Furniture show opens in Las Vegas

Except for a couple of small signs with the name of the new parent company, nothing at Monday's opening of the World Market Center's semiannual furniture and furnishings show hinted at the huge changes in the industry in recent months.

After six years of pitched battles for exhibitors and buyers, a $1 billion deal in May brought both the Las Vegas complex and several major market centers in arch-rival High Point, N.C., under the common ownership of International Market Centers. But with the competition that brought both sides to their financial knees now replaced by cooperative planning, exhibitors at the massive home furnishing and decor show say they don't see much difference.

"I have not noticed any changes so far," said Pamela Donnellan, a representative of Roost, a furniture and decorative items company in Sausalito, Calif.

But this may be the last market where that's the case.

International Market CEO Robert Maricich said he recently retained a branding consultant who could recommend, among other things, changing the World Market Center name and relabeling buildings that now go by the prosaic A, B and C. That could be in place as early as the next market, in January.

Identity is just one component of a broader strategic overhaul set in motion by the new majority owners Bain Capital Partners and Oaktree Capital Management, who now control 18 buildings with 11.5 million square feet in the two cities.

"These guys didn't invest $1 billion just to do things the way they were done in the past," said Maricich.

A major focus, he said, "is how do we create value for our customers."

The local market complex includes three showroom towers with 5 million square feet.

In the past three years, retailers have sent fewer buyers for shorter stays as a way to cut costs in a slow economy. That, in turn, has caused the exhibitors to rethink how much they should spend to impress buyers. Many manufacturers lease space in the buildings year-round, although the buildings are dark except for the semiannual, weeklong markets.

If Maricich puts out a suggestion box on how to create value -- and company officials have talked to many in the industry -- he won't have any shortage of suggestions. Reflecting on the cost of attending four markets each year between the two cities, Michael Heath, national sales director of Chandra Rugs, would like to see the schedule cut back.

"We have to be at both places, plus Dallas, New York, Atlanta and the list goes on," he said. "I would hope that one direction they are looking is perhaps dropping one of the (Las Vegas or High Point) markets."

But others take the opposite tack. Donnellan noted that companies such as Roost, which frequently changes its lineup of decorative items, need the extra exposure.

"I can see why the furniture vendors would and that," she said. "We are very seasonal, with different products every season. We need to meet with buyers."

Decorative items account for about one-third of what is shown in Las Vegas, said Maricich, following a push to diversify from a heavy reliance on big furniture.

Jonathan Wu, owner of CF Oakton, currently has a showroom only in Las Vegas.

"I think they should 'incentivize' people who are in one place to be in both," he said. "And, hopefully, they can take some of the Vegas pizzazz to High Point."

But one fact of Las Vegas life Michael Zippelli would just as soon not deal with is summer. In addition to working around vacations in August, Las Vegas heat is also a deterrent, he said.

"Your best seasons here are spring and fall," he said.

However, High Point has taken those times and Zippelli, the CEO of sleep products company Classic Brands, doesn't like the idea of shows bunched together on the calendar.

"Maybe you really only need three shows," he said.

Maricich said advance bookings for the market ran 9.8 percent ahead of last year's, which was described as weak by vendors. Typically, the markets draw about 50,000 people.

Contact reporter Tim O'Reiley at toreiley@review
journal.com or 702-387-5290.