New York – Declared a national health emergency on Aug. 4, Monkeypox cases in the U.S. surpassed 10,000 this week.

The most common method of spread is through personal, skin-to-skin contact. Although less common, Monkeypox can also spread by touching fabrics such as clothing, bedding and towels that have been used by someone with the virus, according to the U.S. Centers for Disease Control (CDC).

Could this lead to a spike in demand for health & wellness home textiles similar to the one that grew out of the COVID-19 pandemic?

HTT reached out to manufacturers who developed targeted products during the COVID-19 outbreak well as producers of anti-microbial and anti-viral textiles treatments. Here are 3 things to know:

1. Monkeypox is not on the buy-side radar – at least not yet. While a few manufacturers said they are following the issue, those contacted by HTT said unanimously that none of their retail or hospitality accounts have been asked about it.
2. First things first. Should demand arise, the first logical step would be to test existing textiles treatments against the virus. However, those tests don’t come cheap. “A COVID test costs us about $25K to get done with our protocol. Monkeypox would be way more expensive,” said one manufacturer, who added that absent significant interest from buyers, testing is not worth the expense at this point.
3. Few consumers are worried about Monkeypox. Whether this is a matter of pandemic fatigue in the aftermath of the protracted COVID-19 era or simply because confirmed cases are relatively small in number, surveys have consistently shown that less than 20% of consumers are concerned about contracting the virus.

Of course, the home textiles industry already has a fleet of products available in the market that foster cleaner, healthier living environments. So if something changes, suppliers will be ready.

Shanghai – As China’s Covid-19 cases hit their highest level since May, the Intertextile Shanghai Home Textiles show pulled the plug on next month’s expo.

Scheduled to take place from Aug. 15-17, event was slated to combine the autumn edition of the trade fair with the spring edition, which had been posted earlier this year. Trade show organizer Messe Frankfurt (HK) Ltd. announced that the autumn edition is being deferred to 2023.

According to Bloomberg, Shanghai’s most recent pandemic outbreak is now stabilizing and most people who tested positive are already in quarantine.

“After holding discussions with our stakeholders, we have made what we believe to be the responsible decision to delay the fair. While the call was made with the safety of the fair’s participants in mind, deferring the fair to the early part of next year will also allow more time for fairgoers to plan for their participation,” said Wendy Wen, senior general manager of Messe Frankfurt (HK) Ltd.

Dates for the 2023 spring and autumn editions of Intertextile Shanghai Home Textiles will be announced at a later date.

“We understand that there is a lot of anticipation surrounding this fair, with exhibitors and buyers eager to connect in person,” said Wen. “We would like to thank all participants for their patience and understanding, and also to express our continued dedication to provide a quality international trading platform for the home textile industry.”

Related news:

Zest for life animates three 2023 textile trends at upcoming Intertextile Shanghai Home Textiles

Oakland, Calif. – As supply issues continue in Shanghai, the Port of Oakland reported a second straight monthly loss in volume for April.

The Port reported today that total volume through April dropped 7% from the same period a year ago. This follows an 11% loss in March. Containerized import loads through Oakland fell 17% in April, while exports sagged 18%.

The Port attributed much of the decline to factory and port shutdowns in China, Oakland’s largest trade partner. The Port said disruption at Shanghai, the world’s busiest port, is delaying U.S.-bound import shipments, and that wreaks havoc on ocean carrier scheduling.

“U.S. exports have been hampered by vessel schedules thrown into disarray in China,” said Port of Oakland Maritime Director Bryan Brandes. “Most of Oakland’s business depends on the Asia-U.S. trade route.”

The Port said Oakland said cargo flow has been affected by additional factors, including:

•  A drop in the number of ships stopping in Oakland
• Importers slow to retrieve shipments, thereby crowding container yards and slowing cargo discharge from ships
• A container shortage making it harder to load export shipments

The Port did say however, that it believes supply chain relief could be incoming. Shanghai cargo activity has recently picked up, and the Port is talking to shipping lines about increasing the number of Oakland vessel calls.

“The pace of cargo operations should accelerate as vessel schedules normalize,” said Brandes. “That’s welcome news as Oakland prepares for peak shipping season, which industry experts say will begin earlier this year. Retailers are likely factoring in more time for receiving their goods based on the shipping delays they have been experiencing during COVID.”

The Port of Los Angeles comparatively posted another huge month in April, its second biggest April in its 115-year history, after April 2021.

Related stories:

• Cargo volume finally falls at the Port of Oakland
• Ports on both coasts report a record March

The word “unprecedented” has gotten quite a workout over the past four years, and justifiably so.

This summer will mark the fourth anniversary of former President Trump’s tariffs on Chinese imports, a serious development that added costs to home textiles merchandise. Anyone who hoped the tariffs would be rescinded with the arrival of a new administration has thus far been disappointed.

Then came Covid-19, then shutdowns, then a boom in spending on home goods, then the colossal cock-up of the supply chain system, which is with us still. Now we have added a war in eastern Europe and inflation into the mix.

Each of these is a once-in-a-career event for any business, but we live in an era when one unprecedented disruption has cascaded on top of another.

Shifting through the plethora of prognostications and forecasts out there brings to mind that Schoolhouse Rock ditty “Conjunction Junction,” which advises us the “and, but and or will take you pretty far.” Because “and” and “but” are frequent qualifiers in the current environment.

The National Retail Federation last month reasserted its rosy forecast that retail sales for 2022 will increase between 6%-8%. The reasons: job growth AND wage increases AND strong household savings. BUT with inflation reaching a 40-year high AND strong consumer demand running up against restricted supply, the picture becomes more complicated.

There were more conjunctions swirling through a pair of Houzz surveys tracking residential renovation market activity.

Renovation activity this year looks healthy, with 55% of homeowners planning to renovate, 46% planning to decorate AND, for the first time since 2018, homeowners’ planned spend jumping to $15,000, up $5,000.

BUT professionals in the construction, architectural and design services sectors are tempering their expectations. Lengthy backlogs persisted in Q2 AND the pros worry future business may stall due to inflation, supply chain delays and rising costs for materials.

Similarly, consumer sentiment has become muddled. The April Consumer Confidence Index found that consumers’ short-term outlook for income, business and labor market conditions ticked up to 77.2 from 76.7. BUT their assessment of their present situation fell to 152.6 from 153.8 in March. Vacation intentions cooled BUT intentions to buy big-ticket items rose, AND purchasing intentions are down overall from recent levels.

Suppliers in every category of home textiles have reported that retail orders began falling off earlier this year. Raw material prices had been rising for months and freight costs remained high – and everyone knew that double-digit consumer spending on home furnishings had to run its course at some point.

BUT there is still hope that if inflation can be constrained, the housing market will deliver a few years of Gen Z-driven growth.

Dizzy yet?

MORE

NRF: Economy has ‘strong momentum’ despite challenges with inflation, Ukraine

Home renovation activity and spend hits four-year high | Houzz survey

Houzz: Home renovation, design professionals adjust business expectations from Q1 peak

Consumers lose confidence after moderate gains in March

Washington – The nation’s major retail container ports finally have an opportunity to deal with the backlog of cargo seen over the past several months, but it’s not all smooth sailing.

U.S. ports are likely to experience another surge this summer, according to the monthly Global Port Tracker report released by the National Retail Federation (NRF) and Hackett Associates. And the Global Port Tracker is projecting that August imports could set a new record for the number of containers imported in a single month.

Hackett Associates Founder Ben Hackett noted that volumes remained high in February despite factories in parts of Asia closing for the Lunar New Year holiday. This was because U.S. ports were able to handle cargo from ships already waiting for a berth.

“With West Coast ports still congested, there were still plenty of containers to be unloaded,” he added.

Similarly, the current near-shutdown of Shanghai because of COVID-19 precautions means fewer ships are leaving China and “the wait on that side of the Pacific will help reduce the pressure of vessel arrivals at Los Angeles-area terminals.” An influx of vessel arrivals following the resumption of normal operations in China could result in renewed congestion at U.S. ports.

U.S. ports covered by Global Port Tracker handled 2.11 million Twenty-Foot Equivalent Units – one 20-foot container or its equivalent – in February, the latest month for which final numbers are available. That was down 2.3% from January but up 13% year-over-year.

Congestion at West Coast ports has eased, but congestion at some East Coast ports is growing, noted Jonathan Gold, NRF’s Vp for supply chain and customers policy.

“Ports aren’t as overwhelmed as they were a year ago, but they are still significantly busy moving near-record volumes of cargo,” he said.

Ports have not yet reported March numbers, but Global Port Tracker projected the month at 2.27 million TEU, unchanged from the same month last year. April is forecast at 2.13 million TEU, down 1.1% from last year, and May at 2.21 million TEU, down 5.3% year-over-year.

Increases are expected to resume in June, which is forecast at 2.26 million TEU, up 5.2% year-over-year. July is forecast at 2.32 million TEU, up 5.6%, and August at 2.35 million TEU, a 3.3% year-over-year increase that would set a new record for the number of containers imported in a single month since NRF began tracking imports in 2002. The current record is 2.33 million TEU in May 2021.

The first six months of 2022 are expected to total 13.1 million TEU, up 2.5 percent year-over-year. Imports for all of 2021 totaled 25.8 million TEU, a 17.4 percent increase over 2020’s previous annual record of 22 million TEU.

Dublin, Calif. – Ross Stores Inc. sees more room to run for physical retailing and has added hundreds of stores to its long-term expansion plan.

“Moving forward, consumers’ increasing focus on value and convenience along with the large number of recent retail closures and bankruptcies make us confident about our prospects for continued market share gains in the future,” said CEO Barbara Rentler.

The company now projects expansion to 2,900 Ross Dress for Less units, up from the previous goal of 2,400. There are currently 1,629 locations in 40 states.

In addition, the outlook for the dd’s Discount format is now 700 stores, up from 600. The chain currently operates 295 stores in 21 states.

During the company’s fiscal third quarter call with investors yesterday evening, Rentler also addressed the hot button issue of price increases. Ross off-price stores and dd’s Discounts both began selectively raising prices during the last quarter and continue to do so now, she said.

“We’re being cautious about moving the needle given where we sit in the food chain. Value to our customer is the appropriate separation in price between ourselves and mainstream retail,” she added. “Where we have done it strategically and continue to offer great values to the customer, it is working.”

On the subject of supply chain costs, the company is planning for ocean freights rates to remain elevated through the year, but believes they will be heaviest in the first half of the year.

Although Ross carried higher freight, wage and Covid-related costs during the recent Q3, sales and profit significantly outpaced expectations.

For the quarter ended Oct. 30, 2021, sales climbed 19% to $4.6 billion, with comp store sales up 14%. Children’s and men’s were the top-performing categories. Net earnings were $385 million, nearly three times higher than the same period in 2020 and up 3.8% from 2019.

Year-to-date, sales rose 20% to $13.9 billion, with comp up 14%. Net earnings were $1.36 billion, compared to a net loss of $152.6 billion in the year-ago period and up 8.3% from the same period in 2019.

Washington – Consumer spending kept on rolling after the holidays, resulting in strong retail sales in January.

Sales as furniture and home furnishings stores were up 7.2% month-over-month seasonally adjusted and up 1.5% unadjusted year-over-year.

The National Retail Federation’s (NRF) calculation of total retail sales – which excludes automobile dealers, gasoline stations and restaurants to focus on core retail – showed January was up 4.7% seasonally adjusted from December and up 8.5% unadjusted year-over-year. In December, sales were down 3.6% month-over-month but up 13% year-over-year. NRF’s numbers were up 12.5% unadjusted year-over-year on a three-month moving average as of January.

“January’s numbers show that 2022 is starting very strong for consumers and retailers, especially on the heels of a record holiday season and record sales in 2021,” said NRF president and CEO Matthew Shay

NRF chief economist Jack Kleinhenz noted that several factors mitigated against robust spending, including a series of winter storms across large swaths of the country, spiking omicron variant spread in January and the expiration of the enhanced child tax credit at the end of 2021.

The U.S. Census Bureau today said overall retail sales in January were up 3.8% seasonally adjusted from December and up 13% year-over-year. Those figures include sales from automobile dealers, gasoline stations and restaurants. Despite occasional month-over-month declines, sales have grown year-over-year every month since June 2020, according to Census data.

Looking ahead, the economy and the retail industry still face a number of challenges, said NRF’s Shay. They include inflationary pressures, labor shortages, Covid-19 impacts and international tensions with Russia and China.

“[D]espite these concerns, consumers are spending, and the economy remains in good shape,” he added. “We are confident that retail sales growth and overall consumer financial health can continue, and current pressures in the economy should be moderated if election-year political pressures don’t result in policy decisions that compound the challenges our economy is already facing.”

In addition to the results for furniture and home furnishings noted above, sales in other breakout segments include:

• Clothing and clothing accessory stores were up 0.7% month-over-month seasonally adjusted and up 19.1% unadjusted year-over-year.
• Building materials and garden supply stores were up 4.1% month-over-month seasonally adjusted and up 12.7% unadjusted year-over-year.
• Online and other non-store sales were up 14.5% month-over-month seasonally adjusted and up 8.9% unadjusted year-over-year.
• Health and personal care stores were down 0.7% month-over-month seasonally adjusted but up 7.7% unadjusted year-over-year.
• Grocery and beverage stores were up 1.1% month-over-month seasonally adjusted and up 7.2% unadjusted year-over-year.
• General merchandise stores were up 3.6% month-over-month seasonally adjusted and up 6.4% unadjusted year-over-year.
• Furniture and home furnishings stores were up 7.2% month-over-month seasonally adjusted and up 1.5% unadjusted year-over-year.
• Sporting goods stores were down 3% month-over-month seasonally adjusted and down 0.8% unadjusted year-over-year.
• Electronics and appliance stores were up 1.9% month-over-month seasonally adjusted but down 3% unadjusted year-over-year.

Delhi – Dates for the 53^rd edition of IHGF Delhi Fair have been pushed back a few weeks, but the event will go forward in a physical format.

The Export Promotion Council for Handicrafts (EPCH) announced the show will now take place from March 20 through April 3 at the India Expo Centre & Mart in Delhi. The dates were changed due to the omicron variant surge.

The show is expected to feature 2,000 exhibitors in 14 Halls and across 900 mart showrooms. The event will include theme pavilions, artisanal fare and live craft making.

“After taking the virtual route throughout 2020, this fair opened doors to its in-person edition in autumn 2021 that garnered excellent buyer response, in spite of travel restrictions and limitations in many parts of the world,” the organization said in its announcement.

The event’s key segments will include:

• Home textiles & furnishings
• Furniture & accessories
• Gifts & decorative housewares & home utility
• Lamps & lighting
• Carpets, rugs & floor coverings
• Christmas & festive décor
• Handmade paper & gift wrap
• Spa & wellness bathroom accessories
• Lawn & garden ornaments
• Fashion jewelry & accessories

Buyers and importers can register at www.ihgfdelhifair.in/register.

Columbus, Ohio – After a decade of focus on store makeovers, Big Lots is charging ahead with new store openings.

In a new presentation outlining its long-term goals, the company announced it will open more than 50 new units in 2022 and ramp up to more than 80 per year afterward. Overall, the 1,428-unit retail sees more than 500 opportunities to establish stores in fill-in areas, rural/small-town markets and under-penetrated geographies.

Those 500+ potential new stores could add $1.5 billion to $2 billion. Big Lots is also forecasting e-commerce penetration of 10% to 15%, which would add $500 million to more than $1 billion to sales. Taken together, those gains would raise annual sales to $8 billion to $10 billion.

“We see a clear and long runway for growth ahead of us, coupled with the opportunity to drive returns through margin expansion and judicious capital allocation,” said Bruce Thorn, president and CEO.

As it closes out its fiscal year 2021, Big Lots is swinging from a strong November and December to a soft January. Through the end of fiscal December, fourth quarter performance was at the upper end of the company’s expectations, with a quarter-to-date comp increase of approximately 9% on a two-year basis.

However, traffic and sales have flagged in early January, which the company primarily attributes to the rapid spread of the Omicron variant. Based on the most recent trends, Big Lots expects to see a flat to low-single-digit percentage two-year comparable sales increase for fiscal January, below prior expectations, and resulting in diluted EPS for the quarter in the range of $1.80 to $1.95.

Shanghai – The spring edition of Intertextile Shanghai Home Textiles will take place a few weeks later than originally planned due to the evolving global pandemic.

Show organizer Messe Frankfurt (HK) Ltd announced the home textiles expo has been rescheduled to April 14-16. It will be held at the National Exhibition and Convention Center in Shanghai in tandem with Intertextile Shanghai Apparel Fabrics and the Yarn Expo.

“At this stage, we are still processing how the Omicron variant affects the hosting of large-scale events, so this new date provides us and our stakeholders with extra time to plan accordingly so we can ensure the fairs take place in a safe environment,” said Wendy Wen, senior general manager of Messe Frankfurt (HK) Ltd.

Exhibitors or visitors with any queries about these fairs should email [email protected], or visit the fairs’ respective websites:

• Intertextile Shanghai Home Textiles: https://intertextilehome.hk.messefrankfurt.com/
• Intertextile Shanghai Apparel Fabrics: https://intertextileapparel.hk.messefrankfurt.com/
• Yarn Expo: yarnexpochina.com