A Fusion of Food and Furniture

Michael Knell’s HomeGoodsOnline.ca

HGOWINTER 2017-18 merchandiserVolume Six, Issue 4

RH TORONTO: a fusion of food and furniture

The The latest unbeatable in digital flyer advertising VdeV: A well tech curated store Cooper on the Spotlight three steps on Superstyle to increased at 50 loyalty

CONTENTS

EDITOR’S LETTER TECHNOLOGY 6SADDENED BY SEARS 30MYPIXEL: AN AFFORD- The world of furniture retailing is cer- ABLE ENTRY TO THE FASTEST tainly changing. We’re about to lose a gi- GROWING MARKETING TOOL ant of our business even though it could Advertising is expensive, even when have been prevented but here and there it’s on the web. But a Montreal-based 32 we’re also seeing merchants with innova- consulting firm has developed a new tive thinking and active imaginations. platform that should make finding and attracting customers to a retailer’s web PROFILE site a lot more cost efficient while help- 8A WELL-CURATED STORE ing to build the brand. Our report is by Pairing furniture with unusual goods first time contributor Greg Simpson. – think cutlery, glassware and watches – can work, if housed in the right envi- SPOTLIGHT ronment and curated by a merchant with 34THANKS FOR something meaningful to say. As Ashley THE MEMORIES Newport tells it, customers in Montreal Upholstery house Superstyle is celebrat- and Toronto are paying attention to what ing 50 years in business in 2017. It lead- Fanny Vergnolle de Villers of VdeV is ership believes the qualities that got it mixing and matching. this far, building a quality product at a good price and supported by excellent TRENDS service, will see it through for another 14 THE UNBEATABLE FLYER half-century. Michael Knell reports. As more and more consumers consult their smartphones and computers for INDUSTRY their retail needs, it might seem prudent 38CALENDAR & for retailers to transition from print to ADVERTISERS’ INDEX digital advertising – but perhaps not as fast as they think they should. After all, ON RETAIL as contributing editor Ashley Newport 40THREE STEPS reports, research indicates the beloved TO INCREASED LOYALTY flyer isn’t going anywhere anytime soon. Don’t define your business by what you sell on the floor. Define yourself by what OPENINGS you do to solve your customer’s prob- 22 A FUSION OF FOOD lems. Donald Cooper maintains that 8 AND FURNITURE making the customer’s life better will The retailer previously known as Resto- make you more money. ration Hardware, now called simply RH, has opened what may be the most singu- PASSAGES larly unique high-end furniture store in 44 A PUNCH IN THE GUT Canada. Attached to Toronto’s Yorkdale The demise of Sears Canada will change Shopping Centre, Michael Knell reports the face of retail in Canada, especially in it was designed to create a gourmet level furniture, mattresses and major applianc- shopping experience. es, where it has held a dominant position for decades. But, HGO’s editor Michael GATHERINGS Knell notes it seems the industry is adapt- 22 QFMA CELEBRATES ing and the consumer has moved on. 75TH28 ANNIVERSARY The Quebec Furniture Manufacturers ON OUR COVER: The Design Atelier inside RH Association celebrated the 75th anniver- Toronto is a 5,000-square-foot studio anchored sary of its founding at its recent annual by four fully integrated workspaces where general meeting and conference which customers and the retailer’s design consultants was held at the elegant Ritz-Carlton Hotel can re-imagine a single room or an entire home. in downtown Montreal. Some 130 people 14 from across the industry, including manufacturers, component producers and other suppliers, attended the three-day event.

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 WINTER 2017-18 • VOLUME SIX, ISSUE 4 ISSN 2291-4765 SADDENED BY SEARS MICHAEL J. KNELL www.HomeGoodsOnline.ca PUBLISHER & EDITOR The world of furniture retailing is certainly changing. We’re Michael J. Knell about to lose a giant of our business even though it could [email protected]

have been prevented but here and there we’re also seeing MARKETING DIRECTOR merchants with innovative thinking and active imaginations. Corrie-Ann Knell [email protected]

CONTRIBUTING EDITOR AM ANGRY AND DISTURBED BY THE FATE OF SEARS CANADA. EXPERTS from Ashley Newport the worlds of business and finance seem to agree its demise was unnecessary [email protected] and what unfolded during the tenure of its last ownership group should be CONTRIBUTORS considered criminal. With its departure, some 16,000 of our fellow Canadians Donald Cooper Iare going to lose their jobs and companies large and small throughout our industry Greg Simpson are going to lose a lot of money. From what I can discern, only the American hedge fund that squeezed a vener- ART DIRECTOR able retail institution dry is going to really benefit from the situation. I read recent- Samantha Edwards Sam I Am Creative ly some financial industry analysts believe the shareholders drained somewhere [email protected] between $5 billion and $7 billion from the monetisation of Sears Canada’s assets. Little or nothing was invested back into the company and when it sought protec- IT DIRECTOR tion from its creditors, we learned it owed its employees’ pension fund almost $400 Jayme Cousins In House Logic million – money they are not likely to see. Furthermore, those employees who are [email protected] left to close the doors on that last day probably won’t get severance pay. As I note in my essay on the subject later in this issue, its departure is going to PUBLISHED BY do a lot of damage to our industry. Literally scores of furniture, mattress and major Windsor Bay Communications Inc. appliance resources are going to lose millions of dollars – this will damage their P.O. Box 3023, 120 Ontario Street Brighton, Ontario K0K 1H0 ability to be profitable for years to come. For these suppliers, Sears Canada is a T: 613.475.4704 retail partner that cannot be replaced – there simply isn’t another one. F: 613.475.0829 I’m also critical of those who lambasted Sears Canada for not embracing the inter- Michael J. Knell, Managing Partner net and e-commerce. For the record, they were Amazon before Amazon was. If any- PUBLISHERS OF thing Sears Canada had better logistics and distribution than any pure e-commerce HGO This Week player operating in this country. Besides which, while it is growing, e-commerce is Home Goods Online.ca

still a very small part of retailing as a whole. So that wasn’t really the problem. © 2017 In a few weeks, Sears Canada will be gone. But, there is lots of exciting stuff Windsor Bay Communications Inc. All rights reserved. going on in our industry. Furniture, mattress and major appliance retailing is changing, evolving and giving consumers new things to think about. We showcase Windsor Bay Communications does not accept two of them in this issue. One is VdeV, a two unit independent operated by Fanny any responsibility or liability for any mistakes or misprints herein, regardless of whether such errors Vergnolle de Villers. Her take on selling furniture is décor focused and is coupled are the result of negligence, accident or any other with candles and cutlery and other neat stuff. cause whatsoever. Reproduction, in whole or in part, Meanwhile RH – formerly Restoration Hardware – has opened a 70,000 square of this magazine is strictly forbidden without the prior written permission of the publisher. foot high-end store in Toronto’s Yorkdale Shopping Day that is fusing furniture with food from one of the trail blazing culinary artists in the U.S. This is certainly AFFILIATE MEMBER new and I wonder what lessons we’ll learn from their experience.

Michael J. Knell Publisher & Editor [email protected]

6 HGO merchandiser BUSINESS NETWORKING BRAND RECOGNITION VISITORS AWARDS

VISIBILITY ORDERS BUYERS NEW CLIENTS

Join us: become an exhibitor!

May 25-27, 2018 Facebook “f” Logo CMYK / .eps Facebook “f” Logo CMYK / .eps The International Centre — Toronto, Ontario canadianfurnitureshow.com

HomeGoodsOnline.ca 7

17-1896_AFMQ_HGO_Merchandiser_8,5x11_ANG.indd 1 2017-10-23 4:36 PM PROFILE

Pairing furniture with unusual goods – think cutlery, glassware and watches – can work, if housed in the right environment and curated by a merchant with something meaningful to say. Customers in Montreal and Toronto are paying attention to what VdeV is mixing and matching. BY ASHLEY NEWPORT

A well-curated STORE HEN A TYPICAL CONSUMER WALKS INTO a furniture store, she definitely expects to see an attractively presented assortment of case goods, sofas and accessories – not just all of those things plus a variety of handbags, jewellery, candles, kitchenware and other, more personal pieces. Embracing every aspect of lifestyle retail can – and, in this case, does – work, especially if you’re Fanny Vergnolle de Villers, the owner and operator of the vintage/industrial furniture and home décor brand VdeV, which boasts Fanny Vergnolle locations in both Montreal and Toronto. Its boutique ap- de Villers, owner/ proach gives it the look and feel of a chic and welcoming operator of VdeV. home goods store that certain discriminating shoppers

8 HGO merchandiser A well-curated STORE have grown to love. Unlike its more corporate (and even a second location on Ossington Ave. The first VdeV store independent) contemporaries, it enthusiastically pairs arm- in Toronto’s trendy Trinity Bellwoods (seen here) opened chairs and coffee tables with cutlery, bath products and neighbourhood. five years ago on fashion accessories like sunglasses. “Honestly, I fell in love with the city,” St. Laurent Blvd in “It’s about lifestyle; it’s a mix of things, all the categories she says. “I knew I wanted to expand the trendy Mile End get the same kind of attention – jewellery, bags, furniture, the store and at the time I was looking area of Montreal. etc.,” Vergnolle de Villers explains, adding that while some for a second spot, I visited Toronto and categories tend to sell more at different times of the year, thought it would click with the city.” her overall sales mix is about half and half. Although Vergnolle de Villers studied political science Vergnolle de Villers founded the first VdeV store – at the Université de Montréal and, therefore, wouldn’t located on St. Laurent Blvd. in the Mile End area of Mont- seem to be someone interested in launching a stylish fur- real – five years ago. After enjoying considerable success in niture and accessories brand, design and décor runs in what has become her home town, she headed west, opening the family. Her mother owns and operates the popular }

HomeGoodsOnline.ca 9 Furniture makes Zone Maison – a six-unit brand also special- evolves based on trends, but the vintage indus- up about half of ising in furniture, home décor and personal trial vibe is a guideline for us.” VdeV’s annual sales accessories with stores in Montreal, Quebec While VdeV honours its vintage appeal by and anchors the City and Ottawa. sticking to pieces that speak to the trend, it’s store’s vintage/ “Growing up in that industry, I always had also not afraid to keep things current and in- industrial design an interest in it. I was always aware of it,” she teresting by introducing new pieces with a verve, with the says. “My passion has grown since I’ve been more art deco or bohemian style. “There’s a lot occasional splash more involved in the business.” That said she of movement, but vintage/industrial always of contemporary is emphatic that VdeV is a separate entity with stands. It can be mixed with other styles,” its styling thrown in its own unique identity. owner observes. for good measure. “My mother and I work together all the Interestingly enough, Vergnolle de Villers time,” she continues. “She helps me a lot and says customers don’t quite appear to favour I try to help her as well. Having two people in furniture over personal accessories or kitchen- the same industry is definitely beneficial. We ware (think table settings and cutlery, not ne- don’t have the same products, though. It’s a dy- cessarily standard cookware). namic relationship for sure.” “I think it’s half and half,” she observes. While it’s no secret that the furniture busi- “This time of year, the little items are doing ness is a difficult one – as furniture is almost well. More into summer, furniture will be big- always considered to be more of a need than an ger. There are moments when some categories anytime want – Vergnolle de Villers believes it’s do better than others,” she says. “But our mis- incredibly helpful to offer customers a selection sion is targeted around home decor.” of bigger (yet affordable) items alongside small- As for where Vergnolle de Villers sources er pieces they can buy on a whim to enhance her range of goods, she says they rely on a their living room or compliment an outfit. It’s multitude of suppliers – both local and inter- the variety that makes the store stand out while national. “It’s a wide variety of sourcing. We offering customers something special. have used hundreds of suppliers, some are lo- “Our selection is pretty unique and comes in cal and some are imported,” she says. different prices and different styles,” she says. She benefits from visiting a small number of “The combination of uniqueness, originality assorted trade events and from making connec- and affordability makes us stand out. The store tions with people who want to work with VdeV.

10 HGO merchandiser “There are shows and some people contact me directly,” she says. “In Toronto, so many local suppliers have learned about me and contacted me, so I found a whole other market. I really always keep it moving, sometimes we’ll move on if everyone is using the same supplier. I try to keep my customers interested. I want them to find something they can’t find anywhere else.” She visits New York, Las Vegas and Toronto in search of new products to add to the floor. “The New York NOW show is very interesting for us,” she says. “Las Vegas has everything that we need. It’s good to go once in a while, but it’s complicated to travel all the way there. I items work together in a natural, organic way. (ABOVE LEFT) Seen here visit the Canadian Furniture Show as well.” “It’s organic and it makes sense,” she says. on a winter evening is It should be noted New York NOW is a trade Vergnolle de Villers says sometimes certain VdeV’s original store in show targeting specialty retail with a focus on products don’t really work in the context of the Montreal, located in the furniture, furnishings and décor. It is held twice store but they also provide insight into what city’s trendy Mile End a year at the Javits Centre in New York City. shoppers are truly looking for. “There are def- district. To keep customers interested, Vergnolle de initely categories that don’t work, but it’s about Villers focuses on balance. “I think of balance, being flexible and responsive,” she points out. (TOP) In the Montreal such has having attention getting pieces along Interestingly, Vergnolle de Villers says people store, pillows are with staples that go with all décor – it’s about don’t purchase disparate products – such as sofas displayed with candles, finding balance in keeping clients interested and necklaces – together all that often. What usu- frames and other items and intrigued.” ally happens is the customer who purchase a sofa not usually seen on a The store also focuses on is maintaining a or console table, often comes back to VdeV when furniture retailer’s floor. mid-range price point. “Price points are var- it’s time to simply upgrade or rejuvenate their (BOTTOM) Another eclectic ied,” she says. “A simple side chair could be new (or newly renovated) home. “When you get display pulling together $300 or an elaborate one might cost $1,700. settled in a new house or upgrade, you go through goods from across the I would say that we’re mid-range. It’s not so phases. You’ll start with bigger furniture and assortment as seen in cheap that you can necessarily furnish your then move onto lamps, then take a break and VdeV Toronto. whole house, but falling in love with a nice add the layers – the throw, the pillows.” piece is affordable.” Sometimes, people looking for one thing end One thing VdeV focuses on, much to the de- up leaving with something else entirely. “A lot light of its customers, is gift-able items (which of people come in for a couch, but find the per- is especially prudent this time of year). “It’s fect gift for someone they love. People can come about gift-able items. I guess people are a little upon unexpected finds in the store,” she says. surprised that we offer so much, but the way Since retail in general is a tough business we lay it out, it makes sense,” she says, adding to succeed in, and furniture even more so, it’s that some pieces (say, a table) can support a impressive Vergnolle de Villers was able to display in the store, essentially making all the launch not just one, but two stores in a short }

HomeGoodsOnline.ca 11 Product from across period of time – and in sought-after, on-trend swath of shoppers – mostly because of the di- the store’s assortment districts, no less. versity of its offerings. “Because of our wide is merchandised Fortunately, she didn’t have to have a laser variety, we definitely have a wide variety of and displayed focus on marketing or hire a team to spread clientele. For now, our most common people are collaboratively, as the word. “It’s hard to take care of marketing, between 25 and 45 because we connect with that seen in this vignette in so word of mouth was the best way to market. age group. But really, we have so many differ- VdeV’s Toronto store. Word of mouth was the main way we had to ent customers. People from ages 20 to 80 would reach out to people,” she says. be happy. We have something that there’s not a While word of her store travelled fairly fast, lot of on the market, it’s easier to grab anyone’s she also operates a stylish and comprehensive attention,” she notes. web site (vdevmaison.com) with online ordering While further expansion isn’t out of the ques- options and spreads the word through social tion, she’s quick to stress there are no definitive media. That said, she says it’s hard to tell how plans to either set up shop in another city or to much of her traffic comes from Instagram add locations in Toronto or Montreal in the im- posts rather than simple word of mouth. mediate future. “Yes, absolutely a third location “It’s hard to know. I think the most import- is possible,” Vergnolle de Villers says. “We have ant part is to be active. We’re out there and we to be careful and make sure the infrastructure try to have the best social media that we can. I will follow, but I’m open to the idea.” think that the street traffic has been more im- In the meantime, she sticking with what’s portant than just social media.” been working so well for the brand thus far. Vergnolle de Villers also said she has bene- “Nothing official is in mind for the future – just fitted from the connectivity between Montreal carrying well-curated items,” she says. HGO and Toronto. “There’s such a connection between the two cities – some clients know our A contributing editor to HGO Merchandiser, Montreal store and vice versa. But Toronto was ASHLEY NEWPORT is a Toronto-based freelance a new market for us and we had to make people journalist who writes primarily for trade and busi- discover the brand.” ness publications. Her specialties include food, She also believes the store appeals to a wide hospitality and emerging social/business trends.

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HomeGoodsOnline.ca 13 For more information, please get in touch: 1 800.388.2640 | [email protected] | www.zucora.com TRENDS

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Free delivery DEC Lounsbury A 2017 A Lounsbury DEC 9” or 5.5” rigid box springs available • Twin...... $12.98*/month or $649 Free delivery • Queen ...... • King ...... $15.98*/month or $799 it might$21.98*/month or $1099 seem prudent for Pay in up to * Sofa interest-free North on furniture, mattresses, decoration accessories and household payments appliancesretailers to transition from print Sectional American-Made50 with Chaise Sectional . Selected brands and models $ $1,929 ONLY 1,199 WAS *Fabrics may not be as shown. $ 1,599 to digital*Complete details on pageadvertising 4 – but perhaps not as fast as they think they should.Cycle: c1 After all, research indicates the beloved flyer isn’t going anywhere anytime soon. BY ASHLEY NEWPORT

14 HGO merchandiser T’S NO SECRET WE LIVE IN A WORLD Canada, RONA and Leon’s Furniture, among that’s both exciting and challenging – others, invited everyone to weigh in on an age- especially for retailers. At a time when old marketing tool that’s still driving custom- consumer tastes are changing dramat- ers into furniture and other stores. ically on an almost day-to-day basis, What the forum revealed, however, was the furniture, mattress and major appli- flyer cannot and should not be relied on as the ance retailers might be at a loss when best and most effective marketing tool. It must “We’re toning it comes to choosing the appropriate medium have some kind of digital component and be to reach out to consumers. For years now, the paired with a range of other advertising meth- down our flyer debate I has persisted: digital or print? ods and strategies – including digital and, when It might be tempting to think it’s time to tran- and where applicable, radio and television. usage to 35% sition to entirely digital platforms – but retail In other words, retailers are best to consider to 40% lower store owners and managers might want to hold omni-channel marketing. off on ditching print advertising entirely. “We interviewed 1,300 shoppers and mea- than we were Over the past decade in particular, both sured mobile, desktop, aggregated sites, print at five or six national and local major print publications usage and more,” Orpen told her audience. have grappled with declining revenues and “There are few shoppers that use any channel years ago. falling readership as tech-savvy consumers exclusively – 5% use digital only, 15% print only, I think we’re have chosen to consume media delivered 37% web and print and 28% use omni-channel.” on their smartphones, laptops and tablets. The talk shed light on some interesting stabilising, While this is a problem more specific to numbers. newspapers and magazines, retailers of all Across all retail segments – furniture, mat- we’re at a stripes have struggled to determine the best tresses and major appliances included – the plateau if way to reach potential buyers and those who love affair with the flyer is still very pronounced. sell furniture, mattresses and major appli- Attendees at the RCC forum were presented you will.” ances are no different. data that broke down the reasons why But while change is difficult and retailers consumers still gravitate towards fly- have some tough decisions ahead, furniture ers: 19% are looking for deals; 34% are aficionados who rely on the paper flyer (some- engaged with the brand; 26% are look- times called the circular) can rest easy for now ing for utilitarian reasons; and, 21% are for according to discussions heard at the Re- inspired by flyers. tail Council of Canada’s (RCC) recent Retail The data also indicated furniture re- Marketing Conference and Smart Flyer Forum tailers enjoyed a flyer readership rate events, the traditional flyer is still driving traf- of 46% as of 2016. As far as the home fic and netting positive returns on investment improvement sector goes (which has (ROI) for retailers. ties to furniture, even though it’s not “Canadian shoppers have a love for value,” quite the same), data discussed at the Lisa Orpen, vice president of national and forum revealed most people view fly- multi-market sales for Metroland Media – which ers for utilitarian purposes. After that, publishes some 110 community newspapers people view them to be inspired. Be- throughout Ontario – said at the RCC’s Smart yond that, they consult them to find Flyer Forum at the Delta Toronto Hotel. “We’re deals or out of engagement with the proud of finding a good deal at any income. sector or brand. This drives the behaviour we’re seeing when it comes to flyer and coupon usage.” ARE FURNITURE RETAILERS Michael Vancura, The Smart Flyer Forum, which welcomed STILL USING FLYERS? executive vice president speakers and participants from organisations While advertising experts seem to believe flyers of retail for Mega Group. such as BrandSpark International – the Toronto- are still useful, do furniture, mattress and major based market research firm best known for appliance industry insiders share those views – organising the annual Canada’s Most Trusted or are they finding they have to pair them with Brands program – as well as retailers Walmart other advertising media and strategies? }

HomeGoodsOnline.ca 15 “We’re toning down our flyer usage to 35% to “We also do some online flyers and flyers with 40% lower than we were at five or six years ago,” a digital component. When we ask how people says Michael Vancura, executive vice-president heard about Leon’s, we hear flyers and word of of retail operations for Mega Group – the Sas- mouth. We know it’s an incredibly important katoon based co-operative behind Brand- part of our business and something we’ll be Source Canada. “I think we’re stabilising, using for the time being.” we’re at a plateau if you will.” Others have also found the flyer is still a big Vancura said online advertising is part of a retailer’s marketing budget and over- growing at a prolific rate, which is there- all business. fore prompting Mega Group to direct its “It’s in the millions,” says Patrick Kelly, as- advertising dollars accordingly. sistant vice-president of furniture with Can- “We manage web sites and digital pro- trex Nationwide (CNW) – the Montreal-based motions for our retailers and we’re put- buying group that represents more than 1,000 ting more dollars into different mediums retail outlets across the country in several cat- such as Google, Facebook. The mix is egories including furniture, mattresses, major probably about 50% digital and 50% pa- appliances, electronics, photography and floor per,” he explains, quickly adding, “We coverings – when referring to how many fly- also do radio and TV.” ers Cantrex prints and distributes on behalf its Although Vancura doesn’t deny the fly- membership each year. er’s continued popularity, he says it’s not as “Flyers are still very important to the fur- cost effective as other advertising methods. niture category,” Kelly says. “Furniture isn’t “Part of the flyer dilemma is people still like really an impulse buy, but a flyer will trigger them and they have their place, but their a thought and the shopping process. Consum- Mike Walsh, distribution costs have increased,” he says, ers probably hang onto furniture flyers more president of Leon’s. although he doesn’t think a transition away from than shopping flyers.” the flyer is imminent. In terms of costs, retailers are still ensur- “There’s always a place for the flyer. People ing they have money budgeted for flyers, even who go online still use flyers and traditional if it’s not an enormous sum. In fact, though mediums.” printing may not be quite as affordable as it The staying power of traditional media is also once was, it doesn’t appear the flyer requires evident when you see how it’s being used by de- too much in the way of substantial investment. cidedly tech-savvy and online-oriented brands “Advertising budgets really depend on sales such as mattress specialist Casper and fur- and people will budget from 3% to 6%,” says niture and furnishings purveyor Wayfair. Vancura when speaking to how much Mega “Wayfair and Casper are advertising Group members as a whole might spend on in traditional media,” Vancura notes. “I advertising in general. “We estimate that with see Casper advertising on billboards in $280 million in retail sales at 5% for advertising, Montreal, for example.” that’s about $13 million. On average, advertising Vancura’s experience isn’t at all unique is about 4% and less than half is spent on flyers. to Mega Group. Somewhere between 1% to 2% is spent on tradi- During the RCC flyer forum, a session tional, so less than 1% would be spent on flyers.” entitled The Value of the Flyer in Today’s Digital World: A Consumer’s Perspec- ARE FURNITURE RETAILERS tive drove home the notion shoppers are EMBRACING OMN-ICHANNEL not committing to just one medium. The MARKETING? main takeaway from the talk was it’s best Although no one is denying the flyer is effec- for retailers to “plan to spread content tive, the RCC’s advice to invest in multiple across multiple formats.” marketing and advertising platforms is em- For some businesses – even well-es- braced by retailers of every size and product tablished ones with rock solid reputa- category. tions – the flyer still remains one of the “The real trend is towards omni-channel Pat Kelly, assistant vice most prominent drivers of store traffic. marketing,” says Kelly. “Digital is becoming president of furniture “We do 34 flyers a year and hit six million more important every day. We will see a grad- for Cantrex Nationwide. households,” says Mike Walsh, president of ual decline in use of print media, particularly Leon’s Canada, one of the banners operated on the appliance side. The real story is Face- by the publicly-held Leon’s Furniture Limited, book marketing and website digital market- the country’s largest full line furniture retailer. ing. It’s exploding.”

16 HGO merchandiser “We do online flyers and all of our paper ▲ The flyer was published recently flyers have a digital component,” says Leon’s by Bennett’s Home Furnishings, a Walsh. “Millennials consumers will look on- two-unit furniture retailer based in line, but a large amount of customers still look Peterborough, Ontario. for a printed flyer. The distribution is being optimised and changing.” Others are still using all avenues available to consider spreading the word, as TV and radio advertising remains an effective tool. That said digital is unique in the sense it allows retailers to use audio and visual elements to hook ER consumers who are simply browsing Facebook. UP S “More retailers are using Facebook,” says SALE! Vancura. “We also produce 15 second event Ridiculously videos and they have entertainment value and will speak specifically to a brand event. We’re printing less year over year.” BLACKAmazing For Vancura, it’s a matter of spending stra- FRIDAY tegically. Prices until Includes: Unbelievable th Queen storage bed, ! dresser, mirror & night stand. Value! “You’ve got to switch your marketing dol- Dec 4 Genuine Solid Mahogany Queen Bedroom with Storage! lars and divvy them up amongst different me- WAS $4,999 NOW $2,999 Unbelievable dia. Putting more towards digital, we’re seeing Value! WAS $3,279 that continuing year over year. I don’t think NOW $2,499 flyers will ever necessarily go away – flyers still work for a lot of people.” NEW!

Retailers also have to know their market Canadian Made Sofa Customizable in when deciding how to best reach consumers 100’s of fabrics! *Custom pricing$ may vary. WAS 1,419 $ – and they shouldn’t be afraid to ask for help if NOW 799 Solid Wood Queen Bedroom Set with Storage! they want to update or rejuvenate their adver- Includes queen storage bed, dresser, mirror & night stand. 1/2 Price! tising strategy but aren’t quite sure how. All Wood Construction Fireplace “It’s driven by independent retailer’s mar-

Reclining Power ketplace. In some places, radio is more effec- Leather Sofa ▲ The Brick published, both with USB $ WAS 759 WAS $1,699 Drop-leaf Table $ LOWEST PRICE IN CANADA! $ & 2 Chairs in print and online, this tive,” says Kelly. “A lot of time, it more depends NOW 377 NOW 1,399 $ Limited edition - stock only. ONLY 499 on the owner – it’s their ability to understand 20-page flyer to kick-off its and execute digital and print strategies and ‘Black Friday’ promotion. that’s where we come in. I would say people Sofa North Sectional American-Made with Chaise Sectional $ are far more aware of it now, but people need $1,929 ONLY 1,199 WAS *Fabrics may not be as shown. help building and executing.” $1,599 love your home bien chez-soi HOW ARE FLYERS CHANGING? ▲ HOLIDAY Although consumers still tend to gravitate Lounsbury, SALE to traditional paper flyers, the digital renais- the three-unit SEASON VENTE DE LA SAISON DES FÊTES sance has prompted furniture retailers to pair furniture retailer Reg. $2199.99 headquartered their traditional offerings with a digital com- The Big La grande VENTE ponent – something that helps ensure they tar- in Moncton, get older shoppers who regularly peruse flyers New Brunswick SALE and millennials who might be more inclined to publishes its look for deals or promotions online. flyers in both of “We put them on web sites and Reebee (a pop- Canada’s official languages. ular flyer website),” says Mega Group’s Vancura. Reclining Sofa Canapé inclinable $ .99 210314 “Every paper flyer will have some kind of digital Reclining Loveseat $1649.99 reg. $2149.99 1699 Rocker Recliner $1049.99 reg. $1299.99 Causeuse Inclinable 1649,99 $ reg. 2149.99 $ component.” Fauteuil Inclinable 1049,99 $ reg. 1299.99 $ Others agree that having digital presence is Free Gift RECEIVE A SAMSUNG TABLET with your purchase of $1000 or more NO INTEREST AND crucial. Some restrictions apply. See sales associate for details. Value before tax. Only one gift per purchase. UNTIL NO PAYMENTS Cadeau gratuit RECEVEZ UNE TABLETTE SAMSUNG on a wide selection of Furniture & Mattresses**(OAC) “All flyers are added to Reebee and posted on Avec un achat d’une valeur de 1000$ ou plus 2019 Certaines restrictions peuvent s’appliquer. Adressez-vous à un associé en magasin pour tous les détails. La valeur hors taxes et un seul cadeau par achat. AVEC PAS D’INTÉRÊTS JUSQU’À ET PAS DE PAIEMENTS web site and we can add pages and call out ex- www.lounsburys.com sur un grande sélection de meubles et matelas** (S.A.C.) DEC Lounsbury A 2017 2019 Prices Effective: December 1st - 14th, 2017 tra features,” says Leon’s Walsh. “It costs more } Prix en vigueur: du 1 au 14 décembre 2017

HomeGoodsOnline.ca 17 money to do that on paper, so digital gives us our flyers and they can because they’re on the flexibility to inform customers more.” Reebee. In the future, if you’re in a downtown And while some retailers might feel digi- condo, with geo-targeting capabilities, we can talising flyers simply creates more work for tell you about small-size furniture. It’s a smart, everyone, it’s also important to remember it intuitive feature.” creates more opportunities. Others say, going forward, the flyer will “We’re exploring the ability of the online flyer need to be augmented by digital and other to be more dynamic and personal,” says Walsh. advertising methods – especially since it’s “That adds another layer that the printed flyer always been tough to say that the flyer alone doesn’t have. Customers online will seek out has driven traffic. “We’re not able to measure based on flyers, but we look at multiple elements and it’s difficult to establish what worked better than another thing,” says Vancura. “We look at traffic in store, year over year sales, and on the digital ▲ Brault & Martineau, side there are analytics to look at. It’s tough to the Montreal-based judge the effectiveness of flyers when they’re retailer operated by paired with traditional media, but they should BMTC Group, features not be done alone, they should be backed up MEGA SALE YEAR- END all four of its major with a radio spot or a digital element.” $ 98* $ 19/50 months 999 Sectional product categories in

Reversible sectional MEGA living-room set its flyers, including IS THE FLYER GOING TO DISAPPEAR? Choice of colours available. See store for pricing Free delivery $5.98*/month or $299 • Ottoman with storage ...... SALE IN ALL OUR DEPARTMENTS furniture, mattresses, While no one has a crystal ball, furniture re- MÉGAMEGA ÉCONOMIES SAVINGS on furniture and decoration accessories appliances and tailers aren’t confident that the flyer – tried, electronics. trusty and true – will ever quite cease to exist. “I continue to believe in and our retailers continue to support flyer as an effective part MEGA SALE

MEGA SALE $ 75* $ 27/36 months 999 of our advertising. The only change is that it’s $ 98* $ RecliningSofa sofa 10/50 months 549 Sofa

• Rocking and reclining loveseat with no longer the dominant advertising media Reclining living-room set ...... $27.75*/month or $999 console section $16.64*/month or $599 Sofa with folding central backrest and cup holders • Rocking and reclining armchair ...... $9.98*/month or $499 • Loveseat ...... Free delivery Living-room set $7.38*/month or $369 • Armchair ...... Free delivery that it was 10 years ago for furniture stores,” says Vancura. Others think they’ll fundamentally change. “They’re going to be more dynamic and MEGA SALE

MEGA SALE $ 98* $ 17/50 months 899 more personal,” says Walsh. “There will be al- $ 98* $ Queen /50 months 13 699 Includes: double dresser, mirror, 2 night tables, head, Includes: foot and sideboards 1 table and 4 chairs Bedroom set ways a flyer in some capacity. How it’s done Kitchen set • Armoire ...... $6.98*/month or $349 Available in king size. See store for pricing • Chiffonier ...... $6.98*/month or $349 208 x 106 cm (82’’ x 42’’) table including a 45 cm (18’’) built-in extension panel with storage Free delivery Free delivery will evolve, but the flyer will always exist – it MEGA SAVINGS on household appliances and mattresses has to from a retail standpoint.” But while the flyer model – the paper docu- COME AND SEE OUR EXPERT ADVISERS ON SLEEP ment showcasing the latest deals and promotions – might always exist, not everyone thinks the flyer as we know it will be around years -day trial† MEGA SALE 90 LATEX PÉRIMÈTRE DE MOUSSE MEGA SALE MOUSSE MÉMOIRE INFUSE DE GEL MEGA SALE RESSORTS ENSACHÉS MEGA SALE $ $ 98* $ from now. $ 98* $ 249 13/50 months /50 months 699 $ 98* $ 15 799 The set /50 months Double 15 799 GEL INFUSED LATEX FOAM PERIMETER POCKETED COILS MEMORY FOAM “I honestly think they’re going to go away. Wine cooler mattress Range with self-cleaning oven MAX FIT $12.98*/month or $649 18-cu. ft. refrigerator • Twin...... ® cleaning Capacity of 35 bottles/Reversible and box spring $15.98*/month or $799 5.9-cu. ft. oven/Steam Quick door/6-14°C temperatures range • Queen ...... $21.98*/month or $1099 Glass shelves/Reversible doors 9” or 5.5” rigid box springs available • King ...... The marketplace is changing and the custom- 1 quick boil element Free delivery 2 humidity-controlled crispers Free delivery, pick-up and service Free delivery Free delivery, pick-up and service * payments er is changing,” says CNW’s Kelly. “We never interest-free . Selected brands and models Pay in up to thought Sears would go away. They’ll never on furniture, mattresses, decoration accessories and household appliances *Complete details on page 4 50 go away 100% just like newspapers and maga-

Cycle: c1 zines won’t. There will be a place for them, but it’ll be a question of cost effectiveness. Who ▲ The cover of the knows what retail will be like in five years.” HGO furniture flyer published earlier this year by JYSK, A contributing editor to HGO Merchandiser, the low-end Danish ASHLEY NEWPORT is a Toronto-based freelance retailer that operates journalist who writes primarily for trade and some 53 stores across business publications. Her specialties include Canada. food, hospitality and emerging social/business trends.

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A FUSION OF food and furniture The former Restoration Hardware has opened what may be the most singularly unique high-end furniture store in Canada. Attached to Toronto’s Yorkdale Shopping Centre, it was designed to create a gourmet level shopping experience. BY MICHAEL J. KNELL

22 The Design Atelier is a 5,000-square-foot studio anchored by four fully integrated workspaces where customers and RH designers can re- imagine a single room or an entire home.

H, THE HIGH-END FURNITURE Entire floors are dedicated to three and furnishings retailer formerly of the retailer’s merchandising strat- known as Restoration Hardware, egies: RH Interiors, RH Modern and has opened The Gallery at York- RH Outdoor (not included are RH Rdale, offering a store concept that’s Baby & Child and RH Teen). RH certainly unique in this country with its fusions Toronto will feature an interactive of luxury furniture and furnishings, design ser- Design Atelier, offering professional vices with seamlessly integrated culinary of- interior design services in a studio Gary Friedman, chair- ferings on par with that savoured in any resort environment. man and chief executive favoured by the rich and famous. But the real differentiating factor is the in- officer of the Corte The new centrepiece of this city’s York- corporation of RH Hospitality, which is led Madera, California- dale Shopping Centre, RH Toronto covers four by celebrated restauranteur Brendan Sodikoff based Restoration levels and almost 70,000 square feet of both and includes the RH Courtyard Café and the Hardware, now known interior and exterior display space. The pub- Barista Bar. simply as RH. licly-held retailer said the space features what “The vision for our new design galleries it describes as “artistic installations of home has been to blur the lines between residential furnishings in a gallery setting.” and retail, and create spaces that are more }

HomeGoodsOnline.ca 23 An artist’s rendering of RH Toronto, one home than store. The next logical step was to of three new concept further blur the lines between home and hos- stores from the pitality, with an integrated restaurant, wine former Restoration and coffee bar,” Gary Friedman, chairman and Hardware that fuses chief executive officer of the Corte Madera, furniture with food. California-based RH, said in a statement. Gilt Bar in Chicago, as well as his first restau- It’s new open at “What we are doing goes far beyond attach- rant in New York – 4 Charles Prime Rib – an Toronto’s Yorkdale ing a restaurant onto a store – that’s been done intimate supper club in the West Village. Shopping Centre. before,” he continued, adding, “What’s unique Sodikoff has been named one of Chicago is we’ve created a completely integrated hospi- Magazine’s ‘100 Most Powerful People in Chi- tality experience, led by famed Chicago restau- cago’ and one of Crain’s ‘40 Under 40’. He has rateur Brendan Sodikoff, that reflects our taste, also been recognized by Bon Appétit, Food & style and point of view. We’re proud to bring Wine, and the Food Network, among others. this first-of-its-kind concept to Toronto, one of “I’ve felt a connection to Toronto for years. The Barista Bar the most metropolitan cities in the world.” It’s a city of innovation and inspiration. I’m ex- inside RH Toronto Sodikoff is the founder, CEO and creative cited to join Toronto’s vibrant restaurant cul- is where shoppers director of Hogsalt Hospitality, a rapidly grow- ture and look forward to spending more time can find coffee ing Chicago-based restaurant group spanning there with the opening of RH,” Sodikoff said. and freshly-baked 14 concepts and 15 locations. Hogsalt’s portfo- RH Toronto marks Friedman’s ongoing col- pastries as they lio includes such well-known establishments laboration with the California-based design look over the store’s as Au Cheval, Bavette’s, Doughnut Vault, and architect James Gillam of Backen, Gillam & high-end furniture assortment.

24 HGO merchandiser Kroeger, a firm recognized as one of Archi- tectural Digest’s Top 100 architect and design firms in the world. Conceptualised as a grand-scale contemporary structure filled with fresh air and natural light, RH Toronto features an expanse of glass-and-steel French doors that open onto a streetscape with Boston ivy, geometric topiar- ies and towering trees rising out of a continu- ous boxwood hedge. The gallery’s eastern entrance can be found inside Yorkdale Shopping Centre and features a terraced façade of Venetian plaster and a lush interior courtyard flanked by open-air loggias serving as the central location for the (ABOVE LEFT) A view of gallery’s hospitality experience, the Courtyard the sales floor at RH Café. Here, shoppers – or as RH calls them, From here, visitors can ascend a grand dou- Toronto, featuring guests – can sit beneath heritage olive trees ble floating staircase spanning nearly 40 feet. a smattering of the and a 140-foot-wide skylight that washes the Natural light emanates from a second massive product assortment entire space with natural light while they enjoy skylight four floors above, while an installation offered in its RH a seasonal, ingredient-driven menu accompa- of 23 crystal Helix Chandeliers hanging 62 feet Modern catalogue. nied by a curated selection of artisanal wines overhead highlights a composition of gilded (TOP) All of the and craft beers. This all-seasons oasis features antique mirrors that cascade down the stair- presentations at elegant banquette seating layered with green well to create an endless reflection and further RH Toronto are velvet boxwood hedging, cascading English illuminate the way. thoroughly ivy, trickling fountains, glimmering lanterns Level two features the RH Design Atelier, a accessories and and 19th century Rococo crystal chandeliers. 5,000-square-foot studio anchored by four, 15- on-trend, as well as When arriving at RH Toronto from the west, foot custom tables offering a fully integrated being very high-end. visitors will pass through a 24-foot wide by 24- workspace for customers, designers and archi- foot tall threshold of glass and steel. Continuing tects to re-imagine one room or an entire home. Looking at the RH into the gallery’s central hall with its 14-foot ceil- Here, guests can work with a team trained in Courtyard Cafè from ings, guests will find the RH Barista Bar – a dra- the RH design ethos to create functional and inside the Yorkdale matic focal point defined by a Tuscan colonnade elegant spaces. The space also features access Shopping Centre. and facet-edged limestone slabs. Here, baristas to RH’s library of fabrics, leathers and furniture approach coffee as an art, and guests can en- and lighting finishes to provide what the com- joy fresh house-made doughnuts and pastries. pany believes is an unprecedented level of de- Barrel-vaulted passageways lead to a classical sign services. arrangement of rooms featuring furniture and The Design Atelier also includes a Ben So- accessories from the RH Interiors collection. leimani rug showroom displaying the fourth- }

HomeGoodsOnline.ca 25 A look inside the 12,000 square foot rooftop generation designer’s hand-knotted and hand- At press time, RH Toronto was only the sec- conservatory with woven rugs, and other specialised galleries for ond store in the network offering RH Hospital- glass and steel window treatments, bed and bath linens and ity being operated by the company in North structure housing bath hardware. America, the first being located at The Gallery towering banana The third level houses a 12,000-square foot at the Three Arts Club in Chicago. At third was palms, heritage exhibition space for RH Modern, one of the expected to open late November in West Palm olive trees, exotic largest curated and fully integrated assort- Beach, Florida. It replaces two previous Toron- succulents and ments of modern furnishings, lighting and to locations, one on Yonge Street in the city’s 20-foot ceilings at décor under one brand in the world. Devel- downtown core and the other in Bayview Village. its apex. oped in collaboration with a select group of In all RH operates four design galleries designers, RH Modern’s design vernacular across Canada. In addition to Toronto, they are represents a fresh point of view, defined by a in Vancouver, Calgary and Edmonton. It also minimalist aesthetic, the finest materials and operates two outlets stores, in Milton, Ontario maximum comfort. This immersive experi- and Surrey, British Columbia. ence is punctuated by a rhythmic progression A company spokesperson told Home Goods of glass and steel French doors with corre- Online, RH will open three other food-infused sponding Juliet balconies that line the perim- galleries in New York, Nashville and Yount- eter of the floor. ville, California during 2018. In all, it current- At the top of the grand stair, guests arrive at ly operates a total of 85 stores, including six the Conservatory & Rooftop Park. The 12,000 in Canada and a single location in the United square foot garden space will first be experi- Kingdom. In the first half of its current fiscal, enced within a structure of glass and steel with RH reported sales of US$1.18 billion. Furni- towering banana palms, heritage olive trees, ex- ture accounted for 63% of its total sales mix. otic succulents and 20-foot ceilings at its apex. It operates a Canadian web site at: restora- The indoor space opens onto a spectacular roof- tionhardware.com HGO top with mature Himalayan birch trees set within colossal steel planters accented with cascading MICHAEL J. KNELL is the publisher and editor of English ivy. This one-of-a-kind destination fea- Home Goods Online and all of its platforms. tures open-air pavilions, glimmering chandeliers He has observed, researched and written about and trickling fountains that further enhance in- Canada’s furniture and mattress industry for timate vignettes of RH Outdoor collections and the past three decades. He can be reached at frame iconic views of the Toronto skyline. [email protected]

26 HGO merchandiser MADE IN ITALY

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www.magniflex.com For more info please contact: Richard Landriault, Director of Sales – Magniflex Canada [email protected] - Tel 905.481.0940 HomeGoodsOnline.ca 27 SLEEP IS LIFE’S GREATEST PLEASURE. GATHERINGS QFMA CELEBRATES

Denis Bergeron Mario Marcil of Polymark; Jacinthe of Artopex; Gilles Brouillard; Greg Brown of Camlen Genest of Fonds Furniture; Jessica Viau and Raphael de solidarité FTQ Langlais of Structure 2000. and Carole Lauzé; and, Jacques Laroche of Pierre Richard, president and PréviBois Santé- CEO of the QFMA with Pablo Sécurité. Rodriguez, chief government whip and Member of Parliament for the Quebec riding of Honoré-Mercier.

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28 HGO merchandiser 75th ANNIVERSARY

The Quebec Furniture Manufacturers Association celebrated the 75th anniversary of its founding at its recent annual general meeting and conference which was held at the elegant Ritz-Carlton Hotel in downtown Montreal. Some 130 people from across the industry, including manufacturers, component producers and other suppliers, attended the three-day event that began with a tour of the state-of-the-art factory operated by HVAC equipment maker Stelpro.

S WE REPORTED WHEN WE TURNED Andréanne the Spotlight on the factory group in Paquin and David our Fall 2017 issue, for the past 45 Gelinas, QFMA years it has been most closely as- board member sociated with the Canadian Furniture Show, this and executive country’s only national industry trade event. vice president of But according to Pierre Richard, president and Zedbed; Jean- Philippe Deveault chief executive officer of both QFMA and CFS, of Canadel; and the association’s most important work is advo- Véronique Sauvé cacy for and promotion of the interests of fur- of Jaymar. niture makers in Quebec. What many may not realise is the QFMA is only non-profit industry association left in North America whose focus is on the furniture manufacturing both for the retail/residential as well as contract, commer- cial and hospitality markets. As he reported to his members during the weekend, the QFMA is growing its membership. At least 25 companies have joined the association so far this year. Of its 145 members, at least 100 are furniture manufacturers, a sizeable number of whom turned out for the convention. The conference agenda was all about helping his members thing about the future, which Richard believes is very bright, pointing out his members have combined payroll expenses in excess of $1 billion annually and generate direct taxes of more than $340 million every year. His members constitute the seventh largest manufacturing sector in the province and QFMA president Pierre shipments have been growing steadily in each Richard with Alexandre of the past few years. Paquette of Trica, who The meeting concluded with the election was elected to the of board members. Elected a director for the association’s board of first time was Alexandre Paquette of Trica directors for the first time. Furniture, the St-Jerome, Quebec-based man- Guy Tousignant of Mirabel ufacturer best known for its bar stools and Matelas and Sylvie Trudeau. dining chairs. HGO

HomeGoodsOnline.ca 29 TECHNOLOGY

MyPixel: an AFFORDABLE ENTRY FASTESTto GROWINGthe marketing tool Advertising is expensive, even when it’s on the web. But a Montreal-based consulting firm has developed a new platform that should make finding and attracting customers to a retailer’s web site a lot more cost efficient while helping to build the brand. BY GREG SIMPSON

NLINE DIGITAL ADVERTISING HAS GROWN Advertising exchange District M believes it has found a into a global marketplace with an estimated way to bring small and medium-sized businesses – including value of $230 billion. It has been best har- independent furniture, mattress and major appliance retail- nessed mainly by those with the deepest ers – to the digital marketing table by creating MyPixel, a pockets. While a wide range of businesses platform they say delivers an entry point into this techni- can buy ad space on any given web site, large advertisers cally complex marketplace. O – usually corporate giants with vast resources – and their Five years of facilitating digital advertising exchanges marketing agencies usually lock down the latest cutting helped District M realise the need to streamline the pro- edge technologies and techniques before any one is really cess and create a level of affordability to even the playing aware of its availability. Digital marketing was one of those field – one that would allow independent and smaller busi- techniques but thanks to a relatively small and unknown nesses access to these resources. They understood many disruptor based in Montreal, there’s an opportunity for don’t have the resources to learn such a technical speciality, small and mid-sized retailers to get it on the action. so they put their expertise into creating the MyPixel plat- Programmatic digital advertising has become both the form. The plan is to bring all the complexities of advertising standard and the emerging trend of online marketing. Typi- exchanges and real-time bidding into one place and then cally requiring in-house specialists or third-party firms dedi- deliver them in a platform anybody can use. It’s simple as cated to its successful implementation, the costs associated signing up and creating a campaign. with programmatic advertising often fall beyond what a sig- District M’s chief marketing officer Adrian Pike explains nificant portion of Canadian retailers – particularly family- programmatic advertising, it “typically means that we can owned independents – can afford. tie up advertisers...with web sites and based on information

30 HGO merchandiser Adrian Pike is chief marketing officer to District M, the Montreal-based creator of the MyPixel digital advertising platform. we’ve captured about the viewers of that web site we can display ads that are relevant to them.” This gives retailers the unique ability to use their online stores to increase traffic, promote return visits, and rein- force brand awareness through a process called retargeting. To put it quite simply, when the visiting consumer leaves the retailer’s web site, advertisements that encourage re- engagement go with them, using the visiting consumer’s geographical location to provide relevant content. keting dollars. The goals of a retargeting campaign is to “You want to retarget people who have visited your web increase the amount of re-engagement – that is, the number site with adverts for your store,” Price explains, “as simple of return visits – by the visiting consumer and build the re- as that, so when they’ve been to your web site, you can then tailer’s brand recognition. With repeat exposure, the prob- retarget them with offers, campaigns, and even brand asso- ability that the visitor will become a buyer increases. The ciation. Adverts that sort of follow them around and when longer the retailer is able to maintain an online presence they see it, they’ll see your brand in the corner with, you and engage with higher levels of traffic, a profile of likely know, an image and a contraction to take them to your web buyers can be created. Over time, using the data retarget- site or to a conversion page.” ing data collection, campaigns can be fine-tined to find The true selling point of a retargeting campaign using those consumers most likely to shop either in the retailer’s programmatic digital advertising tools is one with rele- brick and mortar store or on his web site. This also helps vance for businesses of all sizes: the efficient use of mar- the retailer get the most out of his advertising budget. }

HomeGoodsOnline.ca 31 MyPixel is a platform the allows the advertising retailer to follow a consumer who visits his web site as she travels to other sites across the world wide web. MyPixel’s other advantage is it can be used for as little as $3 a day.

Prospecting is a technique takes retargeting to the next reported while Canadians spent more than $136 billion on- logical step. Rather than simply engaging with browsers line, fewer than 60% of Canadian companies had any on- (that is, potential customers) that have already visited the line presence whatsoever. However it is described – online retailer’s web site, prospecting uses information gathered shopping, e-commerce or whatever other label – this is a from the site’s analytics to build a profile of what a typical or retail segment primed for growth. ideal browser (that is, potential customer) would look like. While still a miniscule share of total sales, e-commerce The platform will then seek out potential consumers with is the fastest growing sales channel for furniture and home similar profiles and display advertisements to drive traffic. furnishings stores in Canada. According to Statistics Cana- Pike says this would be like “putting up a nice display so da, e-commerce sales for these stores totalled $261.5 million that the people that are in the area can see the store.” in 2015 (the latest year for which data is available), up 14.2% The first iteration of the recently releasedMyPixel boasts over the prior year. It should be remembered that three a feature that streamlines the user’s ability to create his own years earlier e-commerce sales for furniture and home fur- digital marketing campaigns. By utilising District M’s net- nishings stores were less than $98 million. work of over 7,000 web sites and using the platform to fine This past August, Home Goods Online cited a report tune targeting based on the analytics, MyPixel has the abil- from One Click Retail, a U.S. consulting and research firm, ity to maximise the retailer’s marketing dollar while pro- maintaining Amazon.ca sales of furniture and mattresses moting the store’s brand consistently on the web. were valued at $30 million for the first seven months of Through late December and early January 2018, District 2017. Most industry insiders believe the Canadian branch M will increase the number of features as well as the depth of online home décor giant Wayfair were higher – possibly of detail to the program’s analytics, which will give rise to a reaching the $50 million mark. platform that is able to provide Further evidence of the growing strength of the web as “You can go prospecting functions as well. a sales channel for furniture and home furnishings can be In what would typically require found in IKEA Canada’s latest summary report, which re- online, create a significant investment – even ported e-commerce sales of $184.6 million for its 2017 fiscal an account and from a small independent re- year, an uptick of 26.7% from the prior year. This gave the tailer – MyPixel’s baseline price channel an 8.5% share of overall revenue, much higher than in a few minutes of $3 per day during active cam- the industry as a whole. paigns appears to bring a so- Online retail is heavily dependent on strong brand you’re ready to phisticated but necessary mar- awareness coupled with malleable advertising campaigns start building keting avenue within reach. and the ability to penetrate unconventional markets. Dis- Since MyPixel requires no sub- trict M believes MyPixel can provide an entry point for your campaigns. scription fees and incurs no cost small business to create, manage, and optimise their entire to the advertising retailer when programmatic digital marketing experience. Mr. Pike sums Now, a small inactive while being responsive it up, “the goal is that it’s pretty much turnkey. business owner to all levels of investment, Pike “You can go online, create an account and in a few min- believes this platform offers a utes you’re ready to start building your campaigns,” Pike can have access degree of flexibility most small, said. “Now, a small business owner can have access to the growing independent businesses same kind of platform that big brands use.” to the same kind could put to good use in an ever- District M can be found on the web at districtm.net HGO of platform that changing marketplace. In 2016, The Canadian In- GREG SIMPSON is a freelance writer based in Port Hope, big brands use.” ternet Registration Authority Ontario. This is his first assignment forHome Goods Online.

32 HGO merchandiser On the horizon awaits our spectacular collection of furnishings On the andhorizon alluring awaits objects our spectacular for every home collection and lifestyle. of furnishings and alluring objects for every home and lifestyle.

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HomeGoodsOnline.ca 33 SPOTLIGHT

Thanks for the memories Upholstery house Superstyle is celebrating 50 years in business in 2017. Its leadership believes the qualities that got it this far, building a quality product at a good price and supported by excellent service, will see it through for another half-century. BY MICHAEL J. KNELL

HERE’S A REASON WHY COMPANIES celebrate their 50th anniversary. It’s a very difficult thing to achieve. Some- one once noted that for every 1,000 Tnew businesses launched in Canada in any given year, fewer than ten would make it that long. Laine Reynolds (left), So, when achieved, it should be celebrated. vice president of sales Celebrating such as occasion in 2017 is Su- and marketing is seen perstyle Furniture, the Toronto-based station- here with Superstyle’s ary upholstery house. Since its founding by the second generation late Giovanni (called John) Colalillo and his president and chief brother, Domenic, it has evolved and grown to executive office Danny the point where it is now an industry leader. Colalillo. They make up The story of how Superstyle came to be is a the company’s senior familiar one. John Colalillo immigrated to Can- management team. ada in 1958 at the age of 20 on the advice of his

34 HGO merchandiser Thanks for the memories

grandfather. The following year he went to work 70,000 square foot factory on Norfinch Drive. The group includes both for the now defunct Newport Chesterfield. In 1985, he started Trend Line Furniture, a the Model 34 occasional In 1964, he started Futurama Chesterfield in specialist in modern and contemporary uphol- chair and an L717 from partnership with his brother-in-law, Mario Co- stery. Shortly thereafter, he founded Simmons the LeatherBrand lalillo (who later went on to found Edgewood Upholstery Canada, now one of this country’s collection in red. Furniture). largest producers of sofa beds. When that partnership ended three years The current home to Superstyle Furniture later, John and Domenic started what was – a 120,000 square foot factory in the Toronto then called Superstyle Chesterfield, in a 5,000 suburb of Vaughan – was built in 1998. Trend- square foot factory. In those early days, John Line continues to occupy the Norfinch Drive Colalillo acted as president, sales representa- facility, giving the company some 200,000 tive, order collector and fabric cutter. square feet of manufacturing, head office and In 1972, he moved Superstyle and its now showroom space with a workforce approaching 30-member work force to a 15,000 square foot 200 people. building in another part of the city. Ten years John Colalillo passed away in 2010. His son, later, the company moved once again to a Danny is now the second generation president }

HomeGoodsOnline.ca 35 The Superstyle 34 occasional chair offers a generous scale with sweeping arms for a sophisticated silhouette. A statement piece that is detail-rich yet offers extraordinary comfort.

The L717 from Super- and chief executive officer of the family owned of these men exemplify these qualities and style’s LeatherBrand of- company. His daughter, Mary, also works for deeply deserve this honour.” fers a clean contempo- the company as does his wife, Joanne. Reynolds is vice president of sales of mar- rary look with a smartly In 2008, John Colalillo and Mario Colalillo keting for both the Superstyle and Trend-Line scaled two-over-two de- were honoured with the Lifetime Achievement brands, a position he has held since 1993. sign. The side-bolsters Award by the Canadian Home Furnishings Al- ‘Thanks for the Memories’ has been the and striking chrome liance (CHFA) in recognition of their contribu- company’s theme for its 50th anniversary legs add character. The tions to the industry. celebrations. richness of the genuine “Collectively they are involved with a sta- “The most important part of our 50-year his- top-grain leather en- ble of leading brand names in the upholstery tory is the fond memories of the great relation- hances the appeal. This sector,” then CHFA chairman Laine Reyn- ships this company has built with a countless is perfect for contem- olds said in announcing the honour. “There number of people across the industry in this porary or transitional is always a great need in business for people country,” Reynolds explains. “While Super- environments. who are professional, who have integrity, give style is proud of its many accomplishments, we good counsel to their employees and are re- also recognise the critical factor in our success spected by their customers and peers. Both has been the dedication of our staff and supplier as well as our retail partners – it’s those connections that have made the company’s 50- year journey most enjoyable.” Reynolds noted getting to the 50-year mile- stone forced the company to be both agile and innovative in its product offerings. “The line also changed over the years,” he said. “We ex- panded the lifestyle mix and added depth to the price ladder by growth the premium end of our Superstyle labelled assortment with the addition of LeatherBrand and Vogue. We offer a wide assortment of unique designs as well as an impressive range of fashionable textiles – in both leather and fabric.” Superstyle has also staked out a reputation as a ‘custom’ or ‘tag’ order specialist with goods in the traditional and transitional style categories, with seating that sports both a carriage-coil spring system and high density foams. Trend-Line focuses on the ever-expand- ing contemporary and modern style genres while Simmons Upholstery Canada is primarily a brand name hid-a-bed specialist, although it does offer some stationary upholstery as well Described as elegant and impressive, the 9707 group is the latest addition to as an assortment of curated occasional chairs. Superstyle’s ‘Inspiration Home Collection’. The fabric combinations add to its slightly While the company products can be found formal attitude. This suite offers all the value-enhanced features including carriage- on the floors of national retailers such as Leon’s coil support system and super-cel premium seating. Furniture, Hudson’s Bay, Bowring and Brault &

36 HGO merchandiser This grouping joins the 9707 sectional with a model 34 occasional chair creating an on-trend vignette that should appeal to a consumer seeking to create a transitional-style environment for her home.

Martineau in Quebec as well as the three furni- most importantly providing consistency in our ture buying groups – Cantrex Nationwide, Du- support all these benefits.” fresne Retail Solutions Group and Mega Group Moving forward, Reynolds believes the key to – it also partners with a growing number of in- growth is leveraging Superstyle’s strong indus- dependent furniture stores across the country. try brand to grow market share geographically Among them are Toronto’s Chesterfield Shop; in those areas of the country where it has sales destination retailer Stoney Creek Furniture potential while at the same time aligning itself of Stoney Creek, Ontario; and, Tepperman’s, to aid those retailers in its network that are plan- the five-unit regional chain headquartered in ning for growth. “Especially those who are posi- Windsor, Ontario. tioning themselves for the long term,” he says. The late John Colallilo While it has been an active exporter – at He also believes from a product perspec- (left), founder of one time it had a good working relationship tive, the company’s LeatherBrand will be an Superstyle Furniture with a department store in Japan – it doesn’t important growth driver. “We will continue is seen here receiving sell to any retailers in the United States. And, to expand this extremely successful business the 2008 Lifetime that’s by choice. “While over the years we platform by giving it a more contemporary and Achievement Award have enjoyed export activity throughout vari- modern look in both styling and leather arti- from Hugh Owen, ous parts of the world we have deliberately cles,” he says. past-chairman of avoided the massive U.S. market in order to “It sounds corny but our tag line – Crafted the Canadian Home maintain focus on our primary market, Can- by Canadians since 1967 – still resonates with a Furnishings Alliance at a ada, where we still have much growth poten- marketplace that wants quality product offered gala held in his honour. tial,” Reynolds explains. by reliable, long-standing and successful Ca- At the time, each award And they are ready to tackle the challenge. nadian companies,” Reynolds says. “I believe recipient had a star in “Our key competitive advantage is that we for the next 50 years, Superstyle has a very the constellation Ursa are a big-small Canadian company,” Reynolds promising future. We’ll continue to set goals Minor named in their says. “This allows us to be very responsive to and create more memories.” HGO honour via the Star the ever-changing marketplace. Additionally, Registry organisation. we provide our retailers with innovative, yet MICHAEL J. KNELL is the publisher and editor highly saleable products, successful express of Home Goods Online and all of its platforms. programs and reasonable lead-times, custom- He has observed, researched and written about order expertise, trouble-free quality, respect- Canada’s furniture and mattress industry for able margins and distribution protection – all the past three decades. He can be reached at backed up with a reliable level of service; and [email protected]

HomeGoodsOnline.ca 37 INDUSTRY CALENDAR

January 4 to 7, 2018 January 18 to 21, 2018 February 25 to 28, 2017 April 14 to 18, 2018 TUPELO FURNITURE INTERIOR DESIGN SHOW ALBERTA GIFT FAIR HIGH POINT MARKET MARKET Metro Toronto Convention Canadian Gift & High Point, NC Tupelo, Mississippi Centre North Tableware Assn. highpointmarket.org tupelofurnituremarket.com Toronto Edmonton Expo Centre interiordesignshow.com Edmonton, AB May 25 to 28, 2018 January 9 to 12, 2018 cangift.org CANADIAN CES January 28 to February 1, 2018 FURNITURE SHOW Consumer Technology LAS VEGAS MARKET February 26 to March 1, 2018 Quebec Furniture Association World Market Center PRIMETIME Manufacturers Assn. Las Vegas Convention Center Las Vegas, NV Cantrex Nationwide International Centre Las Vega, NV lasvegasmarket.com Gaylord Palms Resort Mississauga, ON ces.tech Orlando, FL canadianfurnitureshow.com January 30 to February 1, 2018 nationwideprimetime.com January 9 to 16, 2018 THE INTERNATIONAL May 28 to 30, 2018 ATLANTA INTERNATIONAL SURFACE EVENT (TISE) March 8 to 11, 2018 STORE 2018 GIFT & HOME FURNISHINGS Mandalay Bay Convention MALAYSIAN Retail Council of Canada MARKET Center INTERNATIONAL Toronto Congress Centre America’s Mart Las Vegas FURNITURE FAIR Toronto Atlanta, GA intlsurfaceevent.com Putra World Trade Centre storeconference.ca americasmart.com Kuala Lumpur, Malaysia January 28 to February 1, 2018 miff.com.my June 3 to 6, 2018 January 15 to 21, 2018 TORONTO GIFT FAIR SHOWTIME IMM COLOGNE CANADIAN GIFT & March 14 to 16, 2018 International Textile THE INTERNATIONAL TABLEWARE ASSN. ISPA EXPO Marketing Assn. INTERIORS SHOW International Centre International Sleep High Point, NC Koelnmesse GmbH Toronto Congress Centre Products Assn. showtime-market.com Cologne, Germany Mississauga, ON Charlotte Convention Center imm-cologne.com cangift.org Charlotte, NC sleepproducts.org

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38 HGO merchandiser HomeGoodsOnline.ca 39 40 HGO merchandiser ON RETAIL

THREE STEPS TO INCREASED LOYALTY Don’t define your business by what you sell on the floor. Define yourself by what you do to solve your customer’s problems. Making their life better will make you more money.

ERE IS A SIMPLE THREE-STEP people and not by what they sell. “We’re in the process that I use with clients business of helping people buy a home and to around the world to help them own that home mortgage-free as quickly, con- increase loyalty, sales and prof- veniently and inexpensively as possible.” itability. They pay me big bucks Isn’t that the mortgage company you’d want for this information and here it is for free – and, to deal with? Why? Because they’re focused on Hit could transform your business! helping you do what you want to do. A question I love asking clients is, “Are you trying to get STEP 1 DEFINE YOUR BUSINESS BY customers to do what you want them to do or HOW YOU ‘HELP’ NOT BY WHAT YOU SELL are you committed to helping them do what Most businesses make the mistake of defining they want to do?” BY DONALD themselves by what they sell. “We sell comput- So, using the mortgage company example COOPER ers, insurance, cars, mayonnaise or seats on air- above for guidance, set an hour aside in the planes.” Whatever it is they sell, that’s how they next week to sit down with some of the best define themselves. minds and hearts in your business and define The problem is when we define ourselves by yourself by how you and what you sell helps what we sell our focus tends to be on us and our your target customers, functionally, emotion- need to sell more. It’s all about ‘us’. In order to ally and financially. get passionately focused on our customers, it’s far more useful to define ourselves, not by what STEP 2 MAKE A LIST OF ALL THE HELP we sell, but by how we and what we sell helps YOUR TARGET CUSTOMERS NEED THAT IS our target customers. IN ANY WAY RELATED TO CHOOSING, Here’s a great example. Over the past few BUYING OR USING WHAT YOU SELL years, I’ve spoken at several conferences for Having redefined yourself by how you help, mortgage companies. When asked what busi- take time to think and feel like a customer. Sit ness they are in, the answer was always the down with your team and start making a list of same, “We sell mortgages!” all the help your target customers need in or- Let’s look at what their business sounds like der to know about you and the value you offer,

ILLUSTRATION: ADOBE STOCK/ARTINSPIRING ILLUSTRATION: when we simply redefine it by how they help to wisely choose and effectively use what you}

HomeGoodsOnline.ca 41 Think ‘WOW’. Think ‘amazing’. Think about what has never been done before. Think and feel like a customer and have the creativity and the courage to create compelling customer-owning value and experiences at every touch-point.

sell as well as what kind of help they need that is area for kids and instant birthday parties for in any way related to doing business with you. customers shopping on their birthday. We of- Think of what products, services, informa- fered free drinks, free diapers, diaper wipes and tion and coaching, convenience, confidence, cream for young mothers in distress and a mag- kindness and encouragement, payment meth- ic sign that invited customers to, “Please take ods or terms they might need to have a com- as many items in the change room as you wish!” plete, successful and stress-free experience We priced merchandise honestly, didn’t shopping in your store and selecting what you manipulate customers into buying stuff they sell. To jump-start your creativity, consider shouldn’t while generally offering more help, these four simple questions. kindness and real value than any of our competitors, most of whom told us that we were ‘nuts’. Do all of our target customers know about Our customers loved us, raved about us to their 1us and all the value we offer? How can we friends and came back over and over again. help them know more about us? How did we do it? Rather than saying, “we Functionally, emotionally and financially, sell ladies clothing” we defined ourselves as be- 2what are people really trying to do when ing in the business of helping women to look they’re buying and using what we sell? good and feel good. We took the time to think What do they want or need to know to and feel like a customer. We cared passionately 3wisely choose and effectively use what and we constantly asked two powerful ques- we sell? tions, “What’s possible?” and “what’s next?” How do they want to feel when they do You can’t do everything at once, but something 4business with us and every time they ‘use’ can always be ‘next’. what they buy from us? Here’s another example. The medical imaging division of General Electric sells complex STEP 3 HOW WILL YOU DELIVER and expensive MRI and other imaging equip- THAT HELP BETTER THAN YOUR ment to hospitals and medical clinics. But, by COMPETITORS? understanding what life is really like for their Now that you know exactly what kind of help customers, they sell more than that. They sell your customers need, get creative. Start think- help. They sell financing, training and mainte- ing of how you will effectively, consistently and nance contracts – and, for those customers who profitably deliver help while doing it better want a total solution, GE will install, staff and than your competitors. operate a complete medical imaging depart- Ask yourself, what can be done to help them ment on a revenue-sharing basis. to know about your store and the value it offers? So, what kind of help do your target custom- How can you help them to do what they’re try- ers need that is in any way related to what you ing to do? How can we help them learn what sell. What will you commit to do in order to they want or need to know and what can we do deliver that help better than your competitors? to help them to feel the way they want to feel? Trust me; you’ll sell more by helping more! HGO Think ‘WOW’. Think ‘amazing’. Think about what has never been done before. Think and feel A regular contributor to Home Goods Online, like a customer and have the creativity and the DONALD COOPER has been both a world-class man- courage to create compelling customer-owning ufacturer and an award-winning retailer. Now value and experiences at every touch-point. a Toronto-based business speaker and coach, In my days as a retailer of ladies fashions he helps business owners and managers rethink, we used this same three-step process to funda- refocus and re-energise their business to create mentally redefine the customer experience. We compelling customer value, clarity of purpose were the first in the world to put four hooks in and long-term profitability. For more information, a change room. We offered electric reclining or to subscribe to his free, monthly management massage chairs for husbands, a pirate ship play e-newsletter, go to www.donaldcooper.com

42 HGO merchandiser WIN THE DAY. START TONIGHT. Revolutionary TEMPUR® material responds to your body’s temperature, weight, and shape for truly personalized comfort and support. Tempur-Pedic helps you find your next level by allowing you to sleep deeply and wake up feeling powerful. DISCOVER YOUR POWER AT WWW.TEMPURPEDIC.CA HomeGoodsOnline.ca 43 PASSAGES

Calvin MacDonald, then president of Sears Canada, is seen here inspecting on of the upholstery displays in the Whitby Sears Home Store. A PUNCH T IS ONLY MATTER OF WEEKS BEFORE Sears Canada passes into history. The in the last of its network – which at one time GUT included over 100 department stores, 50 or so Sears Home stores, travel of- The demise of Sears Canada will Ifices, a service network as well as over 1,000 cat- change the face of retail in Canada, alogue pick-up locations across the country – will shutter for the last time. An ignoble end for especially in big ticket where it has a company which had a profound impact on this held a dominant position for decades. country’s economy and, in many ways, was the most influential retailer the industry has known. But it seems the industry is adapting In reviewing all the reportage the demise of and the consumer has moved on. Sears Canada has generated in recent weeks and months, one theme is reinforced time and BY MICHAEL J. KNELL time again: how preventable it was.

44 HGO merchandiser For much of the past three decades, Sears WHY IT WENT WRONG Canada has been one of the most powerful fur- There are many reasons why it all went so niture, mattress and major appliance retailers wrong, but most observers – both those who in the country. Big ticket home accounted for worked inside Sears Canada or were active 40% of annual revenue year in and year out. In suppliers to the company – assign most of the its last full year as a reporting public company, responsibility to an owner who was more inter- sales in those three categories (along with oth- ested in monetising its assets than investing in er hardlines such as barbeques, snow blowers the future. and lawn mowers) were in excess of $1 billion. Many also believe the decision to sell the At its peak, sales were probably double that. credit card – to J.P. Morgan Chase about a de- Even though sales had been on a downward cade ago – was the true beginning of the end. spiral for some time, it remained a powerhouse They note during the glory days, there were and a member of a club that had only three oth- more Sears Canada credit cards in circulation er members: Leon’s Furniture Limited, operator than there were households in the country. of Leon’s and The Brick, the largest furniture, Furthermore, 70% of its sales were on the card mattress and major appliance retailer in the – not just for big ticket items such as furniture country; IKEA Canada; and BMTC Group, the and major appliances but for everyday items Quebec-focused owner of Brault & Martineau, as well. For many Canadian households, it was EconoMax and Ameublements Tanguay. the most important tool in the shopping box. The real question at this point is: where will What’s more, at its prime approximately half of that $1 billion in business go and how long will all cards in circulation were active – that is, they it take to get there? Most industry executives had outstanding balances owing at the end of Home Goods Online spoke with agree there will the month. The card was also the primary driv- be a transition period, but it may not be as long er of its catalogue. (It should also be noted that The Sears Home store in as one would think. Most also agree that while it wasn’t until about ten years ago that Sears be- Whitby, Ontario opened to the exit of Sears Canada is sad and unfortunate, gan accepting credit cards other than its own.) a lot of fanfare in the fall of it is literally also an once-in-a-lifetime oppor- Many observers also note that during the 2013. Its format was to be tunity for ambitious independent retailers who heyday, the catalogue business was so so- adapted by all of the other are willing to invest for growth. phisticated, with a distribution network that } stores in the network.

HomeGoodsOnline.ca 45 Trusted Brands awards program, gave the 2017 award for most trusted major appliance retailer to Sears Canada.) More often than not, Sears Canada was the number one mattress retailer in the country as well. While the competition in this category was a little more intense – thanks to the efforts of The Brick and Sleep Country Canada – its market share rarely drifted below 15% although it was relegated to the number two spot in certain regions across the country. While they were definitely a major force in furniture retailing, they weren’t the runaway leader, at least in recent years. But throughout The major appliance reached into every corner of this country it the period from the 1970s to the 1990s, they department inside the was literally unmatched by anyone anywhere. were the style leaders. To a great extent, what Whitby Sears Home store. Several of those the writer spoke to said Sears they put on their floors – whether on the pages Canada was Amazon long before the Amazon of the catalogue, in a traditional department we know today. store or in one of their Sears Home stores – de- termined what the consumer was going to buy, SEARS AND BIG TICKET whether from them or one of their competitors. In addition to the card and the catalogue, the What’s interesting to note is that over the other major driver behind Sears Canada’s suc- past decade or so, the senior management of cess was big ticket. For the past three decades Sears Canada barely acknowledged the com- – in fact, until quite recently – it was the largest pany’s dominance in big ticket. Many outsid- major appliance retailer in the Canada, with a ers are critical of the failure to embrace big market share around the 25% market. This was ticket and use the categories to aid in the re- due in large part to the trust the Canadian con- building of the rest of the business. It was a sumer had in the Kenmore brand name. $1 billion business senior management effec- (As an aside, it should be noted that Brand- tively ignored. Spark International, the Toronto-based mar- Many observers pointed out that many of ket research firm and organiser of the Most Sears Canada’s merchandising leaders came

46 HGO merchandiser Many observers also note that during the heyday, the catalogue business was so sophisticated, with a distribution network that reached into every corner of this country it was literally unmatched by anyone anywhere. from the apparel and accessory side of the department store business and saw big ticket as logistical nightmare. Besides which, there were better gross margins in socks, shirts and underwear. But, they didn’t sell enough to right the ship. A PUNCH IN THE GUT The exit of Sears Canada will be a punch in the gut for many furniture, mattress and major appliance resources in Canada. A quick read through the published creditors’ list gives some insight into how Sears Canada’s demise will wipe out the profit margins of many of them – whether the supplier in question is an independent furniture manu- facturer or part of a multi-national mattress or appliance concern – not just for this year but for several years to come. Sleep Country Canada’s return to the pub- Under Calvin MacDonald’s For many of these resources, Sears Canada lic equity market two years was part of a strat- ‘Build the Core’ strategy, was one of their largest – if not their largest – egy to fuel the sleep specialist’s growth over mattresses were retail partner and it represented a significant the coming few years. Its short-term goal is to designated as a ‘hero’ percentage of its overall business. For many, reach a sales plateau of $600 million annually, category for Sears Canada it’s not a retail relationship that can be re- which will make it the dominant mattress mer- – one of the product placed. There simply isn’t another Sears Can- chant in the country. segments where the ada to be found in Canada or in North America Leon’s Furniture Limited – this country’s retailer still mattered to for that matter. And, it’s unlikely there will be largest full-line furniture retailer – took over the consumer. another retailer of similar size emerging in the the leases of eight former Sears Home stores foreseeable future. in early 2016, including four which enabled it It also wouldn’t be surprising if some small- to bring its Leon’s banner to British Columbia er manufacturers don’t recover from the fall of for first time in its 100-year history. Sears Canada. Meanwhile, IKEA Canada is in the opening There is consensus among observers that phases of an aggressive expansion program most Canadian consumers have already moved that is intended to double both its store count on and very few of them will be upset by the and annual revenue by 2025. If successful, that passing of Sears Canada. Many of its competi- will give the home furnishings giant some 24 tors have been, over the past couple of years full-size stores from coast-to-coast with yearly positioning themselves to take advantage of sales in the $3 billion range. the changes in the marketplace. The Canadian consumer has moved on. On the major appliance front, Home Depot Other retailers are moving to pick up the slack. Canada is rapidly claiming the pole position While they may not get everything they are in the white goods market and is aggressively owed, the majority of Sears Canada’s furniture, EDITOR’S NOTE: promoting itself as a category leader. At least mattress and major appliance suppliers will This report was the two strong regional players have entered into find and exploit new opportunities. The only culmination of discussions strategic partnerships with capital investment ones who will truly suffer by this will be the with a host of people from HGO firms to bolster their ability to meet the de- 16,000 or so people who used to work there. throughout the industry. mand. The best example is the Calgary-based To encourage greater TriWest Capital Partners, which made an equi- MICHAEL J. KNELL is the publisher and editor frankness, their names ty investment a few weeks ago in Coast Whole- of Home Goods Online and all of its platforms. and job position were not sale Appliances, the Vancouver-headquartered He has observed, researched and written about disclosed. Each of them has white goods specialist with stores throughout Canada’s furniture and mattress industry for my thanks for their insight Western Canada as well as two in the Greater the past three decades. He can be reached at and knowledge. Toronto Area. [email protected]

HomeGoodsOnline.ca 47 HmeGdsOnineca HGO THIS WEEK

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FURNITURE • BEDDING • APPLIANCES • CONSUMER ELECTRONICS • ACCESSORIES 48 HGO merchandiserLAMPS & LIGHTING • FLOOR COVERING • RETAIL SERVICES