HGO Merchandiser 2013 Product Guide by MediaEdge

Michael Knell’s

HGO merchandiser HomeGoodsOnline.ca

SPECIAL ISSUE

Volume Two, Issue 2

2013

Product Guide

HomeGoodsOnline.ca

CONTENTS>>>

2013

Product Guide

4 FROM THE EDITOR 29

Everything we do is about selling the product on the floor. The 2013 Product Guide is an overview of the key product categories on every furniture retail floors in this country: upholstery, bedroom, dining room, motion upholstery, mattresses and major appliances

BEDROOM: 10 SAVING SPACE, ADDING STYLE Gary James reports 2012 was a tough year for bedroom producers. In the effort to achieve moderate growth, they’re getting sharp and smart by introducing more customization opportunities to consumers while adding flourishes such as upholstered headboards while increasing valuable storage space.

UPHOLSTERY: 16 EMBELLISHING STYLE AND VALUE In the world of upholstery, an uptick in sales and a savvier consumer promises an exciting 2013. Producers are promising to focus on fashionsavvy, stylish product that promises value to the consumer. Ashley Newport reports.

DINING ROOM: 24 CREATING A TRANSITIONAL BUZZ When it comes to dining room, manufacturers are seeing the need to focus on pieces that are unique and elegant while offering top-notch quality to a savvy consumer. Smaller,

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condo-sized pieces are still in heavy demand while from a style point of view, urban chic and quality rule the day. Ashley Newport reports.

APPLIANCES: 29 LOOKING AHEAD, LOOKING UP? Struggling out of a slump, the Canadian appliance industry is guardedly optimistic for 2013. Both appliance producers and senior buying group appliance merchandisers are advising retailers to carefully manage their product mix to ensure they’re offering the technologic advances consumers are demanding at price points that will garner a reasonable gross margin. Andrew Brooks reports.

MOTION 34 UPHOLSTERY: POWERED TO SELL Power recline is emerging as the consumer’s most desired feature. But styling and quality, coupled with topnotch service, is what’s going to drive sales in the motion upholstery quality category in 2013. An overview by Gary James.

MATTRESSES: 38 TECHNOLOGY PLUS VALUE EQUALS SALES The proper application of in-demand technologies to cool the body is going to be very much in vogue among Canadian mattress manufacturers in 2013. But in a tough economy, value is going to be the consumer’s top priority. Michael Knell reports.

Building a

trusted brand since 1988 Bringing you affordable, on trend styles, in stock when you need them. It’s not just about service anymore – we strive for customer satisfaction!

The Canadian Home Furnishings Market – January 12-15, 2013 Conveniently showing at the International Centre – No shuttle required! Stop by for some refreshments Hall 3, Booth 3366 and see what Worldwide has to offer!

Accent fURnitURe

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bedRoom

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FROM THE EDITOR>>>

The product’s the thing EVERYTHING WE DO IS ABOUT SELLING THE PRODUCT ON THE FLOOR. THE AMAZING THING IS, THE CONSUMER USUALLY WANTS TO BUY AND IS LOOKING TO US TO PROVIDE THE BEST IN QUALITY, STYLE, CONSTRUCTION AND PRICE WHILE BEING ON TREND.

R MICHAEL J. KNELL

HGO merchandiser 2013 PRODUCT GUIDE • VOLUME TWO, ISSUE 1

www.HomeGoodsOnline.ca PUBLISHER & EDITOR Michael J. Knell mknell@homegoodsonline.ca MANAGING EDITOR

EGARDLESS OF ONE’S ‘UNIQUE MARKET POSITION’

or the means by which one strives to differentiate one’s operation from the competitor, they are all embodied in one thing: the product on the floor. It sounds a bit esoteric, perhaps even eccentric but that doesn’t change the truth of the matter. What we say about our business and the methods used to execute its marketing and merchandising strategies is all represented by the product we sell. After all, those ideas don’t illustrate our circulars, newspaper ads and television commercials. The product does. This is the reason for this special edition of the Merchandiser. The 2013 Product Guide is an overview of the key product categories on every furniture retail floor in this country: upholstery, bedroom, dining room, motion upholstery, mattresses and major appliances. Through the balance of the year, we’ll look at other categories including outdoor furniture; youth and juvenile furniture; and perhaps even televisions and home theatre systems; and, rugs, lamps and other accessories. The premise is basic. We’ve asked a broad cross-section of furniture, mattress and major appliance resources about what sold in 2012 and how they think this will evolve consumer demand in 2013. Some of their answers will probably surprise you, others won’t. For example, no one is saying 2013 is going to be a banner year. Industry executives, regardless of the category they’re in, seem to agree attributes such as good design, quality construction and leading-edge technology, among others, are in far greater demand than lowest price. It looks like the race to the bottom might be over. We hope the pages that follow will provide insight and inspiration as you go about merchandising the floor over the coming months. After all, at the end of the day, it’s all about the product on the floor.

Anthony E. Bengel tony@homegoodsonline.ca CONTRIBUTING EDITORS Andrew Brooks Gary E. James Ashley Newman ART DIRECTOR Samantha Edwards Sam I Am Creative samiamcreative@bell.net IT DIRECTOR Jayme Cousins www.inhouselogic.com websmith@inhouselogic.com PUBLISHED BY Windsor Bay Communications Inc. P.O. Box 3023, 120 Ontario Street Brighton, Ontario K0K 1H0 T: 613.475.4704 F: 613.475.0829 Michael J. Knell, Managing Partner PUBLISHERS OF

HGO This Week Home Goods Online.ca

© 2013 Windsor Bay Communications Inc. All rights reserved. Windsor Bay Communications does not accept any responsibility or liability for any mistakes or misprints herein, regardless of whether such errors are the result of negligence, accident or any other cause whatsoever. Reproduction, in whole or in part, of this magazine is strictly forbidden without the prior written permission of the publisher.

AFFILIATE MEMBER

michael j. knell Publisher & Editor mknell@homegoodsonline.ca

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Serta will launch a new collection of Perfect Sleepers in Canada in 2013. The new models will be shown to retailers starting in January and will hit retail floors in the spring. The new Perfect Sleeper mattresses have been redesigned with a fresh new look to help the mattresses stand out on the retail floor. Select Perfect Sleeper mattresses will feature Serta’s new Smart Surface™, a design

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BEDROOM >>>

Saving space, add T HE BEDROOM CATEGORY HAS BEEN IN A HOLDING

pattern during 2012 due to economic challenges on both sides of the border but leading Canadian producers are optimistic the coming year will bring at least moderate growth for fresh products and programs. With housing starts in the United States trending upward, and the presidential election settled, producers express cautious optimism that the bedroom business south of the border may soon show signs of renewed life, prompting Canadian activity to follow suit. But dark clouds continue to surround both countries’ economies, as governments struggle to reduce spending and contain debt without jeopardizing growth. “We came into 2012 thinking the Canadian economy would be flat,” said Adam Hofmann, president of the Walkerton, Ontario-based Bogdon & Gross (BG) Furniture, which celebrated its 85th anniversary this year. “We didn’t have huge hopes for growth, but we also didn’t expect the case goods market to slip like it did. Consumers continued spending on cars, and there was good activity in home buying and renovations. But, in the end, consumers were maxed out on debt and didn’t have much left to spend on furniture.” In addition, Canada’s federal and provincial governments have been in an austerity mode, like their counterparts in so many regions of the world, causing a ripple effect that has slowed consumer spending. “The federal government’s finance minister recently recommended to the Canadian public that this would be a good time to reduce personal debt, since interest rates are so low,” said Hofmann. “Many Canadian consumers put that advice into practice.”

BG: GETTING SHARP AND SMART The key to growing business in this difficult business climate, Hofmann and other producers agree is to deliver sharply styled products with a clear value proposition, backed by smart marketing. At the Canadian Home Furnishings Market (TCHFM) in Toronto, BG will introduce a variety of new product as well as an expanded custom size program called the BG Furniture Manufacturing Design System. BG is returning to the International Centre for market in a temporary show space after three years in an outside location to provide easier access for customers, said Hofmann. BG’s introductions will include a transitionally-styled bedroom in solid maple priced at $3,500 to $4,500 retail – a lower starting price point for the company, whose bedrooms typically run $4,500 to $5,500. Designed for second bedrooms and smaller spaces, the group will include two bed options (turned foot or fully closed base), a range of cases and a few unusual pieces, such as a drawer chest with optional Dimplex electric

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The boldly architectural Arris collection was a best seller for West Bros. in 2012. In solid cherry, the post-modern design is shown here in a warm, mid-tone Ginger finish that highlights the grain. Bed options include this leather panel version with subtle shelter treatment.

ding style

2012 WAS A TOUGH YEAR FOR BEDROOM PRODUCERS. IN THE EFFORT TO ACHIEVE MODERATE GROWTH, THEY’RE GETTING SHARP AND SMART BY INTRODUCING MORE CUSTOMIZATION OPPORTUNITIES TO CONSUMERS WHILE ADDING FLOURISHES SUCH AS UPHOLSTERED HEADBOARDS. BY GARY JAMES

HomeGoodsOnline.ca

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 Designed for smaller homes and condos, the GrandVille collection was a best seller for Bogdon & Gross Furniture in 2012. GrandVille offers plenty of opportunities for customization, with multiple leg style, hardware and finish options. This upholstered panel headboard is available in a range of fabrics and leathers, with additional options for panel stitching patterns and number of sections.

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fireplace insert and a nightstand with pier wall treatment for added storage. “We started shipping our first fireplace options as part of the Isabelle and GrandVille entertainment collections in August and they have done very well,” said Hofmann. “We see a real opportunity for fireplaces in both bedroom and office. Consumers like the clean heat that electric units provide and they make a great addition to a master bedroom.” The new maple group also will include a variety of youth pieces, BG’s first complete offering in the category. “We’ve had a few twin beds in other collections but have never made a complete statement in the category,” said Hofmann. The new collection’s youth pieces include twin and full-sized beds with storage and smaller-scaled nightstands and desks. An enhanced custom size program also will be in the spotlight in BG’s Toronto showroom. The program will offer consumers the ability to order products in the exact dimensions they desire at “an affordable price, with delivery in six to eight weeks,” said Hofmann. The offering will be rolled out first across BG’s occasional line, and then expanded to bedroom, dining room and office. “We think this will be an important ‘plus’ for our dealers,” said Hofmann, adding that the company already offers custom sizing in its line, but not the complete range of options that will now be available. To provide consumers with more choice, BG invested in a more sophisticated CAD/ CAM and enterprise resource management system

that makes it easier, and less expensive, to produce custom sizes. “If you want your dresser four inches shorter and two inches higher than is standard, or vice versa, we can do that,” said Hofmann. “Seven to 10% of our orders are currently custom sizes and this will expand that side of our business even more.” Also slated for introduction in Toronto is BG’s new Designer Club program. The program, which will include a dedicated internet portal, is aimed at making it easier for designers to get the information they need about BG products for use with clients. “Designers will be able to use our new portal to find and customize products, then arrange for a retailer to take the order and provide delivery and setup,” said Hofmann. “With 17 finish options and a wide range of hardware and fabric choices, as well as custom sizes, we’re well positioned to do more business with designers.”

WEST BROS. GOES CONTEMPORARY At West Bros. Furniture, 2013 will bring a continued emphasis on transitional and contemporary bedroom; a direction the solid-wood producer began exploring in April 2011, when it introduced Newbury Street, Phase and Arris. In 2012, West strengthened its transitional and contemporary lineup with the addition of Serra, in walnut, and Odeon, in oak, both of which have been “very well received,” said Tom Halvorsen, vice president of sales and marketing. “These new collections have attracted a new group of customers to our line,” Halvorsen said.

“They’ve broadened our appeal with contemporary oriented retailers, who are looking for new sourcing options because of the deflationary effect that Asian imports and the weak economy have had on bedroom sales.” At the same time, West Bros. also is gaining new floor space with its current base of more traditionally oriented stores, which see it as a way to expand their own business, particularly with younger consumers. “We offer retailers a range of stylish transitional and contemporary designs that are loaded with style and function,” said Halvorsen. “They also feature the high level of quality and construction for which we’re known, along with our unsurpassed finishes.” West Bros.’ bedroom offerings range from $3,000 to $5,000 retail for a bed, dresser, mirror and nightstand. “We’re positioned in the better-best range, using premium woods and finishes that offer a strong value that consumers recognize,” said Halvorsen. At the April 2013 High Point Market, West Bros. plans to introduce a dining version of Serra, and it will also add a variety of new accent pieces across all of its best-selling transitional and contemporary bedrooms. Pieces will include desks, benches and new case options, as well as additions to its upholstered headboard program. “Business continues to be tough, but we’re experiencing an uptick thanks to these new collections,” said Halvorsen. “In 2013, we’re going to focus on building on the great momentum we gained at the October market.” Halvorsen added West Bros. remodeled its High Point showroom for the October market, giving it a simpler, cleaner feeling in tune with its new, more contemporary design direction. In the coming year, West Bros. also be looking at new ways to support its dealers. Enhancing its website will be a top priority. “We’re going to launch a web-based customer service program that will make us more accessible to our retailers,” said Halvorsen. “We’ll add features that will make it easier for retailers to check on the status of orders and obtain other key information.”

features a range of casual, relaxed traditional and transitional styles. Scaling is smaller for condo and second bedroom use, with a range of color and hardware choices for personalization and easy mixing and matching. The line, which includes nine bedroom groups, is priced from $2,999 to $3,999 retail for four pieces. “This line offers the ‘Perfect Balance’ between style, size and value,” said Dave Pinamonti, vice president of business development. “We’re offering easy-to-understand choices that enable consumers to create a look that fits their unique lifestyles and tastes.” Also in 2012, Durham Furniture enhanced its more traditionally oriented Durham master bedroom line in solid maple and cherry with the addition of two casual, lightly distressed finishes – Aged Wheat and Antique Rye. Hudson Falls and Vineyard Creek were the first two collections to be updated, and in 2013 the company will roll out the new finishes across the remainder of the Durham line.

Dinec is generating good sales and retail buzz with wood/upholstery combinations on its headboards, including the Sky group seen here, available in a wide range of leathers, fabrics and finishes. The solid wood Sky collection can be further personalized with insert options of frosted glass, fabric or leather on the case pieces.

DURHAM: BUILDING ON PERFECT BALANCE At Durham Furniture, the big news in 2012 was the successful rollout of the Perfect Balance line, which started shipping in late June. Designed to serve changing lifestyles, the new solid-wood line Durham Furniture expanded the appeal of its Vineyard Creek collection with the addition of a new distressed Aged Wheat finish in 2012. A casual collection that embodies a sophisticated, wine country feel, the collection is hand crafted in solid cherry with maple accents. HomeGoodsOnline.ca

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 Fuqua (Model No. 1794) was Magnussen Home’s best-selling bedroom in 2012. In cathedral cherry veneer with a smooth, black cherry finish, the contemporary group features clean, sleek lines accented by dramatic, weave-patterned drawer fronts.

As far as marketing and sales support, Durham will look for ways to take its website “to the next level” in 2013, Pinamonti added. “It’s already a very effective tool for both retailers and consumers, but there are other features we’ll add to make it even easier for consumers to learn about the range of product we offer.” Although Durham’s sales were flat in 2012, the company forecasts “moderate growth” for 2013, according to Gord Dilworth, president and CEO. “Our new Perfect Balance line, which started shipping in late June and early July, has been very well received by retailers and consumers and is starting to move our business forward,” said Dilworth. “We’ve also invested in new equipment and marketing initiatives, which should put us in a good position to expand sales in the coming year.”

DEFEHR: EXPANDING COLOURS AND ADDING PLATFORMS

 Jaymar’s Wave bed features a tufted cushion-like headboard in leather or fabric with rich stitching details and a shapely platform base. An optional storage base (inset) also is available. Storage is becoming an increasingly important feature in beds, particularly for consumers living in space-challenged urban settings.

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“These finishes give our Durham collections an updated, contemporized appeal,” said Pinamonti. “They’re in tune with the changing tastes of today’s traditional consumers, who lean toward classic lines rendered with a more relaxed feeling.” In the coming year, Durham will be conducting a detailed review of the entire Durham line to identify other changes that might strengthen the program, which runs from $4,299 to $5,499 retail (for a four-piece group). “We’re putting a big emphasis on the Durham line, evaluating our piece and finish options to see what’s getting outdated and what needs to be refreshed,” said Pinamonti. He said that the company is likely to add two new case goods collections at the April High Point Market.

At DeFehr Furniture, 2012 bedroom sales remained flat as Canadian consumers postponed purchases due to weak confidence about the economy. But, for 2013, the company sees two positive trends, said Dan Toews, sales and marketing manager of the domestic producer of solid wood, veneer and laminate bedroom and office furniture. “We see a wider acceptance of contemporary, which is one of our strengths,” said Toews. “Also, there’s a growing willingness among Canadian retailers to carry upscale goods from domestic producers.” Imports will remain a key part of most retailers’ product mix, Toews added. But, at the same time, stores are seeing new profit opportunities in domestic sources that can provide style options, functional extras, and service and delivery levels that imports can’t match. “For 2013, we’ll be widening our assortment of contemporary and developing new products with expanding color options,” said Toews. Among the company’s 2012 best sellers is Verona, a sleek, sophisticated maple collection with a unique graphite finish that is being expanded with two new color options — java and cappuccino. At January’s TCHFM, DeFehr also will add platform beds and underbed storage to many of

At this year’s Canadian Home Furnishings Market, Amisco is introducing a platform option for all of its headboards, including the new Mantra model shown here. Constructed of top-quality steel, the beds feature a smooth, uniform finish on all sides for a striking, seamless look. The platform base eliminates the need for a box spring under the mattress. 

its existing collections. “Platform beds give retailers a chance to sell a higher-end mattress with the bed, since it eliminates the cost of the box spring. Underbed storage also is becoming more important as a space saver in small bedrooms.” For 2013, Toews sees DeFehr’s current price point range of $1,499 to $2,499 retail (dresser, mirror, bed and nightstand) holding steady. “But if we can give retailers a strong style and function story, they would prefer to notch up their price points a little as long as they can still offer a strong value.”

AMISCO: MAKING STATEMENTS IN METAL Another bedroom major that has expanded its offering of platform beds is Amisco, which introduced the option on its Billboard, Mantra, Timeless and Bridge beds at the October High Point Market. It now offers a platform option on every bed in its line. “By taking away the footboard, our platform beds make it easier to watch TV in bed,” said Guy Patenaude, vice president of sales. “It’s a more contemporary look that’s also very sturdy.” At the Toronto show, Amisco will be featuring this platform option as well as two new metal finishes – Day Glam, a light gray; and Night Glam, a charcoal tone. Both finishes have a touch of sparkle. “We now have a total of 14 finishes in our metal bed line,” said Patenaude. “All of our beds are in inventory and available across North America on a quick-ship basis.” Patenaude added that Amisco’s beds start at $499 retail, with the bulk of activity in the $699 to $799 range. “The economy is getting a little better,” he said, “and we’re optimistic about our growth prospects for 2013. Retailers like the fact that they don’t have to buy a container from us or carry any inventory. And the new products we’ve brought to the table are generating a very positive response.” To determine which styles are of most interest to consumers, Amisco holds focus groups with the assistance of Michelle Lamb of The Trend Curve. “This research helps us stay on top of the latest trends in style and color as well as lifestyle changes,” said Patenaude. “It keeps our designs fresh and on target.”

BDM TO FOCUS ON UPHOLSTERED BEDS At Dinec, 2012 was “a very difficult year for bedroom” said Philippe Darveau, vice president of sales and board member of parent company BDM Furniture. “When times are tough, as this year has been, consumers hold off on buying new bedroom furniture. At the most, they may replace a bed or a nightstand but not an entire group. Because guests usually don’t see the bedroom, consumers don’t regard it as a priority.” However, there still were a few bright spots, Darveau added, which the company will look to build on as it plans bedroom introductions for market showings in Toronto, Las Vegas and High Point. They include upholstered beds, which its Jaymar division has been doing well with, and new wood-upholstery beds and functional beds in the Dinec line.

“A bunch of new import players are now offering upholstered beds but they don’t typically offer beds that combine wood and upholstery,” said Darveau. “We see this combination of materials as a big opportunity for Dinec, which offers a huge range of options, including 150 fabrics and leathers and 26 wood tones.” He added that Jaymar offers a wide range of choice in its fully upholstered beds, with 25 leathers and 250 fabrics available. Jaymar’s line also includes a new storage bed configuration that has emerged in Europe where the mattress platform lifts to reveal a large cavity beneath. “Space is at a premium in big cities and other situations with smaller living areas,” said Darveau. “Function is growing more important.” As far as price, Darveau said that Dinec’s big winners are priced under $1,200 retail and that if a bed costs more than $1,999, it’s often “a deal breaker.” Soft contemporary styling is where the action is, he added, and color is playing a bigger role in the bedroom. In merchandising, the BDM family of companies will continue to emphasize product brochures and tear sheets in both printed and digital form. In 2013, BDM will add interactivity to many of its merchandising tools, so that consumers can scan a printed sheet and access more information online. At Magnussen Home, 2012 turned out to be a year of “good growth,” said Nathan Cressman, senior vice president of product development, sales and marketing. For 2013, he expects the “status quo” in the first quarter followed by better growth in the second quarter. To drive growth, Magnussen Home will be emphasizing contemporary and transitional styles in different finishes plus new reclaimed wood looks. Mixed media in metal and wood also will be important, particularly in case pieces. In terms of merchandising support, Magnussen Home will continue to emphasize its QuickFlex 250 program, which allows multiple bedroom groups to be mixed on a single container with minimum orders of just 250 cubic feet. HGO – GARY JAMES is a freelance writer based in Chapel Hill, North Carolina. He spent over 20 years with Furniture/Today, serving as case goods editor and special projects editor, directing the editorial content of Leather Today, Bedding Today, Global Textiles Today and other supplements and sections. HomeGoodsOnline.ca

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UPHOLSTERY >>>

Embellishing style and value IN THE WORLD OF UPHOLSTERY, AN UPTICK IN SALES AND A SAVVIER CONSUMER PROMISES AN EXCITING 2013. PRODUCERS ARE PROMISING TO FOCUS ON FASHION-SAVVY, STYLISH PRODUCT THAT PROMISES VALUE TO THE CONSUMER. | BY ASHLEY NEWPORT

 The Model 4708 from Trend-Line captures a modern mood with its large bumper seat. The mixture of back cushions accentuates the look and comfort.

 Part of Superstyle’s LeatherBrand collection, the L771 has a flared architectural design that’s enhanced by the rich button tufting. This style would be at home in either a modern or classic living environment.

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 This settee, Model 531, is part of Last Impressions, the new home accent collection from Superstyle Furniture. The collection will feature an assortment of window benches, settees, end-of-bed benches and chaise lounges in both fabric and leather. The 531 features a sweeping silhouette with long sleek legs and showcased in a subtle two-tone chenille.

 Palliser has been focusing on contemporary styling of late, including the leather covered Miami group seen here. This group, which includes a sectional, features web-supported suspension, high resilience foam seating and pinned and glued joints for frame strength.

HILE IT WOULDN’T BE

accurate to say 2012 was a banner year for the furniture industry, some companies saw positive growth and bursts of activity that have them optimistic for a steadier, slightly more prosperous 2013. Pair that optimism with; what the evidence suggests is a growing consumer demand for more creative upholstery, an exciting year lay ahead. “This year started off quiet but business has been steadily growing since the spring,” says Diana Sisto, creative director at the Toronto-based and familyoperated custom upholstery specialist Brentwood Classics. “Right now, it’s craziness. We’re extremely busy and our factory is at capacity. As far as next year goes, I’m hoping we’re going to continue to be busy. We have a lot of projects and programs on the go with majors like The Bay and other private labels.” On the design end, Sisto found the most popular items were those with somewhat modern embellishments and details, such as pieces with button tufting. She also found, much to her surprise, that large-scale pieces were also popular.

So why were modern and larger pieces such strong sellers during a time of downsizing and economic uncertainty? “Probably because they were unique and fashiondriven,” she says. ‘The styles were better than the typical mass produced piece.” When it comes to trends, Sisto is seeing a positive response to more stylish pieces that pay homage to the past. “Anything that makes a piece a little more ornate or that has to do with art deco and 1920s and 30s trends. Those are the most interesting right now,” she believes. As to what’s feeding the consumer’s desire to own a chair or sofa that harkens back to a bygone era, Sisto says everything from fashion shows to magazines to the popularity of the HBO hit show Boardwalk Empire are pushing the art deco trend. But when it comes to specifics about if or how Brentwood will capitalize on the craze, Sisto says people will have to wait to 2013 to learn more about the brand’s new silhouettes and fabrics. “We’re always designing new things. We’re fashion forward,” she maintains.

 This contemporary sofabed is from Palliser’s My Comfort collection. The Holiday is also offered in a sectional configuration in some 200 leather choices.

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Before you furnish your showroom, see how we’ve furnished ours.

FASH IO N - FORWA R D

Designed to be smaller scale and hip. Made from top-grain leathers and available in 9 colours. Take advantage of our special in-stock program featuring 3 motion collections at 3 attractive price points. Power option available on all items.

EN DU R I N G VALU E, PLU S GLU C KSTE I NH OM E

Save up to 30% through our cube-direct program with 22 unique collections from Asia, including high-style yet wonderfully affordable GlucksteinHome – designed by Canada’s own Brian Gluckstein! Enjoy the benefits of container pricing when you order a 250-cube minimum.

Meet Brian Gluckstein in our showroom! Watch for dates!

COMP LIM E NTARY FO OD

Savour catered cuisine all day Friday through Tuesday. Enjoy complimentary cocktails starting at 3:00pm.

J UST 7 M I N UTE S AWAY FROM TH E I NTE R NATION A L C ENTR E

For free shuttle service call 905-790-0030. (Shuttle bus pick-up is located in front of the Conference Centre.) Or take a cab and we’ll pay your fare.

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B O O K YO U R A PPO I NTM ENT TO DAY

Call your Furniture Brands representative or our showroom at 905-790-0030. Showroom Schedule Thursday, January 10: by appointment only Friday, January 11: 8:00am to 8:00pm Saturday and Sunday, January 12 and 13: 8:00am to 8:00pm Monday, January 14: 8:00am to 8:00pm Tuesday, January 15: 8:00am to 2:00pm

This year’s Canadian Home Furnishings Market on January 10-15, 2012 features an array of ideas for your store. For even more inspiration visit the 26,000 sq. ft. Furniture Brands showroom which is just a short, 7-minute drive from the International Centre on Airport Road. Discover exciting new products, designs and collections from some of today’s leading names, all under one roof.

A N EW T WIST

It’s Thomasville like you’ve never seen before… new styles, fabrics, colours and collections. Come and see how Thomasville has embraced the latest trends.

R E- DEFI N I N G C L ASSIC STYLE

See the latest in timeless form and function from Drexel Heritage. You’ll admire the artistry and details that elevate each piece from simple to stunning. And this year we’re offering flexibility in finishes, colours, textures and customization like never before.

See it all. All in one place. www.furniturebrands.com HomeGoodsOnline.ca

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 Top: The Model 1221 sectional from Dynasty Furniture is a good example of the Calgarybased producer’s focus on strong, clean lines and casual elegance with a modern flair. Right: The classic, modern Model 1223 from Dynasty shows the grey tones and deep colorations that should hallmark many upholstery collections this year. 

Other industry aficionados also noticed a positive trend in sales throughout the year, including Faizel and Karina Sunderji, the husband-and-wife team that acts as president and vice-president, respectively, of the Calgary-based Dynasty Furniture. “Business was pretty good,” Faizel Sunderji says. “We definitely saw growth and regained business in the overseas market.” And much like Brentwood, Dynasty focuses on producing a fashion-savvy, stylish product. “We produce fashion forward products with a short lead time,” says Karina Sunderji. “The consumer feels like he or she is getting a unique product at an affordable price. Consumers are more selective and want choice in fabric and configuration.” Like others suppliers and retailers in the industry, the Sunderji’s have seen a rise in demand for smallerscale pieces — a rise that has accompanied the growth of the urban condo market. In fact, one of Dynasty’s best sellers was its Metro collection, a line designed for small-scale living. “There’s a need for condo-size pieces with smaller

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scale frames that still focus on comfort and style. People want lots of options in that size and frame. Our fabrics are interchangeable. We have hundreds of fabric selections that can go on 100 different frames, so a lot of versatility and choice,” Ms. Sunderji says. And as far as appearance goes, Ms. Sunderji says elegant and chic are most in demand. “Clean lines are strong, but we’re seeing softness becoming more popular,” she says. For 2013, Dynasty plans to focus on “casual elegance.” “There’s a push towards a classic look with modern flair. We’ll use silver tones, grey tones and deep colorations. There’s also been a resurgence of dark indigos and blues.” For some companies, business was truly booming. At Palliser Furniture Upholstery — where the trend towards more modern and contemporary pieces was also noted — sales defied expectation. “Business for Palliser has been above expectations and way above industry average,” says John Power, eastern Canada sales manager for this country’s

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Do you know why and what the Canadian consumer is buying?

Home Goods Online does! CANADA COUNTS IS OUR INDUSTRY’S FIRST-EVER LOOK INTO THE MIND OF THE CANADIAN CONSUMER. WE ASKED MORE 7,600 OF CONSUMERS FROM COAST-TO-COAST AND ASKED THEM ABOUT THE FURNITURE, MATTRESS AND APPLIANCE SHOPPING EXPERIENCE. In this 40-page report, you will:

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Every Canadian manufacturer, distributor and retailer will find Canada Counts to be an invaluable planning guide in this tough economy. You simply can’t be without it.

The report covers the nation as a whole, as well as chapters on each of the major regions: Western Canada; Ontario; Quebec and Atlantic Canada. It opens with an introductory essay on the current state of the Canadian consumer.

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A SURVEY OF CANADIAN CONSUMER BUYING INTENTIONS FOR FURNITU RE, MATTRESSES , MA JOR APPLIANCES , TELEVISIONS AND OTHER BIG TICKET HOME GOOD S

largest upholstery producer. “We are gaining market share in Canada and the U.S. Based on our order writing between (this past) October’s High Point Market and today, we are expecting to start 2013 the way we are ending 2012 – very strong and with double digit growth. “I do not believe that is indicative of the market, though. I believe the market will be somewhere between flat and three per cent for the first half of 2013,” Power continues. “We anticipate larger increases then that and more market share gains.” The experiences of other industry experts are more in line with Brentwood’s Diana Sisto, however. Many say 2012 was inconsistent and ran the gamut from quiet to overwhelmingly fast-paced. “This year was strong but inconsistent,” confirms Kam Sangha, marketing manager at Van Gogh Designs, the contemporary specialist based in Vancouver. “Orders were placed in bits and bursts. October was really busy, but September was our slowest month in terms of bookings.”

Sangha is preparing for 2013 by extensively researching anything that might impact the market – including global economic uncertainty and growing consumer debt – and he’s confident sales will be steadier. “I don’t think there will be a big up or down swing in the market. I think the bookings will remain inconsistent, but we’ll have steady sales.” And speaking of sales, what has netted Van Gogh the most sales this year? “Our Manhattan sofa and the Watford and Jacob sectional sofas,” Sangha reports. All three sofas are classic in their appeal and design, boasting solid colours and traditional rectangular frames. Sangha believes their success is owed to their classic, clean lines and contemporary flair. While there’s nothing outrageous about any sofa, they showcase contemporary influence in the arms and backs. As for next year, Sangha says extremes will be big. “There will be ultra-contemporary pieces with sharp detail and furniture with wide arms and wide lines; traditional is also coming back,” he says, adding, “People will also be looking to add one wild piece, such as a bold item with a lot of colour. [Consumers will also gravitate to] geometric prints, classic stripes and floral patterns.” Van Gogh designs will also be launching a new merchandising program in the New Year to increase brand awareness. “As a wholesaler, we sell to many merchandisers. We might give more point of purchase materials, such as in store signage, banners and brochures, to retailers. But it really does depend on the retailers. Sometimes they do ask for help to boost sales.” Story continued on page 43 >>>

 Left: The clearly contemporary armless sofa, wisely called the Fab4, is from Brentwood Classics’ UR_Style collection. Right: Although designated as having a traditional style, the Model 1230-38 from Brentwood Classics clearly shows an Art Deco influence. Offered in fabric as a sofa, loveseat, chair and ottoman.

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WHEN IT COMES TO DINING ROOM, MANUFACTURERS ARE SEEING THE NEED TO FOCUS ON PIECES THAT ARE UNIQUE AND ELEGANT WHILE OFFERING TOP-NOTCH QUALITY TO A SAVVY CONSUMER.

Creating a transitio 24

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<<< DINING ROOM

Designed by Blake Tovin for West Bros. Furniture, Phase offers a distinctly modern look with a rectangular table and stylishly upholstered square-back chairs. While transitional remains the key style for dining room, West Bros. sees great opportunity in the contemporary style category as evidenced by this collection, which was one of their best sellers in 2012.

BY ASHLEY NEWPORT

ional buzz

T’S NO SECRET THAT THE LAST FEW

years have been difficult for the furniture industry. Consumers have less disposable income and are less likely to splurge on a higher-end dining set than they were when they – and the economy – were flush with excess cash in 2007 and earlier. That said, many furniture aficionados have said that while sales have been largely unsteady, every year is better than the year before, and shoppers haven’t lost their taste for fashionable and elegant dining sets that are equal parts unique, modern and customizable. “Business in Canada is all over the place,” confirms Mark Wiltshire, president of Furniture Brands Canada, the wholly-owned subsidiary of the St. Louis, Missouri-headquartered Furniture Brands International. “But are we up [in sales]? The answer is yes. We’re quite happy.” Wiltshire has good reason to be optimistic. With the United States economy slowly recovering — which is a good indicator for Canada — and domestic sales growing instead of receding, companies with several brands to work with (Furniture Brands has ten) can focus on lines that create the most buzz. Wiltshire sings the praises of the solid performance of his company’s Drexel Heritage dining sets, which are made with a white wood base that’s ideal for customization. “Drexel Heritage has been a hit because we’ve taken a different touch with casual dining. We have a middle-to-upper price point piece with white wood that lets customers choose the finish. We’ve nailed the looks, which are right on trend. We offer flexibility and we’ve kept it simple,” Wiltshire says. And speaking of trends, Wiltshire says he’s seeing a push towards urban chic and smaller scale pieces. “Flexibility on scale is important, especially with so many people living in condos,” he says. “A lot of people are also looking for very eclectic pieces. Some of our high-end brands are more transitional and less matchy-matchy. We do get customers who like to mix and match. One of our hottest brands is Hickory Chair because the sizes, finishes and choices are endless.” HomeGoodsOnline.ca

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The Louis Philippe dining group from West Bros. offers the consumer a classic look centred on an oval pedestal table with matching chairs and is a good example of the dominance transitional styling has had in this category over the past year or two.

 This dining room is part of the Renderings collection from Drexel Heritage, one of the ten brands marketed by Furniture Brands Canada. Seen here is the Leade oval dining table with the Volt dining chairs, with the Tracery credenza in the rear. This group is offering a broad array of finishes.

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When it comes to finding business unpredictable and consumers savvier, other industry executives generally agree with Wiltshire. “Business in general remained fairly steady in 2012, although I think we will find a slight decline when all is said and done. I think the defining word for the year is ‘inconsistent’,” says Greg Brown, vice president of sales and marketing for the Knowlton, Quebec-based Camlen Furniture. “Our experience is that the Ontario and Quebec markets are tenuous with growth coming from Alberta. It seems like the trends in furniture are being defined by the big box US advertising giants such as Restoration Hardware and Pottery Barn.” But while Brown sees desire among Canadian consumers for goods reminiscent of those designed south of the border, he says unique, higher-end pieces still perform well. “Camlen continues to do well with our upper end dining tables and entertainment centres. Our trestle tables and round onion pedestal tables are our best sellers because they are unusual compared to what else is available and the finish is warm and inviting.” And while Camlen has the twofold task of staying true to its classic antique look while embracing modernity, Brown is confident it can respect its roots while producing on-trend pieces. “We are trying to stay true to our roots as a manufacturer of ancestral style while at the same time capitalizing on the popularity of rustic looks that large companies are promoting. We want to remain supportive of our own look,” he says before adding that Camlen intends to, quite literally, embrace colour in 2013. “It looks like a return to colour is on the horizon for the furniture business. We are responding with some bold colours that show off our capabilities and bring life to the home.” For Tom Halvorsen, vice president of sales for Hanover, Ontario-based case goods producer West Bros. Furniture, a somewhat shaky 2012 has given him hope for a stronger 2013 – a hope contingent upon the continued growth of the American economy. “This year continued a somewhat lackluster trend in the industry,” Halvorsen says. “The last two or three years have been mediocre overall. As for 2013, we are very optimistic because firstly, the U.S. election is over. Secondly, the retail element in the

U.S. seems to have picked up. Thirdly, we’ve been enjoying a positive bounce in bedroom and dining as we’re transitioning into more transitional and contemporary styles. We’ve seen some nice activity over the last six months.” One word that comes up a lot when talking to industry insiders is “transitional.” While consumers may still be holding tight to their wallets, they aren’t quite so willing to settle for pieces deemed too austere or old fashioned. “Two brands that were consistent [in sales] for us this year were Louis Philippe and Imperial View,” Halvorsen reports. Louis Philippe offers a classic look with an oval pedestal table with matching chairs, while Imperial View boasts a round table with chairs. Another brand Halvorsen is excited about, Phase, offers customers a distinctly modern look with a rectangular table and stylishly upholstered squareback chairs. And despite West Bros. use of classic woods such as cherry, maple, walnut and oak, the company believes contemporary is the future of the industry, and it’s a future Halvorsen is ready to embrace. “We’re strengthening ourselves by slowly incorporating contemporary aspects into traditional designs,” he says before adding it’s important to recognize that contemporary in North America is not the same as contemporary in, say, Italy. “Italian contemporary can be more underscale and small, while our pieces are a little more generous. Not big, but bigger.” And speaking of exclusively North American flavour, Halvorsen says such consumers truly love an exquisite finish, something his company intends to capitalize on next year. “What we have is a brand new custom finish display,” he explains. “Customers can take any of our collections and see what they’ll look like with any of our 15 finishes on them. Customers will be able to see this online and in-store, so they’ll be able to see it in the comfort of their own home or when they go to a West Bros. dealer.” So, with so much talk about the future, what is on the horizon for retailers and suppliers as 2012 becomes 2013. “More of the same [as 2012],” says Derrik Middleton, the national sales manager for Abbottsford, British Columbia-based Woodworks Solid Wood Furniture. “Business will probably be flat with some slight improvement. Perhaps there will be a one to three per cent increase in sales.”

This Onion pedestal table from Camlen seats eight comfortably around a 72-inch solid top on a solid turning made from a 16-inch block of wood. The form is complimented by the wood specialist’s Highback Windsor chair, a classic timeless style.

Camlen’s Double Pedestal Trestle table eliminates the concern of who straddles the table legs. This birch base table has a 1¾-inch thick top and comes with two company boards which increase the overall length of the table by 32 inches. HomeGoodsOnline.ca

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The Newport collection from Woodworks features a one-inch thick top on a trestle base with two self-storing leaves, which all its width to be extended to 92-inches. This group is also offered in oak and maple.

 The Morgan dining group was one of Woodwork’s bestselling sets in 2012. The British Columbia-based furniture maker offers this round solid-top table in both 54-inch and 60-inches sizes. It’s also available with a 20-inch leaf

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But while the prediction might seem disappointing, one word that comes up almost as often as “transitional” is “optimistic.” “We are being optimistic,” adds Middleton. “But there’s a lot of uncertainty in the world with [the situation] in the Middle East and the fiscal cliff [in the U.S.] and people are holding onto their money.” So while people may be holding onto their money until they see Congress reach a workable resolution to the pains that ail Canada’s nearest and dearest neighbor, they’re spending on – you guessed it – transitional pieces. “One of our best sellers is our Newport dining room set,” says Middleton. “It’s transitional and it has clean lines and a nice finishing. We think it’s the clean lines that people find so attractive.” Middleton also says certain classic vestiges of dining room sets – like buffets and hutches – are becoming less popular. He’s also noticed a trend

towards hiding dishes instead of displaying them. “We’re looking for that new cabinet that people want,” he says. “People want their dishes hidden away. They’re moving away from glass and curio cabinets.” And while more compact furniture is growing in popularity with the growth of the condo market, Middleton – much like West Bros’ Tom Halvorsen – says when it comes to dining sets, bigger is still better. “We’re still seeing bigger dining room sets,” he says. “We’re at a medium to high-end price point, so more affluent people purchase our products and their homes are usually a little larger.” So while it’s clear that consumers are moving towards modern pieces, suppliers still sense fiscal nervousness, meaning price points have remained largely stationary. “Price points probably won’t go up a substantial amount [in 2013],” Middleton says. “The primary focus on our middle market will continue into next year.” Others are focusing on continuing to deliver goods that are as good as their price tag suggests. “We’re more sensitive to [setting] prices the right way,” Halvorsen remarks. “We won’t skimp to get a price. We’ll make it the right price. We’re about style, design and quality.” Others agree with Middleton that consistency in prices will likely carry on to 2013. “The Camlen production team has been working hard at maintaining our price point and we have been clear to our clients how we would like to maintain that strategy, particularly in this borderline economy,” says Camlen’s Brown. So while 2013 promises modern pieces that are elegant, colourful, versatile and consistently priced, it also promises some trade shows where suppliers and retailers can display their wares. Furniture Brands Canada will set up shop not only at the Canadian Home Furnishings Market in Toronto this January but also at both editions of the High Point and Las Vegas markets as well. Meanwhile, West Bros. will show at the both April and October High Point Market. Camlen and Woodworks will both exhibit at the Canadian Home Furnishings Market as well. HGO – ASHLEY NEWPORT, a regular contributor to the HGO Merchandiser, is a Toronto-based freelance writer who primarily writes for business and trade publications. Her specialties include food, hospitality and emerging social/business trends.

<<< APPLIANCES

This urban loft style kitchen features a number of Jenn-Air branded Euro-style stainless and Custom Overlay series appliances including its new 30-inch double wall oven with V2 Vertical DualFan Convection System (at left).

Looking ahead, looking up?

STRUGGLING OUT OF A SLUMP, THE CANADIAN APPLIANCE INDUSTRY IS GUARDEDLY OPTIMISTIC FOR 2013.

BY ANDREW BROOKS

HE MARKET’S STILL IN DOWN

mode, and things won’t pick up to a significant extent any time soon. That’s the consensus of major Canadian appliance manufacturers, distributors and retailers, backed up by retail commodity figures from Statistics Canada. The latter show that retail sales of major appliances came in at a total of $1.96 billion for the first half of this year, essentially unchanged from last year and just shy of the $2.0 billion sold in the first half of 2010. “We see the slower growth continuing in 2013,” says Norm MacNeil, director of product and brand development for Electrolux Major Appliances Canada. “No one expects a dramatic turnaround or double digit growth anytime in the near future.” But while MacNeil expects the first half of next year to be flat or perhaps even slightly down, he

does say there’s reason to hope for a somewhat stronger performance after that. “In the summer we could see a little more momentum, and later on we do expect to see year-over-year growth for the industry.” At Cantrex, Jim Mahoney, assistant vice president in charge of furniture, appliances and bedding, also sees some signs for hope. “The industry’s off right now in unit sales,” he says. “The industry anticipates a slight uptick in units in 2013, but we’re more upbeat than that – our sales will probably double what the industry is trending.” As of the end of October, he says, Cantrex saw an almost 12% increase in revenue, and plans are to give this growth major help through marketing programs for Cantrex members. Long-time industry watcher Warrington Ellacott, Whirlpool Canada’s senior manager of HomeGoodsOnline.ca

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 Hi-efficiency laundry, such as the pair seen here, will lead LG Electronics Canada’s efforts to win over the consumer in 2013.

LG Electronics Canada will focus on the premium appliance category  in 2013, emphasizing products such as French door refrigerators, high-efficiency laundry and convection ranges. The company is anticipating growth rates of between 1% and 3.5% this year.

government relations, has an upbeat take too. Yearto-date (figures are as of October), the industry has been tracking 1% across the five major appliance categories, which is actually quite good, Ellacott says. Since around 2005 annual sales have been in the 4.5 million unit range. Globally the appliance sector is still having a rough time, but Ellacott finds that the sector in Canada has seemed to hold its own – “economic factors are much more stable here.” Ellacott thinks the industry will come in at the 4.4 – 4.5 million units range this year. “Compared with 2007-2008 when the downturn kicked in, it’s actually pretty predictable and stable.” For Philippe Meyersohn, general manager of marketing and training for GE Appliances/Mabe Canada, the slow market will continue for now. “When you look at the compound annual growth rates for 2000 to 2006,” he says, “it was around 7%. From 2006 to the present, it’s been at 0%. We see a flat industry for next year.” Laura McGowan, senior brand manager/home appliances, for LG Electronics Canada, has a positive outlook conditioned by the markets that LG addresses. “Because LG products mostly focus on premium appliance categories that are showing growth, such as French door refrigerators, highefficiency laundry and convection ranges, we expect

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to see a moderate increase in demand for 2013,” she says. LG anticipates growth rates between 1% and 3.5% for 2013. Robert Sheppard, senior director of merchandising for appliances at Mega Group, anticipates a 1.5% increase in net sales for 2013. “The housing market being down is a concern for us, of course,” he says, “but that’s only one of the three markets we serve – we also do lots of business in renovation and replacement.” Sheppard notes that while the industry is experiencing a decline in showroom traffic, the sales closing rate is going up, a phenomenon he attributes to the much greater online research consumers are doing before they ever set foot in a showroom. “Consumers are finding out about innovations and new features online, and narrowing down their selection of sellers before they shop,” he says.

MANAGE THE MIX “In a flat market you need to have the right mix of products,” Meyersohn says. That includes representation at the opening price point (OPP) level, but retailers need to be sure they have the means to upsell, which means having representation at the high end. “In our case, we like to have an

GE Profile, the brand marketed by Mabe Canada, will offer consumers more and better French door refrigerators with integrated water dispensers, as well as smaller, 18-inch dishwashers and 23-inch ranges.

 Whirlpool Canada has introduced what it believes to the North American appliance industry’s first French door refrigerator with external ice and water that fits into a 33-inch opening, making it competitive in the condominium renovation market.

assortment that lets us take the consumer who may want an $899 range into something more complete at around $1,299 or $1,499. To do that, you need enough of an assortment to carry the consumer.” Meyersohn recommends dealers focus on a smaller number of brands so that a fuller range of each one can be promoted. For MacNeil, the higher end is also critical. “The independents need to focus on a more premium set of products, instead of going head to head on the price points that a lot of the nationals tend to focus on,” he says. “Independents have a different skill set that enables them to sell a better mix and to benefit from their specialty – dealing closely with consumers and offering greater product knowledge.” Asked whether the industry is experiencing a drop in average unit selling price, Meyersohn says he doesn’t think so – for most of the market at least. The ultra-premium segment isn’t experiencing price pressure, but the mass premium segment is, driven largely by the fact that consumers are drawing a distinction between categories. “In the past you could have a full suite of appliances in the mass premium space, but now people are paying more attention to what matters to them – so they’ll spend more on a range, but less on a dishwasher. They’re being more selective.” Price pressure is even greater at the mass premium level, which is where manufacturers have to be careful to lead with innovations that make a real difference to consumers. The OPP segment, Meyersohn says, will be impacted by cost increases in materials, and also by increasingly strict Energy Star requirements. The latter will force products to drop the imprint in order to defend pricing, or maintain the rating but at a higher price. “A few tried to take price increases last year, and I can’t say they were overly successful,” MacNeil says. “The overall industry selling price has gone up because of that.” He anticipates unit sales will probably stay flat and prices will probably do the same, with perhaps a slight increase. “Consumers are still being cautious in their spending habits,” he adds. “Figures for housing starts are reflecting that.” A lot of dealers have just given up on the OPP segment, says Jim Mahoney. “It’s important to have the OPP goods, but there you’re only trading dollars. Independents can’t perform in that sandbox with the big-box guys. You just can’t make much on a $400 fridge!” The growth is being driven at the premium end, he says, where independents can leverage their service and knowledge advantages to move consumers upstream. HomeGoodsOnline.ca

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“Overall industry selling values are okay,” Ellacott says. He knows the drop in housing starts will have some impact, but he says it’s important to remember the renovation market is also helping to drive sales. “The renovation space is a nice bellwether of activity,” he says. “When you look at sales of premium products, they’re doing very well. Built-in wall ovens are up 13% year-to-date. That’s a sign that the reno space is doing quite nicely. Dishwashers are up too. These are good signs.” There appears to be some stabilization with regards to ASPs in most categories, McGowan says. “LG will continue to drive value by introducing innovative, smart appliances that provide consumers with solutions, rather than price points,” she says. For 2013 LG will continue to focus on products that attract a premium consumer and the company will make efforts to stabilize ASPs. LG is ahead of the curve on smart appliances, and McGowan is accordingly more optimistic about prospects here than are some competitors. McGowan points to 36-inch French door refrigerators as one category to watch, along with high-efficiency top-load washers and double ovens. For next year, she says, the key purchase criteria will be reliability, energy efficiency, convenience and time savings, and smart features that optimize energy savings, provide remote access and control, and connect via WiFi.

Who’s going to the show?

he 41st edition of Canadian Home Furnishings Market will take place from January 12 to 15, 2013 at the International Centre in Toronto. GE/Mabe won’t be in direct attendance, but will have a byinvitation launch event for dealers nearby. The brand will showcase new products and outline some of its plans for 2013. Whirlpool will be at the show, in the Pegasus Ballroom. At press time Warrington Ellacott couldn’t confirm what plans were for a dealer show. Cantrex will be in Hall 3, Booth 3316. On tap will be a new slate of services Cantrex is introducing from its new U.S. parent Nationwide Marketing Group. Cantrex will also hold an event at the nearby Holiday Inn, where

it will show the GE Allura brand, which is exclusively available to Cantrex members. Electrolux won’t be at the show itself but will be showcasing product and entertaining its dealer base at a nearby hotel on Dixon Road. There will be some internal training as well as a media event. LG will not be at the show, Laurie McGowan says. At press time she said plans for a dealer event had not yet been decided. Mega Group will be at the event, showcasing its BrandSource branding initiative, talking about new market innovations and offering merchandising advice and insight.

THE ENERGY EDGE For Jim Mahoney, the Energy Star rating will be a key feature influencing purchase decisions for the upcoming year. And he does expect smart appliances to make inroads. “More suppliers are talking about smart appliances,” he says. “As the noise level increases, consumers are becoming more and more aware.” He notes higher-end features and benefits are virtually “dominant” among independent retailers, with four-door fridges and high-efficiency top-load laundry products commanding increasing attention. “Consumers want benefits that can save them time and free up time for things they’d rather be doing,” says Norm MacNeil. “Induction cooking will be one likely focus for 2013. The double oven has had a slightly quicker start in the U.S. market, but we’re hoping it continues to gain momentum in Canada.” There’s been a market ‘rebalancing’ between top-load and front-load laundry products, says Philippe Meyersohn, with top-load bouncing back to a half share of the market. Capacity and ease of cycle selection are also critical. In dishwashers, he sees stainless steel interiors gaining market share, with versatility and flexibility also top of mind. Examples are the ability to do half loads at reduced water and energy consumption, and the ability to move interior elements such as the cutlery basket to allow more flexible, efficient use of space. “French doors are becoming more widespread – now you even find them on 30-inch models,” Meyersohn says. Newer integrated water dispensers impinge less on interior capacity – Meyersohn notes that GE has introduced a model with sensors that detect the capacity of the glass and regulate the amount of water accordingly. GE also plans to introduce a hot water dispenser next year. Noting the boom in condo construction, Meyersohn says that the trend in kitchen appliances increasingly favours smaller sizes, such as 18-inch dishwashers and 24-inch ranges. And with the industry wondering what comes after the stainless steel finish, he says GE will introduce a ‘slate’ collection that features a matte grey finish in the second half of 2013. It’s already been very successful in the U.S., he says. Robert Sheppard believes induction cooktop technology, already widely accepted as a major trend, is on the verge of a market breakthrough now that units are more affordable and more suppliers are onboard. In refrigerators, he notes the move to bottom-mount units, which he expects will make even more headway now that slimmer 30-inch models, which are ideal for the replacement market, are available. In laundry, he attributes the rebound of top-load in part to problems with odour and gasket mold on frontload units, in part to the fact that top-loads now Story continued on page 43 >>>

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MOTION UPHOLSTERY >>> Arizona is contemporary motion furniture group from the Montreal-based Via Furniture.

BY GARY JAMES

POWERED to SELL POWER RECLINE IS EMERGING AS THE CONSUMER’S MOST DESIRED FEATURE. BUT STYLING AND QUALITY, COUPLED WITH TOP-NOTCH SERVICE, IS WHAT’S GOING TO DRIVE SALES IN THE MOTION UPHOLSTERY QUALITY CATEGORY IN 2013.

ITH ONGOING REFINEMENTS IN BOTH

features and styling, including the availability of power on more models, the motion furniture category is poised for another solid year of growth in 2013, leading sources agree. The key to success? Keeping assortments fresh with new designs and covers and backing up quality product with topnotch service and support. Those producers best able to meet those lofty goals will be rewarded with additional floor space, as retailers look to streamline sourcing and improve their own ability to meet consumers’ needs in a highly competitive environment. At Bugatti Design, a producer of Italian-inspired contemporary seating, motion plays an increasingly important role in growth. The company’s overall sales were up 25% in the fiscal year that ended in September, and the first few months of the new year also are off to a good start, said Enzo Basilicata,

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owner. He attributes much of that growth to rising motion sales. “We have worked hard to change the design of our motion products to enhance their style and comfort,” said Basilicata. “We’ve refined our mechanism so that our recliners are less bulky and more stylish. Now, you can’t tell the difference between one of our reclining chairs and sofas and a piece that doesn’t recline.” Today, Bugatti Design’s motion furniture blends more easily into rooms, offering the added function without compromising design, Basilicata added. “Motion isn’t an easy category to succeed in, because both elements — style and function — have to be right.” Handcrafted in Anjou, Quebec, Bugatti Design’s motion line features chairs, sofas and sectionals priced in the medium to upper-medium segment of the market. Cover choices include hundreds of imported and domestic fabrics and leathers, as well as Ultraleather, a durable yet stylish leather alternative. Like the rest of the company’s line, motion products feature

Pinnacle was La-Z-Boy’s top-selling recliner in 2012. Plushly pillowed with a high back, channel-stitched details and full-body chaise reclining comfort and support, Pinnacle also features PowerReclineXR+. The power-driven mechanism enables consumers to adjust the back and leg rest independently in any combination of positions while also setting the headrest position and lumbar support. 

 The Riding Mountain recliner from Palliser is a modern take on a timeless classic. Part of the company’s My Comfort line this smaller-scale piece features an exciting new swivel glider mechanism.

memory foam and feather cushioning and ergonomic shaping. At The Canadian Home Furnishings Market in Toronto in January, Bugatti Design will continue to expand its motion line with new models and covers. Basilicata sees lighter tones gaining strength in 2013, along with fresh tones of yellow and green. “Many of our inspirations come from Italy,” said Basilicata. “We regularly attend the show in Milan, and the color and design trends there are a year or two ahead of what’s happening in North America. We always come back with new ideas for our own customers.”

VIA: PRODUCT INNOVATION IS THE KEY Also enhancing its motion lineup in 2012 was Via, a producer of traditional, modern and classic-styled upholstery. The company enjoyed a 3% gain in motion sales in 2012, coming on the heels of a very strong 2011. “We expect 2013 to be a good year for motion, too,” said Sam D’Andrea, president. “The economy continues to be tough — we’re not out of the recession yet — but we see new opportunities emerging as retailers devote more attention to the motion category.” Product innovation has been the key factor driving growth in motion, according to D’Andrea. “The category has changed so much in the past few years. The styling is better, and so is the function. It’s a fun category that salespeople like to sell, with benefits that the consumer can readily see.” Also contributing to the motion category’s growth are ongoing

lifestyle and demographic changes, D’Andrea added. “We now live most of our time in the living room. We’re taking our laptops there to do work, and it’s also where we watch TV, visit and often eat meals. Everybody wants a comfortable place to sit, especially anybody that’s getting up in age, like Baby Boomers.” At the TCHFM in January, Via will show new recliners and other motion upholstery with an enhanced mechanism that allows for multiple adjustments in the back and seat position. “It’s a much smoother mechanism that allows the seat to move forward and backward. The back also is adjustable, providing a higher level of comfort.” While shades of gray did very well in both leather and fabric in 2012, D’Andrea sees the market moving more toward earth tones. “Taupe tones that combine beige and gray are gaining, and whites also are getting a little more beige. The color palette is getting lighter.” To help retailers and salespeople sell motion, Via is producing a new catalog for 2013 that highlights its key products and options. In addition, the company is developing a distinctive metal tag for its furnishings to highlight the made-in-Canada nature of its products. Via’s line is priced in the medium range, with a full-grain leather loveseat typically priced at $3,000 and a sofa at $3,500. According to D’Andrea, pricing should hold fairly steady in 2013. “I haven’t heard any rumblings about price increases from our leather or foam suppliers, so things shouldn’t change much anytime soon.” HomeGoodsOnline.ca

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The Sacha sofa, a transitional design introduced by Jaymar in October, features a new, retractable headrest that is adjustable to any position. Seats are available in two widths, with a choice of 120 topgrain leathers and 250 fabrics. The wall-a-way reclining mechanism can be added to any seat in the group. 

 Bugatti Design’s best sellers include the transitionally styled

 El Ran’s high leg Layla collection features box seating, flared,

Cosenza sofa-loveseat group. Available in leather, fabric or Ultraleather, Cosenza features ergonomic memory foam seating and an option of manual or electric mechanism. A third option — electric mechanism with rechargeable battery — also is available for consumers who don’t want to keep their furnishings near an outlet.

stylized arms and optional nail heads. The sofa and loveseat have an inside releases handle to recline, while the chair has a push back mechanism for reclining. Three colours of wood stain are offered for the leg and is seen here in a black, heavy grain, satin top finish leather. Other options, such as power recline are offered.

At motion specialist El Ran Furniture, sales are projected to grow 13% in 2013. The category got off to a slow start in 2012 because of the sluggish economy, but introductions made at the April 2012 High Point Market have injected new life into El Ran’s sales. Successful intros included new high-leg motion chairs with a stationary look and low-profile contemporary models with pop-up headrests. “These chairs provide the perfect balance of comfort and support for the legs and head while delivering a very stylish look,” said Eric Abecassis, vice president of sales and marketing. “We’re hearing from retailers that store traffic is beginning to pick up and these new models put us in a great position to pick up sales as business comes back.” Another factor working in El Ran’s favor is its ability to customize, Abecassis said. In 2011, custom orders accounted for 61% of sales; in 2012, that figure grew to 72%. “We offer 650 fabrics, 285 leathers and 27 sectional options,” he said. “Whether it’s a contemporary frame or traditional frame, we offer consumers the ability to create the look that’s right for them.”

El Ran also delivers products within 10 days of ordering, a quick-ship response that importers can’t match. “Many retailers in the U.S. and Canada are reconsidering their import programs and adjusting their mix to source more locally,” said Abecassis. “They recognize that container programs have hidden costs, both in quality and service that can affect their bottom lines. Interest in sourcing domestically is definitely growing.” According to Abecassis, the motion category can pose a challenge for retailers if they don’t use a dependable, quality source. “The product has to be well made, with a mechanism that works properly, or the consumer is going to be unhappy and bring it back to the store.” For 2013, Abecassis sees lighter tones and solids gaining strength in motion, with fabric gaining some ground versus leather. He also sees movement toward better-end goods — not because prices are increasing, but because consumers are seeking a higher level of quality. “In 2012, our average unit price rose $49, with consumers choosing better-end models or a higher grade of fabrics or leathers,” he said.

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El Ran produces its line at a 235,000-square-foot facility in the Montreal suburb of Pointe-Claire. Its motion products feature a handle-operated, weight-activated mechanism from Leggett & Platt that “is safer and more stable” than spring-loaded alternatives, according to Abecassis. “The direct-drive shaft distributes pressure for firmer, easier operation.” El Ran’s line includes reclining chairs, sofas and sectionals, ottomans, and home theater furniture. At Jaymar, the big story in motion for 2012 was the introduction of a new retractable headrest mechanism. At the October High Point Market, Jaymar introduced three new sofa groups (sectional, sofa, loveseat and chair) with the mechanism, which can be adjusted to any position. The models — two contemporary/modern styles and one transitional — feature seats that are 23 or 30 inches wide. Cover options include 120 topgrain leathers and 250 fabrics. “There’s been a shift away from high-back traditional models toward more trendy, modern styles,” said Louis Bégin, vice president of sales, about the new models’ success. “Since the headrest on these models is positioned a bit lower, and the shapes are sleeker, they look less like motion. They blend in better and make rooms look bigger.” The motion feature is available as an option on any piece in this group, so the consumer can add function to whichever seat makes the most sense, Bégin added. “If you’re sitting on the left to watch TV and want motion on that side, you can add it there. We leave that choice to the consumer, so that they can create the configuration that satisfies their needs.” Jaymar will feature the new Dario, Vanda and Sacha styles in Toronto, along with a prototype of a new mechanism designed for smaller spaces. The recliner will be 30 inches wide but the back will be low, with the headrest going up automatically as the sitter reclines. “This model is tailored for condos and other metro living situations, where space is at a premium,” said Bégin. “Since the headrest doesn’t extend unless someone sits in the chair, it gives a more open feeling to the room.” If the approach draws a good reaction, Jaymar will come out with a group at the High Point Market that features the new mechanism. For 2013, Bégin sees gray tones continuing to share the spotlight, along with browns and off-white tones. On the leather side, the company recently expanded its line to include a quality polyurethane cover that offers a new opening price point. “It took a while to gain placements, but this is now an important part of our business,” said Bégin. “This option enables retailers to offer consumers a quality Jaymar frame, with all of our construction and comfort features, at a lower price point.” The polyurethane cover stands up to 150,000 double rubs, Bégin said, with “excellent durability.” To support its motion presentation at retail, Jaymar will roll out several tools in 2013. They include new signage that highlights the company’s quality and fashion story, as well as an updated corporate video. Jaymar builds its line at a 150,000-square-foot plant near Montreal. Also enjoying a good year in motion in 2012 was La-ZBoy Canada, which gained new sales with the expansion of its power option. The company now offers power on nearly every

“ There’s been a shift away from high-back traditional models toward more trendy, modern styles.Since the headrest on these models is positioned a bit lower, and the shapes are sleeker, they look less like motion. They blend in better and make rooms look bigger.” – louis bégin motion model and consumers “have really responded,” said Paula Hoyas, vice president of product merchandising. “They see how comfortable our motion is, and then when they learn about the power option, and how everything happens at the touch of a button, that seals the deal.” La-Z-Boy got serious about power about a year and half ago, according to Hoyas, when it started expanding its availability to as many models as possible. Now, power is growing “every month,” as both retailers and consumers have embraced the option. “Retailers are showing our motion products in vignettes,” said Hoyas. “Some devote the entire space to power, and others show a mix of half power and half non-power. They show our line in a way that enables consumers to easily understand the benefits of power and then make the choice that’s best for them.” Hoyas added that power typically adds $150 to $200 to the retail cost of its products. In 2012, La-Z-Boy’s top-selling recliner in North America was Pinnacle, a plush, high-back model with channel-stitched details and full-body chaise. The No. 1 motion sofa was James, with bucket-style seats, chaise leg rests and pillow-top arms. Also doing well was the Greyson group, which features sleek styling with alluring curves, built-in cupholders and flip-top storage. Leather was the cover of choice in Canada for La-Z-Boy again last year, with neutral tones leading the way. “Most consumers go safe with neutrals on their main pieces, and then add a pop of colour in an accent chair, pillows or rugs. Since they’re making a bigger investment in the upholstery, they want to make sure the color is something that they’ll still like in a few years.” Gray tones have done especially well for La-Z-Boy, and Hoyas expects that trend to continue in 2013. In the coming year, La-Z-Boy will continue to enhance its motion line with new styles and covers. Along with enhancing its designs on the exterior, it also is upgrading the interiors of its motion models by adding a memory foam option. “We introduced memory foam in a small way in April 2012, and then made a huge splash in October,” said Hoyas. “We’re offering it as an upgrade to all of our recliners and most of our motion sofas. It enhances the comfort story, and consumers are already aware of the benefits because of their familiarity with the use of memory foam in bedding.” HGO – GARY JAMES is a freelance writer based in Chapel Hill, North Carolina. He spent over 20 years with Furniture/Today, serving as case goods editor and special projects editor, directing the editorial content of Leather Today, Bedding Today, Global Textiles Today and other supplements and sections. HomeGoodsOnline.ca

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MATTRESSES >>>

Technology PLUS value EQUALS sales THE PROPER APPLICATION OF IN-DEMAND TECHNOLOGIES TO COOL THE BODY IS GOING TO BE VERY MUCH IN VOGUE AMONG CANADIAN MATTRESS MANUFACTURERS IN 2013. BUT IN A TOUGH ECONOMY, VALUE IS GOING TO BE THE CONSUMER’S TOP PRIORITY. BY MICHAEL J. KNELL

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Simmons Canada will launch a new brand identity early in 2013, focusing on its Beautyrest line. The company will debut its Recharge Sleep System – a system it believes will deliver the benefits consumers say she’s looking for such as independent back support and ideal sleeping temperature.

NTIL THE RECESSION STRUCK

in late 2008, there was nowhere to go but up for the overwhelming majority of Canadian mattress manufacturers, distributors and retailers. Consumers were demanding a better night’s sleep and were willing to pay for it. The first eight years of the new century introduced consumers to the $2,000 mattress (queen size, of course), which bred an almost overwhelming sense of optimism throughout the industry. Then the bottom fell out. All of a sudden, Sleep Country Canada was promoting a mattress at $599 retail – an unheard of price point for what was the darling of the investment community before it was acquired by a couple of private equity firms in September 2008. By some estimates, the average unit selling price had fallen below $900 retail by the time the official recovery from recession began in mid-2009 leaving the industry scrambling for new ways to appeal to a now price-sensitive consumer. But this was not a year without big news with two major acquisitions directly impacting Canada’s mattress industry. First off, the Toronto-based Spring Air Sommex Corporation acquired Natura World, the specialty mattress producer this past April. In late September, Sealy Inc., the parent company of Sealy Canada, announced it accepted a bid from Tempur-Pedic International to acquire all of its outstanding shares in a deal valued at US$242 million plus the assumption of the former’s debt. That transaction is expected to close in the first quarter of 2013.

STATISTICALLY SPEAKING In many ways, the numbers tell the tale. According to Statistics Canada, mattress shipments through to the end of September, 2012 were $566.2 million. While that’s a 2.3% gain over the $553.4 million shipped during the first nine months of 2011, it’s still behind the $576.1 million recorded for the same of 2010. Annual domestic mattress shipments for 2011 totalled $741.3 million, a steep decline from the industry’s pre-recession high of $987.6 million recorded in 2007. Until just a few years ago, the mattress industry was overwhelming domestic with imports mainly restricted to the very high-end or highly specialized.

But that has changed as producers in both the United States and People’s Republic of China seem to have established beachheads in this country. Mattress imports from the U.S. were valued at $77.5 million in 2011, a year-over-year gain of 20.5%. Those from China were up 8.3% to $28.3 million that same year. Considering the value of all mattress imports into Canada were valued at less than $60.0 million in 2005, that’s a huge change. Mattress sales at retail have also been challenged, but at first glance appear to be improving. In its retail commodity survey, Statistics Canada reports that for the first half of 2012 – the latest period for which figures are available – mattress sales were valued at $715.1 million, a gain of 4.0% over the $687.5 million sold in the comparable period of 2011. For the full year of 2011, mattress sales as $1.50 billion, down 1.8% from the $1.55 billion sold in 2010. The good news for full-line furniture and mattress retailers – including mattress specialists – is they continue to demand the ongoing loyalty of the consumer. These merchants account for about 86% of all mattress sales in the country and have for the past decade.

SEALY CANADA It’s no secret the Three S’s – Sealy, Serta and Simmons – dominate Canada’s mattress scene, just as they do in the United States where their respective parent companies are located. Leading the pack in this country is Sealy Canada, which has an estimated market share of 25% based on their publically reported sales through to the end of September 2012. The company got its year off with a bang with the launch of its first-ever developed in Canada assortment – the Posturepedic Proback. The line not only features the bedding giant’s four newest technologies but is supported by a modern, technology-driven in-store point-of-purchase and top-of-bed merchandising program. At the launch, Kevin Sisson, Sealy Canada’s chief operating officer, said Proback would be the company’s flagship brand for 2012. In addition to meeting evolving consumer demands for a quality product, the line should help restore retail prices and gross margins for the majority of Sealy’s retail partners while reinforcing the value of the Sealy brand in the mind of the consumer. HomeGoodsOnline.ca

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The top-end of the new collection is the Proback Titanium group which features titanium alloy springs which retain 98% of their height and support characteristics. “The core support centre features ProGel memory foam that reinforces the centre third of the mattress providing 20% more support where the body needs it the most,” Sisson said. The second group features Sealy’s pocket coil Reflex technology while the third collection is constructed using breathable and hypoallergenic latex with high density soy foams. The fourth features ProGel memory foam, which is also incorporated into the other two as well. For the in-store display, Sealy Canada developed a complete series of colourful headboards – one for each group – which incorporates a television monitor displaying information about the mattress on the loop. As part of the strategy to show-off the core support system, Sealy has also developed a new display pillow that only reaches across two-thirds of the mattress. This allows the consumer to see that the top and bottom third of the mattress are different from the centre third.

SIMMONS CANADA Simmons Canada reports business was “steady” in 2012. “We concentrated on our strength in innerspring and expanded our business further into the specialty market,” John Stasiw, who was named president of the company this past July. “While we are pleased with our progress, we’re not complacent and realize with the outlook of the global economy and uncertainty with the Canadian economy, there are challenges that lie ahead for us.” Retailers, he noted, used the mattress category as a promotional traffic builder. “The back half of the year retailers began to price aggressively to generate footsteps,” Stasiw observed. “In regards to price point trends, we expect the first few months of 2013 to be similar to the back half of 2012.” As 2013 opens, Simmons expects consumers will continue to have heightened interest in hybrid and foam technologies. “Research has taught us that consumer engagement goes beyond

product specifications and focuses more on benefits,” Stasiw says. “Consumers are not just persuaded by the ‘price’ of a product, but are moved by the benefits of the product and what it can do for them. In 2013, we are launching the Recharge Sleep System – a sleep system that delivers the benefits consumers have told us they are looking for such as independent back support and ideal sleeping temperature.” In the opening months of 2013, Simmons Canada will launch a brand transformation, complete with a new brand identity. “Our new 2013 Beautyrest will provide the emotional benefit of waking up refreshed and recharged, ready to live life fully charged,” Stasiw says. “Our aim is to develop a strong brand-building consumer pull campaign with the new brand message and brand promise as indicated in our new tagline of Living Life Fully Charged.” The new brand identity was first unveiled by its Atlanta, Georgia based parent company almost a year ago. Also on deck for the spring of 2013 is the introduction of a overhauled product portfolio beginning with new Beautyrest collections featuring the company’s Recharge Sleep System, which Stasiw describes as “a fusion of proprietary AirCool Design and legendary Beautyrest Pocketed Coil technology.” AirCool helps enhance airflow to dissipate heat away from the mattress to help the user sleep at his or her ideal sleeping temperature. For Simmons, the watchword is value. “Consumers will not buy products they perceive as having no value.” Stasiw says. “If they see the brand as a solution to meeting their needs and making their lives easier, then the purchase decision will not solely be based on price. We could see an increase in price points if the product innovation clearly communicates the value of the benefits.”

ZEDBED From its home in Shawinigan, Quebec, Zedbed has been making its mark as one of the best own-pour specialty mattress makers in North America. David Gélinas, marketing director, notes the gel-infused mattress was the hot button in 2012 and probably will continue

Sealy Canada launched its Posturepedic Proback line at the 2012 Canadian Home Furnishings Market. Developed in Canada, the new collection is offered with this new in-store point-of-purchase display which features a built-in television monitor and a continuous loop features and benefits presentation. The collection stresses the importance of emerging sleep technologies in each of its mattress models.

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The SnowPedic1 from Zedbed is made of an ecologically-sound, slow recovery gel infused foam. Holes perforated in the surface of the foam allow air to circulate between the body and the mattress. The second layer is a 2-inch unique foam glued to a semi-firm foam designed to relieve the pressure points while sleeping. This layer also has ventilation ducts cut into the foam in order to provide a cooling sensation.

 The S9 mattress from Zedbed is made of quick-recovery memory foam which allows for better movement in bed, dissipates heat faster and offers improved comfort. The second layer is semi-firm and has air ducts carved on the top to allow better air circulation in the mattress. The third and final layer is an extra firm base with 19 air ducts distributed on seven comfort zones.

to demand both retail and consumer attention over the coming few years. He also believes retailers are beginning to refocus their merchandising efforts by improving their sleep galleries and bedding departments, which he also described as a welcome development. However, the key to improved sales during the first six months of 2013 will be access to credit. Weary of spending after the holiday season, Gélinas notes consumers, particularly in recent years, have tended to take their time to make big ticket purchases. “Retailers will have to continue good financing rates, to develop enticing promotions and to select innovating products that will help consumers to buy sooner,” he says. ZedBed’s leaders in 2012 were two collections that were both developed to respond to the consumer’s demand for a cooler sleep while resting on more ecologically sound mattress. “Our goal was to create a product that dissipates heat as much as possible in order to reach levels of comfort not yet reached on the market while maintaining a touch of ‘green’,” Gélinas said, adding Zedbed is perhaps the only manufacturer offering eco-friendly memory foam infused with gel crystals. “As consumers tend to blame memory foam as less environmentally friendly than latex and warmer than traditional spring mattresses, we have developed products that address these complaints.” The first is the SnowPedic1. The first layer of this mattress is made of a perforated slow recovery gel infused foam that is also ecological. The holes perforated in the surface allow air to circulate between the body and the mattress. The second layer is a 2-inch unique foam glued to a semi-firm ergonomic shaped foam designed to relieve the pressure points when sleeping. This layer also has ventilation ducts cut into the foam in order to provide a cooling sensation. The lower part of this mattress features a firm foam layer with 22 ventilations channels distributed over five comfort zones. The channels change in size to respond positively to body weight while maintaining proper spine alignment.

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The second is the S9 mattress. Contrary to the SnowPedic1, this mattress is made of quick-recovery memory foam. “This quick recovery foam allows for better movement in bed, dissipates heat faster and offers improved comfort,” Gélinas says, adding the second layer is semi-firm and has air ducts carved on the top to allow better air circulation in the mattress. The third and final layer is an extra firm base with 19 air ducts distributed on seven comfort zones. Managing heat is still uppermost in the consumer’s mind when considering foam mattresses. “We believe gel technology will be very popular on the market in 2013 and manufacturers will continue to benefit from it,” Gélinas says. “Manufacturers will have to be more original and find ways to include gel to their products,” he continues. “Foam bases cannot continue to be as simple as they are now; complexity comes into play as the product takes advantage of different cuts, densities and shapes. Right now manufacturers are lagging on this, so we are confident that some will follow suit and develop products with more sophisticated foam bases with ventilation channels as that will reduce heat.” This also means tickings are going to adapt as well. These fabrics are going to be required to support the cooling properties of the foam they encase, which is why Gélinas believes terms such as Outlast and CoolMax are going to gain traction in the market. In 2013 the mattresses will also benefit from fabric properties. “With respect to the style, we will see more vivid colors or at least different from those we are accustomed to see emerge,” he adds. HGO – MICHAEL J. KNELL is the publisher

and editor of Home Goods Online.

>>> Story continued from page 32

>>> Story continued from page 23

offer competitive energy efficiency, and in part to the fact front-loads are less ergonomically friendly, particularly for older consumers. For Warrington Ellacott, performance is still the critical attribute. “We’re still very traditionally based,” he says. “Performance is what we focus on. The appliance has to do what it does, well and efficiently. A key part of that is capacity. Usable capacity is absolutely critical.” Energy and efficiency are also high on the list, as well as visual appeal – both when merchandising on the retail floor as well as envisioning how the appliance will fit in the home. Smart appliances are the category that seems to keep coming but never quite arrives, at least for most manufacturers. “The problem with the ‘smart’ space is there’s no universal standard for these devices yet,” Ellacott cautions. “In Ontario it’s even harder because there are eight different meter types, all one-way.” Integration into the power grid is the big obstacle standing in the way of greater adoption, adds Mega Group’s Robert Sheppard. “The category isn’t really ready to go to market yet,” he says. “But it is a good talking point for people to get out in front of the market and land some of the early adopters.”

It seems as though the word “contemporary” best describes the style direction upholstery experts are expecting to embark on in 2013. Laine Reynolds, vice president of sales for the Torontobased Superstyle Furniture, says demand for modern pieces will continue to grow in 2013. “Style direction has a strong contemporary influence,” says Reynolds, who is also vice president of sales for Superstyle’s sister company Trend-Line Furniture. “Smaller scale designs are still on trend and cool neutrals like grey and charcoal blue complemented by saffron, ebony and natural tones [will be popular],” he believes. And as far as new directions for 2013 go, Reynolds says Superstyle plans to showcase its focus on a key spot in its product line at the upcoming Toronto Summer Furniture Show. “We’ll [be showing] an expanded offer in our LeatherBrand line,” he explains. “Two new suites will be available in classic and feather blend seating.” Reynolds also described the company’s new home accents line Lasting Impressions, which is set to premiere in January. The line will feature window benches, settees, end-of-bed benches and chaise lounges. The Lasting Impressions featured settee is described by Superstyle as having a “sweeping silhouette with long sleek legs and showcased in a subtle two-tone chenille.” On the price point side of things, some experts see prices rising while others don’t think an upward or downward shift is likely to occur in the near future. “Unfortunately, costing of delivery, salaries, raw materials, and currency exchange does not always take into consideration the retail environment,” says Palliser’s John Power. “I believe that the cost of running a business will continue to increase and in order to continue to service our customers we will need to keep our margins at the current level. So yes, I expect price increases.” Others, such as Van Gogh’s Kam Sangha, say price increases are only really possible if they’re a by-product of inflation. Superstyle’s Laine Reynolds simply doesn’t expect to see a swing for any reason. “I don’t see price points going up. I think they should maintain,” he believes. At Dynasty, Karina Sunderji says the company plans on introducing a new product line with a slightly higher price point, though she could not give details on exactly what that price point would be. At Brentwood Classics, Diana Sisto says retailers and suppliers shouldn’t shy away from producing more costly goods. “I’ve been researching the young consumer and reading industry reports and journals, and our top sellers were the most expensive pieces,” says Sisto. “Everyone wants to compete on price and I think that’s wrong. We shouldn’t be afraid to go up. If people love it, they’ll buy it. People do invest in furniture.” On the trade show side, Brentwood Classics will be present at the Canadian Home Furnishing Market, Dynasty will attend the Canadian Home Furnishings Market and Las Vegas Market, Van Gogh will be at the Canadian Home Furnishings Market and Superstyle will be at the Toronto Summer Furniture Show. HGO

WHAT’S COMING? On the new product front, Meyersohn says GE/Mabe has just introduced a new line of dishwashers, with a new stainless steel model due in the next couple of months. A completely new line of refrigerators has also been launched, one result of the investments GE is making in its Mission 1 lean manufacturing program. A series of price-targeted ranges is also on its way, as well as what Meyersohn promises will be major innovations in the laundry category. All of this activity takes place as a major new visual brand identity is being developed. “We’re introducing a whole new visual brand language for GE,” Meyersohn says. “It’s a more ‘universal’ look, a complete refresh. Products will be more square-looking, more contemporary in design.” A new refrigerator, due early in 2013, will be the first example. Electrolux will be focusing primarily on induction technology across all brands, MacNeil says. Double oven offerings will be broadened, the refrigerator lines will be completely refreshed, with some new innovative features added, and a high efficiency top-load laundry line will also hit the market in 2013. For Whirlpool, a new line of cooking products is in the offing, including freestanding ranges that incorporate the brand’s AquaLift cleaning system, which makes oven cleaning faster, less fragrant and more energy-efficient. There’s also a new line of built-in wall ovens across different brands, using the FIT system that uses variable spacing attachments to enable appliances to be fit into non-standard openings. “FIT has always been the biggest conversation that dealers have with the customer,” Ellacott says. “The FIT system takes all that ‘noise’ out of the discussion.” The Jenn-Air kitchen line will also debut a new LCD based control system, which will be a big focus for Whirlpool going into 2013. HGO — ANDREW BROOKS is a freelance writer

based in Oakville, Ontario.

– ASHLEY NEWPORT is a Toronto-based freelance writer who primarily writes for business and trade publications. Her specialties include food, hospitality and emerging social/business trends.

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