INDUSTRY UPDATES

SUMMER FURNITURE SALES SHOULD SIZZLE-MAJOR JUMP IN CONSUMER SPENDING PREDICTED

The National Furniture Buying Index vaulted five points in May to 80, the highest mark recorded in the past several years, indicating a strong summer selling season is about to start.
"Just in time for summer, furniture retailers should see solid sales increases as consumer spending for major ticket items will jump," announced Britt Beemer, chairman of America's Research Group.
"For the past couple of months we've seen consumers focus more on discretionary spending, as good economic news continues to come out," he explained. "A record stock market and virtual full employment are just two of the factors influencing shoppers today."
"Also a big force is the resurgence of real estate in many markets, and now consumers are seeing their property values increase. Psychologically, that is a strong influence in consumer financial confidence," Mr. Beemer continued.
"And, there's more. The full impact for the furniture industry is two-fold; not only will you see more shoppers in stores in the next few months, but those shopping will be inclined to spend more, giving retailers a double punch. Rising store traffic and increased average tickets brings prime opportunities for strong profits."
America's Research Group has been producing The National Furniture Buying Index for over four years. The Index measures consumers' furniture shopping plans for the coming year, based on thousands of interviews with home furnishings consumers each month. Typically, 80 percent of consumers interviewed have a specific furniture item in mind that they intend to purchase in the next year. The Index's mark stands for how many of the 80 percent that name a particular item. Marks at 70 and higher usually indicate strong consumer plans to purchase major household items.
Beemer is the author of the best-selling book, Predatory Marketing, What Everyone Needs to Know to Win Today's Customer, now available in paperback through Broadway Books. For more information contact America's Research Group at 1-800-723-3253.

GOLD BOND GEARS UP PRODUCTION FOR SALES SURGE

Gold Bond's Cotton Coil® and Comfort Coil® innerspring futon mattresses experienced a record-setting first half of the year and are now poised to outperform sales projections by 400%, Gold Bond's President Robert J. Naboicheck reports.
He said the company is shipping about 1,000 units to all 50 states as well as overseas each week. "As we come into the '98 season, we are geared up to meet this extraordinary demand for these mattresses. I can tell you, we are seeing something quite phenomenal here," he said.
Gold Bond's innerspring futons are designed to compete with couches and sofa convertibles throughout the world, Mr. Naboicheck said, adding that the company believes its quality futon products are beginning to make a difference in the marketplace.
"Our futon's great price strength and versatility coupled with a premium mattress's support make for an unbeatable product," he asserts.
The CottonCoil is the industry's first and finest fully flexible innerspring futon. It was designed to feel more like a plush couch or sofa than a traditional futon mattress. It's Holland Maid® free-end coil unit is surrounded by two 2" layers of 1.8 density HR foam and 55 pounds of Joy® cotton batting.
The ComfortCoil is a new high volume-priced innovation from Gold Bond that features a "super center" that folds easily while providing firm and healthy support. Designed to retail from $179 to $199, it features six layers of cotton and four layers of the industry's best and densest super-soft foam. For additional information, please call Bob Naboicheck at 800-873-8498.

LOTZ HIDES HARDWARE GAINS FURNITURE LOOK

"With attendance down at this year's Futon Expo in New Orleans, it was refreshing to experience the busy traffic in our booth," said August Lotz president Mark Schlichter. He added that people weren't ooo-ing and ahh-ing over what they did see, but rather what they didn't see - and what they didn't see on the all new August Lotz "Convertible Sofa" line was hardware and seat decks. Where did it all go? Well, several revolutionary production techniques now allow the seat deck to be hidden behind the front rail, and the assembly hardware to become "invisible" - giving these units a true sofa look and feel with the ability to convert into a futon sleeper - "hence the repositioning of the name," Schlichter said.
August Lotz has always been considered the premier source for the highest quality futon frames at a price that was in line with the quality. With the introduction of an all new metal frame with a no sag spring system and the domestic wood frames (both retail at $249 and up) August Lotz' product line has come full circle - offering high quality American made frames at a lower price point.
New Orleans was the venue of another introduction for August Lotz - that of Sales Manager Chris Kulwicki. Reporting to Mark Schlichter, his responsibilities will include: managing the sales force, developing sales tools, and working with major furniture retailers. "Chris's experience is a perfect fit for where we need to go," said Schlichter. "I learned several things at the Futon Expo," said Kulwicki. "One was that futon dealers want to trade up to a quality product that they can make money with. Another is that some of the conventional furniture retailers have successfully experimented with convertible sleepers and see them as a very viable product. One that will continue to grow in importance." Kulwicki went on to say, "The opportunity that this company and industry have with these furniture stores is phenomenal. I am very excited to be part of it." For more information call August Lotz at (715) 667-5121.

HARLEE OPENS NEW REGIONAL WAREHOUSE

Harlee has added two more regional factory warehouses to better serve their customers on the East coast. The new warehouses, located in Edison, New Jersey and Fall River, Massachusetts, were stocked and opened just before the Futon Expo in New Orleans. "We are aggressively looking at further expansion in several areas of the country to join our regional warehouse in Dallas, Texas and main warehouse in California," said Steve Leichter, President of Harlee International. For more information contact Harlee International at 1-800-645-7660.

ZAD DESIGN SATISFIES RETAILERS WITH ASH FRAME

"Our new Ash and Alder frame is steadily gaining popularity among retailers," said Akim Azad of Zad Design and Manufacturing. "We recognized the importance of well-made products for the futon industry, and have been working hard to produce them," he said. Zad's frames claim a superior mechanism as well as the control and consistency of quality gained by producing everything at one-site in Oxnard, California. "By doing this our dealers benefit from on-time delivery, and consistency of product quality," he said.
The Company also now offers POP material to its dealers that emphasizes the real value of futon furniture, and also offers effective sales training for sales associates. For more information call (805) 486-8393 or stop by at booth #172 at the San Francisco Design and Furnishing show.

NEW ARM STYLES FROM ISLAND FUTON

A new promotionally-priced futon frame, new imported oak arms, and the re-introduction of the Art Deco style "Manhattan" futon frame have been added to Island Futon Company's fall line-up, Island VP & GM Sam Leone announced.
"The new 'Stowe' futon frame-which contains a flip top storage arm and side magazine rack-rounds out the Island Futon line," he said.
Island is a leading importer of hardwood futon frames featuring the "E-Z Open" front conversion system, "Tuff Pak" packaging, the successful 18-Step Quality Assurance Program, in-store point of sale aids, and shipping points from Chicago, California, Florida and Connecticut.
With the exception of the new oak lines, the company uses a super hard teakwood - like wood called Nyatoh that resists splitting and cracking.
"The company's new 'Saratoga' features a massive imported oak arm at extremely competitive price points, and the 'Rockport' is a promotional frame made from a non-Nyatoh lightweight wood to compete on price and value," Leone said.
Island continues to innovate products and services and has been stressing quality-control from production to delivery. Retailers are also provided with sales materials such as the nine page Sales Education Manual, and are invited to visit the company's website: www.islandfuton.com.
Island products are marketed by The Glasser Group, who can be reached at 1-800-466-9099, or by e-mail at glassergroup@ij.net.

ONMI SOFTGOODS ANNOUNCES ITS NEW LIMITED EDITION LINE

This new swatched program features covers in a wide array of limited availability fabrics in solids, prints and textures. Limited Edition covers, available in single, double, and queen sizes are constructed with five inch corners and a three sided zipper with flap. Customers can expect the same superior customer service and quality construction evident in regular Omni line product.
President Robin Reid says, "This is the perfect program for the retailer interested in a swatched program of covers at a lower price with a quick turnaround." For more information contact Omni at 1-608-588-7339.

BIG TREE LOVES THE BIG EASY

"The only blues we heard was on Bourbon Street, and we left New Orleans on a very high note," reports Bob Glade, Marketing Director for Big Tree.
"Everyone loved what we were doing, and our space was busy from start to finish," said Glade.
The real buyers were there and they proved it with their orders.
"We were especially pleased with all the new business," added Bob Pecoraro, National Sales Manager for Big Tree.
"Our new 'Cabernet Finish', on our new oak arms, was a solid hit," he said.
Big Tree would like to thank everyone who came by their showroom, and a special thanks to the Futon Association, and Tambra Jones, for putting on a great show in a great city.
Viva Las Vegas! For more information you can contact Big Tree/Big Sleep at 1-800-647-2671.

HICKORY SPRINGS INTO FUTON FRAMES

Everyone knows that the sleeping and seating surfaces provided by futon mechanisms are supposed to be hard wooden or metal slats offering little or no flex or resilience ... right? Wrong! Hickory Springs Manufacturing Company, a Hickory, NC based supplier to the nation's furniture and bedding industries, has perfected and introduced the Comfort Lounger^TM, a futon mechanism which features sinuous wire springs suspended in a tubular metal frame.
Z.A. (Buddy) Ray, product manager for the new mechanism, indicates that the comfort, both in the reclining and the seating position, is far superior to many units presently on the market. "The sinuous wire acts much like a box spring providing down-deep, buoyant support," Ray stated. "When you combine the Comfort Lounger with a quality futon mattress like our foam coil unit," he pointed out, "you have a seating surface that allows you to sit in, not up on top of it. In addition, the new mechanism helps the futon mattress retain its loft and increases its life expectancy."
Equally important is the ease with which the Comfort Lounger operates. The unit opens and closes with little more than fingertip pressure. Hickory Springs uses heavy gauge metal to create a hinge linkage that is smooth and durable. All pivot points feature self-lubricating delrin bushings which ensure smoother, easier movement, and because the Comfort Lounger is made in the United States, Hickory Springs can provide quick service and fast delivery. "Almost without exception," Ray said, "we can meet our customers' needs within a very short time."
"As the futon industry has continued to grow and becomes more sophisticated, we have become increasingly aware of opportunities to introduce furniture component technology to futon dealers and manufacturers across the nation. We are confident that they, much like the furniture industry, are interested in crafting products that are comfortable, adaptable, stylish, and easy to operate. Our intent is to help them meet these goals with quality products and improved technology," Ray stated. For more information contact Hickory Springs Mfg. Co. at 1-828-328-2201.

SIS INTROS NEAT SHEETS

At the New Orleans' Futon Expo, SIS Covers premiered a brand new line of bedding for its futon customers. The Neat Sheet collection features bold, European designs on 200 thread count, 100 percent cotton fabric. SIS Covers' exclusive designs - Whirling Dervish, Pitter Patter, Bugaboo, Radio Star and Ornament - are launching the program. More sheeting designs will be introduced this Fall. With a suggested retail price for a full size sheet set at $85.00, Neat Sheets enable futon specialty shops to offer competitively priced, high-quality sheets. Don't send your customers to another store when they ask for sheets - neat sheet 'em. For more information contact SIS Covers at 1-800-989-5435.

LOFA SALES MOVES INTO SOLID OAK

Anyone who knows Mitch Wapen knows he works very hard to deliver what his customers say they want. "I've been trying to introduce a line of domestically manufactured solid oak futon frames for several years...with no success," said Wapen. He spoke of prices being too high for the quality required to penetrate the market, as well as issues like lack of furniture manufacturing experience and tooling. None of this stopped Wapen from still looking and he eventually hit the nail on the head-aye. "Paragon Furniture Manufacturing is an established maker of commercial hardwood chairs, doors and flooring, and will now be making solid oak futon frames for my company," Wapen said.
Wapen added that Paragon has a reputation of being a factory that produces an excellent, problem free product, on time. "They have some beautiful lustrous finishes and are very competitive in their pricing," he said.
Wapen said that right now he will be having Paragon produce a solid oak line that will mirror his pine line from Atelier de Bois J.A. Viens. "They will be almost exact copies of the pine styles with only subtle differences because of the differences in the woods themselves," he said.
You can contact Mitch at Lofa Sales at 1-514-424-1431 for more information.

MONTICELLO OAK NAMES WEBER VP/GM AT BUDOFF

Home furnishing veteran Jay I. Weber has been named Vice President and General Manager of Budoff Classic Furniture, manufacturer of the Monticello Oak futon collection and a leading outdoor casual oak furniture supplier.
Budoff Classic Furniture presently manufactures seven patented futon groups and in the past year has established itself as an innovator in solid oak futon furniture. Budoff began manufacturing solid oak Adirondack chairs for the hotel trade sixty years ago.
Mr. Weber was the seasonal buyer and merchandiser for four Home Depot Expo Design Centers and was general store manager for the Harrows Stores, Inc., New Jersey Division.
He also spent time as the national sales manager for Sure Heat Manufacturing of Georgia, a manufacturer of fireplace logs, and was responsible for all retail account business west of the Mississippi, training and managing sales personnel, and sourcing new products for national distribution. He holds a political science degree from The American University of Washington, D.C.
The Monticello Oak Collection is marketed by The Glasser Group, who can be reached at 1-800-466-9099, or by e-mail at glassergroup@ij.net.

BIG SLEEP GIVES COMPETITORS THE SLIP

The Big Sleep Division of Big Tree had a huge hit on its hands at the recent Futon Expo.
The introduction of the "Quick Slip®", a totally new concept in slipcovers, presents a "Total Sofa Look," explains designer Bruce Shepperd.
The "Quick Slip®" covers the entire frame, front and back in seconds, and attaches to the bottom back rail with velcro and comes with foam inserts for comfort and a true sofa look. They also can be removed to machine wash the cover. "The 'Quick Slip' will be available in a variety of great upholstery grade fabrics, and comes with two large pillows for only $100.00 wholesale," Shepperd said.
"With the "Quick Slip®", our Dynasty® leather cushions, and our Gatsby® upholstery cushion collections, Big Sleep has certainly raised the bar on where the industry is headed," he said.

LEATHER FUTON COVER OPENS STRONG AT FAI

"It's already selling well," one retailer reported to Henri Julian Leather Futon Cover officials, as the new line made its futon debut during the recent FAI Expo in New Orleans.
Futon retailers seeking new products and ideas voted with their order books at the Henri Julian space during the Expo. Orders were placed from nearly each of the 50 states and from Europe.
Several retailers attending the FAI Expo had floored the new covers two and three weeks before the New Orleans show and reported early successes in their showrooms.
The new genuine leather futon covers were shown in black, bone, saddle, hunter green and brown. The leather green cover was photographed and featured in at least one national home furnishings publication as well.
Henri Julian is marketed exclusively by The Glasser Group, who can be reached at 1-800-466-9099, or by e-mail at glassergroup@ij.net.

HARLEE INTRODUCES TWO NEW LINES DESIGNER PINE COLLECTION AND "GENERATION 2"

Harlee International has introduced a new designer pine line of futon frames. The Sergio Dante Collection was shown for the first time at the Futon Expo in New Orleans. "They were the hottest items in our booth", said Chet Stoler, Marketing Director for Harlee. The collection consists of two new arm designs, the Laredo and the Cordoba, along with separate occasional tables.
The entire collection is a mid priced, heavy pine with a natural bees wax finish.
"The introduction of Harlee's new 'Generation 2' futon frames and designs were a phenomenal success." added Stoler. The Generation 2 frames feature a patented user friendly front operated mechanism as well as many other changes. "We were committed to bringing out the very best futon frame possible." said Steve Leichter, President of Harlee.

COTTON WORKS GOES INTERNET WITH FIRST FUTON COVER SITE

Cotton Works Industries President Jim Martin drives a pick-up, knows his way around a six-pack and never met a bad joke he didn't like. But just beneath the surface of his laid-back, good old boy persona lurks a savvy businessman whose futon cover manufacturing company combines state-of-the-art computer technology with old-fashioned personal service. Cotton Works, headquartered in the riverside community of Albany, Georgia, where peanuts, cotton, the Atlanta Braves and barbecue are spoken of with similar reverence, is leading the futon cover industry into the Internet Era.
"We're the first futon cover manufacturer on the Net," said Martin, who runs the company with his wife, Lynn. "Our site is set up for wholesale, but we're getting a lot of hits from individuals who want to buy our covers."
The website, www.cottonworks.com, like Cotton Works' whimsical marketing campaign, showcases both Martin's business sense and his sense of humor. "Our nature is to try new things, to innovate," he explained. "That's where business is going - to the Internet. We want to see what happens. We're experimenting on how to use the Internet."
Web browsers visiting Cotton Works' home page find lots of crisp graphics, bad puns, and photos and information regarding the company's full line of futon covers and accessories. And it features Cotton Works' trademark guarantee: shipment in just three days.
"Actually, under our normal three-day shipping program, most orders are shipped within 24 hours," Martin said. "Cotton Works is a futon industry leader when it comes to quickly turning orders around."
Computerization helps drive the company's speedy service. "We've put in new computer and new phone system, all designed to increase our efficiency," said Martin.
His wife Lynn takes special pride in the company's computerized inventory and shipping program. "We can tell you our exact inventory at every instant. We can analyze cover sales for our accounts. With the computers, we all have better answers."
Customers may also communicate with Cotton Works at the company's email address: info@cottonworks.com.
Over the years, Martin has streamlined, fine-tuned and honed his service-first approach. "Now we're focused on what we do best. And that's covers and customer service."
Today the company maintains a ready-to-ship inventory of more than 100 fabrics, in five categories ranging from affordable "basics" to high-end, jewel-toned tapestries. In response to customer requests, Cotton Works recently introduced a luxury washed velvet line. In fact, said Martin, the company has "completely updated" its line of current or "hot" fabrics. More than 60 new fabrics have made their debut since January 1.
All cover fabrics are upholstery-grade and come with three-sided zippers, stainguard and reinforced and serged seams. Swatches are available from Cotton Works in either a book format or a "Show and Sell" display unit.
Thanks to the Internet, the futon manufacturer has picked up even more new sales representatives and new stores. "There are a lot of benefits to being on the Internet," Martin said. "We've gotten requests from overseas where we don't have distributors. We're one of the main suppliers to the Top 100 futon-selling retail outlets. And we're presently in around 1,500 locations.
"We've had great growth, and we still guarantee shipment within three days," Martin said. "That's our goal. And we're high-tech to maintain that goal."

NORTHERN CROSS INTROS INDUSTRIES' NEW FUTON COVER

If first impressions are lasting ones, Northern Cross Industries will have an impact in the futon industry for years to come. The market's newest entry has lost no time in demonstrating an innovative flair. It was only March when NCI acquired Malden Novelty Company, a pioneer futon cover manufacturer. Since that time, NCI has introduced a line of window treatment fashions, doubled the offerings of high style covers, and at the Futon Expo in New Orleans, they unveiled a truly innovative futon cover: the VersaQuilt^TM.

The VersaQuilt^TM

The VersaQuilt^TM is a five layer composition which offers five unique features:
First it's reversible, not just back to front, but inside/out thereby doubling the durability and fashion choices of a cover.
Secondly, it's hypo-allergenic. The middle layer of the VersaQuilt^TM is a micron vapor barrier which won't allow allergens to come in contact with the sleeper.
Thirdly, it's essentially waterproof. The same middle layer is bound to the fabric ultrasonically, eliminating the pin holes caused by needle stitching. A futon mattress covered with a VersaQuilt^TM will be protected from spilled drinks, foods or incontinent sleepers.
Fourthly it's a mattress pad. The two inner layers surrounding the micron barrier are composed of Spring Back Fiberfil.
And lastly, it's tufted giving the futon sofa a plushness formerly reserved for fine furniture.
Reaction "Very Favorable"

According to Rick Salow, VP Sales for NCI, the response has exceeded expectations. "We have been very pleased by the response. It's great to be in an industry that welcomes innovation. Once we described the VersaQuilt's^TM unique characteristics many of the dealers were formulating their own sales presentations. They were jumping ahead of us".
Ray King, owner of Futon Etc.'s four stores in Massachusetts and Rhode Island stated, "This is what we need. This will broaden the market and its appeal. It will sell."
Gena Hester, owner of the two Futon Showplaces of Big Bear Lake, California claims, "It makes a six inch mattress look like an eight inch and it gives the eight inch a richness, a fullness like no other."
Dick Oneto, president of Mattress Magic in Milford and Foxboro, Massachusetts, "There's no chance of mildew with this cover. Whether you use it for a sofa and spill a coke, or use it as a bed for a young child, that vapor barrier will protect the mattress. Just pop the cover in the washing machine and it's as good as new. This is needed."
Salow further adds that value conscious shoppers should appreciate the VersaQuilt^TM . "This cover is five layers of material compared to a normal single layer cover. The VersaQuilt^TM looks so much more substantial."

Track Record of Creativity

The history of Northern Cross is as interesting as the VersaQuilt^TM. NCI's flagship product is called Window Quilt, which is the only product available which saves 80% of a window's heat loss in the winter and 86% of a window's cooling loss in the summer. The business was acquired by Glyptal Inc., which was formerly the specialty coating's division of General Electric. What could a coatings manufacturer serving the aerospace, electronics, and power generation industries have in common with window treatments? "They're both suppliers of engineered materials," explained Bill Hoag, president of both companies. "I think each company's engineering staff appreciated the elegance of the other's products."
NCI's 60,000 sq. ft. manufacturing facility is located in Brattleboro, VT. "The assimilation of Malden's business to the Brattleboro facility is complete. Brattleboro is a place which still honors the tradition of Yankee craftsmanship and frugality. We will continue with Malden's legacy of good value for the money," added Hoag.
What challenges does NCI see in the future? "Probably two major ones," explains Hoag. "We sure don't want engineers choosing fabric patterns. We've asked a fabric designer to join our team and help fill out our line. And secondly we have to figure a way to make a five layer futon cover competitive cost wise with a single layered product" "I like their chances" comments Oneto, "It's good to get some listeners instead of just more talkers." If products speak for themselves the futon industry will be hearing a lot more from Malden Products and Northern Cross Industries.

OBITUARY

Peg Botkin of Foreign Accents
February 6, 1943 - May 23, 1998

The owners and employees of Foreign Accents are deeply saddened by the sudden passing of Peg Botkin. Peg served as Office Manager for Foreign Accents for more than five years. She cheerfully greeted and handled customer inquiries and capably managed the administrative office and warehouse. Peg was a wonderful person of great integrity, with a deep love for all living creatures. We are grateful for the time Peg shared with us, and will miss her wisdom, generous spirit and sharp sense of humor. In lieu of flowers, donations may be made to the American Lung Association.