Trail Appliances takes a di erent path
Transcription
Trail Appliances takes a di erent path
IN SPORTS CANADA’S CUP HOPES FLICKERING Drought likely to extend with Flames, Habs down » C7 BUSINESSBC C TUESDAY, MAY 5 | 2015 | BUSINESS COORDINATOR: SCOTT NEUFELD 604-605-2636 | [email protected] S & P/TSX 15,367.47 27.70 TSX Venture 699.12 Dow Jones 18,070.40 0.31 46.34 S & P 500 2,114.49 6.20 Dollar 82.70¢ US 0.44 Gold 1,186.80 12.30 Oil 58.93 0.22 Natural Gas 2.82 0.05 RETAIL ▶ Bombardier nears Egypt pact Bombardier Transportation says its consortium with Egypt’s Orascom Construction is finalizing discussions with the Egyptian government to build a $1.5-billion US monorail near Cairo. Over the weekend, Egypt’s housing minister said Bombardier and Orascom will build the 52-kilometre project by mid-2018. Spokesman Marc Laforge says the contract has yet to be awarded. ▶ Tembec posts $40-million loss Quebec-based forestry company Tembec says it has just endured a tough winter quarter that resulted in a $40-million loss. The loss amounted to 40 cents per share, which was deeper than a year-earlier loss of 28 cents per share or $28 million. Overall sales were down nearly four per cent, dropping to $348 million in the second quarter ended March 28 from $362 million a year earlier. ▶ Enbridge Income Fund Q1 profit up Enbridge Income Fund had a $69.6-million profit and $52.5 million of adjusted earnings in the first quarter. The results were announced by Enbridge Income Fund Holdings Inc., which said it earned $30.8 million or 44 cents per share in the quarter from the fund, which has invested in a variety of pipeline systems. ▶ Confidence on rise, poll says Canadian consumer confidence extended gains last week to the highest in more than three months as concern the economy is in trouble fades, telephone polling shows. The Bloomberg Nanos Canadian Confidence Index rose to 56.8 last week, from 56.2 in the prior period. The weekly gauge is trending higher amid rebounding oil prices and rising real estate values. ▶ Fairfax buys into Vietnam insurer Fairfax Financial Holdings says it is working on a deal to buy a 35 per cent equity stake in BIDV Insurance, which has commercial ties with one of Vietnam’s largest banks and a presence in Cambodia and Laos. Toronto-based Fairfax has been expanding its presence in Asia, including India. Shelley Fralic: In my opinion At around 300 square feet, micro laneway homes aim to show how less — even much less — can be more. » C3 Jason Broderick looks over the new 22,000-square-foot Trail Appliance store on Sweden Way in Richmond. WAYNE LEIDENFROST/PNG Trail Appliances takes a different path Family-run company forgoes online sales for old-school showrooms BRIAN MORTON “ The goal is to give people — not just premium shoppers, but shoppers from every price range, every budget — the inspiration for what their kitchen could be. VANCOUVER SUN R etail’s future is online sales and smaller stores, right? Not always, if Trail Appliances is any indication. The giant appliances retailer, which recently opened a 22,000-square-foot store in Richmond with plans to open more, avoids e-commerce, preferring that customers first determine what they want on the company website, and then head down to the nearest store to find out more before closing the deal. The reason? Buying an appliance is an impor- JASON BRODERICK tant investment and the buyer should link up with an expert TRAIL APPLIANCES B.C. PRESIDENT to be sure they’re getting a perfect fit. “With Trail, right now, we do not do e-commerce,” said Jason Broderick, president of Trail Appliances B.C. “It’s not part of our strategy. “We prefer our customers to get the information they need (online) to begin their consideration of the appliances they’re looking for. But because appliances can be very complex, because of the different installations requirements, the different functionalities, we prefer them to talk to one of our experts. Our sales staff on average have 10 years of experience in the business, and that way when (customers) think they want a certain product, our staff can confirm that product will fit in their home and be installed properly.” However, Broderick said if someone can’t make it into the store to finalize the order, Trail will work to “walk them through the steps” over the phone and have the appliance delivered. He said larger “bricks-andmortar” showrooms work best for Trail. “We’ve decided to run with larger stores,” he said. “And we believe that in order to bring people into the showrooms, it’s got to be an extremely compelling experience, and so we invest greatly in that experience by making the showroom inspirational, with interactive products, state-of-the-art display kitchens, with them using the product in our showroom if they like.” Trail’s newest store, on Sweden Way in Richmond, includes a 13,000-square-foot head office. It boasts two functioning demonstration kitchens, 16 designer kitchens, appliances that shoppers can try out, and 50 brands from North America, Asia and Europe. “The goal is to give people — not just premium shoppers, but shoppers from every price range, every budget — the inspiration for what their kitchen could be,” Broderick said. “So we have different kitchen displays here that are beautiful but not expensive, and all the way through to the most elaborate you can get.” The store’s new location in the centre of Richmond’s home improvement hub reflects Trail’s strategic approach to development. “What’s key to us in making the investment is its placement within a sizable population, and being in a home decor hub, with complimentary products. In the case of Richmond, Ikea’s our neighbour and there’s tons of other home decor shopping. Our Richmond showroom is accessible by 1.5 million people within a 30-minute drive.” The Richmond store, second in size to Vancouver’s 26,000-square-foot store, is one of 15 Trail stores in B.C., Alberta and Saskatchewan. There are seven B.C. stores, including five in the Lower Mainland, and a clearance centre and distribution centre. There are two head offices, in Richmond and Calgary, where the family-owned company was started in 1974 on MacLeod Trail — thus Trail Appliances — by Broderick’s grandfather Jackson Broderick, now retired. Jason Broderick said the new Richmond store is unique because of its design. “The products for the most part are all hooked up live here,” he said, “which means before you purchase you can test the appliance and see how the controls work. In the case of a dishwasher, you can listen to the dishwasher’s noise level. And we invested greatly in the supporting functions of the business. For example, we do all our own deliveries, we have a parts-andservice department, a customer care team.” Broderick said his grandfather’s six sons took over the business — “that was the second generation” — and now there’s a third generation, including him. There are about 950 employees companywide, with 350 in B.C. Broderick recalls moving to B.C. in 1980 with his father and uncle and starting a Richmond store. “They slowly built the business,” he said. “I remember looking in my garage when I was a youngster and seeing boxes. I didn’t know why. Now I reflect back and it was because they were storing product there.” As for the future? “We just celebrated the launch of our Richmond store,” he said, “and we’re already looking for new opportunities and expansion plans.” [email protected]