HGO Merchandiser Summer 2015 by MediaEdge

Michael Knell’s

HGO merchandiser HomeGoodsOnline.ca

SUMMER 2015

Volume Four, Issue 4

CANADIAN FURNITURE SHOW REPORT & REVIEW

Donald Cooper on the power of disruption

monogram

GETS A HIGH-TECH MODERN HOME

Mega Group at 50 The fashion of finishes and hardware

CONTENTS

24 16

EDITOR’S LETTER USE IT OR LOSE IT

At this point in time, the future of the Canadian Furniture Show is very much up in the air. While the organisers remain committed to their three-year plan to revitalise and reinvigorate this country’s only national furniture industry event, most don’t realise that it already attracts well over 60% of our existing community of independent furniture, mattress and major appliance retailers. Business models for the major manufacturers have changed, and markets aren’t always needed for success. In like of these changes, we have to ‘use it or lose it’. Michael Knell explains.

FASHION & STYLE THE “OLD” AND THE BEAUTIFUL: THE FASHION OF CASE GOODS

At the recent Canadian Furniture Show, we couldn’t help but notice the halls were full of modern, chic, vibrant goods. While upholstery has always had more leeway in terms of creativity, case goods — a little more restricted by wood availability — are still meeting consumer’s growing needs for bold, on-trend pieces that make a statement. Ashley Newport researched our first-ever report on the fashion of finishes and hardware.

16 8 28

PROFILE MEGA AT 50

Over the past half-century, the art and science of retailing has become vastly more complicated. After all, Mega Group’s five founding members didn’t even have fax machines, let alone a Twitter account. For this country’s sole remaining furniture, mattress and major appliance co-operative, keeping independent, family-owned retailers in the game is still its primary mission. Michael Knell reports on his interview with Mega president Benoit Simard on the future of the group and independent retailers in general.

APPLIANCES CHEZ UNIQUE

GE’s luxury Monogram brand gets its own dream home in Toronto, a modern and high-tech showroom designed to help retailers give a little romance to the

4 HGO merchandiser

marketing and selling of high-end appliances. Andrew Brooks took the tours and prepared this report.

MARKET REVIEW REVAMPED CANADIAN FURNITURE SHOW MAKES WAVES

The organisers of the CFS decided to make its 43rd annual edition unique. They abandoned its traditional January dates, revitalised its look and introduced a controversial Consumer Day complete with celebrity speakers. They also highlighted modern, glamorous merchandise, adding a little glitz to what was once a relatively traditional, trade-only affair. Ashley Newport reports.

MARKET REVIEW CFS GETS MIXED REVIEWS FROM EXHIBITORS

In our second report on the Canadian Furniture Show, Michael Knell reports it ended to decidedly mixed reviews although almost every exhibitor surveyed says they not only booked reasonable orders from attending retail buyers but promised they’ll return in 2016.

ON RETAIL THE POWER OF DISRUPTION…THE PAIN AND THE POSSIBILITIES

Every industry, including ours, is being transformed by disruptive technologies, by new and innovative business models, by global economics and, sometimes, by fundamental changes in society’s values. For the retailer, the choice is simple – either become the disruptor in your market, or eventually be put out of business by those who are. Donald Cooper explains

INDUSTRY CALENDAR & ADVERTISERS’ INDEX ON OUR COVER: Seen here is a view inside the new GE Monogram Design Centre opened by Mabe Canada earlier this year. Located in one of the more fashion design and retail districts of downtown Toronto, this facility was designed to show retailers how to add a little romance to the marketing and selling of high-end appliances.

AD Our founders always dreamed of something bigger and better. Stearns & Foster always dreamed of something bigger and better. Few products today can claim over 165 years of history. Since 1846, Stearns & Foster has been offering discerning people the finest craftsmanship made from the very best materials available. In an increasingly disposable world, Stearns & Foster connects you to something iconic and timeless, and is made the way things should be.

HomeGoodsOnline.ca

EDITOR’S LETTER

Use it or lose it

MICHAEL J. KNELL

I’m afraid that 2017 will see the last Canadian Furniture Show. If it fails, it won’t be the fault of the Quebec Furniture Manufacturers Association. It will have failed because the industry didn’t – or perhaps more accurately, won’t – support it.

AST YEAR , THE QFMA COMMITTED ITSELF TO A THREE-YEAR

rebuilding and revitalisation effort to strengthen CFS and bring it back to prominence. They made a really good start with the 2015 market. It looked good. It was well lit. Traffic patterns were interesting and allowed attendees to get a good impression of the product on display. The complaint heard most often from exhibitors: There aren’t enough retailers attending. The complaint heard most often from non-attending retailers: There’s no one to see. Both groups are wrong. Everyone agrees markets like CFS are not for the major players. That leaves the independents. While no one has an accurate count of how many there are, HGO reckons there are about 2,500 or so companies operating approximately 3,000 storefronts across the country. My best estimate is 60% to 65% come to market in any given year. That’s pretty good market penetration. Many of the heavy hitters on the manufacturing side no longer show at CFS. Many of the 2,500 independents cite this as their reason for not attending. Well, the simple truth is this isn’t going to change. The priorities of big manufacturers have changed. Their business models say they don’t need any furniture market to be successful. What’s more, they don’t need floor space on every independent’s floor any more. Theory dictates that more exhibitors will equal more retail buyers, and viseversa. So, to pile on another cliché, if the industry wants a successful, vibrant national event, resources and retailers alike have one of two choices. They can either be part of the problem or part of the solution. I’m hoping for the latter.

The complaint heard most often from exhibitors: There aren’t enough retailers attending. The complaint heard most often from non-attending retailers: There’s no one to see. Both groups are wrong.

HGO merchandiser SUMMER 2015 • VOLUME FOUR, ISSUE 4 ISSN 2291-4765

www.HomeGoodsOnline.ca PUBLISHER & EDITOR Michael J. Knell mknell@homegoodsonline.ca MARKETING DIRECTOR Corrie-Ann Knell marketing@homegoodsonline.ca MANAGING EDITOR Anthony E. Bengel tony@homegoodsonline.ca CONTRIBUTORS Andrew Brooks Donald Cooper 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

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© 2015 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

6 HGO merchandiser

BIGGER. BETTER. BEYOND EXPECTATIONS. • OVER 2,600 CROSS-CATEGORY BRANDS • THE WEST’S ONLY MAJOR HOME FURNISHINGS MARKET • THE NATIONAL BEDDING MARKET • NEWLY LAUNCHED CASUAL/OUTDOOR FLOORS • WORLD-CLASS AMENITIES & AFFORDABLE TRAVEL

JANUARY 24-28, 2016

JANUARY 24-27, 2016

LAS VEGAS MARKET

THE PAVILIONS AT LAS VEGAS MARKET

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LasVegasMarket.com 7 HomeGoodsOnline.ca

FASHION+STYLE

THE “OLD” AND THE BEAU

the fashion of case

Built in rustic pine, the Stockton bedroom collection from DeFehr Furniture features an on-trend slate finish and antique black hardware. All bed and case pieces in the group feature mortice and tenon joinery in a rustic, distressed, weathered design.

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UTIFUL:

e goods

T’S INTERESTING TO FOLLOW FASHION AND STYLE

trends in furniture as consumers’ design savvy has grown exponentially with the proliferation of HGTV decorating shows and design-oriented web sites such as Pinterest and Houzz. While people were once content to purchase matchy-matchy bedroom and dining sets, they’re now looking for more unique, eye-catching pieces that marry the old and new. It’s not uncommon these days for a showroom to carry vintage reclaimed-wood end tables, contemporary mirror nightstands and traditional dark-wood armoires with elegant rose gold-coloured handles. It’s also not uncommon to see all three pieces in one home. While case goods are a little harder to style dramatically, manufacturers are noticing and serving the consumer’s need for more compact, functional and stylish pieces.

HARDWARE AND FINISHES

In terms of style and colour, grays are holding on while warm metals are gaining traction, and vintage, rustic looks are becoming more popular. “I think we’re still in a back-to-basics time,” says Joël Dupras, design and art director at Huppé, the contemporary manufacturer based in Victoriaville, Quebec. “All the raw materials and finishes are very popular. Raw steel, brushed natural oak and natural walnut are big trends. The gray finishes are still very popular, and the mix of three-to-four materials (steel, lacquer, wood, fabric) is too.” Other manufacturers such as Canadel, the casual dining powerhouse based on the other side of the St. Lawrence in Louisville, Quebec, are seeing more creativity. “What we’re seeing in dining room is no hardware — there’s carving or inlaying in drawers,” says Denis Charest, the producer’s Canadian sales manager. “There’s a real push for a more industrial and contemporary look with sleek, clean pieces. We’re seeing metal or brush nickel inserts, and black metal on hardware and visible hinges. In finishes, there’s a push towards a driftwood-type of look. Gray and taupe are very big right now. People want gray to show in the grains.” } HomeGoodsOnline.ca

It’s no secret that for the past few years, people have started gravitating to more natural looks. The trend towards reclaimed and vintage-looking woods is not only driven by the public’s thirst for more earthy and sustainable pieces, but also by the ease with which Asian importers can produce natural woods. Even when people are buying Canadian-made products, the look and feel of Asian imports — very visible on many showroom floors — can influence tastes. “A lot of business is driven by Asian imports, and that kind of Restoration Hardware finish is easiest for them,” Charest says. “They only do regular lacquer finishes and they’re not as resistant. They can’t do big surfaces or hardwood due to travel time and temperature change during transport, so they’re pushing a lot in the solid-wood direction.” As for handles, BG Furniture, the Walkerton, Ontariobased case goods maker, also is noticing that pewter handles are trending. “In handles, we’re seeing brushed pewter that isn’t shiny and is rough-hewn,” says Terryl Nielson, BG’s sales co-ordinator. “Basically, there’s a lot of brushed pewter and apothecary handles. I think it’s more of a relaxed trend for the summer.” Beyond seasonal tastes, Nielson says the look of handles ultimately is dictated by the finishes on the piece. “We have a line with an iron handle, so the maple and fawn finishes go with it and give it contrast,” she says. While wood might dictate hardware, nature dictates wood. Nielson says that what’s growing outside will determine what looks will be available — which, in today’s environmentally aware market, isn’t a bad thing. “Our plant is close to Tobermory, Ontario, and a lot of what’s moving in our company is connected to nature, as we can’t mask or alter the grain of the wood, and it’s connected to where it comes from,” she says. But pieces don’t have to rely on wood alone to make an impact. Like Huppe’s Dupras, Diana Sisto, creative director for Brentwood Classics, the Vaughan, Ontario-based stationary upholstery house, is seeing eclectic mixed materials in case goods. “I’m seeing stuff with mixed mediums, such as woods with glass and chrome,” she says. “In upholstery, we’re seeing chairs or sofas with exposed wood arms, creating more of an outdoor look indoors. People are also using upholstery as case goods, like using oversize ottomans as coffee tables. We’re seeing big colours or textures on smaller pieces.” On the hardware side, Sisto says she’s seeing slightly less pewter. “There was a time where everyone wanted pewter, but

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I’m seeing more brass, gold and rose-gold on modern pieces. Gold looks good on blues and navies, and blue is very big right now.”

TRADITIONAL OR CONTEMPORARY?

While solid-wood pieces might seem limited to a traditional aesthetic because of the classic look and feel of the material, manufacturers can play around with colours, details and sizes to make pieces more modern and unique — even while staying a little safe. “Contemporary is taking more presence in the market but in a different variation,” says Huppe’s Dupras. “We’re seeing industrial, reclaimed-wood modern furniture, midcentury modern and a mix of all these styles. But traditional furniture certainly is still the biggest market in North America.” That said, other manufacturers cite a strong push towards trendier pieces as more people move into smaller, sleeker homes. “There’s a lot of demand for contemporary and condosized products,” says Don Loewen, merchandising manager for Winnipeg-based DeFehr Furniture. “The product is more vertical than horizontal, but has functionality and storage. }

Tomato Red is not a colour often seen on complete dining room collections but casual dining powerhouse Canadel believes consumers will welcome a splash of vibrant colour on an accent piece such as this buffet, which is part of its new transitional/ contemporary Gourmet collection. The Atelier collection from BG Furniture is a mid-century design inspired by Scandinavian design. The company believes its style and function can turn a living space into a work of art. The collection is being offered in three solid woods – maple, walnut and white oak.

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“ Designers are good indicators of what the trends are. As purchasers, people are more informed and have an idea as to what style they want, and that’s great for manufacturers.”

People don’t have as much room, so they want the benefits without the space consumption. Canadians don’t tend to go for as big-and-bold pieces as some U.S. shoppers. We don’t need to design large, over-the-top furniture for Canada. We tend to like average-size pieces rather than five- or six-foot headboards.” Others believe there’s a distinct shift in tastes. “We would say there’s a transition happening,” says BG’s Nielson. “It’s retro-modern and it adds to townhomes and condos. The traditional look might still be big in an established area like the Beaches or Annex districts in Toronto where people stick to traditional décor in traditional spaces. People in their 20s and 30s are not looking for traditional pieces.” Like BG and DeFehr, Canadel says tastes are getting more contemporary. “You can see contemporary is really starting to evolve now” Charest says. “Baby boomers are moving back to the city and condos are very contemporary.” As does DeFehr’s Loewen, Charest says people are looking for stylish goods that marry sleek looks with functionality. “People are looking for sleeker and concealed extensions in, for example, dining room furniture.”

DO UPHOLSTERY TRENDS INFLUENCE CASE GOODS?

In a word: maybe. It depends on who you talk to. “We look at colours and style trends in upholstery, but I don’t think they affect our product line much,” says Loewen. “We look at the colours of the woods that are out there. Shoppers can add accent pieces and cushions; we try to design

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Seen here are the new blue and black Inverse occasional tables, part of the Living Collection from contemporary case goods specialist Huppé.

furniture around the look and functionality of the wood.” That said, Loewen agrees case goods manufacturers often pick up on the functional evolutions in upholstered goods. “The style of upholstery is something we do look at,” he says. “We see contemporary and functional styling, like moveable headrests and embedded sound systems, and we try to accommodate that where we can, such as by putting an iPod dock in a piece. We are influenced by certain designs.” Others, like Huppe’s Dupras, aren’t sure how much of a styling relationship exists between upholstery and case goods, while believing any relationship is mutually beneficial. “I’m not sure there’s a big influence,” he says. “Maybe the style of legs used in a sofa or the finishes on these legs can influence the legs and the finishes we could use in case goods. I think case goods influence upholstery in the same way.” BG’s Nielson says the two are connected, especially since disparate pieces need to complement each other in a home. “It’s the finishes and hues and tones that depend on the fabric trends,” she says. “Geometrics and nature-inspired looks may lead to furniture with muted browns. When you have seasonal trends in colours, it sometimes influences the finish of the wood.”

DO FASHION TRENDS PLAY A ROLE?

“I’m seeing case goods influences on the runway in jewelry,” says Brentwood’s Sisto. “Case goods are not like upholstery and you can use hard metals. Jewelry uses the same kinds of materials. People used to only want silver, and now you see a lot of gold and rose gold in watches.”

Outline, a home office group that’s part of Huppe’s Working Collection, is made with smoke coloured birch and features a glass table top.

If you follow apparel fashion, it’s easy to spot the connection between on-trend clothing and upholstery fabrics. If people are wearing bold, bright colours, they might want that reflected in their homes. As ultra-feminine pink, bejeweled and floral patterns have made their way into clothing, upholstery manufacturers have taken notice. Now, it’s not uncommon to walk into Home Outfitters or Urban Barn and find floral, pink or crystal button-tufted accent chairs. While it’s harder to match a nightstand to a summer outfit, case goods can reflect evolving tastes in colours and metals, but it’s hard to draw direct parallels between what’s trending in headboards and clothing. “For sure, apparel fashion influences the furniture industry,” says Huppe’s Dupras. “I would say that fabric colours and types are sometimes inspired by fashion trends. Even lacquer colours are influenced as well. But I would not say there’s always an influence on case goods. The way we present our furniture, wall colours and accessories are sometimes influenced by fashion.” Others notice a more direct connection. “When (fashion) and accessories start popping up in bright blue, red, turquoise and yellow, (this can be reflected) in the furniture industry,” says Canadel’s Charest. “People want things to match, so if they get bolder in upholstery, we’ll get bolder in case goods. We see a huge opportunity here because most of what we do is custom, and imports can’t do that. They offer one finish, one fabric, one price.” While it’s important to stay abreast of trends and respond accordingly, where do case goods manufacturers look to find the next big thing?

“We work with our finishing company, because they’re involved in every part of the industry,” says Charest. “Each year they come out with colour trends and see what’s happening in fashion. We have a seminar with them. Trends in finishes and colours can be related to clothing and accessories, but those trends might only last for a year or two. We’re more permanent than a dress or sweater. If you do furniture or walls in red, it’s harder to accessorize.” Even though neutrals are still king, Canadel has played with funkier looks. “We came up with a nice red colour for some of our case goods,” Charest says. “We have a kitchen island in red with a stainless steel butchers block, and it sold huge at High Point. A 12-piece bedroom set won’t be successful in red, but an accent will be. We’re also seeing a lot of chairs in red with black, gray or brown tables. We don’t sell a lot of red tables, but people are bolder and livelier and this is very good for us.” Others observe what’s trending at big shows and among the public. “Our people travel and pick up on trends, especially at shows like Milan,” says BG’s Nielson. “Designers are good indicators of what the trends are. As purchasers, people are more informed and have an idea as to what style they want, and that’s great for manufacturers.” HGO A regular 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. HomeGoodsOnline.ca

YEARS MEGA, A GROUP FOR INDEPENDENT HOME FURNISHINGS RETAILERS 1994

2000

1992 Merger of V.I.P. & B.V.

Development of Concept Décor

1987

Acquisition of The Transwest Electronics Buying Group

1981 B.V. celebrates 20 years

1966 Opening of Saskatoon Office

Renaming of V.I.P. to Mega Group

Creation of Multi Meubles & Countrywide

2002 Creation of Sleep Experience

2006

Acquisition of BrandSource Canada

YEARS

HONOURING OUR PAST, SHAPING OUR FUTURE

14 HGO merchandiser

2012 Rebranding stores to BrandSource

2013

Introduction of Mega Group Solutions

2015 Mega Group celebrates 50 years

1965 1961

Constitution of

B.V. foundation

OF MAKING INDEPENDENT RETAILERS STRONGER

PAST. PRESENT. FUTURE. TAP INTO A WEALTH OF EXPERTISE; • Inventory financing • Finance, e-accounting • Store design • Web, e-commerce • Merchandising • Sales training, e-learning • Advertising, e-marketing • Complete retail solutions (BrandSource Canada, Sleep Experience)

MEGA, a group for groups, adapting our offer and services to provide buying groups with top of the line services for their members. MEGA Group, shaping our future by investing in cutting edge e-marketing and e-commerce as well as improving our operations, tools and programs.

STAY AHEAD OF THE COMPETITION,

JOIN MEGA GROUP TODAY. HomeGoodsOnline.ca

Mega Group also provides services for retailers outside the BrandSource Canada network, such as Meubles et Nous, which opened this store in Saint-Georges de Beauce, Quebec, in late 2013. Store owner Michel Tardif is a member of the group’s board of directors.

MEGA AT 50 Over the past half-century, the art and science of retailing has become vastly more complicated. After all, Mega Group’s five founding members didn’t even have fax machines, let alone a Twitter account. For this country’s sole remaining furniture, mattress and major appliance co-operative, keeping independent, family-owned retailers in the game is still its primary mission. BY MICHAEL J. KNELL

16 HGO merchandiser

NDEPENDENT RETAILERS ALWAYS HAVE

worried about the future. They have been acutely aware of the merchandising and pricing powers of the national chains. Not long after the 1965 Toronto Furniture Market, five store owners from Western Canada came together with the goal of working together to create something that would help independents become more competitive and professional in a changing retail marketplace. Four were based in Saskatchewan: Henry Gueldner of Weyburn Furniture in Weyburn; Bev Hadley of Nu Trend Furniture in Prince Albert; Elmer Miller of Miller Brothers in Swift Current; and Nick Senger of Reynold’s Furniture in Outlook. The fifth member was Jack Kullberg of Kullberg’s Furniture in Brandon, Manitoba. Together they created Volume Independent

Purchasers’ Stores (which became commonly known as V.I.P. Stores). They determined the group must be a completely democratic, nonprofit organisation with all the benefits passed on to the participating members. For the time, it was a new, almost radical idea. Under Hadley’s leadership as the fledging group’s first president, they also decided membership would be based on a set of principles: The best retailer in each town or city would be invited to join. Also, the retailer must be ethical, he or she must have a good credit rating, and must do a reasonable volume of business. Furthermore, each member, regardless of size, would have one vote – the organisation was to be a true co-operative. A half-century later, Mega Group has 674 members across the country selling furniture, mattresses, major appliances, consumer elec-

PROFILE

tronics and floor coverings. Their combined retail volume is $1.8 billion annually. The entire operation is owned by 189 shareholders, each an independent retailer in his or her own right. Most industry insiders know Mega Group was formed when V.I.P. merged with Les Magasins d’Ameublement Bonne Valeur in 2000. B.V. was V.I.P.’s counterpart serving independent retailers in Quebec. The two joined to create a national presence and generate greater synergies for their members. What’s not well known is that B.V. was founded 1961. Mega Group has designated 2015 as its 50th anniversary year, and its senior leadership believes the organisation has a bright future.

Major accomplishments

Benoit Simard was named Mega Group’s president and chief executive officer in 2008. He’s been involved with buying groups for longer than that. He was a member of B.V.’s senior management team at the time of merger. In his view, Mega has accomplished much over its history. Over the past decade, he believes the group’s most notable achievement has been the rollout of BrandSource Canada, which with 108 members (who are literally owner/operators) and 139 locations has become one of the largest chains of furniture, mattress and major appliance retailers in the country. “These 108 retailers joined forces to share multiple programs with major supplier brands in the appliance, bedding and furniture categories,” Simard says. “These programs form the merchandising base of our web catalogue, which provides essential support to our e-marketing and e-commerce initiatives.” Over the past decade or so, Mega has branched out to provide a wide range of services to other groups of retailers. Among the

better known are End of the Roll, a group of floor covering retailers; the Dufresne Retail Solutions Group (dRSG), a fee-for-service furniture, mattress and appliance buying group owned by The Dufresne Group, the Winnipegbased retail organisation; and Power Audio Visual Group, which serves a wide array of independent consumer electronics retailers. “I am extremely proud Mega has partnered, at different levels, with other groups of retailers,” Simard says. “Our work with our partner groups follows the same co-operative approach that has been successful with our own members. Our partners’ members can benefit from our first-class central billing and credit service.” Other benefits have been gained through creating greater economies of scale in operating costs and by generating greater volume in joint buys across their main product categories. }

Earlier this year, BrandSource Canada added its newest member, Ameublement BrandSource Paquin in Grand-Mère, Quebec. Seen here are the stores five owners: Stéphane Roberge, Michel Champagne, Marc Bergeron, Johann Tiffault, and Martin Clermont.

Left: Benoit Simard has been president and chief executive officer of Mega Group for the past eight years. Middle: Michael Vancura serves as Mega Group’s executive vice president of retail operations. Right: Kevin Leier is Mega Group’s executive vice president and chief financial officer.

HomeGoodsOnline.ca

Concept Décor was the first joint merchandising and marketing effort created by B.V. and V.I.P. when they began their strategic alliance in the early 1990s. In many ways, it was the precursor of BrandSource Canada, Mega’s primary go-to-market strategy today.

A younger Benoit Simard (fourth from left), now president and CEO of Mega Group, is seen here at a meeting in 1992 to cement the strategic alliance of Les Magasins d’Ameublement Bonne Valeur and V.I.P. Stores. After working under V.I.P.’s corporate structure for eight years, the two created Mega Group in 2000.

And all of this has been done, he believes, without compromising the integrity of the individual independent retailer. “We have maintained our members’ individual identities and co-operative mindsets in an environment that tends to amalgamate and centralise small businesses to build powerhouses that progressively make retailers lose proximity and intimacy with the consumers.” He’s also proud Mega has members and storefronts in every province, with services provided in both official languages.

The power of joining

There are three major buying groups in Canada today. In addition to Mega Group – which is headquartered in Saskatoon, with merchandising and administrative offices in Mississauga, Ontario, and Boucherville, Quebec – and dRSG, there’s Cantrex Nationwide, the Montreal-based subsidiary of Nationwide Marketing Group, the largest buying group in the United States. Between them, they have an estimated 1,000 members who sell furniture, mattresses and major appliances. According to Statistics Canada, there were about 3,000 independent or “non-chain” furniture storefronts operating across the country in 2012. Considering the track record all three buying groups have compiled, it’s perhaps surprising that only about one-third belong to any of them. Benoit Simard isn’t surprised for a number of reasons, in-

“ More than ever, retailers need professional support systems to maximize their performance in a world where there is only room for the best performer.” 18 HGO merchandiser

cluding the requirements for membership that Mega established at the outset. “Another restriction was territory exclusivity,” he notes, adding the group didn’t want too many members in a single market. “It’s also important to mention that, according to Statistics Canada, over 1,100 of these stores are considered ‘micro-operations’ with less than four employees.” Without going into details, Simard said Mega is developing innovative ways to eliminate many membership requirements, without damaging the group’s integrity. “The mission of Mega Group is to make independent retailers stronger,” he says. “I believe we are entering an era where we will be addressing the needs of a wider range of retailers.” He believes societal changes over the past decade or two have made group membership even more vital. “More than ever, retailers need professional support systems to maximize their performance in a world where there is only room for the best performer,” Simard says. Generating profit has never been more complex, he says. The independent store owner needs to master a wide range of skills, including the ability to manage cash flow, inventory, logistics, point-of-sale systems and digital marketing at the least. “With every one of these items, there is a cost in both time and money,” Simard says. “In the past few years, shopper behavior has changed significantly and communication with potential customers has evolved to the point where retailers of any size and profile have to reinvent their business model. “To convert these challenges into business opportunity, independent retailers need support. They need to reduce some of these costs, and one way to do it is to share them with other retailers. Groups are saving time for retailers so they can focus on those important business activities that only a passionate owner can do.” Simard believes buying groups save time for retailers so they can do those things that seldom get to the top of

This is the entrance to the newest member of the 139-unit BrandSource Canada network, Ameublement BrandSource Paquin in Grand-Mère, Quebec.

the pile but have the potential to either improve business or simplify their lives. “Groups are providing services that bring value to the retailer,” he says. “And they are completely different from what they were just a few years ago.” Joining a group can make an independent retailer’s life – and business – better, and could be one of the best business decisions he or she ever makes, Simard says.

Staying relevant

Despite the changes in the retail business landscape, or perhaps because of them, he believes Mega Group – and its competitors – is more relevant and necessary than ever before. “If our strategy and offer was similar to what it was in 2000, Mega would occupy a very small space in the market,” Simard says. “Buying groups now have a very different role, and I know many of our long-standing members aren’t with us today for the same reasons they had when they joined.” The challenges independent merchants face is very different from what they were 15 years ago. “The battle, in my opinion, resides on a few different fronts,” he says. “Store traffic has diminished and probably will continue to do so because of the changes seen in consumer behaviour.” These changes are due to progress in communications technology, which enable consumers to find the information they need in very different ways. “Retailers used to be ‘the’ source of information on what was available on the market and, most of the time, were the only way to acquire products and services,” Simard says. “Today, retailers are competing with many other channels with the potential to fill the consumer’s needs. Retailers are often only one of the options available to the consumer to acquire a desired product. “So, to continue to provide the consumer with the same value, retailers must use different methods,” he continues. “Their goal must be to be in front of the consumer at any and every point during the process.” This means the retailer has to be there when it’s time to

tease the consumer, when it’s time to create or increase the desire for a product or service, when it’s time for the consumer to evaluate their options, and when she searches for specifications and begins to compare price and value. “Finally, they have to be there when she decides to buy,” Simard says. “Today, retailers aren’t competing with the guy down the street. They’re competing with every other business that can talk to the consumer from anywhere at any time. They also are competing with every other industry that can excite the consumer and take her disposable dollar.” In this environment, independent retailing can seem to be an almost impossible task if for no other reason than there isn’t enough time in the day to do all the things that need doing to influence the consumers’ buying decision. Simard says the real reason why many retailers are enjoying higher closing rates is because footprints are getting fewer. This also means there’s no second bite at the apple. “There are no second chances, and retailers have to do more with less,” he says. “That’s why I believe – just as I did 20 years ago – that collective efforts and cost sharing make groups more relevant than ever before.”

The vendor relationship

A primary reason for coming together was so independent retailers could acquire product on a more equal playing field. They wanted the volume pricing enjoyed by the majors. It would make their pricing more competitive and give them a greater opportunity to play to their own strengths when facing the consumer. Group relationships with vendor partners – who supply not only every product category its members carry but a }

MEGA GROUP TIMELINE 1961> Founding of Les Magasins d’Ameublement Bonne Valeur (B.V.) 1965> Incorporation of Volume Independent Purchasers’s Stores (V.I.P. Stores) 1966> Opening of V.I.P.’s Saskatoon headoffice 1981> B.V. celebrates 20 years 1987> V.I.P. acquires Transwest Electronics Buying Group 1992> V.I.P and B.V. enter a strategic alliance 1994> Development of Concept Décor 2000> Formal merger of V.I.P. and B.V. as Mega Group 2000> Creation of the Multi Meubles and Countrywide banners 2002> Creation of Sleep Experience 2006> Mega Group acquires BrandSource Canada 2012> Multi Meubles and Countrywide vote to rebrand themselves as BrandSource 2013> Introduction of Mega Group Solutions 2015> Mega celebrates 50 years

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NUMBER OF SHAREHOLDERS*:189

broad range of critical support services as well – also are evolving. Part of this is because there are fewer independent store owner/operators today than there were 15 years ago. “The independent channel is harder and harder to reach, and while groups facilitate (the meeting of vendor and buyer) in many ways, the end result isn’t what it was in the ‘good old days’,” Simard admits. But the benefits of working with the buying groups are only getting better for the vendor, particularly when it comes to financial issues. “We provide central billing and guaranteed payment services for all our members,” Simard says, “so the credit risk for the vendor regarding receivables is eliminated and his sales force can focus on gaining market share and building volume with the member, not dealing with payment issues.” The group usually provides larger credit facilities to its members than the vendor is normally able to provide, “which also eases the sales process and cash flow management, while our electronic data interchange system is certainly improving efficiency for many of our suppliers,” he says. For many of its members, Mega is the primary organiser of their promotional calendar, which in itself generates a healthy volume of business for the vendors. “These marketing activities will continue to be part of the overall value we offer to our vendors,” Simard says. Mega also is fully capable of supporting their vendors’ marketing and brand positioning strategies. “Our web catalogue and e-marketing strategy, for example, is designed to benefit from the value provided by both suppliers and retailers with respect to the brand promise and promotional strategies of both,” he says, adding activities such as these strengthen the bond between retailer and supplier. “In some cases, our retail systems can become a wellorganized, independent distribution network for suppliers,” he adds. “This can help them better manage their distribution and will often help protect margin on some products.”

NUMBER OF MEMBERS, ALL PRODUCT CATEGORIES*: 674

BrandSource Canada

AT A GLANCE ESTABLISHED: 1965 HEAD OFFICE: 720-1st Avenue North; Saskatoon, SK S7K 6R9 TELEPHONE: (306) 242-7366 / 1-800-265-9030 WEB SITES: www.megagroup.ca; www.brandsource.ca BOARD OF DIRECTORS: Richard Wall, Wall’s BrandSource Home Furnishings, Ontario (chairman); Jim Coleman, Coleman’s BrandSource Home Furnishings, Newfoundland & Labrador; Michel Tardif, Meubles & Nous, Québec; Chris Forbes, Madman Mackay, British Columbia; Phil Brewer, Cox Electronics & Communications, New Brunswick; John McLellan, McLellan BrandSource Home Furnishings, New Brunswick; Konrad Kozan, Kozan’s BrandSource Home Furnishings, Saskatchewan; Jacques Maheu, Maheu’s BrandSource Home Furnishings, Ontario; Wayne Hambly, Hambly’s BrandSource Home Furnishings, Prince Edward Island (past chairman); and, Denis Riel, Club Meubles Avantage, Québec. SENIOR EXECUTIVE TEAM: Benoit Simard, president and chief executive officer; Kevin Leier, executive vice president and chief financial officer; Michael Vancura, executive vice president of retail operations, Wade Taylor, executive associate/strategy and digital business.

TOTAL RETAIL SALES, ALL MEMBERS AND PRODUCT CATEGORIES*: $1.8 billion NUMBER OF MEMBERS SELLING FURNITURE, MATTRESSES AND APPLIANCES*: 456 NUMBER OF BRANDSOURCE CANADA MEMBERS*: 109 NUMBER OF BRANDSOURCE CANADA STORES*: 138 AFFILIATED GROUPS AND RETAILERS: The Dufresne Group (both Dufresne Furniture & Appliances and Ashley Furniture HomeStore divisions), Dufresne Retail Solutions Group (DRSG); Trail Appliances; Tasco Goemans Appliances Group; End of the Roll; Power Audio Video Group; Audio Video Unlimited (AVU), Groupe SON X Plus; Groupe Stereo Plus; and, Foto Source. *As of 31 December 2014

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Simard rejects the view that BrandSource Canada – Mega Group’s primary go-to-market strategy that was launched in 2008 – hasn’t been an overwhelming success. He asserts it’s wrong to take the concept out of the economic environment that’s challenged retail in the past seven years. “If we ignore that reality, we can say the program is not reaching the level of performance we’d hope,” Simard says. “But the program is outperforming the industry in many categories. For example, our appliance volume is more than double what it was in 2009.” He admits there is one area where the goals were not met: branding. The original plan called for leveraging a portion of the marketing investments made by both member retailer and the vendor partner to create what was called the “Power of One Voice.” “Unfortunately, timing made this branding and positioning strategy difficult to sustain. Business at retail dropped 20% or more, and everyone became focused on promotions and other short-term strategies in an attempt to save their sales,” Simard says. “Because the program was designed to

Mega Group was founded as a democratic co-operative, and its 189 shareholder continue to elect the organisation’s governing body, the board of directors. Members of the current board include (back row, left to right): Richard Wall of Wall’s BrandSource Home Furnishings, Ontario, the current chairman; Jim Coleman of Coleman’s BrandSource Home Furnishings, Newfoundland & Labrador; Michel Tardif of Meubles & Nous, Québec; Chris Forbes of Madman Mackay, British Columbia; Phil Brewer of Cox Electronics & Communications, New Brunswick; John McLellan of McLellan BrandSource Home Furnishings, New Brunswick; and Konrad Kozan of Kozan’s BrandSource Home Furnishings, Regina. (Front row, left to right): Jacques Maheu of Maheu’s BrandSource Home Furnishings, Ontario; Wayne Hambly of Hambly’s BrandSource Home Furnishings, Prince Edward Island; and Denis Riel of Club Meubles Avantage, Québec.

support continuous sales growth, it took time to adjust to and accommodate that reality. “I guess this created the illusion that the strategy didn’t work. But the real question is: What would the performance have been like in a normal business environment?” Mega’s senior management still believes in the BrandSource concept. “We believe in the strategy and continue to invest money and effort in the development of both electronic and traditional marketing tools that are in synch with the consumer’s actual ‘path to purchase’,” he says. “BrandSource is building a program that encourages consumers to shop the way they want to. We continue to believe digital marketing – that is, an effective and integrated e-marketing solution – is where the independent’s battle for market share will be won or lost. This program is designed to pull, not push, the consumer.” There has been a flurry of activity behind the scenes over the past two years or so, Simard reports, efforts that will bear fruit in coming months. “It will not be a revolution but rather a great evolution for those retailers and suppliers who are investing in BrandSource,” he says.

The future of the independent retailer

There always will be a place for the independent furniture, mattress and major appliance retailer, but the future is far different from the one envisioned by Mega’s founders in 1965. “I believe that ‘one size fits all’ is less and less relevant to most consumers,” Simard says, meaning the era of pushing product at the consumer is fast coming to an end. He believes the market is splitting in two. On one side, there’s the “commodity” segment, based on price and volume. On the other, there’s a segment emerging where the

retailers don’t simply shelf and sell product, but become an important resource that assists the consumer in finding those things that satisfy her complex, personal needs. “The retailer working in the second segment must develop more of a ‘pull strategy’,” Simard says. “They have to provide the experience, assistance and support the consumer is looking for, in addition to the more customised and personalised products that fit her lifestyle and best express her personality. “I am not suggesting every sale will be based on custom design, but the shopping experience must be designed to allow them to buy what best fulfills their desires.” Consumers will respond positively to “passionate operators” and “service minded” retailers, which Simard says best describes the majority of Mega’s members. In the future, which is already here in a lot of ways, retailers “need to adapt to better leverage technology,” he says. “They must embrace the world of communications and social media. Our small business operators are certainly in a better position to do this in comparison to big corporations. “Smaller operations need to leverage what groups can do for them, or help them to do at a lower cost. They can benefit from complex and expansive tools and systems such a web catalogues, business intelligence, e-accounting and logistic support to connect with consumers and serve them in a profitable way.” But one thing hasn’t changed over the past 50 years. “Consumers will need furniture, appliances and bedding and the smart retailer, big or small, will find a way to fulfill that need,” Simard says. “We intend to be there with those retailers.” HGO MICHAEL J. KNELL is the publisher and editor of Home Goods

Online.

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GE’s luxury Monogram brand gets its own dream home in Toronto BY ANDREW BROOKS

chez unique

The second-floor cooking studio, seen here, makes striking use of materials with a weathered-wood ceiling, marble counters and blackened steel exhaust hoods in an antique finish.

24 HGO merchandiser

APPLIANCES

UILDING A DREAM HOME IS

a labour of love. It takes time, resources and – perhaps most importantly – a unifying vision. If all these come together, the final product will be worth the wait. Case in point: the Monogram Design Centre and Cooking Studio, which opened in March of this year in Toronto’s Castlefield Design District. The centre is the “dream home” of GE’s luxury Monogram brand, a place where appliances are showcased in a setting that is both unique and familiar to its target customer: homeowners with a good sense of design and the income to express it, and who also love to entertain friends and family – and to cook. This consumer wants appliances that make a strong design statement while doing more than just looking good. The centre is the baby of Philippe Meyersohn, general manager of the Monogram brand for MABE Canada, which manufactures and distributes GE appliances in Canada. Project planning started at the end of 2011. The design work was given to the prestigious Toronto architectural firm Hariri Pontarini, best known for premium residential projects. The design they came up with makes itself felt before the visitor even sets foot inside the building. The first floor is clad in brick with narrow windows; the second floor features large windows that front on two sides of the structure. What the visitor sees upon entering is a far cry from the usual showroom. For starters, there’s no reception area. It’s like walking into an upscale home, which was the whole point of hiring a residential architect, Meyersohn said when he gave HGO an exclusive tour in July. Visitors find themselves standing in a luxury kitchen – or rather kitchens. To the right is a vast marble-clad island flanked by bright, contemporary white cabinetry featuring a full suite of flush-mounted Monogram appliances. This is the Forest Hill Kitchen, patterned after a project Hariri Pontarini did for a $10 million home. To the left is the Brooklyn Kitchen, with a more intimate although still unmistakably upscale layout. This installation was inspired by The Kinfolk Table: Recipes for Small Gatherings, the cookbook published by Kinfolk magazine, which accents intimate gatherings and the love of good food. Both kitchens are fully functional (a batch of chocolate-chip cookies was in the oven when

HGO visited), furnished with William Ashley and Le Creuset cookware. The cabinetry was crafted by Avani Kitchens, the Mississaugabased cabinet specialist, and the marblework is from Ciot, a neighbouring supplier and installer of premium ceramics and stonework. “The layout was inspired by the world of fashion,” Meyersohn says. “In fashion, you have mannequins at the entrance, then you go in to get the specific items of clothing you want. These two kitchens are my mannequins.” The large islands in both kitchens also serve as workspaces for visiting interior designers, who have plenty of space to lay out their plans, plus plug-ins and a WiFi network so they can stay in touch with clients and colleagues.

THE NON-SHOWROOM SHOWROOM

The 4,000-square-foot first floor has much more. The building is still a showroom, so Meyersohn included space for a full presentation of Monogram refrigerator and oven/range }

This curving staircase, crowned with a sinuous chandelier designed by the Toronto-based Partisans architecture and design studio, brings visitors to the second floor, the Monogram Cooking Studio.

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Donna Dooher, seen here, heads the Monogram Cooking Studio. A well-known Toronto cuisine personality, she is the owner of Mildred’s Temple Kitchen, CEO and president of Restaurants Canada, and national chair of Taste Canada, organisers of the Food Writing Awards. She also created the Cookworks Cooking Studio, which morphed into the popular Cookworks TV show on The Food Network.

This portrait wall inside the new Monogram Design Centre features notable Toronto personalities who use Monogram brand appliances in their own homes, along with a statement about their love of cooking.

26 HGO merchandiser

lines, which are housed in what he calls the cold room and the hot zone. “We have more than 100 appliances here, but you don’t see them when you first enter. We didn’t want to overwhelm people. When you come in, you can look at the styles you want in the two kitchens, but just around the corner we have a broad selection available.” A nearby wall features photos of notable Toronto persons who use Monogram, with statements reflecting their love of cooking. There is also a training room for retail sales associates. “This showroom is quite unique compared with anything I’ve been involved with before, because it’s the first one that has put the consumer first, in terms of what they think when they walk in the door,” says Devica Harvey, showroom manager, who has years of experience in appliance retail and distribution. “A lot of the questions that we get from consumers are about design and installation, about fit and finish. What it will look like in their home is just as important to them as performance.” A curving staircase crowned with a sinuous chandelier – designed by the Toronto-based Partisans architecture and design studio – brings visitors to the second-floor Monogram Cooking Studio. The studio also makes striking use of materials, boasting a weathered-wood ceiling in addition to marble counters and blackened steel exhaust hoods in an antique finish. The studio is headed by Donna Dooher and Esther Benaim, both well-known Toronto cui-

sine personalities. Dooher is owner of Mildred’s Temple Kitchen as well as CEO and president of Restaurants Canada, the industry’s national association, and national chair of Taste Canada, organisers of the Food Writing Awards. She is famed for creating the Cookworks Cooking Studio, which morphed into the popular Cookworks show on The Food Network. Benaim is the former owner of Great Cooks on Eight, a Toronto cooking studio that featured Toronto’s top chefs as cooking instructors. Benaim calls the Monogram Cooking Studio “Great Cooks at Monogram.” Dooher and Benaim manage the cooking studio as its own business, Meyersohn says. The space can be used for a range of activities, most obviously cooking classes, although this isn’t the primary activity. It’s also designed for corporate team-building, corporate events (both floors can be used) and as a culinary resource for Toronto chefs. The second floor also houses a large dining/ meeting room and a 1,500-square-foot rooftop herb garden.

A NEW LANDMARK

“We had three objectives in mind when we designed this facility,” Meyersohn says. “The first was to create a space where the consumer would find it easier to select the right appliances. Secondly, we wanted to clearly deliver a brand message; we wanted to establish Monogram as a brand for people who actually use their appliances. The third thing was to create a resource that could be used for a number of activities we didn’t have the space for, such as training and giving the consumer an opportunity to try our product.” When he was planning the centre, the first decision Meyersohn had to make was whether its main purpose was to build the Monogram

brand or to support customer decision-making during the sales process. Bearing in mind the highly competitive nature of the Canadian market, he opted for the latter. The site Meyersohn selected had never been built on but had a good traffic flow, driven by the presence of such nearby high-end retail home furnishing institutions as Elte, Toronto’s destination store for furniture and home furnishings. Other than that, the area hadn’t been developed as a premium home destination, a situation that has now changed drastically. “I wanted to have street frontage and natural traffic,” he says. “We didn’t want to have to create the traffic ourselves. We wanted to create a landmark in the area.” Response has been very positive. “We’ve seen a lot of traffic and generated quite a few leads for our customers,” Meyersohn says. “We’re ahead of the curve.” Perhaps just as important has been the fun factor that comes with creating a concept and seeing it through to completion. “Overall it’s been a very enjoyable project. It’s so exciting when you can do something this different,” he says. HGO ANDREW BROOKS, a freelance writer based in

Oakville, Ontario, is a regular contributor to Home Goods Online. The Brooklyn Kitchen, one of two kitchens seen immediately after entering the Monogram Design Centre has a more intimate layout. It was inspired by The Kinfolk Table: Recipes for Small Gatherings, the cookbook published by Kinfolk magazine.

Inspired by a high-end home designed by project architect Hariri Pontarini, this ‘Forest Hill Kitchen’ features a vast marble-clad island flanked by bright, contemporary white cabinetry featuring a full suite of flush-mounted Monogram appliances. HomeGoodsOnline.ca

MARKET REVIEW

The Norcross Architect casual dining set from Amisco is built using both wood and metal in a contemporary, industrial style.

BY ASHLEY NEWPORT

d e p m a v Re

CANADIAN FURNITURE SHOW MAKES WAVES

T LH Import’s Foundry dining table is made of dense and solid Acacia wood, from the heart of India. The base is made of cast iron. As seen here, the table weighs about 400lbs.

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Part of its Cambridge collection, the model BU1279A buffet from CDI International is made of mango wood and iron.

HERE WERE BIG CHANGES AT THIS

year’s rejuvenated and newly named Canadian Furniture Show. With an updated look and a controversial (and not-to-be-repeated) public day, the industry’s only national trade show ran June 4-7 at the International Centre, a stone’s throw from Toronto’s Pearson International Airport. It welcomed some 245 exhibitors, including a record 95 new vendors. The biggest change – other than moving the festivities from winter to summer and changing the name from The Canadian Home Furnishings Market – was the introduction of the Consumer Day, with speakers such as Canadian design celebrity Karen Sealy, Steven Sabados and, in one of his last appearances before his death a few weeks later, Chris Hyndman, stars of the popular CBC daytime program Steven & Chris.

Axel Media Console from Dimplex juxtaposes a raked sand finish cabinet with tinted glass. It features a lit display area and the Multi-Fire XD firebox as well as its patented Comfort$aver ceramic heating.

The Grant chair is the latest addition to the Jane by Jane Lockhart collection. Made in Canada and designed by television personality and interior designer Jane Lockhart, the Grant sports a retro look with clean, elegant lines that will bring out the personality of any room.

Although the purpose of the public Sunday was to spur greater awareness of furniture and furnishings among consumers, and thus drive traffic into stores, both buyers and vendors were wary of creating confusion, particularly on pricing. Those concerns prompted the Quebec Furniture Manufacturers Assn., sponsors of the market, to drop the public day in future shows. The first three days of the show were business as usual, with exhibitors showcasing everything from mattresses, major appliances, upholstery and case goods to outdoor furniture, art and accessories. Notable vendors included Boca Rattan, Brentwood Classics, Collection Tuff Avenue, Décor-Rest, Elite Living, Huppé, Palliser, Sommex Bedding and Springwall. Some buyers found what they were looking for; others said the selection was a little too uniform. Exhibitors, both those with permanent showrooms in the building and those in the surrounding area, said the show provided excellent access to new and old clients. Almost everyone was nervous about Consumer Day.

SO, WHAT WAS NEW?

Aside from the new vendors, the show hired, for the first time, a celebrity spokesperson, the aforementioned Karen Sealy. She’s an interior designer with Sealy Designs, a City Line contributor and the former host and designer for Summer Homes. She spoke Sunday on fashion trends, and outlined her views on why it was time for the show to add a consumer element.

“It’s going to be interesting to see people’s reactions to going where the trade people go,” Sealy said. “It’s opening the door into this private world that everybody gets to see now.” As to why, after many years of being a tradeonly show, the market decided to invite the public, Sealy said it had to do with consumers being more savvy and informed than ever before. “I think what’s happening is people are doing a lot of shopping online,” she said. “People are getting to the point where they want to see more. They want to know what we know as designers. The idea that they get to see here what’s up and coming, they get to see the trends, it’s very exciting for people to see what’s going to be showing in stores in six months. It’s like they’re on the cutting edge by coming here.” Sealy said the show remains important for exhibitors, and the benefits of showing to everyone are immense. “This is the biggest furniture show in Canada and it’s in Toronto, so it’s an easy city to }

Marion Collection, a Toronto-based producer of acrylic furniture was the winner of the ‘Best New Booth’ award at this year’s Canadian Furniture Show (CFS). Six other exhibitors were also saluted for the quality of their presentations to retailers and other professionals attending this year’s event. The booth awards program was new to this year’s event and was judged by outside design experts.

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your own colour. What a lovely way to bring a little energy and personality to something. If I was looking in a magazine, I wouldn’t know this great little detail. “I sat on a beautiful leather sectional that was made in Canada,” she continued, “and one end of the sectional reclined, and it was so comfortable. I have clients asking for these kinds of things all the time. It’s nice these kinds of things were here at the show, and people could try them out.”

THE EXHIBITOR EXPERIENCE

The Preface range of wall units from Gautier French Furniture offers a range of shelving and storage options designed to maximise the use of and enhance any living space. Modular in design, it is available in five finishes including white, gray oak, smoked walnut, natural oak and sierra oak.

The Rodolfo group from Jaymar offers a sophisticated look which comes from its simple lines and curved arms, which are filled with memory foam for maximum relaxation. It also features retractable headrests, memory foam cushions and reclining seat options. The group is offered in a choice of 30-inch or 23-inch seat widths for small space rooms as well as multiple sectional configurations.

get to because you can get direct flights from anywhere in Canada,” she said. “It’s a great hub and you’re right by the airport. Because there are so many exhibitors and so much going on and such a great population to draw from, we get a lot of people here, whether it’s the design community, architectural community, retailers or, now, even consumers. I think it’s a fantastic show for exhibitors.” From Sealy’s design perspective, she believes some exhibitors excelled here by showcasing goods that were a little bolder and off the beaten path. In her view, consumers are getting bolder and more style-savvy; opting for funkier statement pieces that can spice up or reinvigorate a more traditional space. “There were some really great exhibitors,” she said. “Huppé had some fantastic stuff. You can see pictures in magazines and online, but I love to try something. One exhibitor had a beautiful sideboard with drawers that had a hint of purple fabric inside when you opened them. You can pick

30 HGO merchandiser

For vendors, the Canadian Furniture Show, although smaller than markets in High Point, Las Vegas or the bigger European and Asian events, remains an excellent venue for networking and selling to buyers. “The show was good and we had good traffic,” said Michael Clapham, president of the Canadian division of Surya, the U.S.-based rug and accessories resource with a permanent showroom here. “Buyers are looking for accessories right now and the response was good. Dealers Launched it honour of the 15th are looking for tone-on-tone anniversary of its AvanteGlide and simpler colours. Not so collection, Dutailier introduced much traditional looks, but the Utopia glider rocker at CFS. washed-out, casual looks. We It was one of four new styles of a offer a broad range of prodnew generation of high-end motion ucts, including 5,000 differrecliners that is manufactured with ent rugs.” an exclusive new base concept, Other exhibitors with making it the first glider on the permanent showrooms also market with a pivot mechanism. were happy with buyer response. “We expanded to more than double our previous space,” said Ryan Wilner, president of the hospitality division of Renwil, the Montreal-based art and accessory resource. “We were able to really show the line properly. We have over 1,200 items in stock, and before we really weren’t able to show anything but a portion of a new collection.” Renwil, like other accessory sources, had a strong arsenal of warm metals, particularly coppers, and was packaging end tables, mirrors, lights, rugs and art in complete collections, taking the guesswork out of how to display different goods on retail floors. “Buyers want us to make their lives easier,” Wilner said. “We used to merchandise our products in separate sections. A buyer would say, ‘I like that art,’ then have to find a mirror and other things that go with it. With packages, we make it nice and easy, so retailers can make it nice and easy for their customers. This has been really successful for us.” }

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Top left: The IF-192W platform bed from International Furniture Distribution Centre (IFDC) creates a charming and glamourous focal point for any master bedroom with its button-tufted headboard design. The white fabric version has a classical and sophisticated finish. Available in full, queen and king sizes as well as in black. Bottom left: The Napa collection was introduced by contemporary wood bedroom specialist Mobican. Right: The Jayden platform bed was introduced by Worldwide Homefurnishings as part its Inspire at Home collection.

WHAT MAKES BUYERS HAPPY?

One complaint about previous shows here was a lack of attention to detail on the part of many exhibitors. While Consumer Day appeared to lessen some of that, a few spaces still were more cluttered than beautiful, with goods displayed in a warehouse-style maze. Buyers such as Stephen and Vivi Goettler, owners of GG Goettlers of Dublin Fine Furniture in Dublin, Ontario, prefer a more pristine look. “The lighting (at the show) was better, and I think the hospitality was better,” said Vivi Jensen Goettler. “The layout was better. They moved vendors around from their traditional spots, which made it seem fresher. I think they thought of every detail they could in terms of hospitality. The carpet looked new. We both really liked it.” The Goettlers, who typically look for Canadian-made case goods and upholstery, said the show introduced them to goods they hadn’t thought of displaying. Stephen Goettler, although impressed with the wares, was unsure if the summer timing would work, because buyers might be suffering from show fatigue after attending other markets in the spring. “We saw some very nice merchandise,” he said. “If you’re a buyer that shops High Point in April and comes here in June, you’re used to some fantastic looking displays. Whether the timing is going to work for the average buyer … I don’t know. In our business, we often have a very strong December with Boxing Week, where business is good. After that, you go to a show in January and you have some holes on your floor, and you’re excited. Whether this (June show) works, the market will dictate.”

32 HGO merchandiser

Kyle McMullan, manager of the Perth, Ontario-based McMullan Appliance & Mattress, said that, for him, networking opportunities remain the show’s greatest benefit. “When we come here for our store, it’s a quick visit to appliance vendors and mattresses,” he said. “We like to stay in tune with furniture, but it’s not our main focus. It’s more of an excuse to socialize, and the timing of the (June) show is fantastic for us. All the new appliances and mattresses came out months earlier, so we’re not really getting a sneak peek at the new stuff. It’s good to network and see other dealers. There’s a lot to look at, and I dig it.”

CONSUMER DAY

Consumer Day – an idea that was tried in the 1990s and abandoned – certainly had people talking, mostly about letting the end user get too close to the purchasing process and perhaps confusing them in the long run. Some retailers worried that consumers would compare wholesale to retail prices and try to talk to manufacturers directly to avoid paying store markups. Others said there would be confusion over whom the prices were for, leading to disappointment when the goods shown here were priced higher in stores. Others said some consumers already were confused, believing they could buy a light fixture or sofa at the show on Consumer Day. Buyers Craig Stephens and David Wieler, co-owners of Toronto-based Design Republic, argued that, since CFS is not a design-heavy show like the Interior Design Show held at the end of January, there’s no need to involve the public. They also said it hurts retailers. }

WHAT CONSUMERS ARE ASKING Although industry insiders are top of mind at trade shows, they ultimately serve the end user. Here’s a sampling of what she was asking design experts Karen Sealy, Stephen Sabados and Chris Hyndman, the three personalities featured during the Canadian Furniture Show’s Consumer Day. How do I decorate a man cave? Stephen & Chris: A denim sectional or a rustic or industrial look. Leather is also recommended for being “indestructible,” and fireplaces always work if they’re a possibility. What are colour trends in garden furniture? Stephen & Chris: Formal wrought iron pieces and lots of colour. Fireplaces and fountains also work. The outside should be an extension of the inside of the home, so severely disparate indoor/outdoor looks aren’t necessary. What should you pay for a sofa that will last a lifetime? Karen Sealy: Up to $8,000 is possible.

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“I’ve been to public days at other shows, and I think it’s a dumb idea,” said Stephens. “I think it changes the tenor of the conversation.” “It’s not a design-oriented enough show here,” said Wieler. “It’s pulling back curtains that don’t need to be pulled back.” “From a retailer’s perspective, the trend in the industry is that consumers want to buy less and less at retail, and they’re looking for a way to pay less, so having a consumer day kind of encourages them to see the other side of our industry,” Stephens added. “They’re the end of the chain and they’re lopping off some links in that chain. The chain already has been stressed with the internet and other ways people can bypass the retailer, so they’re not doing the retailers any favors. They’re shooting the retailers, who in essence are who the show is for.” Wieler pointed out that, much like in a restaurant, the magic is lost when too much prep is observed. “To connect all the dots for people in an already stressed environment, I don’t think it’s helpful. Ultimately, I don’t think it’s helpful for the consumer. All it’s going to do is add more confusion.” While many exhibitors and buyers agreed with Stephens and Wieler, others were a slightly more positive on Consumer Day. Some tried to mitigate potential confusion by preparing lists of retailers for consumers interested in purchasing products. “I got a lot of people phoning me, and I told them they’re more than welcome to come in,” said Sheryl Lowe, Renwil’s showroom co-ordinator. “I told them that I can’t sell directly to them, but I can refer them to a retailer in their area. We all ultimately depend on the consumer, so I think it’s good they came in here, looked at the product and hopefully went to a store to purchase it. It benefits everyone.” Surya’s Clapham said, “I’m not sure about public day. When a consumer comes in and we have multiple dealers in an area, who will we suggest they go to? I don’t like to favor particular dealers.” The flow of consumers who came seemed steady throughout the day, with Steven and Chris’ presentation drawing the largest audience. The trends the designers discussed were consistent with the trends showcased at the show, and consumers got to ask the experts about how to incorporate these trends into their decorating. During the presentations, the designers drew attention to exhibitors, praising pieces by Huppé, DécorRest, Hellenic Rugs and Pink & Brown, to name a few. After the event, the QFMA reported they sold a disappointing 1,300 tickets to Consumer Day and said it would not be a part of next year’s event. HGO A regular 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.

34 HGO merchandiser

CFS GETS MIXED REVIEWS FROM EXHIBITORS; ORGANISERS SAY THE BLEEDING HAS STOPPED BY MICHAEL J. KNELL

he first edition of the renamed Canadian Furniture Show received mixed reviews, although nearly every exhibitor surveyed said they booked reasonable orders, and promised to return in 2016. Pierre Richard, president and chief executive of both CFS and its owner/operator, the Quebec Furniture Manufacturers Assn., said he was fairly well pleased with this year’s event, noting that work on 2016 began on June 8 – the day after this year’s show closed. Of course, the first question about any trade event concerns attendance: Did enough of the right people walk through the halls? Richard said early indications suggest overall attendance for the 2015 CFS was roughly on par with the 2014 edition of what was then called The Canadian Home Furnishings Market. Insiders pegged retailer attendance at about 2,500 or so, driven mainly by the continuing support for CFS from the three major buying groups, Cantrex Nationwide, Dufresne Retail Solutions Group and Mega Group. Total trade attendance (including decorators, designers and others) was estimated at slightly fewer than 5,000, although there was no break-down of that figure. In a longstanding complaint, exhibitors said attendance by retailers in Western Canada was light. What was new was the noticeable lack of attendance by Quebec-based retailers. This was attributed to two factors. First, CFS was too close to Quebec’s unofficial traditional moving day, July 1. Canada Day, it seems, is the most popular day of the year for households in that province to change locations. Second, CFS coincided with the Grand Prix de Montreal, a very popular sporting event. There were some unexpected twists in overall attendance. Perhaps Pierre Richard, CFS president, is seen here with a member of the acrobatic troupe that entertained market goers when the halls of the International Centre opened for extended hours on Saturday evening – a first for this country’s only national furniture industry event.

the most striking was, as Richard reported, some 250 new badges for members of the trade were issued on Sunday morning – the opening of Consumer Day. Organisers suspect the majority of these were retailers and decorators. “I think this shows Consumer Day really didn’t prevent the business of the trade from happening,” Richard said. He also firmly believes the drop in overall attendance seen in recent years has bottomed out. “We seem to have stopped the bleeding,” he said – an observation he also made before opening day about the number of exhibitors participating in CFS.

CONSUMER DAY GETS A BIG ‘THUMBS DOWN’ When asked about Consumer Day, every exhibitor contacted said they were unhappy with the results. In addition to the turnout being much poorer than anticipated, most indicated it took away from CFS’s primary mission as a platform for resources and retailers to work together in a convivial atmosphere. Not one resource said it should be repeated in 2016. Jason Harris, vice president of sales for stationary upholstery specialist Stylus, Made-to-Order Sofas, gave a typical response: “We got very little out of this day. Our location is not great for walk-by traffic, so that may have affected our exposure. It’s fine when you are a destination for your customer base, but I noticed the main aisle-ways were much busier on Consumer Day. Even with improved traffic, I’m not sure it’s worth repeating.” “Having the public day on a Sunday prevented most of our Ontario dealers from attending,” said Adam Hofmann, president of case goods producer BG Furniture. “It interrupted our opportunity to sell and completely confused most of our retail customers. “However, on a positive note, we embraced it and spoke to many consumers about our products,” he added. “We likely referred about 50 consumers to BG retailers in the Greater Toronto Area and as far away as Guelph. About five to 10 consumers were seriously wanting to by our products after they saw them in our showroom.” Hofmann, who opened a new permanent showroom in the SOFA annex of the International Centre just before CFS, believes that if the organisers want to keep Consumer Day, it has be handled at some other time, such as a Saturday evening. Steve Preiner, director of marketing for first-time CFS exhibitor BSH Home Appliances, was unhappy with the results of Consumer Day. “Traffic was slow and we felt the focus should be kept on the trade,” he said. “Some of the consumers were tire-kickers, looking for ‘show specials,’ and dealers were concerned about vying for attention with consumers on the floor at the same time.” Richard admitted Consumer Day wasn’t as successful as the organisers hoped, with only 1,300 consumers attending. “The level of satisfaction wasn’t very high,” he said. “People wanted to buy and walk out with a new sofa. They were disappointed they couldn’t leave with something.” Consumer Day has been dropped from the calendar for 2016 CFS.

ORDER WRITING OK, NOT GREAT When all is said and done, every market for furniture, mattress and major appliance retailers in North America is judged by orders written. The higher the order pile, the greater the event’s success is deemed to be. This has been particularly true of the markets held in Toronto over the past 43 years. On this key question, CFS exhibitors were divided, with a strong minority saying retail attendance was poor, and that was reflected in orders written. “It was a good market – not excellent, but good,” was BG’s Hofmann’s assessment. “I had higher expectations for total dollar orders. Many dealers visited our showroom but did not make orders. They asked the sales rep to come back to their store to review and finalise. Many dealers were not in a buying mood. However, we had some very important leading dealers that wrote large orders and that gave us confidence in the new products we developed.” “It was stronger for order-writing than January 2014,” said Diana Sisto, creative director for upholstery specialist Brentwood Classics, one of nine official outside showrooms participating in CFS. “It was a good market for us,” she continued. “We were very pleased with the outcome and felt it was an ‘efficient’ show for us. We signed up many new accounts as opposed to previous Canadian markets.” “We saw our key customers and wrote business for significant new floor placements,” Stylus’ Harris reported. “This is our only exposure to the eastern (Canadian) market, so that is our prime objective for the CFS. Our written orders were the second-highest total over the last five shows.”

WHAT’S NEXT FOR 2016? Almost every exhibitor said they would be back for the 2016 edition of the Canadian Furniture Show. Harris made a typical comment: “I am committed to supporting this show. I believe it is very important for the Canadian furniture industry to have a show of its own.” Several exhibitors advocated returning to the Toronto market’s traditional schedule, with opening day on Saturday and closing Tuesday afternoon. A minority even advocated a return to January; something the QFMA’s Richard said is unlikely to happen. “Will we go back to January? No, unless something drastic happens,” he said. The next Canadian Furniture Show will be held at the International Centre from May 28 to 30, opening on a Saturday but closing on Monday. “We know 73% of surveyed show participants don’t favour a January show; 71% prefer a ‘trade-only’ event, without a Consumer Day; and trade visitors spent an average of 2.8 days in Toronto for the show,” Richard said, adding that 91% of show participants surveyed indicated they plan to return in 2016. “Next year’s will be an even bigger and better event.” HGO Michael J. Knell, the publisher and editor of Home Goods Online and all its platforms, has attended every Canadian Furniture Show – under whatever name – since 1986. HomeGoodsOnline.ca

36 HGO merchandiser

ON RETAIL

THE POWER OF

DISRUPTION…

the pain and the possibilities Every industry, including ours, is being transformed by disruptive technologies, by new and innovative business models, by global economics and, sometimes, by fundamental changes in society’s values. For the retailer, the choice is simple – either become the disruptor in your market, or eventually be put out of business by those who are.

S BY DONALD COOPER

O EXACTLY WHAT IS ‘DISRUPTION’?

According to Webster’s dictionary, ‘disruption’ is the process of interrupting the normal progress or activity of something. In business terms, ‘disruption’ is anything that makes doing business the same old way unproductive, irrelevant and unprofitable. Actually, ‘disruption’ is the currently fashionable word for ‘change’. And when it comes to change, there are only three positions open and available to anyone working in the furniture, mattress and major appliance supply chain, whether you’re a manufacturer, distributor or retailer. You can be any one of the following: 1. You can be the architect of change; 2. You can embrace the change created by others; or, 3. You can be the victim of change. There are at least five disruptive forces that are affecting our industry right now and it will be helpful to look at each of them individually. Whether you’re a retailer, manufacturer or distributor, as you read through the five different types of disruption listed below, ask yourself what changes you need to make to be the innovation leader in your sector of the industry, or the market in which you compete.

DISRUPTIVE TECHNOLOGY.

We’ve always had disruptive technologies. Believe it or not, back around 300 AD the stirrup was a disruptive technology. It gave warriors on horseback more stability in battle – they could throw spears while bracing their feet – than their opponents. It was the significant ‘competitive advantage’ that allowed nomadic warriors like Genghis Khan and his followers to control vast areas of Asia and Europe. Likewise, in their time the steam engine, the jet engine, electricity, refrigeration, digitisation and the internet have all been disruptive technologies. In our industry, technology allows us to operate more efficiently and proactively communicate with customers and prospects. But technology also allows e-retailers with lower overhead to steal our customers. Its technology that enables Amazon to sell over 100 million items annually, including furniture, mattresses, other furnishings and appliances. Ironically, Amazon still hasn’t figured out how to make a profit, but they have deep pockets and they keep disrupting industry after industry. A few years ago they won a national Customer Service Award, from the National Retail Federation – the largest U.S. retail industry association – beating out all ‘bricks and mortar’ retailers. That is both amazing and scary. } HomeGoodsOnline.ca

While most probably don’t think about them this way, Leon’s Furniture became a furniture industry disruptor by simply buying its arch-rival, The Brick, and solidifying its position as this country’s largest furniture, mattress and major appliance retailer. Then, it committed itself to becoming an e-commerce powerhouse by buying a minority interest in the operator of Furniture.com.

Last year Leon’s Furniture – Canada’s largest furniture, mattress and major appliance retailer and owner/operators of both Leon’s and The Brick – bought a minority interest in Blueport Commerce, the U.S.-based e-commerce platform provider and operator of Furniture.com. From this, we can assume Leon’s is committed to expanding their e-commerce business. So, every furniture retailer – particularly independent merchants – need to be asking themselves whether they’re using the latest and best technology and partnering with the best technology providers to not only operate effectively but to understand, serve and communicate with customers and prospects while driving sales and improving margins?

2 Sleep Country Canada changed the way retailers sell and consumers buy mattresses in this country. It found a simple formula: specialise in mattresses and their accessories while providing outstanding customer service supported by intensive marketing and advertising campaigns.

38 HGO merchandiser

DISRUPTIVE PRODUCTS.

Disruptive technologies generally lead to the development of disruptive products and capabilities. The automobile changed how we got around and where we could live, work and travel. Motorised trucks led to the capability to quickly transport agricultural and manufactured products over long distances, resulting in the closing of millions of small local businesses as entire industries consolidated. Digital cameras replaced film cameras and subsequently bankrupted Kodak. Now smart phones are replacing digital cameras. It all happened so quickly. The smart phone, connected to the internet allows consumers to enter our stores,

scan the bar code on any product and immediately be directed to a lower priced competitor’s web site. There’s a name for it: showrooming. In our industry has seen very few disruptive products. Perhaps the most noteworthy in recent years – except in consumer electronics, which seems to almost always been churning out some new ‘must have’ gadget such as the iPad – has been memory foam mattresses. Serta, after all, made quite a splash with iComfort. There have also been other technological innovations such as ‘smart’ kitchen appliances that may or may not disrupt how grocery shopping is done and how food is stored and prepared. So, the question to ask is: are your products so relevant, so extraordinary, so competitive, so right for your target customers that there’s no reason for them to go anywhere else? And, if so, are you effectively communicating that powerful message? Remember, there’s no point being the best if you’re also the best kept secret.

DISRUPTIVE NEW BUSINESS MODELS.

These are changing most industries. For example, the e-commerce site Tirerack.com has become the largest retailer of tires and rims in North America. A lot of independent tire retailers have cried “unfair competition” but there’s actually no such thing. It’s just someone else has come up with a new and better business model – and they didn’t. Amazon and Costco are among the better known disruptive business models now selling furniture, mattresses and appliances; usually with free shipping. IKEA rewrote the book on disruptive business models. They design their own furniture and accessories, source them globally while requiring vendors to meet their specifications and target price points, use a flat-pack RTA (ready to assemble) product format on bulky items to reduce production, shipping and warehousing costs. All items (except major appliances) are exclusive to them and carry their brand. This innovative business model has made them the second largest furniture retailer in Canada and number one in the world. Sleep Country Canada disrupted the Canadian mattress business by being the first to create a national chain committed not just to the product category and its accessories but to a high level of customer service and intensive promotional advertising. Barrymore, the Toronto-based high-end upholstery producer sells directly to consumers. That’s a gutsy business model we may see more of. Local, independently family-owned furni- }

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What are you doing to provide your target customers with furniture and appliances that serve their specific and changing needs? Are you ahead of the curve, behind the curve – or did you not even know that there was a ‘curve’?

IKEA, the Swedish global home furnishing giant, has been a disruptive force in furniture retailing by figuring out its own way of sourcing product for its 361 stores around the global. It designs its own assortment and then finds a manufacturer capable of making it to their specifications and target price points.

ture stores are disappearing across the country as huge chains like Leon’s, The Brick and BMTC-owned Brault & Martineau in Quebec continue to grow. A friend of mine in the United Kingdom recently sold his 36 ‘bricks and mortar’ bedroom stores and created two very clever e-businesses, Secret Linen and Button & Sprung, a bed and mattress purveyor. He decided to be the disruptor rather than the victim of disruptors, and he completely changed his business model to do it. So, how might you change your business model by changing what you sell or how and where you sell it? Or, are you so buried in the day-to-day running of your business that you never take time to think about such things? If your business model is fundamentally flawed, all the fine-tuning in the world won’t save you.

GEOGRAPHIC 4 DISRUPTIVE LOCATIONS.

If you’re a furniture manufacturer, you’ve certainly lived through this one over the past 20 years. Much of the North American industry has been decimated by Asian competition. Even if you moved your production to Asia, the big chains and buying groups are buying directly from the same factories that are making your product – and you’re left with a shrinking customer base. We are seeing some manufacturing returning to North America (re-shoring) but the big problem has become where will we find the skilled production people (cabinet makers, upholsterers etc.) that it originally took generations to create and were displaced in the rush to the Pacific Rim? To create a competitive advantage as a domestic U.S. manufacturer, Rowe Furniture committed to delivering custom upholstered pieces in just two weeks, rather than the usual eight to ten weeks. They embraced lean manufacturing principles to make it happen. Employees are more productive, they make more money and Rowe retailers and their customers are delighted. If you’re a manufacturer, what is your ‘location’ strategy? What are you doing to be relevant, competitive and profitable?

40 HGO merchandiser

5 DISRUPTIVE SOCIAL CHANGES.

This is an interesting area. Changes in society, our values and how we live can have a major impact on business. For example, cremation is now the ‘end of life disposition’ choice for 65% of North Americans. People are opting for a $300 urn instead of a $12,000 casket. And with the general decline of religion, many folks are replacing a solemn funeral service in the funeral home chapel with a celebration of life at the deceased’s favourite pub or golf club. Because of this, there are 7,000 fewer funeral homes in the North America than 10 years ago. Many funeral homes are staying in business by offering pet funerals. What are the societal changes that are affecting our industry, particularly in large urban areas? It’s that more and more people are living in very small condos or apartments where traditional sizes and styles of furniture simply don’t work. IKEA has picked up on and exploited this trend very successfully. They show complete rooms furnished with furniture and accessories ingeniously designed for compact spaces. Many of the pieces include extra hidden storage or serve multiple functions. What are you doing to provide your target customers with furniture and appliances that serve their specific and changing needs? Are you ahead of the curve, behind the curve – or did you not even know that there was a ‘curve’? So, there you have it. Which of these five disruptions have come or are coming to your market? Will you be the leader, a quick adopter or a victim? Sit down with the best minds and hearts in your business and revue the five kinds of disruption and determine what your response will be. Get specific about what needs re-thinking, fixing or doing in your business. Determine what will be done, by whom and by when. Then, follow up. ‘Failure to execute’ is the big killer in many businesses. Don’t let that happen in yours. If you have any thoughts or questions on the subject of ‘disruption’, innovation or market leadership, I’m easily reached at donald@donaldcooper.com. HGO A regular contributor to Home Goods Online, DONALD COOPER, MBA, has been both a world-class manufacturer and an awardwinning retailer. Now a Toronto-based business speaker and coach, he helps business owners and managers 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 free, monthly management e-newsletter, go to www.donaldcooper.com.

INDUSTRY CALENDAR January 21 to 24, 2016 INTERIOR DESIGN SHOW Metro Toronto Convention Centre North Toronto www.interiordesignshow.com

September 10 to 11, 2015 HIGH POINT PRE-MARKET Downtown High Point High Point, North Carolina October 17 to 22, 2015 HIGH POINT MARKET High Point, North Carolina www.highpointmarket.org November 19 to 21, 2015 ANNUAL CONFERENCE QUEBEC FURNITURE MANUFACTURERS ASSN, Manoir Victoria, Quebec City www.afmq.com

December 2 to 3, 2015 IIDEX CANADA Toronto Convention Centre Toronto www.iidexcanada.com January 18 to 24, 2016 IMM COLOGNE THE INTERNATIONAL INTERIORS SHOW Koelnmesse GmbH Cologne, Germany www.imm-cologne.com

February 21 to 24, 2016 ALBERTA GIFT FAIR Edmonton Expo Centre Edmonton, Alberta www.cangift.org March 1 to 5, 2016 MALAYSIAN INTERNATIONAL FURNITURE FAIR Putra World Trade Centre Kuala Lumpur, Malaysia www.miff.com.my

January 24 to 28, 2016 LAS VEGAS MARKET World Market Center Las Vegas, Nevada www.lasvegasmarket.com January 31 to February 4, 2016 TORONTO GIFT FAIR Toronto International Centre Toronto Congress Centre Mississauga, Ontario www.cangift.org

March 13 to 16, 2016 PRIMETIME Orange County Convention Center Orlando, Florida nationwideprimetime.com

February 4 to 7, 2016 TUPELO FURNITURE MARKET Tupelo, Mississippi www.tupelofurniture market.com

March 20 to 23, 2016 QUEBEC GIFT SHOW Place Bonaventure Montreal www.cangift.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 Stearns & Foster Tempur Sealy Canada 145 Milner Avenue Scarborough, ON M1S 3R1 T: 800.268.4414 www.stearnsandfoster.ca Page 7 Las Vegas Market 475 S. Grand Central Pkwy. Las Vegas, NV 89106 T: 702.599.9621 F: 702.599.9622 www.lasvegasmarket.com

Page 11 Zucora 552 Clarke Road London, ON N5V 3K5 T: 800.388.2640 www.zucora.com Pages 14-15 Mega Group 720-1st Avenue North Saskatoon, SK S7K 6R9 T: 306.242.7366 F: 306.242.5651 www.megagroup.ca Pages 22-23 Serta Canada/ Star Bedding Products 40 Graniteridge Road, Unit #2 Concord, ON L4K 5M8 T: 800.663.8540 www.sertacanada.com

Pages 28-29 Cantrex Nationwide 3075 Thimens, Suite 300 St-Laurent QC H4R 1Y4 T: 514.335.0260 F: 514.745.1741 www.cantrex.com Page 33 Magniflex 1000 5th St., Suite 220 Miami Beach, FL 33139 T: 905.481.0940 www.magniflex.com Page 35 Domus Vita Design 50 Acadia Ave. Suite 100 Markham, ON L3R OB3 T: 905.513.6687 www.domusvitadesign.com

Page 38 Protect-A-Bed 1500 S. Wolf Road Wheeling, IL 60090 T: 519.822.4022 www.protectabed.com Page 41 Tempur-Pedic Tempur Sealy Canada 145 Milner Avenue Scarborough, ON M1S 3R1 T: 800.268.4414 www.tempurpedic.ca Page 44 Home Goods Online P.O. Box 3023 Brighton, ON K0K 1H0 T: 613.475.4704 F: 613.475.0829 www.HomeGoods Online.ca

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