HGO Merchandiser Spring 2014

Michael Knell’s

HGO merchandiser SPRING 2014

For Beaudoin, it’s all about the frame Major appliances: The high end beckons The web needs an adaptive presence Cooper discusses your three business challenges

The

WIZARD of DODD

HomeGoodsOnline.ca

Volume Three, Issue 2

CONTENTS

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Retailers should expect to see gains in their average ticket over the next year or so, but one expert suggests volumes will also drop – a real good news/bad news story. And, according to a new report from CIBC, that’s unlikely to change until Canadians see some real employment and incomes gains. That probably won’t happen until 2015.

Donald Cooper, regular HGO contributor, business speaker and coach shares the ‘straight goods’ on 15 of the external, internal and regulatory challenges faced by every business owner, regardless of the industry he or she is part of.

Meeting them will go a long way towards building a profitable, successful organisation.

FROM THE EDITOR SELLING LESS FOR MORE

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PROFILE THE WIZARD OF DODD

Dodd’s Furniture, the Victoriabased two-unit furniture store operation is best known for its founder’s humorous, off-best commercials. It’s also famous for its products, its service, its people and its goodwill and has been going strong since 1977 because of its passionate – and compassionate – approach to customer service. Our report was written by Ashley Newport.

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SPOTLIGHT ALL ABOUT FRAMES

In the first of new series spotlighting interesting small Canadian furniture manufacturers, Ashley Newport profiles Julien Beaudoin, this country’s only producer of bed frames, an often neglected category that has big profit potential. This family-owned firm recently celebrated 50 years in business and is expanding into new categories that dovetail with their core product.

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APPLIANCES UPWARD MOBILITY

Independent furniture and appliance retailers need to keep a firm eye on the new higher-end offerings being introduced by most of the major white goods resources as 2014 opens. That focus will help them boost sales in a sluggish economy. Andrew Brooks authored this overview of Canada’s major appliance market.

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ON RETAIL YOUR BUSINESS HAS THREE KINDS OF CHALLENGES.

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INDUSTRY CALENDAR & ADVERTISERS’ INDEX TECHNOLOGY FOUR DEVICES, ONE WEB SITE: BE “RESPONSIVE” AND WIN

First-time contributor Regina Dinning, a business development director specialising in home goods at Netsertive, a North Carolina-based digital marketing consultancy, discusses the need for retail web sites to have an adaptive presence as part of the effort to convert leads into sales.

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MARKET REPORT TCHFM: ON THE MOVE TO 2015

This country’s only national industry event is moving to June next year, building on a 2014 show that had plenty to offer attending retail buyers. There really was no shortage of innovation in the halls of the International Centre. Our review was written by Michael J. Knell ON OUR COVER: Gordy Dodd is a retailer who instinctively knows retail is at least, in part, theatre as the inset photo of him as ‘Hindiana Jones’ – one of the cast of characters created for his now famous TV commercials – clearly shows. He also works just as hard to give back to the community that welcomed him with open arms all those years ago.

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EDITOR’S LETTER

Selling less for more

MICHAEL J. KNELL

Retailers should expect to see gains in their average ticket over the next year or so, but one expert suggests volumes will also drop – a real good news/bad news story.

I

N A R EC E N T R E P O RT, C I B C O F F E R E D B OT H G O O D A N D BA D

news for Canadian retailers. In 2014, they should expect to sell less for more.

Most retailers I know want to sell more for more. But the rationale the bank uses to bolster their argument is worth considering.

Last year, consumers saw their purchasing power heightened by low inflation.

With inflation expected to go up over the next two years – perhaps a post-recession high of 2% or more – that power is going to be diminished.

There are one or two complicating factors involved as well. “One constant from last year to this one is that household wallets will be improving at what can only be described as a mediocre pace,” the CIBC report noted, pointing out that disposable income growth was at a 15-year low point in 2013. They don’t expect to see any real employment and income gains until 2015. What’s more, the ratio between the ‘average’ wage and the ‘median’ wage has been steadily eroding in recent years.

While there has been a lot of chatter recently about the growth in household debt, CIBC observes that growth has been driven largely by mortgage debt and soft income growth. This means debt hasn’t been driven by consumption.

For this country’s furniture, mattress and major appliance retailers the implications of the CIBC report – called Less for More: Canada's Retail Outlook – are reasonably clear. Whatever gains there are to be made in 2014 will likely come from higher prices for the goods on the floor but gains in volume are unlikely to come until 2015 or later – depending on when consumers begin seeing real gains in employment and income.

My advice: look at what’s going on in your community. Study the employment and income trends. Make sure you understand what has been selling over the past 12 to 18 months. Then plan accordingly.

Michael J. Knell Publisher & Editor mknell@homegoodsonline.ca

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HGO merchandiser SPRING 2014 • VOLUME THREE, ISSUE 2 ISSN 2291-4765

www.HomeGoodsOnline.ca PUBLISHER & EDITOR Michael J. Knell mknell@homegoodsonline.ca MANAGING EDITOR Anthony E. Bengel tony@homegoodsonline.ca CONTRIBUTORS Andrew Brooks Donald Cooper Regina Dinning Ashley Newman 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

© 2014 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

In 2015, you will see TCHFM with fresh eyes Canada’s only home furnishings market is moving to June!

Travel in warm weather and better conditions Meet more buyers and exhibitors from across Canada and the U.S. Experience Toronto under the sun: festivals, restaurants, shows and baseball For all these reasons and more, the new June timeframe has been well received by the industry.

Join the furniture world and discover the latest in home furnishings and decor.

June 4 - 7, 2015

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Dodd’s opened a second store in Nanaimo, the second-largest community on Vancouver Island after Victoria. The company would like to have as many as six units in its chain over the next decade or so.

he WIZARD of DODD Dodd’s Furniture, the independent Victoria furniture retailer, is best known for its founder’s humorous, off-beat commercials. It’s also famous for its products, its service, its people and its goodwill.

The store has been going strong since 1977 because of its passionate – and compassionate – approach to customer service.

BY ASHLEY NEWPORT

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Dodd’s flagship store, seen here, is in downtown Victoria. It covers 35,000 square feet of selling space and includes this country’s largest independent Serta mattress gallery.

PROFILE

S

OME STORES ARE DEFINED BY THEIR

owners, and that’s certainly true of Gordy Dodd and Dodd’s Furniture. He’s spent most of the past four decades building a family-owned operation known throughout Vancouver Island and the Lower Mainland of British Columbia for its locally, nationally and internationally sourced furniture and mattresses, and for its charity, humour and close community connections.

Dodd’s Furniture, whose 35,000-square-foot showroom is across from Victoria’s Mayfair Mall, began as a very small operation 37 years ago, in 1977. The India-born Gordy Dodd, who immigrated to Canada 10 years earlier at the age of 22, started out in a 2,500-square-foot building. He had trouble securing a bank loan, and had to truck goods from Vancouver and display, sell and deliver them himself.

His incredible perseverance, and countless hours spent running a nearly one-man show, resulted in a locally famous operation, complete with commercials starring Gordy as “The Wizard of Dodd,” “Hindiana Jones” and “Dodd. Gordy Dodd.” And did we mention he’s also portrayed Alex Trebek, Captain Kirk, Superman (or SuperGordy) and John Wayne?

“He did sales and deliveries and built up his clientele and got bigger and bigger and added more employees, and in 1984 he went from 2,500 to 12,000 square feet,” says Love Dodd, Gordy’s son and company vice president. Dodd’s now has a second showroom in nearby Nanaimo.

What made Dodd senior decide to open a furniture store in the first place? “He worked for Sandy Sandhu, who had furniture stores in British Columbia and Alberta during the ’70s,” says Love Dodd.

“He was the godfather of furniture.” }

For his contributions to the community, Gordy Dodd was awarded the Queen’s Diamond Jubilee Medal by B.C. Premier Christy Clark.

“Hindiana Jones” and Captain James Kirk of the Federation Starship Enterprise are a couple of the many characters spoofed

by Gordy Dodd in his light-hearted TV commercials. Right: he’s assisted by his son, Love, who takes on the role of Mr. Spock.

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In recognition of his contributions to the community, Gordy Dodd (right) was recently presented with this year’s Rotary Community Leadership Award, which is part of the Victoria Leadership Awards program run by the University of Victoria in collaboration with a number of local organisations. Presenting the award is Murray Ramsbottom, president of the Victoria Rotary Club.

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A key reason for Dodd’s success was that from the beginning it forged a personal connection with shoppers. “Our customer service was always great because customers were dealing with Gordy himself, and people loved that,” says his son. “Then he started doing the wacky commercials and that really brought Dodd’s (to the forefront). He’s a naturally funny guy who doesn’t want to be too serious.”

Dodd the elder’s foray into colourful, pop-culture-inspired commercials began when he went to Las Vegas and sat in a photo booth where he could dress as different characters. The photos inspired him to take the concept home and apply it to his advertising. The first commercial premiered in the mid-1980s, and it prompted a notable uptick in sales.

Dodd’s says it appeals to every age and income level. The store boasts a clientele ranging

in age from “18 to 100” and stocks products that can fill a first apartment or bring sophistication to an elegant family home. The store’s motto: “We won’t be undersold.” If a customer finds the same item at a lower price in another store, Dodd’s will beat it.

Financing is offered, so some customers may be eligible for deals that allow them to put off paying for a year or forgoing a down payment or interest.

“We give value – the lowest price and the best service,” Love Dodd says.

Dodd’s likes to focus not only on Canadian goods, but on those produced in the province.

Local brands showcased include Elite Sofa Design out of Delta, and Mako Wood Furniture in Surrey. Both communities are suburbs of Vancouver. Other major suppliers include Best Home Furnishings, Ashley Furniture and Simmons Canada. Dodd’s also boasts Canada’s largest independent Serta mattress gallery.

Love Dodd says promoting local businesses inspires goodwill in customers. “It touches the customer in a heartfelt way. It creates a home feeling. Their eyes light up when they find out we have goods manufactured here. You are also not paying extra for shipping, and it’s easier to resolve any problems right away.

“We have a large selection of upholstery, and we promote a lot of made-in-B.C. upholstery and bedroom suites. We also sell a lot of Chinese imports, so it’s a mixed bag. We sell things that are affordable and good quality. We want to sell what we’d be buying if we were customers.

We do a lot of the buying and we (both Gordy and Love) work on the floor, so we know what the customer needs and we see what the trends are. We can react right away.”

Dodd’s guarantees quick, convenient delivery. “We have a 45,000-square-foot warehouse with in-stock items so people don’t have to wait for their furniture. We make sure to have a product in stock if we’re promoting it.”

As for trends, Dodd says that smaller-scale furniture is gaining traction. “People want more condo-sized furniture that’s scaled down.

Darker finishes are selling quite well, especially the woods. Lighter colours are still popular in upholstery, as is soft leather. People like grays and whites.”

The store also takes care of its employees.

“We have very low turnover,” says Love Dodd.

“We have staff members that have been here for 10 to 35 years. We do a lot of training to keep them up to speed on the market. We treat them like family. A lot of them bought their first homes (while working with us) and we’ve helped them out with down payments and }

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Looking down at the main sales floor at Dodd’s flagship store in Victoria.

Bottom left: Gordy Dodd, the president and founder of Dodd’s Furniture, with his son, Love, the company’s vice president. Bottom right: Dodd’s Furniture is also famous for promoting furniture made in British Columbia. One of the company’s they actively feature is case goods producer Mako Furniture.

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other things. We’ll help them if they have an emergency. It’s a community environment.”

Community is paramount for Dodd’s, and the store reaches out to take care of those in need.

“We started hosting Thanksgiving dinners for low-income people 15 years ago, and Christmas dinners five years ago,” says Love Dodd, both in Victoria and recently in Nanaimo too. “We first served about 100 people, and now we serve up to 1,500.”

The dinners take two weeks to organize, with two days going to food preparation alone. The volunteer-run gatherings are the senior Dodd’s way of giving back to the community that helped him when he was new to the country and surviving on little income.

“Gordy came to Canada and couldn’t afford the razors to shave,” says Love Dodd. “He said the community helped him so much that he wants to give back.”

Dodd’s community service doesn’t end there.

The store also acts as a drop-off point for food, clothing and shoes for people and countries in

need. Gordy applies the creativity he uses in his advertising to generating funds for causes he’s passionate about.

“Gordy went up on a 60-foot crane in the cold to raise $20,000 for Haiti after the 2010 earthquake,” says his son. “He raised $24,000. He also used the crane to raise money for Japan (after the 2011 tsunami) and Calgary (after the 2013 floods). Gordy is also on the board of directors for the Parks and Recreation Department, police boards, cultural association boards and the Boys & Girls club.”

People tend to gravitate to a business that’s community-inclined, the Dodds believe. “Everyone here is community influenced,” Love says.

“We do a big cultural dance every year in Beacon Hill Park and we support lots of local sports teams for kids. Gordy started a walk for peace that’s now in its fifth year. He goes to India twice a year and he set up a health camp to treat people who can’t afford basic medicine.”

Such extensive community involvement, plus its passion for customer service, tends to keep Dodd’s customers coming back. “We see a lot of repeat customers,” says Love Dodd.

“We’ve had customer loyalty since day one.”

The store also benefits from word of mouth, and shoppers seduced by the commercials sometimes travel from far and wide to visit.

“We get clients island-wide,” says Dodd. “We have customers from Port Hardy and a lot of people from the smaller islands. We also have a lot of competition. There are lots of big-box stores and department stores and local places.”

To help keep them connected to the industry, Dodd’s is a member of Cantrex. Dodd says membership has its benefits, including extended payments and buying power. “We love working with other retailers and sharing ideas and challenges. We can sit at a roundtable and get great ideas.”

What does the future hold for Dodd’s? The younger Dodd says the only direction he can see is up.

“We’d like to grow bigger on the island. Right now we have two stores and one warehouse, and we’d like to have six stores by 2030. I personally thought (this industry) was quite boring growing up. My dad asked me to join. I said I’d try. I sold a mattress and it got in my blood and I fell in love with it. I see us on the path to growth. I hope my kids (he has a daughter) get into the furniture business.” HGO A frequent contributor to HGO Merchandiser, ASHLEY NEWPORT is a Toronto-based freelance journalist who writes primarily for trade and business publications. Her specialties include food, hospitality and emerging social/business trends.

SOCIAL MEDIA Dodd’s also stays in touch with customers by maintaining a strong social media presence. Click on the social media icons below where the two-unit family owned and operated retailer can be found.

FACEBOOK

TWITTER

YOUTUBE

FOURSQUARE

The bedding department in Dodd’s Victoria store.

HomeGoodsOnline.ca

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SPOTLIGHT

æ†ç

ALL ABOUT FRAMES When selling or buying a mattress, it isn’t hard miss the forest for the trees and focus on comfort, price and style alone – forgetting that without the frame, getting a good night’s sleep would be all the more difficult. Fortunately for furniture and mattress retailers, the Quebec-based Julien Beaudoin keeps its assortment of state-of-theart, functional, stylish frames coming.

BY ASHLEY NEWPORT

I

T IS IRONIC THAT BED FRAMES ARE

not often top of mind among either retailers or their customers, as they’re truly the bed’s foundation. Without a proper frame, there is only the mattress, box spring, sheets and pillows — not the welcoming warm and comfortable bed the end consumer envisions. Fortunately, Julien Beaudoin Ltée – a company that recently celebrated 50 years in business by donating $50,000 to create a local water park and playground – has more than carved out a niche in the market and remains the only bed frame manufacturer in Canada. They’re also not afraid to evolve by adding new products to their arsenal, and they keep the focus squarely on what matters: service.

“We’re very focused on customer service and flexibility,” says Pierre Lemieux, marketing director for the family owned and operated Beaudoin.

“We focus on a good, better, best strategy and we have solid relationships with mattress retailers.”

Julien Beaudoin founded his name sake enterprise in Daveluyville, a small town in rural Quebec about a two-hour drive east of Montreal on the Trans-Canada Highway, in 1963. The company initially served the Quebec market exclusively until his daughter, Diane, took over in 1987. Under her leadership, the company grew and spread its wings into Ontario, the western provinces and the Maritimes before entering the American market in 1997.

Beaudoin has managed to remain innovative and ahead of the curve while also keeping it in the family. Diane’s son, Brian Crochetière, is the company’s current president. A mechanical } Bed frame manufacturer Julien Beaudoin’s senior management team includes (from left to right): Steve Plante, director of production; Pierre Lemieux, director of marketing; Brian Crochetière, president; Diane Beaudoin, owner; René Marcoux, director of administration; and, Pascal Roberge, director of sales.

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Beaudoin currently offers 20 different models of upholstered beds, some with options such as storage. The company says sales in this category have grown dramatically.

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The Julien Beaudoin factory located in Daveluyville, a small town in rural Quebec about a two-hour drive east of Montreal.

Beaudoin launched a line of upholstered beds, such as the model seen here, in 2012 and is believed to be the only manufacturer in Canada with a plant dedicated to this increasingly popular product line.

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engineer by training, he joined the company in 2004 as plant manager.

When it comes to staying fresh, Lemieux says Beaudoin has added some new products to its line-up.

“We offer bed rails, folding cots and other related products, but they are a smaller part of the business and are more peripheral products,” adds Pascal Roberge, director of sales. “We launched a premium bed frame that retailed for $150 five years ago. We are now launching a revolutionary bed frame – the Balance – which will retail for more than $200 and has a number of unique features. These frames are a real value added for our customers.”

First introduced to independent retailers at the 2014 edition of the Canadian Home Furnishings Market (TCHFM) this past January,

Balance boasts a carbon finish on the side rail as well as heavily recessed legs that provide not only extra strength and stability but more toe room. Lemieux believes consumers will happily purchase a higher-end bed frame – something that may be something of a surprise to many industry veterans.

“These days, we are selling more promotional and high-end frames – it’s the middle that’s shrinking,” he says, noting most Canadian mattress producers of his acquaintance are experiencing a similar trend. “We have a very good market share in Canada, but we’ve seen a decrease in our volume in recent years similar to mattress units. It’s been a tough time for the mattress industry, so we re-invented ourselves to offer innovative products.”

With furniture retailers continue struggling to make a comeback after several difficult years, how does a crucially important but significantly less visible component maintain adequate sales? Lemieux believes the best way is to ensure retailers understand the importance of selling more and better bed frames.

“We have mattress retailers who do a great job with their frame offering. We want to improve our performance with all the specialty stores and help them increase their attachment rate,” Roberge says. “Some focus first on other categories and we want to be first in that line. We want the retailer to focus more on the bed frame. Much of the time, they sell it only if their customers ask for it. We want the retailer to have a conversation

“We want to tell them they should present a bed frame with every new mattress, as the new mattress could be 80% heavier than the customer’s old one. The bed frame is like the foundation of a house!” with the customer. We have a lifetime warranty product with a great margin, so we’re a good category for retailers to focus on.”

To get people talking about bed frames, Beaudoin will introduce a new retail display in 2014 that will let customers in the store see the product and watch a video explaining how the frame functions. But ultimately, growth is contingent upon retailers doing their best to market the product to consumers.

“We need to do more training with sales associates so they better understand the evolution in the bed frame category,” Lemieux says.

“They’re different from what they were 20 years ago. Then, most people slept on double beds. Today, queen size is the norm. From what we see, the majority of retailers don’t offer the frames with the mattress. Some take the time to sell them but many don’t.

“We want to tell them they should present a bed frame with every new mattress, as the new mattress could be 80% heavier than the customer’s old one,” he continues. “The bed frame is like the foundation of a house!”

A key challenge for a bed frame manufacturer is the product’s seemingly lacklustre look – it’s not very stylish.

Beaudoin certainly has a laudable advantage with high market share (estimated at 80% in Canada and limited competition – which mainly comes from imports, Lemieux says – but the sales floor is a tough place for a simple metal structure.

While Beaudoin produces various bed frames, bed rails, bed supports, and mattress supports to give retailers and consumers up-todate options, the product might not inspire the same excitement in a buyer as, say, a modern upholstered sofa or an ornate coffee table. Once the bed is assembled, the frame becomes invisible – even though it’s far more important to the comfort and safety of the end-user than the pillowcases or duvet. Beaudoin grapples with this challenge by educating retail store owners, their sales associates about the importance of a solid frame while providing customers with attractive accessories and an upholstered bed.

“We launched the upholstered beds in 2012 and we saw great results right away,” says Lemieux. “We’re the only manufacturer that has a dedicated plant to produce headboards and beds. We research what’s popular and we have over 20 different models with different beds, some with options like storage. We continue to increase our production capacity and

sales have continued to increase as much as 50% year-over-year.”

Aside from manufacturing a product with long-standing success, Beaudoin stays on top of the market through its research and development efforts and by maintaining a high standard of customer service and care.”

When it comes to service, Beaudoin is sure to put customers first.

“When we get a request, we try to find a solution fast,” Lemieux says. “We help the retailers keep their customers happy.”

As to what truly sets the family-owned business apart, Lemieux believes the key ingredients are flexibility and service.

“We have a product for every customer and that’s the key to keeping customers happy,” Lemieux maintains. “Flexibility is also important for us because a customer can have an emergency. We have been able, in some instances, to ship orders within four days. There’s never an argument between sales and production, so the customer wins!”

It’s not an easy feat to survive 50 years, so how does Beaudoin plan to thrive for the next half century?

“It’s tough to increase our business with a large market share, so that’s why we move towards new categories,” Lemieux says. “We’re looking for more than relationships, we are looking for partnerships with our retailers and we’re also looking to increase our portfolio. This will be the main direction for the next few years.” HGO 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.

To help retailers boost their attachment rates for the Balance bed frame, Beaudoin created this in-store display designed to let customers see the product and explain its importance. It is complemented with a video showing how the frame functions

Introduced at this year’s Canadian Home Furnishings Market, the high-end Balance bed frame boasts a carbon finish on the side rail as well as heavily recessed legs that provide not only extra strength and stability but more toe room as well HomeGoodsOnline.ca

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Smarter. Cooler. Better. Together.

Two Brands, One Focus: Helping you grow your business.

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APPLIANCES

Upward

MOBILITY

Independent retailers need to keep a close eye on the higher-end offerings being introduced by most of the major white goods resources this year. That focus will help them boost sales in a sluggish economy.

BY ANDREW BROOKS

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W

hile the worst of the 2008 economic downturn is now history, independent appliance retailers are finding recovery to be a long, slow slog. It doesn’t help that some of the primary economic indicators are sending mixed messages as we head into 2014.

Notably, new housing starts softened by about 15% in 2013, according to Canada Mortgage & Housing Corp. (CMHC) but are expected to rise slightly this year to 186,600 units. On the plus side, 69% of Canadians have the financial security of owning their home, and the net worth of the typical Canadian consumer broke the $200,000 mark last year, half the figure for household net worth.

Robert Sheppard, senior director of appliance merchandising for Mega Group, says that while retail sales of major appliances fell 0.3% last year, the industry still managed to grow 1.1% on the strength of builder sales. Retail figures for January 2014 were down 4.5%, but the independents are in positive growth mode because the decline is coming from the big-box side, he says.

“Mega’s forecast in 2014 is that retail sales will be flat to plus 2% based on our vendor meetings and some early projections,” Sheppard says. “Housing starts are good; that’s a positive indicator for us. The Canadian dollar is a concern, and prices will creep up because manufacturers are trying to recoup this impact.

Manufacturers have left Canada over the last

decade to a large degree. When the dollar is strong it’s good for manufacturers to export as they’re more competitive, but when you import, that reversed impact comes straight off the bottom line.”

“In 2013, the home appliance market remained consistent with previous years,” says Valerie Malone, senior brand manager of home appliances for LG Electronics Canada. “In 2014, we expect to see more of the same.” Malone cites the continuing strength of the housing market, particularly in Toronto, Calgary and Vancouver, which is helping maintain momentum for the home appliance market.

Sales by unit were up 3% in 2013, says Philippe Meyersohn, general manager of marketing and

training for GE Appliances/Mabe Canada. That figure includes both retail and new construction. “Growth was higher in the builder channel than in retail,” he says. “And overall, we’re still below 2007 levels.” For 2014, Meyersohn anticipates relatively flat growth of one to two percentage points.

Warrington Ellacott, senior manager of government relations for Whirlpool Canada, also notes the flat growth in 2013 compared with 2012. “For the industry, unit shipments in the top five categories – fridges, dishwashers, cooking, and washers and dryers – rose from 4.4 million to 4.5 million from 2012 to 2013. That growth came mainly from categories like multidoor bottom-out refrigerators and top-load }

Mabe Canada is hoping to set a fashion trend with the introduction of its slate finish for its GE brand of major appliances. The finish has already proven itself in the U.S. market.

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Allura, the mid-range private label white goods line from Cantrex Nationwide, is gaining traction with the group’s members who have shifted their focus from single-unit sales to selling a complete kitchen suite, including refrigerator, range and dishwasher.

high-efficiency washers. The latter are now 54% of overall shipments in the marketplace, which is just an outstanding figure.”

Built-in products such as wall ovens and cooktops showed strength over the past year, reflecting trends in the housing market, where renovation and remodeling are creating demand. This has contributed to strong suite sales, which account for about 12% of sales in the industry.

Warner Doell, vice president of home appliance sales and marketing for Samsung Canada, anticipates growth in 2014 will be in the 1.5% to 2.5% range. He says average unit selling price has risen somewhat, thanks to the premium and ultra-premium segments. “The AUSPs have risen in kitchen and to some extent laundry.

Items like French door and four-door fridges and high-efficiency and top-load laundry are also pushing prices up.”

Beating the numbers

“Retail was tough last year,” says Jim Mahoney, recently named interim vice president of electronics for Cantrex Nationwide. “Overall sales were off slightly, but the dealers who marketed aggressively did well.” Cantrex itself posted an impressive 13% increase.

“When times get tough, independent dealers tend to stop advertising,” he says. “But we held a

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lot of events over the year and the results we got definitely show that if you keep up the marketing, you’ll get more business,” Mahoney says.

Cantrex expecting to maintain double-digit growth this year, while the market follows at a 2% to 3% pace.

Independent dealers have been shifting their focus from entry level products to the middle and upper-middle range, he says, a necessary move in tough times as the margins there are higher. “They’re also moving from selling single units to bundling them into suites,” Mahoney says. “So they’ll put the range, dishwasher and refrigerator together and sell the whole kitchen.

This is proving to be very successful.”

In addition to capacity and energy efficiency, Mahoney says that steam technology in ranges, dishwashers and dryers was a key trend for 2013 and will continue to be so. He sees induction cooking expanding its footprint, which will help to drive prices down.

“We see a move into a more premium mix,” says Mega’s Sheppard. “Manufacturers will be vying for the profitable segment with higher average tickets. This is a good thing for the industry.” Mega predicts a lot of model transitions this year due to new energy efficiency requirements from the U.S. Department of Energy, a move likely to be mirrored by Natural Resources Canada. }

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Whirlpool Canada’s Black Ice suite is a follow-on to last year’s well-received White Ice launch.

The Maytag Man is back, but he’s not your father’s repairman. The iconic spokesman will be reintroduced by Whirlpool Canada this year.

Samsung Canada is aiming to make a statement this spring with its new Chef collection, which incorporates design elements and features solicited from renowned chefs around the world.

24 HGO merchandiser

The refrigeration category will see increasing popularity of three- and four-door models designed to fit almost anywhere, following last year’s introduction of door-mounted hot and sparkling water capability. Capacity will be a big issue across all categories, for example, the use of thinner refrigerator insulation will enable manufacturers to increase usable cubic footage within the same footprint.

“Mega expects to see more technology being accepted by the consumer, like connection to the smart home and the use of Bluetooth for integration into fully functional tablets built into the door,” Sheppard says. “Pricing for induction cook-

ing will come down, and the built-in niche will stay strong thanks to new condo construction.”

Whirlpool manages an extensive multi-brand portfolio articulated to target different consumer segments. Ellacott says one notable change is a complete redesign of the Maytag line, which even includes a re-launch of the iconic Maytag Man in a new guise. “The new character has a more youthful look, but the interesting thing is he’s now positioned for what Maytag does for the consumer, how Maytag helps the homeowner to do more, and of course we leverage the Maytag reputation for dependability and performance,” Ellacott says. “This will give the trade an opportunity to re-floor the brand and refocus it.”

As for the core Whirlpool brand, Ellacott says last year’s launch of White Ice, a sleek white finish with a stainless handle, will be followed this year with Black Ice, a sleek black look also with the stainless handle. The KitchenAid dishwasher line is getting a complete refresh, with new racking and a new wash system design – it’s one of the strongest KitchenAid dish lines Ellacott has seen in his history with the company.

New induction product has been introduced under the Jenn-Air brand, and Ellacott notes true steam cooking is also making progress.

“Jenn-Air also has new ventilation products,” he says. “In a high-density condo market like Toronto, people want good ventilation. We have a new downdraft product that doesn’t require external ducting. This is unique in the market – it provides high-performance cooking without worrying about how to handle the venting.”

LG Canada’s new 5.8 cubic foot, high-capacity, highefficiency top-load washer features the company’s TurboWash technology that promises to save the consumer 20 minutes per load.

The innovation edge

As always, says LG’s Malone, the key to maintaining strength at retail is to continue to present new and innovative products to the consumer, as exemplified bun the the now-established dominance of front control laundry as well as door-in-door refrigeration formats. Malone says an innovation-driven product strategy can drive consumer attention away from price points. She also believes reliability is top of mind: “2014 is about giving the consumer a feeling of confidence in the product(s) they are purchasing.”

Malone also believes convenience will continue to be a strong selling point this year. “Convenience is a feature that benefits the consumer in terms of saving time or ease of use, and because of that, it is changing what consumers look for in a product and a factor that is driving purchases.”

LG’s new products for 2014 include a new super capacity frontcontrol washer. “At 5.8 cubic feet, the Mega Capacity High Efficiency Top Load Washer with TurboWash Technology ensures quiet loads and deep cleaning with the WaveForce technology,” Malone says. “It saves 20 minutes per load and offers a sleek and stylish front control design.” Capacity is also a key characteristic in the premium refrigeration category, as attested by LG’s LFX32945ST mega-capacity door-in-door French door refrigerator This year is also shaping up to be a big one for GE Appliances/Mabe Canada. Meyersohn says the brand has changed its entire portfolio and given GE a whole new visual identity.

Standouts for 2014 include a new profile dishwasher that features 102 water jets positioned throughout the interior for allangle coverage. There are even jets mounted within the racks.

GE is also taking cues from consumers by building the quietest appliances it has ever produced, Meyersohn says. }

Capacity is going to be another key selling feature this year.

A good example is this 30.5 cubic foot high-capacity French three-door refrigerator from LG Canada.

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in the washer, he says. The WaterWall does what the name implies – it generates a single wall of water from a straight, high-pressure spray arm that moves laterally back and forth and produces what Doell says are “fantastic” cleaning results. The unit can be adjusted to perform differential washing in different parts of the interior – half can be washing hard-toclean items like pots while the other half is set to a gentler profile.

Insider tips

GE’s new Café French-door refrigerator features a hot water dispenser. This year, technology that serves a true purpose is going to be a key selling feature, particularly in the high-end price points.

In high-end flush products, GE is adding a new Monogram dishwasher model and expanding its flush refrigerator lineup with a new 36-inch model. In mid-range to mid-premium ranges, Meyersohn says GE is the only brand to have three layers of glass in the door instead of two, which improves user safety and also retains heat more effectively. GE also is bringing out wall ovens offering 360-degree cooking.

The visual highlight for GE this year is a new slate finish, part of a top-to-bottom redesign of the portfolio. “We’re responding to market fatigue with the stainless steel finishes,” Meyersohn says. “Besides being a whole new look, slate doesn’t show fingerprints the way the steel finishes sometimes do.” The new finish was launched in the United States a year ago, and has been expanded there by around 20%. The finish will still fit in visually with existing stainless steel units.

Samsung’s Doell says technology is going to continue to play a greater role in the coming year, “but it has to have a practical purpose. We break it down to two things: It has to do what it says it will do, and it has to make the consumer’s life easier and give them more free time. To us, marrying technology with ease of use and performance is always the best formula.”

Doell points to forthcoming products like Samsung’s WaterWall dishwasher, due for launch in the second quarter. Conventional rotary spray arms don’t reach everything

26 HGO merchandiser

Doell eagerly anticipates Samsung’s new Chef collection, which also will appear in the second quarter of 2014 (WaterWall is a part of this group). In designing the line, which he says is Samsung’s entry into the ultra-premium category, the company asked high-profile, globally renowned chefs what features and benefits they’d offer if they were designing kitchen appliances. One result is the single-door oven with two compartments, to allow for differential cooking of different foods at the same time, and a French door refrigerator that stores food items at the ideal temperature. The unit also has a pull-out pan that can be inserted directly into the oven.

“So if you have to store, say, fresh fish, the unit will store the fish at the optimum temperature,” Doell says. “When it comes time to cook, you can remove the pan with the fish, insert it directly into the oven, and then clean it in the WaterWall dishwasher when you’re done.”

Samsung has revamped the visual approach of its entire laundry lineup, he adds.

Notwithstanding the attractive margin proposition of the higher end, Mega’s Sheppard says its strategy is to make sure the retailer has a good-better-best floor assortment that showcases the innovation leaders on end caps, and leverages knowledgeable sales associates who can explain how innovations have an effect on lifestyle, a personal touch he believes is often missing from a big-box experience.

Beyond that, independents need to follow the main trends, Sheppard says. “Induction cooking, three and four doors in refrigeration, and high-efficiency top load in laundry must be predominant against high-efficiency front load. This is one of the ways to get good growth,” he says, adding that capacity should be a keynote across all categories, along with energy efficiency and water consumption.

Whirlpool’s Ellacott says, “Whenever we change a line we have to work with our partners in the trade to make sure the inventory is managed correctly, that we get the old product out and the new units on the floor, that we coordinate all the promotional and merchandising activity. It’s a lot of work, but we also get the enthusiasm and the acceleration up front. It’s very exciting.” HGO Andrew Brooks, a freelance writer based in Oakville, Ontario, is a regular contributor to Home Goods Online.

THE LEADING BRAND IN WELLNESS AND BACK SUPPORT

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obusformemattress.com HomeGoodsOnline.ca

27

ON RETAIL

YOUR BUSINESS HAS THREE KINDS OF CHALLENGES. HOW ARE YOU DOING? Here are the ‘straight goods’ on 15 of the external, internal and regulatory challenges faced by every business owner, regardless of the industry he or she is part of. Meeting them will go a long way towards building a profitable, successful organisation.

BY DONALD COOPER

E

VERY BUSINESS HAS SO

many challenges and opportunities it often gets to be overwhelming. Just listing and prioritizing them could take days and we’re bound to miss some. Solving those challenges and turning them into marketing and operational competitive advantages is a whole other matter.

First, here’s some clear insight about identifying and organizing those challenges so they become clearly identified, manageable and, therefore, fixable. Then, I’ll give you some tips on how to get started on solving the specific challenges needing the most urgent attention.

Basically, every business has just three categories of challenges: exter-

28 HGO merchandiser

nal, internal and ‘regulatory & key influencer’ challenges. That’s it. Within each of these three broad categories are several specific challenges.

Check out the three lists of challenges below and ask yourself, honestly, how are you doing in dealing with them? Then, take note of each challenge needing attention. Then, prioritize them. You can’t fix everything at once. But you can start somewhere and some when. The best time is now.

For each challenge to be addressed, specify who will be responsible for doing what and by when to fix what needs fixing. Businesses don’t die from a single shot to the head. They die slowly, but surely, from a thousand uncompleted tasks.

1

YOUR EXTERNAL MARKET-RELATED CHALLENGES:

Assuming you want to increase sales, profitably, you have two main external or market-related challenges. They are: • You must be the ‘wise choice’ for your target customer. To be that ‘wise choice’ you must deliver compelling functional, emotional and financial value – plus create an extraordinary customer experience that ‘grabs’ your target customer, clearly differentiates you from your competitors, makes you famous, and, therefore, grows your bottom line. The world doesn’t need one more mediocre ‘anything’.

• It is an absolute must to effectively communicate your value story in a crowd-

ed and cynical market place. There’s no point in being the best if you’re also the best kept secret. Here are 12 ways to communicate your value story: ´ Sales calls or sales person interaction with consumers; ´ Word-of-mouth; ´ Media advertising; ´ Promotion and special events; ´ Signage and displays; ´ Packaging; ´ Website; ´ Blog / newsletter / e-blasts; ´ Social Media; ´ Media exposure; ´ Trade shows; and, ´ Consumer shows.

2

YOUR INTERNAL ORGANIZATIONAL AND OPERATIONAL CHALLENGES:

It’s interesting that while many businesses believe most of their challenges are ‘external’ and beyond their control, you’ll see below most of every retailer’s real challenges are internal and, therefore, under your control. Here are your nine main internal challenges: • To create clear direction, decisions, communication and implementation from the top. After all, the overwhelming majority of problems on the frontline are generally symptoms of a lack of clarity, consistency, decisiveness or urgency at the top of your organisation, however big or small it is; • To deliver and communicate your value promise and customer offering consistently, effectively and profitably.

I’ve listed delivering and communicating your compelling value as external challenges above but, when you think about it, creating your value proposition, delivering it and communicating it, all originate internally. So, while they are our main external marketing and sales challenges, they start internally; • To develop new products and services make your organisation the performance, convenience, style or taste leader; • To attract and develop a top-performing team. Then, create a culture of excellence, innovation, urgency and fun that will make them want to stay; • To master expense control and cash management – that is, to understand the

Bloggers and tweeters are another group who can influence literally thousands of your target customers and do so instantly. ‘math of profitability’ and use it to make prudent and profitable decisions; • To create world-class operational and logistical efficiency in every part of the business by embracing and implementing effective systems, processes and disciplines that make you price-competitive, service competitive and profitable; • To change your business model as the market changes and as technology changes how business is done; • To develop a prudent growth strategy (vision) and a supporting implementation plan. Then, grow your people and your systems to support that growth.

For expert help in creating a clear vision for your business, check out my 31page Vision Critical Guide. It’s just $24 (plus H.S.T.) and available on my web site. This guide will help you create a clear one-page, six-point vision that will inform, focus, challenge and inspire you and everyone on your team; and, • To develop a succession plan for all key people in your organisation – including yourself – and for the business itself.

3

YOUR REGULATORY AND ‘KEY INFLUENCER’ CHALLENGES ARE:

• Legislation and regulations set by any level of government or industry regulatory body. While these challenges can be ‘a pain’, they’re generally not negotiable, so suck it up and get with the program. In fact, if you embrace the regulations and exceed their requirements, they can become a strong marketing edge for you, if positioned correctly; • Challenges stemming from regional, bi-lateral or global trade agreements between provinces and countries are also generally not ‘fixable’. The solution to these kinds of challenge usually involves some reinvention of what you do, for whom you do it or where you do it.

• The media as well as environmental, aboriginal or other special interest groups are also more than capable of influencing regulators and consumers. Challenges related to their opinions and actions can be

particularly tricky, frustrating and costly.

Your choices run from ignoring them to waging a costly public relations battle to working with them to create a productive and respectful outcome.

• Bloggers and tweeters are another group who can influence literally thousands of your target customers and do so instantly. These folks can make you ‘famous’ when you delight them and can be a nightmare when you don’t. So, the best solution here is to delight all customers and don’t screw up.

So, there you have it – three types of challenges and 15 specific challenges in all, each of which need to be addressed in every business, including yours. Nobody ever said running a business is easy.

The amazing thing is most business owners and managers spend only 10% of their time working on stuff like this.

The other 90% is spent working “IN” the business, often to avoid having to deal with this ‘challenging stuff.’

Depending on the size and complexity of your business, I suggest every retailer spend four to eight hours a week on these key challenges. This is your real job. This is management. This is setting your business up for a level of success that, so far, you’ve only dreamed of.

Create a file for each challenge you believe needs to be addressed. Start generating ideas. Get your team involved. They know stuff and they hate it when you don’t ask. Make decisions, take action, delegate tasks. Be disciplined, follow up. You’ll be amazed at the results! HGO A regular contributor to Home Goods Online, DONALD COOPER has been both a world-class manufacturer and an awardwinning retailer. Now, as a business speaker and coach he helps business owners and managers throughout the world to rethink, refocus and re-energize their business to create compelling customer value, clarity of purpose and long-term profitability. For more information, or to subscribe to his thought-provoking free business e-newsletter, go to www.donaldcooper.com.

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INDUSTRY CALENDAR May 4 to 7, 2014

July 27 to 31, 2014

MEGA GROUP AGM & CONFERENCE

LAS VEGAS MARKET

May 17 to 20, 2014

August 9 to 11, 2014

INTERNATIONAL CONTEMPORARY FURNITURE FAIR

TORONTO SUMMER FURNITURE SHOW

Hilton Bonaventure Hotel Montreal, Quebec www.megaannualconvention2014.ca

Jacob K. Javits Convention Center New York www.icff.com May 29 to June 1, 2014 ANNUAL GENERAL MEETING & CONFERENCE QUEBEC FURNITURE MANUFACTURERS ASSOCIATION

Estrimont Suites & Spa Orford, Quebec www.afmq.com June 1 to 4, 2014

SHOWTIME FABRIC FAIR

Market Square Textile Tower High Point, North Carolina www.showtime-market.com July 8 to15, 2014 ATLANTA INTERNATIONAL GIFT & HOME FURNISHINGS MARKET

AmericasMart Atlanta, Georgia www.americasmart.com

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 Natura World c/o Rev Sleep Corporation 53 Bakersfield Street Toronto, ON M3J 1Z4 T: 800.567.7933 F: 888.567.7934 www.naturaworld.com Page 7 Canadian Home Furnishings Market 101-1111 Saint-Urbain Montreal QC H2Z 1Y6 T: 514.866.3631 F: 514.871.9900 www.tchfm.com/en

30 HGO merchandiser

World Market Center Las Vegas, Nevada www.lasvegasmarket.com

Toronto www.chfaweb.ca August 12, 2014

CHFA GOLF CLASSIC

Caledon Woods Golf Club Bolton, Ontario www.chfaweb.ca August 10 to 13, 2014 TORONTO GIFT FAIR

Toronto International Centre Mississauga, Ontario www.cangift.org August 10 to 13, 2014 PRIMETIME

Gaylord Opryland Resort Nashville, Tennessee nationwideprimetime.com September 7 to 9, 2014 ABC KIDS EXPO

Las Vegas Convention Center Las Vegas www.theabcshow.com

Page 11 Magniflex 1000 5th St., Suite 220 Miami Beach, FL 33139 T: 905.481.0940 www.magniflex.com Pages 18-19 Serta Canada/Star Bedding Products 40 Graniteridge Road, Unit #2 Concord, ON L4K 5M8 T: 800.663.8540 www.sertacanada.com Page 23 Protect-A-Bed 1500 S. Wolf Road Wheeling, IL 60090 T: 519.822.4022 www.protectabed.com Page 27 Obusforme c/o Rev Sleep Corporation 53 Bakersfield Street Toronto, ON M3J 1Z4 T: 800.567.7933 F: 888.567.7934 www.naturaworld.com

TECHNOLOGY

EDITOR’S NOTE: This article was originally published in the November/December 2013 edition of RetailerNOW magazine, the official organ of the North American Home Furnishings Association (NAHFA).

Four devices, one web site: Be “responsive” and win Convert more website leads into sales with an adaptive presence

BY REGINA DINNING

W

HEN I LOOK AT RETAILER WEB

sites today, I’m finding a growing roster of great pages. Searchable inventory, current sales promotions, embedded video, clear contact information, directions, maps and other features are making web sites into impactful gateways to sales.

What retailers don’t control, however, is how shoppers view their web sites.

Consider these quick facts illustrating the changing reality of consumer connectivity today: • In June 2013, one in three hits on local retailer web sites came from mobile devices (comScore) • Smartphones and tablets doubled the amount of time people spent online daily between 2010 and 2013 (Gartner); • Today people use smartphones more often than PCs to get online (Cisco);

• 31% of people who own smartphones say it’s the only way they access the internet (Karen McGrane, BA+S); and, • During Facebook’s latest earnings call, the firm reported that 40% of Americans log into Facebook every day; 79% of those do so from a smartphone.

MULTI-SCREEN EXPERIENCES

The fact is, your best customers move between four or more devices every day. “You don’t get to decide which platform or device your customers use to access your content: they do,” says Karen McGrane, author of Content Strategy for Mobile.

It’s time to get real and fix your online presence to match where and how your ideal shoppers access information.

Keep in mind, mobile doesn’t just mean smartphones, and it doesn’t necessarily mean on the move. It encompasses a } HomeGoodsOnline.ca

31

proliferation of devices, platforms and screen sizes – from the tiniest “dumb” phones to smartphones, iPods and tablets, and from notebook computers to laptops that provide a near-PC experience. Any device that can easily be moved is mobile.

Try this exercise. Pull up your web site on a standard old PC. Then grab the window and make it progressively smaller (less wide). What happens as the window gets narrower? Your site may look great in widescreen, but on a tablet it may break. On a mobile phone, it may be impossible to navigate or read with cumbersome pinching and zooming. This is what your prospects are seeing across their range of devices, and you may have already lost them due to sheer frustration.

These days, the odds are good that your web site provider has a separate mobile web site ready for your domain. On the one hand, that will provide better engagement from mobile devices. On the other hand, you have to maintain two separate web sites and work to reconcile the two.

As the user switches from one device to another, the web site should automatically switch to accommodate for resolution, image size and scripting abilities.

CONSIDER RESPONSIVE DESIGN

Retailers must retool their web sites to deliver the right product information and a clean, professional shopping experience to all visitors regardless of what platforms they choose.

How can you be sure your content will work everywhere, all the time? Start thinking about having one universal structure that would be designed from the start to cover the full range of cases.

It’s time to embrace “adaptive content” and “responsive web design.” Responsive web design is the approach that suggests design and development should respond to user behavior as well as screen size, platform and orientation.

This consists of using a mix of flexible grids and layouts, images, and an intelligent use of code. As the user switches from one device to another, the web site should automatically switch to accommodate for resolution, image size and scripting abilities. Responsive web design is the sweetheart of web designers right now, and with good reason. It allows businesses to be cross-platform without sacrificing content or redesigning from the ground up every time a new device comes out.

TRANSITIONING YOUR WEB SITE

If responsive web design makes sense for your stores, take a stair-stepped approach to this opportunity.

1

Start with a plan Moving to responsive design requires an investment of time to think through your web strategy. Envision what you want the user’s experience to be on each platform. New technology makes it possible to put both text and images on the

32 HGO merchandiser

same site and render them correctly across all devices.

If you don’t have a good mobile presence today, try starting with DudaMobile (www.dudamobile.com) to establish a mobile web site, and then work into the responsive site, which will take time. Setting up a DudaMobile site with very basic functionality takes about an hour.

2

Work with a specialist You’ll want to work with a web design firm that can look at your current site and see what’s salvageable for a new responsive site. In some cases you may need to start with a fresh site from top to bottom.

Your association may suggest a specific web site vendor who offers new, responsive templates to update your site. You may need to broaden your vendor search to agencies and site developers who are more up-to-date in this area.

3

Think through functionality Think hard about what you want mobile users to be able to do on your site. Ask your customers what they want/expect to be able to do on your web site from a smaller device. Do your homework.

4

Be patient A good web site vendor will require three to four months to create your new site and achieve responsive bliss. Costs will vary depending upon the scope of work and your goals for the site.

When your site is working its way through coding, it may be time to reconsider your online advertising approach to maximize the responsive opportunity. Search, display and mobile ads working together across devices lead to more qualified clicks and closed sales if the user experience is solid across devices.

Finally, be sure to install Google’s new universal analytics code on your web site. This will give you maximum flexibility to apply unique advertising tracking codes and other elements across your site without having to change the tags applied to individual web pages. With your new web site up and running and this code applied, you’ll be able to easily track every click back to the device it came from, and establish a baseline return on investment number to your web site redesign costs and online advertising program. HGO REGINA DINNING is a business development director for home

goods at Netsertive, a North Carolina-based digital marketing consultancy. She is a seasoned professional with more than 15 years’ experience in marketing and advertising, including several years specifically in home furnishings and can be reached at rdinning@netsertive.com.

MARKET REPORT

TCHFM: ON THE MOVE TO 2015 This country’s only national industry event is moving to June next year, building on a 2014 show that had plenty to offer attending retail buyers. There really was no shortage of innovation in the halls of the International Centre.

BY MICHAEL J. KNELL

P

ERHAPS THE SINGLE MOST IMPORTANT

thing to come out of the 2014 edition of the Canadian Home Furnishings Market (TCHFM) came a few weeks after it ended its four-day run at Toronto’s International Centre when the Quebec Furniture Manufacturers Association announced the next one will be held from June 4 to 7, 2015.

For much of its 43 years, both attending retail buyers and senior staff members for exhibiting furniture resources have complained of shivering through Toronto’s usually damp, bleak and cold winters. Now, Canada’s only national industry event will be held in what will be, hopefully, the warmer climes of late spring.

“The date change is an important first step in an overall plan to refine and reposition TCHFM for the future,” Pierre Richard, president of both TCHFM and its owner/ operator – the Quebec Furniture Manufacturers Association, said when announcing the date change in early March. “It is important to announce the new dates now so that the industry has ample time to plan to participate.”

Richard, who was named to lead this country’s largest industry association in October 2013 (making the 2014 TCHFM the first he had ever attended), said the decision followed extensive consultations with stakeholders, including a telephone survey of some 175 furniture retailers across the country.

“The first thing I learned walking the show is that everyone wants the show to continue,” he said. “At the same time, I was told that if we didn’t make some meaningful changes, it would lead to the death of the market – and that’s something nobody seems to want.”

Even though there has been a furniture market in Toronto every January since 1969, Richard pointed out the most com-

This sofa is from the Vogue collection, the first-ever foray into the high-end for upholstery specialist Superstyle Furniture. This set features deep downfeather blend seats, backs and toss cushions.

Its larger scale enhances the user’s comfort.

Roost is the new swivel chair from Stylus Made-to-Order Sofas. It features cushiony pillows and is seen here in white leather.

mon complaint continued to be the weather. “It’s a real obstacle to travel,” he said.

“Summertime,” he continued, “offers better conditions for travel to Toronto along with the opportunity to experience the city to a fuller extent. Feedback from the industry is clear on this point, Toronto is more accessible in June and our research confirms that we can expect the industry to turn up in larger numbers and across a broader spectrum, including from Western Canada, the Atlantic Provinces and the U.S.” Richard was also careful to stress moving the market from January to June was just the first in a series of coordinated initiatives to enhance TCHFM’s appeal to the industry. } HomeGoodsOnline.ca

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The mid-century inspired Draper sectional from G. Romano features hand-tufted seats, clean lines and a reversible chaise seat.

A TCHFM FIRST

For the first time in its history, the organisers of TCHFM held a ‘Town Hall’ and invited stakeholders from across the industry to air their views about the future and the market. The turn-out was much higher than expected with perhaps 120 or so people attending.

Everyone who agreed on one point: the market is vital to the health of Canada’s furniture industry.

Attendees learned TCHFM is the seventh largest trade event currently held in Canada, covering some 225,000 square feet of temporary exhibit space plus another 140,000 square feet or so of permanent showroom space in the SOFA annex of the International Centre. Furthermore, some 46 of its 201 exhibitors were showing for the first time. There were also four showrooms outside of the International Centre listed as ‘official’ TCHFM exhibitors.

It’s no secret the market has been losing ground in recent years. In terms of exhibitors, the 2014 market was the smallest in recent history with 201 individual companies participating – compared to 235 in 2013 and a far cry from the market’s peak in 2008 with 337 exhibitors.

Retail buyer attendance was off about 8% from 2013 while overall attendance – which includes designers, store employees, sales reps and others – was off about 10%.

However, it should also be noted estimates suggest 65% of all store fronts across Canada attend TCHFM annually – an audience penetration that is probably much higher than comparable furniture industry events across North America even though the number of furniture and mattress storefronts has also shrunk considerably since the onset of the recession in 2008.

“One of the things people said at the Town Hall was that we had to make TCHFM a ‘happening’ and that’s a lot easier to do in the summer than it is in the winter,” Richard said, saying afterwards that process is beginning with the announced change in dates.

A REVIEW OF 2014 – THERE WAS LOTS TO SEE

It’s worthwhile mentioning that while participating exhibitors didn’t say this year’s market was the best ever held, most indicated they were satisfied with the overall results received

34 HGO merchandiser

CDI International introduced this teak wood and metal collection this market. Teak has been used as a boat building material for over a century and is not only strong, but is resistant to rot, fungi and mildew.

– while confirming it’s their intention to support it next year.

The vast majority of the exhibitors came prepared to inspire attending retail buyers with a wide variety a new collections across some 40 or so product categories, covering almost every department on the store floor.

Among these new ideas was the launch of Brentwood Classics first-ever leather upholstery collection created by Giuliano Ianniciello, a well-known Canadian furniture designer who joined the company last summer. “The reaction has been better than expected,” reported Diana Sisto, fashion director for the family owned custom upholstery house, adding she expects quite of number of her existing retail partners to floor at least one or two SKUs in the coming weeks.

Also on the upholstery front, the Vancouver-based Van Gogh Designs not only renovated and expanded their permanent showroom in the International Centre’s SOFA annex but launched the Glen & Jamie Designer Collection, a new upholstery group from Glen Peloso and Jamie Alexander, a

This year’s market kicked off with the annual Canadian Home Furnishings Awards gala. Seen here is Laine Reynolds (left), chairman of the Canadian Home Furnishings Alliance with Bob Kay, founder and chairman of Springwall Sleep Products – recipient of the 2014 Lifetime Achievement Award; and, Allison Coville, senior vice president of specialty brands and home for the Hudson’s Bay Company, the Retailer of the Year.

Meubles Belisle gave sophisticated elegance to a room with this sectional sofa and loveseat that are available in a wide choice of fabrics.

Trica’s new Avenue bed features a headboard and legs made of solid oak. The wood is offered in six finishes while its steel components are available in 19 colours.

An upholstered headboard is also available.

pair of Toronto-based interior designers who also happen to have created the new display space.

Meanwhile, Superstyle Furniture made its first-ever foray into the high-end with Vogue Designs – a four group collection featuring what Laine Reynolds, vice president of sales, described as “luxurious” deep, down-and-feather blended seats, back and toss cushions, with a suggested opening price point of $1,400 for a three-seat sofa – substantially higher than its core offering.

While Vogue will be offered in any of the family-owned producer’s existing fabric collection, they have developed eight co-ordinated ensembles especially for it. The company has also assembled a collection of accent pieces and leather chairs to complement the group.

Not to be outdone, case goods producers also took a firm step forward this market. For example, Huppé introduced its new Union collection; a sharp contemporary bedroom group constructed in selected birch veneers and features in Anthracite, a very of-the-moment finish with the option of 15 other hues and tones.

Casual dining powerhouse Canadel explored a new design aesthetic with the Canadian debut of its Loft collection. Inspired by old factory spaces that have been converted to residential use, the collection marries solid wood and metal accents to give an industrial accent to a contemporary silhouette.

TCHFM has always been a powerful platform for this country’s mattress makers and 2014 was no exception with several taking out new ground – mainly with the introduce of new and various approaches to hybrid sleep surfaces – in a category that continues to generate better-than-average margins for the independent furniture, mattress and appliance retailer.

Kicking things off was Sealy Canada, whose latest models wearing the Posturepedic Proback label featured a half-foam, half-spring design with a solid seating edge with a seamless transition that increases the sleep space while adding room for the user to stretch out.

Safari, from Quebec-based up-and-comer Zedbed, is yet another hybrid, this one using air plus foam to create the maximum amount of ventilation possible, eliminating hot air trapped between the foam layers to create a self-cooling sleep environment.

Rev Sleep, the full-line Canadian mattress maker, added the BodyForme collection to its ObusForme label. The key to this new collection is its ability to support the user’s spine in a neutral position for added comfort. It features three distinct models: one for the user who sleeps on his or her side; another for back sleeper; while the third supports all-sided sleepers.

First time exhibitor Vogue Bedding, based in Surrey, British Columbia, of Plasspring, an architecturally designed thermoplastic spring that was developed and designed in England. Sales manager Darren Law says the Plasspring is five times stronger than conventional steel springs and more environmentally friendly.

ORDERS WERE WRITTEN

Writing orders remains a strong part of an industry event such as TCHFM and 2014 didn’t appear to be an exception as the majority of those asked, said attending retail buyers placed ordered, particularly for new product. However, most leading executives also cautioned they still expect 2014 to produce modest growth, at best, despite the favourable activity experienced during the market.

“People have been in our space pretty consistently and we’re seeing a more and more interest in lifestyle and contemporary,” said Jim Sumpter, regional vice president of sales for upholstery specialist England, the only U.S. manufacturer participating in this year’s Toronto market. “And I’m planning on coming back next year.”

“We’re absolutely delighted with the response we’re had,” said Brad Geddes, president of added-value resource Zucora, a first-time TCHFM exhibitor. “We’re already talking to show management about getting more space next year.”

“For us, this has been a very good show,” said David Gélinas, co-owner of speciality mattress maker Zedbed. “Most of our current customers came through and we saw a number of new potential partners.”

Derrik Middleton, national sales manager for Woodworks Furniture, echoed those observations, adding retailers are speeding up their drive home. “Made-in-Canada is really coming back,” he said. HGO MICHAEL J. KNELL is the publisher and editor of Home Goods

Online.

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