DDi - July 2010 - (Page 32)

32 | Fixture Super Section of the Fixture manufacturers see an optimistic future, growth on the horizon By Jessie Bove, Managing Editor he “Great Recession” was not kind to the retail industry, and that includes its partners and vendors. With consumers cutting back, retailers were forced to do the same, which meant that the ﬁxture industry saw things go downhill fast in the second half of 2008. And 2009 certainly was no better. But on the bright side, the down economy forced ﬁxture manufacturers to think of new ways to survive, upping their creativity and forging new alliances—side effects that will likely beneﬁt them as they move forward into the future. New store construction isn’t back to where it was a few years ago, but renovations, remodels and smaller new store programs have been the norm, explains Klein Merriman, executive director of the Association for Retail Environments (A.R.E.). And, overall, the ﬁxture industry seems to be feeling much more optimistic for growth in 2010. “After two years of sales declines, our members predicted a 10 percent sales increase in 2010,” Merriman notes. “I hope we hit that.” Read on for a Q&A with some of the ﬁxture industry’s top players to learn how they survived 2009, what they’re doing now and what’s up next. How has the “Great Recession” affected the overall store ﬁxture industry? What does the future hold? Roundtable Robert Reeve Frackelton, vice president, Reeve Store Equipment Co.: The store ﬁxture industry has experienced a decline in volume of 25 percent to 35 percent due to the decrease in new store openings and remodels. When the retailers stop growing, so do store ﬁxture manufacturers. Brad Somberg, president, B&N Industries: Unfortunately, the recession has had a huge impact on the store ﬁxture industry. We saw a considerable reduction in our proprietary product lines. Being on the board of A.R.E., I have multiple opportunities to talk with other companies within the industry. The bright side was we all seem to be more creative, and we all collaborated much more than we would have otherwise. These new alliances that were formed make us all smarter business people, and as the economy shifts out of the recession, those of us that survived should be positioned to thrive. I feel, while we won’t see huge growth quickly, we will see gradual growth across multiple retail categories. Joel Katterhagen, executive vice president of sales, Leggett & Platt Store Fixtures Group: At this point, there’s not a lot new to say about the recession, except that I do believe we’re emerging from it. From a manufacturing perspective, the recession demonstrated that a well-positioned company could endure—and even thrive—in tough economic times. As a Fortune 500 company, Leggett had resources other manufacturers didn’t. Those resources not only allowed us to move forward, but also provided the breadth of services and greater value our customers needed as they coped with the recession. Coming out of the recession, that wide range of services is now an expected part of doing business in the ﬁxturing industry. Fixture Industry T How has your business had to change to adapt to the economic climate of the last few years? John Thalenfeld, president, Trion Industries Inc.: The change started even earlier than the Great Recession. Retailing and store ﬁxturing for that purpose are becoming mature industries. Many simple, mainline ﬁxture products have become “commodities,” with sales leveling and pricing constant. A ﬁxture manufacturer’s strategy needs to be based upon new product development and addressing retailer goals, such as improving proﬁt per sq. ft. and reducing labor costs. “Greening” of ﬁxtures is also a priority, so savvy manufacturers are evolving their lines and offering innovative new solutions. | July 2010

Table of Contents for the Digital Edition of DDi - July 2010

Display & Design Ideas - July 2010
Contents
From the Editor
Newsworthy
Shopper Insights
Quick Tips
Greentailing
Editor's Choice
Design Snapshot
Channel Focus: Health & Beauty
CityCenter
State of the Fixture Industry Roundtable
Products
2010 Fixture Leaders Listing
2010 Fixture Leaders Company Index
Right Light
Product Spotlight
Advertisers
Calendar
Classifieds
Think Tank

DDi - July 2010