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Retail buying groups unveil new programs

Now looking to boost membership

By Michael J. Knell -- Furniture Today, January 5, 2003

Toronto — Canada's furniture buying and marketing groups will make their presence felt at this weekend's winter market here, unveiling new marketing and merchandising programs in the hopes of attracting new retailer members.

Members of the groups say they are coming off a strong year at retail and are eager to face the 2003 campaign.

For the past few years, the buying groups — particularly Cantrex and Mega — have de-emphasized recruiting in favor of building marketing and merchandising programs they believe will help the independent retailer survive and thrive against increasing competition from the national chains and big-box stores. They've held their meetings and set up merchandising displays in hotels near the market hall.

Now, they're signaling that they've got the programs in place and are ready to start aggressively recruiting.

Cantrex Group will be making the biggest statement of all — literally — by building a house in Hall 6 of the Toronto International Centre to show off the products its members sell.

"This 3,200-square-foot bungalow replicates each of the retail solutions we offer," said Stephen Braniff, business development manager for the Ontario, Western and Atlantic Canada division of the St. Laurent, Quebec-based buying group. "The décor will be different in every room and in every room will feature product from our programs."

For example, the kitchen will have appliances from Cantrex's recently launched Appliance Expert program while the flooring will come from United Carpet's core product line. Mattress World will supply the sleep goods while the furniture will come from Furniture Plus and Le Meubleur as well as the Advantage Club and Club 3000 lines.

The product selected comes from Cantrex's best-selling suppliers in each category.

Designed by Braniff and Dean Wake, another Cantrex business development manager, plus a couple of outside consultants, the house will take a day and a half to build. In addition to product, support programs such as the Premier Card, Cantrex's retail credit card and Prestige, the in-house extended warranty program, will also be presented.

"One of the things we haven't done a good job of in the past is showing our wares to retailers at showtime," Braniff said. "Now, we're going to do exactly that on the main floor of the show."

Cantrex expects a strong turnout by members from across the country.

"Even though things softened up in the last quarter, we are coming off the best year in the history of our company," Braniff said.

All of the banners and clubs will be holding meeting during the show. Furniture Plus will meet Friday, Jan. 10, at the newly built corporate store in nearby Guelph, Ontario.

Meanwhile, the Saskatoon, Saskatchewan-based Mega Group will take a 3,200-square-foot exhibit in Hall 4 of the TICC and will focus on its Countrywide, Multi Meuble and Sleep Experience retail systems. Rob Alexander, vice president of merchandising, said this the first year Mega has taken space inside the market itself.

"What we're going to do is position Mega Group as a company that provides real solutions for its members," he said. "Everything we do is designed to improve the profitability of the independent retailer."

Mega also expects a strong turnout by its members, who generally speaking had a good but not spectacular 2002.

"Even though September and October were soft, business in November picked up a little," Alexander said, adding that inventories are in great shape. "They're going to be a great position to buy."

In addition to introducing new merchandising and marketing programs to its members, Alexander said Mega is actively seeking out new members. "We're working at growing more aggressively next year."

While the group's presence will not be as noticeable, every member of the Laval, Quebec-based Les Marchands P.A.S. is expected to attend market. P.A.S. will hold its merchandising meeting this Saturday morning at a hotel near the TICC, with a dinner and social that evening.

"This year has been a pretty good one for our members, even though it started to slow in September," reported Pierre Royal, general manager of the cooperatively owned group.

Elmira, Ontario-based Home Furniture will have a small merchandising display in the TICC as it has in past years.

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