale ... Julie Stephani joined The North American Membership Group as Editor of Today's Creative Home Arts (TCHA) magazine and Exec Dir. of the Creative Home Art Club ... IdeaForest, operator of Joann.com, named Diana Schulz CEO ... Jerry Cohn is the President/CEO of the consolidated Conso Trimmings/Wright ... David McKee was named CEO of Dynamic Resource Group.

Retirements. Michael Rouleau, CEO of Michaels ... Alan Rosskamm, Chair of the board of Jo-Ann's ... Alan and Phyllis Goldman of Goldman's Yarn Store in Greenburgh, NY ... Colart CEO Michael Henderson, succeeded by Erik Urnes ... Marvy/Uchida's CEO/President Andy Fujisawa, succeeded by Hiro Kasai ... A.C. Moore 's CEO Jack Parker, CFO Lesli Gordon, Board Chair William Kaplan ... Joe Kimm of Tsukineko, a division of Tsukineko Japan ... Westrim's Jerry Payton and Allan Kretchman.

People We Lost. John Robinson, CEO, and Gary Richardson, Editorial Director, of Dynamic Resource Group ... Industry pioneer Bob Valliere, founder of Signaigo & Rossi, whose Pretty Petals silk flower parts was one of the most successful lines in industry history ... Jayne Hall Norman, a sales manager at Solon Mfg. and previously was employed by Forster Mfg. ... Richard Gold, the founder of Aldik in 1951 ... Machiko Ito of AITOH ... Jim Johnston, who helped his wife Malinda operate Lake City Crafts ... A.C. Moore s Eli Segal.

First the Washington Post, then the Wall Street Journal, and now Time magazine – reporting on the resurgence of sewing. "Once relegated to little old ladies, the frugal-minded, and neo-hippie handicrafters, sewing your own clothes is back in vogue." Time cited the following:

Retailers: Sewing lounges such as Make Workshop in New York, the Stitch Lounge in San Francisco, and First Samples in Austin, TX (where customers can use the store's sewing machines); Spark Craft Studios in Somerville, MA – and Wal-Mart (for inexpensive fabric).

Websites: Joann.com, reprodepot.com, and sewingpatterns.com, the blog at Wardrobe Refashion, and the Dark Threads mailing list of sfgoth.com.

Books: Sew Subversive: Down and Dirty DIY for the Fabulous Fashionista (Taunton Press) and S.E.W.: Sew Everything Workshop by Diana Rupp (Workman Publishing), to be released next year.

Statistics: The number of sewing hobbyists has grown from 30 million to 35 million in five years, and sales of Singer sewing machines has doubled to 3 million since 1999.

Quotation: "One of the hottest trends is reconstruction or refashioning, in which parts of different pieces of clothing are sewn together to make a one-of-a-kind T shirt, skirt or jacket."

To read the article, visit www.time.com/time/magazine/printout/0,8816,1562966,00.html.

The U.S. Consumer Product Safety Commission and Hobby Lobby announced a voluntary recall of approximately 2.3 million Christmas Light Sets because they have undersized wires which can separate from the plugs and/or the light sockets, posing an electric shock and fire hazard. The CPSC has received one report of a minor shock when a consumer touched a light string. Hobby Lobby has received one report of melting wires.

Hobby Lobby sold the lights – manufactured in China – from June through early December 2006 for $2.50-$10. Consumers should stop using the lights return them to the nearest HL store to receive an exchange card. For more info, call the HL Call Center at 800-326-7931or visit www.hobbylobby.com.

Meanwhile, Wal-Mart voluntarily recalled about 56,000 stuffed toys due to a possible choking hazard to young children, Reuters reported. Red pompoms on the wreath attached to the beagle's mouth could detach, posing a choking hazard.

The morning of Dec. 4, CLN received an email from a subscriber who is an important vendor to Wal-Mart. A Wal-Mart official told him that a prototype store with no fabric, and crafts moved into the party-ware area, is showing 100% growth for wedding, scrapbooking, etc.

The afternoon of Dec. 4, The (AR) Morning News quoted Wal-Mart spokeswoman Linda Blakely: "We will continue to have cut fabrics in our stores, moving forward.... We are piloting a new assortment at stores, but that doesn't mean we're moving away from fabrics."

The article reported that Laura Richardson, a BB&T analyst, said she'd been told by three fabric vendors about Wal-Mart's decision to drop fabric. (CLN had reported on Richardson's statement weeks ago.)

The article also quoted George Whalin, President of Retail Management Consultants: "I can't imagine that [fabric's] profitable for them. It's such a niche business, and it takes a lot of labor [and] inventory. Over a period of time, you look at every category to see if it's economic sense to carry it. And, the bottom line is that [Wal-Mart] has to find a way to be more profitable."

If the industry is confused, apparently so is Wal-Mart. The company has dumped its new ad agency, Draft FCB, just weeks after it had awarded the agency a contract worth $580 million. That happened just days after Julie Roehm, the head of marketing, left Wal-Mart. She'd been there less than a year.

Rachel Beck, the national business columnist for the Associated Press, wrote about the recent business woes of Wal-Mart: "A year from now a different Wal-Mart story could be told, one of better times ahead. For that to really happen, though, the retailer might want to review how it got where it is today, and what shoppers have long looked for in its stores."

If that does happen, then perhaps the execs will realize fabrics and crafts helped Wal-Mart become the world's largest retailer.

Meanwhile, a major craft manufacturer and Wal-Mart vendor, told CLN: "I am not ambivalent about the reduction of crafts at Wal-Mart. It is approximately a $3 billion dollar business at retail for them. For the most part, since it is not usually a destination stop for crafts, Wal-Mart grabbed a lot of impulse crafters who hopefully stayed with us. Will some of the business migrate to Michaels, independents, et al? Yes, but much of it won't. So in my view, manufacturers losing sales and our industry losing potential long-term participants is very bad for the arts and crafts world."

CHA is sponsoring special seminars regarding the Hispanic market. Why? Consider these facts from the Phoenix Cultural Access Group, which will be conducting seminars on the Hispanic market at the CHA Winter Show:

1. Hispanics are the largest minority group in the U.S: 42 million, about 14% of the population.

2. Hispanics have the fastest growth rate. By 2020, one of every five people will be of Hispanic origin. By 2040, the Hispanic population should double to 83 million.

3. The white population that represented 72% of the total U.S. population in 1990 will contract to 50% by 2050.

4. Companies, probably including some competitors, are paying attention. TNS Media Intelligence reported marketers invested 10.5% more in Hispanic marketing in 2005 vs. 2004.

5. Hispanic buying power has increased from $490 billion in 2000 to $736 billion in 2005 and is estimated to top $1 trillion in 2010. Over half of Hispanic households bought into the category and spent $1.9 billion in 2002.

6. Seven states have 1+ million Hispanics: AZ, CA, FL, IL, NJ, NY and TX.

7. Hispanics in general are more brand loyal. By marketing to them or making them feel welcome in your store, you will produce a loyal customer base that will reward you in word-of-mouth advertising.

8. Hispanics celebrate both Hispanic and American holidays, holidays that often inspire the purchase of craft supplies.

CHA Seminars include "The Essential Hispanic Market Overview" (S119), Sun., 3-4:15 pm for retailers, manufacturers, and designers ... "Capturing Your Share of the Hispanic Craft Market" (S127), Mon., 11:00 am-12:15 pm for retailers ... "In-Culture Design: How to Optimize Your Creativity for the Hispanic Retail Market'' (S133), Tues., 10:00-11:15 am for designers. Tickets are $25 for CHA members, $50 for non-members. Visit www.chashow.org.

Deadlines: Dec. 21, to submit the form to have new products included in the Innovations showcase. Visit www.chashow.org/eweb/docs/2007WShow/Innovations_Showcase.pdf ... Dec. 22, to be included in the Show Directory Addendum ... Dec. 29, to pre-register and receive badges in the mail. Visit www.expologic.com/chawinter.

Task Forces: CHA members are invited to join one of four new task forces which will meet at the show. It's a way to make known your needs, interests, and concerns. A complimentary lunch will be served. Topics: 1. "CHA Attitude & Usage Study Reporting," Sun., Jan. 28, 11:30 am-12:30 pm. Is the study helpful, presented clearly? ... 2. "National Craft Month," Sun., Jan. 28, 12:30 pm-1:30 pm. Is it helpful? Why/why not? ... 3. "Australian Craft Market," Tues., Jan. 30, 11:30 am-12:30 pm. How can CHA help expand the market? ... 4. "Get More Out of CHA Membership," Tues., Jan. 28, 12:30 pm-1:30 pm. What can CHA do for you? To join a task force, Email Semo Sennas at ssennas@craftandhobby.org with your CHA member ID, and rank order preference of task force meetings, or call 201-794-1133, ext. 218.

Prize. Register online at www.chashow.org before Dec. 29 and be entered to win a $500 shopping spree at the South Coast Plaza (Orange County’s largest shopping mall).

Cutters Productions, producers of the PBS series, GLASS with Vicki Payne, introduced a new line of Vicki Payne’s glass working tools, glass kits, assembly supplies, DVD’s, and books for general crafts and specialty glass stores. It includes new online educational program and is supported and promoted through Vicki’s television show. CHA, #5128.

Interweave will have authors of new books at the booth – Lisa Kartus, author of Knit Fix, will be there Jan. 13 and will sign complimentary copies of her book in Unicorn’s booth Jan. 14, at 12:15pm. Amy Singer, author of No Sheep for You, will be in Interweave's booth Jan. 14. Lily Chin will be signing her new book, Couture Crochet Workshop, at he Unicorn booth Jan. 13, at 1 pm.

Jack Dempsey's new catalog included 75+ new needlework patterns. CHA, #2244. visit www.jdneedleart.com.

Among Stampington's new publications is Altered Couture, 175 fashion transformations designed for the young, hip crowd. CHA, #3984. www.stampington.com.

Midwest Design Imports is introducing Scarf Kits in a variety of colors for adults and kids. CHA, #2601. Visit www.midwestdesignimports.com.

Leisure Arts has recently published numerous books in various popular categories, including Teresa Wentzler's Brilliant Plumage, a remarkable cross-stitch chart. CHA, #2025. Visit www.leisurearts.com.

Wallies is introducing Big Mural kits, each tontaining two 28"x40" pre-pasted, die-cut sheets. Finished result is 37"x30". CHA, #3748 Visit www.wallies.com.

Note: CLN will continue to publish news about new products being unveiled at the TNNA/San Diego and/or CHA/Anaheim shows. Any exhibitor is welcome to submit material. However, CLN will not publish photos and lengthy descriptions – that's the trade magazines' forte. CLN will publish a very brief description and a link if the vendor's website has a description of the product or line. So exhibitors, email your product press releases to CLN at mike@clnonline.com.)

Vendors, even if you're not involved with scrapbooking, I recommend you read the "Vinny Da Vendor" and "Benny Da Buyer" columns regarding Provo Craft's sales and marketing of its Cricut machine. Over the years I've seen thousands of vendors trying to serve two masters by selling to the chains and to independents. The chains get a lower price because of their buying volume, just like consumers who buy in bulk rather than piecemeal. But independents are a major reason why a category grows and remains popular.

How does a vendor keep both types of customers happy? These columns are an example of how NOT to handle the situation. I've never seen independents so angry.

MEDIA. Karen Ancona has given the editor's reins of CNA to Beth Mauro. Beth has been Features Editor for seven years and has been active in the industry for 16 years. Karen becomes Special Projects Editor and says, after 20+ years, she is looking forward to the change in pace. She will be contacting many shops, manufacturers, and associations for input into articles for CNA and insight into new projects with F+W Publications. She will also, she says, gain a few new-found leisure hours to think up new craft products, projects, and crafty events.

MARTHA. Appeared on CNN's Larry King show last week and told him her line of craft products would debut in Michaels. But CLN has learned that the line of Martha Stewart Crafts, designed and developed by E.K. Success and Martha Stewart Living Omnimedia, will be available for sale to EK Elite independent stores in 2007, and to other retailers in 2008.

CRICUT., Pt. I. Provo Craft continues to try to enforce its Minimum Advertising Policy regarding the Cricut. It recently clamped down on one of the industry's leading e-commerce scrapbook sites, Addicted To Scrapbooking. To read Provo's letter and the company's response, visit www.addictedtoscrapbooking.com/Cricut. Meanwhile Wal-Mart continues to sell the Cricut for $179 or less. Michaels advertised the Cricut for $249.99 in its 12/10 insert. There's a long thread on a Two Peas message board filled with angry retailers and consumers, and an answer from Provo.

Cricut, Pt. II. Retailer Mike Dolan has a website that includes a variety of Cricut-related Provo-Independent–related issues. Visit www.bee-noticed.com/Provomain.htm.

NEW POSITION. Polyform is looking for a Sales Manager/Key Account Manager. Five or more years experience in sales representation and management with mass merchants, national and regional retail chains, and independent retail accounts. Strong communication and presentation skills. Send resume/salary requirements to Human Resources Manager, Polyform 1901 Estes Ave., Elk Grove Village, IL 60007; email HR@polyformproducts.com.

STOCK. Jo-Ann's stock shot up 25.6% in the Dec. 1-15 period. (We don't know why.)

MEDIA. National Public Radio ran a craft contest, and the winning project came from Subversive Cross Stitch (www.subversivecrossstitch.com.) To see the winner and read about it, visit www.npr.org/templates/story/story.php?storyId=6624206. (Comment: This is not your typical craft contest – or cross stitch site.)

SHOWS. The 2007 Great American Scrapbook Conventions: June 7-9, Arlington, TX; June 22-23, Chantilly, VA; and July 27-28, Grand Rapids, MI. Call Rose Flowers at 513-531-2690, ext.1372, or email: gasc@fwpubs.com.

QUOTATION. "I can crochet, look out my living room window, watch TV, and eat chocolates, all at the same time.... It sure beats going to a therapist and getting charged $150 for a visit." – Avis Ditch, 94, who has been crocheting for 89 years (Peoria Journal Star). To read Avis' charming story, visit www.pjstar.com/stories/120406/VIN_BBLCP4IS.065.shtml.

QUOTATION. "Children can get into the holiday spirit with dozens of inexpensive items found at local craft or specialty stores. Possibly the most popular crafts are made out of foam, said Doug McGinnis, store manager at Hobby Lobby ...." – Kim Brown, reporter for the Tulsa World

PEOPLE, I. CLN has heard that Jeanne Wines-Reed has resigned from Scrapbook Retailer ... A.C. Moore hired David Frawley as VP/Advertising-Marketing. Frawley came from Burlington Coat Factory ... Jeff Gerstel, former Exec VP of A.C. Moore, ex-president/COO of Rag Shops, and former member of the ACCI board, is Sr. VP/Operations for Dress Barn.

PEOPLE, II. E.K. Success named Kevin Fick President, reporting to CEO Chris Skinner. Fick has 20+ years of consumer product experience, most recently with Central Garden and Pet and Russ Berrie ... Duckwall-ALCO hired Phillip Hixon as VP of Store Development. He had worked for Michaels, and reports to Rick Sturdivant, who had also worked for Michaels and Jo-Ann's. The announcement was made by CEO Bruce Dale; he, too had worked at Michaels ... David Pyle, formerly of ColArt, is Group Publisher for F+W Publications, in charge of Artist, Watercolor Magic, Pastel Journal, CNA, Memory Makers, and Scrapbook Retailer magazines.

E-COMMERCE. Internet research firm comScore Networks said total online, non-travel spending during the month of November grew 24% to $11.7 billion ... Carter Cast, CEO of Wal-Mart.com, said traffic on the site since Thanksgiving is up 60%.

KNITTING. The Financial Times published a wonderful article about Rwanda Knits, the program started by Caron's Cari Clement that has grown to 16 cooperatives for widows whose husbands died during the genocide of 1994 or of AIDS. The article highlighted one widow, Espérance Nyirarusimbi, who now makes enough money to send her two daughters to school and support some of her relatives by making scarves for sale in the U.S. The scarves can be purchased at www.madeforpeace.com. To read the article, visit www.ft.com, type in Rwanda in the search engine, and scroll to "FT REPORT - RWANDA: A project for people who have lost everything."

CONDOLENCES. Best wishes to the family of Tony Fischetti, who passed away from cancer. He was a store manager for Fabric Bonanza, then a 20-year sales manager at Wrights.

The only personnel recruitment firm specializing in our industry has new job openings. Click on Jobs in the left-hand column or click HERE.

A. C. Moore (ACMR). Last*: 22.24 ... Change**: +0.43
Hancock Fabrics (HKF). Last*: 3.19 ... Change**: +0.06
Jo-Ann Stores (JAS). Last*: 24.54 ... Change**: +5.00
Wal-Mart (WMT). Last*: 46.45 ... Change**: -1.53
CLN Retail Index. Last*: 96.42 ... Change**: +6.7%
Dow Jones Index. Last*: 12,445.52 ... Change**: +2.1%

(Note: Reprinted by popular demand.)

The recent announcement that Donner and Blitzen have taken the early retirement package has triggered concern about other restructuring decisions at the North Pole.

Streamlining was appropriate considering the North Pole no longer dominates the season's gift distribution business. Wal-Mart and home shopping channels have diminished Santa's market share, and he could not sit idly by and permit further erosion of the profit picture.

The reindeer downsizing was made possible through the purchase of an imported sled for the CEO's annual trip, plus anticipated productivity from Dasher and Dancer should take up the slack with no discernible loss of service. Reduction in reindeer will also lessen airborne environmental emissions for which the North Pole has received unfavorable press.

Rudolph's role will not be disturbed. Tradition still counts for something at the North Pole. Management denies, in the strongest possible language, the earlier leak that Rudolph's nose became that way not from the cold but from substance abuse. Calling Rudolph "a lush" was an unfortunate comment made by one of Santa's helpers and taken out of context at a time of year when he is known to be under executive stress.

Today's global challenges require the North Pole to continue to be more competitive. Effective immediately, the following economy measures will be implemented in the Twelve Days of Christmas subsidiary:

The partridge will be retained, but the pear tree never turned out to be the cash crop forecasted. It will be replaced by a plastic hanging plant, providing considerable savings in maintenance. The two turtle doves represent a redundancy that is simply not cost efficient.

Eleven pipers piping and twelve drummers drumming is a simple case of the band getting too large. Replacing them with an outsourced string quartet will produce savings which will drop to the bottom line.

Furthermore, retailers are insisting we drop-ship; after all, stretching deliveries over twelve days was inefficient.

Regarding the lawsuit filed by the attorney's association seeking expansion to include the legal profession ("thirteen lawyers a-suing"), action is pending.

Finally, deeper cuts may be necessary to stay competitive. Should that happen, management will scrutinize the Snow White division to see if seven dwarfs is the right number.

REMINDERS

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