SUPPLIER GIANTS

base.

market, and movement of programs to retail-direct sourcing.

N.Y.

experienced flat or slightly lower sales with existing retailers over prior

year.

material price hikes with alternative constructions.

number of full bath coordinates as prior year.

an oil-based material, long being the dominant construction for bath

accessories, category players looked to keep their numbers steady by

diversifying their lines with other materials to offset costly raw material

prices. More affordable materials, like wood, metal and ceramic, made comebacks

in the place of resin over the course of the year. Also buoying the category

was an increased demand for stand-alone collections, independent of coordinate

shower curtains, towels and rugs. The result: a combination of flat or slight

gains among the top five players last year.

synthetic line; built retailer-specific programs. Expanded luxury lines with

natural fibers, like bamboo.

Velvet program, and expanded presence with existing retail customers.

cotton and cotton-blend varieties, thicker, heavier constructions; Shaw branded

offerings expanded.

gained momentum and developed new programs in the category.

material cost increases, mixed with some price deflation, created obstacles for

bath rug suppliers in 2005. Yet most of the top five players pulled through,

increasing sales, even if modestly. Synthetic varieties were prevalent but

cotton and cotton-blended constructions became more important to consumers,

helping suppliers offset some added expenses stemming from oil-based cost

increases.

programs directly themselves from overseas manufacturers.

replenishment towel programs, gave back a chunk of the business it had picked

up earlier from Pillowtex.

maintaining a U.S.-based manufacturing platform.

goods; other movers: solid color towels priced at $9.99, seasonal products,

jacquards at all price points.

off slightly in sales at the mass merchant level. Saw success with its jacquard

offerings.

spent the year battling against direct importing activity by retailers.

Wal-Mart, for example, announced it would vastly grow its direct importing

activity in bath towels and other home textiles categories. New product

innovations and higher-end constructions helped keep the category interesting

and maintained price points; some firms posted sales gains. 1888 Mills expanded

its global presence and the effort paid off. J.R. United diversified its

offerings in product and price point, benefiting the company's sales.

heating oil prices, which rattled consumers and provided fresh opportunities

for stores.

pressure, but were reinforced by microfiber raschels and continued gains in

automatics.

of Springs Swannanoa, N.C.

in response to retail demands for lower prices. Fleece continues to make

inroads into the market.

upstairs version of the core fleece blanket. Liz Claiborne and Nautica licenses

gained, notably Nautica in wool.

looks, and at the same time plays to strength with its core Native American

motifs.

remained a tough sell, as they have in recent years, as the continued

commoditization of solid-color product designed for the mass market put

pressure on dollars, if not necessarily units. But the product got something of

a lift this year when gas and home heating oil prices caught fire, forcing

retailers and consumers to take a fresh look at what had been a stagnant

category.

pressure on sales, moved quickly to pick up business that rival WestPoint

walked away from.

from direct sourcing and pricing declines.

across multiple brands and retailers.

shipping on newer lifestyle brands in late spring.

sharper price points and global sourcing.

conditions remain difficult for most in the comforter category as price

deflation and Asian imports continue to erode business away from domestic

manufacturers. Other issues plaguing the category include retailers sourcing

direct, reverse auctions, bed-in-a-bag business and increasingly sharper price

points.

price-point erosion and increased direct-to-customer business in Asia.

Joint-venture factory in China provided lower-cost goods. Uses design assets to

diversify product offerings.

category.

flat to up over the same period a year prior. At retail: solid product

placement across lines and distribution channels.

suffered from price deflation. However, Internet and catalog were bright

spots.

combination of retail-direct sourcing, price deflation and retail consolidation

once again took a bite out of the top line for leading soft window producers.

Some reacted by expanding window hardware, looking to regain space in the hard

lines side of the window department. Volume curtain retailers continued to

flesh out self-branded and house-branded programs; and although top suppliers

furnish some of those programs, the house brands battled supplier labels for

primacy.

sales soar in 2004 when it launched at retail.

store.

fashion imported products. Experienced declines in core tapestry

offerings.

programs.

placement with core customer base.

retailers, particularly discount department stores, grow their direct importing

efforts for the decorative pillow category, suppliers are paying the price in

their sales results. Almost all reported declining sales. They are fighting for

shrinking available shelf space, and face depreciating price points that have

gone down about 25 percent for higher quality products. For the players that

traditionally relied on domestic product, imports are becoming more important

to stay competitive. Those who have always imported continue to do so in a more

competitive landscape overseas.

the prior year; in the core business, moderate to better goods were strong and

opening price point goods slow.

hospitality trade and retail stores. Down Lite also saw continuing strength in

luxury down alternative-filled goods.

year while pushing higher-end domestic merchandise.

Fla.

year, reducing the company's sales in the category.

program rolled out mid-year at Federated, which offset some softness with

another retailer.

prices on raw material and finished goods as well as less retailer interest in

down products, allayed to costs associated with the avian flu, significantly

impacted the category. Many retailers cut back on down products last year as a

result of these combined issues. On a positive note, the down alternative

business has been strong and trending up. Interest in solid-color programs

continues to plateau, prompting a move to introduce more fashion-oriented

customers to the category.

N.J.

Innovations, which continues to open new retail accounts.

channels of distribution for its foam products, even though mattress sales are

not reflected in these numbers.

growth with online retailers and deeper penetration with the big boxes.

over-saturation; mergers and consolidations among retailer clients put

assortment decisions on hold.

customers; increase also impacted by dramatic raw material costs that affected

pricing in the fourth quarter.

increasing interest in the category at retail this year with more and more

companies getting into the topper business. Some prices tumbled on certain key

products such as contour pillows as competition heated up, primarily at mass.

Unprecedented raw material increases since August played a significant role in

the category — causing the price of finished goods to go up and impacting

top-line sales in the final part of the year.

with a focus on private-label programs.

Conshohocken, Pa.

had reported sales of $18 million); expanded placements; gained business with

new accounts.

Dreyfuss and Cecil Saydah International.

Barth & Dreyfuss and Cecil Saydah. Expanded licensed Jonathan Adler and

Echo programs into kitchen.

discount department store; and entered Max & Lucy license program at

various stores.

absence early in the year of two major forces in the table linens category —

longtime number one company Barth & Dreyfuss and 2003's third largest

supplier, Cecil Saydah International — the kitchen textiles top five list

found itself with two vacancies.

Bedding's mattress pad business has subsided to approximately five percent

above 2003 levels.

competition; made additional progress due to a strong domestic market.

the company also picked up some business that other brands lost when they

migrated to mass.

has boosted business in better goods, off-setting pricing pressure in the mass

market.

Fla.

developing more innovative, higher-end products.

continues toward providing tangible benefits with an emphasis on functional

features and performance, as opposed to constructions. In addition, suppliers

are seeing a trend of mattress pads working with toppers for added sales:

consumers are using one to protect the other as toppers work to enhance the

sleep surface. Furthermore, thread counts have gone up with dobby and jacquard

weaves. Prominent distribution issues included key brands migrating to

lower-tier distribution channels.

new accounts, more penetration with current customers, and significant

expansion in direct-imports.

categories, retail consolidation, particularly at department stores, has

squeezed sales.

units remained consistent with last year.

company maintain and grow some market share.

category as a whole has been down-trending in terms of growth. Retailers have

lost significant interest in traditional quilts, while modern and contemporary

styles that can serve as layering components to top of bed are still strong.

The emphasis continues on bed coverings that can transition from quilts to

comforters, as well as higher-end products with quality fabrics such as cotton,

chenille, velvet, silk and jacquards.

in mid-tier and specialty. Built sales in tufted and woven goods; less success

with printed rugs.

discount department store; and enjoyed continued success with woven rugs.

shags but a slight decline in orders for solid olefin varieties.

refocus on major mass merchants and home specialty chains — a smaller, core

retail customer base than in the past.

Coteminas while exploring a possible sale to the competition.

waged for business at the mass merchant and home center retail sectors among

the top five players in 2005. At the mid-tier and specialty store level, the

wealth was spread out more among suppliers. In terms of product, it was a good

year for woven rugs. Category-wide, the first half of the year saw flat to

limited sales increases. The second half offered suppliers new opportunities

and had better results, balancing out final results.

walked away from because of margin concerns.

product themselves, coupled with WestPoint transitioning its operations toward

more global sourcing.

major retail accounts and launching larger programs in better goods, jumping

the company up a rung to No. 3.

accounts; also has been supplying better-quality goods to broader distribution

channels.

spurred increase, along with juvenile and adult bedding.

category remains under pressure from retailer-direct programs. Global

competition has been heating up mainly from China, India and Pakistan, where

new manufacturers from other areas have entered the business. The industry has

been abuzz with alternative fabrications and finishes, creating new

opportunities and consumer interest. Retailers are also realizing that it's

not just thread counts but yarn quality and finishing techniques that produce

better goods.

base.

vinyl varieties and stepped up line of freestanding shower curtains.

market customers brought production of more commodity goods in-house.

retailers; enhanced freestanding offerings; continued success with

private-label programs.

N.Y.

decline was compensated by the liquidation of obsolete inventory with

substantial discounts.

shower curtain suppliers were lucky to post flat sales in 2005, a year when

retailers across the board stepped up their direct importing activity for the

category. Over the course of the year, suppliers – including smaller ones not

on this top five list – noticed mass merchants, home specialty chains and

department stores establishing offices in India, China and elsewhere to import

bath accessories and shower curtains themselves. Among the top five only Maytex

Mills could boast a major percentage increase in sales. Ex-Cell Home Fashions

also enjoyed some growth. In both cases, freestanding products helped them make

strides.

Fla.

quality, comfort-driven pillows.

Coast-branded products; also the Sealy brand scored a great year in sales

growth.

its most successful operation by pursuing higher-quality, higher-price parts of

the retail business.

unprofitable businesses in the category.

pillow business stays level despite skyrocketing polyester pricing;

back-to-school business was strong.

sleep pillow suppliers saw business improving in the non-foam categories as

down alternative and down and feather fills have been taking back some of the

spotlight away from foam, due to raw material cost issues and some

over-saturation in the lower priced channels. The focus was on distinct,

functional, performance-based benefits with a trend towards providing tangible

features as the consumer seeks better quality products.

new products such as chair covers; and gained placement with new and existing

retail customers.

strides with its Jonathan Adler designer license; and expanded coordination

with kitchen textiles.

micro-fiber products were popular; and the Lenox branded line continued to be a

bright spot.

with the Max & Lucy license.

on its seasonal offerings.

case most every year, it was largely due to licensing that table linens

suppliers saw healthy sales gains in 2005. Town and Country and Elrene Home

Fashions hooked on to designer brands to motivate shoppers, respectively Nicole

Miller and Echo, among others. Avonhome banked and continues to lean on Max

& Lucy to attract attention and build the company's product roster. And

Bardwil had Lenox to thank in part for a good year. Seasonal goods are still a

key component of the category, as Ex-Cell discovered. And cross-pollination

with kitchen textiles is another motivation for shoppers to coordinate with

table linens.

focusing on its core license business and taking sole possession of the NFL

license it once shared with a rival.

N.C.

sourcing and will continue to focus on quick shipping for fast turnaround to

key customers.

lost its footing after collapse of cotton jacquards. Sales fell in 2005 after

26-percent drop in 2004.

license to its larger rival, The Northwest Company. It also decided to jettison

some unprofitable, low-end business.

Phoenix, but with a currently limited customer base: two big off-price

retailers are the key buyers.

another tumultuous, challenging year for the key throw producers — and making

that point the hardest way possible, three of the top five lost ground during

2005, recording sales declines that ranged from minor to major. Price deflation

continued to take its toll, forcing some to walk away from big accounts rather

than take a beating on margins. Ever evolving, a new variation is rung into the

category with the growth of down and down-substitute throws showing up in

traditional throw sizes, admitting Phoenix Down into the top five, displacing

Brentwood Originals.