Date: June 4, 2007
Vol. XI, No. 11

Printer Version

TABLE OF CONTENTS

COMMENTARY: CHA, PMA, AND SCRAPBOOKING 

Some thoughts about the interview with The SMART Group's Dennis Conforto that has caused a huge response (see below, and the columns).

First, I publish comments that I don't necessarily agree with, as long as they're interesting. If I printed only my ideas, CLN would be really boring. My favorite compliment for CLN came from a subscriber who called it "the village green of the industry, where everyone could come together and discuss the important issues facing us, without fear of repercussions."

My concern is that the scrapbooking community will become diluted if some members choose to go with PMA and others choose CHA. Many exhibitors and retailers do not have the resources to attend/exhibit at the PMA show in Las Vegas, and then do it all over again a week later at the CHA show in Anaheim. Nor will buyers from Australia, Europe, or Asia. They will choose one. If half the scrapbook community chooses one show and the other half chooses the other, we all lose.

Business-Wise. CHA CEO Steve Berger responds to CLN's interview with Dennis Conforto, CEO of The SMART Group.

Memory, Paper & Stamps. The Conforto interview is still online.

Designing Perspectives. CHA is sponsoring a special day for designers with seminars, networking, and more at the Summer Show – and unveiled plans for an enhanced Designer Showcase section at the 2008 Winter Show. Read the details here.

Tech Topics. CHA is sponsoring a variety of seminars at the Summer Show to help retailers capitalize on the digital photo revolution. Read the details here.

Newsbriefs. First-quarter reports from Jo-Ann's and Michaels ... News that Jo-Ann's may be up for sale ... Rag Shop is shutting down ... The minimum wage is set to rise – read the newsbrief that was emailed to subscribers on June 1.

"Benny Da Buyer". What should retailers do when high gas prices hurt customer traffic? Janet Perry has some sound suggestions.

Scene & Heard. Ellie Joos reports on the highlights and trends at the National Stationery Show in New York.

Note: Click on the titles in the left-hand column. If it appears to be an "old" column, click on the "Refresh" or "Reload" button on your browser.

"Scrapbooking is a craft, therefore it's truly part of the craft industry." ... "Scrapbooking starts with a photo so it belongs with the photo industry." ... "Scrapbooking is unique unto itself and should be a separate industry." How do you feel about the subject? To vote, click on Industry Polls in the right-hand column or click HERE.

When asked if manufacturers should have more control over the prices of their products in retail stores, 61.5% voters in this unscientific poll said yes, 34.6% said no, and 3.9% weren't sure.

The figures were different when asked if manufacturers should have complete control. A quarter said yes, but 66.7% said no, and 3.3% weren't sure.

Should retailers have complete control over prices? Yes, said 44.0%, 52% voted no, and 4% weren't sure. Should retailers have complete control over prices they advertise? Yes, said 54.2%, no said 41.7%, and 4.1% weren't sure.

The day after Jo-Ann's first-quarter report and word of a possible sale, the analysts weighed in.

BB&T Capital Markets analyst Laura Richardson downgraded Jo-Ann's stock to Underweight from Hold. In a note to clients, Richardson said she believed the stock price already includes a potential buyout. "While we applaud the changes Jo-Ann is making, we think its stock is priced close to perfection in either a turnaround or takeover scenario," she wrote.

Then Motley Fool contributor Mike Cianciolo wrote an article titled "Jo-Ann's Patches Prove Attractive": "I expect the stock to slip back a bit once the euphoria cools off. While we wait to see how this deal unfolds, I'd recommend enjoying the show from a safe distance."

In a conference call following the release of the first-quarter results, Webb attributed much of the improvement to the revamped print advertising program, according to Home Textiles Today.

Softlines grew less than the overall store average, due to weakness in fashion and home dec fabrics. Same-store sales for the superstores grew 3.0%, better than the traditional stores.

(Note: The previous issue of CLN mis-stated Jo-Ann's sales figures for the first quarter. The overall sales for the quarter were up 1.8%.)

BagWorks has been sold to Everything Mary, LLC, an Arkansas-based company. BagWorks manufactures totes, bags, aprons, home dec products, and trade show items, and custom- and private-label products.

BagWorks will remain in Fort Worth, and be managed by craft industry veterans Jane Anne Davis, President, and Ed Baker, VP of Operations and Finance. Former owner and President Suzy Ware will continue to design products and former CEO Tom Ware will remain during the transition.

"Suzy and I have enjoyed building BagWorks for the last 19 years and we are especially proud of our wonderful employees that have helped make BagWorks a quality name and brand. Suzy and I look forward to BagWorks becoming an even greater force in the craft, embroidery, and gift industries under the new ownership." said Tom, a longtime industry veteran and former member of the CHA board of directors.

Jane Anne commented, "Everything Mary’s growth and interest in the craft market has been incredibly exciting in the last couple of years. With BagWorks' well known industry name and designers like Mary Taylor and Suzy Ware, we see a very bright future. Everything Mary’s overseas factories and the ability to produce domestically give us the flexibility to serve our customers through mass customization, rapid product development, and speedy time to market."

For more info, call 817-446-8080 and 800-365-7423, email jadavis@bagworks.com or visit www.bagworks.com.

Scrapbook.com acquired substantially all of the web-retail and catalog assets of Keeping Memories Alive, including the Scrapbooks.com domain name and website, for an undisclosed sum. KMA owners AJ and Marielen Christensen are retiring, while KMA co-owner Liz Rosenbaum will continue with the KMA creative team. Scrapbook.com will operate the Scrapbooks.com site as a separate web destination and will migrate its technology and resources to the KMA web operations.

The Christensens opened the first brick-and-mortar scrapbooking store in 1981 and later launched the first scrapbook catalog and the first scrapbook e-commerce website. KMA also has provided products wholesale to 1,900+ retail stores in the U.S. and overseas. Scrapbook.com and its related sites – Scrapjazz.com, ComputerScrapbook.com, ScrapTutor.com, and ScrapbookAdverstising.com. – receive approximately 650,000 unique visitors per month.

(Editor's note: The following five emails are in reaction to the interview with Dennis Conforto, CEO of The SMART Group, which is still online in the Memory, Paper & Stamps section.)

I was first exposed to Dennis at the CHA Atlanta Show and immediately felt his passion to help the small business owner. My favorite quote is "PMA, in my opinion, is first about the association and second about the trade show, while CHA is less about the association and more about the trade show." Dennis is 100% dead on and while I am not transacting directly in the scrapbooking industry, I’m inclined to think twice about renewing my CHA dues. Dennis is clearly a ‘big vision’ industry guy, but his attitude to help the small business owner succeed, turn inventory, and get new customers is more tangible than the efforts of CHA to standardize supply chain shipping labels and use AeA discounted freight forwarding rates.

I can only hope your interview stirs up as much commotion as the Cricut incident and gets the right folks talking about the real problems our industry faces such as design infringements, channel conflict, consolidation, and not leveraging technology to improve strategic alliances. Thanks for reporting a candid interview. – Steve Massa, American Crafters, Inc. www.americancrafters.com.

Preserving Memories?

I am 52. The life expectancy in the USA is now about 76 years. It will probably increase slightly so I figure I should have about 25 more years left to go. All media is now digital. Over the next 25 years it is a safe bet that computer memory density will continue to increase and prices will continue to decrease.

On my tombstone will sit a crystal that I bought for a dollar at Wal-Mart. It will permanently hold everything I have ever written and drawn, every photo I have ever taken, and every video I have ever shot. It will also contain everything ever recorded about me. It will be wirelessly connected to the Internet (8.0). When you pass your PALM XXXVI over it, a short 3D holographic video of my life will play and you will be able to add your own holographic comments.

Will any one still be making scrapbooks?

Things that won't change over the next 25 years: A) People will still need social contact. B) People will still need to be creative. C) People will still need to work with their hands.

Dennis may be correct in assuming that there are "tens of millions of women" who want to make scrapbooks but aren't interested in crafting. As a independent store, what exactly do you plan to sell to them? Apple has a service that lets you upload your photos to its website from which they print and bind them into a nice looking book. You can even have multiple copies sent to your friends and relatives. For tens of millions of women, problem solved.

Scrapbooking isn't really about preserving memories. That's just a convenient excuse. It is about working with your hands, being creative, and sharing with others who enjoy the same. In other words, it is about crafting. – Rob Bostick, Judikins

Scrapbooking belongs more with the crafts category. While photos are a part of the project, scrapbooking is about what people can "do" with the photos they've taken. Not every project or album focuses on a photo. Some projects focus on a memory, or memorabilia, completely photo-free. Scrapbooking isn't "about the photo," it's about the memory.

Based up the retailers I come in contact with, most would choose CHA over PMA any day of the week. It's really not a contest. Retailers don't "get" why they should go to PMA or what PMA could possibly offer them. Some retailers have gone to PMA to get a better feel for technology, but most don't want to be a photo store.

While there are many things about CHA that are not perfect, scrapbooking better fits within this construct. As a retailer, there are many items from "non-scrapbooking" vendors which we find at the CHA show; I will miss those vendors entirely by going to PMA.

Retailers also ask, "What does PMA actually offer scrapbook stores?" New vendors? Since the vast majority of stores have no interest in getting into photo technology, it can't be their vendors. Partnerships? I believe any partnership has to be mutually beneficial. Scrapbook stores don't create more photos. In fact, for every scrapbooker who may take and develop more photos, there is most likely a scrapbooker who takes and develops fewer. At best, scrapbooking gives people another option for showcasing, preserving, and storing photos – but we don't cause more photos to be taken and developed.

I do think that scrapbooking has fueled an interest in higher-end cameras like the Canon and Nikon digital SLRs, but unless a scrapbook store is going to start selling those high-end cameras and offering support – this can't really be a solid basis for partnership.

The final area we might be able to learn from PMA is with education; this is the area I keep hearing the most about. CHA can increase retailer education – we can bring the same people to speak and re-create the same classes within CHA. The problem with education within hasn't been a lack of classes, but more a lack of retailer interest in business classes. As the saying goes, "You can lead a horse to water...."

There are many things that CHA could be doing better for all of its members. More and better press, taking a lesson from CNA and providing retailers with a monthly or weekly press release which we can customize. Information and education through email blasts. Partnership opportunities. I believe many of these are in the works now – or will soon be developed as CHA grows and matures.

Abandoning CHA will basically mean that a company has no interest in getting products into A.C. Moore, Michael's, Hobby Lobby, Jo-Ann's, Target, Wal-Mart, etc. The craft buyers for these large chains will be at CHA, not at PMA. Some may have buyers at PMA, but they won't be their craft buyers, they will be their photo/technology buyers. Can Making Memories, EK Success, Sandylion, and others afford to lose sales from these accounts? I might expect that a few will show at both shows, but unless PMA is getting commitments from 300-1000 scrapbook vendors to choose PMA over CHA, the business will stay with CHA. – Lisa Kanak, owner of Cropper's Corner an independent scrapbook store in Fredericksburg, VA

We moved from a 1,800 sq. ft. location in November 2005 to 3500 sq. ft. (increasing our retail selling area from 1,500 to 2,500 sq. ft.) store. Since we bought the original store in October, 2003, our monthly sales average has increased over 300% (yep, you are reading this correctly). We averaged a 45% increase per month in sales in 2006. This year, things are definitely slowing up. We are averaging about 7% increase per month in sales. So we are probably starting to flatten out our sales a bit for our size and location.

There have been at least four or five store closures within a 60-mile radius of us in the last 12 months. Most of whom are enthusiasts trying to run a business. That doesn't include the sales of retail stores themselves, of which I know three in about an 80-mile radius in the last 12 months. The same thing is happening with the vendors.

Those that are surviving (and some that are thriving) are figuring out that it is not just about carrying the last and greatest, that we're running a business. I hate that many of the so called "experts" use this as an argument that the industry is failing. That is why I love your publication; you report on what the big boxes are doing so we can measure or successes or failures sales-wise with the big guys.

It appears that the retail markets everywhere are slowing or staying the same. In my opinion, no need to get everyone in an uproar over having to make immediate changes or else we fail. – Shelly Izen, Scrapbook Fever, an independent scrapbook store in Salem, OR

The authors asked that their names be withheld.

1. Dennis Conforto wrote a good piece and seems a worthy adversary to CHA. This could be a real nasty contest and possibly as strong an assault to CHA as we have ever seen. I hope CHA is up to the challenge and takes it seriously. CHA does not want to find itself on the wrong side of the fight like the model people did with crafts back in the old HIA days. Hope CHA is gearing up for a fight, but I hope it does not come.

2. I am amazed Dennis is promoting PMA. We exhibited several times at PMA and taught classes, but stopped because of the high cost of exhibiting and the show management would not allow us to conduct scrapbooking classes for attendees. Without classes we couldn't reach enough of their retailers to make the show cost effective. (By the way, we were told our classes had some of the best comments and best attendance of any of their classes. It was puzzling.)

It would seem to be a good match between PMA and scrapbooking because they begin with the same item, photos. But scrapbooking is a craft, a hands-on activity, and it is working with such activities that CHA is most familiar. CHA understands the need for retailer education and how crafts works in terms of product flow and the importance of new products, merchandising, etc.

It seemed the biggest struggle was that PMA is an industry whose retailers sell big-ticket tools (cameras) to guys. It was a struggle for them to understand or appreciate selling $1.99 stickers to women. We really pushed their retailers to get out from behind the counter to interact with the scrapbook customer. Maybe PMA has seen the light (sure took long enough), but I remain skeptical. While some of Dennis' comments are interesting, his avid support of PMA after selling to them causes me to remain skeptical of other comments. That and the fact that the shows are next to each other is ridiculous for attendees and exhibitors.

And why he seems to be on such a vendetta against Memory Trends show is a mystery that isn't answered in the interview. I also strongly question his numbers, especially since one of his companies just sent out an email saying they have over 5000 retailers on their email list and are looking for advertising. Again, the numbers just don't add up.

I don't want to get embroiled in the discussion but wanted you to have information from a manufacturer who exhibited and tried to work with PMA. – Industry Manufacturer

3. Scrapbooking belongs with crafting. Without craft supplies, scrapbooking is simply photos and journaling in an album. – Scrapbook journalist

The CHA Designer Section formed an industry trend team made up of professional designers who will report each quarter on new techniques, tools, products, and designs from their perspective. The entire CHA Design section will be invited to contribute info through special trend sessions at trade shows and designer events. The team and area of expertise: Phyllis Dobbs, Needlearts ... Debra Quartermain, Needle Felting-Wearables-Accessories ... Sandy Laipply, General Paper Crafts ... Renee Sparks, Scrapbooking ... Debba Haupert, Home Dec-Gifts-Small Accents ... Julie Stephani, Home Dec-Large Accents ... Jill Mackay, Jewelry-Jewelry Fashion ... Katie Hacker, Beading ... Lina Ferrara, Decorative Painting ... Kathy Cano Murillo (Crafty Chica), General Crafts ... Marie Browning, General Crafts.

The first report will be part of a session, "Trend Tracking and Forecasting," to be presented during CHA Designer's Education Day, Mon. July 23. (Visit Designing Perspectives for more info on Designer's Education Day.)

Designer Council Chair Lynne Farris says, "Designers in the craft industry are book authors, magazine writers, tv personalities, spokespersons, developers of new products, teachers, and demonstrators, and creators of the designs that sell products. These reports will give the entire industry a unique look into our world to see what we are currently designing, what is happening in the craft industry today, and our predictions on what will happen tomorrow."

For more, email Marie Browning, Designer Trend Team Chair, marie@mariebrowning.com and Lynne Farris, Designer Council Chair, lynnefarris@earthlink.net.

I think it is WAY too humorous to read the articles that blame the downturn in our businesses on the rising cost of gasoline. PLEASE! How pathetic is that? Does anyone really believe the average housewife who spends hundreds and hundreds of dollars each month at our store really cares about the cost of the gas to drive here? Our best customer spent a bit over $8,000 with us last year. Do you really think an increase of 25 cents per gallon is going to slow things down? Come on!

The gas prices are just a momentary blip. Once prices stabilize, everyone stops moaning and it's back to business as usual. Perhaps some people might drive a bit less. I am sure SUV and personal-use truck and 4wd sales will be affected, but that's going to be about it. Just watch. – Bud Izen, Scrapbook Fever, an independent store in Salem, OR

(Note: To read more about retailers' adapting to high gas prices, read "Benny Da Buyer" in the left-hand column.)

In reaction to CLN's call for ideas to increase store traffic:

1. Catherine Bracken of www.discountneedlework.com writes, "In my teen clothing store, the girls thought up a promotion I thought was fun. Because of the opening of Pirates of the Caribbean, we had "pirate day." I cut up a bunch of red fabric to make pirate scarves and bandanas and bought a couple of cheap pirate hats. We all dressed up in varying degrees of pirate. On Pirate Day, we gave an extra stamp on our loyalty card if the customer could tell us a pirate joke. If they couldn’t, we had to tell them one. ("What’s a pirate’s favorite fast food? Arrrrrrby’s.") We kept a list of jokes at the register to share. (There are websites full of pirate jokes.) Everyone had fun; all of the customers got the extra stamp.

"One year it was Hawaiian Day. All the customers were greeted and given a plastic lei. The girls wore sarongs or other beach attire and flowers in their hair. We played the Beach Boys all day. No discounts, promos, or other costs; just a fun atmosphere.

"We try to make the customer feel special and remember us as a positive place. It’s hard to do with my online business, but driving traffic into a store starts with your employees."

(Comment: With the recent premiere of the third Pirates movie, wouldn't a Pirate Day work again, for any type of store?)

2. Laurie D'Ambrosio of LD D'Esignworks writes, "I have a couple of thoughts about advertising/promotion- from a very busy mom who now spends her gas money driving to softball games instead of those cute little craft shops: A) Check out www.caketv.com. B) Buy ads on online; I check for exciting stuff AFTER my kids go to bed which is when stores are closed. C) Find out how to be the expert on the local news’ expert page or at least the 'expert' your local paper turns to when an appropriate topic comes along (such as National Craft Month). D) If you want to get another generation involved and you have the money, spend it on tv shows for kids. My daughters saw Floam, Blo Pens, and that moon-sand stuff there first."

I just finished reading your current newsletter and just had to make a comment about your article in Kate's Collage: "The Craft Fur Duck." Besides offering a really funny and honest anecdote, you hit the nail on the head about Martha Stewart's potential impact on the craft industry. When Martha joined in, all of a sudden it's COOL TO CRAFT! That's EXACTLY what the industry needs. Like her or hate her, she is a trendsetter and a FREE walking, talking advertisement for the industry. I wish she'd take up painting! Thanks for your insight! – Susan Monahan, Masterson Art Products.

1. As a journalist and a member of the CHA board, I'm trying to stay out of the PMA/CHA discussion, but the charge that scrapbooking is not well represented on the CHA board is just flat wrong. The board includes Judikins, Plaid, Notions Marketing, Peterson-Arne, plus five independent retailers and one chain store – all of whom sell scrapbooking.

A little history: years ago many companies thought crafts weren't well represented on the board, so we elected craft people to the nominating committee, then nominated craft people for the nominating committee to consider. End result? Many more craft people on the board.

If any group thinks they're not well represented, they can do the same thing. (See "Miscellaneous News" for info on nominating people to be considered by the committee.)

2. I invited Ted Fox, PMA's exec director, to comment on the Conforto interview, send me info about the PMA show/organization, and offered to include info/links regarding PMA research studies. I was contacted by PMA's Sr. Operations Officer Bruce Aldrich, who said he would have info for CLN in the next issue.

3. You may have seen the headline, "China invests $3 billion in The Blackstone Group." Blackstone and Bain Capital now own Michaels, but the Chinese investment is in a different division of Blackstone. "Blackstone has many divisions and the China investment is not intermingled with Michaels," reports Michaels' Greg Sanfort.

AWARD. Karen Foster Design won the Best of State for Production and Manufacturing at the 2007 Best of State Awards in Salt Lake.

PRICES. Yesterday's ad flyer by A.C. Moore advertised Provo's Cricut machine for $124.99. The 40%-off coupon did not apply.

STORES. Pictures in Time in Orange Park, FL was named "Favorite Store of the Month by Scrapbooking Roads newsletter. Visit www.picturesintime.biz ... To see another impressive scrapbook store, visit www.pagesintimestore.com to see Pages in Time, a 10,000 sq. ft. store in Granger IN.

TV. The 11th Scrapbook Memories series will be uplinked to PBS stations July 15. It's hosted again by Julie McGuffee and Beth Madland and produced by KS, Inc. Productions. Sponsors include Epson, Adobe, Scrapper's Guide, Big Picture Scrapbooking, Sakura, Close To My Heart, Provo, Purple Cows, Westrim, Paper Pizazz, Lasting Impressions, The Stencil Collection, Spellbinders, Just Jinger/Wilton, www.howtotvonline.com, and Scrapinsanity.

MEMORY. Noritsu is reportedly dropping out of the scrapbook market.

PEOPLE. Lisa Bearnson stepped down as Creative Editor of CK Media but remains Founding Editor of Creating Keepsakes. Brian Tippetts is Editor of CK, replacing Tracy White, and Britney Mellen is Creative Editor. Lin Sorenson is Editorial Director for the scrapbook magazines, and Jennifer Martin becomes Editor of Simple Scrapbooks and Digital Scrapbooking magazines effective June 15.

PROMOS. A Muse holds its second annual A-MUSE-A-PALOOZA stamping event July 9-15 in 42 stores. The event includes unveiling of 75+ wood-mounted rubber stamps and new paper products, A Muse classes, make-it/take-its, goody bags, door prizes, refreshments, and a grand prize give-away. Online A Muse and sponsor-partners Splitcoast stampers, Strano Designs, and Marvy-Uchida will have design challenges, contests, stamping round robins, weekly prize drawings, etc. Visit www.amuseapalooza.typepad.com and www.amuseartstamps.com.

CLN STOCK INDEX: A.C. Moore: $22.89, up $0.53 ... Jo-Ann's: $32.75, up $3.73 ... Wal-Mart:$49.47, up $0.22 ... CLN Index: 104.04, up 4.5% ... Dow Jones: 13,668.11, up 0.8%. (Note: All changes in price are since 5/18 and are exclusive of dividends. Hancock stock stopped being traded when the company filed for bankruptcy.)

ECONOMY. If your business was flat in the first quarter, you're not alone. The U.S. Commerce Department reported the economy slowed to a growth of just 0.6%, the worst three-month showing in 4+ years, the Associated Press reported.

WEB. American Crafters launched a new e-commerce website, www.americancrafters.com. The company is a 22-year-old wholesale distributor of specialty laces, high-quality ribbons, fabric flowers, trims, undecorated favor items, and other general craft supplies, selling primarily to professional crafters, independent retailers, garment and accessory manufacturers, packaging companies, and party planners. According to CEO Steve Massa, "We are exceptionally pleased with the first 30 days of our new website and brand identity. We continue to optimize our partners’ products with the major search engines and are actively looking for new partners who wish to sell online with a technology-savvy distribution partner." Inquiries can be directed to Steve at: steve.massa@americancrafters.com.

ELECTIONS. The CHA Nominating Committee is still 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. The Committee consists of three board members, plus three elected by the membership. Members can download the nomination form at the "Members Only" section of www.craftandhobby.org, calling CHA at 201-794-1133, or emailing memberservices@craftandhobby.org. Nominations must be received by June 15.

PROMOS. CHA's promotion of March as National Craft Month included spokesperson Terri Ouellette being interviewed by 201 tv stations, including most major markets. Other highlights: an audio news release that aired on 918+ stations with an audience of 5.8+ million; a syndicated news release to a total audience of about 496,560; public service radio to a total audience of 2+ million; and inclusion on many Internet websites. A special website received 2,000+ page hits and reached a web sample audience of 37,650,794.

FAME. Wonder how Paris Hilton is spending part of her time as she waits to start serving her jail sentence? See the photo at www.people.com/people/gallery/0,,20040532,00.html ... Industry veteran Mark Hill had his five minutes of fame recently when he was interviewed by CNN and other media because he was a passenger on one of the trans-Atlantic flights with the fellow with TB. (Mark is just fine.)

LEGAL. Julie Roehm, the marketing VP who was recently fired by Wal-Mart for accepting perks from vendors, filed documents in court charging CEO Lee Scott of similar violations, the Associated Press reported. Scott and the vendor denied the charges and the vendor is suing Roehm ... The NJ Supreme Court certified a class-action lawsuit against Wal-Mart by employees who claim the company denied them meal/rest breaks, and forced them to work off-the-clock. The suit would affect approximately 80,000 current and former employees, the AP reported. A Wal-Mart spokesman had no immediate comment.

WAL-MART. At the annual shareholders meeting, execs announced they will cut the number of planned U.S. supercenter openings next year by 25%. The company will open 190-200 supercenters during the current year, and average 170/year in the next three years. A year ago the company said it would open 265-270 supercenters this year.

RECALLS. Mega Brands, the owner of Rose Art, reported a first-quarter loss of $23.9-million after posting an additional $35.2-million charge for the partial recall of Magnetix building sets blamed in a child's choking death.

PEOPLE. The National Art Materials Trade Assn. named Sid Smith as Interim Exec Director. He's the former President/CEO of The Hosiery Assn., formerly known as the National Assn. of Hosiery Manufacturers. He replaces Katherine Coffey, who resigned ... Denise Carter joined Janlynn as VP of Merchandising/Product Development. She has 20+ year of industry experience, with Ames, Jo-Ann's and S & S Catalogs.

YARN. Lion Brand Yarn launched a free, guest speaker program for New York and Tri-State knit and crochet clubs with 50+ members. VP Jack Blumenthal will speak on knit/crochet fashion trends and new yarns, products, and services. Each presentation includes gift packets and coupons for club members. Lion also donates yarn samples to each club for use in charity projects. To schedule a speaker engagement, email Jack at Jack@lionbrandyarn.com.

ROLODEX. Widget Products relocated its corporate office to 11235 Davenport St., Ste. 109, Omaha , NE 68154. Call 402-933-1003, fax 402-933-1034, or email to widgetproducts@yahoo.com. Penny Osburn is the new administrative assistant. CEO Jerry Payton's email is jerry@widgetproducts.net.

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.

Since June is the month for weddings, here's a tale for all who are married, were married, wish they were married, or wish they weren't:

Sally was driving home in Northern Arizona when she saw an elderly Navajo woman walking on the side of the road. She stopped and asked the woman if she would like a ride.

With a silent nod of thanks, the woman got into the car.

Resuming the journey, Sally tried in vain to make small talk with the Navajo woman. The old woman just sat silently, looking intently at everything she saw, studying every little detail, until she noticed a brown bag on the seat next to Sally. "What in bag?" asked the old woman.

Sally looked at the brown bag and said, "It's a bottle of wine. I got it for my husband."

The Navajo woman was silent for another moment or two. Then speaking with the quiet wisdom of an elder, she said, "Good trade."

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xxx

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