In light of three phone calls I received recently, I would like to challenge that statement. In fact, based on the calls I got, I’m thinking terrible things come in threes. And, for sure, no good deed goes unpunished.

Here’s why: I got calls from three different reps (each representing different factories) who said they had lines that they cultivated, grew and continued to grow, taken from them as house accounts.

And as someone who has worked with the International Home Furnishings Representatives Association for the past five years, this news, sadly, is becoming more and more commonplace, especially as the economy struggles and business for relatively high-ticket, often-postponable items like ours remains challenged.

Sadly, in the wake of economic downturns, the plight of independent sales representatives often goes unnoticed or worse, swept under the rug. These individuals, who tirelessly build relationships and accounts, are now facing a harsh reality: having their hard-earned accounts taken away by the very factories they represent. This practice not only undermines the efforts of these reps but also highlights a fundamental injustice in the business world.

Independent sales representatives who do it right play a vital role in the economy. They serve as a strong and reliable bridge between manufacturers and consumers, leveraging their expertise, networks and dedication to drive sales and promote products.

Many of these reps invest significant time and resources in nurturing client relationships, understanding market dynamics, providing marketing intelligence and advocating for the brands they represent.

However, amidst economic turbulence, some factories certainly appear to be utilizing drastic measures to cut costs and maintain profitability. One such measure is the termination or reassignment of accounts from independent reps to in-house sales teams or larger distributors. While this may seem like a strategic move from the factory’s perspective, it’s a devastating blow to the independent reps who rely on these accounts for their livelihood.

The decision to strip away accounts from independent reps is not just about reallocating resources; it’s a betrayal of trust and a disregard for the value these reps bring to the table. These individuals often serve as the face of the brand in their respective territories, offering personalized service, localized expertise and a deep understanding of customer needs. By severing ties with independent reps, factories risk alienating loyal customers and sacrificing the competitive edge that these reps provide.

Furthermore, and equally as dangerous, this practice perpetuates a power imbalance in the business ecosystem. Independent sales reps operate with limited bargaining power compared to large corporations. They lack the resources and leverage to challenge unilateral decisions made by factories. As a result, they find themselves at the mercy of these factories, vulnerable to sudden changes that threaten their livelihoods.

Moreover, the repercussions extend beyond the economic realm. For many independent reps, their work is not just a job but a passion. They take pride in building long-term relationships, supporting local businesses and contributing to the success of the brands they represent. The abrupt loss of accounts not only impacts their financial stability but also takes an emotional toll, shaking their confidence and sense of purpose.

In light of these challenges, and in light of what appears to be an uptick in this power imbalance, I think it is time for factories guilty of this practice to rethink their approach to managing independent sales reps, especially during times of economic hardship. Rather than viewing them as expendable assets, factories should recognize the value of these reps as strategic partners in driving sales and fostering brand loyalty.

Moreover, a more equitable and transparent relationship between factories and independent reps is essential. This includes providing clear communication, fair compensation and opportunities for collaboration and mutual growth. By fostering a culture of respect and reciprocity, factories can harness the full potential of independent reps and navigate economic challenges more effectively.

I know for a fact that many independent reps are out there every day representing their respective factories based just on goodwill, a verbal agreement and a handshake. From where I sit, factories that suddenly decide that profitable accounts cultivated by their reps should suddenly become house accounts, send a message that integrity takes a back seat to bottom-line results.

In the spirit of balance, I will also say that not every rep has or brings an A-game on to the field. As with any group, you will have overachievers, achievers, just-enoughs and, yes, some who should really find another line of work that they might be better suited for.

But to penalize a rep who has built up a line and consistently hit his or her numbers is just wrong.

In conclusion, the practice of taking away accounts from productive, engaged and successful independent sales reps amidst economic hardship is not just unfair; it’s short-sighted, counterproductive and destroys trust, not just between the rep and the factory, but within the industry as well.

My message to the factories is this: If you’ve developed a team of successful, loyal and productive independent reps, my hat is off to you.  If you’ve hired reps who are not meeting your expectations, find reps who will. And if you are punishing successful reps by bringing their accounts in house, there is probably something that needs fixing in your house.

It undermines the contributions of these reps, perpetuates inequality in the business landscape and erodes trust within the industry. To build a more resilient and inclusive economy, we must recognize and respect the invaluable role played by independent sales reps and ensure that they are treated with the fairness and dignity they deserve.

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HIGH POINT — Natuzzi’s Reimagined Gallery program announced last fall is starting to gain traction around the globe, with 113 retailers signing up globally, including 21 in the U.S. and Canada.

This represents about 121 gallery locations in development worldwide, with 29 in the U.S. and Canada, Codrin Coroama, chief wholesale officer, told Home News Now.

In North America, the company has updated 12 of its existing galleries thus far, with another 18 currently in the development process.

Since the program was first announced, the company has made some tweaks, including to the sizes. Initially, for example, they were in 1,200-, 2,000- and 3,200-square-foot sizes, representing small, medium and large. They have since been expanded slightly to 1,300, 2,200 and 3,500 square feet in size.

Coroama said that 2,200 square feet, which features about 10 room settings, has been the most popular size. The cost of this footprint is $48,000, which includes products and display systems that are delivered to the retailer and ready to place on the floor. By comparison, the 1,300-square-foot gallery offers six room settings and is available at $30,000, while the large gallery offers 20 room settings and starts at $82,000.

He added that the company has enhanced the merchandising aspect of the galleries with new products that include its Natuzzi Editions Houston New Generation Zero Gravity collection and the Roma, a sofa with an adjustable armrest and backrests and standard and extra-deep-seating options.

“Both models were introduced at the April High Point Market and received fantastic feedback, thanks to their Italian-inspired design and innovative features,” Coroama said.

Another new offering that can be showcased in the gallery footprint is what he described as the concept of Space Performance, which offers room-set options tailored to the needs of the retailer.

“The classic room set focuses on space efficiency, while the power-pad room set emphasizes versatility, functionality and customization, inspiring consumers’ creative expression,” Coroama said.

He also noted that on July 1, gallery partners will have access to a digital marketing platform that is “designed to amplify their marketing campaigns across digital channels.”

“This platform will be integrated with Natuzzi’s marketing planner and digital content database, providing support to drive local engagement and ultimately boost sales,” he said.

Retailers and their customers can also look at products on the Natuzzi website, where a number of custom configurations, fabrics and leathers are available, allowing them to pick and choose the look and design footprint they want. Upholstered beds also are available in multiple configurations and fabrics, also shown in detail on the website.

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MONROE, Mich. — From La-Z-Boy’s latest earnings call for its fourth quarter and full fiscal year ended April 27, it’s clear that retail development — both new store openings and acquisitions — remains a core part its strategy moving forward.   

Of course, none of this is new given the number of stores the company has in place currently. But it appears to be positioning itself for even further growth in the months and years ahead.  For example, during its latest earnings call, company President and CEO Melinda D. Whittington noted that the brand is looking to have about 400 La-Z-Boy Furniture Galleries over the next several years, up from 355 at the end of its latest fiscal year.

The 355, which is up six locations from the prior year, brings the number of total company owned stores to 187, including the six new store openings and 11 acquisitions during the full year, including the acquisition of a two-store independent network in Florida during the quarter. And in May, she said, the company also signed an agreement to acquire an additional one-store market from an independent dealer in the Midwest that’s set to close in the first quarter of fiscal year 2025.

Bob Lucian, senior vice president and chief financial officer, noted that the company plans to open 12-15 new stores — separate of any acquisitions — mostly in the second half of the year as part of a planned $70 million to $80 million in capital expenditures during the fiscal year, which he noted “includes land and building investments and stores to maintain the growth of our retail network.”

Obviously, the company is bullish on its store network during a time when furniture retail is struggling amid an environment of high interest rates that are hampering existing home sales, combined with consumers tightening their belts with high-dollar purchases.

During the call, Whittington noted that while total written sales for company-owned La-Z-Boy Furniture Galleries were up 1% for the quarter, written same-store sales for the entire network of 355 stores were down 3% for the quarter compared to the prior year and down 2% for the entire year. But she also noted that this performance is still better than the industry overall “against a backdrop of 8% industry contraction” during the quarter and down 6% for the year “as our significant outperformance versus the market persisted throughout the year.”

“Despite ongoing challenging traffic trends, our stores continued to execute very well, with higher conversions, higher ticket and design sales partially mitigating the traffic headwinds,” she noted.

In addition, the company now owns 53% of the stores in the La-Z-Boy Furniture Galleries network for the first time in its history. Of course, some of this has to do with the acquisition of stores from independent dealers looking to get out of the business during this ongoing period of malaise. Perhaps company ownership will improve the performance of these locations as things start to turn around, but that largely depends on support from the economy.

For Whittington, the growth of the store footprint makes sense moving forward.

“We see meaningful opportunity to expand the company-owned portion of the network through new store growth and acquisitions,” she said, adding, “These store acquisitions are immediately accretive to our profitability, allowing the company to benefit from integrated wholesale and retail margins.”

She also noted that growing the company-owned store network is important “as it enables the brand to control the end-to-end consumer experience and leverage the strength of our vertically integrated model.”

Another benefit in the company-owned store approach? It also helps guide product development.

“We continue to shift organizational decision-making to be more consumer-centric while also leveraging a data-driven approach,” Whittington said, adding, “This is enabling us to develop more consumer-relevant, on-trend upholstered furniture, particularly in the motion and reclining categories where we are a market leader.”

Of course, this consumer-driven approach is not just beneficial to the development of upholstery and recliners, but also wood categories such as occasional, along with bedroom and dining furniture offered by its sister brands.

The success of this growth initiative also obviously depends on a number of factors, ranging from interest rates and housing sales to the consumers’ willingness to return to spending more on the home. Yet despite these uncertainties, Whittington was optimistic about the company’s strategy, not just in its retail store footprint, but also how it is serving consumers in the market overall, ranging from the agility of its supply chain to product development initiatives.

“We know there are consumers out there still investing in their home, even in a challenging economy, and we believe we are disproportionately capturing them,” she said. “But if I were to step back and say ‘what is the biggest pivot for us as a total enterprise?’ It’s really this focus on driving our own company-owned retail and the reason for that is two-fold. We can control that brand experience for the consumer end-to-end. We can avail ourselves of the data from that consumer by interacting with them directly, and from a financial standpoint, we can take advantage of that integrated margin of owning the entire chain, from pieces of fabric and steel all the way to putting that product in the consumer’s home. And we believe that’s good for the consumer, and that’s good for our financials as well. So really, I would call continuing to expand our reach of our own retail probably the No. 1 biggest driver.”

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Schumacher, who left his executive post at HFA at the end of May, recently posted on his LinkedIn page that he had joined the board of the lifestyle retailer.

In his post, he noted, “For years I have admired R&B’s commitment to their team, customers, sustainability and social responsibility. Their recent designation as a B Corp, which means Room & Board meets high standards of social and environmental performance, transparency and accountability, is a testament to the culture they have built.”

He also noted that in April, the company transitioned into a 100% Employee Stock Ownership Plan (ESOP), which gives its 1,100 employees a financial stake in the organization.

“The new board of directors is tasked with providing strategic direction and financial oversight for the company during this time,” Schumacher said. “I can’t express how honored and humbled I am to become part of the Room & Board team.”

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WASHINGTON — The U.S. Consumer Product Safety Commission has announced the recall of a bookcase unit that was involved in a tip-over incident last summer that caused the death of a 4-year-old child.

Dania Furniture of Boise, Idaho, is recalling 940 of its Hayden bookcase units that the CPSC said are unstable if not anchored to the wall, posing a tip-over and entrapment hazard that can result in death or injuries to children. The company received a report of one tip-over incident in August 2023 that involved an unanchored bookcase unit that resulted in the death of the child.

The CPSC said that these bookcases, made in Italy, were sold exclusively at Dania Furniture stores nationwide and online at www.daniafurniture.com from November 2017 through February 2024 for about $370.

The recall involves the wooden Hayden bookcase, which has six storage cubbies and three sliding white doors. It is 35.5 inches wide, 16 inches deep and 73 inches tall. A label on the back of each unit contains the product name and SKU number LB2225/A.

The CPSC has advised consumers to immediately stop using the recalled bookcase if it is not anchored to the wall and place it in an area that children cannot access.

Consumers also have been advised to contact Dania Furniture for a free, in-home installation of a tip-over restraint kit. In cases where the units cannot be anchored to the wall, or if consumers prefer a refund, the CPSC said, Dania Furniture will provide a full refund of the purchase price and arrange for the pickup and disposal of the units. The company also is contacting all known purchasers directly.

For additional information, consumers can contact Dania Furniture toll-free at 844-722-6347 from 9 a.m. to 6 p.m. PT Monday through Friday, via email at ProductSafetyHotline@interline.com, or online at https://daniafurniture.com/pages/safety-recalls. Or they can visit https://daniafurniture.com/ and click on the “Safety Recalls” tab at the top of the page.

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Sleep in Heavenly Peace shares in Hope to Dream’s mission of providing beds to children who would otherwise go without. Together, they have created a powerful alliance focused on delivering a good night’s sleep and a sense of security to those most in need. This crucial partnership has positively impacted the lives of countless children and families throughout the United States and across several countries.  

“We are thrilled to mark the fifth anniversary of our partnership with Sleep in Heavenly Peace by donating 1,000 mattresses,” said Ruthie Bautista, Vice President of Hope to Dream. “This is a testament to the unwavering commitment of both organizations towards improving the lives of children across the nation. Our shared dedication to ensuring every child has a safe and comfortable place to sleep has been the driving force behind this successful collaboration.” 

Sleep in Heavenly Peace aligns perfectly with Hope to Dream’s aim of providing proper bedding solutions to children facing difficult circumstances. By delivering quality mattresses and bedding accessories, these organizations bring warmth, comfort, and a sense of stability to countless lives. In April 2024, Sleep in Heavenly Peace built and delivered their 200,000th bed. Hope to Dream and local Ashley stores have supplied over 8,000 beds towards this achievement over the course of the partnership. A portion of every mattress purchased at participating Ashley stores helps Hope to Dream provide beds to children in need.   

“We are incredibly grateful for the ongoing partnership with Hope to Dream,” said Luke Mickelson, Founder and Head of Development of Sleep in Heavenly Peace. “This donation of 1,000 mattresses will go a long way in helping us continue our mission of ensuring no child has to sleep on the floor. Our shared dedication to improving the lives of children in need has been the key to our success, and we look forward to continuing this impactful partnership in the years to come.” 

Together, Hope to Dream and Sleep in Heavenly Peace remain committed to helping children experience the transformative power of a good night’s sleep. 

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THE WOODLANDS, Texas — The Nasdaq Stock Market has given specialty furniture, bedding and home goods and appliances retailer Conn’s Inc. 60 days to submit a plan to regain compliance with a rule related to the timely filing of its quarterly reports.

On June 11, the company notified the U.S. Securities and Exchange Commission that it was unable to file a timely 10-Q financial report for its fiscal first quarter ended April 30. The company said the delay was because it had been unable to complete disclosures related to possible amendments to, or the refinancing of its revolving credit facility that were required to be included in its 10-Q.

“As a result, the company is unable to file, without reasonable effort or expense, the Form 10-Q on or prior to the prescribed filing date,” the company said in its June 11 disclosure.

On June 20, the company received a delinquency notification letter from Nasdaq stating it was not in compliance with Nasdaq Listing Rule 5250(c)(1) because it had not filed the report by the due date required by the SEC.   

The company said the notice has no immediate effect on its listing  or trading of its common stock on the Nasdaq Global Select Market. However, it said that it has until Aug. 19 to submit to Nasdaq a plan to regain compliance with the Nasdaq Listing Rule.

Conn’s noted that if Nasdaq accepts its plan to regain compliance, Nasdaq may grant the company up to 180 calendar days from the prescribed mid-June due date for the 10-Q, or until Dec. 16, to file the 10-Q in order to regain compliance.

“However, there can be no assurance that these events will occur,” the company said in a statement issued Wednesday relating to the delinquency notice.

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“Independent furniture stores selling Meridian have seen increased traffic with younger customers coming in to furnish their living space with more contemporary pieces,” said Michael Rosilio, president of Meridian Furniture. “Social media has made it possible to reach customers that otherwise might not have known about us.”

Best Buy Furniture, located in Pennsylvania and New Jersey, is a three-store traditional brick-and-mortar chain that features the brand, promoted through leading influencers and a strong social media presence. According to Best Buy Furniture Chief Executive Jordan Lulu, Meridian Furniture, which offers top quality, trendy furniture with unique designs, has been a go-to partner, especially when targeting celebrity influencers.

“Not only were the product styles what they wanted, but the price points were unbelievable,” said Lulu. “Meridian gives us the designer looks influencers and celebrities want for half the price. We’ve done a lot of work on influencing. We had never seen such a big increase in sales before posting on social media and running ads on Instagram, Facebook and Google, and we do all that in-house. And it helps that Meridian has the overall aesthetic, appeal, and packaging that young consumers love.”

Influencers well-known to the TikTok generation such as “Food God,” formerly known as Jonathan Cheban, who made appearances on “Keeping Up With the Kardashians,” and YouTube star Jake Paul have taken to Instagram and TikTok to share their homes being furnished by Best Buy Furniture, and Lulu has furnished homes for free in exchange for social media posts. Part of why the 26-year-old’s marketing approach is successful is because he’s connecting with influencers that millennials and Gen Z are interested in. So far, Best Buy Furniture has garnered over 174,000 followers across all social media platforms, with at least one social media influencer—Ed Bassmaster—who pranked salespeople on the floor garnering more than a million views.

“We’re shifting a lot of our attention online, to our e-commerce website. Customers can purchase Meridian Furniture at any of the three Best Buy Furniture suburban locations, two in Pennsauken, New Jersey, and one in Philadelphia, Pennsylvania, and we can place an order and ship something directly to California or Missouri or Boston or any other city in the U.S. for really competitive pricing,” Lulu said. “It’s rare for manufacturers to give us that backend system and support to be able to cater to all these customers.” 

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WASHINGTON — Consumer confidence fell this month as consumer plans to buy homes and cars have stalled, while spending on some other big-ticket purchases including vacations continues to rise.

The Consumer Confidence Index fell to 100.4 in June down from 101.3 in May. Meanwhile, the Present Situation Index that is based on consumers’ assessments of current business and labor market conditions, rose to 141.5, up from 140.8 in May. The Expectations Index, which is based on consumers’ short-term outlook for income, business and labor market conditions, dropped to 73 in June, down from 74.9 in May. This is the fifth consecutive month it has been below a threshold of 80, which officials say signals a recession.

“Confidence pulled back in June, but remained in the same narrow range that’s held throughout the past two years, as strength in current labor market views continued to outweigh concerns about the future,” said Dana M. Peterson, chief economist at The Conference Board, adding that “if material weaknesses in the labor market appear, confidence could weaken as the year progresses.”

Peterson noted that the decline in confidence between May and June was largely centered on consumers between 35 and 54, while there was an improvement in confidence for those below 35 and those 55 and older in June.

“No clear pattern emerged in terms of income groups,” Peterson added. “On a six-month moving average basis, confidence continued to be highest among the youngest under 35 and the wealthiest (earning more than $100,000) consumers.”

The latest survey showed that buying plans for big-ticket appliances and smartphones rose slightly while fewer planned to buy a PC or laptop computer. In addition, the share of consumers planning a vacation in the next six months continued to rise and remains above the level a year ago, with more consumers planning to vacation in the U.S. than overseas and more people planning to travel by car versus by plane. However, the survey noted that the share of consumers planning to go on vacation is about 10 percentage points lower than pre-pandemic.

While fewer indicated they are concerned about a recession, and average 12-month inflation expectations fell slightly from 5.4% to 5.3%, write-in responses from consumers showed that elevated prices, including those for food and groceries, continue to impact their views on the economy, followed by the labor market and political situation in the U.S.

However, the share of those believing that the 2024 election would impact the economy was low compared to write-in responses in June 2016 and slightly higher than during the same period in 2020.

Consumers also were positive about the stock market. For example, 48.4% expect stock prices to increase in the year ahead compared to 23.5% expecting a decrease and 28.1% expecting no change. In addition, the share of consumers expecting higher interest rates over the next 12 months fell to 52.6%, the lowest level since February.

Other highlights of the report were as follows:

Of their Present Situation, or assessment of business conditions:

+ 19.6% of consumers said business conditions were good, down from 20.8% in May.

+ 17.7% said business conditions were bad, down from 18.4% in May.

+ 38.1% of consumers said jobs were plentiful, up from 37% in May.

+ 14.1% of consumers said jobs were hard to get, down from 14.3% in May.

Of their expectations of short-term business conditions six months from now:

+ 12.5% of consumers expected business conditions to improve, down from 13.7% in May.

+ 16.7% expected business conditions to worsen, down from 16.9% in May.

Regarding the short-term labor market outlook:

+ 12.6% of consumers expected more jobs to be available, down from 13.1% in May.

+ 17.3% anticipated fewer jobs, down from 18.8% in May.

Of their short-term income prospects:

+ 15.2% of consumers expected their incomes to increase, down from 17.7% in May.

+ 11.7% expected their incomes to drop, up from 11.5%.

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Loree brings significant consumer durables and retail channel experience, having served in C-suite roles at Stanley Black & Decker, Inc. for almost 25 years, including serving as the company’s CEO from 2016 to June 2022.

During his tenure, Loree led growth strategies to increase revenue from $2 billion to $16 billion. Under Loree’s leadership, the company enhanced its advanced manufacturing capabilities, increased operational excellence and responsible business practices, and was recognized as a best workplace for innovators as well as for diversity and inclusion.

“It’s been a privilege to serve as Interim CEO, and I’m proud of the entire SSB team’s commitment to our turnaround efforts,” says Genender. “Over the last eight months, we have successfully relaunched a large portion of our product portfolio, enhanced critical retail relationships, initiated national advertising campaigns, and improved service levels and operating metrics across our plant network. These accomplishments have only been possible through coordination and teamwork across all functions of the organization. We are beginning to see the success of these efforts through regained market share, and we are well positioned for future growth and success.”

I am honored to have the opportunity to lead the Serta Simmons Bedding team into the next phase of our company’s turnaround, grounded in progress and profitable growth,” says Loree. “Mark and the leadership team have laid a strong foundation for success, and I look forward to building on the turnaround strategy and developing a strong culture of accountability focused on driving financial results.”

“Jim’s appointment follows a thoughtful search for a permanent CEO by our board of directors. We are confident he is the right choice to help us continue accelerating our turnaround efforts and drive financial results,” Genender adds. “He brings deep experience from Stanley Black & Decker and General Electric and a record of delivering operating and financial results, and I look forward to working closely with him as board chairman as we continue to expand our business and drive profitability.”

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