UNITED WEAVERS HAS FIRM FINANCIAL BASE, STRONG CUSTOMER TIES TO WEATHER CURRENT ECONOMIC STORM

By Lissa Wyman

DALTON, GA. -- "Our industry is going through simultaneous inflation and deflation. At the same time, even in the best of times, rugs are not a top priority for American consumer."

That statement by Samir AbuHadba summarizes the current rock-and-hard-place situation faced by everyone in the rug industry. But Abu Hadba, president of  United Weavers of America,  is confident that the industry -- and particularly United Weavers -- will weather the storm and become stronger as a result.

"On the plus side, our company is well capitalized, so we can continue to develop strong products that will separate us from other rug vendors," added Abu Hadba.

United Weavers of America is the US arm of Saudi-based United Weavers, which manufactures and distributes machine made rugs and other textiles products worldwide. The company has sold rugs in the US market since the early 1990's.

United Weavers specializes in value-oriented and mid-market machine made rugs which are sold through regional chains, furniture stores, rug and floor covering specialists, catalogs and Internet retailers.

"In the current business climate, we have to listen very carefully to our customers. We work closely with them to develop products they need and want at price points that can make rugs very attractive to consumers," said Abu Hadba.

A strong financial base allows United Weavers to hold firm while the current economic storm buffets the industry as a whole.

"We have no debt, we own our corporate office and distribution center and we don't deal with factors," Abu Hadba explained. "We are not panicking. We are confident that over time, we will emerge as market leaders."

When times are tough, buyers can't afford to take a lot of risks, Abu Hadba pointed out. "They are cautious. We have developed strong relationships with our retail partners, and we work closely to develop new products that will be saleable."

Diane Carleo, United Weavers' director of marketing, also noted that the company is becoming more important to customers. "We are holding the stock for them. They don't have to make large commitments to inventory," she said.

In a tough market, retailers want to develop new ways of merchandising product in order to enhance the visual appeal.

"One trend we have noticed is that stores are doing more with inter-department coordination. The strict separation of buying categories seems to be fading. Buyers from different departments are working together and they are asking us to produce rugs that coordinate with other departments," said Carleo.

The easy partnerships between United Weavers and its retail customers is possible because United Weavers sells primarily to independent stores and regional chains, rather than the giant national chains.

"Our policy has always been not to go after the Home Depots of the world," said Carleo."We have medium size accounts. We can handle them and they can handle us."

The fact that United Weavers has a broad and diversified customer base is also a financial plus, noted Abu Hadba. "Not one single account has as much as 10% of our business," he said.

United Weavers has permanent showrooms in Atlanta and Las Vegas and also shows at the Tupelo Fruniture Market. The company is also a big fan of the Surfaces floor covering exposition which is traditionally held in late January in Las Vegas. "It's important for us to show at both the World Market Center and at the Surfaces event, and we will continue to do so. Each show has a different audience," said Carleo..

United Weavers had been a long-time exhibitor in High Point, but the company closed its Showplace showroom after the April Market. "The other shows proved to be much more profitable than High Point," she noted.

Coming up in July, Abu Hadba and Carleo said the company will be making a big splash with its first Outdoor rugs. "This is a breakthrough product that offers great value, and high quality at competitive price points," she said.

United Weavers is well known for its customized merchandising unit, and Carleo said the new outdoor rug line will have a self-contained storage unit. "We are offering the unit in both self-liquidating and replenishable versions," she said.

Retailers will also see United Weavers rugs based on two new licensing partnerships during the second half.

United Weavers is teaming up with Marshfield Furniture, the 60 year-old family owned upholstered furniture manufacturer based in Marshfield WI.

United Weavers has also entered a licensing program with The Hautman Brothers. Joe, Bob and Jim Hauptman are a family team of  wildlife artists. Their artwork is featured on over 41 state and federal conservation stamps. The wildlife art will be adapted to a United Weavers rug collection.

Joe, Bob and Jim Hautman are the only brothers ever to win the prestigious Federal Duck Stamp Contest.

US Federal Duck Stamp painted by Joe Hautman will be released on July15, 2008

06.22.08