HGO Summer 2025 by MediaEdge

HOME GOODS MERCHANDISER

Total Care

Furniture protection plans worth it for retailers, consumers alike

STORE TRAFFIC

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12 SUSTAINABLE COMFORT

Developed from a growing awareness of the negative environmental and health impacts of conventional mattress manufacturing, Calgary-headquartered Black Sheep Mattress Co. has been delivering an artisanal approach to the industry for nearly 15 years.

STRATEGIC SUCCESSION

At some point in a business’s life cycle, the topic of succession planning will arise. All too often, what happens to staff isn’t talked about enough. This is where an employee share ownership plan may come in.

THE CONVERSION PATHWAY

While declining store traffic continues to dominate headlines and remains the most frequent reason cited for lacklustre retail performance, the fact is, it’s only part of the story; the other is conversion rate optimization.

A WORTHWHILE WARRANTY

Want to scale to new levels of success? Offering furniture protection plans could give your business the value-focused boost it needs to enhance the customer experience while driving incremental revenue.

OPTIMIZING LOGISTICS

A bi-coastal approach to warehousing can make all the difference in today’s retail furnishings industry, streamlining operations and giving your business a competitive edge in an evolving landscape.

HOMEWARD BOUND

After 21 months of looking for a new home, which amounted to dozens and dozens of viewings, my family is finally moving. Finding the right place was no easy feat since our search was confined to a specific area to remain within my kids’ school catchments. When we finally did, we acted fast, buying before selling. As also a real estate professional, I would not recommend doing so in today’s Toronto housing market. With inventory levels elevated and many buyers staying on the sidelines, homes are sitting longer. In this situation, there’s risk of carrying two mortgages at once or being unable to close on your new home because down payment funds are tied up in your existing one. And if your current home sells for less than anticipated, you may not have enough money needed for your new purchase. In my case, thanks to industry experience, we sold our home relatively swiftly, though it wasn’t without stressors.

I’ve always known the home furnishings industry is closely tied to the housing market, but preparing to move has made me more astutely aware. While taking existing furnishings with us, most will need to be replaced to suit our changing lifestyle and space. However, having just made a major purchase that comes with a higher monthly mortgage payment, we’ll likely wait to buy any big-ticket items until the Canada-U.S. trade war is at least somewhat settled and the economy is on better footing.

My thinking is not unique; consumer confidence is in the doldrums and many people are taking a wait-andsee approach to shopping, which is reshaping spending. This, in turn, is hurting businesses, especially small to medium-sized ones. In this issue’s Observations column, we ask four furniture industry insiders a simple yet complex question: What needs to happen internally and externally to get consumers back in stores?

Bricks-and-mortar retailers aren’t the only ones feeling the pinch of a more cautious consumer; e-commerce platforms are too. What’s most interesting, however, is the shift to economic nationalism that’s taking place. Though still in its early stages, the ‘buy Canadian’ movement has gained traction and is benefitting certain brands and businesses. Once such company is Black Sheep Mattress Co. Based in Calgary, where all its products are made, the premium mattress producer is our company profile this edition.

If interested in sharing how your business is faring in these uncertain times, contact me at claret@mediaedge.ca.

Clare Tattersall

PUBLISHER

Kris McFadden krism@mediaedge.ca

PRESIDENT Kevin Brown kevinb@mediaedge.ca

GRAPHIC DESIGNER

Thuy Huynh-Guinane roxyh@mediaedge.ca

PRODUCTION COORDINATOR

Ines Louis Inesl@mediaedge.ca

PROGRAMMATIC

ACCOUNT MANAGER

Rhea Sood rheas@mediaedge.ca

EDITOR Clare Tattersall claret@mediaedge.ca

ART DIRECTOR

Annette Carlucci annettec@mediaedge.ca

CIRCULATION

Adrian Holland circulation@mediaedge.ca

DIGITAL MARKETING DIRECTOR Abhinav Dadarkar abhinavd@mediaedge.ca

SOCIAL MEDIA DIRECTOR Steve Chester stevec@mediaedge.ca

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

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STRATEGIC SUCCESSION

ESOPs enhance employee, company performance while facilitating

smoother ownership transition

BY JOANNA PHILLIPS

FOR MANY CANADIAN BUSINESSES,

THE topic of succession and retirement is a daunting one given how many are family-run. But it’s not always possible to pass the business on to the next generation. This is where an employee stock ownership plan (also employee share ownership plan or ESOP) may come in.

Succession planning involves many components — technical tax and legal, culture and communication — that should be detailed in a written plan. However, only one in 10 business owners have a formal business succession plan in place to ensure a smooth transition, according to the Canadian Federation of Independent Business.

Research shows three-quarters of owners will leave their business for retirement, while a smaller share will exit because of stress or to step back from their responsibilities, 22 and 21 per cent, respectively. To make the process more challenging, there

are barriers that keep business owners from planning. Finding a suitable buyer is the most common obstacle to succession planning (54 per cent), followed by business valuation (43 per cent) and the reliance on the owner for day-to-day operations (39 per cent).

The most essential factor for owners when selling their business is protecting current employees, indicated by 56 per cent of owners as very important — more than getting the highest price, ensuring legacy and so on.

ESOPs can be a feasible consideration for many private Canadian businesses because they take care of employees and maintain legacy, the owner doesn’t have to search for a buyer and employees have great knowledge of the business; they might be the best ones to run it. On a larger scale, they are great for the country, keeping businesses and jobs local and sharing wealth with those who build it.

Research from the National Centre of Employee Ownership shows businesses with successful ESOPs can thrive. They experience faster growth than expected (eight to 11 per cent annually); higher productivity (four to five per cent), leading to higher sales and company value; and longer job tenure (53 per cent). These companies are also 50 per cent less likely to go out of business and are more resilient through challenging times. Employees in successful ESOP companies generally have higher wages and retirement accounts.

But what exactly are these plans?

Employee share ownership can be structured in a variety of ways, but essentially it is a formal plan that allows employees to acquire and realize results of ownership in the business in which they are employed.

Therearefivemainmodelsofemployeeownership: employee ownership trust (EOT), equity share/purchase plan, stock option plan, phantom share plan and employee co-operative.

EMPLOYEE OWNERSHIP TRUST

An EOT is a newer model, available since January 2024, allowing qualifying businesses and business owners to sell the company to their employees via an EOT. The selling business owner is able to access up to $10 million of capital gain tax-free until 2026, a significant tax incentive. It allows all eligible employees to be beneficiaries of the trust and allocate profit (annually, for example) and/or equity payout when an employee leaves (retires, for example).

The EOT buys the shares from the owner for the benefit of the employees with funds from a lender and/or the company. Even though the owner is selling a controlling stake, they would likely see their full payout over time through company profits, rather than immediately.

An EOT is best used for owners wishing to fully sell their business as the transaction must be a sale of a majority interest; the business owner would no longer control the company from a legal standpoint. If desired, the selling owner can continue as a director of the company and as a trustee (along with employees) in the EOT, but only to a certain degree. The business owner must also be comfortable having their employees essentially own the business without having to pay for any shares, and

that all employees are eligible (it is not a key person plan). It can be an attraction and retention tool for the company long-term.

EQUITY SHARE/PURCHASE PLAN

An equity share/purchase plan is one where employees purchase shares from the owner (or subscribe for shares from the company) with their own funds (lump sum cash, payroll deduction, loans the employee gets on their own). There are other means to help make the program more attractive for employees — give shares as a bonus (annually, for example), offer a payroll deduction program, loan funds to the employee from the company and propose to match share purchase with ‘free’ shares. Many owners value the concept of financial skin in the game; they believe it maximizes the ownership thinking that would result from having ownership in the company compared to if the shares were given to employees.

There is flexibility in how much ownership is transferred to employees and when it is transferred, so the original owner can exit on their terms. However, there is no special tax incentive to the owner. As the employees are now owners as well, they may be able to access the capital gain taxation and lifetime capital gain exemption when they eventually sell, as long as certain conditions are met.

to realize

grow

Employee share ownership plans are an ideal way for small to medium-sized business owners to create a succession plan that allows them

their earned value while leaving the company they built ready to

in the hands of their employees.

“Employees in successful ESOP companies generally have higher wages and retirement accounts.”

In addition to succession, this model is great for attracting and retaining employees, engaging everyone in an ownership culture and alignment to the same goal.

STOCK OPTION PLAN

A stock option plan is a common model in start-up companies or those that want to encourage key people who have the most direct influence on company value. Employees are offered the ‘option’ to purchase shares at some point in the future at the current price (or less) with the goal of incentivizing them to increase the success of the company. If the company grows in value after five to 10 years, the employee would exercise their stock option, purchase the shares at the previous price and sell (if available).

The model is employed most often when a thirdparty sale is the desired outcome, but can also be useful as a long-term motivator without the goal of a third-party sale. There is no upfront risk from employees and it may not achieve the ownership culture to the same extent as the other models. There is also certain administration that goes along

with a stock option program, such as proper expensing of stock options annually.

PHANTOM SHARE PLAN

A phantom share plan doesn’t involve sharing legal ownership; rather, it is more like a super-bonus program because it creates an agreement between the company and employee that they will have access to funds based on the success of the company. Typically, the agreement involves the employee ‘acquiring’ units that mirror a share in the company; they can go up and down in value. There can be profit distributions based on the value and/or payouts upon certain exit events like retirement based on the value at the time.

This model is not effective as an exit strategy as no ownership is actually being transferred; however, it can be successful as a bonus plan that aligns employees’ behaviour with increasing the company’s value and does not require any financial disclosure. The owner and employees would not be able to have capital gain tax treatment or access the lifetime capital gain exemption in this model.

EMPLOYEE CO-OPERATIVE

Popular in some areas of Canada, a co-operative model involves employees becoming equal owners of the company. It is a slightly different mindset compared to the other models because everyone has an equal say in running the company. Like the other models, it can be a feasible option for increasing ownership culture, keeping business in the community and sharing wealth with those who create it.

THE RIGHT CHOICE

When considering employee ownership, a business owner should connect with a specialist to assess which model, if any, is feasible. No two companies are the same and the specific employee ownership plan chosen is going to depend on the owner’s and company’s goals, the employee group and technical structure. All models have potential to achieve an ownership culture to varying degrees, the key being how engaged the employee group is. When contemplatingtheseplans,makesuretonotonlythinkabout the technical components (legal agreements, tax structuring, valuation) but also the cultural elements (communication and education) to ensure employees are engaged and your program is successful.

Joanna Phillips is director of Employee Ownership Canada, a non-profit association that aims to provide information about, and increase awareness of, employee ownership for Canadians. She is also vicepresident of ESOP Builders, a provider of employee stock ownership plans for small and medium-sized businesses in Canada. Joanna’s background is in human resources (HR), which started when she earned an honours degree with a specialization in HR, followed by an HR designation, the Certified Human Resources Professional (CHRP), and eventually the Certified Human Resources Leader (CHRL) designation. She has been formally involved in the employee ownership space since 2019.

An employee share ownership plan taps directly into key drivers of career well-being by giving employees an ownership stake, which research shows increases engagement and satisfaction.

FINDING ITS FOOTING

Economic unease a drag on homebuying activity in Q2, but Canada’s housing market shows signs of entering long-expected recovery phase BY CLARE

TATTERSALL

The number of newly listed properties were down and national home sales up at the end of June.

THE FEDERAL ELECTION, TARIFF TURBULENCE and mixed economic signals dominated headlines at the start of the second quarter, coinciding with the beginning of the spring market — typically one of the busiest times of year for home buying and selling. Faced with growing uncertainty, many homebuyers hit pause, choosing to delay purchase decisions until clearer signs of stability emerge. The Bank of Canada also held back, keeping interest rates unchanged at 2.75 per cent during its scheduled April and June announcements, citing the need to “gain more information about both the path forward for U.S. tariffs and their impacts.” As a result, spring market sales were noticeably subdued in several regions across the country. Sellers, on the other hand, still actively listed their homes for sale despite lower than normal activity.

The spring slowdown was most evident in Ontario and British Columbia, namely in Toronto and Vancouver, two of the country’s largest and most expensive markets, where rising inventory and stagnant demand have persisted for several months. Activity in Toronto’s condominium market remained particularly depressed, further weighed down by a steady stream of new construction completions that continue to add to existing supply. With rental demand softening due in part to lesser international students and newcomers entering the city, investor interest in condos has declined and fewer are adding units to their portfolios. In contrast, resale condos in Vancouver demonstrated some resilience, attracting entry-level millennial buyers. However, demand for new construction has slowed, leaving hundreds of new units still available on the market, many of which would typically attract investor interest. Tighter regulations around foreign buyers and rental properties have contributed to a less favourable environment for inves-

tors, prompting some to redirect their capital to other provinces like Saskatchewan.

There are early signs that confidence is returning to these two major metropolitan areas. Toronto posted a strong rebound in activity from mid-May through June, while sales activity in Vancouver stabilized in the final month of the quarter — a break from the usual seasonal slowdown. June’s robust employment report from Statistics Canada may help rebuild confidence and bring more buyers off the sidelines, though real estate brokerage Royal LePage expects both markets to remain sluggish in the months ahead.

In comparison, most other provinces fared well in the second quarter, illustrating Canada is a ‘market of markets.’ Sales activity was especially strong in Quebec City, Winnipeg and Regina. Unlike Montreal, where transactions remained high but the city has started to exhibit a slowdown that may be a sign of a changing tone in the market, demand in Quebec City continued to far outstrip supply — a trend that has been seen for several quarters now and is supporting price gains across all property segments. Winnipeg experienced one of its busiest spring seasons in recent years, with home sales surging to near record-breaking levels. The region’s relative affordability, stable economy and resilience to potential tariff threats have kept consumer confidence high and demand strong. Global conflict and trade uncertainty have also had little effect on market momentum in Regina. With inventory at critically low levels, the city’s persistent seller’s market remained firmly intact.

In Alberta, the momentum that carried Edmonton’s real estate market out the gate strong in the first few months of the year, with activity surpassing expectations, has eased. Demand has stabilized and was slightly lower than the second quarter of 2024. At the same time, available inventory has started to build.

Calgary is also starting to show signs of more balanced market conditions.

Out east, sales activity in Halifax ticked up toward the end of June, despite rising inventory, showing more strength than usual for the time of year.

Looking at 2025 as a whole, sales and average home prices are now predicted to post small declines compared to 2024. The Canadian Real Estate Association (CREA) has downgraded expectations from its last quarterly report, when it forecasted flat sales and average home prices at the national level.

Some 469,503 residential properties are predicted to trade hands via Canadian MLS systems in 2025, representing a three per cent decline from 2024. That said, British Columbia, Alberta and Ontario are the only provinces forecast to post declines this year, slightly offsetting gains everywhere else.

The national average home price is expected to edge back by 1.7 per cent on an annual basis to $677,368 in 2025, which is about $10,000 lower than what CREA forecasted back in mid-April. Only British Columbia and Ontario are predicted to see a drop in average home prices this year, but the combination of those declines, along with fewer sales in those expensive provinces, is enough to offset price gains in the range of four to eight per cent in all other provinces in 2025.

Right now, CREA is forecasting national home sales to rebound by 6.3 per cent to 499,081, in 2026, which would put activity back on track with what was expected in its April forecast. That said, it would still mark the fourth straight year for sales failing to crack the half-million mark, something that has only occurred seven times going back to the first recorded instance in 2007.

Sustainable Comfort

Black Sheep Mattress Co. goes against the herd to successfully create handcrafted natural sleep products for nearly 15 years BY CLARE TATTERSALL

MATTRESSES ARE SOMEWHAT OF A BLIND purchase. Generally, little distinguishes the look from one to the next besides branding — they’re a large, rectangular ‘pad’ designed to support a person while sleeping — and features that matter most are hidden inside. This can make finding the right mattress time-consuming and downright tricky. That was the case for Christian Schmidt, who spent the better part of a year searching for this bed essential.

Specifically, Schmidt wanted a sustainable alternative to the conventional mattress that was eco-consciously manufactured and free of toxins to reduce environmental impact and ensure a healthier night’s rest. He came up empty-handed and came away disillusioned by the very limited natural options that were available in 2010. But instead of brushing his dissatisfaction aside, Schmidt used it as motivation to fill an industry void. Less than a year later, he built and sold his first handcrafted mattress made from all-natural materials, effectively launching Black Sheep Mattress Co.

“I just felt compelled to do it,” says Schmidt about the business endeavour that he admittedly embarked on hastily. “Having an environmental background, it was the right thing to do. It was also an ideal opportunity, although I was probably a bit ambitious given my skill set and knowledge.”

While armed with a bachelor of commerce from University of Calgary, and masters in sustainability science from Lund University in Sweden, Schmidt was a first-time entrepreneur who lacked real-world experience in the mattress industry. Recognizing his initial shortcomings, he vigorously researched what other well-known companies were doing, and even reached out to Burgess Bedding Co., one of the oldest mattress manufacturers in the United Kingdom, to learn as much as he could from the then-83-year-old business. Burgess invited Schmidt to visit its fac-

tory in the Lancashire Hills of Rossendale for a week — an “incredibly gracious proposition” that allowed him to expand his depth and breadth of knowledge about the traditional art of mattress making, and helped him better conceptualize the framework for his homegrown green business.

“I don’t know any other mattress company that would’ve done that, and they were an open book,” says Schmidt about family-run Burgess, which is known for using the finest materials and its meticulous attention to detail, regardless of mattress price point.

The same can be said for Black Sheep, whose environmentally friendly mattresses are manufactured in Canada, at its workshop that’s convenientlyconnectedtoitssoutheastCalgaryshowroom. Made-to-order from responsibly sourced untreated wool, organic cotton and natural latex, mattresses come in three models: Suffolk, Devon and best-seller Oxford. Each can be customized in firmness, even creating a dual-profile bed for co-sleepers to enjoy.

Not only does Black Sheep avoid the use of synthetic materials, chemical flame retardants and glues that off-gas, it creates mattresses that are built to last for 20 years. Customers are welcome to tour the company’s workshop to see first-hand how its products are produced — from cutting and sewing to prepping, layering and tufting — and learn about their unique properties and functions, as well as check for quality.

“We offer a behind-the-scenes look to everyone who walks through our showroom door and almost all take us up on it,” says Schmidt proudly, as transparency is a cornerstone of his business mantra and, by extension, the premium mattress brand.

Six people are currently employed in the workshop that churns out, on average, 50 to 60 mattresses a month. This is nearly two-thirds of the company’s 10-person workforce that’s spread across two locations, the other being in Toronto.

Black Sheep Mattress’s Calgary showroom.

Opened in July 2023, in response to consumer demand, the streetfront Toronto showroom is nestled between two distinct yet trendy neighbourhoods in the downtown core — the refined elegance of Yorkville and the eclectic charm of the Annex. The 1,700-square-foot space offers a serene retreat from the city’s constant motion, with its clean lines and uncluttered presentation. Natural light filters through expansive windows, illuminating each piece and allowing it to command its deserved attention.

“The showroom is a physical manifestation of the company’s sleep philosophy that values quality over quantity, substance over excess,” says Schmidt.

In addition to mattresses upon which the company was founded, shoppers will find a curated selection of headboards, frames/foundations, toppers, bedding, blankets and pillows. The brand began to expand its line of products in 2020 — a natural evolution — and now even has options for kids and babies, not just adults.

THE STORY BEHIND THE NAME

Long before the Toronto store opening, Black Sheep was a single-location venture run entirely by Schmidt, who made, sold and delivered every mattress order. He specifically chose bricks-and-mortar over e-commerce — an audacious move given its higher overhead costs and limited local reach. While the brand now also has products for purchase online, something it has done since 2018, more than 90 per cent of sales are still made in-store.

Schmidt credits this to a combination of factors, including people’s preference to shop in-person and interact physically with merchandise, particularly after the pandemic, as well as the company’s personalized service and no-pressure selling style. Showroom staff are trained to provide customers with adequate time and space to explore all offered options, and, contrary to traditional sales tactics, shoppers are encouraged to come back as many times as needed to make a comfortable, confident decision.

Like any startup, the beginning was slow going for Black Sheep, with just a few mattresses sold each month. This was mainly by word-ofmouth marketing since there was no advertising budget and the showroom was well on the outskirts of Calgary, in an industrial area, making it a true go-to destination. (The company has since moved locations, having outgrown the initial space.) Schmidt says original aspirations weren’t grandiose; however, that’s not what he told family and friends-turned-investors.

“I may have used the words ‘the next Apple’,” laughs Schmidt, adding he’s grateful they were willing to take the risk on Black Sheep.

He’s also thankful for their help in brainstorming the brand’s name, which Schmidt settled on after, what else, a good night’s sleep.

“I love that it’s a bit whimsical,” he says. “It speaks to the large use of wool in our mattresses, and that we’re the black sheep of the industry, having disrupted it with our natural products.”

Black Sheep Mattress Co. founder Christian Schmidt.

The best-selling Oxford mattress is the company’s most robust and luxurious option. It’s composed of five layers of natural Talalay latex, covered in an organic and quilted wool case.

MORE THAN JUST A MANUFACTURER

Though known for its eco-friendly bedroom essentials, Black Sheep’s sustainability efforts go well beyond its line of offerings that also include upcycled products like wool dryer balls, decorative sheep and sheep toys for kids, made from materials leftover from the mattress building process. The company provides a recycling service with all local deliveries. Customers’ unwanted mattresses are hauled away at no charge and delivered to Re-Matt in Calgary, where they are broken down into raw materials and then repurposed for different uses, such as moving pads. (As of yet, no comparable option exists in Toronto.) The program sees more than 500 mattresses receive a second chance at a different life each year. Since 2016, Black Sheep has saved several thousands of mattresses from ending up in landfills.

The brand also works with Wearth, a third-generation family farm in Alberta, for its tree plant-

ing program. For every mattress ordered, a tree is planted with the local company to restore habitat. And to reduce its carbon footprint, Black Sheep has partnered with Bullfrog Power to offset energy consumption. Bullfrog applies green electricity from a blend of wind, solar and low-impact hydro power to the grid on the mattress brand’s behalf.

Black Sheep further supports a circular economy by donating mattresses to organizations like YW Calgary and the Jane Goodall Institute of Canada, contributing to fundraising initiatives for environmental conservation, and supplying excess cotton batting to local beekeepers for nests, beehive insulation and smoker fuel.

“We’re committed to sustainability from an ecological standpoint and by supporting other local businesses and organizations,” says Schmidt. “Think globally, act locally is woven into our fabric, both literally and figuratively.”

“The showroom is a physical manifestation of the company’s sleep philosophy that values quality over quantity, substance over excess.”

LEFT: Black Sheep Mattress’s Toronto showroom opened in 2023, on the corner of Davenport and Bedford roads. RIGHT: The Wooly is an extra thick mattress topper that features eight layers of plush natural wool batting in a 100 per cent organic cotton panelled cover, tufted together by hand.

Why Furniture Buyers Are Turning to IFD Group MEETING DEMAND ACROSS CANADA:

In today’s fast-paced retail landscape, furniture buyers across Canada are facing increasing pressure to deliver – and not just in aesthetics. Retailers are expected to offer consistent availability, quick restocking options, ethical sourcing, and a seamless supply chain. IFD Group, a leading manufacturer of solid wood furniture based in Mexico, is stepping up to meet those needs with a full-service model designed speciﬁcally for North American retailers.

With more than 25 years of experience, IFD Group has positioned itself as a trusted partner for Canadian furniture stores offering more than just products, but a fully integrated solution.

Strategic Distribution with Full Canadian Reach

One of IFD’s key differentiators is its distribution capability. With four strategically located warehouses in the United States, the

company can provide fast, reliable shipping to every region of Canada. From Vancouver to Halifax, retailers can reduce lead times and operate with greater agility.

Consistent Availability, Year-Round

Unlike many suppliers that operate on seasonal inventory, IFD maintains continuous availability of its top-selling collections. This allows furniture buyers to replenish stock without delays, optimize inventory turnover, and meet customer demand without compromise.

Design-Driven, Solid Wood Collections

IFD specializes in artisan-crafted, sustainable furniture made from solid reclaimed wood offering a unique blend of rustic and modern styles that resonate with the Canadian consumer. From

contemporary dining sets to timeless bedroom pieces, each collection is designed with durability, beauty, and market appeal in mind.

Marketing Support That Boosts Sell-Through

In addition to products, IFD offers a comprehensive suite of marketing tools to support retail success. Buyers gain access to a dedicated client portal that includes lifestyle imagery, product videos, technical speciﬁcations, and sales materials making it easier for retailers to promote collections both in-store and online.

Ethical & Sustainable Manufacturing

Sustainability is at the core of IFD’s philosophy. The company employs eco-conscious manufacturing practices, using reclaimed solid wood and ensuring fair labour standards across its operations. For Canadian retailers, this means being able to offer furniture that’s not only well-made, but also responsibly produced – a growing priority among today’s consumers.

A Trusted Partner for Growth

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

To learn more, visit ifdgroup.com

ENVIRONMENTAL AWARENESS

How to effectively communicate sustainability commitments

BY KEITH BARRY

SUSTAINABILITY IS NO LONGER JUST A buzzword. It’s a key driver of economic, social and environmental progress. For retailers, thinking about sustainability goes beyond rethinking the supply chain or instituting specific policies and programs. Brands need to be mindful of both how and when they’re communicating about their sustainability commitments and practices. The socio-economic context demands it: 2024 was one of the hottest years on record, there are geopolitical instabilities with the United States, and a growing mental health crisis has left Canadians faced with a seemingly perma-crisis.

What can be done to reverse this trajectory?

WHAT CONSUMERS WANT

Today’s consumers aren’t only asking government representatives for change. According to a report by global marketing communications agency Wun-

derman Thompson that unpacks emerging and future trends in sustainability, 86 per cent of people expect companies to play an important role in solving challenges like climate change and social injustice, and 70 per cent are prepared to make dramatic changes to their lifestyle if it will help tackle climate change. Above all, consumers want responsible products or services and they’re willing to pay a premium for them. In addition to this, the gap between consumer intention and action is narrowing despite inflation, and trends are showing that gap gets smaller for Gen Z and Gen Alpha.

With high consumer expectations, brands need to be more transparent than ever and proactive in communications. They can’t afford not to be.

But how does a brand talk to consumers when its sustainability practices may still be in development or not quite at the standard hoped for? And what if the brand is accused of greenwashing — making

Brands should highlight specific attributes of a product instead of just saying it is made from eco-friendly materials.

false or misleading statements about environmental practices — which comes not only with consumer backlash but with government fines?

Talking about sustainability as a brand has become increasingly complex and, ultimately, many brands are choosing to be silent rather than risk being criticized, an act now called ‘green hushing.’

While these fears are entirely understandable, remaining silent also has serious consequences. People need to see action to generate change. Communicating transparently tells consumers where the company stands, even if it isn’t leading the pack. In the absence of information, consumer perceptions can swing the other way and lead to a decline in trust.

So, where to start?

TAKING A STEP IN THE RIGHT DIRECTION

No company is perfect but when there is an initia-

tive that is a step in the right direction, it should be observed internally and externally. Sustainability is often a long and difficult road, so it can be extremely valuable to note key milestones along the way and bring customers along the journey.

There are three questions that brands should ask before talking about a business’ sustainability initiatives: What can we say? To what extent can we say it? How should we say it?

With these guideposts, any communications should meet consumers where they are while being brand-aligned. There are many precautions for each step.

STEP ONE: WHAT CAN WE SAY?

The starting point for avoiding greenwashing is to be aware of what the company is doing well and what it does less well at every stage of the value chain. Rely on the verified facts and then clarify what actions are being actively undertaken versus what’s intended in the future. Few companies have absolute control over their entire value chain, so instead of talking about a company’s impact with sweeping vague statements, communicate specific actions being taken in detail. For example, talk about the Oeko-Tex-certified organic cotton used in the product rather than labelling it as ‘eco-friendly’ material, or speak to the annual fundraiser you host that supports underprivileged youth and enabled 1,000 children to play recreational sports this year, rather than simply saying the company is socially responsible.

When reporting, make sure to back up any claims with recognized standards and bench-

science-based data like the Science Based Targets initiative (SBTi). When uncertain of the validity of existing practices, don’t hesitate to use external experts or independent auditors to ensure the credibility of claims. There are many organizations qualified to assess whether something is truly sustainable or greenwashing.

Before launching messaging, hold a meeting to imagine how things could go wrong. Assess the ways in which statements could be misinterpreted, criticized or questioned. Play the role of skeptical consumer, journalist and even competitor. Then try to pre-address concerns in the messaging and prepare Q&As so the team can give clear and rapid responses when asked.

STEP TWO: TO WHAT EXTENT CAN WE SAY IT?

Not all companies are at the same level of maturity when it comes to sustainability. The key is to ensure the weight of impact communication matches the significance of actions within the organization.

A non-scientific scale that presents the different approaches to sustainable practice simplifies the different levels of maturity. On one end of the scale are convenience strategies, which are unique initiatives and one-off projects often in response to an emergency or the market. At this level, there is minimal integration of sustainability into the business model. On the other end of the spectrum are zero impact companies — ones wherein sustainable impact is treated as part of the business strategy, and environmental, social and governance factors are completely integrated into the business model. Knowing where a business stands on this scale

“Make sure to back up any claims with recognized standards and benchmarks to build consumer confidence.”

about the extent of communications is to make sure it’s proportional to the importance of actions within the organization. If the initiative only represents one per cent of its impact, it’s not justifiable to make it 80 per cent of the messaging. On the flipside, if a company intends to be a thought leader in its market for sustainability efforts, it should be a significant part of the business model and well-integrated in its value chain.

STEP THREE: HOW SHOULD WE SAY IT?

Beyond the messaging itself, retailers need to take into account production and distribution of those messages. This is part of the principles of responsible design, which goes beyond thinking about traditional design and communication best practices to also consider the environmental, social and economic impacts. For example, if a business typically relies on print materials for communicating with employees on a warehouse floor, consider methods to reduce the amount of paper waste like creating summary memos of messaging with a QR code linking to the intranet for more details.

While the gut reaction to being green is to cut back on paper and turn to digital, even websites have a carbon footprint. If a business has an e-commerce platform and is adding an impact report or blog section, make sure they aren’t designed or hosted in a way that results in higher emissions. Today, there are many website carbon calculators that businesses can use to check their emissions. Retailers should also evaluate whether a website has accessibility features, such as dark mode and compatibility with text-to-speech readers, to ensure all consumers are able to access the messages. The best communications combine both performance and responsibility.

MAKING COMMUNICATIONS MORE IMPACTFUL

In the end, effective sustainability communication can drive significant change, both in the world and in customers’ perceptions. When done right, it will give consumers the confidence that a brand aligns with their values and demonstrate the retailer’s sincere commitments. All citizens have the power to vote with their wallets and businesses have a duty to make that vote sustainable for our world.

Keith Barry is a partner and vice-president of strategy at LG2, the largest independent creative agency in Canada. Trained in industrial design, Keith has always taken a unique, user-centric approach to solving business problems and building brands. His insightful approach has helped him connect people to brands to drive business for more than 20 years at top-tier agencies in Canada and the United States. Keith can be reached at keith.barry@lg2.com.

Consumers want responsible products or services and they’re willing to pay a premium for them, particularly younger generations.

To promote your products, service and for general business inquiries, please contact Kris McFadden at 416-512-8186 ext. 240, 416-979-8929 or krism@mediaedge.ca.

BRIDGING THE SUSTAINABILITY GAP

A more circular approach to upholstered furniture design makes for better

recycling after use BY ÉRIC

ALLARD & NICOLAS PEARSON

FOR MOST MUNICIPALITIES, USED UPHOLSTERED furniture is treated as bulky waste. In other words, it is considered non-industrial waste that cannot be accepted during regular garbage collection due to its size or weight. While many municipalities have second-hand furniture stores, almost all bulky upholstered items, such as sofas and mattresses, are rejected and end up in landfills.

Concerned about this issue, Inovem, an innovation centre specializing in the secondary wood sector, took part in a project aimed at analyzing possible recovery solutions for upholstered furniture. The analysis was based on observations and data regarding the reuse potential of certain second-hand furniture items in good condition, as well as the dismantling of 400 pieces collected during large item pickups in various municipalities. From these observations and data, Inovem analyzed the main barriers to the recovery of furniture and their components.

The first and most attractive solution is, of course, the reuse of the furniture for its original purpose. However, implementing this solution is not so simple. First, there’s the logistical aspect. Municipalities rarely have dedicated spaces for sorting and storage where people can drop off used furniture. As a result, these items are usually left outside next to a dumpster or on the curb — exposed to the elements. Further, bulk waste collection services are not equipped to identify items with high reuse potential among the many they collect. And let’s not forget these items are large and heavy, making them difficult to handle.

Another major concern is hygiene. People are often reluctant to buy used upholstered furniture not knowing where it came from or whether it is truly clean or disinfected. In some cases, a deep cleaning may be enough to make a used item usable again, provided it has no structural damage, tears in the fabric and sagging foam.

This opens the door to the services of upholstery artisans, who can repair, replace foam or even change the covering fabric. Unfortunately, this profession is becoming increasingly rare, as restoring an upholstered item to a respectable state often costs more than buying a new one. Many people underestimate the amount of work that goes into

restoring furniture. For years now, consumer behaviour has leaned more toward replacement than repair.

Since reuse is not a viable solution to divert a significant volume of furniture from landfills, the second option is dismantling. The aim of dismantling is to recover components for their original use or as raw materials. However, this task is more complex than it seems. Dismantling upholstered furniture can only be done manually and is difficult to automate. The process is not only complex but also poses a high risk of injury to hands and backs. And once again, there’s the hygiene issue; furniture often accumulates dust and microbes. Even with gloves, people are reluctant to do this task.

Additionally, upholstered furniture is composed of many different materials: fabric, leather, metal, foam, wood, fibreboard, plastic, rubber, cardboard and sometimes even electric wires — all held together with various fasteners and hardware. This results in a wide range of materials to manage, many of which have little to no value in terms of recovery. While metal has some recycling potential, most of the other materials lack viable recycling options, especially when contaminated. Moreover, modern upholstery techniques often involve stapling and gluing foam, fabric and leather together, making it nearly impossible to separate them without damage. Once again, the covering materials and foams are often dirty or degraded, reducing their potential for a second life to almost zero.

Analysis showed the poor condition of a used piece of furniture is mainly due to the state of its padding. The frames and metal mechanisms are almost always in excellent condition. The mechanism is the easiest component to dismantle; however, there’s no standard design. Each manufacturer uses their own model, making reuse impractical. As for the frames, they are mostly made of wood or plywood, but the parts are heavily screwed, stapled and glued together. Trying to separate them often results in breakage. In many cases, shredding the furniture is more cost-effective but even then, the effort required to reach the ‘bare’ frame is enormous. Some sorting centres avoid shredding upholstered furniture altogether because the fabric tends to wrap

Furniture manufacturers should rethink the design of their products, as well as materials used, to make it easier to recover components for a second life.

around the hammers and cause long strips to jam the machinery, leading to frequent shutdowns. Given this, without partial dismantling, the furniture is destined to be completely buried with no recovery.

So, what solutions remain to reduce the massive volume of used upholstered furniture that ends up in landfills every year in Canada?

Findings reveal this is a multifaceted problem that will require a combination of actions. Some governments have begun implementing legislative measures to start addressing the issue. In Europe, for example, certain countries are introducing Extended Producer Responsibility (EPR) programs. EPR is a principle where companies that place products on the market are responsible for managing their end-of-life. In some cases, the idea of a deposit-refund system is also being considered to provide operational funding. Munici-

palities also have a role to play by adapting their bulky waste management systems to create favourable conditions for recovery.

But first and foremost, manufacturers and suppliers must mobilize and rethink design of their products, as well as materials used, to reduce the problem at its source.

How can upholstered furniture be designed differently to make it easier to recover components for a second life?

If recovery of upholstered furniture or their components is currently impossible, it is due to the way they are made. It is up to the furniture industry to develop solutions which, while not simple, are not science fiction either. Clearly, the current situation cannot go on much longer. Without the involvement and goodwill of all stakeholders, meaningful change will remain a major challenge.

Éric Allard is a research teacher and Nicolas Pearson a senior technology advisor at Inovem. Inovem, an innovation centre dedicated to wood and related materials, is a college technology transfer centre affiliated with Victoriaville College in Quebec. The centre’s mission is to stimulate innovation and development within companies operating in the second and third wood transformation sectors. Éric and Nicolas can be reached at 819-758-6401 or allard.eric@cegepvicto.ca and pearson.nicolas@cegepvicto.ca, respectively.

A Worthwhile Warranty

Furniture protection plans provide consumers with peace of mind while maximizing your store’s profit potential

BY DAN MILLER

AS A HOME GOODS RETAILER,

YOU’RE ALWAYS looking for ways to increase sales, enhance customer satisfaction and differentiate your store from the competition.

But what if you were told that one of the most profitable upgrades for your business doesn’t require additional showroom space, a major store redesign or costly renovations?

The answer lies in offering a robust furniture protection plan — a proven strategy that helps retailers boost profits while providing customers with longterm peace of mind.

THE POWER OF PROTECTION

Much like revamping a store layout to improve traffic flow or updating product displays to increase engagement, adding or optimizing a protection plan program is a high-impact business move. With 60 to 80 per cent margins, furniture protection plans aren’t just another upsell — they’re a reliable revenue stream that helps you grow profits without the added cost of increasing inventory or showroom space.

Think of it this way. Customers are already investing in quality furniture for their homes. When positioned correctly, a protection plan reinforces their decision and provides security against life’s unexpected accidents. If a customer knows they can repair or replace their sofa, mattress or dining set due to spills, stains or structural issues, they’re more likely to finalize their purchase confidently, increasing your store’s revenue in the process.

HOW TO MAXIMIZE PLAN SALES

Retailers who succeed with protection plans don’t treat them as an afterthought. Instead, they integrate them into their core sales strategy, ensuring they become a natural part of the customer conversation.

Here are proven methods to enhance protection plan sales, based on insights from top-performing furniture stores.

1Structure commissions to incentivize sales. A well-designed commission structure motivates your team and ensures buy-in at every level. Consider a tiered incentive model that rewards salespeople based on their protection plan sales percentage: three per cent of total sales equals 15 per cent commission, four per

cent garners 20 per cent, five per cent gets 25 per cent, and six per cent or more receives 30 per cent. When your sales associates see the financial impact of selling protection plans — whether it’s paying their mortgage, covering a car payment or saving for a dream vacation — they’ll be more engaged in positioning them effectively.

Prioritize sales training and product knowledge. Much like training sales staff to understand materials, craftsmanship and design trends, they need to be equally fluent in protection plan benefits. Top retailers offer ongoing training for both new hires and experienced associates, and refresher sessions for underperforming salespeople and role-playing exercises to refine sales techniques. When employees understand not just how to sell protection plans but why they matter to customers, their success rate increases significantly.

Make protection plans a daily sales focus. The most successful retailers treat protection plans as a fundamental part of their sales process rather than an add-on. Key practices include incorporating protection plans in daily sales meetings (review successes, discuss customer objections and celebrate top performers); ranking and posting sales numbers in a visible area to create friendly competition; ensuring sales associates mention protection plans in every quote so customers see them as part of the overall investment; and educating customers on real-life scenarios (for example, if your child spills juice on this sofa, our plan ensures it gets professionally cleaned or replaced). By consistently reinforcing the value of protection plans, you normalize them as an expected part of the furniture-buying process.

Use visuals and in-store marketing to reinforce value. Just as strategic store design and product placement enhance sales, visual reinforcement of protection plans can drive engagement. Consider dedicated signage near high-ticket items explaining protection benefits, marketing materials at checkout and on your website that highlight cov-

erage details, and digital screens or QR codes linking to customer testimonials and success stories. When customers see and hear real-life examples of protection plans in action, they’re more likely to view them as an essential part of their purchase.

Implement a ‘customer declined protection’ policy. Another powerful strategy is to add a ‘customer declined protection’ line on invoices like, “Furniture is not covered for accidental damage, stains or structural issues.” This subtle tactic encourages customers to reconsider their decision, as it signals the store actively recommends protection. No one wants to feel like they’ve missed out on something valuable. This simple change can result in higher protection plan conversions.

Offer a ‘don’t use it, don’t lose it’ program. To further incentivize customers, many retailers implement a ‘don’t use it, don’t lose it’ policy. This means if a customer doesn’t file a claim within the plan’s duration, they can apply a portion of the protection cost as store credit toward a future purchase. This method reduces objections while keeping customers engaged with your store for years to come.

A SMART BUSINESS MOVE

By treating protection plans as a high-value, profit-generating category, furniture retailers can significantly increase revenue.

In order to prioritize protection plans, you need to understand their potential in your business, know the best plan options for your store and customer base, implement smart pricing strategies to maximize profitability, pay your sales associates a competitive commission, and prioritize protection plans as a top three revenue driver alongside furniture and bedding.

Successful home goods retailers aren’t just selling furniture; they’re selling security, peace of mind and long-term value. With protection plans, you can strengthen customer confidence, increase revenue without adding overhead costs and provide unmatched service that keeps shoppers coming back.

Dan Miller is a regional sales manager at Guardsman. For more than 100 years, Guardsman has been a leader in furniture protection, care and repair. The company’s protection plans cover wood, fabric, leather and bedding products, as well as appliances, jewelry, electronics and sporting goods.

THE CONVERSION PATHWAY

How to turn store visitors into paying customers amidst shifting consumer behaviour, economic uncertainty

BY MARK RYSKI

MANY HOME GOODS STORES FEATURE well-curatedassortments,thoughtfullymerchandised displays and helpful staff. What is often missing, however, is a clear understanding of how many shoppers enter the store each day or how many leave without making a purchase. That is a missed opportunity.

DEBUNKING THE MYTH

The notion that more shoppers always lead to more sales is a common misconception. While it may hold true in some cases, data consistently shows higher

traffic does not guarantee stronger sales outcomes. In fact, some retailers experience increased traffic alongside declining sales, while others grow sales even as traffic declines. This disconnect isn’t anecdotal — it’s mathematical: store traffic multiplied by conversion rate multiplied by average sale equals sales. Retail performance depends not just on traffic but on how effectively that traffic is converted. Focusing solely on sales outcomes, without measuring the other two variables, means operating without visibility into what’s actually driving performance.

WHY THIS MATTERS MORE THAN EVER

The Covid pandemic forced retailers to reckon with the fragility of store traffic. For retailers with physical stores, it marked a turning point. Services like click-and-collect, curbside pickup and expanded e-commerce redefined the meaning and value of a store visit.

Store visits have since rebounded, particularly in categories where tactile engagement, visual merchandising and in-person consultation matter — hallmarks of the home goods sector. The critical

question now is not whether traffic has returned, but how effectively each visit is being leveraged.

THE HIDDEN GAP

Retailers frequently report strong traffic but flat or declining sales. The reason is often a subpar conversionrate — thepercentageofshopperswhocomplete a purchase.

A real-world example illustrates the impact. One store recorded a 10 per cent year-over-year decline in traffic. However, by improving its conversion rate from 25 to 30 per cent, overall sales increased by eight per cent. Another store saw a 10 per cent increase in traffic but experienced a 20 per cent drop in conversion, resulting in a 12 per cent sales decline.

Conversion rate is the differentiator. It is the performance variable that reveals whether store traffic is being monetized or wasted.

THE SALE YOU ALMOST MADE

Despite its significance, many retailers do not track in-store conversion rates. Those that do often review them only at a daily or weekly level, missing key hourly patterns when conversion performance lags. All stores have peaks and lulls, but every hour matters. Unconverted traffic during slower periods represents a silent drain on sales potential.

STEPS TO STOP WASTING STORE TRAFFIC

Retailers do not need elaborate analytics systems to make meaningful progress. Five foundational practices can significantly improve results: tracking store traffic; measuring conversion hourly; focusing on controllable variables; observing and asking; and coaching the team on conversion behaviour.

Accurate, consistent store traffic measurement is essential. Without it, there is no visibility into opportunity or performance. Affordable, high-accuracy traffic counting systems are widely available, even for small or mid-sized retailers.

Data science skills are not required. What matters is the commitment to measuring store traffic — the most basic and important input in the retail sales formula.

Daily conversion summaries can obscure when sales are being lost. Hourly traffic and conversion metrics help pinpoint underperformance during quieter times of the day — periods often overlooked by store teams.

In stores with very low traffic (fewer than 30

daily visits), daily aggregation may be more appropriate. However, in most cases, hourly tracking offers the granularity required to take effective action.

Manyconversionbarriersarefullywithinaretailer’s control. Common culprits include poor merchandising, stock-outs and insufficient or disengaged staff during key selling hours. Store teams play a pivotal role. How associates engage with shoppers can determine whether a visit results in a sale or missed opportunity.

Conversion barriers often reveal themselves through observation or simple inquiry. Non-buyers, in particular, provide valuable feedback. Exit surveys that ask questions like, “Did you find what you were looking for today?”, can uncover friction points in the store experience that would otherwise go unnoticed.

Conversionisnotjustametric—itisabehavioural outcome. Store teams should be coached to treat each visitor as a potential buyer and be recognized for improving conversion performance, not just sales volume.

Measuring and celebrating conversion improvement builds a culture focused on delivering results through better engagement, not just more store traffic.

THE GIFT THAT KEEPS GIVING

Retailers often chase incremental traffic while overlooking the value of the traffic already walking through the door. This is like pouring water into a leaky bucket.

Every store visit carries cost — marketing to attract the customer, labour to serve them. But each visit also represents potential. In the home goods sector, where purchases are highly personal and often emotional, that potential is significant.

Whether operating a single boutique or national chain, the principle is the same: the foundation of better retail performance begins with understanding and optimizing store traffic and shopper conversion.

Marketing spend will always play a role. But the fastest, most cost-effective way to grow store sales is by converting more of the traffic that is already showing up.

Every store visit is an opportunity. The retailers that recognize this — and act on it — will outperform those that don’t.

Mark Ryski is the founder and CEO of HeadCount, a recognized authority on store traffic and shopper conversion analytics, and a three-time author. Mark was named a top retail expert for 2025 by ReThink Retail, and has been a featured industry commentator on RetailWire.com for seven years. Mark can be reached at mark.ryski@headcount.com.

“Some retailers experience increased traffic alongside declining sales, while others grow sales even as traffic declines.”

THE CHAOS ADVANTAGE

Why embracing change during tumultuous times misses the point and overcoming fear is actually the cornerstone of success BY

DOUG STEPHENS

IT HAS BECOME A BUSINESS CLICHÉ TO SAY ‘the only constant is change.’

Since the turn of this century, the world has been rocked by relentless waves of disruption, each one faster, more volatile and far-reaching than the last. Today, the global business environment is convulsing with geopolitical instability and the erosion of democratic norms; deepening social, political and economic divisions; environmental crises and escalating natural disasters; trade wars that threaten long-standing alliances; and an artificial intelligence revolution that’s set to upend life, work and education, with no guarantee the outcomes will be positive. In a word, chaos.

And yet, as history has shown, chaos creates divergence. Some companies will turn this turmoil into a powerful competitive advantage. Others will

collapse under its weight. The deciding factor is neither size, resources nor talent (although those matter). Nor is it how often a company promotes the mantra of ‘embracing change.’ If only it were that simple.

In fact, research suggests the difference between the winners and losers often comes down to one unexpected factor — their ability to overcome fear.

FEAR IS THE REAL ENEMY

Organizations that succeed in chaotic times aren’t immune to disruption — they’re just better at confronting fear. By doing so, they gain the clarity to more deeply understand their customers while their competitors remain stuck in survival mode.

Fear, after all, is hardwired into us for good reason. A little fear is motivating. It sharpens focus

and readies us for danger. But sustained fear turns into dread and that’s toxic. It erodes creativity, trust and decision-making. It paralyzes organizations.

Multiply that fear across an entire company and things begin to break down. Risk aversion dominates. Innovation dies. People stop collaborating. Teams turn inward. Self-preservation replaces customer focus. The company loses sight of the market and often itself. At that point, either the chaos ends or the company does.

LEADING INTO THE FOG

A former boss of mine once said, “Great leaders are the ones with the courage to lead their people into the fog of an uncertain future.”

That insight feels more urgent than ever. In times like these, the role of leadership is existential. Leaders who respond with inconsistent messaging, panic or rigid control only amplify fear. In contrast, those who convert chaos into a competitive edge lead with calm, clarity and curiosity.

Courageous leaders consistently do four things: name the threat, reframe the chaos, create psychological safety and focus outward.

Address fears openly, whether they stem from market volatility, economic uncertainty or technological disruption. Like any illness, fear loses power once it’s diagnosed.

Position change not as a threat, but as an opportunity. Show teams what’s possible and why it matters to them. Turn the challenge into a noble quest.

Allow people to speak freely, take risks and fail productively. Before asking anyone to walk a tightrope, show them the safety net beneath. Fear narrows perspective whereas safety expands it. The more secure your organization feels, the more clearly it can see unmet customer needs and the gaps your competitors miss.

Once fear is disarmed internally, the focus can shift.

What are your customers afraid of right now? What do they need that you — and your competitors — aren’t providing? How can you be a source of stability, confidence or hope?

Thriving in chaos isn’t about embracing change, it’s about conquering fear. When fear is in charge, the future feels like something that happens to you. But once fear is disarmed, the future becomes something that happens because of you.

The question isn’t whether chaos will continue. Rather, it’s will you have the courage to lead into it?

CASE STUDIES IN COURAGE

Fighting Tariffs with Bravery

When tariffs disrupted global retail, many brands passed the costs on to customers with apologies. Keen did the opposite. The footwear company promised not to raise prices and instead invested in new domestic manufacturing to avoid tariffs altogether.

The result?

Headlines, customer loyalty and millions in earned media value. Keen didn’t just absorb change; it converted it into momentum.

Tackling Inequality from Within

Few issues are as corrosive to society as wealth inequality. But only a paltry number of companies have the courage to address their role in it. Dr. Bronner’s, the familyowned soap maker, does. The company has capped executive pay at five times the lowest-paid worker, offers 100 per cent employee benefits and share profits broadly. Dr. Bronner’s model proves ethical capitalism can also be productive capitalism.

Ditching Social Media, Defying Convention

There’s no shortage of research pointing to the corrosive effect social media is having on social discourse and mental health, particularly among young people. Despite this, businesses have continued to pour billions of dollars into social media advertising. But in 2021, while most brands clung to social media for fear of being forgotten, luxury fashion brand Bottega Veneta walked away from it entirely.

The outcome?

Skyrocketing sales and word of mouth momentum, disproving the myth that visibility depends on digital noise. Bottega Veneta didn’t just reject the fear of irrelevance; the brand redefined relevance itself.

Doug Stephens is the founder and CEO of Retail Prophet, and widely regarded as one of the world’s foremost retail industry futurists. He is an international best-selling author of three books on the future of retail, including his most recent, Resurrecting Retail: The Future of Business in a Post-Pandemic World.

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Mastering Inventory Control

Sure-fire stock management strategies to improve profitability, customer satisfaction and overall operational efficiency

BY DAN JABLONS

RETAIL STORE OWNERS SAY THEY LOVE interacting with customers, talking about their products and seeing shoppers excited about a purchase. But working retail is not all fun. One of the hardest tasks that retailers face is inventory control. A great deal of time, effort and money is dedicated to ensuring the appropriate amount of stocks are maintained. But despite all this, it still seems to be an ongoing struggle.

WHY INVENTORY CONTROL MATTERS

Inventory is your biggest asset and largest expense. You spend more on inventory than anything else — more than rent, payroll, technology or marketing. Manicuring and curating your assortment is the most important job. Having the right inventory in the right place at the right time is the best way to guarantee profits in the short-term. It also ensures success in the long-term, as customers will believe in your store and come back again and again. This means you need to know what inventory you have, how long it has been there and what you’re planning to do to sell it. You must have an accurate, dependable inventory that you can work with, that entices customers and ensures your future.

If inventory is overstated, that means you might think you have goods to sell when you really don’t. If it’s understated, then you can’t make your predicted sales because the goods aren’t there. Both of these situations can occur simultaneously, across several departments, and either can cost you sales and profits.

ERRORS AND HOW TO FIX THEM

There are lots of places where inventory control gets out of whack.

1Setup. One of the biggest causes of incorrect inventory is your point-of-sale (POS) system was not set up correctly. Review your department/class/ subclass (DCS) structure. If there are not clear lines of delineation, it needs to be revised, as an item should never go in more than one DCS.

The same is true for individual fields in your POS system. Each one should have a specific purpose and that line should not be crossed. Perhaps one

If inventory is overstated, that means you might think you have goods to sell when you really don’t. If understated, then you can’t make your predicted sales because the goods aren’t there.

description field is for the vendor’s style number and another is for the product’s description itself. Adhere to those rules so there are no surprises. Make sure you are consistent with how you enter information in data fields. For example, take the colour black. It can be abbreviated many ways — blk, blc, bla, bl, blac, blck, blak, and so on. If not consistent in how the colour is entered, you can’t search for or report on it, and you could have duplicate entries. It’s often best to use the first few letters of the colour or create a table of entries and stick to it.

Purchasing/receiving. When entering purchase orders (POs), do you look before adding new items?

Duplication of existing items is a big cause of inventories going wrong.

Do you have enough information to write the PO? Do you know everything to properly add the items to your system?

This goes beyond descriptive information to include the correct cost and retail price.

Some retailers say they don’t enter POs because they don’t have the data until the goods arrive. But that’s nonsense. Vendors have it and they give that data to people who ask. In today’s e-commerce world, you should also obtain UPC codes from vendors.

Many errors can occur when doing returns to vendor. While getting the return to vendor, or RTV, is important, make sure to enter it properly so goods are out of your system.

3 Selling. This is probably the biggest cause of inventory errors. Sometimes barcodes don’t scan properly and when that occurs, staff tend to improvise. Make sure they know how to look up items quickly so that if a barcode isn’t working or the tag is missing, the right item can be rung up. If the wrong barcode data is inputted, it will mess up your available inventory, and create incorrect sales and inventory reports.

Another mishap that has consequences is when staff scan the UPC code in either the quantity or price field. To fix this, they add a discount. This also

screws up your inventory and creates incorrect markdown reporting. (This is crucial to properly evaluate vendor, store and buyer performance.) Have your POS vendor change the sequence of the fields so this is unlikely to happen. If it does, staff should be trained to inform you immediately, so the proper corrections can be made.

Many systems have ‘junk’ or ‘jackpot’ items, which are generic items that are typically created when you first go on a system to ring up products that have not been entered yet. Lots of times these generic items are continually used by staff when they don’t have a ticket. Every time this happens, you create inaccurate inventory. Either remove the generic item or run reports on it to figure out why it’s happening.

Other inventory movements. If a multistore operation, you know inter-store transfers

are difficult to handle. Even gigantic operations have this issue. Every time a store transfer occurs, the amount moved from the source location should match that received at the destination. This can be managed using your POS system, so it’s worth spending time learning how to. Inter-store transfers are also a big area of theft. Protect yourself and your inventory by establishing excellent management processes and policies.

Another area of concern is inventory depletion. If items are taken out of stock for a demonstration, charitable donation or any other reason unrelated to a sale, this should be documented as an inventory adjustment. Do not input a $0 sale, as this will muddle your margins and create incorrect quantity sales.

NO SYSTEM IS PERFECT

Even when you improve your inventory management, things can still go wrong.

Since you can’t be everywhere at all times, you need to put trust in your staff. Specifically, someone should be in charge of your POS system. The job of this ‘system administrator’ is to ensure the accuracy of the inventory.

Running regular reports is a good way to ensure operations are happening correctly. This goes beyond sales reports to include those that look at receiving, negative inventory and adjustments/ transfers. Investigate all oddities to identify and rectify their causes.

Most retailers do at least one physical inventory count per year, usually because their accountant requires it. If your inventory is off by more than one per cent, you need to find out why. Generally, it’s a result of managerial processes that are not properly executed. To get back on track, start conducting cycle counts, which are physical inventories of just a portion of your inventory, such as a department or vendor. Cycle counts are a good way to keep your inventory accurate throughout the year. They also keep staff on their toes and can prevent theft.

THE PAY OFF

Effectively managing inventory is a lot of work but it’s well worth it. You won’t miss sales because you have the right inventory in the right places. You will identify bad inventory and clear it, freeing up cash for good inventory. You will reduce loss through shrinkage. You will be able to better measure your inventory’s performance and work more closely with vendors to get the best goods at the best time. And you will be better able to plan your inventory and increase sales, your market share and profits.

Dan Jablons is president of Retail Smart Guys, a provider of consulting services to specialty retail stores. Dan brings many years of retail experience to any size store to improve their operations, revitalize their marketing and maximize their profits. He can be reached at 818-720-2585 or dan@retailsmartguys.com.

An inventory report is an organized summary of how much inventory you have at a given time. It helps you keep products in stock, cash flow healthy and customers happy.

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After six months utilizing MediaEdge’s social media program, we have generated sales leads and received a signiﬁcant amount of exposure across ﬁve platforms.”

R.W. (Bob) Storey, P.Eng., MBA General Manager - Sto Canada Ltd.

Repair Aware

How to tackle trouble spots that are hindering your business growth BY

DONALD COOPER

WHATEVER YOU SELL, YOU MUST CONSTANTLY work to improve every part of your business or you’ll fall further behind until you become irrelevant and fade away. Here are four steps to fix what needs fixing in any business.

IMPROVE AWARENESS

Awareness is simply knowing that some part of your business isn’t right. You’re not yet where you want or need to be in order to be a profitable market leader, achieve world-class operating efficiency or become your future vision.

Perhaps some of your products or services aren’t the best or you’re falling short in delivering the customer experience you’ve promised. Maybe you haven’t created the internal business culture required to attract, engage and keep first-rate people. Possibly you’re falling short in planning and budgeting, control, accountability, profitability or implementation and follow-up. Your shortfall could be in technology, systems or communication. It could be that you’ve not met your commitments to your community or the environment, or that there are non-performing or toxic employees you haven’t dealt with.

The beginning of wisdom is the recognition of reality. Without awareness, there will be no improvement. But awareness alone will get you nowhere.

TAKE OWNERSHIP

Many business owners and managers refuse to take ownership of their problems. They blame somethingorsomeoneelse—acompetitor,supplier,government, the weather or another country. For example, if you’re having a problem attracting and retaining top performers, blame may go to the lack of good people to hire; however, the truth is the best people have to work for somebody and they’ve chosen another company.

Other businesses know where they’re falling short and it’s their fault, but lack the ability, energy, urgency or passion to fix it. They’re over their heads, burnt out or just don’t care.

You’ll never solve a problem unless you first take ownership and are committed to fixing it.

ANALYSIS, CREATIVITY, DECISION AND ACTION

Here’s where the real work begins. If it’s a problem

you’re solving, get to the real root cause. Don’t just attack surface issues. If it’s an opportunity you’re pursuing, make sure you have all important facts. Either way, if your analysis is incorrect, your action will likely be wrong, too. Same goes for the intended outcome.

Encourage creativity within your organization and know when to ‘rent’ creativity from the outside. Ask your team, suppliers and customers for ideas. In doing so, you’ll learn from and honour them.

Don’t try to reinvent the wheel. Find out what other successful businesses are doing about the problem or opportunity you’re working on and then try to do it better.

What ideas, when implemented, would blow customers away, clearly differentiate you from your competitors or deliver a big operational advantage that will transform your bottom line? And what are the costs and benefits of each idea?

Be sure not to analyze and create forever. Commit to a course of action in a reasonable time frame. There’s more money lost through indecision than wrong decision.

Finally, commit to an action plan that clearly states what will be done, by whom, by when, at what cost, with what outcomes, and how results will be measured and rewarded. Involve all those whose support you need or who are affected by the implementation process. Make sure they understand why this project is important to the business and to them. Determinewhatadditionalinformationorresources your team will need to be successful and make sure they get it.

IMPLEMENTATION AND FOLLOW-UP

Businesses don’t die from a single shot to the head. They perish, slowly but surely, from a thousand uncompleted tasks.

Effective implementation is one of the biggest challenges in most businesses today. The solution: Every time you assign a task to someone or a team, agree on a specific date by which it will be completed or when an update must be provided. Document that commitment and always follow-up. Then, hold people accountable, celebrate success, reward accomplishments and deal firmly but fairly with non-performance.

Donald Cooper has been both a world-class manufacturer and an award-winning retailer. Now a Torontobased 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 longterm profitability. Donald can be reached at donald@donaldcooper.com.

“Find out what other successful businesses are doing about the problem or opportunity you’re working on and then try to do it better.”

WORKING IN SILOS

Why isolation cripples organizations and how to fix it

BY BOB PHIBBS

SEVERAL RETAILERS MISSED EARNINGS IN the first quarter of 2025. If you walked into a store, there’s a high probability some empty shelves were staring back at customers. And this is still the case.

Three retail industry veterans addressed existing retail operations at Manhattan Associates’ Momentum 2025 conference in May.

Their one-word reactions to the current state of the supply chain?

Agile. Frightened. Excited.

That range tells you everything about where the industry stands — some retailers are adapting fast, others are drowning and a few are actually thriving in the chaos.

THE PROBLEM IS NOT WHAT YOU THINK

Shoppers don’t care what broke down. They don’t want to hear about supplier issues, transportation delays or system failures. They just want products on shelves when they shop. Miss that basic promise and they’ll find someone who won’t.

The problem is not that your people aren’t working hard. It’s that different parts of your organization operate like separate companies.

“Supply chain planning and execution is like a dance,” says Ryan Gifford from supply chain software provider Manhattan Associates. “They’re both trying to achieve similar goals but they’re going about it in different ways because the responsibili-

ties lie in different spaces. If they’re not moving in a coordinated effort like a dance, then you’re going to end up with results that are probably disjointed and disconnected.”

WHEN SYSTEMS DON’T TALK, SALES WALK

Here’s what happens in most retail operations. Your buying team creates forecasts in one system. Your warehouse team builds labour plans for another. Transportation works from different data entirely. Marketing launches campaigns without checking if there’s enough inventory to support demand.

Supply chain industry expert Miles Tedder puts it bluntly, “When you make a plan, the one thing that’s guaranteed is it’s going to change almost immediately.”

Yet, most retailers still operate like it is 1975. They batch process everything overnight, hope systems sync up and pray nothing breaks. When something does go wrong — a supplier has capacity issues, tariffs change overnight or demand spikes unexpectedly — teams scramble with phone calls and spreadsheets to figure out what happened.

“As supply chain management professionals, we have to figure out how to make consistency and standardization out of chaos,” says Tedder. “Every day we have so many opportunities to disappoint our customers.”

THE HIDDEN COST OF DISCONNECTION

Independent advisor Bart de Muynck has watched this problem compound.

“Years ago, if something went wrong, we were stuck with that,” he says. “Because we set the plan, the plan’s in stone and we don’t react based on realtime data and execution.”

Think about what this means for your business. A shipment gets delayed. In the ‘old world,’ that delay cascades through your entire operation without anyone having visibility to react. Stores run out of inventory. Customers leave empty-handed. Sales teams wonder why their conversion rates have dropped. Marketing campaigns run against out-ofstock products.

The financial impact goes beyond lost sales. You’re paying for expedited shipping to fix stockouts, overtime labour when teams scramble to respond, emergency inventory purchases at higher prices and customer acquisition costs to replace frustrated shoppers who went elsewhere.

WHAT CHANGES WHEN EVERYTHING CONNECTS

Some retailers have figured this out. They’ve moved beyond the spreadsheet and phone call approach to

something that actually works in real time.

“We’ve gotten to where we’re able to notify our stores when a shipment leaves a distribution centre,” says Tedder. “Give them a link to track it and let them watch the truck as it comes to their store. We’re primarily a multi-stop truckload, so they can see when it goes to the first stop, second stop, and we give them updates.”

But it goes further than tracking.

“We’re pretty close to being at the point that when we geofence it, and they get within 10 to 15 minutes from the store, we also ping or call the store and let them know the truck’s coming so be at the back door to meet it.”

This isn’t about showing off technology. It’s about operational excellence that directly impacts your bottom line.

REAL-TIME DECISIONS, REAL BUSINESS IMPACT

The game-changer isn’t just visibility — it’s the ability to act on information immediately.

“We used to have floor-level practitioners making decisions about what’s going on a truck versus us being able to leverage data,” says Gifford. “Now we have the ability to allow the system to go in and say, ‘Here are the orders we need to update, here’s why.’ And then you can take action. We don’t have to be a day behind, hours behind.”

When tariffs hit unexpectedly in April, some retailers could react in real time. Ships already at the port got redirected. Shipments got rerouted to differ-

If a product is out of stock, the shopper will often leave without buying a substitute and go somewhere else to find what they want.

Shipping delays can have a ripple effect, resulting in lost sales and revenue, higher expenses and problems with inventory.

“As supply chain management professionals, we have to figure out how to make consistency and standardization out of chaos.”

ent warehouses. The retailers with connected systems have adapted. Those still running on overnight batch processes got stuck with expensive mistakes.

PROCESSES THAT SHOULD BECOME OBSOLETE

Experts are clear on what needs to change immediately.

“Excel,” says Gifford without hesitation. “It serves a great purpose. It’s a very good supplemental tool but it’s not going to generate a true forecast, logistics or labourplanforyou.Commerceismovingtooquickly to rely on Excel to help you reach the next level.”

Tedder agrees, adding, “I would like to see retailers kill off that siloed, independent planning and execution phase, start working more collaboratively and leverage technology that will allow them to do it.”

But the biggest process that needs to die?

The assumption that your current approach is good enough.

TODAY’S REALITY DEMANDS NEW THINKING

“Sales kind of makes the promise. Supply chain execution has to make it happen, which is why it’s always your fault,” says de Muynck.

Retail owners can’t keep putting supply chain leaders in impossible positions. Marketing launches campaigns without inventory confirmation. Sales make promises that the operation can’t keep. Buying decisions happen without considering warehouse capacity or transportation constraints.

“People understand the importance of supply chain now,” says de Muynck. “Five years ago, people, unless you were in it, didn’t see that.”

Thequestionis,doyouunderstanditenoughtoact?

YOUR COMPETITIVE MOMENT

The retailers winning right now aren’t necessarily the biggest or oldest. They’re the ones who’ve connected their operations so that when plans change — and they always do — the entire organization adapts together.

Your competitors are already making this shift. Every day that you delay they gain ground in operational efficiency, customer satisfaction and profit margins.

The choice is simple: Evolve your operations to compete in today’s reality or keep running yesterday’s playbook while your customers shop elsewhere.

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.

Take Stock

Inventory planning tougher in Canada, and what retailers can learn

BY IMAN SCHROCK

POST-PANDEMIC REALITIES ARE RESHAPING the market for home furnishings and other large parcel categories. Businesses across North America are grappling with shipping bottlenecks, rising tariffs, inflationary pressures and waning consumer confidence. The ripple effects of these challenges are clear — several well-known players have exited or scaled back operations, buckling under the weight of rising costs, softening demand and inventory levels that have become too costly to sustain.

These outcomes are not isolated. They point to a broader breakdown in traditional supply chain

strategies, which are proving increasingly vulnerable in today’s volatile market. Inventory-heavy models are under growing strain in this fast-changing environment. For companies already operating on thin margins, even a minor setback can translate into lost revenue, increased carrying costs or excess inventory that erodes profits. These pressures highlight the urgent need for more agile models that reduce risk and better align supply with actual demand.

THE CASE FOR LEANER, SMARTER INVENTORY Inventory is often viewed as a liquid asset. But that

assumption hinges on the book value accurately reflecting market value — these items tend to lose value over time as styles evolve, products age and consumer preferences shift, making their true worth harder to measure.

The problem is especially acute in furniture and home goods, categories marked by highly non-standardized products and long-tail inventory. Traditional financial statements don’t always capture this risk. While profit and loss statements track margins on what’s sold, they often overlook the operational threat posed by unsold or aging SKUs. Inventory losses typically surface only at point of sale or through occasional write-downs, which may trail the actual drop in value, masking financial risk and distorting performance.

In response, companies are taking different paths to address inventory risk. Some are focusing on more accurate and timely ways to quantify it, using tools like risk-adjusted margins that factor in the cost of carrying inventory over time and the risk of obsolescence. Others are rethinking their entire supply chain journeys, shifting toward business models that align supply with actual demand and enable companies to better navigate changing market conditions.

WHY INVENTORY MANAGEMENT MATTERS

Markets with geographically dispersed demand and lower density like Canada tend to experience greater supply chain fragmentation, adding complexity to inventory management. In categories like large parcel furniture, where goods are typically imported in container loads and subject to minimum order quantities, these structural constraints can further challenge inventory planning.

These constraints may require retailers to commit to inventory levels well before demand is clearly understood. Without the ability to consolidate volume or adjust quickly to shifting demand, inventory decisions become harder to get right, leading to higher costs or missed opportunities. In such environments, having an agile and demand-

aligned inventory strategy is not just operationally beneficial, it is financially essential.

By sourcing from supplier-held inventory only after a sale is made, retailers gain the advantage of purchasing with sales certainty. This approach reduces carrying costs, mitigates inventory risk and improves capital efficiency, offering the flexibility to respond to changing consumer needs without the burden of unsold stock or capital-heavy infrastructure.

When demand is aligned with actual sales rather than forecasts, retailers are no longer forced to price uncertainty into every decision. With greater visibility and reduced risk, pricing, trade terms and inventory commitments can all be approachedwith moreconfidence.Thisimprovesnotonlymarginaccuracy but strengthens the overall health of supplier relationships. For suppliers, the shift is not a loss. Risk is often priced in by retailers as a response to uncertainty. Reducing such uncertainties lowers credit risk associated with trade receivables, particularly in long-term partnerships that span multiple regions.

By showcasing products digitally and sourcing only after demand is confirmed, retailers can broaden their assortments, reduce risk and maintain a leaner, more agile operation. Even large parcel items like sofas or dining sets can be fulfilled efficiently without ever passing through a retail stockroom.

STEPPING INTO WHAT’S POSSIBLE

As retail dynamics continue to evolve at speed, traditional players must reexamine their supply chain strategies through a new lens. By shedding the weight of excess inventory and the uncertainty it brings, businesses can move with greater agility. But the shift is more than tactical — it reflects a mindset, one that embraces innovation, adaptability and a readiness to evolve. Advantage belongs to those who expect the unexpected and continuously reimagine what smarter, leaner inventory management can be.

Iman Schrock is president of GigaCloud Technology, a global business-to-business solutions provider that is reinventing the supply chain for wholesale buyers and sellers of large parcel merchandise. The company’s online GigaCloud Marketplace connects suppliers with resellers in real time through a streamlined, efficient delivery platform.

“Markets with geographically dispersed demand and lower density tend to experience greater supply chain fragmentation, adding complexity to inventory management.”

OPTIMIZING LOGISTICS

The benefits of bi-coastal warehousing

BY MATT PARROTT

IN THE FAST-PACED WORLD OF LOGISTICS and distribution, the ability to deliver goods swiftly and efficiently has become paramount. As consumers increasingly demand expedited shipping times, and businesses strive to maintain a competitive edge, the concept of bi-coastal warehousing has emerged as a game-changer. This approach involves maintaining warehouse facilities on both the east and west coasts of a country, particularly in large nations like Canada, enabling companies to manage and distribute inventory more effectively across diverse geographical areas.

The home goods industry is a prime example of a sector where logistics play a critical role. With the rise of e-commerce and heightened customer expectations, fast delivery is no longer a luxury but a necessity.

Bi-coastal warehousing offers numerous benefits that can transform a company’s logistics strategy. One of the most significant is reduced shipping costs. By having warehouses on both coasts, companies can minimize the distance goods need to travel, thereby cutting down on transportation expenses. This also improves operational efficiencies, which translates into increased profitability and allows

companies to offer competitive pricing to their customers. Moreover, enhanced supply chain visibility allows companies to identify and address inefficiencies, leading to further cost reductions and optimized logistics processes.

Another critical advantage is faster delivery times. With warehouses strategically located on both coasts, companies can ensure products reach customers more quickly. This speed is particularly advantageous for businesses engaged in e-commerce, where rapid fulfillment is crucial to meet consumer expectations.

In addition to cost savings and faster deliveries, bi-coastal warehousing enhances a company’s flex-

ibility and scalability. As businesses grow and expand their product lines, having warehouses on both coasts allows them to adapt to changing demands more readily. This versatility also extends to managing risks associated with regional disruptions,suchasportstrikesornaturaldisasters,ensuring a more resilient supply chain.

Further, bi-coastal warehousing improves inventory management. By having inventory closer to major markets, companies can respond more effectively to fluctuations in demand. This proximity also facilitates better communication and coordination between warehouses, leading to improved efficiency and reduced errors.

The impact of bi-coastal warehousing on customer satisfaction cannot be overstated. Faster deliveries lead to happier customers, as evidenced by numerous case studies and customer testimonials highlighting the correlation between delivery speed and satisfaction. This, in turn, fosters repeat business and customer loyalty. Positive online reviews and ratings further enhance a company’s reputation, attracting new customers and boosting sales. Companies that prioritize efficient logistics and timely delivery gain a competitive edge, as satisfied customers are more likely to recommend them to others.

The long-term benefits of bi-coastal warehousing extend to brand reputation and trust. Companies that consistently deliver on their promises build a strong brand image, fostering confidence and reliability among customers. This positive perception enhances loyalty and attracts new customers, ultimately driving revenue growth.

Implementing a bi-coastal warehousing strategy requires careful planning and execution. Companies must analyze their current logistics setup, choose the right locations and partners, and consider technology and infrastructure needs. Successful implementation can lead to transformative results, as evidenced by several real-world examples. ABC Import Co. Canada Inc., for instance, transitioned from selling directly out of Canada to establishing warehouses in key U.S. locations, enabling it to provide prime delivery at ground pricing and expand its market reach significantly. Similarly, LMNO Curtain Co. has optimized its logistics by utilizing facilities on both coasts, resulting in cost savings and improved service capabilities.

The strategic advantage of bi-coastal warehousing is also evidenced in the success stories of large,

multi-national corporations that have adopted this approach. Retail giants like Amazon, Walmart and Wayfair have leveraged bi-coastal facilities to enhance their logistics operations, resulting in improved customer satisfaction and competitive advantages in the marketplace. By strategically locating warehouses across both coasts, these companies can better serve a geographically diverse customer base and adapt to the fast-paced demands of today’s market.

Matt Parrott is director of distribution at A.N. Deringer Inc., overseeing corporate warehousing and distribution systems. With more than 30 years of experience, Matt has led numerous operational enhancements, including automated processes and new safety initiatives. He holds a bachelor of arts from Le Moyne College, and is a licensed U.S. customs broker.

TOP: Forklifts streamline the storage, retrieval and organization of goods. BOTTOM: Wrapped pallets enable more straightforward handling and transportation as a single unit, optimizing space and reducing the likelihood of items getting lost or misplaced.

RETAIL RECOVERY

How to get consumers shopping again for big-ticket items

Tariffs have piled up over the past few months on top of high interest rates. With concerns about their negative impacts on the economy and prices, combined with goods already being more expensive because the cost of borrowing is higher, many consumers have hit ‘pause’ on big purchases. Retailers are undoubtedly concerned, especially since U.S.-Canada trade tensions remain high. Here, four furniture industry insiders share their thoughts on what needs to happen to get consumers back in store to drive sales.

STEVE FORBERG, DECORIUM

We need to find some economic stability to get consumer confidence back. Consumers today (and I, too, am a consumer) are facing higher costs and inflationary situations in every facet of their finances. From food, clothing, recreational activities for kids to hotels, travel, automotive, you name it — and, yes, furniture, too. All while wages aren’t increasing at the same rate. This all needs to settle down for consumer confidence to come back to the masses. However, there are always people in the market ready to buy and it’s important to be able to satisfy their needs with selection, good value and exceptional service during these more unstable times. As an industry, we need to do a better job creating desire for home furnishings and how it makes people feel having a beautiful, comfortable, cozy space to come home to.

JIM RICE, MAISON RICE

People have a very short memory span when it comes to their wallet, so choose to stay true to your plan in terms of marketing and event planning. High impact sales events, creative social media initiatives and customer engagement all have their place to maintain performance and results. Providing an experience every time a customer walks in is a must. Doing it right helps get positive feedback and better online reviews. Try to sway away from discussing the product’s origin if it isn’t made in Canada. Focus on each guest’s needs. Since we can’t change anyone’s political agenda, all these elements combined will ensure consumers consider and shop your store.

ALLISON DINEEN, PALLISER

While geopolitical challenges are creating headwinds across the board, consumer confidence will only return when broader economic pressures ease. For premium products, new upholstery is often a want and not a need, so purchase hesitation is understandable. Still, we continue to lean into what sets us apart, which is comfort, quality and Canadian craftsmanship. Our made in Canada story builds trust and pride, especially during the consideration phase. In uncertain times, the price/value equation often wins. That’s why we’ve evolved our merchandising strategy to highlight timeless, multifunctional, investment-worthy pieces. We’re also focused on lower-funnel tactics like supporting retailers, incentivizing conversion and meeting consumers where they are with tools that bridge digital and in-store shopping.

JIM FEE, STONEY CREEK FURNITURE

While there’s no quick fix, resolving trade tensions and tariffs between Canada and the United States would ease much of the current uncertainty. Stability helps businesses and consumers make confident investment decisions. At present, industries face pressures from job concerns, rising living costs, and higher mortgage or loan rates. Slower home sales and declining property values have made consumers more cautious about furniture purchases. I’m optimistic that fall will bring renewed interest, as it traditionally does for home furnishings. Longer term, demographic trends are encouraging, with millennials entering key life stages like starting families and buying homes. A resolution to trade disputes and lower interest rates would help restore consumer confidence and provide a needed boost to our industry.

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