Direct from Market: Chicago

By Meredith Schwartz -- Gifts and Dec, 7/24/2007 2:07:00 PM

July 24, 2007 — There are big doings at the Chicago Market: Living and Giving. The biggest news is the Merchandise Mart’s decision to revamp two floors of the four (floors 12 through 15) that comprised the permanent gift showrooms. The first big change is the unveiling of Market Square on floor 15, a hybrid concept which combines high-end gift, decorative accessories and home accents vendors with an increased furnishings presence. The goal, which the Mart calls “the bridge to luxury design,” is a set of resources open to both retailers and interior designers, particularly for everyday, between-market traffic. A ribbon-cutting on Friday morning was followed by an evening launch party. As showrooms located elsewhere that fit the Market Square mission move up to 15, some expanding in the process, the general gift showrooms currently on 15 are relocating down to floors 13 and 14. Notable Market Square exhibitors include OneCoast, CBK and Kenneth Ludwig Home Furnishings Ltd.

Market Square launch party

Gifts & Decorative Accessories caught up with Ludwig the morning after the party, and he told us “last night was very successful, exceeded my expectations” for sales in his much-expanded space. Some “people were scared, [asking] why is it so much furniture,” he said, “but we still have gifts, and there was a need for the designers and the more lifestyle retailer, too.” Ludwig says he doesn’t expect his gift customers to purchase a $4,000 sofa; he simply wanted to “create one look” in his showroom, “and let people pick and choose what they need out of it.”

On the Move
As part of the revamping process, Merchandise Mart Properties Inc. (MMPI) intends to redevelop floor 12 into market-time showrooms, an intermediate form of exhibit similar to the second floor of the MMPI-owned L.A. Mart. This will provide exhibitors with a more high-end looking exhibit space at market than an ordinary temporary booth, without the need to be open every day like the permanent showrooms on 14 and 15 or commit to a year-round lease. The space offers “showroom-like settings but with permanently open storefronts and permanent perimeter walls” according to a letter that was sent out from MMPI to the current exhibitors of the 12th floor. The letter went on to explain that they would need to relocate their showrooms (some of which had recently opened on 12) into vacancies on floors 13 and 14. Unlike the “permanent temporaries” on floor 13, floor 12 will be emptied between markets, giving the Mart the flexibility to use that space for other, non-gift markets and events. The remodeled area, tentatively titled The Galleries on 12, is scheduled to open for the January 2009 show. Thereafter it will be open for the January and July shows, but is not currently intended to be open for the spring and fall markets.

Joan Ulrich, senior vice president of MMPI, told Gifts & Decorative Accessories that she anticipates the lion’s share of floor 12’s current tenants, and certainly the anchors, will be able to be accommodated with permanent showrooms on 13 and 14. The rest will have the option of joining the temporaries, which Ulrich says will be good for the strength of the temps. And, Craig Dooley, vice president of marketing, gift and home, noted that they will also have the option of returning to 12 in the form of a market-only showroom once the renovation is complete.

One exhibitor on 12, Fred Downin, national director of sales and marketing for Meravic, told Gifts & Dec his reaction to the plan was “cautious optimism,” and Frank Ritchie of USA Margins, an exhibitor on floor 13, said “It means more traffic. It is better for everyone.”

On the Show Floor
An increase in traffic couldn’t hurt: while most permanent showroom owners reported steady and satisfactory business in the early days of the show, Gifts & Dec was not hearing the jubilant reports of exceeded expectations that we heard elsewhere earlier in the show season. The opening day of the temps was “a slow start,” according Karri Mehr of The Painted Garden, who spoke for quite a few vendors, “but who knows where it will be by Tuesday?” “The first day has been a little slow and the first day is usually the best day,” said Greg Howard of Village Square Music. However, later reports indicated that traffic picked up on Sunday and Monday, possibly due to buyer confusion of dates after January’s temps opened on Sunday.

The product trends in Chicago were consistent with those seen in other areas of the country: black and white, especially in damask and baroque patterns; a warmer, more natural tone to urban chic; and an increased emphasis on environmentally friendly design. Orange, copper, gold, pewter and bronze were strong in colors. In addition to these, and Chicago’s continuing emphasis on “Lake Living,” a waterfront and Midwestern take on the popular cottage look, we also noticed an increased presence of more colorful inspirational products, replacing the whites and pastels of previous seasons; abstract or animated animals, not just realistic or cutesy ones, on gifts for grownups and kids alike; and innovative accessories for today’s profusion of personal, portable technology. Look for more on products and trends seen in Chicago, in next week’s Double Take report.

Rocket USA

Stand-out debuts included Candyware, a brand-new line of “sweet” jewelry made from synthetic Chiclets and jellybeans; Art 4 Heart, t-shirts designed by a nine-year-old artist to benefit the Pediatric Cardiac Research Program at Children’s Memorial Hospital in Chicago; and Gus Fink’s Boogly Bunnies, a line of collectible art toys from Rocket USA which showed both in the temporaries and the Anne McGilvray showroom.

Hot Flops

Hot Flops novelty flip flops attracted a big crowd (as in Atlanta) and Russ Berrie & Co.’s new showroom saw continued success for the company’s Shining Stars line of plush with a Web component. “Shining Stars has been the hottest thing we’ve had since trolls,” said Russ Hines, senior vice president of sales for Russ Berrie. “It has represented an incredible amount of business.”

The Lang Companies teased us with promises of big changes for January 2008. In the meantime, their big news is new tip-on cards, a kitchen collection “expanding like crazy,” a new plastic covered, contemporary-looking organizer collection from its Avalanche division, and a newly reopened showroom at its Delafield, WI, campus.

Gift & Home Trade Association

Also on the move were retailers who got out in the temperate weather to take in the Gift & Home Trade Association’s well attended retailer forum and Retail Trolley Tour. After an hour in the Mart’s attached convention space, where members of the GHTA’s Retail Advisory Board covered best practices for engaging customers, selling psychology, visual merchandising, marketing and promotion, the retailers visited four Chicago stores: P.O.S.H., Multiple Choices, Zella Brown and Porte Rouge. Favorite tip: eavesdrop on customers until they say “they don’t have it”, and then “pounce.” Stand-out moment: Sherrie Ness, of Bates Nut Farm, giving a surprisingly literal demonstration of all the different hats an independent retailer wears in the course of running her business — though we’re not sure just which aspect of retailing the feather boa represents. Advisory board member (and Gifts & Dec contributor) Melissa Haberstroh also mentioned that the GHTA is planning a “buy local” campaign, scheduled to roll out early next year. (For more on the local first movement, see Home Field Advantage.)

Online
Meanwhile, technology impacted the market in yet another way: MMPI teamed up with Whereoware to launch a new electronic promotional tool for the July market (after testing it at 7W New York in January.) The tool allows individual showrooms to send offers and incentives to MMPI’s email list before the show at no charge, and encourages buyers to make appointments with the showrooms. Some 44 showrooms participated, and according to Dooley, many made as many as 30 appointments through the new contact method. The Mart plans to report more extensively on appointments and dollar volume generated by the electronic promotion in the weeks following the close of market.