HGO merchandiser selling online - mattresses THE BOXED BED: Rackcdn.com
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Michael Knell’s
HGO merchandiser
HomeGoodsOnline.ca
SUMMER 2017 Volume Six, Issue 2
Our Canadian
THE BOXED BED: Furniture Show
selling
preview
David Coletto
mattresses introduces the
millennials
online The mattress:
a technological
marvel
Kimmberly Capone
& embracing change
CONTENTS
favour of shipping mattresses directly
to the customer’s door without her ever
seeing – or lying down on – the real
deal. The crazy thing is, it seems to be
working. Ashley Newport authored our
report.
26 PROFILE
EMBRACING CHANGE
Ashley Newport profiles Kimmberly
Capone and looks at how one woman
8
dramatically transformed her fledgling
family’s business model by reinventing
the wheel and taking risks – something
that ultimately quadrupled her com
pany’s sales. All she did was adopt a
new way of selling.
6 EDITOR’S LETTER
GET YOURSELF TO MARKET
Change is coming. Learning about 33 IDEAS
HAVE YOU MET THE
those changes, sharing ideas about MILLENNIALS?
the best coping methods while finding David Coletto, this country’s acknow
great product for the floor remain three ledged expert on the millennials,
of the best reasons to come to market. introduces us to this group of people,
If you’re a Canadian furniture, mattress born in the years beginning in 1980,
and major appliance retailer attending who are going to determine the fates
the upcoming Canadian Furniture Show and futures of furniture, mattress and
33 really ought to be mandatory. That’s
also true if you’re a vendor looking to
major appliance retailers for literally
decades to come.
do business with that same retailer.
8 MARKET PREVIEW
CELEBRATING THE
36 PRODUCT STRATEGIES
THE MATTRESS:
A TECHNOLOGICAL MARVEL
CANADIAN INDUSTRY Technology is driving growth in the
The 2017 edition of the Canadian mattress and bedding business. The
Furniture Show will be easy to product itself is becoming more
navigate and be a little more compact. sophisticated. So is the means by which
The organisers are promising this is marketed and sold to the consumer.
industry’s only national trade event Canadian manufacturers are adapting
26 will offer all the right things to the
attending retail buyer, including great
product, a great shopping environment
to this reality quite nicely. Our report
was written by Michael J. Knell.
40
with opportunities to learn and
network. Michael J. Knell reports on
the preparations.
45 INDUSTRY
CALENDAR &
ADVERTISERS’ INDEX
18 INNOVATIONS
THE BOXED BED:
SELLING THE MATTRESS
ON OUR COVER: Industry veteran Deanna
Bartucci founded The Naked Mattress last
summer along with partner Juan Sanchez.
ONLINE It’s one of a handful of Canadian ‘pure play’
A massive shift in consumer behaviour e-commerce mattress retailers who are
has prompted some brave – and, in some changing the way the consumer thinks
cases, quite successful – entrepreneurs about buying the device upon which they
to forego the traditional showroom in spend about a third of their lives.
4 HGO merchandiser
THE ENDURING CRAFTSMANSHIP OF STEARNS & FOSTER®
Stearns & Foster mattresses are built on the belief that there is no greater luxury
than the finest bed. Each bed is meticulously handcrafted by master craftsmen,
paying relentless attention to detail. We fuse innovative time-honoured traditions,
for precisely engineered construction and lasting quality.
AD
stearnsandfoster.ca HomeGoodsOnline.ca 5
EDITOR’S LETTER
HGO merchandiser
SUMMER 2017 • VOLUME SIX, ISSUE 2
ISSN 2291-4765
MICHAEL J. KNELL
www.HomeGoodsOnline.ca
GET YOURSELF TO MARKET
PUBLISHER & EDITOR
Michael J. Knell
mknell@homegoodsonline.ca
MARKETING DIRECTOR
Change is coming. Learning about those changes, sharing Corrie-Ann Knell
ideas about the best coping methods while finding great marketing@homegoodsonline.ca
product for the floor remain three of the best reasons to CONTRIBUTORS
David Coletto
come to market. Donald Cooper
W
CONTRIBUTING EDITOR
ELL, HERE WE ARE. MARKET IS COMING. EVERYONE IN THE
Ashley Newport
industry knows my view. If you are a Canadian furniture, mattress ashley@homegoodsonline.ca
and major appliance retailer, it’s in your best interest to get out
of your store and get yourself to Mississauga for the Canadian ART DIRECTOR
Samantha Edwards
Furniture Show, which opens at the International Centre on May 26.
Sam I Am Creative
Conversely, if you are a Canadian furniture manufacturer, mattress maker,
samiamcreative@gmail.com
major appliance resource or other potential vendor partner to the aforementioned
retailer, your obligation is to have a presence on the floor, ready to share your IT DIRECTOR
knowledge, insight and strengths – and maybe even your product. Jayme Cousins
In House Logic
A year ago, in this same issue of the Merchandiser, I advocated furniture trade
websmith@inhouselogic.com
events really shouldn’t be about buying and selling. In my view, the purchase order
should be seen as a bonus – as a ‘nice to have’ not as a ‘must have’. PUBLISHED BY
We need to come together as an industry and start talking to each other about Windsor Bay Communications Inc.
what’s coming, because I don’t think the industry is really aware of potential P.O. Box 3023, 120 Ontario Street
dangers lurking on the horizon. They will impact all points of the purchase path to Brighton, Ontario K0K 1H0
T: 613.475.4704
the consumer, from manufacturing and distribution to retail.
F: 613.475.0829
Some of them we’re aware of: increasing household debt; stagnant wages;
housing affordability; and, uneven job growth. Others are no so obvious. Michael J. Knell, Managing Partner
The new U.S. administration wants to renegotiate NAFTA. During the first go- PUBLISHERS OF
round, this industry was very nearly sacrificed in the government’s haste to sign HGO This Week
the deal. Fortunately, that exercise seems to have worked out reasonably well. Home Goods Online.ca
© 2017
After all, the damage in recent years was caused by the dollar, which went on a Windsor Bay Communications Inc.
All rights reserved.
crazed oil-driven growth spurt and drove it to highs no one anticipated.
Now, our sitting federal government is talking about free trade with the People’s Windsor Bay Communications does not accept
Republic China, which is a really bad idea. The PRC has done this industry a lot of any responsibility or liability for any mistakes or
misprints herein, regardless of whether such errors
damage over the past two decades and we’re going to have to fight this. are the result of negligence, accident or any other
And the best way to fight it is to get united. That’s why we need the Canadian cause whatsoever. Reproduction, in whole or in part,
Furniture Show. It’s a place for people from across the industry to meet and talk. of this magazine is strictly forbidden without the
prior written permission of the publisher.
We need to strengthen our manufacturing. We need to bolster Canadian furniture
retailing. Our best place to meet is at our only truly national industry event. It’s not AFFILIATE MEMBER
a panacea. It’s a start.
I hope to see you there.
Michael J. Knell
Publisher & Editor
mknell@homegoodsonline.ca
6 HGO merchandiser
Business.
Network.
Inspiration.
Over
7,000 Great Show
Specials!
Participants
230
Exhibitors
Lunch & Learn
Speaker Series
including Highly Acclaimed
Designer Sarah Richardson
Register Now!
May 26-28, 2017
The International Centre — Toronto, Ontario
canadianfurnitureshow.com
Facebook “f ” Logo CMYK / .eps Facebook “f ” Logo CMYK / .eps
HomeGoodsOnline.ca 7
MARKET PREVIEW
The Alliance dining table from Zuo
Modern Canada offers a regal profile
using an elegant ‘X’ style wood base
supporting a plank style table top with
a distressed natural finish that adds
intrigue and dimension to the room.
CELEBRATING THE CANADIAN INDUSTRY
This year’s Canadian Furniture
Show will be more compact but the
organisers are promising it will offer
all the right things to the attending
retail buyer, including great product,
a great shopping environment with
opportunities to learn and network.
BY MICHAEL J. KNELL
T
HIS YEAR’S CANADIAN FURNITURE SHOW The Perth queen Platform bed from Zuo Modern Canada offers a simple yet
will be easy to navigate and even though it bold silhouette as its rich chestnut finish with elegant distressing gives a
will occupy a more compact space, president distinguished detailed look to the plank style headboard. Its sturdy metal
and chief executive officer Pierre Richard is base adds a retro mid-century modern look in iron finish.
promising attending retail buyers there will be
plenty for them to see, shop and study as they walk the halls of For the past 46 years, the Canadian Furniture Show has
the International Centre beginning on the morning of May 26. been – and remains – the industry’s only truly national
There will be several noticeable differences from last year’s event. Indeed, the only furniture and mattress industry trade
show. The schedule is the most immediate. In 2017, the show events held outside of CFS are the member-only conventions
opens on Friday (May 26) and closes on Sunday (May 28). and buying fairs held by Cantrex Nationwide and Mega
The exhibits will open at 9am and close at 6pm. This is a shift Group and the Toronto Winter Furniture Show – an ad-hoc
from the Saturday to Monday timeframe used last year and event for a group of companies with permanent showrooms
the Saturday to Tuesday used for decades prior to 2014. in and around the International Centre. It’s organised by the
According to Richard, the schedule was changed in response Canadian Home Furnishings Alliance.
to feedback received from retail buyers and other attendees Richard acknowledges when the doors open on the
when they were surveyed after last year’s event. “A lot of buyers morning of May 26, the show will be slightly smaller in terms
said they didn’t want to spend a weekend at the show,” he said, of its floor plate, but will show the wares of about the same
adding, “People told us they prefer Friday to Sunday.” number of exhibitors.
8 HGO merchandiser
This harvest table is the latest addition to
the Springwater Woodcraft assortment.
It features chunky four-inch square legs
New to Magniflex is the Grandioso, which features the Italian and a 1.5-inch thick, hand-planed top that
mattress maker’s dual-core technology with a double-sided resembles barn board.colour scheme.
cover. The winter side features cashmere and merino wool,
whereas the summer side features quilted silk and linen.
Elegant and impressive, the model 9707 is the latest addition to
Superstyle’s ‘Inspiration Home Collection’. Its attractive fabric
combinations give a slightly formal attitude to the suite’s carriage
coil support system and ‘Super-Cel’ premium seating.
CFS will occupy Halls 1 to 4 of the International Centre Several are also from aligned services such as Tactik
this year having closed Hall 5 and the bridge connecting it to Logistique, a delivery and logistics specialist; and, Picture
the rest of the building on Mississauga’s Airport Road. “The This Toronto, a company specialising in three dimension
floor plan is more concentrated, more efficient,” Richard said, photography for a variety of purposes.
adding the show team has spent a lot of time configuring However, the big news on the exhibitor front was the return
the traffic flow for 2017 and believes attending buyers and was the return of two high profile upholstery producers: Décor
other visitors will find the show easier to walk and still find Rest and Palliser. Both skipped CFS in 2016.
everything they want. In terms of display space, Palliser will the largest exhibitor
in CFS 2017, occupying Orion ‘B’, ‘C’ and ‘D’ in International
THE EXHIBITORS Centre’s conference facility.
The permanent showrooms of the International Centre’s
SOFA (Source of Furniture & Accessories) annex will, as NEW SHOW FEATURES
always, be open throughout the show. Since the close of AND SOCIAL EVENTS
CFS 2016, SOFA has added at least two tenants of interest As has become traditional over the past 20 years or so, CFS
to furniture buyers: Canadian solid wood case goods will kick-off with the annual Canadian Home Furnishings
manufacturer Ruff Sawn; and, Zuo Canada, the Montreal- Awards gala {see sidebar} which will be held on Thursday
headquartered branch of Zuo Modern, the California-based evening (May 25). This year’s dinner will also feature a
modern furniture resource. Both of these firms could be keynote address by Robert Maricich, president and chief
found on the main show floor last year. executive officer of International Market Centers, the
As has been the case for the past few years, a least four owners of the World Market Center in Las Vegas and several
furniture suppliers with permanent showrooms outside showroom buildings in High Point, North Carolina including
of the International Centre will be ‘official’ participants in the International Home Furnishings Center.
CFS 2017. They include three leading Canadian upholstery In addition to saluting the recipients of the 2017 Retailer of
producers: Brentwood Classics, Décor Rest, and Superstyle the Year Award – Leon’s Furniture Limited – and the Lifetime
Furniture – along with its sister companies, Trend-Line Achievement Award honouree – Dennis Novosel – the gala will
Furniture and Simmons Upholstery Canada. The fourth is also introduce the winners of the first Retail Sales Professional
Korson Furniture Design, the full-line resource that also Awards, a program to recognise excellence among sales
represents Coast-to-Coast and Kannoa outdoor furniture. associates working at Canadian furniture, mattress and major
Décor Rest and Korson are both expected to have small appliance retailers.
displays on the show floor in Hall 3. The following evening, to wind-down the first day of the
CFS will host about 45 first-time exhibitors in 2017. show, the organisers will hold a cocktail reception in the lobby
They run the full gamut of products and services used by of the International Centre’s conference facility. This replaces
the majority of furniture retailers. Some also hail from a the ‘Industry Bash’ held in 2016 and 2015. Richard believes after
fair distance away from Canada’s borders. For example, a tough day of working the show floors, attendees are looking
Furninova is an upholstery maker based in Scandinavia. for something more low key that will enable them to catch-up
There are also at least two exhibitors from Pakistan including with old friends and business partners.
Happiness Office Furniture. Several are also based in China For the past three years, Richard has hosted a ‘Town Hall’
and Indonesia. at the end of each show to give both exhibitors and visitors
Some are from closer to home, such as Blu Sleep Products, the opportunity to provide feedback about the event and
the Quebec-based specialist in pillows and other sleep offer their own suggestions for improve. This year, the format
accessories. will change. For an hour each day of the show, beginning at }
HomeGoodsOnline.ca 9
10 HGO merchandiser
HomeGoodsOnline.ca 11
LUNCH & LUNCH PROMISES INSPIRATION
A
leading Canadian television personality, an expert leaders. Coletto has a wealth of experience in public affairs
on millennials and a second generation furniture research, corporate and organizational reputation studies as
retailer who turned around her family business well as youth research.
will headline the first ever Lunch & Learn series at the 2017 He also leads Abacus Data’s Canadian Millennial
Canadian Furniture Show (CFS), opening at the International Research Practice and helped a number of organisations –
Centre on May 26. including the LCBO, the RCMP, the Calgary Police Service,
“We are very proud of this line-up which will provide show Hudson’s Bay and the Ontario Ministry of Child & Youth
visitors with a great opportunity to take a break at lunch Services – connect and engage with Canadian millennials.
time a get inspired,” CFS president and He is an adjunct professor at the Arthur
chief executive officer Pierre Richard said in Kroeger College of Public Affairs at Carleton
announcing the series, which will be held at University, where he teaches courses
the stage set up in Hall 4 (follow the signs). on polling and public opinion, political
Each segment will begin at 12noon on marketing, research and public affairs. He is
each of the three days the show is open. also an instructor at the university’s Clayton
Kicking off the series on Friday (May 26) H. Riddell Graduate Program in political
will be Sarah Richardson, an award-winning management.
designer and television personality. Based “David is an outspoken proponent of
in Toronto, she is best known for dramatic transparency in the polling industry and
transformations that turn ordinary spaces SARAH is regularly called upon by media and
into magazine-worthy rooms with an RICHARDSON organizations alike to provide expert
incredible wow factor. analyses of public opinion and research
Richardson has hosted and produced methodologies,” Richard noted.
eight HGTV lifestyle series where she shares Wrapping up the series on Sunday (May
a practical and inspiring approach to décor 28) will be Kimmberly Capone, president
and design. Her shows, which have been and head buyer for Treasures, the retail
seen in over 100 countries, include: Room operation started by her father more than 40
Service, Design Inc., Sarah’s House, and years ago.
Sarah 101. Her most recent series, Sarah’s In her presentation – entitled Red to
Rental Cottage aired on HGTV Canada in beyond Black... in just one year! – Capone
2015. Her new show premiers fall 2017. will share her journey, process and secrets
DAVID
In addition to being a past contributor on how she reinvented her struggling,
COLETTO
and columnist for the Globe & Mail and family-owned retail business and quadrupled
Chatelaine, Richardson was home design sales in a relatively short period of time.
director and décor columnist for Good By providing design services paired with
Housekeeping. She is also the author of 3D technology, she’s now offering an
Sarah Style and At Home Sarah Style, which unparalleled shopping experience that has
was on the Globe & Mail best-seller list for customers waiting in line.
over four months. Capone used her personal experience in
Richardson has created two fabric the home accessories business, her interior
lines for Kravet and has a growing line design education, and experience in the real
of signature products including custom estate sales and staging businesses to forge
furniture. Her company, Sarah Richardson KIMMBERLY a successful interior design career. She
Design Inc., has clients throughout Canada, CAPONE has designed commercial and residential
the United States and the United Kingdom. spaces for celebrities and executives as
Saturday (May 27) will see David Coletto take the Lunch & well as everyday customers who take advantage of her
Learn stage. A leader in online research methodologies as complimentary in-home design service at Treasures,
well as founding partner and CEO of Abacus Data, Coletto is the retail showroom she operates in Toronto’s Yorkdale
an expert on Canadian millennials with a doctorate from the Shopping Centre.
University of Calgary who also teaches and provides expert “When she’s not travelling around the globe to curate
analyses to media. the most interesting selection of furniture, art, and home
The Ottawa-headquartered Abacus Data delivers strategic accessories for her clients, she’s busy designing her new
advice and research design expertise to many of Canada’s line of sofas, chairs, ottomans, beds, curtains, and pillows,”
foremost corporations, advocacy groups, and political Richard said. ■
12 HGO merchandiser4pm, Richard can be found in the registration area of Hall
1 for a ‘Chat with the CEO’ which will give attendees the
opportunity to speak with him one-on-one.
To supplement this effort, CFS organisers will also place
suggestion boxes at the information booths in Halls 1 and 3.
Two of the fun features from 2016 will return this year,
including ‘The Spa’ where attendees can relax with a chair
massage, breathe in fresh air at the oxygen bar or take
a beauty break with a manicure. ‘The Pub’ will offer a full The Gabe collection from El Ran features modern styling with a track-style
espresso bar as well as wine, beer and classic cocktails plus arm. It features power recline as well as a power assisted headrest. It dual
market-style sandwiches and salads. control also features a USB port. Group includes a loveseat and sectional.
Both are located in Hall 2.
and beyond to create a truly outstanding display. A jury of
LUNCH & LEARN industry professionals will evaluate the booths on Friday
Perhaps the biggest addition to the CFS line-up this year is with the winners being announced later that day.
the Lunch & Learn seminar series {see sidebar}. Each show The awards will be presented based on the following
day at 12noon, a seminar will be held on the stage set-up criteria: creativity, imagination and originality; use of product,
next to the food court in Hall 3. images and other visuals; and, overall appearance and visitor
Kicking off the series on Friday will be interior designer experience.
and television personality Sarah Richard. She will be followed ‘Gold’ and ‘Silver’ awards will be presented in several
on Saturday by David Coletto, the CEO of Abacus Data. categories, including: booths 999 square feet and under;
Rounding out the series will be Kimmberly Capone, president booths between 1,000 and 2,499 square feet; booths 2,500
and head buyer for Toronto furniture retailer Treasures. square feet and over; ‘Best New Booth’ – exclusive to first-
time exhibitors; and, best SOFA showroom award. HGO
THE BOOTH AWARDS
In collaboration with SOFA, the CFS will once again stage MICHAEL J. KNELL is the publisher and editor of Home Goods
the Best Booth Awards this year. First seen last year, this Online and all of its platforms. He has attended every edition
program aims to reward exhibitors who have gone above of the Canadian Furniture Show for the past 30 years.
Thanks for the memories...
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123 Ashbridge Circle,
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Woodbridge, ON L4L 3R5
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905.850.6060
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superstylefurniture.com
HomeGoodsOnline.ca 13BUYING GROUP DRIVE CFS ATTENDANCE
R
etail buyer attendance at increase this year as the timing is March but for the year-to-date we are
the Canadian Furniture somewhat better and with the return very pleased with our performance.”
Show (CFS) is driven, for of Palliser we should see a stronger “DRSG member same store sales
the most part, by this country’s three turnout,” he said, adding his members achieved better results than the
buying groups: Cantrex Nationwide are keenly interested in new product industry did,” Braniff reports. “We
(CNW); the Dufresne Retail Solutions and show specials, which he described had above industry average results in
Group (DRSG); and, Mega Group. as “the two keys to attending any show.” the furniture, mattress and appliance
All three use the event in slightly The group itself will be adding to its categories.”
different ways, but all three agree the various private label initiatives. “We Like his colleagues, Braniff also
show is vitally important not just to will also be introducing new product reports a tough first quarter, which
their members, but to industry at large and programs that will add to our despite some uneasiness in the
as well. All three will have a presence members’ toolbox,” Kelly said. opening months actually generated a
on the show floor. It should be noted all Meanwhile, Mega Group expects little year-over-year growth.
three also sit on the CFS organiser’s to host a slightly larger number of its Looking out past CFS, group execs
national advisory committee. members to CFS, many of whom will are reasonably optimistic about the
All are expecting a solid turnout start the weekend attending to the rest of 2017.
from their members to the event and group’s annual general meeting of “We see 2017 being another good year
between the three should host a total shareholders. At that time, they will for DRSG members,” Braniff says. “The
of about 260 stores over the three days also vote to replace vacancies on their first quarter had a slow start but picked
of the show. board of directors. up in the last month and that momentum
“Initial indications are there will Michael Vancura, the group’s at retail looks to be building.”
be less members attending this year executive vice president of retail, said While there is a lot of concern about
versus last year,” DRSG director Steve they will host a range of marketing the future of NAFTA and what that will
Braniff reports while noting he’s still and merchandising sessions for the mean for the furniture industry as a
anticipating more than half of the 135 members of BrandSource Canada just whole, they are mostly pleased that the
retail operations on his member roll to before the show as well as the now value of the dollar gives their members
attend CFS this year. traditional ‘Mad Dash’ where group the freedom to support Canadian
DRSG will occupy over 5,000 square vendors offer attending member deeply suppliers. “This is great for the Canadian
feet in the International Centre’s discounted show specials. They will furniture industry,” Braniff says, adding,
conference facility where plans to also host their usual fundraising dinner “DRSG has supported ‘Buy Canadian’
unveil the group’s 2017 mattress for Ronald McDonald House. since our inception in 2006 and will
line-ups, which will be the major The burning question for CFS continue to do so where we can.”
focus of their efforts. Beyond this, exhibitors is whether attending group “There’s no doubt 2017 will continue
Braniff anticipates his members will member are at the show to buy. All to be a little unpredictable and while
use CFS to preview new product and three execs report good results for the currency may continue to be an
build relationships with vendors. “Our 2016 although business so far this year issue, we are overall optimistic about
members tend to come to preview has been spotty. the year,” CNW’s Kelly says. “Hard
what’s new as our core programs are “We had a very good year in 2016 work and good marketing will always
already put into place,” Braniff says. and we were very pleased with the support growth and that will be our
CNW assistant vice president Pat results,” Kelly says. “January was very focus for the year.”
Kelly is expecting more of his members strong, then we had some real ups “I’m cautiously optimistic,” Vancura
to come this year. “I’m expecting an and downs by week over February and adds. ■
Elegant and impressive, Charlotte is the latest addition to Avant
the model 9707 is the latest Glide collection from Dutailier, which
addition to Superstyle’s describes its style as “slightly bohemian”
‘Inspiration Home with streamlined curves and lines that
Collection’. Its attractive come together in perfect harmony,
fabric combinations give creating a look to blend
a slightly formal attitude with the coziest
to the suite’s carriage coil of decors.
support system and ‘Super-
Cel’ premium seating.
14 HGO merchandiserHomeGoodsOnline.ca 15
AWARDS GALA TO SALUTE
LEON’S AND DENNIS NOVOSEL
T he Canadian Home
Furnishings Alliance (CHFA)
has named Leon’s Furniture
Limited as its Retailer of the Year
for 2017 and will bestow its Lifetime
Retailer of the Year in 2001,” CHFA
chairman Laine Reynolds said in his
announcement. “Over the last 15 years,
Leon’s has embarked on a period
of rapid expansion – adding 30 new
this day, continues to provide enhanced
values to both Leon’s customers and
shareholders,” Reynolds said. “As a
result of these acquisitions, Leon’s
Furniture Limited has grown annual
Achievement Award on veteran retailer locations across Canada, including four sales from $450 million in 2002 to over
Dennis Novosel, founder of Stoney new stores in British Columbia. Now, $2.0 billion in 2015 – which represents
Creek Furniture, the destination with showrooms from coast to coast, growth of over 340%.”
store just outside Hamilton. Both Leon’s is the only furniture retailer He also praised the retailer
will be honoured at a gala to be held in Canada with a brick-and-mortar for remaining committed to their
immediately prior to the opening of the presence in every province.” humble beginnings and the values
Canadian Furniture Show. He noted Leon’s made a significant they established over 100 years ago
This is the second time Leon’s investment in high-end and commercial by continuing to give back to the
has been awarded the accolade. The appliances with its acquisition of communities in which they operate.
publicly-held and family-managed Appliance Canada in 2007. “The They are active supporters of the Boys
full line furniture, mattress and major integration of Appliance and Girls Clubs of Canada,
appliance retailer was also the first Canada allowed Leon’s to local hospitals and various
ever to receive the distinction when enhance their competitive other charities such as
the CHFA – then known as the Ontario position in the appliance Wounded Warriors and
Furniture Manufacturers Association – category and provided Breakfast for Learning.
launched to awards program in 2001. Leon’s with a presence
Furthermore, awarding Novosel in the growing wholesale NOVOSEL’S LIFETIME OF
the Lifetime Achievement Award is sector,” he said. COMMITMENT
also a departure for the organisation. Leon’s celebrated a “Dennis Novosel decided
Since it was launched in 2001, it has significant milestone in 2009 DENNIS early in life that he loved
been awarded to Canadian furniture when they became one of NOVOSEL the furniture business and
and mattress manufacturers in the few Canadian retailers he never looked back,”
recognition of those individuals who to celebrate its 100th anniversary. “To noted Reynolds, who also serves as
over their career made an exemplary celebrate, president and chief executive vice president of sales and marketing
and sustained contribution to both their officer Terry Leon embarked on a cross- for Superstyle Furniture. “When Dennis
industry and the community in which Canada tour and visited every corporate was 13, he worked in a used furniture
they lived. Novosel is the first retailer to and franchise store to personally store and moving business with his
be awarded the distinction. congratulate each associate on being father. Already an entrepreneur at 16,
part of this historical achievement,” he bought a pick-up truck and started
LEON’S HAS GROWN AND CHANGED Reynolds said, adding the company also his own furniture delivery business.
“A lot has changed at Leon’s since unveiled a bronze statue in Welland’s “In 1969, Dennis opened a 5,000
being recognised as the CHFA’s Chippawa Park immortalising company square foot furniture store of his own
founder Ablan Leon. with just four employees, which was
Then in 2013 Leon’s acquired their expanded to 30,000 square feet in the
biggest competitor – and recipient of mid-1980s,” he continued. “Stoney
the Retailer of the Year award in 2004 Creek Furniture eventually expanded
– The Brick in a $700 million deal that to a 125,000 square foot store before
resulted in the establishment of one of opening a second location in Vaughan
the world’s largest network of home in 2015.”
furnishings retailers. Most recently, Novosel acquired
“This acquisition allowed Leon’s Artage International, the Toronto-based
Furniture Limited to maximise occasional case goods specialist.
efficiencies through large scale In the summer of 2016, he retired
purchasing and procurement which, to from Stoney Creek’s day-to-day
16 HGO merchandiseroperations although he remains
chairman of its board of directors.
Novosel was named the CHFA’s AT-A-GLANCE
Retailer of the Year in 2006. In 2010,
SITE: International Centre; 6900 Airport Road, Mississauga, Ontario,
Stoney Creek Furniture was also the
Canada L4V 1E8 (near Pearson International Airport, Toronto)
first Canadian furniture merchant to
be named Retailer of the Year by what OWNED AND OPERATED BY:
Quebec Furniture Manufacturers’ Association
is now called the Home Furnishings
Association (HFA), the U.S. retail group DATES: May 26, 27 and 28, 2017
based in California. He was also the SCHEDULE: 9am to 6pm, all three days.
first Canadian to serve as its president, WHO AND WHAT: Approximately 230 exhibitors showing residential
which he did in 2004 when it was still furniture, mattresses, lighting, rugs, juvenile furniture, and decorative
called the National Home Furnishings accessories in Hall 1 to Hall 4. Other exhibitors include suppliers
Association. of related products and services of interest to furniture and home
He has also been deeply involved in furnishings retailers. The event’s 300,000 square feet of display space
several other industry organisations includes the permanent showrooms found in the SOFA annex of the
such as the High Point Market Authority International Centre and a number permanent showrooms located in
and the Interior Design Society. He also the Greater Toronto Area.
served on the board of the American MARKET WEBSITE: www.canadianfurnitureshow.com
Furniture Hall of Fame Foundation. SOCIAL MEDIA: Facebook.com/CanadianFurnitureShow;
For the past two years, Novosel has Twitter.com/CdnFurnShow; Pinterest.com/CdnFurnShow
sat on the advisory board to the Canadian FUTURE DATES: 2018 – May 26 to 28; 2019 – May 25 to 27;
Furniture Show and was recently elected 2020 – May 23 to 25
to the CHFA board of directors.
“Dennis’ commitment to business LUNCH AND LEARN
excellence is matched only by his All three sessions will be held at 12noon at the stage in Hall 5.
dedication to giving back to local
FRIDAY, MAY 26: SARAH RICHARDSON
charities and global organisations,”
Richardson is an award-winning designer and television personality,
Reynolds said. “He supports many
known around the world for dramatic transformations. She is the host
Hamilton and area causes including and co-producer of eight HGTV lifestyle series seen in over 100 countries,
Ronald McDonald House, Dr. Bob Kemp and has a growing line of signature products.
Hospice, Hamilton Food Share, and
SATURDAY, MAY 27: DAVID COLETTO
the Heart & Stroke Foundation, among
Founding partner and CEO of Abacus Data, and leader in online research
others. Since 2002, Dennis has twice methodologies, Coletto is an expert on Canadian millennials. With a
gone to Haiti with Joy & Hope of Haiti to doctorate from the University of Calgary, he also teaches and provides
help build two schools, an orphanage expert analyses in the media.
and a training centre.” SUNDAY, MAY 28: KIMMBERLY CAPONE
In 2006, he travelled to Mozambique Capone will share her how she reinvented her struggling Canadian
to help construct a church and school. family retail furniture business and quadrupled sales by providing design
The following year he helped build services paired with 3D technology to create an unparalleled shopping
latrine and safe sanitation centres for experience.
schools in Kenya.
“We are very fortunate that our MARKET EVENTS
industry has so many remarkable CHFA AWARDS: The Canadian Home Furnishings Alliance will host its
people and organisations within it annual gala honouring the recipient of the 2017 Retailer of the Year –
and their success deserves to be Leon’s Furniture Ltd. The evening will also salute the 2017 recipient
celebrated,” Reynolds said. “The awards of the Lifetime Achievement Award – Dennis Novosel, founder and
not only spotlight individual talent but chairman of Stoney Creek Furniture. It will be held on Thursday, May 25
they also serve to enhance our industry beginning at 5:30pm at the Universal Event Space, located at the corner
and raise our collective profile. of Highways 7 and 27 in Vaughan, Ontario.
This year’s gala will be held on May COCKTAIL RECEPTION: Friday, May 26 beginning at 6pm in lobby of the
25 at the Universal Event Space in International Centre’s conference facility.
Vaughan, Ontario. The evening begins MEET THE CEO: Visitors can chat with Pierre Richard, president and CEO
with a reception at 5:30pm, followed of both CFS and the QFMA in the registration area of Hall 1 each day of
by dinner at 7pm and the awards the show from 4 to 5pm. This is an opportunity for attendees to voice
presentation at 8pm. ■ their concerns and offer suggestions to improve future events.
HomeGoodsOnline.ca 17INNOVATIONS
The Naked Mattress
was launched last year
by mattress industry
veterans Juan Sanchez
and Deanna Bartucci.
The boxed bed:
SELLING THE MATTRESS ONLINE
A massive shift in consumer behaviour has prompted some brave – and, in
some cases, quite successful – entrepreneurs to forego the traditional showroom
in favour of shipping mattresses directly to the customer’s door without her
ever seeing the real deal. The crazy thing is, it seems to be working.
A
FEW YEARS AGO, A WRITER FOR BUSINESS INSIDER,
THE U.S. business news web site, sang the praises of
Casper’s boxed mattress and vowed to never buy a
mattress in store again. She wasn’t the only convert. As
anyone who manufactures or retails mattresses knows, the innovative,
Manhattan-based start-up has been wildly successful so far, attracting
such big name investors as Leonardo DiCaprio, Tobey Maguire and
Adam Levine.
The concept – shipping a compressed mattress in a modestly-sized
box directly to the consumer’s doorstep – resonated with the modern BY ASHLEY
shopper who preferred the ease, simplicity and quickness of purchasing NEWPORT
18 HGO merchandisergoods online. Indeed, Casper was named WHY SELL MATTRESSES
one of Fast Company’s Fifty Most Innovative ONLINE?
Businesses earlier this year is widely believed “In the last five years, we saw a deterioration of
to have had sales of US$200 million last year. the customer experience in store and we didn’t
Casper entered Canada with a casper.ca site in know why,” says Juan Sanchez, co-founder of The
November 2015. Naked Mattress. “Was it the consumer not having
Needless to say, the online mattress business patience to go into the store and learn? Was it
has exploded in recent months with competing the salesperson trying to get a quick deal? Was
start-ups popping up at an almost furious there too much selection? Obviously Caspar has
rate. The trend has also been embraced by a let people know that it’s okay to buy a mattress
number of Canadian entrepreneurs, some with online and we’re in the same kind of category.”
experience in the mattress business and some Sanchez worked in sales for another mattress
without. Among them are Endy Sleep, Naked manufacturer before launching the Toronto-
Mattress and Sleep Envie, all headquartered based platform with Deanna Bartucci, the
in Toronto. Joining them is Novosbed, which company’s president, about a year ago. “We
calls Edmonton home and then there’s Haven knew we wanted to take the mattress thing
Mattress, located in New Brunswick. online, we just didn’t know how. We wanted to
It’s also important to note that are a number make it simple, make it quicker, make it much
of traditional brick-and-mortar furniture and more enjoyable,” he says.
mattress retailers selling mattresses to consumers Others, such as Haven Mattress, are also
using an e-commerce platform. Among these trying to give consumers something unique
are Sears Canada, Leon’s, The Brick, Brault & and, above all else, simple.
Martineau and Mattress Mart. Sleep Country “We started Haven for a number of reasons.
Canada, this country’s biggest mattress retailer is Mostly we see the furniture industry being prime
expected to go live with its e-commerce platform for disruption,” says co-founder Kellie Amis.
sometime in the first half of 2017. “Some of the old paradigms around the ‘customer
Interestingly enough, HGO recently journey’ needed serious reconsidering. Haven’s
reported – contrary to the seemingly powerful goal was to simplify an intimidating shopping
online shopping trend – that e-commerce experience and through our vertical integration,
only accounted for 2.2% of all retail sales in offer value for the money.” Seen here in their New
this country in 2014. While statistics were for Some of the new players, like Sleep Envie are Brunswick office, Kellie and
2015 weren’t available at press time, Statistics looking to reinvigorate what they see as a tired Scott Amis are the founders
Canada also reported e-commerce accounted business model. } of Haven Mattress.
for just 1.8% of sales by furniture and home
furnishings stores that year.
It is important to note Statistics Canada
divides the retail community into two groups:
‘location-based retail’ or ‘brick and mortar’
stores; and, ‘non-store retailers’ which includes
‘pure play’ e-commerce merchants such as
Novosbed and The Naked Mattress as well as
other catalogue and mail order vendors. In its
most recent report, the agency said ‘non-store
retailers’ had sales of $7.51 billion in the trailing
12 months ending February 2017. Their sales
are currently growing at a rate that is about 10
times higher than location-based retail.
Selling online has also become a growth
driver for many brick-and-mortar stores,
both inside and outside of the furniture and
mattress segment. For the first nine months
of 2016, Canadian location-based retailers
had e-commerce sales of $2.95 billion. So with
e-commerce doing well, it makes sense that
more business owners are taking the plunge.
HomeGoodsOnline.ca 19HELPS SOLVE 5 COMMON
SLEEP PROBLEMS.*
ALL-NEW 2017
COLLECTION
IS HERE!
20 HGO merchandiser
© 2017 Serta Canada Inc. A division of Serta Simmons Bedding Canada Co. All rights reserved.So Comfortable, You’ll Never Count These Guys Again.™ HomeGoodsOnline.ca 21
MANUFACTURING THE
E-COMMERCE GOODS
Most e-commerce mattress players design the
product they sell as each brings something
different to the market. Some, such as Casper,
actually manufacture the product itself. Others
partner with an existing mattress manufacturer
while they concentrate on marketing, sales and
customer service.
“We partner with Foamco out of Vaughan,
Ontario in terms of warehousing and
manufacturing so we can focus on marketing
and customer service,” explains Naked Mattress’
Sanchez. (Foamco also sells mattresses to
independent retailers across the country under
the ‘Dreameasy’ brand and launched its first-
ever mattress for the e-commerce market at the
Canadian Furniture Show last year.)
The Naked Mattress uses a two-piece design.
“We separated the pocket coil from layer of
foam at the top,” he says. “Throughout the
years, we would see mattresses come back or
be thrown out because a few inches of foam at
the top were wearing or undesirable, but pocket
coil was in great condition. The design [of the
traditional mattress] is flawed in that sense. If
foam fails, you shouldn’t have to buy a whole
new mattress. You don’t buy a new car when
your tires wear out. With us, people can replace
a part of mattress at a fraction of the cost.”
On their site – thenakedmattress.com –
Sanchez and Bartucci ask the customer to select
both the size and comfort level of her mattress.
Haven also partnered with a Canadian
mattress manufacturer – Springwall Sleep
“We are truly building a relationship. Products – and promotes its assortment as ‘Made
In the early days, it’s all about in Canada’ on its site – a havenmattress.ca.
“We did all the design and testing in house
building trust. Testimonials and and used Canadian industry experts from
Springwall Sleep to help us with some of the
social media are great ways to open a key engineering issues around the new roll
dialogue with the target group.” pack technology,” says Kellie Amis. “They are
a great partner as we have complete creative
license and get exclusives on many of the
“I was intrigued by the disruption of the design and manufacturing details. We hand-
mattress industry and saw an opportunity to make Havens daily in New Brunswick and ship
offer a customised sleep solution, while other free to anywhere in Canada.”
companies take a-one-size-fits-all approach,” For now these merchants are focused on
says Joy Elena, founder of Sleep Envie. “I also selling their own brands and aren’t all that
wanted to provide a more enjoyable shopping interested in offering product made by the
The real competitive experience with a minimal impact on both the more established manufacturers.
strength of e-commerce wallet and the environment. We believe by “No, [we won’t sell mattress brands from other
mattress retailing is customising [the customer’s] sleep choice, all manufacturers],” says Amis. “We tend to be fussy
shipping. The product can other aspects of their lives can be optimised. about all the details and quality control.”
be delivered right to the Sleep is a crucial part of everyone’s life so we Sanchez says while he can’t see Naked
customer’s front door. wanted to create a lifestyle with sleep.” Mattress selling mattresses with brands
22 HGO merchandiserother than his but he does see expanding the At Sleep Envie – which can be found at
assortment to include more accessories. sleepenvie.com – the idea of displaying product
“I can’t see myself selling other people’s in store seems a little more counterintuitive,
mattresses, but I can see myself selling other but a pop-up isn’t out of the question.
people’s accessories, such as box springs, “We would consider [selling products in
sheets and pillows. Some box springs that we’re a store], but it is not our target market,” says
looking at are shipped in a box and come with founder Joy Elena. “A pop-up shop is a realistic
25-year warranties. If the Naked Mattress is the possibility. We are also working on sleep
last mattress you have to buy, we’d like a box stations at events and other interesting and
spring like that too,” he says. unique ways to spread out brand.”
GOING BRICK-AND-MORTAR SETTING THEMSELVES APART
Recently, Caspar was back in the news after With change comes upheaval and with upheaval
launching a network of in-store galleries at comes challenge. While it’s true there’s an
West Elm, a subsidiary of Williams-Sonoma. incredible opportunity for savvy sleep marketers
The network includes one Canadian location to to deal directly with the consumer, it’s also true
date, at the brick and mortar West Elm store in companies have to make themselves stand out
Toronto’s Liberty Village neighbourhood. This – especially since the e-commerce marketplace
was after it hosted its Canadian Nap Tour in is welcoming more and more players and,
the spring of 2016, bringing its ‘Napmobile’ to therefore, getting more and more crowded.
Vancouver, Calgary and Toronto. “We weren’t blessed to start with, say,
Others have expressed interest in trying to Caspar’s funding,” says Sanchez of The Naked
reach the consumer in similar ways. Mattress. “We love what Caspar is doing
“I do think we could sell our product in because they’re telling people it’s okay to buy a
store, but not in a traditional brick-and-mortar mattress online. We’ve been on The Shopping
retailer,” says Sanchez. “Their philosophy is to Channel, gone to trade shows and used social
show as much product to as many people as media and a referral program. Social media
possible. If they offered my product, it would marketing has worked well. Everyone thinks Sleep Envie uses this photo
almost contradict what they’re trying to sell. it’s free and it is, but the time that you have to of a couple jumping on their
They want to sell entire mattresses, and I’m spend on posting stuff and engaging people is mattress to demonstrate its
saying you don’t need to do that, you just need expensive and time consuming. Sometimes we quality. Their box can be seen
to replace the three inches on top.” get it right.” } in the left-hand corner.
Still, he does see opportunity with less
conventional partners.
“A less traditional retailer who can offer just
one mattress, I can see a great partnership.
HomeSense would be a perfect marriage for us,
for example. But there’s nothing in the works
right now. We’re looking at number of pop up
scenarios that we could do this summer. That’s
something we’re actively considering. We
understand some people want to see and touch
the mattress,” Sanchez remarks.
Haven Mattress is also on board with the
idea of creating a brick and mortar presence,
but is proceeding cautiously.
“We have spoken to a number of brick-
and-mortar retailers. So far no one has
embraced the changes we are looking to make
in the customer’s journey,” says Amis. “A
potential partner would need to be focused on
convenience and low risk purchase decision-
making for the Haven prospects. Exceptional
‘no problem’ service levels and 100% follow
through. Our team is always on the hunt for
these exclusive partners.”
HomeGoodsOnline.ca 23Like most other mattress Haven has focused on relationship WHAT DOES THE FUTURE
e-tailiers, Sleep Envie sees building. “We reach our consumers through HAVE IN STORE?
growth potential for both relationships,” says Amis. “We are truly It can be hard to predict the future – especially
sales and touch points building a relationship. In the early days, it’s when a trend is just taking off. That said this
with the consumer by all about building trust. Testimonials and group of Canadian e-tailers are hopeful that a
adding accessories to their social media are great ways to open a dialogue slow and steady climb will yield the best results.
assortments, such as the with the target group.” “I’m happy with results so far, but there’s
pillows seen here. Amis believes it helps the company is always room for improvement,” says Sanchez.
different from traditional mattress retailers. “If you grow too fast, you’re not growing
One of those points of difference is Safe Haven properly. I’d rather grow smart.”
– a program where they donate a clean bed Other companies, like Haven, see more
to those in need for ten it sells. “[We differ in dramatic growth on the horizon. “We see our
terms of] pressure, price integrity, convenience business growing like a rocket,” says Amis.
and transparency. [There are] no plaid jackets, “Our customers are fueling this growth. It’s
there’s value for the money and social enterprise their feedback that models our direction. We
that donates new clean beds to less fortunate are now weeks away from our second, more
Canadians in need,” she says. affordable offering. More convenience items
are in various stages of testing and we plan to
HOW ARE SALES? have a wide complementary line to offer our
That is – no pun intended – the million dollar Haven customers.”
question. It’s one thing for a business model to Elena is also hopeful. “We believe Sleep Envie
be innovative. But, it’s entirely another for it to will become a respected Canadian lifestyle
generate cash flow. brand by building the trust of our customers.
For Sleep Envie, the monthly numbers are We see ourselves emerging as a national leader
encouraging. in the online mattress industry.”
“We’ve had about 5,000 unique visitors since Beyond Haven, Naked Mattress and Sleep
we launched September 29, 2016,” says Elena. Envie there are several other Canadian mattress
“We are still fairly new and are averaging about e-commerce providers currently competing for
two to three mattresses a week, plus other the consumers’ attention. The most notable
products are moving now.” among these are Endy Sleep, also based in
As for return rates, Elena and Naked Mattress’s Toronto and Novosbed of Edmonton. They are
Sanchez say customer dissatisfaction appears all part of a wave that is striving to disrupt the
encouragingly low. “So far, the return rate mattress in retail. It’ll be interesting to see how
alarmingly low – we have a 0.7% return rate where they grow over the next few years. HGO
industry average is 5%,” Sanchez reports. “People
who test and try are returning more than people A Toronto-based freelance journalist who writes
who looked for five minutes before clicking on primarily for trade and business publications,
a mattress. We think it’s because we have other ASHLEY NEWPORT is a Contributing Editor to
options in terms of toppers. People might go from Home Goods Online. Her specialties include
medium to soft and we’ll swap out the topper, and food, hospitality and emerging social/business
that seems to be okay with everyone.” trends.
24 HGO merchandiserMADE IN
ITALY
GRANDIOSO
The Grandioso Dual 14 features Dual Core technology which allows individuals to change their comfort
preference with a quick zip and flip. The Grandioso is enriched with a double sided cover that can be re-
versed for a warmer or cooler sleep. The warm side is made of a natural viscose cover quilted in cashmere
& merino wool fiber, whereas the cool side is made of natural viscose and Outlast®, quilted in silk and
linen fiber. The layer of Mallow foam found in the mattress cores provide relaxing and soothing properties
for a luxurious sleep, night after night.
Come see us at the
Canadian Furniture Show
Booth 1436
May 26 - 28, 2017
www.magniflex.com
For more info please contact:
Richard Landriault, Director of Sales – Magniflex Canada
rlandriault1@videotron.ca - Tel 905.481.0940 HomeGoodsOnline.ca 25PROFILE
Embracing
CHANGE
A look at how one woman dramatically
transformed her fledgling family’s business
model by, in essence, reinventing the wheel
and taking risks – something that ultimately
quadrupled her company’s sales.
BY ASHLEY NEWPORT
K
IMMBERLY CAPONE, THE
president and head buyer of
Treasures/Kimmberly Capone
There aren’t many Interiors, is an endearingly
independent furniture confident and engaging speaker.
stores in malls. But She’s someone who is more than happy to
the Yorkdale Shopping share the ‘secrets’ to her success and unafraid
Centre in Toronto to pair her overall sage advice with a helping of
has been home of candid anecdotes.
Kimmberly Capone The operator of the Treasures/Kimmberly
Interior Design for some Capone retail stores in Toronto’s upscale
time now. It advertises Yorkdale Shopping Centre has been getting
‘complimentary design a lot of well-deserved attention lately for
consultations’ regularly successfully re-inventing a veteran brand and
and everywhere. quadrupling sales.
At a time when furniture and home decor
retailers – anyone in the furniture industry,
really – is grappling with tighter margins and
the more challenging economy that’s remained
ever-so-slightly unsteady since the economic
downturn of 2008 (which was almost a decade
ago now, believe it or not), it’s encouraging to
see someone happily roll with the punches and
do things a little differently.
Especially when it comes to rejuvenating an
established brand.
Kimmberly Capone Interiors is the moniker
recently given to Treasures, a company that
was founded by Capone’s father almost 40
years ago. The retail store began with one
26 HGO merchandiserYou can also read
