Cantrex set to hit $1B in sales for fiscal year
Michael J. Knell -- Furniture Today, October 19, 2008
MONTREAL — Cantrex is poised to break the psychologically important $1 billion mark in wholesale volume for its current fiscal year, members were told at their recent national convention. It's a plateau that senior management believes cements its position as Canada's largest big-ticket buying group.
“In 2007, we grew our volume by 24%,” Masse said, adding that 46 new members have joined to date in 2008 — 23 in the furniture, bedding and appliance division; 17 in consumer electronics and photography and eight in floor covering.
“That represents a total of about C$150 million in new business,” he said. Cantrex members have some 1,300 points of sale across the country.
The company also reported strong growth in its top three furniture banners: Expert Appliances, a gallery program for full-line furniture retailers, had 22 members in 2007 and will have 32 by year-end; Furniture Plus had 12 in 2007 and is already at 20 for this year; while, the Quebec-focused Accent will finish the year with 27 members, up four from last year.
Since its acquisition by Sears Canada in mid-2005, Cantrex has been on a growth track, Masse said.
“Right now, we have the dominant market share in appliances among independent retailers across the country,” he said. “The biggest players in consumer electronics have partnered with Cantrex. In floor covering, Cantrex ranks second in market share, right behind Home Depot. Our Zone Image Photo banner has doubled the number of storefronts since 2005.”
Masse said Cantrex has two immediate strategic priorities: to continue to strengthen the existing businesses of its 900-plus members; and to grow by diversifying into new industries, implementing new Web-based solutions and securing new strategic alliances.
“A 10% increase in our combined purchase volume will add $100 million to our business,” he said, adding that such growth would lead to increased and improved services for all Cantrex members.
This was the first time in its 48-year history that Cantrex held a joint convention across all the industries it takes part in — furniture, mattresses, home décor and accessories, appliances, consumer electronics, floor covering and photography.
Masse also reported on the results of Cantrex's independently conducted membership survey, saying that 87% of those surveyed said they would strongly recommend Cantrex to other independent retailers.
“It's an exciting time to be a Cantrex member and more announcements are to come in the near future,” he said.
One of the weekend's key features was a mini-market featuring 97 approved suppliers from all seven industry sectors. Cantrex said about 800 participants attended the event.
“In addition to meeting existing suppliers, the cross divisional supplier representation on the show floor allowed both our members and suppliers to connect with potential new business partners. They do not normally have this opportunity at more traditional supplier shows,” Masse said.
