Monthly Update July 2016

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Marketing News Mark Griggs, v.p. marketing Web Communications: We have acquired the SC Discontinued Website. Going forward we have moved our online disco operations into the SC website through a tab we call “Sale!” We will offer discontinued products that have not been purchased by our dealers and retail network over a reasonable period of time. Employees are reminded to regularly visit www. SCGather.com, which conveys all company information to corporate and remote employees. SCsalestools.com is readily available for dealers, designers and our retail network! Visitors will find Advertising assets like POP signage, ads, photography and videos. Anyone that would like to participate in our advertising co-op program, will find an inquiry portal there. Photography: 2017 has wrapped for SC. New catalogs are presently being designed and compiled. MONTHLY UPDATE: JULY 2016 Vegas. The updates to our showrooms are in full swing. Our latest designs are presently being shipped to each showroom for introduction to our customers. CRM: We have digitized the new account signup process through our CRM module. While improvements are continuing, the new process allows reps to work with potential customers over the internet to speed up the process of account setup. Garden Party: Invitations have been approved and completed. They will mail in early July. This year’s theme is “Trends”. The format will be different from previous years with more events over multiple days allowing customers from across the country access to this fantastic annual event. Out top 50 dealers will be considered. Shows: Multiple projects are under way to support the summer show schedule. July will include shows in Chicago, Atlanta and Las Press & Announcements JULY PRESS: • Traditional Home, July/Aug – writer Krissa Rossbund, “clear furniture story” feat. Gabby: Magnolia Nesting Tables, Cindy Bunching Table, Angela Barstool in gold • Veranda, July/Aug. Lookbook – featuring Gabby’s Villa Mirror. • Southern Lady. Cover! Featuring SC furniture • Flower Magazine: feat. Coast Easy Chair • Shelby Living Magazine (Shelby County, Alabama where GWC is headquartered). Feature article on Gabby. • Milieu, featuring Gabby’s Clara Bed Digital: new wholesale branding campaigns are running for both SC and Gabby. New designer account campaigns are in place for both G & SC. We are gearing up for show e-blasts and Facebook campaigns. SC Contract’s Google Ad-Words campaign launches soon. Direct Mail: A new initiative is under way to communicate with top design prospects. A unique 3D direct mail piece that has a digital component is arriving in offices now. Robert Robinson, public relations manager • “Summer Rocks” Traditional Home featuring Halo Chaise • William White Birmingham Business Journal Entrepreneur Spotlight Winner • Home Accents Today, featuring Gabby’s Villa Mirror JULY ADS: • SC: Hearth & Home • SC: Patio & Hearth Products Report • SC: Casual Living • G: Milieu Summer • G: Home Accents Today. 2 of 17
SC Private Label Harold Hudson, president MONTHLY UPDATE: JULY 2016 This week we announced that we are moving our replacement cushion business to the Summer Classics Private Label Company. Summer Classics Private Label manufactures quality outdoor furniture for various specialty and master retailers. We previously manufactured under the Parker James brand name and this past January we changed the name to Summer Classics Private Label to give the company better visibility to the Summer Classics name. We currently manufacture replacement and frame cushions for two major catalogue companies and we have the capacity to increase this business with our domestic manufacturing. By moving the cushion business to Private Label we also add an “off shore” cushion manufacturing capability at competitive prices. We will become aggressive in the marketing of our cushion manufacturing. If you are retailer and you offer replacement cushions contact us and let us quote your cushions. As we approach the 2017 Chicago Pre Market we have reduced prices on our popular Alyssa, Terrazza and SOL groups between 5% and 12%. How many of your vendors have reduced their prices on existing product? We will be introducing a new slate gray finish in our popular Alyssa, Terrazza and a new outdoor upholstery group. We also will be introducing three new frames with some great looking finishes. If you are attending the Pre Market please visit the Summer Classics Private Label showroom down the hall from Summer Classics and look at our lower prices. If you are a Casual Classics Member we are a Vendor Partner with the Buying Group and we are offering members extra discounts during the Pre-Market. SC Home Update May wrapped up with the biggest sale in SC stores history, leading to over $3,000,000 in sales in the last 10 days of the month. The spike in sales pushed us to a comp of over 40% Blake Stewart, SC Home operations manager LICENSED STORES PROGRAM over last year. Results like this are an unbelievable way to wrap up our peak season. Every stores comp was in the double digits as well as 3 stores in the triple digits! The Licensing Onboarding Program is ramping up, we are talking with multiple potential candidates now about some of the highest demographic markets to continue to build the brand. We are looking forward to moving through the process with this group and build the business through Licensing. June’s focus on the retail front has been invoicing. With the increase in peak season sales, we were able to hit our goal relatively early in the game. As more and more product comes available, our invoicing numbers will continue to grow. We are excited to see the continued growth through July. 3 of 17
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Page 7 and 8: Contract Update The Contract Sales
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Monthly Update July 2016

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