Canadians do well despite retail weakness
By Michael J. Knell -- Furniture Today, April 20, 2008
High Point — Canadian furniture and bedding resources at market generally were pleased with orders and attendance, despite the realities of the marketplace across North America.
Retail is weak in the United States and Canada, imports continue to increase their market share, and Canada's strong dollar continues to make the nation's products less price competitive.
About 60 Canadian resources took part in the High Point Market, including several that returned to the event after leaving for a variety of reasons over the past few years. Among those back at market were cabinet specialist Buhler Furniture and upholstery producer Distinctive Designs, which offered its new Kroehler-branded Lifespaces collection. Leather specialist Coja Leatherline also returned with its new Amici55 collection of upholstery.
Some executives said attendance was on par with the 2007 April and October markets, although many said traffic was lower, especially among smaller retailers.
"All we're seeing are majors — we haven't been seeing many independents, although we have seen a few from Canada," said Feizal Sunderji, vice president of upholstery specialist Dynasty Furniture. "Traffic is way down."
That said, executives reported that buyers who made the trip to High Point were shopping the market hard.
"So far, reaction has been positive," Rick Lovegrove, director of sales and design for upholstery specialist G. Romano, said. "Everyone is erring on the side of caution."
Regardless of the category, the Canadian contingent was focused on a common strategy centering on well designed, quality product in the better and best price points that can't be easily shopped offshore. The idea is that those products are less likely to be affected by the high value of the Canadian dollar, which has been at near parity with the U.S. dollar for the past few months after years of trading at a discount.
"We invested a lot in product development this market," said Sheila Seigel, vice president of upholstery house Sklar Peppler, which acquired U.S. producer Alan White late last year.
While imports continue to dominate certain segments of the market, especially at lower price points, almost every Canadian exec believes that retailers are beginning to push back against Asia-made product and devote more floor space to North American-made goods. The reasons, they say, are that domestic goods offer higher gross margins, shorter delivery cycles, the ability to customize and simpler payment terms.
This trend has been noticeable for the 18 months or so, but execs believe its pace is quickening, partly as a response to current retail environment. Affluent consumers who continue to buy furniture prefer better and best category goods that are produced in North America, they said.
They also agree that High Point will continue to be an important platform to drive growth throughout North America.
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