Date: February 4, 2007
Vol. XII, No. 3

Printer Version

TABLE OF CONTENTS

COMMENTARY: NEW TYPE OF STORE, NEW CUSTOMERS 

In September 2005, CLN interviewed Jan Stephenson, co-founder of Spark Craft Studio, absolutely the most interesting, innovative independent store I've seen in 20 years. (To read the original CLN interview, click on "Benny Da Buyer" in the left-hand column, then scroll down the right-hand column and click on "Spark Craft Studios: The Interview.")

The store is going strong. Revenues in 2007 rose 10%, and it now has a full-time store manager, three part-time assistant managers, and a retail/teaching staff of 10-12. Jan and co-founder Amy Appleyard are holding seminars for women who are interested in starting a similar studio, and they have written a book, Love Notes, for making cards (http://hollanpub.com/books/lovenotes.html) and they just wrapped up the sequel, Thank You notes, which will be published later this year.

I think one reason why the store is so innovative is that Jan and Amy had absolutely no experience in craft retailing (they met in an MBA class at Boston University). They didn't know how things were supposed to be. Today the store is succeeding because it is attracting young, urban women, many of whom were not crafters before this. Want ideas for attracting new customers? Visit www.sparkcrafts.com and look around.

Business-Wise. The CHA winter show offers an absolutely bewildering array of seminars, workshops, speeches, and other events. What is a buyer or exhibitor to do? This will be CLN's 29th consecutive show and Mike Hartnett has attended countless trade show events. Here is a personal list of what Mike would attend if he were a buyer or exhibitor.

Scene & Heard. A vendor reports on recent gift shows, and says attendance was up but the average order was down – and gift retailers had a better Christmas than many chains.

Industry Research. Info on The State of Specialty NeedleArts 2007, conducted by Hart Business Resarch for The National NeedleArts Assn.

Kate's Collage. So many CHA exhibitors sent CLN so much last-minute product news, that it's all been moved here. You'll find last brief product descriptions, booth numbers, and links to the exhibitors' websites.

"Benny Da Buyer". Rob Bostick and Sarah Hodsdon of Judikins have some excellent advice for independents on how to buy – critical reading before the upcoming CHA show.

"Vinny Da Vendor". An interview with tv craft spokesperson Terri O on her new Internet-based craft show – a new marketing option for vendors.

Note: To read the columns, click on the titles in the left-hand column. If it appears to be an "old" column, click on the "Refresh" or "Reload" button on your browser.

If you're attending the CHA show this weekend, as a buyer, exhibitor, or observer, let's hear your prediction for the show. Are you expecting to a good show? A bad one? Or something in between? To vote, click on Industry Polls in the right-hand column or click HERE. (And in the next issue you'll be asked if the show met your expectations.)

A whopping 68.2% of the voters in CLN's unscientific poll said they will have to raise prices in 2008, while another 13.6% said they may have to raise prices. Meanwhile, 11.4% said they "probably" will not raise prices and only 2.3% said they "absolutely" will not raise prices. Only 5.6% were not sure.

Vendors supplying the chains may be reaching their breaking point. As one vendor said to CLN, "The only way vendors can survive is to increase their prices. The major retailers have been flat-out refusing price increases for years. We have some products that we haven't been able to increase in price in over seven years.... This obviously puts the vendors in a precarious position as our costs go up every single year with cost-of-living adjustments and rising health care costs, raw material prices, transportation costs, and everything else going up." (To read the vendor's complete letter, click on Business-Wise, and then "Readers Weigh in on Industry Challenges" in the right-hand column.)

Clearly, the numerous product recalls will mean more thorough testing of products, particularly imports, in 2008. That will mean additional costs for importers.

The increases may not come only from traditional vendors. The International Herald Tribune reported Chinese manufacturers will probably be raising prices, too, thanks to higher costs for raw materials and energy.

The State of Specialty NeedleArts 2007 revealed that purchases by specialty needlearts consumers grew 29% from 2004 to 2006 to $1.384 billion. Knitting was the most popular category, with sales of $748 spent by 913,000 knitters. Crochet was next at $354 million and 504,000 consumers., followed by Needlepoint ($98 million, 71,000), and Cross Stitch/Embroidery ($184 million, 229,000). The study was conducted for The National NeedleArts Assn. by Hart Business Research and includes a wide variety of interesting data, including:

Knitters. Spent more than half their money in independent stores, but a quarter from web sites. Only 14% at craft chains and mass merchants. Only 8% started knitting in the past two years. The percentage of knitters' spending on websites more than doubled, from 12% to 25%.

Crocheters. Are different, spending 51% at chains, 20% from web sites, and only 17% from specialty shops. Only 3% took up crochet in the past two years. Each crocheter spends twice as much time and completes twice as many projects as the average knitter, but spends less money per project.

Shops. There is a continuing decline in the percentage of specialty shops that reported growth. In 2003, 83% of yarn stores reported increased business. That percentage has steadily fallen to 41% in 2006. Needlework shops' sales in 2006 were $525 million, independent-related craft shops' sales were $60 million, and needlework web sites were $328 million. Sales per square foot in yarn shops was $192 with a turnover ratio of 2.5 and an average inventory of $113,329.

The study is available to TNNA members at www.tnna.org. Details for non-members to acquire the study will be available soon.

The Connecticut legislature will soon consider new legislation, The Children's Product Safety Act – the ninth state to do so, according to The Hartford Courant. The law that would ban the sale of recalled products and require retailers to track those products and report to the state how those products were disposed.

Think of the mess we'd have if every state made up its own, different rules about testing and recalling products. This almost happened years ago when various states required differing testing and labeling requirements for some art materials. Finally the industry went to Washington and said, in effect, "We'll follow any testing and labeling requirements you want, but please, could be have just one set of standards, and not 50?"

Meanwhile, the Seattle law firm Keller Rohrback announced it's investigating Jo-Ann's recall of approximately 119,060 Robbie Ducky toy gardening tools and water globes and encouraged consumers who purchased the items to contact the firm.

The International Organization for Standardization (ISO) published an updated version of its ISO18902 document which deals with requirements for testing the quality of storage, display, and album products for traditional and digital photographs, according to the Image Permancence Institute's Archival Advisor's Newsletter. The new version specifically deals with digital photographs, consumer photography, and scrapbooking materials.

Now, for vendors to be able to say their products are "photo safe," the materials (including paper and paper board, plastics, metal, adhesives, writing instruments, rubber stamp products, photo albums and picture frames) must meet various requirements in the 18902 document, the Advisor reported.

The official definition of "acid-free" has changed, too. The new standard requires paper and adhesives to have "a cold extraction pH between 7.0 ± 0.2 and 9.5 ± 0.2" – a more specific, exacting, and accurate way of measuring pH.

To purchase copies of the standard, visit www.iso.org and enter 18902 in the search box.

1. A new Internet-based Craft Radio Network is being launched which allows a company or individual to host a talk radio series from his home or office. Once an episode has been broadcast live, it is then archived by segment topic and podcast at midnight and sent to iTunes, Google, etc. Training will be available for hosts and host companies, and the company will be broadcasting at the CHA show and looking for contributing editors and advertisers. Visit www.wsradio.com. (Late word is the company will broadcast from the CHA show.)

2. Industry pro Howard Hoffman and noted spokesperson Terri O will launch web-based The Terri O Show with on-demand webisodes on Mar. 1. To read an interview with Terri and her new show, click on "Vinny Da Vendor."

3. David Jansen of the Jansen Art Studio (http://jansenartstudio.com) formed a Yahoo group (http://groups.yahoo.com/group/traditionsartist) which is a free, online class which will last one year. Each month he adds a one-hour streaming video, plus written instructions for the next step. By year's end the participants will have painted a copy of a Dutch Masters painting and learned the relevant techniques and appropriate art history. The first video has been viewed 2,200+ times by consumers in 45 countries.

"This industry is alive and kicking," Dave told CLN. "People just need something to bring them together and it looks like we have hit it." Dave's email is jansenartstudio@aol.com.

4. My Creative Classroom is having its grand opening at www.mycreativeclassroom.com, offering on-line classes in a wide variety of craft categories.

5. When Creativity Knocks, a weekly online tv series, premiered last Friday. Host Megan Araujo (daughter) and crafter Ana Araujo (mom) create projects in 8-10 minute segments side-by-side with viewers. Each show is archived, and includes "Ana's Favorite Things," "Viewers' Showcase," and a shopping mall. Viewers can win merchandise and visit sponsors' websites through sponsor links. Visit www.whencreativityknocks.com. Ana and Megan will tape shows at the CHA theater during the show – 9:30-10:30 Sun., Feb. 10 and Tues., Feb. 12.

6. CraftBuddy is a new crafting social network site designed for users to share ideas and showcase their projects including the ability to upload photos, articles, and instructions. Visit www.craftbuddy.com.

QUOTATION. "Hard to believe CHA is in less than three weeks. We are more prepared than normal, and still about a month behind." – CHA Exhibitor

HOTELS. Hotel reservations/nights booked are up dramatically over last year, CHA told CLN late Friday, meaning attendees are planning on staying longer at the show.

HOURS. The show has expanded its floor hours by 30 minutes to run 9:00 am-5:30 pm Sun.-Tues. and 9:00 am-2:00 pm on Wednesday.

ART. The National Art Materials Trade Assn. will hold an open house, Mon., Feb. 11, 6:00-8:00 pm in the Anaheim Hilton, El Capitan AB.

DESIGN, I. Warren Gruenig, CEO of Dee Gruenig Signature Designs and Posh Impressions, will introduce the best of Dee's designs in the License and Design area (#3295). Dee's designs have been sold widely since 1986 as rubber stamps, stamp supplies, and papers, but now will be introduced for license agreements with clothing and home dec manufacturers. ... Marie Browning and Debra Quartermain are sharing #3388.

DESIGN, II. To promote its lines of trims, embellishments, beads, etc., Expo International (#5639) is sponsoring a "Fashion Embellishment Challenge" in which 21 professional designers will compete for $1,000 in prizes. Buyers will vote for the best designs. It's Feb.10-12 with the winners announced at 4 pm Feb. 12.

DEMOS. The OTT-LITE® booth (#2311) will include Margot Potter (The Impatient Beader) and Claudine Hellmuth, known for her illustration and mixed media work, joining mom-and-daughter crafting team Ana and Megan Araujo as they tape two episodes of Ana’s new web-tv series, When Creativity Knocks.

IMPORT/EXPORT. Donna Clemmensen, Director of Import Services for AES Worldwide and a licensed Customs House Broker, will be available for members to discuss their U.S. Customs issues. She will be available in booth #5603 on Sat., Feb 9 from 1:00 pm (after the AES Worldwide Int. seminar) and Sun., Feb. 10, 9-5:00 pm.

CELEBRITIES. Suze Orman, Vanna White, Jane Seymour, and Jack Canfield will sign copies of their books in the Barnes & Noble satellite bookstore in the main lobby. Check the store for a schedule.

HANDOUTS. As part of CHA’s paperless initiative, handouts will no longer be distributed at seminar rooms. Download and print them; visit www.chashow.org, click on "Education and Special Events," then scroll down to "Speaker Materials."

TASK FORCES. Want to have a direct impact on what CHA does for its members in the future – and get a free lunch? Participate in a Task Force, in which interested members meet and give feedback and suggestions to CHA staffers. There's "Independent Scrapbook Retailer Challenges" on Mon, Feb. 11, 11:30-12:30 pm ... "CHA Winter/Summer Trade Show Positioning" on Mon., Feb. 11, 12:30-1:30 pm ... "CHA 'New' Members" (for members who joined in 2006 or 2007) on Tues., Feb. 12, 11:30-12:30 pm ... "Independent Craft Retailer Challenges" on Tues., Feb. 12, 12:30-1:30 pm. Participation is free but registration is necessary so the staff knows how many lunches to order. Email Semo Sennas, Marketing Program Manager at ssennas@craftandhobby.org or call 201-794-1133, ext. 218.

CLN has never had so much trade show product information sent so late. (Click on Kate's Collage to see for yourself.) Meanwhile, the editor of a trade magazine said it had received far fewer new product press releases than normal. That's a sign that vendors put the finishing touches on their new products later than usual – too late for magazine deadlines but just in time for CLN's final pre-show issue.

This could also mean there may be more prototypes than usual at the CHA show. A veteran retailer had this suggestion for exhibitors: If your products are ready for immediate shipment, have a sign in your booth that says so. The retailer had been burned in the past by placing a show order for what was a prototype, then returned home and waited for the delivery that never came. Why? Because the manufacturer didn't receive enough interest or orders and never went into production.

So exhibitors, if your product is ready for delivery, announce it!

DISTRIBUTOR OFFERS FREE "FLY IN AND SHOP"

Open Page Wholesalers is offering a unique service to new scrapbook stores: Free flight and accommodation for up to two nights to visit the warehouse facility in Mississauga, Ontario. (A flight credit is issued up to a preset $ value, and the service is subject to a minimum purchase.)

The program also offers one-on-one general business, sales, and marketing consultation; free store design and consultation; personal assistance in picking and shopping for opening inventory; free shipping (excludes fixtures); and online articles and assistance with marketing ideas and store openings.

General Manager Roger St Germain said, "This very successful program has enabled many store owners to do in a two-day visit what might normally take up to six weeks to do on line."

Open Page Wholesalers represents 70+ different manufacturers and provides service in English and French to North American and international retail customers. For more info on the "Fly in Program," visit www.openpagewholesalers.com or call Roger St Germain at 905-569-8455.

1. In CLN's last issue, I asked about price increases, thanks to a suggestion from a vendor complaining about the chains' refusal to accept price hikes, despite the fact that vendors' costs keep rising. Frankly, I was happy to accept the question, because I have trouble coming up with an interesting question for each of the 24 issues a year.

Do you have a question you'd like to see CLN poll voters answer? Want to know how the industry feels about a particular subject? Send your question to CLN at mike@clnonline.com.

2. Sometimes I think crochet takes an unfair place as knitting's stepchild. To read a wonderful defense of crochet that destroys many of the myths consumers have about it, visit Dora Ohrenstein's Crochet Insider site at www.crochetinsider.com and read "Busting the Bad Crochet Myth" at www.crochetinsider.com/In_Defense.html. The article includes photos proving crocheted clothes can be beautiful.

3. Here's a tip from a veteran retailer, depressing evidence of the state of our educational system. He had a sale bin with a sign that read, "20% OFF." The original price on the products was $5 and he was closing out the line at $4. Sales weren't that strong, so he made a new sign that read, "SAVE $1.00!" and sales picked up. He concluded a number of customers couldn't do the math.

4. Can't vote in the CLN poll? Many subscribing companies have more than one employee registered for CLN and operating from the same ISP. Once the computer receives a vote from one employee, it doesn't allow other votes from the same ISP. So if you try to vote and can't, it's because someone in your office beat you to it.

I could change it, but if 20 people from the same company voted on, say, the state of their business, their votes would probably be similar and skew the results.

COMPANY FOR SALE. Small scrapbook/rubber stamp/papercraft manufacturer with a unique product line that could be acquired to easily diversify current or future product lines. Can easily be relocated. Sales 125K+. For more info, in confidence, call Mike Hartnett at 309-925-5593 or email mike@clnonline.com.

ACQUISITIONS. CSS Industries, the owner of Berwick Offray, acquired C R Gibson in December for approximately $73 million. C.R. Gibson is a leading designer, marketer, and distributor of memory books, stationery, journals, note cards, paper tableware, infant and wedding photo albums, and scrapbooks. Key brand names are C.R. Gibson®, Creative Papers®, Inspirations™, Tapestry™, Artworks®, Stepping Stones®, and Markings®. Gibson President/Vice Chair Joseph Moore resigned and Donald French was appointed President. CSS stock is traded on the New York Stock Exchange under the symbol CSS. Gibson is exhibiting at CHA in booth #1465.

RECALL. Dollar Tree recalled approximately 253,000 Crafters Square Hot Melt Mini Glue Guns imported by Greenbrier Int. because they can short circuit, causing the gun to smoke and catch fire. Seven incidents have been reported. ... Jo-Ann and the U.S. Food and Drug Administration announced a voluntary recall of approximately 12,800 children's drinking cup, Children's Robbie Ducky Halloween, Thanksgiving and Christmas Glitter Tumblers. They were imported from China, but paint isn't the problem. The tumblers contain excessive levels of aerobic microbes in the water within the walls of the tumblers, thereby failing the bacteriological standards for U.S. Pharmacopoeia Purified Water. No incidents have been reported.

NEEDLEWORK. The National NeedleArts Assn. is looking for host companies to accept a college intern for its academic intern program, Pathways into Professional Needlearts. For into, call PiPN Coordinator Sherry Mulne at 614-237-0700 or email bdirect@columbus.rr.com.

SEWING. Jo-Ann is sponsoring its 2008 Sew Jo-Ann Prom Contest with Dritz and Singer. Students submit an entry form, two photos of their garment, and a Jo-Ann register receipt that shows the purchase of their fabric. Judging will be based on workmanship, originality, and level of detail. Prizes include cash, sewing machines, and dress forms. Entry forms are available to Jo-Ann stores and at www.joann.com/prom. Entries must be postmarked by June 30.

LICENSING. Cosmo Cricket signed a licensing agreement with Andover Fabric for Andover to use Cosmo's scrapbook designs to produce fabric, particularly for quilting. Cosmo also has a licensing agreement with Colorbok. (Comment: There's no reason why good designs must be relegated to a single product category.)

JOB OPENING. Walnut Hollow is looking for a key accounts manager to handle all aspects of developing and managing established key mass and specialty retail accounts and to represent the company at trade shows. Must have proven track record of sales growth, be very detail oriented, and able to conduct thorough analyses of customer performance. Prefer position to be located at Dodgeville, WI corporate offices, but willing to consider satellite arrangement. Nationwide travel as needed. Send resume with salary requirements in confidence to Human Resources Manager, Walnut Hollow, 1409 State Rd. 23, Dodgeville, WI 53533 or email myersb@walnuthollow.com.

JOB TRENDS. Because of the uncertain economy, some companies are looking at contract employees. To learn more, visit www.creativenetworkinc.com/newsletter.asp.

VALENTINE'S. The National Retail Federation’s 2008 Valentine’s Day Consumer Intentions and Actions Survey reported the average consumer plans to spend $122.98 on Valentine’s, similar to last year’s $119.67. Traditional gifts will see a slight decrease in popularity with more consumers preferring gifts of experience and gift cards. Greeting cards remain the most popular choice, but the number of people planning to purchase one is down to 56.8% from last year's 62.8%.

KUDOS. To Maps2Memories, which has launched a campaign to encourage consumers to shop at independent scrapbook stores. Visit www.maps2memories.com/specials.htm. ... And to Plaid, on the 25th anniversary of its Folk Art paint line, which started with 48 acrylic colors, and now includes Fabric, Outdoor, Enamel and more, plus a variety of paint mediums, books, and a learn-to-paint program. Watch for events and activities at trade and consumer shows and retail outlets as well as on tv and plaidonline.com, and in national magazines.

CHARITY. Coats & Clark will launch the "Red Heart loves your heart" program at the CHA show. It will be promoted at trade and consumer shows, stores, and local knit/crochet events by distributing American Heart Assn. info on its Go Red for Women heart health campaign and working with hospitals to provide blood pressure checks through their community outreach programs. Donations collected at these events will be presented to local chapters of the American Heart Assn. For more info, call Vicki Blizzard at 704-329-5021 or email vicki.blizzard@coats.com. Info will also be available in the CHA booth #2235.

PEOPLE. After agreeing to serve on the board of Home Depot, Michaels' CEO Brian Cornell resigned effective Feb. 14 from the board of OfficeMax. He had served on the office supply chain board since 2004. ... DRG hired Debra Boyd as the company’s assistant corporate controller. ... Apparently we don't have to pass the hat for John Menzer, former head of the now defunct corporate Ben Franklin who announced his retirement from Wal-Mart. Menzer earned $12.7 million for the year ended Jan. 31, according to Wal-Mart's year-end proxy statement. His compensation included a bonus of $6.14 million and options valued at $2.83 million.

TAXES. Hancock is arguing with the state of Mississippi over taxes. The state claims the chain owes $15.8 million and Hancock "believes this matter could currently be settled for approximately $2.8 million."

JEWELRY. A New York studio is now offering consumers the opportunity to make their own wedding and engagement rings. Visit www.newyorkweddingring.com.

STOCK. A.C. Moore: $12.27, up $2.17 ... Jo-Ann's: $12.82, up $3.15 ... Wal-Mart: $51.18, up $3.61 ... Dow Jones: 12,743.19, up 5.3%. (Note: All changes in price are since 2/1 and are exclusive of dividends.)

TV. Provo is running a half-hour infomercial for the Cricut. To learn more about the offer, visit http://www.4cricut.com. The show highlights a wide variety of the Cricut's uses in addition to the standard scrapbook applications.

AWARD. Search Press was nominated with three other publishers as Bertrams Trade Publisher of the Year. The winner will be announced in March.

SHOWS. Beth Mauro, Exec Editor of Scrapbook Retailer, has been reporting from the PMA/MemoryTrends show in her blog. The 1/30/08 entry has excellent advice for exhibitors who arrive at a show site to discover part of the booth shipment is apparently "lost." Visit www.fwpublications.com/bline.

SIGN OF THE TIMES. Creative HomeArts magazine launched a new column, "Make It Green," featuring eco-friendly projects and products, such as Kunin's new Ecospun fabrics.

INTERNET. ScrapMuse (www.scrapmuse.com) has revamped its website, which offers kits and other features. ... Two Peas was named the Top Internet Site and Top Internet Retailer by readers of Creating Keepsakes.

PUBLICATIONS. KnitKnit is an artist's publication dedicated to the intersection of traditional craft and contemporary art. Visit www.knitknit.net. Founder Sabrina Gschwandtner also has a new book, KnitKnit: Profiles + Projects from Knitting's New Wave.

RADIO. Last Thursday National Public Radio broadcast, Knitting Guerrillas Rock the Yarn featuring Sabrina Gschwandtner and the Knittas, a Houston-based, multi-generational group of knitting guerrillas who drape their knitted "tags" in urban locations, much the way a graffiti artist would tag a wall. To listen to the archived broadcast, visit www.npr.org/templates/story/story.php?storyId=18567507.

CONFERENCE. Yarn Market News' Smart Business Conference in Chicago is coming up – Mar. 24-26. For more info on schedules, registration, and scholarships, visit www.yarnmarketnews.com/conferences.

To see the latest listings by the only personnel recruitment firm specializing in our industry, click on Jobs in the left-hand column or click HERE.

An old man was grocery shopping with his grandson. The toddler was crying and at times screaming at the top of his lungs. As the old gentleman walked up and down the aisles, people could hear him speaking in a soft voice, "We are almost done Albert, try not to cry, Albert, life will get better, Albert."

As he approached the checkout stand, he gently brushed the toddler's tears from his eyes and said again, "Try not to cry, Albert; we'll be home soon."

As he was paying the cashier, the toddler continued to cry and a young woman in line behind him said, "Sir, I think it's wonderful how sweet you're being to your little Albert."

The old gentleman blinked his eyes a couple of times before saying, "My grandson's name is John. I'm Albert." 

REMINDERS

1. If you want a hard-copy of this issue, click on "Printer Friendly version."

2. If your company is a paid subscriber, everyone in the main office is welcome to register, free. Just click on "Work for a paid subscriber? Click Here to register" (center column, near the top).

3. If you ever have trouble with your password, click on "Trouble with your password" in the right-hand column of the main page. The computer will then email the correct information to you.

4. Creative Leisure News is usually published the first and third Mondays of each month, but because of the CHA show, the next issue will be Monday, February 25. Watch for an email newsbrief about the show shortly after it closes.

xxx

[ Home ] [ Business-Wise ] [ Kate's Collage ] [ "Vinny Da Vendor" ] [ "Benny Da Buyer" ] [ Kizer & Bender ] [ The N Files ] [ Newsbriefs ] [ Memory, Paper & Stamps ] [ Category Reports ] [ Designing Perspectives ] [ Trade & Consumer Groups ] [ Subscribe to CLN ] [ Legal Q & A ] [ Scene & Heard ] [ Jobs ] [ Tech Topics ] [ Industry Research ]

©Copyright 2010 by Creative Leisure Communications
(Reproduction or re-transmission without permission is prohibited.)