WHAT`S HOT IN

Michael Knell’s
HGO merchandiser
FALL 2016
HomeGoodsOnline.ca
Volume Five, Issue 3
Donald Cooper
on winning the
talent wars
Our Canadian
Furniture Show
report
The omnichannel
explained
Tepperman’s
is finding a
green ROI
WHAT’S HOT IN
upholstery
CONTENTS
6
34
MARKET REPORT
WHAT WAS HOT…
Anyone who knows our editor well knows AND WHAT WAS NOT…AT THE
he’s a big believer in what is now called CANADIAN FURNITURE SHOW
28
EDITOR’S LETTER LET’S
GO BACK TO JANUARY
the Canadian Furniture Show (CFS). It’s
absolutely essential to the long term
health and prosperity of the Canadian
furniture industry that we have a neutral
ground where we can come together as
an industry. But its performance over the
past two years suggests we consider going back to the original dates. An opinion from Michael J. Knell
8
TECHNOLOGY THE
OMNICHANNEL EXPLAINED
In a nutshell, being an omnichannel retailer means providing the customer
with every possible path to purchase. It
has to be provided seamlessly and while
giving a superior shopping experience.
Looking at the success many have had
adapting to its demands, it may not be
as dauntless a task as it appears. Gary
James provides our explanation.
34 18
24
8
4
HGO merchandiser
ON RETAIL WINNING
THE TALENT WARS
The real battle in business today is the
battle for talent. If it is won, the battle for
loyal customers and healthy profitability
is a lot easier. Whether your business is
large or small, not having the right people in every position carries a huge bottom-line cost in lost business, inefficiency, missed opportunity and frustration.
Our resident retail guru, Donald Cooper,
shares his eight essential steps to attract,
lead and engage a top performing team.
24
RETAIL & THE
ENVIRONMENT
TEPPERMAN’S – FINDING
A GREEN ROI
Being a good steward of the environment
is not just the right thing to do. It can also
generate a real return on investment if
done properly. It’s also something that
will get you accolades from your peers in
the community as Andrew Tepperman,
president of the five-unit family owned
and operated Tepperman’s Furniture,
recently discovered. A report from HGO
editor Michael J. Knell.
CFS has undergone a makeover over the
last few years, shortening its once cumbersome moniker, cutting a day from its
run time and welcoming attendees during
the summer rather than the winter. While
it made in-roads in terms of style, welcomed more beautifully curated displays
and some style-savvy celebrity speakers this year, attending retailers say they
want more Canadian product and even
more striking exhibits. Regular contributor Ashley Newport authored our report.
28
PRODUCT STRATEGIES
WHAT’S HOT IN
UPHOLSTERY?
While walking the floor at CFS recently,
it became apparent bright, bold pieces –
especially those with sleek, soft frames
– were no longer novel or rare. As the
world has got smaller and the consumer
more fashion-savvy, manufacturers began designing fun pieces that are versatile, mobile, practical and most importantly stylish. Ashley Newport brings the
trends together.
39
INDUSTRY
CALENDAR &
ADVERTISERS’ INDEX
Michael Knell’s
HGO merchandiser
FALL 2016
HomeGoodsOnline.ca
Volume Five, Issue 3
Donald Cooper
on winning the
talent wars
Our Canadian
Furniture Show
report
The omnichannel
explained
Tepperman’s
is finding a
green ROI
WHAT’S HOT IN
upholstery
ON OUR COVER: Blue is proving itself
to be the hot colour for upholstery
fabric these days. A good example is the
Model 7646 from Décor-Rest. Part of
the S&C Collection, it features looseback cushions with box seats, doublestitching details and modern metal feet
and is described as “a true velvet, with
the softest hand imaginable.”
Treat yourself to a luxurious night's sleep.
AD
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Stearns & Foster mattresses are made by specially trained master craftsmen
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using the best materials and the highest of standards − all to deliver exceptional
quality and indulgent comfort. We’re so proud of our work, we sign every one.
stearnsandfoster.ca
HomeGoodsOnline.ca
5
EDITOR’S LETTER
Let’s go back
to January
HGO merchandiser
FALL 2016 • VOLUME FIVE, ISSUE 3
MICHAEL J. KNELL
Anyone who knows me well knows I’m a big believer in
what is now called the Canadian Furniture Show (CFS). It’s
absolutely essential to the long term health and prosperity
of the Canadian furniture industry – at all points of the
supply chain from manufacturing and distribution to retail,
both independent and corporate – that we have a neutral
ground where we can come together as an industry.
A
N EVENT SUCH AS CFS PROVIDES A PLACE WHERE INNOVATION can
be seen for the first time, where new manufacturers can make their debut, where new product designs can be unveiled for testing and where
professionals from across the supply chain can meet, exchange ideas
and re-affirm long standing friendships.
Industry events, however, have not been immune to advances in technology,
stagnation in the economy or changes in demographics across our society. The
result has been, for CFS, a smaller exhibitor base and reduced attendance, particularly from retail buyers and to some extent designers as well. CFS isn’t the only
industry event to suffer so – well known furniture shows in High Point, Las Vegas,
Cologne, Paris and other places have also been afflicted with declines.
I also firmly believe the CFS management team – lead by president and chief executive officer Pierre Richard – have done a great job since taking over just prior to
the 2014 Canadian Home Furnishings Market. Many of the changes made are truly
laudable and deserve high marks indeed.
Even though the change in the dates from January to May for 2015 came from a
good and honest place – the survey of attendees they conducted in the spring of 2014
– it might be time to consider going back to the show’s traditional January timeslot.
I say this for a number of reasons. One is I believe at least two greatly missed and
much demanded exhibitors will return to the International Centre with a January
show date for the simple reason that schedule marries nicely into their own product
development and introduction cycle. The current May timeframe is simply too late
for them. I also think others will follow.
When held in January, the Canadian event was the first furniture market of the
New Year – the psychological importance of that cannot be under-emphasised. It
gives a unique marketing advance that cannot be replicated.
Going back to January won’t solve all of the problems CFS faces, but regaining
some of that lost exhibit space and the support of at least two vitally important
resources is a good place to begin.
Michael J. Knell
Publisher & Editor
[email protected]
6
HGO merchandiser
ISSN 2291-4765
www.HomeGoodsOnline.ca
PUBLISHER & EDITOR
Michael J. Knell
[email protected]
MARKETING DIRECTOR
Corrie-Ann Knell
[email protected]
MANAGING EDITOR
Anthony E. Bengel
[email protected]
CONTRIBUTORS
Donald Cooper
Gary James
Ashley Newman
ART DIRECTOR
Samantha Edwards
Sam I Am Creative
[email protected]
IT DIRECTOR
Jayme Cousins
In House Logic
[email protected]
PUBLISHED BY
Windsor Bay Communications Inc.
P.O. Box 3023, 120 Ontario Street
Brighton, Ontario K0K 1H0
T: 613.475.4704
F: 613.475.0829
Michael J. Knell, Managing Partner
PUBLISHERS OF
HGO This Week
Home Goods Online.ca
© 2016
Windsor Bay Communications Inc.
All rights reserved.
Windsor Bay Communications does not accept
any responsibility or liability for any mistakes or
misprints herein, regardless of whether such errors
are the result of negligence, accident or any other
cause whatsoever. Reproduction, in whole or in part,
of this magazine is strictly forbidden without the
prior written permission of the publisher.
AFFILIATE MEMBER
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Let us show you a new way to protect your
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7
TECHNOLOGY
THE OMNICHANNEL EXPLAINED
In a nutshell, being an omnichannel retailer means you provide the customer with
every possible path to purchase. You have to provide it seamlessly and while giving
a superior shopping experience. Looking at the success many have had adapting to
its demands, it may not be as dauntless a task as it appears. BY GARY JAMES
F
IRST THERE WERE STORES.
Then there was ordering by
phone or catalogue. Next
came e-commerce. Until recently, each of these sales channels was
its own discrete path by which a consumer could conveniently buy a product. The paths generally all led to the
same goal — a purchase — but each traveler tended to stay on a single path rather than jumping from one to another.
Now there’s omnichannel. A buzzword in business magazines, retail conferences and other settings where savvy
pundits peer into the future, omnichannel is the term used to describe how
multiple channels of selling are now
being merged into a single, completely
integrated consumer experience.
The idea is consumers should be able
to navigate all paths through which a
product might possibly be sold — both
physical (offline, or brick and mortar)
8
HGO merchandiser
and digital (online, or virtual) — at any
time without any gaps or roadblocks. If
consumers put a product in a shopping
cart on their computer, they should be
able to complete the sale in store with a
salesperson. And conversely, if they’ve
seen something they like in a store but
want it in a different size or colour; they
should be able to place their order from
home or another location 24/7 via a
smartphone, tablet or laptop.
During a workshop on omnichannel
revenue at the High Point Market this
past April, Jessica Norby, a business
development executive at technology
provider MicroD, defined omnichannel
retailing this way: “A multichannel approach to sales that seeks to provide the
customer with a seamless shopping experience whether the consumer is shopping online from a desktop or mobile
device, by telephone or in a bricks-andmortar store.”
Norby added while all omnichannel
experiences will use multiple channels,
but not all multi-channel experiences
are omnichannel. “You can have amazing mobile marketing, engaging social
media campaigns and a well-designed
website, but if they don’t work together,
it’s not omnichannel.” She cited Starbucks, which allows store visitors to
place orders and make payments directly
from their phones, as a good example of
the total integration that true omnichannel retailing delivers to the consumer.
In the Canadian furniture community, examples of omnichannel retailing
are rare. IKEA probably comes closest
while major chains such as Leon’s, The
Brick and Brault & Martineau are moving quickly to achieve this convergence
of online and offline. The size of furniture — often big, heavy and expensive
to ship — has posed an obstacle for the
development of e-commerce, and so has
its tactile, fashion-driven features. Most
consumers still like to see and touch
their furniture and, until virtual reality
headsets become commonplace, the
best place to do that is still a store.
But as younger consumers become
more active purchasers of furniture and
technology continues to evolve, its inevitable e-commerce will play a more
important role for all furniture retailers.
Once that happens, omnichannel retailing also will become more prevalent,
with more retailers seeking to provide
the ultimate in customer convenience.
In this report, we take a look at what
progressive retailers such as IKEA and
Meuble2Go are doing to integrate offline and online, and we also talk to
a leading buying/marketing group
(Mega Group/BrandSource) and technology provider (Blueport Commerce)
to see what the latest developments are
in omnichannel retailing — and where
things are heading.
AN ‘ON THE GO’
EXPERIENCE
Recognizing technology is changing
consumer behavior and customers are
increasingly relying on digital devices
to get the information they need, IKEA
launched a series of initiatives over
the past few years to create a seamless
IKEA on the Go experience. These include the development of a responsive
(mobile-friendly) web site, a new shopping and catalogue app, and free WiFi availability in all of the company’s
stores across Canada.
In addition, IKEA Canada is in the
process of rolling out a new app to help
consumers decide which mattress is the
best fit for their needs.
“IKEA Canada is committed to continually finding new ways to enhance
the shopping experience and provide
convenience for its customers,” said
Tanya Bevington, country communications manager for IKEA Canada. “Our
goal is to be more accessible to all Canadians, and meet them whenever and
wherever they choose to interact with
us. We put the customer in the centre of
all we do.”
One way IKEA is supporting Canadians’ evolving needs is through its
new network of pick-up and order point
locations — smaller stores located in
markets not served by its larger-format
stores. IKEA launched its fifth location
in Windsor, Ontario in April, adding to
a growing network that includes sites
in Quebec City as well as the Ontario
cities of London, St. Catharines, Whitby and Kitchener. The pick-up and order points offer consumers same-day
delivery of furniture directly to their
homes for $89.
“People are excited that they can
shop IKEA in a new way and have been
taking advantage of this new format,”
said Bevington, adding IKEA is one of
the first furniture retailers in Canada to
offer same-day delivery. “The main goal
is to provide alternatives for our customers. This is an option to shop IKEA
closer to their home, but they can still
choose to visit a store for the full IKEA
experience. Customers are pleasantly
surprised when they visit these locations to see the same great inspiration
they are used to seeing when visiting a
full-size store.”
IKEA’s new pick-up and order points
“are a great example of extending the
digital presence into a physical loca-
tion,” said Bevington. “In the stores,
there are many digital touch points.”
They include digital room planners,
find-it-kiosks, price scanners and IKEA
Family Kiosks, a resource area for loyalty program members. IKEA also has
iPads on its store floors for customer
use, and video content highlighting
product features runs on nearby TVs.
IKEA’s shopping and catalogue app,
which can be easily accessed on any
smart phone, is also a key tool. “(It) allows users to navigate the store freely
while being armed with all the info required (to find what they need).” The
app enhances the in-store experience
by providing features such as stock
checks, shopping lists, product info,
store maps and useful tips. It also has
a Place in Your Room feature that allows users to virtually place and view
hundreds of IKEA products in their
own homes.
“With our mobile and web enhancements, we see high adoption rates, so it
is a good indication that the customers
find the changes useful,” Bevington said.
In addition to these tech tools, IKEA
occasionally features a “fun campaign
extension” in its stores, such as a
Twitter-activated vending machine,
she added.
“We are always exploring new ways
to improve the customer experience,
particularly digitally. Our website is
a testament of that, as we often make
improvements for our customers’ benefit,” Bevington said.
Social media also plays an important role in IKEA’s relationship with its
customers, enabling shoppers to interact with the company through new
channels. For example, customers can }
From left: An IKEA
pick-up and order
point store exterior;
an in-store display
promoting IKEA’s new
pick-up and order
service; an IKEA
Planning Center,
where consumers
can use online tools
to help design their
dream rooms.
HomeGoodsOnline.ca
9
An in-store tablet display that
invites shoppers to share their
own special at-home video
moments as part of a national
IKEA ad campaign.
now purchase products through IKEA’s
Instagram feed or send requests to customer service through a dedicated Twitter handle.
The result of all these efforts can
be seen in IKEA’s metrics. “We have
had very inspiring accomplishments
in our last fiscal year,” Bevingon said.
“Seventy-five million people visited our
website, which is over 25% more visits
than the previous year. We also eclipsed
for the first time the $100 million mark
for online sales.”
E-commerce now accounts for about
6% of IKEA Canada’s sales, which were
$1.79 billion for its 2015 fiscal year which
ended last August.
IKEA Canada also has emerged as
one of the global home furnishing retailer’s top markets when it comes to
consumers using the mobile app for
stock checks. “It’s an important tool for
us and for our customers,” Bevington
said. “Knowing that customers can travel a distance to come to our stores and
knowing how time-strapped Canadians
are, it’s very important that we meet
their needs and expectations when they
arrive and that means having the products they want in-stock and available, as
shown on our website.”
Going forward, IKEA will continue
to look for new ways technology can be
used to enhance the customer experience. In April, the company announced
the release of a pilot virtual reality app,
the IKEA VR Experience, on Valve’s
game platform Steam. The test app,
which features a virtual kitchen experience, is designed to solicit consumer
10
HGO merchandiser
feedback as IKEA continues to explore
the possible implications of VR technology for the home.
“Virtual reality is developing quickly
and in five to ten years it will be an integrated part of people’s lives,” said Jesper Brodin, managing director at IKEA
of Sweden. He said the technology
someday could be used “to enable customers to try out a variety of home furnishings solutions before buying them.”
BRICKS PLUS CLICKS
While IKEA has been steadily enhancing its digital capabilities to deliver
a more seamless shopping experience
for in-store shoppers, Meuble2Go.com,
a Montreal-based furniture, bedding
and accessories merchant, has opened a
brick-and-mortar ‘service center’ to enhance its core business of e-commerce.
An up-and-coming force in online
furniture retailing, Meuble2Go opened
a 2,000-square-foot concept boutique
in Montreal’s Mile End district in 2015
— its first brick-and-mortar store — to
provide shoppers with a place where
they could go to test mattresses and see
and touch other products in person. The
store includes a sleep lab, called DormoLAB that helps customers choose
the right mattress by assessing factors
such as age, weight, height and pressure points. And the store also includes
a display of its top-selling furniture,
which is updated every month, as well
as a showcase of locally made furniture
and accents.
In addition, the store has an Espresso bar with iPads customers can
use to access the store’s entire assortment online.
“It’s a very relaxed, friendly environment where customers can come in,
have a cup of coffee and talk to our
sales associates,” said Vincent Gagnon,
owner. “We’ve learned that the online
sales of furnishings works best if it’s
supported by some sort of brick and
mortar — whether it’s a boutique, a service center or a complete store. It gives
customers an extra measure of confidence to know there’s a store staffed by
people where they can go if they have
questions.”
Gagnon’s father Christian — the
longtime owner and president of Lions
Déco Meubles Électros in Montreal,
who closed the business in 2014 after
more than 30 years — founded Meuble2Go in 2014 primarily as an inventory liquidation specialist. In June of
2015, he sold the business to Vincent,
who relaunched the Meuble2Go store
and founded a new online operation
with the same name. The new company’s focus is quality, promotional to
mid-priced contemporary and transitional Canadian-made furnishings for
sales online and in-store.
Although there are three million
online shoppers a year and $6 billion
spent on e-commerce in Quebec, 60%
of those purchases are made from web
sites outside Quebec, Vincent Gagnon
noted. “Canadians are actively buying
products from U.S. web sites despite
the extra complexities, delays and costs
involved in shipping across the border,”
he said. “With Meuble2Go, I wanted to
approach the market from a new angle
and offer shoppers in eastern Canada }
KEY STATS REGARDING
CANADIAN E-COMMERCE
Only 46% of Canadian businesses
have a website
Only 41% of Canadian small
businesses have a website
Only 19% of Canadian companies
have websites optimized for mobile
Only 13% of Canadian businesses
are selling online
SOURCE: STATISTICS CANADA
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11
an easier way to buy furniture online,
making the customer the focus of purchasing decisions and showcasing local
products.”
About 60% of Meuble2Go’s 2,500plus product assortment is made in
Quebec, according to Gagnon. To encourage customers to buy locally, the
retailer offers free delivery to destinations in Quebec, Ontario and the Maritime provinces. Key sources include
South Shore, Nexera, Monarch and Zuo
for furniture, Umbra (home décor) and
Kingsdown (bedding). Smaller items
are drop-shipped directly from the
manufacturers to the consumer or to
Meuble2Go’s store; larger items are delivered through a white-glove service.
Returns can be brought back to the
store for a full refund, and other merchandise can be returned via FedEx for a
restocking fee. “Our ‘buyer’s remorse’ returns are much lower than we expected,
only about 2% to 3%” said Gagnon.
Meuble2Go has opted to limit sales
initially to Quebec and Maritime prov-
CONSUMERS STILL LOVE STORES
Gen Z and Millennials are big on physical stores — even more so than their older
counterparts — according to a new research study by iModerate, a Denver-based
consumer insights firm.
In the study of 844 consumers conducted this past February, 74% of all
respondents said it is important for brands to have a physical location rather than
solely selling online. Eighty percent of Gen Zers and 82% of Millennial respondents
said it is important, compared to 69% of Gen Xers and 65% of Baby Boomers.
One of the biggest lures for in-store shopping is the assurance that comes
from seeing, feeling and testing merchandise. This is especially true for first-time
buying experiences, when brand perceptions are made and loyalty is decided.
“One of brick-and-mortar’s greatest advantages over other channels is that
there’s an opportunity for shoppers to interact with products, and that gives them
the confidence they need to make a purchase,” said iModerate CMO Adam Rossow.
iModerate found the in-store experience matters most to consumers when
they’re buying high-priced items, buying specialty items, buying items they need
help deciding on or understanding, when they’re in a hurry and at the holidays.
The study also revealed that each generation is looking to get something
different from their store visits:
GEN Z – Seeks the reassurance found through the sensorial. Likes stores
where they can touch and test various sizes and styles.
MILLENNIALS – Seek efficiency and quality. Many are launching careers and
have young families so they need to shop frequently, and favor big-box stores for
their ability to quickly find everything they need in one place.
GEN X – Seeks an escape and discoveries. With bustling careers and older kids,
their life is hectic and they appreciate stores that offer a getaway through calm
music, coffee, etc.
BABY BOOMERS – Seek comfort and space. Many are living on limited
incomes, so they like to touch products before buying them and balk at paying for
shipping. They also value low music, light scents and seating.
12
HGO merchandiser
inces so that it can establish its brand
and offer consumers “a single, consistent experience with no variations in
pricing or service,” said Gagnon. “We
want to make doing business simple for
our customers, and for our suppliers.”
Down the road, the retailer plans to expand its presence with additional stores
in existing eastern markets where online sales are active and then, eventually, to cities in the West.
In May, Meuble2Go announced a new
partnership with l’ACET, a business incubator that provides funding and other
support to technology-based Canadian
companies.
The Meuble2Go website features a
wide variety of furniture, mattresses
and accessories, with photos, descriptions and reviews for each. A chat text
line is always available to answer customers’ questions.
“The importance of a chat function
is underrated,” said Gagnon. “Our data
shows that more than 70% of our online
customers get in touch with one of our
service agents at some point during
their transaction. They need advice —
it’s not like buying a T-shirt or book on
Amazon.”
To reach potential customers, Meuble2Go employs a mix of online and traditional channels, including the AdRoll
marketing platform. The centrepiece of
its communication efforts is an e-newsletter, currently distributed to more than
11,000 qualified subscribers. The company also holds monthly events in its
store, such as do-it-yourself workshops
hosted by local bloggers and designers
to create a sense of community.
In addition, the retailer has an active presence on Twitter, Facebook,
Instagram, You Tube and Pinterest,
regularly posting photos of new prod-
From left: Meuble2Go’s service center in Montreal displays an assortment of best-selling items; the retailer’s home page promotes free shipping
to anywhere in eastern Canada; a typical Meuble2Go product landing page, as seen on a tablet computer; and a home office setup from Nexera’s
Liber-T collection, featuring a combination of white melamine and walnut laminate.
ucts and information about design. “We
don’t try to sell anything through social media,” said Gagnon. “Instead, our
goal is to create an emotional connection with enthusiasts so that they share
our content with their friends, which
has much more impact and credibility.
Since we add about 50 new SKUs online
every month, we always have something
to talk about.”
Recognising site visitors need to be
able to easily browse and locate products of interest, Meuble2go employs a
variety of tools to track activity. A new
tool it recently adopted enables the
company to watch the movement of a
visitor’s mouse on the website in real
time. Another tool creates “heat maps”
that aggregate user activity to illustrate
which areas of the website are the most
frequently visited.
“These tools help us gain a much better understanding of shopper behavior
and improve the design of our site,” said
Gagnon.
According to Gagnon, studies show
that there are three main factors that
customers don’t like about the traditional furniture shopping experience:
delivery delays; the lack of customer
service and support both before and
after a sale; and pressure selling. Meuble2go addresses the first two concerns
by offering consistent, four- to sevenday shipping and by having customer
service associates readily available
through text or phone. The third item —
pressure selling — is kept to a minimum
by paying sales associates a salary rather than commissions, Gagnon said.
“Meuble2go aims to be a refreshing
alternative,” he said. “We want to put the
power back in the customers’ hands. Our goal
is to make them happy,
KEY STATS REGARDING
so they’ll their friends
TODAY’S SHOPPERS
about their experience.
88% of customers will check out reviews before
Studies have shown
making a final decision on a purchase
that word of mouth is
the most powerful tool
67% of the shopper’s journey is now done digitally
for marketing.”
44% of online consumers say having questions
Gagnon added while
answered by a live person while in the middle of an
he initially expected his
online purchase is one of the most important features
target customers would
a website can offer
be women ages 35 to 45,
data shows that Meu57% of the purchase decision is complete before a
ble2Go is reaching a
customer even contacts a product source
broader base of women
11: the number of times a customer will “touch” a
from 35 to 55. “And
vendor before making a purchase
we’re also attracting a
good number of men
SOURCE: MICROD INC., SEARCH ENGINE JOURNAL, LIVECHATINC.COM
and women over 60
who are making their first online purchases,” he said. “Often, they’re coming
into our store, seeing something they
like on the website and asking our sales
associates to help them place the order.”
EXTENDING THE BRAND
Recognising most independent furniture and appliance retailers need help
to successfully extend their brand into
the online arena; Mega Group offers a
variety of digital merchandising, marketing and web development services
to member stores through its BrandSource program.
The hub of its web initiative is the national BrandSource.ca site, which contains information on major brands and
product categories carried by BrandSource members, details on current promotions and other engaging content,
such how-to tips, videos and blogs.
“We have a complete content management strategy, so that if the consumer is just at the beginning of their
journey to purchase something and
need information about different types
of mattresses, that information is there,”
said Michael Vancura, executive vice
president of retail operations for Mega
Group, the operators of BrandSource
Canada. “Then, as they get further
down their path and want to find out
more about specific brands and constructions, that content also is available.
And finally, when they’re ready to buy,
we have a ‘call to action’ with special
pricing and promotions to help them
make a decision.”
The national BrandSource site does
not contain a shopping cart function }
HomeGoodsOnline.ca
13
since its main mission is to steer customers to local stores. “Consumers are most
interested in where they can find a product locally, so our easy-to-use store locator tool points them in the right direction
to make a purchase,” Vancura said.
BrandSource also powers individual
websites for about 100 member companies. The complexity of sites varies,
but even the most basic site contains
a wealth of information about products, suppliers, pricing and promotions.
BrandSource also provides templates
for retailers’ Facebook posts and handles the management of pay-for-click
and search engine optimization campaigns. A handful of the sites also have
e-commerce functionality.
BrandSource has been providing
digital marketing services to its members for 10 years. This summer, it will
release version 6 of its website platform.
The update will be fully responsive, providing mobile users easier access to a
full range of site content.
“Showcasing your store and product
online in an easy-to-navigate, engaging
and optimised website is a must in today’s competitive retail world,” Vancura
said. “Through BrandSource, we make it
easy for Mega Group members to have
a dynamic online presence that attracts
more customers and sales to their stores.”
To date, studies have shown that ecommerce has been slower to develop
in Canada than in the U.S. and Europe,
said Vancura. “And true omnichannel
retailing — where someone does some
research online and walks in the store,
and then that thread of activity is picked
up, the transaction continues and the
customer completes a purchase on their
phone as they walk out — is very hard
to find.”
For furniture and, to a lesser extent,
even appliances, the pressure to move
online is much less intense than it is for
most other consumer products, said Vancura. “Consumers still want to be able to
see and touch their furniture before they
buy,” he said. “And that’s also mostly true
for appliances — they want to examine
various features and look inside.”
For now, e-commerce remains a
very small portion of overall sales of
furniture and mattresses, according to
Vancura. “But everyone is starting to
improve their game. There’s no question that e-commerce will become more
important to furniture as time goes on.”
To keep up with the changing market, even small to medium-sized retailers are steadily adding more features to
their sites with a goal toward eventually
selling online. “Many of our members
are moving toward offering e-commerce, but it’s a process of evolution
rather than a revolution,” said Vancura.
“Retailers are testing the online waters
a little at a time to see what works best
for them rather than diving straight into
the deep end.”
Step one of e-commerce is having
a shopping cart function that enables
consumers to easily find and select
products they want to buy, Vancura
said. The second step is installing a secure online payment system. The next
step after that is integrating point-ofsale inventory with what’s available online, so all that information is updated
automatically. In addition, a robust
digital marketing program needs to be
put in place to generate and measure
traffic and sales.
After that, there’s a long list of other
elements — and decisions — that go
into making the selling process more
and more seamless, Vancura said. For
example: “Do I want to show inventory
levels to the public, so when they order, they know exactly how long they’ll
have to wait? How do I handle custom
orders? Do I put all of my product categories online, or just some categories?
What are my business rules for e-commerce — do I ship anywhere or just to
a limited geographic area? What’s my
online price versus in-store price? How
do I handle returns? There are many
complex steps that go into creating any
successful e-commerce program.”
In BrandSource’s experience, certain
categories of furniture have proven to
be better suited to e-commerce than }
A WEB GAME CHANGER
On April 1, Retailer Web Services released WebFronts Level
4, billed as the first industry-specific marketing automation
software. Designed exclusively for independent furniture,
mattress and appliance retailers, WebFront Level 4 contains
proprietary tools that enable stores to identify consumers
while they’re researching online, track their interactions and
then automatically re-market to these prospects based on
purchase intent. The program integrates with RWS’ existing
WebFronts system.
“Up until now, this type of technology has been too
expensive and too technical for all but the largest national
retailers to implement,” says Jennie Gilbert, chief operating
officer of the Scottsdale, Arizona-based technology provider.
“It’s a huge game-changer to make this accessible to the
independent channel. They know have a two-way mirror that
allows them to better understand exactly who is visiting their
site and what they’re looking for.”
The unprecedented rise of the digital consumer has
changed the game for independent retailers, Gilbert says.
“The ‘purchase journey’ is completely different now, since
14
HGO merchandiser
consumers now do the bulk of their research on products they
plan to buy long before they walk in a store.”
As a result, retailers need to know who their customer is and
what their preferences are earlier in the buying cycle than ever
before. “With WebFronts 4, they have a powerful tool that enables
them to easily reach out to the right prospect at the right time
with relevant, compelling offers that result in more sales,” she
says. While much of the activity can be completely automated, the
program also provides a rich source of sales leads for RSAs to tap
as time allows.
According to Gilbert, 281 of RWS’ retailer customers
across North America have already subscribed to WebFronts
Level 4. Prior to release, the program was beta tested with a
group of 200 retailers from different durable goods industries
(appliances, furniture and mattresses) and buying groups,
including a number of Tempur Sealy retailers.
The new program includes progressive profiling and session
analytics; pre-made promotions; automated Facebook posts;
email re-marketing tools; and end-to-end security with the
latest privacy and compliance features.
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others. Topping the list are smaller,
flat-packed products such as barstools,
desks and juvenile beds. “These products are easy to ship, and they’re available from suppliers that already have ecommerce programs in place that easily
interface with retailers’ systems.”
To help retailers gain more experience with e-commerce, BrandSource
has begun testing a new “endless aisle”
program with a few key suppliers. In
an “endless aisle” program, consumers
have the ability to order products from
a larger catalog of products than is usually shown in store for delivery directly
to their home.
An “endless aisle” promotion that
BrandSource launched this spring fea-
ADAPTING TO
SHOPPING MOBILE
As mobile usage becomes ubiquitous,
the path to purchase for products of
all types is becoming less defined.
Today’s shoppers are always
connected, well-informed and often
quick to convert both digitally and instore. The traditional shopping phases
still exist, but once smartphones
are introduced, behavior shifts, as
explored in a new eMarketer report,
The Changing Path to Purchase: What It
Means to Add Mobile to the Mix.
Broadly speaking, today’s shoppers
crave consistency. When Internet
users in North America were polled
by the research firms Magnetic and
Retail TouchPoints in April 2015, 59%
of respondents cited consistency
between digital channels and in-store
as the most important part of a retail
experience, while consistency across
devices was vital to 54%. When retailers
in the same study were asked about
information provided to customers
along the shopping journey, only 36%
claimed to be offering a seamless
experience across mobile and desktop.
Overall, mobile is having a striking
effect on shopping behavior in all
settings, and it is no longer the sole
province of out-and-about smartphone
users or those buying inexpensive
products or services in short windows
of time. What consumers want is
changing and retailers have to keep
up, concludes eMarketer.
16
HGO merchandiser
tures barstools from Ashley and Amisco.
Twenty models are available for viewing
in a small store display but, if a consumer wants to see more, a larger offering
of 100 barstools also can be accessed
through a nearby touchscreen. Currently, 25 BrandSource retailers participate
in the program, and the response has
been “amazing,” Vancura said.
“A lot of furniture and appliance
stores, especially in secondary markets,
have very limited space, so they can’t
possibly display the entire range of
products that people might be looking
for,” Vancura said. “Through their websites, they have the ability to show consumers a much larger assortment. We
expect to run similar programs in other
categories such as youth furniture, storage and bookcases as time goes on.”
In many cases, these are categories
furniture stores have exited because
of space constraints, he added. “And
now they have a chance to get back
into them.”
As part of its mission to drive traffic
and sales for members, the Mega Group
and BrandSource teams are constantly
looking for other new ways to leverage
technology — both in-store and online. “We strive to support our retailers
through the national BrandSource.ca
site and keep them up to date with the
latest tools they need to stay competitive,” said Vancura. “At the same time,
retailers need to be digitally active in
their own markets, establishing a strong
social media presence and keeping
their websites and social media channels fresh with new, engaging content.”
In addition to content, success in the
digital arena also requires a reallocation
of marketing dollars, Vancura added.
“Traditional media alone won’t cut it
any more. Retailers need to be steadily investing in content marketing, SEO
optimization, Facebook ads and other
platforms to get their messages in front
of consumers. They don’t necessarily
need to spend more money on advertising, but they do need to reallocate a
significant percentage of their dollars
to digital channels.”
GETTING IN ‘SYNC’
For big ticket purchases, it’s no secret
that the majority of today’s shoppers
start their product research online,
said Randy Goldstein, executive vice
president of e-commerce for Blueport
Commerce. “But what many may be surprised to find is that the opposite is also
true: While consumers are becoming increasingly comfortable completing big
ticket purchases online, in many cases
they are still visiting retailers’ physical
stores to touch and feel the product.”
As a result, he said, “It’s more important than ever for retailers to provide
necessary tools to enable consumers to
transition seamlessly between physical
locations and digital assets.”
In today’s world, the consumer is going to interact with a variety of sales
platforms before making a purchasing
decision, particularly a big ticket item
like furniture, where the path to purchase is relatively long and complex
and filled with different touch points,
said Goldstein. “They’re interacting
with retailers’ websites, mobile apps,
social networks and physical stores. In
this environment, the right technology
becomes an enabler to bring all those
worlds together.”
A leading provider of e-commerce
technology and services, Blueport operates the furniture.com website, and
also provides e-commerce platforms
for Leon’s, The Brick, Rooms To Go and
other leading retailers in Canada and
the United States. Blueport Commerce
offers a variety of tools to help brickand-mortar retailers more fully engage
with consumers, including Store Sync, a
patent-pending, cloud-based technology
that links a consumer’s online and instore shopping experience so that it can
be accessed at any time on any device.
“The fact that consumers still want
to visit stores to see products is a huge
advantage for traditional retailers,” said
Goldstein. “They need to capitalise on
that by having tools in place that enable
them to meet the consumer at any point
along their shopping journey.”
According to Forrester Research, furniture purchased online in the U.S. is
growing at a rate of 14% annually and
will reach 7.6% of total category sales in
2018. While Canada’s growth may not
be quite as robust, data shows that Canadian e-commerce in general is rapidly
catching up to U.S. levels — and furniture is keeping pace.
In its newly published Annual Retail
Trade survey for 2014, Statistics Canada
reported furniture and home furnishings stores had combined e-commerce
sales of $295.9 million – up 19.4% over
the $247.7 million sold in 2013 and almost three times greater than the $98.3
million sold in 2012 – the first year for
which these figures are available.
E-commerce accounted for 1.8% of
the $16.8 billion in sales generated by
furniture and home furnishings stores
in 2014 – up from the 1.2% of the $16.2
billion in sales the year before.
Still, when it comes to omnichannel
commerce, the industry on both sides
of the border still has a long way to go.
In its 2015 benchmarking study, Blueport Commerce found that only 69% of
North America’s leading furniture retailers (those over $50 million in annual
sales) are e-commerce enabled. This
percentage pales in comparison to most
other retailer categories, in which 100%
of top retailers have been e-commerce
enabled for quite some time, the company said. And e-commerce adoption
by smaller retailers is much lower due
to the capital, time and manpower required to develop and manage an online
sales infrastructure.
“Some Canadian furniture retailers
are well on their way to omnichannel
commerce while others have done little
or nothing in this area,” said Goldstein.
“But it’s become clear that inaction is
no longer an option — furniture retailers of all sizes need to begin to develop
these new capabilities online if they’re
going to compete in tomorrow’s marketplace. Nearly every other sector of retail
has met this new standard and though
furniture retailers may not like it, con-
sumers’ expectations have been reset
accordingly.”
Retailers’ ability to thrive in this new
environment involves new ways of looking of both sales and marketing. “You
need to be thinking about how you market in a digital world. What are thirdparty review sites saying about you?
How do you rank from an SEO perspective? How are you using email and paid
search to reach out to perspective customers? While the e-commerce piece
is part of this equation, thinking about
digital retail more holistically is going
to become more important as customers shift to these new channels exclusively for product discovery.”
According to Goldstein, there is a
core list of “must-have” features furniture retailers need to establish an effective e-commerce presence. They include
responsive design, localised shopping,
in-store inventory lookup, consistency
between online and in-store pricing and
promotions, and real-time delivery and
pickup dates.
If a retailer has a store in more than
one market, its web platform also must
be capable of geographically tailoring
data so it reflects exactly what’s available in each individual customer’s locale. The Blueport e-commerce platform
has technology that automatically detects a user’s geography so information
relating to product, pricing, availability
and delivery schedules is all localised.
In addition, retailers need to have a
system in place that compensates commissioned sales associates for their efforts. “It can be a big point of friction if
salespeople find that they’re losing sales
to the store’s web site,” Goldstein said.
TEN STEPS TO E-COMMERCE SUCCESS
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Develop a unique brand around your product or service
Build an easy-to-use and effective website
Optimize your site for Google Search
Set up a merchant services account and payment gateway
Provide quality customer service and a solid return policy
Offer some kind of free shipping, permanently
Implement a product review system
Hire a dedicated product specialist for online content
Create a community using social media
Invest in digital advertising, such as Google AdWords or Facebook Ads
“Instead, if they contribute to the sale
by providing the customer with information or help at any point — either by
talking to them in store, on the phone, or
through a chat function or social media
— they need to be compensated so that
the web is seen as an ally rather than a
competitor.”
With Blueport’s Store Sync tool,
Goldstein added, sales associates have
the ability to access shoppers’ online
browsing and cart histories via tablet
computers. “And with this information,
associates can create a personalised
experience for the customer by more
effectively answering their questions,
offering additional insights and guiding
them toward an eventual purchase.”
Tablets can be a powerful tool for
sales associates, Goldstein said, since
they also provide instant access to the
retailer’s entire inventory and an easy
way to show consumers the wide range
of options that’s available beyond the
store floor. “We hear from Leon’s and
The Brick sales associates that they are
constantly taking visitors through their
respective web sites to show them the
complete range of appliances and electronics they sell because they don’t have
enough space on the floor to show every
single model,” said Goldstein.
If a customer leaves a store without
making a purchase, Store Sync also provides sales associates with new options
for sharing additional information
and photos with consumers via email.
“In the past, most ‘be-backs’ never returned to the store. Now, through the
use of technology, sales associates can
keep the lines of communication open
and help prospects find the products
they need.” HGO
A regular contributor to Home Goods
Online, GARY JAMES is a freelance writer
based in Chapel Hill, North Carolina.
He spent over 20 years with Furniture/
Today, serving as case goods editor and
special projects editor, directing the editorial content of Leather Today, Bedding
Today, Global Textiles Today and other
supplements and sections. He contributed our examination of e-commerce –
The Sleep Giant Awakens – to the Spring
2015 edition of the Merchandiser.
SOURCE: WEB4RETAIL.COM
HomeGoodsOnline.ca
17
ON RETAIL
Winning the
TALENT WAR
Here are Donald Cooper’s eight essential steps
to attract, lead and engage a top performing team!
Something every retailer needs to be successful.
T
BY DONALD
COOPER
18
HGO merchandiser
HE REAL BATTLE IN BUSINESS
today is the battle for talent. If we
win that one, the battle for loyal
customers and healthy profitability is a lot easier. Whether
your business is large or small, not having the
right people in every position carries a huge
bottom-line cost in lost business, inefficiency,
missed opportunity and frustration.
The talent crunch is real and will last for
decades. In less than 10 years’ time, we’ll see
many businesses fail because they’re unable to
find the talent they need.
We become what we hire. You can’t build
an extraordinary business by hiring ordinary
people. So we need to attract and hire extraordinary talent – not just ‘bodies’. Then, we
must train, inspire and empower and engage
them to WOW our customers, achieve worldclass operating efficiency and grow our bottom line.
Everyone on our team must be clear about
our customer promise, our direction and our
values. They must be committed to specific
outcomes, be held accountable for their performance and rewarded for their success. Nonperformance must be dealt with promptly and
firmly. Lack of accountability and failure to
deal with non-performance are two of the biggest problems in many businesses today. So, we
must all manage smarter.
These eight steps to attracting, leading and
engaging a top-performing team deliver a
clear and effective process that will make you a
world-class recruiter, a world-class boss – and a
world-class business.
So, here they are: the eight essential steps to attracting,
leading and engaging a top-performing team.
STEP 1
Create ‘clarity’ about six things.
As a business owner, leader or manager, your first job is
‘clarity’. You hire people to help you do something and to
become something so, if you’re not clear about six specific
things, you won’t know who you need to hire and how you
need to train and develop them. So, as a business owner,
leader and manager, you must be clear about these six
things:
1.
Who your target customers are and the compelling
value and experiences you commit to deliver. What
your ‘brand promise’ and ‘brand personality’ are.
2.
How you will communicate and promote your value
story in a crowded and cynical marketplace. There’s no
point being the best if you’re also the best kept secret.
3.
The extraordinary future that you commit to create.
What, where, how big and how different your business
will be in three to five years (your Vision).
4.
How you’ll get there. Specifically, year by year, what
action will you commit to take (your Mission).
5.
The extraordinary bottom line you commit to
generate...and,
6.
How you commit to behave along the way (your
culture, values, ethics and standards).
Simply put, you need to know who you are and what
you commit to become. Most businesses lack this kind of
clarity – and it’s killing them. Are you clear about these
six things in your business?
STEP 2
Take ‘ownership’ of the problem.
Sadly, many business owners and managers have convinced
themselves that, “You just can’t get good people anymore!”
They’re in denial and they’ve given up! The truth is the
best people have to work for somebody. The problem is you
have to deserve them. So, take ownership of the problem
and become the kind of business that the best people want
to work for. Here’s a simple two-step process to make that
happen that will take two pieces of paper and 40 minutes of
your time.
First 20 minutes: Sit down with a few of your best people
and describe on one piece of paper the kind of business
in your industry, in your market, that the very best people
would want to work for. How would that business recruit, pay,
train, develop, mentor, thank, reward, honour and celebrate
its people? What kind of values, benefits and culture would
it create? How would it ‘feel’ to work there?
Second 20 minutes: On a second piece of paper, write down
all the things you need to get off your behind and do to
become the kind of business that you just described. Then
determine specifically what will be done, by whom, by when
to make it happen.
STEP 3
Document the specific skills, knowledge,
qualities and experience required to do each job
wonderfully…now and in the future.
Finding great staff is like looking for a needle in a haystack.
But it’s much easier to find the needle if you know exactly
what a needle looks like.
Create a ‘job description’ for each position in your
business. Writing job descriptions is a pain but you never
really understand a job until you go through this, just like
you never know what shape your car is in until you get out
a bucket of soapy water and wash your own car. You need to
get ‘up close and personal’ with every job in your business
before you can effectively hire anyone to do it. For help in
writing job descriptions, check out The Job Description
Handbook by Margaret Mader-Clark.
On a scale of one to ten, use the tool below to determine
the importance of each of the ‘Seven Key Success Factors’
for each job or position in your business.
1.
Talent.
2.
Knowledge, skills and experience.
3.
Positive attitude and personality.
4.
Judgment and maturity.
5.
Ambition.
6.
Physical requirements.
7.
Fit with our culture, values & standards.
BONUS THOUGHT: Hire for the future – not just for today.
Think about how will each job and the entire business change
in the next five years. What different skills, knowledge and
experience will be required?
STEP 4
Where do we find people with the skills,
knowledge, qualities and experience we need?
The people you need are one of two places. They’re already
working for you or they’re someplace else. You may have
talented people on your team right now that you’ve overlooked. They may be in the ‘wrong’ job and performing badly.
They may have been overlooked for some other reason. Age
or gender biases may be clouding your view of human }
HomeGoodsOnline.ca
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potential. Identify your stars
and those with potential. Coach
them, challenge them, reward
and encourage them.
On the other hand, you likely
have some non-performers with
no potential that you’re not dealing with. They’re dragging you
down, driving good people nuts
and hurting your bottom line.
Deal with them.
Sit down and talk with each
non-performer. Tell them specifically what your concerns are and
ask if something is preventing
them from doing the job as it
needs to be done or from honouring the values and culture of
the business. Get clear commitments as to how they’re going to
improve and by when. Document
the commitments and follow up.
Acknowledge progress and deal with failure to perform.
When looking outside for great people, here are ten tips
to think about:
STEP 5
Get the interview and
screening process right.
Ask the right questions!
Have a few of your top
performers interview
candidates. If your
best people give them
a ‘thumbs down’,
pay attention.
1.
Where are the people you need working or living right
now? How can you reach out to them?
2.
Get your existing staff to help. Good people know
good people. Offer a financial incentive for finding
good employees who stay for a specific length of time.
3.
What about former employees? Often good employees
who leave for some reason are even better when they
return.
4. Internet job posting.
5.
Industry associations, newsletters or magazines.
6.
Ethnic or cultural associations with connections to
people with specific backgrounds or skill sets.
7.
Build special relationships with trade schools or
colleges. Speak at their career days. Serve on their
advisory boards. Sponsor competitions or annual
‘Awards for Excellence’ at those schools.
8.
Are there job functions that could be outsourced?
9. Traditional job placement bureaus.
10. Think outside the box.
Here are a few examples of ‘thinking outside the box’. A
Winnipeg sheet metal manufacturer has been successful in
giving street people an opportunity. Facing a chronic shortage
of bike mechanics, a group of bike shops in Toronto partnered
with an organisation committed to helping at-risk youth. Now
each year, together, they train 70 street kids to be qualified
bike mechanics. Dumar Industries, a company that makes
parts for specialized armored vehicles hires military veterans.
What might ‘outside the box’ look like for your business?
22
HGO merchandiser
Screening out the people who are
not a good fit for the job or for
your culture, while exciting great
people about the opportunity is a
challenging task. Nobody much
likes interviewing job candidates.
My suggestion is to create a
script of 10 to 15 questions to find
out if candidates have the talent,
experience, attitudes and values
you need.
After asking specific questions to determine if they have
the required job-specific skills and
knowledge, ask them a few general questions like:
1.
What did you like and not like about your previous
jobs? Why did you leave?
2.
What would you like to get out of this job?
3.
What would you like to get out of your career? What
would you like to be doing in three years?
5.
What would make this a great working experience for
you?
Have a few of your top performers interview candidates. If
your best people give them a ‘thumbs down’, pay attention.
Have candidates actually perform some of the tasks that
the job requires to see if they can do it. We’ve all hired people
who are great talkers, but who can’t do the job. Screen them
out now!
Ask for and check references. Yes, it takes time to do
this, but it can save you a lot of grief. Tell the reference the
specific job that the candidate is applying for. Then, you can
ask a number of specific questions about the candidate or
you can simply ask, “Would you hire this person back if they
reapplied to your company?” If they answer no, ask them
what their concerns would be.
BONUS TIP: Never hire anyone after just one interview. That’s
like asking someone to marry you on the first date. You don’t
know them well enough yet.
STEP 6
The right introduction and ongoing training
and communication.
Get new people off to a good and welcoming start. The week
before a new person starts an announcement should go
to everyone in the department saying who the new arrival
is, what they’ll be doing and a bit about their business
background and who they are as a person. Invite everyone
to welcome the newcomer.
Have their workplace ready for them on day one.
Of course, every business should have a New Employee
Welcome Booklet that describes the company’s history,
awards won, special achievements, statement of purpose,
statement of values, list of rules, commitment to physical
and psychological safety and anything else a newbie needs to
know to hit the ground running. Smart companies also assign
a wonderful team member to be a ‘guide’ to answer questions
and help the new person navigate their new environment.
I believe strongly every new employee should receive a
tour of the entire business so they see the bigger picture and
can better understand where their job fits into that picture –
and, therefore, why their job is important.
Create a tailored training program for each new employee
based on what they already know and what they need to
know. Then, make sure training and development is an
ongoing part of every job. You can’t grow your business
without growing your people.
Communication is a two-way street. Sit with each
employee at least twice a year to ask them how they think
the job is going, where they’d like to be in two to three years
and what additional training and coaching they need to
make that happen. Ask them what they want their life to look
like in three years and how you can help them achieve that.
Create quarterly ‘Idea Fests’ in each area of the business
where for a few hours each team member is responsible for
delivering at least one idea to serve customers better, to be
more safe, more efficient or better communicators. Rewards
should be given for ideas that work.
STEP 7
Empowerment, urgency and accountability!
Stop micro-managing your people. If you have to micromanage them, it’s a sure sign either they’re the wrong people
or you’re an ineffective manager. You need to find great
people, create clear expectations then train, coach, reward
and encourage them. Create a culture of joy, respect and accountability – and then empower them to do their job.
And how do you create a culture of urgency and
accountability? Work with your team to agree on clear and
specific outcomes. Make sure they know why their role is
important and then measure performance. Be open to and
respect the ideas of others. Remember that your way isn’t
the only way.
Businesses don’t die from a single shot to the head. They
die slowly but surely from a 1,000 uncompleted tasks. So,
when you assign a task always ask, “By when can we agree
that this will be completed?” Document the commitment
and always follow up. Reschedule dates when necessary but
never create ‘orphans’. An ‘orphan’ is anything that you’ve
asked someone to do that doesn’t have a specific completion
date attached to it.
Another way to improve accountability and urgency is
to stop talking about ‘goals, targets, aims and objectives’ in
your business. These are all weak and wishy-washy words
that leave way too much wiggle room to not perform. Replace
all of them with one powerful word – commitments. There’s
a big difference between a goal and a commitment. When
we change our language, we change our culture. So, create a
culture of commitment.
STEP 8
Acknowledge, reward and celebrate success
Recognise and reward top contributors, encourage and
develop those with potential and invite poor performers to
‘move on’.
1.
Pay more and expect more. The best people never
work for the least amount of money.
2.
Create a culture of celebration. Celebrate birthdays,
special occasions and achievements. Send a card to
each person on your team on the anniversary of their
employment. Thank them for one more year of sharing
the passion, vision and commitment of the business.
Most people remember the day they started working
for you…and they hate it when you don’t. Honour
individuals – as well as the team – with titles, business
cards, awards, dinners. Look for reasons to celebrate.
Create a culture that combines commitment, urgency
and joy.
3.
A ‘thank you’ every day. According to surveys, one
of the main reasons people stop trying is that they
believe they don’t make a difference. If you got
‘thanked’ every day, how could you ever believe that
you don’t make a difference? If you have people who
never do anything worth ‘thanking’ them for, pay
attention…they’re a problem. Figure out how to ‘fix’
them, or invite them to move on.
IN CONCLUSION: So, there you have it. Eight clear steps to
creating a top-performing team. Which part of the process
do you need to work on first? Then, what will be next and
next after that? Remember, the real battle in business today
is the battle to attract, engage and retain talent. If you win
that one, the battle for loyal customers and a healthy bottom
line is a lot easier. HGO
A regular contributor to Home Goods Online, DONALD
COOPER has been both a world-class manufacturer and
an award-winning retailer. Now a Toronto-based business
speaker and coach, he helps business owners and managers
rethink, refocus and re-energize their business to create
compelling customer value, clarity of purpose and longterm profitability. For more information, or to subscribe
to his free, monthly management e-newsletter, go to www.
donaldcooper.com
HomeGoodsOnline.ca
23
BEING GREEN
Andrew Tepperman,
the third generation
leader of the family
owned and operated
Tepperman’s Furniture
is a firm believer in the
benefits of being a good
environmental steward.
Being a good steward of
the environment is not
just the right thing to do.
It can also generate a real
return on investment if
done properly. It’s also
something that will get
you accolades from your
peers in the community
as Andrew Tepperman
discovered.
BY MICHAEL J. KNELL
Tepperman’s –
green
K
ERMIT THE FROG ONCE SANG: It’s not easy
being green. When he wrote that line for the
work’s most famous Muppet, Jim Hensen probably didn’t realise there would be an enterprising young furniture retailer from Windsor,
Ontario who figured out that being green would not only
enhance his family company’s reputation but would make
money doing so. Not only that, his efforts would be award
winning as well.
Earlier this year, the London Chamber of Commerce
presented its Environmental Leadership Award to Tepperman’s Furniture, the now five-unit regional chain lead by
third generation president Andrew Tepperman. The ac-
24
HGO merchandiser
colade is part of the chamber’s London Business Achievements Awards program, which is one of the largest and
most prestigious in the country.
In his address to the 1,200 or so members of the business elite from across southwestern Ontario who attend
the awards gala, Tepperman noted environmental sustainability is a key element of the company’s ten-year vision
and central to its continuing success.
“Reducing our energy consumption, minimizing our use
of landfills and producing less garbage on the whole will
help us achieve our environmental sustainability goals,” he
said. “Our teams have worked hard to create company recycling programs, retrofit LED lighting into our showrooms
Tepperman’s London store was the winner of the environmental
leadership award from the London Chamber of Commerce earlier
this year. The store, which opened in late 2008, received the first
Don Smith Commercial Building Award for environmental sensitivity,
design and construction two years later.
and warehouses and installing foam emulsifiers. We know
that stewardship of environmental sustainability has no end.”
In an interview with Home Goods Online, Tepperman
noted being stewards of the environment is something of a
family tradition. “I think this all started with Grandpa Nate
who founded our business in 1925 going door-to-door on
foot. He had a zero carbon footprint!” he chortled. “Actually, he couldn’t afford a car, so I’ll use that story for now.”
While the award was given to the London store – which
opened in late 2008 and received the first Don Smith Commercial Building Award for environmental sensitivity, design and construction two years later – the environmental
practises used there are also found in the company’s other
units in Windsor, Chatham, Sarnia and now, Kitchener.
Tepperman revealed that within the company’s ten-year
2025 Vision are six Guiding Principles with one being environmental leadership. “Each department, whether you’re
in I.T., warehousing, or sales will incorporate these six
principles into their annual strategic plans,” he explained.
“So, these environmental initiatives are company-wide. We
do have specific tests in various locations like electric car
charging stations in Kitchener and solar we’re planning to
test in London.
“Each quarter when I do my town halls in each store, we
talk about what we done with environmental sustainability
during the last period and new initiatives going forward,”
he continued. “For Tepperman’s, it’s not just about helping
the environment, it’s about being a leader in environmental
sustainability.”
Each of the five stores also has their own robust internal
recycling program. “It’s everyone’s responsibility to find
ways of reducing waste and new ideas to recycle,” Tepperman said. “For example, one store asked why we were printing three copies of every order. It turned out we didn’t need
to file one copy simply by storing the digital version. That
alone saved hundreds of thousands of pieces of paper. Sustainability is a feel-good thing but it also can save money.”
It’s also about measuring the
Andrew Tepperman
results, which is why the London
(at left) and the team
store was honoured by the Chamfrom the Tepperman’s
ber of Commerce this year.
store in London celebrate
Last year, Tepperman’s divertbeing presented with
ed 30 tons of plastic, 520 tons of
the award for award for
cardboard and 312,000 cubic feet
environmental leaderof Styrofoam from local landship by the London
fills in London. It’s also about
Chamber of Commerce
being open about its efforts. In
and its London Business
a partnership with Waste SoluAchievements Awards
tions Canada, Tepperman’s has
program earlier this year.
launched a web site available
where the public can review accurate tracking of the waste
disposed of by the facility, which houses both an 85,000
square foot store and a 100,000 square foot distribution
centre. (teppermans.wastetracking.com).
Across the company, Tepperman said they specifically
look at three areas: reducing energy consumption, minimising use of landfills and producing less garbage. “Each
area is measurable,” he said. “Whether going from 250,000
pieces of paper to 125,000 or retrofitting our 50w lights
with 8 watt lights and seeing energy reduction drop by 65%
– everything regarding environmentalism is quantifiable.”
This also means each area can produce a return on investment (ROI) as well. “Some items, like a foam emulsifier may have a 1.5 year ROI while others like LED parking
lights may be 2.5 years,” Tepperman pointed out. “But the
length of time is not as important as whether it fits into our
strategy of reduction and conservation. We’ve also partnered with our recycling company whereby we can see –
online – what percentage of everything we sent them was
actually recycled. To date, we’re at 76% and our plan is to
get to 90%.”
The third generation full-line furniture retailer has plans
to further solidify its environmental stewardship. It is currently looking to participate in the solar FIT program }
HomeGoodsOnline.ca
25
Last year, Tepperman’s diverted
30 tons of plastic, 520 tons of
cardboard and 312,000 cubic feet
of Styrofoam from local landfills
in London.
through the Ontario Ministry of
Energy – which will see solar panels installed on the roof of at least
one store. It installed electric car
charging stations at its recently
opened fifth store in Kitchener and
is also seeking out partnerships
with stakeholders in higher education to help expand their leadership
in this year.
The company has partnered with
the master’s degree program in environmental sustainability at the
University of Western Ontario and taken on one of its students on a four-month co-op program. Though based in the
London store, the focus will be on company-wide opportunities. “For example, we may ask them to develop an innovative mattress recycling program, including how it will be
executed and the ROI it would generate,” Tepperman said.
“Or we may look at how they can improve how we communicate our environmental initiatives to the general public.”
In fact, Tepperman believes communicating their efforts will be great marketing for the company, appealing
to consumers who hold similar values about environmental
protection.
“I met with the local Junior Achievement a while ago
and during a tour of the store, they were amazed at how we
recycle foam using an emulsification machine,” he recalled.
“Their first reaction was ‘wow, we didn’t know you did this
and this is the type of thing that would make us want to do
business with you’.
“We already communicate this on our front entrance recycle bins by stating how much cardboard, foam and plastic we prevented from going into the landfills last year, “
he continued, “Going forward, our plan is to better leverAndrew Tepperman
(left) and Tepperman’s
team member Allan
White show off the
company’s polystyrene
densifier, which can
compress 50 cubic feet
of what is commonly
called Styrofoam down
to one, which is then
sold to a distributor
who re-purposes it.
26
HGO merchandiser
age the digital platforms like our web site and social media. Long term I would like to have a live feed or at least
a more timely update on our sustainability results posted
with greater frequency.”
A long-time member of the North American Home Furnishings Association – an industry association of furniture
stores based in California – Tepperman was featured last fall
in an issue of the Retailer Now magazine because of a ritual
practised most Tuesdays that is known as Styrofoam Night.
It’s not promoted to customers but it does generate a
small profit. According to the report, a few team members
gather the boxes and containers piled high with all the
polystyrene – commonly called Styrofoam – collected that
week and put it into a machine that grinds up the material,
condensing a truckload of waste into management threefoot bricks. The condensed material, previously used to
pack all of the furniture and appliances delivered to customers every day, is then sold to a company that keeps the
environmentally indestructible polystyrene out of the landfill by recycling it.
Andrew Tepperman learned of the machine while touring Houston’s Gallery Furniture a few years ago. He ordered one immediately upon returning home within three
months Tepperman’s already small environmental footprint was getting smaller.
“One of my better investments if I can say so myself,” he
told Retailer Now. The company now makes about $2,000 a
month recycling the polystyrene that once went to landfills.
He firmly maintains being a good environment steward
is a vital part of being a successful retailer.
“We believe that we can run a successful business and
still do the right thing,” he said. “Bottom-line is that if we
can source an item that has less negative environmental
impact or produces less waste at a reasonable cost, we will.
When the entire company has this in mind, the momentum
is incredible and it becomes a sustainable practice. It’s not
forced. What I’ve noticed is that many of our younger employees and potential new recruits gravitate to this. It’s
important.”
Tepperman’s has also been nominated for the Sustainability Award given by the Ontario Business Achievement
Awards program. HGO
MICHAEL J. KNELL is the publisher and editor of Home Goods
Online and all of its platforms. He has observed, researched
and written about Canada’s furniture and mattress industry
for the past three decades.
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27
PRODUCT STRATEGIES
What’s hot in
UPHOLSTERY?
While walking the floor at CFS recently, it
became apparent bright, bold pieces – especially
those with sleek, soft frames – were no longer
novel or rare. As the world has got smaller and
the consumer more fashion-savvy, manufacturers
began designing fun pieces that are versatile,
mobile, practical and most importantly stylish.
BY ASHLEY
NEWPORT
28
HGO merchandiser
T THIS YEAR’S CANADIAN FURNITURE
Show, renowned designer and television personality Steven Sabados
took the stage to walk attendees
through a fun and informative lesson on
“what’s in, what’s out and what’s hot.” Although
you might think a well-known designer would
be not quite a step ahead, but certainly a step
aside of typical market trends, his style advice
had, surprisingly, already been heeded by
manufacturers who know glam and gloss as
well as natural tones and pastels are the trends
to watch for.
It’s no secret the world of furniture has
changed. These days, the average consumer
has been emboldened by literally scores of
fun and funky design shows on TV, endless
Pinterest boards, Instagram posts and Internet
access to Asian and European pieces they may
have never discovered five or ten years ago.
While this has certainly presented challenges
for upholstery manufacturers, it also created
opportunities. Today, they provide retailers –
and, by extension, their customers – with bold,
fun and functional pieces created to satisfy
everyone’s inner designer. More fortunately
still, a lot of manufacturers are more than up to
date on what’s hot and are delivering the goods.
WHAT’S HOT IN COLOUR?
“Definitely blue,” says Angelo ‘J.R.’ Marzilli,
executive vice-president of Décor-Rest
Furniture, the Woodbridge, Ontario-based
stationary upholstery specialist. “We’re seeing
all shades of blues in all sorts of patterns, like
paisley and chenille. I think every colour makes
a circle and it’s time for blue to come back.”
At CFS, the blue resurgence was readily
apparent and the renaissance makes sense.
Blue is a bolder neutral. It’s more exciting than
a beige or brown (and can straddle the line
between true blue and grey-blue) but still easy
to work around when furnishing a room. Unlike
a bright red sofa or pink velvet ottoman, it’s
non-threatening (and significantly less bold).
Other manufacturers have noticed a shift
towards brighter and less orthodox shades in
general.
“There’s an awakening in the Canadian
spirit,” says Karina Sunderji, vice-president of
the Calgary-based Dynasty Furniture. “People
want to be bolder and get away from brown
and grey. We’re seeing a surge in blue, such as
in teals and navies and light shades. Greys are
morphing into blues.”
The transition from grey to blue is
interesting, especially since Sabados boldly
declared that greys – long reigning as the
trendy new neutrals – are on their way out.
Although he was careful to say the colour will
continue to sell and manufacturers are still
likely to produce stormy-tinged upholstery.
“We introduced 20 new grey shades at CFS,”
Sunderji says.
Other experts also agree that, right now, it’s
all about blue.
“It’s still blue and it’s been that way for about
five years,” says Diana Sisto, creative director
for the family owned Brentwood Classics,
the custom upholstery specialist based in
the Toronto suburb of Vaughan. “In home
furnishings, trends last longer than in fashion.
We’re seeing all different shades of blue, such
as deep navies and cloud and powdery blues.”
Others are noticing a thirst for pastels.
“Pastel colours are in as well as blues,” says
Joel Dupras, design and art director for Huppé.
“Even pink, or a pink that’s almost beige.” The
Victoriaville, Quebec headquartered case
goods producer recently launched its firstever upholstery collection in collaboration
with Italdivani, the Montreal soft goods maker
with whom it recently entered into a strategic
alliance.
If the colour can work with a luxurious fabric,
it’s even better.
“We’re going to be showing a deep royal navy
blue on a crush velvet sofa in Las Vegas,” says
Marzilli. “It’s the 7046 S&C line in hot navy. }
Above: Inspired by midcentury Scandinavian
design, the Oslo sofa from
G. Romano is striking in
its simplicity as its clean
lines, organic shapes
and natural hard wood
base make it ideal for a
retro themed interior. It
is available in a variety
of patterns and colours
and features foam-filled
cushions on its seat and
back.
Left: With 21 available
pieces, the Zane from
Stylus Furniture is a
contemporary modular
sectional finished with
a sleek metal leg. It can
be configured to fit any
space or as conventional
sofa, loveseat and chair
and is offered in over 500
fabrics – including this
hue of blue.
HomeGoodsOnline.ca
29
The Baz chair from Brentwood Classics is
covered here in a fabric called Bae Pebble.
Above: Hues of blue, such
as the Henry New Aqua
fabric seen here on the
new Moulins chair from
Brentwood Classics, seem
to be the current trend
leaders on furniture floors
across the country.
Top: The L706 is part of
Superstyle Furniture’s
LeatherBrand collection.
Seen here is the twopiece sectional which
boasts classic styling,
feather-blend seating and
a top grain Italian hide
with ‘Savage’ finish. Other
pieces are also offered.
30
HGO merchandiser
Our glamour has never dissipated and [demand]
has never gone down. People love that look.”
(S&C is Steven & Chris, as in Steve Sabados.)
WHAT ABOUT STYLE?
“Styling is quite sleek,” says Dynasty’s
Sunderji. “Transitional contemporary is big
and oversized and overstuffed is gone. People
are more cognizant of style because they watch
HGTV and read style guides. We’re seeing
cleaner and thinner track arms or arms with a
flare and also lower-profile seating and that has
a lot to do with the growth of the condo market.”
Another interesting trend is the demand for
more configuration styles.
“People are looking for modular ability,”
she continues. “They might want to transition
from a condo to a house and they want a frame
that can go left or right or be ‘U’ shaped. They
want to build their own configuration, so that’s
a program that’s more desired by retailers.
We’re also seeing armless sofas and armless
chairs and floating ottomans. We’re seeing
configuration as another element, just like style
and fabric.”
Meanwhile, manufacturers
who haven’t traditionally made
product in the category are now
embracing motion upholstery
and incorporating it into their
offerings.
“We’re working on motion
sofas and sectionals,” says
Dupras. “We’ll release one
collection in October and
another one in April. The back
and feet will come out and so
will the headrest, but when it’s
closed, it’ll look like a regular
sofa. It’ll be on legs, but it’ll
be as comfortable as a big
motion sofa.”
The focus on size is important, as the
condo market has dramatically changed how
furniture is designed. Most producers still
make generously sized pieces for the rural
and suburban markets, but almost every one
of them has had to work smaller-scale pieces
into their lines – but without losing any of the
comfort.
“In the Canadian and U.S. markets there are
condos everywhere,” says Dupras. “Smaller
spaces need smaller furniture, so that trend will
last for a long time. There also isn’t as much
big house construction in the suburbs. We do
contemporary, so that style fits us. We do a
sectional where you can reverse the seats and
that makes it easy to move because you can
change the configuration. People like a softer
look, or a shape with a little more tailoring.
People aren’t going for a rounder sofa, but a
more rounded cushion.”
That said, there is still demand for bigger
and more luxurious pieces.
“People like really clean-looking large
pieces,” says Diana Sisto of Brentwood. “We’re
getting a lot of inquiries about large scale.
There’s still demand for Euro-style, deep seating
furniture. Restoration Hardware has had a lot to
do with that. [What they have] is stunning and
very clean. Whatever they do, they do it right.”
There has also been a shift towards opulence.
“People want the glam looks,” says DécorRest’s Marzilli. “I think the import market killed
the basic looks. Every big box store would come
out with an import lookalike at a good price
point, but it got boring. People love a touch of
wood, nail studs and curved sofas and curved
furniture.”
Also, mixed metals are still in.
“Sofas are more and more on legs and off
the floor,” says Huppé’s Dupras. “We’re seeing
more and more metal legs and wood legs in }
HomeGoodsOnline.ca
31
Huppé’s first forey
into upholstery
included the
Charles collection
(seen here)
combines a fabric
covered sofa with
a chair in leather.
Its solid birch legs
are available in any
of the company’s
range of finishes.
black with a matte finish. It brings a light feel to
the sofa. It feels more aerial, like it isn’t taking
up as much space even if it isn’t any smaller. It’s
less bulky.”
Golds are also selling well – and inspiring
people to play with mixed looks.
“People like clean, modern pieces that have
sleek and shiny metal legs,” says Sisto. “Gold
and rose gold is still very popular. Brass is
popular too. You can mix metals though and
that was never done before. There are no rules
anymore and you don’t have to re-do everything
[when you get a new piece]. You can be more
eclectic and unique.”
TRENDS AT A GLANCE:
WHAT’S HOT … AND WHAT’S NOT
WHAT’S HOT:
Blues and pastels.
WHAT’S NOT:
Greys, although a lot
of manufacturers,
such as Décor-Rest
and Dynasty, are still
producing them.
32
HGO merchandiser
WHAT’S HOT:
Sleeker, smaller
pieces – especially
those with metal legs.
WHAT’S NOT:
Huge pieces
(although Brentwood
still sees demand
for more generouslysized sofas).
WHAT’S HOT:
Matte metals, such
as metal legs with a
brushed nickel look.
WHAT’S NOT:
Same-same looks
that don’t stand
out. There’s a thirst
for more elegant,
standout pieces.
ANYTHING NEW IN FABRIC?
Although the return of velvets is interesting –
although not surprising if people are indeed
hungry for more luxurious pieces – the
technological improvements in strain-resistant
fabrics are even more so.
“We’re using Crypton Home Performance
Fabric,” says Sisto. “It’s been made available
through U.S. mills and the price is great and the
look is amazing. Coffee or liquid will run right
off it and now you can get Crypton in velvet,
chenille and linen looks. Unlike Sombrella, it
isn’t made with only one kind of fabric. It can be
solution died with fabric from our mills and the
selection is huge.”
Crypton fabrics ensure upholstery pieces –
even fancy white ones – hold their lustre for
as long as possible. They’re also important to
anyone who doesn’t want to sacrifice beauty
for the sake of practicality. Sisto points out
that it’s rare for modern family homes to have
a formal living room. Since the ultra-fancy,
permanently closed off ‘for decoration only’
room is fast becoming a thing of the past,
it’s important for manufacturers to do what’s
possible to provide stain and liquid-resistant
fabrics that allow consumers to live while
maintaining high-quality furniture.
“We’re launching [our Crypton pieces] with
Hudson’s Bay this year,” Sisto says. “There was
a push back in the past because stores would
sell warranties and scotch guard solutions,
so that was a challenge. But this is stain and
odor resistant and really easy to clean. Stores
can still sell dry warranties, but the furniture
is better protected. We have 20 skews of this
fabric. It can be applied to any frame. We have
four patterns in five colours each and we’re
hoping to expand that in future markets.”
WHERE DO MANUFACTURERS
GO FOR INSPIRATION?
When it comes to design inspiration, it’s good
to look beyond the furniture world. Although
people don’t tend to replace their sofas as
often as they do their shirts, trends in the
fashion world – such as mixing metal colours
in jewellery – tend to make their way into case
goods and upholstery.
When manufacturers are hunting for hot
new looks, they tend to look at both furniture
and the runway.
“We tend to see what’s going on ‘on the
runway’,” says Karina Sunderji of Dynasty. “We
look at what’s happening in home and garden
and we look at what’s trending in the European
markets. [What we find in the European
markets] usually has to be modified to suit
Canadian tastes. But knowing colour trends is
huge and that tends to go with fashion. There’s
been a huge step forward for the Canadian
consumer in terms of style.”
Other manufacturers see trends in apparel
make their way into upholstery in more
abstract, but still appealing ways.
“I would say that I see men’s apparel, a
blazer with a pocket square or lapel detail, in
sofas,” says Décor-Rest’s Marzilli. “There are
some similarities because fashion is all about
colour and trending. We love showing sofas
with an accent chair that has a completely
different fabric.”
Other companies look everywhere to discern
what’s happening (or could happen) in the
market.
“We look at fashion, design and architecture,”
says Huppé’s Dupras. “We also look at
magazines and blogs. We do a lot of shows in
Europe and I’ll be in Paris in September. At
those shows, you see accessories and fabric
and you can get inspiration from a lot of
things. We also look at what was done in the
past and find application for our contemporary
style. Old furniture if often well-made and you
can learn about functionality and style and see
how to adapt.” HGO
Above: The Evora
collection from Huppè is
a small-scale sectional
with reversible cushions
and matte black metal
legs as well as contrast
piping around the arms
and the back.
Left: Blue is proving
itself to be the hot colour
for upholstery fabric
these days. The Model
7646 from Décor-Rest
is a good example. Part
of the S&C Collection,
it features loose-back
cushions with box seats,
double-stitching details
and modern metal
feet and is described
as “a true velvet,
with the softest hand
imaginable.”
A regular contributor to HGO Merchandiser,
ASHLEY NEWPORT is a Toronto-based freelance
journalist who writes primarily for trade and
business publications. Her specialties include
food, hospitality and emerging social/business
trends.
HomeGoodsOnline.ca
33
MARKET REPORT
What was hot…and what was not…at the
CANADIAN
FURNITURE SHOW
CFS has undergone a makeover over the last
few years, shortening its once cumbersome
moniker, cutting a day from its run time and
welcoming attendees during the summer
rather than the winter. While it made in-roads
in terms of style, welcomed more beautifully
curated displays and some style-savvy celebrity
speakers this year, attending retailers say they
want more Canadian product and even more
striking exhibits. BY ASHLEY NEWPORT
As always, this year’s Canadian
Furniture Show began with the
presentation of this year’s CHFA Awards
at a dinner held by the Canadian Home
Furnishings Alliance. Seen here after
the festivities are (from left to right):
Stephane Perrault and JC Perrault of
the Montreal-based JC Perreault, 2016
34
HGO merchandiser
Retailers of the Year for Eastern
Canada; Angelo Gallo, president of
Statum Designs, the 2016 Lifetime
Achievement Award honouree; and,
Daniel Johannesson and Michael
Gustavsson of Alberta’s Konto
Furniture/Sofa Land, 2016 Retailer
of the Year for Western Canada.
T
HE 44TH ANNUAL EDITION OF
the Canadian Furniture Show
(CFS) hit Toronto’s International
Centre during one of balmiest
weekends Ontario has seen so far,
welcoming well over 200 exhibitors and treating attendees to some high-profile celebrity
appearances. Always a work in progress, the
show set itself apart from last year’s event by
slicing its runtime to a more compact threeday schedule (running from May 28 to 30) and
doing away with the controversial – and much
maligned, in some circles – Consumer Day.
This country’s only national furniture industry trade event generated a little buzz by
welcoming acclaimed Canadian designer and
television personality Steven Sabados to the
Hall 5 stage to talk about the latest trends in
home décor. The talk notably marked Sabados’
first public appearance since the tragic death
of his business and romantic partner, Chris
Hyndman, shortly after last year’s market.
In 2015, Sabados and Hyndman – who designed pieces for the popular S&C brand and
starred in the popular CBC-TV design show
Steven & Chris — spoke at the show’s inaugural (and last) Consumer Day about what was
hot (and what was not) in the furniture and
décor world.
About two months after last year’s June
show, people were shocked to discover that
Hyndman, one part of the bubbly and gregarious design duo, had been found without vital
signs in a laneway near the Toronto home he
shared with Sabados. After almost a year of silence, Sabados returned to public life to chat
with the CBC about his partner’s untimely
passing and some upcoming design projects
and to appear at the market to give a attendees
a little light-hearted lesson on what’s trending.
Sabados’ talk, moderated by the buoyant
Handstone, an Ontario-based solid wood furniture
maker won the gold in the under 2,500 square foot
booth category during this year’s ‘best display’
award competition held by the International Centre
during this year’s Canadian Furniture Show.
and engaging Cheryl Grant, kicked the show
off on a high note. Appearing on stage in good
spirits, a bespectacled Sabados looked stylish and energetic with a vibrant orange shirt,
dark blazer and jeans. His well-organised
shop talk walked retailers and manufacturers
through a little lesson on “what’s in, what’s
out and what’s hot.”
So, what is hot?
Surprisingly, grey is not. Or at least it’s cooling down. That said Grant and Sabados were
careful not to advise against producing or retailing the once wildly popular neutral.
“We have a lot of grey, so don’t judge if you
go to Décor-Rest,” Sabados remarked. “But
grey has had its heyday. Grey and yellow was
a great combo and it was a great neutral, but it
is a little muddy and depressing and we want
to be happier in our interiors. Grey has been
an important distressed look and it will sell
for now, so don’t panic.”
What’s also out? All white interiors, simply
because they’re not practical for anyone with
children, pets or a habit of spilling red wine.
As for what’s in, Sabados and Grant sang the
praises of neutral pastels that aren’t overly
sweet, bold glamor (pieces that evoke images
of Marrakesh and spices and high fashion),
organic primaries (shades of nature, such as
brown, green and blue) and hot
black (statement pieces that give
rooms a remarkably sophisticated and bold pop).
Sabados said the market seems
to be moving away from primitive
surfaces and finishes, which was
interesting and, perhaps, unexpected. After all, reclaimed wood
and rougher-looking pieces were
still all the rage last year.
“Poured concrete and rough
surfaces [are out],” said Sabados.
“We want something cleaner and easier.”
That said, he and Grant cautioned retailers against panicking. “It can still sell, it’s just
fading out,” Grant added.
In terms of surfaces that work, Sabados
and Grant advised attendees to think about
multi-faceted (such as lacquered walls that
look woven) and artisan surfaces (such as an
exaggerated herring bone floor). The pair also
made the bold proclamation that mid-century
modern is losing its lustre.
“It is a modern, fresh and youthful interior
and the problem is that it can be taken too
literally,” said Grant. “Millennials liked it because it was unfamiliar to them. We still have
some pieces in our [S&C] line because bits
and pieces are still interesting in a space.” }
Cathy Loblaw (second
from right), president
and CEO of Ronald
McDonald House
Charities of Canada,
is seen here accepting
a donation of $10,000
from Carl Mastrovito
and Bruno Pittarelli of
Tempur Sealy Canada
at this year’s Canadian
Furniture Show. Looking
on (at right) is Michael
Vancura of Mega Group/
BrandSource Canada.
HomeGoodsOnline.ca
35
Faux vintage looks are also, Sabados believes, on the chopping block. That said there
will always be room for real vintage looks.
“Vintage is still hot and will continue,” he
said. “The combo of new and old is still hot. If
it’s too manipulated, it doesn’t look as good. I
just feel like I want to clean it.”
Strangely enough, Sabados said that a return to glitz and glam is in the air. “Glamor
used to be lots of crystals and chandeliers, but
this is modern glam and it’s got a lot of warm
metals and gold. It’s high gloss and we haven’t
had glam in focus for a long time. The baby
boomers want this glam interior in their condos when they downsize. We’re moving away
from rustic and vintage,” he enthused.
How are retailers feeling?
Paul D. Schreiter (right),
owner of Schreiter’s, a
single-unit 120-year-old
family furniture store
located in Kitchener,
Ontario wants to
see more Canadian
furniture manufacturers
exhibit at the Canadian
Furniture Show.
36
HGO merchandiser
Every year, retail buyers walk the halls looking for pieces to round out their assortments.
While the show typically provides a healthy
degree of choice, many retailers wished aloud
for broader representation of Canadian manufacturers and more sophisticated booths curated with style in mind.
“My experience has been positive,” says Paul
Arcoite, the owner Urban Settler, a single-unit
operation based in Fernie, British Columbia.
“We have some specific requirements. We’re
looking for Canadian-made case goods. We’re
looking for new trends and styles. I like the Ruff
Sawn handcrafted furniture collection. I like the
fact that the surfaces are finished. I agreed with
[Sabados’] that the unfinished surfaces are fading out. We also manufacture furniture out of
reclaimed wood and we’ve always had a finished
surface, so it has the look and the character, but
it’s a practical finished surface.”
As for whether the show is offering the fashion-forward pieces that Sabados and Grant
talked about, Arcoite says the show hasn’t
evolved too much over the last five or so years.
“It’s about the same. I think Hall 5 looks like
it has better quality [exhibits]. I find there are
just acres of low quality product here and lots
of low quality sofas and tons of mattresses.
Not a lot of effort into building nice booths. I
see a lot of black curtains and people throwing their furniture down on the carpet. It’s not
impressive. I don’t know if this is a service to
the buyers,” he told HGO. “They [Sabados]
talk about curating and maybe [the organisers] could curate this show a little better. Maybe they could do a smaller show with higher
quality product. That’s my opinion.”
Other buyers were also a little underwhelmed.
“I would like to see more Ontario and Quebec manufacturers in the show,” says Paul D.
Schreiter, owner of Schreiter’s, a single-unit
120-year-old family furniture store located in
Kitchener, Ontario. “I don’t know what else to
say about it. The large influence of bedding is
not really why I’m here, I’m here for soft goods
and case goods and lighting, so I would like to
see more furniture than rugs and mattresses.”
“We’re a contemporary house, which is a
small percentage of the products that are
here. They are represented fairly well by a few
firms such as G Romano and Stylus. We’re not
interested in offshore upholstery. [The show]
hasn’t improved over the years,” he continued,
adding, “I think they should lower the rent so
they can get more manufacturers in here. It’s
costly for the smaller manufacturers to get in
here. The location is fine and they’ve made a
huge amount of building improvements in the
way it’s set up for food and bathrooms, it’s a
good show that way.”
Other retailers are relatively happy with
the show and some of its standout booths.
“It’s good,” says Glen Saunders, owner of
Flying Fish, a furniture, home décor and kitchen store located in Nanaimo, British Columbia.
“It’s good to see what’s new and different in
Canada. It’s good to check out Canadian manufacturers, especially with the U.S. dollar right
now. We always try to buy Canadian, so it’s
good to come to this show to see what’s new.”
As for memorable exhibitors, Flying Fish
buyers were also quite taken with Ruff Sawn.
“For me, it’s Ruff Sawn,” says Penny Richards,
Flying Fish furniture manager. “It’s a Canadian company and the owner is just doing a hell
of a good job creating a good product and his
business is growing.”
Like other buyers, Saunders wishes there
were more Canadian manufacturers.
“The main stage is good and the presentations [at the show] are excellent. It would
be great if we could have representation for
some of the other manufacturers,” she said,
noting, “There are a lot of manufacturers in
other provinces that aren’t represented here.
We’d like to see more manufacturers from BC,
Saskatchewan and Manitoba. It’ll help us be
able to buy Canadian.”
The jury for this year’s
‘best display’ award
presented a special
citation to Atelier
St-Jean, a small Quebec
producer for the show’s
best chair (seen here)
which was featured
in the Empreinte
Québécoise display.
What do exhibitors think
retailers want?
Well it’s clear a sizeable portion of buyers want
more selection – particularly when it comes to
Canadian-made case goods and upholstery –
exhibitors have to work with what they have to
attract the myriad buyers who come through
the doors. In order to garner those coveted orders, they have to know which way the winds
are blowing in terms of looks and trends.
Some are, it seems, on the same page as
Sabados, showing that there is indeed cohesiveness among manufacturers, retailers and
designers.
“Trend is a big word, and what people are
looking for are trends, there isn’t just one
trend,” says Douglas Karpman, vice president
of sales for Renwil, the Montreal-based decorative accessories specialist.
“We identify the five major customer categories in the market and they are new traditional, authentic eclectic, modern glamour,
Scandinavian casual and bohemian chic,” he
said. “New traditional is for people like my
son who are watching Game of Thrones, it has
medieval elements. The next one is authentic eclectic and we call it the Downton Abbey
story. Modern glamor is a good niche for the
Canadian market, that’s where you’re adding
the glitz. Scandinavian casual is all the Nordic
colours, like the pastels and other colours that
used to be at IKEA and Target. Bohemian chic
is the bright bold colours and that trend started with FIFA and the Olympics, but now that
colour palette is much more crisp and solid.
“When independents are in the store, we
show them how we can be interior designers
of the store,” Karpman continued. “We show
them how to put everything together. The selling trend is putting everything together in your
store to get value added sales. People want the
mirror and rug and lamp and upholstery all to
come together. It’s about making it easier for
the retailer and consumer. You all want to talk
the same type of design language.”
Other exhibitors, such as Chairtech Modern
Furniture, the Toronto-based resource which
has a permanent showroom in the International Centre’s SOFA (Source of Furniture & Accessories) annex, were happy with the show and
how it’s evolved to serve buyers better.
“It’s been good because of the changes to
the show,” said company president Michael
Rewucki. “Last year it was a change to the summer and we had the public come in and some
people didn’t want it and others were excited
about it. They didn’t do that this year and personally I think any time you can connect with
customers on any level, it’s good. But this year
with the three-day, compacted show, you can
focus more.”
Rewucki also noted said the relatively low
value of the Canadian dollar has been forcing
many throughout the industry, particularly
retail buyers, to think outside the box.
“I think the Canadian dollar is an issue,
but I think because of that, we have a lot of
retailers who are trying to find something different. Not necessarily in terms of design, but
in terms of type of product. They might be
looking for something that’s ergonomically
correct or a high low table for design, but they
want something less expensive that will fit the
need of their customer,” he said.
“About a year and a half ago when the dollar really dropped, we’re starting to see people deal with that by buying better products,”
he continued, adding, “We’re seeing a trend
toward smaller products that are functional,
so tables with extensions and products that
do everything in a small work space. There’s
still a mix of woods and metals. Brass, bronze
and rose gold is still somewhat popular, but it
looks like we’re going away from shiny metals to more matte metals, so maybe a brushed
stainless steel or a nickel finish. People are
taking a bolder step in colours and types of
fabrics.” }
Michael Rewucki,
president of Chairtech
Modern Furniture, seen
here in his company’s
permanent showroom
at the International
Centre, said the
relatively low value of
the Canadian dollar
was forcing many retail
buyers to think outside
of the box when adding
to their assortments at
this year’s CFS.
HomeGoodsOnline.ca
37
What are manufacturers noticing?
Other manufacturers, such as Huppé – who
always operate out of a well-designed display
space – are happy with the show, but would
also like to see more domestic product.
“The people are looking more for the sofas and mixed materials,” says Jean-François
Nolin, president and business development
director of the Victoriaville, Quebec-based
Huppe. “Mixed wood and more fabrics and
Attendance and activity up this year,
CFS OFFICIALS REPORT
ttendance was up compared to 2015 and the feedback received
to date has been very positive, the organisers of the 44th edition
of the Canadian Furniture Show reported recently.
“This year, thousands of attendees continued to feel the effects of
the wave of renewal that swept through the event in 2015, with more
than 65 new exhibitors on the show floor. The visitors’ experience was
further enhanced by the addition of special activities and spaces that
enlivened the 500,000 square feet of show floor set up by some 233
exhibitors,” Pierre Richard, president and chief executive officer of
both CFS and the Quebec Furniture Manufacturers Association, said
in a statement.
Among the new initiatives marking the 2016 edition were two wellattended presentations, one by media personality and designer of the
S&C brand, Steven Sabados, and the other by David Chilton, bestselling author of The Wealthy Barber.
Plus, two unique design spaces were added: the FABX2016 booth
dedicated to window coverings, wallpaper and fabrics, which also
included a special event on Monday, May 30.
Innovative design was featured through L’Empreinte québécoise,
which displayed avant-garde products co-created by designers from
seven companies.
Visitors also enjoyed several relaxation areas including a spa, a
Spanish pub, and a business lounge.
“We are pleased with this 44th edition. We had more visitors and
buyers than last year, the atmosphere on the floor was great, and
reports from most exhibitors we talked to were very positive!” Richard
enthused, although exact attendance figures were not published.
He also noted there was a significant increase in trade visitors from
the United States.
“In short, having gone from a four-day to a three-day event seems
to have intensified traffic in the halls and generated good benefits to
all,” Richard said, adding, “In the next few weeks, phone and on-line
surveys will be conducted with over 10,000 current and past show
participants.
“Our objective is to continue to foster the show’s evolution by
listening to the needs and desires of participants, and by adapting the
best practices of the trade show world to our reality. That is why we
constantly take the pulse of the industry. Our team will continue to
expand the efforts needed to ensure the success and sustainability of the
show. This is and will continue to be our modus operandi,” he continued.
The 2017 edition of the Canadian Furniture Show will be held from
May 27 to 29 at the International Centre in Mississauga, Ontario.
38
HGO merchandiser
more products with concrete and metal.
There’s less wood and uniformity. I like G
Romano and Trica – they’re people I really respect. There are a lot of beautiful booths. I’d
like to see more Canadian manufacturers, and
hopefully a bigger crowd as well.”
Other manufacturers such as Décor-Rest,
the Toronto-based upholstery specialist (and
producer of the S&C label of sofas and chairs)
are also happy with the show and the good energy it tends to evoke in most guests. Interestingly enough, Christina Marzilli, chief operating officer of the family owned and operated
producer noted that, judging by the exhibits
and customer demand, there does seem to be a
shift towards glamor (at least for some buyers).
“The market sounds positive,” she says. “Being an outside showroom, the attendance was
good and everybody was very positive. We
found that navy is popular and people are going
to that and also the teal colours. I find it’s either
very soft and comfortable and casual and natural, or they like the glitz and the glamour.”
CFS isn’t going anywhere
It’s no secret CFS is often overshadowed by
the larger markets in the United States. But
despite rumours and often expressed concerns that the market is dying or going to die
at some point in the not-too-distant future,
regular attendees aren’t anxious to see it go
anywhere. This is especially true for those
who recognise this event attracts a buying
crowd who doesn’t typically attend Las Vegas
or High Point. It also helps the organisers notice what’s trending in the market.
“Retailers are looking to see what’s hot and
what’s innovative. Most of our retailers don’t
go to High Point and Las Vegas, about 85% of
our retailers only come to CFS and they want
to see what kind of deals they can get,” says
Pierre Richard, president and chief executive
officer of both CFS and the Quebec Furniture
Manufacturers Association, which has operated the event since it was founded.
“What seems to be selling well is the cleaner lines and the darker woods and multi-material combos of wood, glass and metal. Ecofriendly furniture is interesting, especially to
the younger generation. There are tastes for
everybody,” he notes. HGO
A regular contributor to HGO Merchandiser,
ASHLEY NEWPORT is a Toronto-based freelance
journalist who writes primarily for trade and
business publications. Her specialties include
food, hospitality and emerging social/business
trends.
INDUSTRY CALENDAR
September 22 to 25, 2016
INTERIOR DESIGN SHOW
VANCOUVER
Vancouver Convention Centre
(West Building)
idswest.com
December 4 to 7, 2016
SHOWTIME
INTERNATIONAL TEXTILE
MARKETING ASSN.
High Point, North Carolina
showtime-market.com
October 22 to 26, 2016
HIGH POINT MARKET
High Point, North Carolina
highpointmarket.org
January 16 to 22, 2017
IMM COLOGNE
THE INTERNATIONAL
INTERIORS SHOW
Koelnmesse GmbH
Cologne, Germany
imm-cologne.com
November 24 to 26, 2016
ANNUAL CONFERENCE
QUEBEC FURNITURE
MANUFACTURERS ASSN,
Omni Hotel, Montreal
afmq.com/en
ADVERTISERS’ INDEX
November 30 to
December 1, 2016
IIDEX CANADA
Metro Toronto Convention Centre
Toronto
iidexcanada.com
Pages 2-3
Phoenix AMD International
41 Butler Court
Bowmanville, ON L1C 4P8
T: 800.661.7313 F: 905.427.2166
phoenixamd.com
Page 11
Tempur-Pedic
Tempur Sealy Canada
145 Milner Avenue
Scarborough, ON M1S 3R1
T: 800.268.4414
tempurpedic.ca
Page 5
Stearns & Foster
Tempur Sealy Canada
145 Milner Avenue
Scarborough, ON M1S 3R1
T: 800.268.4414
stearnsandfoster.ca
Page 15
Magniflex
1000 5th St., Suite 220
Miami Beach, FL 33139
T: 905.481.0940
magniflex.com
Page 7
Zucora
552 Clarke Road
London, ON N5V 3K5
T: 800.388.2640
zucora.com
Pages 20-21
Serta Canada
40 Graniteridge Road, Unit #2
Concord, ON L4K 5M8
T: 800.663.8540
sertacanada.com
January 19 to 22, 2017
INTERIOR DESIGN SHOW
Metro Toronto Convention
Centre North
Toronto
interiordesignshow.com
January 22 to 26, 2017
LAS VEGAS MARKET
World Market Center
Las Vegas, Nevada
lasvegasmarket.com
Page 27
Las Vegas Market
475 S. Grand Central Pkwy.
Las Vegas, NV 89106
T: 702.599.9621 F: 702.599.9622
lasvegasmarket.com
Page 31
Protect-A-Bed
1500 S. Wolf Road
Wheeling, IL 60090
T: 519.822.4022
protectabed.com
Page 44
Home Goods Online
P.O. Box 3023
Brighton, ON K0K 1H0
T: 613.475.4704 F: 613.475.0826
homegoodsonline.ca
HomeGoodsOnline.ca
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