Pulaski, Build-A-Bear set to cuddle up

By Ray Allegrezza -- Kids Today, 4/1/2006 12:00:00 AM

Pulaski, Va. —

Case goods maker and importer Pulaski has inked a four-year master licensing agreement with retailer Build-A-Bear Workshop to produce what it says will be the industry's first line of juvenile furniture designed by kids for kids.

The agreement also authorizes Pulaski to oversee development of a full complement of related home items, including lamps, rugs and accessories.

Build-A-Bear Workshop, based in St. Louis, offers customers an interactive, make-your-own-stuffed-animal experience. Founded in 1997, the chain has over 200 stores in the United States and Canada and posted revenues of $302 million in fiscal 2004.

Pulaski's Build-A-Bear Workshop Home Collection, set to debut at the October High Point market, will be targeted at boys and girls between the ages of 4 and 12 living in homes with annual household incomes of $75,000 or more.

The Asian-made furniture, which will be heavily influenced by the Cub Advisory Board, a panel of up to 15 children, will include gender-specific items and target the key functions of sleep, study and storage.

Depth and breadth of assortments and pricing are being finalized, but Pulaski anticipates prices will be similar to that of its existing youth furniture.

"With more than 60% of mothers saying they would purchase a furniture line designed and endorsed by Build-A-Bear Workshop, and more than 85% of mothers purchasing products requested by their children, our agreement with Build-A-Bear allows Pulaski to tap into $40 billion in buying power among (families with) 5- to 14-year-olds," said Larry Webb, president and CEO of Pulaski

Pulaski plans to maximize sales from cross-merchandising opportunities, and intends to establish Build-A-Bear galleries of 250 to 750 square feet with current retail customers.

"We plan on having a selection of bears, accessories and related equipment in some of the stores," said David Corbin, Pulaski's vice president of marketing. "In addition, we are looking at options, such as kiosks, that will allow shoppers in Build-A-Bear stores to find out more about our Build-A-Bear Home Collection of furniture."

And just as Build-A-Bear customers can customize their stuffed animals, Pulaski's furniture will provide kids and their parents with a choice of configurations, accessories and hardware.

Pulaski will support the line's launch with in-store events. It plans to invite kids and their families to visit a Pulaski dealer to make bears. Each child will make two bears at the store, one to keep and one to donate to a local children's hospital or charity. Parents, meanwhile, will receive a Build-A-Bear Home Card worth $100 on items from the new furniture collection.

Corbin said the decision to launch the Build-A-Bear line was based in part on the success Pulaski has enjoyed with earlier licensing ventures, including the Antiques Roadshow collection, launched in April 2003, and Casa Cristina, which debuted in October 2004. The latter features furniture inspired by Cristina Saralegui, the popular Hispanic television talk-show personality.

"To give you an idea of how good these ventures have been, we hit our third-year projections for the Casa Cristina collection our first year out of the box," Corbin said.

The company has equally ambitious plans for the Build-A-Bear line. Currently, youth furniture represents some 5% of Pulaski's business. Corbin expects Build-A-Bear will push that to about 20%.

Pulaski's research indicates the Build-A-Bear brand ranks high in brand awareness, scoring 72% in aided recall. Additional consumer research conducted for Pulaski by Maria Bailey, author of "Trillion Dollar Moms" and "Marketing to a New Generation of Mothers," showed that 64% of moms say they would prefer to buy furniture designed by kids for kids.

"We've been looking for the right brand to partner with in building our youth collections," said Jim Kelly, Pulaski executive vice president of marketing and product development. "Build-A-Bear Workshop not only tops brand awareness charts, it fits Pulaski strategically and culturally."

"From the retail perspective, working with Build-A-Bear is a double win," said Bill Sibbick, senior vice president of sales. "They bring an established retail presence and a track record of experience with more than 11 million potential new customers for Pulaski."

Pulaski President and CEO Larry Webb is all smiles about the company's new agreement with Build-A-Bear Workshop, which he says will lead to the creation of a line of furniture designed by and for kids.

Pulaski executives, with armloads of furry friends, stand outside a Build-A-Bear Workshop mall store. From left are Bill Sibbick, Jim Kelly, Larry Webb and David Corbin.