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Creative Leisure News
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Tremont, IL 61568
Phone: 309-925-5593
Fax: 309-925-9068
Email: mike@clnonline.com

 

 


Date: March 19, 2007
Vol. XI, No. 6

Printer Version

TABLE OF CONTENTS

bulletCommentary: A Solution for U.S. Vendors?
bulletNew Columns This Issue
bulletTake the CLN Poll: Needlework, Painting, Kids
bulletThe CLN Poll: Beads, Yarn UP, Scrapbooking Flat
bulletJo-Ann's Turns Around in the Fourth Quarter
bulletWall Street Comments on Jo-Ann's Numbers
bulletMichaels' Fiscal Year, Fourth Quarter Results
bulletIs Wal-Mart Changing Its Mind, Again?
bulletFighting Back Against Wal-Mart
bulletInteresting Reading: Forbes' Billionaire List
bulletHancock Financial News
bulletEmail Report: Sewing/Quilt Show
bulletWant To Run for the CHA Board?
bulletRandom Notes, Random Thoughts
bulletMiscellaneous News: Media, Products, and Shows
bulletMiscellaneous News 
bulletThe Creative Network: Job Openings
bulletChoosing a URL? Be Careful!
bulletReminders

COMMENTARY: A SOLUTION FOR U.S. VENDORS? 

Vendors are being pressured as never before on price which makes it particularly hard for U.S. vendors. Asia has a workforce willing to work for less, the air pollution and workplace safety regulations are far less costly, and China doesn't float its currency. That adds up to a huge price advantage. So what's a U.S. vendor to do?

This won't solve every vendor's problem, but recently I toured the facilities of two U.S. companies who did not complain about foreign competition. Having a relatively unique product or service helps, but another big advantage is technology. I saw numerous machines that greatly increased the productivity of the employees. No doubt the machines were expensive, but apparently were well worth the investment. 

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NEW COLUMNS THIS ISSUE

Kate's Collage. Pt. II of CLN's interview with Karen Ancona, who was Editor of CNA magazine for 20+ years. Karen describes what's changed about the industry – and what hasn't. She explains why "We cannot ... run companies for stockholders only or look for the one item that will last forever ...."

Scene & Heard. The indie/DIY (underground) craft movement is holding its first "Congress" later this month. Read – and learn – about this growing movement that provides important challenges and opportunities for our industry..

Thought Leader. Trend guru Kathy Lamancusa reports on the latest styles, colors, and designs that are influencing our culture, and therefore our business.

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

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TAKE THE CLN POLL: NEEDLEWORK, PAINTING, KIDS

Don't put away your crystal ball just yet. In the last issue we asked you to predict sales in scrapbooking, yarn, and beads (the results are below). This time we'd like you to predict sales for cross stitch and needlepoint, painting, and kids crafts. To vote, click on Industry Polls in the right-hand column or click HERE.

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CLN POLL: BEADS, YARN UP, SCRAPBOOKING FLAT

CLN subscribers peered into their crystal balls and predicted that beads will show solid growth in 2007. Yarn will grow, too, but scrapbooking will be relatively flat.

Almost three fourths of the CLN voters in this unscientific poll predicted bead sales to increase; 4.6% expect the increase to be substantial and 62.8% predict a moderate increase. a fifth, 20.9%, think sales will level off, and 7.% think sales will decline. No one voted for sales to decline substantially.

Voters were less optimistic about yarn; 4.6% expect substantial increases and 18.2% predicted moderate increases. Almost 40% (38.6%) think yarn sales have leveled off, while 34.1% predict a moderate decrease; 4.6% thought the decline would be major.

Only 17.0% thought scrapbook sales would have a moderate increase in 2007, and no one thought the increase would be substantial. Flat sales were predicted by 42.6%, and 38.3% expect a moderate decline; 2.1% thought the decline would be substantial.

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JO-ANN'S TURNS AROUND IN THE FOURTH QUARTER

Net earnings for the fourth quarter ended Feb. 3 were $25.8 million ($1.05/ diluted share), compared with a net loss of $18.0 million (-$0.78) a year ago.

Fiscal 2007 included 53 weeks compared to 52 weeks a year ago, with the additional week in the fourth quarter. Last year's fourth-quarter results included a charge of $27.1 million for goodwill impairment.

Sales decreased 0.5% to $600.8 million; on a comparable 13-week basis, same-store sales decreased 6.0%. The company said the decrease was impacted by planned reductions of holiday inventory and less clearance merchandise in the stores.

Gross margins for the quarter increased to 45.0% from 41.9% due to a less promotional pricing strategy, better sell-through on seasonal goods, and reduced sales of clearance inventory. Selling, general, and administrative expenses decreased to 35.9% of net sales, from 36.1%. Operating profit was $42.3 million compared to a loss of $8.9 million a year ago.

Chair/President/CEO Darrell Webb said, "... While our actions have resulted in a decline in same-store sales, we were able to realize significant gross margin improvement in the fourth quarter .... Our strategic plan is gaining traction...."

Net loss for the fiscal year was $1.9 million (-$0.08/diluted share), compared with a net loss of $23.0 million (-$1.01) in fiscal 2006. Sales decreased 1.7% to $1.851 billion. On a comparable 52-week basis, same-store sales decreased 5.9%.

During the year the company opened 21 superstores and five traditional stores, and closed 61 traditional stores and two superstores. The year-end store count was 628 traditional stores and 173 superstores.

This year the company anticipates opening six new stores, remodeling 25, and closing approximately 20 stores; same-store sales to move from negative to positive; and gross margins to improve. Selling, general, and administrative expenses as a percentage of sales are expected to remain flat, and capital spending will increase from $32 million to $38 million.

Jo-Ann expects fiscal 2008 earnings of $0.55-$0.65. MarketWatch reports analysts are forecasting a per-share profit of $0.30.

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WALL STREET COMMENTS ON JO-ANN'S NUMBERS

Analysts had expected fourth-quarter earnings of $0.98/share, MarketWatch reported. That's $.07 less than the actual figure of $1.05. As a result, Jo-Ann's stock rose 10% in after-hours trading after the results were announced, and $4+ (17%) the next day to hit a new 52-week high..

"Jo-Ann management projected earnings to be approximately double what the three analysts who cover the company had forecasted," wrote Toby Shute of The Motley Fool. "That forward guidance is what left investors all googly-eyed."

In a note to clients, Laura Richardson of BB&T Capital Markets wrote, "Management deserves credit ... for gross margin gains it has achieved and for returning to positive comps faster than we expected, while the environment for crafts and fabrics remains modest."

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MICHAELS' FISCAL YEAR, FOURTH QUARTER RESULTS

For the fiscal year, income before cumulative effect of accounting change was $41.2 million, a decrease of $178.3 million. Sales increased 5.1% to $3.865 billion. New store growth, net of store closures, contributed approximately $124.3 million of the increase, with sales in the 53rd week of fiscal 2006 contributing an additional $58.7 million.

Same-store sales rose 0.3% on a 2.3% decrease in transactions, a 2.5% increase in average ticket, and a 0.1% increase in custom frame deliveries. The decline in yarn revenue hurt same-store sales by approximately 1.4%, but a favorable Canadian currency translation added approximately 0.3% to the average ticket increase. Top departments were General Crafts (led by Jewelry & Beads), Impulse, Framing, and Apparel Crafts.

The gross margin rate increased from 37.0% to 38.4%, thanks to stronger sales of regular-price merchandise, improved sourcing, stronger seasonal sell-through, and better shrink results.

Net income for the fourth quarter decreased $184.9 million – primarily due to the merger-related expenses – from $117.3 million in fiscal 2005 to a net loss of $67.6 million.

Sales for the quarter rose 7.7% to $1.368 billion. (Fiscal 2006 was a 53-week year and sales for the additional week contributed $58.7 million in sales for the quarter.) Same-store sales for the comparable 13-week period increased 0.8% on a 2.0% increase in average ticket, a 1.7% decrease in transactions, and a 0.5% increase in custom frame deliveries.

The company said the decline in yarn sales adversely impacted the fourth quarter same-store sales by approximately 1.9%. A favorable Canadian currency translation added approximately 0.1% to the average ticket increase. Top departments were Framing, Impulse, General Crafts (primarily Jewelry and Beads), and Seasonal.

The gross margin rate increased from 37.2% to 41.7%, due primarily to ongoing product sourcing initiatives, improved seasonal sell-through, and enhancements to pricing and promotion execution. The shrink rate was down, but occupancy costs were up. Selling, general, and administrative expenses increased $243.1 million to $528.2 million, or as a percent of sales to 38.6% from 22.4%. The increase was primarily due to $217.3 million of merger-related expenses – share-based compensation, investment banking, legal, accounting, and other professional fees. That cut operating income as a percent of sales from 14.7% to 3.1%.

During the year, Michaels opened 43 new stores, relocated 7, remodeled 67 stores, and closed eight. It also opened one and closed one Aaron Brothers store. The current store count: 921 Michaels stores, 167 Aaron Brothers stores, 11 Recollections stores, and four Star Wholesale operations.

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IS WAL-MART CHANGING ITS MIND, AGAIN?

As CLN has reported, the original plan to cut bolt fabric from its new and remodeled stores and merge the craft/notions department into party goods has created numerous unhappy customers. The Houston Chronicle recently profiled Doreen Taft, a 63-year-old grandmother who has been a one-woman picket line at a Wal-Mart in Seguin, TX, a town with no other fabric stores.

Taft has collected 3,000+ signatures on a petition. Meanwhile an online petition (www.petitiononline.com/mod_perl/signed.cgi?savefab) had 25,000+ signatures as of Feb. 26.

Stock analyst Laura Richardson of BB&T Capital Markets wrote, "Now we think Wal-Mart is re-evaluating the plan's pace in the face of customer opposition and it appears to have backed down from eliminating fabric in some stores due to customer complaints (we confirmed this with a Wal-Mart store in Hanover, PA that we read about online). At this point, we can't put a number of stores on the Wal-Mart fabric pullback, other than to say it will affect new and remodeled stores and an unspecified number of other stores over the next several years. Long term we continue to think the economics of selling fabric will remain unappealing to Wal-Mart, and that its commitment to the fabric business will decrease over time: the pace and extent are the only remaining questions."

Mark Alpert, marketing professor at the U. of Texas' McCombs School of Business told the Chronicle, "In an open market, if Wal-Mart exits, then somebody else ought to be able to come in and take care of it. In a way, there's an irony here. The same people who criticize Wal-Mart for driving out small business are now saying, 'Darn it, now you've got to keep providing this stuff.' It's actually an opportunity for small business."

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FIGHTING BACK AGAINST WAL-MART

(Note: The following is published verbatim from a blog. To CLN's knowledge it is not true that Wal-Mart is doing away with crafts, but rather shrinking the department and merging it with party goods to create a "celebrations" department.)

"Help stop Wal-Mart! Wal-Mart is doing away with it’s crafts department. Their plans for the remodeling of their old stores plus their plans for their new stores include this new change. All of fabrics and most of the yarn, thread ,beads, and other craft materials will be gone. Wal-Mart was the only remaining store where one could get anything having to do with arts and crafts that looked good and was not exspensive. If you want to help stop this from happening call this 800 number. (1-800-walmart.) Do not talk to customer service because it will go no further. Talk to a Manager or an Assistant Manager. Call your local Wal-mart and get the Home Office’s mailing address and E-Mail address. Get other people to help with this. Get a petition going. Flood all their mailboxes with protests. Even if this travesty has already been done at your Wal-Mart, it can still be brought back. So, do not give up hope and stop."

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INTERESTING READING: FORBES' BILLIONAIRE LIST

David Green, Founder and CEO of Hobby Lobby, made Forbes' annual billionaire list again this year. Forbes ranked Green #664 and estimated his net worth at $1.5 billion. Green, 65, launched the first Hobby Lobby in Oklahoma City in 1970 with a $600 loan. Now Green has 390 stores and other businesses.

Another member of Forbes' list is Sam Wyly, the former Vice Chair of the Michaels board until the company was sold last year. A major supporter of President Bush's political campaigns, Wyly's net worth was estimated to be $1.1 billion. Wyly is being investigated for using illegal offshore tax shelters to buy luxury items, Forbes reported.

The richest industry-related member of the list was Stephen Schwarzman, co-founder of The Blackstone Group, now part owner of Michaels. His net worth was estimated at $3.5 billion. He co-founded The Blackstone Group in 1985 with $400,000; since then they have invested in 100+ companies with a total enterprise value of $160 billion, Forbes reported.

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HANCOCK FINANCIAL NEWS

Bruce Smith, Hancock's CFO and Exec VP, resigned effective Mar. 30 to accept a position with another company. In the interim, Corporate Revitalization Partners will serve as financial advisors to the company, with Larry Fair, VP-Finance, assuming the role of Chief Accounting Officer. CRP is a national consulting firm, focused on providing interim management solutions with operational, financial, and other advisory services. CRP has been providing advisory services to Hancock since December 2006.

Also, Hancock was removed from Standard & Poor's SmallCap 600 index.

In a note to clients, BB&T Capital Markets analyst Laura Richardson wrote, "We now project that Hancock's tangible book value will drop from $4.12 at FYE'05 to $2.51 at FYE'06. We also see Hancock's debt to total capital increasing from 39% to about 60% over the same period, which will likely necessitate additional borrowing by Hancock to maintain liquidity in FY'07." Richardson is maintaining her "hold" recommendation and added, "We also continue to think consumer interest in sewing is solid." 

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EMAIL REPORT: SEWING/QUILT SHOW

Received from Pam Smart, who attended the recent Original Sewing & Quilt Expo in Atlanta:

Wow! I got there at 10 am – the parking lot of the civic center was nearly full. I know at least one of the local hotels was sold out. There were sooo many people. They even took most of the men’s bathrooms and converted them to women’s (signage indicated there was one men’s at the back of the hall). Food was sold out of the concession stands and people were buying, buying, buying! It is mainly quilt, machine embroidery, and higher-end sewing, but even a crafter like me found much to buy.

They had needlework (knitting, crochet, punch needle, felting, brazilian) as well as spinning/weaving. I was able to purchase lots of fibers for jewelry making along with beads, buttons, and such. Ribbon, trims by the yard or package was a hot seller also. Bo-Nash was there with its bonding powder (I am a huge fan of this stuff), and there were irons and sewing machines galore.

I could tell most people were there for classes because there were lines outside of classrooms that snaked around hallways. The fee to enter the exhibit hall only was steep ($10) but I believe was included if you took classes ($19 each). Classes ran for 4 days, the show floor only three. I would love to know how fabric stores are having problems when there are this many women (people) eager to learn and buy….

(Note: The next Original Sewing & Quilt Expo will be in Cleveland Mar. 29-31. For info and the complete schedule of Expos, visit www.sewingexpo.com.)

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WANT TO RUN FOR THE CHA BOARD?

The Craft & Hobby Assn. Nominating Committee is accepting nominations for candidates for the 2008 Board of Directors. CHA members can nominate a CHA member (or themselves) as a candidate for the board for a three-year term beginning in January.

The Committee consists of three board members – Chair Mike McCooey (Plaid); Bob Ferguson (Ferguson Merchandising/Ben Franklin Crafts); and Maureen Ruth (Creative Marketing Solutions), plus three people elected by the membership – Georganne Bender (Kizer & Bender); Barbara Woolley (Creations By Barbara); and Julianna Hudgins (Julianna Productions).

Members can download the nomination form by visiting the "Members Only" section of www.craftandhobby.org, calling the CHA membership dept. at 201-794-1133, or emailing memberservices@craftandhobby.org. Nominations must be received by June 15.

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RANDOM NOTES, RANDOM THOUGHTS

1. A number of industry businesses, CLN included, send out blast emails. Problem is, not everyone receives the messages. Spam filters may think your important message is junk and not allow it through, especially if you're sending the same blast email to more than one person using a particular server. As the sender, there isn't much you can do about it, other than make sure you always include certain key words (e.g., TNNA, Creative Leisure News Newsbrief) in your subject line. Then it's up to the recipient to adjust his/her spam filter to allow emails with those key words to make it to their computers.

2. CHA's Nominating Committee is accepting nominations for members to serve on the board of directors. I strongly recommend serving on the board. I served two terms (six years) on the old HIA board, then was on the ACCI board when ACCI and HIA. My second term expires this year, so one of you will replace me.

I strongly recommend serving on the CHA board, or any trade association board for that matter. It's intellectually stimulating, but not terribly time consuming; you make great friends, and you learn far more about the industry than you would by sitting in your office.

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MISCELLANEOUS NEWS: MEDIA, PRODUCTS, AND SHOWS

ANNIVERSARY. Congrats to Plaid on the 40th anniversary of Mod Podge, surely one of the most ubiquitous products in the history of the industry and a primary factor in decoupage becoming the hot trend of its day. To read about the history, visit www.plaidonline.com/articleDetail.asp?entry=article&articleID=355 

BEADS. The Bead&Button show in Milwaukee, June 3-10, features 480 classes and 360 vendors. More than 14,000 are expected and hotels are selling out. Visit www.beadandbuttonshow.com ... The sixth series of Beads Baubles and Jewels premiers. It's produced by KS Productions and sponsored in part by Kalmbach Publishing, Bead Style and Bead & Button magazines, Fire Mountain Gems, Beadalon, Pre Allure "Crystal Innovations", and American Art Clay.

BOOKS. Flower Confidential, by Amy Stewart (published by Algonquin), a fascinating, insider look at the floral industry ... To better understand the underground craft movement, read The Crafter Culture Handbook by Amy Spencer (published by Marion Boyars). Amazon says, "This fun, new manual explores the crafting movement that is sweeping the globe, with a series of creative projects for all wannabe crafters. It contains designs by well-known crafters, including the people behind Subversive Stitching, microRevolt, Bazaar Bizarre, Cast Off, Thready Made, Craftivism, the Renegade Craft Fair, Church of Craft, and Made by Milla.... Crafters are aware of the impact of their actions and create as part of a radical form of political protest. Through interviews with those involved, [Spencer] explores these simple acts and their impact."

YARN. Lion Brand Yarn released the list of the 10 patterns most often downloaded from the www.lionbrand.com website in February: a scarf, three dog sweaters, a baby blanket, men's slippers, an afghan, a prayer shawl, a throw – and the pattern modeled after the poncho Martha Stewart wore when she was released from prison. Two years later it was still #4.

MEDIA. Interweave Press named Eunny Jang Editor of Interweave Knits, replacing Pam Allen who resigned to pursue other interests in the needlecraft industry. The subscriber base for Interweave Knits, celebrating its 10th anniversary, has grown 25+% percent in the last year. Jang is the author of the blog, See Eunny Knit (www.eunnyjang.com), which averages 10,000 visitors per day ... Legacy magazine, published by Stampington & Co., is changing its name to Somerset Memories beginning with the Apr./May issue.

PAINTING. Gary Spetz's Painting Wild Places! with Watercolors, will be added to the CREATE-TV channel in June, joining Donna Dewberry and the late Bob Ross on CREATE, a 24/7 digital cable channel which airs PBS's how-to and lifestyle programs. Previous episodes have been funded in part by Arches/Canson, The Artist's Magazine-Watercolor Magic, Dick Blick Art Materials, and Da Vinci Paint. For info, visit www.paintingwildplaces.com ... Martin/F. Weber Co. has released a new DVD, How To Draw Cartoons, by Emmy award-winning Bruce Blitz. Visit www.weberart.com.

SHOWS. The 2008 Creative Painting show will be Jan. 27-Feb. 1 in Las Vegas. Visit www.vegaspaint.com.

PRODUCTS. Plaid's enormous array of product lines are now in catalogs available at www.plaidonline.com/catalogs ... Hampton Art has a new catalog including the new Doodlebug Design stamp series.. Visit www.hamptonart.com ... To learn more about the 12 new metallic thread colors by Kreinik, visit www.kreinik.com

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MISCELLANEOUS NEWS

CLN STOCK INDEX: A.C. Moore: $20.50, up $0.94 ... Hancock: $1.25, down $1.65 ... Jo-Ann's: $24.31, up $2.67 ... Wal-Mart: $46.21, down $1.64 ... CLN Index: 92.27, up 0.4% ... Dow Jones: 12,110.41, flat. (Note: Changes in price are since 3/16; exclusive of dividends.)

FEBRUARY SALES. Cool weather hurt sales of spring apparel and winter storms in the Midwest and East hurt Valentine's Day sales. U.S. Wal-Mart stores posted a meager 0.4% increase in same-store sales, while Target's was 5.7%.Wal-Mart said traffic was down and its home division, which includes fabric/crafts, remained weak and probably would remain soft through the spring. Jo-Ann's, Hancock, and A.C. Moore report sales on a quarterly, not monthly, basis. Some other same-store sales figures for February: Saks, +24.7% ... Nordstrom, +9.1% ... Dollar General, +4.9% ... Costco, +4% ... Federated (Macys), +1.2% ... JC Penney, -0.2% ... Family Dollar, -0.5% ... Gap, -4.0% ... Pier 1, -8.4% ... Sharper Image, -24.0%.

ROLODEX. Karen Ancona's new info: Call 941-575-8021; email karenancona@comcast.net. (Read her interview; click on Kate's Collage in the left-hand column.)

FABRIC. The Winston-Salem Journal profiled Boone Fabrics, now up to eight stores. The chain specializes in home dec fabrics and offers in-home design services.

MARTHA. The other day Martha was teaching singer Diana Ross a paper crafting product on her tv series.

CLOSING. Lu Ann Oliva and David Murphy are closing Arts and Crafts Distributors in Fayetteville, AR after 28 years in business. "When the big discounters moved in, we lost a lot of our business," Oliva told the Fayetteville Observer. "After about three years of trying to bring our business up, we finally realized it was time. It was a really hard decision."

NAMTA. Candidates for the two Supplier seats on the board of directors of the National Art Materials Trade Assn. are Brian Buell (Logan Graphic Products), Marcello Dworzak (Da Vinci Paint), Walter Glazer (Speedball Art Products), David Pyle (F&W Publications), Frank Stapleton (MacPherson’s), and Paul Straquadine (Tara Materials). Candiates for the one Retailer seat are John Cummings (Reddi-Arts) and Mark Wiener (The Art Colony). Winners will be announced during the annual trade show, Apr. 18-21 in Chicago. For info, and to nominate candidates for Oustanding Retailer, Supplier, and Manufacturer's Rep, visit www.namta.org.

AWARDS. Gene Maynard, Jim Caraghar, and Russell Woody will receive Lifetime Achievement awards at the NAMTA show next month. Jim Cieslinski of C2F will be inducted into the NAMTA Hall of Fame.

PEOPLE. Midwest Products named industry veteran Ken Phillips as Dir. of Sales.

MEETING. Jo-Ann's shareholders meeting will be June 19 in Twinsburg, OH. Shareholders are invited, although only those of record at the close of business Apr. 20 can vote.

ENERGY. Michaels has installed an energy management software system for 655 stores, reported the Dallas Morning News. The system is expected to cut energy use by 19% and save $5 million a year.

PRICING. A seminar at the recent Toy Fair gave nine pricing tips for independent retailers. To read the list, visit www.toydirectory.com/monthly/article.asp?id=2401.

MEMORY. National Scrapbooking Day is May 5. To download the logo created by the National Scrapbooking Assn. To download it, visit www.nationalscrapbookingday.com.

DATA. There's more to memories than scrapbooks. A new study by the Photo Marketing Assn. International reports sales of "photo novelties" – mugs, key chains, T-shirts, etc., that can contain a photo – jumped 50% to an estimated $694 million in 2006 and could reach $951 million this year and $1.2 billion in 2008, the Associated Press reported. "The photo industry is desperately looking for ways to replace the money lost to lower volumes and lower prices for basic 4-by-6-inch prints," Alan Bullock, a consumer-imaging analyst at InfoTrends, told the AP. "There's a whole slew of products out there generating higher margins than 4-by-6 prints ever did."

CONSUMERS. John Fleming and Stephen Quinn, the new top merchandising and marketing execs for Wal-Mart, told the New York Times they identified three Wal-Mart customers: A) "brand aspirationals" (low income/brand conscious); B) "price-sensitive affluents" (wealthier shoppers who shop for deals); and C) "value-price shoppers" (who need low prices).

PROMOTIONS. As part of the National Craft Month celebration, whose goal is to drive more traffic into our stores, CHA sponsored a satellite media tour in which spokesperson Terri Ouelette demonstrated products and trends on tv morning shows broadcast by stations in Huntsville, AL; Yuma and Phoenix, AZ; Denver, CO; Gainesville, FL; Sioux City, IA; Boise, ID; Austin and Minneapolis, MN; Kansas City, MO; Raleigh, NC; Las Vegas, NV; Eugene, OR; Memphis, TN; Lubbock, TX; Eau Claire, WI; and Cheyenne, WY.

WAL-MART. May be announcing disappointing sales and confusion concerning its fabric department, but apparently the board of directors is happy with CEO Lee Scott. The Associated Press reported the board awarded Scott a stock bonus worth $22 million for reaching revenue targets. Scott's salary and bonus for 2006 was $5.23 million. His total compensation for that year was, excluding restricted stock awards, was $15.7 million ... The board also increase in the annual dividend 31% to $0.88/share, to be paid in quarterly installments.

QUOTATION: (Regarding CLN's proposed code of ethics) "I find the fact that any human beings have to propose a code of ethics, unconscionable, regardless of industry. Where are these people's mothers? The entire code can be written in two words – spoken to everyone since birth, over and over again: 'Be nice'. 'Nice' people don't have to be told how to act in business or otherwise. They already know. 'Nice' people don't point fingers, belittle honesty, or dishonor promises. They don't steal, cheat. or lie. Good things happen to nice people. Bad things happen to mean people – Ann Krier, CraftersStudio (Comment: Yes, but the bad things don't happen to mean people quickly enough! To read the code of ethics, click on Business-Wise in the left-hand column. To read other industry reactions to the code, click on "Vinny Da Vendor.")

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THE CREATIVE NETWORK: JOB OPENINGS

To see the latest listings from the only personnel recruitment firm specializing in our industry, click on Jobs in the left-hand column or click HERE.

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CHOOSING A URL? BE CAREFUL!

All of these are legitimate companies that didn't spend quite enough time considering how their online names might appear – and be misread.

1. Who Represents is where you can find the name of the agent that represents any celebrity. The website is www.whorepresents.com.

2. Experts Exchange is a knowledge base where programmers can exchange advice and views at www.expertsexchange.com.

3. Looking for a pen? Look no further than Pen Island at www.penisland.net.

4. Need a therapist? Try Therapist Finder at www.therapistfinder.com.

5. There's the Italian Power Generator company, www.powergenitalia.com.

6. Don't forget the Mole Station Native Nursery in New South Wales: www.molestationnursery.com.

7. If you're looking for IP computer software, there's always www.ipanywhere.com.

8. The First Cumming Methodist church site is www.cummingfirst.com.

9. The designers at Speed of Art await you at their website, www.speedofart.com.

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REMINDERS

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

2. If your company is a paid subscriber, everyone in the main office is welcome to register, free. Just click on "Work for a paid subscriber? Click Here to register."

3. If you ever have trouble with your password, click on "Trouble with your password" in the right-hand column of the main page. The computer will then email the correct information to you.

4. Creative Leisure News is published the first and third Mondays of each month.  Your next issue will be Monday, March 19.

xxx

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