Optimism high that furnishings industry benefits from collaboration

They say politics makes for strange bedfellows. But in the case of the new ownership that joins World Market Center Las Vegas and several of the major buildings in High Point, N.C., the fellows who make beds as well as sofas, tables and other pieces of furniture may find the joint effort anything but strange.

Since World Market Center's debut a little more than five years ago, the two markets for the home-furnishings industry have been rivals. Now, there seems to be optimism that together they can help revive the industry that has been nearly decimated by the economic downturn and dismal housing market.

"Hopefully, and every indication shows, that all corners are delighted that the battle is done and more can be done for the industry with collaboration and cooperation," said Robert Maricich, who has been named chief executive officer of the newly created International Market Centers. "Culturally, it's more of an armistice, a laying down of arms. The industry needs and is ready for it."

Last week, International Market Centers announced it has acquired all of World Market Center Las Vegas as well as 13 buildings in the heart of High Point. Maricich said the merger and acquisitions represent a $1 billion investment.

"We bought about 60 percent of the square footage in High Point," he said, adding "The important thing is we bought the premier spaces in the center of the market."

"It had been a long-held industry hope that the two markets' managements would change from competing interests, not serving the industry that keeps them in business, to a single supportive collaborative organization. It seems that is now happening," said John Conrad, senior vice president of merchandising of Powell Co., which is based in Culver City, Calif. "We hope IMC's written commitment, recently seen in the local High Point newspapers, will show itself in action over the next few months in freshening the show-building looks, driving more business to each show and building the image of our industry's products in the mind of the American consumer."

"This historic merger creates the possibility for a more unified, global arena for the home-furnishings industry to conduct its future affairs. It is widely anticipated that this merger will create a more efficient and effective environment for furniture buyers and sellers to further their respective businesses and interests in the years ahead," said Bill Colegrove, CEO of Phoenix-based aspenhome.

"It can be good that Las Vegas and two-thirds of the High Point are commonly owned," said Rob Sligh, president of the Michigan-based Sligh Furniture Co. "Bob Maricich is a good leader with experience in both markets. Appropriate spacing between markets can be maintained; scheduling conflicts like High Point premarket on top of (at the same time as) Las Vegas can be avoided. I hope the Las Vegas refinancing allows competitive exhibitor rates so the economics of reaching out to Western dealers makes more sense."

Maricich, who served as president and chief executive officer of World Market Center since 2008 and previously spent 11 years at Hickory, N.C.-based Century Furniture Industries, including as its president and CEO, feels he is uniquely qualified to head International Market Centers.

"I'm probably the only person who has worked not only in both places, but extensively in both places. I have the knowledge of how to build on the strengths of both locations and take the best of both locations and combine them."

Maricich said the plans are to continue the biannual markets in both cities, maintaining the January, April, July/August and October dates. And because statistics have shown that buyers are spending fewer days at trade shows -- 3.2 to be exact -- Maricich said IMC will "encourage everyone to introduce new product at every market."

"Ultimately the buyers will decide if its an East Coast/West Coast division."

He believes that owning showrooms in both cities will give IMC an edge and allow the company to offer a greater value to manufacturers. He said just the scale and scope of the operation allows them to expose product to a greater range of buyers, as well as draw upon more resources. It's possible there will be some type of incentive offered to those who show in both locations.

Although the markets are open only to retailers and interior designers, World Market Center Las Vegas houses the Las Vegas Design Center that is open to the public 50 weeks a year. Maricich said the design center will continue to operate as it does now and the concept may expand to some of the facilities in North Carolina.

"The design center is an integral part of the World Market Center brand. The offerings we have here, as it relates to market, is a daily market for consumers to see what's new. The real question is really whether we can leverage the design community in High Point. We may not be able to support a design center as such, but we can see it as a real valuable channel of distribution," he said.

Additionally, Maricich said he hopes to build on the concentrated efforts to focus on the gift and home segment at the Las Vegas facility with its show within a show. There also are other segments of the industry that are not represented, such as kitchen and bath, or underrepresented, such as flooring and textiles.

Also on tap for the new company is an in-depth branding and market study to determine the best course of action, Maricich said.

"We want to create a unique identity for International Market Centers properties," he added.