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Critelli's Furniture Michael Knell’s HomeGoodsOnline.ca HGOSUMMER 2014 merchandiserVolume Three, Issue 3 LIFE AT THE TOP A look at Canada’s three biggest furniture retailers Part 1: Succession Planning Cooper on the simple math of improving profitability The mattress warranty revolution CRITELLI’S FURNITURE: Celebrating a Century CONTENTS EDITOR’S LETTER MATTRESSES 6CHANGE AT THE TOP 26THE WARRANTY Over the past decade, the REVOLUTION Canadian furniture, mattress and It’s no secret mattress warranties major appliance scene has come are unique in their generosity. to be dominated by just three Unfortunately, extra-long players, but the good news for the warranties sometimes lead to independent retailers is this: they confusion, misunderstandings are the ones with the momentum and unrealistic expectations on for growth. the part of the consumer. Fortunately, a shift towards PROFILE shorter and less complex 8AHEAD BY A CENTURY warranties is on the horizon. Few businesses, regardless of the industry they belong to, last 20 ON RETAIL years let alone 100! That said, after 32THE SIMPLE being helmed by four successive MATH OF IMPROVING generations of its namesake PROFITABILITY family, Critelli’s Furniture will Raising prices 5%, increasing reach that milestone this year and sales 5% or cutting expenses by it’s still going strong, growing 5% can have an enormous impact 26 bigger and rapidly evolving with on profitability. Our resident the ever-changing market. A business coach, Donald Cooper, profile by regular contributor explains. Ashley Newport. INDUSTRY BY THE NUMBERS 35CALENDAR & 14 LIFE AT THE TOP ADVERTISERS’ INDEX Canada’s furniture retailing community is dominated by three merchants who operated a total of 358 stores under 14 Michael Knell’s HomeGoodsOnline.ca different banners in 2013. Two are publically owned Canadian HGOSUMMER 2014 merchandiserVolume Three, Issue 3 companies while the other is a LIFE AT THE TOP A look at Canada’s three biggest global powerhouse that industry furniture retailers Part 1: insiders rarely, if ever, talk about Succession Planning or consider in their competitive Cooper on the simple math of improving 8 and strategic planning. profitability The mattress warranty MANAGEMENT revolution 22SUCCESSION CRITELLI’S FURNITURE: 14 PLANNING: PART 1 Celebrating Most people get into business a Century to leave something behind for their families. If what’s to be ON OUR COVER: Joe Critelli, the fourth left behind is the business itself, generation president and owner of it’s too important to leave to Critelli’s Furniture, which will celebrate chance. It seems no more than its centennial in 2014. Located in 14% of all family businesses have downtown St. Catharines, Ontario, a viable, documented succession Critelli’s prides itself on being a plan in place. Michael J. Knell ‘lifetime furniture store’ with a product writes a primer on how to get mix that’s solidly in the upper-middle to the process started. high-end price points. 4 HGO merchandiser C ! el e ebr y! ir atin rsar sa g our 20 r annive iver C yea ème nn élébrant notre 20 a C ! é e léb ir ran ersa t notre 20 ème anniv C ! e ry leb sa rat iver ing our 20 year ann WoolLATEX OrganicCOTTON The NATURAL solution for the whole family Call us today for an appointment with your local representative and for details on how you can become an authorized NATURA dealer. (800) 567-7933 naturaworld.com HomeGoodsOnline.ca 5 EDITOR’S LETTER MICHAEL J. KNELL HGO merchandiser SUMMER 2014 • VOLUME THREE, ISSUE 3 Change ISSN 2291-4765 www.HomeGoodsOnline.ca at the top PUBLISHER & EDITOR Michael J. Knell The last decade has brought out enormous change [email protected] throughout this industry, which is somewhat staggering MANAGING EDITOR as most of us who have made our livelihoods working in Anthony E. Bengel it often remark about how stable it is. [email protected] CONTRIBUTORS Donald Cooper N 2003, LEON’S FURNITURE WAS A SOLID MEMBER OF TOP FIVE Ashley Newman furniture retailers in Canada and Sears continued to hold the post position. Today, Leon’s is the largest furniture, mattress and major appliance retailer ART DIRECTOR in the country – a position that no other Canadian retailer is likely to chal- Samantha Edwards Sam I Am Creative lenge over the next ten years. I [email protected] Looking over HGO’s report on Life at the Top (beginning on page 14), there are some interesting conclusions to be made. The first being, not one member IT DIRECTOR of 2013’s Top Three Canadian furniture retailers has much room to expand Jayme Cousins their physical store count. Leon’s with 300-plus stores and nine banners doesn’t In House Logic [email protected] have many more places in this country to go. Granted, IKEA Canada only has 12 stores, but there aren’t many big cities (Halifax, maybe?) left with populations PUBLISHED BY large enough to support another. And unless Groupe BMTC decides to expand Windsor Bay Communications Inc. beyond the borders of Quebec, they don’t have many places to go either. P.O. Box 3023, 120 Ontario Street Brighton, Ontario K0K 1H0 This means their future growth will come in other ways and I don’t think ac- T: 613.475.4704 quisition is one of them. With the exception of BMTC’s launch of the cheap-chic F: 613.475.0829 Economax banner, the Top Three are going to focus on what analysts and consul- Michael J. Knell, Managing Partner tants refer to as ‘organic’ growth. Leon’s recent deal with Furniture.com suggests PUBLISHERS OF e-commerce is going to be key component of their growth strategy and since HGO This Week IKEA is already e-commerce savvy, as their momentum in this area gains speed, Home Goods Online.ca © 2014 other retailers are going to get into the game seriously as well. Windsor Bay Communications Inc. This is the first time in almost a decade that I’ve written an overview of life at All rights reserved. the top of our industry. I’m glad I did. This report is designed give insight into Windsor Bay Communications does not accept (and don’t worry, I haven’t forgotten about Sears) the strengths of Canada’s most any responsibility or liability for any mistakes or dominant furniture, mattress and major appliances retailers. They are forces to misprints herein, regardless of whether such errors be reckoned with, but there’s still room for everyone else. are the result of negligence, accident or any other cause whatsoever. Reproduction, in whole or in part, of this magazine is strictly forbidden without the prior written permission of the publisher. Michael J. Knell AFFILIATE MEMBER Publisher & Editor [email protected] 6 HGO merchandiser For TCHFM’s National Advisory Committee, furniture is serious business. Composed of highly-regarded industry leaders, the Committee will shape the future of TCHFM. It’sIt’s simple:simple: thethe status quo will not do… We need to work together to make TCHFM the best itit cancan be!be! Visit www.TCHFM.com to learn more and to follow the Committee’s work as we build towards the new TCHFM in June 2015! June 4 - 7, 2015 HomeGoodsOnline.ca 7 Spotlight PROFILE AHEAD by a CENTURY Few businesses regardless of the industry they belong to last 20 years, let alone 100! That said, after being helmed by four successive generations of its namesake family, Critelli’s Furniture will reach that milestone this year and it’s still going strong, growing bigger and rapidly evolving with the ever-changing market. BY ASHLEY NEWPORT HIS YEAR WILL SEE CRITELLI’S A medium-high to high-end furniture store Furniture mark its centennial, an that has long been a fixture in the Niagara Re- awe-inspiring milestone few inde- gion city of St. Catharines – although it serves pendent small business founders communities all over the Greater Toronto and can only dream of. Hamilton Area (GTHA) – Critelli’s Furniture While family-owned operations are not at began as a grocery, hardware and furniture Tall unusual in the home goods industry, one store in the nearby village of Thorold in July spanning four generations while thriving for of 1914. The once-humble variety store, then 100 years after inception is indeed rare. There operated by Thomas H. Critelli (with the sup- are perhaps a dozen or so belonging to this port and assistance of his father, the current particular club across the country, including president’s namesake and great-grandfather, James Reid Furniture in Kingston, Ontario, Joseph Critelli) began focusing on fine furni- and believe it or not, Canadian industry giant ture, the category which drove its growth in the Leon’s Furniture. early years. But while reaching your centennial is indeed In 1936, Thomas opened another store with a precious milestone, Joe Critelli, fourth gen- his brother Frank before the opening of its eration owner of his family’s namesake opera- first St. Catharine’s location three years later. tion, is humble about his store’s staggering ac- In 1946, Thomas’ son Thomas J. Critelli joined complishment. the company. “Due to recent developments, such as con- In 1961, the decision was made to close the sumers using the internet to research a furni- Niagara location to focus on what had become ture purchase there are fewer multi-generation the flagship St. Catharines King Street store, companies are left in the industry,” Critelli which began to truly take shape in 1963, when observes. “So we’re happy to not have just sur- it grew to include four showrooms and a ware- vived, but flourished.” house. In 1979, current president Joe Critelli } 8 HGO merchandiser Joe Critelli (bottom), the fourth generation president and owner of Critelli’s Furniture, which will celebrate its centennial in 2014.
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