Tupelo has high hopes
Eyes activity in Las Vegas, Toronto
By Gary Evans -- Furniture Today, February 18, 2008
Tupelo, Miss. — Tupelo market officials and exhibitors are hopeful that this week's winter market here will be a repeat of markets elsewhere this year, where traffic and order writing have been far better than expected.
"Even with all the realities that exist — the 'R' word, the soft retail environment, $3 a gallon gas, mortgages — other markets have had some order writing," said Bill Cleveland, president of the Tupelo Furniture Market. "That was very pleasant to see. And I hope the same dynamic that caused that for other markets happens here," he said.
Cleveland said he hopes that good order writing at the Las Vegas Market three weeks ago and earlier in Toronto will "become self-fulfilling prophesies" that will continue here from "retailers coming to market buying new and exciting products at good value and going home to advertise that. I think we could create a perfect storm in a positive way," he said.
Pre-registration is slightly ahead of the last two markets here, according to Cleveland. He expects attendance from Top 100 stores to be as good or slightly better than at recent markets here. As for exhibitors, "All the concrete is covered," he said, indicating that all buildings in the Tupelo and Mississippi complexes will be open.
"I'm expecting the worst and hoping for the best," said Jim Sneed, president and CEO of upholstery producer Affordable Furniture. "I'm optimistic, but at the same time I'm a realist too."
Sneed, who also shows in High Point, said he sees Tupelo "turning very rapidly into a regional market. I think you'll probably see some (retailers from) Mississippi, Louisiana, Arkansas, Alabama, Tennessee, Kentucky, maybe up into Indiana and southern Ohio — people who can drive in. I've got an awful lot of majors who aren't coming."
A positive aspect of the market here is that retailers of promotional furniture welcome the tax refund season when consumers often use refunds for furniture purchases. Sneed and others showing here also said they may get an added boost from the federal government's new stimulus package, which will send out additional checks this year.
"We might get, instead of a three-month surge at tax season, a six month surge with the gift the government is going to hand out," said Sneed. "That's the way we're approaching it ... a little extended good business."
"All indications are that it will be a decent market," said Greg Roy, executive vice president of sales and marketing for Lane. "It's usually like Las Vegas — January Vegas is better than July, and February (Tupelo) is better than August."
Roy said dealers placed orders in Las Vegas but were managing tight inventories.
"What we're doing here in Tupelo is promoting a lot of excess cover deals and closeouts. It's kind of a cleansing market for us and we'll have some hot values in the showroom," he said.
Roy expects the number of Top 100 dealers to be on par with other markets here. "It's guys like them that certainly want to make you open your doors," he said.
Brian Akchin, president and CEO of furniture and bedding source Fraenkel, anticipates "a very good market. I think the last two weeks it's really started to break loose with retailers. I can't tell you how many calls I've had in the last week with people saying, I need upholstery — quick."
Those dealers were stocking up for the tax refund buying season, which Akchin hopes will be extended by the stimulus program checks, slated to be sent in May. "The last two seasons have lasted about 60 days so I'm hoping this will extend it to 120. If we could stay strong through May and June, it would be outstanding."
Fraenkel's Advantage upholstery division will offer a number of two-piece groups retailing at $599 and will have some $799 groups on market special.
"Tupelo has done a pretty good job of re-promoting itself," Akchin said. "I think the big boys are going to be here, and there are opportunities because business has started to loosen up a little bit."
