Michael Knell’s HomeGoodsOnline.ca

HGOFALL 2016 merchandiserVolume Five, Issue 3

Donald Cooper on winning the talent wars Our Canadian Furniture Show report The omnichannel explained Tepperman’s is finding a green ROI WHAT’S HOT IN upholstery

CONTENTS

EDITOR’S LETTER LET’S MARKET REPORT 6GO BACK TO JANUARY 34 WHAT WAS HOT… Anyone who knows our editor well knows AND WHAT WAS NOT…AT THE he’s a big believer in what is now called CANADIAN FURNITURE SHOW the Canadian Furniture Show (CFS). It’s CFS has undergone a makeover over the absolutely essential to the long term last few years, shortening its once cum- health and prosperity of the Canadian bersome moniker, cutting a day from its furniture industry that we have a neutral run time and welcoming attendees during ground where we can come together as the summer rather than the winter. While an industry. But its performance over the it made in-roads in terms of style, wel- 28 past two years suggests we consider go- comed more beautifully curated displays ing back to the original dates. An opin- and some style-savvy celebrity speak- ion from Michael J. Knell ers this year, attending retailers say they want more Canadian product and even TECHNOLOGY THE more striking exhibits. Regular contribu- 8OMNICHANNEL EXPLAINED tor Ashley Newport authored our report. In a nutshell, being an omnichannel re- tailer means providing the customer PRODUCT STRATEGIES with every possible path to purchase. It 28WHAT’S HOT IN has to be provided seamlessly and while UPHOLSTERY? giving a superior shopping experience. While walking the floor at CFS recently, Looking at the success many have had it became apparent bright, bold pieces – adapting to its demands, it may not be especially those with sleek, soft frames as dauntless a task as it appears. Gary – were no longer novel or rare. As the James provides our explanation. world has got smaller and the consumer more fashion-savvy, manufacturers be- ON RETAIL WINNING gan designing fun pieces that are ver- 34 18 THE TALENT WARS satile, mobile, practical and most impor- The real battle in business today is the tantly stylish. Ashley Newport brings the battle for talent. If it is won, the battle for trends together. loyal customers and healthy profitability is a lot easier. Whether your business is INDUSTRY large or small, not having the right peo- 39CALENDAR & ple in every position carries a huge bot- ADVERTISERS’ INDEX tom-line cost in lost business, inefficien- cy, missed opportunity and frustration. Our resident retail guru, Donald Cooper, Michael Knell’s HomeGoodsOnline.ca shares his eight essential steps to attract, HGOFALL 2016 merchandiserVolume Five, Issue 3 lead and engage a top performing team. 24 RETAIL & THE Donald Cooper on winning the talent wars ENVIRONMENT Our Canadian Furniture Show report 24 The omnichannel explained TEPPERMAN’S – FINDING Tepperman’s is finding a green ROI WHAT’S HOT IN A GREEN ROI upholstery Being a good steward of the environment is not just the right thing to do. It can also ON OUR COVER: Blue is proving itself generate a real return on investment if to be the hot colour for upholstery done properly. It’s also something that fabric these days. A good example is the will get you accolades from your peers in Model 7646 from Décor-Rest. Part of the community as Andrew Tepperman, the S&C Collection, it features loose- president of the five-unit family owned back cushions with box seats, double- and operated Tepperman’s Furniture, stitching details and modern metal feet 8 recently discovered. A report from HGO and is described as “a true velvet, with editor Michael J. Knell. the softest hand imaginable.”

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stearnsandfoster.ca HomeGoodsOnline.ca 5 EDITOR’S LETTER

HGO merchandiser Let’s go back FALL 2016 • VOLUME FIVE, ISSUE 3 MICHAEL J. KNELL ISSN 2291-4765 www.HomeGoodsOnline.ca to January PUBLISHER & EDITOR Michael J. Knell Anyone who knows me well knows I’m a big believer in [email protected] what is now called the Canadian Furniture Show (CFS). It’s MARKETING DIRECTOR Corrie-Ann Knell absolutely essential to the long term health and prosperity [email protected] of the Canadian furniture industry – at all points of the MANAGING EDITOR supply chain from manufacturing and distribution to retail, Anthony E. Bengel both independent and corporate – that we have a neutral [email protected] ground where we can come together as an industry. CONTRIBUTORS Donald Cooper Gary James N EVENT SUCH AS CFS PROVIDES A PLACE WHERE INNOVATION can Ashley Newman be seen for the first time, where new manufacturers can make their de- ART DIRECTOR but, where new product designs can be unveiled for testing and where Samantha Edwards professionals from across the supply chain can meet, exchange ideas Sam I Am Creative Aand re-affirm long standing friendships. [email protected] Industry events, however, have not been immune to advances in technology, IT DIRECTOR stagnation in the economy or changes in demographics across our society. The Jayme Cousins result has been, for CFS, a smaller exhibitor base and reduced attendance, particu- In House Logic [email protected] larly from retail buyers and to some extent designers as well. CFS isn’t the only industry event to suffer so – well known furniture shows in High Point, Las Vegas, PUBLISHED BY Cologne, Paris and other places have also been afflicted with declines. Windsor Bay Communications Inc. I also firmly believe the CFS management team – lead by president and chief ex- P.O. Box 3023, 120 Ontario Street Brighton, Ontario K0K 1H0 ecutive officer Pierre Richard – have done a great job since taking over just prior to T: 613.475.4704 the 2014 Canadian Home Furnishings Market. Many of the changes made are truly F: 613.475.0829 laudable and deserve high marks indeed. Michael J. Knell, Managing Partner Even though the change in the dates from January to May for 2015 came from a PUBLISHERS OF good and honest place – the survey of attendees they conducted in the spring of 2014 HGO This Week – it might be time to consider going back to the show’s traditional January timeslot. Home Goods Online.ca

I say this for a number of reasons. One is I believe at least two greatly missed and © 2016 much demanded exhibitors will return to the International Centre with a January Windsor Bay Communications Inc. All rights reserved. show date for the simple reason that schedule marries nicely into their own product development and introduction cycle. The current May timeframe is simply too late Windsor Bay Communications does not accept for them. I also think others will follow. any responsibility or liability for any mistakes or misprints herein, regardless of whether such errors When held in January, the Canadian event was the first furniture market of the are the result of negligence, accident or any other New Year – the psychological importance of that cannot be under-emphasised. It cause whatsoever. Reproduction, in whole or in part, gives a unique marketing advance that cannot be replicated. of this magazine is strictly forbidden without the prior written permission of the publisher. Going back to January won’t solve all of the problems CFS faces, but regaining some of that lost exhibit space and the support of at least two vitally important resources is a good place to begin. AFFILIATE MEMBER

Michael J. Knell Publisher & Editor [email protected]

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THE OMNICHANNEL EXPLAINED In a nutshell, being an omnichannel retailer means you provide the customer with every possible path to purchase. You have to provide it seamlessly and while giving a superior shopping experience. Looking at the success many have had adapting to its demands, it may not be as dauntless a task as it appears. BY GARY JAMES

IRST THERE WERE STORES. and digital (online, or virtual) — at any Norby added while all omnichannel Then there was ordering by time without any gaps or roadblocks. If experiences will use multiple channels, phone or catalogue. Next consumers put a product in a shopping but not all multi-channel experiences came e-commerce. Until re- cart on their computer, they should be are omnichannel. “You can have amaz- Fcently, each of these sales channels was able to complete the sale in store with a ing mobile marketing, engaging social its own discrete path by which a con- salesperson. And conversely, if they’ve media campaigns and a well-designed sumer could conveniently buy a prod- seen something they like in a store but website, but if they don’t work together, uct. The paths generally all led to the want it in a different size or colour; they it’s not omnichannel.” She cited Star- same goal — a purchase — but each trav- should be able to place their order from bucks, which allows store visitors to eler tended to stay on a single path rath- home or another location 24/7 via a place orders and make payments directly er than jumping from one to another. smartphone, tablet or laptop. from their phones, as a good example of Now there’s omnichannel. A buzz- During a workshop on omnichannel the total integration that true omnichan- word in business magazines, retail con- revenue at the High Point Market this nel retailing delivers to the consumer. ferences and other settings where savvy past April, Jessica Norby, a business In the Canadian furniture commun- pundits peer into the future, omnichan- development executive at technology ity, examples of omnichannel retailing nel is the term used to describe how provider MicroD, defined omnichannel are rare. IKEA probably comes closest multiple channels of selling are now retailing this way: “A multichannel ap- while major chains such as Leon’s, The being merged into a single, completely proach to sales that seeks to provide the Brick and Brault & Martineau are mov- integrated consumer experience. customer with a seamless shopping ex- ing quickly to achieve this convergence The idea is consumers should be able perience whether the consumer is shop- of online and offline. The size of furni- to navigate all paths through which a ping online from a desktop or mobile ture — often big, heavy and expensive product might possibly be sold — both device, by telephone or in a bricks-and- to ship — has posed an obstacle for the physical (offline, or brick and mortar) mortar store.” development of e-commerce, and so has

8 HGO merchandiser its tactile, fashion-driven features. Most “IKEA Canada is committed to con- tion,” said Bevington. “In the stores, consumers still like to see and touch tinually finding new ways to enhance there are many digital touch points.” their furniture and, until virtual reality the shopping experience and provide They include digital room planners, headsets become commonplace, the convenience for its customers,” said find-it-kiosks, price scanners and IKEA best place to do that is still a store. Tanya Bevington, country communica- Family Kiosks, a resource area for loyal- But as younger consumers become tions manager for IKEA Canada. “Our ty program members. IKEA also has more active purchasers of furniture and goal is to be more accessible to all Can- iPads on its store floors for customer technology continues to evolve, its in- adians, and meet them whenever and use, and video content highlighting evitable e-commerce will play a more wherever they choose to interact with product features runs on nearby TVs. important role for all furniture retailers. us. We put the customer in the centre of IKEA’s shopping and catalogue app, Once that happens, omnichannel retail- all we do.” which can be easily accessed on any ing also will become more prevalent, One way IKEA is supporting Can- smart phone, is also a key tool. “(It) al- with more retailers seeking to provide adians’ evolving needs is through its lows users to navigate the store freely the ultimate in customer convenience. new network of pick-up and order point while being armed with all the info re- In this report, we take a look at what locations — smaller stores located in quired (to find what they need).” The progressive retailers such as IKEA and markets not served by its larger-format app enhances the in-store experience Meuble2Go are doing to integrate of- stores. IKEA launched its fifth location by providing features such as stock fline and online, and we also talk to in Windsor, Ontario in April, adding to checks, shopping lists, product info, a leading buying/marketing group a growing network that includes sites store maps and useful tips. It also has (Mega Group/BrandSource) and tech- in Quebec City as well as the Ontario a Place in Your Room feature that al- nology provider (Blueport Commerce) cities of London, St. Catharines, Whit- lows users to virtually place and view to see what the latest developments are by and Kitchener. The pick-up and or- hundreds of IKEA products in their in omnichannel retailing — and where der points offer consumers same-day own homes. things are heading. delivery of furniture directly to their “With our mobile and web enhance- homes for $89. ments, we see high adoption rates, so it AN ‘ON THE GO’ “People are excited that they can is a good indication that the customers EXPERIENCE shop IKEA in a new way and have been find the changes useful,” Bevington said. Recognizing technology is changing taking advantage of this new format,” In addition to these tech tools, IKEA consumer behavior and customers are said Bevington, adding IKEA is one of occasionally features a “fun campaign increasingly relying on digital devices the first furniture retailers in Canada to extension” in its stores, such as a to get the information they need, IKEA offer same-day delivery. “The main goal Twitter-activated vending machine, launched a series of initiatives over is to provide alternatives for our cus- she added. the past few years to create a seamless tomers. This is an option to shop IKEA “We are always exploring new ways IKEA on the Go experience. These in- closer to their home, but they can still to improve the customer experience, clude the development of a responsive choose to visit a store for the full IKEA particularly digitally. Our website is (mobile-friendly) web site, a new shop- experience. Customers are pleasantly a testament of that, as we often make ping and catalogue app, and free Wi- surprised when they visit these loca- improvements for our customers’ bene- Fi availability in all of the company’s tions to see the same great inspiration fit,” Bevington said. stores across Canada. they are used to seeing when visiting a Social media also plays an import- In addition, IKEA Canada is in the full-size store.” ant role in IKEA’s relationship with its process of rolling out a new app to help IKEA’s new pick-up and order points customers, enabling shoppers to inter- consumers decide which mattress is the “are a great example of extending the act with the company through new best fit for their needs. digital presence into a physical loca- channels. For example, customers can }

From left: An IKEA pick-up and order point store exterior; an in-store display promoting IKEA’s new pick-up and order service; an IKEA Planning Center, where consumers can use online tools to help design their dream rooms.

HomeGoodsOnline.ca 9 An in-store tablet display that invites shoppers to share their own special at-home video use to access the store’s entire assort- moments as part of a national ment online. IKEA ad campaign. “It’s a very relaxed, friendly environ- ment where customers can come in, have a cup of coffee and talk to our sales associates,” said Vincent Gagnon, owner. “We’ve learned that the online sales of furnishings works best if it’s supported by some sort of brick and mortar — whether it’s a boutique, a ser- vice center or a complete store. It gives customers an extra measure of confi- dence to know there’s a store staffed by people where they can go if they have questions.” Gagnon’s father Christian — the longtime owner and president of Lions Déco Meubles Électros in Montreal, now purchase products through IKEA’s feedback as IKEA continues to explore who closed the business in 2014 after Instagram feed or send requests to cus- the possible implications of VR technol- more than 30 years — founded Meu- tomer service through a dedicated Twit- ogy for the home. ble2Go in 2014 primarily as an inven- ter handle. “Virtual reality is developing quickly tory liquidation specialist. In June of The result of all these efforts can and in five to ten years it will be an inte- 2015, he sold the business to Vincent, be seen in IKEA’s metrics. “We have grated part of people’s lives,” said Jes- who relaunched the Meuble2Go store had very inspiring accomplishments per Brodin, managing director at IKEA and founded a new online operation in our last fiscal year,” Bevingon said. of Sweden. He said the technology with the same name. The new com- “Seventy-five million people visited our someday could be used “to enable cus- pany’s focus is quality, promotional to website, which is over 25% more visits tomers to try out a variety of home fur- mid-priced contemporary and transi- than the previous year. We also eclipsed nishings solutions before buying them.” tional Canadian-made furnishings for for the first time the $100 million mark sales online and in-store. for online sales.” BRICKS PLUS CLICKS Although there are three million E-commerce now accounts for about While IKEA has been steadily enhan- online shoppers a year and $6 billion 6% of IKEA Canada’s sales, which were cing its digital capabilities to deliver spent on e-commerce in Quebec, 60% $1.79 billion for its 2015 fiscal year which a more seamless shopping experience of those purchases are made from web ended last August. for in-store shoppers, Meuble2Go.com, sites outside Quebec, Vincent Gagnon IKEA Canada also has emerged as a Montreal-based furniture, bedding noted. “Canadians are actively buying one of the global home furnishing re- and accessories merchant, has opened a products from U.S. web sites despite tailer’s top markets when it comes to brick-and-mortar ‘service center’ to en- the extra complexities, delays and costs consumers using the mobile app for hance its core business of e-commerce. involved in shipping across the border,” stock checks. “It’s an important tool for An up-and-coming force in online he said. “With Meuble2Go, I wanted to us and for our customers,” Bevington furniture retailing, Meuble2Go opened approach the market from a new angle said. “Knowing that customers can trav- a 2,000-square-foot concept boutique and offer shoppers in eastern Canada} el a distance to come to our stores and in Montreal’s Mile End district in 2015 knowing how time-strapped Canadians — its first brick-and-mortar store — to are, it’s very important that we meet provide shoppers with a place where KEY STATS REGARDING their needs and expectations when they they could go to test mattresses and see CANADIAN E-COMMERCE arrive and that means having the prod- and touch other products in person. The Only 46% of Canadian businesses ucts they want in-stock and available, as store includes a sleep lab, called Dor- have a website shown on our website.” moLAB that helps customers choose Going forward, IKEA will continue the right mattress by assessing factors Only 41% of Canadian small to look for new ways technology can be such as age, weight, height and pres- businesses have a website used to enhance the customer experi- sure points. And the store also includes Only 19% of Canadian companies ence. In April, the company announced a display of its top-selling furniture, have websites optimized for mobile the release of a pilot virtual reality app, which is updated every month, as well the IKEA VR Experience, on Valve’s as a showcase of locally made furniture Only 13% of Canadian businesses game platform Steam. The test app, and accents. are selling online which features a virtual kitchen experi- In addition, the store has an Es- SOURCE: STATISTICS CANADA ence, is designed to solicit consumer presso bar with iPads customers can

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HomeGoodsOnline.ca ©2016 Tempur-Pedic Management Inc. All rights reserved. TM Trademark 2016 to Tempur-Pedic Inc. 11 an easier way to buy furniture online, Kingsdown (bedding). Smaller items inces so that it can establish its brand making the customer the focus of pur- are drop-shipped directly from the and offer consumers “a single, consist- chasing decisions and showcasing local manufacturers to the consumer or to ent experience with no variations in products.” Meuble2Go’s store; larger items are de- pricing or service,” said Gagnon. “We About 60% of Meuble2Go’s 2,500- livered through a white-glove service. want to make doing business simple for plus product assortment is made in Returns can be brought back to the our customers, and for our suppliers.” Quebec, according to Gagnon. To en- store for a full refund, and other mer- Down the road, the retailer plans to ex- courage customers to buy locally, the chandise can be returned via FedEx for a pand its presence with additional stores retailer offers free delivery to destina- restocking fee. “Our ‘buyer’s remorse’ re- in existing eastern markets where on- tions in Quebec, Ontario and the Mari- turns are much lower than we expected, line sales are active and then, eventu- time provinces. Key sources include only about 2% to 3%” said Gagnon. ally, to cities in the West. South Shore, Nexera, Monarch and Zuo Meuble2Go has opted to limit sales In May, Meuble2Go announced a new for furniture, Umbra (home décor) and initially to Quebec and Maritime prov- partnership with l’ACET, a business in- cubator that provides funding and other support to technology-based Canadian CONSUMERS STILL LOVE STORES companies. Gen Z and Millennials are big on physical stores — even more so than their older The Meuble2Go website features a counterparts — according to a new research study by iModerate, a Denver-based wide variety of furniture, mattresses consumer insights firm. and accessories, with photos, descrip- In the study of 844 consumers conducted this past February, 74% of all tions and reviews for each. A chat text respondents said it is important for brands to have a physical location rather than line is always available to answer cus- solely selling online. Eighty percent of Gen Zers and 82% of Millennial respondents tomers’ questions. said it is important, compared to 69% of Gen Xers and 65% of Baby Boomers. “The importance of a chat function One of the biggest lures for in-store shopping is the assurance that comes is underrated,” said Gagnon. “Our data from seeing, feeling and testing merchandise. This is especially true for first-time shows that more than 70% of our online buying experiences, when brand perceptions are made and loyalty is decided. customers get in touch with one of our “One of brick-and-mortar’s greatest advantages over other channels is that service agents at some point during there’s an opportunity for shoppers to interact with products, and that gives them their transaction. They need advice — the confidence they need to make a purchase,” said iModerate CMO Adam Rossow. it’s not like buying a T-shirt or book on iModerate found the in-store experience matters most to consumers when Amazon.” they’re buying high-priced items, buying specialty items, buying items they need To reach potential customers, Meu- help deciding on or understanding, when they’re in a hurry and at the holidays. ble2Go employs a mix of online and trad- The study also revealed that each generation is looking to get something itional channels, including the AdRoll different from their store visits: marketing platform. The centrepiece of GEN Z – Seeks the reassurance found through the sensorial. Likes stores its communication efforts is an e-news- where they can touch and test various sizes and styles. MILLENNIALS – Seek efficiency and quality. Many are launching careers and letter, currently distributed to more than have young families so they need to shop frequently, and favor big-box stores for 11,000 qualified subscribers. The com- their ability to quickly find everything they need in one place. pany also holds monthly events in its GEN X – Seeks an escape and discoveries. With bustling careers and older kids, store, such as do-it-yourself workshops their life is hectic and they appreciate stores that offer a getaway through calm hosted by local bloggers and designers music, coffee, etc. to create a sense of community. BABY BOOMERS – Seek comfort and space. Many are living on limited In addition, the retailer has an ac- incomes, so they like to touch products before buying them and balk at paying for tive presence on Twitter, Facebook, shipping. They also value low music, light scents and seating. Instagram, You Tube and Pinterest, regularly posting photos of new prod-

12 HGO merchandiser From left: Meuble2Go’s service center in Montreal displays an assortment of best-selling items; the retailer’s home page promotes free shipping to anywhere in eastern Canada; a typical Meuble2Go product landing page, as seen on a tablet computer; and a home office setup from Nexera’s Liber-T collection, featuring a combination of white melamine and walnut laminate. ucts and information about design. “We “These tools help us gain a much bet- who are making their first online pur- don’t try to sell anything through so- ter understanding of shopper behavior chases,” he said. “Often, they’re coming cial media,” said Gagnon. “Instead, our and improve the design of our site,” said into our store, seeing something they goal is to create an emotional connec- Gagnon. like on the website and asking our sales tion with enthusiasts so that they share According to Gagnon, studies show associates to help them place the order.” our content with their friends, which that there are three main factors that has much more impact and credibility. customers don’t like about the trad- EXTENDING THE BRAND Since we add about 50 new SKUs online itional furniture shopping experience: Recognising most independent furni- every month, we always have something delivery delays; the lack of customer ture and appliance retailers need help to talk about.” service and support both before and to successfully extend their brand into Recognising site visitors need to be after a sale; and pressure selling. Meu- the online arena; Mega Group offers a able to easily browse and locate prod- ble2go addresses the first two concerns variety of digital merchandising, mar- ucts of interest, Meuble2go employs a by offering consistent, four- to seven- keting and web development services variety of tools to track activity. A new day shipping and by having customer to member stores through its Brand- tool it recently adopted enables the service associates readily available Source program. company to watch the movement of a through text or phone. The third item — The hub of its web initiative is the na- visitor’s mouse on the website in real pressure selling — is kept to a minimum tional BrandSource.ca site, which con- time. Another tool creates “heat maps” by paying sales associates a salary rath- tains information on major brands and that aggregate user activity to illustrate er than commissions, Gagnon said. product categories carried by Brand- which areas of the website are the most “Meuble2go aims to be a refreshing Source members, details on current pro- frequently visited. alternative,” he said. “We want to put the motions and other engaging content, power back in the cus- such how-to tips, videos and blogs. tomers’ hands. Our goal “We have a complete content man- KEY STATS REGARDING is to make them happy, agement strategy, so that if the con- TODAY’S SHOPPERS so they’ll their friends sumer is just at the beginning of their about their experience. journey to purchase something and 88% of customers will check out reviews before Studies have shown need information about different types making a final decision on a purchase that word of mouth is of mattresses, that information is there,” 67% of the shopper’s journey is now done digitally the most powerful tool said Michael Vancura, executive vice for marketing.” president of retail operations for Mega 44% of online consumers say having questions Gagnon added while Group, the operators of BrandSource answered by a live person while in the middle of an he initially expected his Canada. “Then, as they get further online purchase is one of the most important features target customers would down their path and want to find out a website can offer be women ages 35 to 45, more about specific brands and con- 57% of the purchase decision is complete before a data shows that Meu- structions, that content also is available. customer even contacts a product source ble2Go is reaching a And finally, when they’re ready to buy, broader base of women we have a ‘call to action’ with special 11: the number of times a customer will “touch” a from 35 to 55. “And pricing and promotions to help them vendor before making a purchase we’re also attracting a make a decision.” SOURCE: MICROD INC., SEARCH ENGINE JOURNAL, LIVECHATINC.COM good number of men The national BrandSource site does and women over 60 not contain a shopping cart function }

HomeGoodsOnline.ca 13 since its main mission is to steer custom- in Canada than in the U.S. and Europe, for them rather than diving straight into ers to local stores. “Consumers are most said Vancura. “And true omnichannel the deep end.” interested in where they can find a prod- retailing — where someone does some Step one of e-commerce is having uct locally, so our easy-to-use store loca- research online and walks in the store, a shopping cart function that enables tor tool points them in the right direction and then that thread of activity is picked consumers to easily find and select to make a purchase,” Vancura said. up, the transaction continues and the products they want to buy, Vancura BrandSource also powers individual customer completes a purchase on their said. The second step is installing a se- websites for about 100 member com- phone as they walk out — is very hard cure online payment system. The next panies. The complexity of sites varies, to find.” step after that is integrating point-of- but even the most basic site contains For furniture and, to a lesser extent, sale inventory with what’s available on- a wealth of information about prod- even appliances, the pressure to move line, so all that information is updated ucts, suppliers, pricing and promotions. online is much less intense than it is for automatically. In addition, a robust BrandSource also provides templates most other consumer products, said Van- digital marketing program needs to be for retailers’ Facebook posts and han- cura. “Consumers still want to be able to put in place to generate and measure dles the management of pay-for-click see and touch their furniture before they traffic and sales. and search engine optimization cam- buy,” he said. “And that’s also mostly true After that, there’s a long list of other paigns. A handful of the sites also have for appliances — they want to examine elements — and decisions — that go e-commerce functionality. various features and look inside.” into making the selling process more BrandSource has been providing For now, e-commerce remains a and more seamless, Vancura said. For digital marketing services to its mem- very small portion of overall sales of example: “Do I want to show inventory bers for 10 years. This summer, it will furniture and mattresses, according to levels to the public, so when they or- release version 6 of its website platform. Vancura. “But everyone is starting to der, they know exactly how long they’ll The update will be fully responsive, pro- improve their game. There’s no ques- have to wait? How do I handle custom viding mobile users easier access to a tion that e-commerce will become more orders? Do I put all of my product cat- full range of site content. important to furniture as time goes on.” egories online, or just some categories? “Showcasing your store and product To keep up with the changing mar- What are my business rules for e-com- online in an easy-to-navigate, engaging ket, even small to medium-sized retail- merce — do I ship anywhere or just to and optimised website is a must in to- ers are steadily adding more features to a limited geographic area? What’s my day’s competitive retail world,” Vancura their sites with a goal toward eventually online price versus in-store price? How said. “Through BrandSource, we make it selling online. “Many of our members do I handle returns? There are many easy for Mega Group members to have are moving toward offering e-com- complex steps that go into creating any a dynamic online presence that attracts merce, but it’s a process of evolution successful e-commerce program.” more customers and sales to their stores.” rather than a revolution,” said Vancura. In BrandSource’s experience, certain To date, studies have shown that e- “Retailers are testing the online waters categories of furniture have proven to commerce has been slower to develop a little at a time to see what works best be better suited to e-commerce than }

A WEB GAME CHANGER On April 1, Retailer Web Services released WebFronts Level consumers now do the bulk of their research on products they 4, billed as the first industry-specific marketing automation plan to buy long before they walk in a store.” software. Designed exclusively for independent furniture, As a result, retailers need to know who their customer is and mattress and appliance retailers, WebFront Level 4 contains what their preferences are earlier in the buying cycle than ever proprietary tools that enable stores to identify consumers before. “With WebFronts 4, they have a powerful tool that enables while they’re researching online, track their interactions and them to easily reach out to the right prospect at the right time then automatically re-market to these prospects based on with relevant, compelling offers that result in more sales,” she purchase intent. The program integrates with RWS’ existing says. While much of the activity can be completely automated, the WebFronts system. program also provides a rich source of sales leads for RSAs to tap “Up until now, this type of technology has been too as time allows. expensive and too technical for all but the largest national According to Gilbert, 281 of RWS’ retailer customers retailers to implement,” says Jennie Gilbert, chief operating across North America have already subscribed to WebFronts officer of the Scottsdale, Arizona-based technology provider. Level 4. Prior to release, the program was beta tested with a “It’s a huge game-changer to make this accessible to the group of 200 retailers from different durable goods industries independent channel. They know have a two-way mirror that (appliances, furniture and mattresses) and buying groups, allows them to better understand exactly who is visiting their including a number of Tempur Sealy retailers. site and what they’re looking for.” The new program includes progressive profiling and session The unprecedented rise of the digital consumer has analytics; pre-made promotions; automated Facebook posts; changed the game for independent retailers, Gilbert says. email re-marketing tools; and end-to-end security with the “The ‘purchase journey’ is completely different now, since latest privacy and compliance features.

14 HGO merchandiser SLEEP IS LIFE’S GREATEST PLEASURE.

SLEEP IS LIFE’S GREATEST PLEASURE.

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For more info please contact: Richard landriault, director of Sales - Magniflex Canada - [email protected] - tel 905.481.0940 HomeGoodsOnline.ca 15 others. Topping the list are smaller, tures barstools from Ashley and Amisco. said Randy Goldstein, executive vice flat-packed products such as barstools, Twenty models are available for viewing president of e-commerce for Blueport desks and juvenile beds. “These prod- in a small store display but, if a consum- Commerce. “But what many may be sur- ucts are easy to ship, and they’re avail- er wants to see more, a larger offering prised to find is that the opposite is also able from suppliers that already have e- of 100 barstools also can be accessed true: While consumers are becoming in- commerce programs in place that easily through a nearby touchscreen. Current- creasingly comfortable completing big interface with retailers’ systems.” ly, 25 BrandSource retailers participate ticket purchases online, in many cases To help retailers gain more experi- in the program, and the response has they are still visiting retailers’ physical ence with e-commerce, BrandSource been “amazing,” Vancura said. stores to touch and feel the product.” has begun testing a new “endless aisle” “A lot of furniture and appliance As a result, he said, “It’s more import- program with a few key suppliers. In stores, especially in secondary markets, ant than ever for retailers to provide an “endless aisle” program, consumers have very limited space, so they can’t necessary tools to enable consumers to have the ability to order products from possibly display the entire range of transition seamlessly between physical a larger catalog of products than is usu- products that people might be looking locations and digital assets.” ally shown in store for delivery directly for,” Vancura said. “Through their web- In today’s world, the consumer is go- to their home. sites, they have the ability to show con- ing to interact with a variety of sales An “endless aisle” promotion that sumers a much larger assortment. We platforms before making a purchasing BrandSource launched this spring fea- expect to run similar programs in other decision, particularly a big ticket item categories such as youth furniture, stor- like furniture, where the path to pur- age and bookcases as time goes on.” chase is relatively long and complex ADAPTING TO In many cases, these are categories and filled with different touch points, SHOPPING MOBILE furniture stores have exited because said Goldstein. “They’re interacting As mobile usage becomes ubiquitous, of space constraints, he added. “And with retailers’ websites, mobile apps, the path to purchase for products of now they have a chance to get back social networks and physical stores. In all types is becoming less defined. into them.” this environment, the right technology Today’s shoppers are always As part of its mission to drive traffic becomes an enabler to bring all those connected, well-informed and often and sales for members, the Mega Group worlds together.” quick to convert both digitally and in- and BrandSource teams are constantly A leading provider of e-commerce store. The traditional shopping phases looking for other new ways to leverage technology and services, Blueport oper- still exist, but once smartphones technology — both in-store and on- ates the furniture.com website, and are introduced, behavior shifts, as line. “We strive to support our retailers also provides e-commerce platforms explored in a new eMarketer report, through the national BrandSource.ca for Leon’s, The Brick, Rooms To Go and The Changing Path to Purchase: What It site and keep them up to date with the other leading retailers in Canada and Means to Add Mobile to the Mix. latest tools they need to stay competi- the United States. Blueport Commerce Broadly speaking, today’s shoppers tive,” said Vancura. “At the same time, offers a variety of tools to help brick- crave consistency. When Internet retailers need to be digitally active in and-mortar retailers more fully engage users in North America were polled their own markets, establishing a strong with consumers, including Store Sync, a by the research firms Magnetic and social media presence and keeping patent-pending, cloud-based technology Retail TouchPoints in April 2015, 59% their websites and social media chan- that links a consumer’s online and in- of respondents cited consistency nels fresh with new, engaging content.” store shopping experience so that it can between digital channels and in-store In addition to content, success in the be accessed at any time on any device. as the most important part of a retail digital arena also requires a reallocation “The fact that consumers still want experience, while consistency across of marketing dollars, Vancura added. to visit stores to see products is a huge devices was vital to 54%. When retailers “Traditional media alone won’t cut it advantage for traditional retailers,” said in the same study were asked about any more. Retailers need to be stead- Goldstein. “They need to capitalise on information provided to customers ily investing in content marketing, SEO that by having tools in place that enable along the shopping journey, only 36% optimization, Facebook ads and other them to meet the consumer at any point claimed to be offering a seamless platforms to get their messages in front along their shopping journey.” experience across mobile and desktop. of consumers. They don’t necessarily According to Forrester Research, fur- Overall, mobile is having a striking need to spend more money on adver- niture purchased online in the U.S. is effect on shopping behavior in all tising, but they do need to reallocate a growing at a rate of 14% annually and settings, and it is no longer the sole significant percentage of their dollars will reach 7.6% of total category sales in province of out-and-about smartphone to digital channels.” 2018. While Canada’s growth may not users or those buying inexpensive products or services in short windows be quite as robust, data shows that Can- of time. What consumers want is GETTING IN ‘SYNC’ adian e-commerce in general is rapidly changing and retailers have to keep For big ticket purchases, it’s no secret catching up to U.S. levels — and furni- up, concludes eMarketer. that the majority of today’s shoppers ture is keeping pace. start their product research online, In its newly published Annual Retail

16 HGO merchandiser Trade survey for 2014, Statistics Canada sumers’ expectations have been reset “Instead, if they contribute to the sale reported furniture and home furnish- accordingly.” by providing the customer with infor- ings stores had combined e-commerce Retailers’ ability to thrive in this new mation or help at any point — either by sales of $295.9 million – up 19.4% over environment involves new ways of look- talking to them in store, on the phone, or the $247.7 million sold in 2013 and al- ing of both sales and marketing. “You through a chat function or social media most three times greater than the $98.3 need to be thinking about how you mar- — they need to be compensated so that million sold in 2012 – the first year for ket in a digital world. What are third- the web is seen as an ally rather than a which these figures are available. party review sites saying about you? competitor.” E-commerce accounted for 1.8% of How do you rank from an SEO perspec- With Blueport’s Store Sync tool, the $16.8 billion in sales generated by tive? How are you using email and paid Goldstein added, sales associates have furniture and home furnishings stores search to reach out to perspective cus- the ability to access shoppers’ online in 2014 – up from the 1.2% of the $16.2 tomers? While the e-commerce piece browsing and cart histories via tablet billion in sales the year before. is part of this equation, thinking about computers. “And with this information, Still, when it comes to omnichannel digital retail more holistically is going associates can create a personalised commerce, the industry on both sides to become more important as custom- experience for the customer by more of the border still has a long way to go. ers shift to these new channels exclu- effectively answering their questions, In its 2015 benchmarking study, Blue- sively for product discovery.” offering additional insights and guiding port Commerce found that only 69% of According to Goldstein, there is a them toward an eventual purchase.” North America’s leading furniture re- core list of “must-have” features furni- Tablets can be a powerful tool for tailers (those over $50 million in annual ture retailers need to establish an effect- sales associates, Goldstein said, since sales) are e-commerce enabled. This ive e-commerce presence. They include they also provide instant access to the percentage pales in comparison to most responsive design, localised shopping, retailer’s entire inventory and an easy other retailer categories, in which 100% in-store inventory lookup, consistency way to show consumers the wide range of top retailers have been e-commerce between online and in-store pricing and of options that’s available beyond the enabled for quite some time, the com- promotions, and real-time delivery and store floor. “We hear from Leon’s and pany said. And e-commerce adoption pickup dates. The Brick sales associates that they are by smaller retailers is much lower due If a retailer has a store in more than constantly taking visitors through their to the capital, time and manpower re- one market, its web platform also must respective web sites to show them the quired to develop and manage an online be capable of geographically tailoring complete range of appliances and elec- sales infrastructure. data so it reflects exactly what’s avail- tronics they sell because they don’t have “Some Canadian furniture retailers able in each individual customer’s lo- enough space on the floor to show every are well on their way to omnichannel cale. The Blueport e-commerce platform single model,” said Goldstein. commerce while others have done little has technology that automatically de- If a customer leaves a store without or nothing in this area,” said Goldstein. tects a user’s geography so information making a purchase, Store Sync also pro- “But it’s become clear that inaction is relating to product, pricing, availability vides sales associates with new options no longer an option — furniture retail- and delivery schedules is all localised. for sharing additional information ers of all sizes need to begin to develop In addition, retailers need to have a and photos with consumers via email. these new capabilities online if they’re system in place that compensates com- “In the past, most ‘be-backs’ never re- going to compete in tomorrow’s market- missioned sales associates for their ef- turned to the store. Now, through the place. Nearly every other sector of retail forts. “It can be a big point of friction if use of technology, sales associates can has met this new standard and though salespeople find that they’re losing sales keep the lines of communication open furniture retailers may not like it, con- to the store’s web site,” Goldstein said. and help prospects find the products they need.” HGO

TEN STEPS TO E-COMMERCE SUCCESS A regular contributor to Home Goods 1. Develop a unique brand around your product or service Online, GARY JAMES is a freelance writer 2. Build an easy-to-use and effective website based in Chapel Hill, North Carolina. 3. Optimize your site for Google Search He spent over 20 years with Furniture/ 4. Set up a merchant services account and payment gateway Today, serving as case goods editor and 5. Provide quality customer service and a solid return policy special projects editor, directing the edi- torial content of Leather Today, Bedding 6. Offer some kind of free shipping, permanently Today, Global Textiles Today and other 7. Implement a product review system supplements and sections. He contrib- 8. Hire a dedicated product specialist for online content uted our examination of e-commerce – 9. Create a community using social media The Sleep Giant Awakens – to the Spring 10. Invest in digital advertising, such as Google AdWords or Facebook Ads 2015 edition of the Merchandiser. SOURCE: WEB4RETAIL.COM

HomeGoodsOnline.ca 17 ON RETAIL

Winning the TALENT WAR Here are Donald Cooper’s eight essential steps to attract, lead and engage a top performing team! Something every retailer needs to be successful.

HE REAL BATTLE IN BUSINESS them to WOW our customers, achieve world- today is the battle for talent. If we class operating efficiency and grow our bot- win that one, the battle for loyal tom line. customers and healthy profit- Everyone on our team must be clear about ability is a lot easier. Whether our customer promise, our direction and our your business is large or small, not having the values. They must be committed to specific Tright people in every position carries a huge outcomes, be held accountable for their per- bottom-line cost in lost business, inefficiency, formance and rewarded for their success. Non- BY DONALD missed opportunity and frustration. performance must be dealt with promptly and COOPER The talent crunch is real and will last for firmly. Lack of accountability and failure to decades. In less than 10 years’ time, we’ll see deal with non-performance are two of the big- many businesses fail because they’re unable to gest problems in many businesses today. So, we find the talent they need. must all manage smarter. We become what we hire. You can’t build These eight steps to attracting, leading and an extraordinary business by hiring ordinary engaging a top-performing team deliver a people. So we need to attract and hire extra- clear and effective process that will make you a ordinary talent – not just ‘bodies’. Then, we world-class recruiter, a world-class boss – and a must train, inspire and empower and engage world-class business.

18 HGO merchandiser So, here they are: the eight essential steps to attracting, its people? What kind of values, benefits and culture would leading and engaging a top-performing team. it create? How would it ‘feel’ to work there?

On a second piece of paper, write down STEP 1 Second 20 minutes: all the things you need to get off your behind and do to Create ‘clarity’ about six things. become the kind of business that you just described. Then As a business owner, leader or manager, your first job is determine specifically what will be done, by whom, by when ‘clarity’. You hire people to help you do something and to to make it happen. become something so, if you’re not clear about six specific things, you won’t know who you need to hire and how you STEP 3 need to train and develop them. So, as a business owner, leader and manager, you must be clear about these six Document the specific skills, knowledge, things: qualities and experience required to do each job wonderfully…now and in the future. 1. Who your target customers are and the compelling Finding great staff is like looking for a needle in a haystack. value and experiences you commit to deliver. What But it’s much easier to find the needle if you know exactly your ‘brand promise’ and ‘brand personality’ are. what a needle looks like. 2. How you will communicate and promote your value Create a ‘job description’ for each position in your story in a crowded and cynical marketplace. There’s no business. Writing job descriptions is a pain but you never point being the best if you’re also the best kept secret. really understand a job until you go through this, just like 3. The extraordinary future that you commit to create. you never know what shape your car is in until you get out What, where, how big and how different your business a bucket of soapy water and wash your own car. You need to will be in three to five years (your Vision). get ‘up close and personal’ with every job in your business 4. How you’ll get there. Specifically, year by year, what before you can effectively hire anyone to do it. For help in action will you commit to take (your Mission). writing job descriptions, check out The Job Description 5. The extraordinary bottom line you commit to Handbook by Margaret Mader-Clark. generate...and, On a scale of one to ten, use the tool below to determine 6. How you commit to behave along the way (your the importance of each of the ‘Seven Key Success Factors’ culture, values, ethics and standards). for each job or position in your business.

Simply put, you need to know who you are and what 1. Talent. you commit to become. Most businesses lack this kind of 2. Knowledge, skills and experience. clarity – and it’s killing them. Are you clear about these 3. Positive attitude and personality. six things in your business? 4. Judgment and maturity. 5. Ambition. 6. Physical requirements. STEP 2 7. Fit with our culture, values & standards. Take ‘ownership’ of the problem. Sadly, many business owners and managers have convinced BONUS THOUGHT: Hire for the future – not just for today. themselves that, “You just can’t get good people anymore!” Think about how will each job and the entire business change They’re in denial and they’ve given up! The truth is the in the next five years. What different skills, knowledge and best people have to work for somebody. The problem is you experience will be required? have to deserve them. So, take ownership of the problem and become the kind of business that the best people want STEP 4 to work for. Here’s a simple two-step process to make that happen that will take two pieces of paper and 40 minutes of Where do we find people with the skills, your time. knowledge, qualities and experience we need? The people you need are one of two places. They’re already First 20 minutes: Sit down with a few of your best people working for you or they’re someplace else. You may have and describe on one piece of paper the kind of business talented people on your team right now that you’ve over- in your industry, in your market, that the very best people looked. They may be in the ‘wrong’ job and performing badly. would want to work for. How would that business recruit, pay, They may have been overlooked for some other reason. Age train, develop, mentor, thank, reward, honour and celebrate or gender biases may be clouding your view of human }

HomeGoodsOnline.ca 19 Meet Serta’s most advanced sleep system EVER

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Triple-Action Technology that cradles, supports and cools HomeGoodsOnline.ca 21 © 2016 Serta Canada Inc. A division of SSH Bedding Canada Co. All rights reserved. potential. Identify your stars STEP 5 and those with potential. Coach them, challenge them, reward Get the interview and and encourage them. screening process right. On the other hand, you likely Ask the right questions! have some non-performers with Screening out the people who are no potential that you’re not deal- not a good fit for the job or for ing with. They’re dragging you your culture, while exciting great down, driving good people nuts people about the opportunity is a and hurting your bottom line. challenging task. Nobody much Deal with them. likes interviewing job candidates. Sit down and talk with each Have a few of your top My suggestion is to create a non-performer. Tell them specif- performers interview script of 10 to 15 questions to find ically what your concerns are and out if candidates have the talent, ask if something is preventing candidates. If your experience, attitudes and values them from doing the job as it best people give them you need. needs to be done or from hon- After asking specific ques- ouring the values and culture of a ‘thumbs down’, tions to determine if they have the business. Get clear commit- the required job-specific skills and ments as to how they’re going to pay attention. knowledge, ask them a few gen- improve and by when. Document eral questions like: the commitments and follow up. Acknowledge progress and deal with failure to perform. 1. What did you like and not like about your previous When looking outside for great people, here are ten tips jobs? Why did you leave? to think about: 2. What would you like to get out of this job? 3. What would you like to get out of your career? What 1. Where are the people you need working or living right would you like to be doing in three years? now? How can you reach out to them? 5. What would make this a great working experience for 2. Get your existing staff to help. Good people know you? good people. Offer a financial incentive for finding good employees who stay for a specific length of time. Have a few of your top performers interview candidates. If 3. What about former employees? Often good employees your best people give them a ‘thumbs down’, pay attention. who leave for some reason are even better when they Have candidates actually perform some of the tasks that return. the job requires to see if they can do it. We’ve all hired people 4. Internet job posting. who are great talkers, but who can’t do the job. Screen them 5. Industry associations, newsletters or magazines. out now! 6. Ethnic or cultural associations with connections to Ask for and check references. Yes, it takes time to do people with specific backgrounds or skill sets. this, but it can save you a lot of grief. Tell the reference the 7. Build special relationships with trade schools or specific job that the candidate is applying for. Then, you can colleges. Speak at their career days. Serve on their ask a number of specific questions about the candidate or advisory boards. Sponsor competitions or annual you can simply ask, “Would you hire this person back if they ‘Awards for Excellence’ at those schools. reapplied to your company?” If they answer no, ask them 8. Are there job functions that could be outsourced? what their concerns would be. 9. Traditional job placement bureaus. 10. Think outside the box. BONUS TIP: Never hire anyone after just one interview. That’s like asking someone to marry you on the first date. You don’t Here are a few examples of ‘thinking outside the box’. A know them well enough yet. Winnipeg sheet metal manufacturer has been successful in giving street people an opportunity. Facing a chronic shortage STEP 6 of bike mechanics, a group of bike shops in Toronto partnered with an organisation committed to helping at-risk youth. Now The right introduction and ongoing training each year, together, they train 70 street kids to be qualified and communication. bike mechanics. Dumar Industries, a company that makes Get new people off to a good and welcoming start. The week parts for specialized armored vehicles hires military veterans. before a new person starts an announcement should go What might ‘outside the box’ look like for your business? to everyone in the department saying who the new arrival is, what they’ll be doing and a bit about their business

22 HGO merchandiser background and who they are as a person. Invite everyone Another way to improve accountability and urgency is to welcome the newcomer. to stop talking about ‘goals, targets, aims and objectives’ in Have their workplace ready for them on day one. your business. These are all weak and wishy-washy words Of course, every business should have a New Employee that leave way too much wiggle room to not perform. Replace Welcome Booklet that describes the company’s history, all of them with one powerful word – commitments. There’s awards won, special achievements, statement of purpose, a big difference between a goal and a commitment. When statement of values, list of rules, commitment to physical we change our language, we change our culture. So, create a and psychological safety and anything else a newbie needs to culture of commitment. know to hit the ground running. Smart companies also assign a wonderful team member to be a ‘guide’ to answer questions STEP 8 and help the new person navigate their new environment. I believe strongly every new employee should receive a Acknowledge, reward and celebrate success tour of the entire business so they see the bigger picture and Recognise and reward top contributors, encourage and can better understand where their job fits into that picture – develop those with potential and invite poor performers to and, therefore, why their job is important. ‘move on’. Create a tailored training program for each new employee based on what they already know and what they need to 1. Pay more and expect more. The best people never know. Then, make sure training and development is an work for the least amount of money. ongoing part of every job. You can’t grow your business 2. Create a culture of celebration. Celebrate birthdays, without growing your people. special occasions and achievements. Send a card to Communication is a two-way street. Sit with each each person on your team on the anniversary of their employee at least twice a year to ask them how they think employment. Thank them for one more year of sharing the job is going, where they’d like to be in two to three years the passion, vision and commitment of the business. and what additional training and coaching they need to Most people remember the day they started working make that happen. Ask them what they want their life to look for you…and they hate it when you don’t. Honour like in three years and how you can help them achieve that. individuals – as well as the team – with titles, business Create quarterly ‘Idea Fests’ in each area of the business cards, awards, dinners. Look for reasons to celebrate. where for a few hours each team member is responsible for Create a culture that combines commitment, urgency delivering at least one idea to serve customers better, to be and joy. more safe, more efficient or better communicators. Rewards 3. A ‘thank you’ every day. According to surveys, one should be given for ideas that work. of the main reasons people stop trying is that they believe they don’t make a difference. If you got ‘thanked’ every day, how could you ever believe that STEP 7 you don’t make a difference? If you have people who Empowerment, urgency and accountability! never do anything worth ‘thanking’ them for, pay Stop micro-managing your people. If you have to micro- attention…they’re a problem. Figure out how to ‘fix’ manage them, it’s a sure sign either they’re the wrong people them, or invite them to move on. or you’re an ineffective manager. You need to find great people, create clear expectations then train, coach, reward IN CONCLUSION: So, there you have it. Eight clear steps to and encourage them. Create a culture of joy, respect and ac- creating a top-performing team. Which part of the process countability – and then empower them to do their job. do you need to work on first? Then, what will be next and And how do you create a culture of urgency and next after that? Remember, the real battle in business today accountability? Work with your team to agree on clear and is the battle to attract, engage and retain talent. If you win specific outcomes. Make sure they know why their role is that one, the battle for loyal customers and a healthy bottom important and then measure performance. Be open to and line is a lot easier. HGO respect the ideas of others. Remember that your way isn’t the only way. A regular contributor to Home Goods Online, DONALD Businesses don’t die from a single shot to the head. They COOPER has been both a world-class manufacturer and die slowly but surely from a 1,000 uncompleted tasks. So, an award-winning retailer. Now a Toronto-based business when you assign a task always ask, “By when can we agree speaker and coach, he helps business owners and managers that this will be completed?” Document the commitment rethink, refocus and re-energize their business to create and always follow up. Reschedule dates when necessary but compelling customer value, clarity of purpose and long- never create ‘orphans’. An ‘orphan’ is anything that you’ve term profitability. For more information, or to subscribe asked someone to do that doesn’t have a specific completion to his free, monthly management e-newsletter, go to www. date attached to it. donaldcooper.com

HomeGoodsOnline.ca 23 BEING GREEN Andrew Tepperman, the third generation leader of the family owned and operated Being a good steward of Tepperman’s Furniture the environment is not is a firm believer in the benefits of being a good just the right thing to do. environmental steward. It can also generate a real return on investment if done properly. It’s also something that will get you accolades from your peers in the community as Andrew Tepperman discovered. BY MICHAEL J. KNELL

Tepperman’s – green

ERMIT THE FROG ONCE SANG: It’s not easy colade is part of the chamber’s London Business Achieve- being green. When he wrote that line for the ments Awards program, which is one of the largest and work’s most famous Muppet, Jim Hensen prob- most prestigious in the country. ably didn’t realise there would be an enterpris- In his address to the 1,200 or so members of the busi- ing young furniture retailer from Windsor, ness elite from across southwestern Ontario who attend Ontario who figured out that being green would not only the awards gala, Tepperman noted environmental sustain- Kenhance his family company’s reputation but would make ability is a key element of the company’s ten-year vision money doing so. Not only that, his efforts would be award and central to its continuing success. winning as well. “Reducing our energy consumption, minimizing our use Earlier this year, the London Chamber of Commerce of landfills and producing less garbage on the whole will presented its Environmental Leadership Award to Tepper- help us achieve our environmental sustainability goals,” he man’s Furniture, the now five-unit regional chain lead by said. “Our teams have worked hard to create company recy- third generation president Andrew Tepperman. The ac- cling programs, retrofit LED lighting into our showrooms

24 HGO merchandiser Tepperman’s London store was the winner of the environmental leadership award from the London Chamber of Commerce earlier this year. The store, which opened in late 2008, received the first Don Smith Commercial Building Award for environmental sensitivity, design and construction two years later.

and warehouses and installing foam emulsifiers. We know It’s also about measuring the Andrew Tepperman that stewardship of environmental sustainability has no end.” results, which is why the London (at left) and the team In an interview with Home Goods Online, Tepperman store was honoured by the Cham- from the Tepperman’s noted being stewards of the environment is something of a ber of Commerce this year. store in London celebrate family tradition. “I think this all started with Grandpa Nate Last year, Tepperman’s divert- being presented with who founded our business in 1925 going door-to-door on ed 30 tons of plastic, 520 tons of the award for award for foot. He had a zero carbon footprint!” he chortled. “Actu- cardboard and 312,000 cubic feet environmental leader- ally, he couldn’t afford a car, so I’ll use that story for now.” of Styrofoam from local land- ship by the London While the award was given to the London store – which fills in London. It’s also about Chamber of Commerce opened in late 2008 and received the first Don Smith Com- being open about its efforts. In and its London Business mercial Building Award for environmental sensitivity, de- a partnership with Waste Solu- Achievements Awards sign and construction two years later – the environmental tions Canada, Tepperman’s has program earlier this year. practises used there are also found in the company’s other launched a web site available units in Windsor, Chatham, Sarnia and now, Kitchener. where the public can review accurate tracking of the waste Tepperman revealed that within the company’s ten-year disposed of by the facility, which houses both an 85,000 2025 Vision are six Guiding Principles with one being en- square foot store and a 100,000 square foot distribution vironmental leadership. “Each department, whether you’re centre. (teppermans.wastetracking.com). in I.T., warehousing, or sales will incorporate these six Across the company, Tepperman said they specifically principles into their annual strategic plans,” he explained. look at three areas: reducing energy consumption, mini- “So, these environmental initiatives are company-wide. We mising use of landfills and producing less garbage. “Each do have specific tests in various locations like electric car area is measurable,” he said. “Whether going from 250,000 charging stations in Kitchener and solar we’re planning to pieces of paper to 125,000 or retrofitting our 50w lights test in London. with 8 watt lights and seeing energy reduction drop by 65% “Each quarter when I do my town halls in each store, we – everything regarding environmentalism is quantifiable.” talk about what we done with environmental sustainability This also means each area can produce a return on in- during the last period and new initiatives going forward,” vestment (ROI) as well. “Some items, like a foam emulsi- he continued. “For Tepperman’s, it’s not just about helping fier may have a 1.5 year ROI while others like LED parking the environment, it’s about being a leader in environmental lights may be 2.5 years,” Tepperman pointed out. “But the sustainability.” length of time is not as important as whether it fits into our Each of the five stores also has their own robust internal strategy of reduction and conservation. We’ve also part- recycling program. “It’s everyone’s responsibility to find nered with our recycling company whereby we can see – ways of reducing waste and new ideas to recycle,” Tepper- online – what percentage of everything we sent them was man said. “For example, one store asked why we were print- actually recycled. To date, we’re at 76% and our plan is to ing three copies of every order. It turned out we didn’t need get to 90%.” to file one copy simply by storing the digital version. That The third generation full-line furniture retailer has plans alone saved hundreds of thousands of pieces of paper. Sus- to further solidify its environmental stewardship. It is cur- tainability is a feel-good thing but it also can save money.” rently looking to participate in the solar FIT program }

HomeGoodsOnline.ca 25 Last year, Tepperman’s diverted 30 tons of plastic, 520 tons of cardboard and 312,000 cubic feet of Styrofoam from local landfills in London.

age the digital platforms like our web site and social me- dia. Long term I would like to have a live feed or at least a more timely update on our sustainability results posted with greater frequency.” A long-time member of the North American Home Fur- nishings Association – an industry association of furniture stores based in California – Tepperman was featured last fall in an issue of the Retailer Now magazine because of a ritual practised most Tuesdays that is known as Styrofoam Night. It’s not promoted to customers but it does generate a small profit. According to the report, a few team members gather the boxes and containers piled high with all the Andrew Tepperman through the Ontario Ministry of polystyrene – commonly called Styrofoam – collected that (left) and Tepperman’s Energy – which will see solar pan- week and put it into a machine that grinds up the material, team member Allan els installed on the roof of at least condensing a truckload of waste into management three- White show off the one store. It installed electric car foot bricks. The condensed material, previously used to company’s polystyrene charging stations at its recently pack all of the furniture and appliances delivered to cus- densifier, which can opened fifth store in Kitchener and tomers every day, is then sold to a company that keeps the compress 50 cubic feet is also seeking out partnerships environmentally indestructible polystyrene out of the land- of what is commonly with stakeholders in higher educa- fill by recycling it. called Styrofoam down tion to help expand their leadership Andrew Tepperman learned of the machine while tour- to one, which is then in this year. ing Houston’s Gallery Furniture a few years ago. He or- sold to a distributor The company has partnered with dered one immediately upon returning home within three who re-purposes it. the master’s degree program in en- months Tepperman’s already small environmental foot- vironmental sustainability at the print was getting smaller. University of Western Ontario and taken on one of its stu- “One of my better investments if I can say so myself,” he dents on a four-month co-op program. Though based in the told Retailer Now. The company now makes about $2,000 a London store, the focus will be on company-wide opportu- month recycling the polystyrene that once went to landfills. nities. “For example, we may ask them to develop an inno- He firmly maintains being a good environment steward vative mattress recycling program, including how it will be is a vital part of being a successful retailer. executed and the ROI it would generate,” Tepperman said. “We believe that we can run a successful business and “Or we may look at how they can improve how we commu- still do the right thing,” he said. “Bottom-line is that if we nicate our environmental initiatives to the general public.” can source an item that has less negative environmental In fact, Tepperman believes communicating their ef- impact or produces less waste at a reasonable cost, we will. forts will be great marketing for the company, appealing When the entire company has this in mind, the momentum to consumers who hold similar values about environmental is incredible and it becomes a sustainable practice. It’s not protection. forced. What I’ve noticed is that many of our younger em- “I met with the local Junior Achievement a while ago ployees and potential new recruits gravitate to this. It’s and during a tour of the store, they were amazed at how we important.” recycle foam using an emulsification machine,” he recalled. Tepperman’s has also been nominated for the Sustain- “Their first reaction was ‘wow, we didn’t know you did this ability Award given by the Ontario Business Achievement and this is the type of thing that would make us want to do Awards program. HGO business with you’. “We already communicate this on our front entrance re- MICHAEL J. KNELL is the publisher and editor of Home Goods cycle bins by stating how much cardboard, foam and plas- Online and all of its platforms. He has observed, researched tic we prevented from going into the landfills last year, “ and written about Canada’s furniture and mattress industry he continued, “Going forward, our plan is to better lever- for the past three decades.

26 HGO merchandiser BUNGALOW 5

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What’s hot in UPHOLSTERY? While walking the floor at CFS recently, it became apparent bright, bold pieces – especially those with sleek, soft frames – were no longer novel or rare. As the world has got smaller and the consumer more fashion-savvy, manufacturers began designing fun pieces that are versatile, mobile, practical and most importantly stylish.

BY ASHLEY T THIS YEAR’S CANADIAN FURNITURE WHAT’S HOT IN COLOUR? NEWPORT Show, renowned designer and tele- “Definitely blue,” says Angelo ‘J.R.’ Marzilli, vision personality Steven Sabados executive vice-president of Décor-Rest took the stage to walk attendees Furniture, the Woodbridge, Ontario-based through a fun and informative lesson on stationary upholstery specialist. “We’re seeing “what’s in, what’s out and what’s hot.” Although all shades of blues in all sorts of patterns, like you might think a well-known designer would paisley and chenille. I think every colour makes be not quite a step ahead, but certainly a step a circle and it’s time for blue to come back.” aside of typical market trends, his style advice At CFS, the blue resurgence was readily had, surprisingly, already been heeded by apparent and the renaissance makes sense. manufacturers who know glam and gloss as Blue is a bolder neutral. It’s more exciting than well as natural tones and pastels are the trends a beige or brown (and can straddle the line to watch for. between true blue and grey-blue) but still easy It’s no secret the world of furniture has to work around when furnishing a room. Unlike changed. These days, the average consumer a bright red sofa or pink velvet ottoman, it’s has been emboldened by literally scores of non-threatening (and significantly less bold). fun and funky design shows on TV, endless Pinterest boards, Instagram posts and Internet access to Asian and European pieces they may have never discovered five or ten years ago. While this has certainly presented challenges for upholstery manufacturers, it also created opportunities. Today, they provide retailers – and, by extension, their customers – with bold, fun and functional pieces created to satisfy everyone’s inner designer. More fortunately still, a lot of manufacturers are more than up to date on what’s hot and are delivering the goods.

28 HGO merchandiser Other manufacturers have noticed a shift likely to produce stormy-tinged upholstery. Above: Inspired by mid- towards brighter and less orthodox shades in “We introduced 20 new grey shades at CFS,” century Scandinavian general. Sunderji says. design, the Oslo sofa from “There’s an awakening in the Canadian Other experts also agree that, right now, it’s G. Romano is striking in spirit,” says Karina Sunderji, vice-president of all about blue. its simplicity as its clean the Calgary-based Dynasty Furniture. “People “It’s still blue and it’s been that way for about lines, organic shapes want to be bolder and get away from brown five years,” says Diana Sisto, creative director and natural hard wood and grey. We’re seeing a surge in blue, such as for the family owned Brentwood Classics, base make it ideal for a in teals and navies and light shades. Greys are the custom upholstery specialist based in retro themed interior. It morphing into blues.” the Toronto suburb of Vaughan. “In home is available in a variety The transition from grey to blue is furnishings, trends last longer than in fashion. of patterns and colours interesting, especially since Sabados boldly We’re seeing all different shades of blue, such and features foam-filled declared that greys – long reigning as the as deep navies and cloud and powdery blues.” cushions on its seat and trendy new neutrals – are on their way out. Others are noticing a thirst for pastels. back. Although he was careful to say the colour will “Pastel colours are in as well as blues,” says Left: With 21 available continue to sell and manufacturers are still Joel Dupras, design and art director for Huppé. pieces, the Zane from “Even pink, or a pink that’s almost beige.” The Stylus Furniture is a Victoriaville, Quebec headquartered case contemporary modular goods producer recently launched its first- sectional finished with ever upholstery collection in collaboration a sleek metal leg. It can with Italdivani, the Montreal soft goods maker be configured to fit any with whom it recently entered into a strategic space or as conventional alliance. sofa, loveseat and chair If the colour can work with a luxurious fabric, and is offered in over 500 it’s even better. fabrics – including this “We’re going to be showing a deep royal navy hue of blue. blue on a crush velvet sofa in Las Vegas,” says Marzilli. “It’s the 7046 S&C line in hot navy. }

HomeGoodsOnline.ca 29 Meanwhile, manufacturers who haven’t traditionally made product in the category are now embracing motion upholstery and incorporating it into their offerings. “We’re working on motion sofas and sectionals,” says Dupras. “We’ll release one collection in October and another one in April. The back and feet will come out and so will the headrest, but when it’s closed, it’ll look like a regular sofa. It’ll be on legs, but it’ll be as comfortable as a big motion sofa.” The focus on size is important, as the condo market has dramatically changed how furniture is designed. Most producers still make generously sized pieces for the rural and suburban markets, but almost every one of them has had to work smaller-scale pieces into their lines – but without losing any of the comfort. “In the Canadian and U.S. markets there are condos everywhere,” says Dupras. “Smaller spaces need smaller furniture, so that trend will last for a long time. There also isn’t as much The Baz chair from Brentwood Classics is big house construction in the suburbs. We do covered here in a fabric called Bae Pebble. contemporary, so that style fits us. We do a sectional where you can reverse the seats and that makes it easy to move because you can Above: Hues of blue, such Our glamour has never dissipated and [demand] change the configuration. People like a softer as the Henry New Aqua has never gone down. People love that look.” look, or a shape with a little more tailoring. fabric seen here on the (S&C is Steven & Chris, as in Steve Sabados.) People aren’t going for a rounder sofa, but a new Moulins chair from more rounded cushion.” Brentwood Classics, seem WHAT ABOUT STYLE? That said, there is still demand for bigger to be the current trend “Styling is quite sleek,” says Dynasty’s and more luxurious pieces. leaders on furniture floors Sunderji. “Transitional contemporary is big “People like really clean-looking large across the country. and oversized and overstuffed is gone. People pieces,” says Diana Sisto of Brentwood. “We’re Top: The L706 is part of are more cognizant of style because they watch getting a lot of inquiries about large scale. Superstyle Furniture’s HGTV and read style guides. We’re seeing There’s still demand for Euro-style, deep seating LeatherBrand collection. cleaner and thinner track arms or arms with a furniture. Restoration Hardware has had a lot to Seen here is the two- flare and also lower-profile seating and that has do with that. [What they have] is stunning and piece sectional which a lot to do with the growth of the condo market.” very clean. Whatever they do, they do it right.” boasts classic styling, Another interesting trend is the demand for There has also been a shift towards opulence. feather-blend seating and more configuration styles. “People want the glam looks,” says Décor- a top grain Italian hide “People are looking for modular ability,” Rest’s Marzilli. “I think the import market killed with ‘Savage’ finish. Other she continues. “They might want to transition the basic looks. Every big box store would come pieces are also offered. from a condo to a house and they want a frame out with an import lookalike at a good price that can go left or right or be ‘U’ shaped. They point, but it got boring. People love a touch of want to build their own configuration, so that’s wood, nail studs and curved sofas and curved a program that’s more desired by retailers. furniture.” We’re also seeing armless sofas and armless Also, mixed metals are still in. chairs and floating ottomans. We’re seeing “Sofas are more and more on legs and off configuration as another element, just like style the floor,” says Huppé’s Dupras. “We’re seeing and fabric.” more and more metal legs and wood legs in }

30 HGO merchandiser HomeGoodsOnline.ca 31 Huppé’s first forey black with a matte finish. It brings a light feel to ANYTHING NEW IN FABRIC? into upholstery the sofa. It feels more aerial, like it isn’t taking Although the return of velvets is interesting – included the up as much space even if it isn’t any smaller. It’s although not surprising if people are indeed Charles collection less bulky.” hungry for more luxurious pieces – the (seen here) Golds are also selling well – and inspiring technological improvements in strain-resistant combines a fabric people to play with mixed looks. fabrics are even more so. covered sofa with “People like clean, modern pieces that have “We’re using Crypton Home Performance a chair in leather. sleek and shiny metal legs,” says Sisto. “Gold Fabric,” says Sisto. “It’s been made available Its solid birch legs and rose gold is still very popular. Brass is through U.S. mills and the price is great and the are available in any popular too. You can mix metals though and look is amazing. Coffee or liquid will run right of the company’s that was never done before. There are no rules off it and now you can get Crypton in velvet, range of finishes. anymore and you don’t have to re-do everything chenille and linen looks. Unlike Sombrella, it [when you get a new piece]. You can be more isn’t made with only one kind of fabric. It can be eclectic and unique.” solution died with fabric from our mills and the selection is huge.” Crypton fabrics ensure upholstery pieces – TRENDS AT A GLANCE: even fancy white ones – hold their lustre for WHAT’S HOT … AND WHAT’S NOT as long as possible. They’re also important to anyone who doesn’t want to sacrifice beauty for the sake of practicality. Sisto points out that it’s rare for modern family homes to have a formal living room. Since the ultra-fancy, permanently closed off ‘for decoration only’ room is fast becoming a thing of the past, it’s important for manufacturers to do what’s possible to provide stain and liquid-resistant WHAT’S HOT: WHAT’S HOT: WHAT’S HOT: fabrics that allow consumers to live while Blues and pastels. Sleeker, smaller Matte metals, such maintaining high-quality furniture. WHAT’S NOT: pieces – especially as metal legs with a “We’re launching [our Crypton pieces] with Greys, although a lot those with metal legs. brushed nickel look. Hudson’s Bay this year,” Sisto says. “There was of manufacturers, WHAT’S NOT: WHAT’S NOT: a push back in the past because stores would such as Décor-Rest Huge pieces Same-same looks sell warranties and scotch guard solutions, and Dynasty, are still (although Brentwood that don’t stand so that was a challenge. But this is stain and producing them. still sees demand out. There’s a thirst odor resistant and really easy to clean. Stores for more generously- for more elegant, can still sell dry warranties, but the furniture sized sofas). standout pieces. is better protected. We have 20 skews of this

32 HGO merchandiser markets] usually has to be modified to suit Above: The Evora Canadian tastes. But knowing colour trends is collection from Huppè is huge and that tends to go with fashion. There’s a small-scale sectional been a huge step forward for the Canadian with reversible cushions consumer in terms of style.” and matte black metal Other manufacturers see trends in apparel legs as well as contrast make their way into upholstery in more piping around the arms abstract, but still appealing ways. and the back. “I would say that I see men’s apparel, a Left: Blue is proving blazer with a pocket square or lapel detail, in itself to be the hot colour sofas,” says Décor-Rest’s Marzilli. “There are for upholstery fabric some similarities because fashion is all about these days. The Model colour and trending. We love showing sofas 7646 from Décor-Rest with an accent chair that has a completely is a good example. Part different fabric.” of the S&C Collection, fabric. It can be applied to any frame. We have Other companies look everywhere to discern it features loose-back four patterns in five colours each and we’re what’s happening (or could happen) in the cushions with box seats, hoping to expand that in future markets.” market. double-stitching details “We look at fashion, design and architecture,” and modern metal WHERE DO MANUFACTURERS says Huppé’s Dupras. “We also look at feet and is described GO FOR INSPIRATION? magazines and blogs. We do a lot of shows in as “a true velvet, When it comes to design inspiration, it’s good Europe and I’ll be in Paris in September. At with the softest hand to look beyond the furniture world. Although those shows, you see accessories and fabric imaginable.” people don’t tend to replace their sofas as and you can get inspiration from a lot of often as they do their shirts, trends in the things. We also look at what was done in the fashion world – such as mixing metal colours past and find application for our contemporary in jewellery – tend to make their way into case style. Old furniture if often well-made and you goods and upholstery. can learn about functionality and style and see When manufacturers are hunting for hot how to adapt.” HGO new looks, they tend to look at both furniture and the runway. A regular contributor to HGO Merchandiser, “We tend to see what’s going on ‘on the ASHLEY NEWPORT is a Toronto-based freelance runway’,” says Karina Sunderji of Dynasty. “We journalist who writes primarily for trade and look at what’s happening in home and garden business publications. Her specialties include and we look at what’s trending in the European food, hospitality and emerging social/business markets. [What we find in the European trends.

HomeGoodsOnline.ca 33 MARKET REPORT

What was hot…and what was not…at the CANADIAN FURNITURE SHOW

CFS has undergone a makeover over the last HE 44TH ANNUAL EDITION OF the Canadian Furniture Show few years, shortening its once cumbersome (CFS) hit Toronto’s International moniker, cutting a day from its run time and Centre during one of balmiest weekends Ontario has seen so far, welcoming attendees during the summer welcoming well over 200 exhibitors and treat- Ting attendees to some high-profile celebrity rather than the winter. While it made in-roads appearances. Always a work in progress, the in terms of style, welcomed more beautifully show set itself apart from last year’s event by curated displays and some style-savvy celebrity slicing its runtime to a more compact three- day schedule (running from May 28 to 30) and speakers this year, attending retailers say they doing away with the controversial – and much want more Canadian product and even more maligned, in some circles – Consumer Day. This country’s only national furniture in- striking exhibits. BY ASHLEY NEWPORT dustry trade event generated a little buzz by welcoming acclaimed Canadian designer and television personality Steven Sabados to the Hall 5 stage to talk about the latest trends in home décor. The talk notably marked Sabados’ first public appearance since the tragic death of his business and romantic partner, Chris Hyndman, shortly after last year’s market. In 2015, Sabados and Hyndman – who de- signed pieces for the popular S&C brand and starred in the popular CBC-TV design show Steven & Chris — spoke at the show’s inaugu- ral (and last) Consumer Day about what was hot (and what was not) in the furniture and décor world. About two months after last year’s June show, people were shocked to discover that Hyndman, one part of the bubbly and gregari- ous design duo, had been found without vital As always, this year’s Canadian Retailers of the Year for Eastern signs in a laneway near the Toronto home he Furniture Show began with the Canada; Angelo Gallo, president of shared with Sabados. After almost a year of si- presentation of this year’s CHFA Awards Statum Designs, the 2016 Lifetime lence, Sabados returned to public life to chat at a dinner held by the Canadian Home Achievement Award honouree; and, with the CBC about his partner’s untimely Furnishings Alliance. Seen here after Daniel Johannesson and Michael passing and some upcoming design projects the festivities are (from left to right): Gustavsson of Alberta’s Konto and to appear at the market to give a attendees Stephane Perrault and JC Perrault of Furniture/Sofa Land, 2016 Retailer a little light-hearted lesson on what’s trending. the Montreal-based JC Perreault, 2016 of the Year for Western Canada. Sabados’ talk, moderated by the buoyant

34 HGO merchandiser Handstone, an Ontario-based solid wood furniture maker won the gold in the under 2,500 square foot booth category during this year’s ‘best display’ award competition held by the International Centre during this year’s Canadian Furniture Show.

and engaging Cheryl Grant, kicked the show brown, green and blue) and hot off on a high note. Appearing on stage in good black (statement pieces that give spirits, a bespectacled Sabados looked styl- rooms a remarkably sophisticat- ish and energetic with a vibrant orange shirt, ed and bold pop). dark blazer and jeans. His well-organised Sabados said the market seems shop talk walked retailers and manufacturers to be moving away from primitive through a little lesson on “what’s in, what’s surfaces and finishes, which was out and what’s hot.” interesting and, perhaps, unex- pected. After all, reclaimed wood So, what is hot? and rougher-looking pieces were Surprisingly, grey is not. Or at least it’s cool- still all the rage last year. ing down. That said Grant and Sabados were “Poured concrete and rough careful not to advise against producing or re- surfaces [are out],” said Sabados. tailing the once wildly popular neutral. “We want something cleaner and easier.” Cathy Loblaw (second “We have a lot of grey, so don’t judge if you That said, he and Grant cautioned retail- from right), president go to Décor-Rest,” Sabados remarked. “But ers against panicking. “It can still sell, it’s just and CEO of Ronald grey has had its heyday. Grey and yellow was fading out,” Grant added. McDonald House a great combo and it was a great neutral, but it In terms of surfaces that work, Sabados Charities of Canada, is a little muddy and depressing and we want and Grant advised attendees to think about is seen here accepting to be happier in our interiors. Grey has been multi-faceted (such as lacquered walls that a donation of $10,000 an important distressed look and it will sell look woven) and artisan surfaces (such as an from Carl Mastrovito for now, so don’t panic.” exaggerated herring bone floor). The pair also and Bruno Pittarelli of What’s also out? All white interiors, simply made the bold proclamation that mid-century Tempur Sealy Canada because they’re not practical for anyone with modern is losing its lustre. at this year’s Canadian children, pets or a habit of spilling red wine. “It is a modern, fresh and youthful interior Furniture Show. Looking As for what’s in, Sabados and Grant sang the and the problem is that it can be taken too on (at right) is Michael praises of neutral pastels that aren’t overly literally,” said Grant. “Millennials liked it be- Vancura of Mega Group/ sweet, bold glamor (pieces that evoke images cause it was unfamiliar to them. We still have BrandSource Canada. of Marrakesh and spices and high fashion), some pieces in our [S&C] line because bits organic primaries (shades of nature, such as and pieces are still interesting in a space.” }

HomeGoodsOnline.ca 35 Faux vintage looks are also, Sabados be- As for whether the show is offering the fash- lieves, on the chopping block. That said there ion-forward pieces that Sabados and Grant will always be room for real vintage looks. talked about, Arcoite says the show hasn’t “Vintage is still hot and will continue,” he evolved too much over the last five or so years. said. “The combo of new and old is still hot. If “It’s about the same. I think Hall 5 looks like it’s too manipulated, it doesn’t look as good. I it has better quality [exhibits]. I find there are just feel like I want to clean it.” just acres of low quality product here and lots Strangely enough, Sabados said that a re- of low quality sofas and tons of mattresses. turn to glitz and glam is in the air. “Glamor Not a lot of effort into building nice booths. I used to be lots of crystals and chandeliers, but see a lot of black curtains and people throw- this is modern glam and it’s got a lot of warm ing their furniture down on the carpet. It’s not metals and gold. It’s high gloss and we haven’t impressive. I don’t know if this is a service to had glam in focus for a long time. The baby the buyers,” he told HGO. “They [Sabados] boomers want this glam interior in their con- talk about curating and maybe [the organis- dos when they downsize. We’re moving away ers] could curate this show a little better. May- from rustic and vintage,” he enthused. be they could do a smaller show with higher quality product. That’s my opinion.” How are retailers feeling? Other buyers were also a little under- Every year, retail buyers walk the halls look- whelmed. ing for pieces to round out their assortments. “I would like to see more Ontario and Que- While the show typically provides a healthy bec manufacturers in the show,” says Paul D. degree of choice, many retailers wished aloud Schreiter, owner of Schreiter’s, a single-unit for broader representation of Canadian man- 120-year-old family furniture store located in ufacturers and more sophisticated booths cu- Kitchener, Ontario. “I don’t know what else to rated with style in mind. say about it. The large influence of bedding is “My experience has been positive,” says Paul not really why I’m here, I’m here for soft goods Arcoite, the owner Urban Settler, a single-unit and case goods and lighting, so I would like to Paul D. Schreiter (right), operation based in Fernie, British Columbia. see more furniture than rugs and mattresses.” owner of Schreiter’s, a “We have some specific requirements. We’re “We’re a contemporary house, which is a single-unit 120-year-old looking for Canadian-made case goods. We’re small percentage of the products that are family furniture store looking for new trends and styles. I like the Ruff here. They are represented fairly well by a few located in Kitchener, Sawn handcrafted furniture collection. I like the firms such as G Romano and Stylus. We’re not Ontario wants to fact that the surfaces are finished. I agreed with interested in offshore upholstery. [The show] see more Canadian [Sabados’] that the unfinished surfaces are fad- hasn’t improved over the years,” he continued, furniture manufacturers ing out. We also manufacture furniture out of adding, “I think they should lower the rent so exhibit at the Canadian reclaimed wood and we’ve always had a finished they can get more manufacturers in here. It’s Furniture Show. surface, so it has the look and the character, but costly for the smaller manufacturers to get in it’s a practical finished surface.” here. The location is fine and they’ve made a huge amount of building improvements in the way it’s set up for food and bathrooms, it’s a good show that way.” Other retailers are relatively happy with the show and some of its standout booths. “It’s good,” says Glen Saunders, owner of Flying Fish, a furniture, home décor and kitch- en store located in Nanaimo, British Columbia. “It’s good to see what’s new and different in Canada. It’s good to check out Canadian manu- facturers, especially with the U.S. dollar right now. We always try to buy Canadian, so it’s good to come to this show to see what’s new.” As for memorable exhibitors, Flying Fish buyers were also quite taken with Ruff Sawn. “For me, it’s Ruff Sawn,” says Penny Richards, Flying Fish furniture manager. “It’s a Canadi- an company and the owner is just doing a hell of a good job creating a good product and his business is growing.”

36 HGO merchandiser Like other buyers, Saunders wishes there The jury for this year’s were more Canadian manufacturers. ‘best display’ award “The main stage is good and the presen- presented a special tations [at the show] are excellent. It would citation to Atelier be great if we could have representation for St-Jean, a small Quebec some of the other manufacturers,” she said, producer for the show’s noting, “There are a lot of manufacturers in best chair (seen here) other provinces that aren’t represented here. which was featured We’d like to see more manufacturers from BC, in the Empreinte Saskatchewan and Manitoba. It’ll help us be Québécoise display. able to buy Canadian.” What do exhibitors think retailers want? Well it’s clear a sizeable portion of buyers want more selection – particularly when it comes to Canadian-made case goods and upholstery – Furniture, the Toronto-based resource which exhibitors have to work with what they have to has a permanent showroom in the Internation- attract the myriad buyers who come through al Centre’s SOFA (Source of Furniture & Acces- the doors. In order to garner those coveted or- sories) annex, were happy with the show and ders, they have to know which way the winds how it’s evolved to serve buyers better. are blowing in terms of looks and trends. “It’s been good because of the changes to Some are, it seems, on the same page as the show,” said company president Michael Sabados, showing that there is indeed cohe- Rewucki. “Last year it was a change to the sum- siveness among manufacturers, retailers and mer and we had the public come in and some designers. people didn’t want it and others were excited “Trend is a big word, and what people are about it. They didn’t do that this year and per- looking for are trends, there isn’t just one sonally I think any time you can connect with trend,” says Douglas Karpman, vice president customers on any level, it’s good. But this year Michael Rewucki, of sales for Renwil, the Montreal-based deco- with the three-day, compacted show, you can president of Chairtech rative accessories specialist. focus more.” Modern Furniture, seen “We identify the five major customer cat- Rewucki also noted said the relatively low here in his company’s egories in the market and they are new tra- value of the Canadian dollar has been forcing permanent showroom ditional, authentic eclectic, modern glamour, many throughout the industry, particularly at the International Scandinavian casual and bohemian chic,” he retail buyers, to think outside the box. Centre, said the said. “New traditional is for people like my “I think the Canadian dollar is an issue, relatively low value of son who are watching Game of Thrones, it has but I think because of that, we have a lot of the Canadian dollar medieval elements. The next one is authen- retailers who are trying to find something dif- was forcing many retail tic eclectic and we call it the Downton Abbey ferent. Not necessarily in terms of design, but buyers to think outside story. Modern glamor is a good niche for the in terms of type of product. They might be of the box when adding Canadian market, that’s where you’re adding looking for something that’s ergonomically to their assortments at the glitz. Scandinavian casual is all the Nordic correct or a high low table for design, but they this year’s CFS. colours, like the pastels and other colours that want something less expensive that will fit the used to be at IKEA and Target. Bohemian chic need of their customer,” he said. is the bright bold colours and that trend start- “About a year and a half ago when the dol- ed with FIFA and the Olympics, but now that lar really dropped, we’re starting to see peo- colour palette is much more crisp and solid. ple deal with that by buying better products,” “When independents are in the store, we he continued, adding, “We’re seeing a trend show them how we can be interior designers toward smaller products that are functional, of the store,” Karpman continued. “We show so tables with extensions and products that them how to put everything together. The sell- do everything in a small work space. There’s ing trend is putting everything together in your still a mix of woods and metals. Brass, bronze store to get value added sales. People want the and rose gold is still somewhat popular, but it mirror and rug and lamp and upholstery all to looks like we’re going away from shiny met- come together. It’s about making it easier for als to more matte metals, so maybe a brushed the retailer and consumer. You all want to talk stainless steel or a nickel finish. People are the same type of design language.” taking a bolder step in colours and types of Other exhibitors, such as Chairtech Modern fabrics.” }

HomeGoodsOnline.ca 37 What are manufacturers noticing? more products with concrete and metal. Other manufacturers, such as Huppé – who There’s less wood and uniformity. I like G always operate out of a well-designed display Romano and Trica – they’re people I really re- space – are happy with the show, but would spect. There are a lot of beautiful booths. I’d also like to see more domestic product. like to see more Canadian manufacturers, and “The people are looking more for the so- hopefully a bigger crowd as well.” fas and mixed materials,” says Jean-François Other manufacturers such as Décor-Rest, Nolin, president and business development the Toronto-based upholstery specialist (and director of the Victoriaville, Quebec-based producer of the S&C label of sofas and chairs) Huppe. “Mixed wood and more fabrics and are also happy with the show and the good en- ergy it tends to evoke in most guests. Interest- ingly enough, Christina Marzilli, chief operat- Attendance and activity up this year, ing officer of the family owned and operated producer noted that, judging by the exhibits CFS OFFICIALS REPORT and customer demand, there does seem to be a ttendance was up compared to 2015 and the feedback received shift towards glamor (at least for some buyers). to date has been very positive, the organisers of the 44th edition “The market sounds positive,” she says. “Be- of the Canadian Furniture Show reported recently. ing an outside showroom, the attendance was “This year, thousands of attendees continued to feel the effects of good and everybody was very positive. We the wave of renewal that swept through the event in 2015, with more found that navy is popular and people are going than 65 new exhibitors on the show floor. The visitors’ experience was to that and also the teal colours. I find it’s either further enhanced by the addition of special activities and spaces that very soft and comfortable and casual and natu- enlivened the 500,000 square feet of show floor set up by some 233 ral, or they like the glitz and the glamour.” exhibitors,” Pierre Richard, president and chief executive officer of both CFS and the Quebec Furniture Manufacturers Association, said CFS isn’t going anywhere in a statement. It’s no secret CFS is often overshadowed by Among the new initiatives marking the 2016 edition were two well- the larger markets in the United States. But attended presentations, one by media personality and designer of the despite rumours and often expressed con- S&C brand, Steven Sabados, and the other by David Chilton, best- cerns that the market is dying or going to die selling author of The Wealthy Barber. at some point in the not-too-distant future, Plus, two unique design spaces were added: the FABX2016 booth regular attendees aren’t anxious to see it go dedicated to window coverings, wallpaper and fabrics, which also anywhere. This is especially true for those included a special event on Monday, May 30. who recognise this event attracts a buying Innovative design was featured through L’Empreinte québécoise, crowd who doesn’t typically attend Las Vegas which displayed avant-garde products co-created by designers from or High Point. It also helps the organisers no- seven companies. tice what’s trending in the market. Visitors also enjoyed several relaxation areas including a spa, a “Retailers are looking to see what’s hot and Spanish pub, and a business lounge. what’s innovative. Most of our retailers don’t “We are pleased with this 44th edition. We had more visitors and go to High Point and Las Vegas, about 85% of buyers than last year, the atmosphere on the floor was great, and our retailers only come to CFS and they want reports from most exhibitors we talked to were very positive!” Richard to see what kind of deals they can get,” says enthused, although exact attendance figures were not published. Pierre Richard, president and chief executive He also noted there was a significant increase in trade visitors from officer of both CFS and the Quebec Furniture the United States. Manufacturers Association, which has oper- “In short, having gone from a four-day to a three-day event seems ated the event since it was founded. to have intensified traffic in the halls and generated good benefits to “What seems to be selling well is the clean- all,” Richard said, adding, “In the next few weeks, phone and on-line er lines and the darker woods and multi-ma- surveys will be conducted with over 10,000 current and past show terial combos of wood, glass and metal. Eco- participants. friendly furniture is interesting, especially to “Our objective is to continue to foster the show’s evolution by the younger generation. There are tastes for listening to the needs and desires of participants, and by adapting the everybody,” he notes. HGO best practices of the trade show world to our reality. That is why we constantly take the pulse of the industry. Our team will continue to A regular contributor to HGO Merchandiser, expand the efforts needed to ensure the success and sustainability of the ASHLEY NEWPORT is a Toronto-based freelance show. This is and will continue to be our modus operandi,” he continued. journalist who writes primarily for trade and The 2017 edition of the Canadian Furniture Show will be held from business publications. Her specialties include May 27 to 29 at the International Centre in Mississauga, Ontario. food, hospitality and emerging social/business trends.

38 HGO merchandiser INDUSTRY CALENDAR

September 22 to 25, 2016 December 4 to 7, 2016 INTERIOR DESIGN SHOW SHOWTIME VANCOUVER INTERNATIONAL TEXTILE Vancouver Convention Centre MARKETING ASSN. (West Building) High Point, North Carolina idswest.com showtime-market.com

October 22 to 26, 2016 January 16 to 22, 2017 HIGH POINT MARKET IMM COLOGNE High Point, North Carolina THE INTERNATIONAL highpointmarket.org INTERIORS SHOW Koelnmesse GmbH November 24 to 26, 2016 Cologne, Germany ANNUAL CONFERENCE imm-cologne.com QUEBEC FURNITURE MANUFACTURERS ASSN, January 19 to 22, 2017 Omni Hotel, Montreal INTERIOR DESIGN SHOW afmq.com/en Metro Toronto Convention Centre North November 30 to Toronto December 1, 2016 interiordesignshow.com IIDEX CANADA Metro Toronto Convention Centre January 22 to 26, 2017 Toronto LAS VEGAS MARKET iidexcanada.com World Market Center Las Vegas, Nevada lasvegasmarket.com

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