Cantrex won't alter strategy
By Michael J. Knell -- Furniture Today, March 13, 2006
St. Laurent, Quebec — Cantrex Group says it won't alter its strategy in the wake of The Dufresne Group's decision to leave and launch its own furniture buying group, and the loss won't hurt volume rebates and other member benefits as the group moves to improve services.
Dufresne represented about 4.8% of Cantrex's total volume, said Alain Masse, named president and general manager of the fee-for-service group by parent Sears Canada last September.
"We didn't want to go the same way they wanted to go," he said. "Dufresne's business development could have come about to the detriment of our members as a whole. We decided not to satisfy Dufresne's requirements in order to maintain just and equitable conditions for all of our members."
Cantrex has over 850 members operating more than 1,250 points of sale across the country, selling furniture, bedding, appliances, consumer electronics, floor coverings, computers and photographic equipment.
Masse said members will begin to see the benefits of being part of Sears Canada as 2006 unfolds. Some 500 members already have signed on to the Sears Card, the largest-circulation consumer card in Canada.
"What we've discovered is that over 50% of the business they're writing using the Sears Card is business from a customer they haven't sold before," he said.
Cantrex's central billing operation now is at headquarters here. That means greater control over inventory credit operations and will allow Cantrex to take risks its former owner, merchant banker GE Capital, wouldn't necessarily take, Masse said.
"We don't want GE's restraints to hamper our growth," he said, adding, "We have a very good relationship with them, but instead of being owned by them, we are now their largest customer in Canada by far."
Cantrex is investing in electronic data interchange and other technologies that will enable it to speed service to members. "We now have agreements with over 400 suppliers," said Masse, and most will be plugged into the technology.
Some industry insiders have criticized Cantrex in recent years for placing too much emphasis on money matters and not enough on marketing and merchandising. Masse said that will change, particularly for its two largest furniture banners, Tendance and Furniture Plus.
Cantrex expects to name new senior furniture merchandisers and a new national bedding manager in the next weeks. Scott Mills left as national bedding manager to join Springwall Sleep Products, and Anthony DeSilva, Furniture Plus banner manager and national furniture merchandiser, departed to become a sales representative for Palliser.
A new Web site is under construction and should be live shortly. Masse said it will provide a variety of information services to members.
Although it operated in an uncertain environment, 2005 was a growth year for Cantrex in business written and membership. It signed 33 new members while losing less than a dozen, and only four to Mega Group, he said.
"We're gearing for growth," he said. "We are still the largest buying group in the country. We have strong people in the field. We are going to have to do a lot better in a lot of areas but we're getting ready for that."
Masse has been appointed to Sears Canada's senior leadership team, and the parent company is committed to ensuring the success of Cantrex and its members, he said.
"We believe in independent retailers," he said. "They have many things that they can bring to Sears. We also have a lot of resources that we can bring to our members. We are in this business to grow this business."
