HGO Merchandiser Spring 2015 by MediaEdge

Michael Knell’s

HGO merchandiser HomeGoodsOnline.ca

SPRING 2015

Volume Four, Issue 2

E-commerce: the sleeping giant awakens Matelas Bonheur: finding new ways to stand on top Welcome to the new Canadian Furniture Show The modern glitz of IDS Donald Cooper on doing the right thing

JIM SUNDERJI and the creation of a

Dynasty ✽

CONTENTS

FROM THE EDITOR GET YOURSELF TO MARKET

Events like the Canadian Furniture Show need to be about more than selling and buying product. They need to be about finding ways for retailers and vendors to collaborate in the search for new ways to generate sales and more importantly profit.

PROFILE STANDING THE TEST OF TIME

Any business dealing in commodities has its work cut out for it. It takes a special company to stay on trend, attract new customers, grow its brand and bring a little something extra to the table to stay on top. Montreal-area mattress king Matelas Bonheur has thrived for 30 years doing just that — and they’re not afraid to embrace new and different ways of reaching out to increasingly knowledgeable and tech savvy consumers. Profile by Ashley Newport.

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SPOTLIGHT CREATING A DYNASTY

The word “dynasty” is a lofty, elegant one imparting tradition, intergenerational co-operation and profound staying power. For that reason, it’s fitting entrepreneur and philanthropist Jim Sunderji, founder of Dynasty Furniture, was named the 2015 recipient of the Lifetime Achievement Award by the Canadian Home Furnishings Alliance. Under his leadership, this upholstery maker has grown into a two-location powerhouse with a workforce of 600 people. Story by Ashley Newport.

MARKET REVIEW IDS ALL ABOUT GLITZ, GLAM AND THE MODERN FLAIR

ON OUR COVER: The current and founding leadership team at Dynasty Furniture, the father and son duo Faizel and Jim Sunderji. Jim is set to receive this year’s Lifetime Achievement Award from the Canadian Home Furnishings Alliance.

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This design-oriented trade event is gaining influence, particularly with residential interior designers and design savvy consumers. This alone makes this an event worth paying attention to, as it gives some insight in the consumer’s evolving interest in fashion and design trends when it comes to the home. Our review is from Ashley Newport.

TECHNOLOGY THE FLEDGING GIANT AWAKENS

E-commerce is the fledgling giant that has been mostly asleep in Canada. But this giant is showing signs of waking up, an event with the potential to be real game changer when it comes to how consumers shop and buy furniture, mattresses and major appliances. It will also change how retailers do business. Gary James researched and wrote this report.

CHART CANADA’S MAJOR FURNITURE E-RETAIL PLAYERS

An overview of the major players in Canada’s e-commerce scene. Some of them are furniture, mattress and major appliance specialists but most are not. Many of them operate a brick-and-mortar chain of stores, but many don’t. But each of every one is emerging as a competitive threat to the tradition brickand-mortar furniture store and will help change how the consumer shops. Researched by Gary James.

MARKET PREVIEW A NEW AND IMPROVED CANADIAN FURNITURE SHOW

For the past 18 months, the organisers have been working to revitalise and rebuild this country’s only national furniture industry event. They’ve reached out to industry stakeholders, changed the dates and the schedule and invited the public. Now, we’re waiting for the opening bell. Our report is by Michael J. Knell

ON RETAIL YOU CAN’T BUILD A BUSINESS ON BROKEN TRUST. DO THE RIGHT THING.

It doesn’t take the Competition Bureau to ruin your business. A customer can do it quite quickly. The best way to build a solid relationship with customers is simple: No games, no tricks, no lies. Become the customers trusted and respected voice of authority, and watch how they respond. Donald Cooper explains.

INDUSTRY CALENDAR & ADVERTISERS’ INDEX

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

Get yourself to

MARKET

MICHAEL J. KNELL

Just a few days after this Spring edition is published, the first Canadian Furniture Show will open at the International Centre. Everything you need to know about this country’s only national furniture, mattress and major appliance industry event can be found both on HGO’s home page and later on in this issue

VERYONE IN THE INDUSTRY I SPEAK WITH SAYS IT’S OF VITAL

importance our industry have its own national event – a place where we all come together not just for the purpose of buying and selling but to learn from each other and build on our sense of community as well. Markets have changed over the past decade. It’s primarily because retailing has changed and the way consumer shop and buy has changed. We all know this. A lot of us don’t like it, but nonetheless that’s how it is. If you are reading this and you are a retailer who hasn’t made travel arrangements to attend CFS, I have really only one thing to say: get off your duff and get on the phone and get yourself to market. And when you get there, don’t be timid. Don’t hesitate to demand things from those resources who want your business. And if you are reading this and you’re a supplier to Canadian furniture, mattress and major appliance retailers and you’re not exhibiting on the show floor: what’s the matter with you? There may be all sorts of reasons why you’re not showing. It’s the wrong time in your product development cycle. You think it costs too much. Those things don’t matter. What matters is the one-on-one time the leadership of your company has with those independent retailers. My personal thinking about markets has changed in recent years. I’ve come to agree with Albert Marrache, president of Phoenix AMD International who believes markets shouldn’t be just about selling product. It should be about vendors helping independent retailers find new and better ways to make profit. Markets should be about strategy, merchandising and thinking about new ways to reach the consumer. If that were the indeed case, then attending the Canadian Furniture Show wouldn’t be optional for either retail buyer or supporting vendor. It would be vital for everyone.

HGO merchandiser SPRING 2015 • VOLUME FOUR, ISSUE 2 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 Donald Cooper Gary James Ashley Newman ART DIRECTOR Samantha Edwards Sam I Am Creative samiamcreative@bell.net IT DIRECTOR Jayme Cousins In House Logic websmith@inhouselogic.com PUBLISHED BY Windsor Bay Communications Inc. P.O. Box 3023, 120 Ontario Street Brighton, Ontario K0K 1H0 T: 613.475.4704 F: 613.475.0829 Michael J. Knell, Managing Partner PUBLISHERS OF

HGO This Week Home Goods Online.ca

© 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

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A presentation by award-winning designer and 2015 SHOW SPOKESPERSON KAREN SEALY

MORE THAN

200

OF THE GREATEST NAMES

Industry party, awards, trends, new floor plan, new exhibitors, gala, consumer day,

This show means

AND MUCH MORE!

business. A fresh, fun and fabulous presentation by

OVER

STEVEN AND CHRIS

400,000

sq. ft. of furniture showrooms

June 4-7, 2015 The International Centre Toronto, Ontario

Canadianfurnitureshow.com HomeGoodsOnline.ca

PROFILE

Seen here is the exterior of Matelas Bonheur’s store in the Rosemere district of Montreal – one of 15 locations, soon to be 16, across the city.

STANDING THE 8 HGO merchandiser

TEST OF

TIME

VERYONE IN THE MATTRESS INDUSTRY, FROM manufacturer to retailer, knows growth can be a challenge. One of the most important commodities in a person’s home, the mattress gets little attention compared to other pieces of furniture and appliances. For this reason, specialists like the Montreal-based Matelas Bonheur have to get creative to grow their brand and keep on track by offering a plethora of mattress and sleep products while dolling out sleep advice and education to consumers. They also have to abreast of modern marketing tactics; maintain a blog and a strong social media presence while taking a customer-oriented approach. Furthermore, they can’t ever shy away from promoting higher price-point products to consumers looking for something that will positively affect their sleep patterns and stand the test of time. Matelas Bonheur was founded in 1985 as a single boutique in the city’s Ste-Genevieve area, selling mattresses and bedding accessories. Over time, their attractive price points and attentive service led to steady growth, allowing the bedding specialist brand to open up 15 locations in and around the Greater Montreal Area. “Normand Bachand started Matelas Bonheur as an industry outsider with a vision of changing the mattress buying experience. Turn the clock 30 years later and he’s still working in the head office every day,” says Anthony Lionetti, director of marketing and development at Matelas Bonheur. “It’s a real family-feel environment here and it’s a great place to work. Most of the employees have been here for minimum 12 years now. We all enjoy coming in every single day and it’s not easy [in this industry]. We work hard, but it’s fun.” The positive energy in the office and on the floor seems to trickle down to customers, who have remained astoundingly loyal to the brand and, one would presume, spread the word. For Lionetti, one key to success has been the personal touch when it comes to service. “Our goal has always been to find [a customer] the right mattress at the right price, not any mattress at any price,” he explains. “We look at each } HomeGoodsOnline.ca

The brain trust behind Matelas Bonheur, Montreal’s oldest mattress retail specialist (from left to right): Joe Capuana, head trainer and sales support director; Nicolas Perreault, human resources director; Francoise Lefebvre, sales director; Anthony Lionetti, marketing director; and, Normand Bachand, president and founder.

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purchase through the customer’s point of view. What do they need? Each client is different. We match comfort, support and price for every individual customer that walks through the door. Better nights mean better days.” In terms of brands, the company’s selection is vast and includes Green Sleep, MatTech, Sealy, Serta, Zedbed and more. As for other products, Matelas also offers box springs, adjustable beds, linens, pillows, bed frames and accessories. It’s also careful to ensure customers can purchase both chic and on-trend products as well as old faithfuls – so people looking for niche green products can be satisfied alongside those looking for the latest mattress from mainstays such as Sealy or Simmons. The company is also careful to offer customers various options at a slew of fair price points. “In terms of price, we used to be all over the map in our earlier years,” Lionetti says. “We’re focusing more on mid- to higher-range price points [right now]. I’d say the average ticketed price is $1,000 to $2,000. Our clients are different now and more educated in terms of products and they want a good mattress to solve a sleep issue or problem.” To Matelas, sales are about more than pushing a mattress on someone who just wants to get in and out. To cater to a more educated consumer – one who, as Lionetti said, might have sleep issues to address – they ensure the associate on the floor is well versed in not just as every aspect of the product but of the entire company. “As the mattress industry in particular isn’t well understood by most outsiders, we felt it was best to train our own staff. So, we created our own training program that lasts about four weeks,” says Lionetti. “Each new hire will visit five different stores where each store manager is specialised in a different area, including

product knowledge; sales training; assessing customer needs and matching them; POS software; and, company policies and conditions. “They also visit the manufacturers that we work with to gain more product knowledge. They can see every type of foam and coil being made. After each week, the lead trainer evaluates the new hire and determines if he/she needs more support in a given area,” he adds. A good sales team also has to function well in a high stress, highly competitive environment. Although Matelas has grown exponentially over the years and offers Montreal-area customers numerous locations, it still has to grapple with big city competition. “Everyone is here [in Montreal],” Lionetti points out. “We’ve got big box and specialty stores. But we’ve been in business almost 30 years and have 15 stores. We have one more store opening in mid-May in the south end of Montreal in the Dix30 area. It’s an area where you can shop and sleep and eat.” Maximizing your presence in high-density areas is certainly helpful, but it doesn’t change the fact the mattress retail environment can be a tough one. The situation in Quebec is also direr, with retailers reporting lagging sales rates when compared to the rest of Canada. When an already challenging sales environment is compounded by a difficult region, a company has to ensure it’s top of mind among consumers and has good growth plans at the ready. It also needs to make sure its bones are tough enough to withstand the ebbs and flows of the economy. “We have a good amount of value and we can negotiate excellent rates with our partners and suppliers,” says Lionetti. “Having 16 stores sure helps increase our purchasing power, which makes our pricing very competitive.” }

HomeGoodsOnline.ca

Looking inside one of Matelas Bonheur’s 15 stores, all of which have a family-friendly feel and floor a broad array a products from manufacturers such as Zedbed (bottom left) and Green Sleep (right).

That said, Lionetti acknowledges it can be an uphill battle – albeit one the retailer is well equipped to face. “Next year will be our 30th year in business and our steady and calculated expansion has consistently helped us throughout the years,” he says. “Although business doesn’t come easy these days, we are still managing to outpace our competition as we have moved sales from the low-to-mid end bracket to the mid to highend, where disposable income seems to be less affected. Our stores and product offering has also been upgraded with higher-end products and accessories and we’ve more into specialty bedding. As competition in this sector is less aggressive, we can definitely see our growth continue for the upcoming years. People are looking for a product, not a price.” The shift in price points is one of the more interesting aspects of Matelas’ story — and they’re certainly not the only company to realize that emphasizing higher-end goods, even in a delicate post-recession economy, is by and large a good thing. Indeed, it seems strange that any company would promote mid-to-highend goods when penny pinching still seems to be the order of the day, but Matelas (like others in the industry) have come to understand that consumers want something they feel comfortable investing in — something that won’t need to be fixed or replaced in a few short years. The company also acknowledges that, while a swing towards pricier products is important, it’s also crucial to maintain offerings that appeal to customers on a budget.

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So, when did the shift towards higher-end pieces start to take place? “The shift started post-2008,” says Lionetti. “But [a more gradual shift] started about 10 years ago. You can’t go from selling a $799 to a $2,000 mattress overnight, but price was never an object for us. We still deal with Simmons, Sealy and Serta and we wouldn’t turn our backs on that clientele.” Challenges aside, Matelas is optimistic they can hold their own in their market while refusing to play in the all-too low price points. “We have managed, unlike many other companies, to deal with the fallout of 2008 without losing our values in making sure to focus on medium to high-end consumers and not follow the price race to the bottom, as there are few winners in that situation,” Lionetti believes. “We consistently search out for products that are exclusive and profitable all while focusing on the advantages of purchasing at Matelas Bonheur, such as service, reputation, product quality and selection and lastly price.” While important for any merchant worth his or her salt to carefully consider margins and pricing; it’s also important to stay relevant and on trend. Matelas has embraced some newer, trendier product offerings and has managed to maintain a very modern social media presence and a life-long commitment to the green movement. “Although we have a large selection of innerspring products, our specialty mattress selection has been consistently taking up more floor space each year as our consumers are more educated and willing to spend extra dollars

“ We consistently search out for products that are exclusive and profitable all while focusing on the advantages of purchasing at Matelas Bonheur, such as service, reputation, product quality and selection and lastly price.” on specialty beds in order to reap those extra benefits,” he says, adding, “Currently, our selection of latex mattresses has been outpacing memory foam and coil and now makes up about 20% of our product mix. People seem to spend more time cocooned inside and people like that latex sleeps cooler and is good for older clientele in terms of mobility.” Lionetti says it also helps the sales team truly believes in the benefits of latex products (such as those produced by MatTech) while the clientele is open to them because of their European origins. In terms of web presence, Matelas has done its best to stay ahead of the curve. “Our e-commerce platform has been running for five years and we recently refreshed our website in terms of look and user interactivity,” Lionetti says. “We’ve focused on it in the last year and we are now selling online. We’re not playing the discount game and we’re very transparent with our pricing online and all our specs are there. Because the industry can be so secretive, purchasing a mattress is not something people always look forward to, so we try to make it more pleasant for them.” Matelas also has a strong social media presence, something still slightly rare among more established family-owned businesses in the industry. “Our social media presence has helped tremendously,” says Lionetti. “We’ve been told we have one of the best sleep blogs online. We’re not a traditionally cool company like Porsche or Tag Heuer and our customers don’t really want to read about mattresses but rather want sleep advice. We have a vast amount of articles that people are referred to from our blog and now we’re a sleep information authority with Google. “We help people with sleep tips and cleaning tips and we also push promotions through social media,” he continues, adding, “We’re creating a community of costumers who like our wealth of knowledge. We have over 7,500 ‘likes’ on Facebook and that makes us the most followed mattress company in the province. People are listening to social media.” Matelas is also focused on staying as green as possible, something Lionetti says stems not from trends, but from a constant commitment to preserving the beauty of the community.

“Staying green is not about profits,” he maintains. “We live in the communities our stores are in, so it’s about caring for those communities. We offer Green Sleep and they’re a more natural product with natural wools, cottons and mostly natural latex. We’ve seen an increased demand for green products, but since the beginning we’ve been environmentally conscious. We take everything [all the packaging] back after a delivery for recycling. We don’t leave anything at the customer’s home.” Matelas goes beyond recycling packaging – they also recycle the mattresses themselves. In 2003, the retailer began storing unusable mattresses, box springs and plastics to ensure they were recycled. Some older mattresses are also given to people in need after being cleaned. In terms of growth, does Matelas Bonheur intend to seek an audience outside their longheld home turf? “There’s still more growth potential within the Greater Montreal Area. We’re not closing the door on other projects outside of Montreal if they make sense, but there are no plans for that at this time.” 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.

This store has a display of European-style pillows under the Oxygen label as well as mattresses from MatTech, a small Quebecbased manufacturer.

HomeGoodsOnline.ca

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HomeGoodsOnline.ca

SPOTLIGHT

Creating a DYNAST The word “dynasty” is a lofty, elegant one imparting tradition, intergenerational co-operation and profound staying power. For that reason, it’s fitting entrepreneur and philanthropist Jim Sunderji, founder of Dynasty Furniture, was named the 2015 recipient of the Lifetime Achievement Award by the Canadian Home Furnishings Alliance. Under his leadership, this upholstery maker has grown into a two-location powerhouse with a workforce of 600 people. BY ASHLEY NEWPORT

N EARLY JUNE, ZAHER ‘JIM’ SUNDERJI WILL JOIN A SMALL,

Jim and Rosy Sunderji are seen here in the administrative centre of Dynasty Furniture in Calgary.

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exclusive club with less two dozen members when he accepts the Lifetime Achievement Award from the Canadian Home Furnishings Alliance at a gala dinner being held in his honour. The Tanzania-born founder of the Calgary-based Dynasty Furniture will join a select group the includes the late Orville Mead, president of Durham Furniture; Pat Thody, formerly president of mattress major Simons Canada; Richard Magnussen, chairman of Magnussen Home; Art DeFehr, chairman of Palliser Furniture; and, last year’s honouree, Bob Kay, chairman of mattress specialist Springwall Sleep Products. The CHFA established the Lifetime Achievement Award in 2000 to recognize those individuals who over their lifetime have made exemplary and sustained contributions to the Canadian furniture and home furnishings industry as well as the communities in which they live. It doesn’t just honour someone who has persevered and succeeded in what can be (and is) a challenging and ever-changing industry. It recognizes someone who has not only grown and sustained a successful business – which Sunderji certainly has – but who has also contributed positively to the local and, in his case, the worldwide community. After getting to know him, it makes sense Sunderji has chosen to support the Aga Khan Development Network (AKDN), an organisation working with underprivileged communities in Africa, South and Central Asia as he, himself, is very much a citizen of the world.

The company’s main plant in Calgary has about 340,000 square feet of production and office space. In all, Dynasty employs some 600 people.

STY “I was born in Tanzania and I moved to Canada in 1971,” the 67-year old Sunderji explains over the phone, having carved out time to call from India, where he was traveling with his wife – someone he credits as being central both to his personal and to Dynasty’s long-lasting success – Rosy. “I went into the furniture business in 1975 after getting an electrical engineering degree from the Southern Alberta Institute of Technology (SAIT).” The jump from engineering to furniture might seem strange, until its realised the Sunderji family has a long and storied history in the global furniture market, bringing considerable experience and expertise with them when immigrating to Canada. Sunderji and all three of his brothers became well-acquainted with the industry while living in East Africa. Their father had always worked in furniture and, along with imparting trade secrets, also drove home the importance of strong business ethics and solid relationships. “My father worked in the furniture industry in Africa,” Sunderji says. “We all had mattress backgrounds. In 1975, we bought a Therapedic Sleep

Products franchise and started a plant in Calgary. I soon realised there was a need for upholstery manufacturing in Canada and in 1979 I went into [that sector].” Eventually, all four Sunderji brothers decided to tackle different product categories within the industry while he focused on upholstery. (One brother, Dean, is the president and chief executive officer of promotional case goods producer Dynamic Furniture.) “My father had a retail store in Tanzania and also what we called a cottage mattress industry where he had employed people to build mattresses. He sold them in his retail store. My brother Sam had a British mattress franchise in Nairobi (Kenya) called Vono. In 1975, when we first went into mattress manufacturing business, it was a joint decision between my brothers and me. “After becoming familiar with the furniture industry in Canada I realized there was a need for upholstery manufacturing plant in western Canada,” Sunderji continues, “and I diversified into furniture manufacturing and that is how Dynasty Furniture was started in 1979.” }

Faizel and Karina Sunderji (standing at top left) are seen with management team at Dynasty Furniture. Seated at bottom right are Rosy and Jim Sunderji.

Dynasty is one of the few Canadian furniture makers operating production facilities in both Western and Eastern Canada. Seen here is its 200,000 square foot plant in Mississauga, Ontario. HomeGoodsOnline.ca

Top: Jim Sunderji is very involved in the Aga Khan’s education service, particularly with the Rural Education Advancement Program (REAP), in Gujarat, India. This project provides quality pre-primary education including health, hygiene, and community awareness services. Middle: Rosy and Jim Sunderji are seen here with a group of prekindergarten aged children who are taking part in the Rural Education Advancement Program, organised by the Aga Khan.

Jim Sunderji still enjoys the business. “I enjoy what I do. The business is very interesting and challenging. Over the years, I have met some very nice people and some of them have grown with me. It is a very satisfying feeling to see others grow as well. It is hard to believe I have been in furniture business for 40 years.” Over the past 36 years, Dynasty has grown exponentially. What was once a small western Canadian operation located in a 10,000 square foot building with a modest (but still impressive) 30 employees has grown to employ over 600 people in two manufacturing facilities. In 1984, the company stretched eastward and opened a plant in Mississauga, Ontario. The GTA location boasts 200,000 square feet of space and employs over 150 people while the Calgary plant – which Dynasty moved to in 1985 – occupies a spacious 340,000 square feet. Indeed, Dynasty may be the only upholstery maker in this country with manufacturing capacity in both Western and Eastern Canada. The company has also kept up with the times. Emphasising the importance of style, the brand offers fashion-forward fabrics in various colours, shades and textures and allows customers generous customization options. Customers can even mix and match fabrics and textures online to get a feel for the furniture outside of the showroom. While no doubt a great success story – and one that remains very much a family concern with son Faizel and his wife Karina taking charge of daily operations – Sunderji is honest about the challenges the company is facing. He also thinks change can be beneficial.

“Dynasty started from scratch,” he says. “We’ve been through changes with NAFTA and far east imports. It makes the industry interesting. We’ve had to survive challenges. We’ve also seen a lot of variety in the furniture itself, especially as we’re exposed to different furniture from around the world. In 1979, it was all from the U.S. Now there’s some from Italy and the east, especially in the last 10 years.”

You would be forgiven for wondering whether working in the furniture industry in Africa could truly prepare someone for operating a similar business in Canada. The cultural differences between Canada and Tanzania can be vast and difficult to navigate. Everything from the manufacturing process to customer service can vary. That said, Sunderji made his transition to Canada an easier one by drawing on his vast crosscultural experiences and applying the principles of ethics and relationship building that hold any business – no matter its location – together. “I was born in a small village in Tanzania, East Africa located on Lake Victoria, the source of the River Nile and on the border of the world famous Serengeti National Park. After completing my primary education in this small village, I moved on to complete high school in Moshi Tanzania, on the foothills of Mount Kilimanjaro,” he explains. “My post-secondary education was in agriculture, specializing in Range Management at Egerton College in Kenya. Upon graduating in 1969, I returned back to Tanzania to work for the government. My first assignment was at a Dairy Farm Research Centre in Tanga, Tanzania on the coast of Indian Ocean. That is where I met my wife Rosy. We got married in November 1970. In November 1971, we immigrated to Canada. After spending a short time in Edmonton, we moved to Calgary.” Sunderji says the big move turned out to be a bit of a shock. “Canada was a very different country from Tanzania. Not only did we have to adjust to the weather, but we also had to learn to do business and the daily routine differently,” he }

“[Charitable] work is satisfying and it has a huge impact on me and my wife and family. It’s satisfying to see young children do what they could not do otherwise.”

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THE JOURNEY TO DYNASTY

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3D PRINTING

Faizel and Karina Sunderji (left), Dynasty’s current leadership team is seen here with Rosy and Jim Sunderji on the production floor at the company’s Calgary plant.

recalls. “We were very fortunate that in East Africa, English was the median of education and we were very fluent in both written and spoken English. My first job in Canada was with an insurance company as a salesman, which involved a fair bit of traveling. In 1972, we were expecting our first child and I did not want to be on the road. “So I took up a job working at Canadian Pacific Railway in Calgary and also got admission at SAIT in a three-year program in electrical engineering,” he continues. “I worked and went to college, both full time, and after graduating from SAIT I worked for an electrical engineering company for a short period. In the meantime my parents and my siblings also migrated to Canada.”

THE AGHA KHAN DEVELOPMENT NETWORK

Having lived, worked and studied in several vastly different countries, Jim Sunderji’s foray into international development and early childhood development should come as no surprise. Sunderji works with the Agha Khan Development Network (AKDN) because he’s particularly concerned children in developing countries are the most adversely affected by warfare and poverty. He’s become passionate about providing them with the tools necessary to develop into healthier, more educated adults. “The AKDN is a charitable organization and works with the underprivileged communities in third-world countries to improve the quality of life by providing basic needs like education, health, housing, humanitarian services, rural development and much more,” he explains. “As we all know, the critical period of human development is in early childhood development (ECD). Underdeveloped countries are lagging behind hugely in providing for this need,” he continues, adding, “There is a great need in terms of quality infrastructure, qualified and trained teachers, health and hygiene and community awareness. My wife and

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Jim Sunderji, chairman of upholstery specialty Dynasty Furniture and this year’s Lifetime Achievement Award honouree, believes 3D printing – a technology that has already found itself in the apparel business – could soon make its way into furniture manufacturing. This is a relatively new design tool. For those who haven’t been exposed, it’s the process of making a three-dimensional object using instructions from a digital file. 3D printed furniture might look more modern, but as tastes become less conventional, upholstery companies might indeed produce a few funky and innovative pieces to satisfy the more daring shopper. To learn more about 3D printing and see a few examples, visit the following web sites: www.youtube.com/watch?v=wdRswasftfI www.wired.com/2014/12/dress-made3-d-printed-plastic-flows-like-fabric/ 3dprinting.com/products/furniture/

I are working with Aga Khan Education Service, India, in the Rural Education Advancement Program (REAP), which is an ECD program in Gujarat. The project provides quality preprimary education including health, hygiene, community awareness, Read for Children Program for parents, publishing story books/pictures books in vernacular language for parents to read to their children, nutritious refreshment and many more interventions.” Sunderji’s grassroots support of charitable endeavors also occurs locally. Dynasty supports Children’s Hospital Foundations, post-secondary institutions, sports teams and other organisations in both Calgary and the GTA. “[Charitable] work is satisfying and it has a huge impact on me and my wife and family. It’s satisfying to see young children do what they could not do otherwise.”

WHAT THE FUTURE HOLDS

While Sunderji has been able to step away from day-to-day operations, he remains heavily involved in the company, splitting his time between challenging but rewarding philanthropic endeavors and keenly watching emerging trends in the upholstery world. “Dynasty will continue to serve the furniture industry and provide a competitive fashion forward product to the consumers,” he says. “Dynasty has ample capacity and in the short term it should continually innovate systems and equipment to remain competitive. In the long term, we have to start thinking of how 3D printing will impact our industry.” Sunderji thinks 3D printing technology has the potential to make a huge splash in the industry and he’s prepared to adapt to the emerging trend. } Continued on page 50

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MARKET REVIEW IKEA Canada, which sells an average of 70,000 kitchens annually, used the Interior Design Show to launch Sektion, which allows the consumer to customise a kitchen to any space at an affordable price.

INTERIOR DESIGN SHOW

ALL ABOUT GLITZ, GLAM AND THE MODERN FLAIR This design-oriented trade event is gaining influence, particularly with residential interior designers and design savvy consumers. This alone makes this an event worth paying attention to, as it gives some insight in the consumer’s evolving interest in fashion and design trends when it comes to the home. BY ASHLEY NEWPORT

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HIS YEAR, TORONTO’S PRESTIGIOUS ANNUAL INTERIOR

Design Show (IDS) ran from January 22-25 at the Metro Toronto Convention Centre and united industry insiders, designers, architects, the media, buyers, dealers and the public for the express purpose of showcasing and promoting the best in home and commercial furniture and décor. There’s no denying the busy and robust show is design-oriented – highlighting elegant faux fireplaces, stunning metallic statement pieces, aesthetically beautiful lighting and hyper-glossy, boldly contemporary pieces. It might seem an intimidating environment to the average mainstream furniture manufacturer who’s used to talking shop at less artistically-inclined trade events, but writing IDS off as too niche might not be wise. Ultimately, it’s a welcoming show that brings international attention to Canadian businesses and offers pieces and concepts at all price points for all industry aficionados. It also offers inspiration to both retailers and manufacturers alike who want to stay on trend.

SO, WHAT IS IDS?

“The Interior Design Show is Canada’s design fair for everyone interested in interior residential design,” explains Judy Merry, vice-president of Informa Canada and director of the Interior Design Show. “[Our primary

A view of Urban Capital’s Cubitat design as seen at IDS this year.

First seen at this year’s Interior Design Show, Cuzco Collection of bathroom vanities and mirrors from Native Trails combines sublime dimpling of hand hammered copper with the rich beauty of wrought iron.

audience is] designers, architects, builders and the design savvy consumer looking for the latest trends and inspiration for the home.” The show, which has been going strong for 17 years, has continued to grow – welcoming more and more exhibitors from all points along the supply chain to the consumer, including such big name brands as Ikea Canada, Urban Barn and Miele. It also offers a plethora of smaller designers with unique products. “It has grown in size and content,” says Merry. “We have more exhibitors, more speakers and seminars than ever before. The exhibitors have also stepped up the design of their booths, year-over-year they get better and better. This year was by far the best.” In terms of booth design, Merry is correct. Almost every booth was memorable, with some bordering on outstanding. The Andrew Richards Design booth was a particular stand out, setting its earthy outdoor furniture inside a perfectly ethereal faux meadow complete with elaborate greenery. The Cubitat booth (more on all of these booths later) showcased an entire home packed into a literal cube and Ikea’s Sektion booth offered visitors a full-size kitchen experience.

WHAT ARE THE BENEFITS OF SHOWING AND GOING?

Strange as it may sound, IDS has wonderful energy. A convention centre, no matter how spacious and bright, can always feel like a confining space when it’s filled with carbon copy booths displaying similar goods — but IDS keeps it interesting by showcasing visually appealing, interactive displays and an enormous swing set (that people were, indeed, swing-

ing on). What’s even better is the positivity radiating from exhibitors. Everyone is happy to discuss their product and the thought, time and inspiration behind it. As trade shows go, it’s anything but ho-hum, and the fun of the designs manifests in people’s attitudes. The show also attracts a large audience, including the average consumer. So, what are some benefits of being at IDS? Exhibitors tend to agree exposure, connections and inspiration tops the list. “The show is wonderful because you have people coming out from all walks of life,” says Taya Cook, director of development for Urban Capital, the Toronto-based condominium builder. “On [some days] you have a lot of industry people and people you work with. [Other days] you have all the trades and on Saturday and Sunday you get to show your product to the general public.” Urban Capital was introducing Cubitat, a new concept geared towards condo dwellers who are interested in purchasing a functional pre-made home customized for a smaller living space. “The idea is architecture as project,” Cook says. “We’re condominium developers and we tried to think of a way we could take our condominium and the typical condo layout and shrink-wrap it into this cube. So everything you would need in your condo is essentially in this 10x10 product, with the idea that you could, down the road, purchase it online or get it shipped to you and customize it and you’re good to go.” Ikea Canada used IDS as a platform to debut their compact kitchen concept known as Sektion. “With Sektion, we can offer the endless possibilities of a beautiful kitchen at an affordable price,” says Alicia Carroll, } HomeGoodsOnline.ca

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Left: Hello Sailor was a popular theme for Urban Barn, the fast-growing contemporary furniture retailer that’s become a fixture at IDS. Middle: Historic Building Product's booth at the Interior Design Show was made entirely of 500-yearold Douglas Fir wood from Toronto's Distillery District. Right:Andrew Richard Designs, the Toronto-based furniture specialist say they notice darker shades were making a comeback at this year’s IDS, so was wood.

design spokesperson for IKEA Canada. “It has a new set of even measurements for cabinets, drawers and doors so customers can customize a kitchen for any space. It also offers several functions in one cabinet, such as drawers within drawers, so the function doesn’t limit the aesthetic.” As for why they show at IDS – and sponsor it – Carroll says it’s all about introducing product to a wide swath of people. “We want to show people that great design doesn’t have to cost a lot of money. You can have a beautiful design that’s functional and affordable so you can have money left over for other accessories,” she explains. Another huge and upcoming player in the furniture scene, Urban Barn, the contemporary retail specialist based in Vancouver, was introducing some stunning copper chandeliers and a nautical-inspired colour palette with on-trend whale and octopus accent accessories. “Today, we are here to present three of the six introductions we’re going to have for spring 2015,” says Sébastien Duhaime Fauteux, Urban Barn’s general merchandise manager. “These products are not in stores, but most of the products will be by the end of February. We’re showing new colours and new inspirations and new trends that meet our customer’s needs. People are looking for a way to make big neutral pieces new and exciting. We’re showing different colour combinations and trends and we’re showing copper as an accent for a collection called Summer Haze with more muted colours. “It’s nice to add a metallic finish in the spring and summer, which is something we see more during the fall,” he continues, adding, [We also have a look called Hello Sailor] that presents a nautical theme that shows yellow and blue paired with white. It’s a bit of a modern look. There’s a bit of the whale inspiration and octopus inspiration as well. A few years back, it was a lot of birds and owls. Our customers tend to look for something that is fresh, exciting and contemporary without sacrificing comfort.” Duhaime Fauteux also praised the show. “The biggest benefit is that people who don’t know about us find out who we are. We have 47 stores in Canada and it’s

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nice to be able to find people who haven’t heard of us. So it’s really great exposure for us. The show tends to be a bit more of a domestic show and today is more of a trade show with media and designers. We get a lot of people from Quebec who come to the show as well.” Other small companies, such as Archilume Lighting, a lighting designer and manufacturer based in Vancouver, say the show is the perfect venue to showcase their product. “Archilume is a minimalist, modern luminary design for decorative accent lighting,” explains Saleem Khattak, company owner and head designer. “It has a transparent design that allows it to be mutable in all sorts of locations. So it solves the designer’s problem of having to coordinate the right light fixture to the right finishes because of its transparency. It’s more about the expression of light rather than its physical form.” For Khattak, the exposure received at IDS is important. “This trade show is a very important for Archilume in Canada because Toronto is the largest market area for new designs to be debuted in the country,” he explains, adding, “IDS is a great place to showcase new design. We’re a new design company and we’re debuting a new line, so it’s good to go right to the center and show the goods. This is also where all the media comes. It’s a great place for us to be.” When it comes to prioritizing access to the Canadian design scene, Khattak isn’t alone in praising IDS. “This show has a very forward thinking group of people who are very progressive in design, so it’s a really good fit for us,” says Naomi Neilson Howard, founder and CEO of Native Trails. The San Luis Obispo, California company was showing a range of rustic sinks and vanities. “People appreciate natural materials and sustainability and I think the way we combine materials that are earthy with a contemporary look, it seems to work really well here. We’ve been in business for almost 19 years. We stock everything in California and we have distributors all over Canada.” Others say that it’s not only the products, but the city, that make the show worthwhile.

“IDS is a show I’ve done for five years and we’ve always been very proud to attend it,” says Jonathan Carter, the group marketing director of Victoria Albert, a company based in the United Kingdom specialising in the design and production of volcanic limestone bathtubs. “It’s wonderful to come over from England to Toronto; it’s been very, very friendly. It’s one of the few shows I can think of that has a great launch party that is very friendly and a little bit more relaxing. It’s a great way to meet some old friends and just get into the mood first.”

WHAT’S TRENDING?

Wood, wood and wood. This year, it seems designers are having the most fun with reclaimed and mixed woods – and no one could help but notice. “I’ve noticed a lot of reclaimed wood and a lot of natural materials as well, “said Urban Barn’s Duhaime Fauteux.” I’ve noticed mixed materials as well, a lot of wood and concrete, wood and metal, a lot of handmade metal. There’s a very natural feel to the products.” Others, such as Archilume’s Khattak, agree that wood is king – for now, at least. “I’ve seen some good and expressive woodwork, actually. [It’s interesting] the way that wood is being formed and bent into almost what seems like compact curves.” Other exhibitors, such as Daniel Cichon, director of business development at Andrew Richard Designs, the Torontobased outdoor furniture specialist say they notice darker shades making a comeback. “Truthfully, it looks like colour-wise, things are going darker this year,” he says. “Last year, I noticed a lot more stark white booths and this year it’s just a darker look for things.”

TO SHOW OR NOT TO SHOW?

“Should small companies show here? I would like it if they were here more,” says Bettine Roynon, a sales consultant with Flor, a Chicago-headquartered company that produces colourful, modular carpet tiles. “From what I hear from other designers, they would also

like it. Most designers know the big names; they know the big fireplace companies and the big kitchen companies. They are familiar, they have sales reps. As someone walking around the trade show, I’d rather see smaller, grassroots stuff.” Another off-the-beaten path exhibitor who took a chance on an intimidatingly glossy show was Historic Building Products, a company that specializes in restorations and historical building products that are more than just a little vintage. It was a noble gamble, adding a little rustic (the booth even smelled like a freshly constructed log cabin – woodsy and earthy) flair to the otherwise high-glam proceedings. “We’ve built our booth out of the Douglas Fir that came out of the Distillery District,” says Rick Davie, the sales manager for the Toronto-based company. “It is approximately 500 years old. We built our booth out of it to show people in the trade industry the sustainability of the product and what you can do with it. People who come by the booth appreciate the old world history. There is no 500-year-old Douglas fir left in North America. Should more people show here? It’s important for exposure. This is the first show that we’ve done, period. We certainly plan to be in future shows, but we needed to start somewhere, and there’s a lot of emphasis on restoration and preserving history.” For others, such as AM Studio Custom Lighting and Glass, showing repeatedly helps build a client base and boosts the company’s profile. “It’s a great show for us,” says Orly Meyer, owner of the Toronto-based specialist. “It can carry us all year long. People come to us and remember us and have brochures from three or four years ago. It’s great exposure. We have customers from both the commercial and retail sectors, it’s a good show. People have gotten to know me. Should small companies come out? Definitely. “I think this is the best show in Canada,” he continues. “You can get exposure and it’s a high-end show, so you can see everything that’s been designed so well. People respect the show and design their booths nicely. It’s a beautiful show, I love it.” } Continued on page 50 HomeGoodsOnline.ca

TECHNOLOGY

THE FLEDGING GIANT

AWAKENS

HILE STILL LAGGING BEHIND THE U.S.

market, online sales in Canada hold significant potential for growth during the next five years, according to Forrester Research’s new Canadian Online Retail Forecast, 2014 to 2019 report. The Cambridge, Massachusetts-based global research and advisory firm estimates Canadian consumers spent $22.3 billion online for products and services in 2014, up from $15.3 billion in 2010. And it projects the country’s volume of online purchasing will grow to $39.9 billion by 2019, or 9.5% of total retail transactions. Currently, 6% of total retail spending in Canada takes place online, compared to 9% in the U.S. According to Forrester, online sales in Canada will grow at a compound annual growth rate of 12.3% over the next five years, far outperforming overall retail, which is expected to rise only 2.6% annually. This growth will be facilitated by a number of factors, according to Peter Sheldon, Forrester’s principal analyst for e-business and channel strategy. They include a “maturing assortment of U.S. and international brands operating tailored online stores for Canadians, the launch of all-new or revamped online stores from incumbent Canadian retailers, a weaker Canadian dollar tempering cross-border online shopping and a newfound confidence that Canadian online shopping experiences have finally come of age.” After many years on the sidelines, Canadians are becoming “more amenable to shopping online and welcome the burgeoning selection of products available in the nation’s online retail marketplace,” Sheldon added. Also driving growth is “an inventive breed of e-commerce vendors that has transformed online shopping into more than a digital transaction, enabling product research, price comparison and loyalty rewards,” research firm eMarketer said in a news release about the potential of Canadian ecommerce. “Shopping options were scarce during the first

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generation of e-commerce development in Canada, but that is changing, with smaller firms and start-ups providing a creative boost to the market.” Those firms include Ottawa-based Shopify, which has built e-commerce platforms for a number of independent U.S. and Canadian home furnishings retailers, and Constant Retail, a sister company to e-commerce site Cymax in Burnaby, British Columbia. In 2013, 15.2 million Canadians made at least one online purchase during the year, according to the New York-based digital marketing research firm eMarketer. Last year that figure was expected to rise 6.5% to a total of 16.2 million Canadians or 54.4% of the country’s population. By comparison, eMarketer estimates 62.5% of Americans bought online in 2014. Music, software and PCs are among the products most actively purchased online in Canada, according to Forrester, with online channel shares ranging from 47% to 61%. Furniture, on the other hand, ranks near the bottom of the list – with just 3% of purchases taking place online – as consumers continue to demonstrate a strong preference for shopping in brick-and-mortar stores, where they can see and touch the product. By contrast, e-commerce accounts for 8% to 10% of furniture sales in the U.S., according to recent estimates from trade publication Furniture/Today. While factors such as “the absence of Canadian retailers in the e-commerce space and the ubiquity of cross-border online retail alternatives continue to inhibit Canada’s online retail growth” across all product categories, Forrester said high shipping costs pose a particularly difficult challenge for merchants seeking to sell furniture online. A study commissioned by Industry Canada in 2013 called The Impact of Logistics Services on E-Commerce in Canada revealed transportation costs place Canadian e-commerce companies at a serious disadvantage. The study compared the cost of shipping a six-pound, medium-sized box from

Toronto to Vancouver (a distance of 4,370 kilometers), using Canada Post’s Expresspost service with the cost of shipping the same parcel from New York to Los Angeles (a distance of 4,443 kilometers), using the U.S. Postal Service’s priority mail service. Both services provide delivery on the second business day after the shipment. The U.S. shipment cost $11.30; the Canadian shipment cost $40.63 – more than three times more. The study also considered shorter routes and, again, there was a distinct cost difference in favour of the U.S. The study also looked at UPS and FedEx rates on both sides of the border, with U.S. rates running 35 to 38% lower. These rate disparities may change, however, as Canada Post moves forward with its major shift in strategy from door-to-door residential mail delivery to e-commerce parcel service. That new focus, accompanied by big investments, is expected to make parcel shipping rates for small packages in Canada more competitive over time. The national postal service already delivers two out of three packages ordered online in Canada, according to an article in BC Business. And the organization’s expanding infra-structure – including a newly opened $200 million distribution center in Vancouver – is intended to lead to an even higher volume of e-commerce activity. Canada Post is investing a total of $1.7 billion in new domestic parcel sorting and logistics facilities nationwide (including new automated plants in Montreal, Winnipeg and Toronto) to improve services for its growing e-commerce customer base, the magazine recently reported. While the impact this activity will have on shippers handling heavier goods such as furniture, mattresses and major appliances in Canada is unclear, the increased volume may lead to new economies of scale and possible rate decreases over time, say industry observers.

Top: Cymax.com offers a full range of furniture categories, from accent chairs and chests to sectionals and sofa tables. Bottom: A recent promotion on leons.ca’s home page offered an instant $100 discount toward any sofa purchase.

GROWING ON TWO FRONTS

Cymax, founded in 2004 by Arash Fasihi, is one of the fastest-growing online furniture retailers in Canada with annual sales exceeding $100 million, according to Internet Retailer magazine. The company started as a small site specializing in audiovideo furniture and, over time, grew into a network of 115 online specialty stores, selling everything from fitness and exercise equipment to luggage. In recent years, the company consolidated all of the e-tail businesses into one central site focused on furniture for home, outdoor and office settings. In addition to Cymax, Fasihi operates a separate business called Constant Retail that provides technology, support and services to other e-tailers in the home furnishings sector. The company offers a turnkey e-commerce solution including web site design and management, online and mobile marketing, order processing, e-payment and logistics. “With Constant Retail, we’re taking the knowledge and expertise we have gained by building our own sites and making it available to other furniture retailers and producers looking to establish a stronger online presence,” said

Fasihi, CEO and president of both Cymax and Constant Retail. Customers include One Way Furniture, M@X Furniture and Everything Furniture. “The portal technology we’ve developed allows us to communicate directly with our vendors, delivery carriers and customers all from within the same program, providing a very efficient platform that does everything from generating business to making sure the product gets where it needs to go quickly and cost-efficiently,” he said. “We also work closely with the vendors to make sure products are packaged properly so transit damage is kept at a minimum.” With its own e-commerce site, Cymax offers consumers a comprehensive assortment of furniture, bedding and home accents across a wide range of price points and styles. The company offers more than 75,000 SKUs from brands such as Bestar, Bush, Coaster, Hillsdale Furniture, Hooker, Lexington, Modus, Prepac, Pulaski, Riverside, Sauder, Simmons, South Shore, Stanley and Steve Silver. In 2015, it plans to expand that offering by 180,000 additional SKUs. } HomeGoodsOnline.ca

The landing pages for IKEA Canada’s website capture the consumers’ attention with a combination of stylish photos and engaging text.

“Our goal is to offer all of the products you would find in a fine furniture store,” said Fasihi. “This year, we’re going to expand the assortment to include more accent items such as lighting and accessories to complement our existing categories and merchandise. We want to be a one-stop shop for all categories of furnishings.” As Cymax expands its assortment, it also will look for new ways to make the online buying experience easier. Along with its current features, such as detailed product descriptions, customer reviews and robust search capabilities, the retailer also plans to add “smarter” landing pages to help consumers find what they need more quickly as well as more design-oriented blogs and tips. “Finding the right chair or lamp can be a difficult task,” said Fasihi. “When consumers shop our site, they gain access to an enormous selection of home and office products in one convenient spot. We save them time and money.” Cymax does about 97% of its business in the United States (where it serves every state except Hawaii), with the remaining 3% coming from Canada. The cost of shipping a bulky product like furniture to distant locations continues to be a big obstacle in Canada, but Fasihi expects rates to grow more competitive as overall e-commerce activity in the country grows and shippers’ volumes increase. “The biggest hurdle standing in the way of furniture ecommerce growth in Canada is freight,” said Fasihi. “There are a lot of ZIP codes to deliver to in Canada and many are located outside of the carriers’ normal delivery zones.” While Cymax offers free delivery on many furniture items sold in the U.S., it has to charge its Canadian consumers based on weight and distance. The company ships to all of Canada except the far north of every province, offering ground shipping, back of truck and White Glove shipping, depending on the destination. All products ship directly from the vendors as Cymax has no warehousing capabilities. “Right now, we don’t service the [Territories] because the cost to ship furniture up there is prohibitive,” said Fasihi. “The price of a $200 entertainment center would more than double when you add in freight to a remote location like Yellowknife.”

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Later this year, Cymax plans to start selling products in Hawaii as a test. If that goes well, it could lead to further expansions of service in Canada. “We’ve noticed that some customers don’t mind paying extra for shipping if they can get the product they really want,” he said. “And we’ll continue to work hard to keep their costs as low as possible.” Fasihi added that he expected Cymax’s sales volume in Canada to double this year. “It’s still very small relative to the U.S., but momentum is growing.”

LEON’S SEES STEADY GAINS

Leveraging its network of more than 75 Leons-branded stores in key markets throughout Canada for fulfillment of orders, Leon’s Furniture is seeing steady gains in the volume of furniture sales taking place online. Products being sold range from small accent items to king-sized mattresses. “Online is the fastest-growing segment of our business,” says Ed Leon, vice president of merchandising for the Toronto-based full-line furniture merchant. “Our brick-andmortar stores generate the most dollars, but our online initiatives are experiencing the fastest rate of growth.” Leon’s web site has had an “add to shopping cart” feature for quite some time. In addition to its own site at www.leons. com, the retailer also is an active participant in furniture. com, an e-commerce site powered by Blueport Commerce. Last summer, Leon’s announced that it had acquired a minority interest in Blueport Investors – owners of Blueport Commerce and furniture.com – joining other major retailers with ownership stakes, including American Signature parent Schottenstein Stores Corp. and Rooms To Go. In August, Leon’s also announced sister company The Brick also would become part of furniture.com, a web portal devoted to selling furniture, mattresses and major appliances to consumers throughout North America. The Brick and Leon’s will continue to have separate presences both online and in their brick-and-mortar stores, Leon said, adding that the partnership with Blueport will strengthen both retailers’ ability to deliver an omni-channel buying experience and meet emerging consumer needs. }

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As more Canadian consumers shift spending from physical stores to online merchants, e-commerce is dramatically changing the way retailers reach customers, making it faster and easier for consumers of all ages to make purchases on the fly

A new report from Forrester Research projects online retail sales in Canada to grow 15% in 2015 to $25.6 billion. Chart courtesy of Forrester Research.

This chart from research firm comScore shows Canadians are making their smartphones one of their most important shopping and research tools

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“When we got into this business a dozen or so years ago, we had the option of investing in a huge team of technical people to get something off the ground or partnering with a company like Blueport Commerce,” said Leon. “Teaming up with Blueport gives us access to top-notch technical support while freeing us up to concentrate on what we do best – merchandising and selling.” In January, The Brick announced it completed the move of its e-commerce operations to Blueport’s SaaS platform, which it says provides optimal viewing and user experience across multiple devices, including desktops, tablets and smartphones. The newest iteration of the platform offers features such as product configuration, which allows customers to view products in different sizes and colors; predictive search; and personalized, search-driven merchandising. “The Brick is focused on Saving You More and we believe our online shoppers will save both money and time while finding the perfect items for their homes on our new website powered by Blueport,” says Jim Caldwell, president of The Brick, headquartered in Edmonton. Leon’s operates its online store as a separate business with its own staff and profit-and-loss statement. The product mix and 60-day price guarantee mirror that of its stores as does the return policy (all sales are final and damaged goods must be reported within three days). The retailer delivers furniture orders within a certain radius of its stores for the same rates as in-store orders – and currently offers free local delivery for purchases over $498. For orders that need to be shipped to more distant locations, Leon’s charges an additional fee. Because visuals play such an important role in selling a design-driven product such as furniture online, Leon’s operates its own in-house photo studio. “The quality of our shots is second to none,” said Leon. “We are very proud of the effort our team puts into building sets and bringing the product to life. We try to make our scenes as attractive and realistic as possible so that consumers can get a good sense of what pieces will look like in their own home.” The site also offers zoom capabilities, providing close-up views of fabrics, finishes and other details. To build awareness of its web site, Leon’s recently changed its logo, replacing the line underneath its name that had said “since 1909” with the site address: leons.ca. The new logo appears on all trucks and advertising, spreading the word that Leon’s serves customers both in its stores and online.

In addition, the retailer reaches out to potential customers by maintaining an active presence on social media platforms such as Twitter, Facebook and Pinterest. It also has added review pages to its site, so that customers can share feedback about specific products they have purchased or seen. Leon’s will enhance the online buying experience going forward by adding new features and functions. Mobile applications are one area of current focus. “Our mobile accessibility was quite limited until a few months ago,” said Leon. “We’ve made some major technical improvements to make our site easier to access.” In recent months, the retailer also has been working hard to update its email list to comply with Canada’s newly adopted anti-spam legislation. The new law requires companies to obtain permission from past customers before sending them any future emails. Leon said the publicly-held and family managed company’s long history as a leading furniture retailer gives it a big advantage as it works to build and strengthen online relationships. “Customers know our name and what we stand for,” said Leon. “That gives them extra confidence when they’re buying online that we’re }

CANADIANS ARE ENGAGED INTERNET USERS Canadians are among the world’s most engaged Internet users, according to comScore, a leader in digital measurement and analytics. They rank 11th among all countries in the average number of monthly visitors visiting sites – topping 25 million – and third in the number of hours each visitor spends visiting sites each month, with an average of 34.6 hours. But while Canadians exhibit above-average search behavior when it comes to desktop Internet viewing, they are increasingly engaging with other platforms for their search activities, including tablets and smartphones, according to comScore’s Canada Digital Future in Focus 2014 report. The research group reports device usage varies throughout the day, with peak activity for smartphones occurring during the morning, tablets in the evening, and PCs and other desktops throughout the day. “Consumption habits have shown that Canadians are more platformagnostic in their digital media consumption as they seamlessly switch devices throughout the day to try and stay current on email, news, social media, TV viewing, etc.,” says the Reston, Virginia-based company. According to comScore, three out of four Canadians own smartphones – well the rates of adoption in the U.S. and other developed markets. This increase in smartphone penetration and 4G connectivity is driving increased usage of mobile content, especially for activities such social media. Increasingly, Canadians also are using smartphones for a variety of shopping behaviors – from researching product features to purchasing products.

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going to deliver the quality they expect. Some other businesses may have a great-looking website but be operating out of a garage, with no way to support and service the customer.” With all its online initiatives, Leon’s goal is to provide a digital experience that supports the customer and the brand “regardless of whether the customer buys online or in the store. Our focus is on providing a positive shopping experience in both venues so that customers can buy when, and where, it’s easiest for them.”

IKEA EXPLORES NEW OPTIONS

Since opening its website ikea.com in 1997, the Sweden-based retail powerhouse has been very conservative with its online presence. It slowly embraced online selling a few years ago, then ramped up its efforts with heavier investments across all the 27 countries in which it has stores last year. E-commerce showed strong growth for IKEA in fiscal year 2014, while the number of store visitors also increased, said Peter Agnefjäll, president and CEO of IKEA Group, in announcing the company’s global results last fall. “We have a clear multichannel strategy. We are becoming more accessible by continuing to improve our existing stores, by opening new stores and by expanding our e-commerce service and in-store-pick and delivery service.” To enhance its ability to service online customers, IKEA recently announced the creation of e-commerce pick-up points in major markets, including Canadian test sites in London, Ontario and Quebec City. A December 2014 article in Business Vancouver reported the Swedish retailing giant plans

PRODUCERS EXPAND PRESENCE For Canadian manufacturers such as Amisco, e-commerce also holds substantial promise. The producer began selling metal beds, chairs, tables and accent furniture online in July 2013 and the channel has generated steady growth ever since. Amisco’s e-tail customers include Amazon, Best Buy, Overstock and Wayfair. “In building our online business, we work extra hard to make sure that these e-tailers don’t compete with our other brick-and-mortar partners,” said Guy Patenaude, vice president of sales. “It’s important that the products and pricing don’t conflict.” To achieve this separation, Amisco develops “parallel lines” of products for its online customers that are different from those offered through its brick-and-mortar retailers. “Neither group has access to each other’s lines, so everybody makes money and is happy. Each group can make the margins they desire without worrying that they are going to be undercut.” Patenaude added e-commerce is likely to play an increasing role for furniture manufacturers and retailers as more and more tech-savvy consumers enter the marketplace seeking the instant gratification that online venues provide. “The winners will be those companies that can get the product to the consumer quickly and without damage.”

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to open as many as 10 such locations across the country within the next year, but no decisions have yet been made, said Madeleine Löwenborg-Frick, public relations manager for IKEA Canada. “While the strategy is clear, the timing, locations and format of the increased accessibility has not been finalized.” Adding a network of small pick-up depots would enable IKEA to extend its reach with consumers in markets outside of major urban centers. It also would respond to an emerging need identified in a new study by Purolator, the Mississaugabased courier company, which found 73% of Canadians want the option to pick up online purchases in a store. “The ambition is to make IKEA more accessible to the many Canadians through a multi-channel environment,” Löwenborg-Frick added. This will be accomplished by initiatives such as increased service offers, new pick-up points and an improved e-commerce interface, “all resulting in our customers having easier access to our products.” To that end, IKEA announced the launch of free Wi-Fi service in all its stores in August 2014. The service will make in-store shopping more convenient by providing customers with the ability to surf the mobile version of its website or download the IKEA Canada shopping app. With this new access to online resources, customers will be able to more easily browse products, scan bar codes, discover special offers, check stock availability, create shopping lists and locate products in the self-serve warehouse. Adding to the convenience, customers can now use the free Wi-Fi service to purchase direct from a mobile device while browsing in-store. “We are continually striving to improve our customers’ shopping experience and to service them in a more sophisticated way,” said Hilary Lloyd, IKEA Canada’s vice president of marketing. “We know our customers are constantly connected and we are now making it more convenient for them to shop and navigate our stores using their mobile devices.” Recognizing customers are increasingly using their smartphones as a shopping companion, IKEA offers easy access to a host of enhanced digital content as part of its annual print catalog. Using the IKEA catalogue app, readers can scan pages marked with an orange “plus” symbol to unlock additional material, including 360-degree room views, videos, image galleries and an expanded ‘place-in-yourroom’ feature that allows consumers to see how more than 300 pieces of furniture would look within their own homes. “IKEA has developed a way to help customers get over the age-old barrier of ‘does this product fit with what I already have’?” said Löwenborg-Frick. At the same time, delivering an “inspirational in-store shopping experience” will continue to be the primary focus at IKEA, Löwenborg-Frick added. “What is interesting is that while we have seen a dramatic increase in e-commerce business, we continue to see annual increases in our store sales.” HGO A regular contributor to Home Goods Online, GARY JAMES is a freelance writer based in Chapel Hill, North Carolina. He spent over 20 years with Furniture/Today, serving as case goods editor and special projects editor, directing the editorial content of Leather Today, Bedding Today, Global Textiles Today and other supplements and sections.

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CANADA’S MAJOR FURNITURE E-RETAIL PLAYERS The following companies are all players in Canada’s e-commerce scene. Some of them are furniture, mattress and major appliance specialists but most are not. Many of them operate a brick-and-mortar chain of stores, but many don’t. But each of every one is emerging as a competitive threat to the tradition brick-and-mortar furniture store and will help change how the consumer shops. Editor’s Note: All data on estimated site visits and page views is from Similar.web, a web site traffic analytics specialist, December 2014. This chart was assembled by Gary James.

AMAZON (www.amazon.ca)

Headquarters: Seattle. Company has warehouses in British Columbia and Ontario, in addition to warehouses in 20 U.S. states. Niche: Company’s mission is to be “Earth’s most customer-centric company where people can find and discover anything they want to buy online.” In furniture, categories include living room, bedroom, dining room, home entertainment, home office and accents. Products can be searched by brand, price, discount and seller. Company’s furniture and décor assortment includes more than two million items. Furniture brands include Ashley, Coaster, Dorel, Homelegance, Leggett & Platt, Sauder, Serta, Simmons and South Shore. Company is stepping up its presence in the furniture category and sent a delegation of 20 buyers to the October 2014 High Point Market. Sells directly to consumers and through third-party vendors online and through mobile apps. Free shipping available in many cases. Many furniture products ship directly from the vendors. Publicly held, with total 2013 sales of $74.5 billion. The electronics and other general merchandise mix category, including furniture, comprised 67% of 2013 North American net sales. According to a recent report by BMO Capital Markets, amazon.ca is the leading player in the Canadian e-commerce space, accounting for up to $1.5 billion of revenue, or about 7%of total Canadian e-commerce sales. The report believes amazon.ca could triple or quadruple its revenues in Canada over the next few years and begin to have a “noticeable impact” over a broader number of product categories. Estimated site visits: 54 million. Page views: 9.09

BERKSHIRE FURNITURE

(www.berkshirefurniture.com) Headquarters: Mississauga, Ontario, where it has one store Niche: Founded in 1999, Berkshire’s goal is “to offer quality furniture at very affordable prices and at the same time provide excellent customer

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service.” Categories include bedroom, dining room, living room, home office, accents and art and décor items. Products can be sorted by price range or “new arrival.” Promotes special pricing online, including clearance items. Offers standard and white-glove service in greater Toronto area at a fee of $75 to $190, depending on quantity. Also offers destination shipping from Niagara Falls to Oshawa on its own truck and other transport services. Also ships to U.S. Estimated site visits: 4,000 Page views: 4.93 Social media: Facebook

office products, pet supplies, sports equipment and much more. In furniture, categories include accents, baby and kids, bedroom, entertainment, dining, bedding and living room. Products can be searched by price and manufacturer. Furniture brands include Abbyson, Avenue Six, Bestar, Dutailer, Legare, Sealy, Skyline, South Shore and Techcraft. Offers standard delivery, curbside delivery, threshold delivery and white-glove delivery, depending on the product and location. Estimated site visits: 10.6 million Page views: 5.90 Social media: Facebook

BEYOND STORES (www.beyondstores.com) Headquarters: Davie, Florida. Niche: Established in 2011, Beyond offers wide range of promotional to high-end furniture, including bedroom, living room, dining room, baby and kids and outdoor products, as well as a variety of other home décor items such as bed and bath and home improvement. Major suppliers include American Drew, Bellini Home and Gardens, Boca Rattan, GroovyStuff, Hillsdale, Homelegance, Howard Elliott, Jofran, Powell, Patio Living Concepts, Uttermost and Zuo. Products can be searched by style, brand, price range and “top sellers.” Sales in 2013 estimated at $5 million to $9.9 million. Offers free shipping to all customers in the continental U.S. and Canada. Ships to Canadian provinces via small parcel, truck freight and front door or curbside service delivery methods. Estimated site visits: 200,000 Page views: 3.98 Social media: Facebook, Twitter, Pinterest, Google+, LinkedIn and Instagram.

CYMAX CANADA (www.cymax.com) Headquarters: Burnaby, British Columbia Founder: Arash Fasihi Niche: More than 75,000 furniture SKUs from 150 vendors. Sells to customers in Canada and the United States. Founded in 2004 as a small audio-video furniture website called audio-videofurniture.com. Building on the success of that site, Cymax developed a large selection of home furniture, then added consumer electronics, fireplaces, housewares and other home décor items. The number of niche sites grew to 115, which have all since been consolidated into one all-encompassing site at Cymax. Internet Retailer magazine ranked Cymax one of the Top 200 e-tailers in the world in 2011 and 2012. In 2012, Cymax received investment backing to fund continued growth. Proprietary e-commerce technology allows shoppers to see thousands of options for the home quickly and easily. In 2014, launched initiatives for an improved experience for mobile and tablet users. Furniture categories include baby furniture, bar and game room, bathroom, bedroom, kitchen and dining, office and patio furniture. Vendors include Coaster, Crosley, Hooker, Safavieh, Stanley, Tommy Bahama, Walker Edison and Zuo. Products can be searched by price and brand. Annual sales exceed $100 million. Drop-shipping model enables shoppers to buy direct from the manufacturer. Estimated site visits: 1.55 million Page views: 4.13 Social media: Facebook, Twitter, Pinterest, Google+ and Houzz

BRIERS HOME & GIFT (www.briers.ca)

Headquarters: Vancouver. Has two showrooms on West 4th Avenue in the Kitsilano neighborhood and a warehouse in Vancouver. Niche: Contemporary living room, dining, bedroom and office furniture, as well as home décor items, including rugs, lighting and wall art. Also jewelry, handbags and novelty gifts. Site tools enable shoppers to search by furniture dimension, style, color, price and material. Home page includes a “what’s hot at Briers” slide show. Offers professional members program for the trade with special discounts and exclusive product lines, with access to a dedicated web site coming this winter. Ships furniture at standard rates through Canada Post, DHL and Canpar. Estimated site visits: 15,000 Page views: 2.70 Social media: Facebook and Twitter

COSTCO CANADA (www.costco.ca) Headquarters: Ottawa. Has 88 stores in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Quebec and Saskatchewan. Niche: In addition to furniture, sells appliances, automotive and tires, computers, electronics, food, hardware, health and beauty items, jewelry,

EQ3 (www.eq3.com) Headquarters: Winnipeg. A vertically integrated company, EQ3 has 12 stores in Canada and the United States. Additional stores and galleries are located throughout North America and the world. Founded in 2001. President/CEO: Peter Tielmann Niche: Specializes in simple, functional, modern design. Offers its own product range as well as EQ3+, a designer line featuring iconic brands such as Herman Miller, Stelton, Vitra and Alessi. Upholstery is custom made at company’s factory in Winnipeg. About 30% of the company’s products – including dining tables and office storage items – are produced in an EQ3-owned factory in Indonesia. Offers special discounts to qualified architects, interior designs, home builders,

contractors and other design/trade professionals. Inhabit blog provides insight and inspiration. Ships to all Canadian provinces. In-stock EQ3 and EQ3+ accessories and small furniture items such as nightstands and end tables are delivered in five to seven business days, using FedEx Ground. All instock large furniture items are delivered by freight using EQ3’s logistical partner (a minimum of two to four weeks for large furniture items and four to 10 weeks for custom upholstery). White-glove delivery is offered to all main urban locations in Canada; curbside delivery is available for more remote locations. Estimated site visits: 250,000 Page views: 9.32 Social media: Facebook, Twitter and Pinterest

FURNITURE.COM (www.furniture.com)

Headquarters: Boston President and CEO: Carl Prindle Niche: Partners with brick-and-mortar furniture retailers across North America to give customers the advantages of online shopping with the service and support of local retailers. Retail stakeholders include Value City Furniture, American Signature, Rooms To Go and Leon’s Furniture. Offers midpriced lines for every room of the home. Products can be searched by price range, style and finish. Also offers appliances and electronics. Company is owned by Blueport Commerce, in which Leon’s is an investor. Total sales in 2013 estimated at $40 million. Merchandise is delivered by a local retailer, at the same delivery cost as a customer who buys at the store. Estimated site visits: 190,000 Page views: 5.46 Social media: Facebook, Twitter, Pinterest, Google+ and Instagram.

GABRIEL ROSS CANADIAN FURNITURE (www.grshop.com)

Headquarters: Victoria, British Columbia, where it has a 6,000-square-foot showroom. Niche: Founded in 1992, offers authentic modern and contemporary design, including seating, tables, lighting, storage and accessories. Products can be searched by price and manufacturer. Furniture brands include Artifort, Carl Hansen, Herman Miller, Humanscale, Knoll and Vitra. Free shipping to Canada available on nearly all orders, except for Knoll products, certain rural locations and orders under $100. Most shipments sent by FedEx. Estimated site visits: 55,000 Page views: 6.74 Social media: Houzz, Instagram, Pinterest, Google+, Twitter and Facebook.

IKEA CANADA (www.ikea.ca)

Headquarters: Burlington, Ontario, with 12 stores in Alberta, British Columbia, Manitoba, Ontario and Quebec. President: Stefan Sjöstrand Niche: Most of the furniture and other items shown in the IKEA stores and catalog can now be purchased online. Company specializes in contemporary furniture for every room of the home, as well as a huge selection of kitchen, bathroom and other home décor items. Web site features wide range of tools for shoppers,

including “how to” content, interactive planning function, a shopping list, online stock-check capabilities, extensive local store pages and an in-store shopping app. Offers delivery, assembly and installation services. Home delivery rates start at $59. Same-day delivery offered for certain markets. E-commerce represents a growing segment of IKEA Canada’s business, accounting for 5% of its $1.7 billion in annual sales. Estimated site visits: 90,000 Page views: 1.63 Social media: Facebook, Twitter, Instagram and Pinterest

JYSK CANADA (www.jysk.ca)

Headquarters: Operates 54 stores in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec and Nova Scotia. First established in 1979 in Denmark, JYSK now operates in 36 countries with more than 2,100 stores. First Canadian store opened in 1996. CEO: Ludvik Kristjansson, JYSK Canada Niche: Offers bedding, bath, home and decor, kitchen, furniture, mattresses, storage and outdoor products. Furniture category includes bedroom, dining room, living room, home office, storage, kitchen, bathroom, outdoor and innerspring and foam mattresses. Committed to bringing “quality for less” to millions of customers every day. Passion for Scandinavian design, focused on delivering “a sense of sophistication at affordable prices.” Estimated site visits: 400,000 Page views: 5.74 Social media: Facebook, Twitter and Pinterest.

LEON’S FURNITURE (www.leons.ca)

Headquarters: North York, Ontario, with more than 75 Leon’s-branded stores spanning Quebec, Ontario, Manitoba, Saskatchewan, Albert, Newfoundland, Labrador, Nova Scotia, New Brunswick and Prince Edward Island. President and CEO: Terry Leon Niche: Founded in 1909, Leon’s offers a complete range of high-quality furniture, mattresses, appliances and electronics. Products can be searched by style, price range and brand. Brands include Concordia, De Fehr, King Koil, Kingsdown, Sealy, Serta, Simmons, Twin-Star, Whalen and Z-Line Designs. Leon’s and sister company The Brick participate in the furniture.com ecommerce program. Leon’s offers delivery to home or depot or pick-ups at its superstores. Estimated site visits: 860,000 Page views: 6.81 Social media: Facebook, Twitter, Instagram, Pinterest and You Tube.

MODERN FURNITURE CANADA

(www.modernfurniturecanada.ca) Headquarters: Main warehouse in Montreal. Also ships from locations in Ontario and British Columbia. Owner: Max Hazen Niche: An online-only store that specializes in “beautiful, elegant and unique furniture that will enhance any decor with a burst of modern style.” Product mix includes living room, dining room, bedroom, office, youth and outdoor furniture, lighting and home accents. Web site is designed to provide visitors with a shopping experience that

“rivals that of a showroom.” It allows shoppers to see each piece from every angle in great detail and in beautifully decorated settings. Shoppers can search by price range, product name or “most popular.” Offers an exclusive program with special discounts and service for designers, architects, contractors and other trade professionals. Shipping is free within Canada on any order over $50 and $4.99 on any order under $50, with the exception of certain remote areas within the 10 provinces and territories. Estimated site visits: 30,000 Page views: 5.53 Social media: Facebook, Twitter, Pinterest, Google+ and Instagram

OVERSTOCK (www.overstock.com) Headquarters: Salt Lake City, where it has a 633,000-square-foot warehouse. CEO: Patrick Byrne Niche: Closeout retailer offering discount brand-name merchandise. Began selling online in 1999. Offers promotional to high-end price points. Furniture brands include Abbyson Living, Angelo Home, Broyhill, Coaster, Leggett & Platt, Magnussen, Nourison, Safavieh, Serta, Signature Design by Ashley, Simmons, Somerton Dwelling and Surya. Publicly held, total 2014 sales were $1.3 billion. Sales of furniture and bedding were $465.7 million in 2013, up 36% from $342.5 million in 2012. Direct revenues, with orders fulfilled through its own warehouses, accounted for 12% of 2013 net revenues. The balance was done through fulfillment partners. Enabled shoppers to pay with Bitcoin in 2014, becoming the first major e-tailer to accept the digital currency. Offers an iPhone and Android app. Estimated site visits: 35.9 million Page views: 6.21 Social media: Facebook, Pinterest, Twitter, YouTube, Google+ SEARS CANADA (www.sears.ca) Headquarters: Toronto with a network of 174 corporate stores and 207 Hometown stores in all provinces and territories of Canada, as well as more than 1,300 catalog and online merchandise pickup locations. Niche: Publishes Canada’s most extensive general merchandise catalog, offering a complete range of dining room, living room and bedroom collections, including Sears’ exclusive Whole Home brand of custom furniture. Whole Home program features custom furniture pieces ready in 28 days. Products can be searched by brand, price, size, style and color. Key vendors include Palliser, El Ran, Chateau d’Ax, Natuzzi Editions, Sauder and Bush. Estimated site visits: 6.8 million Page views: 7.90 Social media: Facebook, Twitter and YouTube. SHOP.CA (www.shop.ca)

Headquarters: Toronto CEO/founder: Drew Green Niche: Mission is to be Canada’s No. 1 online shopping destination. Product mix includes appliances, clothing, computers, electronics, house and home, jewelry, pet supplies, sporting goods, tools and more. House and home category includes mattresses and bedroom furniture, dining } HomeGoodsOnline.ca

room furniture, accent furniture, storage and office furniture, upholstery, lighting and rugs. Shoppers can search by brand and price. Founded in July 2012, shop.ca is described as the fastest-growing retail site in Canada and one of the Top 10 most-visited Canadian owned commerce sites. In May 2014, the company announced it had raised $31 million in Series B funding, bringing the total amount of cash raised in the past two years to $52 million. The company plans to use the new funding to ramp up its digital marketing and marketing partnerships as well as hire additional partner-employees to scale the business to profitability. The company launched its first mobile app for iPhone and Android devices in July 2014. Also offers a “sell on shop.ca” where other merchants can post products for sale on the site. Social loyalty program rewards members on every purchase. Offers free, three- to seven-day delivery to all “non-remote” locations for products weighing less than 151 pounds. Company ships only to Canada. In August, shop.ca announced a new partnership with Think Logistics, one of Canada’s most advanced third-party logistics providers. The partnership is expected to bring improved efficiency to shop.ca’s delivery process through the use of Think’s robotic fulfilment system. Estimated site visits: 2.2 million Page views: 6.32 Social media: Facebook, Twitter, Google+ and Pinterest.

SMALL SPACE PLUS

In 2013, The Brick was purchased by Leon’s. Estimated site visits: 1.2 million Page views: 9.64 Social media: Facebook and Twitter.

THE MATTRESS & SLEEP CO.

(www.tmasc.ca) Headquarters: Two stores in Calgary and Edmonton, Alberta. Co-founders: Dylan and Daniel Buchfink Niche: The Buchfink family has been involved in the furniture and mattress industries for decades. The first Mattress & Sleep Co. store was opened by Dylan and Daniel Buchfink, along with their father Richard, in Edmonton in 2006. Over the years, focus has broadened beyond high-end sleep products to include bedroom, dining room and living room furniture. Brands offered include Berkeley Ergonomics, Copeland, Green Sleep, Natura, Sleeptek, TEAM 7, Tempur-Pedic and Wesley Allen. Company’s slogan is “Where Sleep Comes Naturally.” Offers deluxe, in-home setup in markets near retail stores as well as curb/ front-door delivery and freight-depot delivery (for remote markets). Most large items are shipped free of charge to nearly anywhere in Canada. Estimated visits: 25,000 Page views: 2.56 Social media: Twitter, Facebook, Google+ and Pinterest

THE MODERN SHOP

(www.smallspaceplus.com) Headquarters: One brick-and-mortar warehouse store in Toronto. Owner: Joseph Duan Niche: Formerly known as Modern Sensibility, Small Space Plus sells high-quality, multifunctional, modern furniture designed for condos and other small spaces. Categories include living room, bedroom, dining room and accent furniture. Delivery charge of $85 to $115 within Greater Toronto Area. Charges for other areas based on order weight and destination. In-stock items ship within three to five days. Awards Aeroplan miles with purchase. Founded in 2010. Estimated site visits: 8,000 Page views: 7.64 Social media: Facebook, Twitter and You Tube.

(www.themodernshop.ca) Headquarters: One store in Ottawa. Niche: The Modern Shop was founded in the summer of 2010 to address a perceived need for a fine modern lighting and furniture store in the Ottawa/Gatineau area and to fulfill a need for an online modern design retailer in Canada. The Modern Shop prides itself on selling quality designs from some of the best brands in the world, including Foscarini, Gubi, Jay and Modernica. The product offering includes lighting, seating, tables, bedroom furniture, storage and accessories. The retailer offers free shipping on orders over $99. Estimated visits: 40,000 Page views: 5.83 Social media: Facebook, Twitter, Instagram and Pinterest.

THE BRICK (www.thebrick.com)

UNITED FURNITURE WAREHOUSE

Headquarters: Edmonton, Alberta with 208 bannered stores and six distribution centers. President: Jim Caldwell Niche: Full range of furniture, mattresses, appliances, electronics and home accents. Products can be searched by brand and style. Brands include Dynamic, Sonax, Magnussen, Cindy Crawford Home, Flair, Sealy, Serta, Simmons, Tempur-Pedic and Springwall. In August, the retailer announced it had signed on with Blueport Commerce to become part of furniture.com, the web portal devoted to selling furniture, mattresses and major appliances throughout North America. The Brick’s online revenue currently accounts for 5% of total sales. For most locations in Canada, the company offers delivery, assembly and mattress removal. In-store pick-up, Xpresspost and third-party courier delivery also available. The Brick does not deliver to the United States.

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(www.ufw.com) Headquarters: In Vancouver with 17 stores and clearance centers in Alberta, British Columbia, Manitoba, Ontario and Saskatchewan. Niche: Launched in 1981, UFW steadily gained popularity by offering warehouse-style shopping at lowest-possible prices. Products include fa complete range of furniture, mattresses, appliances, electronics and home décor. In 2004, UFW was purchased by The Brick, which is now part of Leon’s Furniture. Estimated visits: 50,000 Page views: 5.79

WAL-MART CANADA (www.walmart.ca)

Headquarters: Mississauga, Ontario, with 391 locations in Canada. Flagship online store is visited by more than 400,000 Canadians daily. Niche: In addition to furniture, sells appliances,

automotive, clothing, electronics, groceries, jewelry, sports equipment and much more. In furniture, categories include bathroom, bedroom, home entertainment, kitchen and dining room, living room, motion, office and storage and organization. Products can be searched by brand and price, as well as level of online savings and customer rating. Brands include Office Star, Broyhill, Winsome, South Shore, Dorel, iComfort, Sherman and Zuo. Most items ship free. Estimated site visits: 16.3 million Page views: 5.72 Social media: Facebook, Pinterest, Google+ and Twitter.

WAYFAIR (www.wayfair.com) Headquarters: Boston CEO: Niraj Shah Niche: Sells through wayfair.com, Birch Lane, DwellStudio, AllModern.com and Josh & Main, a flash sales site. Offers promotional to lower upperend lines. Featured furniture brands include Abbyson Living, Broyhill, Catnapper, Herman Miller, Hooker, Lexington, Simmons, Skyline Furniture, South Shore and Tommy Bahama Home. Partnered with HGTV in the summer of 2014 with product tie-ins for its “Brother vs Brother” and “Flipping the Block” shows. Total 2013 sales were $915 million, up 51.9% from $602.5 million in 2012. Retailer conducted an initial public offering of stock in October of 2014. Site has been selling products in Canada since 2008. Estimated site visits: 15.1 million Page views: 7.25 Social media: Facebook, Twitter, Pinterest, Google+, YouTube, LinkedIn and Instagram. WHOLESALE FURNITURE BROKERS

(www.gowfb.ca and www.gowfb.com) Headquarters: Kamloops, B.C., where it operates one store. Has a distribution center in Langley, B.C. CEO: Dave Zirnhelt Niche: Bedroom, dining room, living room, sectionals, mattresses, platform beds and bunk beds. Founded in 2002. Features: Company was ranked No. 17 on Profit Magazine’s 2013 list of Canada’s 500 fastest-growing companies with five-year revenue growth of 95%. With estimated annual revenue between $5 and $10 million, the retailer ranked 421 on the 500-company list in terms of volume. Company shows a strong commitment to the community by volunteering for Rotary Food Drives and Bike for MS and Walk for MS events. Also has developed a local “Filling Homes, Filling Lives” program for Big Brothers and Big Sisters. Company team members – known as ‘Warriors’ – are awarded $50 per week to loan to entrepreneurs in need all over the world on kiva.org. Major suppliers include Coaster, Poundex, Primo International, Trendwood and Prepac for furniture and bedding; Patio Republic, Boca Rattan and Zoo for outdoor furniture; and Coaster and Zoo for decorative accessories. Offers free, next-day delivery on stocked items to the lower mainland. Also offers free delivery to most U.S. locations. White glove service available for an up-charge. Estimated site visits: 100,000 Page views: 5.15 Social media: Facebook, Twitter, Pinterest, Google+, You Tube and Instagram.

The Seattle collection from Tuff Avenue is finished in the soft shades of grey reminiscent of the rainy afternoons in of its namesake. Its design quirks, such as inclined table legs, black velour finish drawers, profiled tubular handle, add it the charm of its overall style. The collection also offers pieces for kitchen, living room and bedroom

MARKET PREVIEW

A new and improved CANADIAN FURNITURE SHOW For the past 18 months, the organisers have been working to revitalise and rebuild this country’s only national furniture industry event. They’ve reached out to industry stakeholders, changed the dates and the schedule and invited the public. Now, we’re waiting for the opening bell. BY MICHAEL J. KNELL

Made in Vietnam of recycled pine and sold by LH Imports, the Campestre collection includes a bed, three-drawer nightstand, seven-drawer dresser (seen here) and a nine-drawer chest. Its Raw Rustic finish gives variation to each piece. HomeGoodsOnline.ca

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The Clario from Jaymar sports transitional styling to offer a clean versatile look to blend with any room decor. Features exquisite stitch detail on tufted back cushions and arms. Ultimate seating comfort offered with retractable headrests and reclining seat options. Choose from 30-inch or 23-inch seat widths for small space rooms and multiple sectional configurations.

HERE ISN’T A SENIOR EXECUTIVE

in Canada’s furniture and mattress industry that’s willing to go on record saying this country doesn’t need a show of its own. Indeed everyone agrees what has always been referred to in the vernacular as the Toronto market must continue to exist in some form or another. The industry, from manufacturing and distribution to retail, will be severely diminished if it disappears. This isn’t to say what is now called the Canadian Furniture Show (CFS) doesn’t have a lot going for it already. It’s still the only national industry trade event held for furniture, mattress and major appliance retailers in this country. Until last year it was called the Canadian Home Furnishings Market (TCHFM) and, according to its owner and operator – the Quebec Furniture Manufacturers Association (QFMA)

– it remains the seventh largest trade show of its kind held in this country every year. It’s also probably one of the oldest continuously held trade events in Canada. When it opens at the International Centre in Toronto (not far from Pearson International Airport) on June 4 and closes on June 7, it will be the 43rd time this country’s furniture, mattress and major appliance industry has come together for the purposes of buying, selling and renewing old friendships. Aside from the name change, the most obvious changes have been the time slot and schedule. Instead of running from Saturday to Tuesday over the second full weekend in January after New Year’s Day, it now runs from Thursday to Sunday on the first weekend in June, with the first three days set aside for the trade and Sunday being the day the consumer will be welcome to walk the show floor. It’s an open secret TCHFM was old and tired. Like every other furniture industry trade event held anywhere, the format had run its course. Consumers shop for and buy furniture, mattresses and major appliances far differently in 2015 than they did just a few years ago. Then we had a financial meltdown that sucked the life out of the economy. This meant retailers had to buy and merchandise differently. In turn, this meant the market had to change.

THE CHANGE BEGINS

For the past 18 months Pierre Richard, president and chief executive officer of both CFS and QFMA, has been leading a team of The Agora collection from Huppé is made of split oak and finished in a variety of stains. The audio unit comes with wire management in the back and a ventilated shelf for maximum component longevity. Its drawers close softly and quietly thanks to hidden self-closing slow motion slides.

The model 775 is the latest addition to the Urban collection from Dutailier. It unique, sophisticated silhouette is supported by the wood accent side panels.

40 HGO merchandiser

The Devin collection from Elran features contemporary styling with an integrated headrest, oversized box arm, lounge seating and an inside pull handle. Also available with option power recline as well as a matching loveseat. Shown here are the chair and condo sofa.

people – from both inside and outside the organisation – in the effort to make CFS more relevant to both exhibiting resources and attending retail buyers alike. When the market opens he promises attendees will see the start of a three-year rebuilding and revitalising process. One of the first things Richard did after the 2014 TCHFM closed was name an advisory panel, comprised of people from throughout the industry and from various points in the supply chain. “They were involved in every aspect of the planning of the show,” he says, adding, “I’m thrilled about the contribution they made. They came to all the meetings and the discussions were very open.” Indeed, much of their input will be found throughout the 2015 CFS. “This is a positive re-launch of the show,” Richard proclaims. “This isn’t just a photocopy of what was done before. In fact, things are still changing as we speak.” He admits the most significant change was the date. “We did a lot of surveys across the industry and 80% said June was better than January,” he says.

After years of witnessing an ever shrinking list of exhibitors, Richard reports the tide is turning. “The good news is we will have about the same number of exhibitors on the floor, probably even have a bit more,” he said. “It seems we have stopped the drop.” Including SOFA, the permanent showroom annex of the International Centre, Halls 1 through 5 and the ‘official’ outside showrooms, this year’s CFS display area will cover about 400,000 square feet – somewhat larger than in prior years. “This is also because we’re using some of the High Point model when looking at this,” Richard says. This means, the CFS exhibit area now includes those ‘official’ outside showrooms as part of the overall event; just as the High Point Market Authority does with the 180 building included in its semi-annual event. The leak was also plugged, to a degree, by the show’s 80 or so first time exhibitors, including several new outside showrooms and a handful of new SOFA tenants – almost twice the number seen in prior events. While this would suggest more exhibitors have also left the event, Richard sees it differently. }

Pierre Richard, president and chief executive officer CFS and QFMA.

HomeGoodsOnline.ca

Top: The Avalon chair from contemporary upholstery specialist G. Romano. Middle: Amarillo Seating living room group from Boca Rattan is ideal for both inside and outside use. The collection includes a matching dining set and bar stools.

“I see this as a positive, these new exhibitors,” he says. “A lot of them were attracted by the June dates and a lot were attracted by Consumer Day. I’m thrilled we have so many new faces.” A number of key players have left the market. The most obvious is mattress major Sealy Canada – which for the past several years has occupied the event’s single largest display space – full-line resource Magnussen Home, which closed its permanent showroom in SOFA after the 2014 market; and, Groupe Bermex, the operators of Bermex, Dinec, Liinz, Bertanie, Dezmo, Mi-Di and Shermag, which was an ‘official’ outside showroom last year but isn’t on this year’s exhibitors’ list. Presentations were made to a lot of industry heavyweights in the United States, particularly Ashley, which is probably the largest furniture maker in North America. Richard describes those discussions as pleasant but doesn’t expect any commitments to return to Toronto until CFS has proven itself. “We’re hoping the renewal will make the show stronger and it will cause them to come back in 2016,” he says. The most notable of the newcomers are two key players in Canada’s major appliance market – Electrolux and BSH Home Appliances, the distributors of the Bosch and Thermador brands.

WILL THE RETAILERS COME TO MARKET?

Bottom left: European appliance specialist Aga Marvel will show this 24-inch Marvel refrigerated drawer set featuring their ‘Dynamic Cooling Technology’ to deliver rapid cool down and what they believe is the industry’s best temperature stability. This set holds up to 108 12-ounce cans. Bottom right: Appliance distributor Distinctive will present its selection of contemporary range hoods from Faber Flaminia, a high-end Italian producer.

42 HGO merchandiser

The key metric for every trade event organiser is the same: how many buyers will turn out? Attendance has been slipping in recent years. Approximately 5,000 trade visitors attended 2014 TCHFM, although it’s unclear how many were furniture store owners, managers and buyers as opposed to interior designers and other professionals. However, it should be remembered CFS (and its predecessors) is actively supported by all three of Canada’s furniture, mattress and major appliance buying groups – Cantrex Nationwide, Mega Group and the Dufresne Retail Solutions Group – and between them they bring about 1,000 independent store owners to the market each year. All three have told Home Goods Online they expect attendance at 2015 CFS to be either equal to or greater than 2014 TCHFM. }

HomeGoodsOnline.ca

“ This is a positive re-launch of the show. This isn’t just a photocopy

of what was done before. In fact, things are still changing as we speak.”

The Walton is one of a new collection of upholstery beds set to be unveiled by Amisco. Offered in full, queen and king sizes, they feature seven metal cross rails with three central support legs that adjust to fit uneven floors. It accommodates both coil and foam mattresses and no box spring is needed. Top left: Celebrity is the first model in Zedbed’s SnowPedic collection. Featuring the company’s cooling R2 soy-based pressure relieving material allows air to circulate, provides unsurpassed support, enhanced sensitivity and incredible durability. Bottom left: Madison nursery group from College Woodwork features a four-drawer dresser, six-drawer chest, crib and small change tray. Shown here in a linen finish.

44 HGO merchandiser

A 2012 QFMA survey revealed CFS is the only industry event attended by 32% of all independent furniture retailers in this country. With about four weeks left to opening day, Richard reported pre-registrations for CFS were running slightly ahead of those recorded at the same time prior to the 2014 TCHFM, which he described as encouraging. “Our target is to meet or exceed net attendance from 2014,” he admitted, adding hotel booking were some 10% higher than they were at this point before the last event. “And when you’ve booked your hotel room, it’s a good indicator of what your intentions really are,” he points out.

THE MARKET’S SOCIAL CALENDAR

As has been customarily for the past number of years, the event will host the Canadian Home Furnishings Awards gala on the Friday evening. But instead of the opening cocktail house, the show organisers will host what they’re calling the ‘Big Industry Bash’ on Thursday – now

opening day – beginning at 6pm. This outdoor barbeque will be held at the entrance to Hall 3 under a big top and will feature a live band and plenty of networking opportunities. For the first time ever, the show will close at 8pm on Saturday. “This will be an opportunity for local retailers in particular to come to the show after they’ve closed for the day,” Richard says. There will be an open house for all attendees beginning at 4pm. This will all lead to Consumer Day on Sunday. Richard is confident a good start has been made to the rebuilding and revitalisation process. “I really believe that 2015 is a stepping stone to a better 2016,” he says. “We’re re-established the basics and we’ve stopped the drop. The work on 2016 will begin right on the closing bell of 2015.” For more information about CFS, check out its web site at www.canadianfurnitureshow.com. HGO MICHAEL J. KNELL is the publisher and editor of

all platforms published by Home Goods Online.

“Marketing is the art of meaningful sustainable differentiation.” – Dave Nichol

EXCITING!

FRESH!

TRENDY!

Wake up at your best

STAND OUT & ENHANCE YOUR USP! Visit us in Orion Room ‘D’ at the 2015 Canadian Furniture Show, June 4-7 Contact Steve Amis, Vice President of Sales 905-564-5008 x313 or steveamis@springwall.com

springwall.com | facebook.com/springwall HomeGoodsOnline.ca

AT A GLANCE WHERE: International Centre; 6900 Airport Road, Mississauga, ON L4V 1E8 OWNED AND OPERATED BY: Quebec Furniture Manufacturers’ Association WHO AND WHAT: Approximately 200 exhibitors showing residential furniture, mattresses, lighting, decorative accessories, rugs, juvenile furniture, and accessories in Hall 1 to Hall 5. CFS will also feature suppliers of related products and services of interest to furniture retailers. The events 400,000 square feet of display space also includes the permanent showrooms inside the SOFA resource annex of the International Centre and approximately nine participating permanent showrooms located in the Greater Toronto Area. MARKET WEBSITE: www.canadianfurnitureshow.com SOCIAL MEDIA: Facebook.com/CanadianFurnitureShow; Twitter.com/CdnFurnShow; Vimeo.com/canadianfurnitureshow; Pinterest.com/CdnFurnShow/

THURS., JUNE 4 TRADE ONLY

SUN., JUNE 7 CONSUMER DAY

MON., JUNE 8 TRADE ONLY

OPENING HOURS: 9am to 6pm

OPENING HOURS: 10am to 5pm

INDUSTRY BASH: Beginning at 6pm under the big top in the parking lot outside the entrance to Hall 2 of the International Centre; featuring a barbeque and a live band.

TOWN HALL: From 8:30 to 9:45am. All CFS attendees are welcome to attend this event hosted by Pierre Richard, president and CEO of both CFS and the QFMA. Similar to the event 2014, this will be an opportunity for market attendees to voice their concerns about the event and offer suggestions to improve future events.

CHFA GOLF CLASSIC: Begins at 11am. As has been the practise for the past few years, the tournament will be held at the Caledon Woods Golf Course in nearby Bolton, Ontario. For tickets or more information, contact Murray Vaughn, CHFA president at (905) 677-6561 or by e-mail at murray@chfaweb.ca.

FRI., JUNE 5 TRADE ONLY OPENING HOURS: 9am to 6pm CHFA AWARDS: The Canadian Home Furnishings Alliance will host its annual awards gala honouring the 2015 Retailer of the Year – Ameublements Tanguay – and the 2013 recipient of the Lifetime Achievement Award – Jim Sunderji, founder and chairman of Dynasty Furniture – on Friday, June 5 beginning at 6pm. For tickets or more information, contact Murray Vaughn, CHFA president at (905) 677-6561 or by e-mail at murray@chfaweb.ca.

SAT., JUNE 6 TRADE ONLY OPENING HOURS: 9am to 8pm EXTENDED HOURS: In a first, the show floor will remain open on Saturday, June 6 until 8pm. Cocktails and hors d’oeuvres will be served to all show attendees beginning at 4pm.

46 HGO merchandiser

Note: With the presentation of a proper CFS badge, market attendees will be admitted to the International Centre without charge throughout Consumer Day. KAREN SEALY DESIGN TALK: 10:30am on the Hall 5 presentation stage. Television personality, designer and CFS spokesperson Karen Sealy will discuss the latest trends with members of the public attending Consumer Day and will share tips and tricks for creating inspired spaces. STEVEN & CHRIS DESIGN TALK: 1pm on the Hall 5 presentation stage. The celebrity design duo Steven Sabados and Chris Hyndman, hosts of the popular TV show Steven and Chris, will give a rare public appearance to discuss their take on today’s design scene.

This set of three vases is part of the Montera collection from Down the Beaten Path, a distributor of artisan designed vases, paintings, wall décor and unique decorative accessories from Mexico.

ON RETAIL

YOU CAN’T BUILD A BUSINESS ON BROKEN TRUST. DO THE RIGHT THING. It doesn’t take the Competition Bureau to ruin your business. A customer can do it quite quickly. The best way to build a solid relationship with customers is simple: No games, no tricks, no lies. Become the customers trusted and respected voice of authority, and watch how they respond. BY DONALD COOPER

HE COMPETITION BUREAU SAYS SEARS

Canada and the Hudson’s Bay Company, two of this country’s largest and most influential department store retailers, advertised bogus discounts on mattresses. In court documents, the bureau alleges both retailers “failed to offer certain sleep sets at the regular price or higher for a substantial period of time,” then “made materially false or misleading representations to the public in relation to its clearance sales” of mattress sets. This is a reminder that far too many businesses make false claims to mislead or manipulate customers with lies and half-truths, or make promises they know they can’t keep. The list of these tactics is almost endless: false advertising, fake discounts, marking up to mark down, bait and switch, hidden charges, and delivery dates the merchant knows he can’t honour. Then, of course, there are those wonderful extended warranties, those pieces of paper the retailer buys for $15 and then cons the customer into buying for $129. Far too often,

extended warranties are being sold improperly and for the wrong reasons. For example, when buying a major appliance recently, the salesperson spent 30 minutes assuring us this particular refrigerator was the most wonderful piece of quality, design and engineering known to man. Then, as soon as we agreed to buy it, he did an immediate about-face and “confidentially” warned us (and I’m paraphrasing here): “For a piece of crap like this you really should get the extended warranty for just $129 – because you never know what might happen.” Even assuming the warranty was a good thing to present to the customer; this was definitely the wrong way to go about it. Next is marking up to mark down. Nobody can stay in business being on sale at 40% to 50% off three weeks out of four. You know it. I know it. In this case, the retailer has to mark up to mark down. And when last year’s lies aren’t big enough to grab people’s attention, the lies have to get bigger this year. This means the “race to the bottom” is also a race to see who can get away with the biggest, boldest deceptions. HomeGoodsOnline.ca

successful retailer is the one who differentiates himself by being one of the few businesses in his industry that does the right thing every time while doing it very, very well. This takes three things: integrity, creativity and courage. There’s lots of chatter about creativity and innovation in business today, but there’s very little conversation about courage. There’s no point in being creative if you lack courage, because you’ll never have the guts to implement the creative ideas you come up with.

No games, no tricks, no lies

Dave Thomas, the founder of the Wendy’s restaurant chain, was famous for telling his franchisees to always “Do the right thing!”

My advice is simple. !!!STOP!!! Stop all of it. No one can build a business on lies, half-truths, broken trust or broken promises. It doesn’t take the Competition Bureau to ruin your reputation and your brand. It could be just a few unhappy customers on social media telling thousands of people you can’t be trusted.

Do the right thing

To quote the late Dave Thomas, the founder of Wendy’s: “Do the right thing!” Here’s a simple question every business needs to ask and answer: Are we trying to get people to do what WE want them to do, or are we absolutely committed to helping them do what THEY want to do?

Here are four steps to getting it right:

1 2 3

Define yourself by how you help your target customers, not by what you sell. People are tired of being sold. They want to be helped. Ultimately, you’ll sell more by helping more. Make a list of all the help they might need in any way that is related to wisely choosing and effectively using what you sell. Get creative and determine what extraordinary things you will do to deliver that help better than your competitors. Become the “caring coach” and the “trusted and respected authority” in your market. Determine how you will effectively and honestly communicate your compelling value and your integrity. There’s no point in being the best if you’re also the best-kept secret. As a business speaker and coach, I work in more than 40 industries – including furniture, mattress and major appliance retailing – around the world. I can tell you that every market is over-served and under-differentiated. The truly

48 HGO merchandiser

Back in my days as a fashion retailer at the Alive & Well Warehouse Boutique in Markham, Ontario, I quickly discovered the ladies fashion business was all about manipulation, lies and half-truths. We came up with a simple policy that, in large part, became our competitive advantage: “No games, no tricks, no lies!” We made a fundamental decision to do the right thing. We created “the shaking-finger test.” Every time we made a decision affecting our customers in any way, we pretended a committee of customers was looking over our shoulder. If we thought they would shake their finger at us – you know, the way everyone’s mother used to do – we simply wouldn’t do it. Our mantra was, “If it doesn’t pass the shaking-finger test, give it a rest.” So there was no marking up to mark down, and no false advertising. We didn’t even do 99-cent pricing. Our $10 items were $10, not $9.99, and we told our customers that 99-cent pricing is a psychological trick to fool people and we simply wouldn’t do that. It’s not who we were and it’s not who our customers wanted us to be. We also had no credit notes. If the customer brought something back, she got a replacement or a refund – her choice. If something was defective, she got “goof bucks” for the inconvenience of having to come back. If you’re sorry, be sorry in a meaningful way. This same commitment to deliver extraordinary value and customer outcomes led to several other breakthroughs that resulted in our being named Outstanding Innovative Retailer by the Retail Council of Canada. It also led to achieving sales of over $700 per square foot at a time when the national average for stores of our type and size was about $260.

Here are 11 of our innovations that might inspire you:

We were the first fashion store in the world to put four hooks in every change room. Most of our competitors had one hook. A few had two, but nobody had four. Here’s what I figured out: women need one hook for their clothes, one for the clothes they want to try on, one for the clothes they’ve decided to buy, and one for the clothes they’ve decided not to buy. That adds up to four, and no one had figured that out. And we had 50 change rooms, so nobody had to stand in line to use them. Think like a customer, do the math and do what needs to be done. We put a mirror in every change room, because we thought there were certain decisions women had the right to make in the privacy of their own change room. This drove our competitors nuts. They told me, “You need to force

Define yourself by how you help your target customers, not by what you sell. People are tired of being sold. They want to be helped. Ultimately, you’ll sell more by helping more. women out of the change rooms to look at themselves in the mirror so your staff can tell them how great they look.” But we were committed to being respectful, not manipulative. We invited our customers to take as many items into the change rooms as they wished. No other ladies-wear store in the world had ever done that. Most allowed only three items and women hated it. It’s unfriendly, unhelpful and insulting. Signs don’t stop criminals; they just insult every honest customer. This was Alive & Well’s single biggest sales driver. It blew women away. If she took 27 items in the change room, she typically bought 23 of them. This was a big, game-changing idea. You need one for your business. Remember, it’s something so important to your target customers and so gutsy that your competitors would never have the nerve, the brains or the heart to do it. We built a beautiful drink bar and offered seven kinds of tea, two kinds of coffee, two kinds of fruit drink or spring water in real mugs at no charge. Every other clothing store greeted customers with a sign on the front door saying, “No Food or Drinks.” We realised we were in the hospitality business, not just the clothing business. Actually, we’re all in the hospitality business. What could you do to be more hospitable? Our competitors warned us not to offer free drinks. They said, “Women are slobs. They’ll spill it on the clothes and destroy your inventory.” These were women saying this about other women! The reality was that less than $200 worth of clothing was spilled on in 12 years. It wasn’t a problem, except in the tiny minds and tiny hearts of our competitors. For husbands, boyfriends and mothers nursing babies, we had reclining massage chairs placed throughout the store. No other store in the world offered such chairs, apparently believing they would take up way too much “selling space.” What unexpected amenities could surprise and delight your customers and turn them into fans? To allow mothers to shop in peace, we built a play area for kids in the centre of the store. It was a 28-foot pirate ship replica, docked in a lagoon at a pirate island with a huge tree complete with a tree fort. The whole thing cost $54,000 and was worth every penny. A mom cannot try on a pair of pants with a child laminated to her leg screaming to go home. Our competitors said, “It’s her kid, her leg, and her problem.” My reply, “No, I want to sell the pants. It’s my problem.” I walked past the pirate ship one day and heard a five-year-old say, “Mommy, can we live here?” Do your customers want to “live” with you? Our customer washrooms had change tables with three sizes of free diapers, diaper wipes and creams. Whether the customer needed the diapers or not, she was blown away by the fact they were there. Our competitors told us we were nuts, saying, “The odd woman will steal the diapers.” I told them no “odd” women came to our store.

8 9

Inside the front door we had four large umbrellas, so if it rained while customers were shopping we could escort them to their cars. Small things matter. Our salespeople weren't on commission. They were well paid and well treated, and always acted in our customers’ best interests. A big sign at our front door said, “Our staff are NOT on commission. They treat you this well because they love what they do!” Women loved us for that. They felt safe, and were safe. Every year on Mother’s Day we gave away 1,000 pots of “Mums (chrysanthemums) for Mums.” At Halloween, we “sold” pumpkins for a $2 donation to UNICEF. What are you doing to create joy and make a difference? There’s much to celebrate. Because colour is an important part of fashion, and because colours look different under different types of light, we installed full-spectrum daytime lighting so as not to mislead customers. The colour you saw was the colour you got. And there was always pleasant music playing quietly in the background. How your business “feels” is important.

10 11

We also made “opportunity buys” when we could, which honestly saved our customers money on current, high-quality casual and career clothing. In all, we treated them better than any other store in the world. That’s why thousands of women drove up to three hours to do business with us. They also brought their friends. So, what will you do to build your business on a foundation of trust? How will you create a culture of doing the right thing? If you’re already playing it straight, how can you do it even better, then tell your story more effectively? If you’re not playing it straight, what would doing the right thing look like? What would it take in the way of creativity and courage to differentiate yourself, changing your ethics, culture and brand as a way of changing your relationship with your customers? If you’d like help in making this transformation, I have an insightful, bottom-line management and marketing keynote speech – as well as a longer interactive workshop – on this subject titled Owning Customers for Life! For more information, contact Sharen, the Donald Cooper Corporation’s director of marketing, at (416) 252-3704 or by e-mail at sharen@donaldcooper.com. HGO A regular contributor to Home Goods Online, DONALD COOPER, MBA, has been both a world-class manufacturer and

an award-winning 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. HomeGoodsOnline.ca

Continued from page 20

Continued from page 27

IS IT WORTH IT?

JIM SUNDERJI

“In the last 36 years, I’ve seen a lot of changes. In manufacturing, things are changing. In terms of long-term change, 3D printing is gaining momentum and impacting our industry. A month ago, a fashion show had a 3D printing garment. I believe it will gain momentum and in the long run it will impact all industries,” he says. “We will have to wait and see how and when this change will impact the furniture industry,” he continues. “In the short term, the Canadian industry is going to grow because there’s more of a need for Canadian furniture. There’s been a slowdown in Far East imports, so Canada will be there to pick up the slack. Canadians like to buy Canadian and there’s domestic demand for Canadian-made furniture.” As for Dynasty’s succession plan, Sunderji is happy Faizel and Karina Sunderji taken the reigns. “I don’t have any plans to retire completely, but I’ve taken fewer responsibilities while Faizel and Karina have taken on a lot more,” he says, adding, “Faizel and Karina are very capable and are actually doing all the work presently and allowing me to get involved in the social work with Rosy. I am not doing as much work as I used to. I am fit and healthy and am not a rush to retire completely and I do not have any plans. But I realise that sooner or later I will have to think of retirement.” As for any post-retirement (even if it’s not that imminent) dreams, Sunderji is happy to leave the company in the capable hands of his son and daughter-in-law. “I think I’ll let the next generation plan [for the future].” 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.

50 HGO merchandiser

For most people, their booths generated palpable interest and they were optimistic about the launch or continued success of their showcased products. We’ve had really good reception and we’re getting an enthusiastic response to the product so we’re very happy,” says Archilume’s Khattak. Pierre Cousineau, the president of muralunique, a Montreal company specialising in creating wallpaper murals with high-quality digital images, says it’s important to be patient in the aftermath of a show. “It takes time [to generate interest] if you’re not an impulse buyer,” he says. “I have some designers we saw last year that gave us an order nine months after the show. It’s not something that happens just like that. Our product changes a room so much that is has to be planned. Our product is more for residential applications, but it works commercially as well.” For limestone bathtub producers Victoria Albert, generating interest happened early in the show. “Very much so,” Carter replies when asked. “There’s a great mixture here. We’ve had a lot of architects and designers. We’ve had a lot of dealers come to visit us, some over a drink last night and some at our booth. They know that new stuff will be here and it’s great that they can come and find us. The show is a good mix in terms of size and scale,” he continues. “It’s not ginormous like some of the European shows that take four days to walk and really can be very tiring. But there’s a good amount of people and a good amount of attractions and I know it’s sold out or close to sold out, which is a really good sign. I think it’s well organized in terms of ticketing and there are a lot of hotels around, so it’s accessible. It is a pleasure to do business here.” The 2016 edition of the Interior Design Show will be in the north building of Toronto’s Metro Convention Centre from January 21 to 24 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.

Archilume's suspended luminaire lighting.

INDUSTRY CALENDAR

August 2 to 6, 2014 LAS VEGAS MARKET World Market Center Las Vegas, Nevada www.lasvegasmarket.com August 2 to 5, 2015 PRIMETIME The Venetian Las Vegas, Nevada nationwideprimetime.com August 9 to 12, 2015 TORONTO GIFT FAIR Toronto International Centre Toronto Congress Centre Mississauga, Ontario www.cangift.org August 16 to 19, 2015 ALBERTA GIFT FAIR Edmonton Expo Centre Edmonton, Alberta www.cangift.org

ADVERTISERS’ INDEX

August 20 to 23, 2015 TUPELO FURNITURE MARKET Tupelo, Mississippi www.tupelofurniture market.com

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 Canadian Furniture Show 101-1111 Saint-Urbain Montreal QC H2Z 1Y6 T: 514.866.3631 F: 514.871.9900 www.canadianfurniture show.com

Page 11 Protect-A-Bed 1500 S. Wolf Road Wheeling, IL 60090 T: 519.822.4022 www.protectabed.com Pages 14-15 Cantrex Nationwide 3075 Thimens, Suite 300 St-Laurent QC H4R 1Y4 T: 514.335.0260 F: 514.745.1741 www.cantrex.com Page 19 Zucora 552 Clarke Road London, ON N5V 3K5 T: 800.388.2640 www.zucora.com Page 21 Las Vegas Market 475 S. Grand Central Pkwy. Las Vegas, NV 89106 T: 702.599.9621 F: 702.599.9622 www.lasvegasmarket.com

Pages 24-25 Serta Canada/ Star Bedding Products 40 Graniteridge Road, Unit #2 Concord, ON L4K 5M8 T: 800.663.8540 www.sertacanada.com Page 31 Tempur-Pedic Tempur Sealy Canada 145 Milner Avenue Scarborough, ON M1S 3R1 T: 800.268.4414 www.tempurpedic.ca Page 33 Domus Vita Design 50 Acadia Ave. Suite 100 Markham, ON L3R OB3 T: 905.513.6687 www.domusvita design.com

August 30 to September 2, 2015 QUEBEC GIFT SHOW Place Bonaventure Montreal www.cangift.org 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 ANNUAL CONFERENCE QUEBEC FURNITURE MANUFACTURERS ASSN, Manoir Victoria, Quebec City www.afmq.com December 2 to 3 IIDEX CANADA Toronto Convention Centre Toronto www.iidexcanada.com

Page 35 Magniflex 1000 5th St., Suite 220 Miami Beach, FL 33139 T: 905.481.0940 www.magniflex.com Page 43 Mega Group 720-1st Avenue North Saskatoon, SK S7K 6R9 T: 306.242.7366 F: 306.242.5651 www.megagroup.ca Page45 Springwall Sleep Products 7689 Bath Rd Mississauga, ON L4T 3T1 T: 905.564.5008 www.springwall.com Page 52 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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FURNITURE • BEDDING • APPLIANCES • CONSUMER ELECTRONICS • ACCESSORIES 52 HGO merchandiserLAMPS & LIGHTING • FLOOR COVERING • RETAIL SERVICES