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One retailer's views on the Enesco/D56 deal


Will Enesco Save Department 56
- Written by Kristin Singhasemanon of the Satin Button

After only three months at the helm, it is still early to assess how Enesco’s ownership will impact Department 56 in the long run.  The good news, of course, is that Dept. 56 was rescued from the struggling Lenox before going under altogether.  From a retailer’s perspective, I was happy to hear that Enesco would be the new owner.  Enesco has been a leader in the gift industry for many years.  They have built a solid foundation from which they are rapidly expanding – let’s just hope they’re not expanding too rapidly.

Department 56 was not the only company to be acquired by Enesco this year.  They have also added giftware lines Charming Tails, Gund®, Boyds®, Our Name is Mud®, Country Artists®, Bob Olszewski’s Gallery of Light™, My Soul’s Window™, and The Potter’s Shed™ by Michael Macone.  Whew!  That is quite a list.  Some are very popular and well-known, while others are less widely-known brands.

It is difficult to imagine that a company can grow that quickly and do it well.  That said, I have been impressed by Enesco’s attention to detail and pro-active customer communication so far.  As a Dept. 56 retailer, they have kept me informed every step of the way.  They offered a simple process through their website to transition to an Enesco customer, and they have been available on the phone for questions as well.  There have been some delays in shipping due to backordered supply, but these delays have for the most part been resolved at this point.

A recent letter from Enesco addressed some upcoming changes as more of Dept. 56’s operations are merged with their parent company.  One change that I am somewhat disappointed with is the closing of the Dept. 56 retailers’ website.  Enesco explained that the underlying IT system was not compatible with Enesco’s system.  To their credit, Enesco has created a B2B website of their own.  It is very feature-rich as far as monitoring orders and paying invoices go, but it does not allow for online ordering at this point.  I will miss that feature, but they did tell me they hope to bring it back by next year.  Another customer service agent said she thought it would be ready even sooner.
Another change that is emerging is the claims policy.  When an item arrives damaged from the manufacturer, the retailer has the right to request a refund for the damaged goods.  It seems the flexible Dept. 56 policy exceeds Enesco’s normal limit of a 30-day claims window.  They have decided to honor an extended claims period for Village product this year, but it looks like that may change in the future.

From what I have heard, the fate of www.department56.com and of 1-800-LITTOWN have yet to be decided.  While Enesco plans to transition the release of new product to their own www.enesco.com website, I have pointed out to the representatives I’ve spoken with what a rich resource www.department56.com is to collectors and dealers alike.  In addition to listing new releases, this website is an historical archive, and it would be a loss for us all if they were to close it.  I was told the 1-800-LITTOWN number is still operated by the Lenox division that is dealing with unresolved Dept. 56 functions.  While Enesco still intends to provide customer service and replacement parts, the format or process may change.

I believe the devaluation of Dept. 56 Village was largely a result of excess supply on the market.  During the 90’s, Dept. 56 expanded their new releases significantly.  Collectors who, up until then, had purchased every new release in their series, decided that was not possible anymore – there were just too many.  This year, the supply of new Dept. 56 Village will be significantly reduced.  Enesco has maintained the 2-piece minimum order that Dept, 56 implemented in 2008.  Couple this with the fact that many retailers are short on credit this year.  Many who have stayed in business are either dropping the line altogether or limiting the number of new pieces they will purchase.  Countering the lessened availability of new Village pieces, there seems to be a flood of past collectors liquidating their collections.  As Village supply comes back in line with demand, I look forward to Dept. 56 once again becoming a strong brand, with Enesco’s strength behind it.

About The Satin Button:
Kristin Singhasemanon owns The Satin Button, an authorized Department 56 Dealer.  Kristin is dedicated to creating lasting memories for families through holidays and special occasions.  The Satin Button features seasonal collectibles,  kid-friendly holiday decorations, and unique gifts for kids.  Kristin was originally introduced to Dept. 56 through her mom’s gift shop in the 1980’s, and has followed them over the years.  She participates regularly in the Dept. 56 Yahoo Group to keep up with collectors and share a dealer’s perspective.  Read her story or shop for Dept. 56 Village at www.thesatinbutton.com.

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