Most new pieces, with prices and quality in the mid-upper and upper end that the company is known for, will be ready for immediate shipment, says Brad Cates, president and CEO of the Wilson, North Carolina-based company.

“The High Point Market is a critical time in the life cycle of our business. In these few precious days we have with our customers, it is imperative that we do all that we can to help satisfy their needs. Now, having a great cocktail table along with a coordinating side or console opens the door to more possibilities,” Cates says. “The Sarreid color palette allows — and even encourages — eclectic pairings to bring a room or project together. With a more intentional effort to have coordinating pieces, particularly in the occasional offering, Sarreid is poised to be an even more important resource to design and retail customers alike.”

New product highlights include:

• Building on its legacy of mixing materials and proficiency with hand-wrought iron, Sarreid is introducing the Mykos collection, which pays tribute to a church in Greece with its beautiful marble surface. Hand-wrought iron can also be found surrounding historical parquet surfaces from reclaimed timbers in the new Castle Gate collection. 

• To accomplish the goal of being a “whole home” resource, Sarreid has been introducing new bed styles at recent markets, as well as a large number of nightstands and dressers. Bed designs range from the woven leather headboard of the Vineyards king bed to the carved Madeline Bungalow poster bed.

• Sarreid also is expanding what it says is its strongest category: dining room. The classic, comfortable Brighton dining chair has been a bestseller for the company, and it is adding a Brighton counter stool, allowing the dining room design to flow seamlessly into kitchen and bar areas. It is also adding a straight-lined Bauhaus sideboard to complement its bestselling contemporary Bauhaus dining table.
• Texture will be a key design element in the Sarreid showroom, from dimensional carved fronts on sideboards to shagreen leather details. The company’s new Textures collection “intentionally crosses the lines of transitional and contemporary,” with skived wood panel accent areas creating a feeling of motion, exclusive hardware and contemporary exposed metal banding.

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“I think for the longest time, we’ve been focused on digital things like the metaverse (and) social commerce,” said Nivara Xaykao, director of culture and consumer insights for New York-based FS, a global creative trend intelligence agency, during a recent seminar on “The Future of Retail.” “But as we were doing research for this report, we found that we were getting the most excited about what’s going on at the brick-and-mortar level. … As people get back out there into the world, we also feel like physical stores will reassert their importance once again.”

Omnichannel retail continues to be important, Xaykao said, with brick-and-mortar locations increasingly serving a marketing role as a place where shoppers can learn more, touching and seeing products up close, while developing a relationship with the brand. “At the same time, consumers are seeing no distinction between physical and online or hybrid environments, so we always stress that businesses should look at these different channels as one united storefront,” she said.

“The Future of Retail” is part of a series of “The Future of…” seminars intended to help brands, designers, marketers and others identify innovations, key movements and consumer shifts so that they can better understand their current markets and what’s ahead. FS gave attendees an overview of about a half-dozen retail trends. (Fuller reports are available to its clients.) We’re focusing more narrowly here on those most relevant to the home furnishings retailers.

THE SERVICE SHOP

Research shows consumers — in particular, younger consumers — are less, well, “consumery,” with about four in 10 saying in 2022 that they are consuming less in general — up 10% from the prior year. Inflation may be driving some of that but, “in the long term, the primary motivator will be environmental, with the public increasingly expressing concern over the impacts of consumption,” Xaykao said. “As consumers buy (fewer) physical goods or turn to circular practices like resale, traditional retailers will have to seriously rethink their business models and explore new, sustainable revenue streams. In transitioning out of a material-based economy, services present the next frontier for retail.”

What this means:

• Retailers could consider offering a host of practical services. Interior design services are a natural fit for home furnishings sellers, but some may begin offering reupholstery services, furniture refinishing or repair, too.
• With consumers increasingly interested in sustainability, retailers can also serve as a drop-off point for people to dispose of or recycle packaging and goods.
• Other service-related offerings could include product upgrades (such as on electronics), rewards programs and exclusive perks.

“Brands and retailers that can provide services with a more personal touch, especially when coupled with rewards programs, can stand out and really gain a competitive advantage,” Xaykao said.

Companies leading the way:

• Online luxury marketplace Farfetch’s loyalty program includes a concierge service that gives its best customers access to exclusive sales. The app also matches customers with stylists who can provide personalized recommendations and track down hard-to-find items, according to FS.
• Footwear and lifestyle brand Golden Goose offers a cobbler shop-within-a-shop in its new stores. “Much of the floor space is now dedicated to services like mending, cleaning, customization and product disposal,” Xaykao said.

HYPERPHYSICAL EXPERIENCES

“The pandemic really reframed humanity’s relationship to our five senses: touch, hearing, sight, smell and taste. We had this extended period of limited contact, (and) we saw the world flattened through digital screens, constantly doing everything remotely,” said Nico Gavino, strategist for culture and consumer insights for FS. “And (for some who got Covid-19), we experienced symptoms, including the loss of taste and smell. … These experiences really revealed the integral role that these senses collectively play in our daily health. So, with this in mind, we first see consumers returning to stores, seeking out those sensorial experiences that they may have missed out on.”

“Additionally, as e-commerce continues to drive a greater share of sales, brick-and-mortar stores and restaurants are going have to create an even more unique experience that really compels customers to return,” he continued.

What this means:

• Retailers that want to bring shoppers into physical stores need to encourage touching and stimulate the other senses with lighting, color, sound and scent. It’s all about giving shoppers a reason to walk in rather than click to buy.
• Furniture retailers may want to focus more on seating in their physical locations — a product category that may benefit most from in-person shopping as customers experience how it feels to sit in a chair or lounge on a sectional.

 “The future store is going to be a place to experience your products’ sensory attributes,” Gavino said. “So, take some time to think about what sensory attributes your brand can emphasize in your products, and really allow those attributes to take center stage in your store experience.”

Companies leading the way:

• Luxury apparel brand Jacquemus’ new boutique in Paris is filled with pillows (including on the walls) and plush carpeting to envelop shoppers in a soft, soothing and relaxing atmosphere.
• Our Place, a cookware brand, has made appealing to its customers’ sense of taste a key part of its first brick-and-mortar store in Venice, California. The space includes a café where it can also host cooking classes.

THE THIRD PLACE

“Post-Covid, consumers are leaning out again, looking for local spaces to connect with community offline, often through third places. Sociologist Ray Oldenburg came up with the Third Places Theory to describe the importance of the spaces between the home (first place) and workplace (second place), such as coffee shops, public parks and libraries. … Since the world has largely resumed normal indoor activity, many retail outlets have begun to act as third places, as well,” Xaykao said.

To become a third place that draws people in regularly, retailers need to offer amenities that “contribute to individual well-being and enhanced quality of life,” instead of focusing solely on the transactional shopping experience, she said. Brick-and-mortar booksellers who have long included cafes in their spaces understand the importance of this.

What this means:

• Retailers can offer lounging areas, cafes, bars, libraries, even small outdoor parks — anything that encourages shoppers to linger and to return often.
• In keeping with this idea, brick-and-mortar stores can also offer events, from speaker series to parties, that encourage people to visit the location even when not necessarily shopping for a specific item. Once inside, they are more likely to browse and buy.

Companies leading the way:

• Jins, an eyewear brand, created a community-centered store in its hometown of Maebashi, Japan. Called Jins Park to emphasize its role beyond a retail store, the location includes a bakery, cafe, playground and garden, as well as its eyewear.
• Dear Friend, a bookstore in Brooklyn, New York, has a café — not unusual in that retail category. But it offers food and beverages for dine-in only and bans laptops at the counter to encourage social connections among customers.

The post The future of retail inside brick-and-mortar stores appeared first on Home News Now.

Seven designers will create a rendering of a hospitality lounge, living space or anything in between, based on a theme chosen by Fairfield and using the company’s range of products to bring their vision to life.

“This year, we had designers reach out to us for participation, which was great to see, and to help narrow down the selection, we asked our amazing regional sales representatives for their insights,” said Dixon Mitchell, CEO of the Lenoir, North Carolina-based company. “It’s wonderful to see our pool of potential candidates continue to grow, and we have actually formed a waiting list.”

The designers’ renderings will be on display at the Fairfield showroom April 21-26 during the High Point Market. A panel of judges will choose winners, with the first-place designer having their design turned into a showroom display during the fall market Oct. 14-18.

The design challenge is a way for Fairfield to “inspire great design” in the hospitality segment, Mitchell said. “The Virtual Design Challenge allows Fairfield to raise awareness of the importance of the interior design community, and we view this challenge as a way to inspire others to explore creativity within their own designs.”

About half of Fairfield’s business is contract, from hotels and resorts to senior living communities. While consumer demand for all things home burgeoned during the first two years of the Covid-19 pandemic, the hospitality segment slowed “dramatically,” Mitchell said. “People were unable to travel as often, thus the need to develop new properties and refurbish existing properties was temporarily paused. Our senior living business took the largest hit as the pandemic impacted many communities.”

Lingering impacts of the pandemic, including construction delays and inflation, continue, but the sector has rebounded overall. “Fast forward to today: New builds and renovations are happening everywhere,” Mitchell said. Growing segments within the larger sector include country clubs (“Many clubs have refurbished their properties as membership has increased,” Mitchell said) and multifamily properties. “We are driving many product introductions toward this trend based on the feedback from our design partners,” he added.

Mitchell said hospitality is a good fit for Fairfield because of the company’s “ability to offer custom, design-driven products that are manufactured to contract specifications, all at an incredible value.”

To better serve its design customers with hospitality clients, Fairfield is expanding its ready-to-ship upholstery program, particularly bar stools, counter stools, lounge seating, and tables and chairs for activity rooms. Mitchell explained: “This push comes from the recurring instance where a design project is moved forward for installation of furniture, fixtures and equipment, and the designer needs categories of products immediately for express shipment.”

“Our ability to remain nimble and adapt to the changing market conditions is what sets us apart from our competitors and allows us to provide exceptional service to our customers,” he added.

This year’s designers

The seven designers participating in this year’s Virtual Design Challenge include:

• Niki McNeill Brown of McNeill Brown Interiors, based in Raleigh, North Carolina
• Caitlin Furbee of Wells Home, based in Charleston, West Virginia
• Shay Geyer of IBB Designs in Frisco, Texas
• Brenna Morgan of Brenna Morgan Interiors, based in Charlotte, North Carolina
• Kathy Shenk of Interior Fancies, with headquarters in Lancaster, Pennsylvania
• Christopher Todd of Christopher Todd Design in Henderson, Nevada
• Robert Ventolo of New York-based Crain & Ventolo Associates

In addition to having their room design featured in the Fairfield showroom in October, the winner will receive a $5,000 voucher for Fairfield products. Second- and third-place winners will receive $2,500 and $1,500 Fairfield vouchers, respectively. The remaining designers will receive a $500 Fairfield voucher for their participation.

Last year’s winner was Billy Ceglia, founder of Billy Ceglia Designs in Sandy Hook, Connecticut.

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“The line was really well-received at market and then, after market, the orders really started to come through,” said Carla Regina, co-founder and chief creative officer of the Detroit-based lighting, decor and furniture source. “… And then we launched alongside the upholstered seating, the white-glove service. That has been wonderful. Designers love it.”

When placing orders, customers can choose the option, having pieces delivered directly to a client’s home, with an additional fee depending on the order size. The option can add seven to 10 days to delivery dates, but, with lead times back down to pre-pandemic six- to eight-week time frames, the additional days aren’t a concern for most customers, Regina said. Offered through RAD’s freight broker, the white-glove service keeps customers up to date on deliveries with regular texts or emails. To be sure the system worked well, Regina and company co-founder James Andrew ran test deliveries to some sales reps and to themselves.

“It’s a very first-class service,” she said. “We’ve been very happy with them.”

Customers were a driving force behind the upholstery line launch last fall. “We’d always had a select group of upholstery items that complemented our lighting line, and normally we’d bring out a couple of pieces at a time,” Regina said. “But our customers had been asking for more products, requesting more upholstery and furniture.”

The line was a chance to try other new things, as well. “We wanted to explore producing domestically,” Regina said. “… We wanted also to work with materials that we weren’t seeing overseas as much and wanted to use organic and performance fabrics, as well.”

Like the rest of the RAD line, which includes lighting, tables, consoles, etageres, cabinets, wall art, decor, pillows and more, the upholstery line has a “contemporary style but it’s also timeless,” Regina explained.

In designing the collection, Regina and partner Andrew wanted to create a “luxury seating experience,” with “sinking, comfortable” feels but a refined look and luxurious fabrics. Frames feature solid wood construction for durability, topped with a combination of foam and feather for structure and comfort.

Another big part of the design process focused on the details, Regina said, including legs of solid oak and maple.

“We have gone with kind of an organic natural, no finish on our legs. And we’ve changed the shape from what you’ll typically see out there. We’ve also gone with the large welts. That was another detail that I think is pretty refreshing and new out there in the market. And then we’ve also pushed things a little bit to the edge with hair on hide. We’ve done some incredible selections with a champagne hair on hide that has been really well-received.”

One of Regina’s favorite pieces is the Alfie swivel chair with that champagne hair-on-hide upholstery that accents a tight seat and back with gently sloping arms. “It’s a petite chair but also really comfortable, which sometimes can be a challenge to create. It has a really great seat and the Regina Andrew aesthetic.”

Another favorite: The Oslo sectional, which taps into consumers’ desire for comfortable, flexible seating. It’s covered in a recycled performance fabric, “which gives it the green story that our customers are asking for,” she said. “They really love it, and the performance is amazing.”

For the High Point Market April 22-26, the company plans to add more upholstery as part of an introduction of dining pieces. Customers will also see new lighting and decor from the design-focused company.

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Ethan Allen is continuing its push to become a “leading interior design destination,” repositioning its retail network to a design focus by upgrading its nearly 175 design centers and investing in both technology and “more qualified, more talented” designers to provide customers guidance, executives said in the company’s latest earnings call.

The Danbury, Connecticut-based manufacturer and retailer reported consolidated net sales of $203.2 million, down 2.4%, for its fiscal second quarter of 2023, which ended Dec. 31, 2022. Despite the sales dip and declines in written orders at both the retail and wholesale levels, Farooq Kathwari, Ethan Allen’s chair, president and CEO, said he was pleased with the overall results. He noted that gross margins had risen to 61%, operating margins had increased to 18.2% and the company’s order backlog has continued to decrease. Looking ahead, Kathwari said, the company is “cautiously optimistic,” in part because its retail locations are becoming more design center than furniture store — a move that gives consumers more value and boosts sales.

The company opened its latest “state-of-the-art design center” in the Chicago suburb of Skokie, Illinois, in November. “This design center projection continues to position us as a leading interior design destination. Combining (the) personal service of our talented interior designers with advanced technology is an important focus,” he said in the earnings report. “Over the next 12 months, we plan to greatly enhance the projection of all our design centers.” Next up are a refresh in Danbury, Connecticut, in March and a new design center in Manhattan.

In the earnings call on Jan. 25, Kathwari called the company’s efforts to pair the personal services of its interior designers with technology “a game changer.” The company, he said, has 30% fewer designers than it did “four or five years back, but more qualified, more talented” designers now, and is continuing to invest in technology to allow them to better serve customers, whether that is online or in-store. It’s online tech services include a 3D room planner and area rug visualizer.

Within the next 12 months, Ethan Allen will refresh most of its 173 North American design centers to create a “more fashionable” and “stylish” look, Kathwari said. In most cases, that means cosmetic upgrades like new paint but also new products, he said.

Like some other producers, Ethan Allen introduced less new product in the three years since the Covid-19 pandemic began, focusing instead on filling back orders. “The good news is we were busy developing strong new products” during that same time, Kathwari told investors. “We have substantially strengthened our offerings, and new products will be introduced in the following six months.”

Kathwari noted that the company’s upholstery business remains strong and said it also has seen an increase in sales of home accents, in large part because of its interior designers.

“The major factor has been the interior designers’ ability to utilize technology to help. That has really been a very important factor. And when they do that, they then are able to provide a much, you might say, a more total solution rather than selling items and products,” he told investors. “… I think we’re going to continue to see that because our business has more and more gone toward interior design.”

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(We also asked him what AICO products are among his favorites. Although he says he loves “them all because they all have their own flavor and distinctive appeal,” he picked a few he thinks are current standouts.)

The job is new to Koehler but neither the industry nor the company are. Koehler is a 28-year furniture industry veteran who has been with AICO for 12 years, serving first as vice president of sales and, most recently, as executive vice president. He’s also held executive and sales roles for Theodore Alexander, Maitland-Smith and Sherrill Furniture.

One of Koehler’s overarching goals: “We want to be viewed as an arbiter of the most innovative designs in the world — a company that goes beyond expectations and delivers a value equation that’s second to none.”

Read on for more from our conversation.

Decor News Now: What are some of your initial priorities as you take on this new role?

David Koehler: “I think it’s important when you come into a role like this to listen first — to meet with and listen to the various teams within our organization. I think I need to take a deep dive and learn what is going well with each team and what needs improvement and change, so we build on our strengths. Then (we can) review our goals and strategies and plan with our respective teams. I’ve been here 12 years, but I think it’s important to look at the company with fresh eyes.

“I also believe it’s important to build a very healthy culture — a culture that has a foundation of working together, that eliminates frictions, that is constantly trying to improve and, really, a culture that goes beyond expectations and does ‘one more thing’ as Steve Jobs would say during his announcements. We need to do that ‘one more thing’ for our customers.

“We’re also investing in things that drive revenue, including investing in our digital transformation in terms of our digital sales strategies and social media platforms. We grew our following on Instagram by a pretty significant amount last year, but we’ve got to continue to do those things to invest in and build our brand.”

DNN: You replaced Martin Ploy, who had been part of AICO’s executive leadership team for 20 years before retiring in November. How might you approach the role of AICO president differently?

Koehler: “Martin is an iconic leader in our industry, and he has had a gigantic impact on my career. I consider him to be one of my biggest mentors, and I’ve learned an enormous amount working closely with him over the last 12 years. Our offices were literally right across from one another, and I would go into his office every single morning to discuss a host of issues. So, I learned from one of the best for sure. However, we all have our own styles, and we need to be who we are and lead with authenticity.

“… I think it’s important to communicate expectations and establish a leadership style as president. My style is one that brings energy and seeks to inspire and energize our teams to have a competitive edge, focused on execution and getting results. I also want to be very authentic and candid with everyone.”

DNN: What changes can buyers expect from AICO in the next year or two?

Koehler: “We will bring new, cutting-edge merchandise to our buyers and customers this year. At High Point in October 2022, we came out with a very large launch of new products — 20 new upholstery groups and two new case goods collections. We’re going to follow that up with a very, very large launch in April in High Point. And then, in the July Las Vegas and October High Point markets, our plan is to introduce a new lifestyle category for us that will feature multiple collections. It really is a new approach and new interpretation to the modern casual lifestyle for us.”

DNN: In announcing your promotion, Michael Amini, chair, CEO and founder of the company, noted that AICO has adopted an “aggressive growth strategy.” Tell us more about your plans for growing the business.

Koehler: “One of the questions that we have to answer is ‘Where are our opportunities to shine in the current environment?’ One of those (opportunities) is to be very aggressive with our new product development and bringing new products to the marketplace. Michael loves to create new merchandise, and innovation is central to who we are. So, our products are going to continue to bring innovative looks that deliver recognized value.

“Our near-term growth opportunities are certainly not going to depend on that hyper consumer demand that was stimulated during the pandemic and that, frankly, pulled a lot of the demand forward. Rather, right now we’re focused on acquiring more market share. … Retailers are looking for unique, value-driven products and are focused on creating a stimulating shopping experience that excites their customers and compels them to buy. We feel this plays to our strengths because when people are desiring innovative, unique, distinctive home products, that’s who we are. That’s where we shine.

“We’re also expanding our global sourcing and are now manufacturing in Turkey — new upholstery collections, plus occasional and dining groups. (Editor’s note: The company also manufactures in China and Vietnam.)

“We’re always on the lookout for opportunities where we can source. That’s in our DNA as a global company.”

DNN: The industry is going through a bit of a rough patch, with the housing market slumping, inflation still bothersome and economic uncertainty ahead. How is AICO’s strategy shifting to deal with such factors?

Koehler: “Certainly, there are storm clouds out there, and we have to face reality as it is. I would say that the macro-economic metrics are mixed right now. We do have softening home sales and rising interest rates, and that’s concerning. Inflation is still too high, but it has slowed in each of the last six months, so that’s a good thing. Gas prices are still too high, but they’ve come down since their peak in June of last year. At the same time, employment in the U.S. market is still strong, and wages are up. The supply chain is certainly stabilizing. … We’re positioning ourselves to capitalize on the windows of opportunity that we see for our business, both in the near term and the long term. Our business is largely that medium to high-end consumer, which tends to be a bit less affected during a (down) economy. And, while the housing market has softened, people are still going to buy homes and purchase home furnishings. We just need to be prepared to get that business.”

DNN: Amini founded AICO 35 years ago, and many Decor News Now readers are familiar with the company. What’s something buyers might not know about the business?

Koehler: “I want customers to view us as a company that cares about them and wants to help them be successful. We’re not here just to make the sale. We want to help them be successful.

“In addition, we are a source where they can come to see an extremely wide variety of styles in virtually all product categories for the home. We were once viewed as the company that did only case goods or only Old World, opulent, traditional styles. We are so much more than that now. We want to be viewed as an arbiter of the most innovative designs in the world — a company that goes beyond expectations and delivers a value equation that’s second to none. Our product assortment is really wide reaching. We’ve got a vast furniture portfolio, but also rugs, lighting, wall art, top-of-bed, throws, pillows, accessories. We can help our customers furnish every room in the home.

“We’ve reinvented throughout our history, and we’ll continue to do that to lead in the world of furniture and interior design.”

DNN: AICO has an extensive line and it may be difficult to choose, but I’m going to put you on the spot and ask you to name a few pieces or collections that appeal to you personally right now.

Koehler: “You stuck me with this question. I was scratching my head because our line is so big and offers many different styles and categories. Frankly, I love them all because they all have their own flavor and distinctive appeal, and I could furnish a different home with each collection. … But if I’m limited, say, for my home, I would select a couple of collections: Paris Chic and Malibu Crest. Paris Chic is an avant-garde look with a gorgeous espresso finish along with anigre and figured eucalyptus veneers. Malibu Crest has traditional styling but utilizes traditional crotch mahogany veneers. To me, it’s a synthesis of materials, beautiful design and execution. When it comes to lighting, the Symphony chandelier is a favorite of the moment.”

The post A conversation with AICO’s new president, David Koehler appeared first on Home News Now.

Operating from a 68,000-square-foot production facility in Tijuana, Mexico, the company has rehired many seasoned Marge Carson craftspeople to manufacture and service its products.

“It is a testimony to the energy and experience of the Marge Carson Global team and the excitement about our vision for the brand that we have been able to resume manufacturing in only 60 days,” Linly said, adding that some had expected it would take up to 12 months to resume production after acquisition of the brand, which had ceased production last fall when Jim LaBarge announced he would have to shutter or sell the company to focus on health issues.

Founded in 1947 by interior designer Marjorie Carson and known for its plush, generously scaled and trendsetting upholstery with exclusive fabrics and trims, Marge Carson expanded into case goods 25 years ago under LaBarge. In 2021, Marge Carson exited that category. It had been importing from Indonesia and the Philippines and was centralizing production in North America. Marge Carson, based in Clarendon Hills, Illinois, is working to restart case goods production of both past and new designs in Indonesia.

Marge Carson’s line of upholstery, bedroom and occasional pieces will be distributed and serviced nationally to retailers and interior designers through a team of “brand ambassadors,” said Linly, who is president and CEO of the Chicago-area interior design firm and retailer Linly Designs. Linly started that company in 2002 and its 11,000-square-foot store has been one of Marge Carson’s largest accounts.

“Commodities are sold by salespeople, but a luxury brand like Marge Carson should be represented by brand ambassadors,” she said, adding that she has hired a new quality assurance team that is following multiple inspection steps and is introducing new packaging to “ensure that our line is at the highest possible level of quality.”

Other planned updates include a comprehensive new website and a “reintroduction and restyling of the brand” at the High Point Market “at a soon-to-be-announced date,” Linly said.

Going forward, the Marge Carson look will be “sophisticated and classic,” Linly said. “While we will retain the more casual bestselling collections like the Bentley and Santa Barbara upholstery lines, our focus is on elegance.”

She said fabric selection will be collaborative, with contributions from select new designers, as well as designers who have overseen textiles at Marge Carson in the past in order to achieve consistency of style but also elevate the offerings.  

To activate an account with Marge Carson Global Inc., place orders or make inquiries, buyers can email customerservice@margecarson.com or call 630-686-2686.

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The personal email was from my church’s national association. We are in the midst of a search for our next minister. As the body that guides the search process, the association cautioned search committees and congregations against setting unrealistic expectations for ministers to excel in every area of ministry. No minister can be the most rousing preacher, reassuring pastor, inspiring leader, successful fundraiser and capable manager, all while growing a congregation. The takeaway: Pick a couple of aspects of ministry that are most important to your congregation and find a minister whose skills and passions can best support those. Then assess your priorities and find ways to rely on others (associate ministers, other staff, volunteers, interns) to focus on other areas that are important to you.

The other email announced that the Denver-based Pearl Collective (formerly known as Gail Doby Coaching & Consulting) was releasing the full results of its survey of owners of interior design businesses to a broader audience. (Topline results came out last fall.) Done in conjunction with Interior Talent, the “2022 Interior Designers Survey on Fees, Salaries and Competing for Talent” contains interesting findings about salaries, staffing and hiring. Because it arrived around the same time as the email from my church association, I was particularly struck by some of the findings about challenges designers are facing — and how they plan to address them.

Respondents — a mix of residential and commercial designers, as well as those who have retail operations, too — reported they are experiencing several key challenges:

• Landing new ideal projects of the desired size
• Attracting more ideal clients
• Project schedule and product delivery delays
• Product availability
• Rising costs
• Settings fees and/or earning more revenue

To meet those challenges, respondents said they were considering or pursuing several strategies. Top among them:

• Maintaining contact with current and former clients
• Increasing networking with local building and real estate professionals, contractors and service providers
• Increasing their social media presence
• Raising fees or changing billing practices

The challenges are wide ranging. The strategies designers want to use to address them are broad, too — and time consuming to implement. Attracting more ideal clients and managing project delays require different skill sets. Improving social media marketing is much different than building relationships with local contractors and real estate agents.

And by and large, interior design firms are not, in fact, very large at all.

“According to data compiled by the American Association of Interior Designers, there are approximately 15,000 interior design businesses in the United States. Of those, around 8 in 10 have zero to four employees. … In our survey, 28% of respondents had no employees, 32% had one to two and 23% had between three and five — for a total of 83%, more or less in line with the industry percentages,” Pearl Collective writes in an analysis of the survey results.

Just as congregations can’t expect ministers to do everything well, small design firms may not be able to expect their tiny teams to excel in every area. But what does that mean about dreams for greater success? Should a church congregation decide they can manage without excellent sermons or pastoral care? Should a design firm continue doing projects that aren’t satisfying? Should they absorb rising costs instead of increasing profitability?

HIGH EXPECTATIONS

Complicating matters is how expectations — of both congregations and clients — have changed since the start of the Covid-19 pandemic.

Despite our church association’s cautions, most congregations want their next minister to do everything well, from preaching to fundraising to comforting congregants during difficult times.

Expectations are high among design clients, too. The Pearl Collective survey asked interior design business owners if their interactions with clients have changed since early 2020. About a third said they hadn’t but those reporting changes said their clients had become less patient regarding project delays and less understanding of price increases. Many reported clients being more demanding overall, according to the survey.

IS BIGGER BETTER?

The Pearl Collective notes that its survey results show a strong correlation between the size of an interior design firm and its overall performance. Not surprisingly, bigger firms have higher sales, but they also charge higher fees and higher markups, and are more likely to be bothered by project delays than they are to have trouble attracting ideal clients. (Smaller firms, on the other hand, are more likely to have difficulty landing the clients and projects they want.)

“There are many reasons why there are so many small interior design firms. Some are small by choice, some by necessity. Our experience working with clients, however, is that more small firms could be doing more business and earning more revenue by developing business plans to grow their staff and/or using other personnel support,” the Pearl Collective says.

But only one in four survey respondents said their top strategy for improving their business would be to expand their team. “A few more were considering increasing the use of outsourced services. It may seem counterintuitive to be thinking of adding more staff when you are trying to attract more business or increase your revenue, but if done properly it can be the boost you need,” the survey report says. “…Think people power” (emphasis the Pearl Collective).

DON’T GO IT ALONE

It is tough for one person to do it all — remember, nearly 30% of survey respondents are solo designers. It’s tough for even a couple of people (another third of designer firms just have an employee or two) to do all that needs to be done to create beautiful interiors, on budget and on time, while attracting new clients and improving profitability.

And given the added stresses of the past few years, including the uncertainty and the bust-boom cycle of 2020, it is no wonder many designers feel burned out and tired.

It may be time to rethink workloads, to focus on the areas of the business where designers do best and to find ways to tap the talents of others. That may mean hiring full-time employees, though both I and Pearl Collective acknowledge that the job market remains tight and finding the right talent may take time.

But it can also mean outsourcing some work, like social media management, to contractors who specialize in such things. It could mean merging your firm with another design firm or partnering with a related business (like a real estate agent or contractor) on just some aspects of your business. It could mean joining a buying group to reduce costs and improve delivery times. Or it could mean networking with other designers to see how they’ve streamlined and made their businesses more efficient, giving them time to focus on what really matters.

People power can take a lot of different forms.

Whoever my church chooses as a new minister, that person will need a lot of assistance from the congregation to carry out the work of the church. The minister can’t do it all.

So too does a design firm need to rely on the power of people to carry out its mission of creating interiors that support clients’ lifestyles and, dare I say it, nourish their souls.

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We know there are plenty of pain points right now — inflation is slowing but still hurting many consumers, and we’re starting to see significant layoffs in the tech sector and some in the home furnishings sector, notably the thousands of workers who lost jobs when United Furniture Industries abruptly shuttered its doors.

The Federal Reserve remains determined to bring inflation rates down, with another interest rate hike coming today. With that, we can expect housing sales to continue to slow, and that’s never good for the home furnishings industry.

But the luxury market may weather all except the most severe recessions. The “2023 luxury market (is) now set to (be) more resilient to recession than during the 2009 global financial crisis,” says a recent Bain & Co. report on the global luxury market.

Take, for example, the car market. Cox Automotive reports that demand for luxury cars is largely responsible for elevated prices in the sector overall — and that demand remains strong for high-end vehicles. “The luxury vehicle share remains historically high, increasing to 18.2% of total sales in November from 17.8% in October,” reports the company, which owns several vehicle and dealer services, from Autotrader and Dealer.com to Kelley Blue Book. The average price for a luxury car rose $405 in November to a record $67,050.

And we continue to see demand for home furnishings at the high end.

Rock House Farm, owner of Century and other luxury case goods and upholstery brands, recently bought Classic Leather, needing its skilled workers and facility to expand production of Century’s upper-end Signature line, as well as its Highland House and Hickory Chair lines, as it tries to clear backlogs.

“Our most acute need is for our brands that are the highest end,” Alex Shuford III, CEO of RHF Inc., recently told Tom Russell, editor-in-chief of our sister publication Home News Now. “… Part of that is because that business is a little more insulated from what’s going on in the general economy. It didn’t slow down the same as some of the more retail-oriented price points.”

Even given an economic downturn globally, Bain is forecasting a 21% increase in the luxury market this year when final numbers are tallied, and is particularly bullish about the personal luxury market next year. Bain forecasts sales of goods in the category to rise either 3% to 5% or 6% to 8%, depending on Covid-19’s continuing impacts in China and slowing in the U.S. and European economies. Smaller gains, to be sure, but still healthy gains.

But that doesn’t mean the luxury market can stagnate.

“The nouvelle vague — the new wave — of the luxury goods market will demand evolution amid disruption, adaptation amid uncertainty and expansion of creativity in all of the basics — all while new trends and concepts develop,” says Claudia D’Arpizio, a Bain & Co. partner and leader of Bain’s Global Luxury Goods and Fashion practice.

And that brings us to the news coming out of home furnishings brand RH. Its stock price has fallen sharply from highs earlier this year and, on the company’s latest earnings call, CEO Gary Friedman talked about how “the housing market has collapsed” when explaining a 14% revenue drop in the third quarter.

But, instead of retreating or scaling back, the company is investing, buying the to-the-trade custom furniture companies Dmitry & Co. and Jeup and creating high-end sub-brands like RH Couture Upholstery and RH Bespoke Furniture. It’s also moving forward with plans to open design galleries in major markets and is expanding beyond furniture with the hiring of Margaret Russell, former editor-in-chief of Architectural Digest and Elle Décor, to lead a new RH Media division focused on architecture and design.

The company, Friedman said, is firmly planting “RH flags at the very top of the luxury mountain” with the “intention of establishing RH as an arbiter of taste and design in the to-the-trade, luxury home furnishings market.”

RH is clear-eyed about the housing market and expects continued deterioration in coming quarters. But in his third-quarter shareholder letter, Friedman said he believes the company’s “long-term opportunity for growth has grown exponentially.”

For our industry’s sake, let’s hope the bullish predictions of a continuing strong luxury market hold.

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“We’ve been thinking about the wider culture. There are a lot of things that maybe worked for us (as a wider culture) pre-pandemic that don’t work for us anymore,” Maura Dineen, creative director for the Vancouver-based home furnishings source and retailer told Decor News Now during the High Point Market. “And there’s a lot we learned during the pandemic. I think people are evaluating what works and what doesn’t and moving on for a fresh start.”

As part of its own “reset,” Moe’s is heading into 2023 focused on three design directions: Enduring Sentiment, Free Form and Earthened. Also new from the company is a look book of new outdoor pieces.  

But let’s talk about the overall design trends first. Enduring Sentiment is a nod to nostalgia but not a trend stuck in the past.

“It’s all about the idea of future heirlooms, of pieces that will look even better five years from now than they do today,” Dineen says. “I think we’re having a resurgence of a mentality to buy less but buy better — better materials, better finishes, solid woods. … We had this conversation with our team and we were laughing: ‘I want one of my grandkids to fight over this chair.’”

In a digital presentation designed to create excitement about the 2023 design directions, Moe’s calls Enduring Sentiment “the next chapter of grand-millennial style” where midcentury gets a makeover with new materials and compositions. The company’s Cara sideboard in a blocky, simple silhouette of warm birch with sculptural wavy antique brass handles exemplifies the look. (You can see the digital presentation here.)

The curvy, low-slung silhouettes and other styles of the ’70s have been inspiring Moe’s recent designs and that will carry forward into 2023, Dineen says. She notes that the ’70s were a time of high inflation, political unrest, global uncertainty and concerns about the environment. (Sound familiar?) And yet, many people met those challenges with a sense of “exuberance and positivity and enthusiasm,” she says. Moe’s is addressing this ethos with a playful design aesthetic it calls Free Form, characterized by its Zeppelin slipper chair with a low-profile and rounded edges. Key materials for this look include corduroy and sundrenched velvets, chrome and burl wood, lacquered finishes and ribbed details.

The company’s third design direction, Earthened, draws on modern rustic and cottage core aesthetics, as well as ancient forms — and elevates them, Dineen says. “It’s not just linens and woods and stones, it’s also metals. We’re bringing in really rich materials and details.” The Alvin sofa with clean lines and a neo-traditional silhouette is an example of Earthened design and fits well with wood tones and textures or a reinvented shag rug.

HEADING OUTDOORS

Moe’s also is highlighting outdoor pieces for 2023 with a new look book devoted to the category and the “beauty of living al fresco.” The introductions are characterized by architectural silhouettes, amber wood and wicker woven seating, as well as dining chairs in muted earth tones.

Outdoor pieces include the clean-lined Tempo wood dining table and bench and the Luce dining chair with a “string theory” back.

The Rocca dining table and bench make a dramatic statement with columnar legs and oval silhouettes. Moe’s pairs them with leggy Silla dining chairs.

Also featured are modern Fare chairs available in black, white, Desert Red and Charcoal gray. Stackable and durable they can be stored and moved to accommodate groups of any size.

A DIVERSE DEMOGRAPHIC

Moe’s goal with its current and upcoming designs for both indoors and outdoors is to reach a variety of consumers, Dineen says.

“We have a diverse demographic and don’t sell to just one type of customer profile,” she says. “… When we’re designing, we want a piece that can be for very traditional customers but that can live in a contemporary space with a millennial family. It’s that push and pull: Finding the balance in developing items that appeal to different demographics. That’s the complex part — and the fun part.”

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