Michael Knell’s HomeGoodsOnline.ca

HGOSPRING 2017 merchandiserVolume Six, Issue 1

WHAT'S HOT IN wood furniture

Bennett’s flagship shows Make your store traffic count! its age beautifully Apparent market Donald Cooper on the four for breaks steps to fixing what’s needed $1B barrier

CONTENTS

by Canadian manufacturers made gains in 2016 they still aren’t back to where 8 they were then. What’s changed is the growth in imports, particularly from the U.S. They now account for 19.6% of the apparent market. This report was authored by Michael J. Knell.

BY DESIGN 24 BEAUTY BEFORE AGE In creating the new interior for the Peterborough flagship store being constructed by Bennett’s Home Fur- nishings, well-known U.S. furniture store designer Connie Post choose to not just look to the 85-year-old family owned-and-operated retailer’s future but to celebrate the building’s old bones EDITOR’S LETTER while doing so. In this essay, she shares THE CHANGING her insights into the project. MARKET6 Elsewhere in this issue, we report that ON RETAIL after a tough decade the apparent 26 THE FOUR STEPS TO market for mattresses finally climbed FIXING WHAT NEEDS FIXING back to where it was before the financial Every business owner knows when markets went sideways. But looking there is something wrong. It’s almost at the numbers in greater detail instinctive. The hard part comes next. reveals how drastically the market has Donald Cooper, HGO’s resident guru of changed since 2007. Canadian mattress retail takes you through the four steps 16 manufacturing still hasn’t returned to needs to take that feeling and turn it its pre-recession heights. into a workable solution. PRODUCT STRATEGIES IDEAS 8 WHAT’S HOT IN WOOD? 30MAKE YOUR As in fashion, trends in wood furniture TRAFFIC COUNT! shift and change over time. It also Your store traffic is a precious, non- produces pieces and collections which renewable resource – treat it like one stand the test of time because they’re and sell more. In his first essay for the made of a classic material that never Merchandiser, ’s leading expert truly goes out of style. Despite the on the subject starts the process of challenges in the market and the shift showing you how it’s done. Written by 24 towards glossier looks, wood remains Mark Ryski. popular among those consumers who are looking for classic pieces with INDUSTRY traditional appeal. This category update 33CALENDAR & is from HGO contributing editor Ashley ADVERTISERS’ INDEX Newport. ON OUR COVER: Designed by Blake Tovin BY THE NUMBERS for West Bros Furniture, the soon to be 16 THE APPARENT introduced (at the upcoming High Point MATTRESS MARKET BREAKS Market) Strada collection is constructed $1B IN 2016 from solid white oak and features sleek, It took ten years, but the apparent elegant lines for placing in the modern market for mattresses climbed back to home. It also features patina brass bases 26 where it was in 2007. While shipments and matching hardware.

4 HGO merchandiser THE ENDURING CRAFTSMANSHIP OF STEARNS & FOSTER® Stearns & Foster mattresses are built on the belief that there is no greater luxury than the finest bed. Each bed is meticulously handcrafted by master craftsmen, paying relentless attention to detail. We fuse innovative time-honoured traditions, for precisely engineered construction and lasting quality. AD

stearnsandfoster.ca HomeGoodsOnline.ca 5 EDITOR’S LETTER

HGO merchandiser SPRING 2017 • VOLUME SIX, ISSUE 1 MICHAEL J. KNELL ISSN 2291-4765 The changing www.HomeGoodsOnline.ca PUBLISHER & EDITOR Michael J. Knell mattress market [email protected] MARKETING DIRECTOR Elsewhere in this issue, we report that after a tough decade the Corrie-Ann Knell apparent market for mattresses finally climbed back to where [email protected] it was before the financial markets went sideways. But looking CONTRIBUTORS Donald Cooper at the numbers in greater detail reveals how drastically the Connie Post market has changed since 2007. Mark Rybicki CONTRIBUTING EDITOR Ashley Newport EFORE 2007, THE MATTRESS MARKET WAS DEFINITELY A [email protected] ‘Canadian’ one. Because mattresses and box springs are relatively heavy, their production and distribution tended to be fairly regional. ART DIRECTOR Samantha Edwards This is why the leading manufacturers operated factories across Sam I Am Creative the country – mainly in , and . This made [email protected] shipping, either to independent retailers or the regional distribution centres Boperated by the nationals and the major chains, simpler and more cost effective. IT DIRECTOR This also meant mattresses were not import driven. The recession changed Jayme Cousins these fundamentals. In House Logic [email protected] In 2016, the largest importer of mattresses into the Canadian market was Tempur Sealy Canada (TSC) and is evidence of the Tempur-Pedic brand’s PUBLISHED BY emerging importance in this country. When the then standalone Tempur-Pedic Windsor Bay Communications Inc. International acquired its Canadian distributor in 2009, the brand was a niche P.O. Box 3023, 120 Ontario Street player at best. It’s now one of the fastest growing brands on the market. Brighton, Ontario K0K 1H0 As our report shows, mattress imports from the U.S. broke the $100 million mark T: 613.475.4704 F: 613.475.0829 for the first time ever in 2016 – it would not be unreasonable to suggest Tempur accounts for as much as 70% of that total, considering the growth of its network Michael J. Knell, Managing Partner (which includes Sleep Country Canada, Leon’s, Brault & Martineau and The Bay) PUBLISHERS OF in recent years. HGO This Week Home Goods Online.ca However, the downside of this year’s report on the apparent market (which © 2017 is defined as domestic shipments plus imports less exports valued at wholesale Windsor Bay Communications Inc. All rights reserved. prices) is the light it has shown on Canadian mattress manufacturing. Yes, it grew last year. In fact, domestic shipments grew for the second consecutive year in Windsor Bay Communications does not accept 2016. But they are still more than $100 million down from the all-time high set in any responsibility or liability for any mistakes or misprints herein, regardless of whether such errors 2007 at $987.6 million. are the result of negligence, accident or any other While the market has clawed its way back, it’s not the market we knew before cause whatsoever. Reproduction, in whole or in part, the recession. It has changed in fundamental ways. I suspect more change is on of this magazine is strictly forbidden without the prior written permission of the publisher. the way. AFFILIATE MEMBER

Michael J. Knell Publisher & Editor [email protected]

6 HGO merchandiser Business. Buyers. Network.

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HomeGoodsOnline.ca 7 PRODUCT STRATEGIES

This stylish rectangular table from the Bermex division of BDM Furniture can seat anywhere between eight and ten diners. Tables from the brand are available in 182 finishes and colours.

What’s hot in WOOD? As in fashion, trends in wood furniture shift and change over time. It also produces pieces and collections which stand the test of time because they’re made of a classic material that never truly goes out of style.

OR THE PAST SEVERAL YEARS, THE are fortunate. Wood, though incredibly ho-hum narrative has too often been traditional, is both timeless and customisable. the same: challenges spurred by the An ordinary dining table or bedroom dresser economic downturn (which peaked can be transformed by a daring finish, rustic Falmost a decade ago, believe it or not) are still surface, unique handles or some other carefully prevalent and compounded by disruptions to considered detail. The final piece can be the manufacturing industry and a persistent dip grandiose and perfect for a large kitchen or in consumer spending. spacious cottage or compact and sleek for a BY ASHLEY While it’s no secret the furniture industry – cozy townhouse or apartment-style condo. NEWPORT much like any other industry – still has hurdles That said, how are wood products performing to overcome, most Canadian wood manufacturers and do consumers still want them? are confident economic conditions are improving and they are adapting to a fast-paced market How were sales in 2016? where consumer wants and needs are changing. While it’s always difficult to keep pace with In many ways, wood furniture manufacturers changing demands, a lot of manufacturers are, at

8 HGO merchandiser the very least, seeing some stabilisation in their sales numbers and most are optimistic that the years ahead will be kind. “Last year was better than 2015 definitely, but we expect business to really pick up in 2017,” says Denis Darveau, vice president of sales for BDM + Furniture Inc., the Louiseville, Quebec- based parent of five case goods producers including Bermex, Bertanie, Dinec, Midi and Shermag. “It has been a long recession and we are glad it is over.” Although the climb from the low-lows of 2008 has been difficult (not to mention long), Darveau is right that the downturn is effectively over. Although some might argue the great recession has prompted something of a new and less prosperous normal, the most challenging times are, ideally, behind most Canadian manufacturers. “Last year was pleasantly up for a change,” says Greg Brown, the owner and vice president of sales and marketing for solid wood specialist Camlen Furniture, located in Knowlton, Quebec. “Things were better than they’d been and we had to hire a couple of people. We’re not a duo behind Steven & Chris (a brand he started Bermex, one of the five manufacturing company in the sense of putting with his late business and romantic partner, Chris brands produced by BDM out the same item in multiples and we’ve gotten Hyndman) and popular television personality, Furniture, produces more business. It was a good year for commercial even spoke at length at the show about the more than 96 sizes and business. We refurbish hotels and restaurants market’s return to gloss and glamour. shapes of dining room and right now we’re doing tabletops for During Sabados’ well-attended talk, the design tables, including this restaurants. Residential jobs are also becoming guru mentioned the long-standing popularity rectangular model with full installation jobs.” of reclaimed wood was fading out to welcome special leaves. It can While Camlen and BDM both had positive a shift towards glitzier finishes and noting that seat up to 12 people, as years, other wood manufacturers have seen little greys were petering out as the hot new neutral. it expands to suit the change in sales activity. While he was careful to add that rustic wood diner’s needs. “Business was generally flat compared to the and grey pieces will still sell, he did warn that a prior year,” says Amanda McQueen, marketing shift in consumer tastes was unfolding and his and sales support manager for solid wood presentation begged the question of what kind bedroom specialist Durham Furniture, located of wood furniture products retailers would be in Durham, Ontario. demanding in the future. Other businesses also noticed little change in “Ninety per cent of Bermex and Bertanie sales, but differences in terms of demand. furniture is made of solid wood, and it will remain “Last year and 2015 for us was nearly a dead the same,” says BDM’s Darveau. “Consumers do heat in sales,” says Samantha Mund, a customer see an added value to solid wood still.” service and sales representative for West Bros That said, Darveau has noticed a shift from Furniture, a family-owned solid wood producer traditional looks to more permanent pieces. based in Hanover, Ontario. “We experienced a “We’ve definitely seen a decrease in sales for shift from dining to bedrooms and a significant our buffets and especially hutches. Being mid- increase in sales in the U.S., but overall sales to high-end, a lot of our consumers now have were nearly identical in volume.” built-in case goods, but hutches don’t seem to be popular lately.” What looks are consumers Other manufacturers agree traditional looks gravitating towards? still sell – and sell well. At last year’s Canadian Furniture Show, the floor “We traditionally manufacture solid wood at Mississauga’s spacious International Centre that’s rougher wood. We were always more was filled with modern, glossy case goods made country rustic and there’s a big spread between with glass, mirrors and shining lacquered finishes. what people like now,” says Camlen’s Brown. Steven Sabados, one half of the acclaimed design “We do contemporary white, clean finishes or}

HomeGoodsOnline.ca 9 Top:This Hatteras table is a little more neutral and traditional with its earth- toned colour palette and upholstered chairs. It seats six comfortably and offers that same East Coast appeal.

Bottom: This light, beach-inspired table is part of BDM Furniture’s new collection Hatteras. The collection includes 10 new finishes that were specifically developed for an East Coast clientele or anyone close to water or beaches.

in furniture. Because of Houzz and other design sites, people want what they see.” Other companies are also getting more creative. “In 2017, we launched a nice collection of Live Edge tables with a wide choice of sizes and bases and over 160 different finishes,” says Darveau. “[It’s been] a true success so far. We’ve also introduced a new collection called Hatteras, which includes ten news finishes that are very light colored that’s specially developed for the east coast clientele or anyone close to the water and beaches.” dark finishes for that division, but I still have clients looking BDM also worked on strengthening some other segments. for the rougher finish and that Restoration Hardware look.” “Furthermore, we have extended our barstool segment quite a According to Brown, some consumers want gloss and lot by adding a new style of barstools and adding quite a few others still want industrial-looking pieces. One challenge in new bases that are 24 and 30 inches, as well as adding new adapting and creating pieces for both tastes is training staff counter and bar height table sizes.” to become adept at mastering both looks. Other companies have stuck with solid wood and a satisfied “Some people might want clean and modern and someone customer base as a result. might want older or industrial. We’ve adapted a lot to use “Major trends in terms of finishes are still towards ‘in’ veneers in side panels and wood veneer tops. We’re making colours like grey and soft blacks,” says Durham’s McQueen, about half and half. It’s challenging from a production point of adding the 118-year old company works exclusively with solid view, because you have to train staff to do everything. Rough wood pieces. “The consumer is also looking for a broad choice finishes are more forgiving and we don’t use lacquers. We use of finish options, so our offering of over 60 finishes meets the water-based latex and it can have an adverse effect on wood, needs of most any consumer.” but it looks good. With a clean finish, it can’t have a flaw.” While some argue case goods are not as vulnerable to Camlen has decided to do its best to adapt rather than sudden trend shifts in the same way upholstered pieces are, stick with one look over another – especially at a time where others disagree saying they have to watch evolving looks consumers are more style-savvy due to the popularity of home closely and respond accordingly. shows and decor-oriented web sites like Pinterest and Houzz. “I disagree to a certain degree that case goods are not at the “We offer Benjamin Moore finishes as a result. A lot our mercy of trends,” West Bros’ Mund says, noting, “We produce business is driven by interior designers. It’s hard to cut a mix of transitional, traditional and contemporary looks. something out of your line if it’s a big part of your business. We noticed five years ago there was a significant shift from People are more likely to change tastes more quickly,” Brown formal dining and bedroom to the more fashion forward mid- responded, adding, “At first, a lot of people can only afford century modern looks that have flooded the market these past lower-end pieces and then they learn to invest more heavily few years. }

10 HGO merchandiser Zucora is Canada’s largest provider of home furnishing protection programs. For more than three decades we’ve been building a legacy, rooted in our industry-wide reputation for outstanding service for national, regional and independent home furnishing retailers.

HomeGoodsOnline.ca 11 For more information, please get in touch: 1 800.388.2640 | [email protected] | www.zucora.com Left: A new addition to the Durham Furniture’s core bedroom assortment, this chic upholstered bed combines a brushed stainless steel base with solid wood. Available in two different colours, the piece can be configured in multiple ways.

Right: This Serpentine wall console from solid wood specialist Durham Furniture can be customised to a client’s liking, as it’s available in over 40 maple finishes.

“Millennials continue to seek out new exciting and unique for dining sets. In fact, BDM collections and one such collection is our brand new Strada has discontinued bedroom bedroom,” she continued. “It’s sleek and contemporary altogether to focus on with lush white oak grain and it’s one that we are extremely dining while Camlen is excited about.” considering dropping bed- In concert with the majority of other Canadian room because the demand manufacturers, West Bros has noticed a distinct shift in simply isn’t there. size requirements, especially in terms of dining sets. As far “There’s always been as finishes go, she says it’s hard to identify one singular, more demand for our prevalent trend. dining sets,” says Camlen’s “We also have seen a shift from large scale dining to less Brown. “We’re not a big formal, smaller scale such as Fulton and Phase dining. Because manufacturer, so we don’t we ship internationally, it’s really hard to pinpoint an overall put together a ton of product. People reserve us for when they finishing trend. Each area in the U.S. is unique, as is abroad. A want something customised and unique. Dining is stronger – dealer in Montana may request all items to have distressing, a I customise it too, and it’s simpler to customise.” dealer in may favour dark cherry finishes and a west coast dealer may favour light walnut. It’s really regional and Grappling with price points that is great for us,” Mund says. The recent annual Consumer Price Index report from Statistics Canada shows prices for wood furniture haven’t What are people buying? kept pace with either inflation or other goods in the consumer While wood is classic, consumers have expressed more basket. In fact, the index for this category was set at 100 in desire for upholstered beds, glass dining sets and, in some 2002 and was measured at 98.3 in 2016. In fairness it should cases, mirrored or metal dressers. Since more modern looks be noted the 2016 CPI for wood furniture was at its highest might seem too daring for more traditional shoppers (and seen since 2010, but still below the record high 100.8 reached the retailers who cater to them, by extension), it’s interesting in 2009. (The CPI for wood furniture is also higher than it is to explore the difference in sales between bedroom and for both upholstery and mattresses.) dining sets. Since price points remain challenging, manufacturers have “The shift from bedroom to dining business has been had to trend cautiously and balance the competing forces of noticeable,” Mund observes. “Our mix in previous years has escalating costs and the need to be price competitive at retail. been as high as 60-40, but now it’s more 80-20. We have “Well, I think we’ve followed the inflation rate since we’ve shifted our focus to building and designing more bedroom had no choice but to increase our prices every year. Salaries collections. are up, as well as raw material,” says BDM’s Darveau. “We also have been producing workspace collections for our There is also a real need to be sensitive to the need of ‘best sellers’,” she added. “The clean-lined desks, bookcases retailers. and occasional tables look equally at home in a living room, “We have really tried to be fair to our retailers and keep dining area, bedroom or traditional, residential office space.” price increases down to a minimum,” says Mund. “That Other manufacturers have seen stronger growth in demand being said, we have experienced significant cost increases}

12 HGO merchandiser WIN THE DAY. START TONIGHT. Revolutionary TEMPUR® material responds to your body’s temperature, weight, and shape for truly personalized comfort and support. Tempur-Pedic helps you find your next level by allowing you to sleep deeply and wake up feeling powerful. DISCOVER YOUR POWER AT WWW.TEMPURPEDIC.CA HomeGoodsOnline.ca 13 Designed for West Bros collections. We have also become Furniture by Blake Tovin, leaner, running smaller runs of the Jensen shelter bed collections so that our customer with a Euro footboard wait times have decreased. We do comes in queen and king not want to sacrifice our quality size configurations and to be quicker, but rather run more offers clients two different efficiently to allow our production finishes to choose from. have the time to do what it does best.” Others, such as Camlen, are diversifying their offerings to better compete in a changing market. “In 2015, we tried to go harder on new collections,” says Brown. “We’re experimenting with murphy beds that don’t need to be installed. It was slow to begin, but now that’s finally kicked in and we finalised orders at the end of 2016. We’re building them self-contained so they just have to be screwed in when they arrive. We did a model that converts to a desk. We had to find other venues and the majority of our furniture is large scale, so we had to go smaller. We want to get more streamlined in what we’re doing.” The trade show circuit from the majority of our suppliers. Our retailers are not part Each year, the majority of Canadian wood furniture makers of the lower end, but their customer has become more price take part – as an exhibitor – in one of the many furniture conscious. Our biggest advice to our dealers is to educate the trade events held each year across as they staff and their customers to not just price compare, but quality remain the best available platform to show off their latest compare. Our finishes, construction and quality of materials functional, on-trend pieces and collections while making new set us apart from the rest.” connections with retail buyers. Others admit it’s an ongoing challenge, especially when For instance, BDM+ Furniture, Durham and West Bros only manufacturing becomes more expensive at a time when show at the High Point Market, which is held each April and consumers are reluctant to spend more. October in High Point, North Carolina. Each has its own “It’s a challenge,” Brown admits. “I’m in the midst of permanent showroom in the North Carolina home of what reviewing my prices now and honestly, my prices have barely many to believe to be the world’s largest furniture industry changed in 10 years. They’ve gone up a little in response to trade event. the drop in demand for manufactured goods. There’s a lot of “The only market we intend to show at this year and next downward pricing pressure on us. We’ve had to deal with it year are the High Point Markets,” BDM’s Darveau says. “We by pricing it out based on what I spent, and it’s hard because purchased our own 100,000 square foot building in High Point production can go over by several hours. The cost of living in 2011, and we’ve been improving the building ever since.” goes up, wood goes up and shipping goes up. Everything The Factory, as BDM’s showroom facility is known, is increases, but it’s hard to increase the price of the furniture.” located 400 W. English Road. In order to adapt, Brown has had to price goods the best way Both Durham and West Bros can be found in the he can. “I used to feel bad about pricing things, but now there International Home Furnishings Center (IHFC). Durham is in are no options. We’ll probably be raising some prices, but space G1082 and West Bros in D1144. we sell to U.S. and we’re helped by the exchange rate. We’re Durham also maintains a small presence at the Canadian benefitting there. I don’t think it would benefit us to reduce Furniture Show, sharing a permanent showroom on the second our pricing. There’s been downward pressure on all furniture floor of SOFA, the International Centre’s permanent showroom manufacturers.” annex while Camlen can be in the temporary exhibits in Hall One during this country’s only furniture trade event. What’s in store for 2017? A number of other Canadian wood furniture makers are Having seen, at best, a modest uptick in sales in recent years, also expected to show at CFS, including: Cabinet Bed; BG this country’s wood furniture makers aren’t resting on their Furniture; Buhler Furniture; Canadel Furniture; DeFehr laurels and a continually seeking to grow their businesses. Furniture; Ruff Sawn; Crate Designs and Vokes Furnitiure, These efforts run the gamut from improving productivity among others. CFS takes place from May 26 to 28, 2017. HGO on the factory floor to designing new single pieces and collections to add to their product assortments. A regular contributor to HGO Merchandiser, ASHLEY NEWPORT “We have launched several new plant initiatives to increase is a Toronto-based freelance journalist who writes primarily our productivity,” Mund says. “Cross training staff has been on for trade and business publications. Her specialties include going so that we can become less reactive to spikes in certain food, hospitality and emerging social/business trends.

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Come see us at the Canadian Furniture Show Booth 1436 May 26 - 28, 2017 www.magniflex.com For more info please contact: Richard Landriault, Director of Sales – Magniflex Canada [email protected] - Tel 905.481.0940 HomeGoodsOnline.ca 15 SLEEP IS LIFE’S GREATEST PLEASURE. Canadian mattress BY THE NUMBERS shipments reached a seven-year high in 2016, valued at some $885 million. Whileprecise figures aren’t currently available, it’s believed the Sealy brand is the largest and most widely distributed in the country.

THE APPARENT MATTRESS MARKET BREAKS $1B IN 2016

It took ten years, but the apparent HERE WAS A TIME, NOT SO LONG ago, when the mattress industry market for mattresses climbed didn’t see its product as a commodity back to where it was in 2007. to be traded over international Tborders. It was very much a domestic concern While shipments by Canadian with Canadian producers fighting it out for manufacturers made gains in 2016 floor space on Canadian retail stores to reach a Canadian consumer. But a quick review they still aren’t back to where they of apparent market shows how drastically were then. What’s changed is the things have changed in recent years. It’s not that Canadian mattress makers have become growth in imports, particularly expert exporters, although their efforts on from the U.S. They now account that front have improved in recent years, it’s that Canadian retailers are buying more sleep for 19.6% of the apparent market. sets from outside our borders – and from three BY MICHAEL J. KNELL countries in particular: the United States, China and Mexico. A review of the apparent market – which measures the value of domestic shipments less exports plus imports and measured at

16 HGO merchandiser For the past three years, the fastest growing importer of mattresses into the Canadian market has been Mexico. For the first time, shipments from the junior member of the North American Free Trade Agreement (NAFTA) were almost equal to those from China at $42.3 million last year – which was a 9.8% uptick over 2015. wholesale prices (net of freight costs, retail Much of this growth has been attributed to mark-ups and sales taxes) – grew slightly in two factors. One is the growth of the Tempur- 2016 to $1.04 billion. This brings the industry Pedic brand in the Canadian market. Sold back to where it was in 2007 if inflation is and distributed here by Tempur Sealy Canada ignored. What has changed significantly is the (TSC), the product is made by its parent composition of the apparent market. company – Tempur Sealy International – at its Back in 2007, imports accounted for 9.0% of manufacturing facilities in Duffield, Virginia the Canadian apparent market for mattresses. and Albuquerque, New Mexico. “As Tempur- In 2016, imports accounted for 19.2%. In fact, Pedic products continue to gain momentum in they grew for the second consecutive year Canada, U.S. imports will continue to increase,” last year and have grown in eight of the past TSC vice president and general manager Steve ten years. Millar said. Indeed, imports broke the $200 million In fact, when what is now Tempur Sealy mark for this first time ever in 2016. More than International acquired its London, Ontario- half of those imports came into the country based Canadian distributor in 2009, the brand from the United States. Imports from the U.S., was at best a niche player in the market north have been particularly strong over the past two of the 49th parallel. In 2016, the Tempur brand years – growing 9.8% in 2016 to $107.4 million is carried by almost every major furniture and (a new record high), after growing 29.4% the mattress retailer in the country. year before. Indeed, U.S. imports have doubled While there are no accurate figures to confirm since 2007. this, most industry observers also point out }

APPARENT MARKET FOR MATTRESSES 2007 TO 2016 IN CURRENT MILLIONS OF CANADIAN DOLLARS • NORTH AMERICAN INDUSTRY CLASSIFICATION (NAICS) 337910

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Domestic Shipments 987.6 922.2 751.8 758.0 741.3 700.3 832.8 832.1 864.2 885.7 Percentage change -6.6 -18.5 0.8 -2.2 -5.5 13.0 -0.9 3.6 2.5 Imports (all countries) 94.3 120.0 113.4 115.3 129.7 141.0 152.7 151.7 187.5 200.1 Percentage change 27.5 -5.6 1.7 12.5 8.7 8.3 -0.4 23.6 6.7 From the United States 52.9 70.4 63.9 64.3 77.5 76.4 77.0 75.6 97.8 107.4 Percentage change 33.1 -9.2 0.6 20.5 -1.4 0.8 -1.8 29.4 9.8 From China (People’s Republic) 24.4 26.8 26.5 26.1 28.2 39.0 42.1 39.6 44.6 42.6 Percentage change 9.8 -1.1 -1.5 18.0 38.3 7.9 -5.9 12.6 -4.5 Exports (all countries) 41.9 35.8 34.3 39.2 36.5 33.3 37.1 36.2 45.9 49.9 Percentage change -14.5 -4.1 14.3 -6.8 -8.8 11.4 -2.4 26.8 8.7 To the United States 35.1 30.7 27.6 31.8 29.0 30.0 30.4 30.8 39.2 44.3 Percentage Change -12.5 -10.1 15.2 -8.8 0.3 1.3 1.3 27.2 13.0 Total Apparent Market 1040.0 1010.0 830.9 834.1 834.5 808.0 948.4 947.6 1005.8 1043.2 Percentage Change 0.0 -17.7 0.0 0.0 -3.2 14.8 0.0 6.1 3.7 Imports - Market Share (%) 9.0 11.9 13.6 13.8 15.5 17.4 16.1 16.0 18.6 19.2 Note: All figures given in current Canadian dollars (millions) Sources: Statistics Canada; Industry Canada; Home Goods Online/Windsor Bay Communications © 2017

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So Comfortable, IS HERE! You’ll Never Count These Guys Again.™ © 2017 Serta Canada Inc. A division of Serta Simmons Bedding Canada Co. All rights reserved. HomeGoodsOnline.ca 19 Imports now account that most adjustable beds sold in Canada are A word about exports for about 19% of the made in the U.S. And they are one of the fastest As mentioned in the opening, mattresses Canadian mattress growing bedding categories in the market. haven’t traditionally been seen as an item for market, in large In what’s probably not a surprise to anyone export by producers in this country. And, in part because of the in the industry, China is the second largest fact, whatever mattresses are made for export, increasing popularity importer of mattresses in Canada – a position it they are almost certainly destined for the and broadening has held, without challenge, for the past decade. U.S. market. distribution of the However, their imports fell 4.5% last year to The total value of all exports was $49.9 Tempur-Pedic brand, $42.6 million, according to data published by million last year. That’s up 8.7% over 2015. It which helped push Industry Canada. should be noted exports account for about 5.6% shipments from the For the past three years, the fastest growing of Canadian mattress shipments, which is far United States into importer of mattresses into the Canadian market less than either of the two broad categories of Canada to over the $100 has been Mexico. For the first time, shipments furniture – upholstery and case goods – or any million mark in 2016. from the junior member of the North American other durable goods category. Free Trade Agreement (NAFTA) were almost Exports to the U.S. were valued at $44.3 equal to those from China at $42.3 million last million – a gain of 13.0% on a year-over-year year – which was a 9.8% uptick over 2015. basis. In fact, they’ve grown every year for What’s not easily discernable is where these the past five years and account for 89% of all imports from China and Mexico are being sold Canadian mattress exports. at retail. For example, at least one of Costco What’s less clear is who is shipping these Canada’s best-selling mattress lines is made in products to U.S. retailers and other institutional China. Many industry insiders believe Mexico buyers. is an important mattress resource for IKEA Canada. Both Costco and IKEA are among Domestic shipments the fastest growing mattress purveyors in the Domestic shipments of mattresses by Canadian country and are counted among the seven manufacturers were up 2.5% to $885.7 million retailers that dominate sleep product retailing in 2016, the second consecutive year in which in this country. they registered a small gain. }

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CANADIAN CANADIAN HOME HOME FURNISHINGS FURNISHINGS ALLIANCE ALLIANCE HomeGoodsOnline.ca 21 Both Costco and IKEA are among the fastest growing mattress purveyors in the country and are counted among the seven retailers that dominate sleep product retailing in this country.

However, that’s still well below $987.6 under the King Koil, Posture Beauty and Regal million that was shipped in 2007. Many Bedding labels. industry insiders attribute this shrinkage to a In compiling its reports, Statistics Canada number of factors. Aside from sales lost to the doesn’t distinguish between mattresses made recession that followed in the wake of the 2008 for the residential, that is retail market and financial mess, most industry insiders noted those made for the health care, hospitality and the average ticket fell substantially as the institutional sectors. It also only measures recovery took hold. Before the recession, the shipments by dollar volume – not by units. industry’s average ticket at retail was climbing So, its $885.7 million figure for manufacturers’ as consumers seem to be increasingly willing shipments accounts for all sectors. Most and able to buy better. industry insiders believe sales to hospitals, Despite this, the mattress industry in Canada hotels and other contract and institutional has been remarkably stable in recent years. buyers account for between 5% and 8% of Over the past decade, the big news really has shipments annually. been Tempur’s takeover of Sealy in 2013 and the As far a unit shipments are concerned, most merger of the Serta and Simmons brands a few in the industry suggest they’ve averaged 2.7 years before that. The bankruptcy of Sommex million or so in each of the past five years. Bedding Corporation in December 2015 was the However, this doesn’t break down to 1.35 first such event in more than a decade, but as a million sets (one mattress plus one box spring) relatively small player its exit hasn’t appeared as the number of mattress sold without a box to damage the industry’s overall growth to any spring seems to be climbing. great extent. There is also a fair amount of speculation In Canada, the industry is dominated by four about the average price per unit at the factory companies that produce a total of six brands. level. While most in the industry agree it has They are: Tempur Sealy Canada, who make been slowly moving upwards in recent years Sealy branded goods in their four Canadian – mostly in reaction to price increases on factories and import Tempur labeled products; components such as steel, foam and fabric – SSH Bedding Canada, which produces Serta and pegging an average out-the-shipping-door Simmons; Owen & Company, the Toronto-based price is difficult. Most execs believe it stood producer of the Kingsdown brand in Canada; somewhere between $240 and $260 at the end and, Springwall Sleep Products, which has of 2016. factories in Mississauga, Moncton and Calgary. While there’s a lot about the industry Between them, they are believed to account that isn’t known, we do know the industry is for about 80% of all mattress shipments in enjoying steady growth with upticks seen both Canada. The rest are divided between as many in domestic shipments and the overall apparent as three dozen different companies. Some are market. And most leading mattress executives regional or local producers such as North Star are confident this will continue in 2017. HGO Bedding, based in Sudbury, Ontario. Some of the other and perhaps better known include MICHAEL J. KNELL is the publisher and editor Zedbed, the Shawinigan, Quebec-based maker of Home Goods Online and all of its platforms. of speciality mattresses; Marshall Mattress, He has observed, researched and written about the Toronto-based producer of high-end Canada’s furniture and mattress industry for mattresses; and the Calgary-headquarter Park the past three decades. He can be reached at Avenue Furniture, which produces mattresses [email protected].

22 HGO merchandiser HomeGoodsOnline.ca 23 BY DESIGN

Beauty BEFORE AGE In creating the new interior for the Peterborough flagship for Bennett’s Home Furnishings, Connie Post choose to not just look to the 85-year-old family owned and operated retailer’s future but to celebrate the building’s old bones while doing so.

Top: Modern lighting was added to the interior of the 31,000 square foot space to help give the store a fresh look.

Right: Bronze metal cladding was adding to the exterior of Bennett’s Home Furnishings flagship store in downtown Peterborough, Ontario. The family owned retailer also operates a store in nearby Campbellford, Ontario.

S AN ARCHITECTURAL Since the old factory was actually a enthusiast myself, I get it combination of two buildings—one of brick and when a retailer sees the the other cinderblock, the exterior needed to “cool” in an old building. Of be addressed with a fresh new façade. Existing course, when that building is structural walls to the right of the entry, and a former cardboard factory, as was the case for another two-foot wall about 20-feet in, dictated ABennett’s Home Furnishings in Peterborough, that we would have a smaller, 3,000-square- Ontario, the building can come with all sorts foot entry. I always favor huge front entryways BY CONNIE of small rooms, nooks and crannies that cannot because you only have one chance to make that POST be removed due to sheer expense, along with first impression, so we knew this smaller entry boarded-up windows that are not necessarily would have to make a big impact. conducive to selling furniture. We added bronze metal cladding to the Nevertheless, Eric Bennett saw potential in buildings’ exteriors to create a more modern EDITOR’S NOTE: the 70,000-square-foot space, particularly since vibe and to unify the structures. Inside, we This article first appeared his goal was to take Bennett’s, a traditional wanted to immediately wow customers, so in the February/ furniture store in business for more than eight we led with a pearlized floor from Centiva, March 2017 edition of decades, in an entirely new direction. He turned embedded with an elaborate custom design: The RetailerNOW, the official to us to help create his dream store, a bright, Bennett’s logo mascot, a peacock. A soffit was journal of the Home fresh and open warehouse format with 31,000 added above with specialty lighting dropping Furnishings Association. square feet of retail selling space. down directly above the logo. We know that 75

24 HGO merchandiser Top: An existing garage door was painted bright red to attract customers’ eyes and steer them in the right direction on the showroom floor while adding to the industrial feel.

Bottom left: A long-ago shuttered clerestory was resurrected, flooding the factory-turned- store with plenty of natural light.

BEFORE percent of shoppers will naturally turn right covering large display counters for a clean, The former cardboard when entering a store; to help ensure all did, we modern look. factory was turned into painted an existing garage door bright red to Most important, since Eric Bennett is the a traditional furniture attract the eye and add to the industrial feel of grandson of the founder, and his daughter store with a fresh the project. and new son-in-law—Jasmine Bennett and and open air format. We uncovered and resurrected an existing Tyler Steeves—are part of the next generation Marlaine Bennett, clerestory down the center of the store which involved with the business, we wanted to wife and partner of helped us open site lines and flood the space celebrate the family and expert sales staff with Eric Bennett, is seen with natural light. We left the factory’s original a wall of photos of the owners and smiling here in the space as beams in place along with some original employees behind the service counter. A wall construction begins. brick interior walls and posts. The effect is graphic near Jasmine’s wedding photo spells fashionable, industrial and urban. Wherever out “You Will Love Bennett’s,” and by all reports, possible we used existing structures instead of customers absolutely do. HGO trying to hide them. On non-bricked walls we emulated the existing conditions with white CONNIE POST is a retail design strategist, trend brick wallpaper behind key settings and vinyl expert, author and owner of Affordable Design wood flooring, both of which are very affordable Solutions Connie Post International, based in solutions. Since special order represented a Greensboro, North Carolina. She specialises in huge opportunity for growth, we brightened designing retail home furnishings stores and can that department with sleek white laminates be reached at [email protected].

HomeGoodsOnline.ca 25 ON RETAIL

FOUR STEPS TO FIXING WHAT NEEDS FIXING Every business owner knows when there is something wrong. It’s almost instinctive. The hard part comes next. Our resident retail guru takes you through the four steps needed to take that feeling and turn it into a workable solution.

N WORKING WITH BUSINESS OWNERS my one-page Key Challenge Audit Sheet. and managers throughout the world, But ‘awareness’ alone will get you nowhere! I’ve discovered there are four clear This brings us to: steps to fixing what needs fixing in Iany business. Here they are. (STEP 2) A PASSIONATE AND URGENT COMMITMENT TO FIX (STEP 1) AWARENESS WHAT NEEDS FIXING Awareness is simply knowing some part of Many businesses know that they’re falling BY DONALD your business isn’t ‘right’ yet. You’re not where short but lack the ability, energy, urgency or COOPER you want or need to be to be a profitable market passion to fix it. They’re over their heads; burnt leader or to achieve your vision. out or just don’t give a damn. Perhaps your products or services aren’t Years ago my father drove a Jaguar XJ6 the best they could be. Or you’re falling with the world’s most unreliable windshield short in delivering the customer experience wipers which he thought rather odd, given you’ve promised. Perhaps you’ve not that it was built in the United Kingdom where created the internal business environment it rains a lot of the time. By chance, father required to attract and keep the best people. met the chairman of Jaguar at some big-shot Perhaps you’re falling short in planning and business event. When he mentioned he was a budgeting, control, accountability, profitability Jag owner, the chairman enquired, “And how or implementation and follow-up. Your do you like your Jag?” shortfall could be in technology, systems or Not wanting to miss an opportunity to communication. It could be that you’ve not yet go right to the top with his problem, father met your commitments to your community or told him about his huge frustration with the the environment. windshield wipers – to which the chairman There is an old saying proclaiming: “The offhandedly replied, “Oh Jack, we don’t seem beginning of wisdom is the recognition of to have that one quite right yet, do we?” reality.” Are you aware of the specific areas Clearly, the chairman was aware of the in your business that aren’t ‘right’ yet? Can problem. He had arrived at Step 1. But, judging you list them and prioritise them? Without by his offhand remark, there was no passionate ‘awareness, there will be no improvement. To or urgent commitment to fix it. Are you quickly determine which areas of your business passionately committed to fixing the things need work, go to my web site and download that need fixing in your business? }

26 HGO merchandiser HomeGoodsOnline.ca 27 (STEP 3) ANALYSIS / Finally, what are the costs and the benefits of CREATIVITY / DECISION / AND each of your ideas? AN ACTION PLAN DECISION: Don’t analyze and create forever. Here’s where the real work begins. For each Commit to a course of action in a reasonable thing you’re committed to fixing or creating time frame. There’s more money lost through in your business, work through the stages of indecision than wrong decision. Nike’s slogan analysis / creativity / decision making / and is not ‘Just talk it to death!’ Don’t over-analyse. What has committing to an action plan that states clearly THE ACTION PLAN: Document specifically what will be done, by whom, by when, and who will do what, by when, measured how and never been measured how. rewarded how. Involve all those whose support ANALYSIS: Get the facts! If it’s a problem you need in the implementation process. done? What you’re solving, get to the real root cause. Make sure they understand why this project ideas, when Don’t just attack surface problems. If it’s an is important to the business and to them. opportunity you’re pursuing, make sure you Determine from your team what additional implemented, have all the important facts. Either way if your information or resources they’ll need to be would blow analysis is wrong your action will likely be successful, and make sure that they get what wrong – and, therefore, your outcome will be they need. your customers wrong. CREATIVITY: Encourage creativity within (STEP 4) EFFECTIVE away or your organisation and know when to ‘rent’ IMPLEMENTATION AND FOLLOW give you an creativity from the outside. Ask your team, your UP: GET IT DONE! suppliers and your customers for their ideas. In Businesses don’t die from a single shot to the operational doing so you will learn from them – and you will head. They die slowly but surely from a thousand advantage honour them. Find out who the real experts are uncompleted tasks. Effective implementation on what you’re trying to fix or create. The good is one of the biggest challenges in most that would ones will save you a bundle and the bad ones businesses today. transform your will cost you a fortune. Here’s the simple solution: every time Don’t try to ‘reinvent the wheel’. What you assign a task, agree on a specific date by bottom line? are other successful businesses doing about which it will be completed. Document that whatever problem or opportunity you’re commitment and always follow up. Then, working on and then figure out how to do it you must hold people accountable, celebrate even better! success, reward performance and deal firmly What has never been done? What ideas, with non-performance. when implemented, would blow your customers So there you have four simple but powerful away or give you an operational advantage that steps to fix what needs fixing in your business. would transform your bottom line? Where are you in the process? First, are you Ask the ‘wonderful’ question, which is: aware of what needs fixing? Then, are you “What would be the most wonderful thing passionately and urgently committed to getting that we could do in solving this problem or on with it? Is it the analysis, creativity, decision creating this opportunity?” Years ago, in our making or planning where you need more ‘almost famous’ lady’s fashion store we came focus? Or, is it in the implementation that you up with ‘wonderful’ in the form of a choice of need to improve? How will you use the insight seven free beverages; four hooks in the change of these four clear steps to fix what needs fixing rooms; electric massage chairs for husbands in your business? HGO and boyfriends; a pirate ship play area for kids; change tables with free diapers, diaper wipes A regular contributor to Home Goods Online, and cream in the customer washrooms; and, DONALD COOPER has been both a world-class an invitation to “Please take as many items in manufacturer and an award-winning retailer. the change room as you wish!”. We came up Now a Toronto-based business speaker and with all these great ideas simply by asking the coach, he helps business owners and managers ‘wonderful’ question. rethink, refocus and re-energize their business So, get creative. What are the possibilities? to create compelling customer value, clarity What would be a ‘big idea’ here? Remember big of purpose and long-term profitability. For ideas ‘grab’ customers, clearly differentiate you more information, or to subscribe to his free, from your competitors, make you famous and monthly management e-newsletter, go to www. make you money. donaldcooper.com

28 HGO merchandiser 1,562 Mattress Set + Encasement + + Pillows + Pillow Protectors + Sleep Technology

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Visit Us At the Canadian Furniture Show, Booth 1307 HomeGoodsOnline.ca 29 IDEAS

BY MARK RYSKI Make your traffic count! Your store traffic is a precious, non-renewable resource – treat it like one and sell more. In his first essay for the Merchandiser, Canada’s leading expert on the subject starts the process of showing you how it’s done. BY MARK RYSKI

S A STORE OPERATOR, THERE ARE A MILLION First, the advantages. Proponents of ‘up counting’ say things you need to know, but there’s only a few it’s a more accurate way to track store traffic since counts you must know. Store traffic is one of them. generated from people shopping together as a family Every day people visit your store and or group don’t get double counted, instead the group is Awhile some of these visitors will become customers, others counted as a singular ‘up’. Also, since manually counting will leave without making a purchase. These unconverted ups is done by store personnel, there’s no need to buy an visitors represent the missed opportunity in your store, and electronic traffic counting device. Both fair points. if you don’t measure your store traffic, you’ll never even However, manually counting ups has a number of know they came or what your store’s true sales potential is. disadvantages. At the top of the list is accuracy and There’s another thing you won’t know without store traffic consistency. A manual system relies on store personnel to data: how well you’re actually performing. track counts, but this falls apart when the store gets busy and all your associates are serving customers. Also, manual TRAFFIC COUNT VERSUS counting raises the question of what defines an up or count. TRANSACTION COUNT For example, the human counter may deem the store visitor Before we get into the benefits of tracking traffic, we need to to be a ‘tire-kicker’ and not a legitimate count, and then clear up a misconception many retailers have about traffic exclude the count from the total. This may seem harmless counts versus transaction counts. Some retailers believe enough, but it’s not – it’s actually a form of data manipulation. the number of sales transactions provide a close enough Retailers who capture traffic counts manually definitely estimate for store traffic. It doesn’t. To say transaction count have the right idea, but an electronic traffic counter will represents a reliable proxy for store traffic is analogous to provide a more accurate, consistent measure of your store’s saying that ‘hits’ are a reliable proxy for ‘at-bats’ in baseball. traffic and free-up your sales personnel to focus on serving Yes, the two stats are related, but they are not proxies — not customers instead of counting ups. even close. Store traffic is a measure of all the people who visit the CONVERSION: MAKING THE store, including buyers and non-buyers where transactions MOST OF YOUR STORE TRAFFIC obviously only account for the number of buyers. By using Traffic is important because it defines a store’s sales sales transaction counts as a proxy for store traffic, you are opportunity. If 100 people visit your store in a day, you can’t significantly under-estimating how much traffic your store sell to 101 people. Not only is it important for you to know actually receives. Here’s the point: using transaction counts how your traffic is trending – less traffic means fewer sales as a proxy for store traffic will lead to wrong conclusions; opportunities – but you need to know the traffic count in wrong conclusions lead to bad decisions; bad decisions lead order to calculate your conversion rate. to poor results. COUNTING ‘UPS’ MANUALLY Another approach to counting traffic that’s commonly used in the furniture industry is manually counting ‘ups’. This is especially common in stores where traffic is low. While there are some advantages to counting traffic this way, there are also some real disadvantages too.

30 HGO merchandiser Conversion rate is simply the percentage of visitors who actually purchased and is easily calculated by dividing your sales transactions (or orders written) by your total store traffic count. Conversion rate is an important retail performance metric. Think of conversion rate as a measure of how well your store is collectively serving shoppers. High conversion rate means your store is doing a good job servicing customers; a low conversion rate means you’re missing opportunities. Traffic and conversion data can also help you understand what’s driving sales in your business, and even more importantly, what you need to do to improve sales. driving traffic and average ticket, conversion is the one area THREE WAYS TO DRIVE SALES many retailers have not fully exploited, in part, because If you’re like many retailers, you’re probably thinking the they simply don’t measure it. only thing that really matters is sales – if my sales are going OK, so how do you increase your conversion rates? up compared to last year, who cares about traffic? Here’s why it matters. SCHEDULE STAFF TO TRAFFIC Let’s say your store did $400,000 in sales this month, One of the most important uses of traffic data is for staff which was up from $380,000 you did for the same month scheduling. This is especially true for furniture retailers last year. Great, your sales are up 5%. This seems like an where all sales are assisted by an associate. Knowing when impression result, but you really can’t say for certain without and how many people visit the store, right down to the hour, comparing your sales results to the sales opportunity. will enable you to fine-tune your scheduling and ensure your What if you actually tracked traffic in your store, and labour coverage matches prospect visits thereby putting you learned that store traffic for the month this year was 2,000 in the best position to convert as many shoppers as possible. counts, up 180 counts from the 1,820 counts logged last year I recently completed an analysis of a furniture retailer’s – that’s a 10% increase in store traffic. Sales are up 5%, but hourly traffic patterns. Charts for the average Friday and the sales opportunity got 10% bigger. Curious, isn’t it? A 5% Saturday are shown below. On Fridays, traffic was busier increase in sales looked good until you knew what happened in the morning and peaked at 1pm. In this case, scheduling to traffic. Now that you know the sales opportunity (i.e. more staff during the busier hours from 9am to 2pm will put traffic) increased by 10%, 5% doesn’t look as interesting. this retailer in the best position to maximize conversion. Your sales results are a function of three things: (1) traffic count, (2) conversion rate (i.e., the percentage of visitors who actually make a purchase) and, (3) average sale amount. Without traffic data, you can’t know how many people visited your store or what your conversion rate is since conversion rate is calculated by dividing sales transactions by your traffic count.

Understanding these three simple metrics is important – really important. Not only will these metrics help you understand how big your sales opportunity is and how well you’re performing relative to the opportunity, but it will help you understand what to focus on to perform even better. As in the above example, if this retailer wants to improve her results, she has three ways to do it. One is to drive more On Saturdays, it’s a completely different story. Store traffic into the store. This typically involves some form of traffic starts slow, but ramps up to peak at 1pm, but advertising or promotional spending. Second, increase unlike Friday, traffic remains relatively strong until close. her conversion rate – sell to more of the shoppers already Adjusting staff scheduling to account for this traffic timing visiting the store, and three, increase average sale value – difference can have a material impact on sales over the sell more to buyers. While most retailers have focused on weeks, months and years. }

HomeGoodsOnline.ca 31 traffic and conversion data, I learned our promotions were way more effective than the sales results indicated. We were great at driving traffic to the store; we weren’t as good at converting traffic into sales. Without traffic and conversion data I could never have understood this. Forget about ‘promote and hope’ – that’s just not good enough today.

FORECASTING AND PLANNING: How is your store traffic trending? How are your conversion rates 4trending? We all know crystal balls don’t exist, but historical traffic and conversion trend data can help you plan and forecast in a significantly more meaningful way than merely looking at sales or transactional data. For example, if your store traffic is trending up months in a row but conversion rates are sagging, you might consider increasing your staff count or think about the efficacy of the staff that you have – traffic and conversion data will give you an entirely different perspective on your business and importantly the decisions you make in the future.

To the retailers who say, “I don’t need traffic counters…I CREATING ACCOUNTABILITY: How often have you know when my store is busy!” I say categorically, you don’t – heard store personnel say, “sales were slow because not if you don’t actually track traffic in your store. I do agree 5the store was dead.” They may be right, it’s possible that your ‘gut’ sense of it is directionally close, but there’s no the store was indeed dead, but instead of accepting this substitute for actual data. subjective opinion, why not look at the actual data? It Staffing to traffic is one of the most important uses for never ceases to amaze me, or the retailers I work with, just traffic data, but it’s not the only one. Here are five more for how much traffic their stores actually receive compared you to consider. to what they thought or felt it was. This happens because store personnel can’t help but be influenced by their own FIVE REASONS RETAILERS perceptions. It may not feel busy to the associate, but that’s SHOULD TRACK TRAFFIC AND often just his or her perception. Traffic data puts everyone MEASURE CONVERSION on the same page and creates a sense of accountability Beyond staff scheduling, there many more reasons retailers among the store team. The question becomes less about should track store traffic and measure conversion rates, here how much traffic there was as it is about what the store team are five of the most important that should be considered. did with the traffic they actually did have. Without traffic data, you’ll always be guessing. UNDERSTANDING SALES DRIVERS: as described above, knowing what is driving your sales results is FORGET ANALYTICS, 1critical if you hope to improve results. It’s not enough IT’S COMMON SENSE to know if sales are up or down year-over-year, you need When I talk to retailers about traffic data, some of them to know why. Having store traffic and conversion data fill say they don’t have the time or interest in becoming a data in two critical missing pieces of information every retailer analyst – they already have too much data! As someone should know. who has spent a lifetime working in retail, I completely understand. However, in the world we live in today, no SPOTTING MISSED OPPORTUNITIES: sags in retailer can rely solely on gut instincts and sales data. conversion rate are tell-tale signs you’re missing Knowing how many people visit your store and when, 2opportunities and it behooves every retailer to know isn’t just data, it’s basic, common sense information every when these missed opportunities are occurring. Every day, retailer needs to understand – regardless of your size or shoppers visit your store and leave without buying. Knowing category and especially in the furniture category where the how often this is occurring and precisely when will enable average transaction value is so high. you to plug the conversion leaks and sell more. Retailers need to think of their store’s traffic as a precious, non-renewable resource, and like anything precious, you MEASURING MARKETING IMPACT: Did your should keep track of it. HGO promotion work? It’s an easy enough question, but 3really hard for most retailers to answer. It’s exactly MARK RYSKI is the author of Conversion: The Last Great the question that led me to traffic and conversion analytics Retail Metric and When Retail Customers Count. He is also when I was the marketing manager for a retail store decades the founder and chief executive officer of the Edmonton-based ago. Sales alone are not a good measure of success. Using HeadCount Corporation (www.headcount.com).

32 HGO merchandiser INDUSTRY CALENDAR

July 30 to August 3, 2017 August 27 to 30, 2017 LAS VEGAS MARKET ALBERTA GIFT FAIR World Market Center Canadian Gift Association Las Vegas, Nevada Edmonton Expo Centre lasvegasmarket.com Edmonton, Alberta cangift.org August 13 to 16, 2017 TORONTO GIFT FAIR October 1 to 3, 2017 Canadian Gift Association ANNUAL CONVENTION International Centre MEGA GROUP Toronto Congress Centre Mississauga, Ontario megaconvention.ca cangift.org October 14 to 18, 2017 August 15, 2017 HIGH POINT MARKET CHFA ANNUAL High Point, North Carolina GOLF CLASSIC highpointmarket.org Canadian Home Furnishings Alliance November 16 to 18, 2017 Caledon Woods Golf Club ANNUAL CONFERENCE April 22 to 26, 2017 May 26 to 28, 2017 Bolton, Ontario QUEBEC FURNITURE HIGH POINT MARKET CANADIAN FURNITURE SHOW chfaweb.ca Manufacturers Assn. High Point, North Carolina Quebec Furniture Ritz-Carlton Hotel highpointmarket.org Manufacturers Assn. August 20 to 23, 2017 Montreal International Centre PRIMETIME afmq.com/en May 25, 2017 Mississauga, Ontario Cantrex Nationwide CHFA AWARDS GALA canadianfurnitureshow.com Sands Expo November 29 to 30, 2017 Canadian Home Furnishings Convention Center IIDEX Alliance June 8 to 11, 2017 Las Vegas, Nevada Interior Designers of Canada Universal Event Space TUPELO FURNITURE MARKET nationwideprimetime.com Metro Toronto Convention Vaughan, Ontario Tupelo, Mississippi Centre - North chfawards.ca tupelofurnituremarket.com iidexcanada.com

Pages 2-3 Page 7 Page 15 Page 23 Phoenix AMD International Canadian Furniture Show Magniflex Zuo Canada 41 Butler Court 101-1111 Saint-Urbain 1000 5th St., Suite 220 450 Port Royal O., Bowmanville, ON L1C 4P8 Montreal QC H2Z 1Y6 Miami Beach, FL 33139 Suite 402 T: 800.661.7313 T: 514.866.3631 T: 905.481.0940 Montreal, QC H3L 2B8 phoenixamd.com canadianfurnitureshow.com magniflex.com T: 514.382.6661 zuomod.ca Page 5 Page 11 Pages 18-19 Stearns & Foster Zucora Serta Canada Page 29 Tempur Sealy Canada 552 Clarke Road 40 Graniteridge Road, Protect-A-Bed 145 Milner Avenue London, ON N5V 3K5 Unit #2 1500 S. Wolf Road Scarborough, ON M1S 3R1 T: 800.388.2640 Concord, ON L4K 5M8 Wheeling, IL 60090 T: 800.268.4414 zucora.com T: 800.663.8540 T: 519.822.4022 stearnsandfoster.ca sertacanada.com protectabed.com Page 13 Tempur-Pedic Page 21 Page 34 Tempur Sealy Canada Retail Sales Home Goods Online 145 Milner Avenue Professional Awards P.O. Box 3023 Scarborough, ON M1S 3R1 rspawards.com Brighton, ON K0K 1H0 T: 800.268.4414 T: 613.475.4704 tempurpedic.ca homegoodsonline.ca ADVERTISERS’ INDEX ADVERTISERS’

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