ArtiFAX

Art Materials in 2008 – A Distributor’s View
I am optimistic about the U.S. art material world’s prospects for 2008, especially for the independently owned stores. History has shown us that when the overall economy is tough, penny watching consumers are much more likely to see the value of relatively inexpensive, quality-of-life activities like arts and crafts. Chain stores continue to expand but seem to be struggling under the constraints of large company structures, aging planograms and, in some cases, either new management or crushing debt.

Historically, art supply independents whose proprietors are closest to their customers generate the best creative innovations. When innovations emerge from the chains those same independents are generally nimble enough to capture the best concepts while avoiding the tired or riskier ideas. For these flexible and resourceful independents, prospects are cautiously bright. We continue to see like-minded, small and large retailers joining groups such as iAMart and AGA to get the most from their coordinated buying and marketing power and from the free exchange of ideas within those groups.

The decline in number of art & craft locations, however, is still a concern for our industry. The chains fill in some of the vacuum, but the bottom line is that when there is lost consumer access to art supplies, fewer supplies are consumed. As has been the case for several years, very few young people can afford the huge asset cost and poor return on investment that starting a new art supply outlet involves. Kathy Brennan of Preston Art recently highlighted the serious problem of business succession facing the industry. “In the next ten years, most of the independents in this industry, will fail because of age, or lack of planning to pass the businesses on to the next generation for whatever reason”, she aptly points out. This impending crisis begs for a combined industry solution.

I anticipate that the consolidation of products and suppliers will continue at a steady or accelerating rate. Sadly, there will be fewer choices. Chains won’t care but it will hurt the independents. A very positive development this past year took place when SLS opened its new warehouse in Las Vegas. To paraphrase Martha Stewart, competition is a good thing. In a world of fewer choices, we applaud a company willing to throw the dice and offer art retailers in the west more choices to please consumers.

Our initiatives continue to be focused on employing our talents and capital to deliver the best value possible for our customers. Those initiatives include strengthening our company so that we can drive costs down and continue to pass along the savings; redoubling our efforts to be the innovation leader in the industry through new products, services and processes; and diversifying our activities so that we are less dependent on any single sector of our business. You will see increasingly creative usage of our people and technologies.

Key dates for the art materials world: Paperworld in Frankfurt, Germany Jan. 23-27; CHA Winter Show in Anaheim, CA, Feb. 9-13; NAMTA in Reno, NV, April 30-May 3; and Paperworld in Shanghai, China, Nov. 27-29. You might also consider the CHA Summer Show. While this gathering has in past had much less meaning for the art materials world, its organizers are putting a lot of effort into making it relevant to our channel.

Interested in finding out more about the benefits of joining an art materials buying group? Here are two that serve the art materials world exclusively: iAMart is focused on the small to medium operation while AGA is more oriented to the big city stores. If you would like more information on iAMart, contact its coordinator, Dave Thompson via email at DLThompson@aol.com. AGA adds new members by invitation only.

Frank Stapleton