HGO Merchandiser Fall 2013 by MediaEdge

Michael Knell’s

HGO merchandiser HomeGoodsOnline.ca

Fall 2013

Volume Two, Issue 5

Pinteresting developments Five ways independents can compete online

Goettlers: THIS FAMILY STORE ALWAYS HAS EMBRACED THE NEW

CONTENTS>>>

FROM THE 6 EDITOR GET BACK IN THE GAME Independent retailers need to shake themselves off. A report from Statistics Canada shows independents can and do outperform their chain store competitors. Read properly, the statistics are encouraging and there are real opportunities out there. The key is to get out of the store once in a while and learn what the possibilities are.

TECHNOLOGY 8 PINTERESTING DEVELOPMENTS

8 14

Since its quiet launch in 2010, Pinterest has become one of the Internet’s fastest-growing and widely followed sites, particularly by affluent female consumers. Several Canadian furniture companies have discovered it can help drive sales and nourish growth. The report was written by regular contributor Gary James.

PROFILE 14 GOETTLERS: FAMILY STORE ALWAYS HAS EMBRACED THE NEW

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Ashley Newport profiles the founders of G.G. Goettlers of Dublin, an Ontario store that started out as a grocer in 1952, but by the mid-‘70s had transformed into a successful independent furniture retailer. The company is now run by their son, who is equally undaunted by challenges and change. He’s computerized the operation, opened a second unit, and now is launching an e-store.

ON RETAIL 22 FIVE WAYS INDEPENDENTS CAN COMPETE ONLINE

The consumer’s world is now digital, bringing with it a bevy of new competitors for traditional furniture stores. Exclusives mean next to nothing on the Web, and a price-match strategy typically spawns a race to the bottom. But HGO’s intrepid merchandising maven, Alixe MacRae, suggests five ways a brickand-mortar retailer can thrive in the Internet universe.

25ADVERTISERS’ INDEX 25INDUSTRY CALENDAR SCENE 26SOCIAL OUT ON THE LINKS

Summer usually turns the Canadian furniture, mattress and appliance industry’s attention to the golf course with a number of tournaments being held across the industry. Two of the most popular are those held by the Ontario, Western and Atlantic division of Cantrex Nationwide and the Golf Classic held by the Canadian Home Furnishings Alliance to close out its Toronto Summer Furniture Show. ON OUR COVER Vivi and Steve Goettler, who are profiled in this issue, are the owners and operators of G.G. Goettler of Dublin Fine Furniture and its nearby sister store, Chesterfield Warehouse. They are also launching their first e-store sometime this fall to enhance their already active use of social media including Facebook and Pinterest.

OVER

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FROM THE EDITOR>>>

GET BACK IN THE GAME

INDEPENDENT RETAILERS NEED TO SHAKE THEMSELVES OFF. READ PROPERLY, THE STATISTICS ARE ENCOURAGING AND THERE ARE REAL OPPORTUNITIES OUT THERE. THE KEY IS TO GET OUT OF THE STORE ONCE IN A WHILE AND LEARN WHAT THE POSSIBILITIES ARE.

T’S TIME FOR INDEPENDENT FURNITURE RETAILERS,

MICHAEL J. KNELL

individually and collectively, to shake their lethargy and get back in the game. After several years of poor growth, which prompted some 412 independent storefronts to close their doors between 2008 and 2011, it’s time for each business owner to take stock of where he is and plan the future. In the Summer edition of this magazine (click here to find), I published a review of this year’s Annual Retail Survey published by Statistics Canada. While it really is a dry collection of numbers, it offers some valuable insights into the state of independent retail. It’s quite surprising to learn independents outperform their chain store competitors in a number of areas. They’re better at controlling costs, particularly when it comes to operating and labour expenses. They’re also better good at containing their costs of product acquisition. The real encouraging number coming out of the study is that average unit sales actually fell for chain stores over that four-year period, while they grew – albeit slightly – for the independent merchant. So, how to build on that? While the right answer will be different for each retailer asking, the key is to start doing something, and the best places to start are usually found outside the store. If you’re not a member of a service club or community organization, find one and join. Then get involved. If the store is a member of a buying group, take advantage of what it offers. Having gone to almost every event staged by the groups, I know how few of their members attend. Start going. Next, register and attend the Canadian Home Furnishing Market in January. Occasionally, go to High Point. Listen to the people you do business with; listen as well to those you don’t. Start learning about social media as it seems to be the consumer’s favourite means of talking to her friends and probably to you as well. Steve and Vivi Goettler are doing it. So can you.

HGO merchandiser FALL 2013 • VOLUME TWO, ISSUE 5 ISSN 2291-4765

www.HomeGoodsOnline.ca PUBLISHER & EDITOR Michael J. Knell mknell@homegoodsonline.ca MANAGING EDITOR Anthony E. Bengel tony@homegoodsonline.ca CONTRIBUTORS Alixe MacRae Gary James Ashley Newport ART DIRECTOR Samantha Edwards Sam I Am Creative samiamcreative@bell.net IT DIRECTOR Jayme Cousins In House Logic 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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Renowned for Solid Wood Since 1899

Glen Terrace C O L L E C T I O N

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TECHNOLOGY>>>

Pinteresting developments Among the products featured on Chesterfield Warehouse’s Products We Love page are sofas from Palliser Furniture, Edgewood Furniture and the Jane by Jane Lockhart collection. 

SINCE ITS QUIET LAUNCH IN 2010, PINTEREST HAS BECOME ONE OF THE INTERNET’S FASTEST-GROWING AND WIDELY FOLLOWED SITES, PARTICULARLY BY AFFLUENT FEMALE CONSUMERS. SEVERAL CANADIAN FURNITURE COMPANIES HAVE DISCOVERED IT CAN HELP DRIVE SALES AND NOURISH GROWTH. BY GARY JAMES

ecognizing the potential Pinterest holds for sharing product photos, reaching communities of enthusiastic design fans and sparking sales, a growing number of Canadian furniture retailers and producers are adding this popular social media destination to their online arsenals. One independent Ontario retailer finds Pinterest “a really good fit,” another praises its appeal to women, and Durham Furniture uses it to send a consistent brand message and drive traffic into dealer stores. Since its relatively quiet beta launch in 2010, Pinterest has grown like topsy, becoming the fastest site in history to reach the 10 million user mark. Today, the total number of Pinterest users tops 70 million, according to Semiocast, a Paris, France-based marketing and research firm specialising in social media. The United States has 49 million registered accounts (71% of the global total), with Canada in second place with a user base of nearly 4 million. What makes Pinterest different from other sites is its strong visual orientation. Designed like a traditional corkboard, Pinterest enables people to easily share photos and other images they find interesting. When users find an image or video on Pinterest or another web page that they like, they simply click a “pin it” or “add” button and the image is automatically “pinned” to one of their personal online pinboards, so they can share it with friends.

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“ Pinterest enables companies to take an interesting photo or other image and build a compelling story around it that creates buzz for their brand.” – JULIA ROSIEN The pinboards are organized by theme or topic, such as Favorite Places, and photo postings include room for short comments, which adds to the fun. Friends who follow you see the images you pin, and you see the ones they pin. You also can “like” other people’s pins and repin their items to your pinboards. Pinterest also can be configured to automatically post pins to Facebook and Twitter accounts. In its latest social media study, the Pew Research Center – the world-famous think tank based in Washington, D.C. – found 15% of online adults in the United States use Pinterest. Women are five times as likely as men to use the site, and the service is especially appealing to white adults under 50 with some college education and incomes of $50,000 and up. Pinterest users also are highly engaged with the site, spending an average of 77 minutes per month, compared to 36 minutes per month for Twitter and 17 minutes per month for LinkedIn, according to Internet analyst comScore. Semiocast says that 30% of U.S. users pinned, repinned or liked on Pinterest this past June alone. Another strength of Pinterest is the “shelf life” of posts. Twitter posts have a life of only about 20 minutes, says Julia Rosien, owner of social media consultancy Social North. If users don’t see a post during that window, they’re not likely to ever see it. The shelf life of Facebook posts is longer, about six

to 10 hours, but Pinterest pins are active for days, weeks and even months after being posted, as users repin and discover boards they haven’t visited before. “Pinterest enables companies to take an interesting photo or other image and build a compelling story around it that creates buzz for their brand,” says Rosien. For maximum impact, she recommends using high-quality photos – “that’s the defining feature for Pinterest – combined with a brief but engaging description.” Including a company logo on the image is another must, since that will be a part of any repins and provide viewers with an easy ID for more information. To spark repins and repeat visits, companies should look for ways to make their product photos come alive, Rosien advises. Instead of just posting photos of mattresses in a board labeled bedding, companies should consider creating a board on the theme of How Sleep Impacts Health that talks to consumers about why a good night’s sleep will make them feel better. }

 Julia Rosien, owner of social media consultancy Social North.

For the Home, a popular Pinterest board for Goettlers of Dublin, includes products from Decor-Rest, Brentwood Classics and Capel Rugs. 

 Stephen and Vivi Jensen Goettler, owners of G.G. Goettler Furniture in Dublin and Chesterfield Warehouse in Stratford, Ontario. HomeGoodsOnline.ca

“ Because Pinterest is so visual, it really appeals to women, who remain by far the No. 1 driver for furniture purchases.” – VIVI GOETTLER

 Top: Stoney Creek’s Pinterest site has a wide range of themes for its boards, including Gardening Inspirations, Colours!, Urban Living and Food & Drink. Middle: Lori Negrinotti, merchandise manager, for destination retailer Stoney Creek Furniture.

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“Look for creative hooks that enable you to tell your story in a way that draws people in,” says Rosien. “And don’t forget to take advantage of the text field and place for a link below the picture. This information gives viewers more context for making connections with the content.” Rosien adds incorporating popular keywords and topic hashtags in the text and keeping postings fresh helps generate higher rankings in Google searches.

PRODUCT PREVIEWS AND MORE The husband-and-wife team of Stephen and Vivi Jensen Goettler – owners of G.G. Goettler Furniture in Dublin, Ontario and Chesterfield Warehouse in nearby Stratford – are early adopters when it comes to digital media. The company has had an active Web site for 15 years and is fully engaged in Facebook, Twitter, Houzz, Instagram and LinkedIn, among other online venues. So, when Vivi came across a new site in early 2012 called Pinterest, which was being described as the fastest-growing social media site since Facebook, she didn’t waste any time. She launched two sites for G.G. Goettler and Chesterfield Warehouse, and began learning how this new platform might be used to further the company’s goals. “We soon discovered that it was a really good fit for us,” says Goettler. “Because Pinterest focuses on

visuals, it’s a great way to preview new products coming to the store, showcase creative designs we’ve seen at global markets and share other items of interest with our customers – and prospective customers.” On its Pinterest site, Goettlers of Dublin currently highlights Trends (color and design directions), Products We Love (staff favorites), For the Home (a roundup of other interesting furnishings carried by the store) and Accessories (home accent ideas). Two other recent boards highlighted sleep products from Simmons and area rugs by Capel. In addition, Goettlers posts seasonally oriented boards, such as the one in December 2012 with the theme of Christmas Gift Ideas. Sister company Chesterfield Warehouse, which specializes in contemporary upholstery, uses its Pinterest page to highlight fashion and design trends in seating and accessories. “Because Pinterest is so visual, it really appeals to women, who remain by far the No. 1 driver for furniture purchases,” says Goettler. “Through Pinterest, customers are able to share images of products, places and ideas that motivate or inspire them – or that they aspire to. They ‘pin’ the images that they like, and post them on their own board, where friends, relatives and neighbors can see them and repost them to their own communities.” Goettler handles much of the company’s social media herself, with assistance from her daughter. Members of the sales and design team also get involved, recommending themes for Pinterest boards and specific product photos to post. Vivi Goettler tries to update Goettler’s business sites on a daily basis, working during quiet times at the store or in the evening, after store hours. Her goal with all social media is to make postings timely and worthy of sharing. “We want to make a connection with our customers, so they are motivated to come into one of our stores or share one of our posts with their own network,” she says. }

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“Having a variety of unexpected, visually exciting posts encourages pinners to come back over and over.” – AMANDA MCQUEEN Bottom: Durham Furniture combines product-specific boards such as Solid Wood Occasional and Solid Wood Bedroom with broader topics, including Organizing Your Bedroom and Bed Fashion. Middle: Dave Geikie, chief operating officer of solidwood bedroom specialist Durham Furniture. 

To measure its performance with Pinterest, Goettler’s tracks metrics such as the number of “likes,” “followers” and “repins.” While the direct impact that Pinterest and other social media may have on sales is hard to measure, the Goettlers are pleased by the presence they’ve established through their online activity. “We see it as an extension of the store experience,” says Goettler. “Social media gives us another forum for talking to consumers and engaging them in what’s happening in home furnishings.” She sees the retailer’s use of social media becoming even more important in the coming years, as new technologies emerge and younger consumers become more active purchasers of furniture. And it expects to continue adding other social media venues to its mix. New sites currently on its radar screen include Vine and Tumblr. “There’s so much happening,” says Goettler. “We work hard to stay current with all the latest developments.”

AN ECLECTIC MIX OF TOPICS At Stoney Creek Furniture in Stoney Creek, Ontario, Pinterest has been part of the social media mix for about a year. The retailer also is active on Facebook and has a blog on its Web site. “There are so many sites to choose from,” says Lori Negrinotti, merchandise manager. “We’ve picked the sites that are the best fit for us, and like Pinterest because of its largely female audience, which dovetails with our customer base.” Popular boards on the Stoney Creek site include Gardening Inspiration, Colours, Accents, Urban Living, Cottage Living, Little Bit of London, Bedroom Oasis and Food and Drink. “Our aim with our boards is to share design ideas with potential customers and inspire them to come into our store,” says Negrinotti. “We show some product on the boards, but we include lots of other interesting content that we hope will engage visitors so they repin and share it with their networks. We want to spark interaction and position our brand as a leading authority on home design.” One new board that has generated strong activity for Stoney Creek is the Coming Soon board, which gives visitors a preview of products soon to hit the sales floor. The board is promoted through entries on Facebook, encouraging fans to post comments and questions about new fashion directions in furnishings. Stoney Creek tends not to focus on specific companies, and stays away from coupons and promotions, because it doesn't want the site to be too sales oriented. But occasionally it puts the spotlight on a standout collection, such as a recent board showing Bernhard’s Salon collection. “Bernhardt provided us with exceptional photography, and the collection is very special,” says Negrinotti. “They gave us the opportunity to make our customers aware of this new line at the same time the catalog was being released.” To keep up with Pinterest, Negrinotti has the help of three members of the store’s design team. The group keeps a constant eye out for interesting themes to feature and coordinates their efforts so that postings are relevant and up to date. The company gets additional help with its Facebook page from its ad agency.

A POWERFUL BRAND TOOL Durham Furniture launched its Pinterest page as part of a coordinated social media strategy. Other sites were it has a presence include Facebook, Twitter, Google+ and LinkedIn. “A lot of companies just jump in and start slapping up content without any real plan,” says Dave Geikie, chief operating officer. “We took a slower, more deliberate approach to make sure that

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whatever we do, we send out a clear message that's consistent with the Durham brand.” With Pinterest, Durham aims to reach two groups of consumers: current customers already familiar with Durham and new prospects who may have no knowledge of the brand. Through its postings, the producer wants to inspire consumers to visit its Web site and learn more about its products. Then, building on that interaction, it aims to motivate consumers to visit a local dealer. On Pinterest, Durham focuses its boards on topics that provide consumers with ideas to improve their homes. Themes include Bedroom Layouts, Spring Inspired Decor and Fun Home Accessories. “We're trying to engage them with Durham furniture without being too direct about it,” says Amanda McQueen, marketing manager, who manages the Pinterest boards along with Geikie and the company's showroom coordinator. “Having a variety of unexpected, visually exciting posts encourages pinners to come back over and over.” And when those visitors pin a Durham posting on their own boards, that exposure encourages an additional wave of Pinterest fans to visit the company site. To measure the performance of social media efforts, the Durham team monitors activity on a monthly basis. The group meets regularly to discuss what's working and what's not, and what the biggest hits have been. The team also assesses the repins it receives from its retailers to see what types of content they are most interested in sharing with consumers. It also keeps a close eye on Facebook pages, where Durham users often post specific comments about Pinterest images that have made a strong impression. In the future, Durham expects to experiment with more non-traditional content. Ideas under consideration include contests with free furniture as the prize and coupons to help drive store traffic. “Right now, there aren’t many good tools to measure the impact that social media has on sales, but we're trying to get a better understanding of that,” says Geikie. “Metrics are important, because they help us understand which activities generate the best results. We know that our social media efforts are driving traffic to our Web site, but we want to deepen our understanding so that we can make our content even more persuasive.” 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.

IDEAS FOR BEING PINTERESTING Posting a variety of engaging subject boards on Pinterest is an effective tool for stimulating customer interactions and sharing. Here are a dozen winning ideas from Brian Offenberger, a furniture industry marketing expert and owner of Right On – No Bull Marketing.

FURNITURE: Create a few boards dedicated to different types of furniture. You might have one board on sofa-sleepers and another that features stylish dining room tables. Some like to create boards by room. Make sure to include decorating ideas as part of the discussion.

EVENT NEWS: Keep customers informed about upcoming in-store events by creating a Pinterest board that they can share with friends. You might also want a Pinterest board just for sales – it’s an excellent way to build awareness and attract store traffic.

3 4

VIDEOS: Consider posting videos with decorating tips or even how to cook something. The possibilities are endless. Be creative.

SHOWROOM: Provide a video or picture tour of your showroom. It will give customers a better idea of what you sell and what to expect when they visit.

RECIPES: Recipes are one of the most popular board topics on Pinterest. Include recipes from around the web that your customers might enjoy.

BOOKS: Create a board with some of your favorite decorating or design books, or gardening and recipe books. These kinds of postings always spread like wildfire on Pinterest.

INFOGRAPHICS, CHARTS AND DIAGRAMS: With this board, you might want to post visual instructions on how to arrange or assemble furniture. You could even post an infographic on the history of the love seat. Let your imagination be your guide.

COMMUNITY GATHERINGS: A board involving community events on Pinterest shows customers that you’re a local business that cares about the community. Include photos of past community events.

STAFF: A board featuring your employees gives customers helpful insights into the shopping experience. Make sure to highlight any designers you have on your team.

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CONTESTS: Having a board for contests can be a good traffic builder that leads to more follows and interactions.

QUOTES: People like to share quotes on Pinterest. Having a board with a lively mix of inspiring or humorous quotes can give prospective customers a good feel for your business.

HOLIDAYS: You’ll probably want a few boards dedicated to major holidays. Themes might include Thanksgiving, Christmas and Canada Day. Each board could contain decorating ideas as well as examples of products that you sell for that particular holiday. Offenberger’s Web site can be found at www.RightOn-NoBull.com.

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PROFILE>>>

 The exterior of G.G. Goettler of Dublin Fine Furniture. This 30,000 square foot showroom started life as a Red & White grocery store before evolving into a socialmedia savvy independent furniture and mattress specialist. Dublin is located northwest of Stratford, Ontario.

Goettlers:

Family store always has embraced the

new

THE FOUNDERS OF THE ONTARIO STORE STARTED OUT AS GROCERS IN 1952, BUT BY THE MID-'70S HAD TRANSFORMED INTO SUCCESSFUL INDEPENDENT FURNITURE RETAILERS. THE COMPANY IS NOW RUN BY THEIR SON, WHO IS EQUALLY UNDAUNTED BY CHALLENGES AND CHANGE. HE’S COMPUTERIZED THE OPERATION, OPENED A SECOND UNIT, AND NOW IS LAUNCHING AN E-STORE. BY ASHLEY NEWPORT  (Right) Steve Goettler (second from left), the current president of G.G. Goettler, is seen here working in the store during its 25th anniversary in 1977. Even then, the Red & White grocery store was carrying Beautyrest mattresses and La-Z-Boy chairs. (Left) The founders of G.G. Goettler of Dublin, George and Ally Goettler are seen here in the store while it was still a Red & White Grocer, some eight years or so after it opened.

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o say the Goettler furniture brand has stood the test of time is a major understatement. The Ontario retailer began life as a grocery store in 1952, then evolved into a successful furniture outlet that persevered through economic downturns and technological upheavals under the intrepid reign of the late George and Ally Goettler and, now, their son Stephen. Today, the company has two stores, the flagship G.G. Goettler of Dublin Fine Furniture in Dublin, Ontario, and the newly opened Chesterfield Warehouse in nearby Stratford. And now, the retailer is launching an online store. How did a Dublin grocery store, part of the now-defunct Red & White Market brand, become a furniture operation? It started with a little bedding and some La-Z-Boy pieces. The store also was in a large, old building with plenty of room to display furniture. “My father sold some Beautyrest mattresses and La-Z-Boy pieces on the side, and from 1952 to the mid-‘70s he reformatted the store,” says Stephen Goettler, the current president. George Goettler decided to make the transition from groceries to furniture because he felt the days of the independent grocery store were drawing to a close. He was well enough acquainted with the furniture industry that he was comfortable with the move.

“He was interested in furniture and knew manufacturers,” Stephen Goettler says. “He thought to himself, ‘I can renovate the store and make it happen’.”

A FAMILY’S ENTHUSIASM FOR CHANGE It’s obvious the elder Goettler wasn’t afraid of change. For him, the renovation was an exciting opportunity to showcase bigger and different goods. The same enthusiasm for adapting and changing is apparent in his son. The younger Goettler, who co-owns the brand with his wife, Vivi Jensen Goettler, started working part-time at his parent’s store when he was 12. After graduating from the University of Guelph, he spent a couple years traveling throughout the United States, Europe and South America before deciding to work full-time at the store in 1982. “I came in with mom and dad and have been here ever since,” he says. “Those kinds of opportunities only come once in a lifetime, and they have a time limit. My time here has been great. I’ve enjoyed it almost every day.” Goettler admits running a furniture store isn’t always easy, but he says his contentment stems from a willingness to power through the tough times and welcome the future — and the changes it brings — with open mindedness and enthusiasm. “We embrace technology,” he says. “People have always been afraid of technology and change.” }

 This is an interior view of the Chesterfield Warehouse. The store displays 50-plus groups across its 5,000 square feet of selling space – the majority of which will come from Canadian manufacturers including Gus Designs, Superstyle and the Jane by Jane Lockhart collection from Statum Designs.

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When it comes to technology, Goettler is more than simply knowledgeable about trends. He’s implementing them in his business, with the involvement and encouragement of his partner and wife, who spearheads the company’s efforts in social media.  (Above) Vivi and Steve Goettler are the second generation to operate G.G. Goettler of Dublin Fine Furniture. (Below) A view of G.G. Goettler’s recliner gallery. Almost everything on the floor is manufactured in either Canada or the United States. 

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RE-ENGINEERING THE ENTIRE COMPANY “In 2010 we tore down the company and reengineered it,” he says. “Everything is completely different. Now, every process floats on software. We’re 100% electronic. It was a massive job and it took a year to really shake it out. But the changes had to be made. You can’t run a business the same way you did 10 or 15 years ago.” Just as George Goettler wasn’t afraid to gamble — he once bought an adjoining 9,000-square-foot butcher shop to expand his store without consulting

his wife — the junior Goettler isn’t afraid to embrace the online age. He's preparing to launch an e-store this fall. “It’s something we just started, but haven't officially launched,” he says. “It’s out of our Chesterfield Warehouse store, and it’s going to offer 1,200 products available online only. It’s new territory, but we’re committed to it.” In social media, Goettlers is on Facebook, Twitter, Instagram, Houzz (a photo sharing site) and Pinterest, and is preparing to join six-second video site Vine shortly. As for whether or not there’s been an uptick in sales since embracing social media, Goettler says it’s hard to measure impact, but that it’s good to have a presence. “I think there is awareness-raising with those sites, and people who ignore them are missing out. When business breaks, you want to be top of mind, so you want to be on social media.”

A NEW STRATFORD STORE, THEN AN E-STORE And as to why Goettler would launch an e-store so shortly after opening the Stratford brick-and-mortar facility, there were several compelling reasons to take the risk. “It’s another revenue stream, and we have a generation of people here who can do it,” he says. “E-stores are complicated to build and the process isn’t easy.”

Goettler doesn’t gloss over the squeakier, more complex moving parts of an online operation. He admits it can be challenging to get on top of graphic design, website construction, shipping arrangements, payment arrangements and promotions, but says “it’s a new day and a new concept.” For Goettler, new is never scary. The online store will be formally announced during the official re-launch of the year-old Chesterfield Warehouse, which is currently undergoing a renovation that will see 1,000 square feet added to the 5,000-square-foot upholstery boutique. Goettler says there’s always room for mistakes to be made and learned from. “Over the years I’ve changed the business dramatically. I’ve made lots of mistakes; some things will work and some things won’t.”

NOT AFRAID TO BE OUT FRONT One thing that worked out, he says, was his decision to be one of the first independent furniture retailers to open on Sundays. He also was one of the first to showcase products from North Carolina’s High Point Market. “We’ve been going to High Point since 1984, and we run sales on holidays,” he says. “We also open at 6 a.m.” Goettler probably is one of the few company presidents who is both a Big Idea innovator and a traditional working stiff, putting in long hours washing windows and greeting customers. “I’m very accessible!” he says. “I’m here on the floor five or six days a week.” Goettler credits his success to his parents’ positive influence. “My dad was a great merchant. He was honest and forthright. He told me to be straight up and I’d always have customers. I have a high standard to live up to.” Sticking to his parent’s no-nonsense, totalhonesty policy has let him lock down loyal clients, who happily shop from the store their parents and grandparents bought from. He’s welcomed new clients by being on top of advertising and, in his words, innovative and creative. “I’ve always wanted to be innovative with our products and displays,” he says. “When we run a oneday promotion, we use traditional media, and our price tags have the same graphics as the ads on our web site. We’ll promote it on Facebook and Twitter as well. We spend a lot of money to put a promotion out there, and we’re not afraid to hold one on New Year’s Day. We use Constant Contact (an online information sharing site) and regular mail. We try to talk to everyone we can.” As for traditional connections, Goettler is a shareholder in the Saskatoon, Saskatchewan-based Mega Group. He says the chief benefit of being a Mega member is centralized billing.

What social media can do for you While it’s hard to measure the impact a Facebook page has on your bottom line, most furniture stores believe it's helpful to have a presence on social media. Here are the major players in the social media world — and how they can work for you. FACEBOOK: Facebook is a social networking site that lets individuals and businesses share posts, notes, photos and news with friends or the public. Businesses can invite people to “like” their page and share promotions, photos and news. TWITTER: Twitter allows people to send 140-character “tweets” to their followers. These snippets of info can link to your web site, directing followers to news about sales, promotions, expansions, acquisitions, etc.

INSTAGRAM: Instagram allows you to take pictures with a smart phone and immediately upload them to Twitter, Facebook and other web sites. It’s a good way to quickly share product shots. PINTEREST: Pinterest allows you to upload product shots to your profile and “pin” other pictures of inspirational spaces or furniture to share with your followers. HOUZZ: Houzz allows you to share and view home design photos.

EDITOR’S NOTE: The Merchandiser looks at

Pinterest beginning on page 8 of this issue.

HOW YOU WIN THE RETAIL WARS Like other independent furniture retailers, he’s had to face challenges and come up with creative solutions to survive economic slumps. “Me and Vivi are creative and we work here every day. We just keep firing artillery, and that’s how you win the war — you just keep going. It’s worked so far. We just work really hard here.” Goettler has been increasing his online presence while working to maintain, grow and promote the Chesterfield Warehouse operation, which focuses on modern upholstery. The store showcases such brands as Brentwood Classics, Broyhill, Gus, Steven & Chris and Simmons Canada’s Beautyrest mattress collection. Although the store has been well-received in the community, Goettler says it’s a work in progress. “We’re hoping to show more upholstery sets,” he says. “Between our two stores, we hope to have 125 sets. We’re working with a designer to change the store’s landscape. A little more product and choice would be good. It takes a while for a brand to become known, but sales are going the right way.” He hopes Stratford’s changing demographics will help his more contemporary store succeed. “Stratford is unique,” he says. “It’s a growing district and there are a lot more students coming in. The area is starting to vibrate, and we’re pleased to see that.” }

“My dad was a great merchant. He was honest and forthright. He told me to be straight up and I’d always have customers. I have a high standard to live up to.”

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Goettler’s optimism is unflinching, and he expects to grow. “The fact that independent retailers are diminishing in numbers is a double-edged sword,” he says. “It may mean less competition, but it’s actually good to do business in an area with good competition. Competition keeps shoppers in the area, so they aren’t jumping to big-box stores in other districts.”

NO TIME FOR DOOM AND GLOOM

“I feel fortunate and blessed to have this business. We have families that are loyal to us, and I tell all our people to make sure our customers are well looked after and well treated. Merchants need to be friendly and enthusiastic. This is our living.”

Seen here is an exterior view of the Chesterfield Warehouse in Stratford, Ontario. Goettler opened the upholstery boutique in September 2012, positioning it as a custom-order house merchandising better quality goods. 

HGO merchandiser

As for the conventional wisdom that difficult business conditions are the “new normal” for the industry, Goettler is not sure that doom and gloom is warranted. “I really don’t know what the future holds. If you improve your company during a down period, then you’re better off than if you did nothing. Market share is always a problem, so you want to make sure you have the right product. You won’t stay on top of trends if you’ve lost interest in the business.” But whether the economy dips or the harsh Dublin winters keep clients away, Goettler remains enthusiastic. He expect to pass on the business to the next generation. “I feel fortunate and blessed to have this business. We have families that are loyal to us, and I tell all our people to make sure our customers are well looked after and well treated. Merchants need to be friendly and enthusiastic. This is our living.” HGO

AT A GLANCE G.G. GOETTLER FURNITURE INC. ADDRESS: 3954 Perth Road 180; Dublin,

Ontario N0K 1E0 YEAR ESTABLISHED: 1952 OWNER: Stephen Goettler MEMBER: Mega Group WEB SITE: www.goettlersofdublin.com; www.

chesterfieldwarehouse.com FACEBOOK: www.facebook.com/pages/Goettlers-of-

Dublin-Fine-Furniture; https://www.facebook.com/ ChesterfieldWarehouse NUMBER OF EMPLOYEES: 15 NUMBER OF LOCATIONS: 2

– A frequent contributor to HGO Merchandiser, ASHLEY NEWPORT is a Toronto-based freelance

journalist who primarily writes for trade and business publications. Her specialties include food, hospitality and emerging social/business trends.

OTHER LOCATION: Chesterfield Warehouse in

Stratford, Ontario STORE SIZE (SELLING SPACE): 30,000 square feet

(Dublin); 5,000 square feet (Stratford)

C1003

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magnussen.com HomeGoodsOnline.ca

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ON RETAIL>>>

FIVE WAYS INDEPENDENTS CAN

compete online THE CONSUMER’S WORLD IS NOW DIGITAL, BRINGING WITH IT A BEVY OF NEW COMPETITORS FOR TRADITIONAL FURNITURE STORES. EXCLUSIVES MEAN NEXT TO NOTHING ON THE WEB, AND A PRICE-MATCH STRATEGY TYPICALLY SPAWNS A RACE TO THE BOTTOM. BUT HGO'S INTREPID MERCHANDISING MAVEN SUGGESTS FIVE WAYS A BRICK-AND-MORTAR RETAILER CAN THRIVE IN THE INTERNET UNIVERSE. BY ALIXE MACRAE

HERE’S A BRAVE NEW

storefront opening for the independent furniture, mattress and major appliance retailer, and it can’t be found on a street map. It can only be found online. That is, on the World Wide Web. Learning to compete effectively in the wide-open frontier commonly known as the Internet is the next big challenge for the owner/operator of the traditional brick-and-mortar full-line furniture store. One complicating factor: Your online competitor isn't always immediately apparent. For example, most Canadian furniture retailers don’t consider Wal-Mart and Costco to be competitive threats. Think again. Wal-Mart Canada recently offered a bonded leather swivel reclining rocker from Montreal-based Monarch Specialties for $399 plus HST. The kicker: free shipping. The product wasn’t available in any of Wal-Mart's 300-plus stores across the country, only on its Web site. Costco has a significant amount of furniture on its floors only at certain times of the year (mattresses and some major appliances can almost always be found), but its Web site has dozens of pages devoted to the category, most of it in the solid mid-market price points. Then there are the Web-only furniture merchants. There aren’t all that many currently targeting the Canadian consumer as its primary customer. The most prominent are the British Columbia-based Wholesale Furniture Brokers, and Furniture Canada, headquartered in the Toronto suburb of Vaughan. But their presence is growing and will continue to grow for the foreseeable future.

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A LITTLE BACKGROUND Earlier this year, J.C. Williams Group, the Torontobased retail consulting firm, published a report on the Canadian consumer’s behaviours, attitudes and expectations when it came to shopping and buying online. It was very careful to distinguish between these two very different behaviours. The report notes that e-commerce – buying on the Internet – accounts for just 3.7% of Canadian retail sales, but it’s rapidly climbing. In 2012, it was valued at $21.5 billion. By 2016, it’s projected to be $35 billion. The most popular categories for online purchases remain what Williams describes as “low-impact” purchases – packaged goods, apparel, computers, electronics and books – which together accounted for about 70% of all online product spending in 2011. However, the report noted that “e-commerce is quickly spreading to all retail categories.” It is estimated that 88% of Canadians visit the Web regularly. Of these, 78% have made an online purchase at one time or another. “While this trend extends across all demographic groups, several cohorts, including Canadians who are young, college or university educated, employed full-time and in the middle household income category, are overrepresented,” Williams reported. The report also provides evidence supporting a commonly held piece of conventional wisdom among the furniture, mattress and major appliance retailing community: Consumers use the Internet as a research tool. Furthermore, they want the store to look and feel like its Web presence. “Canadian shoppers’ attitudes and satisfaction have clearly changed when it comes to the Internet – online

buying and shopping has become mainstream,” the report says. “Most Canadian consumers are comfortable with the process and, motivated by choice, convenience and overall cost, almost all are using the Internet at least during the shopping and comparison phase. To attract attention and generate consumer demand for products and services, retailers need to deploy digital and physical promotional methods. “The challenge for Canadian retailers now centres on providing the best customer experience and ensuring it melds seamlessly within an overall omnichannel strategy,” it continues. “Canadians want to easily research and compare products, engage in a discussion where required and have complete clarity when it comes to the total purchase cost as well as delivery and return policies.” J.C. Williams also warns the digital environment itself is changing rapidly with the introduction of new generations of browsers and devices, particularly mobile devices. Retailers will be challenged to make sure their shopping applications work with each device and that they make the best use of each platform. “Customers are interested in hearing from retailers through digital and physical channels,” they conclude. “In addition, customer expectations are always growing. Savvy retailers will embrace the challenges and constantly improve the online shopping experience.”

A LITTLE ADVICE At one time, Jordan’s Furniture, the well-known six-unit destination retailer headquartered in metro Boston, promised it would match the price of any item it carried that the consumer found cheaper on the Internet. They soon stopped that because it was a fast trip to the bottom, since online retailers don’t hold much of anything in inventory. Jordan’s now emphasizes the shopping experience in both their stores and in their Web presentations. It’s a lot less costly, and it's exactly what the J.C. Williams report advocates. For the past decade or so, most independent furniture retailers have sought to floor “exclusive” product. While that’s effective in differentiating a store from its brick-and-mortar competitor across town, exclusivity means little on the Web. Your competitors aren't all in your trading area, and there’s nothing to stop them from advertising the product your store has “exclusively.” The price match strategy has some merit, but before adopting it, read the details your competitors list as exclusions, typically “doorbuster” specials, “loss leaders” and “limited quantity” offers. Also, when deciding to price match, make sure allowances are made for delivery costs, duty if applicable and other not immediately obvious charges. }

Most Canadian consumers are comfortable with the process and, motivated by choice, convenience and overall cost, almost all are using the Internet at least during the shopping and comparison phase.

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When pricing, aim for the heart, not the wallet. The price on the store Web site should be the same as the one on the tag on the floor. HOWEVER, IF THE INDEPENDENT RETAILER WISELY OPTS TO AVOID THE RACE TO THE BOTTOM, HERE ARE FIVE STRATEGIES TO CONSIDER:

Negotiate with an important upholstery vendorpartner for an exclusive fabric cover for your Web site. The sofa, loveseat and chair it covers will seem totally different from anything else the customer sees on other sites. An important thing to remember is the vendor may require minimum yardage, as he also has to make a profit. The other key thing is to ensure your exclusive yardage matches the sofa. Don’t put an outrageously modern cover on a frame with a more traditional silhouette. If in doubt, ask one of your best customers. You may like stylish but she may prefer a more sedate pattern.

Know your vendors, and not just their product lines but their strengths and weaknesses as a partner. For example, bonded leather is not the same as real leather; it’s essentially vegan friendly as very few animals were killed to make it. Product made in Canada – and usually the United States – is typically customizable. Product from Asia is not. Don’t be afraid to change vendors if it gives you what you want or need. As always, be aware of things beyond “first cost,” such as duties and delivery.

3 EDITOR’S NOTE:

To obtain a copy of the J.C. Williams Group’s Online Shoppers and Buyers – White Paper, visit their Web site at www.jcwg.com.

HGO merchandiser

You can always go the private-label route, but remember customers aren’t stupid. They can tell when there’s really no difference worth paying for (although mattresses often remain a mystery). Whether it’s in the store or on the Web site, sell the benefits, not the features. No one cares about a bed locking system, but the customer will care about a bed that can stand up to bouncing, particularly if she has kids. Not so long ago, Sears Canada would ask customers what they wanted in an appliance, then asked what they would be willing to pay for that feature. Then they made sure they offered the most wanted features at the least possible cost. Smart!

When pricing, aim for the heart, not the wallet. The price on the store Web site should be the same as the one on the tag on the floor. For many, a mid-range price of $999 for a sofa is seen as value; for others, $1,999 may be the right price. Always have a few great trade-up alternatives available. Don’t gouge on the trade-up product. Make it easy for your sales consultant to sell, with confidence.

Never ever price anything on your floor or your Web site higher than at the brick-and-mortar stores surrounding you. That will result in certain death. Shop your competitors the right way: check their washrooms, the time they take to acknowledge a customer, and their associates’ “closing the sale” time. Don’t forget to research their delivery charges, what they charge for extended warranties, and their financing costs – both in the store and on their Web site. These strategies, if successfully implemented, should cause the customer to be more than flattering in her praise when she talks about you, your staff and your store. Otherwise you’ll be closing your doors, as many others have done before you. They’re not talking about you just at the neighbourhood picnic any longer; they’re also talking about you on the World Wide Web. Remember to be remembered for quality, helpfulness and, of course, the best value. HGO – Home Goods Online’s most widely read blogger/ contributor; ALIXE MACRAEis one of this country's best-known merchandisers. She has held senior posts at such well-known Canadian retailers as Stoney Creek Furniture, Sears Canada and The Bay.

INDUSTRY CALENDAR October 19 to 24, 2013 HIGH POINT MARKET Assorted Market Buildings High Point, North Carolina Organized by: High Point Market Authority 336.869.1000 www.highpointmarket.org December 8 to 11, 2013 SHOWTIME Assorted Market Buildings High Point, North Carolina Organized by: International Textile Market Association 336.885.6842 www.showtime-market.com January 10, 2014 CANADIAN HOME FURNISHINGS AWARDS GALA International Centre Toronto, Ontario Organized by: Canadian Home Furnishings Alliance 905.677.6561 www.chfaweb.ca January 11 to 14, 2014 CANADIAN HOME FURNISHINGS MARKET International Centre Toronto, Ontario Organized by: Quebec Furniture Manufacturers Association 866.468.4436 www.tchfm.com January 13 to 19, 2014 IMM COLOGNE Koelnmesse Cologne, Germany www.imm-cologne.com January 23 to 26, 2014 INTERIOR DESIGN SHOW Metro Toronto Convention Centre North Building Toronto, Ontario Organized by: Informa Canada 416.599.3222 www.interiordesignshow.com January 26 to 30, 2014 SPRING 2014 TORONTO GIFT SHOW International Centre/ Toronto Congress Centre Toronto, Ontario Organized by: Canadian Gift & Tableware Association 800.611.6100 www.cgta.org

January 26 to 30, 2014 LAS VEGAS MARKET World Trade Center Las Vegas Organized by: International Market Centers 702.599.9621 www.lasvegasmarket.com February 6 to 9, 2014 TUPELO FURNITURE MARKET Tupelo, Mississippi 662.842.4442 www.tupelofurnituremarket.com February 16 to 19, 2014 ALBERTA GIFT SHOW Northlands/Edmonton EXPO Centre Edmonton, Alberta Organized by: Canadian Gift & Tableware Association Telephone: 800.611.6100 www.cgta.org March 23 to 26, 2014 MONTREAL GIFT SHOW Place Bonaventure Montreal, Quebec Organized by: Canadian Gift & Tableware Association 800.611.6100 www.cgta.org

ADVERTISERS’ INDEX Pages 2-3 Phoenix AMD International 41 Butler Court Bowmanville, ON L1C 4P8 T: 800.661.7313 F: 905.427.2166 www.phoenixamd.com Page 5 Worldwide Homefurnishings 200 Romina Drive Concord, ON L4K 4Z7 T: 905.660.9957 F: 905.660.9657 www.whionline.com Page 7 Durham Furniture 450 Lambton Street W Durham, ON N0G 1R0 T: 519.369.2345 F: 519.369.6515 www.durhamfurniture.com Pages 16-17 Serta Canada/Star Bedding Products 40 Graniteridge Road, Unit #2 Concord, ON L4K 5M8 T: 800.663.8540 www.sertacanada.com Page 11 Zedbed 5352 rue Burrill, P.O. Box. 21066 Shawinigan, Quebec G9N 8M7, Canada T: 819.539.1112 F: 866.533.1151 www.zedbed.com Page 21 Magnussen Home Furnishings 66 Hincks St, Unit 1 New Hamburg, ON N3A 2A3 T: 519.662.3040 F: 800.267.3278 www.magnussen.com

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SOCIAL SCENE>>>

Out on the

L NKS

Cantrex Nationwide and the Golf Classic held by the Canadian Home Furnishings Alliance to close out its Toronto Summer Furniture Show. The 30th annual Cantrex tournament – held at the Copper Creek Golf Club just north of Toronto – hosted some 130 or so golfers from across the industry. This year, the event raised $12,500 for the Salvation Army’s Send a Kid to Camp campaign and another $2,500 for the Rotary Club of Willowdale, Ontario, in support of the J.K. Nyere School in Tanzania.

In early August, the CHFA Golf Classic closed out this year’s edition of the summer show, which featured some 25 furniture resource showrooms in and around Toronto’s International Centre. About 104 avid duffers from throughout the industry turned out for what turned out to be a great day on the golf course – cool with a light breeze and slightly overcast.

HGO merchandiser

1 Cantrex: Murray Osbourne, AdamDowney, Brandon Downey and Ken Brisco, all of Brisco Furniture & Appliances in Alliston, Ontario.

6 CHFA Golf Classic: Jim Fee and Dennis Novosel of Stoney Creek Furniture in Stoney Creek, Ontario; and Gary Daley of Grow Trade Consulting.

2 Cantrex: Vance Privitera of Cantrex Nationwide (second from right) is seen here with Jamie Mckeen, Jody Mckeen and John Dean of Paddy’s Market in Hampton, Ontario.

7 CHFA Golf Classic: Mike Laverty of Laverty’s Home Furnishings in Dunnville, Ontario; Jim Carruthers, a retired furniture retailer; and, Ralpy Goertzen and Bruce Gee, both of Palliser Furniture.

3 CHFA Golf Classic: Marsha Soew and Tracy Trudell of Serta Canada with Michael Parsa and John Hronakis of MP Transport. 4 CHFA Golf Classic: Laine Reynolds, Superstyle Furniture; Mike Dunlop, Serta Canada; John Power, Palliser; and, Steve Braniff, Dufresne Retail Solutions Group.

5 CHFA Golf Classic: Thomas Harwood, VA Transport; Pat Kelly, Cantrex Nationwide; Earl Laird, Cantrex Nationwide; and, Paul Busch, Danby Products.

8 CHFA Golf Classic: Michael Ettorre, Robert Colalillo and Dino Colalillo, all of Edgewood Furniture; and, Arnaldo Fierro of North American Paper. 9 CHFA Golf Classic: Dale McNeill of Valle Foam; John McCairley of Lind Furniture Canada; Herb Borne of Valle Foam; and, Michael Saifer of Lind Furniture Canada. 10 CHFA Golf Classic: George Mougtoussidis, Brad Hogeterp, Scott Cairncross and Victor Truong, all of DB Schenker Canada. HomeGoodsOnline.ca

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Windsor Bay Communications Inc. P.O. Box 3023, 120 Ontario St. Brighton, ON K0K 1H0 T: HGO 613.475.4704 F: 613.475.0829 merchandiser