Volume 7, Issue 46
November 18, 2009

In This Issue:

Quick Links:

1. Editor's Welcome

2. In The News
3. A Perfect Storm

4. Press Release

 5. Article Archives
 6. Book Club

 7. Retail Store Directory
 8. Premier Store Coupons
 9. Online Shopping Links

"I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel."
-- Maya Angelou

 
Welcome from the Editor

Jami pictureMovies help us escape from our everyday lives, but Hollywood endings are not necessarily reflective of the "real world". In most cases, however, movies about true events can make a lasting impression on the viewer because we are able to experience the event alongside the characters. This perspective can help us get past assumptions and biases we may have otherwise had. Dennis Conforto can relate to this, he hasn't been able to forget the movie, A Perfect Storm. In this week's article, he compares the scrapbooking industry with a tale of this fateful trip, based on a true story.


Jami Petersen
newsletters@a-z.com

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In The News

News you can use about the latest media coverage of hot trends, noteworthy events and dynamic industry leaders. Learn more about the current headlines in arts and crafts by clicking on the title of each article segment.
 


 

Geelong's Kaisercraft makes BRW's Fast 100 List. "The Breakwater company, which designs and manufactures craft and scrapbooking products, experienced average 52 per cent growth in the past three years to rank 64 among Australia's fastest-growing small to medium businesses. Stephen Kaiser said the secret to success was persistence, having the right people and a more focused approach to integrating design, manufacturing and product development components of the business."

 

Turning Pages transforms old, damaged books into works that help kids learn to read. "Sally Berry, director of Turning Pages, the Grand Rapids Reading Institute, uses her scrapbooking skills to recycle old, damaged books into new word books. The economy is forcing many to figure out ways to get by with less, and creative types like Sally Berry seem to thrive when faced with this challenge. She explained that she and her staff of 15 reading tutors were converting the damaged children’s books into word books using scrapbooking supplies, images ripped from old magazines, decoupage medium and letter stickers."

 

A.C. Moore Reports Third Quarter 2009 Results. Sales for the third quarter of fiscal 2009 were $106.1 million, compared to sales of $116.7 million during the third quarter of fiscal 2008. Sales were impacted by operating two fewer stores than during the same period in 2008 and by a decrease in comparable store sales of 7.7%. Pre-tax loss for the quarter was $12.9 million, compared to a pre-tax loss of $4.4 million for the quarter last year. In the third quarter of 2008, the Company recorded a valuation allowance against the net deferred tax asset which resulted in income tax expense of $3.1 million, or $0.15 per share. Net loss for the quarter was $12.9 million, or $0.53 cents per share, compared to a net loss of $7.5 million, or $0.37 per share, for the comparable period last year.

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A Perfect Storm

dennisAbout nine years ago Hollywood produced a movie called The Perfect Storm. It was the story of a captain and his crew looking for the perfect catch—the kind of catch that would allow them to pay off all their debts and take it easy for a bit. As fate would have it, they are lucky enough to find the perfect catch but unlucky enough to find it in the middle of a truly gigantic storm.

As the crew gleefully hauls in their massive load, they only see sunshine and smooth waters, but the raging storm is quickly closing in on them. To make matters worse, they lose contact with the outside world because of a broken radio antenna. It looks like clear sailing to home port, so they are clueless about their impending doom. But soon the storm is upon them. They do everything they can to lighten their vessel. The perfect catch that day quickly means nothing to any of them—now they are fighting for their very survival.

I hope I'm not ruining the ending for anyone but the heroes did not make it out alive. It was based on the true story about the sinking of the Andrea Gail in 1991. Unfortunately, in real life, the heroes don’t always make it. Why would I bring up The Perfect Storm? Because what we are facing in the scrapbooking industry is the perfect storm!

The scrapbooking industry enjoyed unprecedented successes for quite some time, with sales doubling every year. It was, in effect, the perfect catch. And while nobody was looking, the storm gathered around us. First, it started tipping over some of the smaller boats. These small, independent retailers did not stand a chance because they didn’t have a radio to get the warnings. Then it started making life rough for some of the bigger boats, which eventually capsized because they never turned on their radios. Now that we are deep into the storm, many have their radios on; however, their antennas are knocked off and they can’t hear the message of how to get to safe harbor.

Let’s review some of the messages and warnings that may have been missed:

-Too much new product and not enough new consumers
-Too many trade shows and not enough revenue to support them all
-Too much dead inventory and not enough cash to pay for it
-Too much talk of competing and not enough talk on cooperating
-Too many manufacturers represented within a single store and not enough strong manufacturer/retailer partnership programs to promote brands
-Too much advertising spent on the converted and not enough spent to convert
-Too much focus on the craft-only consumer and not enough focus on other non-traditional consumer groups
-Too much focus on margins and not enough focus on turn rates
-Too much focus on free and not enough focus on profits
-Too much focus on only the consumer market and no expansion into huge markets like corporate scrapbooks, etc.

 

Those were just some of the many messages or warnings over the last few years. The few who got the message have moved their boats from the center of the storm to the outskirts, but they are still in the storm.

Unlike the movie, all of our boats are tied to each other. It has long been my feeling that when one of us fails, we all fail. It’s not enough that some of us get the message; the majority has to get it if the industry is going to survive. When you see an industry where all the data points show a potential 15 billion dollar industry yet it sits at 2.5 billion, we need to take notice. But when it continually slides backwards, we have to acknowledge that something is really wrong and we need to change.

Many CEOs and owners within the scrapbooking industry will have to make some tough choices. One choice is to stay the course and hope we can all weather the storm. Those who so choose see scrapbooking as just another dying fad within the craft industry. The other option is to change our course, get out of the storm, and follow the money trail toward a place of great rewards.

I am going to do everything I can to move our industry from the storm into the sunlight, from treading water in rough seas to making profits in calm waters. I know we can step up the education of the industry tenfold and we are going to do it. I know manufacturers and retailers can have better and more powerful partnerships and I will prove it. So hang on to your hats, because that's what being SMART is all about.    

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Press Release: Anna Griffin Joins HSN’s Growing Crafts Business  

Award-winning designer and paper personality, Anna Griffin has made her HSN debut with the launch of her brand new show, Anna Griffin Designer Paper Crafting. Celebrating memories with beauty, charm and sophistication, her HSN-exclusive collection is made up of themed scrapbooking and cardmaking kits, lovely papers, embellishments and stylish craft storage accessories. All boasting elegant finishes, antique imagery and fashion-forward color palettes for a total couture experience.

Featuring an array of papers, embellishments, and crafting accessories, each is designed by Anna Griffin to celebrate memories with elegance and sophistication. Also offering a line of hip storage solutions, Griffin takes crafters on the go, with a runway-ready line of fabric accessories.

Known for her modern take on old-world style, Griffin has graced the crafting runway for 20 years with her flawless designs. From beautiful botanicals to animal prints, Anna Griffin’s elegant and sophisticated design style has captured the hearts of design savvy consumers around the world. Her unique collections are designed expressly to add beauty and charm to contemporary living. Griffin’s mix-and-match collections create a truly special experience and are perfect for recording memories in style.

“We have seen a tremendous transformation of our craft business recently and are thrilled to welcome Anna to the HSN family,” said Nancy Caplan, Senior Vice President of Home Fashions at HSN. “There is no one better than Anna Griffin at showing crafters how to make lasting memories for their loved ones. Her zest for life and unparalleled creativity is a valuable addition to our portfolio of crafting experts.”

“My collections are designed to inspire beautiful projects while capturing and creating memories in one-of-a-kind ways," said Anna Griffin, President of Anna Griffin Inc. “I am thrilled to bring these collections to HSN and join in their commitment to provide exciting, new products for people who love to craft.”

About Anna Griffin:
Anna Griffin made her mark in the wedding industry over a decade ago by developing one of the industry’s first ‘print it yourself’ invitations with a custom look. Today, Anna Griffin is a recognized authority when it comes to translating exquisite patterns evocative of old world style into modern, mix and match designs.

Anna Griffin’s signature collection includes, invitations, social stationery, home office and decorative papers. In addition, there are currently over 1,000 Anna Griffin licensed products in partnership with famous American brand leaders such as Lenox, Department 56, C.R. Gibson, Windham Fabrics, Burnes Home Accents, Wallies, Envelopments and Sterling Publishing.