Canadian retailers seeking ways to entice consumers
By Michael J. Knell -- Furniture Today, October 14, 2001
HIGH POINT — The Sept. 11 terrorist attacks won't prevent leading Canadian furniture retailers from attending market this week, but waning consumer confidence is prompting a cautious, deliberate hunt for values by buyers.
Most majors, large independents and the buying groups have their entire merchandising teams here, trekking from showroom to showroom and conducting business as usual. Some even brought larger-than-normal delegations. They know business will continue.
"My father and mother started this business during the Depression," said Bill Tepperman, president of Tepperman's Furniture of Windsor, Ontario. "Not long afterwards there was a world war. But they continued to grow and build the business during those terrible times. Life has many parts and one of those parts is business. I know that growth and prosperity are available to us if we work for it."
No one expects business in the coming months to be robust. Aktrin Furniture Information Center reports the Canadian economy has fallen to its slowest growth rate in six years, despite lower interest rates and tax cuts.
"Consumers have become very cautious," said Aktrin President Stefan Wille. "The drop of the stock market and weakening employment have significantly contributed to sagging consumer confidence."
Retailers believe they need to be cautious, but can't sit still if they hope to capture those consumers who are in the market. Many said recent events could prompt people to stay home, perhaps buying furniture instead of taking a trip. But any outbreak of hostilities might keep people out of furniture stores and glued to TV sets.
"We don't know what's going to happen between now and Christmas," said Wayne Strachan, executive vice president of major chain The Brick, based in Edmonton, Alberta. "All we can do is be ready to react to the consumer."
Said Tepperman, "Yes, fewer people will walk through the doors of our store this year than walked through our doors a year ago. But there are still people out there who want to buy what we have to sell…. We just have to work harder to give them reasons to buy."
That's a widely held view.
"Business is tough," said Dennis Novosel, president of Stoney Creek Furniture in Stoney Creek, Ontario. "It's a little slower that we would like it to be, and the fall spurt hasn't started yet. But we're cautiously optimistic that the business will come back. If we do our merchandising and marketing right, we'll get our fair share or maybe even better."
"We've seen a bit of a pickup in business recently," Strachan said. "So we're not slowing down at all. We will be aggressively going after the business that's out there."
Most retailers believe the Canadian consumer is still more optimistic than her American cousin.
"Our members have been doing better than we anticipated," said Bill Speer, furniture merchandising manager for Mega Group of Saskatoon, Saskatchewan. "But after Sept. 11, no one really knows what's going to happen."
The good news for manufacturers is that Canadian retail inventories are in good shape. Buyers said they are hunting for new product, and that leather, motion upholstery and bedroom remain the hot categories. On the negative side is the continuing strength of the American dollar, which makes U.S.-made furniture more expensive for Canadian stores.
"It's hard to justify container orders," Novosel said. "We have to be really sharp shoppers of U.S. product."
Aktrin's Wille believes most of the growth the industry will get this year, it got in the first half.
"This year's growth is expected to be 4.8%, but most occurred in the first half," he said. "Growth of furniture spending will remain slow for the remainder of this year, and the situation will be similar during the first quarter of next year. Only thereafter can we expect noticeable improvements."
-
Buyers look for values to revive retail
Jul 30, 2007 -
Toronto exhibitors stay upbeat
Jan 4, 2009 -
Specialty sleep products likely to stay hot
Dec 22, 2004
VIEW ALL GALLERIES
