Toronto encouraging, but traffic down
Many exhibitors blame Vegas
Michael J. Knell and Heath E. Combs -- Furniture Today, January 24, 2008
TORONTO — The 2008 campaign got off to fine start here last week, with resources exhibiting at the Canadian Home Furnishings Market saying they were encouraged by the interest shown and the placements received from retailers.
 Richard Bousquet, left, and Sylvie Beliveau, both of Meubles Concept Traditionnels, and John Connell, Rustica Interiors, Vancouver, British Columbia. |
| Richard Bousquet, left, and Sylvie Beliveau, both of Meubles Concept Traditionnels, and John Connell, Rustica Interiors, Vancouver, British Columbia. |
 Danielle Cravel, left, Les Channell and Julie Radley, all of Spring Air Sommex Corp. |
| Danielle Cravel, left, Les Channell and Julie Radley, all of Spring Air Sommex Corp. |
But all agreed that attendance continues to decline at the show.
Executives at many exhibitors said the CHFM continues to be the market of choice for independent stores in Atlantic Canada, Quebec and Ontario, as well as the national chains, department stores and regional players. Independents from Western Canada were not as well represented.
Some U.S. dealers attended, particularly from New York, Michigan and Pennsylvania.
“The orders have been good and the traffic has been steady,” said Faizel Sunderji, vice president of upholstery manufacturer Dynasty Furniture. “So far, it looks like it’s going to be a good year, based on the reaction we’ve been getting to our new product.”
“It was weird this year,” said Denis Charest, president of contemporary case goods producer Poitras of L’Epiphanie. “Traffic was frantic on Friday, we were busy on Thursday but the weekend has been quiet.”
The market didn’t officially open until Saturday, Jan. 13, but many showrooms both inside and outside of the International Centre were open earlier.
 Mel Kemp, left, Larry Schwartzenberger and Gerald Proteau, all of Canwood. |
| Mel Kemp, left, Larry Schwartzenberger and Gerald Proteau, all of Canwood. |
 Paolo Macchione, left, Michael Pino, both of Therapedic, and Denis Pichette, Agence and Distribution Denis Pichette. |
| Paolo Macchione, left, Michael Pino, both of Therapedic, and Denis Pichette, Agence and Distribution Denis Pichette. |
Many exhibitors blamed the upcoming Las Vegas Market for taking retailers — both from Western Canada and the rest of the country — out of CHFM. But other factors also were cited, including a decline in furniture store sales in recent months.
“Considering the economic conditions, the show has been very good,” said Jean Deveault, executive vice-president of casual dining powerhouse Canadel. “But I’ve talked to a lot of retailers in recent weeks who said they weren’t coming because business is not good.”
“The attendance was definitely off,” said Richard Magnussen, chairman and CEO of importer Magnussen Home.
Despite the shifting traffic patterns, Charest said he was delighted with the business Poitras wrote during the four-day event. “We’ve established good positions with a number of key retailers,” he said. “So, for us, we’re going to have a very good year in 2008.”
“This has been an excellent show for us,” Eric Abecassis, executive vice president Montreal-based motion specialist El Ran, said. “We saw who we had to see.”
“We met with all the key players but it’s obvious that the smaller accounts didn’t come,” said Daniel Walker, president of BDM+ Furniture, the parent of case goods specialists Bermex, Dinec, G747 and MI-DI. “But I’m feeling very positive about the Canadian market for 2008.”
In product offerings, several trends emerged. Canadian manufacturers reported that retailers were “coming home” and showing more interest in domestic goods than they have for the past three or fours years. Buyers also were looking for eco-friendly furniture, quick delivery and good service, exhibitors said.
“Retailers are tired of the China product and they’re more interested in a Made in Canada story,” said Joanne Dionne, vice president of sales for contemporary upholstery and case goods maker Huppé. “This is because we’re offering 18 colors on everything we offer with a lead time of not more than four weeks, meaning they don’t have to stock in large quantities.”
However, importers said their offerings also did well.
Magnussen’s focus was its new QuickFlex program, which is designed to offer smaller retailers mixed container orders and faster product flow, making for higher turns and increased margins.
“This was a great success for us,” Richard Magnussen reported. “Our business strategy is simply to design fresh product that flows quickly to the customer.”
Kenneth Napier, vice president of sales at Ashley, said attendance seemed down, but written orders were good.
“We think we have the busiest space here. It’s less than our expectations. We anticipate lots of customers coming to Las Vegas.” Napier said, summing up an oft-heard refrain here.
Noel Gingras, chief operating officer for upholstery and solid wood case goods manufacturer Villageois, said rising costs and the strength of the Canadian dollar led to a 15% price increase in October, which has had an effect on buyer shopping.
“It was hard at the time to tell our customers, but I think they understand,” Gingras said. He said the company won’t sacrifice its brand name or high quality design and finishes, and will find ways to increase its volume.
Victor Sagar, president of Down Under Bedding, a four store retailer with plans to open two new stores this year, said he was shopping the show looking not only for price, but for well-stocked suppliers with good customer service.
“The Canadian dollar is an issue and you can see the long faces a mile away. Empty booths, nothing exciting happening. The middle ground between the haves and have nots is being eroded. The future of the industry is getting much smaller,” he said.
For 2008, Sagar said he will keep his best sellers on the floor and is looking to expand into organic and green mattresses for a positive product story.
Sukhpreet Sethi, president of importer Acasia Home-Trend, said the strong Canadian dollar is having a negative impact.
“You may see fewer Americans here,” Sethi said. “They’re looking for deals we cannot offer.”
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Toronto encouraging, but traffic down
Jan 20, 2008
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