HGO Merchandiser Fall 2016

Michael Knell’s

HGO merchandiser FALL 2016

HomeGoodsOnline.ca

Volume Five, Issue 3

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

WHAT’S HOT IN

upholstery

CONTENTS

6

34

MARKET REPORT WHAT WAS HOT… Anyone who knows our editor well knows AND WHAT WAS NOT…AT THE he’s a big believer in what is now called CANADIAN FURNITURE SHOW

28

EDITOR’S LETTER LET’S GO BACK TO JANUARY

the Canadian Furniture Show (CFS). It’s absolutely essential to the long term health and prosperity of the Canadian furniture industry that we have a neutral ground where we can come together as an industry. But its performance over the past two years suggests we consider going back to the original dates. An opinion from Michael J. Knell

8

TECHNOLOGY THE OMNICHANNEL EXPLAINED

In a nutshell, being an omnichannel retailer means providing the customer with every possible path to purchase. It has to be provided seamlessly and while giving a superior shopping experience.

Looking at the success many have had adapting to its demands, it may not be as dauntless a task as it appears. Gary James provides our explanation.

34 18

24

8 4 HGO merchandiser

ON RETAIL WINNING THE TALENT WARS

The real battle in business today is the battle for talent. If it is won, the battle for loyal customers and healthy profitability is a lot easier. Whether your business is large or small, not having the right people in every position carries a huge bottom-line cost in lost business, inefficiency, missed opportunity and frustration.

Our resident retail guru, Donald Cooper, shares his eight essential steps to attract, lead and engage a top performing team.

24

RETAIL & THE ENVIRONMENT TEPPERMAN’S – FINDING A GREEN ROI

Being a good steward of the environment is not just the right thing to do. It can also generate a real return on investment if done properly. It’s also something that will get you accolades from your peers in the community as Andrew Tepperman, president of the five-unit family owned and operated Tepperman’s Furniture, recently discovered. A report from HGO editor Michael J. Knell.

CFS has undergone a makeover over the last few years, shortening its once cumbersome moniker, cutting a day from its run time and welcoming attendees during the summer rather than the winter. While it made in-roads in terms of style, welcomed more beautifully curated displays and some style-savvy celebrity speakers this year, attending retailers say they want more Canadian product and even more striking exhibits. Regular contributor Ashley Newport authored our report.

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PRODUCT STRATEGIES WHAT’S HOT IN UPHOLSTERY?

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

39

INDUSTRY CALENDAR & ADVERTISERS’ INDEX

Michael Knell’s

HGO merchandiser FALL 2016

HomeGoodsOnline.ca

Volume Five, Issue 3

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

WHAT’S HOT IN

upholstery

ON OUR COVER: Blue is proving itself to be the hot colour for upholstery fabric these days. A good example is the Model 7646 from Décor-Rest. Part of the S&C Collection, it features looseback cushions with box seats, doublestitching details and modern metal feet and is described as “a true velvet, with the softest hand imaginable.”

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HomeGoodsOnline.ca

5

EDITOR’S LETTER

Let’s go back to January

HGO merchandiser FALL 2016 • VOLUME FIVE, ISSUE 3

MICHAEL J. KNELL

Anyone who knows me well knows I’m a big believer in what is now called the Canadian Furniture Show (CFS). It’s absolutely essential to the long term health and prosperity of the Canadian furniture industry – at all points of the supply chain from manufacturing and distribution to retail, both independent and corporate – that we have a neutral ground where we can come together as an industry.

A

N EVENT SUCH AS CFS PROVIDES A PLACE WHERE INNOVATION can

be seen for the first time, where new manufacturers can make their debut, where new product designs can be unveiled for testing and where professionals from across the supply chain can meet, exchange ideas and re-affirm long standing friendships.

Industry events, however, have not been immune to advances in technology, stagnation in the economy or changes in demographics across our society. The result has been, for CFS, a smaller exhibitor base and reduced attendance, particularly from retail buyers and to some extent designers as well. CFS isn’t the only industry event to suffer so – well known furniture shows in High Point, Las Vegas, Cologne, Paris and other places have also been afflicted with declines.

I also firmly believe the CFS management team – lead by president and chief executive officer Pierre Richard – have done a great job since taking over just prior to the 2014 Canadian Home Furnishings Market. Many of the changes made are truly laudable and deserve high marks indeed.

Even though the change in the dates from January to May for 2015 came from a good and honest place – the survey of attendees they conducted in the spring of 2014 – it might be time to consider going back to the show’s traditional January timeslot.

I say this for a number of reasons. One is I believe at least two greatly missed and much demanded exhibitors will return to the International Centre with a January show date for the simple reason that schedule marries nicely into their own product development and introduction cycle. The current May timeframe is simply too late for them. I also think others will follow.

When held in January, the Canadian event was the first furniture market of the New Year – the psychological importance of that cannot be under-emphasised. It gives a unique marketing advance that cannot be replicated.

Going back to January won’t solve all of the problems CFS faces, but regaining some of that lost exhibit space and the support of at least two vitally important resources is a good place to begin.

Michael J. Knell Publisher & Editor mknell@homegoodsonline.ca

6 HGO merchandiser

ISSN 2291-4765

www.HomeGoodsOnline.ca PUBLISHER & EDITOR Michael J. Knell mknell@homegoodsonline.ca MARKETING DIRECTOR Corrie-Ann Knell marketing@homegoodsonline.ca MANAGING EDITOR Anthony E. Bengel tony@homegoodsonline.ca CONTRIBUTORS Donald Cooper Gary James Ashley Newman ART DIRECTOR Samantha Edwards Sam I Am Creative samiamcreative@gmail.com IT DIRECTOR Jayme Cousins In House Logic websmith@inhouselogic.com PUBLISHED BY Windsor Bay Communications Inc. P.O. Box 3023, 120 Ontario Street Brighton, Ontario K0K 1H0 T: 613.475.4704 F: 613.475.0829 Michael J. Knell, Managing Partner PUBLISHERS OF

HGO This Week Home Goods Online.ca © 2016 Windsor Bay Communications Inc. All rights reserved.

Windsor Bay Communications does not accept any responsibility or liability for any mistakes or misprints herein, regardless of whether such errors are the result of negligence, accident or any other cause whatsoever. Reproduction, in whole or in part, of this magazine is strictly forbidden without the prior written permission of the publisher.

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TECHNOLOGY

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

F

IRST THERE WERE STORES.

Then there was ordering by phone or catalogue. Next came e-commerce. Until recently, each of these sales channels was its own discrete path by which a consumer could conveniently buy a product. The paths generally all led to the same goal — a purchase — but each traveler tended to stay on a single path rather than jumping from one to another.

Now there’s omnichannel. A buzzword in business magazines, retail conferences and other settings where savvy pundits peer into the future, omnichannel is the term used to describe how multiple channels of selling are now being merged into a single, completely integrated consumer experience.

The idea is consumers should be able to navigate all paths through which a product might possibly be sold — both physical (offline, or brick and mortar)

8 HGO merchandiser

and digital (online, or virtual) — at any time without any gaps or roadblocks. If consumers put a product in a shopping cart on their computer, they should be able to complete the sale in store with a salesperson. And conversely, if they’ve seen something they like in a store but want it in a different size or colour; they should be able to place their order from home or another location 24/7 via a smartphone, tablet or laptop.

During a workshop on omnichannel revenue at the High Point Market this past April, Jessica Norby, a business development executive at technology provider MicroD, defined omnichannel retailing this way: “A multichannel approach to sales that seeks to provide the customer with a seamless shopping experience whether the consumer is shopping online from a desktop or mobile device, by telephone or in a bricks-andmortar store.”

Norby added while all omnichannel experiences will use multiple channels, but not all multi-channel experiences are omnichannel. “You can have amazing mobile marketing, engaging social media campaigns and a well-designed website, but if they don’t work together, it’s not omnichannel.” She cited Starbucks, which allows store visitors to place orders and make payments directly from their phones, as a good example of the total integration that true omnichannel retailing delivers to the consumer.

In the Canadian furniture community, examples of omnichannel retailing are rare. IKEA probably comes closest while major chains such as Leon’s, The Brick and Brault & Martineau are moving quickly to achieve this convergence of online and offline. The size of furniture — often big, heavy and expensive to ship — has posed an obstacle for the development of e-commerce, and so has

its tactile, fashion-driven features. Most consumers still like to see and touch their furniture and, until virtual reality headsets become commonplace, the best place to do that is still a store.

But as younger consumers become more active purchasers of furniture and technology continues to evolve, its inevitable e-commerce will play a more important role for all furniture retailers.

Once that happens, omnichannel retailing also will become more prevalent, with more retailers seeking to provide the ultimate in customer convenience.

In this report, we take a look at what progressive retailers such as IKEA and Meuble2Go are doing to integrate offline and online, and we also talk to a leading buying/marketing group (Mega Group/BrandSource) and technology provider (Blueport Commerce) to see what the latest developments are in omnichannel retailing — and where things are heading.

AN ‘ON THE GO’ EXPERIENCE

Recognizing technology is changing consumer behavior and customers are increasingly relying on digital devices to get the information they need, IKEA launched a series of initiatives over the past few years to create a seamless IKEA on the Go experience. These include the development of a responsive (mobile-friendly) web site, a new shopping and catalogue app, and free WiFi availability in all of the company’s stores across Canada.

In addition, IKEA Canada is in the process of rolling out a new app to help consumers decide which mattress is the best fit for their needs.

“IKEA Canada is committed to continually finding new ways to enhance the shopping experience and provide convenience for its customers,” said Tanya Bevington, country communications manager for IKEA Canada. “Our goal is to be more accessible to all Canadians, and meet them whenever and wherever they choose to interact with us. We put the customer in the centre of all we do.”

One way IKEA is supporting Canadians’ evolving needs is through its new network of pick-up and order point locations — smaller stores located in markets not served by its larger-format stores. IKEA launched its fifth location in Windsor, Ontario in April, adding to a growing network that includes sites in Quebec City as well as the Ontario cities of London, St. Catharines, Whitby and Kitchener. The pick-up and order points offer consumers same-day delivery of furniture directly to their homes for $89.

“People are excited that they can shop IKEA in a new way and have been taking advantage of this new format,” said Bevington, adding IKEA is one of the first furniture retailers in Canada to offer same-day delivery. “The main goal is to provide alternatives for our customers. This is an option to shop IKEA closer to their home, but they can still choose to visit a store for the full IKEA experience. Customers are pleasantly surprised when they visit these locations to see the same great inspiration they are used to seeing when visiting a full-size store.”

IKEA’s new pick-up and order points “are a great example of extending the digital presence into a physical loca-

tion,” said Bevington. “In the stores, there are many digital touch points.”

They include digital room planners, find-it-kiosks, price scanners and IKEA Family Kiosks, a resource area for loyalty program members. IKEA also has iPads on its store floors for customer use, and video content highlighting product features runs on nearby TVs. IKEA’s shopping and catalogue app, which can be easily accessed on any smart phone, is also a key tool. “(It) allows users to navigate the store freely while being armed with all the info required (to find what they need).” The app enhances the in-store experience by providing features such as stock checks, shopping lists, product info, store maps and useful tips. It also has a Place in Your Room feature that allows users to virtually place and view hundreds of IKEA products in their own homes.

“With our mobile and web enhancements, we see high adoption rates, so it is a good indication that the customers find the changes useful,” Bevington said.

In addition to these tech tools, IKEA occasionally features a “fun campaign extension” in its stores, such as a Twitter-activated vending machine, she added.

“We are always exploring new ways to improve the customer experience, particularly digitally. Our website is a testament of that, as we often make improvements for our customers’ benefit,” Bevington said.

Social media also plays an important role in IKEA’s relationship with its customers, enabling shoppers to interact with the company through new channels. For example, customers can } From left: An IKEA pick-up and order point store exterior; an in-store display promoting IKEA’s new pick-up and order service; an IKEA Planning Center, where consumers can use online tools to help design their dream rooms.

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An in-store tablet display that invites shoppers to share their own special at-home video moments as part of a national IKEA ad campaign.

now purchase products through IKEA’s Instagram feed or send requests to customer service through a dedicated Twitter handle.

The result of all these efforts can be seen in IKEA’s metrics. “We have had very inspiring accomplishments in our last fiscal year,” Bevingon said.

“Seventy-five million people visited our website, which is over 25% more visits than the previous year. We also eclipsed for the first time the $100 million mark for online sales.”

E-commerce now accounts for about 6% of IKEA Canada’s sales, which were $1.79 billion for its 2015 fiscal year which ended last August.

IKEA Canada also has emerged as one of the global home furnishing retailer’s top markets when it comes to consumers using the mobile app for stock checks. “It’s an important tool for us and for our customers,” Bevington said. “Knowing that customers can travel a distance to come to our stores and knowing how time-strapped Canadians are, it’s very important that we meet their needs and expectations when they arrive and that means having the products they want in-stock and available, as shown on our website.”

Going forward, IKEA will continue to look for new ways technology can be used to enhance the customer experience. In April, the company announced the release of a pilot virtual reality app, the IKEA VR Experience, on Valve’s game platform Steam. The test app, which features a virtual kitchen experience, is designed to solicit consumer

10 HGO merchandiser

feedback as IKEA continues to explore the possible implications of VR technology for the home.

“Virtual reality is developing quickly and in five to ten years it will be an integrated part of people’s lives,” said Jesper Brodin, managing director at IKEA of Sweden. He said the technology someday could be used “to enable customers to try out a variety of home furnishings solutions before buying them.”

BRICKS PLUS CLICKS

While IKEA has been steadily enhancing its digital capabilities to deliver a more seamless shopping experience for in-store shoppers, Meuble2Go.com, a Montreal-based furniture, bedding and accessories merchant, has opened a brick-and-mortar ‘service center’ to enhance its core business of e-commerce.

An up-and-coming force in online furniture retailing, Meuble2Go opened a 2,000-square-foot concept boutique in Montreal’s Mile End district in 2015 — its first brick-and-mortar store — to provide shoppers with a place where they could go to test mattresses and see and touch other products in person. The store includes a sleep lab, called DormoLAB that helps customers choose the right mattress by assessing factors such as age, weight, height and pressure points. And the store also includes a display of its top-selling furniture, which is updated every month, as well as a showcase of locally made furniture and accents.

In addition, the store has an Espresso bar with iPads customers can

use to access the store’s entire assortment online.

“It’s a very relaxed, friendly environment where customers can come in, have a cup of coffee and talk to our sales associates,” said Vincent Gagnon, owner. “We’ve learned that the online sales of furnishings works best if it’s supported by some sort of brick and mortar — whether it’s a boutique, a service center or a complete store. It gives customers an extra measure of confidence to know there’s a store staffed by people where they can go if they have questions.”

Gagnon’s father Christian — the longtime owner and president of Lions Déco Meubles Électros in Montreal, who closed the business in 2014 after more than 30 years — founded Meuble2Go in 2014 primarily as an inventory liquidation specialist. In June of 2015, he sold the business to Vincent, who relaunched the Meuble2Go store and founded a new online operation with the same name. The new company’s focus is quality, promotional to mid-priced contemporary and transitional Canadian-made furnishings for sales online and in-store.

Although there are three million online shoppers a year and $6 billion spent on e-commerce in Quebec, 60% of those purchases are made from web sites outside Quebec, Vincent Gagnon noted. “Canadians are actively buying products from U.S. web sites despite the extra complexities, delays and costs involved in shipping across the border,” he said. “With Meuble2Go, I wanted to approach the market from a new angle and offer shoppers in eastern Canada }

KEY STATS REGARDING CANADIAN E-COMMERCE Only 46% of Canadian businesses have a website

Only 41% of Canadian small businesses have a website

Only 19% of Canadian companies have websites optimized for mobile

Only 13% of Canadian businesses are selling online SOURCE: STATISTICS CANADA

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an easier way to buy furniture online, making the customer the focus of purchasing decisions and showcasing local products.”

About 60% of Meuble2Go’s 2,500plus product assortment is made in Quebec, according to Gagnon. To encourage customers to buy locally, the retailer offers free delivery to destinations in Quebec, Ontario and the Maritime provinces. Key sources include South Shore, Nexera, Monarch and Zuo for furniture, Umbra (home décor) and

Kingsdown (bedding). Smaller items are drop-shipped directly from the manufacturers to the consumer or to Meuble2Go’s store; larger items are delivered through a white-glove service.

Returns can be brought back to the store for a full refund, and other merchandise can be returned via FedEx for a restocking fee. “Our ‘buyer’s remorse’ returns are much lower than we expected, only about 2% to 3%” said Gagnon.

Meuble2Go has opted to limit sales initially to Quebec and Maritime prov-

CONSUMERS STILL LOVE STORES Gen Z and Millennials are big on physical stores — even more so than their older counterparts — according to a new research study by iModerate, a Denver-based consumer insights firm.

In the study of 844 consumers conducted this past February, 74% of all respondents said it is important for brands to have a physical location rather than solely selling online. Eighty percent of Gen Zers and 82% of Millennial respondents said it is important, compared to 69% of Gen Xers and 65% of Baby Boomers.

One of the biggest lures for in-store shopping is the assurance that comes from seeing, feeling and testing merchandise. This is especially true for first-time buying experiences, when brand perceptions are made and loyalty is decided.

“One of brick-and-mortar’s greatest advantages over other channels is that there’s an opportunity for shoppers to interact with products, and that gives them the confidence they need to make a purchase,” said iModerate CMO Adam Rossow. iModerate found the in-store experience matters most to consumers when they’re buying high-priced items, buying specialty items, buying items they need help deciding on or understanding, when they’re in a hurry and at the holidays.

The study also revealed that each generation is looking to get something different from their store visits: GEN Z – Seeks the reassurance found through the sensorial. Likes stores where they can touch and test various sizes and styles.

MILLENNIALS – Seek efficiency and quality. Many are launching careers and have young families so they need to shop frequently, and favor big-box stores for their ability to quickly find everything they need in one place.

GEN X – Seeks an escape and discoveries. With bustling careers and older kids, their life is hectic and they appreciate stores that offer a getaway through calm music, coffee, etc.

BABY BOOMERS – Seek comfort and space. Many are living on limited incomes, so they like to touch products before buying them and balk at paying for shipping. They also value low music, light scents and seating.

12 HGO merchandiser

inces so that it can establish its brand and offer consumers “a single, consistent experience with no variations in pricing or service,” said Gagnon. “We want to make doing business simple for our customers, and for our suppliers.”

Down the road, the retailer plans to expand its presence with additional stores in existing eastern markets where online sales are active and then, eventually, to cities in the West.

In May, Meuble2Go announced a new partnership with l’ACET, a business incubator that provides funding and other support to technology-based Canadian companies.

The Meuble2Go website features a wide variety of furniture, mattresses and accessories, with photos, descriptions and reviews for each. A chat text line is always available to answer customers’ questions.

“The importance of a chat function is underrated,” said Gagnon. “Our data shows that more than 70% of our online customers get in touch with one of our service agents at some point during their transaction. They need advice — it’s not like buying a T-shirt or book on Amazon.”

To reach potential customers, Meuble2Go employs a mix of online and traditional channels, including the AdRoll marketing platform. The centrepiece of its communication efforts is an e-newsletter, currently distributed to more than 11,000 qualified subscribers. The company also holds monthly events in its store, such as do-it-yourself workshops hosted by local bloggers and designers to create a sense of community.

In addition, the retailer has an active presence on Twitter, Facebook, Instagram, You Tube and Pinterest, regularly posting photos of new prod-

From left: Meuble2Go’s service center in Montreal displays an assortment of best-selling items; the retailer’s home page promotes free shipping to anywhere in eastern Canada; a typical Meuble2Go product landing page, as seen on a tablet computer; and a home office setup from Nexera’s Liber-T collection, featuring a combination of white melamine and walnut laminate.

ucts and information about design. “We don’t try to sell anything through social media,” said Gagnon. “Instead, our goal is to create an emotional connection with enthusiasts so that they share our content with their friends, which has much more impact and credibility.

Since we add about 50 new SKUs online every month, we always have something to talk about.”

Recognising site visitors need to be able to easily browse and locate products of interest, Meuble2go employs a variety of tools to track activity. A new tool it recently adopted enables the company to watch the movement of a visitor’s mouse on the website in real time. Another tool creates “heat maps” that aggregate user activity to illustrate which areas of the website are the most frequently visited.

“These tools help us gain a much better understanding of shopper behavior and improve the design of our site,” said Gagnon.

According to Gagnon, studies show that there are three main factors that customers don’t like about the traditional furniture shopping experience: delivery delays; the lack of customer service and support both before and after a sale; and pressure selling. Meuble2go addresses the first two concerns by offering consistent, four- to sevenday shipping and by having customer service associates readily available through text or phone. The third item — pressure selling — is kept to a minimum by paying sales associates a salary rather than commissions, Gagnon said.

“Meuble2go aims to be a refreshing alternative,” he said. “We want to put the power back in the customers’ hands. Our goal is to make them happy, KEY STATS REGARDING so they’ll their friends TODAY’S SHOPPERS about their experience.

88% of customers will check out reviews before Studies have shown making a final decision on a purchase that word of mouth is the most powerful tool 67% of the shopper’s journey is now done digitally for marketing.”

44% of online consumers say having questions Gagnon added while answered by a live person while in the middle of an he initially expected his online purchase is one of the most important features target customers would a website can offer be women ages 35 to 45, data shows that Meu57% of the purchase decision is complete before a ble2Go is reaching a customer even contacts a product source broader base of women 11: the number of times a customer will “touch” a from 35 to 55. “And vendor before making a purchase we’re also attracting a good number of men SOURCE: MICROD INC., SEARCH ENGINE JOURNAL, LIVECHATINC.COM and women over 60

who are making their first online purchases,” he said. “Often, they’re coming into our store, seeing something they like on the website and asking our sales associates to help them place the order.”

EXTENDING THE BRAND

Recognising most independent furniture and appliance retailers need help to successfully extend their brand into the online arena; Mega Group offers a variety of digital merchandising, marketing and web development services to member stores through its BrandSource program.

The hub of its web initiative is the national BrandSource.ca site, which contains information on major brands and product categories carried by BrandSource members, details on current promotions and other engaging content, such how-to tips, videos and blogs.

“We have a complete content management strategy, so that if the consumer is just at the beginning of their journey to purchase something and need information about different types of mattresses, that information is there,” said Michael Vancura, executive vice president of retail operations for Mega Group, the operators of BrandSource Canada. “Then, as they get further down their path and want to find out more about specific brands and constructions, that content also is available.

And finally, when they’re ready to buy, we have a ‘call to action’ with special pricing and promotions to help them make a decision.”

The national BrandSource site does not contain a shopping cart function } HomeGoodsOnline.ca

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since its main mission is to steer customers to local stores. “Consumers are most interested in where they can find a product locally, so our easy-to-use store locator tool points them in the right direction to make a purchase,” Vancura said.

BrandSource also powers individual websites for about 100 member companies. The complexity of sites varies, but even the most basic site contains a wealth of information about products, suppliers, pricing and promotions.

BrandSource also provides templates for retailers’ Facebook posts and handles the management of pay-for-click and search engine optimization campaigns. A handful of the sites also have e-commerce functionality.

BrandSource has been providing digital marketing services to its members for 10 years. This summer, it will release version 6 of its website platform.

The update will be fully responsive, providing mobile users easier access to a full range of site content.

“Showcasing your store and product online in an easy-to-navigate, engaging and optimised website is a must in today’s competitive retail world,” Vancura said. “Through BrandSource, we make it easy for Mega Group members to have a dynamic online presence that attracts more customers and sales to their stores.”

To date, studies have shown that ecommerce has been slower to develop

in Canada than in the U.S. and Europe, said Vancura. “And true omnichannel retailing — where someone does some research online and walks in the store, and then that thread of activity is picked up, the transaction continues and the customer completes a purchase on their phone as they walk out — is very hard to find.”

For furniture and, to a lesser extent, even appliances, the pressure to move online is much less intense than it is for most other consumer products, said Vancura. “Consumers still want to be able to see and touch their furniture before they buy,” he said. “And that’s also mostly true for appliances — they want to examine various features and look inside.”

For now, e-commerce remains a very small portion of overall sales of furniture and mattresses, according to Vancura. “But everyone is starting to improve their game. There’s no question that e-commerce will become more important to furniture as time goes on.”

To keep up with the changing market, even small to medium-sized retailers are steadily adding more features to their sites with a goal toward eventually selling online. “Many of our members are moving toward offering e-commerce, but it’s a process of evolution rather than a revolution,” said Vancura.

“Retailers are testing the online waters a little at a time to see what works best

for them rather than diving straight into the deep end.”

Step one of e-commerce is having a shopping cart function that enables consumers to easily find and select products they want to buy, Vancura said. The second step is installing a secure online payment system. The next step after that is integrating point-ofsale inventory with what’s available online, so all that information is updated automatically. In addition, a robust digital marketing program needs to be put in place to generate and measure traffic and sales.

After that, there’s a long list of other elements — and decisions — that go into making the selling process more and more seamless, Vancura said. For example: “Do I want to show inventory levels to the public, so when they order, they know exactly how long they’ll have to wait? How do I handle custom orders? Do I put all of my product categories online, or just some categories?

What are my business rules for e-commerce — do I ship anywhere or just to a limited geographic area? What’s my online price versus in-store price? How do I handle returns? There are many complex steps that go into creating any successful e-commerce program.”

In BrandSource’s experience, certain categories of furniture have proven to be better suited to e-commerce than }

A WEB GAME CHANGER On April 1, Retailer Web Services released WebFronts Level 4, billed as the first industry-specific marketing automation software. Designed exclusively for independent furniture, mattress and appliance retailers, WebFront Level 4 contains proprietary tools that enable stores to identify consumers while they’re researching online, track their interactions and then automatically re-market to these prospects based on purchase intent. The program integrates with RWS’ existing WebFronts system.

“Up until now, this type of technology has been too expensive and too technical for all but the largest national retailers to implement,” says Jennie Gilbert, chief operating officer of the Scottsdale, Arizona-based technology provider.

“It’s a huge game-changer to make this accessible to the independent channel. They know have a two-way mirror that allows them to better understand exactly who is visiting their site and what they’re looking for.”

The unprecedented rise of the digital consumer has changed the game for independent retailers, Gilbert says.

“The ‘purchase journey’ is completely different now, since

14 HGO merchandiser

consumers now do the bulk of their research on products they plan to buy long before they walk in a store.”

As a result, retailers need to know who their customer is and what their preferences are earlier in the buying cycle than ever before. “With WebFronts 4, they have a powerful tool that enables them to easily reach out to the right prospect at the right time with relevant, compelling offers that result in more sales,” she says. While much of the activity can be completely automated, the program also provides a rich source of sales leads for RSAs to tap as time allows.

According to Gilbert, 281 of RWS’ retailer customers across North America have already subscribed to WebFronts Level 4. Prior to release, the program was beta tested with a group of 200 retailers from different durable goods industries (appliances, furniture and mattresses) and buying groups, including a number of Tempur Sealy retailers.

The new program includes progressive profiling and session analytics; pre-made promotions; automated Facebook posts; email re-marketing tools; and end-to-end security with the latest privacy and compliance features.

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others. Topping the list are smaller, flat-packed products such as barstools, desks and juvenile beds. “These products are easy to ship, and they’re available from suppliers that already have ecommerce programs in place that easily interface with retailers’ systems.”

To help retailers gain more experience with e-commerce, BrandSource has begun testing a new “endless aisle” program with a few key suppliers. In an “endless aisle” program, consumers have the ability to order products from a larger catalog of products than is usually shown in store for delivery directly to their home.

An “endless aisle” promotion that BrandSource launched this spring fea-

ADAPTING TO SHOPPING MOBILE As mobile usage becomes ubiquitous, the path to purchase for products of all types is becoming less defined.

Today’s shoppers are always connected, well-informed and often quick to convert both digitally and instore. The traditional shopping phases still exist, but once smartphones are introduced, behavior shifts, as explored in a new eMarketer report, The Changing Path to Purchase: What It Means to Add Mobile to the Mix. Broadly speaking, today’s shoppers crave consistency. When Internet users in North America were polled by the research firms Magnetic and Retail TouchPoints in April 2015, 59% of respondents cited consistency between digital channels and in-store as the most important part of a retail experience, while consistency across devices was vital to 54%. When retailers in the same study were asked about information provided to customers along the shopping journey, only 36% claimed to be offering a seamless experience across mobile and desktop.

Overall, mobile is having a striking effect on shopping behavior in all settings, and it is no longer the sole province of out-and-about smartphone users or those buying inexpensive products or services in short windows of time. What consumers want is changing and retailers have to keep up, concludes eMarketer.

16 HGO merchandiser

tures barstools from Ashley and Amisco.

Twenty models are available for viewing in a small store display but, if a consumer wants to see more, a larger offering of 100 barstools also can be accessed through a nearby touchscreen. Currently, 25 BrandSource retailers participate in the program, and the response has been “amazing,” Vancura said.

“A lot of furniture and appliance stores, especially in secondary markets, have very limited space, so they can’t possibly display the entire range of products that people might be looking for,” Vancura said. “Through their websites, they have the ability to show consumers a much larger assortment. We expect to run similar programs in other categories such as youth furniture, storage and bookcases as time goes on.”

In many cases, these are categories furniture stores have exited because of space constraints, he added. “And now they have a chance to get back into them.”

As part of its mission to drive traffic and sales for members, the Mega Group and BrandSource teams are constantly looking for other new ways to leverage technology — both in-store and online. “We strive to support our retailers through the national BrandSource.ca site and keep them up to date with the latest tools they need to stay competitive,” said Vancura. “At the same time, retailers need to be digitally active in their own markets, establishing a strong social media presence and keeping their websites and social media channels fresh with new, engaging content.”

In addition to content, success in the digital arena also requires a reallocation of marketing dollars, Vancura added.

“Traditional media alone won’t cut it any more. Retailers need to be steadily investing in content marketing, SEO optimization, Facebook ads and other platforms to get their messages in front of consumers. They don’t necessarily need to spend more money on advertising, but they do need to reallocate a significant percentage of their dollars to digital channels.”

GETTING IN ‘SYNC’

For big ticket purchases, it’s no secret that the majority of today’s shoppers start their product research online,

said Randy Goldstein, executive vice president of e-commerce for Blueport Commerce. “But what many may be surprised to find is that the opposite is also true: While consumers are becoming increasingly comfortable completing big ticket purchases online, in many cases they are still visiting retailers’ physical stores to touch and feel the product.”

As a result, he said, “It’s more important than ever for retailers to provide necessary tools to enable consumers to transition seamlessly between physical locations and digital assets.”

In today’s world, the consumer is going to interact with a variety of sales platforms before making a purchasing decision, particularly a big ticket item like furniture, where the path to purchase is relatively long and complex and filled with different touch points, said Goldstein. “They’re interacting with retailers’ websites, mobile apps, social networks and physical stores. In this environment, the right technology becomes an enabler to bring all those worlds together.”

A leading provider of e-commerce technology and services, Blueport operates the furniture.com website, and also provides e-commerce platforms for Leon’s, The Brick, Rooms To Go and other leading retailers in Canada and the United States. Blueport Commerce offers a variety of tools to help brickand-mortar retailers more fully engage with consumers, including Store Sync, a patent-pending, cloud-based technology that links a consumer’s online and instore shopping experience so that it can be accessed at any time on any device.

“The fact that consumers still want to visit stores to see products is a huge advantage for traditional retailers,” said Goldstein. “They need to capitalise on that by having tools in place that enable them to meet the consumer at any point along their shopping journey.”

According to Forrester Research, furniture purchased online in the U.S. is growing at a rate of 14% annually and will reach 7.6% of total category sales in 2018. While Canada’s growth may not be quite as robust, data shows that Canadian e-commerce in general is rapidly catching up to U.S. levels — and furniture is keeping pace.

In its newly published Annual Retail

Trade survey for 2014, Statistics Canada reported furniture and home furnishings stores had combined e-commerce sales of $295.9 million – up 19.4% over the $247.7 million sold in 2013 and almost three times greater than the $98.3 million sold in 2012 – the first year for which these figures are available.

E-commerce accounted for 1.8% of the $16.8 billion in sales generated by furniture and home furnishings stores in 2014 – up from the 1.2% of the $16.2 billion in sales the year before.

Still, when it comes to omnichannel commerce, the industry on both sides of the border still has a long way to go.

In its 2015 benchmarking study, Blueport Commerce found that only 69% of North America’s leading furniture retailers (those over $50 million in annual sales) are e-commerce enabled. This percentage pales in comparison to most other retailer categories, in which 100% of top retailers have been e-commerce enabled for quite some time, the company said. And e-commerce adoption by smaller retailers is much lower due to the capital, time and manpower required to develop and manage an online sales infrastructure.

“Some Canadian furniture retailers are well on their way to omnichannel commerce while others have done little or nothing in this area,” said Goldstein.

“But it’s become clear that inaction is no longer an option — furniture retailers of all sizes need to begin to develop these new capabilities online if they’re going to compete in tomorrow’s marketplace. Nearly every other sector of retail has met this new standard and though furniture retailers may not like it, con-

sumers’ expectations have been reset accordingly.”

Retailers’ ability to thrive in this new environment involves new ways of looking of both sales and marketing. “You need to be thinking about how you market in a digital world. What are thirdparty review sites saying about you?

How do you rank from an SEO perspective? How are you using email and paid search to reach out to perspective customers? While the e-commerce piece is part of this equation, thinking about digital retail more holistically is going to become more important as customers shift to these new channels exclusively for product discovery.”

According to Goldstein, there is a core list of “must-have” features furniture retailers need to establish an effective e-commerce presence. They include responsive design, localised shopping, in-store inventory lookup, consistency between online and in-store pricing and promotions, and real-time delivery and pickup dates.

If a retailer has a store in more than one market, its web platform also must be capable of geographically tailoring data so it reflects exactly what’s available in each individual customer’s locale. The Blueport e-commerce platform has technology that automatically detects a user’s geography so information relating to product, pricing, availability and delivery schedules is all localised.

In addition, retailers need to have a system in place that compensates commissioned sales associates for their efforts. “It can be a big point of friction if salespeople find that they’re losing sales to the store’s web site,” Goldstein said.

TEN STEPS TO E-COMMERCE SUCCESS 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

Develop a unique brand around your product or service Build an easy-to-use and effective website Optimize your site for Google Search Set up a merchant services account and payment gateway Provide quality customer service and a solid return policy Offer some kind of free shipping, permanently Implement a product review system Hire a dedicated product specialist for online content Create a community using social media Invest in digital advertising, such as Google AdWords or Facebook Ads

“Instead, if they contribute to the sale by providing the customer with information or help at any point — either by talking to them in store, on the phone, or through a chat function or social media — they need to be compensated so that the web is seen as an ally rather than a competitor.”

With Blueport’s Store Sync tool, Goldstein added, sales associates have the ability to access shoppers’ online browsing and cart histories via tablet computers. “And with this information, associates can create a personalised experience for the customer by more effectively answering their questions, offering additional insights and guiding them toward an eventual purchase.”

Tablets can be a powerful tool for sales associates, Goldstein said, since they also provide instant access to the retailer’s entire inventory and an easy way to show consumers the wide range of options that’s available beyond the store floor. “We hear from Leon’s and The Brick sales associates that they are constantly taking visitors through their respective web sites to show them the complete range of appliances and electronics they sell because they don’t have enough space on the floor to show every single model,” said Goldstein.

If a customer leaves a store without making a purchase, Store Sync also provides sales associates with new options for sharing additional information and photos with consumers via email.

“In the past, most ‘be-backs’ never returned to the store. Now, through the use of technology, sales associates can keep the lines of communication open and help prospects find the products they need.” HGO A regular contributor to Home Goods Online, GARY JAMES is a freelance writer based in Chapel Hill, North Carolina.

He spent over 20 years with Furniture/ Today, serving as case goods editor and special projects editor, directing the editorial content of Leather Today, Bedding Today, Global Textiles Today and other supplements and sections. He contributed our examination of e-commerce – The Sleep Giant Awakens – to the Spring 2015 edition of the Merchandiser.

SOURCE: WEB4RETAIL.COM

HomeGoodsOnline.ca

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ON RETAIL

Winning the

TALENT WAR Here are Donald Cooper’s eight essential steps to attract, lead and engage a top performing team!

Something every retailer needs to be successful.

T

BY DONALD COOPER

18 HGO merchandiser

HE REAL BATTLE IN BUSINESS

today is the battle for talent. If we win that one, the battle for loyal customers and healthy profitability is a lot easier. Whether your business is large or small, not having the right people in every position carries a huge bottom-line cost in lost business, inefficiency, missed opportunity and frustration.

The talent crunch is real and will last for decades. In less than 10 years’ time, we’ll see many businesses fail because they’re unable to find the talent they need.

We become what we hire. You can’t build an extraordinary business by hiring ordinary people. So we need to attract and hire extraordinary talent – not just ‘bodies’. Then, we must train, inspire and empower and engage

them to WOW our customers, achieve worldclass operating efficiency and grow our bottom line.

Everyone on our team must be clear about our customer promise, our direction and our values. They must be committed to specific outcomes, be held accountable for their performance and rewarded for their success. Nonperformance must be dealt with promptly and firmly. Lack of accountability and failure to deal with non-performance are two of the biggest problems in many businesses today. So, we must all manage smarter.

These eight steps to attracting, leading and engaging a top-performing team deliver a clear and effective process that will make you a world-class recruiter, a world-class boss – and a world-class business.

So, here they are: the eight essential steps to attracting, leading and engaging a top-performing team.

STEP 1

Create ‘clarity’ about six things.

As a business owner, leader or manager, your first job is ‘clarity’. You hire people to help you do something and to become something so, if you’re not clear about six specific things, you won’t know who you need to hire and how you need to train and develop them. So, as a business owner, leader and manager, you must be clear about these six things: 1.

Who your target customers are and the compelling value and experiences you commit to deliver. What your ‘brand promise’ and ‘brand personality’ are.

2.

How you will communicate and promote your value story in a crowded and cynical marketplace. There’s no point being the best if you’re also the best kept secret.

3.

The extraordinary future that you commit to create.

What, where, how big and how different your business will be in three to five years (your Vision).

4.

How you’ll get there. Specifically, year by year, what action will you commit to take (your Mission).

5.

The extraordinary bottom line you commit to generate...and, 6.

How you commit to behave along the way (your culture, values, ethics and standards).

Simply put, you need to know who you are and what you commit to become. Most businesses lack this kind of clarity – and it’s killing them. Are you clear about these six things in your business?

STEP 2

Take ‘ownership’ of the problem.

Sadly, many business owners and managers have convinced themselves that, “You just can’t get good people anymore!”

They’re in denial and they’ve given up! The truth is the best people have to work for somebody. The problem is you have to deserve them. So, take ownership of the problem and become the kind of business that the best people want to work for. Here’s a simple two-step process to make that happen that will take two pieces of paper and 40 minutes of your time.

First 20 minutes: Sit down with a few of your best people and describe on one piece of paper the kind of business in your industry, in your market, that the very best people would want to work for. How would that business recruit, pay, train, develop, mentor, thank, reward, honour and celebrate

its people? What kind of values, benefits and culture would it create? How would it ‘feel’ to work there?

Second 20 minutes: On a second piece of paper, write down all the things you need to get off your behind and do to become the kind of business that you just described. Then determine specifically what will be done, by whom, by when to make it happen.

STEP 3

Document the specific skills, knowledge, qualities and experience required to do each job wonderfully…now and in the future.

Finding great staff is like looking for a needle in a haystack.

But it’s much easier to find the needle if you know exactly what a needle looks like.

Create a ‘job description’ for each position in your business. Writing job descriptions is a pain but you never really understand a job until you go through this, just like you never know what shape your car is in until you get out a bucket of soapy water and wash your own car. You need to get ‘up close and personal’ with every job in your business before you can effectively hire anyone to do it. For help in writing job descriptions, check out The Job Description Handbook by Margaret Mader-Clark.

On a scale of one to ten, use the tool below to determine the importance of each of the ‘Seven Key Success Factors’ for each job or position in your business.

1.

Talent.

2.

Knowledge, skills and experience.

3.

Positive attitude and personality.

4.

Judgment and maturity.

5.

Ambition.

6.

Physical requirements.

7.

Fit with our culture, values & standards.

BONUS THOUGHT: Hire for the future – not just for today.

Think about how will each job and the entire business change in the next five years. What different skills, knowledge and experience will be required?

STEP 4

Where do we find people with the skills, knowledge, qualities and experience we need?

The people you need are one of two places. They’re already working for you or they’re someplace else. You may have talented people on your team right now that you’ve overlooked. They may be in the ‘wrong’ job and performing badly.

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potential. Identify your stars and those with potential. Coach them, challenge them, reward and encourage them.

On the other hand, you likely have some non-performers with no potential that you’re not dealing with. They’re dragging you down, driving good people nuts and hurting your bottom line.

Deal with them.

Sit down and talk with each non-performer. Tell them specifically what your concerns are and ask if something is preventing them from doing the job as it needs to be done or from honouring the values and culture of the business. Get clear commitments as to how they’re going to improve and by when. Document the commitments and follow up.

Acknowledge progress and deal with failure to perform.

When looking outside for great people, here are ten tips to think about:

STEP 5

Get the interview and screening process right.

Ask the right questions!

Have a few of your top performers interview candidates. If your best people give them a ‘thumbs down’, pay attention.

1.

Where are the people you need working or living right now? How can you reach out to them?

2.

Get your existing staff to help. Good people know good people. Offer a financial incentive for finding good employees who stay for a specific length of time.

3.

What about former employees? Often good employees who leave for some reason are even better when they return.

4. Internet job posting.

5.

Industry associations, newsletters or magazines.

6.

Ethnic or cultural associations with connections to people with specific backgrounds or skill sets.

7.

Build special relationships with trade schools or colleges. Speak at their career days. Serve on their advisory boards. Sponsor competitions or annual ‘Awards for Excellence’ at those schools.

8.

Are there job functions that could be outsourced?

9. Traditional job placement bureaus.

10. Think outside the box.

Here are a few examples of ‘thinking outside the box’. A Winnipeg sheet metal manufacturer has been successful in giving street people an opportunity. Facing a chronic shortage of bike mechanics, a group of bike shops in Toronto partnered with an organisation committed to helping at-risk youth. Now each year, together, they train 70 street kids to be qualified bike mechanics. Dumar Industries, a company that makes parts for specialized armored vehicles hires military veterans.

What might ‘outside the box’ look like for your business?

22 HGO merchandiser

Screening out the people who are not a good fit for the job or for your culture, while exciting great people about the opportunity is a challenging task. Nobody much likes interviewing job candidates.

My suggestion is to create a script of 10 to 15 questions to find out if candidates have the talent, experience, attitudes and values you need.

After asking specific questions to determine if they have the required job-specific skills and knowledge, ask them a few general questions like:

1.

What did you like and not like about your previous jobs? Why did you leave?

2.

What would you like to get out of this job?

3.

What would you like to get out of your career? What would you like to be doing in three years?

5.

What would make this a great working experience for you?

Have a few of your top performers interview candidates. If your best people give them a ‘thumbs down’, pay attention.

Have candidates actually perform some of the tasks that the job requires to see if they can do it. We’ve all hired people who are great talkers, but who can’t do the job. Screen them out now!

Ask for and check references. Yes, it takes time to do this, but it can save you a lot of grief. Tell the reference the specific job that the candidate is applying for. Then, you can ask a number of specific questions about the candidate or you can simply ask, “Would you hire this person back if they reapplied to your company?” If they answer no, ask them what their concerns would be.

BONUS TIP: Never hire anyone after just one interview. That’s

like asking someone to marry you on the first date. You don’t know them well enough yet.

STEP 6

The right introduction and ongoing training and communication.

Get new people off to a good and welcoming start. The week before a new person starts an announcement should go to everyone in the department saying who the new arrival is, what they’ll be doing and a bit about their business

background and who they are as a person. Invite everyone to welcome the newcomer.

Have their workplace ready for them on day one.

Of course, every business should have a New Employee Welcome Booklet that describes the company’s history, awards won, special achievements, statement of purpose, statement of values, list of rules, commitment to physical and psychological safety and anything else a newbie needs to know to hit the ground running. Smart companies also assign a wonderful team member to be a ‘guide’ to answer questions and help the new person navigate their new environment.

I believe strongly every new employee should receive a tour of the entire business so they see the bigger picture and can better understand where their job fits into that picture – and, therefore, why their job is important.

Create a tailored training program for each new employee based on what they already know and what they need to know. Then, make sure training and development is an ongoing part of every job. You can’t grow your business without growing your people.

Communication is a two-way street. Sit with each employee at least twice a year to ask them how they think the job is going, where they’d like to be in two to three years and what additional training and coaching they need to make that happen. Ask them what they want their life to look like in three years and how you can help them achieve that.

Create quarterly ‘Idea Fests’ in each area of the business where for a few hours each team member is responsible for delivering at least one idea to serve customers better, to be more safe, more efficient or better communicators. Rewards should be given for ideas that work.

STEP 7

Empowerment, urgency and accountability!

Stop micro-managing your people. If you have to micromanage them, it’s a sure sign either they’re the wrong people or you’re an ineffective manager. You need to find great people, create clear expectations then train, coach, reward and encourage them. Create a culture of joy, respect and accountability – and then empower them to do their job.

And how do you create a culture of urgency and accountability? Work with your team to agree on clear and specific outcomes. Make sure they know why their role is important and then measure performance. Be open to and respect the ideas of others. Remember that your way isn’t the only way.

Businesses don’t die from a single shot to the head. They die slowly but surely from a 1,000 uncompleted tasks. So, when you assign a task always ask, “By when can we agree that this will be completed?” Document the commitment and always follow up. Reschedule dates when necessary but never create ‘orphans’. An ‘orphan’ is anything that you’ve asked someone to do that doesn’t have a specific completion date attached to it.

Another way to improve accountability and urgency is to stop talking about ‘goals, targets, aims and objectives’ in your business. These are all weak and wishy-washy words that leave way too much wiggle room to not perform. Replace all of them with one powerful word – commitments. There’s a big difference between a goal and a commitment. When we change our language, we change our culture. So, create a culture of commitment.

STEP 8

Acknowledge, reward and celebrate success

Recognise and reward top contributors, encourage and develop those with potential and invite poor performers to ‘move on’.

1.

Pay more and expect more. The best people never work for the least amount of money.

2.

Create a culture of celebration. Celebrate birthdays, special occasions and achievements. Send a card to each person on your team on the anniversary of their employment. Thank them for one more year of sharing the passion, vision and commitment of the business.

Most people remember the day they started working for you…and they hate it when you don’t. Honour individuals – as well as the team – with titles, business cards, awards, dinners. Look for reasons to celebrate.

Create a culture that combines commitment, urgency and joy.

3.

A ‘thank you’ every day. According to surveys, one of the main reasons people stop trying is that they believe they don’t make a difference. If you got ‘thanked’ every day, how could you ever believe that you don’t make a difference? If you have people who never do anything worth ‘thanking’ them for, pay attention…they’re a problem. Figure out how to ‘fix’ them, or invite them to move on.

IN CONCLUSION: So, there you have it. Eight clear steps to

creating a top-performing team. Which part of the process do you need to work on first? Then, what will be next and next after that? Remember, the real battle in business today is the battle to attract, engage and retain talent. If you win that one, the battle for loyal customers and a healthy bottom line is a lot easier. HGO A regular contributor to Home Goods Online, DONALD COOPER has been both a world-class manufacturer and an award-winning retailer. Now a Toronto-based business speaker and coach, he helps business owners and managers rethink, refocus and re-energize their business to create compelling customer value, clarity of purpose and longterm profitability. For more information, or to subscribe to his free, monthly management e-newsletter, go to www. donaldcooper.com HomeGoodsOnline.ca

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BEING GREEN Andrew Tepperman, the third generation leader of the family owned and operated Tepperman’s Furniture is a firm believer in the benefits of being a good environmental steward.

Being a good steward of the environment is not just the right thing to do.

It can also generate a real return on investment if done properly. It’s also something that will get you accolades from your peers in the community as Andrew Tepperman discovered.

BY MICHAEL J. KNELL

Tepperman’s –

green K

ERMIT THE FROG ONCE SANG: It’s not easy

being green. When he wrote that line for the work’s most famous Muppet, Jim Hensen probably didn’t realise there would be an enterprising young furniture retailer from Windsor, Ontario who figured out that being green would not only enhance his family company’s reputation but would make money doing so. Not only that, his efforts would be award winning as well.

Earlier this year, the London Chamber of Commerce presented its Environmental Leadership Award to Tepperman’s Furniture, the now five-unit regional chain lead by third generation president Andrew Tepperman. The ac-

24 HGO merchandiser

colade is part of the chamber’s London Business Achievements Awards program, which is one of the largest and most prestigious in the country.

In his address to the 1,200 or so members of the business elite from across southwestern Ontario who attend the awards gala, Tepperman noted environmental sustainability is a key element of the company’s ten-year vision and central to its continuing success.

“Reducing our energy consumption, minimizing our use of landfills and producing less garbage on the whole will help us achieve our environmental sustainability goals,” he said. “Our teams have worked hard to create company recycling programs, retrofit LED lighting into our showrooms

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

and warehouses and installing foam emulsifiers. We know that stewardship of environmental sustainability has no end.”

In an interview with Home Goods Online, Tepperman noted being stewards of the environment is something of a family tradition. “I think this all started with Grandpa Nate who founded our business in 1925 going door-to-door on foot. He had a zero carbon footprint!” he chortled. “Actually, he couldn’t afford a car, so I’ll use that story for now.”

While the award was given to the London store – which opened in late 2008 and received the first Don Smith Commercial Building Award for environmental sensitivity, design and construction two years later – the environmental practises used there are also found in the company’s other units in Windsor, Chatham, Sarnia and now, Kitchener.

Tepperman revealed that within the company’s ten-year 2025 Vision are six Guiding Principles with one being environmental leadership. “Each department, whether you’re in I.T., warehousing, or sales will incorporate these six principles into their annual strategic plans,” he explained.

“So, these environmental initiatives are company-wide. We do have specific tests in various locations like electric car charging stations in Kitchener and solar we’re planning to test in London.

“Each quarter when I do my town halls in each store, we talk about what we done with environmental sustainability during the last period and new initiatives going forward,” he continued. “For Tepperman’s, it’s not just about helping the environment, it’s about being a leader in environmental sustainability.”

Each of the five stores also has their own robust internal recycling program. “It’s everyone’s responsibility to find ways of reducing waste and new ideas to recycle,” Tepperman said. “For example, one store asked why we were printing three copies of every order. It turned out we didn’t need to file one copy simply by storing the digital version. That alone saved hundreds of thousands of pieces of paper. Sustainability is a feel-good thing but it also can save money.”

It’s also about measuring the Andrew Tepperman results, which is why the London (at left) and the team store was honoured by the Chamfrom the Tepperman’s ber of Commerce this year. store in London celebrate Last year, Tepperman’s divertbeing presented with ed 30 tons of plastic, 520 tons of the award for award for cardboard and 312,000 cubic feet environmental leaderof Styrofoam from local landship by the London fills in London. It’s also about Chamber of Commerce being open about its efforts. In and its London Business a partnership with Waste SoluAchievements Awards tions Canada, Tepperman’s has program earlier this year. launched a web site available where the public can review accurate tracking of the waste disposed of by the facility, which houses both an 85,000 square foot store and a 100,000 square foot distribution centre. (teppermans.wastetracking.com).

Across the company, Tepperman said they specifically look at three areas: reducing energy consumption, minimising use of landfills and producing less garbage. “Each area is measurable,” he said. “Whether going from 250,000 pieces of paper to 125,000 or retrofitting our 50w lights with 8 watt lights and seeing energy reduction drop by 65% – everything regarding environmentalism is quantifiable.”

This also means each area can produce a return on investment (ROI) as well. “Some items, like a foam emulsifier may have a 1.5 year ROI while others like LED parking lights may be 2.5 years,” Tepperman pointed out. “But the length of time is not as important as whether it fits into our strategy of reduction and conservation. We’ve also partnered with our recycling company whereby we can see – online – what percentage of everything we sent them was actually recycled. To date, we’re at 76% and our plan is to get to 90%.”

The third generation full-line furniture retailer has plans to further solidify its environmental stewardship. It is currently looking to participate in the solar FIT program } HomeGoodsOnline.ca

25

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

through the Ontario Ministry of Energy – which will see solar panels installed on the roof of at least one store. It installed electric car charging stations at its recently opened fifth store in Kitchener and is also seeking out partnerships with stakeholders in higher education to help expand their leadership in this year.

The company has partnered with the master’s degree program in environmental sustainability at the University of Western Ontario and taken on one of its students on a four-month co-op program. Though based in the London store, the focus will be on company-wide opportunities. “For example, we may ask them to develop an innovative mattress recycling program, including how it will be executed and the ROI it would generate,” Tepperman said.

“Or we may look at how they can improve how we communicate our environmental initiatives to the general public.”

In fact, Tepperman believes communicating their efforts will be great marketing for the company, appealing to consumers who hold similar values about environmental protection.

“I met with the local Junior Achievement a while ago and during a tour of the store, they were amazed at how we recycle foam using an emulsification machine,” he recalled.

“Their first reaction was ‘wow, we didn’t know you did this and this is the type of thing that would make us want to do business with you’.

“We already communicate this on our front entrance recycle bins by stating how much cardboard, foam and plastic we prevented from going into the landfills last year, “ he continued, “Going forward, our plan is to better leverAndrew Tepperman (left) and Tepperman’s team member Allan White show off the company’s polystyrene densifier, which can compress 50 cubic feet of what is commonly called Styrofoam down to one, which is then sold to a distributor who re-purposes it.

26 HGO merchandiser

age the digital platforms like our web site and social media. Long term I would like to have a live feed or at least a more timely update on our sustainability results posted with greater frequency.”

A long-time member of the North American Home Furnishings Association – an industry association of furniture stores based in California – Tepperman was featured last fall in an issue of the Retailer Now magazine because of a ritual practised most Tuesdays that is known as Styrofoam Night.

It’s not promoted to customers but it does generate a small profit. According to the report, a few team members gather the boxes and containers piled high with all the polystyrene – commonly called Styrofoam – collected that week and put it into a machine that grinds up the material, condensing a truckload of waste into management threefoot bricks. The condensed material, previously used to pack all of the furniture and appliances delivered to customers every day, is then sold to a company that keeps the environmentally indestructible polystyrene out of the landfill by recycling it.

Andrew Tepperman learned of the machine while touring Houston’s Gallery Furniture a few years ago. He ordered one immediately upon returning home within three months Tepperman’s already small environmental footprint was getting smaller.

“One of my better investments if I can say so myself,” he told Retailer Now. The company now makes about $2,000 a month recycling the polystyrene that once went to landfills.

He firmly maintains being a good environment steward is a vital part of being a successful retailer.

“We believe that we can run a successful business and still do the right thing,” he said. “Bottom-line is that if we can source an item that has less negative environmental impact or produces less waste at a reasonable cost, we will.

When the entire company has this in mind, the momentum is incredible and it becomes a sustainable practice. It’s not forced. What I’ve noticed is that many of our younger employees and potential new recruits gravitate to this. It’s important.”

Tepperman’s has also been nominated for the Sustainability Award given by the Ontario Business Achievement Awards program. HGO MICHAEL J. KNELL is the publisher and editor of Home Goods

Online and all of its platforms. He has observed, researched and written about Canada’s furniture and mattress industry for the past three decades.

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PRODUCT STRATEGIES

What’s hot in

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

BY ASHLEY NEWPORT

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T THIS YEAR’S CANADIAN FURNITURE

Show, renowned designer and television personality Steven Sabados took the stage to walk attendees through a fun and informative lesson on “what’s in, what’s out and what’s hot.” Although you might think a well-known designer would be not quite a step ahead, but certainly a step aside of typical market trends, his style advice had, surprisingly, already been heeded by manufacturers who know glam and gloss as well as natural tones and pastels are the trends to watch for.

It’s no secret the world of furniture has changed. These days, the average consumer has been emboldened by literally scores of fun and funky design shows on TV, endless Pinterest boards, Instagram posts and Internet access to Asian and European pieces they may have never discovered five or ten years ago.

While this has certainly presented challenges for upholstery manufacturers, it also created opportunities. Today, they provide retailers – and, by extension, their customers – with bold, fun and functional pieces created to satisfy everyone’s inner designer. More fortunately still, a lot of manufacturers are more than up to date on what’s hot and are delivering the goods.

WHAT’S HOT IN COLOUR?

“Definitely blue,” says Angelo ‘J.R.’ Marzilli, executive vice-president of Décor-Rest Furniture, the Woodbridge, Ontario-based stationary upholstery specialist. “We’re seeing all shades of blues in all sorts of patterns, like paisley and chenille. I think every colour makes a circle and it’s time for blue to come back.”

At CFS, the blue resurgence was readily apparent and the renaissance makes sense.

Blue is a bolder neutral. It’s more exciting than a beige or brown (and can straddle the line between true blue and grey-blue) but still easy to work around when furnishing a room. Unlike a bright red sofa or pink velvet ottoman, it’s non-threatening (and significantly less bold).

Other manufacturers have noticed a shift towards brighter and less orthodox shades in general.

“There’s an awakening in the Canadian spirit,” says Karina Sunderji, vice-president of the Calgary-based Dynasty Furniture. “People want to be bolder and get away from brown and grey. We’re seeing a surge in blue, such as in teals and navies and light shades. Greys are morphing into blues.”

The transition from grey to blue is interesting, especially since Sabados boldly declared that greys – long reigning as the trendy new neutrals – are on their way out.

Although he was careful to say the colour will continue to sell and manufacturers are still

likely to produce stormy-tinged upholstery.

“We introduced 20 new grey shades at CFS,” Sunderji says.

Other experts also agree that, right now, it’s all about blue.

“It’s still blue and it’s been that way for about five years,” says Diana Sisto, creative director for the family owned Brentwood Classics, the custom upholstery specialist based in the Toronto suburb of Vaughan. “In home furnishings, trends last longer than in fashion.

We’re seeing all different shades of blue, such as deep navies and cloud and powdery blues.”

Others are noticing a thirst for pastels.

“Pastel colours are in as well as blues,” says Joel Dupras, design and art director for Huppé.

“Even pink, or a pink that’s almost beige.” The Victoriaville, Quebec headquartered case goods producer recently launched its firstever upholstery collection in collaboration with Italdivani, the Montreal soft goods maker with whom it recently entered into a strategic alliance.

If the colour can work with a luxurious fabric, it’s even better.

“We’re going to be showing a deep royal navy blue on a crush velvet sofa in Las Vegas,” says Marzilli. “It’s the 7046 S&C line in hot navy. }

Above: Inspired by midcentury Scandinavian design, the Oslo sofa from G. Romano is striking in its simplicity as its clean lines, organic shapes and natural hard wood base make it ideal for a retro themed interior. It is available in a variety of patterns and colours and features foam-filled cushions on its seat and back.

Left: With 21 available pieces, the Zane from Stylus Furniture is a contemporary modular sectional finished with a sleek metal leg. It can be configured to fit any space or as conventional sofa, loveseat and chair and is offered in over 500 fabrics – including this hue of blue.

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The Baz chair from Brentwood Classics is covered here in a fabric called Bae Pebble.

Above: Hues of blue, such as the Henry New Aqua fabric seen here on the new Moulins chair from Brentwood Classics, seem to be the current trend leaders on furniture floors across the country.

Top: The L706 is part of Superstyle Furniture’s LeatherBrand collection.

Seen here is the twopiece sectional which boasts classic styling, feather-blend seating and a top grain Italian hide with ‘Savage’ finish. Other pieces are also offered.

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Our glamour has never dissipated and [demand] has never gone down. People love that look.”

(S&C is Steven & Chris, as in Steve Sabados.)

WHAT ABOUT STYLE?

“Styling is quite sleek,” says Dynasty’s Sunderji. “Transitional contemporary is big and oversized and overstuffed is gone. People are more cognizant of style because they watch HGTV and read style guides. We’re seeing cleaner and thinner track arms or arms with a flare and also lower-profile seating and that has a lot to do with the growth of the condo market.”

Another interesting trend is the demand for more configuration styles.

“People are looking for modular ability,” she continues. “They might want to transition from a condo to a house and they want a frame that can go left or right or be ‘U’ shaped. They want to build their own configuration, so that’s a program that’s more desired by retailers.

We’re also seeing armless sofas and armless chairs and floating ottomans. We’re seeing configuration as another element, just like style and fabric.”

Meanwhile, manufacturers who haven’t traditionally made product in the category are now embracing motion upholstery and incorporating it into their offerings.

“We’re working on motion sofas and sectionals,” says Dupras. “We’ll release one collection in October and another one in April. The back and feet will come out and so will the headrest, but when it’s closed, it’ll look like a regular sofa. It’ll be on legs, but it’ll be as comfortable as a big motion sofa.”

The focus on size is important, as the condo market has dramatically changed how furniture is designed. Most producers still make generously sized pieces for the rural and suburban markets, but almost every one of them has had to work smaller-scale pieces into their lines – but without losing any of the comfort.

“In the Canadian and U.S. markets there are condos everywhere,” says Dupras. “Smaller spaces need smaller furniture, so that trend will last for a long time. There also isn’t as much big house construction in the suburbs. We do contemporary, so that style fits us. We do a sectional where you can reverse the seats and that makes it easy to move because you can change the configuration. People like a softer look, or a shape with a little more tailoring.

People aren’t going for a rounder sofa, but a more rounded cushion.”

That said, there is still demand for bigger and more luxurious pieces.

“People like really clean-looking large pieces,” says Diana Sisto of Brentwood. “We’re getting a lot of inquiries about large scale.

There’s still demand for Euro-style, deep seating furniture. Restoration Hardware has had a lot to do with that. [What they have] is stunning and very clean. Whatever they do, they do it right.”

There has also been a shift towards opulence.

“People want the glam looks,” says DécorRest’s Marzilli. “I think the import market killed the basic looks. Every big box store would come out with an import lookalike at a good price point, but it got boring. People love a touch of wood, nail studs and curved sofas and curved furniture.”

Also, mixed metals are still in.

“Sofas are more and more on legs and off the floor,” says Huppé’s Dupras. “We’re seeing more and more metal legs and wood legs in }

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Huppé’s first forey into upholstery included the Charles collection (seen here) combines a fabric covered sofa with a chair in leather.

Its solid birch legs are available in any of the company’s range of finishes.

black with a matte finish. It brings a light feel to the sofa. It feels more aerial, like it isn’t taking up as much space even if it isn’t any smaller. It’s less bulky.”

Golds are also selling well – and inspiring people to play with mixed looks.

“People like clean, modern pieces that have sleek and shiny metal legs,” says Sisto. “Gold and rose gold is still very popular. Brass is popular too. You can mix metals though and that was never done before. There are no rules anymore and you don’t have to re-do everything [when you get a new piece]. You can be more eclectic and unique.”

TRENDS AT A GLANCE: WHAT’S HOT … AND WHAT’S NOT

WHAT’S HOT: Blues and pastels.

WHAT’S NOT: Greys, although a lot of manufacturers, such as Décor-Rest and Dynasty, are still producing them.

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WHAT’S HOT: Sleeker, smaller pieces – especially those with metal legs.

WHAT’S NOT: Huge pieces (although Brentwood still sees demand for more generouslysized sofas).

WHAT’S HOT: Matte metals, such as metal legs with a brushed nickel look.

WHAT’S NOT: Same-same looks that don’t stand out. There’s a thirst for more elegant, standout pieces.

ANYTHING NEW IN FABRIC?

Although the return of velvets is interesting – although not surprising if people are indeed hungry for more luxurious pieces – the technological improvements in strain-resistant fabrics are even more so.

“We’re using Crypton Home Performance Fabric,” says Sisto. “It’s been made available through U.S. mills and the price is great and the look is amazing. Coffee or liquid will run right off it and now you can get Crypton in velvet, chenille and linen looks. Unlike Sombrella, it isn’t made with only one kind of fabric. It can be solution died with fabric from our mills and the selection is huge.”

Crypton fabrics ensure upholstery pieces – even fancy white ones – hold their lustre for as long as possible. They’re also important to anyone who doesn’t want to sacrifice beauty for the sake of practicality. Sisto points out that it’s rare for modern family homes to have a formal living room. Since the ultra-fancy, permanently closed off ‘for decoration only’ room is fast becoming a thing of the past, it’s important for manufacturers to do what’s possible to provide stain and liquid-resistant fabrics that allow consumers to live while maintaining high-quality furniture.

“We’re launching [our Crypton pieces] with Hudson’s Bay this year,” Sisto says. “There was a push back in the past because stores would sell warranties and scotch guard solutions, so that was a challenge. But this is stain and odor resistant and really easy to clean. Stores can still sell dry warranties, but the furniture is better protected. We have 20 skews of this

fabric. It can be applied to any frame. We have four patterns in five colours each and we’re hoping to expand that in future markets.”

WHERE DO MANUFACTURERS GO FOR INSPIRATION?

When it comes to design inspiration, it’s good to look beyond the furniture world. Although people don’t tend to replace their sofas as often as they do their shirts, trends in the fashion world – such as mixing metal colours in jewellery – tend to make their way into case goods and upholstery.

When manufacturers are hunting for hot new looks, they tend to look at both furniture and the runway.

“We tend to see what’s going on ‘on the runway’,” says Karina Sunderji of Dynasty. “We look at what’s happening in home and garden and we look at what’s trending in the European markets. [What we find in the European

markets] usually has to be modified to suit Canadian tastes. But knowing colour trends is huge and that tends to go with fashion. There’s been a huge step forward for the Canadian consumer in terms of style.”

Other manufacturers see trends in apparel make their way into upholstery in more abstract, but still appealing ways.

“I would say that I see men’s apparel, a blazer with a pocket square or lapel detail, in sofas,” says Décor-Rest’s Marzilli. “There are some similarities because fashion is all about colour and trending. We love showing sofas with an accent chair that has a completely different fabric.”

Other companies look everywhere to discern what’s happening (or could happen) in the market.

“We look at fashion, design and architecture,” says Huppé’s Dupras. “We also look at magazines and blogs. We do a lot of shows in Europe and I’ll be in Paris in September. At those shows, you see accessories and fabric and you can get inspiration from a lot of things. We also look at what was done in the past and find application for our contemporary style. Old furniture if often well-made and you can learn about functionality and style and see how to adapt.” HGO

Above: The Evora collection from Huppè is a small-scale sectional with reversible cushions and matte black metal legs as well as contrast piping around the arms and the back.

Left: Blue is proving itself to be the hot colour for upholstery fabric these days. The Model 7646 from Décor-Rest is a good example. Part of the S&C Collection, it features loose-back cushions with box seats, double-stitching details and modern metal feet and is described as “a true velvet, with the softest hand imaginable.”

A regular contributor to HGO Merchandiser, ASHLEY NEWPORT is a Toronto-based freelance journalist who writes primarily for trade and business publications. Her specialties include food, hospitality and emerging social/business trends.

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MARKET REPORT

What was hot…and what was not…at the

CANADIAN FURNITURE SHOW CFS has undergone a makeover over the last few years, shortening its once cumbersome moniker, cutting a day from its run time and welcoming attendees during the summer rather than the winter. While it made in-roads in terms of style, welcomed more beautifully curated displays and some style-savvy celebrity speakers this year, attending retailers say they want more Canadian product and even more striking exhibits. BY ASHLEY NEWPORT

As always, this year’s Canadian Furniture Show began with the presentation of this year’s CHFA Awards at a dinner held by the Canadian Home Furnishings Alliance. Seen here after the festivities are (from left to right): Stephane Perrault and JC Perrault of the Montreal-based JC Perreault, 2016

34 HGO merchandiser

Retailers of the Year for Eastern Canada; Angelo Gallo, president of Statum Designs, the 2016 Lifetime Achievement Award honouree; and, Daniel Johannesson and Michael Gustavsson of Alberta’s Konto Furniture/Sofa Land, 2016 Retailer of the Year for Western Canada.

T

HE 44TH ANNUAL EDITION OF

the Canadian Furniture Show (CFS) hit Toronto’s International Centre during one of balmiest weekends Ontario has seen so far, welcoming well over 200 exhibitors and treating attendees to some high-profile celebrity appearances. Always a work in progress, the show set itself apart from last year’s event by slicing its runtime to a more compact threeday schedule (running from May 28 to 30) and doing away with the controversial – and much maligned, in some circles – Consumer Day. This country’s only national furniture industry trade event generated a little buzz by welcoming acclaimed Canadian designer and television personality Steven Sabados to the Hall 5 stage to talk about the latest trends in home décor. The talk notably marked Sabados’ first public appearance since the tragic death of his business and romantic partner, Chris Hyndman, shortly after last year’s market.

In 2015, Sabados and Hyndman – who designed pieces for the popular S&C brand and starred in the popular CBC-TV design show Steven & Chris — spoke at the show’s inaugural (and last) Consumer Day about what was hot (and what was not) in the furniture and décor world.

About two months after last year’s June show, people were shocked to discover that Hyndman, one part of the bubbly and gregarious design duo, had been found without vital signs in a laneway near the Toronto home he shared with Sabados. After almost a year of silence, Sabados returned to public life to chat with the CBC about his partner’s untimely passing and some upcoming design projects and to appear at the market to give a attendees a little light-hearted lesson on what’s trending.

Sabados’ talk, moderated by the buoyant

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

and engaging Cheryl Grant, kicked the show off on a high note. Appearing on stage in good spirits, a bespectacled Sabados looked stylish and energetic with a vibrant orange shirt, dark blazer and jeans. His well-organised shop talk walked retailers and manufacturers through a little lesson on “what’s in, what’s out and what’s hot.”

So, what is hot?

Surprisingly, grey is not. Or at least it’s cooling down. That said Grant and Sabados were careful not to advise against producing or retailing the once wildly popular neutral.

“We have a lot of grey, so don’t judge if you go to Décor-Rest,” Sabados remarked. “But grey has had its heyday. Grey and yellow was a great combo and it was a great neutral, but it is a little muddy and depressing and we want to be happier in our interiors. Grey has been an important distressed look and it will sell for now, so don’t panic.”

What’s also out? All white interiors, simply because they’re not practical for anyone with children, pets or a habit of spilling red wine.

As for what’s in, Sabados and Grant sang the praises of neutral pastels that aren’t overly sweet, bold glamor (pieces that evoke images of Marrakesh and spices and high fashion), organic primaries (shades of nature, such as

brown, green and blue) and hot black (statement pieces that give rooms a remarkably sophisticated and bold pop).

Sabados said the market seems to be moving away from primitive surfaces and finishes, which was interesting and, perhaps, unexpected. After all, reclaimed wood and rougher-looking pieces were still all the rage last year.

“Poured concrete and rough surfaces [are out],” said Sabados.

“We want something cleaner and easier.”

That said, he and Grant cautioned retailers against panicking. “It can still sell, it’s just fading out,” Grant added.

In terms of surfaces that work, Sabados and Grant advised attendees to think about multi-faceted (such as lacquered walls that look woven) and artisan surfaces (such as an exaggerated herring bone floor). The pair also made the bold proclamation that mid-century modern is losing its lustre.

“It is a modern, fresh and youthful interior and the problem is that it can be taken too literally,” said Grant. “Millennials liked it because it was unfamiliar to them. We still have some pieces in our [S&C] line because bits and pieces are still interesting in a space.” }

Cathy Loblaw (second from right), president and CEO of Ronald McDonald House Charities of Canada, is seen here accepting a donation of $10,000 from Carl Mastrovito and Bruno Pittarelli of Tempur Sealy Canada at this year’s Canadian Furniture Show. Looking on (at right) is Michael Vancura of Mega Group/ BrandSource Canada.

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Faux vintage looks are also, Sabados believes, on the chopping block. That said there will always be room for real vintage looks.

“Vintage is still hot and will continue,” he said. “The combo of new and old is still hot. If it’s too manipulated, it doesn’t look as good. I just feel like I want to clean it.”

Strangely enough, Sabados said that a return to glitz and glam is in the air. “Glamor used to be lots of crystals and chandeliers, but this is modern glam and it’s got a lot of warm metals and gold. It’s high gloss and we haven’t had glam in focus for a long time. The baby boomers want this glam interior in their condos when they downsize. We’re moving away from rustic and vintage,” he enthused.

How are retailers feeling?

Paul D. Schreiter (right), owner of Schreiter’s, a single-unit 120-year-old family furniture store located in Kitchener, Ontario wants to see more Canadian furniture manufacturers exhibit at the Canadian Furniture Show.

36 HGO merchandiser

Every year, retail buyers walk the halls looking for pieces to round out their assortments.

While the show typically provides a healthy degree of choice, many retailers wished aloud for broader representation of Canadian manufacturers and more sophisticated booths curated with style in mind.

“My experience has been positive,” says Paul Arcoite, the owner Urban Settler, a single-unit operation based in Fernie, British Columbia.

“We have some specific requirements. We’re looking for Canadian-made case goods. We’re looking for new trends and styles. I like the Ruff Sawn handcrafted furniture collection. I like the fact that the surfaces are finished. I agreed with [Sabados’] that the unfinished surfaces are fading out. We also manufacture furniture out of reclaimed wood and we’ve always had a finished surface, so it has the look and the character, but it’s a practical finished surface.”

As for whether the show is offering the fashion-forward pieces that Sabados and Grant talked about, Arcoite says the show hasn’t evolved too much over the last five or so years.

“It’s about the same. I think Hall 5 looks like it has better quality [exhibits]. I find there are just acres of low quality product here and lots of low quality sofas and tons of mattresses.

Not a lot of effort into building nice booths. I see a lot of black curtains and people throwing their furniture down on the carpet. It’s not impressive. I don’t know if this is a service to the buyers,” he told HGO. “They [Sabados] talk about curating and maybe [the organisers] could curate this show a little better. Maybe they could do a smaller show with higher quality product. That’s my opinion.”

Other buyers were also a little underwhelmed.

“I would like to see more Ontario and Quebec manufacturers in the show,” says Paul D. Schreiter, owner of Schreiter’s, a single-unit 120-year-old family furniture store located in Kitchener, Ontario. “I don’t know what else to say about it. The large influence of bedding is not really why I’m here, I’m here for soft goods and case goods and lighting, so I would like to see more furniture than rugs and mattresses.”

“We’re a contemporary house, which is a small percentage of the products that are here. They are represented fairly well by a few firms such as G Romano and Stylus. We’re not interested in offshore upholstery. [The show] hasn’t improved over the years,” he continued, adding, “I think they should lower the rent so they can get more manufacturers in here. It’s costly for the smaller manufacturers to get in here. The location is fine and they’ve made a huge amount of building improvements in the way it’s set up for food and bathrooms, it’s a good show that way.”

Other retailers are relatively happy with the show and some of its standout booths.

“It’s good,” says Glen Saunders, owner of Flying Fish, a furniture, home décor and kitchen store located in Nanaimo, British Columbia.

“It’s good to see what’s new and different in Canada. It’s good to check out Canadian manufacturers, especially with the U.S. dollar right now. We always try to buy Canadian, so it’s good to come to this show to see what’s new.”

As for memorable exhibitors, Flying Fish buyers were also quite taken with Ruff Sawn.

“For me, it’s Ruff Sawn,” says Penny Richards, Flying Fish furniture manager. “It’s a Canadian company and the owner is just doing a hell of a good job creating a good product and his business is growing.”

Like other buyers, Saunders wishes there were more Canadian manufacturers.

“The main stage is good and the presentations [at the show] are excellent. It would be great if we could have representation for some of the other manufacturers,” she said, noting, “There are a lot of manufacturers in other provinces that aren’t represented here.

We’d like to see more manufacturers from BC, Saskatchewan and Manitoba. It’ll help us be able to buy Canadian.”

The jury for this year’s ‘best display’ award presented a special citation to Atelier St-Jean, a small Quebec producer for the show’s best chair (seen here) which was featured in the Empreinte Québécoise display.

What do exhibitors think retailers want?

Well it’s clear a sizeable portion of buyers want more selection – particularly when it comes to Canadian-made case goods and upholstery – exhibitors have to work with what they have to attract the myriad buyers who come through the doors. In order to garner those coveted orders, they have to know which way the winds are blowing in terms of looks and trends.

Some are, it seems, on the same page as Sabados, showing that there is indeed cohesiveness among manufacturers, retailers and designers.

“Trend is a big word, and what people are looking for are trends, there isn’t just one trend,” says Douglas Karpman, vice president of sales for Renwil, the Montreal-based decorative accessories specialist.

“We identify the five major customer categories in the market and they are new traditional, authentic eclectic, modern glamour, Scandinavian casual and bohemian chic,” he said. “New traditional is for people like my son who are watching Game of Thrones, it has medieval elements. The next one is authentic eclectic and we call it the Downton Abbey story. Modern glamor is a good niche for the Canadian market, that’s where you’re adding the glitz. Scandinavian casual is all the Nordic colours, like the pastels and other colours that used to be at IKEA and Target. Bohemian chic is the bright bold colours and that trend started with FIFA and the Olympics, but now that colour palette is much more crisp and solid.

“When independents are in the store, we show them how we can be interior designers of the store,” Karpman continued. “We show them how to put everything together. The selling trend is putting everything together in your store to get value added sales. People want the mirror and rug and lamp and upholstery all to come together. It’s about making it easier for the retailer and consumer. You all want to talk the same type of design language.”

Other exhibitors, such as Chairtech Modern

Furniture, the Toronto-based resource which has a permanent showroom in the International Centre’s SOFA (Source of Furniture & Accessories) annex, were happy with the show and how it’s evolved to serve buyers better.

“It’s been good because of the changes to the show,” said company president Michael Rewucki. “Last year it was a change to the summer and we had the public come in and some people didn’t want it and others were excited about it. They didn’t do that this year and personally I think any time you can connect with customers on any level, it’s good. But this year with the three-day, compacted show, you can focus more.”

Rewucki also noted said the relatively low value of the Canadian dollar has been forcing many throughout the industry, particularly retail buyers, to think outside the box.

“I think the Canadian dollar is an issue, but I think because of that, we have a lot of retailers who are trying to find something different. Not necessarily in terms of design, but in terms of type of product. They might be looking for something that’s ergonomically correct or a high low table for design, but they want something less expensive that will fit the need of their customer,” he said.

“About a year and a half ago when the dollar really dropped, we’re starting to see people deal with that by buying better products,” he continued, adding, “We’re seeing a trend toward smaller products that are functional, so tables with extensions and products that do everything in a small work space. There’s still a mix of woods and metals. Brass, bronze and rose gold is still somewhat popular, but it looks like we’re going away from shiny metals to more matte metals, so maybe a brushed stainless steel or a nickel finish. People are taking a bolder step in colours and types of fabrics.” }

Michael Rewucki, president of Chairtech Modern Furniture, seen here in his company’s permanent showroom at the International Centre, said the relatively low value of the Canadian dollar was forcing many retail buyers to think outside of the box when adding to their assortments at this year’s CFS.

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What are manufacturers noticing?

Other manufacturers, such as Huppé – who always operate out of a well-designed display space – are happy with the show, but would also like to see more domestic product.

“The people are looking more for the sofas and mixed materials,” says Jean-François Nolin, president and business development director of the Victoriaville, Quebec-based Huppe. “Mixed wood and more fabrics and

Attendance and activity up this year, CFS OFFICIALS REPORT

ttendance was up compared to 2015 and the feedback received to date has been very positive, the organisers of the 44th edition of the Canadian Furniture Show reported recently.

“This year, thousands of attendees continued to feel the effects of the wave of renewal that swept through the event in 2015, with more than 65 new exhibitors on the show floor. The visitors’ experience was further enhanced by the addition of special activities and spaces that enlivened the 500,000 square feet of show floor set up by some 233 exhibitors,” Pierre Richard, president and chief executive officer of both CFS and the Quebec Furniture Manufacturers Association, said in a statement.

Among the new initiatives marking the 2016 edition were two wellattended presentations, one by media personality and designer of the S&C brand, Steven Sabados, and the other by David Chilton, bestselling author of The Wealthy Barber.

Plus, two unique design spaces were added: the FABX2016 booth dedicated to window coverings, wallpaper and fabrics, which also included a special event on Monday, May 30.

Innovative design was featured through L’Empreinte québécoise, which displayed avant-garde products co-created by designers from seven companies.

Visitors also enjoyed several relaxation areas including a spa, a Spanish pub, and a business lounge.

“We are pleased with this 44th edition. We had more visitors and buyers than last year, the atmosphere on the floor was great, and reports from most exhibitors we talked to were very positive!” Richard enthused, although exact attendance figures were not published.

He also noted there was a significant increase in trade visitors from the United States.

“In short, having gone from a four-day to a three-day event seems to have intensified traffic in the halls and generated good benefits to all,” Richard said, adding, “In the next few weeks, phone and on-line surveys will be conducted with over 10,000 current and past show participants.

“Our objective is to continue to foster the show’s evolution by listening to the needs and desires of participants, and by adapting the best practices of the trade show world to our reality. That is why we constantly take the pulse of the industry. Our team will continue to expand the efforts needed to ensure the success and sustainability of the show. This is and will continue to be our modus operandi,” he continued.

The 2017 edition of the Canadian Furniture Show will be held from May 27 to 29 at the International Centre in Mississauga, Ontario.

38 HGO merchandiser

more products with concrete and metal.

There’s less wood and uniformity. I like G Romano and Trica – they’re people I really respect. There are a lot of beautiful booths. I’d like to see more Canadian manufacturers, and hopefully a bigger crowd as well.”

Other manufacturers such as Décor-Rest, the Toronto-based upholstery specialist (and producer of the S&C label of sofas and chairs) are also happy with the show and the good energy it tends to evoke in most guests. Interestingly enough, Christina Marzilli, chief operating officer of the family owned and operated producer noted that, judging by the exhibits and customer demand, there does seem to be a shift towards glamor (at least for some buyers).

“The market sounds positive,” she says. “Being an outside showroom, the attendance was good and everybody was very positive. We found that navy is popular and people are going to that and also the teal colours. I find it’s either very soft and comfortable and casual and natural, or they like the glitz and the glamour.”

CFS isn’t going anywhere

It’s no secret CFS is often overshadowed by the larger markets in the United States. But despite rumours and often expressed concerns that the market is dying or going to die at some point in the not-too-distant future, regular attendees aren’t anxious to see it go anywhere. This is especially true for those who recognise this event attracts a buying crowd who doesn’t typically attend Las Vegas or High Point. It also helps the organisers notice what’s trending in the market.

“Retailers are looking to see what’s hot and what’s innovative. Most of our retailers don’t go to High Point and Las Vegas, about 85% of our retailers only come to CFS and they want to see what kind of deals they can get,” says Pierre Richard, president and chief executive officer of both CFS and the Quebec Furniture Manufacturers Association, which has operated the event since it was founded.

“What seems to be selling well is the cleaner lines and the darker woods and multi-material combos of wood, glass and metal. Ecofriendly furniture is interesting, especially to the younger generation. There are tastes for everybody,” he notes. HGO A regular contributor to HGO Merchandiser, ASHLEY NEWPORT is a Toronto-based freelance journalist who writes primarily for trade and business publications. Her specialties include food, hospitality and emerging social/business trends.

INDUSTRY CALENDAR September 22 to 25, 2016 INTERIOR DESIGN SHOW VANCOUVER Vancouver Convention Centre (West Building) idswest.com

December 4 to 7, 2016 SHOWTIME INTERNATIONAL TEXTILE MARKETING ASSN. High Point, North Carolina showtime-market.com

October 22 to 26, 2016 HIGH POINT MARKET High Point, North Carolina highpointmarket.org

January 16 to 22, 2017 IMM COLOGNE THE INTERNATIONAL INTERIORS SHOW Koelnmesse GmbH Cologne, Germany imm-cologne.com

November 24 to 26, 2016 ANNUAL CONFERENCE QUEBEC FURNITURE MANUFACTURERS ASSN, Omni Hotel, Montreal afmq.com/en

ADVERTISERS’ INDEX

November 30 to December 1, 2016 IIDEX CANADA Metro Toronto Convention Centre Toronto iidexcanada.com

Pages 2-3 Phoenix AMD International 41 Butler Court Bowmanville, ON L1C 4P8 T: 800.661.7313 F: 905.427.2166 phoenixamd.com

Page 11 Tempur-Pedic Tempur Sealy Canada 145 Milner Avenue Scarborough, ON M1S 3R1 T: 800.268.4414 tempurpedic.ca

Page 5 Stearns & Foster Tempur Sealy Canada 145 Milner Avenue Scarborough, ON M1S 3R1 T: 800.268.4414 stearnsandfoster.ca

Page 15 Magniflex 1000 5th St., Suite 220 Miami Beach, FL 33139 T: 905.481.0940 magniflex.com

Page 7 Zucora 552 Clarke Road London, ON N5V 3K5 T: 800.388.2640 zucora.com

Pages 20-21 Serta Canada 40 Graniteridge Road, Unit #2 Concord, ON L4K 5M8 T: 800.663.8540 sertacanada.com

January 19 to 22, 2017 INTERIOR DESIGN SHOW Metro Toronto Convention Centre North Toronto interiordesignshow.com January 22 to 26, 2017 LAS VEGAS MARKET World Market Center Las Vegas, Nevada lasvegasmarket.com

Page 27 Las Vegas Market 475 S. Grand Central Pkwy.

Las Vegas, NV 89106 T: 702.599.9621 F: 702.599.9622 lasvegasmarket.com Page 31 Protect-A-Bed 1500 S. Wolf Road Wheeling, IL 60090 T: 519.822.4022 protectabed.com Page 44 Home Goods Online P.O. Box 3023 Brighton, ON K0K 1H0 T: 613.475.4704 F: 613.475.0826 homegoodsonline.ca

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