Home Textiles Today December 17th Issue

Monday, December 17, 2012

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY | hometextilestoday.com | Vol. 33, No. 28 | $8.00

Avanti Overcomes Sandy

Inside This IssueDollar General Making Progress in Home .......................... page 2

Now Public, Restoration Hardware Ready to Expand .................................................................. page 2

Whoda Thunk ....................................................................... page 4

Presents of Mine ................................................................... page 4

BY CECILE B. CORRAL

MOONACHIE, N.J. — It’s no wonder Avanti Linens would take the time to tally the numbers.

The 43-year-old bath towel manufacturer and supplier was se-verely slammed by Hurricane Sandy, the category 2 storm that pum-meled through the Northeast on Oct. 29, and spent three weeks working to recover from the destruction at its headquarters.

Here’s a glimpse of how Avanti calculated the event, which it calls “The Flood by the numbers:”

• 2.4 million gallons of water in the building• 29,000 man-hours for clean-up and restoration• 1,050 pallets of wet towels moved out• 700,000 towels destroyed• 12,000 square feet of sheetrock replaced• 4 miles of data and electrical wiring replaced• 22 30-yard containers of trash removed• 30 tons of wet cardboard recycledDespite it all, Avanti managed to beat its own back-to-business

schedule by seven days.“We set a goal of being back in business and shipping again by

Nov. 26, which was four weeks from the day that Sandy struck and 26 days from the start of the clean-up,” noted Jeff Kaufman, pres-ident and coo. “Some thought that was optimistic, but based on the progress we made early on, certainly achievable. We beat our

SEE AVANTI PAGE 8

Gets Back to Business

Two days after Hurricane Sandy struck, the water level had gone down three feet.

The Eccentric trend exudes modern

Bohemia.

FRANKFURT, GERMANY — Heimtextil, the world’s largest home textiles trade show, is weeks away. A fi rst stop for many will be the Trend Hall, where next month Heimtextil will exhibit four trend directions under the umbrel-la theme of “Being.”

Representatives from six studios combed the world for emerging trends and arrived at four key directions for the 2013/14 season in home tex-tiles. The studios included:

• Stijlinstituut Amsterdam (The Netherlands)

• 2G2L Fashion Design and Consulting (France)

• Dan Project (Japan)• Global Color Research (U.S.A.)• Orbitato (Brazil)• stilbüro bora.herke.palmisano (Germany)“Stijlinstituut Amsterdam and the Trend-

table designers have created an impressive work of reference that will be a first-class

Heimtextil Unveils 2013/14 Trends

The Eccentric, The Historian, The Geologist and The Inventor

SEE TRENDS PAGE 64

Anna’s Linens Turns 25

IT BEGAN 25 YEARS AGO THIS

WEEK WITH A SINGLE STORE IN EAST

LOS ANGELES. THIS MONTH, ANNA’S

LINENS CELEBRATES ITS SILVER

ANNIVERSARY AS A CHAIN WITH

MORE THAN 300 UNITS AND VERY

AMBITIOUS GROWTH PLANS.

TO MARK THE OCCASION, HTT’S

SPECIAL REPORT ON THE ANNA’S

LINENS ANNIVERSARY TAKES A

LOOK AT THE RETAILER AND ITS

FOUNDER ALAN GLADSTONE –

PAST, PRESENT AND FUTURE.

It all starts right after page 8.

htt121202_001_006_064 1 12/13/2012 4:06:53 PM

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Monday, December 17, 2012

THE BUSINESS AND FASHION NEWSPAPER OF THE HOME TEXTILES INDUSTRY | hometextilestoday.com | Vol. 33, No. 28 | $8.00

Avanti Overcomes Sandy

Inside This IssueDollar General Making Progress in Home .......................... page 2

Now Public, Restoration Hardware Ready to Expand .................................................................. page 2

Whoda Thunk ....................................................................... page 4

Presents of Mine ................................................................... page 4

BY CECILE B. CORRAL

MOONACHIE, N.J. — It’s no wonder Avanti Linens would take the time to tally the numbers.

The 43-year-old bath towel manufacturer and supplier was se-verely slammed by Hurricane Sandy, the category 2 storm that pum-meled through the Northeast on Oct. 29, and spent three weeks working to recover from the destruction at its headquarters.

Here’s a glimpse of how Avanti calculated the event, which it calls “The Flood by the numbers:”

• 2.4 million gallons of water in the building• 29,000 man-hours for clean-up and restoration• 1,050 pallets of wet towels moved out• 700,000 towels destroyed• 12,000 square feet of sheetrock replaced• 4 miles of data and electrical wiring replaced• 22 30-yard containers of trash removed• 30 tons of wet cardboard recycledDespite it all, Avanti managed to beat its own back-to-business

schedule by seven days.“We set a goal of being back in business and shipping again by

Nov. 26, which was four weeks from the day that Sandy struck and 26 days from the start of the clean-up,” noted Jeff Kaufman, pres-ident and coo. “Some thought that was optimistic, but based on the progress we made early on, certainly achievable. We beat our

SEE AVANTI PAGE 8

Gets Back to Business

Two days after Hurricane Sandy struck, the water level had gone down three feet.

The Eccentric trend exudes modern

Bohemia.

FRANKFURT, GERMANY — Heimtextil, the world’s largest home textiles trade show, is weeks away. A fi rst stop for many will be the Trend Hall, where next month Heimtextil will exhibit four trend directions under the umbrel-la theme of “Being.”

Representatives from six studios combed the world for emerging trends and arrived at four key directions for the 2013/14 season in home tex-tiles. The studios included:

• Stijlinstituut Amsterdam (The Netherlands)

• 2G2L Fashion Design and Consulting (France)

• Dan Project (Japan)• Global Color Research (U.S.A.)• Orbitato (Brazil)• stilbüro bora.herke.palmisano (Germany)“Stijlinstituut Amsterdam and the Trend-

table designers have created an impressive work of reference that will be a first-class

Heimtextil Unveils 2013/14 Trends

The Eccentric, The Historian, The Geologist and The Inventor

SEE TRENDS PAGE 64

Anna’s Linens Turns 25

IT BEGAN 25 YEARS AGO THIS

WEEK WITH A SINGLE STORE IN EAST

LOS ANGELES. THIS MONTH, ANNA’S

LINENS CELEBRATES ITS SILVER

ANNIVERSARY AS A CHAIN WITH

MORE THAN 300 UNITS AND VERY

AMBITIOUS GROWTH PLANS.

TO MARK THE OCCASION, HTT’S

SPECIAL REPORT ON THE ANNA’S

LINENS ANNIVERSARY TAKES A

LOOK AT THE RETAILER AND ITS

FOUNDER ALAN GLADSTONE –

PAST, PRESENT AND FUTURE.

It all starts right after page 8.

htt121202_001_006_064 1 12/13/2012 4:06:53 PM

2 Home Textiles Today News

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A D V E R T I S E M E N T

December 17, 2012

GOODLETTSVILLE, TENN. — Dur-ing Dollar General’s Q3 earn-ings call last week, chairman and ceo Rick Dreiling report-ed that the compa-ny has been making progress in home.

“When you look at bed and bath, we are much more rel-evant than we were a year ago,” he told

analysts. Dreiling cited better sourcing as one of the drivers

of improvement in the category.

Net income for quarter ended Nov. 2 rose 21.6% to $208 million, or earn-ings per share (“EPS”) of 62 cents. Sales increased 10.3% to $3.96 billion, with comps up 4.0%.

The company attribut-ed the growth to increases

in customer traffi c and average transaction amount. Coolers and perishable items were at-tributed for improving the cus-tomer’s average basket size from $11 per visit to $17 per visit.

Despite the positive report, Dreiling warned of consum-er uncertainty, saying that he’s “rarely seen weekly sales fl uctu-ate as they have lately.”

He sees the current con-sumer mindset as fatigued and

scared, adding, “Every time they turn on the TV there’s some guy in a suit telling them the world’s going over a fi scal cliff.”

Nevertheless, Dreiling point-ed out that Dollar General has had 23 years of same store sales growth and has “done well in good times and bad.”

Dollar General is on track to complete its goal of 625 new stores for 2012 and plans to open 635 stores in 2013. HTT

RICK DREILING

Dollar General

Dollar General Making Progress in Home

NEW YORK — Sandow Media, par-ent of Home Textiles Today, has an-nounced that the company’s Manhat-tan-based business will relocate next spring to the iconic Time-Life Build-ing at 1271 Avenue of the Americas.

Sandow will occupy the entire 17th fl oor of the building with 40,000 square feet of offi ce space. In addition to HTT, businesses moving into the building will include Gift & Decora-tive Accessories, NewBeauty, Interior Design, Worth, Fred Segal, Luxe Inte-riors + Design, Culture + Commerce and Material ConneXion. The prop-erties span digital and print media, licensing, consulting, e-commerce/retail, business information and mar-keting services.

“It was critical to fi nd a single fl oor-plate that would allow us to have all of our brands in one place,” said Adam Sandow, company chairman and ceo. The move, he added, “will position

us for our next phase of develop-ment.”

Through a series of acquisi-tions and aggressive growth, San-dow had increased its headcount in New York by more than 600% since 2010, and had been operat-ing out of two separate Manhattan offi ces.

“The time had come for us to es-tablish a global headquarters in New York City, the heart of many of the industries our businesses exist in — such as beauty, design, media, fi-nance, and fashion,” said Sandow.

The space will also include a Fred Segal concept studio, de-signed to test and mock up store designs, fixtures and merchan-dising ideas, and a state-of-the-art video studio that will enable each brand to create in-house video con-tent to be distributed through vari-ous channels. HTT

CORTE MADERA, CALIF. — As Restoration Hardware reported third quarter earnings last week, it also announced the introduc-tion of three new businesses this spring: RH Tableware, which in-cludes linens; RH Objects of Cu-riosity; and RH Fine Art.

RH Tableware and RH Ob-jects of Curiosity will launch their own catalogs, with planned in-home dates in the fi rst quar-

ter of 2013. RH Fine Art will launch with an Art Journal, a website, and an art gallery in New York during the first half of 2013.

Some items from the new nameplates will also be featured in the retailer’s exiting formats, the company said.

Restoration Hardware is cur-rently transforming its legacy mall real estate into new full line De-

sign Galleries in locations such as Boston, Indianapolis, Green-wich and Atlanta and is eyeing locations in other markets.

The company went public last month.

Net income for the third quarter ended Oct. 27 soared 147% to $2.7 million, with earn-ings per share of 7 cents.

Net revenues increased 22% on top of a 25% revenue in-

crease in the year-ago quarter. Comp sales grew 29% versus 36% comp growth in 2011. Di-rect sales increased 24% over a 17% increase the prior year.

“This performance, which is consistent with the 22% growth achieved for the year-to-date pe-riod, marks our 11th consecu-tive quarter of double-digit rev-enue growth,” said ceo Carlos Alberini. HTT

HTT Office Relocating in 2013

Now Public, Restoration Hardware Ready to Expand

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OPINIONTodaY

December 17, 2012

MY, HOW T I M E F L I ES when you’re in the textiles business. Faster than you can say, “Well, you doesn’t have to call me Mr. Johnson,”

it’s the most wonderful time of the year again, when our thoughts turn to mis-tletoe and markdowns, dolls and doorbusters, garlands and gross margins.

And as the calendar counts down from Gray Thursday to Black Friday to White-Out Wednesday, it’s time once more to offer all those in the industry who have been naughty or nice — sometimes a little bit of both — some glad tidings of the season.

This holiday tradition has been a fi xture for longer than I care to re-member, but essentially the mission has been the same: to suggest the perfect little something for the imperfect little so-and-sos in business.

Needless to say, it is all offered with tongue planted fi rmly in cheek and in the spirit of the knowledge that business is tough out there and a lot of people are trying their best not to screw things up. Which isn’t to say that’s always the end result, but hey, whoever said there was no laughing in home textiles?

Mike Duke: A renewal of his Mexican visa as obviously he hasn’t yet been able to get to the bottom of the corruption scandal the Boys from Bentonville seem to have pulled off south of the border.

Kevin Mansell: A dysfunctional Penney and a fl at Target so he can outperform the mar-ketplace … wait, you say he already has that and he’s still not very merry? Hmmmmm…

Greg Steinhafel: A dysfunctional Penney and a fl at Kohl’s so he can outperform the mar-ketplace…wait, you say he already that and he’s still not very merry? Hmmmm….

RonJon Johnson: Hoping his worst nightmare doesn’t come true that Target and Kohl’s get their acts together and make a whole lot of merry. Oy……

Norm Savaria: Ebita-la-la-la-la.Richard Baker: A nice big spoon to eat his words about Lord & Taylor Home being a bil-

lion dollar business. RonJon Johnson: Whatever size spoon Baker is getting, one size up for him when it

comes to word-eating. In fact, make it a ladle. Terry Lundgren: An apology from the rest of the retail business world for underestimat-

ing the great job he has done at Macy’s.Tom O’Connor: A postponement of his retirement party – now delayed indefi nitely.Fast Eddie Money Lampert: More assets to sell off as he conducts the longest going-out-

of-business sale in American history.RonJon Johnson: More time as he hopes he doesn’t have to conduct one of the shortest

going-out-of-business sales in American history.Steve Temares and Art Stark: A stop to their accounts at helpwanted.com as they fi nal-

ly get staffed up again in New Jersey. Boy, that was a lot more than anybody bargained for, wasn’t it?

Martha Stewart: A copy of the classic 1960’s Firesign Theater album, “How can you be in two places at once when you’re not anywhere at all?”

Alan Gladstone: A passport, perhaps?Neil Cole: An RV to get RV out of Plano.RonJon Johnson: Just a little mea culpa would be nice, wouldn’t it?And to all: Peace on Earth. HTT

Presents of Mine

APPA R E N T LY, OL D H A BI T S DI E H A R D. It was not much of a surprise that Amazon topped the list of consum-

ers’ favorite retail brands on a recent ranking by New Media Metrics, which tracks the emotional attachment Americans feel for brands.

As Forbes noted in its report on the top 16 brands last week, Amazon’s emotion-al attachment score of 45.7% was higher than any brick-and-mortar retailer.

The shocker was who also turned up on the list: JCPen-ney, Kmart and Sears. In each case, their scores with con-sumers improved over last year.

Now, JCPenney’s year-over-year increase was among the three on the chart that was a single-digit improvement. JCP’s 2012 emotional attachment score was 29.4% versus 26.8% last year. But considering what’s gone on since February, that’s remarkable.

Kmart’s score jumped a whopping 41.2% over last year, and Sears’ rose 30.4%.

For the record, here are the top 16, along with their 2012 scores:

1. Amazon: 46.6%;2. Victoria’s Secret: 46.2%;3. Wal-Mart: 43.9%;4. Target: 40.2%;5. GameStop: 38.5%;6. H&M: 38.3%;7. Best Buy: 34.2%;8. Abercrombie & Fitch: 34.1%;9. Kohl’s: 33.4%;10. Macy’s 31.9%;11. Old Navy: 30.6%;12. JCPenney: 29.4%;13. Gap: 28.1%;14. Kmart: 28.1%;15. Sears: 27.0%;16. Dick’s Sporting Goods: 26.7%.It’s an interesting blend of specialty shops and general merchants. And while

it’s tempting to consider some of them “young” formats, most of them have been around for decades. The youngest, GameStop, traces its roots to Babbages (from the ’80s) and subsequent mergers with other software companies.

So, what gives? Why are some retailers that haven’t clocked a positive quar-terly fi nancial performance in eons doing sitting on a “best of” consumer list?

I suspect it’s because the range of shopping options in the internet era has exploded — creating an atomized roster of favorite brands — while the assort-ment of bricks-and-mortar stores with a multi-state footprint has remained pret-ty much the same.

The ranking also suggests even damaged brands retain equity. The trick, of course, is to leverage it profi tably. HTT

JenniferMarks

EDITOR-IN-CHIEF

Whoda Thunk?

Warren Shoulberg

PUBLISHER/EDITORIAL DIRECTOR

HTT121203_004 4 12/13/2012 3:45:20 PM

Textile passion meets profession

Explore innovations from all over the world. Experience how the year’s hottest trend – Being, the search for authentic surroundings – is pushing the industry forward. And find out how the future is becoming the present.

For more information and tickets at an advance sale price visit: [email protected]. 770.984.8016

January 9 – 12, 2013 Frankfurt, Germany

Untitled-28 1 11/13/12 1:02:43 PM

6 Home Textiles Today News > hometextilestoday.com

Lord & Taylor To Shift Home Effort Online

After opening a pair home stores in New Jersey last year, Lord & Taylor has informed vendors it will

wind down the operations and focus its home mer-chandising efforts on ecommerce.

“We wish to inform you that as we work through the new business model, we will stop the creation of all new purchase orders for these stores immediately,” said the letter, which was dated Dec. 7 and authored by Evelyn Reynolds, senior vp/gmm for home fashions, and Jared Maklin, vp/dmm for home fashions.

The bricks-and-mortar home stores will close in early 2013, according to the letter. The stores, which were characterized as a test when they opened in fall 2011, are located in Paramus and Shrewsbury.

QVC To Buy Social Marketing Site

Television and ecommerce retailer QVC has signed an agreement to acquire Oodle Inc., which uses

Facebook and Twitter to reinvent online classifi ed advertising.

Oodle operates a network of online marketplaces with more than 15 million monthly unique users who buy, sell and trade on the Oodle Marketplace and the Marketplace on Facebook .

The deal, which covers most of Oodle’s assets, is expected to close by Dec. 31. Terms were not disclosed.

Wayfair.com Raises $36 Million to Grow Joss & Main

Wayfair.com announced it has secured $36.3 mil-lion in new equity fi nancing to fuel the growth

of Joss & Main, the company’s private sale site for the home. Investors include Battery Ventures, Great Hill Partners, HarbourVest Partners and Spark Capital.Joss & Main has acquired nearly three million mem-bers and is operating at a $100 million annual reve-nue run-rate to become the fastest growing fl ash sale site for home goods and furnishings, according to a company press release.

“Joss & Main has gained tremendous traction over a very short period of time through its unique approach to curated e-commerce,” said Niraj Shah, CEO and co-founder of Wayfair.com. “The site hit its highest sales day on Cyber Monday by a factor of over 50% and sales are up 10-fold since last year.”

Williams-Sonoma Opens in Kuwait

Williams-Sonoma opened a store in Kuwait, the nameplate’s fi rst store outside North America,

last month. The 11,000-square-foot store is located at The Avenues in Kuwait, one of the Middle East’s larg-est shopping venues, and is in partnership with inter-national retail franchise operator M.H. Alshaya.

In 2010, M.H. Alshaya partnered with Williams-Sonoma Inc. to launch the fi rst franchise operation of Pottery Barn and Pottery Barn Kids stores in the Mid-dle East. This relationship has extended to include the Williams-Sonoma brand, which will launch for the fi rst time outside North America, in Kuwait.

RetailBriefs

NEW DELHI — The 35th Indian Handicrafts & Gifts Fair is set to take place Feb. 8-11 at the India Expo Centre & Mart in New Delhi.

The IHGF has been held twice a year for the last 17 years. The 35th edition of the IHGF will feature about 2,500 compa-nies exhibiting products such as home accents, housewares, fur-nishings, fl oor coverings, gifts, jewelry and fashion accessories, among other categories.

These products are largely produced from the raw material base of wood, metal, leather, natural fiber, artificial fibers, wool, silk, coir, hemp, jute, ani-mal bones, lacquer, stones etc.

According to a press release from the show organizers, Indian products are known for their exclusivity in terms of its work-

manship, craftsmanship, colors, fi nish, quality and price.

India has abundance of raw materials, skilled manpower, inherited designs, techniques and skills, the release continues. The products are made using natural materials and are pro-moted as eco-friendly and not made using chemicals.

The last edition of the show was held in October and was visited by 5,500 foreign buy-ers representing some of the world’s major buying houses and retail chains. Countries represented by buyers were the United States, UK, Japan, Ger-many, France, Australia, Spain, Greece, It aly, Hong Kong, China, Turkey, Hungry, Oman, Bulgaria, Thailand, Singapore, Lebanon, Israel, Portugal, Swe-den, Mexico, Denmark, Bel-

gium, Canada, Switzerland, Tai-wan, UAE, Bangladesh, Nepal, Netherlands, Saudi Arabia, South Africa and many other countries. A total of US $ 200 million worth of business was placed at the show.

Indian handcrafted exports total more than U.S. $2.3 bil-lion annually, the press release stated.

The IHGF is organiszd by the Export Promotion Council for Handicrafts, the trade body with a membership of 7,000 handicrafts and gifts exporters from all over India. The Coun-cil works under the aegis of the Ministry of Textiles and Govern-ment of India.

For more information, call the show help line at +91-11-26130692 or visit www.epch.in. HTT

Indian Handicrafts & Gifts Fair Scheduled for February

NEW YORK — Fashion Institute of Technology in tandem with Setlog Corp., a state-of-the-art supply chain management, information technology and system implementation service company, are presenting a spe-cial seminar on global sourcing in mid January for industry pro-fessionals.

Titled “Global Sourcing -

Critical Solutions for an Opti-mized Process,” the seminar is scheduled Jan. 15 from 1 to 4:30 p.m. and will take place at FIT’s campus here by its Center for Professional Studies. Topics to be discussed will range from product development to product delivery and are aimed at helping attend-ees “gain better bottom line con-trol and performance.”

Speakers include top-level executives from: Escada Group, Gerson & Gerson, Natifi c, Wal-ter Wilhelm Associates, Gerber/Yunique, and Setlog.

The Escada Group’s direc-tor of operations, Jan Hilger, will explain why optimizing every pro-cess is critical to success not just in sourcing but in every aspect of sales and distribution. HTT

FIT to Host Global Sourcing Seminar In January

NEW YORK — Emerald. The green hue is what color authority Pantone has named as its offi cial 2013 Color of the Year.

Every December, Pantone identifies a shade it believes will be “the breakthrough color of the follow-ing year” after sifting through trends around the world.

“Emerald is the color of balance and harmony, enhancing one’s sense of well-being and inspiring insight and clarity,” Pantone said. HTT

December 17, 2012

Pantone’s 2013 Color of the Year:

Emerald

htt121202_006 6 12/12/2012 11:40:20 AM

Untitled-57 1 12/6/12 8:52:16 AM

8 Home Textiles Today NewsDecember 17, 2012

goal by a week. We were back processing orders on Monday, Nov. 19, thanks to the hard work and incredible dedication of the Avanti team.”

On the day af ter Sandy struck, Arthur Tauber, chairman and ceo, and his son, Michael, president of sales, reached Avan-ti’s offi ces and warehouse com-plex here and waded through three feet of water in the offi c-es to assess the damage.

What they found “was be-yond description,” Tauber said. “Water was everywhere. Files were fl oating. Chairs were over-turned. Files were ruined.”

And that was just the offi ce.In the adjacent factory, the

fi rst area they encountered was shipping, “where $1 million in ready-to-ship product, which was arranged neatly on skids on the previous Friday, was a jumbled mess of collapsed boxes, soaked through and ruined. The scene was the same throughout the building. Most of the 150,000 square feet wasn’t passable — boxes and wet towels were ev-erywhere,” Tauber continued.

Also, the sewing and embroi-dery machines’ motors and cir-cuit boards were submerged, forklifts and sealing machines were under water. Even the company car — a vintage 1963 Avanti — was flooded and de-

stroyed.“It was hard to see how it

was going to get back to being a functioning business,” said Kaufman.

The cleanup effort com-menced the next day, Nov. 1. With the help of 20 employees who showed up at the offi ce that day, part of the team began by clearing out the shipping area.

The company ’s mant ra through it all became, “One towel, one box at a time”.

“We started by taking the wet — now very heavy — towels out of the wet cardboard and putting them onto pallets,” explained Kaufman. “Before the end of the fi rst day, we had made substantial progress in getting this one small area cleaned up and, if nothing else, showed that with a lot of hard work, we were going to be OK.”

By the next day, Avanti’s full Moonachie-based staff — total-ing 186 employees — was on board, “and the clean-up moved to full-swing mode.”

The team worked through that weekend and had the build-ing substantially cleaned up by the following Friday — “tre-

mendous progress in 10 days,” Kaufman noted.

At the same time, the com-pany was also working to get its sewing and embroidery ma-chines back up and running as well as its other equipment re-

placed or repaired.Avanti’s information system

was restored by Nov. 14, and in-ternet access was working again on Nov. 16.

As of press time, Avanti still does not have a fully functioning

phone system due to external is-sues related to Verizon’s equip-ment in the area.

But as Kaufman remarked, “based on where we were a month ago, we’re very happy to be where we are today.” HTT

Avanti Gets Back to

BusinessAVANTI FROM PAGE 1

Above: The company car, a vintage Avanti, dries off after having been under water. The trailer behind it was used as temporary office space during the cleanup. At left: One of many fish found alive after the storm. Others were swimming in the loading dock area. Below left: Avanti staff worked for many consecutive days to clear out wet and damaged towels from soaked boxes. Below right: The day after the storm — cartons of product, wet and collapsed throughout.

htt121202_001_006_064 8 12/11/2012 3:13:22 PM

Celebrating

25Years

annas insert for pdf.indd A1 12/11/12 9:05 PM

A2 Anna’s Linens Celebrating 25 Years > hometextilestoday.com

Perhaps no other type of business is so

closely associated with the name of its

founder as is retailing.

From John Wanamaker and R.H. Macy through

Sears and Roebuck onto Walmart and even Price

Club, so many retail companies have been given

the family name and forever imbedded in the

American consciousness.

But hardly anybody had the chutzpah to name

their company after their mother.

Chutzpah – the loose translations would include guts, overwhelming confi dence

and perhaps more than a touch of bravado – has defi ned Anna’s Linen and its

founder Alan Gladstone for the 25 years since its founding.

Chutzpah: From the day it opened its fi rst store in an uncharacteristic driving

rain storm in Southern California to its build-up throughout the state and into

the southern tier of the country; from the business speed bump it hit as it went

through the growing pains that impact many entrepreneurial start-ups to the

resulting ramp-up in fi nancing and management that came out of that period; and

from the continued eastward migration of its stores to the twin score of passing

the 300-unit mark and moving off the continental United States to Puerto Rico in

2012.

Th at chutzpah comes straight from the top and runs right through the entire orga-

nization. To be with Alan Gladstone is to see a strong, confi dent and commanding

fi gure who knows exactly what he wants and how to get it.

Th at 25-year odyssey is celebrated in this special commemorative section from

Home Textiles Today, profi ling Anna’s and its people, from its merchandising to its

suppliers to its commitment to St. Judes. (A portion of the gross proceeds from this

HTT Report is being donated to the medical center.)

A quarter of a century is a long time in business. Yet one gets the feeling Anna’s

Linen is just getting started.

Th ey call that chutzpah too.

Warren Shoulberg

Celebrating 25 Years

Table of ContentsEditors Note .........................................A2Glad for the Gladstones

The Man ..............................................A4Alan Gladstone

The Prodigal Son ..................................A6Scott Gladstone

The Merchant Daughter .......................A8Carie Doll

The Money Watcher ..........................A12Neil Wantanabe

The People Person .............................A14Abby Arenioff

Administering Anna’s .........................A14Mike Harnetiaux

The Marketing Man ..........................A16Steve Strickland

Smooth Operator ...............................A16Tony Sullivan

The Buying Bunch .............................A18The Anna’s Merchant Team

THE Anna ..........................................A20Ann Gladstone

Yesterday, Today & Tomorrow .............A22Through The Years, Through the Store

From the Supply Side .........................A28The Vendor View

The St. Jude Connection ....................A46Charity Starts in Home

Th is Anna’s Linen 25th Anniversary Special Report was written by Home Textiles Today Editor-in-

Chief Jennifer Marks and designed by Bennett Gewirtz with contributions from Cecile Corral and Julie

Murphy. New photography for the report is from Tim Long.

Celebrating

25Years

Glad for the Gladstones


Untitled-50 1Untitled-50 1 11/21/12 8:42:13 AM11/21/12 8:42:13 AM


I n a world where Th e Merchant Prince

has been supplanted by the spread-

sheet analyst, Alan Gladstone remains

a genuine example of the original, with a

love of product and a nose for the oppor-

tunistic deal.

A career retailer, he had long wanted to

open his own store – and worried if he

didn’t do so by the age of 40 it would be

too late.

Th en opportunity knocked.

In 1986, Gemco (a membership depart-

ment store) and Zody’s (a discount chain)

went out of business. Both were based in

Southern California and both were well-

known to Gladstone, who worked for the

company that operated the leased linens

department in Zody’s.

“I knew Zody’s like the back of my hand,

and Gemco was a competitor. I knew the

customers, and I knew how to serve those

customers,” he said.

At the time, he noted, there were 25

home specialty chains across the coun-

try. Linens ’N Th ings was larger than Bed

Bath & Beyond. And Mervyn’s was the

hottest retail concept of the day.

“I knew they were all going after the

more affl uent customer. I knew there was

a void,” said Gladstone.

After talking over the risks with his wife

– “because we had to get that check in

every week and we had two kids” – it took

about eight months from the time Glad-

stone decided to open the store until the

day he did.

Th e fi rst Anna’s Linens store opened on

Dec. 15, 1987, in the East Los Angeles

community of Baldwin Park. Th e store

was supposed to open ahead of Th anks-

Alan GladstoneFounder and CEOJoined Anna’s: Day 1

Th e Man

“I knew the customers, and I knew how to serve

those customers.”

Continued on page 6


Untitled-39 1 11/16/12 11:35:56 AM


giving, but got held up by permits. Still,

Anna’s was planting its fl ag during the

critical holiday shopping season.

“In sunny Southern California, we had a

monsoon on grand opening day. Th e rain

was coming in sideways,” said Gladstone.

“It was really just vendors and the family

in the store. I said, ‘What kind of a sign

is this?’”

Not a sign at all, as it turned out.

By the next day, the rain stopped and

Anna’s got the kind of reception it had

hoped for. Gladstone planned to open 10

stores in Anna’s fi rst year of business and

ended up opening 12. Once again, his eye

for the deal worked to Anna’s advantage.

“I was going into the shopping centers

where Zody’s and Gemco had had their

stores, but not into their actual spaces. I

knew where the customers were.”

It wouldn’t be the last time Anna’s

pounced on close-out real estate. In 2003,

Anna’s snapped up 11 of 17 Strouds out-

let stores after the company closed its

doors. Over the next two years, the liqui-

dation of Plej’s Linens Supermarket and

Factory 2 U gave Anna’s the opportunity

to pick up sites that would mark its en-

try into the Miami, North Carolina and

South Carolina markets.

“When we’ve grown by acquisition, the

most important thing was we retained

the people,” said Gladstone. “Th ey know

their customers; they know their stores.

All they had to learn was the Anna’s way.”

Anna’s now operates in 23 states as well

as Washington, DC and Puerto Rico.

Gladstone still anticipates a public off er-

ing “at some point in the not too distant

future.” And, always on the lookout for

the next opportunity, he doesn’t rule out

international expansion.

“We get calls all the time about enter-

ing Mexico, China, Europe, Canada,” he

said. “So we are defi nitely going to leave

the border. As soon as we get the supply

chain side of it right.”

Opening day of Anna’s

store #1: “We had a monsoon,

the rain was coming in sideways.

I said, ‘What kind

of a sign is this?’”

Continued from page 4

“I knew they were all going after the more affluent customer,” says Gladstone of the 25 home specialty chains in existence when he started Anna’s. “I knew there was a void.”


HappyAnniversary

ANNA’S LINENS25 th

www.welspun.com

From Our Family to Yours,Congratulations on a Milestone of Heritage

Your Hard Work Built Anna’s Dream into a Reality

Untitled-231 1 10/17/12 4:42:42 PM


Scott Gladstone didn’t set out for a

life in retail. In fact, he started his

career at Bear Sterns and went on

to become an executive at Sparco USA, a

manufacturer of automotive accessories

and safety equipment.

But in 2005, Anna’s Linens appeared

to be at an infl ection point: In need

of investment and organization that

would set the foundation to scale up.

And Gladstone saw an opportunity

to bring what he’d learned outside the

family business into the fold.

“We realized the need to look at every

business process across every aspect of

the company,” he said.

Th at included automating many pro-

cesses that were still being conducted

manually, streamlining the supply chain,

instituting best practices, investing in

technology and recruiting leaders from

best-in-class companies.

“We had about 130 stores and it was a

great opportunity to partner in the family

business and help set the course for the

future,” said Gladstone.

His areas of responsibility include supply

chain, store operations, real estate and IT.

When he joined Anna’s, the company

ran distribution through nine third-par-

ty facilities with no visibility on where

the product might be. Th at’s been pared

down to three, with full visibility at every

point in the supply chain, said Gladstone.

Th e company didn’t have the ability fi ve

years ago to take product directly from

off shore manufacturers. Today direct-

from-off shore accounts for about 15% of

receipts.

“We can replenish much closer to de-

mand,” he said. “And we reduced the

amount of purchase orders by millions.”

In site selection, Anna’s has grown more

granular in identifying potential markets,

marrying psychographics along with de-

mographics.

“Real estate is a blend of art and science,”

said Gladstone. “You have to have an in-

tuitive knowledge of where you need to

be and where your customer is. It’s not

just age or skin color or income.”

Th e original yardstick for Anna’s neigh-

borhoods measured the proportion of

urban, minority and/or working class

consumers in an area. Now, Anna’s recog-

nizes that “not every 50-year-old woman

who lives on the same street shops in the

same store.”

Th ere’s still more work to be done, espe-

cially investments in merchandising sys-

tems and the rollout next summer of a

new ecommerce platform.

“It’s not just about growth,” said Glad-

stone. “It’s about productivity.”

President and Chief Operating Offi cerJoined Anna’s: 2005

Scott Gladstone: Th e Prodigal Son

“It was a great opportunity to partner in the

family business and help set

the course for the future.”


Untitled-51 1 11/21/12 1:17:17 PM


Carie Doll

a t tended

the grand

opening of the fi rst An-

na’s store 25 years ago –

but being just a tot at the time she

wasn’t in a position to off er much help.

Th ings have come a long way since then.

Although she grew up surrounded by the

family business, the daughter of company

founder Alan Gladstone headed east to a

job at Arthur Anderson and quickly fell

in love with Washington, DC. Eventual-

ly, though, she was ready to return home

– but on her own terms.

“I wanted her to come to the offi ce. She

didn’t want any part of it,” recalled Glad-

stone. “Turned out to be the greatest

thing she could have done.”

As it happened, Anna’s Linens was about

to move into the San Francisco market.

Doll wanted to be on the ground, work-

ing the store, and interacting with cus-

tomers. And that’s exactly what she did,

staying in the market for nearly six years

and helping the San Francisco operation

expand to 12 stores by the time she fi -

nally headed back to Southern California

for a senior merchandising job at head-

quarters.

“Th e whole team is always thinking about

the stores,” said Doll, who is a big part

of keeping her colleagues focused on the

core of the business.

Anna’s stores have autonomy when it

comes to displays, end caps and color se-

lection. At the company’s annual man-

agers meeting – which doubles as a ven-

dor fair – store leaders walk through the

merchandise and let headquarters buyers

know what they think will work best for

their individual stores.

“We’re very quick to market on prod-

uct we know will sell,” said Gladstone.

“Th ere’s a lot of great product out there.”

Feedback from the fi eld isn’t limited to

once a year, however. “It’s a huge deal

with the CEO taking calls from the dis-

trict manager,” said Doll. “Th at’s the kind

of culture Anna’s has. It’s always about

the stores.”

And at the store level, it’s always about

the customers. Th e Anna’s store greeting

is far more proactive than the industry

standard of “Can I help you?”

When one enters an Anna’s store, the

nearest associate will step forward with:

“Welcome to Anna’s. What room can I

help you decorate today?”

Executive VP and Chief Merchandising Offi cerJoined Anna’s: 1996

Carie Doll: Th e Merchant Daughter

“That’s the kind of culture

Anna’s has. It’s always

about the stores.”


Happy 25th Anniversary to

ANNA’S LINENSfrom your friends at

Kenney Manufacturing

HTT_AL Kenney tab.indd 1HTT_AL Kenney tab.indd 1 11/26/12 2:14:51 PM11/26/12 2:14:51 PM


Neil Wantanabe had a solid back-

ground in retail before Anna’s

Linens. He began his career at

Montgomery Ward and moved on to a

series of big-name chains, including KB

Toys, PetSmart, Pick & Save and Moth-

erhood Maternity.

He joined Anna’s when it began aggres-

sively going after big-name talent to help

it ramp up its infrastructure.

“In the last fi ve years, we’re not quite the

same company,” said Wantanabe. “I think

Anna’s brings the best of what’s been

tried in other concepts while also avoid-

ing the pitfalls.

“Out of all retailers I have worked for,

this is like a speed boat,” he said. “Alan

has a highly developed sense of urgency.”

Case in point: the economic crisis of

2008 – and the subsequent meltdown in

the retail channel.

Anna’s execs hashed out a course of ac-

tion in short order, including downsizing

stores and reining in capital expenditure

plans.

“Th e plan was discussed on a Saturday,

and from start to fi nish was implement-

ed in three months,” said Wantanabe.

“Th ere’s no ambiguity about what we’re

doing. If something isn’t working, we

don’t have to wait to act.”

Anna’s does, of course, have the luxury

of being a private company. It doesn’t

have to justify its long-term strategy to a

group of investors anxious for short-term

earnings. But Wantanabe said it holds it-

self to more rigorous standards.

Deloitte audits Anna’s as though it were

a public company, he said, adding, “Our

board members are ‘A’ players and keep

us on our toes.”

Anna’s is well capitalized with no debt,

he said. Th e company is internally funded

through cash fl ow.

Th e company, which ranks No. 14 on

HTT”s Top Retailers Report with $405

million in home textiles sales is on track

to do approximately $500 in total sales in

2013.

“We have very high governance at An-

na’s. We have all the disciplines. When

and if there does come a day [for a public

off ering], we’ll be ready.”

Senior VP, Chief Financial Offi cerJoined Anna’s: 2006

Neil WantanabeTh e Money Watcher

“I think Anna’s brings the best of what’s been tried in other concepts while also avoiding

the pitfalls.”


Mohawk Home salutes a quarter century of your accomplishments and continued support to St. Jude Children’s Research Hospital. As a result of your generous contributions throughout the years,

Anna’s Linens has helped countless children celebrate another day and a brighter future.

Your caring and compassion speaks volumes about your employees and your company.

ANNA’S LINENS

Best wishes from your friends at

Everyday is a celebration.

Untitled-52 1 11/26/12 8:45:09 AM


When Abby Arenioff was

invited to join Anna’s

Linens seven years ago,

she declined the off er.

Th at wasn’t the answer Alan

Gladstone expected.

“He said, ‘Nobody really says no

to me,’” Arenioff recalled with a

laugh.

She went to Sony Pictures in-

stead. But she still had retailing

in her bones, having headed hu-

man resources at Pacifi c Sunwear

and the Disney Store.

Anna’s rounded back on her fi ve

years later, and this time Arenioff

said yes

“Th e company had so evolved,”

she said. “It was a really transfor-

mative diff erence.”

Now Arenioff is tasked with fur-

thering that evolution – while

still preserving the family-owned

company’s core values.

“Th e thing about Anna’s that is so

unusual is that it’s a family busi-

ness, but its goal is to be best in

class,” she said.

With about 3,200 employees and

growing, the HR operation puts

a premium on communication,

evaluation and accountability.

She called the monthly store

manager meetings “a good cre-

ative environment where we can

surface ideas.” And garnering on

the ground store feedback is a

priority.

Th ere’s the annual store managers

meeting with senior executives,

which includes training sessions

and exercises the participants car-

ry back to their own stores. Th ere’s

Mike Harnetiaux hails

from the in-law side of

the family business. Just

the same, he watched Anna’s Lin-

ens grow from a seat at the table

– literally.

“I had a lot of faith in Alan, so

I kind of followed Anna’s all

along,” said Harnetiaux, whose

sister Marilyn is married to

Anna’s founder and CEO Alan

Gladstone.

“At Sunday dinners we would

talk, and he would share the ups

and downs. I never really thought

I’d come to work for the compa-

ny,” Harnetiaux added.

Ann Gladstone, the family matri-

arch and inspiration for the store,

was also a big factor.

“Probably the greatest lady I ever

met,” he said.

While Gladstone was building a

nascent retail chain, Harnetiaux

was busy as chief fi nancial offi cer

for a liquor bottler that primar-

ily served chain stores. So he was

involved in retailing, even if in a

diff erent segment.

“It was 14 years ago that Alan

said, ‘You really should come over

and help me out.’ Th ey had 39

stores.”

Harnetiaux hewed his own course

until 2005, the year Anna’s decid-

ed to step up its game, rev up its

investments and begin laying the

foundation for serious growth.

Anna’s was on the move. In the

previous two years or so, it had

acquired locations from the liq-

uidated Plej’s Linens Superstore,

Strouds and Factory 2 U retail

chains.

Senior VP, Human ResourcesJoined Anna’s: 2010

Senior VP, Corporate AdministrationJoined Anna’s: 2005

Abby Arenioff Th e People Person

Mike HarnetiauxAdministering Anna’s

“We want employees

to look around and say: ‘This is still the

best place to be.’”

“It was 14 years ago that Alan said, ‘You really should come over

and help me out.’”Continued on page 44

Continued on page 44


Untitled-51 1Untitled-51 1 11/21/12 1:17:33 PM11/21/12 1:17:33 PM


After several years in mar-

keting at Brookstone,

WetSeal and Th e Limited,

Steve Strickland was looking to

get back to Southern California.

Th e headhunter he was working

with had only one position that

fi t the bill.

“I’d never heard of Anna’s. And

the recruiter Alan was using was

recruiting me for another job,”

Strickland recalled. “But she

thought our personalities might

match up.”

Th ey did, and Strickland is now

leading a marketing eff ort that a

few short years ago would have

seemed out of sync for Anna’s

customer base: One involving

ecommerce, social media out-

reach and broadcast television

advertising.

“Facebook is no longer where

kids are going. It’s been hijacked

by their parent and grandparents,”

said Strickland. “It’s very produc-

tive for us.”

One of the linchpins of the com-

pany’s marketing outreach is the

“Fan of Anna’s” loyalty program,

which launched in February 2011

and racked up 2.6 million mem-

bers in its fi rst year. It has since

shot past the 4.5 million-member

mark.

“We only sign people up with a

transaction to keep it clean,” said

Strickland.

Anna’s uses the program to track

what customers buy and how they

shop the store and it feeds infor-

mation back to the merchandis-

After 20 years at Foot Lock-

er, where he had become

vice president, and more

importantly, after two decades in

Connecticut – “which felt like Si-

beria” – West Coast native Tony

Sullivan was ready to move back

home.

His desire to relocate dovetailed

with Anna’s quest to begin re-

cruiting executive talent from

big retail fi rms, a moment in the

company’s trajectory that is con-

sidered a turning point.

“It was an opportunity to really to

get into a company and help build

it from ground up,” said Sullivan.

Th ere was also something unique

in the Anna’s culture. “You fi nd

another company where the CEO

will take a call from a manger in

the store, where the CEO knows

the district managers by name.”

Sullivan’s brief has been to harness

the human touch aspects of An-

na’s in a measurable and scalable

way without diluting the cultural

touchstones of the organization.

One of those initiatives includes

Count Wise, a system to monitor

traffi c and measure conversions.

Th e conversion rate was 25% at

launch. Today it’s running at 40%.

Anna’s also rolled out a training

video to help associates on the

ground monitor customer service.

“It shows them what we’re look-

ing for when it comes to customer

service standards,” said Sullivan.

About a year ago, Anna’s began

a program it calls “Experience

Shops,” an updated version of

the traditional mystery shopper

program that measures not only

customer service but also shop-

VP, MarketingJoined Anna’s: 2009

VP , OperationsJoined Anna’s: 2006

Steve StricklandTh e Marketing Man

Tony SullivanSmooth Operator

“It’s probably the fastest, most

diffi cult job launch I’ve ever done.” “It was an

opportunity to really

to get into a company and help

build it from ground up.”




MAY THIS SILVER ANNIVERSARYBE A GOLDEN MOMENT FOR ANNA’S LINENS.

HTT_AL Zorlu tab.indd 1HTT_AL Zorlu tab.indd 1 11/20/12 10:09:08 AM11/20/12 10:09:08 AM


Where were you before Anna’s?

Springs Industries and Milliken

What does the Anna’s custom-

er respond to in your buying

area? What’s unique about the

Anna’s shopper in your buying

area?

Th e Anna’s customer responds

to great values at a great price.


Intercontinental Art, Stroud’s,

Th ree D Bed & Bath, Th e Home

Front (working with Alan as a re-

ceptionist, then Assistant Buyer)

What does the Anna’s customer

respond to in your buying area?

What’s unique about the Anna’s

shopper in your buying area?

While most retailers sell many

types of solid bath accessories

and shower curtains, the Anna’s

customer likes prints and fashion

patterns. Th is applies not only to

the bath coordinates and shower

curtains but the basic items like

bath caddies and even shower

liners. Just because our customer

does not have a lot of money does

not mean that she does not have

style, and Anna’s Linens provides

her fashion at aff ordable prices.

What’s some of the most use-

ful feedback you’ve gotten from

store sales people?

Our store personnel are our cus-

tomers and they are selling prod-

uct and talking to our customers

every day, so their opinions are

important. One of my top selling

bath coordinates was selected be-

John Partington Peggie Galvin

Senior Buyer, Sheets and Basic BeddingWith Anna’s: 7 ½ years

Senior Buyer, Bath DepartmentWith Anna’s: 9 Years


Shopko Stores, Inc.

What does the Anna’s custom-

er respond to in your buying

area? What’s unique about the

Anna’s shopper in your buying

area?

Anna’s has an extremely unique

and loyal customer base that re-

sponds very well to products that

off er a solution – whether it’s en-

ergy effi cient panels or furniture

protectors for the sofa. Th ey also

love us for giving them fashion


Anna’s Linens was my fi rst job.

What does the Anna’s customer

respond to in your buying area?

Our customers respond to price.

What’s unique about the Anna’s

shopper in your buying area?

I think our customer is very price

driven and love the styles we off er.



store sales people?

Our store associates know their

customers well. Th e most useful

Jennifer Knapp Maggie Negrete

Senior Buyer, Window & DecorativeAccessoriesWith Anna’s: 10 months

Buyer, Fashion beddingWith Anna’s: 20 years

The Buying Bunch: Front row from left, Katie Paterson, Peggie Galvin, Jennifer Knapp, Susan Wels, Michele Hernandez, Sharon Magro. Back row from left: Carie Doll, Orlando Aguilar,

Alan Gladstone, John Hardington and Maggie Negrete.

Th e Buying Bunch






Untitled-53 1 11/27/12 8:55:14 AM


That was the name Ann Glad-

stone wore on her ID tag at the

many, many store openings and

training sessions she attended over the

span of 15 years.

Th e mother of Anna’s Linens founder

and CEO Alan Gladstone – and grand-

mother to president and chief operating

offi cer Scott Gladstone and EVP and

chief merchandising offi cer Carie Doll

– she was both the inspiration for the

Anna’s concept and the family’s root in

retailing.

Ironically, her career began with a little

white lie. Born in Brooklyn, NY, she got

her fi rst job in retail at age 17, during the

Depression, after telling the personnel

manager at Hearns Department Store

she had retail experience. She didn’t. By

the time her manager learned the truth,

he was so impressed with her sales-

manship he would not allow the

store to fi re her.

Marriage and motherhood brought

a halt to her career, but only tem-

porarily. After raising three chil-

dren, she returned to retail, working

her way up to department manager

of several diff erent department stores.

Her husband, the late Frank Glad-

stone, was also in retail, and for a

time they traveled around the

country together running large retail liq-

uidations.

At Anna’s Linens, she was a fi xture on

grand opening day until just weeks before

her death in June of 2002 at age 85. And

she was not there as window dressing.

Before the doors opened, she visited with

staff members one by one, welcoming

them to the Anna’s family and encourag-

ing them to give their all to help shop-

pers. Th en she’d move outside and work

the line of expectant customers, thanking

them for coming and handing out Anna’s

fl iers along the way. Once the ribbon had

been cut and the crowd poured into the

store, she swung into action in the aisles,

helping shoppers fi nd what they were

looking for and steering them toward

specials.

Between grand openings, she took an

active role in customer service training

programs and random store visits. It was

often said she could turn a $5 sale into

a $500 sale better than anyone. It was

also said the staff at Anna’s headquarters

could tell when she had visited a particu-

lar store – because the day’s receipts shot

up.

THE Anna may be gone, but her legacy

lives on as the best salesperson the com-

pany ever had.

THE Anna

The staff at headquarters

could tell when Anna had visited

a particular store – because

the day’s receipts shot up.

annas insert for pdf.indd A20annas insert for pdf.indd A20 12/11/12 7:00 PM12/11/12 7:00 PM

Untitled-52 1 11/26/12 8:44:46 AM


12/87 Anna’s Linen store #1 opens in Bald-win Park area in East Los Angeles - in driving rain storm.

9/96 Carie Doll joins Anna’s 12/99

First store outside California opens, in Houston.

3/00 Anna’s launches its website.

6/00 Anna’s opens in Las Vegas

6/02 Ann Gladstone - THE Anna - passes away

Anna’s: Th rough the Store

With more than 300 stores in

23 states, a district and a ter-

ritory, there is no such thing

as a typical Anna’s Linen location.

You’ll fi nd them in strip centers, en-

closed malls and as free-standing units,

generally in the range of about 8,000 to

10,000 square feet and all with the big

bold Anna’s nameplate out front.

For this 25th anniversary report, Home

Textiles Today visited the Santa Ana,

CA location, near corporate head-

quarters in Orange County. Th e store

features many of the signatures of any

Anna’s: A prominent window cover-

ings area near the front of the store;

bedding sets, ensembles and coordi-

nates stacked high and set off with end

cap mini-displays; a large off ering of

decorative pillows often in bright col-

ors and bold patterns; utility bedding

racks; and a growing assortment of

hard goods, including tabletop, kitch-

enware and cookware.

Signage is a key component of the An-

na’s merchandising strategy and you’ll

fi nd it throughout the store, typically

in the two languages – English and

Spanish – that defi ne the Anna’s de-

mographic. Larger signs signify depart-

ments, promotions and events. Smaller

ones off er product information, high-

light the Friend of Anna’s program and

often promote the store’s support of St.

Judes hospital charity work.

Th is tour of Anna’s, as well as a look at

Anna’s through the years, continues on

pages 24 and 26.

Anna’s: Th rough the Years

Display tables (top) are brought out for sale events and often feature core bed and bath categories; signage (left) is bi-lingual reflecting the store’s demographics; and what would Anna’s dec pillow and bed rest department be without colorful animal print patterns?


SUN-YIN U.S.A. INC.SY

Untitled-30 1 11/13/12 3:44:53 PM


2003 Anna’s takes over 11 closed Strouds locations

6/03 100th Anna’s store opens

2004Starts buying leases of closed Plej’s and Factory 2 U locations, entering Southeast

5/04First store in Florida opens

2005Scott Gladstone joins Anna’s

2005Secures new fi nancing, setting stage for future expansion

Merchandising presentation is consistent throughout the store: Clockwise from upper left, windows are featured prominently; color is key at Anna’s; the store is increasing the use of its own private label on merchandise; rugs are smartly and neatly corralled in this display; mini-beds show off bedding ensembles and coordinates; and decorative accessories are increasingly being added into the Anna’s mix.


Canjoy Linens Inc.

Congratulations

on your 25th Anniversary!

HTT_AL Canjoy tab.indd 1HTT_AL Canjoy tab.indd 1 11/21/12 3:02:53 PM11/21/12 3:02:53 PM


2006After deciding not to go public, Anna’s begins aggressive campaign to bring in executives and managers from larger Fortune 500 companies.

3/07First Vendor Summit held

9/11Latin TV star Domenica Brazzi signed for fi rst Anna’s proprietary licensed collection.

2012Anna’s opens 300th store

9/12First store outside continental US opens, in Puerto Rico

More merchandising magic: Clockwise from upper left, tabletop is being added into more

stores; mini-beds are accessorized for add-on sales; white goods as far as the eye can see; displays are racked high for increased productivity and drama; window products

are extensively signed to help shoppers; and mini displays on top of fixtures call attention

to the stock below.


Happy Birthday Anna’s Linens,25 and Fabulous!

A quarter century of Anna’s Linens... Congratulations to Alan, Scott, Carrie and the extended Anna’s family!

As a past Bath Vendor of the Year, we are proud and grateful to have shared in your success story.

From our family to yours... best wishes for continued growth and prosperity!

2100 Section Road Cincinnati, Ohio 45237-3510 513 641 1400 Fax 513 242 2805

Untitled-62 1 12/11/12 10:18:14 AM


From Th e Supply Side

Joining in on the

celebration of Anna’s Linens’ 25th year in business is

the specialty chain’s broad —and in the

case of many — longtime and loyal vendor

base in home textiles.

Loren Sweet, PresidentBrentwood Originals

Brentwood was

one of the original

suppliers to Anna’s

when they opened.

I fi rst met with

Alan myself in 1982

when he was at

Home Front, then

part of US Shoe.

Anna’s is unique in

a variety of ways.

1) Th ey have a unique demographic ver-

sus any of their direct competition.

2) Owner run, they are entrepreneurial.

3) Very dedicated and loyal store staff .

4) Unique blend of value priced core

product supplemented with “opportunis-

tic” purchases.

5) Th ey know their customer.

Frank Foley, CEOCHF Industries

As far as how

long I’ve been do-

ing business with

Anna’s – Alan is

younger than I am.

Th at’s all I’ll say.

I think that Anna’s

has built a business

around a very fun-

damental under-

standing and respect

on who their consumer is, and they are

laser focused on assortment and product

and pricing to address that consumer.

And it all starts at the top. Alan is a full-

time merchant in every positive sense of

the word, and the sales associates and

management associates – everyone who

works there – also have a clear focus.

Th e stores are clean, the lights are up, ev-

eryone is happy and smiling, everything

is displayed well, there is clear pricing,

and all of the assortment mechanics are

in place. It’s very well focused. Th ey are

really absolutely locked in on who the

consumer is.

And when you work with them, they

don’t start with cost. Th ey start with their

consumer – what is the right product, the

right retail price point, the right store

mix, and how do we make it all work and

bring it together. As a result, Anna’s has

a very loyal and supportive customer base

who rally to them because they give them

exactly what they want.

I can’t say enough about how much I re-

spect Anna’s and their team. Th ey are sin-

gular in their focus on the customer.

Bob Weiss, President and Chief Operating Offi cer, Bath ProductsCreative Bath Products Inc.Creative Bath Products Inc. has been a

proud supplier to Anna’s Linens since

Day One.

Anna’s is a unique retailer because they

truly understand and cater to their target

customer, always off ering unprecedented

value. Th ey also spend a great deal of time

and money training their employees so

the Anna’s customer will have the best

service and shopping experience once

they enter the front doors of any of their

stores. I have been to four of Anna’s ven-

dor summits and every one has left me

with a feeling of excitement and encour-

agement.

Home Textiles Today asked some of Anna’s key vendor partners to share their memories of working with the company over the years as well as their thoughts on why Anna’s is a unique business.



ALAN, CARIE AND SCOTT,IT’S NOT NEARLY ENOUGH TO SAY CONGRATULATIONS ON 25 YEARS.

IT’S EASIER TO UNDERSTAND HOW IT HAPPENED. WITH A FAMILY SO DEVOTED AND PASSIONATE ABOUT THEIR GOALS THAT NOTHING ELSEMATTERS, SUCCESS IS SIMPLY A GIVEN.

The Gladstone family (as well as the extended family

including the managers and head office) and store

associates are driven to be the best: we are just lucky

enough to benefit from their tireless efforts.

It’s an honor to be associated with such a dedicated

group of professionals.

Now… could you get to 1,000 stores already, I’m not

getting any younger.

All the best for the future

ANDY PISCIONE

P & A MARKETING

Untitled-62 1 12/11/12 8:39:47 AM


Bryan Siegel, PresidentElrene Home FashionsElrene has worked with Anna’s

for over 15 years.

Anna’s is a retailer with a clear

vision. From the fi rst day they

opened the door and every day

since, they have operated with a

distinct culture. Alan Gladstone,

their leader, created a retail envi-

ronment that listens and delivers

on the needs and aspirations of

their customers. Alan has never

wavered in his goal.

Dick Gould, VP, SalesForeston TrendsWe’ve been doing business with

Anna’s since they opened their

fi rst stores, from the very begin-

ning.

What makes them unique is that

they really know their customer

base. And their sales staff in their

stores knows the customer, too.

[Alan] hires people who are like

their customers, so that when

[shoppers] come into the store

they get the assistance they need

from a sales person who under-

stands them based on personal ex-

perience. Plus, the sales staff does

a great job of making multiple

sales – they are very good about

that. It’s hard to fi nd customer

service like that anywhere any

more. But it’s a great shopping

experience when you do fi nd it.

George Valletti, Chief Financial Offi cerGinsey Home SolutionsWe started doing business with

Anna’s in 1993.

What makes Anna’s unique is

that the senior management team

is truly connected to all levels of

their operations, and with having

close to 300 stores that is pret-

ty special. Alan Gladstone also

knows everyone and that is not

only the members of his company

but also everyone in the vendor

community. He will communi-

cate with someone in fi nance just

as he would someone in the sales

department.

Beth Mack, Chief Merchandising Offi cerHollander Home Fashions

H o l l a n d e r

has been

working with

Anna’s Lin-

ens for about

ten years.

We have en-

joyed watch-

ing them

grow into one of the country’s top

home retailers.

Anna’s has the unique ability to

present stylish, valued-oriented

merchandise while off ering top

“From the fi rst day

they opened the door

and every day since, they have operated

with a distinct culture.”

—Bryan Siegel

Supply Side from page 28



Congrats to a wonderful family!Alan Gladstone

Carrie Doll Scott Gladstone

It’s an honor to have you as a client, but more importantly, as a close friend!

A special shout out to Maggie Negrete and John Partington foryour dedication and hard work!

The Extreme Team!


Dear Alan and Team,

In these past 10 years we have become huge Fans of Anna’s. But more importantly we have become fans of the people that work at Anna’s. Regardless of business, the friendships we have made through the years mean so much to all of us at Welcome Incorporated. Special thanks to Carie, Scott, Peggie, Jennifer, Maggie, Katie, John Boy, Pam, Roxanne and especially Margie for all your support and friendship, the last 10 years of working together.

Alan, you are wonderful leader and so important for this industry. Congratulations on building a dream company where you empower the people and make a difference in their own lives.

Congratulations on 25 wonderful years! “To 1,000 stores!”

Welcome Industrial Corp.Tony Lin, Chris Certosimo, John Morgenson, Doreen Berry, Owen Lin, Alyssa Erdman, Elyza Brilliantes, Pam Peeler and Kaitlin O’Leary

WELCOME INDUSTRIAL

CORPORATION

2006 Newcomer Award

2010 Bedding Award

2011 Bath Award

customer service and a great

shopping environment. Th ey also

know their customer and support

their needs across all categories

of business.

Ernesto Khoudari, President/CEOKassatex Fine LinensAnna’s is unique because of Alan

Gladstone’s approach to busi-

ness. He makes the vendor his

partner. Carie [Doll] and Scott

[Gladstone] have assumed the

same philosophy which natu-

rally translates down to the en-

tire Anna’s team. Working with

Anna’s is like working with fam-

ily. Your buyer is your partner; a

true partnership where ideas are

exchanged openly and freely and

you are made to feel special. In

the fi ve years I have been doing

business with Anna’s, no matter

how busy Alan is he always takes

a minute to stop in to my show-

room.

[And] the buyer always returns

my calls and emails. In the end,

that all motivates us to go the ex-

tra step to provide them with the

best possible product at the best

possible price.

David Baines, PresidentMaytex MillsWe’ve been

working with

Anna’s for

many years.

Th ey are

m e r c h a n t s

who know their customer and live

and breathe the products in their

stores. Th is is their culture and

it runs to every person in every

store.

Jim Quist, VP, SalesMohawk HomeMohawk has worked with Alan

and his team from the very start.

We’ve been able to share in each

other’s growth for years and it’s

been a great run for both compa-

nies.

Anna’s recognizes the value and

the satisfaction in developing and

maintaining personal relation-

ships with everyone from vendors

to store fl oor associates. Alan and

his team truly enjoy the business

and invest a lot of time and en-

ergy in these relationships. Th ey

have developed a very loyal, hard

working group of store associates

and they recognize that they are

serving the retail customer every

day. One example of how Anna’s

is diff erent is their annual meeting

where they bring store managers

“Anna’s recognizes the value and the satisfaction in

developing and maintaining

personal relationships

with everyone from vendors to store fl oor associates.”

—Jim Quist




Congratulationsanna’s linEnson 25 YEars oF rEtail EXCEllEnCE

American Dawn Inc & Anna’s Linens – Partners yesterday, today and tomorrow


We are proud to be a partner with

Anna’s Linens

We look forward to the next 25 years of continued success.

Congratulations on your 25th Anniversary.

and vendor partners together to

focus on new product and how

to keep it fresh and relevant for

the Anna’s customer. Th at’s very

unique, a lot of fun for everyone,

and also happens to make great

business sense. To their credit,

Anna’s has been able to maintain

that family atmosphere as they

have grown to be a national re-

tailer.

Jeff Gregg, PresidentRevere Mills

We have

worked with

Anna’s for

many years

but we have

b e c o m e

more of an

i m p o r t a n t

vendor over

the last fi ve

years.

I think they are unique in that

their buyers are so knowledge-

able of the business in general but

more importantly who their cus-

tomer is and what they like. Th ey

know what will work in their

stores and what the price point

their customer will react to.

Michael Litner,PresidentNatco HomeWe have worked with Anna’s for

about 20 years. [What makes

Anna’s unique] is Alan Gladstone

and his ability to make quick de-

cisions and understand their cus-

tomer.

Jonathan Witt, VPOriental Weavers USA /SphinxWe enjoy our working partnership

with Anna’s Linens. Alan runs an

incredible organization. His per-

sonal involvement in our product

meetings is impressive for a CEO

with his stature in the industry.

Th eir annual “Manager’s Confer-

ence” is also an inspiration. Anna’s

executive team truly listens to the

feedback and opinions of their

store managers and tailors the as-

sortments and product off erings

for stores accordingly. I believe

this is a key to Anna’s Linens suc-

cess and growth.

Park Smith ChairmanPark B. Smith Ltd.

We’ve been

working with

Anna’s since

their fi rst

store opened.

Th ey are

unique in the

manner in

which they

work togeth-

er as a team, from store personnel

to top management.

Dianne Weidman, VP, Sales, Design, Product DevelopmentSaturday Knight Ltd.I have worked with Anna’s Linens

for over 10 years.

SKL has enjoyed a great relation-

ship with Anna’s over the years.

“Anna’s executive team truly listens to the feedback and opinions

of their store managers.”—Jonathan Witt




PAYS TRIBUTE TO ANNA’S LINENS & ITS CONTRIBUTION TO THE WORLD OF RETAILING.

YOUR FRIENDS AT FORESTON TRENDS

Congratulationson your fi rst 25 years. Here’s to the next!

Layout for Stacked Files.indd 1 12/10/2012 5:42:48 PM


We have built a very strong busi-

ness with them through great

partnership. Th ey have a very clear

understanding of who their cus-

tomer is and what she wants. Th ey

don’t deviate from the direction of

searching the market for product

to satisfy their customers’ needs

and wants.

We have always worked very

closely with Peggie [Galvin] to

make sure that we have the right

product at the right price. I think

what makes Anna’s unique is the

personal touch. Th is business is

very much about the passion that

Alan, Scott, and Carie have for

Anna’s and its success and future

and that passion extends to the

entire Anna’s family of employees.

Th at is what makes them unique

and successful and will insure

their place in the future of retail

establishments.

Barry Leonard, President/CEO Welspun U.S.A.

I have known

Alan since

he founded

Anna’s Lin-

ens. I was at

Springs at

the time and

we helped

him get off

the ground

when he needed it. He never for-

got those who helped him back

then. Alan knows all of my family

– mother, wife, children, as I do

his. It is a special relationship.

My favorite story regards my

mother. Alan invited her to the

gala celebrating his store open-

ings in Charlotte, N.C., where

we live. It was her 75th birthday

and I told Alan that we were tak-

ing her out for her birthday that

evening and we could not attend

his gala. Alan said, ‘Barry, ask your

mother what she prefers, and then

I can live with your decision.’ So,

I asked my mom and she said she

wanted to go to Alan’s party and

we would celebrate her birthday

the next night. I was shocked!

Well, Alan had everyone at the

event sing Happy Birthday to her

that night. She will never forget

that!! He asks me about my mom

every time we talk!

Anna’s is unique because of its la-

ser focus on its customer base.

Also, Alan and his team are some

of the best merchants in the busi-

ness. He has a personal relation-

ship with every one of his em-

ployees. At his annual “Store

Manager’s” meeting, Alan, Scott

and Carie personally congratulate

every winner and [share] a story

about each one. It is a unique and

personal relationship.

“Alan, Scott and Carie personally

congratulate every winner (at the store manager’s

meeting). It is a unique

and personal relationship.”—Barry Leonard



Layout for Stacked Files.indd 2 12/11/2012 8:45:47 AM


Congratulations to the Gladstones and the entire Anna’s Linens family on such an amazing feat –

25 years of great retailing.

We salute you and remain a very proud partner.

head offi ce: 4930 courval street ■ montreal, quebec h4t1l1 ■ canada phone: 514.343.0220 ■ facsimile: 514.343.0298 ■ www.splash-home.com

For instance 300-thread-count

100% cotton sheets at $19.99

ANY SIZE. King and Cal King

sizes are very important in sheets

and pillows. Also prints are just

as important as solids in sheets

where most retailers are now em-

phasizing more solids.



store sales people?

King size sells in California not

just Cal King. At our managers’

conference each year they all give

us feedback from all the vendors

on what they want in their stores.

All their feedback is useful.

How does buying for the inter-

net diff er from buying for the

stores in your category?

Th e internet tends to want high-

er end goods at a great value.

More a Caucasian than “ethnic”

shopper.

What does a vendor need to

know or do to get your business?

Our assortment is very diff erent

from our competition. A sup-

plier needs to review our assort-

ment for color, prints and price

points. Th ey must learn what

OUR customer wants not what

sells at other retailers. For in-

stance, white is the biggest color

in sheets at other retailers. White

does not sell well at all at Anna’s.

What’s your favorite Alan say-

ing?

“Little vendors big problems; big

vendors little problems.”

cause our district manager from

Louisiana went crazy for it at

our yearly manager’s conference

a couple of years ago.




Th e internet reaches a broader

customer base and the product

that sells may diff er from our

typical best sellers. Th e inter-

net also allows Anna’s to get a

feel for how diff erent markets

sell product that may not have

been considered previously. As

an example, a beach-themed

bath coordinate was initially put

in our coastal stores but on the

internet the best selling region

is an inland area, so the pattern

was bought for the stores in that

region and is selling great.



Th e fi rst step is to go to a store

and look not only at the assort-

ment but look and get to know

who our customer is, then fi nd

product that Anna’s does not

currently carry, but still appeals

to our customer base. Th e sec-

ond thing is to listen. Off the bat

Anna’s Linens (associates) know

who our customer is and what

she is looking for. Just because a

vendor has a product that sells

well at another retailer does not

mean it will sell at Anna’s Linens.


ing?

“Our customers want steak

cheap, not cheap steak”. Th at is

Anna’s Linens in a nutshell, our

customers what fashion and

quality at an aff ordable price.

John Partington from page 18 Peggie Galvin from page 18


Alan, Carie & Scott

We were with you when you opened store number one and we plan to be with you when you open store number 1000.

Congratulations from your partner in home products!



looks at a value price.



store associates?

We have an annual Store Man-

ager Conference, which I attend-

ed one month after being here.

What I learned from that con-

ference is that we are fortunate

to have the most passionate and

knowledgeable people working

on the front line directly with the

customers.




Th e biggest diff erence between

the internet customer and the

brick and mortar customer is that

the internet customer is not as

price sensitive as our brick and

mortar customer.



First, I ask all new vendors to do

a thorough assessment of our cur-

rent assortment. Secondly, they

really need to understand who the

Anna’s customer is. Th ese two

things will not only give them the

ability to present product that is

void in the assortment but also

product that speaks to our cus-

tomer.


ing?

My favorite saying from Alan is

“We buy steak cheap, not cheap

steak!” My favorite thing he does

is when he hears great news, he

does this dance where he puts his

arms out to his side, closes his

eyes and does a dance like “We’re

on top of the world.”

feedback has been about pat-

terns, they know exactly what

our customers are looking for.




Fashion bedding is a large por-

tion of the internet business. We

place a dedicated order for the

ecommerce site and make sure to

replenish in the best of the best.



We have vendors that have been

with us for years and some new

ones. We work well together and

they really understand our styl-

ing and culture.


ing?

My favorite Alan saying is, “We

do not sell cheap steak, but steak

cheap.” We try to off er our cus-

tomers a great value at a price

they can aff ord.

Jennifer Knapp from page 18

Maggie Negrete from page 18

Three out of four Anna’s buyers agree: Alan Gladstone’s favorite saying is some variation

of “We buy steak cheap, not cheap steak.”


Congratulations!

TO ALL OF YOU ATF

RO

M A

L L OF U

S A

T



ing team to keep them in

the loop.

“Th e customer tells us if

she wants information

from mobile or email. Th at

information allows mar-

keting and merchandising

to be connected even more

so.”

Th ere are no points to

count and no expiration

dates on “Fan of Anna’s”

cards. Members receive

invites to special store

events. And social media

messaging for Fan mem-

bers is distinct from gen-

eral social media messag-

ing.

In terms of ecommerce,

Anna’s had been building

a business without put-

ting a great deal of eff ort

behind it. “It proved there

was a business there,” said

Strickland. Ecommerce

moved under the market-

ing department in May

2011

From there, Anna’s be-

gan to invest, adding four

people to the ecommerce

eff ort and launched a new

website this past July.

“It’s probably the fastest,

most diffi cult job launch

I’ve ever done,” said

Strickland. He’s done six.

Th e Anna’s ecommerce

upgrade was accomplished

in six months and now

carries 3,600 skus.

Again, technology invest-

ments helped integrate

the marketing and mer-

chandising team, he said.

Chief merchandising offi -

cer Carie Doll set up drop

ship accounts with the

stores vendors to aid the

ecommerce eff ort. “Th at’s

a big growth opportunity

for us,” he said. “And when

they’re out doing deals for

the chain, they consider

buys for ecommerce.”

Th ere’s more to come, of

course. But it all goes back

to the feedback of Anna’s

most loyal customers.

“We know more about our

customer now than ever ,”

said Strickland. “We have

this very engaged custom-

er who is very vocal with

us. Our customer is also

most forgiving – so long as

we fi x what they’re telling

us to.”

pers’ product expectations.

Scores were running at 60

at launch. Th ey’re now 80.

“It’s our people, their pas-

sion, commitment and en-

ergy,” said Sullivan. “Th ey

fi ght for every sale.”

For the past three years,

Anna’s has been focused

not just on expanding into

new markets but also on

remodeling and remodels

and relocations. In 2012,

the company has under-

taken 24 remodels, nine

relocations and seven store

expansions. Th e eff ort will

touch another 15 to 20

stores next year.

“It’s very important for

the customers who have

shopped with Anna’s for

many years,” he said. “It’s

exciting to see their re-

sponse.”

In addition to new fi xtur-

ing, carpeting, lighting

and cash wraps, the updat-

ed format pulls bedding to

the front of the store, with

window just behind. Th ose

two categories account for

60% of Anna’s business.

Kitchen and tabletop – a

big part of Anna’s growing

hard lines business – are

located right behind the

cash wrap.

Th e most important piece

of it, however, is what store

employees bring to the

equation, knowing what

customers in their markets

will gravitate toward.

“We don’t planogram ev-

ery little thing,” said Sul-

livan. “You’ll see the pas-

sion come through in their

displays. Th ey feel it’s their

own. You can’t buy that.”

Steve Strickland from page 16 Tony Sullivan from page 16

annas insert for pdf.indd A42annas insert for pdf.indd A42 12/11/12 7:05 PM12/11/12 7:05 PM

25 Years Young!Park B. Smith Ltd. congratulates

ANNA’S LINENSon your quarter century

in the home business.

Dear Anna’s Linens ,CONGRATULATIONS on achieving the milestone of 25 years in business.THANK YOU to the whole Anna’sfamily for your one-of-a-kindpartnership.

ALL THE BEST on the next 25 years!

- Your friends at ICA and Artboxx Framing

ARTBOXX INC.FRAMINGwww.ica-art.com



Congratulations on your 25th Anniversary. We are honored to be a part of your past

& a partner in your future.

O F C A L I F O R N I A

also an annual training summit

at the district level for store man-

agers.

Anna’s has also created a tier area

manager as a bridge between store

managers and district managers.

In addition, it has established a

program to help district managers

prepare to become regional man-

agers.

“We look within to fi ll our job

opportunities fi rst,” said Arenioff .

“But for any healthy company

you’ve got to be both building tal-

ent and buying talent.”

Employee engagement surveys

help track satisfaction, and Anna’s

benchmarks against high-perfor-

mance companies as well as retail

overall. Th e “You’ve Been Spot-

ted” program allows employees

to fl ag extraordinary performance

by their co-workers, with winners

highlighted each quarter. Th e Idea

Program encourages employees

throughout the organization to

weigh in on what could be done

better. Going forward, Anna’s is

looking to make all channels of

communications more robust.

“Anna’s is still a story being writ-

ten. We are positioning for con-

tinued growth and success,” said

Arenioff . “At the end of the day,

we want employees to look around

and say: ‘Th is is still the best place

to be.’”

“We really needed help to man-

age it. It was time to bring in

outside talent,” said Harnetiaux.

Th e pace of 30 to 35 store open-

ings a year Anna’s has pursued

since is “good growth for us. Very

manageable,” he said.

Harnetiaux noted Anna’s has

also been careful about reserv-

ing cash and not overextending

itself. At the same time, it has

made extensive investments in

infrastructure and technology.

“From where we were, we are

light years ahead. Our technol-

ogy now places the right prod-

uct at the right time in the right

stores,” he said.

He added: “It’s a great place to

be. We’ve still got a lot of growth

ahead of us.”

Abby Arenioff from page 14 Mike Harnetiaux from page 14

Anna’s “Thank You” boils down The company’s core values to an easy set of principles:

T – Treat each other with respect and dignity every day. We keep our word. (Integrity)

H – Hear what people are saying. We honor them with our attention and speak openly. (Communication)

A – Awesome Value! Provide our customers with the highest price/quality equation. We exceed our customers’ expectations. (Customer Focus)

N – No “I” in TEAM! We are team players who work together to achieve our goals. We embrace our differences. (Teamwork)

K - Know our Business. We are knowledgeable and competent in our roles. We are determined to achieve success. (Business Focus)

Y – Yes I Can! We have positive “can do” attitudes. We go above and beyond. (Positive Attitude)

O – Organizational Loyalty… The special bond between our Company and ourselves. (Loyalty)

U – Understanding, Humble, and Compassionate. We have empathy for others. (Compassion)


-The Victoria Classics Team

Home

Congratulations to the entire Anna’s team on your 25th Anniversary!

The team at Vara Home Fashions looks forward to your continued growth and success for many years to come…

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BEATRICE HOME FASHIONS CONGRATULATES ANNA’S LINENS

ON 25 INCREDIBLE YEARS

ANNA’S LINENS

Th e St. Jude Connection

A nna’s Linens and

St. Jude Children’s

Research Hospital

go back four years. And

more than $1.7 million.

Th at’s how much Anna’s

has collected for the hos-

pital toward research

against juvenile illnesses

since 2008 – and a sum

that is “just shy” of the

hospital’s daily operating

cost of $1.8 million per

day, St. Jude’s noted.

Anna’s accomplished this

feat, and continues to raise

more funds, with the help

of both its own staff and

its shoppers.

“We are very grateful for

donations like this, which

help ensure that St. Jude

patients continue to re-

ceive excep-

tional treat-

ment and

care and

that they

never pay

St. Jude for

anything,”

said Rich-

ard Shadyac

Jr., CEO of

ALSAC/St. Jude Chil-

dren’s Research Hospital.

“Anna’s Linens has been

a great partner, and every

year they step it up with

creative ways to engage

their employees and cus-

tomers in supporting St.

Jude.”

Th e retailer fi rst partici-

pated in the hospital’s St.

Jude Th anks and Giving

program on a regional

level, raising $104,000 by

off ering shoppers the op-

portunity to donate $1 by

adding it to their purchase

total.

Th en in 2009, Anna’s ex-

panded its relationship by

signing on as a national St.

Jude Th anks and Giving

corporate partner. Look-

ing to build on its support,

the retailer revised its in-

store donation program

by off ering shoppers a

bounce-back coupon to-

ward a future purchase for

each donation they made

to St. Jude.

Anna’s surpassed its goal

and raised more than

$347,000 – or a 233%

growth over its 2008 do-

nation. In addition, three

Anna’s Linens vendors

committed to donate to St.

Jude directly.

As St. Jude Hospital said,

the new program “was

a hit, with the company

running out of coupons

two weeks prior to the

campaign’s conclusion.”

Encouraged by its shop-

pers’ response, Anna’s Lin-

ens extended its campaign

in 2010 by four weeks and

increased the number of

bounce-back coupons pro-

duced for customers.

Th en in 2011, the compa-

ny hosted a “Scare Away

Cancer around Hallow-

een” staff event, off ering

employees a chance to

dress casually for work in

exchange for a donation to

St. Jude’s in tandem with a

bake sale also benefi tting

the hospital. Th e result was

a 2011 fundraising total of

$626,000 for St. Jude—

the company’s best cam-

paign to date. Anna’s promotes St. Judes donations at its checkout registers.


“If you can dream it,you can do it.”

Walt Disney

Alan and the Anna’s family,may your dreams continue to come true.

Congratulations from your friends at

HTT_AL Congrats tab.indd 1HTT_AL Congrats tab.indd 1 11/26/12 2:06:18 PM11/26/12 2:06:18 PM

Alan GladstoneYour Anna’s family admires and celebrates

your 25 years of dedication.

From one store and a dream, to 300 and on our way to 1,000!

Congratulations on 25 great years! From your Anna’s family

You make your mom proud!

Untitled-50 1 11/21/12 8:41:30 AM

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PEOPLETodaY

December 17, 2012

COLUMBUS, OHIO — Big Lots Inc.’s chairman, president and ceo, Steven S. Fishman, has told the company that he expects to retire – but will wait until a replacement is found.

To ensure “an orderly leadership transition,” Fishman — who assumed his current roles in July 2005 — said he will con-tinue to serve in his cur-rent roles until his succes-sor is appointed.

The Board has retained Korn/Ferry International to conduct a search, both internally and externally, for ceo candidates.

Philip E. Mallott, a nine-year member of the board and the chairman of its audit com-mittee, noted Fishman has “pro-vided Big Lots with outstanding leadership and fi nancial results

during his tenure. After nearly 40 years in retail, the board of directors understands and sup-ports his desire to shift his focus and put his family fi rst. We are pleased he has agreed to play

a continuing role with the company during the transi-tion and provide his continued services and expertise to the company in a con-sulting capacity fol-lowing his retire-ment.”

Fishman, whose retail career spans almost 40 years — cited several of his accomplishments over his years at Big Lots, including: record levels of sales and productivity per selling square foot; growing U.S. operating profit to $358 million in fi scal 2011, compared

to $27 million in fiscal 2005; growing U.S. income from con-tinuing operations to $220 mil-lion in fi scal 2011 from $21 mil-lion in fiscal 2005; generating $2.2 billion of U.S. operating cash fl ow; returning $1.9 billion of cash to shareholders in the form of share repurchase activ-ity; improving inventory turn-over by 20% since fiscal 2005; and international Expansion into Canada.

He explained “this is an important time for my family and me. We’re excited about embarking on this new chap-ter in our lives and I’m look-ing forward to continuing with Big Lots in my new role. I’d like to thank the Big Lots associates for their support, dedication, and hard work as we continue together on the journey toward our goals.”HTT

CALHOUN, GA. – The president of area rug and home accessories brand Surya, Satya Tiwari, has been named to Atlanta Business Chronicle’s 2012 “40 Under 40” list, which comprises the city’s top young pro-fessionals of the year.

M o r e t h a n 5 0 0 n o mi n a t i o n s w e r e received for this year’s award, and winners were se lected by a committee of former 40 Under 40 alumni based on their lead-ership abilities, professional achievements, and community service work.

Tiwari and all other 40 Under 40 recipients were recognized at an awards dinner held Novem-

ber 8 at the Atlanta His-tory Center.

“I am thrilled to be a recipient of this year’s 40 Under 40 awards – and finding myself in the company of so many other success-ful young profession-als here in the Atlanta area,” said Tiwari.

Added Surya Tiwari, his father and founder of the com-pany: “Satya has been instru-mental in setting the vision for Surya’s growth and I am proud

to see his efforts being recog-nized.”

Since 2004 when he joined the company, Tiwari is credited with growing the business 24-fold and made the brand a rec-ognized leader in the rug and home accessories industry. He also has helped the company achieve double-digit growth in seven of the last eight years and today, and work with more than 60% of the top 200 furni-ture retailers in the U.S. Surya is also dedicated to community stewardship, having partnered with nonprofi ts East Meets West and the Akshaya Patra Founda-tion. HTT

MICHAEL FISHMAN

Big Lots

Big Lots’ Fishman Announces Plans to Retire

Surya’s Tiwari Honored by Atlanta Business Magazine

SATYA TIWARI

Surya

NEW YORK — Flash sale retailer Gi l t .com has appointmed Michelle Peluso ceo. A board member since Octo-ber 2009, she will step into her new role at the end of February.

Gilt founder and ceo Kevin Ryan will become chairman, and Susan Lyne will become vice-chair-man.

“I’m tremendously excited to be leading a company with a brand I love and a team I’ve come to greatly admire,” said Peluso. “Gilt has done a terrifi c job establishing itself as one of the most inno-vative online shopping destina-tions and I am looking forward to continuing to build on Gilt’s growth and success.”

Peluso is currently Citi-group’s global consumer chief marketing and internet offi cer. She was the ceo of Travelocity

from 2003 to 2009 after serving as the company’s chief operat-ing officer. She joined Trave-

locity in 2002 upon the company’s acquisition of Site59, a travel site she created and launched in 2000 that offered last minute deals. Prior to leading Site59, Peluso served as a White House fellow and senior advisor to Labor Secretary Alexis Herman and worked as a case leader for The Bos-

ton Consulting Group in New York and London.

“Michelle’s deep Internet experience, coupled with her operating and marketing back-ground, made her my ideal choice to be Gilt’s ceo going forward,” said Ryan. “We have worked together for three years as fellow Board members and I am thrilled she will be leading Gilt to its next level of growth and market leadership.” HTT

MICHELLEPELUSO

Gilt

Gilt Names New ceo

WEST LONG BRANCH, N.J. — For-mer NBA All-Star Eric “Sleepy” Floyd has become brand ambas-

sador for Com-fort Revolu-tion, developer and marketer of high–end sleep products founded last year by indus-t r y v e t e r a n Michael Fux.

Floyd will represent the brand in key promotions and build awareness of the importance of a good night’s sleep among pro-fessional athletes, youth groups, companies, and other organi-zations. Comfort Revolution is developing Floyd’s marketing and

promotional schedule for 2013. “We respect all that Eric has

accomplished on and off the court, and believe he’ll be a great match for a company whose hall-mark is innovation,” said com-pany ceo Michael Fux. “Besides, who better to talk about the value of a good night’s sleep than some-one whose nickname is Sleepy?”

Floyd was a star player at Georgetown University before joining the NBA. He played for 13 years as a point guard for the New Jersey Nets, Golden State Warriors, Houston Rockets, and San Antonio Spurs. He acquired his nickname when he was 8 years old during a baseball game, when the fi rst pitch rolled right between his legs at second base. HTT

Eric Floyd to be Comfort Revolution Ambassador

ERIC FLOYD

htt121202_058_060 58 12/12/2012 5:04:34 PM

Capture their attention by advertising in

SPENCER WHITTLE:[email protected] 336.605.1027 fax 336.605.1143

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BY CINDY W. HODNETT

LAS VEGAS — Alexa Hampton, interior designer and owner of New York design firm Mark Hampton LLC, will be recognized as the 2013 Design Icon dur-ing the winter Las Vegas Market.

The award presenta-tion will take place Jan. 30 and will be followed by remarks from Hamp-ton, a trunk show of her newest fabric and trim collec-tion with Kravet, and a book signing.

Hampton began her design career working with her father, designer Mark Hampton, at the firm he opened in 1976. After her father’s death, she began running the fi rm and has since been included on several top

100 designers lists in publi-cations such as Architectural Digest, House Beautiful and New York Magazine.

“Design has always been my passion and I simply can’t imagine working in any other industry,” Hampton said. “I am fl attered to join such a tal-ented group of industry profes-sionals and former Design Icon recipients, and I look forward to attending one of the most talked about markets of the year.”

Past Design Icon honorees

include Vladimir Kagan, Juan Montoya, Vicente Wolf, Chris-topher Guy, Larry Laslo, Roger Thomas and Jaime Drake.

“ D e s i g n I c o n i s the centerpiece of our designer programming for the upcoming win-ter market (Jan. 28-Feb. 1), and as such, we are pleased to present Alexa Hampton as the recipi-ent of our 2013 Design Icon award,” said Paul

Watson, vice president of design for International Market Cen-ters, parent company of Las Vegas Market. “Her industry ten-ure, accomplishments and infl u-ence make her a natural fi t for this award and we are most for-tunate to have her present mar-ket attendees with highlights and infl uences of her illustrious career.” HTT

CANNON FALLS, MINN. — Mid-west-CBK, has named Dick Duff general manager.

An industry veteran, Duff has 29 years of experience in the gift industry, including fi ve years with Midwest of Cannon Falls as the executive vice president of sales and marketing. Throughout his career, Duff has served in numer-ous executive-level leadership roles in the gift industry, focus-ing on marketing, product devel-opment, sales management and business development; he also has international experience in foreign sourcing, manufacturing, distribution and product develop-ment. In his new role, Duff will oversee all aspects of day-to-day operations and manage growth objectives.

“Dick’s proven track record and knowledge of the gift industry is second to none,” said Howard Ganz, president of Ganz, which acquired Midwest-CBK from MVP Group International, Inc., in October. “His passion com-

bined with outstanding sales and marketing leadership will serve our customers, employees and the industry well. We look forward to continued growth and success through Dick’s leadership.”

Most recently, Duff served as the executive vp of Blue Mountain Arts. He has also served as execu-tive vp of sales and marketing, and vp and general manager of The Hadley Companies; president of American Specialty Confections; and executive vice president and general manager for Carousel by Guy. Duff holds a Bachelor of Sci-ence degree in marketing, adver-tising and journalism from Okla-homa State University.

“I’m excited to return to Mid-wes-CBK and work with the industry’s top talent to bring our valued customers the most sought-after products backed by an amazing sales and distribution team,” said Duff, in a statement. “I look forward to the opportunity to further develop and grow the brand.” HTT

Midwest-CBK Names Dick Duff GM

Alexa Hampton to be Honored as Design Icon at

Las Vegas Market

December 17, 2012

ALEXA HAMPTON

WASHINGTON — The National Retail Federation has named 24 college students as the recipients of its NRF Foundation Ray M. Greenly Scholarship fund.

Nominated by educators at their schools based on their high scholastic achievements and pas-sion for retail, each student will receive a $5,000 scholarship to cover educational costs and a stipend to attend Retail’s BIG Show in January.

The NRF Foundation pro-motes retailing as an attractive career path while developing and cultivating the next gener-ation of retail leaders through partnerships with universities, professional certification pro-grams, and workforce training. As a part of its commitment to foster the next generation of retail leaders, the NRF Founda-tion said it is on track to award more than $350,000 in scholar-ships this school year through its University Partner Program.

“I’m incredibly passionate about the importance of recruit-

ing and retaining the best peo-ple and these scholarships dem-onstrate the National Retail Federation’s commitment to the future of retail talent and lead-ership,” said Kip Tindell, chair-man and ceo of The Container Store and chairman of the NRF Foundation board of directors. “I can’t imagine another industry that offers the growth and inno-vation opportunities that retail does and I’m certain that these students have bright and fulfi ll-ing careers ahead of them. We look forward to seeing them thrive and make a difference in the lives of the millions con-nected to our industry.”

Below are the names of the 24 students along with their hometown and the name of the college/university where they are enrolled:

• Laura Bianchi,Cinnaminson, N.J, Drexel University

• Esther Wu, San Jose, CA FIDM/Fashion Institute of Design & Merchandising

• Elizabeth Kryszak, Eden,

NY, Fashion Institute of Tech-nology

• Rinsha Prophete, St. Peters-berg, FL, Florida State Univer-sity

• Kelly Sexton, Toccoa, GA, Georgia Southern University

• Kelsey Pepmeier, Vin-cennes, IN, Indiana University

• Brittany Casper, Brunswick, Ohio, Kent State University

• Maryah Duplissie,n Mon-mouth, ME Lasell College

• Shannon Oriole, Pelham, NH, LIM College

• Daniel Hughes,nManassas, VA, Longwood University

• Kate Oronin, Dayton, OH Ohio University

• Amanda Lane, nDubuque, IA, Pennsylvania State Univer-sity

• Alyssa Tomasello, Morgan Hill, CA, Santa Clara Univer-sity

• Kelsey Maharrey, Tupelo, MS Savannah College of Art and Design

• Lauren Ray, Austin, TX, Texas A&M University

• Talia Watts , Egg Harbor Township, N.J., The University of Arizona

• Katie Streepey, Dallas, TX, University of Arkansas

• David Magnotta, San Anto-nio, Texas, University of Flor-ida

• Michele Crow, Lee’s Sum-mit, MI, University of North Texas

• June Luo, Germantown, WI University of Pennsylvania

• Sherri Martin, Mission Viejo, CA, University of Phoe-nix

• Susan Fuller, Greenville, SC, University of South Caro-lina

• Jamie Madere, Kingston Springs, TN, University of Ten-nessee-Knoxville

• Melissa LaBorde, Wauke-sha, WI, University of Wiscon-sin-Madison

Each student will travel to New York and will be recognized at Retail’s BIG Show in January. A special student program dur-ing the convention, made pos-

sible by contributions from The Container Store, Macy’s, Saks and Walmart, will incorporate networking sessions with retail recruiters and opportunities for students to meet executives from BJ’s Wholesale Club, HSN, Rent the Runway, and Tractor Supply Co.

The Ray M. Greenly Schol-arship Fund was established to honor the memory of a for-mer Shop.org vice president who lost his battle with can-cer in the fall of 2005. His gen-erous and kind spirit inspired NRF to establish a scholarship that provides fi nancial support to students pursuing a career in retail in areas including mar-keting, operations, merchan-dising, logistics, IT, and analyt-ics. The scholarship is partially funded by a portion of the pro-ceeds from CyberMonday.com, a website launched in 2006 to provide retailers with the oppor-tunity to highlight their online promotions on Cyber Monday and throughout the year. HTT

NRF Awards Scholarships to 24 Students

“Design has always been my passion and I simply can’t

imagine working in any other industry.”

News

htt121202_058_060 60 12/12/2012 5:12:18 PM

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BUSINESSTodaY

NEW YORK — Same-store sales rose up 2.2% in the second week of December following a 2.1% gain the prior week, ac-cording to The Johnson Red-book Retail Sales Index.

Sales were mixed in the sec-ond week. As Redbook analyst Catlin Levis explained, some re-tailers saw business pick up, in-fluenced by the beginning of Hanukah, which began on Dec. 8, earlier than last year. Howev-er, some retailers said they had entered the expected “soft mid-

dle” of the holiday season, she said.

Sales at discount stores con-tinued to be strongest in basic consumables, food, toys and electronics.

Online shopping kept up a strong pace and popular gift cards have made it easier for consumers to delay holiday shopping, shifting sales to the period after the holiday season. Gift card sales don’t record the sales revenue until the cards are redeemed, Levis noted. HTT

Same-store sales

Comps Inch Up as Holidays Kick Off

Johnson Redbook IndexThird week of December, year-over-year % change

WEEK ENDED 12/1 12/8 12/15 12/22 12/29 MONTH TARGET

Department stores* 0.7 0.9 0.8 1.3Discounters 3.0 3.1 3.0 3.5Redbook Index 2.1 2.2 2.2 2.6*Including chain stores and traditional department storesSource: Johnson Redbook Index

December 17, 2012

FORT WORTH, TEXAS — Pier 1 Imports Inc. managed double-digit sales increases and high sin-gle-digit comp gains in its third quarter despite hefty impacts from Hurricane Sandy, which devastat-ed parts of the Northeast on Oct. 29.

With the release earlier this month of its initial third quar-ter results, the home furnishings chain said it estimates the impact of lost sales and costs associated with storm to be approximately 2 cents per share, net of tax, for quarter.

In the days immediately follow-ing the storm, as many as 225 Pier 1 stores were closed, primarily be-cause of power outages, and 50 stores operated on reduced hours. All stores were reopened and fully operational by the end of Novem-ber’s second week with the excep-tion of one store located in Long Island, New York, which remains

closed due to storm damage.“While a large number of our

stores experienced closure and disruption due to Sandy, our focus was directed fi rst and foremost on the safety and well-being of our as-sociates and others in need,” said Alex Smith, president and ceo. “I am extremely proud of and grate-ful to our associates for their ef-forts to reopen our stores quick-ly, even though their own lives were, and in some cases still are, disrupted.”

Total sales for the quarter im-proved 10.9% to $425 million compared to $383 million in the year-ago quarter. Comparable store sales increased 7.9%, pri-marily due to gains in store traffi c and higher average ticket.

“We’re pleased to deliver strong sales growth this quarter, as customers responded particular-ly well to our fall assortments. Ex-cluding the impact of Hurricane

Sandy, we estimate that third quarter comp store sales would have increased slightly over 9%,” Smith explained.

Gross profit for the quarter is expected to be approximately 43.9% of sales for the third quar-ter versus 43.2% of sales last year. Earnings per share are project-ed to be approximately 22 cents compared to 21 in 2011’s third quarter.

Year to date, total sales were up 9.0% to $1.153 billion, and comps grew 7.3% on top of a 9.2% in-crease in the year-ago period.

“We have had a terrific start to the holiday season, including a very strong Thanksgiving week-end, and believe the business is ideally positioned with a compel-ling merchandise assortment and multiple ways to shop the Pier 1 Imports brand, including both in-store and online,” Smith said. HTT

COLUMBUS, OHIO — The third quarter proved to be anoth-er challenging one for closeout chain Big Lots Inc.

Only this year, the period was especially diffi cult as a result of external factors, including a hefty hit from Hurricane Sandy in late October, resulting in a profi t loss and declines in sales and comps.

Big Lots reported a loss from continuing operations of $6.0 million, or 10 cents per dilut-ed share, for the quarter, ended Oct.27, compared to income of $4.2 million, or 6 cents per dilut-ed share, last year.

During the retailer’s call ear-lier this month, chairman, ceo and president Steven Fishman explained the company’s third quarter is historically “our lowest volume quarter and quite frankly, when we are in transition” as Big Lots prepares for its holiday sell-

ing season.”But for this year’s Q3, in par-

ticular, the company braced for added pressures and “some anx-ieties on the consumer,” he con-tinued, such as “the national elec-tion, an uncertain economy, and a persisting diffi cult job market.”

Compounding these hurdles was unforeseen severe weather, namely Sandy, which hurt Big Lots’ business in the Northeast-ern region where Fishman said “we have a large concentration of our stores.”

By division, its U.S. operations in the quarter suffered a $1.7 mil-lion loss, or 3 cents per diluted share (non-GAAP), compared to income from continuing U.S. op-erations of $11.4 million, 17 cents per diluted share (non-GAAP), a year ago. Net sales also struggled, dipping 1.9% to $1,095.2 million versus $1,116.8 million last year,

and comparable store sales took a hit, dropping 4.9% for U.S. stores open at least fi fteen months.

Better off was the company’s Canadian operation, which is now starting on its second year in business. Net sales totaled $39.0 million, while incurring a net loss of $4.3 million, or 7 cents per diluted share (non-GAAP), compared to net sales of $21.5 million and a net loss of $7.1 mil-lion, or11 cents per diluted share (non-GAAP) for the same period of fi scal 2011.

Joe Cooper, principal ac-counting officer, evp, and pres-ident of Big Lots Canada, ex-plained this fledgling division saw strength in consumables, fur-niture, and home, “as customers continue to respond favorably to our expanded assortment, quali-ty, and extreme values through closeouts.”

Year to date, Big Lots’ income from continuing operations to-taled $56.9 million, or93 cents per diluted share. The compa-ny incurred an after-tax charge of $3.4 million during the fi rst quar-ter of fi scal 2012 related to an in-ventory accounting change asso-ciated with the implementation of new retail inventory systems. Excluding this non-recurring, non-cash charge, adjusted in-come for the period totaled $60.3 million, or $0.98 cents per dilut-ed share (non-GAAP), compared to $92.5 million, or $1.31 per di-luted share a year ago.

Net sales for the 39 weeks came to $3,646.7 million, up 3.2% from $3,532.7 million a year ago.

Big Lots updated its guidance for fi scal 2012 to include: fourth quarter consolidated income from continuing operations of

$1.91 to $2.10 per diluted share versus $1.75 per diluted share for fi scal 2011; and fi scal 2012 annu-al guidance for adjusted consol-idated income from continuing operations of $2.86 to $3.05 per diluted share (non-GAAP) versus $2.99 per diluted share for fi scal 2011.

“This guidance assumes U.S. comparable store sales decline in the range of low to mid sin-gle digits and a total U.S. sales in-crease in the range of 3% to 7% [in the fourth quarter],” Fishman said. “For our Canadian opera-tions, sales are expected to be in the range of $48 million to $52 million for the fourth quarter of fiscal 2012. As a reminder, the fourth quarter of fiscal 2012 in-cludes 14 weeks of operations, compared to 13 weeks of opera-tions in last year’s fourth quarter results.” HTT

Big Lots’ Q3 Harsher Than Usual as Chain Suffers Profit Loss

Sandy Slams Pier 1, but not Q3 Sales

htt121202_062_063 62 12/12/2012 5:19:19 PM

63 Home Textiles Today> hometextilestoday.com Business December 17, 2012

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BY MICHAEL J. KNELL

TO R O N T O — Hudson’s Bay Company is once again a pub-lic company with the closing of its initial public offering of some 21.8 million shares at a price of C$17 each, which gen-erated proceeds of C$365.1 million.

The company’s proceeds will be used to pay down debt.

The IPO consisted of a trea-sury offering of 14.7 million shares as well as a sale of just under 6.8 million shares by their company’s largest share-holder, which is controlled

by Richard Baker, governor of HBC and chairman of the New York-based NRDC Equity Part-ners, which acquired HBC in 2008.

The common shares are listed on the Toronto Stock Exchange under the symbol HBC.

With the closing of the IPO, there are some 120 mil-lion common shares of HBC outstanding. Baker will con-trol some 81.7% of the shares through various holding com-panies.

The underwriters have been granted an over-allotment op-

tion, giving them 30 days to purchase an additional 3.2 million shares from the selling shareholder.

The company operates three retail banners, two in Canada and one in the United States. The Canadian operations in-clude the Bay, which has 90 stores across country and about C$2.2 billion in annual sales and Home Outfi tters, a kitch-en, bed and bath superstore with 69 outlets and C$300 million in sales. In the Unit-ed States, the department store Lord & Taylor has 48 units and C$1.4 billion in sales. HTT

NE W YORK — Iconix Brand Group Inc. has offi cially complet-ed its acquisition of the Umbro brand, as well as related intel-lectual property assets from Nike Inc., for $225 million in cash.

The purchase price was fund-ed with the Iconix’s recently an-nounced $600 million securitized fi nancing facility.

“We are thrilled to be adding Umbro to our portfolio of iconic brands,” said Neil Cole, chairman and ceo, Iconix. “In addition, we believe our ability to secure fi-nancing at an attractive price highlights the strength of our brands and our business model.”

“Acquisitions remain a key focus for our Company and with our new securitization in place we believe we have signifi cant fi -nancial fl exibility and are well po-

sitioned to continue to grow our business and execute on our ac-quisition strategy.”

Founded in 1924, Umbro is the original global football (soc-cer) brand, and today it combines its British heritage with a modern football lifestyle to create iconic sports apparel and footwear.

Cole noted that Iconix owns 29 consumer brands in the fash-ion, athletic, electronic, home and entertainment industries. “With this acquisition, the com-pany’s brands will generate ap-proximately $13 billion in retail sales globally, with over $2.5 bil-lion attributable to the Compa-ny’s portfolio of athletic brands,” he summed.

Iconix’s brand portfolio in-cludes Cannon, Royal Velvet, Fieldcrest and Charisma. HTT

Iconix Seals Deal With UmbroHudson’s Bay Co. Closes

C$365 Million IPO

htt121202_062_063 63 12/13/2012 1:23:30 PM

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December 17, 2012

work of reference that will be a fi rst-class source of inspira-tion and guideline for the international sector,” said Olaf Schmidt, vp of textiles and textile technologies for show or-ganizer Messe Frankfurt.

At the fair, which runs from Jan. 9-12, the trend themes will be visualized in an exhibit in Forum 0.

The Eccentric“His passion is for extravagant discoveries combining

timeless qualities with decorative character,” according to the Trendtable.

The trend embraces unique items, curiosities and “orig-inal articles distinguished by exotic or ethnic infl uences.” At heart, it’s all about items and motifs that are tradition-al and authentic.

The result is elegant design that appeals to a modern-day Dandy or Bohemian: hand-colored silk, lustrous artifi -cial snakeskin, upholstery fabrics inspired by suit fabrics or oriental jacquards.

“In his home, we fi nd patterns with ethnic blossoms. The wall coverings take their inspiration from textiles. The dominant colors have an Asian touch and interact in an ex-traordinary way,” the Trendtable noted.

The HistorianThis trend is about honoring tradition by bringing the

past into the present and is characterized by “fi ne products distinguished by superior craftsmanship.”

The infl uences look back particularly to the late 16th and the 17th Centuries, where art and craftsmanship were

highly prized. “Thus, textiles with a layer look are part of this, as are net

fabrics and artistic embroidery,” said the Trendtable. “A va-riety of different techniques and materials, from lace-mak-ing to laser cuts, reveal not only the broad spectrum of his-torical but also of future-oriented arts & crafts.”

Shimmering gold, bronze and copper are important here, as are refl ections from material surfaces. Colors in rooms tend to be subdued “and dominated by mysterious shadings.”

The GeologistThis trend draws from elements of the earth and nature,

especially irregular geological surfaces.Natural structures are updated with colorful marl aspects

and winding patterns, as well as rough graininess, bark-like textures and rustic leather, skin or natural cork.

“Blotch effects bring otherwise sober surfaces to life,” said the Trendtable. “Broken, mysterious brightness fl ash-es from the materials. The color series refl ects the enigmat-ic dark side of nature. Intensive colors are rounded off by shades of virulent intensity and metallic luster.”

The InventorCombining function with fun, wellness and pleasure are

keys to this trend, which seeks out “undiscovered worlds full of marvels and adventure.”

Fabrics are sensuous and tactile; they sway and fl utter. Ornaments are fl owery. Constructions include upholstery fabrics, openwork weaves and meshwork.

“Foamed textiles create an airy depth and give rooms and furniture a new look. Technical veils, iridescent fi lms and latex are also used. Feather-light constructions play with light and refl ections,” according to the Trendtable. “Lively colours ensure extraordinary contrasts and awaken curiosity.” HTT

TRENDS FROM PAGE 1

Heimtextil Trends

The Historic trend emphasizes craftsmanship.

The Inventor trend is colorful and adventurous.

Elemental textures are important in the Geologist trend.

htt121202_001_006_064 64 12/11/2012 3:20:25 PM

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