HGO Winter 2024

feature stories

12

PERSONALIZED WITH PRIDE

BDM + Furniture is one of the largest furniture resources in not just Canada, but North America. Headquartered in Louiseville, Que., the custom furniture manufacturer boasts three complementary brands that offer an infinite number of possibilities.

8

ELEVATING YOUR E-COMMERCE STRATEGY

In the world of direct-to-consumer e-commerce, tracking the right metrics can make all the difference. How are consumers discovering and purchasing home furnishings? What are the best ways to leverage promotions?

22

‘SELLING’ SPECIALTY SERVICES

Design services are a big part of any in-store shopping experience and further differentiate your retail operation. But retailers must rethink how they present and market these offerings to tap into their full potential.

18

BEYOND THE HEADBOARD

Furniture and mattress stores are uniquely positioned to become the new go-to destination for bedding products. Here are strategies to capitalize on this market shift, increase your average ticket size and ultimately boost your bottom line.

40

THE SUPPLY CHAIN PUZZLE

The retail industry is a dynamic and complex ecosystem. To stay ahead of the curve, you need to navigate the shifting landscape, which includes the supply chain. Let’s look at what transpired in 2024, and what may come.

‘TIS THE SEASON FOR SHIPPING

Holiday shopping has been challenging this year with the Canada Post strike, which impacted some other carriers’ delivery times, as they were experiencing higher-than-normal volumes. Three weeks into the labour action, FedEx instituted a five-package drop-off limit, and Purolator and the United Postal Service, simply known as UPS, paused shipments to try to work through the deluge of deliveries, creating even bigger backlogs at the height of the busiest shopping season. Although postal workers are now back on the job, after the federal government stepped in, it will take some time for operations to return to normal and the damage has already been done for many retailers. The Canadian Federation of Independent Business estimates small businesses in this country lost a combined $100 million per day during the strike, for a total $1.6 billion over the course of basically a month. Because of this and the fact the strike could restart this May, if the current extended contract expires, nearly three-quarters of small businesses report they will reduce their dependence on Canada Post going forward.

The timing of the postal stoppage compounded existing pressures on Canada’s supply chain. Earlier this year, labour disruptions at ports in Vancouver and Montreal caused significant bottlenecks. Events stateside and worldwide also created logistical challenges, a number of which are discussed in Scott Lombardo of Gulfstream Shippers Association also provides a snapshot of what he believes, based on industry experience, will be the biggest trends and events to shape the sector in 2025.

To begin the issue, this country’s largest specialty bedding retailer, Sleep Country Canada, shares the power of personalization and provides tips to tailor experiences across multiple digital channels. We then explore how to elevate your e-commerce strategy. Specifically, this article delves into the findings of a new consumer report, which illustrates a robust omnichannel strategy that blends both online and in-store shopping is the key for home furnishing brands to meet customer expectations, and to remain competitive and resilient in a quickly evolving market.

Next is our profile of BDM + Furniture. With a reputation for high-quality collections, the Quebec-based manufac turer has carved a niche in the upper-middle and high-end custom-made furniture markets.

Rounding out the winter edition, we explore the one thing furniture and mattress retailers can do to boost average ticket in the sleep category, how to optimize in-store design services, Canada’s retail digital transformation, the power of multicultural marketing, proven social media strategies that drive traffic to retail stores, and more.

Of course, this issue would not be complete without our regular Observations column. We brought back our first-ever panel of industry experts to provide their year-end reflections and predictions for 2025.

On that note, I’d like to thank everyone who has contributed to Online and professional advice.

PUBLISHER

Kris McFadden krism@mediaedge.ca

PRESIDENT Kevin Brown kevinb@mediaedge.ca

GRAPHIC DESIGNER

Thuy Huynh-Guinane roxyh@mediaedge.ca

PRODUCTION

COORDINATOR

Ines Louis Inesl@mediaedge.ca

PROGRAMMATIC

ACCOUNT MANAGER

Rhea Sood rheas@mediaedge.ca

EDITOR

Clare Tattersall claret@mediaedge.ca

ART DIRECTOR

Annette Carlucci annettec@mediaedge.ca

CIRCULATION

Adrian Holland circulation@mediaedge.ca

DIGITAL MARKETING DIRECTOR

Abhinav Dadarkar abhinavd@mediaedge.ca

SOCIAL MEDIA DIRECTOR

Steve Chester stevec@mediaedge.ca

THE CUSTOMER JOURNEY

Sleep Country Canada focuses on tailoring experiences across multiple digital channels to drive satisfaction, loyalty

BY SARI DECKELBAUM

A RETAILER’S DIGITAL TRANSFORMATION journey at its core is about delivering on your promise to consumers. Companies need to adopt a customer-first mindset across their entire organization with the consumer at the centre of strategies.

At Sleep Country Canada, as we celebrate 30 years as Canada’s leading specialty sleep retailer, we have remained true to delivering on our longheld promise to exceed the expectations of our customers. In our business, this means leveraging the established knowledge and expertise of

our ‘sleep experts,’ who have helped millions of Canadians get better sleep by listening to their needs and matching them to their perfect sleep solution. Personalized service and expertise have always been at the heart of Sleep Country, both in-store and digitally.

For a customer at Sleep Country, finding the right product, whether a mattress, pillows or bedding, is not a one-size-fits-all proposition, as there are many choices and varying product features to explore and experience. In the digi-

tal world, this requires understanding each customer’s needs and providing the right tools and experiences to guide them through the selection process with a seamless transition to a sleep expert online or in-store.

When it comes to customer experience, personalization is key to engaging in meaningful ways. Put plainly, personalization is how a business delivers a unique experience for the customer, with messaging, content, promotions and the right timing based on the customer and

where they are in their journey with the retailer. This could be presenting a specific offer, a tailored homepage experience or product, the ideal image on the website or simply triggering an e-mail for that customer.

While personalization is not new, not all retailers execute individualized strategies to their full potential. Personalization was previously based on large, broad customer segments and often was not relevant to the customer.

However, with the evolution of artificial intelligence (AI) and sophisticated machine learning algorithms, retailers can shift from broad segmentation to personalization based on individual customer behaviours, and from reacting to customer behaviours to anticipating them. AI has matured and now there are numerous practical applications in retail that can enhance an experience. For instance, with AI, a website’s search results can be significantly improved and provide customers with a faster path to purchase. Another example is leveraging AI to enhance product selection and recommendations based on customers’ behaviours and preferences.

Consumer expectations are continually evolving and retailers must be equipped to adapt to these changes. Though the concept is simple — utilize data and analytics to deliver highly engaging experiences — a retailer needs to determine the right technology solutions, including how they can leverage AI to power the experience. With a suite of personalization tools, you can activate your data to drive product selection, messaging, content and timing depending on where the customer is in their journey.

Personalization is an ongoing, iterative process. You must establish a test-and-learn framework with success metrics like engagement rate to measure interactivity and conversion to evaluate the ability to drive revenue. Then you must quickly identify what is and is not working, utilizing the right metrics to enable you to continually improve and optimize your interactions and

drive increased value to the entire business. In this process, you must be agile and stay true to what your customer is telling you and pivot as needed. With this approach, you can continue to build on your foundation with increased sophistication to better understand and respond to your customers’ needs.

A successful personalization strategy requires cross-functional collaboration and educating the organization to adopt new ways to work. As with many business strategies, personalization is best accomplished holistically across channels and touchpoints. When personalization is cross-functional, all teams are aligned so you

can best leverage the expertise of each team member to deliver.

Organizations need to assess their level of maturity in personalization. This will dictate how fast you evolve your strategy, and the business and technology roadmap needed to get there. No matter where your organization is in its personalization journey, continue to focus on the customer and their changing expectations with a flexible approach. The strategies, tools, technologies and skills needed in your organization will continue to evolve. Remember that the journey to building long-term relationships with customers through personalization never ends.

Sari Deckelbaum is senior vice-president of e-commerce at Sleep Country Canada.

ELEVATING YOUR E-COMMERCE STRATEGY

Data-driven insights provide comprehensive view of consumer behaviour to help you grow your brand

BY MJ BARAZON

TODAY, THERE ARE COUNTLESS TOUCHpoints available to connect brands with shoppers throughout the product life cycle.

But how do consumers prefer to shop? And what motivates them to buy home goods in the current economic climate?

These questions, among others, were posed to more than 3,000 U.S. consumers who had purchased at least one home furnishings product online in the last 12 months.

The findings were revealed in a recent report that provides valuable insights to help brands refine their omnichannel strategy so they can more effectively attract and engage shoppers in a competitive landscape.

SHOPPING PREFERENCES

It should come as no surprise that social media is the top choice for product discovery. Platforms like TikTok and Instagram offer users immersive, short-form videos, allowing viewers to experience a product effortlessly.

But while social media is the most popular channel for discovering products, it ranks lower for purchasing. In fact, 48 per cent of consumers prefer to buy in-store, primarily due to the ability to see, touch and test a product’s durability.

Meanwhile, 28 per cent of consumers favour online shopping, while 24 per cent express no preference. Those who prefer shopping online value conveniences like home delivery, 24-7 access and better promotions.

Although in-store shopping still leads, the fact that it is below 50 per cent signals a shift in consumer behaviour for an industry historically dominated by brick-and-mortar. This suggests that although certain in-store experiences are difficult to replicate, a substantial portion of consumers are now willing to forego them in favour of the convenience and flexibility that online shopping provides.

Additionally, when it comes to browsing and purchasing online, most consumers gravitate toward big-box stores and online marketplaces, particularly for products ranging between $100$499. This highlights the need for a unified omni-

channel strategy across various touchpoints, as consumers frequently switch between channels throughout their shopping journey. Effective product feed management tools like Feedonomics enable brands to centralize and streamline this process, ensuring a smooth and consistent experience for consumers across all channels.

THE PROMOTION EFFECT

Promotions have long been a powerful way to attract consumers and can even shift established shopping behaviours. In fact, 82 per cent of shoppers who prefer in-store purchases would likely buy online if offered an online-only promotion. Similarly, 76 per cent of online shoppers would consider purchasing at a physical store if presented with an in-store-only promotion.

This shows that even promotions with limitations create a sense of urgency that can drive a sale, regardless of shopping preference. The key to effective promotions is simplicity. Shoppers tend to favour straightforward offers like percentage discounts, ‘buy one, get one free’ deals and free gifts with purchase.

While promotions are effective for attracting new customers, they’re also an excellent way to reward loyal shoppers. Although offering discounts to existing customers may impact margins, it increases their lifetime value by encouraging repeat purchases and recommendations. Additionally, promotions provide an opportunity to clear out unwanted inventory and optimize pricing.

When delivering promotions, e-mail is the most efficacious channel, preferred by 55 per cent of consumers. This is likely due to the trust consumers place in brands when they share their e-mail during purchases or account creation. To maximize promotional impact, brands should leverage first-party data to tailor offers to consumers’ demographics and personalize deals based on their browsing history.

FLEXIBLE PAYMENTS

In the home furnishings space, flexible payment options like buy now, pay later (BNPL) are no longer a perk. More than two-thirds of shoppers expect to see BNPL options when shopping online, especially for big-ticket items.

Most shoppers use this payment option for indoor furniture, bedroom essentials and outdoor furniture. These items typically come with higher price points that can feel out of reach for a one-time payment. By breaking down a $2,000 mattress into a manageable $400 monthly payment over five months, for example, BNPL allows consumers to feel more comfortable making these purchases.

The home furnishings industry initially faced challenges with BNPL services due to transaction limits, which often capped out at $1,500. However, as the popularity of BNPL has grown, these limits have increased significantly — sometimes to as much as $10,000 or more. This means more businesses can offer BNPL for their high-cost items, expanding consumer access and affordability.

CONVENIENT PICK UP

Buy online, pick up in store (BOPIS) has become a must-have feature in home furnishings. Sixty-nine per cent of consumers have used BOPIS in the last year, with 80 per cent purchasing additional items when they arrived to collect their order. This makes BOPIS not just a convenience but a valuable upselling opportunity.

In an industry with long lead times, BOPIS offers immediate availability, which can drive urgency for customers who need items quickly. It also helps customers avoid high shipping costs on bulky items, making it an attractive option.

To maximize BOPIS, brands can strategically display complementary products near the pickup area, encouraging additional purchases. Peak shopping seasons like Cyber Week further boost BOPIS’s value as customers seek quick and convenient shopping options.

EMERGING TECHNOLOGIES

Artificial intelligence (AI), augmented reality (AR) and virtual reality (VR) are transforming the home furnishings industry by enhancing the shopping experience and building customer confidence. Forty-two per cent of consumers haven’t yet used these tools for furniture purchases but those who have felt more confident in their choices, ultimately reducing return rates.

AI tools like chatbots and product recommendations help guide customers to the right items, while AR enables them to visualize products in their own spaces. VR offers immersive experiences, allowing consumers to explore products online as if they were in a physical showroom.

Though VR requires a larger investment, more accessible technologies like AI and AR can provide significant value. By adopting these tools, brands can meet today’s consumer expectations, reduce returns and create a seamless, confidence-boosting shopping journey.

MJ Barazon is product marketing manager at BigCommerce, a leading open software-as-a-service and composable e-commerce platform that empowers brands and retailers of all sizes to build, innovate and grow their businesses online. BigCommerce provides its customers sophisticated enterprise-grade functionality, customization and performance with simplicity and ease-of-use. The company’s newest consumer report, The Omnichannel Customer Journey: The New Buyer Experience for Home Furnishings Shoppers, serves as the basis for this article.

Sixty-nine per cent of consumers have used ‘buy online, pick up in store’ in the last year, with 80 per cent purchasing additional items when they arrived to collect their order.

The POWER UP convention saw record-breaking purchases that showcased exclusive o ers on appliances, bedding, and furniture.

23,000 Sq. ft. vendor exhibit

58 Booths

Personalized with Pride

BDM + Furniture’s continued commitment to quality, craftsmanship speaks volumes amid race to mass production and commercialization BY TYLER

HOLT

THE WORLD OF FURNITURE MANUFACTURING

has seen dramatic shifts over the last few decades, as globalization and mass production have upended traditional business models. Despite these challenges, some companies remain steadfast in their commitment to quality, craftsmanship and customization. One such company is Quebec-based BDM + Furniture, whose brands include Bermex, Bertainie and Dinec. BDM has carved a niche in the upper-middle and high-end custom-made furniture markets. With a rich history, focus on superior building materials, and deliberate blend of skillful workmanship and selective technological integration, BDM has positioned itself as a leader in the industry.

A LEGACY OF LEADERSHIP AND TRANSITION

BDM was founded in 1983, by Richard Darveau, a visionary in the Quebec furniture industry, whose passing in recent years marked a significant transition for the company. Today, BDM is managed by Richard’s children, including son Philippe. With 17 years’ experience in the furniture industry, Philippe is chair of the board and plays an active role in decision-making, ensuring the company remains true to its roots.

The new leadership structure, comprised of Martin Desaulniers as president and Marie Cossette as CFO, has guided BDM through this transition. Robert Kelly, vice-president of sales, has been with the company for more than a decade, bringing extensive experience from other notable furniture manufacturers, such as Canadel and Heritage Home Group. Under this leadership, BDM has continued to evolve, balancing its historical foundation with modern demands, while ensuring the company’s core values remain intact.

FURNITURE MANUFACTURING IN QUEBEC

Quebec’s reputation as a hub for high-calibre, custom-made furniture is well-known, and BDM has become a key player within this industry. The

region’s strength lies not only in its abundance of hardwood forests but also in its deep tradition of craftsmanship. This combination has made the province a prime location for manufacturers dedicated to producing solid wood furniture that prioritizes quality and durability over assembly-line production.

Kelly compares the Quebec furniture industry to that of Amish country in the United States, where skilled workmanship and custom, smallbatch production reign supreme. Just as Amish furniture makers are known for their woodworking expertise, Quebec’s manufacturers have a similar tradition of excellence. Small village towns across the province have a rich history of skilled woodworkers, creating an environment where companies like BDM can thrive by tapping into both the skilled labour pool and raw materials the region provides.

“We’ve chosen to use yellow birch because of its rigidity, its ability to expand and contract, and its versatility in accepting multiple colours,” explains Kelly.

The choice of yellow birch isn’t just aesthetic; it’s practical, as it holds up well in different climates, including the fluctuating humidity levels found in regions like the northeastern U.S.

CUSTOMIZATION A KEY DIFFERENTIATOR

In an industry where furniture options are increasingly driven by mass production, BDM has taken an alternative approach, focusing on providing individualized pieces for its customers. The company’s dedication to customization is a major differentiator in the market, allowing it to stand out against lower-priced alternatives, particularly those made in Asia.

“We specialize in personalizing furniture to the best of our abilities, with over 220 different chairs available in all different finishes and fabrics,” says Kelly.

BDM offers its customers the ability to tweak designs, select from a wide range of finishes and

Quebec-based BDM + Furniture has three brands.

make choices that reflect their individual tastes. This level of customization not only ensures that the furniture fits perfectly into a customer’s home but also adds a unique value proposition that mass-produced furniture simply cannot match.

Customization at BDM goes beyond simply offering a few variations on a product. Consumers can choose from different chair styles, table shapes and wood finishes, tailoring furniture to their exact specifications. This approach means each piece of furniture is crafted with the customer’s preferences in mind, from the initial design stages to the final finishing touches.

“It’s not just, ‘Here’s our dining room set, here’s the price’,” says Kelly. “We explain what we do, what our roots are and the type of construction you can expect from us.”

BALANCING TRADITION WITH TECHNOLOGY

While BDM prides itself on its craftsmanship, the company also recognizes the importance of integrating modern technology where it enhances the production process without compromising quality. This approach has allowed BDM to stay competitive in an industry where efficiency and cost management are crucial.

One of the key technological innovations at BDM is the introduction of a laser cutter for fabrics, which has helped streamline the upholstery process. Additionally, the company has invested in a tabletop sander, which allows for more consistent finishes on its wood products.

“We’ve integrated technology to maximize efficiency but we haven’t sacrificed the artisanal quality of our finishing, which is still hand-done,” says Kelly.

The company’s upcoming launch of a 3-D visual configurator is another example of how BDM is using technology to enhance the customer experience. The configurator will allow customers and sales associates to visualize furniture pieces in real-time, ensuring the right combinations of finishes, materials and styles are selected before an order is placed. This will not only improve accuracy in custom orders but also help consumers better understand the options available to them.

Kelly acknowledges the integration of technology is a delicate balance, particularly for a company that places such a high value on craftsmanship.

“If we don’t have that hands-on approach, we just become one of those other manufacturers building on volume,” he says.

By carefully choosing which processes to automate and which to maintain by hand, BDM ensures its products remain unique and of the highest standard.

INNOVATING WITHOUT COMPROMISE

Quebec has long been recognized as a trendsetter in North America, particularly when it comes to design. Whether in fashion, food or furniture, the region has been at the forefront of innovation, often blending contemporary styles with traditional elements. BDM is no exception, as the company continually pushes the boundaries.

BDM + Furniture board chair Philippe Darveau.

With more than 220 chair designs and a wide range of finishes and fabrics, BDM + Furniture offers extensive customization options to meet diverse consumer preferences.

“I saw these contemporary, transitional trends coming from Quebec in the ‘90s, and it’s still leading the way in terms of unique designs,” says Kelly about Quebec’s influence in the furniture industry.

The ability to blend the old with the new is a hallmark of Quebec’s furniture industry and BDM’s furniture reflects this philosophy. For instance, while the company remains committed to traditional woodworking techniques, it has recently introduced new collections that feature modern materials and designs. The company’s use of oak and walnut in recent product launches is a testament to its ability to innovate within the framework of classic craftsmanship. By offering new finishes and fabrics that appeal to contemporary tastes, BDM ensures it stays relevant in a rapidly evolving market.

One of the key design trends that BDM is embracing is the mid-century modern aesthetic, which has seen a resurgence in popularity in recent years. The company’s upcoming oak collection showcases softer, more rounded lines than previous offerings. The new line will also feature a more natural, ecological finish, allowing the characteristics of the wood to shine through.

EDUCATING ON THE VALUE OF QUALITY

One of the biggest hurdles BDM faces, according to Kelly, is educating consumers on the value of high-quality, custom furniture. In an age of fast fashion and disposable goods, many consumers are unaware of what goes into crafting a piece of solid wood furniture or why it might cost more than a mass-produced alternative.

“The challenge is to make sure we translate the value proposition to the end-consumer,” says Kelly.

“Many people don’t know what a quality chair or bed should cost but if they understand what they’re purchasing, they can make an informed decision about the furniture they want in their home.”

By providing customers with information about the materials, construction techniques and labour involved in making a piece of furniture, BDM aims to create an informed customer base that appreciates the craftsmanship behind its products.

This educational approach is particularly important as BDM competes in a global market where cheaper alternatives are readily available. However, Kelly remains confident that once consumers understand the difference between those items and what BDM offers, they will see the value in investing in a product that will last for generations.

A BRIGHT OUTLOOK

Looking to the future, BDM remains focused on maintaining its high standards of craftsmanship while continuing to innovate. The introduction of new materials, such as oak, and the company’s ongoing commitment to customization ensure it remains competitive in the ever-evolving furniture industry.

Additionally, BDM is exploring new ways to integrate functionality into its designs. For example, the company is working on expandable table designs that allow customers to maximize their dining space without compromising on style or quality. These functional innovations, coupled with the company’s dedication to staying on-trend with new finishes and fabrics, position BDM for continued success in the high-end custom furniture market.

Tyler Holt is the editor of Wood Industry magazine, a MediaEdge-produced publication. He has a master’s degree in literation and publication, and years of experience in the publishing and digital media industry.

“If we don’t have that hands-on approach, we just become one of those other manufacturers building on volume.”

BDM + Furniture specializes in crafting high-quality, customizable furniture using North American birch, known for its beauty and sturdiness.

Where Quality and Comfort Begins MINH S

Beyond the Headboard

Leveraging top-of-bed for bottom-line growth

BY JONATHAN HE

IN THE EVER-EVOLVING LANDSCAPE OF home goods retail, staying ahead of the competition requires more than just offering the latest furniture. It demands a holistic approach to meeting consumer needs and enhancing their shopping experience. One significant yet often underutilized opportunity lies in the booming top-of-bed market.

A report by business consulting firm Grand View Research found the U.S. home bedding market was worth an estimated $25.7 billion US in 2023. From 2024-2030, it is projected to increase at a compound

annual growth rate of 7.1 per cent. This impressive growth will be driven by increased consumer spending on bedding products and significant developments in the housing sector. As more individuals move into residential areas and invest in home comfort, the demand for quality bedding is expected to continue to rise.

For retailers, this growing market represents a substantial opportunity to capture additional revenuestreams.Integratingtop-of-bedproducts—sheets, comforters, pillows and other bedding accessories —

into your store’s inventory can enrich customer satisfaction, significantly boost sales and solidify your market position.

ELEVATE THE CUSTOMER EXPERIENCE

At the heart of retail success is customer satisfaction. When customers purchase a new bedroom set, they envision a transformed space that reflects their personal style and comfort preferences. However, bedroom furniture is typically designed in neutral colours — brown, grey, black and white — to appeal

to a broad range of consumers and blend with various decor styles. While this neutrality offers versatility, it can lead to a lacklustre appearance when placed in an equally colourless room at home. Without the added depth and visual interest provided by top-of-bed products, consumers may find their new furniture doesn’t create the impactful look they envisioned, leading to disappointment. Even bedding choices that maintain a neutral palette, like a white linen bedspread, can significantly enhance a room’s aesthetic. The introduction of textures, layers and subtle patterns through bedding adds dimension and warmth to a space. The interplay of different fabrics, such as the smoothness of cotton sheets against the woven richness of a knitted throw, creates a visually appealing and inviting atmosphere.

By offering a range of stylish top-of-bed products, retailers help customers add that essential finishing touch to their bedrooms. This approach goes beyond a mere sales tactic; it’s exemplary customer service. Helping customers select coordinated bedding ensures they leave the store with a complete look that meets their expectations, whether they prefer bold designs or understated elegance. This proactive support can prevent post-purchase remorse, reduce the likelihood of returns or complaints, and foster a positive shopping experience that encourages loyalty and repeat business.

IMPROVE AVERAGE TRANSACTION VALUE

Building on the enhanced customer experience, offering top-of-bed products naturally extends the sales conversation and presents excellent cross-selling opportunities. When customers are already in the mindset to revitalize their sleep environment, they are more receptive to suggestions that complete their vision. By integrating complementary items like silky sheets, luxurious duvet covers or decorative pillows into the sales process, retailers can increase the average transaction value significantly.

According to the National Retail Federation, effective cross-selling strategies can boost average sales per customer by up to 20 per cent. Training sales associates to seamlessly incorporate top-of-bed recommendations without appearing pushy enhances the consumer’s perception of personalized service while positively impacting the bottom line.

ENHANCE SHOWROOM AESTHETICS

A compelling in-store experience is crucial for engaging customers and influencing purchasing decisions. Incorporating top-of-bed products into showroom displays transforms standard furniture setups into immersive, aspirational environments. By showcasing complete bedroom ensembles with coordinated bedding, retailers help customers visualize how the products will look in their own homes, making the idea of a purchase more tangible and appealing.

DRIVE INCREASED STORE TRAFFIC

An expanded product range attracts a broader customer base. While some shoppers may not be in the market for large furniture pieces, they might be interested in updating their bedding or exploring the latest home decor trends. Offering top-of-bed products taps into this market segment, increasing foot traffic and creating additional sales opportunities. Seasonal collections, limited-edition designs and collaborations with popular designers can generate buzz and draw new customers. Hosting in-store events like bedding style workshops or exclusive previews of new collections positions a store as a destination for home decor inspiration. This strategy not only boosts immediate sales but also enhances brand visibility and reputation in the community.

Regularly updating displays with new styles, colours and seasonal themes keeps the showroom fresh and captivating. Interactive elements, such as fabric swatches or digital configurators that allow customers to mix and match bedding options, can further enhance engagement. Effective visual merchandising not only drives sales of top-of-bed products but also elevates the perceived value of the store’s overall offerings, setting the stage for increased customer satisfaction and loyalty.

OPPOSITE PAGE: The Provence comforter set from HiEnd Accents is inspired by the colourful toile patterns of the 1980s. ABOVE: The tweed comforter set in neutral brown, also from HiEnd Accents, lends a tailored, structured feel to the bedroom reminiscent of menswear suits.

“Offering top-of-bed products naturally extends the sales conversation and presents excellent crossselling opportunities.”

GAIN A COMPETITIVE EDGE

In a market saturated with options, differentiation is key to attracting and retaining consumers. By providing a comprehensive selection of bedroom essentials, including top-of-bed products, retailers position themselves as a one-stop destination for all bedroom needs. This convenience appeals to modern consumers who value efficiency without compromising on quality or style.

Staying attuned to emerging trends in bedding, such as sustainable materials, hypoallergenic options or smart bedding technologies, can attract niche markets and demonstrate a retailer’s commitment to innovation. This proactive approach enhances a store’s reputation as an industry leader, appealing to discerning custom-

ers and setting the business apart from competitors who may focus solely on furniture or mattresses.

STRATEGIES FOR SUCCESS

Integrating top-of-bed products requires thoughtful execution to maximize benefits.

Collaborate with suppliers who offer more than just inventory. A strong partnership includes tools and training that empower your store to effectively sell top-of-bed products. This support might encompass merchandising guidance, sales training for staff and marketing materials to promote products. Suppliers committed to mutual success work closely with retailers, ensuring that everyone in the value chain — from the supplier to the retailer to the end-customer — is satisfied.

Stock a variety of styles, materials and price points to cater to a wide range of customer preferences. Offering options from luxury to budget-friendly ensures inclusivity and broad appeal. Incorporate eco-friendly or technologically advanced bedding to attract customers interested in sustainability or innovation.

Equip your sales team with in-depth product knowledge and cross-selling techniques. Welltrained associates can confidently recommend products and provide personalized advice, enhancing the shopping experience. Regular training sessions, product demonstrations and incentives can keep the team motivated and informed.

Leverage multiple marketing channels to highlight your expanded product range. Utilize social media to showcase new arrivals, send e-mail newsletters with bedding tips and create in-store promotions that encourage combined purchases of furniture and top-of-bed items. Highlighting customer testimonials and before-and-after room transformations can be particularly persuasive.

Encourage and value customer feedback to refine your product offerings continually. Use surveys, comment cards or direct conversations to gather insights. Being responsive to customer preferences not only improves satisfaction but also fosters a sense of community and trust between you and your clientele.

Jonathan He is president of HiEnd Accents, a designer and creator of everyday luxury top-of-bed and other home textiles. Founded in 2005, the Dallas-based company’s mission is to elevate customers’ lives via beautifully designed home textiles that deliver quality and value.

The windowpane plaid bedding set from HiEnd Accents is rooted in the timeless tradition of woolen plaids. Its soft, yarn-dyed design dances in a melody of hunter green.

‘SELLING’ SPECIALTY SERVICES

How to elevate your in-house design centre to boost the customer experience, cultivate store sales BY

ERIK LILLEJORD

OFFERING DESIGN SERVICES CAN BE A game-changer for furniture and home goods retailers, yet many customers overlook these opportunities even when they’re free. Why?

Often it’s because these services lack perceived value.

Retailers must rethink how they present and market their design offerings to tap into their full potential and create a competitive edge.

THE VALUE PROBLEM

Retailers frequently advertise free design services through websites, social media and television advertising campaigns, but customers remain hesitant to engage. While ‘free’ should be a strong motivator, it often leads to skepticism. For customers, free might mean low-quality or generic solutions. To overcome this, retailers need to emphasize the true value of their design services by showcasing expertise, personalization and tangible results.

PERSONALIZE THE PITCH

One of the biggest mistakes that retailers make is presenting design services as an abstract offering. Customers don’t want an anonymous process; they want a connection with a skilled professional who understands their style and preferences. Until potential clients feel confident about who will be designing their space, they’re unlikely to take the leap.

The key to breaking down this barrier is humanizing your designers and making them approachable. Replace selfies or stiff studio portraits on your website with professional photos of designers in natural settings like your store. This visual presentation should exude professionalism and relatability. Also, provide a profile and Q&A section for each designer. Include their design philosophy, inspirations and specialties to help customers find someone who aligns with their style. As an added touch, showcase glowing reviews from satisfied clients for each designer. These endorsements build trust and credibility.

When a customer connects with a designer’s profile, encourage them to book a consultation. This is the perfect moment to ask for the conversion.

By giving customers the ability to choose their designer, you create a sense of ownership and connection, increasing the likelihood they’ll move forward with your services.

DEMYSTIFY DESIGN

Another common misconception is that design services are only for affluent customers with lavish budgets. To combat this stigma, retailers need to address budgets head-on and demonstrate that great design is attainable for everyone. Transparency about costs also helps customers feel prepared and comfortable.

Provide examples of what your designers can achieve within various budget ranges. Consider creating displays or digital portfolios featuring stunning designs completed with modest budgets.

Further, incorporate content in your marketing materials that explains how working with a designer can maximize value and avoid costly mistakes.

In combination, these efforts will make customers feel more confident about exploring this option.

OVERCOME THE CHALLENGES OF VIDEO

Video is a powerful way to promote design services and humanize your brand, but it can be intimidating for camera-shy designers. Fortunately, there are creative solutions like non-verbal filming, voiceovers and using actors as stand-ins.

Capture designers in their element — sketching, measuring or selecting fabrics — rather than having them speak directly to the camera. This approach feels authentic and avoids the stress of memorized lines.

Pair beautiful visuals with a professionally narrated voiceover. This elevates the presentation and ensures a polished message.

For designers who prefer to stay entirely off-camera, use actors to represent your team. Most customers won’t mind, especially if the video is well-executed and showcases your store and services.

CREATE AN INVITING DESIGN SPACE

The environment where customers meet with your designers can make or break their experience.

Leading retailers like Restoration Hardware, now known simply as RH, invest heavily in design centres that are open, stylish and inspiring. If your design area is tucked away in a dimly lit corner or cluttered with fabric samples, it’s time for a revamp.

Visibility and accessibility are key. Position your design centre prominently within the store. A central, well-lit location signals that design is a priority for your business.

Equip the area with sleek, professional furniture that aligns with your brand’s aesthetic. Avoid using clearance inventory that diminishes the space’s appeal.

Keep fabric swatches and samples minimal, organized and visually appealing. An overcrowded display can overwhelm customers.

When customers feel inspired and comfortable in your design space, they’re more likely to trust your designers and commit to a project.

KEY METRICS FOR TRACKING SUCCESS

To grow your design services, you need measurable goals and accountability. Define key performance indicators (KPIs) and integrate them into your monthly reporting to ensure progress.

Effective KPIs are design service requests/ appointments, conversion rates and average sales per consultation. Track the number of design service inquiries to gauge the effectiveness of your

marketing. Monitor how often consultations result in sales, both by store and by designer. This identifies strengths and areas for improvement. Measure the ticket size for transactions involving design services. Higher averages reinforce the value of your offering.

Sharing these metrics with store managers and holding regular reviews ensures everyone is aligned on the importance of design services.

THE ROLE OF A DESIGN MANAGER

A strong design department requires dedicated leadership. Hiring the right design manager can significantly impact the success of your program. However, finding the perfect fit may take time and perseverance.

While the manager doesn’t need to be a designer, they should have an eye for aesthetics and fashion trends. Also, look for someone who can inspire and guide a team, not just excel individually. Given the opportunities for media appearances, a camera test during the interview process can be valuable, too.

Once hired, empower your design manager with the tools they need to succeed. Include them in store manager meetings to foster collaboration and accountability, and in marketing campaign planning to ensure design services are well-represented. Allocate funds specifically for enhancing design services, giving the manager the resources to make impactful changes.

BRING IT ALL TOGETHER

Elevating your design services requires more than offering consultations. It demands a strategic approach that emphasizes personalization, transparency and professionalism. By showcasing your designers as approachable experts, creating an inspiring design space, and implementing strong leadership and metrics, you can transform your design program into a powerful driver of sales and customer loyalty. In an industry where differentiation is key, a well-executed design program can set you apart and turn occasional customers into lifelong advocates.

Erik Lillejord is an account director at Linnihan Foy, a full-service marketing agency that has been specializing in furniture for more than a decade. Based in Minneapolis, Erik works closely with many furniture brands, including top 100 retailers and manufacturers, and is a member of the Home Furnishings Association.

Use video to promote your design services and build a connection with customers.

CANADA’S RETAIL

DIGITAL TRANSFORMATION

Unlocking the future for small, medium-sized businesses

BY LUC DUMONT & ADRIAN BACHMANN

SMALL AND MEDIUM-SIZED BUSINESSES

(SMBs) are at the heart of Canada’s economy, driving employment and contributing significantly to gross domestic product. Over the past few years, these businesses, especially retailers, have faced no shortage of challenges that they’ve had to navigate largely on their own, unlike larger companies with the backing of big national or global corporations. The pandemic brought supply chain disruptions and changing consumer behaviours, while the rapid pace of digital transformation continues to reshape how businesses operate.

Despite these obstacles, many Canadian SMBs have shown resilience and creativity, finding ways to adapt for growth and success. Recent research by the Retail Council of Canada and Leger, from a survey of approximately 750 Canadian SMBs, shows 88 per cent of SMBs that sell physical goods to end-users now use at least one digital tool, from payment processing systems to social media management platforms. These tools are changing how businesses sell, connect with customers and streamline operations.

While digital transformation opens the door to incredible opportunities, it doesn’t come without its difficulties. SMBs must navigate these hurdles to fully leverage the potential of digital tools and stay competitive in an evolving market.

ADOPTING MODERN TOOLS

The pandemic fast-tracked digital adoption among Canadian SMBs, with platforms like Shopify, Amazon, Facebook and Instagram leading the charge. During this time, 38 per cent of SMBs reported increased usage of digital tools, which have levelled

the playing field by giving even the smallest retailers access to advanced e-commerce capabilities and the chance to compete on a larger scale.

Digital sales channels, such as online stores and marketplaces, now make up 46 per cent of SMB revenue. Looking ahead, 87 per cent of SMBs plan to maintain or increase their use of digital tools — a clear indication of the growing reliance on digital-first strategies to boost customer engagement and improve operations.

CHALLENGES ALONG THE DIGITAL PATHWAY

While digital tools offer significant advantages, many SMBs face notable barriers to adoption. Limited resources, cited by 38 per cent of survey respondents, remain a major challenge. Many business owners simply lack the budget to invest in robust digital infrastructure or hire the experts needed to manage these tools effectively.

Additionally, 28 per cent of SMBs report a lack of expertise as an obstacle, particularly when it comes to adopting more advanced tools like app stores or search engine optimization platforms.

Another timely challenge for Canadian SMBs is the reliance on one or a few external partners to deliver goods to customers. While digital channels help SMBs reach broader audiences, disruptions with key delivery partners, such as Canada Post, can lead to delays and impact customer satisfaction. This shift to digital also brings other critical areas like logistics and supply chain reliability into sharper focus — areas SMBs need to address to ensure a seamless customer experience.

TURNING OBSTACLES INTO OPPORTUNITIES

Despite the challenges, there’s reason for optimism. Canadian SMBs are finding innovative ways to overcome obstacles to digital adoption. Affordable and user-friendly tools like Shopify, which powers 41 per cent of SMB web stores, are making e-commerce more accessible. Social

media’s click-to-buy features also provide an easy way for businesses to connect with tech-savvy consumers without requiring complex integrations.

Partnerships and third-party services are proving invaluable, too. Fulfillment solutions like in-store pickup and standard shipping enable SMBs to compete with larger retailers by offering convenience and improving customer satisfaction.

Digital transformation is also opening doors to new markets. Platforms like Amazon Marketplace allow SMBs to reach international audiences, bypassing geographical limitations to scale their operations globally. These strategies highlight how digital tools and creative solutions are helping SMBs not just survive but thrive in an increasingly digital economy.

PREPARING FOR WHAT’S TO COME

The future for Canadian SMBs lies in embracing digital transformation strategically. There are three practical steps for businesses looking to succeed in this shifting landscape: start small; invest in training and support; and leverage analytics.

Begin with one or two digital tools like setting up a web store or using a social media marketplace. Expand gradually based on performance and your business’s capacity to manage growth.

Close the skills gap by providing staff training or partnering with external experts who can guide your digital journey. Building expertise ensures long-term success.

Utilize analytics from Google or Shopify to track consumer behaviour and fine-tune your sales strategies in real-time. Data-driven decisions can make all the difference.

As digital tools continue to evolve, they will bring even more opportunities for SMBs to innovate, grow and engage with customers in meaningful and impactful ways.

Luc Dumont is senior vice-president of consumer insights at Leger, the largest Canadian-owned market research firm in the country, offering expert insights to help brands make informed decisions. Adrian Bachmann is associate vice-president of consumer insights for the company’s Central Canada division.

Smart Stores

Artificial intelligence retail trends, strategies to future-proof your business BY

RICHARD HARRIS

IN 2025 AND BEYOND, RETAIL MARKETING will continue to evolve with technology development, shifts in consumer behaviour and new demands for personalization and convenience. Here are 10 key trends and strategies that will shape its future.

1Hyper-personalization with artificial intelligence (AI) and data. Since consumers want to feel deeply understood by brands, hyper-personalization will be manifested across all touchpoints. AI-powered systems that run on customer data in real-time will provide consumers with personalized product recommendations. Websites, e-mails and apps will show dynamic content that changes based on a user’s preferences and behaviours. Immersive technology like augmented reality (AR) and virtual reality will let customers ‘try before they buy.’ Invest in predictive analytics, machine learning and AI-driven personalization platforms.

2 Phygital retail experiences. The amalgamation of physical and digital, better known as phygital, will rule retail commerce. In-store experiences will be enabled by technologies like interactive kiosks, QR codes for instant information and cashier-less checkouts. Seamless transitions can be expected to occur online and in-store, as ‘buy online, pick up in store’ maintains its popularity. Flagship stores will focus on experiences like pop-up events, live demonstrations and interactive displays to drive foot traffic. Develop retail locations that offer unique, tech-enhanced experiences to stand out.

3 Social commerce growth. Social commerce or shopping directly through social media channels will only continue to grow as platforms like Instagram, TikTok and Pinterest make the experience seamless. Shoppable live streams where influencers and brands run live sales events to show products in real-time will be the next big

thing in online shopping. Smaller, highly engaged influencer networks will continue to drive conversions through telling stories in an authentic way. Brands will utilize generative AI tools to create rapid, on-trend content to cater to platform-specific audiences. Amplify your social media platforms and test interactive formats like live streams and AR filters.

4Sustainability and ethics in marketing. Consumers, especially zoomers and millennials, will be willing to pay a premium for goods that meet specific environmental and ethical criteria. Highlight your direction to sustainability by using recyclable or reusable packaging. Provide clear, easily accessible information about sourcing and production processes, and offer trade-in, repair or rental programs that keep products in use longer. Use sustainability as a core differentiator in messaging and product design.

5 Voice and visual search. Smart assistants and visual search tools will dramatically alter the way customers discover products. Ensure product descriptions are friendly to voice queries. With greater use of Google Lens and Pinterest Lens, there will be a need for visual shopping, where product images should be clear, optimized and AI-readable. Expand search engine optimization strategies to include voice and visual searches.

6

Retail media networks. Brands will increasingly leverage first-party data by creating their own retail media networks. Walmart and Target are already converting ad spaces to revenue streams, enabling brands to reach shoppers with accuracy. Retailers will collaborate with brands for effective promotions that are highly targeted on owned platforms. Consider creating a retail media strategy and, equally so, partnering with major networks.

7

AI chatbots and conversational commerce.

Conversational AI is going to reshape customer service and sales. AI assistants will guide customers through purchase journeys, answer queries and provide real-time support. From WhatsApp to Facebook Messenger, messaging apps will become major shopping destinations. Invest in conversational AI for customer service and add sales capabilities through messaging apps.

8 Subscription and membership models.

Subscription services will continue to grow by offering exclusive benefits and fostering deeper relationships with customers. Have membership tiers with different perks, such as early access to new

collections or personalized styling services. Automate the replenishment process for frequently purchased goods like homeware. Probe subscription-based revenue channels as they ensue retention.

9

Immersive brand narratives. Storytelling will remain at the core but will evolve with gamified and interactive elements. Give access to unique, blockchain-based digital assets like non-fungible tokens that are connected to physical products. Engage customers and reward them through challenges, loyalty points or AR experiences. Craft strong storytelling by integrating physical, digital and collectible experiences.

10

Edge computing for quicker customer experience. Edge computing will reduce latency in online experiences. This will make things like AR interactions, payment processing and app responsiveness even more seamless. Web and in-store interactions will be faster, reducing abandonment rates and improving satisfaction. Smart mirrors, connected carts and location-based offers will become more effective and intuitive. Low-latency, high-speed customer interactions require a strategic focus on infrastructure upgrades.

Richard Harris is vice-president of digital happiness at Orbit Interactive, which has been delivering on its purpose of helping companies navigate the complexities of the digital landscape since the turn of the 21st century.

Interactive kiosks are a powerful tool for integrating virtual and augmented reality into retail experiences.

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SHOW ME THE MONEY

How to increase retail cash flow to improve business profitability BY

DAN JABLONS

RETAILERS OFTEN THINK THE NEXT BOOST in their business is going to come from finding a new, amazing line of merchandise or discovering a leading-edge marketing tool. Sometimes they believe it will happen if they hire a seasoned salesperson. And they always hope new businesses will fill vacancies around them, as that will bring more customer traffic to the area.

The problem with these ‘solutions’ is they are external to your business. You cannot predict or control them, nor can you invoke them when you need more cash. Given this, they shouldn’t be your primary focus.

Instead, there are small tweaks you can make that will have an enormous impact. They are easy to implement and if done properly, will bring about tremendous change.

ADJUST SELLING COST

Most retail businesses operate on some form of base salary plus commission structure. Many stores pay commission on the first dollar sold. This should not be done; salespeople should be required to hit a goal before receiving commission on their sales. What’s more, this type of commission structure does not keep your cost of sales in line. Let’s tweak that and see the results.

First, a definition. Selling cost is defined as the percentage of sales that go to pay your salespeople. The formula is total cost of sales (including salary plus commission) divided by total sales (before tax) multiplied by 100. As an example, if you have an employee whose payroll cost is $1,700 a month, and that employee sells $12,500 in merchandise, then the selling cost for that employee is 13.6 per cent.

Now, what if you have a commission plan that keeps the selling cost at nine per cent?

You would then take the hourly wage for your employee and divide it by 0.09. That number is the employee’s hourly goal. So, for example, if you have an employee that is paid $10 per hour, their hourly goal is $111. In other words, they must sell $111 in merchandise each hour they work.

“Open-to-buy is an inventory management strategy that helps retailers understand how many products they need to purchase, preventing overbuying and underbuying.”

Next, take that hourly goal and multiply it by the number of hours worked in a week. If the employee works 30 hours, the goal is $3,330. Once hit that week, the employee is paid nine per cent on all sales above $3,330. This provides an incentive to sell, gives the employee a good commission and keeps your selling cost low.

LOWER PURCHASES

Lowering your purchases to save money seems easy enough but it requires some thought and planning. Specifically, you need to find your competitive advantage in the marketplace and how you can exploit it. You can then determine the departments you will grow and those that are carrying more inventory than they should and need to be cut back by a percentage, for example, two per cent. This can be done systematically by employing an open-to-buy planning system. Open-to-buy is an inventory management strategy that helps retailers understand how many products they need to purchase, preventing overbuying and underbuying. Using this method, stock levels should correspond with most recent sales trends.

There is a reason every major chain, department store and large retailer uses an open-to-buy plan — it creates cash flow for the store and customers come back more often to see what is new. Most independent retailers cannot afford to purchase open-to-buy software that includes sophisticated forecasting and planning tools, but there are services that can help.

MODIFY MARKDOWNS

Most independent retailers do not have a solid markdown strategy. Goods need to be given sufficient time on the floor to sell, but after that the slow movers need to be identified to get cash out of them. The earlier this is done, especially for seasonal goods, the lower the markdowns and the better chance of moving the products faster.

Markdowns are necessitated by a receipt of late goods, overbuying beyond demand, inadequate department structure, bad forecasting or buying, too broad or narrow of an assortment, failure to act early to substandard sellers, poor performance on the sales floor, production issues with the merchandise and salespeople not understanding or not liking the product.

Strategies and measurements can be developed to reduce or control all of these factors. For instance, if a vendor ships late, you should request and receive free shipping, markdown money or be able to return the goods. Remember, shipping past a cancellation date is something you do not have to permit. Cancel dates are terms of the agreement and if a vendor is in violation, you have the right to either compensation or to terminate the agreement.

Also,watchyoursalesfloorandmakesureemployees have sufficient product knowledge so they can effectively sell the products. If a new product comes in, your sales staff need to become instant experts on it. Request that vendors/manufacturers share all information on a product, as it is critical to your staff’s ability to talk to customers about the product and ultimately sell it.

Dan Jablons is president of Retail Smart Guys, a provider of consulting services to specialty retail stores. Dan brings many years of retail experience to any size store to improve their operations, revitalize their marketing and maximize their profits. He can be reached at 818-720-2585 or dan@retailsmartguys.com.

The Price is Right

Determining your cost strategy impacts all facets of your business

BY DONALD COOPER

EVERY BUSINESS, LARGE OR SMALL, MUST address one fundamental question: In our target market, for our chosen customers, are we going to be the cheapest or not the cheapest?

You cannot create a business model, clear market positioning or make any important decision in your business until you address this critical question. Why?

Because every business decision you make and every action you take will depend on your answer. Decisions about what you’ll sell; to whom you’ll sell; how and where you’ll sell; the price you’ll charge; who you’ll hire and how you’ll train and reward them; the policies, systems and processes you’ll put in place; your management focus; the culture you’ll create; the behaviour you’ll reward and celebrate; your organizational structure; your branding, marketing, packaging, promotion and advertising; and the list goes on. Essentially, the very look and feel of your business will be completely different depending on how you answer this basic question.

If you don’t address this key issue, you run the risk of being in the undifferentiated, boring and very crowded ‘muddy middle’ in your market. And that’s a lousy place to be.

Should you decide to be the cheapest, just about

everything you do will be focused on low overhead, cost control, high sales volume, world-class operational efficiency and effectively communicating your powerful ‘lowest price’ message in an overcrowded marketplace. Walmart, Costco and Ryanair in Europe are great examples of companies that have succeeded wonderfully at ‘being the cheapest.’ They have a clear vision, they’re lowpriced, very efficient and they make money.

Before determining that you will be successful by being the cheapest, you must first be absolutely sure you can sustain that market positioning, both honestly and profitably. You cannot be the lowest cost seller if you’re not also the lowest cost operator. The focus of your marketing message will be, ‘Let us save you some valuable time. We are the cheapest and here’s how we do it.’

Why do you need to tell people how you do it?

Because so many businesses claim to be the cheapest. If you can’t tell your target customers in a clear and believable way exactly ‘how you do it’, they’ll never believe you actually are the cheapest

and your compelling difference will be lost.

Some businesses cleverly state right in their name how they sell at low prices. End of the Roll carpet stores, No Frills grocery stores and Rent-AWreck car rental are a few examples.

Now, what if your positioning is not to be the cheapest?

You still need to be highly efficient but you must also be passionately focused on creating and delivering enough value to easily explain your higher price. And then you must effectively communicate that value story in a way that clearly differentiates you from everyone that’s cheaper.

In this case, the focus of your marketing message will be, ‘We may as well tell you right now, we’re not the cheapest and here’s why.’ (Though you likely won’t say it in exactly those words). Your ‘here’s why’ will be the compelling functional and emotional value and extraordinary experiences you always deliver. This makes you worth the higher price. Without any clear and compelling ‘here’s why,’ you had just better be the cheapest.

Donald Cooper has been both a world-class manufacturer and an award-winning retailer. Now a Toronto-based business speaker and management 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. Donald can be reached at donald@donaldcooper.com.

BUILD A BETTER PRESENCE

Platform tips, proven ways to turn social media into a powerful sales driver and long-term business asset

BY FREDY WRIGHT

IN TODAY’S COMPETITIVE RETAIL LANDSCAPE, social media is essential for growth. It offers a unique opportunity to engage directly with a broad audience. But success requires more than just a presence —itcallsforastrategicapproach,anunderstandingof audience behaviour and the ability to adapt to trends. By implementing expert strategies and leveraging data-driven insights, furniture retailers can turn social media into a powerful sales driver.

WHY FACEBOOK REMAINS ESSENTIAL

Despite the misconception that Facebook is primarily used by older generations, it continues to be

the No. 1 social media platform, particularly for businesses. Nearly half of users aged 12 and older log in on a weekly basis, according to Infinite Dial, the longest-running survey of digital media consumer behaviour in the U.S. However, a key challenge is that only about two per cent of followers will actually see posts in their feeds, reports social media management tool Hootsuite, which makes optimizing content for visibility critical.

Furniture retailers can boost visibility by ensuring their posts are mobile-friendly. Given that 82 per cent of social media users access platforms via smartphones, according to global customer engage-

ment software company Khoros, mobile optimization is essential. Additionally, Facebook provides valuable features like its feed and Facebook Audience Network (FAN), which extend a retailer’s reach to other mobile apps. With FAN, retailers can target users based on demographics, interests and behaviours, ensuring their content reaches the right audience at the right time. Advertising across the entire Facebook suite of apps (feed, Marketplace, FAN, Messenger, stories, search and Instagram) results in conversion rates eight times higher than targeting only Facebook users, says a Facebook IQ study.

INSTAGRAM, TIKTOK LEVERAGE VISUAL APPEAL

Instagram, the second most popular social media platform, is crucial for furniture retailers. Its visual-first nature is ideal for showcasing furniture collections, sharing design ideas and building brand identity. But Instagram also has its challenges; 96 per cent of posts will never be seen by followers, according to social media benchmarking tool Social Insider. To stand out, retailers must craft an effective content strategy that drives engagement.

In third place in terms of popularity is TikTok. A significant 31 per cent of TikTok users are between the ages of 35-54, 40 per cent of which say the platform has influenced their purchasing decisions, as reported by Exploding Topics, which uses search engine and social media data to analyze the latest trends. TikTok’s short-form videos and viral nature offer retailers the opportunity to create creative, entertaining content. However, TikTok’s audience behaviour is harder to predict, with engagement peaking in the afternoons and early evenings.

Combining Instagram’s visually engaging content with TikTok’s dynamic nature helps reach both older, loyal customers and younger, trendsavvy consumers.

BUILDING AUDIENCE CONNECTIONS

The key to social media success is not just pushing products but building genuine relationships with followers. Retailers should focus 80 per cent of their posts on engagement rather than direct sales. By sparking conversations and inviting followers to share their opinions, retailers can create an authentic connection and build a loyal community. For example, ask questions like, Which living room style do you prefer: modern minimalist or cozy cottage?

Video content is another powerful way to engage followers. On Facebook and Instagram, users spend nearly half their time watching videos, which generate five times more engagement than static posts. Furniture retailers can use video to share behind-the-scenes content, product demonstrations or design tips. Since 85 per cent of videos on social media are watched without sound, says industry experts, including captions is essential for increasing accessibility and engagement.

SIMPLIFYING CONTENT CREATION

Creating high-quality content consistently can be challenging for many retailers. However, tools like generative artificial intelligence chatbot ChatGPT can simplify the process. By entering a few prompts, furniture retailers can quickly generate post ideas, captions and content suggestions, making content creation more efficient and keeping their brand visible.

Another key strategy is posting at optimal times. With Facebook Insights, businesses can track when followers are most active. By scheduling posts to coincide with peak times, retailers can enhance engagement and increase reach.

PAID ADVERTISING BOOSTS REACH, IMPACT

While organic reach is important, paid advertising can significantly extend a retailer’s social

TOP: The vast majority of the world’s Internet users use a mobile phone to go online. BOTTOM: Social media users spend more time watching videos than reading posts.

Videos are quickly overtaking all other forms of content on social media. They’re dynamic, engaging and drive incredible results.

“Since 85 per cent of videos on social media are watched without sound, including captions is essential for increasing accessibility and engagement.”

media presence. Rather than simply boosting posts, retailers should focus on targeted advertising campaigns. Varos, the largest e-commerce and software-as-a-service data cooperative in the world, reports that median return on ad spend for retailers on Facebook is $5.32 US, meaning for every dollar spent, retailers generate $5 US in revenue.

Facebook’s advertising platform allows precise targeting based on demographics, interests and behaviours. Retailers can also use social mirror ads, which mimic the appearance of social media posts but show up on other websites and apps. This strategy allows retailers to reach more users beyond Facebook.

Combining paid ads with organic content creates a balanced approach that maximizes social media impact. Social mirror ads, which include multiple calls to action, are particularly effective in driving conversions and increasing website traffic. According to a survey by Hootsuite, 50 per cent of consumers say they use social media to discover new brands or products, especially in visually-oriented industries like furniture.

MEASURING SUCCESS WITH DATA INSIGHTS

To maximize social media efforts, retailers must monitor their campaign performance continuously. Using tools like Facebook Insights through the Meta Business Suite, retailers can track metrics like follower demographics, engagement and location. This data enables them to fine-tune targeting and content strategies. Retailers can also use benchmarking tools to compare their performance with competitors, identifying trends and areas for improvement.

The key to successful social media marketing is making data-driven adjustments. By tracking engagement, reach and conversions, retailers can refine their strategies to create content that resonates with their audience and drives results.

PARTNERING WITH EXPERTS

As social media trends evolve rapidly, staying ahead is crucial. Retailers looking to optimize their social media strategies should consider partnering with digital marketing experts. Experts can help develop targeted campaigns, refine content strategies and maximize the effectiveness of social media marketing.

Whether a retailer aims to boost brand awareness, increase sales or build a loyal online community, working with a digital marketing partner can lead to improved results. By combining creativity with data-driven insights, experts can ensure campaigns deliver measurable outcomes and sustainable growth.

THE FUTURE OF SOCIAL MEDIA

Social media has become an integral part of modern retail strategies. In the furniture industry where the sales cycle is longer, customers typically aren’t making impulse purchases when they first see an ad. Because of this, retailers must focus on building awareness long before the customer is ready to buy.

The goal is to lay the groundwork through a consistent and strategic social media presence so that when a customer begins their journey to purchase, your store is top-of-mind. By engaging audiences with relatable content, fostering connections and maintaining visibility across platforms like Facebook, Instagram and TikTok, your brand becomes a trusted option. Over time, this builds brand loyalty, increases sales opportunities and strengthens your reputation as the go-to store.

Fredy Wright is the senior digital director at Conquest Digital Solutions, a digital advertising firm focused on driving sales growth for furniture retailers and interior design clients through customdesigned campaigns. By leveraging advanced technology and innovative approaches, the company provides personalized services tailored to help businesses in these industries strengthen their online presence, boost customer engagement, maximize sales and refine their digital strategies.

INCLUSIVE MESSAGING FOR BRAND GROWTH

Crafting campaigns that resonate with consumers from various backgrounds in Canada’s multicultural market

BY ABHIJEET RAY

THE CHANGING FACE OF CANADA IS AN undeniable and irreversible reality. The growing diversity of communities based on recent immigration trends continues to scale multiculturalism, which offers both new opportunities as well as challenges for marketers and retailers. Statistics Canada expects that 40 per cent of the population will be visible minority groups by 2041, with about one-third being immigrants who lived in other countries before coming to Canada. This shift, to say the least, is significant and it is constantly changing the consumer market, making it neces-

sary for businesses to rethink their strategies to stay relevant.

In general, the shift bodes well for retailers who cater to overall household needs. Multicultural households are usually larger in size compared to those from the general population. Among the major visible minority groups, South Asian and Chinese households tend to be bigger, with families including extended relatives. This leads to higher average consumption and also means increased spending power per household, especially for home products. The larger household size gives

retailers a chance to customize their marketing and products for these groups.

Future growth in the retail sector is certainly going to be fuelled by diverse Canadian ethnic groups who will define and shape the variety and assortment of products and merchandising decisions at the store level. The changing demographic mix is evidently going to be very non-mainstream Canadian, so retailers need to equip themselves with relevant insights and data around cultural habits, tastes, taboos and other sensitivities. Canada brings in more than 1.3 million new-

comers each year, according to online immigration resource CanadaVisa, of which 500,000 come through the economic class of immigration. These newcomers usually settle quickly, becoming active shoppers who tend to spend a lot on essentials and lifestyle improvements. For marketers, this steady stream of newcomers is a fresh audience that is not familiar with local brands and needs education and promotion efforts.

International students present an additional opportunity for some sectors of retail. The likelihood of international students staying in Canada to find permanent residency is three times that of other classes of immigrants, a survey reports, offering lifetime value to retailers. Those companies that forge ties with these students early on can cultivate lifelong brand loyalty.

START WITH GEOGRAPHY

To develop a relevant marketing strategy that addresses these opportunities and helps create compelling campaigns for multicultural audiences, the best place to start is to understand the precise geographic location where they reside. If we look at two large immigrant diasporas, 66 per cent of Chinese immigrants and 65 per cent of South Asian immigrants call the Greater Vancouver Area and Greater Toronto Area home, respectively, within five years of arriving, according to findings from Canadian consumer survey database Vivitel. This geographic clustering forms an opportunity to target localized retailing strategies. For example, a retailer in Vancouver may want to prioritize reaching Mainland Chinese immigrants by using Mandarin Hong Kong immigrants in Cantonese-language campaigns, while the same retailer in Peel region may prioritize South Asians from India who speak Punjabi and Hindi, and from Pakistan who speak Punjabi and Urdu. Identification of such clusters provides a strategic allocation of resources and a sharper consumer engagement strategy.

GETTING THE LANGUAGE RIGHT

Overall, language is the bridge of engagement and persuasion with multicultural audiences. However, it is a complex business to fully understand and use it for advantage. More than 4.6 million people in this country speak a language other than English or French at home, says Statistics Canada. The only other top languages are Mandarin, Punjabi and Cantonese. As a whole, South Asian languages make up a large chunk of this audience. Why does language matter beyond just being the preferred language of the immigrant diasporas?

Data shows consistently better attention and a stronger connection to audiences when they con-

Future growth in the retail sector is going to be fuelled by diverse ethnic groups. Statistics Canada expects that 40 per cent of this country’s population will be comprised of visible minorities by 2041.

sume media that is in their language. Brands can also ensure their campaigns are relatable and relevant by creating them in these languages. To enable landing these campaigns in a targeted manner without spill over into the mainstream media, help is on hand in the form of ethnic media, which is typically published in-language. These range from locally owned and operated broadcast and publishing companies as well as international digital entities mostly originating from home markets but available for geo-targeting Canadian audiences.

CULTURAL INSIGHTS ARE KEY

When it comes to the task of building bespoke creative campaigns targeted to multicultural audiences, retailers need to go beyond geography and language to understand the intricacies of cultural nuances that influence consumer mindsets. Immigrants come with some ‘cultural baggage,’ such as habits, traditions and media consumption from their home countries. Over and above that, each immigrant cohort has its own cultural calendar, which also potentially represents a

good opportunity to build campaigns around. For example, the festivals of Lunar New Year, Diwali and Ramadan, to name a few. These are deeply rooted community celebrations involving heavy spending on gifts, food, decorations and festivities.

STRATEGY FOR SUCCESS

Creating compelling campaigns for Canada’s multicultural market requires expertise from professionals that specialize in this space. Market assessment of geographies where retailer locations exist or online consumer demand originates from is the starting point. Mining for insights around brand awareness and habits and attitudes studies comes next to ascertain the gaps that exist. Based on this and with an eye on what competitive threats might exist, a relevant culturally focused strategy can be developed that helps prioritize the ethnic segment you want to reach — when, where and with what compelling value proposition. Once all this is in place, creativity in the form of omnichannel cultural campaigns gets easier to plan and execute.

Abhijeet Ray is managing director at Ethnicity Multicultural Marketing Inc., otherwise known as Ethnicity Matters. Founded in 2013, the Toronto-based agency offers end-to-end services that integrate insights, strategy and execution across all facets of marketing. With a team composed of 98 per cent visible minorities, 75 per cent foreign-born employees and partnerships with diverse suppliers, the company lives the values it champions. This approach ensures its multicultural marketing strategies are driven by the very people they are designed to connect with.

The Supply Chain Puzzle

Piecing together this year’s complex freight market challenges and insights into potential new issues

BY SCOTT LOMBARDO

PUTTING TOGETHER A PUZZLE IS A HOLIDAY tradition for some families. Every year, they’ll pull one out of a closet, sometimes the same puzzle each year, place it on a table and complete it over the course of several weeks.

The supply chain is much like a puzzle, with each piece representing different logistical processes. It’s hard to put together, but this year it has been particularly challenging, akin to a 1,500-piece, double-sided puzzle that’s missing some of its edge pieces.

Here’s a review of 2024’s supply chain puzzle and what’s predicted for 2025.

GLOBAL CLIMATE CHANGE

Many retail goods used in North America are manufactured in Asian countries and transported via large ocean container ships to the tune of five million active use containers and 5,855 active vessels globally each year, according to Port Technology International. Climate change is impacting transit times, a crucial metric for ensuring smooth operations, with some key routes like the Panama Canal experiencing shipping bottlenecks. A major ocean lock system that moves goods from the Pacific Ocean to the Atlantic Ocean, the Panama Canal had been suffering from a two-year drought

that began in late 2022, up until recently. The Panama Canal Authority reported a 29 per cent drop in vessel transits during its 2024 fiscal year (October 2023-September 2024). The significance of this figure cannot be overstated. The Panama Canal manages nearly three per cent of overall global maritime trade volumes, with a 46 per cent share in containers originating from Northeast Asia, destined for the East Coast of the United States and some eventually to Canada. Nearly 40 per cent of all U.S. container traffic traverses the Panama Canal each year, facilitating the movement of roughly $270 billion US in cargo, reports price reporting agency FreightWaves. With water levels now improving, and implementation of a new advance booking software system for crossings, vessel transits are gradually increasing at the Panama Canal. However, eyes are still on this main method of transit for global goods into North America.

Many scientists purport that drought in China, El Niño and other extreme weather events like hurricanes and wildfires that are increasing in severity also pose significant risks to the global supply chain, which could result in longer delivery times, higher costs and lower output. EventWatchAI, a climate change data group, supports these concerns. From 2021-2023, the platform saw a 44 per cent increase in alerts related to extreme weather, up 107 disruptions to 351 from 244.

GEOPOLITICAL HOTSPOTS

Geopolitical tensions, both large and small, can affect the supply chain. In 2024, five ‘primary events’ have driven changes that affect the marketplace.

Attacks launched by Yemen’s Houthi groups on cargo ships in the Bab el-Mandeb Strait at the southern end of the Red Sea have caused several major global shipping organizations to suspend or even stop operations in the region. Due to these complications, carriers have been forced to find alternate routes to Egypt’s Suez Canal, the shortest shipping route from Europe to Asia, and one of the most important waterways, accounting for 12 per cent of the world’s shipping traffic, says the U.S. Naval Institute. This has resulted in increases in rates and transit delays for Europe and North America.

The crisis in the Red Sea is tied with the Israel-Hamas conflict; Houthi groups have declared they will not stop their naval blockades until Israel ceases its war on Hamas. The announcement of a ceasefire between Israel and Lebanon has eased supply chain concerns, but ports in the area are still being affected, adding insurance and transit costs to products due to the continued threat of conflict.

Now in its 34th month, the Russia-Ukraine war has exacerbated trade in the region from safe and secure movement of goods via air or ocean. Given the constant vigorous rhetoric coming from both sides, it appears this will persist into the new year

“Climate change is impacting transit times, a crucial metric for ensuring smooth operations, with some key ocean routes experiencing shipping bottlenecks.”

Smaller parcel shipping is expected to see rates increase in 2025.

“Anticipate an increase in blank sailings to maintain higher rates and a shift to index-based shipping rates.”

and pose additional challenges to the movement of domestic products in Europe and out of impacted regions to global markets.

Continued tensions between China and Taiwan bring concern and uncertainty to the consumer and tech sectors. Taiwan microchip manufacturing encompasses more than 55 per cent of the world’s semiconductor needs, reports foreign affairs think tank Stimson Centre, and more than $1 trillion US in damage to the global economy if disrupted. China continues to discuss blockades and quarantines of Taiwan and surrounding areas that could impact the free transportation of goods in the region.

With more than 50 countries having gone to the polls by the end of this year, the changes globally on policy and direction are in a constant state of flux. In the U.S., the new administration is talking tariffs for its largest trading partners — proposing an addi-

tional 10 per cent on China, and 25 per cent on Canada and Mexico — unless they address the movement of drugs and undocumented immigrants across the U.S. border. If imposed, there may be a slowdown in retail sales and, consequently, a change in the capacity needs of many carriers domestic to North America and globally.

THE WORLD AHEAD

With this year nearly behind us, let’s look at 2025 and what’s potentially in store for the supply chain.

The U.S. East Coast labour dispute is not over yet, with the threat of another strike by the International Longshoremen’s Association. While largely an automation dispute, all cargo ports from Maine down to Texas on the Gulf Coast felt the effects of the first strike, albeit short-lived. Should strike action occur again, there could be a noticeable impact on the timing of container movement.

Since the pandemic, there has been a change in how organizations evaluate sourcing strategies. Warehousing and storage of goods to allow for greater fluctuations in capacity ebbs and flows is becoming more the norm. This is likely to continue as the big-ticket home goods industry strives to meet the needs of supply and demand that customer buying habits dictate to the market.

Anticipate an increase in blank sailings to maintain higher rates and a shift to index-based shipping rates. A blank sailing is when an ocean carrier cancels or skips a scheduled port of call or region. This will be impacted by tariffs and consumer confidence to purchase those imported goods.

Trucking will gradually move out of the current class system challenge, National Motor Freight Classification, toward more dimensional weight-based freight pricing. Rates will rise and capacity will right-size to market needs.

Small parcel shipping will continue to see annual rates increase by eight to nine per cent. Smaller businesses will seek more regional carriers to support and supplement due to costs.

The global geopolitical landscape has become increasingly volatile and difficult to predict. The hope is conflicts ease because of the potential impact on global economic growth, inflation, financial markets and supply chains.

Scott Lombardo is vice-president of client solutions at Gulfstream Shippers Association and Bluewater Logistics LLC. He leads and coaches the sales division, provides marketing support and has been on the forefront of the development of new organizational training and development programs.

Since the pandemic, there has been a change in how organizations evaluate sourcing strategies. Warehousing and storage of goods to allow for greater fluctuations in capacity ebbs and flows is becoming more the norm.

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ELEVATE YOUR DELIVERY GAME

Customer-centric strategies to master last-mile logistics BY DAN SHIM

IN THE DELIVERY INDUSTRY, THE EXPERIENCE that accompanies the shipment seems to matter just as much as the delivery itself. This is especially true for big and bulky items, which tend to be more complex and stressful to deliver. A missed shipment is the last thing a retailer or consumer wants.

What customers remember most is often the interaction they have with a delivery company — their final touchpoint before the distribution process is considered complete. This insight has driven many last-mile delivery companies to differentiate themselves by refining various customer experience components to provide timely notifications, real-time tracking, driver communications, live messaging and post-delivery surveys. By focusing on these interactions, companies not only improve customer satisfaction but also build long-term loyalty. In the end, what customers remember is not just that their item was delivered but how it was delivered. And that makes all the difference.

SET EXPECTATIONS EARLY

The first critical component of a positive delivery experience is timely and accurate notifications. Timely notifications, such as order confirmations, shipping updates and delivery day reminders, are key to keeping customers informed and reducing uncertainty. Companies that provide regular updates build trust and ensure customers feel in control of the process.

The timing of these notifications is essential. A well-timed message can set the tone for the entire delivery experience. For instance, providing a heads-up the night before or a couple hours prior to delivery ensures customers can make necessary arrangements. Failing to keep customers in the loop can lead to dissatisfaction, even if the delivery itself is flawless.

Moreover, sending notifications at multiple stages of the journey helps manage expectations. For example, a notification when the item is shipped, followed by another when it is en route and a final one when it’s minutes away reassures customers and prepares them for the delivery event.

REDUCE ANXIETY THROUGH TRANSPARENCY

In addition to timely notifications, live tracking has become a critical component of the modern delivery experience. Live tracking allows customers to see exactly where their item is in realtime, giving them greater control over their day. This is particularly important for big and bulky items, which may require customers to be home or to make special arrangements for delivery.

In the past, customers had to rely on vague delivery windows like between 8 a.m. and 5 p.m. Today, live tracking provides a more specific delivery time, reducing the anxiety that comes from waiting around for hours. By offering this level of transparency, companies can ease the stress often associated with receiving large deliveries like furniture or appliances.

Live tracking also offers an added layer of accountability for delivery companies. If a delay occurs, customers can see the reasons for it and adjust their schedules accordingly. This reduces frustration, as customers are not left in the dark wondering where their items are.

PERSONALIZE THE EXPERIENCE

Another innovative feature many companies now offer is direct communication between the driver and customer. In the past, there was often a disconnect between the two, with customers having no way to contact the delivery driver for updates. However, many big and bulky delivery services now provide a way for customers to personally call or message the driver, ensuring seamless communication.

This individualized touch goes a long way in improving the overall customer experience. If a customer has special instructions like the desire for an item to be placed in a certain room or the need for more time to prepare, the driver can accommodate these requests. Moreover, in the case of unexpected delays or last-minute

changes, direct communication allows for a smoother experience without frustration.

REAL-TIME PROBLEM-SOLVING

Live messaging, in many ways, complements driver communication by providing a platform for real-time problem-solving. Some companies have integrated chat functions or customer service messaging into their delivery platforms, allowing customers to reach out for assistance on the spot. This feature adds an extra layer of reassurance, as customers know that help is just a message away if anything goes wrong. For instance, if there is an issue with the product upon arrival, such as damage or incorrect specifications, live messaging allows customers to quickly report the problem and start the resolution process. This can save time compared to traditional customer service methods like waiting on hold for a phone representative.

THE FINAL TOUCH

A post-delivery survey is becoming a valuable tool for big and bulky delivery companies. Once a shipment is completed, companies send out a survey to gauge customer satisfaction and identify areas for improvement. The survey not only allows companies to gather feedback but also gives customers the chance to reflect on their experience.

The survey typically covers aspects like the professionalism of the driver, accuracy of the delivery window and condition of the product upon arrival. By analyzing this feedback, companies can make data-driven decisions to improve their operations and better meet customer expectations.

The survey is often the last interaction a customer has with a delivery company, making it a crucial step in solidifying a positive impression. A well-designed survey can enhance the customer’s feeling of being valued, while also providing actionable insights for the company.

Dan Shim is head of product marketing, content and partnerships at DispatchTrack, a global leader in last-mile delivery optimization software, trusted by more than 2,500 companies around the world.

Retail business can change from one year to the next and even within the same year. Success and failure hinges on a variety of internal and external factors, the latter of which have been increasingly evident of late. The pandemic supercharged consumers who flocked to online shopping during government-imposed stay-at-home orders and then returned to stores in droves as restrictions eased, eager to spend what they had saved during Covid’s first year when many exercised fiscal restraint. Later, as Canada’s inflation rate soared and interest rates steadily climbed, shoppers began to slow down and even pull back on purchases in home goods categories, as seen from statistics. Here, four retailers share their experience over the past year, including how their stores performed, and expectations for 2024.

PAST FORWARD

ANDREW TEPPERMAN, TEPPERMAN’S

Year-end reflections and predictions for what lies ahead

observations

Most people would agree 2024 has been bumpy. There have been supply chain hurdles, housing market challenges and the unemployment rate jumped to its highest level in years. At the same time, inflation has been brought back under control and interest rates are now on a downward trajectory, both of which bode well for improved retail sales after some time of curbed consumer discretionary spending. As we bid adieu to this year and turn the page to a new one, we reconvened the expert panel that participated in our first-ever industry Q&A. This time, we asked how their retail operations performed over the last 12 months and what prospective challenges and opportunities await in 2025.

LOOKING BACK AND FORWARD

Four Canadian

retailers

2022 was a record year driven by a healthy consumer and healthy inventory positions. The continuous interest rate increases in 2023 quickly impacted demand, the housing market (a barometer for the furniture industry) and capital expenditures. In the same way that we saw a consumer surge in the prior year, we experienced a pull back and quickly adjusted by re-balancing the expense side. We are forecasting a tight consumer market for the first half of 2024, which means finding more internal efficiencies, leveraging technology and being very focused on how we target the consumer. We have a long history of navigating these recurring cycles, both positive and negative. 2024 marks a momentous year. We celebrated our 99th anniversary in March, and opened our seventh location in May, in St. Catharines, Ont., that has a new focus on the in-store customer experience.

DARRYL SHERMAN, WILSON FURNITURE

reflect on their business performance in 2023, share plans and predictions for this year

ERIC BUCHFINK, MATTRESS MATTRESS

2023 was an exceptional year. Same store sales were up. This was apparently an accomplishment in our industry. There was no one singular factor that impacted results. We analyzed every part of our business with one purpose in mind and that was to improve things. Leasing, hiring, training, marketing, accounting, buying, corporate functions, travel, group benefits, store insurance, meetings, housekeeping and more all overhauled and made better. We’re working smarter these days and our sales numbers, margins and profits show it. We’re going all out in 2024, as it’s our 30th birthday, celebrated March 31. We’re going to do it all over again, with major emphasis on marketing and overhauling our database.

Retail business can change from one year to the next and even within the same year. Success and failure hinges on a variety of internal and external factors, the latter of which have been increasingly evident of late. The pandemic supercharged consumers who flocked to online shopping during government-imposed stay-at-home orders and then returned to stores in droves as restrictions eased, eager to spend what they had saved during Covid’s first year when many exercised fiscal restraint. Later, as Canada’s inflation rate soared and interest rates steadily climbed, shoppers began to slow down and even pull back on purchases in home goods categories, as seen from statistics. Here, four retailers share their experience over the past year, including how their stores performed, and expectations for 2024.

Having celebrated our 90th anniversary this past fall, we saw a positive increase in traffic and sales after a slow summer. The fall edition of High Point Market saw an inspirational effort by suppliers to refresh and update their offerings, including new and renovated showrooms. Turnaround times for orders are wildly inconsistent, due in part to delays and factory hesitation to invest in inventory. For 2025, lower mortgage rates should improve housing sales and help our industry. The lower Canadian dollar will raise prices for imported furniture and parts used in Canadian manufacturing. Volatility of the political climate in Canada and the U.S. will impact the mood of shoppers. For Wilson Furniture and our industry, value will be important but customization options, better quality, Canadian made offerings and superior customer service from the beginning to the end of the sales cycle will win the day.

SCOTT REID, REID’S FURNITURE

ANDREW TEPPERMAN, TEPPERMAN’S

SCOTT REID, REID’S FURNITURE

2024 has had its ups and downs, but we have seen strong results in the last quarter, which leaves me excited to head into 2025. With interest rates coming back in line, there is sunshine. But with the storm clouds of Trump’s potential tariffs and Canada’s likely retaliation, we should expect a curve ball or two will challenge our days. I am concerned about any tariffs and the effects on our supply of goods. I am also concerned about the relative strength of the Canadian dollar. I fully expect prices will need to increase.

After two years of ‘drinking from a fire hose,’ our sales slowed in 2023, to a more comfortable pace. The obvious culprit is rising interest rates cutting into the consumer’s expendable income. We also had a few competitors expand into the market and a couple more expand into bigger stores, which I assume was a result of everyone feeling confident thanks to the Covid cash injection. As Warren Buffet said, “As the tide goes out, we will soon find out who is swimming naked.” I suspect we will start to see many businesses close in 2024, and I foresee us finding many good people that will be looking for work, which will not only help us to increase our market share but also climb back to record sales.

2022 was a record year driven by a healthy consumer and healthy inventory positions. The continuous interest rate increases in 2023 quickly impacted demand, the housing market (a barometer for the furniture industry) and capital expenditures. In the same way that we saw a consumer surge in the prior year, we experienced a pull back and quickly adjusted by re-balancing the expense side. We are forecasting a tight consumer market for the first half of 2024, which means finding more internal efficiencies, leveraging technology and being very focused on how we target the consumer. We have a long history of navigating these recurring cycles, both positive and negative. 2024 marks a momentous year. We celebrated our 99th anniversary in March, and opened our seventh location in May, in St. Catharines, Ont., that has a new focus on the in-store customer experience.

DARRYL SHERMAN, WILSON’S FURNITURE

ERIC BUCHFINK, MATTRESS MATTRESS

ERIC BUCHFINK, MATTRESS MATTRESS

2024 is finishing well for Mattress Mattress. A small increase over 2023, but nonetheless an increase. Looking at 2025, our major concern is tariffs applied by Trump on energy. All but one of our stores are in Alberta, and this could greatly affect our economy. We’re on a social media mission in 2025. We recently hired Western Canada’s largest social media digital agency to manage our social media programs on Facebook, Instagram and TikTok. We also have a new program we’re going to launch on social media called Let’s Talk Sleep. We’re excited about it — something new in our industry.

an exceptional year. Same store sales were up. This was apparently an accomplishment in our industry. There was no one singular factor that impacted results. We analyzed every part of our business with one purpose in mind and that was to improve things. Leasing, hiring, training, marketing, accounting, buying, corporate functions, travel, group benefits, store insurance, meetings, housekeeping and more all overhauled and made better. We’re working smarter these days and our sales numbers, margins and profits show it. We’re going all out in 2024, as it’s our 30th birthday, celebrated March 31. We’re going to do it all over again, with major emphasis on marketing and overhauling our database.

2023 saw a modest increase in sales. As a mid- to high-end retailer that focuses on customization, we found a return to normal order times with increased custom orders as availability improved. Average sales increased, partly due to increased prices over the past few years. Shortage of truck drivers during the pandemic forced us to explore third-party delivery options, which have worked out well and continue this year. Finding competent sales staff remains an ongoing challenge that continues in 2024. To assist new staff, we are updating our training program on an ongoing basis. Higher mortgage rates have reduced discretionary spending. We expect this to continue through 2024. As traditional advertising falls away, we are spending a great deal of effort on our website and social media program, ensuring both are robust. As this is our 90th year in business, we will be actively promoting special events throughout 2024.

SCOTT REID, REID’S FURNITURE

ANDREW TEPPERMAN, TEPPERMAN’S

After two years of ‘drinking from a fire hose,’ our sales slowed in 2023, to a more comfortable pace. The obvious culprit is rising interest rates cutting into the consumer’s expendable income. We also had a few competitors expand into the market and a couple more expand into bigger stores, which I assume was a result of everyone feeling confident thanks to the Covid cash injection. As Warren Buffet said, “As the tide goes out, we will soon find out who is swimming naked.” I suspect we will start to see many businesses close in 2024, and I foresee us finding many good people that will be looking for work, which will not only help us to increase our market share but also climb back to record sales.

2024 was a year of inflation and interest rate headwinds that impacted housing and available disposable income to furnish those homes. Unlike 2009, employment has remained solid. For 2025, it’s hard not to have a plan B in the event the U.S. political rhetoric becomes reality. Opportunities will be different for each retailer. We should all benefit from lower interest rates, both with an increased appetite for consumer spending and a commercial appetite to make capital investments to enhance our business models. We are looking forward to our 100th anniversary in 2025, and launching a new Netsuite enterprise resource planning system and website. We will also be looking at taking costs out of our model without impacting the customer or employee experience.

DARRYL SHERMAN, WILSON’S FURNITURE

2023 saw a modest increase in sales. As a mid- to high-end retailer that focuses on customization, we found a return to normal order times with increased custom orders as availability improved. Average sales increased, partly due to increased prices over the past few years. Shortage of truck

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