HGO Spring 2025

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FAMILY-OWNED TEPPERMAN’S JOINS THE CENTURY CLUB

contents

feature stories 10

A CENTENNIAL CELEBRATION Tepperman’s, one of the largest independent home furnishings retailers in Canada, marks its 100th anniversary this year. The century-old brand’s decades of success can be attributed to the unique way it does business going back to the family-owned company’s roots.

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LIKES, LAUGHS AND LOYALTY To improve your social media marketing, it’s necessary to understand platform usage, how to optimize content according to user preferences, and how to integrate influencers and creators into your strategy.

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BRIDGING THE SUSTAINABILITY GAP In the bedding industry, manufacturers work hard to improve their environmental performance, but most retailers have a hard time explaining sustainability practices to customers, and consumers often don’t know what to believe.

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A CULINARY AWAKENING In the majority of homes, the kitchen is one of, if not the most, hardest working rooms. Major appliances occupy centre stage, so both their aesthetic appeal and practical aspects factor into consumers’ purchase decisions.

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SHOPPING CART ABANDONMENT Retailers face a multitude of ongoing challenges, including attracting customers and keeping them in-store so they make a purchase. There are some turnoffs that are guaranteed to lose you customers, but the good news is they can be rectified.

front to back 4

FROM THE EDITOR

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WHITE GOODS

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THE CONSUMER

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SLEEP SHOP

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BY THE NUMBERS

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RETAIL MATTERS

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IN FOCUS

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TECH TALK

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TRENDSPOTTING

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OBSERVATIONS

from the editor

NAVIGATING TARIFF COMPLEXITIES The first months of Trump’s second presidency have been whiplash-inducing. He has imposed, rescinded and revised tariffs at a dizzying pace, creating trade uncertainty, rattling economies worldwide and battering U.S. credibility in the process. The introduction of tariffs aimed at Canada, and countermeasures implemented by our federal government, have far-reaching consequences for businesses, particularly small to medium-sized ones that must find ways to survive the unwanted financial stress amid already slim margins. It is unsurprising, then, that tariffs are the focus of this issue’s Observations or, as I like to informally call it, ‘final say,’ since it’s on the last page. Four leaders in the Canadian furniture industry share how tariffs are affecting their business and what they’re doing to minimize the impact.

Trump’s tariffs are not just hurting businesses north of the 49th parallel; they’re also having a cooling effect on this country’s housing market — a barometer of economic health that influences the success of the Canadian furniture, mattress and major appliance industries. Contrary to what was predicted heading into this year (given the surge in home sales and rise in prices in the final months of 2024, thanks to the easing of borrowing costs), homebuyers are sitting on the sidelines, waiting out trade war fallout. By the Numbers explores what’s now forecast for the resale and new construction home markets by region, as some geographic areas are expected to fare better than others.

Our profile this issue is one of the largest independent home furnishings retailers in this country, Tepperman’s. The company is celebrating its centennial anniversary — an incredible feat on its own, but to do so remaining in the same family for three generations is something to take great pride in. The milestone marks 100 years of passion and progress, and is testament to the retailer’s exceptional customer service and quality product offerings. Throughout 2025, Tepperman’s is focused on giving back to its employees and the communities that have carried it through the last century and into the next one.

Rounding out the spring edition is a slate of other good reads, thanks to the long list of writers that willfully contribute to the publication. Thank you to everyone who gives their time and knowledge. This publication, created for and essentially written by the big-ticket home goods industry, is successful because of you.

If interested in submitting an article, either to the print publication, Home Goods Merchandiser, or Home Goods Online, or if you would like to see a particular topic covered in future, contact me at claret@mediaedge.ca.

Clare Tattersall

PUBLISHER

EDITOR

PRESIDENT

ART DIRECTOR

Kris McFadden krism@mediaedge.ca Kevin Brown kevinb@mediaedge.ca

Clare Tattersall claret@mediaedge.ca Annette Carlucci annettec@mediaedge.ca

GRAPHIC DESIGNER

CIRCULATION

PRODUCTION COORDINATOR

DIGITAL MARKETING DIRECTOR

Thuy Huynh-Guinane roxyh@mediaedge.ca

Ines Louis Inesl@mediaedge.ca

PROGRAMMATIC ACCOUNT MANAGER Rhea Sood rheas@mediaedge.ca

Adrian Holland circulation@mediaedge.ca

Abhinav Dadarkar abhinavd@mediaedge.ca

SOCIAL MEDIA DIRECTOR

Steve Chester stevec@mediaedge.ca

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Home Goods Merchandiser is published four times annually — Spring, Summer, Fall and Winter — for Canada’s bigticket home goods industries. Subscriptions are free to qualified participants in Canada’s big-ticket home goods industries. Subscribe at www.homegoodsonline.ca. Readers from outside Canada may purchase subscriptions for $40 Cdn. For subscription inquiries, e-mail circulation@mediaedge.ca. Return undeliverable Canadian addresses to: Home Goods Merchandiser 2001 Sheppard Avenue East, Suite 500, Toronto, Ontario M2J 4Z8 MediaEdge Communications and Home Goods Merchandiser disclaim any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect to the results of any action taken or not taken in reliance upon information in this publication. The opinions of the columnists and writers are their own and are in no way influenced by or representative of the opinions of Home Goods Merchandiser or MediaEdge Communications.

Copyright 2025 Canada Post Canadian Publications Mail Sales Product Agreement No. 40063056 ISSN 2291-4765 Published by 2001 Sheppard Avenue East, Suite 500, Toronto, Ontario M2J 4Z8 © 2025 by MediaEdge Communications. All rights reserved.

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the consumer

LIKES, LAUGHS AND LOYALTY

Cracking the code on social media audiences not about who shouts the loudest, but who listens best BY MARIANNE PÉPIN

THESE DAYS, PEOPLE SCROLL MORE THAN they stroll. For brands in the home goods sector, that means your presence on social media isn’t optional. It’s where inspiration strikes, customers do their homework and loyalty begins.

But with platforms shifting faster than trends in throw pillows, how do you know where to focus your energy?

Based on a survey of 4,004 respondents aged 16 years old and up, the 2025 DGTL study offers

fresh insights into how people engage with social media, what kind of content sticks, and what formats drive trust and action. Paired with proven best practices, they can help you show up smarter, not louder.

NOT ALL PLATFORMS WORTH THE TIME

While 41 per cent of respondents follow brands or organizations on social media, that attention isn’t concentrated on a single app. Each platform plays a different role and success starts

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with meeting people where they already are.

Instagram is where generations converge. It’s still Gen Z’s favourite but strong among those aged 25 to 44, too.

YouTube stands out as the ultimate all-inone. Respondents use it to watch tutorials (36 per cent), find product information (20 per cent) and check reviews (16 per cent).

TikTok has officially outgrown its Gen Z-only image. It is used to learn new things by 37 per cent of respondents aged 45 years old and up, 30

the consumer

per cent of those aged 25 to 44, and 23 per cent of people between 16 and 24 years old.

Text-based platforms like Reddit now reach 26 per cent of respondents — with a notable skew toward men — while Threads has grown to 14 per cent from 11 per cent in just one year.

The bottom line?

Choose platforms based on where your audience actually spends time. Don’t try to be everywhere. Be strategic, be specific — and craft content that fits the tone, pace and personality of each platform. What works on Instagram won’t always fly on TikTok, and what pops on Threads might fall flat on Facebook.

Know the vibe, then own it.

EMOTIONS DRIVE PERFORMANCE

When it comes to content, how you say something matters just as much as what you say. The DGTL study makes it clear: emotional impact equals better results.

Seventy-one per cent of respondents say they prefer brands that deliver funny, entertaining content.

Among those aged 16 to 24, 62 per cent want ads that speak to their passions and interests.

That means people aren’t looking for sales pitches. They want to laugh, learn or feel seen. The most effective content doesn’t just sell — it resonates.

So, what works best?

A mix of polished brand visuals and lo-fi user-generated content (UGC) hits the sweet spot. A high-end kitchen reveal with top-line appliances might earn the save, but a casual behind-the-scenes cooking demonstration can spark comments, shares and brand love.

VIDEO STILL REIGNS AND VARIETY WINS

If not using video in your content mix, you’re missing out on visibility and performance.

Algorithms love it, users expect it and the numbers back it up. Fifty-seven per cent of respondents prefer professional videos for their polish, clarity and credibility, while 43 per cent lean toward UGC for its authenticity and human touch.

Even Gen Z is split down the middle, showing a growing appetite for well-explained content that still feels real. And when it comes to length,

60 per cent prefer short-form video (15 seconds) for its simplicity and ease of digestion, while 40 per cent still appreciate long-form (60 seconds) for storytelling and emotional depth.

The takeaway?

Mix it up. Use polished clips to earn trust, UGC to spark connection and short bursts to stop the scroll.

THE CREATOR ISN’T THE STRATEGY

Influencers and creators continue to be powerful partners, but only if they make sense for your audience. Forty-one per cent of respondents now follow creators on social media; however, what they want from those creators varies widely. Fifty-three per cent of younger respondents are especially drawn to creators who are funny and entertaining, while 41 per cent of those aged 45 and up prefer practical, useful content.

And here’s the twist: 73 per cent of respondents say they’d rather hear from employees than influencers when it comes to learning about a brand, especially in regions where trust and proximity matter more.

What does this mean?

Whether working with a trend-savvy content creator or an enthusiastic staff member, the key is alignment. The voice needs to reflect your values, your audience’s expectations and the tone of the platform.

“Seventy-three per cent of survey respondents say they’d rather hear from employees than influencers when it comes to learning about a brand.”

DON’T BE AFRAID OF GEN Z’S STANDARDS

Gen Z isn’t just another age bracket — they’re setting the pace for the future of digital culture. They influence what’s funny, cool, cringe and what gets cancelled. Their standards are high, expectations are clear and impact extends well beyond their generation.

They’re not here for gimmicks or generic messages. They want purpose-driven content, relatable creators and brands that don’t talk down but talk with them.

To connect with tomorrow’s customer (and today’s trend driver), pay attention to what Gen Z values. If you build trust and learn their language, they’ll not only engage — they’ll amplify.

Marianne Pépin is a senior content manager with Leger’s digital marketing agency, Leger DGTL. Leger is the largest Canadian-owned market research firm in the country, offering expert insights to help brands make informed decisions. homegoodsonline.ca | 7

by the numbers

A STRONG FOUNDATION

Trade turbulence shakes Canada’s housing market, but expert points to its historically remarkable resilience in uncertain times BY CLARE TATTERSALL

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by the numbers

AS THE CALENDAR FLIPPED FROM 2024 TO 2025, Canadian real estate watchers predicted the housing market was poised for a comeback amid lower borrowing costs, changes to mortgage rules and pent-up buyer demand. Specifically, the Canadian Real Estate Association (CREA) forecast 532,704 residential properties to trade hands via MLS systems this year, representing an 8.6 per cent increase from 2024. However, in April, CREA downgraded its housing resale forecast — the largest revision in-between quarterly reports on record going back to the 2008-2009 financial crisis, outside the beginning of the Covid pandemic.

With buyers increasingly fleeing to, or remaining on, the sidelines amid tariff uncertainty wrought by the new administration in Washington, D.C., and the associated economic damage only beginning, sales have fallen month-overmonth, and prices in some parts of the country are following suit. At this point, some 482,670 residential properties are now predicted to sell via Canadian MLS systems in 2025 — no real change from 2024.

The national average home price is now expected to reach $687,898, which is about $30,000 or 0.3 per cent lower than CREA forecast in mid-January. British Columbia and Ontario are anticipated to see small declines in average home prices. In other provinces, expected increases have been scaled back to the three to five per cent range for 2025.

Originally, national home prices were forecast to see the strongest gains in the first quarter, with more moderate increases expected in the latter half of the year. Real estate brokerage Royal LePage predicted that by the end of 2025, home prices in Edmonton, Regina and Quebec City would be up between nine and 11 per cent year-over-year. Most other metropolitan areas were forecast to see price increases in the range of four to six per cent.

While housing market activity has been softer

than expected so far this year in many markets — a major shift compared to the end of 2024 — there are signs of encouragement.

Phil Soper, president and CEO of Royal LePage, cites the recently announced 90-day pause on threatened new tariffs, which offers a window for diplomacy and a chance to stabilize market sentiment. Moreover, the appointment of Pete Hoekstra as the new U.S. ambassador to Canada brings a reassuring presence, he says, given the experienced diplomat’s strong relationship with Donald Trump and deep understanding of cross-border trade. He adds that Hoekstra’s early remarks reaffirming Canada’s sovereignty and the importance of its partnership sets the stage for a more constructive path forward, as does newly elected Prime Minister Carney’s cordial meeting with the U.S. President at the White House in early May. “Canada’s housing fundamentals remain strong and real estate activity tends to rebound quickly when uncertainty lifts,” says Soper. “If bilateral stability returns, so too will broader Canadian consumer confidence.”

Millennials will be the main drivers of demand, according to Canada Mortgage and Housing Corporation (CMHC). Many will be first-time buyers that prioritize being closer to jobs as remote work declines, which will boost sales in larger urban markets. There will also be some repeat homebuyers looking to upgrade and take advantage of lower mortgage rates. Homeowners who purchased during the pandemic and face mortgage renewals between 2025-2027 will wade back in, too.

Given the unaffordability of housing in Ontario and British Columbia, CMHC expects sales in these markets to remain below their 10-year averages.

Sales in the more affordable Alberta and Quebec markets, which began recovering in early 2024, are anticipated to reach historically high levels.

Turning to new home construction, which, like the resale market, is a key economic indicator, CMHC predicts starts to slow down this year,

mainly due to fewer condominium apartments being built. With low investor interest and more young families looking for family-friendly homes, developers will find it harder to sell enough units to fund new projects. The increase in unsold units will likely further reduce new project launches.

Despite this, starts will remain above the 10-year average.

Also like the resale market, there will be regional disparities in housing starts, says CMHC. New home construction will be marginally higher in B.C., after a weaker 2024, mainly driven by multi-unit starts. In Alberta, where starts in Calgary and Edmonton have been quite high, new home construction will decline modestly. Conversely, major metropolitan areas in Saskatchewan and Manitoba will see growth. Despite the inherent demand for new housing, total starts in Ontario’s central markets are expected to decline in 2025. This is due to the lagged impact of elevated financing rates. Weak past demand has reduced condominium apartment starts, with fewer land deals, project launches and pre-construction sales in the past two years. Following sluggish levels in 2023, housing starts in several markets in Quebec and eastern Canada began to recover in 2024. Montreal and Halifax will continue to trend upward this year.

Overall, the Canadian housing market is facing headwinds in 2025, as a result of change in U.S. policy objectives, but it’s not all bad news. And there are opportunities for growth. Zoning reforms and government-backed affordability initiatives may help support housing supply expansion, particularly in areas where densification policies encourage new multi-unit developments. Municipal policies aimed at allowing more mid-density housing in traditionally single-family neighbourhoods are expected to help offset the slowdown in condo construction, ensuring that housing supply continues to evolve to meet shifting buyer demand. homegoodsonline.ca | 9

in focus

A Centennial Celebration

Tepperman’s cites its commitment to values, long-term vision and adaptability as reasons for company’s longevity BY CLARE TATTERSALL

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in focus

Tepperman’s co-owners and brothers Noah and Andrew Tepperman.

THE NUMBER OF BUSINESSES THAT MAKE it to the 100-year mark is extremely small, estimated at just a half a per cent of all companies, and the ones that have what it takes are most often family-owned. Those that survive this amount of time generally share five core characteristics, according to Vicki Tenhacken, a consultant on corporate longevity and author of Lessons from Century Club Companies: strong corporate mission and culture; unique core strengths and change management; close relationships with business partners; long-term employee relationships; and active members of the community.

All of these are tenets of Tepperman’s, one of Canada’s largest independent home furnishings retailers, which marks its centennial in 2025.

The celebrations kicked off in March, with a team appreciation breakfast for its more than 500 staff, held at each of Tepperman’s seven stores in Ontario. Attended by local mayors, politicians and business partners, the company-wide function was chock-full of camaraderie and featured product and gift card prizes for employees, something that will continue until the end of 2025, as thanks for their service. Customer appreciation events are being held through the year that include giving away more than $100,000 worth of prizes and exclusive promotions like the recent ‘buy Canadian sofa’ event — 25 per cent of Tepperman’s inventory is ‘Made in Canada’ — that offer discounted prices and attractive financing terms, such as no payments, no interest for 50 months.

And in line with its long-standing tradition of supporting the communities within which it operates, local initiatives are planned, though not specifically tied to the company’s centenary jubilee. They include ‘Are Your Kidneys Ok’ event in collaboration with Children’s Health Foundation, featuring food trucks at Tepperman’s London store, with a portion of proceeds supporting pediatric nephrology and urology at Children’s Hospital at London Health Sci-

ences Centre; and the CP holiday train in London and Chatham, to collect non-perishable food and raise money in support of food banks, among many other fundraising efforts. These are in addition to the retailer’s monthly education bursary draws, whereby two random winners from entrants receive $1,000 toward their post-secondary education, and the awarding of two fully funded scholarships annually to Indigenous peoples enrolled in masters and doctorate programs at the University of Windsor — initiatives first launched in 1998 and 2021, respectively. To date, Tepperman’s has invested $1 million in student education.

“To survive a century, a company must be more than just a business — it must wholeheartedly embrace and prioritize the communities it serves,” says executive chairman Andrew Tepperman.

But perhaps the highlight, at least for Andrew, grandson of founder Nate Tepperman, is the 100th anniversary book that was created for staff and business partners to showcase the company’s legacy, telling the story of its journey from 1925 to present day. It was an eye-opener into the past even for Andrew, who began working in the family business alongside his grandmother Rose at the age of eight, cross-checking dates on invoices and stuffing envelopes with promotional marketing pieces for a penny each. While doing research for the book, he discovered his grandfather was initially planning to emigrate to Argentina from Russia, to follow his then-girlfriend, but the papers came in for Canada, and he had to make a choice. He opted for the Maple Leaf.

“I heard a lot of new stories from my dad, and we also went through a box in the warehouse that probably hadn’t been opened since the 1940s. It had advertisements my grandfather had clipped out,” says Andrew, whose office offers a trip down memory lane, with memorabilia prominently displayed like his grandfather’s firstever English dictionary, his grandmother’s Underwood model No. 5 typewriter, a partially melted homegoodsonline.ca | 11

in focus

Tepperman’s executive chairman Andrew Tepperman.

brass rocking horse accessory that was the only surviving item from the fire that burned down Tepperman’s Chatham store in 1992, and a 1931 telephone book that lists the 34 furniture retailers in Windsor, Ont., at the time. (Now there is only one — Tepperman’s.)

“He had stapled each ad to a piece of paper with our letterhead on it and included a hand-written note that stated the number of units sold and the weather on the date the product was sold,” he continues. “The following year, he used that information to compare sales and to figure out if the weather played a role. It was old school data analytics at its finest.”

The history of Tepperman’s is a true Canadian immigrant story that started when Nate came to this country in 1920, amid the Russian Revolution, arriving in Halifax before making his way to Southwestern Ontario. Despite being a newcomer in an unfamiliar land where he knew very little English and only had a grade five education, the 20-year-old had remarkable grit, determination and zeal to succeed. In 1925, he began selling rugs, towels and other small products door-to-door on foot in Windsor. Nate’s niche was that he allowed customers to pay in instalments — he would return each week to collect a nickel or dime — thereby creating a strong connection with his customers. That was the start of in-house financing, which Tepperman’s still offers to this day.

Nate’s friendliness, dependability and fair dealing garnered him an esteemed reputation that led to rapid business growth. His route evolved from walking to a bicycle to a used pickup truck, and eventually to the opening of

his first brick-and-mortar store in 1929. From then until his unexpected death in late winter 1970, drowning from ocean undertow while vacationing in Palm Beach, Fla., he sold everything from furniture, appliances and electronics to toys, baby carriages, toasters, records and even live birds.

Thrust into a leadership position that he perhaps wasn’t wholly ready for, Nate’s son Bill took the company’s helm with the desire and motivation to build on the legacy of his late father.

Quickly he adapted to his dual role as president and new dad; he and wife Rochelle had welcomed their first son, Andrew, in March of that year. Andrew is the oldest of three brothers and one of two that round out the third-generation business. Noah, who now co-owns Tepperman’s with Andrew, is secretary-treasurer.

Bill steered the company for more than three decades, during which he relocated Tepperman’s head office and premier showroom in Windsor, in 1978, to a newly built, 50,000-squarefoot facility that the company is still in today.

Other key milestones include the gradual expansion in the region to Chatham (1983), Sarnia (1992) and London (1997); opening of the company’s entry price point, promotional sales vehicle Bargain Annex (now Outlet at Tepperman’s), in 1984; receiving the Canadian Retailer of the Year award in 2003, by the Ontario Furniture Manufacturer’s Association (now the Canadian Home Furnishings Alliance); and being named Entrepreneur of the Year by Windsor-Essex Regional Chamber of Commerce the following year.

In 2000, Bill announced his retirement — six

1950s delivery truck leaving 30,000-square-foot warehouse in Windsor, Ont.

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in focus

Nate Tepperman (right) opened his first store on Ottawa Street between Parent Avenue and Lilian Avenue in Windsor, Ont., in 1929.

years away. Andrew surmises that his grandfather’s sudden death without a succession strategy in place may have been part of the reason his father planned the company’s transition of ownership so far in advance.

Originally, Bill did not expect any of his sons to stay in the business, nor did he pressure them.

Despite working in the store when they were in high school and university, all eventually left to pursue employment elsewhere. For instance, after graduating from Vassar College in New York, with a degree in political science, Andrew took a job with a large motion upholstery manufacturer, Berkline, in Washington, D.C. Four years later, he received a phone call from his dad who told him they were about to purchase the largest family furniture retail business in London — Patton’s Place.

“He said, ‘If you want to come back, now is a good time’,” recollects Andrew.

So, he did, to serve as general manager of the 63,000-square-foot London store. (Tepperman’s acquired an 89,000-square-foot warehouse facility in the buy-out, too.)

“I was very anxious since we were brand-new to the city,” says Andrew about his 27-year-old self. “I worked around the clock — the first person in and the last one to turn the lights off at midnight. I devoted everything to that store and so did many others. It was amazing to watch how much effort and passion everyone put into it.”

Three years later, Andrew returned to the Windsor location where he worked in his earliest

years on the frontlines in every department — sales, warehousing, home delivery, customer service and consumer financing. On this occasion, he took on mid-level management jobs, as a warehouse manager, Chatham store general manager and buyer for then-Bargain Annex, and led the quality and service teams.

When Bill handed over day-to-day operations on Oct. 31, 2006, Andrew was fully prepared to step into the position of president, given the broad skill sets acquired whilst working all those years within the company. He had also taken specific training courses like accounting at University of Windsor, and a leadership class through Western University’s Ivey business school, on the recommendation of his father, to ready himself for that day. Meeting with a succession planner from Tepperman’s accounting firm, PricewaterhouseCoopers, every three to four months over the course of six years contributed to a seamless transition, too.

Still, the ensuing years were not exactly smooth sailing. Economic downturn from 20072009, coined the Great Recession in Canada, couldn’t have come at a worse time for Tepperman’s. The regional chain was in the midst of constructing a new 85,000-square-foot store in London — the largest of its present-day locations — to replace the existing one that it had outgrown, along with a new, state-of-the-art 100,000-square-foot distribution centre.

“We were worried we had overbuilt,” says Andrew. “We spent a fortune, the biggest invest-

“To survive a century, a company must be more than just a business — it must wholeheartedly embrace and prioritize the communities it serves.”

homegoodsonline.ca | 13

in focus

Tepperman’s CEO Masoud Negad.

ment we had ever made, and everyone was going out of business.”

Those years served as a defining moment for Andrew. While proud that only two part-time staff were laid off, thanks, in part, to workers’ willingness to reduce their hours to prevent further job eliminations, he admits he did not react fast enough to get the company out of the recession. As a result, sales and, correspondingly, growth flatlined for several years.

“It was not a good situation,” he recalls.

“Maybe it was due to my lack of experience. In any case, I wasn’t going to let it happen again.”

To prevent a similar occurrence in future — after all, recessions are an inevitable part of the economic cycle — Andrew and Noah travelled stateside to Ann Arbor, Mich., to meet with Ari Weinzweig, a thought leader, multi-book author, and the CEO and co-founder of Zingerman’s, a single delicatessen-turned-gourmet food empire. Over two days, Weinzweig schooled the two on creating a long-term vision for their business and how, by following certain principles, it could guide their company to greatness. Upon their return, the pair put what they learned into practice, fulfilling their promise to Weinzweig to create a 10-year vision plan, which has enabled the company to achieve remarkable goals.

“The 10-year vision is supported by six guiding principles. These are non-negotiable and each department must incorporate them into their annual plans,” says Andrew. “For example, 10

years ago, we said we wanted to double our sales.

We didn’t tell our team how to do it; we just let them figure it out. It turned out to be a bit of both: same-store growth and new market growth.”

Since 2015, when the 10-year vision was first implemented, Tepperman’s has expanded into three new Ontario communities — Kitchener (2016), Ancaster (2019) and St. Catharines (2024).

The Kitchener store ushered in a new era for the retailer as, unlike its sister locations in Windsor, Chatham, London and Sarnia, it was developed by an outside commercial design firm, known for creating retail furniture stores in both Canada and the United States, to elevate the customer buying experience. The 70,000-square-foot showroom features a central welcome centre, children’s play area, complimentary snack and beverage café, digital interactive kiosks and defined tiled pathways — a first for the brand — that guide customers through the four key departments: furniture, bedding, appliances and electronics.

In 2022, more than 900 solar panels were installed on the roof of the Kitchener store, adding to its existing conservation efforts like electric vehicle charging stations and energy-efficient lighting.

Another company first, and in alignment with Tepperman’s guiding principle of environmental leadership, the solar panels provide the capability to generate 411,000 kilowatt hours of electricity or upwards of 95 per cent of the store’s electricity needs.

“The solar installation is a net-metering install,” explains Andrew, adding Tepperman’s newest

Tepperman’s gave away $5,000 to each of five charities in Ontario’s Niagara region, for a total of $25,000, in celebration of the opening of its newest store in St. Catharines, Ont., in May 2024.

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in focus

A sea off 914 solar panels covers the roof of Tepperman’s Kitchener store. The solar array installation, designed as a ballasted system, was carried out by VCT Group.

store in St. Catharines is equipped with rooftop solar panels, too. “They generate electricity and feed it into the local grid, and that generation is offset against our electricity consumption.”

The $1 million Kitchener store investment, which has an anticipated return on investment of about eight years, is part of the retailer’s longterm commitment to sustainability in every part of its operation. Other environmental initiatives include the donation of used and returned furniture and appliances to the Habitat for Humanity ReStore organization, giving these items a second life and also providing a revenue stream for Habitat for Humanity to fund some of their housing projects; the collection and shipment of worn-out mattresses to Recyc-Mattress, a mattress and box spring recycling depot that breaks down the sleep essentials into their fundamental components (polyurethane foams, latex, springs, textiles) to be used in the manufacture of other products, such as new foam for carpet underlay and athletic safety mats; the use of cold press polystyrene densifiers that can compress 50 cubic feet of packaging material that is commonly called Styrofoam into a brick, which is then reprocessed into other materials through its partner Second Wind Recycling, reducing waste and diverting products from landfills; and the creation of three bee-friendly pollinator gardens, including one at its London store covering some 25,000 square feet, providing these insects with a healthy environment to thrive. The retailer is also one of the few of its size with a fulltime sustainability manager.

Tepperman’s efforts to increase its own environmental efficiency has received numerous accolades. Its London store was the recipient of

the first-ever Don Smith Commercial Building Award in 2010, for environmental sensitivity, design and construction. More recently, the company received the Corporate Social Responsibility and Environmental Leadership awards from the London Chamber of Commerce.

With each subsequent store launch, the brand builds on the successes of existing locations to further improve the customer experience; it doesn’t rest on its laurels. Take its newest showroom in St. Catharines. Opened in May of last year, it has selfie stations, an enhanced kids’ area with digital games imported from Amsterdam, waterfall, and nature rest area with live plants, in addition to all the hallmarks of its other stores like free popcorn — a crowd-pleaser with the kids that may very well turn these little consumers into lifelong Tepperman’s shoppers.

“That’s what they know us for,” laughs Andrew, who, whilst doing some work for Windsor’s Junior Achievement program, teaching a grade five class about business, asked students if they’d heard of the retailer.

“All of them put their hands up, so I asked what do you like about it. And every one of them said popcorn,” he continues. “It’s amazing. Twenty years from now they’re going to remember that and come back.”

Despite adding three stores in the span of nine years, one not long after the Covid pandemic, Andrew describes Tepperman’s as “slow to grow.” He says the opening of any new location is the culmination of a multi-year planning effort that involves the exploration of potential new markets and their demographics, as this helps better understand the retailer’s core consumer’s wants and needs. While Tepperman’s describes

“We spent a fortune, the biggest investment we had ever made, and everyone was going out of business.”

homegoodsonline.ca | 15

in focus

TOP: Tepperman’s St. Catharines location is its seventh store. MIDDLE: This 1928 Ford model resembles Tepperman’s first delivery truck. It was purchased and refurbished in 2024, for the St. Catharines store grand opening. It is now displayed in the Windsor showroom. BOTTOM: The Tepperman’s logo is positioned on the floor of the new St. Catharines store amid a variety of air-purifying tropical plants.

16 | HOME GOODS MERCHANDISER SPRING 2025

its target audience as middle to upper-middle class, its Ancaster consumer prefers higher-end custom upholstery more than the Sarnia consumer, for example. Andrew also likes to make sure the right leadership is in place to manage another store before embarking on any venture.

One person he has been able to count on time and again is Masoud Negad. Considered family, as he has been with Tepperman’s for nearly four decades, Negad was approached two years ago to take on the role of CEO, an offer that initially caught him by surprise. He humbly accepted and in May 2024, he became the first non-family member to lead the company since its founding.

“It was a huge honour because this is an organization that I’ve been a part of for most of my life in Canada, and I have loved and enjoyed watching it grow and evolve,” says Negad about the job offer. “It required a high level of trust, as most family businesses won’t relinquish control to somebody who isn’t part of the immediate family.”

Andrew’s decision to step back from day-to-day operations “just made sense,” he says, as did the selection of Negad. An immigrant from Iran, he joined Tepperman’s in 1987, when it was just a twostore operation, motivated to apply for a sales position after listening to the laughter and stories of Chatham Tepperman’s employees at a restaurant he managed. He was promoted to management within a few years, and earned his master’s and then doctorate degrees in business administration while employed full-time. Now in his 38th year with the retailer, he has touched almost every aspect of the business, from store and supply chain management to product buying and even delivery.

“If a truck driver is sick, he’ll take the wheel, and he’ll sweep the floor if it’s dirty. Masoud will do whatever it takes,” says Andrew. “You don’t see that at most companies. And that’s how you know you’ve got the right person.”

As CEO, Negad leads a team of seven vice-presidents, each representing one of the markets under the Tepperman’s and Outlet at Tepperman’s brands — an organizational format introduced with his promotion. He is responsible for the overall direction of the company, including growth, risk mitigation, decision-making and culture. Andrew is now solely focused on the ‘big picture,’ including the company’s next 10-year vision plan, conceptualized with his brother Noah, as well as things he never had a chance to do before like attend the National Retail Federation’s annual conference, Retail’s Big Show, among other trade events around the world to further strengthen the business.

Presently, one of Negad’s main priorities is ensur-

in focus

LEFT TO RIGHT: Noah Tepperman with wife Julie, daughter Lily, and son Benjamin; Bill and Rochelle Tepperman; Andrew Tepperman with wife Tina, daughter Lia, and son Nathan.

ing the company stays ahead in the tech-driven world. The retailer is in the process of moving to Oracle’s NetSuite ERP (enterprise resource planning) system to boost operational efficiency, as part of a complete technology stack upgrade. Completion of the two-year initiative is expected in the coming months. The next big thing to be finished is the renovation of the brand’s older stores to Tepperman’s 2.0 model, so they all have the same look and feel.

Unsurprisingly, tariffs are also top of mind, though they’re not exactly a new problem given the company’s age. Negad says there’s no intention to pass the 25 per cent tariff on products imported from the U.S. on to consumers, especially since only about 10 per cent of Tepperman’s furniture SKUs originate from south of the border. Instead, the retailer is looking at ways to become nimble in this tough economic cycle, without sacrificing the exceptional quality service and exemplary work culture customers and staff have come to expect, respectively. As well, it’s seeking out even more homegrown suppliers. Sofa by Fancy and Minhas are two Canadian brands Tepperman’s has recently welcomed into its fold, joining others like DecoRest, Paiano Upholstery, Leather Living, Durham Furniture, Canadel, Dynamic Furniture and the majority of all mattress lines it carries.

“We have seen a noticeable increase in the number of consumers asking for ‘Made in Canada’ because of the U.S.’s aggressive trade and sover-

eignty threats, so, right now, there’s a great opportunity for retailers and manufacturers in this country,” says Andrew.

This optimistic tone may be in contrast to news reports that paint a less rosy picture for Canadian companies; however, Andrew naturally doesn’t like to dwell on the negative.

“At the end of the day, whether we like it or not, it will be what it will be,” he says. “Our focus is, and always will be, on running the business to the best of our collective abilities, and not to get distracted by all the noise.”

That collective includes Andrew’s two children, both teenagers, who work in the Windsor store. Though it would be “nice” if either or both made Tepperman’s into a fourth-generation business, he says there is no expectation for them to work at the company long-term. Should, at any point, it become a true and real aspiration, Andrew would prefer they gain outside experience just as he did before that fateful call from his father all those years ago.

“Leaving and then coming back cemented how much I wanted to be here,” says Andrew, who, while he’s unsure of his children’s fate within the family business, does know an exciting future awaits Tepperman’s.

“As we honour the past with this 100th anniversary, our story continues as there is much more in store.”

“The 10-year vision is supported by six guiding principles. These are nonnegotiable and each department must incorporate them into their annual plans.”

homegoodsonline.ca | 17

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IFD GROUP: INNOVATION AND QUALITY

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commitment to sustainability is a key part of its manufacturing process and balanced to not compromise quality or design.

“We use fine and solid woods such as Teak, Parota, Oak, Melina, Walnut, Poplar, and Mango,” says Daniel Moran, marketing manager. “All the wood we use in our factories is salvaged wood.

We make the initial cut, and afterward, all the remaining timber is utilized in a process where we join the pieces together to create timber tops.”

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“Every three months, we launch several collections,” says Moran. “What is trending in furniture is colours. Now more and more collections are coming in different colours such as black, white and brown. These colours create a fresh and modern style, and it is also easier to match the furniture in different decoration styles. Balam collections are the perfect example - made with solid teak wood, the different colours and the different appearances make any furniture unique.”

IFD is proud to be not only a supplier but a strategic partner for clients seeking luxury furniture in Canada and the U.S. With two manufacturing factories in Mexico and a network of four warehouses in the U.S, IFD provides fast delivery times and a unique marketing offering. It has established a factory-direct shipping program that has the ability to mix various categories on a less-than-full truckload basis for multiple clients.

Aside from quality products, IFD’s strength lies in its knowledgeable and dedicated sales team that is available for customer service to assist with any questions.

As businesses across North America brace for the impacts of the U.S. tariff threats, IFD offers the Canadian market an advantage: direct shipments from Mexico – tariff free. IFD is part of the CAN-USA-MEX free trade agreement and recognizes the importance of adapting to current economic pressures. Direct shipping guarantees faster and more cost-effective delivery compared to traditional options that require imports from Asia.

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trendspotting

Exterior Oasis

The right furniture plays a big role in creating the perfect setting for relaxation, entertainment and soaking up the sun

BY DANIELLE LEE

AS THE DAYS GET WARMER AND LONGER, homeowners are eager to spend more time in their outdoor living spaces. Whether it’s hosting intimate dinners in their backyard or throwing vibrant patio parties, the desire to connect with one another and with nature draws people outside. In anticipation of these activities, many are refreshing their exterior spaces.

Data from market research company Technavio shows that the global outdoor furniture market is on the rise and is estimated to grow by $5.16 billion US from 2025-2029. Both residential and commercial sectors are seen as driving market forces behind these trends. Homeowners are looking to enhance their outdoor living space with furniture that not only complements their style but will also last. The hospitality industry is seeing an increase in outdoor areas like rooftop patios or outdoor gardens that are creating demand for versatile furnishings

that can withstand the elements.

By understanding the latest design trends in outdoor furniture, retailers can capture the attention of consumers who are looking to curate their open-air spaces.

IN LOCKSTEP WITH NATURE

A throughline present in all outdoor trends is a desire to reconnect with nature. Think being surrounded by beautiful flowers in a tranquil garden or bathing in the glow of a beautiful sunset — these are outdoor moments that inspire relaxation and respite.

Biophilic design seeks to blend nature with architecture to create a restorative space. Common elements of biophilic design include calming colour palettes, nature-inspired forms and greenery.

Neutral shades like cream and beige are timeless and blend seamlessly in any environment. Layering neutral tones and soft colours add depth and elevate

20 | HOME GOODS MERCHANDISER SPRING 2025

outdoor spaces. Bolder colours can also be combined with neutral-coloured frames to incorporate pops of colour. Removable covers on quick-dry cushions make it easy to change colours based on style or season.

Outdoor designs featuring organic shapes and textures tap into nature. Rounded corners and smooth contours create soothing, relaxed environments. Cozy fabrics and finishes promote a comforting feel. Conversely, heavy textures like concrete or raw, unfinished edges revel in the primal side of the natural world.

Wicker or rattan brings a distinct artisanal feel and highlights the beauty of handcraftsmanship on any product. Although these designs are made with synthetic materials to withstand harsh weather conditions, they still retain a natural look. The intricate weaves bring multi-dimensional tactility for elevated, luxe pieces.

trendspotting

Green living can be brought to the forefront with beautiful flowers and refreshing foliage. Plants help foster a deeper connection with nature and encourageanaffinityforoutdoors.Whileoftenusedtobring nature indoors, incorporating botanical arrangements with outdoor planters or garden beds can transform any outdoor living space into a lush oasis.

INDOOR COMFORT OUTDOORS

Outdoor living areas are quickly becoming extensions of the indoors, allowing spaces to feel larger and more inviting. Most outdoor furniture can also be placed indoors, further blurring the lines between inside and out. Homeowners with larger spaces can take full advantage by constructing functioning kitchens and living spaces outdoors.

For those with smaller spaces, multifunctional designs allow people to do more with less.

One advantage of a patio or backyard space is being able to entertain and host outdoors. Moving beyond just a grill, a full culinary set up can range from having a kitchen island, appliances and/or a pizza oven. Food can be conveniently prepared and freshly served outdoors with a dining room ensemble close by. Similarly, gathering hubs can also be arranged outside. Outdoor daybeds, sofas and lounge chairs can make any exterior living space feel more comfortable.

Modular seating makes the most of smaller outdoor spaces. It’s easy to customize any layout due to the varying ways modular designs can be configured. Stackable chairs and extension tables are also great space-saving solutions to maximize a small outdoor area.

QUALITY ECO-CONSCIOUS MATERIALS

With outdoor furniture prone to varying weather conditions, many are looking for pieces that are strong enough to withstand the elements and don’t have to be replaced season after season. When items are built to last, they are also less likely to end up in a landfill, making them a more sustainable option. Most consumers are striving to be more environmentally conscious and thinking carefully about what they purchase. A focus on high-quality, eco-friendly materials make these products a worthwhile investment.

Teak wood is a commonly used material in outdoor furniture; however, not all teak is created equal. Grade-A teak is the most premium due to its high oil content, which gives the tropical hardwood its weather-resistance durability. Certifications like FSC (Forest Stewardship Council) and SVLK help customers identify products that are sustainably made. While FSC is a more familiar acronym, SVLK

OPPOSITE PAGE: The Bora collection from Sunpan is made with cozy bouclé performance fabric, making it a great option for indoor or outdoor settings. TOP: Sunpan’s outdoor collection features durable, on-trend styles for any home or commercial space. BOTTOM: The Calandri counter stool from Sunpan is crafted with a powder-coated aluminum frame and a seat upholstered in solution-dyed performance fabric.

is a timber legality assurance provided by the Indonesian government certifying that the teak sourced from the Southeast Asian country comes from responsibly managed forests that protect future teak harvests.

For commercial environments, powder-coated aluminum is an ideal option. Aluminum is lightweight and sturdy, providing a sleek look to any space. Powder-coating adds a durable finish that protects against corrosion and damage from the elements. Aluminum is also a recyclable material that makes it environmentally friendly.

Performance fabric is essential for outdoor

living because it is easy to clean, water repellant and ultraviolet resistant. Fabrics that are Oeko-Tex Standard 100 certified have been tested for harmful substances. Solution-dyed fabrics are also eco-friendly because the pigments are added directly to the fibres as the material is being made. Unlike traditional dyeing processes, where the material is made and then dyed, solution dyeing wastes less water and has lower carbon emissions. Since the dyes are already embedded within the fibres, the colours last longer and are less likely to fade.

Danielle Lee is a Toronto-based writer who currently works at Sunpan, a trade-only provider of premium home furnishings for residential and commercial spaces. As part of her role at Sunpan, Danielle actively researches interior design trends and industry terminology to craft compelling product stories that resonate with consumers and trade professionals alike. homegoodsonline.ca | 21

white goods

A Culinary Awakening

Coloured appliances and handles, knobs in modern finishes satisfying consumers’ cravings to achieve that ‘wow’ factor in the kitchen BY SHAE WILDER

Photos courtesy BlueStar

THOUGH ‘MILLENNIAL GREY’ AND MODERN white kitchens have existed for a long time, colour in the kitchen is here to stay. Colour in kitchens, once reserved only for wall paint, cabinetry and islands, now appears in every facet of the heart of the home, including plumbing, hardware, cookware and, of course, appliances.

There are countless ways to introduce colour into the kitchen, whether through pops of colour, a full infusion of vibrant hues, or mixed metal accents and hardware that enhance the overall design. No matter the style, there’s an approach that suits every preference and space.

POPS OF COLOUR

An accent colour is a popular choice throughout 22 | HOME GOODS MERCHANDISER SPRING 2025

home design. It helps tie any colour scheme together without being over the top. Appliances provide ample opportunity to introduce a pop of colour — subtle yet significant enough to become a focal point.

While colourful appliances may be too much of a risk for some, others may add subtle pops through appliance knobs, seasonal decor or secondary appliancesthataren’tsuchacentralpartofthekitchen, like a wall oven or kitchen counter stand mixer.

COLOUR DRENCHING

The concept of colour drenching — immersing a space in a single hue — may seem straightforward but executing it successfully requires true mastery. This technique goes beyond just paint-

white goods

ing walls; it extends to cabinetry, ranges, custom hoods and other elements, enveloping the space in a cohesive colour story that feels intentional rather than overwhelming.

Like many trends, colour drenching is not new; it has been re-popularized with a compelling tagline.

This bold choice has made its rounds in design and fashion alike, proving its timeless appeal. While its resurgence may feel modern, historical interiors have long embraced monochromatic palettes to create depth and drama.

Many people turn to brands that offer custom colour matching to achieve this look, allowing every element to blend seamlessly. Since appliances make up a significant portion of a kitchen’s visual real estate, matching them to the surrounding colour scheme helps pull the entire design together.

While colour drenching is often associated with deep, dramatic shades, it’s just as effective with softer, more timeless hues. Pale greens, creams and blues are popular choices, using tone-on-tone layering to create a sophisticated yet calming effect.

Beyond colour, texture plays a crucial role in elevating this aesthetic. Architectural details like wainscotting, board and batten, and ceiling medallions add depth and dimension, ensuring the space feels intentional and thoughtfully designed.

feeling overly uniform. A classic example is matte black and brass pairing, frequently seen in hardware, lighting and plumbing.

When applied to appliances, this combination provides a striking contrast that feels both intentional and refined.

A rising favourite in the last year or so is copper, which is stepping into the spotlight after years of brass dominance. Whether polished for a sleek, elegant feel or antiqued for a more storied, timeworn look, copper seamlessly ties into both traditional and contemporary kitchens and can blend in-between different styles when the finishes are mixed throughout.

Getting adventurous with finishes, as exampled with copper, is another way to achieve the mixed metals look. To create contrast between accents and dimension, blend a polished finish with a brushed or antique one.

CURRENT TRENDS

Today’s kitchen colour trends embrace warmth, depth and a connection to nature. Materials like stone and wood are being used more extensively, with full-height stone (or porcelain that mimics

MIXED METALS

Metals have always played a key role in kitchen design, whether as statement pieces or subtle accents. While stainless steel once reigned supreme, today’s kitchens embrace a broader spectrum of metal finishes, transforming hardware, fixtures and appliances into design elements that add depth and character. Much like jewelry completes an outfit, mixed metals bring a layer of sophistication and visual intrigue to the space.

A common guideline is to limit the mix to two metal finishes to maintain balance and cohesion.

Another widely used approach is ‘same function, same finish.’ For instance, keeping all cabinet hardware in one metal while selecting a complementary finish for fixtures or appliances. Blending different metals can also be a practical choice — matching finishes across brands can be challenging and a thoughtful mix can prevent a space from

Brass appliance pulls and knobs coordinate seamlessly with existing cabinet hardware.

homegoodsonline.ca | 23

white goods

Matching appliances with colourful cabinets can create an exciting design canvas.

“Appliances provide ample opportunity to introduce a pop of colour.”

stone) backsplashes becoming a prominent feature. The crisp, classic white kitchen remains a staple in certain regions but there has been a shift toward softer, warmer whites and creams — mirroring the growing desire for natural elements.

Similarly, the once-popular cool greys are fading in favour of shades with warm undertones and subtle hints of blue, green or earthy hues. These softer neutrals, particularly creamy greys, offer longevity and versatility, blending seamlessly with natural stone and wood accents.

Three colours continue to dominate kitchen design trends: black, blue and green. Black has surgedbackintothespotlight,notonlyinappliances but also in architectural details like window frames. This deep, dramatic hue is frequently paired with brushed brass, a timeless favourite, while brushed copper trims have also emerged as a fresh way to add warmth and depth.

Blue remains a design staple, with its adaptability making it a go-to colour across styles and decades.

Deep navy, cobalt, pigeon blue and teal continue to be widely specified, often paired with brass and antique brass for a rich, layered aesthetic. The psychology of colour also plays a role — softer, more muted shades like sage green feel calming, while bold, highly saturated blues bring energy and depth.

As for green, its presence in kitchen design has skyrocketed. Hailed as the new neutral, green offers a range of expressions, from soft and subtle to deep and moody. It pairs beautifully with wood tones, crisp whites and even darker blues, creating a fresh, grounded look. Whether used sparingly as an accent or boldly across cabinetry, tile and appliances, green is proving to be just as timeless as blue, making its way into more kitchens than ever.

Shae Wilder is manager of designer relations and national trade marketing manager at BlueStar. Her work closely aligns with the design experience, focusing on colour, sensory elements and industry trends.

Designed and built in Pennsylvania since 1880, BlueStar cooking, refrigeration and ventilation products are handcrafted for discerning home chefs who demand restaurant-quality results in their own kitchens. The company is the only pro-style appliance brand to offer unlimited options for personalization, including more than 1,000 colours and several metal trims. Shae can be reached at swilder@bluestarcooking.com.

24 | HOME GOODS MERCHANDISER SPRING 2025

sleep shop

Pillow Talk

From cooling features to customizable fillings, today’s most popular pillows are all about serving unique needs

BY KATHRYN GREENE

26 | HOME GOODS MERCHANDISER SPRING 2025

sleep shop

WITH MATTRESS SALES SLUGGISH TO FLAT these days, sleep accessories like pillows are a critical part of an overall selling strategy to boost tickets. They’re also an important opportunity to increase customer satisfaction and build brand loyalty. According to research from the Better Sleep Council, pillows should be replaced approximately every two to three years. So, asking shoppers when they last purchased a pillow is a good icebreaker for selling accessories.

“Consumers often start their shopping journey by looking for a new mattress but the trigger is usually a desire for improved sleep,” says Andrew Cizmar, director of Tempur-Pedic accessories. “Pillows play a critical role. They have become an increasingly important selling accessory within an overall sleep solutions selling strategy. Ideally, the pillow is perfectly paired with the mattress to match your sleep style and to ensure proper alignment.”

Jonah Nelson, senior director of brand experience for mattress and accessories company Bedgear, agrees.

“The pillow is really a critical part of your comfort and support. The mattress is about 70 per cent of your comfort and support system when you’re sleeping, and the pillow is that other 30 per cent,” he says. “When customers go home with 100 per cent comfort, they’re going to be much more satisfied with their sleep quality and more likely to keep those products once they have them in the home. That’s the power of pillows.”

Vail, Aspen, Everest — comes in various comfort levels, cores and fabrics. Most notably, the Aspen collection features a Tencel lyocell/recycled polyester knit cover with phase-change material for a cooling sensation and the company’s proprietary Serene foam.

Another chilly offering for shoppers is Mlily’s PowerCool pillows, featuring a bamboo charcoal memory foam core wrapped in a cooling knit fabric cover. The ergonomic design cradles sleepers’ heads.

“Mlily offers a wide range of pillow options to meet consumers’ needs and preferences, such as the Gel AeroFusion memory foam and ventilated bamboo charcoal memory foam pillows, designed to deliver cooling, contouring and enhanced airflow,” says the U.S. company’s national sales director, Derek Leishman.

Although Bedgear plans to turn over 25 per cent of its pillow lineup this year, a figure that Nelson says is pretty consistent on a yearly basis, its top performers will stay. Currently, two of Bedgear’s bestselling pillows are its Storm Performance pillow, followed by its Night Ice Performance pillow.

Speaking of ice, bedding supplier Malouf recently relaunched its Ice Chill pillow. Available in three lofts, it contains shredded memory foam on one side and solid memory foam on the other.

With so many options in the market, it’s clear that consumers’ affinity for keeping cool isn’t changing any time soon.

PERFECT FIT

THE BIG CHILL

“Consumers are still looking for that cool-touch experience when it comes to pillows,” says Shannon Duffy, product development and sourcing manager at Carpenter Co., one of the world’s largest producers of comfort cushioning products “Recently that has been paired with temperature regulation treatments. Cool-touch fabrics give the customer an instant peace of mind that they will sleep ‘cooler,’ but adding temperature-regulating aids balances your temperature while you sleep so you are not too hot and also not too cold.”

At the winter Las Vegas Market, Carpenter Co. debuted a line of mattress toppers and pillows with La-Z-Boy. Each group in the collection —

Helping consumers discover special features like cooling is only one aspect of guiding them to the right pillow; another is fit. At the winter Las Vegas Market, Italian mattress brand Magniflex debuted PillowFit, a measuring tool to help retail sales representatives (RSAs) match consumers to the best pillow. By measuring the distance from a customers’ ears to the end of their shoulders, the tool helps identify the ideal fit for proper head and neck alignment.

“Over 25 per cent of body support when you rest at night comes from your pillow and it’s important to get that right,” says Marco Magni, president of Magniflex. “The PillowFit tool ensures that no matter the type of shoulder anat-

omy a consumer has, we can provide them with a pillow that fits them. Using PillowFit, our sales representatives can accurately recommend not only pillow height but pillow type, and, in doing so, realize our brand goals of providing products that promote healthy and restful sleep.”

Magniflex offers pillow heights from small (less than three inches) to extra-large (more than seven inches). According to the company, PillowFit serves a dual-purpose — helping customers make a more informed purchase decision and driving additional revenue for retailers.

In tandem with the launch of PillowFit, Magniflex released its enhanced Classico pillow assortment. Available in small, medium, large and extra-large heights, all contain the company’s Memoform foam and viscose covers to dissipate heat.

Similarly, Bedgear’s Performance pillows come in what it calls profiles 0.0, 1.0, 2.0 and 3.0. At retail locations, sales associates will assist customers to find their best size. For those shopping online, Bedgear has a short ‘find your fit’ quiz on its website.

“What we’re looking to do is personally fit you to your pillow solution,” says Nelson.

KEEP IT SIMPLE

Measurement tools provide novel ways to interact with customers and help them feel empowered while shopping. But effective storytelling is another way to connect with consumers.

Sleep products manufacturer Therapedic International recently unveiled its SleepWare pillow program, a three-model memory foam collection that includes the support gel, pure gel and cool gel pillows.

“That’s why we’re focused on equipping RSAs with the tools they need to educate customers on finding the best pillow for their sleep needs,” says Kyle Borreggine, vice-president of specialty sales for Therapedic. “Therapedic’s SleepWare pillow program simplifies the selection process by offering three well-designed options that address a variety of sleep concerns. Instead of overwhelming customers with too many choices, this program makes it easier for them to find the right pillow for a healthier night’s sleep.”

Straightforward packaging showcases the matehomegoodsonline.ca | 27

sleep shop of sleep and the direct impact it has on one’s health will only serve to continue this trend. As the world’s largest producer of Talalay pillows, which have strengths in both natural and performance attributes, we have been the beneficiary of this trend and continue to see significant growth in new programs.”

If only using health-related messaging to sell mattresses and not pillows, it might be time to start. Therapedic’s Borreggine adds, “Consumers are looking for options that not only feel good but also support their overall sleep health.”

Take Tempur Sealy’s Tempur-Adapt pillow collection. There’s the adjustable height Adapt ProAdjust, the five-inch profile Adapt ProLo and the 6.6-inch Adapt ProHi, all designed to relieve pressure and reduce aches.

TREND WATCH

TOP: The Night Ice performance pillow from Bedgear includes three layers of cooling. BOTTOM: The Willow latex pillow from Talalay Global provides good support without ear pressure.

rials and attributes of Therapedic’s SleepWare pillows, making it easy for consumers to understand the difference between each product without being overwhelmed by information. As a retailer, curation is as important as the products.

Too few options leave consumers wanting more while too many can lead to decision fatigue.

THE PICTURE OF HEALTH

Recently, Lubia Rodas, product manager at latex foam producer Talalay Global, says she has witnessed a shift in consumer preferences.

“Similarly to what has been occurring with mattress demand, we see consumers shifting toward pillows that promise better health and performance,” she says. “The increasing amount of scientific/medical information on the importance

“Beyond traditional pillows, innovations like adjustable, massaging and temperature regulating designs are gaining traction,” says Cizmar of Tempur-Pedic. “These products align well with the trend of customizable sleep solutions, particularly when paired with adjustable bases and advanced mattress technologies. As a result, the right pillow strategy not only drives additional revenue but also strengthens customer satisfaction and loyalty.”

Another trend? Beauty sleep.

In the second quarter of 2025, Bedgear plans to launch Bedgear Beauty. According to the company, the Bedgear Beauty pillow has an ergonomic design that reduces friction and pressure on the skin, and features a synthetic blend Hyper-silk cover to “reduce overheating, morning wrinkles and inflammation.” Another bonus: The cover will not absorb skincare products, a perk for devotees of nightly routines.

“Most consumers purchase pillows within two weeks of a mattress purchase,” says Leishman of Mlily. “Retailers who focus on selling complete sleep systems not only elevate their position by offering sheets, comforters, duvets and pillows that complement the mattress, but are also helping their customers achieve an enhanced sleep environment that boosts their overall well-being.”

By providing an assortment that is diverse in features, materials and price ranges, retailers are sure to connect consumers to the perfect pillow.

Kathryn Greene is the senior editor for Sleep Savvy and BedTimes magazines, both International Sleep Products Association (ISPA) publications. Kathryn graduated from University of Georgia’s Grady College of Journalism and has a decade of writing experience. Her byline has appeared in Hospitality Design, Boutique Design, TripSavvy, Topsail Magazine, Southern Bride and more. Before joining ISPA’s publications team, she was an associate editor at Hospitality Design, covering products, hotels, restaurants and retail projects around the world.

28 | HOME GOODS MERCHANDISER SPRING 2025

sleep shop

BRIDGING THE SUSTAINABILITY GAP Challenges, opportunities for the sleep products industry

BY SCOT CASE

WHILE CONSUMERS CONSISTENTLY SAY they want to buy more sustainable products from more sustainable companies, those aspirations do not always correlate with sales. This apparent paradox and how retailers manage it was the topic of a seminar at this year’s International Sleep Products industry conference. The session addressed how consumers and retailers are defining sustainability, talking about sustainability and how retailers are selling sustainability.

DEFINING SUSTAINABILITY

A March 2025 survey from Blue Yonder, a supply chain management company, reports 74 per cent of American consumers claim sustainability is somewhat or very important when selecting a product or retailer, only slightly below 78 per cent of global consumers that say the same.

Younger generations like Gen Z, born between 1997-2012, rank sustainability considerations as a higher priority (88 per cent), while the older, baby boomer generation ranks it lower (66 per cent). Globally, more than half of Gen Z and millennial consumers claim to be willing to spend an additional five to 9.9 per cent on more sustainable products.

While these survey responses have been consistent for the past several years, the increase in sales of sustainable products following the pandemic does not reflect rising consumer interest. One reason is everyone — individual consumers, retailers and manufacturers — has different criteria for defining sustainable products. Some prioritize the kinds of materials used, while others focus on the energy efficiency of the factory, climate change impacts, the ability to repair, refurbish or recycle products, chemical emissions during manufacturing or product use, product ingredients or financial sustainability (affordability).

The National Retail Federation defines sustainability as the retail industry’s ability to affordably deliver net positive environmental, social and community benefits. While useful from an industry-wide perspective, the definition is less meaningful for consumers trying to buy or retailers trying to sell more sustainable products. As a result, how manufactur30 | HOME GOODS MERCHANDISER SPRING 2025

sleep shop

ers, brands and retailers talk about sustainability is incredibly important.

TALKING SUSTAINABILITY

The biggest challenge when talking about sustainability is to ensure all sustainability claims are accurate, relevant and meaningful. Claims failing to meet these criteria are likely to be considered ‘greenwashing.’ Greenwashing is a false or misleading statement about the environmental or broader sustainability practices of a company, product or service. Classic greenwashing phrases like ‘eco-safe’ or ‘earth friendly,’ for example, create opportunities for consumers to make inaccurate assumptions about what the phrases mean.

In Canada, the Competition Bureau regulates ‘truth in advertising’ claims. Last June, amendments were made to the Competition Act that target the prevention of greenwashing. These changes mandate that retailers and other value chain partners provide evidence to support any environmental claims. Specifically, claims must be supported by third-party testing or internationally recognized methodologies.

Previously, the onus was largely on the Competition Bureau to demonstrate an environmental claim was misleading but with these amendments, the burden of proof has shifted to the company itself. This means that, if challenged, a company making green claims must provide evidence proving the accuracy of their statements in the form of proper testing or substantiation.

Companies engaged in and found ‘guilty’ of deceptive marketing practices like greenwashing face a maximum fine of $10 million for a first offence and $15 million fine for any subsequent infractions. Alternatively, the fine can be set at up to three per cent of the company’s annual global revenue, whichever amount is higher.

The Competition Bureau is currently in the process of developing enforcement guidelines. It held public consultations to inform these, which concluded Feb. 28.

SELLING SUSTAINABILITY

Retailers recognize that while consumers claim sustainability is important, other more crucial factors could drive their purchasing decisions. Consumers are looking to optimize price, quality and convenience. Sustainability is rarely the primary reason for a purchase, although younger consumers increasingly consider sustainability as an indicator of quality. They are also more likely to

Although consumers express a willingness to pay more for sustainably produced or sourced products, this hasn’t necessarily translated into high sales of these types of items.

purchase sustainable options when it is convenient, including having easy access to sustainability-related information about the products they are considering.

To make it simpler for consumers to find more sustainable products, including sleep products, many retailers are soliciting sustainability information from their suppliers and making the information available on their websites to consumers. With mattress and bedding products, retailers are recognizing and sharing certification status from more than a dozen independent certification programs, such as B Corp, Climate Neutral, Global Organic Textile Standard (GOTS), Greenguard, Made Safe and Oeko-Tex. B Corp certifies companies that meet environmental and social criteria. Climate Neutral certified recognizes companies that offset the carbon footprint of their products. GOTS is a certification program for organic cotton, wool and other natural

fibres. Greenguard certifies that products have been evaluated to ensure they are not emitting hazardous chemicals. Made Safe is a certification that screens out products that contain more than 6,500 banned or restricted chemicals. And Oeko-Tex is an independent certification that ensures the absence of harmful substances in raw material and the final product.

As this kind of information proliferates on retailer websites, it makes it easier for consumers to compare products on sustainability along with traditional cost, quality and convenience. This makes sustainability an important differentiator among similarly priced products.

These kinds of considerations are likely to become even more important as Gen Z begins buying and furnishing their first homes and having children. This generation already cares more about sustainability than previous ones and retailers can make it easier for them to shop accordingly.

Scot Case is vice-president of corporate social responsibility and sustainability at the National Retail Federation (NRF), and executive director for the NRF Centre for Retail Sustainability. He also leads NRF’s sustainability council and supports retailer efforts to use their businesses to make the world a better place for everyone. Scot has focused on the intersection of business, environmental and social concerns since the mid-1990s. He can be reached at sustainability@nrf.com. homegoodsonline.ca | 31

retail matters

TRANSFORMING THE SHOWROOM EXPERIENCE

How intuitive digital tools improve customer understanding, drive consumer electronics, appliance sales and mitigate returns BY DAVE CHACE

THE CONSUMER ELECTRONICS AND APPLIance industry is one of constant innovation, offeringanexpandingrangeoffeaturesandtechnologies that aim to address every conceivable need. However, as the pace of advancement has sped up, a significant challenge has emerged for both retail salespeople and consumers alike — the sheer volume of options and specifications available makes understanding, remembering and comparing products and features a massive task.

This can often lead to missed sales opportunities, frustrated customers and failure to fully capitalize on the capabilities of cutting-edge products. It

is clear change is needed, and digital tools hold the key to transforming the way information is shared and digested across the industry.

benefits of every product — and then having to explain them in a comprehensible fashion to customers and confidently make a purchase recommendation.

THE CHALLENGE OF INFORMATION OVERLOAD

Consumers who walk into any consumer electronics and appliance retailer are likely to be met with row after row of appliances boasting cryptic feature names and electronics with features that may as well be written in Norwegian.

This staggering array is difficult enough for consumers to process, but imagine being a retail salesperson tasked with learning the features and

32 | HOME GOODS MERCHANDISER SPRING 2025

THE EDUCATION DILEMMA

Retail teams often face tight schedules, high turnover and limited access to comprehensive training resources. While manufacturers do provide documentation, product sheets or demonstration materials, these resources are often dense, technical or inaccessible during critical customer interactions.

retail matters

For customers, this creates inconsistency — they might engage with a salesperson who lacks confidence in explaining features and compares models based on incomplete data, and then ultimately leave without making a purchase because they’re simply too overwhelmed.

It’s no surprise customers are turning to online reviews, forums and even social media for answers instead of relying on the in-store experience. However, these channels can be equally confusing or inaccurate. This disconnect not only hurts the sales process but also negatively impacts brand reputation in an industry where clarity and trust are pivotal.

THE CASE FOR SMARTER DIGITAL TOOLS

The introduction of targeted digital tools designed to streamline and demystify product information could solve many of these challenges for both salespeople and consumers. The modern retail shopping experience demands solutions that allow for real-time access to accurate, concise and easy-to-understand product details.

For retail staff, digital tools can act as an indispensable resource. Imagine an interactive tablet-based application or mobile-accessible portal that aggregates every necessary detail about the latest consumer electronics and appliance lineup.

Such tools could allow salespeople to quickly ramp up on new products, instantly compare features, provide simplified explanations of technological jargon and answer customer inquiries confidently — all without having to memorize pages of features, benefits and/or specifications.

With intuitive interfaces and search functionalities, even the least tech-savvy salesperson would be empowered to deliver exceptional service.

For consumers, simplicity and clarity during the shopping experience can make all the difference.

When digital platforms are extended to them — either through in-store kiosks or their own computers and devices — they gain access to the same wealth of well-curated product information. These tools can guide them through the often-confusing landscape of product categories and features,

Digital tools can help retail employees work smarter.

explaining in layman’s terms what the features actually do and how they translate to real-world benefits.

Simply put, the solution isn’t more brochures or feature-dense training sessions. What’s needed are intuitive, interactive digital tools that make it easy for salespeople and customers to quickly grasp product differences, understand features, and make confident selling and purchasing decisions, respectively. By leveraging innovative digital tools, manufacturers and retailers can bridge the gap between product complexity and consumer understanding.

Electronics and household appliance manufacturer LG has already proven how powerful these tools can be. At this year’s Kitchen and Bath Industry Show, the company showcased three digital solutions that are reshaping the appliance shopping experience — and they could just as easily be applied to other retail categories.

“Another major challenge in retail is that consumers struggle to visualize appliances in their home.”

1

Interactive tools that actually explain features. LG’s latest washers and dryers come with a sleek, modern control dial packed with smart settings. But when these machines are sithomegoodsonline.ca | 33

retail matters for comparison and more; and click on features to get a clear, easy-to-understand explanation of what they do and why they matter to the customer.

This tool makes shopping more engaging and informative, leading to more confident purchasing decisions, fewer returns and more satisfied customers.

3

TOP: The virtual 3-D kitchen helps customers visualize entire product ecosystems, switching out appliances in real-time to see how they look together. BOTTOM: The Measure First tool guides customers through the process of measuring their space and ensures an appliance will fit before they make a purchase.

ting on a retail floor, powered off, that dial is just a blank, unmarked black ring. Customers found it confusing and intimidating. Same for salespeople. As a result, these models were often overlooked, negatively impacting sales.

Enter the interactive laundry dial tool, a mobilefriendly experience developed by Cogent360 that, as the name suggests, provides an interactive tour of the dial and other settings. With just a few taps, users can explore all the features of the dial, what each setting does and even simulate starting a load of laundry, including making any desired adjustments to water temperature and other settings, to see for themselves how simple and intuitive the system actually is.

The impact: Salespeople finally have a way to confidently explain the controls, customers feel empowered rather than intimidated, and more shoppers choose these models because they actually understand their benefits.

2

Virtual 3-D environments that bring products to life. Another major challenge in retail is that consumers struggle to visualize appliances in their home. On the showroom floor, appliances are typically displayed in rows, surrounded by other models. If the customer wants a specific colour or configuration that’s not on display, they have to guess what it will look like in their home.

To solve this, LG and Cogent360 developed an ultra-realistic 3-D virtual kitchen and laundry space: a lifelike, 360-degree environment where customers can click on any appliance model to see how it looks in a real home setting; peruse through aggregated information about that model, including features, images, specifications, similar models

Measurement tools that cut down on returns. If you’ve ever bought a new appliance only to find out it doesn’t fit properly, you know how frustrating (and expensive) that mistake can be. It turns out this happens a lot — fridge doors damaging walls or being dinged by counters, washers too big for closets, dryers bought with the wrong fuel type, and other similar issues.

LG again partnered with Cogent360 to address this with its Measure First guide, a digital tool that walks customers through every step of measuring a specific space and educates them on key considerations when purchasing appliances.

From entryways to counter spacing, shoppers put in their measurements and the tool provides the appliance dimensions that will fit perfectly in their home. It provides printable results to bring to the store, streamlining the decision-making process for both customers and sales teams. (As an added bonus, LG provides branded measuring tapes with QR codes that link to the tool, so customers can get their measurements right the first time.)

The results: Customers feel more confident in their purchase and there is a noticeable drop in store returns due to poor fit.

THE FUTURE OF RETAIL

These digital tools aren’t just convenient. They fundamentally change how people shop for appliances and electronics. Just imagine if every major brand had similar interactive tools. Customers would be able to clearly understand all the features and benefits a product offers, visualize their purchase in their home before committing and ensure they’re buying the right size the first time.

It’s a win-win-win. Manufacturers win because products are better understood and appreciated.

Retailers win because salespeople are more equipped to guide customers. And, most importantly, consumers win because they feel confident in their choices — leading to fewer returns and an improved customer experience.

Dave Chace is president and founder of Cogent360. He is a 35-year veteran of the consumer electronics and custom integration industries, and a former director of product training for a major U.S. specialty consumer electronics retailer. Dave can be reached at dave@cogent360.com.

34 | HOME GOODS MERCHANDISER SPRING 2025

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retail matters

Shopping Cart Abandonment

15 reasons your store may be driving customers away

HAVE YOU EVER WALKED INTO A STORE and thought, “Yikes, I hope my showroom doesn’t look like this!”

Retailers sometimes get so caught up in day-today operations that they overlook stuff that is probably less relevant to their most loyal customers.

But you know who notices?

New shoppers. They’re not afraid to turn on their heels and walk right out. And they don’t return to explain themselves; they tell their friends.

Here are 15 things that make customers cringe when they visit a store.

BY BOB PHIBBS

play them safely rather than relying on intimidating signage.

THE GHOST TOWN EFFECT

Inconsistent hours. Nothing says, “We don’t really want your business,” like showing up to a closed store when it’s supposed to be open.

Cause: Lack of structure and accountability in management.

Fix: Stick to posted hours. If you need to change them, update all online listings and create one clear, professional sign.

THE DUST BOWL

THE MUSEUM SYNDROME

‘Don’t touch’ and ‘You break, you buy’ signs plastered all over the place. It’s just asking customers to keep their hands and wallets to themselves.

Cause: Fear of damage and loss. It often stems from not trusting customers because it happened once.

Fix: Remove these signs and train staff to engage with customers. If you have delicate items, dis-

the start of each day. Better yet, enter through your front door, not the back. You’ll see what customers experience.

Litter, dirty windows, cobwebs and dust bunnies the size of actual rabbits, leftover tape from holiday decorations or a faded, yellowed promotion hanging over a brand-new item.

Cause: Getting too comfortable with your surroundings and not seeing your store through fresh eyes.

Fix: Set up a daily cleaning schedule. Have staff take turns doing a ‘customer walk-through’ at

36 | HOME GOODS MERCHANDISER SPRING 2025

THE HOVERING HELICOPTER

When a salesperson hovers or asks if help is needed the moment customers walk through the door. The first instance makes customers feel unwelcome, especially when with a child, and the second makes them feel uncomfortable.

Cause: Both come from a desire to be helpful but reflect poor training on customer engagement techniques.

Fix: Instruct staff to acknowledge customers with a greeting, then give them space. Teach employees to read body language when customers need assistance.

THE CLONE WARS

Small town retailers that carry the exact same lines.

Cause: Fear of missing out and lack of originality in product selection.

Discover

Experience consistent, supportive sleep designed for your lifestyle

retail matters Fix: Foster a community-minded approach. Collaborate and celebrate other local businesses instead of bad-mouthing them.

THE BATHROOM NIGHTMARE

A dirty bathroom.

Cause: Neglecting areas that aren’t directly related to sales.

Fix: Include bathroom checks in your regular cleaning schedule. Stock them well and fix any issues promptly.

THE POLITICAL SOAPBOX

Unsolicited political opinions. This is divisive.

Cause: Lack of professional boundaries and training on appropriate workplace conversation.

Fix: Implement a policy on discussing sensitive topics at work. Train staff to steer conversations back to neutral ground and avoid joining in.

THE ‘NOT MY PROBLEM’ ATTITUDE

Fix: Focus on curating unique products that align with your store’s brand. Build relationships with suppliers who offer exclusivity agreements.

THE CARDBOARD JUNGLE

Hastily handwritten notes taped everywhere.

Nothing says, “We don’t care,” more than this. It also looks cheap.

Cause: Laziness or thinking that a quickly scribbled sign is better than nothing.

Fix: Invest in a printer that can print what you need on-site and create a template for professional-looking signs that matches your brand aesthetic.

THE INVISIBILITY CLOAK

Employees who pay more attention to their phones than the store in general or customers specifically. Staff may think no one notices but they’re wrong.

Cause: Lack of engagement.

Fix: Implement a clear policy on phone use and lead by example. Give staff designated break times for checking their phones.

Cause: Poor staff scheduling and lack of attention to the checkout area.

Fix: Always have someone assigned to the checkout. Even putting a bell at the register is a start so customers don’t feel invisible.

MOOD LIGHTING (OR LACK THEREOF)

Lighting that’s too dim or too harsh. The former makes a store look gloomy while the latter makes it feel like a hospital. With LED lighting, there’s no excuse for too few lights or those cheap fluorescent pigtails sticking out of track lights.

Cause: Overlooking the importance of proper lighting in creating ambiance and showcasing products.

Fix: Invest in quality, adjustable lighting. Move from just a bunch of ceiling lights to a mix of accent lighting fixtures to create a more intimate and welcoming atmosphere.

GOSSIP CENTRAL

Talking bad about other stores to customers.

Cause: Insecurity and misguided attempt to make your business look better by comparison.

Blaming external factors for your store’s issues.

This is a sure-fire way to never improve, as a can’t-do attitude gets you nothing.

Cause: Fear of taking responsibility.

Fix: Adopt a proactive approach to problem-solving. Encourage staff to bring positive solutions, not just excuses.

THE CLUTTER EXPLOSION

Store supplies and cleaning items in plain view.

Your stockroom isn’t an extension of your sales floor.

Cause: Lack of proper storage solutions, poor organization and inadequate training.

Fix: Invest in proper storage systems and implement a ‘return to original location’ policy.

Emphasize that task completion includes proper cleanup. Remember: A job isn’t truly finished until everything is back in its place.

THE FEE FRENZY

Charging a merchant fee on top of the sale.

While processing fees are a reality, passing them on to customers can leave a sour taste.

Nothing says ‘petty’ like hidden fees made public.

Cause: Offset costs without raising prices.

Fix: Build processing fees into your pricing structure instead of adding it at checkout.

THE MONEY HIDE-AND-SEEK GAME

The inability to find someone to ring up a purchase, especially when it could be done on a tablet or phone. Nothing kills a sale faster than a customer who is ready to buy but no one’s around to take their payment.

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

38 | HOME GOODS MERCHANDISER SPRING 2025

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retail matters

COST-CUTTING TO DRIVE RESULTS

Tips to reduce operating expenses, improve your bottom line and free up funds to invest in other areas of your business BY DONALD COOPER

40 | HOME GOODS MERCHANDISER SPRING 2025

retail matters

REDUCING YOUR OPERATING EXPENSES BY just five per cent can grow your bottom line by 20 per cent or more. Trust me on this, or check with your accountant. If your accountant can’t explain this to you, get a new one.

Here are 10 ways to reduce operating expenses.

While they won’t all apply to your business, many of them will.

Remember to review your operating expenses at least once a year. Keeping them down is an ongoing battle, not a one-time event.

1

Make a list. Write down your 20 biggest expense items, as they have the most potential for significant savings. Ask suppliers what opportunities or special terms you’re missing out on, for whatever reason, and how you can work with them more effectively. Outside industry experts can also spot major opportunities to streamline operations quickly and affordably.

2

Renegotiate contracts. Review every con-

tract from maintenance and groundskeeping to insurance, phone and office equipment.

Ask those suppliers how you can save money so that you can stay with them and grow together.

Be nice, firm and fair, but switch suppliers if necessary.

3

Check member benefits. Contact your indus-

try or trade association to see what special rates they’ve negotiated on items like insurance, car rental, hotel rates and employee benefits. If your association has done nothing to negotiate savings for its members, suggest they do so.

4

Evaluate employees. Where or when are you overstaffed? How can you adjust staffing

without hurting your service levels? Are you keeping non-performers who are costing you money, time and, perhaps, customers? What is it costing you not to deal with non-performance?

5

Assess office use. Do you need all that physi-

calspace?Orisitgoingtowaste?Ifstaffareinthe office for only a small part of their normal workweek, assigned seating doesn’t make a lot of sense.

Open seating, where desks and computers are available on a first come, first served basis, may be more practical and save on space and IT costs. If excess space can be sold or rented out, or if you can move to a significantly smaller space, you can reduce occupancy costs.

6

Embrace ‘lean’ thinking. Many smart manufac-

turers and service providers are adopting ‘lean’ principles to create an efficiency advantage. The five principles of lean encompass identifying value, mapping the value stream, creating flow, establishing a pull system, and striving for continuous improvement. Lean thinking provides a disciplined approach to examining each step in a production and/or distribution process to determine areas of improvement and eliminate non-value activities and waste.

7

Ensure invoices get paid. Not managing cash flow is one of the biggest reasons for failure in small and medium-sized businesses. If you sell to consumers who pay by credit card, it’s not a problem.

But if you extend credit, don’t let your accounts receivable get out of hand. Often, small customers fail to pay on time because they can’t and big customers don’t pay because, quite frankly, they’re jerks. They both want your absolutely lowest price and then keep you waiting months for pay-

ment. Don’t be so desperate that you have to do business with unprofitable or toxic customers.

Sometimes, however, late payments are your own fault — you fail to invoice promptly or follow-up diligently. Receivables don’t get better with age and writing off bad debts can destroy your bottom line.

8

Identify areas of waste. Pennies add up. Ana-

lyze your production and/or distribution process so you can determine what items fall into the non-value-adding category and adjust.

9

Adopt technology. Sure, technology costs

money, but it reduces operating expenses by automating many tasks and increasing productivity. To more effectively incorporate technology into each part of your business, you need a specific, expert technology advisor. This is very different from a ‘break/fix’ technology repair person; it’s an expert in needs and possibilities analysis, software selection and creation, installation and integration, and maintenance and updates.

10

Encourage input from your team.

Your employees at all levels have lots of ideas about how you can operate more efficiently, but they are reluctant to share if not asked.

Team meetings provide an excellent opportunity to obtain valuable input. Or host a twohour ‘idea fest’ every quarter, where everyone must come up with at least one idea to operate more effectively. Give staff at least a week’s notice so they can do their homework. Then, let them vote on whose idea is best and give the winner $200 or a restaurant gift certificate. This encourages input going forward.

Donald Cooper has been both a world-class manufacturer and an award-winning retailer. Now a Toronto-based business speaker and management coach, he helps business owners and managers rethink, refocus and re-energize their business to create compelling customer value, clarity of purpose and long-term profitability. Donald can be reached at donald@donaldcooper.com. homegoodsonline.ca | 41

tech talk

A New Era of Entertainment

Immersive television transforming the way people watch

LEAVE IT TO CES TO BREAK THE OLD formulas of home entertainment. The annual trade show, produced by the Consumer Technology Association (CTA), is known as the most powerful tech event of the year, offering brands the opportunity to showcase their vision of the technologies of tomorrow. At this year’s event, LG, Samsung, Sony, TCL and Hisense, among others, introduced cutting edge devices that will shape living spaces in the years to come, especially in the home entertainment segment.

The Future of Immersive TV panel discussion at CES explored the many ways consumers will consume content and engage with brands in the coming years. From generative artificial intelligence (AI) to the fragmented media landscape, screen technologies to social media, and the 42 | HOME GOODS MERCHANDISER SPRING 2025

BY RICK KOWALSKI

future of sports entertainment, it was all covered.

Through the conversation, panelists discovered immersion comes in many shapes and sizes, and it can involve a variety of devices. Ultimately, it was found that advances in immersive entertainment expand what is possible in the living room, but they also encourage entertainment possibilities beyond this space.

THE PERSONALIZED VIEWING EXPERIENCE

“No one is watching TV the same way,” said Sasha McCune, vice-president of media, entertainment and culture at CMB, a market research and analytics firm. “Every single consumer out there in the world has this unique snowflake of how they’re interacting with their content,”

tech talk

engaging with multiple devices across different platforms to create a “media universe in their home.”

McCune succinctly highlighted the complex entertainment experience that consumers find themselves in these days. For many, immersive television involves their whole home technology ecosystem, including information from other apps and devices.

Indeed, the concept of the television as our central source of video content is long behind us.

According to a CTA research study of U.S. content viewers, just 54 per cent of video is now viewed on a TV, whereas 23 per cent of video is watched on a smartphone, and 24 per cent is viewed on other devices like laptops, tablets, desktops and portable game devices.

Panelist Dan Mouradian, senior vice-president of global client solutions at Innovid, said he often asks people, “How do you watch TV?,” to demonstrate the fragmented video viewing experience. For a boomer, it may be watching a specific show on a television set at 7 p.m. every night; for a Gen Zer, TV might be watching video on a smartphone in bed. Immersive experiences can happen anywhere, so for a company like Innovid, which enables advertisers to deliver, measure, personalize and create interactive experiences for the TV, it must understand the nature of the content and limit any disruption to that experience.

According to Mouradian, “For the advertising world, immersive TV is defined as personalized creative. It’s interactive creative — creative that you can engage with. It’s one that allows the consumer to continue to explore and invest in the experiences that they’re taking part of.”

IMMERSION IN A FRAGMENTED ENVIRONMENT

Just how fragmented is the video industry?

Mouradian said that Innovid will sometimes encode an ad more than 90 times to deliver the video on different types of devices. The fragmentation can be even more challenging when your whole business revolves around colour management systems that aim to provide consistent video experiences across virtually every screen technology imaginable.

This is the case for 6P Color Inc. The company’s chief technology advisor Matthew Brantly asked, “How do you provide the same experience that transcends the technology?”

Brantley said consumers expect the experience to be similar, no matter what device they are on. The key is understanding the intended experience first and then leveraging the technology to deliver that experience. In other words, don’t let the screen technology dictate the experience.

“Advances in artificial intelligence, especially large language models, will change how we engage with televisions and our content.”

THE FUTURE OF TELEVISION

The panelists highlighted some ways the TV experience may change in coming years.

The Future of Immersive TV discussion at CES 2025. Panelists included moderator Rick Kowalski, Consumer Technology Association; Matthew Brantley, 6P Color; Sasha McCune, CMB; and Dan Mouradian, Innovid.

homegoodsonline.ca | 43

tech talk

“For many, immersive television involves their whole home technology ecosystem.”

Venues like the Las Vegas Sphere are imagining novel 360-degree experiences outside of the home and, according to CMB’s McCune, these experiences will change people’s standards of quality for immersion in the home. McCune said consumers may seek out a home “surround visual experience that people are looking for to mirror the surround sound era.”

Brantley of 6P Color noted the popularity of immersive visual displays in art galleries and said the future of TV is all about increasing the visual canvas to relay experience to consumers.

Devices like Samsung’s Frame and TCL’s Nxtframe can function as dynamic art pieces that replace static wall hangings. Large 100-inch laser projectors expand visual footprints in the living room, while portable projectors make it convenient to turn any wall into a screen. Zeiss Microoptics introduced its holographic transparent displays at CES 2025, opening the possibility of virtually any window becoming a screen (or camera). Meanwhile, LG exhibited its transparent OLED TVs, which also transform windows into engaging displays.

Advances in AI, especially large language models, will change how we engage with TVs and our content. McCune of CMB imagines you will have the ability to “have conversations with your TV, to ask your TV for recommendations, and to have a dialogue about what you’re in the

mood to watch, which is a very organic way of interacting with content.”

Meanwhile, generative AI can now translate, overdub and lip sync video to make it look like the people on screen are speaking in any language. And eventually, some video may be completely generated by AI to meet personalized preferences for genre, characters, musical score and plot lines.

If looking for immersive TV innovation in the future, consider sports. Seventy of the 100 most viewed TV broadcasts in the United States in 2024 were NFL games, while NHL games were some of the most viewed broadcasts in Canada. The production of this year’s Super Bowl involved 147 cameras to provide every conceivable viewpoint of the game, for both real-time and replay action. Taking that a step further, Innovid’s Mouradian highlighted the potential of virtual reality headsets.

“If the cameras are good enough, the colour is good enough and the screens are good enough, and I can suspend disbelief for long enough, now I’m sitting … courtside at the Knicks, or I’m sitting (at the) 50-yard line at the Super Bowl, and why do I have to be static?,” he said. “Why can’t I just get on the field with them?”

HOME GOODS TAKEAWAY

What are the takeaways for those in the home goods space?

Immersion isn’t just for home entertainment.

Augmented and virtual reality can help people get a better feel for what a remodel will look like and may help convert customers from renovation-curious to renovation-committed. For example, Lowe’s Style Studio uses an Apple Vision Pro headset to help people experience a kitchen renovation design.

Home goods companies can also be mindful of technology’s expanding footprint in the home.

Design products with an eye toward immersive experiences. Think about where the screens will fit into the space, how the audio equipment will be incorporated and where people will enjoy engaging with immersive content. Make it convenient for people to incorporate technology in their living rooms, seating and other home spaces. By embracing advancements in immersive entertainment, home goods retailers and manufacturers can offer products that not only meet but exceed consumer expectations, creating a more enveloping and enjoyable home environment.

Rick Kowalski is senior director of business intelligence at the Consumer Technology Association (CTA). CTA represents the $505 billion US consumer technology industry and is the producer of CES, the most powerful tech event in the world.

44 | HOME GOODS MERCHANDISER SPRING 2025

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Contact Kris McFadden, Publisher, at 416-512-8186 ext. 240, 416-979-8929 or krism@mediaedge.ca.

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TRADE TURBULENCE

Navigating uncertainties brought by U.S.-Canada trade war By conventional measures, the first months of Donald Trump’s second presidency have been chaotic. Just two weeks after his inauguration, he imposed and then temporarily paused steep tariffs on Canada, only to go ahead with them several weeks later, resulting in retaliatory measures from this country. As the two nations slug it out, the Canadian furniture industry has be caught in the fray. Here, four industry veterans explain how the tariffs and, subsequently, unpredictable economic environment have affected their business, and what they are doing to minimize the impact.

JASON HARRIS, STYLUS

As both a domestic manufacturer and importer of finished products sold throughout Canada and the United States, the tariff impact has been diverse. At home in Canada, we’ve seen an uptick in orders fuelled by the ‘buy Canadian’ sentiment. In the United States, while we escaped tariffs on our Canadianmade products, our U.S. partners were happy with the support plan we proposed. However, our imported product, which is mostly from China, received the highest tariff levied, effectively pausing exports to the U.S. until it is resolved. Through the supply chain, we see a tremendous opportunity to gain a competitive advantage. Our scale allows us to source fabrics in bulk direct from overseas, avoiding the tariffs included by U.S.-based distributors. This will allow us to offer more competitive pricing than smaller Canadian and U.S.-based manufacturers. Overall, we are optimistic that we can navigate any downturn in demand through market share growth.

SUNDEEP BAGGA, SUNPAN

Like many across the industry, we have felt the impact of recent tariffs. That being said, our business is well-positioned to remain resilient amid these economic headwinds. Over the past few years, we have taken deliberate steps to diversify our global supply chain and source closer to home, while working hand-in-hand with our vendors to navigate these challenges. The opening of our first U.S. warehouse in Houston last year proved to be a timely and strategic move, significantly improving our inventory management and order fulfillment capabilities. We remain optimistic as this proactive approach has only strengthened the foundation we have built to remain agile in a rapidly evolving landscape.

LUKE SIMPSON, DURHAM FURNITURE

As a Canadian exporter to the United States, the current tariffs and looming threat of additional trade restrictions have created significant uncertainty in our supply chain and pricing models — input costs are volatile and surcharges on pricing are hard to achieve. The uncertainty at a consumer level is definitely affecting retail purchasing, hampering sales and making it difficult to plan production and manage costs. Minimizing the impact is difficult as there is only so much you can do from an operational efficiency standpoint. The touted concept of exploring new markets (outside of Canada and the U.S.) is not remotely realistic in any short-term sense. We’re working closely with industry partners and policy-makers to advocate for stable, fair trade conditions while we navigate this challenging environment.

DARRYL SHERMAN, WILSON FURNITURE

Retail sales in 2025 have been down slightly from 2024, as economic recovery is sluggish to date.

Tariffs have added a chill to consumer demand. The biggest change has been the rise of nationalism and demand for Canadian-made furniture. About 40 per cent of our lineup is Canadian-made. We also carry better U.S. manufacturers to provide unique options. Adjusting retail prices to cover Canadian counter-tariffs, plus anticipating charges on Asian-made furniture, has been difficult to predict. Orders placed prior to, but shipped after, Canadian counter-tariffs have been absorbed by us. Our strengthened Canadian dollar has offset some of the unanticipated costs. As we respond to customer demand and sales, we will pivot to more Canadian-made products, seek out new items with our existing suppliers and search for new Canadian manufacturers. How customers will respond to higher price tags and how all this will affect our bottom line remains to be seen.

46 | HOME GOODS MERCHANDISER SPRING 2025

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Product photo from Three Birds Casual

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