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2 Canadian banners to convert to BrandSource

Michael Knell -- Furniture Today, January 23, 2012

TORONTO - Farewell, Countrywide. Adieu, Multi Meubles.
     Two of Canada's best known furniture banners will disappear in March when Mega Group rolls out BrandSource as its primary go-to-market strategy for independent furniture, mattress and appliance retailers.
     The member-owned buying group announced the conversion just prior to the Canadian Home Furnishings Market, which ended its annual four-day run here last week. Members voted to make the change at their pre-market meetings.
     Group President and CEO Benoit Simard, this means the Countrywide and Multi Meubles banners will disappear by the end of the first quarter.
     "We will be transiting from Countrywide and Multi Meubles to BrandSource," Simard said.
     Mega launched the Brand- Source.ca website in early 2009, primarily as a promotional tool focusing on appliances and mattresses. One of the stumbling blocks to a full rollout had been the lack of a national core furniture program, but that has been resolved, Simard said.
     BrandSource Canada is affiliated with BrandSource in the United States, which is operated by the AVB buying group.
     There will be two types of BrandSource Canada members: integrated and authorized.
     Simard said an integrated member will have his name included with the BrandSource Home Furnishings (Ameublements BrandSource in Quebec). These will be fully bannered stores and, in addition to access to all Mega member services, will have access to the complete core furniture lineup, featuring product from suppliers such as Lane, Broyhill, Ashley, Sealy, Serta and Springwall as well as Mega's private label programs.
     Mega also will offer Brand- Source members a comprehensive advertising program including a 12-month flyer program as well as a national radio ad campaign with broadcast spots on channels such as HGTV and TSN (The Sports Network).
     These members also will have territorial exclusivity, which Simard said will give the integrated store a distinct competitive advantage in its market.
     In all, BrandSource's product offering will include some 15,000 SKUs across 38 brands in furniture, mattresses and appliances.
     In addition to integrated stores, BrandSource also will offer an "authorized" dealer program. Members in this stream will not have territorial exclusivity, but will have access to Mega programs on an à la carte basis. Simard expects the authorized BrandSource member will be an appliance specialist rather than an independent full-line furniture retailer.
    Simard said the conversions from Countrywide and Multi Meubles are already underway. When BrandSource is fully operational at the end of the first quarter, the group expects to have 65 integrated members and about 90 authorized members.
     Although the conversion to BrandSource is a huge undertaking, Simard was quick to note that Mega Group will continue to offer other programs to the independent retailer. For example, the Evolution and Promotional Networks - as well as Sleep Experience - are continuing to serve their individual members.
     "We will continue to be a network-driven, people-oriented company," Simard said.
     The emergence of Brand- Source will not affect Mega's strategic business unit, which provides central billing and other financial services to other retailers such as the Dufresne Retail Solutions Group, Trail Appliances and the Foto Source photography store network.

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Canada's Countrywide, Multi Meubles stores to convert to BrandSource

Jan 20, 2012

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