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feature stories

10 SUSTAINABLE SOURCING

When speaking about sustainability in the furniture sector, forest certification often comes up. Understanding what certification means and why it matters is a rather complex matter. Nick Johnson of the Sustainable Forestry Initiative addresses the most common questions from furniture makers.

6 BETTER SAFE THAN SORRY

Many businesses don’t know about competition law. For those that do, it can be difficult to understand how it applies to their business. In recent years, two companies in the home goods sector have been investigated by the Competition Bureau. 32

FRAMING THE FUTURE

Artificial intelligence is transforming visual content, giving retailers the ability to create dynamic product images. However, as with any advancing technology, there are unique challenges and considerations.

18 FEEDBACK AT YOUR FINGERTIPS

A receipt can be more than a proof of purchase. A survey link placed on this small piece of paper can gather feedback from customers. But while convenient, receipt surveys don’t glean the most valuable consumer insights. 36

NEXT-GEN SHIPMENT HANDLING

In the world of complex supply chains, freight costs can really add up. Freight invoice auditing is a tool that can help furniture importers and exporters protect their bottom line by providing a financial check up of shipping operations.

THE DEAL ABOUT NO DEAL

Fall is full of change. Tree leaves turn colour as they prepare to shed. Darkness comes sooner as the days grow shorter. The weather is cooler as the sun’s rays are less concentrated due to the Earth’s tilt. Like the temperature that can be unpredictable in this season, Canada-U.S. trade tensions are heated once again. This after simmering in recent weeks when the two countries were “making progress” in negotiations, said Prime Minister Mark Carney, and the Canadian envoy reported the “contours” of a first-step agreement were taking shape. Ontario Premier Doug Ford’s anti-tariff ad that took aim at U.S. trade policy using historic clips from former president Ronald Reagan brought those discussions to a stop, after drawing the ire of Donald Trump. Often labelled erratic, since his decisions seem to be driven by strong emotions, Trump indefinitely terminated talks, effectively plunging them into peril, and additionally vowed to impose a 10 per cent extra import tax for Ford’s failure to pull down the controversial broadcast sooner. Though thin on the details of the tariff hike, including what it would apply to and when it would take effect, Trump’s two-fold declaration is another in a string of setbacks for Canada. However, his latest ploy to kick the legs out from under the negotiating table may be just a way to put pressure on this country. If anything is certain, it’s that change is certain — Trump’s stance today will shift, it’s simply a matter of time.

Amid the ongoing trade dispute, High Point Market returned for its second showing this year. Like the spring edition, tariffs were much talked about, and perhaps even more so since certain furniture products imported into the United States are now subject to the 25 per cent duty that came into effect Oct. 14. Still, the Canadians who ventured to the world’s largest furniture expo saw opportunity amid the headwinds. Four homegrown retailers shared what they were looking forward to and most excited to shop before heading to High Point, N.C. Their responses can be read in our Observations column.

To begin, we’ve added another section, Legal File, to the magazine, which explores specific legal issues in more detail. This edition’s focus is competition law — why it matters and how to remain in compliance with Canada’s Competition Act, to reduce the risk of breaking the law.

Our profile, better known as In Focus, moves away from being people/company-centric this issue to spotlight forest certification. Nick Johnson of the Sustainable Forestry Initiative answers the most common questions received from furniture makers, providing clarity about protective processes relative to species and natural communities.

As always, if interested in seeing a particular topic covered in-depth, or you have a compelling story to share that will resonate with our readers, please contact me at claret@mediaedge.ca

Clare Tattersall

PUBLISHER

Kris McFadden krism@mediaedge.ca

PRESIDENT Kevin Brown kevinb@mediaedge.ca

GRAPHIC DESIGNER

Thuy Huynh-Guinane roxyh@mediaedge.ca

PRODUCTION COORDINATOR

Ines Louis Inesl@mediaedge.ca

PROGRAMMATIC

ACCOUNT MANAGER

Rhea Sood rheas@mediaedge.ca

EDITOR

Clare Tattersall claret@mediaedge.ca

ART DIRECTOR

Annette Carlucci annettec@mediaedge.ca

CIRCULATION

Adrian Holland circulation@mediaedge.ca

DIGITAL MARKETING DIRECTOR

Abhinav Dadarkar abhinavd@mediaedge.ca

SOCIAL MEDIA DIRECTOR

Steve Chester stevec@mediaedge.ca

Home Goods Merchandiser is published four times annually — Spring, Summer, Fall and Winter — for Canada’s bigticket home goods industries. Subscriptions are free to qualified participants in Canada’s big-ticket home goods industries. Subscribe at www.homegoodsonline.ca. Readers from outside Canada may purchase subscriptions for $40 Cdn. For subscription inquiries, e-mail circulation@mediaedge.ca. Return undeliverable Canadian addresses to: Home Goods Merchandiser 251 Consumers Road, Suite 1020, Toronto, Ontario M2J 4R3

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BETTER SAFE THAN SORRY

What businesses need to know about competition law compliance

BY AMY HILL

WHAT DO LUXURY SOFA INFLUENCER campaigns, ‘Made in Canada’ mattress ads and bids for bulk appliance contracts have in common?

They are all areas where home goods businesses can unknowingly break the law.

Understanding competition law isn’t just about staying compliant — it’s about staying competitive. In Canada, the Competition Act applies to all businesses across the country, from local furniture retailers to national distributors. Knowing the basics can save a business owner from costly legal fees and help protect their company’s brand and bottom line.

That’s where the Competition Bureau comes in. The bureau is the independent law enforcement agency that administers and enforces the Competition Act. Its mandate is to protect and promote competition in Canadian markets, ensuring businesses can compete fairly and consumers benefit from

lower prices, better products and more choice. The bureau does this largely by investigating potentially anti-competitive behaviour, taking enforcement action when necessary, and providing guidance to help businesses comply.

Competition law is designed to maintain a level playing field, so small and medium-sized businesses have a shot at competing and growing in a market. Companies big and small should know the rules of fair play. Some practices that are offside the law include price-fixing, bid-rigging, deceptive marketing and abuse of market dominance.

In recent years, the Competition Bureau has taken enforcement action against two well-known companies in the home goods sector.

SLEEP SET SAVINGS

In 2017, the bureau took legal action against the now-defunct Hudson’s Bay Company (HBC), for its

marketing around certain sale prices and clearance promotions.

Since at least 2013, the company had been making savings claims throughout Canada that did not reflect real discounts. The bureau alleged HBC offered sleep sets at inflated regular prices and then advertised deep discounts on these prices. The Competition Act prohibits retailers from referring to an inflated regular price when advertising sales.

The bureau also alleged HBC made misleading representations in their clearance promotions. HBC implied that the price of sleep sets was lowered to sell the remaining on-hand inventory, but it did not in fact have significant on-hand inventory. Instead, it ordered new products from manufacturers when consumers made purchases.

Claims about limited inventory are a common example of a tactic known as scarcity cues. While businesses can certainly warn consumers a product or service is somehow limited, these claims must be truthful.

To settle the investigation, HBC agreed to pay a $4 million penalty and $500,000 toward the Competition Bureau’s costs.

As part of a consent agreement, HBC also agreed to ensure its marketing of all sleep sets would comply with the relevant Competition Act provisions, and to establish and maintain a corporate-wide compliance program.

FURNITURE AND APPLIANCES MARKETING

In September 2023, the bureau investigated The Dufresne Group (TDG) and its affiliates for similar reasons.

As in the earlier case with HBC, the bureau concluded that advertised deals on certain products were based on inflated regular prices.

It also found TDG and its affiliates gave consumers the false or misleading impression that deals on certain products would eventually end — for example, once a countdown timer expired — when this was not the case. These tactics, called urgency cues, must only be used when they are true.

As part of this settlement, TDG and its affiliates agreed to pay a $3.25 million penalty and $100,000 toward the Competition Bureau’s costs; have their marketing practices comply with the Competition Act; and establish and maintain a corporate compliance program.

SETTING UP A COMPLIANCE PROGRAM

While both incidents relate to large companies, many of the bureau’s cases involve small or medium-sized businesses. One of the most effective

ways for all businesses to protect themselves is by implementing a compliance program, which was part of the HBC and TDG settlements.

A compliance program is a set of policies, procedures and practices supported by the management team to help a business stay on the right side of the law. These programs can be scaled to fit the size and risk profile of the business and don’t necessarily need a lot of resources to be effective.

The benefits of a compliance program include: reducing the risk of legal action and penalties; enhancing reputation and trust with customers and partners; improving operational focus and reducing internal distractions; increasing opportunities to partner with larger companies; and helping businesses spot and report anti-competitive conduct.

The Competition Bureau offers resources, support and opportunities to engage, including webinars with Q&A sessions. Businesses are encouraged to visit the bureau’s online compliance hub, which includes resources to help understand the law, how it applies to their business as well as resources to assist with the development of a credible and effective compliance program. By committing to compliance, businesses can protect their reputations, contribute to a fair marketplace and position themselves for long-term success.

Amy Hill is a senior competition law officer with the Competition Bureau of Canada’s compliance and outreach unit. The unit is responsible for promoting compliance with the Competition Act and other laws administered and enforced by the bureau.

In 2019, Hudson’s Bay Company agreed to pay a $4 million penalty and $500,000 toward the Competition Bureau’s costs to resolve a proceeding that related to advertising and pricing practices for sleep sets.

LAST FALL,

THE

CANADIAN REAL ESTATE

Association (CREA) predicted 2025 would be a recovery year in resale housing markets, fuelled by pent-up demand and lower interest rates. That forecast would have seen national home sales once again top the 500,000 mark, and the average price of those sales return to the $700,000 range.

By mid-season, the rebound appeared to be underway. At 2024’s close, sales were up 10 per cent from the third quarter and stood among the stronger quarters for activity in the last 20 years, not accounting for the pandemic.

Then, in early 2025, Donald Trump was re-sworn backintothe White House, and the trajectory of Canada’s housing market changed. Tariff chaos and economic uncertainty returned many homebuyers to the sidelines, taking particularly large bites out of activity in British Columbia and Ontario, while putting additional downward pressure on prices.

One year from that original forecast, CREA has lowered its outlook for 2025, and projected that 2026 will now be the rebound year. This is based off recent home sales data, which has shown a steady upward climb since March, suggesting the long-anticipated return of buyers into the market was likely only delayed and dampened, but not derailed.

Some 473,093 residential properties are now expected to trade hands via Canadian MLS systems in 2025, representing a 1.1 per cent decline from 2024. The national dip is the result of forecast declines in British Columbia (-4.1 per cent), Alberta (-6.8 per cent) and Ontario (-3.7 per cent), slightly offsetting gains elsewhere. Transactions in Quebec are anticipated to rise an impressive 9.1 per cent year-over-year, followed by Prince Edward Island (+5.8 per cent) and Newfoundland (+5.4 per cent).

The national average home price is predicted to slip by 1.4 per cent on an annual basis to $676,705 in 2025. That said, only British Columbia and Ontario are projected to see declines in average home prices this year, down 3.1 and 3.4 per cent, respectively. But the combination of these drops, along with fewer sales in those expensive provinces, is enough to offset price gains in the range of four to eight per cent in most of the rest of the country.

In 2026, national home sales are forecast to rebound by 7.7 per cent to 509,479 — the highest

level for activity since 2021, though still well-below that peak and slightly under the 10-year average. Historically, national home sales have only ever cracked the half million mark seven times, with the first instance back in 2007.

The national average home price is predicted to increase by 3.2 per cent to $698,622 in 2026. This would mark the sixth straight year where the national average home price has hovered around the $700,000 range.

THE BUYER POOL

According to a recent Royal LePage survey, 13 per cent of Canadian adults say they are actively working toward the purchase of their first residential property within the next two years. Of this group, a small proportion say they are planning to make a purchase within the next year; the majority (82 per cent) have farther out plans of 12 to 24 months.

When asked what stage of the purchasing process they’re in, 19 per cent said they are actively viewing homes listed for sale in person. Another 19 per cent said they are working with a real estate agent. (Respondents were able to select more than one answer.)

“Interest rates are trending lower and prices have stabilized or even softened in some markets, creating favourable conditions for long-awaited entry into home ownership, especially in costly cities like Toronto and Vancouver. Yet, hesitation remains,” says Phil Soper, president and CEO of real estate brokerage Royal LePage. “For some, ongoing economic uncertainty, particularly surrounding trade relations with the United States, is prompting them to hold off until there are signs of stability. Buying a home is the biggest financial decision most people will ever make, and first-time buyers naturally want to do so with as much certainty as possible.”

Soper adds that other first-time buyers are choosing to wait in hopes of securing a better deal. With the potential for further rate cuts from the Bank of Canada this year, those in no rush to purchase now are taking a methodical approach — building up their savings and deliberately planning their entry into the market when they feel the timing is best for them.

In another Royal LePage survey, more than half of Canadians who currently own residential property in the U.S. say they are planning to sell within the next year due to the Trump administration (64 per cent), personal and financial reasons (33 per cent), or increasingly extreme weather conditions (five per cent). Almost onethird of those who have recently sold or are planning to sell have said they intend to reinvest their proceeds into the Canadian real estate market.

“Across sectors, Canadians are increasingly choosing to support domestic businesses, prioritize homegrown products and invest in their own communities. This mindset extends into real estate,” says Soper. “Many who are selling their U.S. properties are opting to bring that capital back home, with some reinvesting in local recreational property, reinforcing confidence in the long-term strength and stability of Canada’s economy.”

It’s not just Canadians reconsidering their ties to the U.S. — many Americans are looking north as political tensions escalate at home.

Visits originating from the U.S. to royallepage.ca have spiked significantly during key political events over the past year. During the second week of June, for instance, U.S.-based web traffic jumped 116 per cent year-over-year and 84 per cent week-over-week, coinciding with widespread protests in Los Angeles, following Immigration and Customs Enforcement raids.

This is not the first time this behaviour has emerged. Following the 2024 U.S. presidential election, web traffic from American users increased significantly. On Nov. 6, the day after Trump was elected president for a second term, website visits originating from the U.S. jumped by 52 per cent.

“We’re seeing a clear and growing trend: Moments of political unrest in the United States are directly correlating with surges in interest from American visitors to our website,” says Soper. “These spikes suggest a growing number of Americans are exploring Canadian real estate as a safe and stable alternative — even if the reality of being granted residency is more complex than a simple home search. It’s a powerful signal that Canada’s reputation as a secure and welcoming place to live and invest continues to resonate beyond our borders.”

Sustainable Sourcing

Answering furniture makers’ questions about forest certification

ARE YOU NEW TO FOREST CERTIFICATION?

Or just looking to make sense of the different standards and how your furniture brand can benefit?

Canadian Wood sat down with Nick Johnson, director of sustainable supply chains with the Sustainable Forestry Initiative, an independent thirdparty certification standard in North America. He addressed the most common queries furniture makers have about forest certifications.

Why should furniture brands care about forest certification?

Johnson: People and organizations are increasingly seeking solutions that not only reduce negative environmental impacts but ensure positive contributions to the long-term health of people and the planet. Forest certification utilizes a set of standards to ensure forests are managed sustainably to protect the environment,supportcommunitiesandpromoteresponsible resource use. Forest certifications have become ahighlytrustedsolutiontomeetthegrowingdemand for wood products from sustainably managed forests. Companies certified to these standards conserve wildlife and water, practice climate-smart forestry and support relationship building with Indigenous Peoples. Whether a designer, manufacturer, retailer or consumer, supporting forest certification programs and fabricating furniture made from certifiedforestproductsisanimpactfulthingyoucan do to support healthy forests now and into the future. In doing so, you communicate to your customers that your brand cares about the environment.

What is forest certification? And what is meant by chain of custody?

Johnson: Forest certification is a voluntary, market-based instrument, implemented through two separate but related processes: forest management certification and chain of custody certification. Forest management certification ensures specific forested lands are managed sustainably, balancing environmental, social and economic factors. In Can-

ada, forest certification complements a strong existing legal and regulatory framework that requires forest resources to be managed responsibly. Forest certification standards typically contain requirements to protect water quality and biodiversity, including species at risk, promote climate-smart forestry, fire resilience and awareness, and recognize and respect Indigenous Peoples’ rights as they apply to various lands and jurisdictions.

Chain of custody certification applies to any organization that sources, processes, manufactures, handles, trades, converts or prints forest-based products. They must have processes, such as inventory control, employee training, comprehensive reporting and invoicing, so they can track the volume of forest resource from certified forests or non-certified forests, and make claims based on the forest fibre they receive. Chain of custody standards also have requirements to ensure certified organizations avoid sourcing from controversial sources, which include illegally logged and deforested areas. Chain of custody standards can be applied in any country worldwide that imports or sells wood products from certified forests.

Which forest certification systems should furniture makers look for when sourcing wood? How are they different from one another?

Johnson: There are many credible forest certification standards. In particular, the Sustainable Forestry Initiative (SFI), Programme for the Endorsement of Forest Certification (PEFC) and Forest Stewardship Council (FSC) all can provide assurance that wood products are sourced from sustainably managed forests. Globally, SFI meets PEFC’s internationally recognized benchmarks for responsible forestry. This endorsement ensures SFI-certified products are accepted globally as sustainably sourced, allowing themtocarrythePEFClabelininternationalmarkets. While there are some small differences between each certification program, the three used in North

America all promote principles, criteria and objectives based on sustainable forest management, including reforestation, reasonable harvesting quotas and protection of wildlife habitat, soils, water and surrounding ecosystems.

As a furniture designer or industry professional, the best thing you can do is request the wood be certified to any of these credible forest certification programs. Many industry professionals have forest policies that give preference to wood products that are certified to any of these standards.

Do certified forest products cost more? And how can a furniture maker verify their wood supplier is certified?

Johnson: Typically, there is not an additional cost associated with using certified forest products. However, each manufacturer or supplier is different in how they market their certified forest products. The easiest way to verify the certification status is to request an on-product label. All forest certification programs also have an online searchable database to find suppliers.

What are the benefits of using certified forest products in furniture fabrication?

Johnson: Sourcing wood from certified forests demonstrates to customers a commitment to producing furniture responsibly. Using and promoting your use of certified forest products can also boost brand equity and even attract more customers. Recent market research shows that more and more people are looking for responsibly sourced wood products, especially when they come with proper certifications. This

shift seems to mirror the growing environmental awareness among consumers, who are prioritizing sustainable choices for their homes. What’s interesting is that many are willing to spend more, especially when products are labelled and they are given clear, reliable information about sustainable forest management. That’s why it’s crucial to back up those claims with certifications that are globally recognized.

Do consumers really trust or even care about environmental certifications? If so, how can furniture makers communicate the value of certified forest products?

Johnson: More and more consumers care about the impact of their buying decisions and want to ensure the products they are purchasing support positive environmental outcomes.

In one study, more than 85 per cent of consumers expressed a desire to avoid products that harm the environment and related biodiversity. Furthermore, consumers increasingly value sustainability claims, with 95 per cent believing their personal actions can help reduce unsustainable waste, tackle climate change and protect wildlife.

There are many ways to communicate the value of certified forest products to customers. Organizations do this through ads, point-of-purchase materials, sustainability or environmental, social and governance reports, and their websites. Certification programs and their websites offer a wealth of information you can share with buyers.

This article was originally published on Canadian Wood’s website www.canadianwoodbc.com. Canadian Wood promotes and supplies information about softwood products from British Columbia to wood industry professionals, and connects furniture manufacturers, designers and wholesalers with leading softwood suppliers from B.C.

In Canada, there are three third-party certification systems for sustainable forest management: Sustainable Forestry Initiative, Programme for the Endorsement of Forest Certification and Forest Stewardship Council.

Sustainable Forestry Initiative’s Nick Johnson.

By Corrie-Ann Knell

Discovering the path

At Daley’s BrandSource in Fredericton, N.B., 20-year-old Duncan Briand is only six months into his ﬁrst retail sales role. He’s young, ambitious, and learning as he goes— but he also has something the home furnishings industry seeks; passion, people skills and willingness to learn.

“I’ve always been very good with people,” Briand explained. “I enjoy talking to people and establishing connections. That’s really what drew me to sales—the ability to talk to people for a job.”

For him, the showroom feels comfortable. “It can be slow at times, but all in all it feels natural. I don’t end up going home with a bad day,” he said.

Duncan’s story illustrates what happens when a fresh face, eager to learn, is given the right environment: the makings of a career professional. For an industry grappling with labour shortages and high turnover, his mindset is a green ﬂag—a reminder that with the right structure, retail can be more than just a job.

Like many young people, Duncan didn’t plan on retail. His path meandered through engineering aspirations and even a stint in restaurant kitchens. “I was going to go into culinary school,” he said. “But after a year and a half working in a kitchen, I realized it ruined cooking for me. So, I had to ﬁgure out where to go from there.”

Sales clicked because it matched his natural strengths. “I’ve always enjoyed meeting people, talking to people, establishing connections,” he explained. “That’s what really drew me to it.”

The home furnishings industry often struggles to retain young hires and convince them that retail can be a career. Duncan reﬂects both sides of that reality: while he values his start on the sales ﬂoor, he ultimately aspires to transition into a role as a manufacturing sales agent.

“My goal is to end up as an on-the-road salesman,” he said. “Ideally for a distribution company, or a furniture or appliance brand. I want to make connections with the people selling the product.”

The appeal towards this career trajectory is due to its autonomy – being able to set your own schedule and not being “stuck behind a counter.” Not to mention, the opportunity to grow connections, take on multiple lines of goods and increase one’s overall earning potential.

He’s also intrigued by in-home consulting roles that mix product knowledge, design and mobility. “Anything where I’m more on the move, seeing different people, that might do it for me,” he said. “I like variety. I like things happening.”

Feedback gave me conﬁdence. “ “

That mindset should give the industry pause. How can we make the showroom ﬂoor more exciting for energetic young salespeople?

Engaging your team

Sometimes, with ﬁnancial restrictions promotion is beyond the scope. However, incentivizing via projects and events can be a great way to energize your team.

Tasking individuals on the ﬂoor with event planning, social media production as well as, opportunities for in-home consultations and merchandising efforts can go a long way in engaging and retaining a team.

And when their efforts are successful – that’s empowering! Additionally, the ability to visit other retail locations or participate in industry events can substantiate a culture of growth, build institutional knowledge and afﬁrm legitimacy to a career in retail sales.

Training for Success

When Duncan started, training came in many forms: mentoring from experienced co-workers, two focused hours with a 30-year appliance manager, online brand modules, and, crucially, face-to-face demonstrations from manufacturer reps.

“Anything where I’m talking to a person is the best way for me to learn,” he said. “If I do train online, I always walk down

to the appliance section afterward and look at the products. I go over the features in my head. That’s when it sticks.”

Hands-on training proved the most powerful. “The day after a rep showed me the craftsmanship on a mattress, a customer asked me about it. I ﬂipped it over the same way, explained what I’d been shown, and it closed the sale,” he recalled.

That moment crystallizes the opportunity: invest in real, tactile training, and knowledge becomes conﬁdence. Conﬁdence becomes sales. Sales build careers.

The role of feedback

Duncan also thrives on feedback. One recent example stands out: “A mattress rep was in while I was talking with a customer. Afterward he told me, ‘It sounded great—you caught everything.’ That feedback gave me conﬁdence. It proved I knew what I was talking about, and it made it easier to do it again.”

For new hires, feedback isn’t optional—it’s fuel. Validation for effort builds assurance, and encourages skill enhancement. Without it, young RSAs can become apathetic. With it, they gain momentum and conﬁdence.

The industry’s opportunity

Duncan is candid about what would help young associates like him thrive: accessible training, an engaging environment, and opportunities for career growth.

“It’s hard to ﬁnd somewhere that will take you on without experience,” he said. “So having easy access to information— what jobs are out there, what people are looking for—would make a big difference.”

His words underscore the gap between potential and profession. Too often, retail is framed as an interim job. But with structured training, mentorship and career ladders, it can become a recognized career path—one that doesn’t require tens of thousands in tuition debt.

Fresh faces, lasting careers

When asked what advice he’d give to other young people starting out, Duncan’s answer was simple but telling: “Keep applying. Find somewhere that will take you in and teach you everything you need to know—and be willing to learn.”

That statement sums up the two-way contract the industry must embrace. Fresh faces bring energy, adaptability and a clean slate. Employers must provide the education, mentorship and opportunity to shape them into professionals.

As Duncan sees it, “There are options within sales. It’s more than just a job in a store. For someone who likes to learn and likes to talk, it can be really rewarding.”

Only six months’-in and he is already a reminder of what’s possible. With passion, trainability and the right support, fresh hires like Duncan can become the next generation of sales leaders.

It’s up to the industry to take the clean slate—and draw a future worth staying for.

Neglecting the digital domain

Why ignoring e-commerce in today’s market could cost you BY DARRELL DAHLBERG

THE FURNITURE INDUSTRY IS AT A TURNING point. The rapid shift to online shopping is no longer a trend — it’s the new normal. Consumers are increasingly using e-commerce for their furniture needs and retailers who fail to adapt risk being left behind. With online sales growing by more than 10 per cent annually, according to various sources, and the next 24 to 36 months poised to be a game-changer for the industry, now is the time for furniture retailers to embrace the digital revolution.

A MARKET REALITY

Over the last decade, online shopping has become an essential part of consumer behaviour. The Covid-19 pandemic accelerated this trend, forcing many brick-and-mortar retailers to establish an online presence just to survive.

Today, consumers expect convenience, variety and competitive pricing — all of which e-commerce platforms provide.

According to industry research, e-commerce sales are projected to exceed $7 trillion globally by 2026. In the furniture sector specifically, online retail has become a significant driver of growth. Major players like Wayfair, Amazon and Ashley Furniture have already established a dominant presence online, leveraging userfriendly websites, augmented reality tools and streamlined logistics to attract and retain customers.

For smaller and mid-sized furniture retailers, the message is clear: Without an online presence, you are not just missing out on an opportunity — you are actively losing ground to competitors who have already adapted.

CONSEQUENCES OF FAILING TO ACT

For retailers hesitant to invest in e-commerce, the risks far outweigh the perceived barriers.

Furniture retailers that fail to establish an online presence are seeing their market share eroded by digitally native competitors. Consumers are searching for furniture online, comparing prices and reading reviews before making purchasing decisions. If your business isn’t online, your competitors will capture those sales.

E-commerce enables businesses to reach beyond theirlocalcustomerbase.Withonlinesales,aretailerin asmalltowncanattractbuyersfromacrossthecountry or even globally. Without an e-commerce platform, your potential for growth is limited to foot traffic and local advertising.

Today’s customers expect seamless shopping experiences, whether in-store or online. Without a digital storefront, you lose valuable touchpoints for engaging with customers via personalized recommendations, targeted promotions and efficient customer service.

KEY TRENDS SHAPING THE INDUSTRY

While online shopping is already a dominant force, the future holds even greater opportunities for innovation in furniture e-commerce.

More consumers are making purchases via mobile devices, meaning retailers must optimize their websites for mobile-friendly browsing and fast checkouts.

Augmented reality and virtual reality allow shoppers to visualize furniture in their homes before making a purchase, increasing confidence and reducing return rates.

Eco-conscious consumers are looking for sustainable furniture options and the ability to customize products online is becoming a key differentiator for retailers.

Artificial intelligence-driven recommendations and chatbot-assisted shopping experiences are enhancing the customer journey, providing tailored product suggestions based on browsing and purchase history.

STEPS FOR A SUCCESSFUL TRANSITION

Transitioning to e-commerce may seem overwhelming but with the right approach, it can be a smooth and rewarding process.

To begin, evaluate your online readiness. Conduct a thorough assessment of your current business operations. Identify products that are best suited for online sales. Ensure your inventory and logistics can support an e-commerce platform.

Next, choose the right platform. Decide whether to build your own website or partner with existing marketplaces like Amazon or Wayfair. Popular e-commerce platforms like Shopify, WooCommerce and Magento offer customizable solutions for furniture retailers.

Be sure to prioritize the customer experience. A user-friendly website with high-quality images, detailed product descriptions and seamless navigation is essential. Offer multiple payment options and a secure checkout process. Ensure fast, reliable shipping and easy returns to enhance customer trust. Finally, invest in digital marketing. Implement search engine optimization strategies to improve onlinevisibility.Utilizesocialmediaadvertising,e-mail marketing and influencer collaborations to drive traffic to your store. And leverage retargeting ads to re-engage potential customers who browse your products but don’t complete a purchase.

DON’T GET LEFT BEHIND

Retailers who fail to adapt to e-commerce risk losing customers, revenue and relevance in an increasingly digital world.

The goods news is it’s never too late to start. It’s not about going nationwide to sell furniture, but tokeepitwithinthe100-mileradiusforpurchase.Itcan becomeadirectshipopportunity,a‘buyonline,pickup at store’ sale or even buy online and have it delivered.

By establishing an online presence, optimizing customer experiences and leveraging digital marketing strategies, furniture retailers can future-proof their businessesandtapintothegrowinge-commerce market. The time to act is now — don’t let your business be left behind.

Darrell Dahlberg is an e-commerce expert and founder of Orbit Interactive, a digital consultancy specializing in helping furniture retailers transition into the online marketplace. With years of experience in digital strategy and online marketing, Darrell has helped numerous businesses expand their reach and increase their revenue through e-commerce solutions. He can be reached at darrell@orbitinteractive.com.

“Artificial intelligencedriven recommendations and chatbot-assisted shopping experiences are enhancing the customer journey.”

FEEDBACK AT YOUR FINGERTIPS

Point-of-sale receipt surveys offer quick consumer insights

but have many shortcomings

BY BOB PHIBBS

YOUR CUSTOMER SURVEYS ARE LYING TO YOU. It’s harsh but true.

Those QR codes and website URLs printed on every receipt?

The feedback they generate is about as reliable as asking your mother if she likes your cooking.

Receipt surveys attract the most convenient feedback — not the most valuable. You’re more likely to hear from loyal customers than one-time visitors, yet it’s the ones who never return that often have the most useful feedback.

And here’s the kicker. Many retailers have made their surveys so needlessly long or aggravating that the survey itself reflects poorly on the brand.

To truly understand what’s happening in your store, consider mystery shopping. Not surveys. Not hoping customers will tell the truth. Just objective eyes that see what you can’t when you’re not there.

RECEIPT SURVEYS OFTEN MISLEADING

There are distinct types of response bias that show up again and again in receipt surveys. According to The Paradox of Customer Surveys, most receipt surveys collect feedback from two extremes: customers who are highly satisfied (happy helpers) or extremely dissatisfied (seriously ticked off).

Happy helpers are customers whose cashier was trained to circle the survey URL, mention the prize and ask them to fill it out right then. Those shoppers are standing at your counter with their phone out, clicking through as fast as possible to qualify for whatever you’re giving away for their feedback. They’re not paying attention to the actual store experience.

Then there’s the seriously ticked off who are willing to spend 10 minutes telling you exactly what went wrong.

What’s missing?

The average customer who had an okay experience. They’re not filling out your survey. And if the customer experience felt mediocre, they’re not thinking about your store at all.

Then there’s the use of leading questions — one of the most widespread issues in a recent study, appearing in 92 per cent of the surveys analyzed. Take the question: How satisfied were you with

our excellent customer service? It doesn’t measure satisfaction; it rigs the answer and is not real feedback.

HOW BIAS DESTROYS DECISION-MAKING

What happens when decisions are based on biased survey data?

You think your checkout process is fine because the people who bothered to rate it gave it high marks. Meanwhile, customers are abandoning carts and going to competitors because your actual checkout process is slow and frustrating.

You also believe staff is providing great service because your surveys say so. But those surveys came from customers who were coached to respond positively or people so angry they had to vent. The middle ground, where most of your customers reside, is invisible to you.

Most surveys suffer from uneven customer representation, which leads to incorrect data. You can’t manage what you can’t measure accurately.

CAPTURING MISSED OPPORTUNITIES

Mystery shopping provides what receipt surveys can’t — the unfiltered customer experience, free from expectation management.

Mystery shoppers document the real greeting experience, not what customers think they remember happening.

Surveys simply ask if customers felt informed. Mystery shops provide exact information on what product knowledge was or wasn’t relayed by staff.

Surveys ask if the checkout was reasonably fast. Mystery shoppers time it.

Mystery shoppers document store conditions. Customers won’t mention whether a store was clean, well-lit and properly stocked in a receipt survey unless conditions were really bad.

REGULARITY IS A KEY

How often should retailers use mystery shopping versus surveys?

At single locations, once a month is the minimum; bi-weekly is best. Multi-store chains should be mystery shopped every other week per location. For high-traffic or seasonal locations, weekly is recommended during peak periods.

When it comes to receipt surveys, stop doing them entirely as they’re ineffective. If you feel absolutely compelled, limit to annual relationship surveys to established customers and post-service surveys only after significant interactions like major purchases. Be sure not to exceed three questions.

THE NUMBERS DON’T LIE

Let’s talk money. You’re probably spending $200 to $500 each month on survey platform subscriptions, and another $300 to $800 on survey incentives and prizes. Then there are the countless staff hours managing survey responses and following up.

With mystery shopping, expect to invest $200 to $400 per store per month for various programs. More detailed reporting or longer sales cycles may push that higher, but the return on investment more than covers it.

In return, you’ll receive objective data from trained observers who follow specific criteria, detailed narrative reports and actionable insights you can actually use to improve operations.

Mystery shopping pays for itself if it prevents losing just two to three customers per month to service issues that you would not have otherwise caught. Most retailers lose more than that to problems they are unaware of.

CREATING AN EFFECTIVE PROCESS FLOW

Howdoyouimplementmysteryshoppingthatactually works?

To begin, define your service standards. Train staff really well. Don’t mystery shop until you know what

you want measured.

Next, choose a reputable mystery shopping company. Check industry association membership. Afterward, create black and white survey questions tiedtoyourstandards.Ifanemployeescorespoorly,the managerneedsto telltoallemployeeswhatneedstobe done differently, not just the one who scored low. Then, set an appropriate frequency. More locations and higher risk tolerance require more frequent shops. Finally, establish proper review processes. Reports get reviewed privately with supervisors first, followed by employees. These are then shared with teams (with identifying details removed).

STOP GUESSING, START MEASURING

You can burn through a neighbourhood with bad word of mouth faster than ever. Social media, review sites and group chats make poor service spread like wildfire.

Receipt surveys won’t alert you in time. They’ll show positive results until it’s too late to notice the churn. Mystery shopping meets various businesses’ specific needs and catches problems while they can still be fixed. It provides an objective view of your training operation that receipt surveys promise but often fail to deliver.

Bob Phibbs, known as the Retail Doctor, is a renowned expert in brick-and-mortar retail. As CEO, he provides international business strategy, customer service expertise, sales coaching and marketing mentorship. An author of three books and motivational speaker, Bob recently expanded his online retail sales training program, SalesRX. This on-demand platform has led 83 per cent of clients to achieve double-digit growth within six months.

Mystery shopping provides businesses invaluable insights into customers’ experiences.

Unlocking your full potential

The $6-billion retail media prize and how retailers can win it BY

ADAM HALIM

‘RETAIL MEDIA’ IS BUZZING AND FOR GOOD reason. But if you’re a retailer who has rolled your eyes at yet another industry buzzword, you’re not alone.

Here’s the truth: Behind the jargon is a real shift in how advertising dollars are being spent. And there’s a multi-billion-dollar opportunity sitting squarely in front of retailers.

THE THIRD WAVE OF DIGITAL ADVERTISING

First came search ads, pioneered by Google. Then came social media ads, dominated by Meta (formerly Facebook). Now comes retail media ads that are poised to overtake them both; however, this time, retailers are driving this forward.

Globally, retail media is projected to hit $239 billion by 2028, surpassing spend on search and social platforms. In Canada alone, this new advertising category is expected to reach $6 billion (about the size of the entire furniture manufacturing industry).

This isn’t a marketing trend. It’s a transformative force in retail and advertising.

NOT JUST ANOTHER CO-OP PROGRAM

For decades, manufacturers have split their marketing budgets two ways. One part goes to retailers to support activities like discounting and merchandising. This is often called co-op, trade allowances and sales performance incentives. The other part goes to media companies to support activities like television, radio and digital ads. This is called advertising spend or brand budgets. Retailers, historically, only had access to the first bucket. Now, they can compete for the second. That’sretailmedia:Anew,profitablerevenuestream that used to go exclusively to companies like Google and Meta. But winning that share isn’t just about offering ad space. It means playing by the rules of media buyers and that’s where many retailers are struggling.

NEGOTIATING RETAIL MEDIA

As retailers start their retail media journey, many assume it is just the digital version of co-op. It’s not. And treating it that way leads to missed opportunities (and frustrated vendor partners).

Here’s what’s happening. A retailer says, “Spend X dollars in retail media and we’ll give you more floor space.” But the brand’s media team isn’t judged on in-store placement; they’re judged on return on ad spend, just like when they buy Google or Meta ads. So, they can’t justify the spend if it doesn’t deliver on the metrics they own. The manufacturer may agree in the moment but will simply find creative ways to shift funds from the co-op budget, hurting co-op programs and reducing the appeal of retail media.

What brands need is a clear, performance-driven reason to invest. That means offering targeted reach, transparent measurement and campaign results that compete with digital ad giants.

TURNING DISADVANTAGE TO STRENGTH

Retailers must start acting like media companies if they want to capture the retailer media opportunity. This is especially true for furniture and home goods retailers, which don’t always have the advantage of a robust e-commerce channel. Unlike Amazon or Wayfair,mostsaleshappenin-store,where customers aren’t logged in and activity is hard to track. However, here’s the flip side: Those in-store transactions can be your secret weapon, if you know how to unlock them. Let’s break it down.

Mediabuyersareshiftingadspendintoretailmedia because it offers better targeting and measurement and therefore improved return on ad spend. Digital media buyers love platforms like Amazon’s retail media programs because they offer three things: digital access (ability to serve personalized and targeted content to a customer); precise browsing data (every click, search and scroll is tracked in a logged-in state); and clear transaction visibility (they know exactly who bought what). Physical retailers don’t have these three thingsbydefault.Buttheycancreatethem.Here’show.

The first step is to connect with customers digitally before they visit your store. Most Canadians plan their shopping trips in advance using a digital device. In fact, 89 per cent of consumers pre-shop online before heading to the store, and 78 per cent look for promotions first. A digital flyer gives you digital access and precise browsingdata.Useittocap-

“Media buyers are shifting ad spend into retail media because it offers better targeting and measurement and therefore improved return on ad spend.”

ture shopper intent and serve targeted ads.

The next step is to tie transactions to individuals. To prove ad performance and unlock real return on ad spend, you need to know who bought what. Some ways to do this include loyalty programs, digital receipts, credit card tokenization and third-party providers that match purchases to profiles. Again, your digital flyer helps grow transaction visibility by giving shoppers offers in exchange for their data.

Evensimpletacticslike,“Get$5offwithyoure-mail,” can quickly grow a usable customer database. The key is transparency and respect for the shopper: Offer clear value in exchange for data. Do this right and you’ve built the core capability that makes retail media work: measurable, targeted performance.

THE FUTURE BELONGS TO THOSE WHO ADAPT

Yes, retail media takes effort, it means building new capabilities and it’s a change. But your efforts are not a cost — they are an investment that will generate a return that can dramatically increase profitability.

The retailers who act now, build fast and sell smart will not just survive this shift, they’ll define it.

Adam Halim is senior vice-president of product and marketing at Flipp. In his role, Adam is focused on building products and technology that help people make smart shopping decisions while enabling retailers and consumer packaged goods to influence those decisions through digital merchandising experiences. Founded in 2007, Flipp is a technology platform reinventing the way people make shopping decisions. More than 1,600 retailers and brands in North America partner with Flipp to create, distribute and monetize digital merchandising experiences that influence more than 100 million high-intent shoppers across their journey to purchase.

FIVE MOVES TO MAKE TODAY

Retail media success isn’t about building a tech empire from scratch. It’s about starting where you are and moving fast. Here are five ways to get going.

Align your Teams

If your merchant, marketing and media teams aren’t on the same page, you will struggle to win in retail media. Retail media planning needs cross-functional collaboration and clear, shared objectives. Start small: hold joint planning sessions. Use one campaign as a pilot. Build muscle through repetition.

Track the Invisible

You can’t improve what you don’t measure. Start by tracking transactions — every single one. If you don’t have a loyalty program, partner with someone who can help you build one. Contact loyalty program providers, digital receipt providers or credit card providers to get started.

Leverage What you Already Have

Your digital flyer is a high-traffic, high-intent environment. It may outperform your website in visits and engagement. Use it to serve targeted ads, promote loyalty programs, collect shopper data and bundle promotions with media campaigns. It’s a low-cost, high-impact digital starting point.

Don’t Build it All In-house

You don’t need to launch a fully owned retail media network on day one. There are experienced third-party partners that can start up capabilities quickly and help you learn. Decide what to bring in-house later, once you’ve proven return on investment.

Bundle Smarter

Retail media and in-store programs can be linked but the value propositions are different. Design bundled offers that address both sides: a digital flyer product promotion to drive store traffic; targeted banneradstoboostreach;andsponsoredproductplacementstoincreaseawarenessofpromotions. Give vendors an integrated offer they can’t ignore and measure both sides independently.

THE SECRET TO STANDING OUT

The myth of unique selling propositions and the truth

about compelling value

BY DONALD COOPER

FOR YEARS, BUSINESS SCHOOLS, MANAGEMENT books and marketing consultants have been telling retailers they must create unique selling propositions (USPs). However, it’s not good enough to be unique. In today’s over-supplied, undifferentiated, cynical and fiercely competitive business environment, you need to be compelling.

Unique simply means different and that is not always better. Compelling, on the other hand, means yourtargetcustomerisdrawntoyou.Yourvalue proposition is not only unique but so powerful as well as consistently and joyfully delivered that your target customer feels compelled to do business with you and to tell others about you.

So, forget USPs. You need to create compelling points of difference that will grab your target customer and bring them back again and again; clearly differentiate you from your competitors; make you ‘famous;’ and grow your bottom line.

Is it more work to keep coming up with compelling products, services and experiences?

Of course. But if you don’t, you’re a boring and mediocre commodity competing on price alone and that’s a battle you probably can’t win, profitably.

There are two steps to create compelling value

1Develop a clear understanding of what life’s really like for your target customer. You can’t have a relationship with people you don’t know a lot about. So, set aside a few hours with some of the best people in your business to think and feel like your target customer by answering the following questions.

When your target customer is choosing, buying or using what you sell, what are they really trying to do functionally, emotionally and financially?

What do they want or need to know about what you sell to wisely choose and effectively use or maintain your product?

What do they want or need to know about you to be confident in making a purchase?

What are their concerns and stresses? And what do they fear?

How do they want to feel when they do business with you and when they use or interact with what you sell?

About how much do they expect to pay?

Reach 7000+ ﬂoor covering manufacturers, installers and retailers across Canada through our industry-leading print and digital marketing vehicles!

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To promote your products, service and for general business inquiries, please contact Dan Gnocato at 604 549 4521 or dang@mediaedge.ca.

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“If you don’t, you’re a boring and mediocre commodity competing on price alone and that’s a battle you probably can’t win, profitably.”

Keep in mind that, whatever you sell, people buy with both their minds and hearts. If you’re not marketing and selling intelligently and passionately, there’s a fundamental disconnect between how you sell and how people buy.

Also, today’s technology allows you to know, understand, serve, listen to, have ‘conversations’ and build relationships with customers as individuals.

2Deliver your compelling value. Based on your new and improved understanding of your target customer, commit to deliver compelling value and a consistent and uplifting experience to every customer, at every touchpoint, every time. Specifically, what will you do every day to help your target customer do what they want or need to do; know what they want or need to know; feel how they want to feel; and do all that at a price they’re willing to pay.

Define the compelling value and extraordinary customer experiences that you’ll deliver and the principles you’ll live by. These will make a powerful financial and emotional connection with your target customer.

What products, services, policies, processes, communications and business culture will be required to be compelling?

What will it feel like to do business with you?

How flexible and adaptable will you be to customers’ needs and wishes?

What will you do to be the business they can count on to help them wisely choose, effectively use and have the best possible experience with what you sell?

And what kind of team will you need to make all that happen?

Remember, you can’t create an extraordinary business by hiring ordinary people.

Donald Cooper has been both a world-class manufacturer and an award-winning retailer. Now a Toronto-based business speaker and management coach, he helps business owners and managers rethink, refocus and reenergize their business to create compelling customer value, clarity of purpose and long-term profitability. Donald can be reached at donald@donaldcooper.com.

Creating compelling customer value and experiences clearly differentiates a retailer from their competitors, making them ‘famous’ and growing their bottom line.

FCanada’s Leading Furniture Solution

for Retailers Seeking Design Excellence and Timeless Sophistication.

rom contemporary designs to luxurious traditional pieces, IFD Group is the right choice to create beautiful and sophisticated spaces for every room in the home.

IFD, a leading manufacturer of solid wood furniture based in Mexico, offers a full-service model designed speciﬁcally for North American retailers to meet today’s demands.

IFD produces a comprehensive range of furniture, specializing in artisan-crafted, sustainable pieces made from solid wood offering a unique blend of rustic and modern styles. Each collection is designed with durability, beauty, and market appeal in mind. The use of mango wood in several collections is acclaimed for their exceptional design and award winning quality.

“We use many different species of wood – mainly mango and parota. Teak has been one of our hottest and most popular collections - called the Balam collection – offering unique grains and ﬁnishes,” says Bobby Mulvey, IFD vice president of sales, who oversees a team of 40 across North America. “Quality products and affordable pricing is what sets apart.”

The company’s longstanding commitment to sustainability and eco-friendly furniture has been at the core of IFD’s business for more than 25 years. By using high-quality wood and innovative technologies, IFD ensures that each piece maximizes material eff iciency while minimizing environmental impact.

“We build all our furniture from the tree to the ﬁnished product. We cut our own trees and mill our own lumber. We’re a very sustainable company. We replanted 40,000 trees last year,” says Mulvey.

IFD is not only a supplier but a strategic partner for clients seeking luxury furniture in Canada and the U.S. With four strategically located warehouses in Houston, Chicago, Phoenix and Atlanta, the company can provide fast, reliable shipping to every region of Canada. From Vancouver to Halifax, retailers can reduce lead times and operate with greater ﬂexibility to meet customer needs.

IFD continues to be a leader in the furniture industry with a catalog that is always expanding, offering entirely new collections and new pieces in existing collections to appeal to a wide audience. Be sure to look out for our latest collections at the High Point fall market this October 25-29, 2025.

Whether you’re an independent store or a national chain, IFD Group provides the reliability, speed, and design quality that Canadian furniture retailers need to stay competitive.

For more information about IFD Group and their products and services, please visit www.int-furndirect.com

BRIDGING THE IMAGINATION GAP

The role of artificial intelligence in transforming retail from incremental innovation to industry reinvention BY JAYME JOHNSON

IMAGINE A RETAILER OPERATING ACROSS multiple markets, managing everything from furniture to mattresses and appliances. This retailer struggles with disconnected data systems, making it difficult to anticipate customer needs, optimize inventory or streamline operations. Now, picture the same retailer with a unified digital core using artificial intelligence (AI) — one that integrates data seamlessly, improves decision-making and enables the creation of a personalized rewards program that engages millions of customers. Through the power of AI and data-driven transformation, that retailer could not only enhance operational efficiency but also redefine the customer experience, setting a new standard for the home goods industry.

AI has become a cornerstone of modern business innovation, reshaping industries and redefining how organizations operate. In retail, AI offers transformative potential to address long-standing challenges,

improve efficiency and create new opportunities for growth. As companies face rapid technological advancements and shifting consumer expectations, embracing AI is no longer optional — it is a necessity for staying competitive.

HARNESSING THE AI LADDER

To help organizations harness AI effectively, the concept of the AI ladder provides a structured framework for advancing AI maturity. This model outlines five levels, beginning with foundational data capabilities and culminating in AI-driven autonomous operations. At the base of the ladder, businesses focus on collecting and organizing data, creating a centralized system to inform decisions. For retailers, this might include digitizing inventory records, analyzing customer feedback and tracking seasonal trends. From there, AI can be introduced to analyze data and provide actionable insights, such as

predicting emerging design preferences or optimizing inventory levels to reduce waste.

For example, consider a retailer preparing for the back-to-school shopping season. By analyzing historical sales data and real-time consumer trends, AI identifies that demand for ergonomic study chairs and compact desks is likely to surge. The system dynamically allocates inventory to regions where this demand is projected to be highest, ensuring these items are in stock while avoiding overstock in lower demand areas. Additionally, AI-powered marketing tools can suggest personalized bundles like a desk, chair and storage unit, tailored to individual consumer preferences. This not only improves operational efficiency but also enhances the customer experience by delivering exactly what shoppers need at the right time.

While AI adoption is becoming widespread in retail, most organizations remain in the early stages of maturity on the AI ladder. According to a recent study by the IBM Institute for Business Value, 81 per cent of executives and 96 per cent of their teams use AI to a moderate or significant extent. However, much of this adoption is limited to foundational use cases. Executives surveyed expressed a strong desire to expand AI usage to more sophisticated applications, such as integrated business planning, where usage is expected to grow by 82 per cent in 2025. This reflects a shift toward embedding AI more deeply across enterprise operations.

Despite these promising trends, scaling AI to more advanced applications remains a challenge for many businesses. A lack of connected data systems often prevents organizations from scaling AI applications effectively. Proprietary data — unique insights gathered from customer interactions, operations and sales — plays a critical role in unlocking AI’s full value. Retailers that invest in building integrated data architectures and leveraging proprietary data will gain a competitive edge in the market.

As organizations progress, AI begins to automate workflows, handling repetitive tasks like generating product descriptions or suggesting complementary items for cross-selling. Retailers can leverage AI to create virtual room layouts for customers exploring home furnishings or automate inventory replenishment processes, further improving efficiency. While AI can replace certain repetitive workflows, its pur-

pose is to complement human expertise by freeing up resources for higher value tasks, such as strategic planning.

In the higher levels of the AI ladder, AI transitions from supporting workflows to driving innovation and decision-making. For example, advanced AI systems can generate entire collections of home goods based on consumer data and simulate customer reactions to designs before production. At the peak of AI maturity, organizations operate with minimalhumanintervention,relyingonAItomanagesupply chains, dynamically adjust pricing and identify emerging markets. Even at this level, human oversight remains critical for strategic decisions and ensuring alignment with broader business goals.

REDEFINING THE RETAIL BUSINESS MODEL

As AI integrates into retail operations, a new business model is emerging: the AI-first retailer. This model positions AI as a central driver of strategy and execution, allowing businesses to balance automation with human expertise. Retail functions can be divided into three areas: brand-defining capabilities, business-enabling operations and corporate support functions.

Brand-defining capabilities, such as product development, marketing and customer service, differentiate a company and drive incremental sales. Retailers may choose to develop proprietary AI tools in these areas to maintain a competitive edge.

Business-enabling operations, which include supply chain management and inventory control, often benefit from pre-built AI solutions provided by major software vendors. These tools help retailers optimize logistics, reduce shipping costs and minimize delays.

Corporate support functions, such as finance and IT, are increasingly being transformed by AI-driven automation, freeing up human resources for higher value activities. By delegating routine tasks to AI systems, retailers can achieve greater efficiency while maintaining oversight for complex challenges.

According to the same Institute for Business Value study, by 2025, retail and consumer product companies plan to allocate 3.32 per cent of their revenue to AI, or $33.2 million annually for a $1 billion company. This investment will support key

“AI-powered marketing tools can suggest personalized bundles like a desk, chair and storage unit, tailored to individual consumer preferences.”

“As organizations progress, AI begins to automate workflows, handling repetitive tasks like generating product descriptions.”

areas like customer service, supply chain, talent acquisition and marketing, embedding AI across operations to boost efficiency and drive innovation.

Underlying this transformation is a suite of enabling platforms, including enterprise resource planning systems, data analytics tools, cloud computing and security infrastructure. These technologies provide the foundation for integrating AI across the business, from front-end customer interactions to back-end operations. Organizations that invest in these platforms will be better positioned to unlock AI’s full potential and drive sustainable growth.

UNLOCKING BUSINESS VALUE

The financial impact of AI adoption in retail is substantial. AI can drive significant improvements across key performance metrics, including sales growth, gross margin expansion, operating profit and inventory optimization. According to a report by consulting firm McKinsey & Co., AI can reduce inventory levels by 20 to 30 per cent by improving demand forecasting through dynamic segmentation and machine learning, and optimizing inventory through simple and cost-effective tools.

While AI excels at automating functions and analyzing data, human creativity and intuition remain

essential for tasks like crafting compelling brand stories and building emotional connections with customers. The most successful retailers will be those that leverage AI to augment human capabilities rather than replace them. By combining the strengths of technology and human expertise, businesses can create a seamless blend of innovation and personalization, delivering exceptional experiences that resonate with customers.

AI is no longer a futuristic concept. It is a transformative force that is reshaping the retail industry in real-time. For home goods retailers and other businesses, the journey up the AI ladder offers a roadmap for growth, innovation and longterm success. By building a strong data foundation, investing in enabling platforms and focusing on return on investment-driven innovation, companies can unlock the full potential of AI and position themselves as leaders in an AI-driven future.

The era of the AI-first retailer has arrived. By taking small, incremental steps toward AI adoption, businesses can position themselves for long-term success and innovation. Businesses that embrace this model will not only survive but thrive in a rapidly changing world, delivering value to customers and stakeholders alike.

Jayme Johnson, partner at IBM Consulting Canada, spearheads retail and consumer sectors. With more than 25 years of experience, Jayme drives change into business with technology, focusing on finance, supply chain, customer service, marketing and human resources. She champions diverse teams, contributes to IBM’s women executive council and has shared insights at the Think Conference.

Artificial intellligence can be introduced to analyze data and provide actionable insights, such as predicting emerging design preferences for sofas or optimizing inventory levels to reduce waste.

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Framing the future

How artificial intelligence is revolutionizing product imagery

BY CLARENCE CHUI

THE RETAIL INDUSTRY IS UNDERGOING A transformation and at the heart of it lies a technological revolution that’s reshaping how retailers present their products online. Artificial intelligence (AI) has made impressive strides in many industries, but one of its most exciting applications is in visual content creation. From enhancing product photography to creating hyperrealistic images on demand, AI has the potential to level the playing field for retailers of all sizes, enabling smaller businesses to compete with established giants.

However, as with any advancing technology, there are unique challenges and considerations for industries like home furnishings.

How can retailers leverage this innovation without misrepresenting their products? How do they ensure images remain accurate, photorealistic and context-appropriate?

WHY ARTIFICIAL INTELLIGENCE MATTERS

High-quality imagery is no longer a marketing luxury; it’s a necessity. According to Think with Google, 85 per cent of consumers say visual appearance is the key deciding factor in their purchasing decisions online. Shopify found only 0.52 per cent of purchasers find a single product image sufficient. For retailers, this means one thing: quality product images drive conversions and foot traffic. But traditional methods of creating stunning visuals are often resource-intensive, slow and costly.

This is where AI changes the game. Platforms leveraging AI enable businesses to create visually stunning and realistic product images at scale; customize visuals for different customer personas or marketing channels; and save time and effort typically spent on photoshoots, editing and manual design.

From startups to large-scale enterprises, AI democratizes access to elite-level visual content,

empowering retailers of all sizes to deliver compelling product imagery.

THE STATE OF PRODUCT PHOTOGRAPHY

The home furnishings industry presents a unique challenge when it comes to digital product imagery. Unlike fashion or accessories, furniture and decor items must meet stricter requirements, as customers often need to visualize how a product will look and fit in their space without physically interacting with it.

There are three critical demands for product photography in the home furnishings sector: product integrity, context accuracy and photorealism.

The product must not be altered in any way through AI. Misrepresentation of colours, textures or materials damages consumer trust and increases return rates. For instance, subtle details in finishes like velvet or natural wood grain must be preserved.

Furniture images need to provide correct context, including scale, placement and environment. Improperly scaled 3-D renders or unrealistic room settings can lead to customer dissatisfaction.

Images must feel authentic, with lighting, shadows and textures rendered so perfectly that viewers wouldn’t realize they are AI-generated or digitally enhanced.

The home furnishings industry has the potential to benefit immensely from AI advancements, as long as these demands are properly addressed.

HOW AI SOLVES IMAGERY CHALLENGES

AI-powered platforms allow retailers to create ‘digital twins’ of products — exact virtual replicas that mirror the physical item down to the smallest detail. These digital twins ensure textures, finishes and proportions remain true to life.

For instance, when showcasing a leather sofa, AI software trained on detailed material models can highlight the texture of the leather, stitching and subtle shadows, ensuring nothing is misrepresented.

AIexcelsatcreatinghyper-realisticroomsettingsfor home furnishings. Through analysis of thousands of existing room layouts and designs, advanced AI tools can generate contextual scenes that match a product’s style and customer aesthetic. By providing additional product and scene information, through prompts or a simple user experience, the accuracy of the AI models further improves.

With this combination of powerful AI models and intelligent prompts, retailers can now render images of a specific furniture piece like a dining set in different style spaces, from minimalistic apartments to rustic farmhouse, and show product scale accurately by integrating guidelines and real-world proportions. This not only improves customer confidence in their purchase but also reduces the potential for returns because of missed expectations.

Gone are the days of depending solely on highbudget photoshoots or time-consuming 3-D rendering. AI-driven tools create visuals with

impeccable lighting, shadows and details. For example, AI can adjust image lighting, showcasing how a product looks in both bright natural light and ambient evening light. Drop shadows and background gradients are dynamically adjusted to ensure images feel natural, elevating the realism. These capabilities bring high-end photography within reach for businesses of all sizes.

PRACTICAL APPLICATIONS OF AI

AI-driven workflows ensure faster merchandising times by streamlining image handling for products. Some AI platforms include a mobile app that allows image capture from the retail floor or warehouse. Once an image is taken via mobile phone, or uploaded via the web, all masking and post-processing is automated by the AI platform. This efficient process reduces manual work, allowing businesses to quickly showcase their entire inventory online or in-store.

Special buys, returns, consignment items, product variations and antiques often lack professional visual representation. With AI tools, businesses can swiftly merchandise these products from their retail floor using just a mobile phone, ensuring photography gaps are closed and every product receives high-quality imagery.

AI technology empowers businesses to upload manufacturer silhouettes or lifestyle images and transform them into visuals that best appeal to cus-

CHALLENGES AND THE PATH FORWARD

While the potential applications are vast, retailers must invest in AI solutions wisely. Among the hurdles to adoption are accuracy issues, skill gaps and initial investment costs.

AI can hallucinate or create unrealistic visuals if not anchored by accurate data and references.

While tools are becoming more user-friendly, staff still need a learning curve to master them.

In the long-run, AI will drive operational costs down but for smaller businesses, robust AI solutions might require upfront financial commitment.

VISUAL GENERATION IN HOME FURNISHINGS

AI is fundamentally revolutionizing visual merchandising techniques traditionally used in industries like home furnishings. Commercial photography, artist-based photo retouching and 3-D modelling methods are being redefined through the integration of AI-driven solutions. Currently, we are at the forefront of this transformation, focusing primarily on enhancing core photography capabilities. However, thetrajectoryofAIadvancementsindicatesrapid expansion into video production, animation and fully interactive content, unlocking new dimensions of customer engagement.

“Misrepresentation of colours, textures or materials damages consumer trust and increases return rates.”

tomers. By regenerating manufacturer images or existing photography, retailers can better appeal to their target clientele and elevate the overall presentation of product listings.

Uploading existing image catalogues to an AI platform enables businesses to standardize a consistent silhouette style across their entire portfolio of products. Clean, unified visuals deliver an uncluttered digital experience, helps build trust with customers and enhances their shopping experience.

With the flexibility of AI, retailers can create product images uniquely tailored to their brand. This could mean selecting a simple, consistent studio environment or creating custom styles for lifestyle imagery. By defining a unique aesthetic, businesses can foster a strong connection with their audience and reinforce brand identity in a competitive market.

AI simplifies the process of regenerating images for various seasons, making it easy to support promotions and holiday sales. Whether it’s adding festive elements or introducing seasonal themes, businesses can keep their product imagery fresh and relevant throughout the year.

Today, retailers can capture products anywhere, leveraging tools and technologies that have streamlined the process of showcasing merchandise. However, the future holds even greater possibilities, such as visually creating product variations. AI-assisted configuration will enable retailers to transform finishes like fabrics, metals and woods with ease, offering limitless combinations. These advancements provide a simpler and more efficient alternative to traditional 3-D modelling, redefining how products are conceptualized and presented. This evolution will save time and streamline operations, helping businesses to innovate faster and smarter.

At its core, AI is a democratizing force in the retail landscape. It drives speed, improves quality and reduces costs, making high-end visual merchandising capabilities accessible to smaller retailers, which were once the exclusive domain of large, resource-rich brands. This transformation will enable independent retailers to offer a personalized and immersive experience, allowing customers to craft their own environments and interact with products in ways that were previously unimaginable.

Clarence Chui, PhD., is a trailblazer in visual retail technology, co-founder and CEO of Pyxd Inc., and creator of PyxMagic, an artificial intelligence product photography tool. Formerly president of Outward, a WilliamsSonoma company, Clarence holds advanced degrees in mechanical engineering from Massachusetts Institute of Technology, driving innovation in imaging solutions for home furnishings.

With artificial intelligence tools, businesses can transform standard product images into high-quality visuals with realistic backgrounds.

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NEXT-GEN SHIPMENT HANDLING

How AI freight audits help recover lost revenue, prevent future overcharges and gain a predictive edge in logistics cost management

BY ALEXANDRA GRIFFON

FURNITURE IMPORTERS AND EXPORTERS

operate in a high-stakes logistics environment, where freight costs are one of the biggest financial levers. Yet, many are losing money without realizing it.

Freight invoices often contain hidden charges that quietly erode profits. For bulky, high-value shipments that move across multiple modes, ports and carriers, a lack of visibility into these costs can add up to millions in unnecessary spend each year.

THE REAL COST OF FREIGHT

The furniture supply chain is uniquely complex and with complexity comes hidden fees that quietly drain profitability.

The biggest culprits?

Store penalties and unexpected fees, detention and demurrage overcharges, incorrect tariff classifications, and rate non-compliance and duplicate charges.

Warehouses and ports charge penalties when containers sit too long, often due to delays in paperwork or booking mismatches.

If a container isn’t picked up or returned on time, fees can escalate exponentially, especially at congested ports.

Misclassified shipments can trigger higher duties — a common mistake for furniture categories with varying materials and assembly levels.

Many invoices contain carrier billing errors, misapplied surcharges or rates that don’t match contracts.

For furniture importers operating across multiple trade lanes, these issues silently add up, often without internal teams having the tools or time to catch them.

WHAT’S HIDDEN IN YOUR INVOICES

A thorough freight audit doesn’t just identify errors, it helps shippers build a smarter, cost-efficient supply chain. A structured audit process uncovers billing errors that go unnoticed, carrier and forwarder performance gaps, and inefficiencies in routing and container utilization.

Artificial intelligence (AI)-powered audits reveal inflated fees, incorrect rate applications and unexplained surcharges that would otherwise slip through.

Some vendors repeatedly inflate charges or miss service guarantees. A freight audit provides databacked leverage in contract negotiations.

Poor container planning and suboptimal routing lead to wasted capacity and higher costs — issues that audits help pinpoint and correct.

Companies using AI-powered freight audits recover five to 10 per cent of their annual freight spend, turning what was once an overlooked cost into a high-value savings opportunity.

BUILDING AN AUDIT-DRIVEN STRATEGY

The most efficient shippers aren’t just reacting to overcharges — they implement a proactive cost control system.

The first step is to automate freight invoice audits. Spreadsheets and spot checks miss too much. Using an AI-powered audit tool ensures invoices are verified instantly, flagging overcharges for review.

Next, benchmark freight spend and performance. Historical shipment data helps compare costs across vendors, regions and time frames, allowing for better negotiations and strategic planning.

Then, implement cost recovery and dispute management. When errors appear, a streamlined dispute resolution system ensures your company doesn’t pay for mistakes or excessive charges.

The last step is to optimize carrier and forwarder agreements. Freight audits provide concrete data for contract negotiations, ensuring that rates, fees and service terms align with actual performance.

PREDICTIVE PLANNING WITH AI

With port congestion, fluctuating tariffs and rising container rates, shippers can no longer afford reactive cost control. The old methods — manual invoice checks, trust-based carrier billing and delayed dispute resolution — aren’t enough.

AI-powered freight audits give furniture importers and exporters a complete view of their freight spend, ensuring every charge is verified against contracts, hidden fees are caught and disputed in real-time, and shipping budgets are optimized for future cost savings.

Most furniture shippers are losing money without realizing it. You as well could recover thousands or even millions of dollars in freight spend.

“A thorough freight audit doesn’t just identify errors, it helps shippers build a smarter, cost-efficient supply chain.”

Alexandra Griffon is co-founder and CEO of BlueCargo, a premier platform to monitor, forecast and mitigate demurrage and detention charges at the port. The company builds software to help carriers, shippers and logistics companies move equipment in and out of port terminals faster.

HEADING TO HIGH POINT

Canadian

retailers attending world’s largest furniture trade show share top priorities for their trip

This fall, retail buyers, interior designers and other members of the home furnishings industry will make their way to High Point Market in North Carolina, to preview manufacturers’ forthcoming debuts in furniture, among other home goods, and to scope out upcoming interiors trends. Here, four Canadian retailers share what they’re excited to shop at the semi-annual trade-only event, what they’re most looking forward to and what they hope to get out of the stateside visit to better their business at home.

DARRYL SHERMAN, WILSON FURNITURE

After attending High Point Market for almost 40 years, I still get excited for the event. We are on the lookout for new trends, colours, fabrics and styles. We always leave time to wander the market and discover new suppliers. We plan to visit all our Canadian as well as American and international suppliers. Understanding changing government policies and adjusting inventory flow to meet current trends are issues to be discussed. Conversations with factory reps and other retailers will allow us to compare notes and commiserate. If I come away with a few new ideas and a new supplier, I feel the effort was well worth it. This year, we will also be looking for extra value for our customers, including opportunity buys from our suppliers.

LORI NEGRINOTTI, STONEY CREEK FURNITURE

We are excited to see what’s next in upholstery. We are seeking some elevated textural fabrics that will assist us in offering exceptional comfort in our upholstery furniture. Sourcing the latest fabrics is a great way to set your store apart. We’re most looking forward to finding inspiring design and hunting for unique pieces and categories that enhance our existing assortment. Sourcing furniture designed with versatility and added function is always a highlight. We hope to connect with as many industry partners and friends as possible. We value our relationships with the manufacturers and their representatives, along with fellow retailers. With challenging times in our industry, having support, listening and overall networking can help guide decisions. Sometimes it’s as simple as a lead on a new collection that can further your business.

ANDREW TEPPERMAN, TEPPERMAN’S

During this headwind cycle related to several national and international macro-economic factors, we’re excited to shop value-driven product lines that reflect what Canadian consumers are looking for at this moment in time — style, quality and affordability. With rising cost-consciousness in the market, we’re focused on finding pieces that will drive foot traffic and convert into strong sales. High Point is also a key opportunity to strengthen vendor relationships and discover emerging trends that can shape future buying strategies. It’s a great time to connect with the leadership of existing suppliers as well as tell our story to new prospective partners. We’re looking forward to conversations around supply chain dynamics, including tariffs and other geopolitical factors that continue to impact sourcing and pricing strategies. While global trade partnerships are being re-set, there is still uncertainty around the Canada-United States-Mexico Agreement.

STEVE FORBERG, DECORIUM

We are most excited to shop from our trusted vendor base and see what is new and fresh from them, while also looking for two to three new vendors that offer custom order solutions, great quality and quick lead times. We are looking forward to connecting with industry associates on both the manufacturing and retail side to hear some success stories of what is working for them and what is not. From styles to colour trends, it is important to stay connected and have conversations that you can learn from. We hope to get a pulse of styles and trends, and where the industry styles are heading. We have always been an early adopter (and sometimes too early), but to bring fresh and exciting products to our clientele is always top of mind when heading to market to help further our business. We also want to strengthen vendor relationships as those are critical to any successful business.

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