Volume 19 Issue 5

April 29, 2008

		PRO GROUP, VAL-TEST PLAN FOR UPCOMING GROUP MERCHANDISING CONFERENCE The Group Merchandising Conference organized by PRO Group, Inc. and Val-Test Distributors will take place June 23-25, 2008 at the Embassy Suites Hotel in downtown Atlanta.  The meeting format includes scheduled buyer/vendor appointments in private suites throughout the Embassy Suites Hotel, with Vendors offering conference specials and reviewing benefits of new products, merchandisers, displays and promotions to attending buyers. This is the fourth year PRO Group has hosted this conference and the second year distributors from the Schaumburg, Illinois-based Val-Test distributors have participated.  According to Steve Synnott, president & COO of PRO Group, Inc., the Group Merchandising Conference is tailored to the needs of distributor buyers.  Vendors set up merchandising displays in hotel suite exhibit areas for private meetings with every buyer appropriate to the category of goods. Conference specials are leveraged to gain retail shelf space with discounts for the purchase of full displays, end-caps and in-store merchandisers.  Replenishment of the displays provides a long-term gain for both the distributor and manufacturer.   http://www.pro-group.com/

NATION NOW IN MILD RECESSION, SAYS NAHB CHIEF ECOMONIST

The deepening slump in the nation’s housing markets has seriously eroded consumer sentiment and pushed the economy into a mild recession, according to the chief economist for the National Association of Home Builders (NAHB).“The worse-than-anticipated housing downturn, combined with systematic weakening of the labor market and rapidly rising energy and food prices, has taken a heavy toll on American consumers,” said NAHB’s David Seiders. “It’s now clear that we have entered what we anticipate will be a mild recession, running through the first half of this year, and there are substantial downside risks to this economic scenario.”  To guard against a longer and deeper downturn, Seiders said that Congress should take immediate steps to stimulate the economy through actions specifically targeted at improving the ailing housing market, such as a temporary home buyer tax credit, modernization of the Federal Housing Administration and oversight reform for the housing-related government sponsored enterprises “Stimulus bills recently passed in the Senate and the House Ways and Means Committee are welcome steps in the right direction. This is one instance where prompt and appropriate efforts by the nation’s lawmakers could make a significant difference in limiting the depth and duration of the economic downturn.” Full Press Release:  http://www.nahb.org/news_details.aspx?sectionID=0&newsID=6960

LUXURY MARKETERS OFFER INSIGHTS ON CONSUMER SPENDING HABITS

Lewis Schiff, the author of The Middle-Class Millionaire: The Rise of the New Rich and How they are Changing America recently shared some insights at the Luxury Marketing Council of Los Angeles (www.luxla.com), reports Lloyd Princeton of Design Management Company in his DMC Talk newsletter.  Schiff's book addresses the segment of our economy with assets between $1 million and $10 million (including primary residence) and their spending habits, historically and anticipated. Here’s the good news for the home improvement industry: Princeton reports that because home improvements fall under values-based spending, these are areas that reflect the core family-oriented middle-class values of the working wealthy. "As such, they are the last areas to be touched by recession-minded spending. This segment is more likely to make these expenditures before something discretionary, such as a new car or expensive piece of jewelry."  Note: this article adapted from Design Management Company's e-newsletter, DMC Talk. For more information on Design Management Company, visit www.dmcnyc.com or www.dmccds.com

SEARS ELIMINATES 100 HQ JOBS

Sears Holdings has announced it will eliminate 100 jobs at its headquarters, a move sparked by lagging sales combined with a corporate restructuring plan at the parent of Sears and Kmart stores.  According to the Chicago Tribune, jobs affected by cuts came from several different departments, including operations, logistics and store support.  The Hoffman Estates, Illinois based company has been struggling of late, with fourth-quarter earnings down 47.5 percent year-over-year and sales down 6.8 percent. Source: Home Channel News

BUILDING PERMITS

Privately-owned housing units authorized by building permits in March were at a seasonally adjusted annual rate of 927,000.  This is 5.8 percent (±1.7%) below the revised February rate of 984,000 and is 40.9 percent (±1.9%) below the revised March 2007 estimate of 1,569,000.  Single-family authorizations in March were at a rate of 606,000; this is 6.2 percent (±2.1%) below the February figure of 646,000.  Authorizations of units in buildings with five units or more were at a rate of 286,000 in March.  Source: http://www.census.gov/newresconst

HOUSING STARTS

Privately-owned housing starts in March were at a seasonally adjusted annual rate of 947,000. This is 11.9 percent (±11.6%) below the revised February estimate of 1,075,000 and is 36.5 percent (±5.2%) below the revised March 2007 rate of 1,491,000. Single-family housing starts in March were at a rate of 680,000; this is 5.7 percent (±11.1%)* below the February figure of 721,000.  The March rate for units in buildings with five units or more was 247,000.  Source: http://www.census.gov/newresconst

HOUSING COMPLETIONS

Privately-owned housing completions in March were at a seasonally adjusted annual rate of 1,216,000. This is 2.7 percent (±11.6%)* below the revised February estimate of 1,250,000 and is 24.5 percent (±7.1%) below the revised March 2007 rate of 1,610,000. Single-family housing completions in March were at a rate of 944,000; this is 3.3 percent (±12.8%)* above the February figure of 914,000. The March rate for units in buildings with five units or more was 258,000.  Source: http://www.census.gov/newresconst

NATIONAL HARDWARE SHOW PREVIEW

The National Hardware Show, featuring Lawn & Garden World™, Homewares™ and New Product World™, returns to Las Vegas, May 6-8, 2008 and will occupy the entire Las Vegas Convention Center. In an interview with the PROflash, Dean Russo, senior vice president for the National Hardware Show, said “especially in today’s challenging economy, buyers and sellers will both benefit from attending this spring’s show.  Companies are looking at every avenue to become more competitive, focusing on getting through the tough times in order to put themselves in a position for growth when the economy cycles back up.  Right now, there are many factors contributing to consumers’ dip in confidence about spending money on their home, but they still see their home as a solid investment. As such, they may not be spending as much on bigger projects, but they are doing more maintenance and home improvements,” Russo said. He added that consumers today are a lot more selective and cautious about what they purchase and retailers need to do more than ever to offer the right mix of products. The National Hardware Show offers home channel retailers of all sizes, including independent and specialty stores, a comprehensive preview of the entire home enhancement marketplace with over 3,500 exhibitors and over 150 product categories in addition to educational seminars. This year, in addition to the show’s popular new product area, there will also be a special area featuring “green” products, which are in high demand with consumers.  The show’s seminar program also addresses green issues – both for consumers and manufacturers.  While in Las Vegas show-goers can also attend George Little Management’s The Gourmet Housewares Show®; Global Home Textiles™ and Global Home Décor™ at the Sands Expo Convention Center. For more information and updates on the 2008 National Hardware Show, visit:  www.nationalhardwareshow.com. 

UPCOMING DISTRIBUTOR SHOW DATES & EVENTS

PERSISTANCE

“Some people grin and bear it; others smile and do it.”

- Anonymous