Supplier Giants

base.

pared back on coordinated bath accessory displays.

department store and specialty chain channels; gained placement for

free-standing programs.

department store level; focused on free-standing, more generic looks for

broader cross-merchandising.

programs.

consolidation of the department-store channel, where bath accessories has long

had a sizeable presence, the top five players stood to lose some important

business. But they found a balance with new placements at home textiles

specialty chains and some discount stores.

persisted in favor of free-standing and generic looks vs. the once-popular

full-coordinate groups and novelty themes.

existing channels; experienced steady business for its growing imported

offerings.

consolidated domestic production into a single facility.

higher retail tiers, including department stores.

accessories line; tapped traditional accent rug customer base; and emphasized

natural fibers for higher-end customers.

natural fiber bath rugs were a bright spot of category sales for these top

suppliers. Most players attribute these goods, made of cotton, bamboo, and some

organic fibers, for part — if not most — of their sales increases. The

higher price points they carry helped boost sales in an environment where

little shift was otherwise felt.

better quality goods at retail, these suppliers are preparing to further expand

natural fiber offerings.

with Indus Dyeing & Manufacturing Co. for production of towels in

Pakistan.

direct-import business out of Brazil lagged due to unfavorable exchange

rates.

elimination in 2005, landed new programs and expanded existing channels.

coming on line in 2007 at its facilities Pakistan and Bangladesh.

at Kohl's and upcoming Oscar de La Renta debut this autumn.

shutdowns continue in the United States as off-shore leaders — including

Welspun, which makes its first appearance on the Top 5 — picked up more major

direct-to-retail replenishment programs. In an effort to break out of

price-only grids, suppliers introduced an array of new fibers and

technologies.

fashions, notably automatic blankets, with retail promotions fizzling and

stockpiles bulging.

but growing demand for cotton thermals picked up some of the slack.

Owen Jr. and Charles Owen III leave as the business blends into Springs' basic

bedding unit under Harvey Simon.

million in total sales — using packaging, marketing, and impeccable service.

builds a new franchise in decorative home with clean, contemporary looks.

the top of the heap had the toughest going in 2006, with core products slowing

down, notably Vellux at WestPoint Home, and automatics at Sunbeam, hobbled by

warm winter weather. Nipping at their heels and making gains were smaller

players like Berkshire and Pendleton, who leveraged fresh designs and polished

service into strong sales, meeting little resistance to their higher price

points.

others as it reorganized following its merger with Coteminas.

steam as key accounts added newer house labels to their mix.

some of it by design as it narrowed focus to pursuing more profitable

business.

was relocated from the U.S. to India.

brands like Croscill, the company is producing private label for its better

customers.

smaller, off-shore start-up players gained traction last year in the comforter

category, a business now largely driven by sets. As the sets themselves got

bulkier — some with up to 28 pieces — pricing pressure on traditional

comforter sets grew even more fierce.

room-darkening interlinings, found a receptive consumer, especially in the

second half of 2006.

segments; meld of FIT-educated designers and China-based production working

well.

following its merger with Coteminas.

at a major account; layering continued strong; re-designed hardware program had

good start.

foreign plants. New store and non-store customers boosted sales; licensed

program is set to debut.

indicated with some enthusiasm that the market is in a fashion cycle, with

retailers well aware that some consumer segments are stepping up average

purchase prices as they buy into better fabrics, more elaborate trims and

accessories, and other features that satisfy the nesting trend. With off-shore

production a given, suppliers will watch carefully how China responds to calls

for re-valuation of the yuan.

pillow line; maintained core pillow business

particularly discounters, reduced shelf space for the category and imported

much of the remaining programs.

business at retail.

eliminated select unprofitable retail programs to concentrate on placements

with key retailers.

offered more competitive price points; boosted business with new pet bed

line.

said they saw retailers' direct importing activity for the category level off

in most channels, except at discount department stores, where the category is

quickly shrinking and the little left is heavily focused on private label

goods.

was the pet bed trend, which ticked way up last year and created new business

– in many cases with atypical retailers like pet supply stores.

down alternative items. Cannon program also key.

placements; product innovation continues to provide margin opportunities.

warehousing grew; adding surface features to improve down alternative

margins.

better synthetic fills commanding strong price points; Royal Velvet gains

placements.

print-driven down alternatives goods; unit sales outpacing dollar volume.

increasing demand for down-alternative products made a powerful impact across

the marketplace, generally dampening price points. Suppliers found that this is

not always the case, however, as both fashion on the outside and

special-feature fills can provide value-added offerings that consumers will

embrace.

it is also finding growth with its emergent foam mattress business

enhancements and target better channels of distribution.

the department store and Internet channels.

addition of some new accounts.

consolidation. Bright spots included unique constructions combining different

foams for enhanced comfort at velocity price points.

of Hurricane Katrina in 2005 pushed up price points in raw materials, which

many retailers accepted. The amount of shelf space devoted to the category by

volume retailers appears to have topped out, pitting suppliers in a battle for

shelf space and innovation. At the same time, suppliers are looking for

additional retail niches to accommodate product.

expanded distribution under proprietary retail brands.

customers.

level; maintained core business of basic programs.

strong sell-throughs; licensed programs with Echo and Jonathan Adler added

kitchen items.

categories, particularly beach towels.

year's two biggest winners – Town and Country and Elrene, both of whom newly

made it into this chart over the past two years – a driving force proved

branded programs with designer labels. In the former's case, it pushed Town and

Country's ranking up a notch to second.

private label offerings also remained important in maintaining sales. But

retailers continued to direct-import many programs, suppliers agreed.

major initiatives set for Feb. market to revive this stalled

classification.

on 2007, with waterproof segment providing growth opportunity.

and comfort-based products key to marketing push.

seeking "nesting" solutions; higher prices continue to check well.

have turned to new design offerings, luxury versions with high thread count

toppers, and related ways to "romance" the category. Brands also have a major

role in some cases, such the Sealy license by Pacific Coast Feather.

experienced steady business for its growing line of imported offerings.

sales at discount department stores with accent rug programs, made in a variety

of constructions.

and at home centers with woven area rug programs.

discount and mid-level department stores; overall sales remained steady.

created Springs Global – spun off instead to C.S. Brooks.

retailers, particularly at the discount department store level, early on

discovered it was not going to be easy to directly source their floor

coverings. So the doors have been re-opened to top suppliers to again supply

key programs.

products at the mass merchant level proved unsuccessful for these retailers.

This created renewed interest in synthetic and domestic products from major

suppliers.

Springmaid remains the only national brand in Wal-Mart's sheet department.

and walked away from some other programs it felt would be unprofitable.

thread count replenishment programs driving the business.

walking away from the middleman.

the company leveraged those relationships to ramp up its sheet business.

counts continued to drive the sheet category, with 400-count becoming the new

300-count, and 600s making the leap from department stores to mass market

shelves. Domestic sheet-making operations were pared further. Meanwhile,

off-shore capacities exploded.

curtains.

base.

pared back on coordinated bath accessory displays.

chains; and expanded free-standing offerings.

and gained new business at the discount department store level.

preserving a stronghold at the top for several years, Allure slid down one

notch to make room for Ex-Cell's new claim as the No. 1 shower curtain

supplier.

business, the shower curtain industry found itself focused on basics and

free-standing, generic looks.

needs and provides solutions for health concerns.

category; Sealy and other brands also exciting consumer interest.

reorganized following its merger with Coteminas.

key volume price points; new efficiencies will boost down alternative

segment.

businesses, bottoming out and leveling off in the second half of the year.

found an expanding base of consumers who badly need a good night's sleep —

and are counting on feature-packed pillows to help deliver it. Technological

innovations are proving supportive of price point advances, as long as the

health and comfort benefits are clearly spelled out to shoppers. Two of the key

suppliers however, have suffered from the inevitable market dislocation caused

by ownership changes.

discounters; offered designer goods to coordinate with kitchen lines.

for Jonathan Adler and Echo licenses and for proprietary and exclusive

brands.

seasonal; Lenox license thriving; Liz Claiborne program gained new

accounts.

retailers.

case with sister category kitchen textiles, the table linens category leaned on

designer brands and some private label exclusives to buoy results.

sourcing activity for this category, particularly for the seasonal aspects. A

major discount department store scaled back some of its inventory in the

category and sourced much of what remained, hurting some suppliers.

helped sales.

on the strength of a diversified line of licensed product, including sports and

novelties.

diversify as it steps up off-shore sourcing and targeting product to the gift

trade.

footing when the jacquard segment collapsed; now seeking the right decorative

niche.

top spot in the U.S.; bolstered core line with textured looks and beach

blankets.

Five, leveraging multiple strengths in fleece, creative packaging, and

innovative marketing.

the continuing turmoil in the throw business, three of five largest players

lost ground in 2006, in part because of rampant price deflation at retail,

which continues to pressure margins — forcing some players to turn their

backs on unprofitable accounts as they decide the bottom line counts for more

than the top line.