The Brick blasts into Quebec
By Michael J. Knell -- Furniture Today, May 3, 2004
MONTREAL — MONTREAL— Major Canadian furniture retailer The Brick has entered Quebec with a bang, opening five 55,000-square-foot stores, a clearance center and a distribution facility in metro Montreal on April 15.
The move represents a C$100 million investment on the part of the high-impact promoter, which is based in Edmonton, Alberta.
The stores are in Anjou, LaSalle, Lavel, Saint-Hubert and Trois-Rivières. The clearance center is in Laval and the 325,000-square-foot, state-of-the-art distribution facility is in Anjou.
"The opening of these stores, as well as our aggressive schedule for upcoming launches, clearly illustrate our commitment to the Quebec market," said Kim Yost, president and CEO. "We are convinced that Quebec consumers will appreciate our outstanding value, selection and service.
"The Brick is a strong community player and, whenever we invest in a market, we're in for the long haul.... We want to become a household name in Quebec," he said.
Richard Byers, vice president of marketing and advertising, said now is the right time for The Brick to enter the Quebec market.
"Housing starts in Montreal and Quebec have been strong for two years and should continue to be strong for the next two years," Byers said. "We've had substantial growth over the past five years and we have no debt. That put us in the perfect position to make this investment in Quebec."
The Brick is invading the home turf of BMTC Group, Quebec's largest full-line furniture retailer, whose 23 stores operate under the Brault et Martineau and Ameublements Tanguay banners.
Byers said The Brick believes it can differentiate itself from BMTC, which has dominated the Quebec market for decades.
"Our national reach and larger size give us advantages in sourcing product," he said. "We can buy a little better. We will bring product to the market that Brault can't access. We also are very focused on delivery. If the customer buys, it will be delivered today."
The Brick has been experimenting with same-day delivery in Vancouver, British Columbia, Edmonton, Toronto and Winnipeg, Manitoba, for the past few months and Byers said it's proving a winning strategy.
In Montreal, The Brick began running teaser TV spots six weeks before the openings, proclaiming, "Enfin, une alternative!" (Finally, an alternative!). In the six weeks following the launch, at least seven fliers, with a combined circulation of about 4 million, are being dropped throughout greater Montreal.
The focal point of the campaign is an extension of the current national program, offering a free 46-inch TV valued at C$2,500 with the purchase of a three-piece leather group.
There are some differences between the six stores here and their counterparts in English Canada, but the design is based on the concept rolled out in the newest Ontario stores.
"The stores in Montreal are about 10,000 square feet bigger than our stores in the rest of Canada," Byers said, with about 20 groups added to give the stores a more contemporary flavor, in keeping with Quebec consumer tastes. In at least three of the stores, The Brick is developing new appliance and electronics galleries.
The Brick anticipates quick expansion in Quebec, with as many as 16 stores opening in the next three years. The chain also expects to open a store in Halifax, Nova Scotia, within five year, which would make it the second national furniture retailer after Sears Canada.
The Brick's parent, The Brick Warehouse Corp., is in a growth mode. It recently acquired United Furniture Warehouse, and will build two more of its large-format Homeshow Canada stores in metro Toronto before taking that concept to other Canadian cities.
Currently the No. 4 Canadian furniture and bedding retailer, Brick Warehouse had revenues in excess of C$1.2 billion last year, including sales of appliances and electronics. In addition to the six Quebec stores, The Brick has 75 stores and clearance centers, and four other distribution centers.
