Date: January 15, 2007
Vol. XI, No. 2

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TABLE OF CONTENTS

COMMENTARY: INDEPENDENTS' CHANGING ATTITUDE 

The Provo/Cricut controversy is not new. For decades independent retailers have complained – right or wrong – that they were being treated unfairly by vendors. What does appear to be new is independents, if they perceive unfair treatment, are repeating the old movie line, "I'm mad as hell and I won't take it any more!"

Vendors, beware.

Business-Wise. The Salt Lake Tribune published an article critical of Provo's handling of its Cricut machine. In the course of reporting on the Tribune article (see below), CLN asked Provo to respond. The response came in the form of a letter, which is published here.

Kate's Collage. In the previous issue, CLN asked why aren't gift cards counted as sales when they are sold. CLN subscribers give the answers.

Category Reports. In light of the upcoming CHA show, which includes seminars for retailers, manufacturers, and designers regarding the growing Hispanic population in the U.S., CLN is reprinting a report by Barbara Hartnett, Exec Director of Friendship House, the United Way agency that works closely with the Hispanic population in Peoria, IL.

New Trade Show Exhibitors. One more chance to check out the new exhibitors before the CHA show.

Note: If a column appears to be "old," click on the "Refresh" or "Reload" button on your browser.

If the legislation to raise the minimum wage is enacted, will that affect your business? If you pay minimum wages to some employees, your personnel costs will rise. But millions of these employees will have more money to spend – on crafts and other things. Overall, will the wage hike ultimately help or hurt your business? To vote, click on Industry Polls in the right-hand column or click HERE.

Buyers and exhibitors have somewhat different expectations for the TNNA, CHA, floral, and gift shows. Only 10% of the buyers in CLN's unscientific poll planned to order "much more" than a year ago, while 20% said they would order "somewhat" more. Meanwhile, 14.3% of the exhibitors thought they would do "much better" than a year ago, and 28.6% expected to do "somewhat better."

Thirty percent of the buyers said they thought they would order "somewhat less" than a year ago, while 21.4% of the buyers expected to write fewer orders.

This news may generate rumors that Jo-Ann's is on the road to being sold, but CLN is told this is a common practice among publicly held companies: At the request of one of its largest stockholders, Jo-Ann's agreed not to extend or strengthen its poison-pill plan, Dow Jones News reported. The request came from Tennenbaum Capital Partners, which increased its stake in Jo-Ann's to 2.84 million shares (11.6%) in May.

The agreement means Jo-Ann's won't lower its 15% stake threshold to trigger the anti-takeover measures of its poison-pill plan, and it won't extend the plan beyond Oct. 31, 2010.

Furthermore, if Jo-Ann's receives a buyout offer and doesn't amend its poison-pill plan to allow the offer to be completed, Jo-Ann's will have to call a special shareholder's meeting within 120 days of receiving the offer to hold a vote on whether to amend the poison-pill plan.

Jo-Ann's also agreed to phase out its practice of classifying directors starting at the company's 2007 annual meeting.

According to Jo-Ann's filing with the Securities and Exchange Commission, Tennenbaum agreed to certain restrictions on initiating or supporting specified shareholder proposals or nominating candidates for election as directors prior to the earlier date of the 2008 annual meeting of shareholders or June 30, 2008.

Scrapbook 911, the independent store in San Antonio, filed a "demand" letter to Provo Craft seeking close to $50,000 in actual damages and legal fees. "We are seeking damages under Texas law that says that if a seller withholds information to a buyer that would have influenced the buyers decision to make a purchase," says owner Mike Dolan. "In our case, it will be that Provo knew it was going to sell to QVC in 2005, and Wal-Mart et al in the fall of 2006, and did not disclose this when we placed orders. If it goes to trial, it will be in our local county court.

"A 'demand' letter gives Provo the opportunity to pay me my damages," Mike explained, "hence, I DEMAND some compensation, or it goes to court. I guess this dates from when gentlemen had the opportunity to settle matters before they went public. It might be just a Texas thing."

Then Linda Fantin of the Salt Lake Tribune wrote about the Cricut controversy. "[Provo's been a favorite of Utes fans for years," wrote Linda, who often reports on scrapbooking. "But it also sums up the story of how one wholesaler, overwhelmed by the popularity of its product, double-crossed its most loyal customers and now is paying a price." To read the article, visit www.sltrib.com/search/ci_4969590.

When CLN asked Provo for a response, the company sent a letter which is published in its entirety in Business-Wise.

Machine embroidery is a growth area, but until now it's been apart from the industry's traditional independent and chain stores. That may change, thanks to the new program from BagWorks.

BagWorks is teaming with Melco Embroidery Systems to introduce Add Your Personal Touch™, a turnkey commercial embroidery personalization department for retail stores. The department includes Melco's new AMAYA embroidery machine designed for retailers and a wide variety of new personalization products – items for baby, wedding, home, and Mother’s Day – designed for use with the AMAYA.

The BagWorks/Melco team makes the process simple and quick, thanks to templates developed for all the items in the department. The templates will have placement, size, and font selections as well as backing and thread color suggestions. BagWorks designed the products with embroidery and personalization in mind and the AMAYA is designed to let the computer solve problems such as thread tensioning. The program includes two days of on-site training.

The system will be demonstrated at BagWorks' CHA booth, #3320.

Jo-Ann's announced partnerships with American Greetings and 3 Day Blinds. The American Greetings partnership enables Jo-Ann's to carry up to 120' of seasonal and everyday greeting cards, everyday gift wrap, and everyday party goods in all superstores in early May.

"The majority of projects that our customers craft are given as gifts," said Travis Smith, Exec VP for Merchandising and Marketing. "It is only natural for us to provide them with the resources they need to create and give a gift all under the same roof."

Partnering with 3 Day Blinds will allow Jo-Ann to offer customized blinds, draperies, bedding, and furniture beginning in April. Initially there will be a 3 Day Blinds "store within a store" in one superstore in Cleveland and four in Atlanta. Trained sales reps will staff each of the stores and provide in-home consultation. Five traditional stores in Atlanta will feature a kiosk with 3 Day Blinds brochures and contact info. Consumers will be able to choose from 3,000+ fabrics and 1,000 trims from brands such as Christopher Lowell, Waverly, Tommy Bahama Home, Liz Claiborne Home, Nautica, Croscill Home, and Better Homes and Gardens.

"We are very excited about the opportunity to bring to the Jo-Ann customer a 'we'll do it for you' turnkey decor solution encompassing coordinated hard and soft window treatments, bedding, and furniture," said James Buch, President/CEO of 3 Day Blinds.

American Greetings generates annual net sales of approximately $1.8 billion. 3 Day Blinds is the largest vertically integrated retailer of custom window coverings in the U.S.

FINAL HOLIDAY SALES RESULTS

The National Retail Federation announced holiday sales rose 4.4%, below the 5.0% it had predicted. "Unseasonably warmer weather and the slower housing market had a clear impact on consumer spending," said NRF Chief Economist Rosalind Wells. "NRF expects these subdued gains to continue into the first half of 2007."

The big winners were high-end electronics, such as video game systems and plasma televisions; sales at electronic/appliance stores rose 13.7%. Another was health and personal care stores, which reported sales rose 8.6%. Loses included apparel stores with sales up only 3.0%, and building material and garden equipment stores, whose sales dropped 4.3%

The season started strong over the Thanksgiving weekend and surged the weekend before Christmas, but lagged in between.

Retailers had a variety of excuses besides the weather: A) Higher gas prices and a decline in home-equity loans meant consumers had less money. B) Internet sales increased 26% to $24.6 billion from Nov. 1 through Dec. 26, MarketWatch reported; C) Gift card sales rose to approximately $25 billion. Not all had been redeemed by the end of December.

Jo-Ann's same-store sales fell 6.9% and sales dropped 5.9% to $257.5 million. For the first nine weeks of the quarter, sales are down 4.5% to $442.8 million and same-store sales are down 6.0%. Year-to-date, sales are off 2.8% to $1.693 billion; same-store sales are down 5.8%.

Hancock's same-store sales fell 7.2%. Overall sales fell 13.5% to $41.8 million, due to operating 43 fewer stores and the same-store sales decline. For the first two months of the fourth quarter, sales are down 11.3% and same-store sales are down 5.3%. Year-to-date, total sales are $353.2 million, down 4.9%.

Wal-Mart's U.S. same-store sales rose 1.3%, slightly better than the 1.0% increase the company had predicted, but once again seemed to lose to Target. Target's same-store sales rose 4.1% but that was below the 4.5% expected by Wall Street. Sam's Club's increase was 3.5%, while Costco emerged as one of the clear winners, with an increase of 9.0%. Wal-Mart execs pointed to strong performances in electronics and other categories, but cited apparel and home (which includes crafts and fabric) as laggards.

(Note: Michaels and Rag Shop are no longer publicly traded companies and therefore do not disclose sales figures. A.C. Moore only reports quarterly figures.)

Two weeks ago a Wal-Mart vendor told CLN, "And that new prototype store where they are testing crafts with wrapping paper/partyware – it is showing 100% growth. Just moving crafts into party gave a 100% increase for baking, wedding, scrapbooking, etc. And where did the space come from to do this? FABRIC. They might be reconsidering the deletion of fabric in a few years, but in the meantime, crafts could be featured in the front of the store near a VERY busy section of the store – the entrance. This could in fact end up being a positive for crafts!"

For crafts, perhaps, but not for fabric.

The vendor asked that it be kept confidential, but now Wal-Mart is officially commenting. Craftrends' reported a fabric customer of Wal-Mart wrote to the company regarding the rumors, and posted the answer on QuiltArt.com. The company answer verified what CLN had been told: "As a part of this conversion, most of our new and remodeled stores opening in early 2007, as well as a small number of existing stores, will feature the new crafts and celebrations center in place of cut fabrics. Wal-Mart will continue to carry cut fabric in most of our stores. Due to the continued evaluation of our stores, we are unable to share a list of existing stores scheduled to receive the new crafts and celebrations center at this time."

The Democratic-controlled House passed legislation that could affect business – if it's ever signed into law. It looks like the increase in the minimum wage won't make it by the Senate and the President unless it includes tax breaks for small businesses. More than half the states have already raised their minimum wage anyway. Wal-Mart announced its support for the increase. In fact, CEO Lee Scott testified in Congress in 2005 that the minimum wage should be increased.

The bill to implement the recommendations by the 9/11 Commission mandates a much more thorough search of all ships and their cargo entering U.S. ports. That could certainly slow the flow of imports into the country.

What do most successful product categories have in common? Whether it's a quilting bee, a sewing circle, or a crop party, they provide consumers with a sense of community. Now we're beginning to see retailers get in on the act with stores that become the centers of those communities. Consider:

1. CLN has already written extensively about Spark Crafts Studio (www.sparkcrafts.com) in suburban Boston. (Type in "Spark Craft" in the search engine in the upper right-hand corner of this page.)

2. Crafters Studio and Internet Café (www.craftersstudio.com) in Port Orchard, WA appears to be trying to provide customers with an atmosphere in which they can relax, linger, and make friends.

3. A new store, Studio U, in Chester, NJ is an open studio where customers can work on a variety of craft projects, says CLN subscriber Elaine Schmidt. "All the supplies and design ideas are there. You just pay a studio fee plus the cost of your project," Elaine writes. "They also offer many different party and entertainment options. The store is very cute – fun and trendy with lots of appeal for all age groups. Very interesting concept and a wonderful way to grow our market by introducing the consumer to many different crafts. The store is located in a new upscale lifestyle shopping center whose neighbors include Talbots, The Gap, Coldwater Creek, etc." (Note: Currently there is little on the website, www.studiou.com, but we assume that will change. We also assume the rent is expensive.)

4. There have been various media reports about sewing stores that provide space and sewing machines for customers to work on their projects in the stores.

Marc Compeau, Director of Innovation and Entrepreneurship at Clarkson University wrote in Forbes, "Remember: Customers pay for more than products; they pay for experiences. If it weren’t for the experiences we provide, why would we need brick-and-mortar stores? (Online retailers keep better hours and never complain that a customer is taking too much time or asking for too much.) So if [retailers] have only one resolution to make for 2007, consider the value of providing a great experience...."

(Note: Readers, do you know of any other industry-related stores like those mentioned here. Let CLN know – send a note and the store's URL to mike@clnonline.com.)

Aspire Media’s Interweave Press has acquired the PBS program Needle Arts Studio from Shay Pendray, and Quilting Arts and Cloth Paper Scissors magazines from Quilting Arts. The acquisition of Quilting Arts and Cloth Paper Scissors brings Interweave’s subscription magazines to 13 and represents the company’s first entry into the quilting and paper crafts.

Interweave is one of the industry's fastest growing media companies. Last year Interweave 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. For more, visit www.interweave.com, www.aspire-media.com, www.quiltingarts.com, and www.shaypendray.com.

1. Exhibitors, the last day to ship your booth to the advanced warehouse is Jan. 19. Call the CHA Member Services Freight Program by AES Logistics at 206-835-0294.

2. Crafters Home will have its traditional Craft Mania event Jan. 25-26. More than 110 member stores and 50+ vendors are planning to attend.

3. Lion Brand will hold its fashion show, Comfort Zone, Jan. 29 at 12, 1, and 2:00 pm in booth #2011. It will once again be hosted by Vanna White and her daughter, Giovanna.

4. Barnes & Noble will operate a temporary bookstore at the show, with 15% off all books – industry-related publications and business building and speaker-recommended books – and the coffee at the adjacent stand is free with purchases

5. Seminar materials and outlines are available now. To download them, visit www.chashow.org and click on "Education & Events," then "Speaker Materials." Materials are being uploaded weekly.

6. What are you going to do the evening before the show, sit in your hotel room? Exhibitors should attend the exhibitor reception/seminar, "10 Steps to Making Your Leads Pay Off at CHA" (E502). Susan Friedman, The Tradeshow Coach, explains how to quantify and manage leads gathered at the show ... The buyers reception/seminar is "Inside Tips for a Successful Show" (E501) with Mary Liz Curtin. Both events are Sat., 5:30-7:00 pm. The $10 fee for CHA members includes beer, wine soft drinks, and hors d’oeuvres.

7. What do we all want? "Building Retail Traffic," the topic of the Industry Roundtable (E506) Mon., Jan. 29, 5-6:00 pm. Business consultant Valarie Willis from the tompeters!company will share ideas/best practices followed by discussions with your peers.

8. You pay dues to CHA, so you ought to learn first-hand what CHA is doing by attending the Annual Business Meeting Breakfast (E508) Tues. Jan. 30, 7:30-9:00 am.

9. Want to see the latest results of CHA's size of industry study? Attend S136 "CHA Attitude & Usage Study Update" (S136) Tues. Jan. 30, 10:00-11:15 am.

10. Want to see how CHA spends its money? Attend the "CHA Audit and Investment Committee" seminar (S137) Tues., Jan. 30, 1-2:15 pm.

10. Speakers at the Scrapbook Retailer seminar, "Five Keys to Successful Scrapbook Retailing" (M300) include Sara Naumann (Hot Off The Press), Mark Rendel (Notions Marketing), Bob Radcliffe (Display Dynamics), Mary Smilove and Suzi Finer (Sweetpeas and Snapshots), Jamie Echt (The Crafter's Workshop), Kari Hansen (The Scrapbook Designer's Workbook), Beth Mauro (CNA), and F+W Publications execs Mike Amann, Christine Doyle, Jennifer Williamson, and David Pyle.

Register for all of the CHA-sponsored events at www.chashow.org.

Artgirlz (#4866) are introducing first rubber stamps, some of which are designed to work with the company's pewter charm line, which has been expanded. The felt line now includes new smaller wool felt beads, new wool felt shapes, and two felt kits. Visit www.artgirlz.com and www.artgirlz.blogspot.com.

BagWorks (#3320) is also introducing the Knittin’ Kaboodle™ needlework storage system, a line of soft and hard cases designed to carry knitting needles, crochet hooks, etc.

C&T Publishing (#3452) has a variety of new books. Papercrafts: Creative Art Concepts for Papercraft, by Lea Cioci and "Ready-to-Go!" blank board books from C&T's Create & Treasure line in two new sizes ... Fiber Arts: Fast, Fun & Easy Book Cover Art by Jake Finch; Fast, Fun & Easy Creative Fabric Clocks by Lynn Koolish; and Super-Simple Creative Costumes by Sue Astroth ... Knitting: Very Easy Circular Knits by Betty Barnden and Crocheted Accessories by Helen Ardley.

FM Brush (#5660) unveils The Perfect Faux line of synthetic brushes with only synthetic that best matches natural hair in color, quality, strength and flag, and a "Velvet Grip" handle.

F+W Publications (#1509) will have many authors/editors conducting demos and signing book copies. The list includes Linda Woods and Karen Dinino (Visual Chronicles); Jennifer Stafford (DomiKNITrix); Margot Potter (The Impatient Beader and Sparkletastic!) Michael deMeng (Secrets of Rusty Things); Tara Governo (Imperfect Lives); The Memory Makers Masters; Joyce Faulknor; Harry Hamernik; Carol Wingert; and Claudine Hellmuth.

Easy Street Crafts (#2328) will be showing its Square Hoop-Frames in new colors, new cross-stitch kits for beginners, and a series of cross-stitch designs, BON MOTS (clever sayings and phrases). Visit www.easystreetcrafts.com.

Grafix (#1751 is offering its Grafix Shrink Film in four pastel colors – Pink, Blue, Green, and Purple. It works the same as the company's Clear, Matte, Black and White Shrink Film. Draw or trace a design, cut it out, and bake it. The film becomes about half its original size and nine times thicker. Visit www.grafixarts.com.

Janlynn (#3400). Kool Felt kits combine acrylic felt and wool yarn with quick-and-easy embroidery for "ultra cool fashion" purses and pillows. The new Denimbroidery allows consumers to turn fast-and-fun embroidery stitches and flocked iron-on transfers into wearable art. Call 800-445-5565, visit www.janlynn.com or email janlnsales@aol.com.

K & Co. (#5061, #5161) will introduce a line of licensed albums, stickers, embellishments, and papers in conjunction with the Girl Scouts of America.

Loew-Cornell #4301) has joined forces with Wiley Publishing to offer four Art Sets for Dummies – Acrylic Painting, Watercolor Painting, Oil Painting, and Drawing.

Pepperell (#3311) has added Archie comic licensed products, including super-value packs, shoe box kits, and tie-dye kits featuring Veronica and Betty. Also, Mr. Rogers Neighborhood items have been added to company line of crafts and wooden toys with the acquisition of Holgate Toys. Attendees can also make an ICElet ID ("In Case of Emergency") to aid first responders to an accident scene.

Ranger (#4843) expanded its Tim Holtz Distress Embossing Powders to include 12 new colors that coordinate with the Distress Ink palette. Now 24 funky, retro colors such as Shabby Shutters and Spiced Marmalade complete the line of vintage-style Distress powders and inks. Tim will be demonstrating the new products in the booth.

R&M West Coast Ent.(#5321). Jane Davis will sign her new book, Beautiful Embroidered & Embellished Knits Sun. at 1 pm and Jennifer Stafford will sign her book, Domiknitrix, Mon. at 11 am. Call 847-741-4132 or visit www.wholesale-books-crafts.com.

Sugarloaf Products (#2783) has See-D's™ Stamps for Scrapbooking, 18 multi-stamp themed sets of "see where you're stamping" ready-to-mount rubber stamps ... Whispers Permanents™ markers have dual tips, a flexible brush tip for coloring stamps and a fine tip for journaling. The ink can be used on glossy surfaces ... Whispers™ Embossing Powders – in 24 colors, sold in 1-oz. and 4-oz. jars and two 6-packs ... Whispers Embossers™ – dual-tip embossing markers with a bullet tip for embossing fine lines and detail work, and a chisel tip for embossing calligraphy and larger areas ... Whispers Strokes™ Dual Tip Marker Blender for blending of Strokes Water Based Dual Tip Brush Markers – one end for watercolor effects and a fine tip for detail work ... See-D's™ Mounting System Conversion Kit converts wood-mounted and unmounted stamps to the See-D's Clear Stamping System.

Sulyn Industries (#5129) is unveiling Cookbookin’, a comprehensive program of cards, boxes, albums, papers, and kits for collecting and organizing recipes. Visit www.sulyn.com and www.cookbookin.com.

The Tiered Garden (#538). This new exhibitor is offering The Floating Floral & Craft Display, a patented, two-tier wooden skeleton "floating" display which accommodates a myriad of craft items – silk flower arrangements, candles, potpourri, and accessories. Visit www.thetieredgarden.com.

Wrights (#2117) has a new line of vintage Cluny Laces and Rickrack to add a vintage touch to dresses and home dec items such as bedspreads, towels, and kitchen curtains. Also, new appliqués, including Beader’s Choice products for jewelry-making and crochet, plus new Victorian pins, iron-on letters, and a new belting/buckle program. The EZ Quilting line now included Fat Cats and Easy Star & Geese, new acrylic tools, and an 18mm rotary cutter specially designed for use with the Easy Circle Cut acrylic tool.

1. To read a fascinating, thought-provoking article in Military.com comparing the United States' standing in world opinion – and Wal-Mart's failure in Germany, visit www.military.com/opinion/0,15202,121394,00.html.

2. Sometimes vendors wonder which booth location to choose. One CHA exhibitor said he always picked a booth was near the bathrooms and the hot dogs – smart.

3. I'm always perplexed why some companies, often scrapbook vendors, announce their new products to consumers, either online or in magazine ads, before retailers have had a chance to learn about and order the products, let alone stock them. I suppose the goal is encouraging consumers to ask their stores for the products, and therefore increase the likelihood the stores will order them, but aren't we just creating frustrated consumers and irritated retailers?

4. Ever wonder why would a company move manufacturing out of California, as Delta has done (see below)? A few years ago a California vendor told me some state inspector appeared one day. He counted the number of cars in the parking lot, compared it to the number of employees, and fined the company for not doing enough to encourage car-pooling.

1. Wrights named Michele DeFay, formerly of Plaid, as VP of Marketing, and promoted Sue White to VP of Product Marketing. Miriam Davis, formerly of Pulsar Products and DMD, joined Wrights as Dir. of Product Development/National Accounts, and Helen Gregory was named Dir. of Marketing/Communication.

2. Former Michaels CEO Michael Rouleau was named to the board of Coinstar, which offers retailers self-service coin counting, electronic payment solutions, money transfer, entertainment services, and self-service DVD rentals.

3. DRG named Amy Wiegman as the Editor for PaperWorks, the company’s paper crafting magazine. Wiegman had been Editor of Country Marketplace magazine.

4. Wal-Mart's President/CEO of Global Procurement resigned; Jeff Macho was promoted to Sr. VP of Global Procurement ... Mark Goodman, Exec VP for Sam's Club marketing and membership, resigned and Jay Fitzsimmons, Sr. VP/Treasurer is retiring ... In an article published on Friday, MarketWatch.com cited a research note by Bear Stearns analyst Christine Augustine who surmised that Claire Watts, Exec VP of Product Development for apparel and home merchandising (including crafts), may be up for a transfer.

5. Tom Wierzbicki was named President/CEO for Martingale, publisher of 300+ titles specializing in knitting, crafts, under the imprint, That Patchwork Place®. Tom joined Martingale as Dir. of Sales & Marketing four years ago and for past year was COO. Prior to Martingale, he had been at Meredith. Martingale just finished celebrating its 30th anniversary.

6. Martin Universal Design - Martin/F. Weber, national manufacturers since 1853, is seeking sales reps for its programs in craft, drafting, and art materials. Contact Duane Parker at parkeratmud@yahoo.com or at the CHA booth, #3300.

7. Crafts America (dba Herr’s Pacific) is looking for a Sales Manager to be located onsite in Danville, IL. Responsible for in-house and outside sales force – hiring, training, evaluation, and management. Interested parties can email Leslie Pouilliard at leslie@herrspacific.com, call 217-442-4121, or see Mike Greenberg at the CHA booth, #2911.

8. Karen Ancona's new phone is 941-575-8021 and her email is kancona@swfla.rr.com.

CLN STOCK INDEX: A.C. Moore: 20.97, down 0.70 ... Hancock: 3.20, down 0.24 ... Jo-Ann's: 25,77, up 1.37 ... Wal-Mart: 47.98, up 1.80 ... CLN Index: 97.92, up 2.2% ... Dow Jones: 12,556.08, up 0.7%. (Note: Changes in price are since 01/12 and exclusive of dividends.)

PAINT. Delta Creative and Synta Inc. announced a joint venture agreement in which Synta will use Delta's formulations to manufacture Ceramcoat and other Delta products in its facilities in Clarkson, GA. Synta has extensive experience producing paint products for itself and for clients. Delta will assume all sales, marketing, and distribution support functions for the Delta/Synta venture. Officials are working to relocate key manufacturing employees from CA to GA and said the sharing of human resources, suppliers, and formulation will ensure that high-quality standards are maintained, as will supply chain best practices. The move will be conducted in phases with completion in late 2007.

CONTEST. Jan. 22 is the deadline to enter Toner Plastics Professional Designer Challenge that offers three $150 prizes and a $200 Grand prize for projects using Toner products such as CraftLace, Fun Wire, and Toner Hemp. The themes are Children, Seasonal, and Jewelry. Winners will be announced at Toner's CHA booth, #3820. To enter, complete the Challenge entry form at www.tonercrafts.com.

YARN. The Milwaukee Journal Sentinel published an article about the increased popularity of small/quick knitting projects. As evidence it cited One Skein by Leigh Radford, which is Interweave Press' biggest-selling title this year and fastest-selling title to date. To read the article, visit www.jsonline.com/story/index.aspx?id=548191 and visit www.oneskein.blogspot.com to has see entries and photos by knitters around the world who have made Radford's designs.

LEGAL. Wal-Mart workers in Pennsylvania who won a $78.5 million judgment for working off the clock and through rest breaks are now seeking another $500 each for the approximately 125,000 employees. Wal-Mart lawyers claimed the members of the class-action suit do not qualify for additional awards, the Associated Press reported.

ATLANTA GIFT SHOW. "We’re off and running! First up in the winter market, AmericasMart Atlanta, where early indications are for an upbeat season. Retailers are reporting good fourth quarter sales, and vendors are noting strong order-writing right out of the gate. While to the unpracticed eye, traffic may have appeared light on Tuesday and Wednesday, sales reports indicated otherwise. Those who are here, are here to buy." – Gifts & Decorative Accessories

The only personnel recruitment firm specializing in our industry has new job listings. To see them, click on Jobs in the left-hand column, or click HERE.

The Macy's stores in Ohio stocked special T-shirts celebrating Ohio State's victory in the BCS national championship football game, and had plans to keep the stores open late the night of the game so the celebrating Buckeye fans could buy the T-shirts, the Associated Press reported. Final score: Florida 41 Ohio State 14 Macy's Ohio 0.

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