Sales of accent furniture have slowed like everything else, but manufacturers interviewed by Home Accents Today say their category is faring better than others. While the slowdown has brought on a new set of challenges in the form of payment collections, inventory management and a shrinking customer base, the manufacturers remain positive and are reporting signs of improvement.

At Cooper Classics, accent furniture is the company's largest producing category, outpacing its mirrors and clocks, according to Todd Abshire, national sales manager. Sales are still a challenge, but Abshire said the second quarter showed improvement and the second half of 2009 looks "very promising."

Greg Waylock, president of Bailey Street, said his company began to feel the impact of the recession in about mid-December. "Since January, sales at the markets and on the road have been a challenge; customers simply are not buying the way they did last year and are not attending as many markets," Waylock said. "Overall, I really can't criticize them because I would rather do less business with them this year as long as they survive and we can grow together again next year."

Waylock said Bailey Street benefits, however, from the emphasis it puts on serving independent dealers and designers. "The companies that focused on larger key accounts or big box stores are probably feeling the slowdown much more severely than we have in the last six months," he said.

At N.C.-based Ultimate Accents, company Vice President Ray Steele said he's had to make some tough decisions regarding staffing and expenses. "We are taking this opportunity to 'right size.'"

Steele said Ultimate Accents' first quarter was better than projected and sales seem to be picking up. "Retailers have gotten their inventory in line; they're looking for values and something that will set them apart. Our April market attendance and the volume both were a little bit up from October '08."

Product-wise, Ultimate Accents had more success with lighter finishes the last two markets and the company's contemporary lineup is doing well. "Our customers are looking for smaller scale accents, but they still want the wow factor," Steele said. "Our factories can do exotic wood grains and faux finishes that are only found at the very high end." The company has also introduced contemporary hand-painted accents at the last several markets.

At Cooper Classics, Abshire said dark rich finishes are still strong, as well as value-added items with function. "We are also known for slightly scaled-down items," he added.

Small is also big at Bailey Street. "We are seeing more movement of our smaller scale items and our accent chairs, especially our Couture Covers program," Waylock said. "We are still seeing success in both transitional and traditional, but customers seem to be sticking to what has worked for them in the past."

As it is for most manufacturers, inventory management is Bailey Street's biggest challenge. "We have to be able to offer new products and quick delivery to our dealers," he said. "That has become a basic element of providing good customer service. We have to accomplish this by maintaining an appropriate level of inventory to the projected sales and do so in a cost-effective manner. We still introduce new items to the assortment but we are ordering less for initial quantities. We are very conservative until we see some performance results."

The company is also being more aggressive in closing out underperformers. "I'm proud to say we have been able to balance our inventories and remain 97% in stock," he said.

Abshire said Cooper Classics is most challenged right now by a diminishing customer base and the collection of payments. "We are emphasizing increasing sales with our current customers... and working closely with our loyal customers on payment schedules," he said.

Besides slower sales, Steele said Ultimate Accents' greatest challenge is market expenses. "We are like a retail store that is open four to five days every six months," he said. "If retailers don't show up for those four to five days, we have to wait six months for our next shot. The rent expense is a very big challenge."

Looking ahead, Steele said Ultimate Accents will introduce three new designer programs at the fall High Point Market. The company is also in the process of updating its photography and product information for customer Web sites.

Abshire said Cooper will be looking at doing more with specialty stores vs. traditional furniture stores. "Our emphasis this year is to expand the accent furniture assortment with a collection of eclectic accent tables for our fall High Point Market."

Bailey Street is focusing on adding more value to its assortment and building its customer base. "Each of our principals is spending more time on the road visiting stores and design firms," Waylock said. "It allows us to listen and learn more about what our customers need from us to help weather the storm. Most importantly, it allows us the opportunity to thank them for their support. We would not survive without it."