HGO merchandiser - changing styles PROMPT BEDROOM'S GROWTH CFS: charging ahead with something NEW - Rackcdn.com
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Michael Knell’s
HGO merchandiser
HomeGoodsOnline.ca
SPRING 2016 Volume Five, Issue 1
✽ changing styles
PROMPT BEDROOM’S GROWTH
Furniture stores: ISLAND FURNITURE: CFS: charging
2015 was the finding success as ahead with
BEST YEAR EVER a helping hand something NEW
CONTENTS
21 6 EDITOR’S LETTER
LOOKING BEYOND 36 CFS UPDATE
CHARGING AHEAD AND
A GOOD YEAR ADDING SOMETHING NEW
Canadian furniture stores had a pretty The organisers of the Canadian Furni-
good 2015; in fact, it was the best year ture Show are adding a few new wrin-
furniture store owners have had in this kles to the 2016 edition, which opens at
young century; the best even in their Toronto’s International Centre on May
history. However, it should be pointed 28. Plans include adding new promotion
out that achieving this milestone hasn’t programs for participating exhibitors
really done us a lot of good. For example, and a ‘win your stay for free’ contest for
the sector isn’t getting a bigger piece of attending retailers, all intended to give
overall consumer spending. a little zing to the industry’s only na-
tional event. Our report is from Michael
8 PROFILE
BEING A HELPING HAND
J. Knell
While it’s common for a Canadian fur-
niture retailer to enthusiastically tackle
charitable causes, it’s rare for one to
39 BY THE NUMBERS
FURNITURE STORE
SALES: BACK TO WHERE
function as both a fully operational, THEY WERE
successful retail outlet and be a not-for- It may be difficult to believe but 2015
profit organisation dedicated to helping was the best year for Canadian furniture
some of the community’s most vulner- store sales this century, but it’s been a
able residents — the developmentally long climb back from the setbacks
disabled — find jobs. As Ashley Newman caused by the financial meltdown of
reports, Island Furniture, of St. John’s, 2008. What’s not known is whether the
8
Newfoundland has been providing the pace can be kept up in 2016 and beyond.
community with quality furnishings Our review and analysis was written by
since they began in 1979. But employing Michael J. Knell.
the disabled is their reason for being.
21 PRODUCT STRATEGIES
BEDROOM: CHANGING
STYLES WILL DRIVE GROWTH
47 INDUSTRY
CALENDAR &
ADVERTISERS’ INDEX
While the North American economy
will remain challenged throughout 2016,
bedroom producers are planning for a
Michael Knell’s
HGO merchandiser
HomeGoodsOnline.ca
solid year by offering new construction SPRING 2016 Volume Five, Issue 1
and storage features with fresh designs
and strong values. Our report was re-
38
searched and written by Gary James.
30 ON RETAIL
30
THE FIRST JOB
IS CLARITY
✽ changing styles
It doesn’t matter if you’re the owner of PROMPT BEDROOM’S GROWTH
an independent furniture store, or if Furniture stores:
2015 was the
ISLAND FURNITURE:
finding success as
CFS: charging
ahead with
you’re running a small furniture manu-
BEST YEAR EVER a helping hand something NEW
facturing operation – your first job is ON OUR COVER: Designed by the
clarity. Everyone on the team has to award-winning Blake Tovin, the
know what the business stands for, what solid-walnut Serra collection was
it’s committed to and what its promise among West Bros Furniture’s best
is to the customer. Without that clarity, sellers last year. This king-sized
there’s failure. Wisdom from Donald platform bed with built-in storage
Cooper. did particularly well.
4 HGO merchandiser
Treat yourself to a luxurious night's sleep.
AD
The finest beds made.
Stearns & Foster mattresses are made by specially trained master craftsmen
®
using the best materials and the highest of standards − all to deliver exceptional
quality and indulgent comfort. We’re so proud of our work, we sign every one.
stearnsandfoster.ca HomeGoodsOnline.ca 5
EDITOR’S LETTER
HGO merchandiser
SPRING 2016 • VOLUME FIVE, ISSUE 1
ISSN 2291-4765
MICHAEL J. KNELL
Looking beyond
www.HomeGoodsOnline.ca
PUBLISHER & EDITOR
A GOOD YEAR
Michael J. Knell
mknell@homegoodsonline.ca
MARKETING DIRECTOR
Corrie-Ann Knell
marketing@homegoodsonline.ca
MANAGING EDITOR
Canadian furniture stores had a pretty good 2015; in fact, Anthony E. Bengel
tony@homegoodsonline.ca
it was the best year furniture store owners have had in this
CONTRIBUTORS
young century; the best in their history. However, it should Donald Cooper
be pointed out that achieving this milestone hasn’t really Gary James
Ashley Newman
done us a lot of good.
ART DIRECTOR
D
Samantha Edwards
ESPITE THE UPTICK IN SALES FURNITURE STORES HAVEN’T Sam I Am Creative
samiamcreative@gmail.com
gained ground when looking at other performance measures. For ex-
ample, furniture stores account for about 3.2% of all retail store sales IT DIRECTOR
in this country – a ratio that hasn’t moved much over the past decade Jayme Cousins
or so. Other retail sectors continue to outperform furniture stores, most nota- In House Logic
websmith@inhouselogic.com
bly automotive dealers who have proven to be the true beneficiaries of our low
interest rate environment. In fact a case could be made that in many ways they PUBLISHED BY
get more out of low interest rates than does the housing market, which is highly Windsor Bay Communications Inc.
P.O. Box 3023, 120 Ontario Street
regulated in comparison, forcing buyers to qualify for what they’re purchasing.
Brighton, Ontario K0K 1H0
It’s also interesting to note that both of Canada’s big, publicly-held furniture T: 613.475.4704
store chains haven’t been strong performers when compared to the industry at F: 613.475.0829
large. While all furniture stores achieved a growth rate of 6.1% in 2015; Leon’s Michael J. Knell, Managing Partner
Furniture saw its revenue climb by a relatively mediocre 1.0%. BMTC did better
PUBLISHERS OF
at 2.3%, but both were outshined by the 11.8% recorded by IKEA Canada. Leon’s HGO This Week
and BMTC both saw their national market share shrink. Home Goods Online.ca
The real question is what happens next? Will growth continue through 2016 © 2016
Windsor Bay Communications Inc.
and into 2017? I don’t like being a pessimist but I believe the rate of growth will All rights reserved.
slow this year and perhaps into next. Right now, the housing market is getting Windsor Bay Communications does not accept
cooler everywhere in the country except the greater urban areas surrounding any responsibility or liability for any mistakes or
Vancouver and Toronto. No one knows where the price of oil is really going, mak- misprints herein, regardless of whether such errors
are the result of negligence, accident or any other
ing reasonably accurate forecasts about national unemployment levels, consum- cause whatsoever. Reproduction, in whole or in part,
er spending, confidence and other key economic drivers difficult to say the least. of this magazine is strictly forbidden without the
But, as an old friend keeps reminding me, there are still people out there buy- prior written permission of the publisher.
ing furniture, mattresses and major appliances. For the furniture store owner,
that’s good news indeed.
AFFILIATE MEMBER
Michael J. Knell
Publisher & Editor
mknell@homegoodsonline.ca
6 HGO merchandiser
BUNGALOW 5
BIGGER. BETTER. BEYOND EXPECTATIONS.
• Over 2,700 Cross-Category Brands
• The West’s Only Major Home Furnishings Market
• The National Bedding Market
• Newly Launched Casual/Outdoor Floors
URBIA IMPORTS
• World-Class Amenities & Affordable Travel
JULY 31-AUGUST 4, 2016 JULY 31-AUGUST 3, 2016
LAS VEGAS MARKET THE PAVILIONS AT LAS VEGAS MARKET
#LVMkt LasVegasMarket.com
HomeGoodsOnline.ca 7
PROFILE
BEING A HELPING HAND
While it’s common for a Canadian furniture retailer to enthusiastically tackle
charitable causes, it’s rare for one to function as both a fully operational,
successful retail outlet and be a not-for-profit organisation dedicated to helping
some of the community’s most vulnerable residents — the developmentally
disabled — find jobs. At Island Furniture, providing the community with quality
furnishings and employing the disabled is their reason for being.
BY ASHLEY NEWPORT
T
HE APTLY NAMED ISLAND FURNITURE Its unique origin demonstrates how creative-
has been serving the community of ly Walsh’s vision was able to grow and evolve
St. John’s, Newfoundland for over 35 even as the store’s financial situation and the
years. Its journey has been more than Newfoundland economy changed over the years
interesting because it’s not just a furniture re- since opening its doors in 1979.
Dave Martin, general tailer that has stood the test of time, but because “Mr. Walsh was a visionary and the father of
manager of Island it’s a successful operation chiefly and steadfastly a child with Down’s syndrome,” explains Dave
Furniture, first joined dedicated to fulfilling the mandate of its late Martin, the managing director of Island Furni-
the independent founder, Paul E. Walsh: employing and finding ture. “And he said that [developmentally dis-
retailer when it first gainful employment for developmentally dis- abled] people could contribute to society if given
opened in 1979. abled individuals. the opportunity. He started a manufacturing
facility with government funds to hire disabled
individuals.”
While his son is non-verbal and has never
been able to work, Walsh didn’t want to see other
developmentally challenged people denied the
opportunity to achieve something and give back
to the world in a meaningful – and empowering
– way.
While the company was always intended to
provide opportunities for developmentally dis-
abled people rather than profit for himself, mean-
ing Walsh had to rely on some young and rela-
The father of a son with Down’s Syndrome, the late Paul Walsh founded Island Furniture
to be not just a successful, thriving business in its own right but to be a place where the
developmentally challenged could find gainful employment and the dignity that comes with
it. Before launching Island Furniture, he was a very successful businessman operating
both Walsh’s Bakery and the Avalon Cable Company. He passed away in 1989, but his wife
remained on the non-profit’s board of directors until she died in 2013.
8 HGO merchandiser
Top Left: Seen here is the entrance to Island Furniture
in St. John’s, Newfoundland. Founded in 1979, it may
be the only independent furniture, mattress and major
appliance store in Canada owned and operated by a
not-for-profit community organisation.
Bottom Left: Island Furniture was the first retailer to
open a La-Z-Boy Furniture Galleries in Newfoundland.
tively inexperienced young workers – including
Martin – when he started out.
“[Walsh and his people] went to Memorial
University looking for business students with “Mr. Walsh was a visionary and the father
marketing majors to come on board to initiate
a marketing plan. I was the least expensive op- of a child with Down’s syndrome. And
tion,” he recalls with a laugh. “I had no experi- he said that [developmentally disabled]
ence, but I was cheap.”
For the first five years, the Island Furniture people could contribute to society if given
operated as a manufacturer, producing furniture
for other businesses. While it was able to fully
the opportunity.”
focus on fulfilling its mandate during those early
years, eventually the government money that niture store, it operates Newfoundland’s first Above: Michael Power,
kept it expired, so a way had to found to grow the La-Z-Boy Furniture Galleries store and Island Of- who is developmentally
brand independently. fice Furniture, a supplier to the local businesses. challenged, has been
“The first five years we were just a small-scale The Island retail showroom boasts an impres- a fixture at Island
manufacturing company catering to local busi- sive array of well-known Canadian and inter- Furniture for the past
nesses. We got federal funding because we were national brands, including appliances from Gen- 35 years. Indeed,
providing jobs for a minority group, but when the eral Electric; mattresses from Simmons, Tem- general manager Dave
funding was terminated, the only option we had pur-Pedic and Zedbed as well as furniture from Martin says he has
was to become a profitable business,” Martin says. Ashley, Brentwood Classics, Durham, Jaymar, become something of
“We went into retail while we manufactured and Magnussen Home, Superstyle, Crate Designs a celebrity in his home
that increased our margins. To grow more, we sup- and Canadel, among others. town of St. John’s and
plemented our products with products from other Their assortment checks off most of the boxes often greets customers
Canadian manufacturers. Then we decided to get on the typical Newfoundland consumer’s shop- before the sales staff.
out of manufacturing in the late 1990s.” ping list, from appliances to mattresses to furni- At Island, in addition
Island Furniture is like any other independent ture for both home and office. to his janitorial duties,
furniture, mattress and major appliance retailer. “From a business perspective, we represent all he often works in the
The operation boasts three locations across the the major players,” Martin says. “La-Z-Boy part- warehouse, uncrating
city of St. John’s – in addition to the Island Fur- nered with us over 20 years ago [and we continue } and wrapping furniture.
HomeGoodsOnline.ca 9
Island Furniture targets
the upper-middle to
lower high-end price
points and sources
product from a number
of Canadian furniture
manufacturers, such as
Canadel, which anchors
their casual dining
assortment.
to operate] the first La-Z-Boy in-store gallery in Dave Martin notes that
Newfoundland. We are a well-respected furniture to fulfil its mandate,
store and we’re in the office furniture business too.” Island Furniture has
Its office and commercial furniture unit pro- to be a fully functional
vides pieces for all sorts of major businesses mainstream and
across Newfoundland – such as oil company profitable furniture retail
Husky – as well as schools, hospitals and senior operation that carries a
citizen residences. broad array of desirable
So while it’s hard to argue the company hasn’t consumer brands,
found its footing in the ever-changing, challen- including this Stressless
ging and competitive furniture retail world, it’s gallery presentation
important to remember it has never lost sight of from Ekornes.
its original purpose: employing and finding jobs
for the community’s developmentally disabled members. In short, Island Furniture gives money to the agency,
It remains, despite its growth and admirable business acu- business or charitable organisation that’s working with the
men, a not-for-profit company. disabled individual to find him or her gainful employment.
“We operate as a not-for-profit,” Martin explains. “We Once the employee is placed, the employer will pay the in-
make money, but it’s what we do with our funds. Today, dividual for one year with funds generated out of Island Fur-
we’re a relatively big company doing $14 million in sales a niture’s profits.
year and we employ approximately 45 people and operate “When we were just a manufacturing company that was
out of four buildings in the city, but we’ve never lost sight forced to become a business, we knew we couldn’t be the be-
of the mandate to employ the mentally challenged. We’re all-and-end-all for [disabled people],” Martin says. “So we de-
a real business, but we’re there to create employment for cided to teach people to do what we do and we were prepared
mentally challenged people.” to put our money where our mouth was. Thirty-five years ago,
How does a genuinely profitable and successful company we used to institutionalize mentally disabled people. These
function as a not-for-profit? It does so by creating oppor- people are now supporting the local economy.”
tunities for the mentally disabled outside of its own vast While Island Furniture itself currently employs seven de-
walls. Since 2000, Island Furniture has donated $5 million velopmentally disabled people, it ensures more vulnerable
to a program that allows the company’s volunteer board of members of the community are employed by all the avail-
directors to reach out to social agencies across Newfound- able stores, businesses and restaurants that can benefit
land & Labrador to let them know there’s funding available from their contribution.
to help find employment for developmentally disabled indi- “We get people working in businesses across the prov-
viduals and cover their salaries for one year. ince,” Martin says. “The person might not know what we’re
“Once we find the job placement, we hope that individ- funding him or her, but all the businesses are tapping into
ual becomes a part of the team,” Martin says. “We do get Island Furniture’s funding. We take what money we need for
some instances where the person gets laid off when the our growth and security and set aside money for our charit-
funding stops.” able component. We operate as a business for our share- }
10 HGO merchandiserCanada’s product protection company.
Let us show you a new way to protect
your customers and your margins.
To learn more: www.zucora.com
HomeGoodsOnline.ca 11Above: Bedroom is another key category for Island Furniture,
featuring product from manufacturers such as Durham, Magnussen
Home, Crate Designs and Ashley, among others.
Left: The store’s appliance department features product from G.E.
“These individuals bring smiles to the faces of consum-
er,” Martin says. “There’s a lot of value-added. They’re eager
to come to work and they’re eager to please. They’re so ex-
cited to come to work. Newfoundland is well-known for bad
weather and when we have a snow day, they are not pleased
about missing work. They’re loyal and pleasant members of
our workforce. That’s infectious and it’s spread amongst our
staff. They’re front and center in our business.”
With a mandate as compassionate and important as Is-
land Furniture’s, it’s important the business side of the oper-
holders — the mentally disabled. They’re paid competitive ation be just as nourished as the charitable side. Thankfully
wages and given benefits and pensions. All are paid above for the long-standing brand, it’s survived (thrived, really) by
minimum wage. We get some phenomenal stories. We have offering customers on-trend and in-demand products and
had people who have been institutionalized, and now they’re maintaining a loyal customer base. It’s also benefitted from
living independently.” the cozy marketplace in which it has carved out its niche.
One of Island Furniture’s stars is Michael Power – a de- “St. John’s is a small marketplace and we have a lot of
velopmentally disabled man who’s been with the company competition, but we get our market share so we can con-
for 35 years. “I sometimes wish our sales people would talk tinue the work of Mr. Walsh.”
to customers as fast as he does,” Martin jokes. “Michael is a When asked if the company’s charitable side brings cus-
celebrity in the city.” tomers through the doors, Martin admits perhaps they’ve
Another, crucial thing is Island Furniture taps into a dis- been guilty of not sharing its softer side enough.
abled people’s desire to work. Employing a mentally chal- “People like our story, but we’ve been guilty of not shar-
lenged person isn’t just good for the local economy; it’s phe- ing it,” he says. “We wanted people to buy the right product
nomenally beneficial to the individual. For many, the oppor- at the right price with the right service for the right reason
tunity to work is the opportunity to be valued and involved. and not out of pity. We never promoted it, but with the new
Working is social and empowering, imbuing a person – per- age of social media, we’ve taken a second look. We know we
haps a person society was once quick to give up on – with need to tell the story. It gives our customers a good feeling
confidence and a feeling of accomplishment. to know they’re helping someone.” }
12 HGO merchandiserChange your sleep. Change your life.
Change to Tempur-Pedic. ®
9 10 people would buy a Tempur-Pedic ®
out of
mattress again for their bedroom
©2016 Tempur-Pedic Management Inc. All rights reserved. TM Trademark 2016 to Tempur-Pedic Inc.
HomeGoodsOnline.ca 13“It’s the hope of the board to continue to educate and create opportunities
for people. We’re seeing a lot of people become full-fledged employees
who are fully funded by the employers we’ve placed them with.”
Left: Bruce is a relative newcomer to
Island Furniture, having only been on
staff for the past five years. He is seen
here in the company’s La-Z-Boy store,
where he performs janitorial duties.
Below: Among Island Furniture’s seven
developmentally challenged staff
members is Bob (first names are not
always published), who has worked for
the company for 30 years. Not only does
he perform janitorial duties, he works
in the warehouse wrapping and sorting
furniture for delivery.
In terms of growth, Martin says the company’s fairly re- disabled community.
cent foray into the world of social media (they now boast a “It’s the hope of
Facebook page) hasn’t shown much impact in terms of sales, the board to continue
but mentions they’ve tried more digital advertising. Since to educate and cre-
the world is steadily becoming more digitised by the day, it ate opportunities for
makes sense to expand ones advertising reach — especially people. We’re seeing a lot of people become full-fledged
in a challenging economic climate like Newfoundland. employees who are fully funded by the employers we’ve
“The Newfoundland economy is slow right now, so we’re placed them with.”
seeing fewer footprints in our store, but we’re blessed to be Martin also mentions connecting people even more, es-
able to hold on to our mandate.” pecially in instances where a disabled employee needs a job
As for customers, Martin says second and third genera- coach to help him or her master a work routine.
tion shoppers tend to frequent the long-standing retailer. “It’s our profits that are engaging these other people [job
In terms of the assortment they offered, it sits in the mid- coaches] and making this happen. The job coach comes
range to higher point price arena, satisfying customers who from the government, so there’s public and private connec-
are looking for reasonably and appropriately priced high- tivity. The public sees us as a big business with a big store-
quality furniture. The company has also been a member of front, but it’s what goes on behind closed doors.”
the Cantrex Nationwide buying group for close to 30 years. Martin also says it’s a blessing to be able to do good work
Martin knows the future of the furniture industry is chal- at work and not after-hours.
lenging and change always lie ahead, especially with the “We work throughout our careers and at the end of the
emerging popularity of e-commerce. Whether they’ll make day; you might find time to do charity work. We’re blessed
the leap to selling merchandise online, Martin says there to do it each and every day. Michael [the disabled employee
are no plans to go that route at this time. who’s been with the company for 35 years] loves his job.
“We’re not selling online as of now,” he says. “New challen- How often do you see people do that? We’ve touched the
ges are facing us, such as [online furniture resource] Wayfair lives of over 500 people. Businesses need employees, so
and our geography, as we have to import things to the island. we’re asking them to give these individuals a chance.” HGO
But our customers need to buy their products locally.”
Martin is always happy to talk about Island Furniture’s busi- A regular contributor to HGO Merchandiser, ASHLEY NEW-
ness. That said, he’s far happier discussing the opportunities PORT is a Toronto-based freelance journalist who writes pri-
his company creates, and will continue to create, for New- marily for trade and business publications. Her specialties in-
foundland’s vulnerable and hard-working developmentally clude food, hospitality and emerging social/business trends.
14 HGO merchandiserOver 250 of the
400 ,000
sq. ft. of furniture
top names
in furniture
manufacturing,
showrooms design, and
imports
This show
means
business.
Star speaker:
David Chilton,
former “Dragon”
and best-selling
author
Great Industry party,
new exhibitors,
Show awards,
networking, gala,
Deals! new products,
trends, and more!
May 28-30, 2016
The International Centre — Toronto, Ontario
canadianfurnitureshow.com
Facebook “f ” Logo CMYK / .eps Facebook “f ” Logo CMYK / .epsTop 5 reasons
to come to the
Canadian
Furniture Show
Do business in
250
Visit of the top
Don’t miss the
Canada and avoid
names in furniture Show
losing 30% on manufacturing, design, Specials!
your dollar because and imports, over You’ll save a bundle.
of the exchange rate! 400,000 sq. ft. of
1 2 3
showrooms.
The Canadian Furniture Show is the only
great
Find great
Meet star speaker
national furniture show in Canada and a
must-attend event if you are looking for great hotel deals David
new products. on our website… Chilton,
+ 25 FREE former “Dragon” and
Join us from May 28 to 30, 2016,
accommodation best-selling author.
and expand your business opportunities!
4 5
packages to
be won!
You can’t afford not to be there!
Visit canadianfurnitureshow.com
and REGISTER NOW!This Show
means business.
Star speaker David Chilton You don’t want
The Show is delighted to welcome star speaker
David Chilton, well-known as a former “Dragon” on
to miss it!
CBC TV’s Dragons’ Den and best-selling author of
The Wealthy Barber, on Sunday, May 29, at 9 a.m.
Join us for breakfast and an inspiring talk! Great Activities!
Industry Bash
Saturday, May 28,
6 p.m. To wrap up the
opening day of the Show
and make the most of
the mild weather, all
Show participants are
invited to party and
network! On the menu:
great BBQ specialties,
drinks and a live band!
Canadian Home Extended hours
Furnishings Awards Gala on Sunday
The Canadian Home Furnishings Visitors will have the opportunity
Alliance will celebrate the Canadian to tour the floor till 7 p.m. on
industry on Friday, May 27, and Sunday, May 29; drinks will be
honour some of its members. offered starting at 4 p.m.
Town Hall meeting
The third Town Hall will again be bringing industry
participants together to discuss various issues.
On Monday, May 30, at 8:00 a.m., come and
share your opinion with industry professionals
Coffee and muffins will be served!
May 28-30, 2016
The International Centre — Toronto, Ontario
canadianfurnitureshow.com
Facebook “f ” Logo CMYK / .eps Facebook “f ” Logo CMYK / .epsNicer Interior Meubles Belisle
Collection Tuff Avenue LH Imports
International Furniture Distribution Centre Pink & Brown
Modern Life HomeG. Romano C.J. Marketing
Mobican
Huppé CDI Furniture
Trica Dutailier
May 28-30, 2016
The International Centre — Toronto, Ontario
canadianfurnitureshow.com
Facebook “f ” Logo CMYK / .eps Facebook “f ” Logo CMYK / .epsCome to the Canadian
Furniture Show and mix
business with pleasure by
This Show discovering Toronto in the
spring. This great city has
means business. a lot to offer!
You don’t want Need more ideas?
to miss it! Visit seetorontonow.com
Mix business with Major tourist
attractions
pleasure: discover Major League Baseball
with the Blue Jays:
Toronto in May!
toronto.bluejays.mlb.com
Visit the tallest structure in
Canada, the CN Tower:
cntower.ca
Play a little golf Niagara Falls:
niagarafallstourism.com
seetorontonow.com/
attractions/greater-toronto-
area-golf-guide
Great places
to eat
Best restaurants:
menupalace.com
Family outings Restaurants with a view:
seetorontonow.com/cuisine/5-
Toronto Zoo: toronto-restaurants-with-a-
torontozoo.com view
Ripley’s Aquarium of Canada: Best brunches:
ripleyaquariums.com/canada seetorontonow.com/cuisine/
Fallsview Waterpark: wake-up-to-torontos-best-
fallsviewwaterpark.com brunch-spots
Royal Ontario Museum: Budget-friendly restaurants:
rom.on.ca seetorontonow.com/cuisine/
budget-friendly-restaurants
Ontario Science Centre:
ontariosciencecentre.ca
Canada’s Wonderland:
canadaswonderland.com Shopping
(Canada’s largest Shopping centres and outlet
amusement park) malls: seetorontonow.com/
Marineland in Niagara: shopping/8-toronto-malls-to-
marinelandcanada.com make-a-day-of
May 28-30, 2016
The International Centre — Toronto, Ontario
canadianfurnitureshow.com
Facebook “f ” Logo CMYK / .eps Facebook “f ” Logo CMYK / .epsPRODUCT STRATEGIES
An updated take on Shaker,
Magnussen Home’s best-selling
Pine Hill collection features a
warm Rustic Pine finish on pine
solids with aged iron hardware.
BEDROOM: changing styles
will drive growth
C
While the North American ANADIAN BEDROOM PRODUCERS ANTICIPATE THAT 2016
will be another solid year for the category, with consumers
economy will remain continuing to respond to strong values, fresh designs and add-
ed construction and storage features.
challenged throughout While still likely to be outpaced by more fashion-forward segments
2016, bedroom producers such as upholstery and occasional, bedroom remains a core industry
segment with steady growth and continuing opportunities. To grow
are planning for a solid their business, Canadian manufacturers are looking for creative new
year by offering new style niches to fill, as well as expanding their distribution by signing on
additional brick-and-mortar accounts as well as new online merchants.
construction and storage In their home market, Canadian furniture producers continue to face
features with fresh designs strong headwinds. The nation’s economic output was either flat or in re-
cession for large portions of 2015 — and that weakness is likely to linger
and strong values. into at least the first half of 2016.
BY GARY JAMES A major contributor to Canada’s slowdown has been lower capital
spending in the oil sector, which impacts both resource-related invest-
ments as well as disposable income. The weakness of the Canadian }
HomeGoodsOnline.ca 21Above: Inspired by
Scandinavian design, BG
Furniture’s popular Atelier
collection is available in
three wood species — solid
maple, solid walnut and
solid white oak.
Right: BG Furniture’s
Romanesque collection
takes inspiration from
classic Roman architecture.
The group is available in
18 maple finishes with five
hardware options.
dollar – commonly known as the loonie – versus other ma- He expects 2016 also to be a good year for domestically
jor currencies also has been a drag on growth. In 2015, the produced solid wood bedroom, as Canadian retailers in-
loonie had its second worst year on record, dropping 17% creasingly gravitate to locally-made products rather than
compared to 2014. the imports they might have bought in the past.
The plunge has had one silver lining for Canadian furni- “A few years ago, our price points weren’t as competi-
ture producers. It has leveled the playing field on pricing tive with products from Asia and the United States,” said
with foreign competitors. Hofmann. “Now, with what’s happened with currency rates,
According to the Organization for Economic Develop- we are very close to import pricing and the playing field is
ment, Canada’s economic growth is expected to slowly re- much more level. This development has enabled us to take
Cover in 2016 and rise 2.3% in 2017. The drag from falling away floor spots from the imports, and led some import
energy investment should fade away by early 2016, says competitors to exit the Canadian market.”
OECD, while non-energy exports lead the subsequent pick- Bedroom now accounts for 47% of BG Furniture’s total
up in growth. business, up from 40% in 2014. In addition to the category’s
In the U.S. market, economic activity is expected to contin- stronger value proposition, BG also has been gaining new
ue expanding in the 2% to 3% range. But uncertainties remain, customers through its new delivery promise. The program
with major events such as the November presidential elec- vows retailers will receive orders within 20 working days or
tion and the Federal Reserve’s recent decision to bump up in- the freight charge is free. In addition, BG also offers a 12-
terest rates for the first time in nearly a decade still unfolding. day, quick-ship service on two bedrooms and best-selling
occasional and entertainment products – backed by the
NEW VALUE EQUATIONS same pledge.
Powered by brisk sales of transitional designs such as its The Walkerton, Ontario-based company rolled out the
popular GrandVille collection, and strong retail placements program in the summer of 2015 and, to date, has delivered
of two new offerings – Romanesque, inspired by classical 95% of shipments on time.
Roman architecture; and Atelier, a mid-century modern de- “Our ability to ship custom-made products quickly has
sign with Scandinavian influences — BG Furniture enters been a big plus for sales,” Hofmann said. “In this tough
2016 with good momentum in bedroom. The solid wood economy, if retailers get an order, they want to flow it to the
specialist’s sales grew at a healthy clip from last fall to the consumer as soon as possible and get paid. It’s also an im-
end of 2015, with bedroom up “a significant amount,” com- portant selling point that retailers can offer consumers the
pany president Adam Hofmann reported. ability to get a made-to-order product without a long wait.”
22 HGO merchandiserThe Fulton group, including this
dramatic, king-sized solid-oak
poster headboard with poster
canopy footboard was another hit
for West Bros. in 2015.
BG’s recent decision to add full-extension, soft-close at the Canadian Furniture Show (CFS) scheduled for Toronto’s
drawer slides to all case pieces also has been well received. International Centre from May 28 to 30.
Consumers are used to seeing this in their high-end kitch- The company also plans to make introductions at other
ens – but in furniture it’s not that common, “so it enhances times during the year that it will preview through in-store
the perceived value, making the product more functional,” visits.
Hofmann believes, adding the drawer slides are backed by a While traditional designs are not as popular as tran-
lifetime warranty and that there’s no upcharge for the feature. sitional, BG saw an uptick in the classic category in 2015,
Deeper drawer depths also are becoming more impor- according to Hofmann. “There still are certain areas of the
tant, particularly for consumers with limited closet stor- country, and demographic groups, where upscale tradition-
age in their bedrooms. “In our research, we’ve learned that al looks such as our Diamond Anniversary collection are
there’s a growing need, especially among women, for deep- what’s selling.”
er drawers to store clothes,” he said. Going forward, he said, BG is going to focus on better-
To keep up with consumers’ varying space needs, BG of- quality, higher-end furniture. “That’s where we have the
fers a range of piece sizes across each collection, including most strengths, and where our capabilities with craftsman-
options for condo living. They also can build furniture to ship and customization really shine.”
size by customer request, a service that accounts for 8% of To expand its reach in the higher-end segment, BG plans
its current business. to introduce a greater selection of alternate species in the
Style-wise, BG is seeing the most activity right now in coming year — either as stand-alone collections or as op-
transitional. GrandVille, Nouveau and Chateau Philippe tions with current designs. “We’ve been sticking mostly
are among its strongest performers. In addition, new collec- with maple and ash but we’ve been getting more requests
tions such as Atelier are expanding BG’s floor space, “since for other woods such as walnut and mahogany. Retailers tell
(mid-century modern) is a category a number of our retail- us that they have a number of clients who are willing to pay
ers have not been presenting lately, and we’re also adding more for exotic wood species.”
new retailers in urban centers who specialize in this style,” Hofmann added that BG is not a “major exporter to the
Hofmann said. U.S.” but is considering ways to expand its presence there
In the coming year, BG plans to expand its mid-century of- over the next few years.
ferings with additional bedroom pieces as well as introduce On the marketing side, BG is weighing the pros and cons
a dining room version of Atelier. Other new transitional bed- of adding pricing detail to its web site.
room looks also are on tap. BG will exhibit these new products “A growing number of furniture retailers are doing this }
HomeGoodsOnline.ca 2324 HGO merchandiser
HomeGoodsOnline.ca 25
Left: Setting the pace for Huppé’s
flagship line, called Up, in 2015
was Plank, the centrepiece of
which is this eye-catching fabric
bed with extended headboard in
a geometric panel design.
Below: Linea, another collection
in Huppé’s Up line, combines
floating solid-walnut cases
with a shapely, two-panel fabric
headboard.
in response to the availability of pricing on major e-com-
merce sites such as Wayfair,” Hofmann said. “Our industry
has been slow to adopt this but it’s something that many
consumers want. With consumers doing more research on-
line, brick-and-mortar retailers will to have to become more
transparent about pricing on their web sites.”
Eventually producers may need to post this information
as well, he added. — a new feature for West. “With the asymmetrical doors and
drawers, the Jensen case pieces offer an understated ele-
FRESH STYLES STIR SALES gance that especially speaks to the urban consumer.”
At West Bros Furniture, the bedroom business started off West’s contemporary-styled, white oak Fulton bedroom
steady in the first half of the 2015 then grew more rapidly and dining collection also continues to do well. Details such
in the second half. During the year, the company expanded as re-sawn doors and headboards and leather pulls “make
its reach in both Canada and the United States, the brand it a collection that sets us apart on the floor,” Mund said.
“becoming increasingly popular” in both markets, accord- “Customers continue to seek out unique statement pieces
ing to Samantha Mund, a customer service/sales executive. and our collections offer that with the practical functional-
“We hear time and again that our customer has grown ity people need.”
with our (style) changes,” she said, adding, “When we first One such statement piece, she said, is the Fulton media
introduced our more mid-century modern influenced col- cabinet. It offers a pull-out shelf that is designed to function
lections, there was a real concern our existing dealers would as a desk, a door with adjustable shelves, drawer storage
not be able to make the leap with us. We were ahead of the and a drop-down media drawer.
trend (but) this has really helped us grow and build our “It can be used in many different ways and that really al-
overall customer base.” lows the customer to justify the room space,” said Mund.
Noting the Hanover, Ontario-based producer has plans “With many homes now with walk-in closet storage, the
for an ambitious 2016, Mund said “we have made signi- dresser has to be more than just storage. Beautifully de-
ficant investments in production to allow us to provide signed multi-function pieces help create a room that tran-
quicker turnaround times and set up between collection scends the typical ‘living room’ or ‘bedroom’ into rooms that
runs. Although we tend to be cautiously optimistic, we an- enhance our customer’s lives.”
ticipate this wave of business to continue and grow through According to Mund, West’s ability to offer options within
the next eight to ten months.” collections also is a key selling point. The company’s Phase
Helping to drive West Bros’ success in the bedroom cat- and Serra collections offer customizable beds — in wood
egory have been several contemporary and transitional col- or upholstery, with or without storage — as well as several
lections created by Blake Tovin, the company’s Nyack, New choices of complementing case pieces and many fabric and
York-based award winning design partner. They include finish choices.
Serra, in solid walnut; and Jensen, a solid-cherry design. “This upfront customisation allows the consumer to build
“Our walnut collections continue to be very strong,” Mund their bedroom the way they want it,” Mund said.
says. “The Serra collection offers a deep assortment of bed-
room, occasional and workspace pieces. It has been one of STRENGTHENING RETAIL
our best sellers and it continues to be extremely strong.” PARTNERSHIPS
The Jensen collection, a top finalist for the Contemporary At Huppé, bedroom continues to account for the largest
Design Group’s Edward Haimsohn award in 2015, also has segment of its business. While the category’s growth in
been a good performer. “The Jensen bedroom collection of- 2015 was a bit lower than that of other newer categories,
fers a contemporary elegance that features soft-close doors” such as dining room, bedroom remains a “bread and butter
26 HGO merchandiserfocus that we’re always looking to improve and expand,” ex- cautious and will be closely watching for potential interest
plains Joël Dupras, the Victoriaville, Quebec-based manu- rate hikes and the impact of the federal election.”
facturer’s design director. With the value of the loonie dropping to historic lows,
“In 2016, we plan to build on the strong momentum we the “value proposition that Canadian retailers are looking
created in 2015 by introducing new products and opening for in furniture also has changed,” Cressman added. “We’ve
new accounts,” Dupras said. “We’re also working hard on adjusted our strategy to add new features and functions that
developing new marketing tools to help our retailers grow, create a more compelling value across our entire line.”
such as our Atelier gallery program.” Looking back on 2015, Cressman sees several standouts
Introduced in 2014, the Atelier gallery program is a coor- on the bedroom side of Magnussen’s business. They include
dinated presentation of Huppé products that work together Pine Hill, a sophisticated urban pine collection with aged
across every room of the home. A typical display might in- iron hardware; and Calistoga, a traditional pine group in a
clude two Huppé bedroom groups, along with a dining set, distressed charcoal finish inspired by the inns and wineries
home office and media system, with accessorisation and dis- of Napa Valley. In addition, two groups introduced at the
play techniques similar to what the company does in its High October High Point Market – Davenport, a romantic tradi-
Point Market showroom, which can be found at 220 Elm. tional design; and Hancock Park, an updated cottage group
“In 2015, we opened Atelier in several new stores in Can- – also show strong promise for the coming year.
ada and plans call for more units in 2016,” said Dupras. “In Price wise, Magnussen is seeing the most action in four-
the coming years, we also plan to expand the program to piece bedrooms priced from $999 to $1,999 retail. “What-
the U.S. We’ll take it slowly, ensuring that we have the right ever the price point, consumers need to see a strong value,”
retail partners and product mixes in each market we enter.” Cressman noted, adding the company’s introductions at the
In the main portion of the Huppé line, the current best- October market were designed “to shore up” its starting
selling bedroom is Plank. Introduced in late 2014, Plank is price points with an enhanced level of fashion, including a
a birch design with a fabric-covered, four-panel headboard few select “lipstick pieces.”
that extends beyond the bed surface. Other strong sellers The new Hancock Park collection, for example, includes a
in bedroom include the Surface collection, another modern “great media chest with glass doors,” said Cressman.
design in birch. At this year’s April and October High Point markets,
Leading the way in the more upscale Up line during Magnussen Home plans to introduce 10 to 12 new bedroom
2015 was Kosy, a soft, curvy modern collection created by groups. “We’ll cover a wide variety of key styles and con-
the award-winning designer Karim Rashid. This collection tinue to offer retailers the sharp values they need to attract
combines white oak with soft leather, while the dressers and consumer attention. We’ll take a fresh approach to styling
side tables feature lacquered and acid-etched glass tops. while still being accessible and not too far reaching – of-
Also doing well in the Up line was Linea, a walnut design fering classic silhouettes with a twist along with mid-sized
with a two-panel fabric headboard. scaling, rich finishes and plenty of storage.”
“Our collaboration with Karim Rashid has been very In many collections, Magnussen also will be emphasis-
good for the Huppé brand,” Dupras says. “It’s created at- ing “wood and the value of seeing the solids and material
tention in the media and opened new doors for us within usage,” said Cressman. “Getting credit for it is a big deal.” }
the higher-end retail community. We’ve placed the collec-
tion with some stores we hadn’t been working with before Magnussen Home expects Davenport, a new romantic
and, based on the success of this group, they’ve added other traditional collection introduced at the October High Point
Huppé products as well.” Market, to be a strong seller in 2016.
For 2016, Huppé has three collections it is working on.
Two of the collections will debut at the April edition of the
High Point Market and other will come out later in the year.
The new groups will also be featured at CFS.
“We’re looking at the latest trends in industrial and mid-
century modern and updating them,” Dupras says. “With
everything we do, we try to be unique and different.”
At the April market, Huppé also will unveil a more robust
website. The new site will be fully responsive for easy view-
ing on a range of mobile devices, including smartphones
and iPads.
ENHANCING FUNCTION, FEATURES
While 2015 proved to be a challenging year for many bed-
room resources, Magnussen Home still had “good growth,”
said Nathan Cressman, president of the New Hamburg, On-
tario headquartered company. “And we’re forecasting more
growth for the first six months. That said, we’re still being
HomeGoodsOnline.ca 27Also playing a key role in bedroom success in 2016 will Left: A contemporary look with chic appeal, South Shore’s Gloria
be service and support. To help flow goods quickly, Mag- collection features massive lines, a rustic wood finish and two built-in
nussen Home offers its QuickFlex container program. With lights on the headboard.
QuickFlex, retailers can obtain expedited quick-ship service Right: In the traditional category, South Shore had good success with
on orders as small as 250 cubic feet – about two or three bed- Versa in 2015. Available in Weathered Oak (shown), Gray Maple and
room groups. Customers can select from as many as 25 styles Ebony, the collection’s style features include a decorative grove that
per order and have the products delivered within 30 days to creates the illusion of double drawers.
stores the West Coast or 45 days to those on the East Coast.
“The program makes it much easier for customers to buy
from us,” said Cressman. “It reduces the dollars dealers spend “We saw a lot of glam looks in both contemporary and
on inventory and ensures they get top-selling items quickly.” traditional at last year’s markets, and we think there may
be an opening for us to do something in RTA,” said Tou-
EXPANDING HORIZONS louse, adding South Shore may introduce a group with a lot
While the weakness of the Canadian economy continues of bling when it returns to the High Point Market – after an
to hold back consumer spending, 2015 also was a solid year absence of several years – at the April market.
for master and youth bedroom producer South Shore Furni- South Shore also plans to expand its mid-century mod-
ture. A Sainte-Croix, Quebec-based specialist in ready-to- ern offerings. “We launched our first mid-century modern
assemble furnishings, the family-owned company offers a group two years ago and it’s done very well. It’s a look that
wide range of stylish bedroom furniture positioned at the people pay hundreds and hundreds of dollars for at an an-
entry level price points. tique store that we can offer at a much more affordable
“When people are tightening their budgets, they want price,” Toulouse said adding the new collection may feature
to make the most out of every dollar,” said Jean-François a lighter finish, giving it a fresh, updated look.
Toulouse, category manager for South Shore. “We offer an Also on tap for April is a new coastal-styled adult bed-
affordable, attractive way for consumers to get the new bed- room in a new Winter Oak finish. “We already have a strong
room furniture they need without breaking the bank.” group in our juvenile line and the coastal trend seems to be
As the Canadian dollar has slumped, the value that South moving into adult bedroom now, too.”
Shore offers has become even more compelling, Toulouse In 2016, South Shore expects to continue growing its on-
added. “Imports have become more expensive, and the gap line business, both with e-commerce specialists as well as
between the price of our top offering and the wood veneer traditional brick-and-mortar stores that are expanding their
products coming from offshore has widened. We expect this digital presence.
to continue in 2016.” “More and more retailers are doing business through a
Because of this shifting price picture, South Shore has web site,” said Toulouse. “Drop-shipping product is becom-
been able to enhance the styling of many of its bedroom ing easier, and they are recognizing that a growing number
products to include more step-up features such as decora- of consumers want to buy furniture this way.”
tive molding and wire management. “In the past, if we put With this trend in mind, a number of brick-and-mortar
too much into the product, the pricing would no longer be stores also are expanding their in-store RTA assortments.
competitive. But now, due to the currency situation, we have “We’re doing business with a number of leading retailers
more room to operate.” who never used to offer RTA,” said Toulouse. HGO
In 2015, contemporary was the number one-selling style
category, followed by country and traditional. Dark tones of A regular contributor to Home Goods Online, GARY JAMES is
black and brown with strong wood grains such as oak were a freelance writer based in Chapel Hill, North Carolina. He
strong sellers, and reclaimed looks also were hot. spent over 20 years with Furniture/Today, serving as case
For 2016, Toulouse said, South Shore has identified five key goods editor and special projects editor, directing the edito-
style trends as particular growth opportunities -- farmhouse, rial content of Leather Today, Bedding Today, Global Textiles
glam, mid-century modern, coastal and classic modern. Today and other supplements and sections.
28 HGO merchandiserHomeGoodsOnline.ca 29
ON RETAIL
THE FIRST JOB IS CLARITY
It doesn’t matter if you’re the owner of an independent
furniture store, or if you’re running a small furniture
manufacturing operation – your first job is clarity.
BY DONALD
Everyone on the team has to know what the business
COOPER stands for, what it’s committed to and what its promise
is to the customer. Without that clarity, there’s failure.
30 HGO merchandiserW
hen we were kids our grandmothers were In every business there are two groups of employees.
a great source of warm cookies, wonderful There are promise makers and the promise keepers. The
hugs and, if we were lucky, wisdom that has promise makers are typically the folks in sales, marketing
guided us for a lifetime. and advertising. They make promises to your target cus-
In my family, when we weren’t communicating effect- tomers to lure them into doing business with you.
ively and things weren’t getting done, Grandma Cooper Then, just about everyone else is a promise keeper.
would say: “We need to get everyone singing from the They’re the ones who have to deliver on your sales pitch,
same hymn sheet.” your brand promise, your performance guarantees and your
Grandma never ran a business but she nailed business advertising claims. And when you fall short, the question is
leadership and management in one sentence. The problem did your promise makers ‘over-promise’ or did your promise
is that in most businesses, everyone is NOT singing from keepers ‘under-deliver’ and, just as importantly why?
the same hymn sheet. In fact, in many businesses there is Do your promise keepers even know what the ‘promise’ is
no ‘hymn sheet’ (that is, no clarity). Or, if there is one, it’s and are they actually empowered to deliver it? Are they all
seen only by the top two or three people in the organisation singing from the same ‘hymn sheet’?
and they think it’s nobody else’s business to see the secret Look very carefully at the product, performance and ser-
‘hymn sheet’. So, there is a huge lack of ‘clarity’. vice promises you make in your business. Be sure your }
HomeGoodsOnline.ca 31So, ‘clarity’ is our first job. If we as the owners, leaders
or managers are not clear about these five things, who else
in the business could it possibly be? Nobody. And without
clear commitments, there can be no accountability. Lack of
clarity and accountability are two of the biggest problems
in many businesses today.
Realistically, how would you rate your business on each
of the ‘five clarities’?
Is this all just airy-fairy stuff or is there some real bot-
tom-line payoff here? An 11-year survey of 207 compan-
ies – documented in a book called Corporate Culture and
Performance – clearly showed businesses that committed
themselves to a clear purpose averaged 570% higher gains
in earnings! Apparently, clarity matters.
CLARITY: THE FIRST STEP TO
HAVING A LIFE
Clarity isn’t just something we need to make our busi-
ness successful. Without ‘clarity’ we’ll never have a life out-
side the business either, because the need to be everywhere
every minute to micro-manage everybody and everything
will be overwhelming. Without clarity we have to make all
the decisions – and those decisions are likely be all over the
map because we, ourselves, lack the clarity and focus need-
ed to be consistent.
On the other hand, when we and everyone in the busi-
ness are clear about the five things listed above, we’re ‘there’
even when we’re away. We’re there in spirit. Our clarity is
promise keepers know exactly what those promises are and there for the team to act on and the business owner, man-
the importance of keeping them. Then, be sure they have ager and leader is able to have a life. How great is that?
the information, the tools and the empowerment to deliver How is there clarity in your business? Does everyone on
on every promise. the team know for absolutely sure what the business com-
mits to deliver; what it commits to become and how every-
THE FIVE CLARITIES EVERY one is commited to behave? Is there a shared commitment
BUSINESS NEEDS to excellence? Do they know why their particular role is
How do you, the independent furniture store owner get important in the overall picture? More importantly, do they
everyone on your team singing from the same hymn sheet? understand the impact on the customer, the organisation
The answer is ‘clarity’ – whether the business is large, small, and the bottom line if they screw up?
or just starting out, the owner’s first job is to be clear about Only when this level of clarity is achieved can everyone
five things: on the team fully participate in growing the business. Set
aside a few hours in the next week to sit down with the best
minds and hearts on your team and create these five clar-
1 The compelling customer value and experiences we
commit to always deliver. Value and experiences that
will ‘grab’ the target customer, clearly differentiate us from
ities for your business. Then make sure everyone on your
team knows what those commitments are, why they’re im-
the competition, make us ‘famous’ and grow the bottom portant and how their job relates to and affects each one of
line; them. As the business owner, manager and leader, creating
‘clarity’ is your first job – and changes everything. HGO
2 What the business commits to becoming over the
next three to five years (the vision); A regular contributor to Home Goods Online, DONALD COOPER,
3 How we’ll get there (the business plan); MBA, has been both a world-class manufacturer and an award-
winning retailer. Now a Toronto-based business speaker and
coach, he helps business owners and managers rethink, refocus
4 The extraordinary bottom line we commit to
generate; and,
and re-energize their business to create compelling customer
value, clarity of purpose and long-term profitability. For more
5 How we commit to behave along the way (our values,
ethics and standards).
information, or to subscribe to his free, monthly management
e-newsletter, go to www.donaldcooper.com
32 HGO merchandiserYou can also read
