2008 Bedding in Canada - Canadian Writers Group

Michael Knell’s
HGO special report
HomeGoodsOnline.ca
2008
Bedding in Canada
Retailers, manufacturers, suppliers succeed in tough times
Sponsored
in part by
Caber
Distributors
Giving consumers
a Beducation
FROM THE EDITOR>>>
We all need to keep
our eyes on bedding
OF ALL THE HOME GOODS CATEGORIES, MATTRESSES
ARE ONE OF THE FEW WHERE CONSUMERS SHOP AS MUCH
FOR VALUE AS FOR PRICE
W
MICHAEL J. KNELL
elcome to home goods online’s first e-zine.
This marks a significant step in the development of the
Web site and the first of many new services we want
to introduce to Canadian big-ticket home goods retailers and the
industries they partner with.
The bedding industry is a good category to focus on for our
first e-zine for a number of reasons. For the past decade or longer,
mattresses have been the profit centre on which retailers have
built their businesses. This is true whether that retailer is an
independent or a national chain. It’s also true whether that retailer
is a full-line furniture merchant or a sleep specialist.
Mattresses also has been the one category where the unthinkable
has happened. Consumers have been persuaded not to look at
price, but at value. The pitch has changed from “buy this right now
for the lowest price ever” to “buy this and get a better night’s sleep.”
This made exploring the bedding category critical. Even
industry professionals working in other categories – from
upholstery to appliances – need to know what’s happening in
mattresses, since it is perhaps the most important bellwether on
performance. If, as we discuss in this HGO Special Report, the
category is becoming more challenged after years of unparalleled
growth, we all need to pay attention.
But our 2008 Bedding in Canada report also offers a little good
news – and a lot of useful information. One of this country’s
best furniture merchandisers, Alixe MacRae, offers a column that
might prompt you to rethink your approach to bedding. We also
look at the new programs the buying groups are putting together
in their bid to advance the cause of independent retailers. And we
examine industry efforts at becoming “green.”
This is a fully interactive e-zine. We even show some brief
advertising videos in our profile of one of western Canada’s most
successful sleep specialists, Mattress Mattress.
We hope you enjoy the read. This is the first of many industry
related supplements we plan to publish. We also want your
feedback, so don’t hesitate to click on my e-mail address below
and send me a note. We look forward to hearing from you.
HGO special report
2008 BEDDING IN CANADA
www.HomeGoodsOnline.ca
PUBLISHER & EDITOR
Michael J. Knell
mknell@homegoodsonline.ca
MANAGING EDITOR
Anthony E. Bengel
tony@homegoodsonline.ca
CONTRIBUTING EDITORS
Suzanne Boles
www.writeconnection.org
Alixe MacRae
alixe@homegoodsonline.ca
Meaghan Clark
meaghanclark1@gmail.com
GUEST COLUMNIST
Dick Doyle
www.sleepproducts.org
RESEARCH DIRECTOR
Janice Chamberlain
jchamberlain@northstate.net
ART DIRECTOR
Samantha Edwards
Sam I Am Creative
sredwards@look.ca
WEB MASTER
Jayme Cousins
www.inhouselogic.com
PUBLISHED BY
Windsor Bay Communications Inc.
P.O. Box 3023, 120 Ontario Street
Brighton, Ontario K0K 1H0
T: 613.475.4704
F: 613.475.0829
Michael J. Knell, Managing Partner
© 2008
Windsor Bay Communications Inc.
All rights reserved.
Windsor Bay Communications does not accept
any responsibility or liability for any mistakes or
misprints herein, regardless of whether such errors
are the result of negligence, accident or any other
cause whatsoever. Reproduction, in whole or in part,
of this magazine is strictly forbidden without the
prior written permission of the publisher.
AFFILIATE MEMBER
michael j. knell
Publisher & Editor
mknell@homegoodsonline.ca
8
>
HGO bedding report
<<<PROFILE
MATTRESS
A DYNAMIC SLEEP SHOP CHAIN IN ALBERTA SPRINGS
FORWARD BY REFLECTING THE NEED FOR CONSUMER EDUCATION,
AND BY LEARNING TO DO A LOT OF THINGS RIGHT
BY SUZANNE BOLES
I
N A MARKETPLACE CROWDED WITH COMPETITORS, AND WITH
better-educated consumers clamouring for a better night’s sleep, bedding
specialty chain Mattress Mattress Inc. is making its mark in Alberta by
focusing on the shopper’s experience – and on all the details that contribute to
the bottom line.
Years ago, most people didn’t think about buying a new mattress until the
springs were digging into their backs. But times have changed.
The media and medical profession speak loudly about the importance of a good
night’s sleep. And relief of some physical ailments is, in part, attributed to having
the right mattress. The result is a more educated consumer who isn’t looking just
for a place to bed down. They want sleep solutions.
Many mattress specialty stores have sprung up to meet those needs. The result
is a highly competitive market and, like any other market with competition, it’s
survival of the fittest.
The bedding retail market is “saturated,” says Eric Buchfink, founder, general
manager and buyer for Mattress Mattress Inc., based in Red Deer, Alberta.
His mantra is to stay focused and to focus on everything, because every detail
is important, from how the store looks, to how customers are treated, to selling
the right product to each person who walks through the door.
Since the company’s inception in 1994, Mattress Mattress has grown to
“become a major contender in Alberta, where we have almost as many stores as
Sleep Country, in minor and major centres,” says Buchfink.
HomeGoodsOnline.ca
< 23
Serta, Simmons, Kingsdown. We want to talk
about the fact that we use the Sears card, which is
part of the Cantrex program. We want to give that
customer as much information as we can.”
EMPLOYEES ARE THE
NO. 1 ASSET
Applicants for sales positions complete a career
profile and personality exercise to ensure they
meet the qualifications for the job. Those who are
accepted participate in a 10-day intensive training
program known as Mattress Mattress University.
The program has developed over time, and
information is always being updated. Buchfink
says most people say the program is a “bit
overwhelming.”
The company looks at this as a career. In return
for hard work, people are well treated and well
compensated, he says. As a result, staff turnover is
minimal.
THE WESTJET WOW!
Eric Buckfink, left,
and Ed Zajac with a
display in one of the
chain’s Calgary stores.
The front of the store
is shown at right.
The company has 14 stores. Two more are slated
to open in Alberta, one in Camrose (December
2008), and one in Medicine Hat (spring 2009).
The company is currently eyeing the U.S. market,
specifically in Arizona, but plans to open a store
there aren’t confirmed.
STANDING OUT IN THE CROWD
“There are many things that make Mattress
Mattress different,” says Buchfink. For example,
“Our logo is second to none. It stands out and
it’s remembered.” Although their advertising has
changed over the years, “the message remains
the same. We’re ‘The mattress store that saves
you money’.” Along the way they’ve added other
trademarked slogans, including “Beducation.”
Buchfink defines the store’s goal as “really
linking yourself to the customer.... In the first three
minutes, you’ve got to cement a relationship with
the customer that ties them to the store and to the
salesperson and to your products.
“In that three minutes, we want to talk about
Mattress Mattress. We want to talk about Sealy,
24
>
HGO bedding report
In addition to ensuring that customers get the right
product for their needs, the experience they have
when they walk through the door should blow
them away. Buchfink calls it the “WestJet Wow!”
That means making the customer feel appreciated,
that the company is sincere in its desire to do what
it can to help them make a decision they’re happy
with, and treating them so well they’ll want to
come back.
A recent brand awareness survey in Edmonton,
where the company has four stores, indicated
Mattress Mattress was the first store that came to
mind when those age 18 to 44 were asked to name
a mattress store.
Mattress Mattress works with eight mattress
manufacturers, “that complement each other and
provide us with a diverse selection of products
for our customers,” says Buchfink. These include
Sealy, Simmons, Serta, Kingsdown, King Koil,
Regal, Restwell and Sova, the company that makes
Hypnos Sleep Systems, supplied to the British
Royal Family and House of Windsor since the
1970s.
Prices of queen-size mattress sets range from
$299 to $2,999. The company’s bread and butter
comes from sales between $499 and $999. Delivery
is same day; charges apply.
Advertising is a key element of the business, with
new promotions almost every week, clearance sales
once to twice a year and sales of floor models more
often. The company advertises on TV and radio,
but runs no newspaper ads.
Mattress Mattress leader Eric Buchfink
in his own words: We believe…
in store locations:
An A- or B-class
location is a must....
With a strong location,
you can survive on
drive-by traffic.
but before we open
a new location, the
numbers must work.
events, right down to
our Web site and the
Yellow Pages.
in hiring exceptional
people that fit our
in slogans: We’ve
trademarked
“Mattress Mattress”,
“The Mattress Store”,
“Beducation”, “No
Fancy Showrooms!
No Fancy Prices!”,
“Sound Advice! Honest
Price!”, and “We Know
Mattresses.”
criteria, and who
will look after our
customers based on
our second mission
statement, “Do Unto
Others”.... The main
thing we look for is
personality. One thing
we never look at is
experience. In fact, we
think it’s a detriment.
in buying: We believe
in buying what the
customer is looking
for.... We’re constantly
improving our product
mix. We have a 60-day
rule. Every spot on the
floor must be earned,
a dollar volume
based on each store’s
monthly sales average.
If it doesn’t earn its
space, it’s cleared.
in leases: A lease
can either make you
or break you. We’ve
learned about leasing
by making mistakes....
If we can give one
piece of advice to
someone new starting
out in business, it
would be that, if you’re
not an expert when
it comes to leasing,
make sure you hire a
lease expert to help
you with your offer. It
might just save your
business.
in planning: Having a
sound business plan
is important when
we open a location.
We don’t believe in
opening a location
just to have another
one. It’s a pretty
conservative approach,
in training: New
in inventory turns:
employees go through
two weeks of intensive
training before they’re
allowed to go on
the floor.... And it
doesn’t stop there.
It’s constant training,
exams, more training.
It never stops.
Our in-house database
program charts 30and 60-day sales on
everything we carry. If
sales don’t meet the
60-day sales number
criteria, the item is
immediately destined
for clearance in that
location. Our program
goes a step further,
telling us weekly what
to order. It’s a great
system that helps us
turn our warehouse
inventory anywhere
from 12 to 24-plus
times a year.
in advertising: Even
though the market’s
saturated, advertising
is still a must when
it comes to putting
your image in front
of the masses, and in
creating urgency when
it comes to buying. In
order to ensure that
our ad dollars are
being spent wisely,
we measure all our
advertising/media
results, including TV,
radio, street signs,
ERIC BUCHFINK
in Web sites: In
today’s world, you
must have a strong
Web site. Today’s
consumer spends
a great deal of time
online, not necessarily
to buy, but definitely
to see what you carry,
to garner information,
and find out where
you’re located.
in putting money back
into the business:
Fixtures, equipment
and point-of-sale
material must be
constantly refreshed
or updated.
in store cleanliness:
in controlling
overhead: From
Parking lots,
windows, showrooms,
washrooms and
warehouses -everything must shine
for our customers.
supplies to turning
off the lights at night,
we try to keep our
overhead down. We
shop all our services
annually, and belong
to the Cantrex buying
group to ensure that
we’re getting great
prices on benefits,
insurance, credit card
rates and more.
in profits: Profit is
not a dirty word.
One of our greatest
profit centers is a
program we call “The
Profit Program,”
incorporated into our
business when we
opened the doors in
1994. Thanks to this
program, and the
selling strength of our
people, our profits are
double digit.
NUMBERS SHOW THE RESULTS
Trained salespeople with positive personalities
focus on educating every customer so they will
make the right choice, and that has paid off for the
company. Sales closing rates are 55 percent, and the
return ratio is one mattress out of 300. Referrals are
also impressive -- “very close to 50 percent; half our
sales are repeat sales or referrals,” Buchfink says
Although he prefers not to divulge overall
volume, Buchfink says same-store sales are
budgeted to increase five percent in 2008. Average
gross margin is well above the industry average,
with some stores posting gross margins of over 55
percent after taking co-op monies and rebates into
account.
CLIC
on win K
dow
to view s
VIDEOS
THE LEARNING CURVE
Buchfink candidly admits that, “When it comes to
the business side of things, after years of learning
from our mistakes, we believe that we do a lot of
things right.”
Asked what the company’s unique selling
position is, he replies, “I think it’s 100 things.
By doing all those little things – to make yourself
really unique and stand out, to wow the customer,
to have good salespeople and good accountants;
there’s so many things that make for good business
these days.
“It’s by making mistakes that we’ve developed
our business plan, one that precludes making the
same ones again. We believe that to be successful
in business these days, you need to do hundreds of
things better, versus one thing 100 percent better.
“We love this business. Loving it means it’s fun,
not work, each and every day.” HGO
·HJO6CC:7DA:H is a freelance writer based
in London, Ontario. She is a past president of the
Professional Writers Association of Canada.
“We don’t believe in opening
a location just to have another
one. It’s a pretty conservative
approach, but before we open
a new location, the numbers
must work.” – eric buckfink
Mattress Mattress
at a glance
YEAR ESTABLISHED: 1994
HEAD OFFICE: Red Deer, Alberta
ACCOUNTING OFFICE: Leduc, Alberta
NUMBER OF STORES: 14. Alberta: Calgary – 2;
Red Deer – 2; Lethbridge – 2; Edmonton – 4;
Leduc – 1; Medicine Hat – 1; Sherwood Park – 1.
British Columbia: Kelowna – 1. Average store
size: 4,000 square feet, about 2,200 showroom
and 1,800 warehouse. Annual store volumes
range from $600,000 to $1.6 million.
SENIOR MANAGEMENT TEAM:
™:g^X7jX]Ãc`!\ZcZgVabVcV\ZgVcYWjnZg
™8]VY7jX]Ãc`!Y^gZXidgd[gZiV^adeZgVi^dch!
shareholder and buyer
™9VggZc6aaZc!XdcigdaaZg
™:YOV_VX!Y^gZXidgd[hidgZdeZgVi^dch!
shareholder and buyer
™7doZcV7jX]Ãc`!Vhh^hiVciY^gZXidgd[gZiV^a
deZgVi^dch!h]VgZ]daYZgVcYWjnZg
™GVcYn8]daZiiZ!hidgZbVcV\ZbZci!
shareholder and buyer
WEBSITE: www.mattressmattress.com
HomeGoodsOnline.ca
< 29
GREEN LIVING>>>
GREEN
comes to the bedroom
THREE MATTRESS SUPPLIERS TAKE DIFFERENT APPROACHES,
BUT ALL ARE MOVING TO MEET THE GROWING CONSUMER
DEMAND FOR ENVIRONMENTALLY FRIENDLY PRODUCT
BY SUZANNE BOLES
A
sk people in the home goods
industry to define green and their answers
vary. When it comes to mattresses, does
the use of a “natural” product in manufacturing
make it green? If so, how much product content is
considered a respectable amount? Is green related to
the disposal of worn out mattresses?
There often are more questions than answers.
But the mattress industry is moving to meet the
consumer demand for environmentally friendly
products. And they are defining green to meet
consumer desires.
THE NATURA WORLD
RALPH ROSSDEUTSCHER
President of Natura World Inc.
32
>
HGO bedding report
Ralph Rossdeutscher, president of Natura World
Inc., and his father, Harry, launched the company
in 1994. From its inception, the focus has been on
“helping customers achieve a superior night’s sleep.”
They also believe the best way to serve consumers
is by giving them “the greatest care, with the intention
of helping them sleep better and live better.” Living
better can mean being greener, and Natura has
focused heavily on this aspect of its business.
Asked what going green means, Ralph
Rossdeutscher says it involves three things:
1. Using natural materials in the product.
2. Improving what you’re doing for the
environment, including the components you use to
create your product.
3. Avoiding the use of harmful chemicals or
pesticides in the manufacturing process.
Components in Natura’s mattresses include latex
foam, wood, cotton and wool. All are considered
environmentally friendly, he says.
“The least amount of pure wool we have (in our
mattresses) is four pounds, and that’s pure wool
fabric,” says Rossdeutscher.
And as it turns out, natural products actually
make a better mattress.
Studies show that wool actually enhances
sleep. Benefits include 75 percent less toss-andturn during sleep, and a steadier and lower heart
rate. Wool wicks away and absorbs body moisture,
regulating body temperature. Babies cry less
sleeping on mattresses with wool content.
Rossdeutscher attributes his company’s growth
– 50 percent last year – in large part to its focus on
green products.
BY DICK DOYLE
He says the demand for environmentally friendly
products is being driven by changes in the way
society thinks about the environment.
“It’s not a fad, as in next year nobody will care,”
Rossdeutscher says. “It’s basically a changing of
society. A lot more people are concerned about it.”
He points out that we spend a third of our life
sleeping, and consumers who are green-conscious
don’t want to be breathing chemicals or laying on
products that emit greenhouse gasses.
If retailers are worried about higher prices and
lower margins on green products, they shouldn’t
be, Rossdeutscher says. “When you create new
products, it allows you to have better margins …
because nobody else has them.”
And the fact that manufacturing can be done
easily in North America also offers the opportunity
for better margins and faster delivery, he adds.
SPRINGWALL:
GREEN ON THE GROW
Springwall, a bedding brand originated in New
York in 1949, also includes green elements in
its mattresses, such as soy-based polyurethanes,
recycled steel and natural-content fabric.
Mark Campbell, vice president of sales and
marketing for Springwall Sleep Products, also points
out the company’s mattresses are made in factories
utilizing green processes, including zero emissions.
Asked what percentage of green content is in
Springwall’s current mattresses, Campbell says 20
percent. He anticipates that will grow to 40 or 50
percent, but isn’t sure how quickly that will happen.
He notes that it generally doesn’t cost
manufacturers more to incorporate green elements
into product, and estimates the green category in
bedding will increase from 10 percent to 17 percent
of the total marketplace in two year’s time.
Retailers could realize better margins on green
product, Campbell says, but the current highly
competitive mattress marketplace makes it difficult
to maximize that potential now.
Asked if mattress retailers are getting the most
out of green’s potential now, he says no. “It’s too
new and (the industry is just) starting to use it, but
it’s more (likely to become) a selling tool or an addon feature,” Campbell says.
One of Springwall’s main selling tools involves
its alliance with the American Chiropractic
“Green is new and the industry is just starting
to use it, but it’s more likely to become a selling
tool or an add-on feature.” – mark campbell,
Association, begun in 1967. The company’s
mattresses are made along lines recommended by
a group of chiropractors, and its premium brand is
called Chiropractic.
That’s a big advantage, Campbell says, as more
people, particularly baby boomers, embrace
chiropractic to help ease back pains.
IT’S A BEGINNING
AT MARSHALL MATTRESS
Newer to the green dream is Marshall Mattress.
Established in Canada in 1900, founder James
Marshall invented and patented the famous
Marshall coil, a pocketed-coil spring assembly. The
company’s mattress is “an original brand worldwide
with an original sleep system and original assembly,”
says President and Managing Partner of Sales Brad
Warner.
In addition to retailers, the company sells to the
health care industry and hotels.
Marshall has included green components in
some of its products, including wool, natural latex
foam and visco-elastic foam inner padding. “As a
privately-held company, we look at things a little
differently,” says Warner. “We look at the consumer’s
needs and desires for a sleep set that’s bench crafted
so well that you can see and feel the significant
differences.... We set very high standards for
ourselves and we are very consistent in the quality of
springwall sleep products
Each mattress in Natura’s Natural
product line features an all-natural
latex core for contouring comfort and
a layer of temperature-regulating
wool that wicks away moisture for a
fresh, allergen free sleep. The soft,
natural cotton cover is breathable.
34
>
HGO bedding report
the products we make. That’s our reputation.”
But that doesn’t mean the company won’t be
going green. Warner says they’re looking to launch a
green mattress program in the spring of 2009.
“Our considered approach is to be inclusive
of environmentally sustainable processes in our
overall manufacturing approach, from material
procurement to consumption to the manner in
which waste is sorted and recycled,” he says.
Warner believes the consumer is driving the
demand for a greener mattress industry. “Preserving
the environment is more top-of-mind than before,”
he says. “Purchases of a specific durable, such as
mattresses, make the qualified buyer more conscious
of the potential consequence of their buying decision.”
Consumers will continue to derive satisfaction
from investing in green purchasing, if it translates
into something tangible, something they can see,
touch and experience, he predicts. HGO
– SUZANNE BOLES is a freelance writer based
in London, Ontario. She is a past president of the
Professional Writers Association of Canada.
Tearing ’em up!
Fast-growing recycling company MattCanada keeps old mattresses out of landfills
I
PHOTO: © TIFFANY COOPER - FOTOLIA.COM
T TAKES ABOUT 20 YEARS FOR
mattresses to decompose in landfills.
Five years ago, Abdul Erdem, a native
of Turkey, founded MattCanada, a
fast-growing recycling company that
tears mattresses apart and puts the
components back to work.
MattCanada’s first recycling centre
operated out of a small Montreal
warehouse, serving two local furniture
retailers. Today, the company has a
second location in Frederick, Maryland,
and another opening soon in western
Canada. Further expansion is planned.
The roster of clients now numbers
over 30 in Montreal, from retailers
such as The Brick, Ikea and Leon’s, to
manufacturers like Sealy, Simmons and
Serta, to hotels, hospitals, prisons, the
military and private citizens. They now
also recycle home appliances.
MattCanada receives up to 1,000
mattresses a day, 600 in Montreal, for
recycling. Foam, cotton, metal, wood,
etc., is separated and retooled for use
in other industries.
For example, some of the foam is
shredded and mixed with environmently
friendly chemicals to make carpet
underlayment. Some is ground to a
fine dust and injected with chemicals
to create insulation panels for the
construction industry. Wood is used for
burning and to make wood chips. Metal
is recyled into construction beams and
railroad tracks.
The process is arduous and
something Erdem says won’t make
him rich. But if he can help future
generations, he’s fulfilling a personal
and environmental need. He also
works with others interested in starting
mattress recycling businesses.
“I help people to build their own
mattress recycling plants around the
world,” Erdem says. “I will help people
for free if they really want to start
recycling.... Because there are so many
mattresses out there, there is no way I
can handle all of them (by myself). So
I’d rather see a lot of other guys doing
it, and there will be no mattresses on
the street and in the landfills.
“My goal is to create jobs and clean
the environment,” he says. “We are
turning waste to useful resources. We
are leaving ... a safer tomorrow for the
kids.”
EDITOR’S NOTE: To see a short
report on MattCanada prepared by
CBC television, go to http://www.
mattcanada.com/media.html
HomeGoodsOnline.ca
< 35
BUYING GROUPS>>>
BUYING
into
the
PROGRAMS
MEGA, CANTREX
AND HOME WORK
TO REFINE THEIR
BEDDING PACKAGES,
AIMING TO HELP
SMALLER STORES
STRIKE MORE GOLD
IN AN ALREADY
STELLAR CATEGORY
BY SUZANNE BOLES
38
>
HGO bedding report
B
uying groups are very powerful in Canada’s independent furniture
and mattress retailing community. With their ability to buy collectively and
negotiate terms with manufacturers, these groups help level the playing field
between smaller independent retailers and industry giants.
Key executives at Mega, Cantrex and Home say they will continue to enhance
their bedding programs, helping their retail partners reap even greater returns from
an already profitable category.
Home Goods Online spoke to representatives of the three groups to find out
more about these programs and get their views on the state of the industry, now and
moving forward.
How buying group programs benefit retailers
MEGA GROUP/BRAND SOURCE is Canada’s largest group of independent
furniture retailers and is entirely member owned, with over 600 members. Retail
banners include Countrywide, Sleep Experience and Multi Meubles in Quebec.
Gerry Wong, director, bedding and Sleep Experience, says Mega offers members
“a complete turnkey solution.” This includes meetings allowing members to tap into
knowledge and share information with other retailers, promotional networks, and
advertising and merchandising programs.
Mega Design works with retailers looking to renovate or refresh their store
interiors to create “inviting environments that help induce sales.”
Story continues on page 43
Sleep sets from Natura
are part of the new look
for Sleep Experience
presentations at
Mega Group member
stores, here at the
Barber & Haskill store
in Midland, Ontario.
The store’s exterior is
shown on page 38.
The group has an exclusive relationship with
PROFITsystems, a leading point-of-sale software
provider in North America. Mega also offers volume
rebates, credit card savings, extended warranties, gas
purchase discounts, group insurance and more.
The group’s proprietary mattress, Dimensions, is
available exclusively to Mega members.
CANTREX GROUP banners include Mattress
World, Furniture Plus and, in Quebec, Accent. The
company is now owned by Sears Canada.
Jean Favreau, senior network director, furniture
and bedding, says the company is “not a typical
buying group,” preferring to define itself as a
“marketing group.”
“We provide more marketing to offer (members)
more structured networks, like Mattress World. We
provide strong banners for those selling bedding.”
Benefits include marketing and advertising
support, assistance with Web technologies, merchant
retail services including the Sears charge card, helping
members find ways to get the best profit margins,
merchandising and store management support, and
Strength and Weakness (SWAT) evaluations.
Mega’s Sleep Experience
at a glance
NUMBER AND AVERAGE SIZE OF A FREE-STANDING STORE’S SELLING
SPACE: Six Sleep Experience units; approximately 3,000 square feet.
NUMBER AND AVERAGE SIZE OF AN IN-STORE GALLERY/
PRESENTATION: Eight; 2,000 square feet.
MAJOR SUPPLIERS: Serta, Sealy, Simmons, Springwall, King Koil,
Natura World and Kaymed.
UNIQUE SUPPLIERS: Exclusive arrangement with Kaymed, an Irish
company specializing in memory foam, latex and gel beds.
BASIC CONCEPT: Provide members with bedding programs. Work
with dealers who want to buy and join in specific programs. Work with
manufacturers to produce an advertising and marketing calendar.
Training provided by suppliers. Programs monitored throughout the year
to ensure competitiveness.
GROUP SERVICES: Training, advertising, advertising calendars, POP
materials. Create store banners, flyers and all communication tools.
PLANS TO OPEN NEW STORES IN THE NEXT SIX TO 12 MONTHS: One
free-standing store in Sudbury, Ontario; one gallery in Woodstock, New
Brunswick.
HomeGoodsOnline.ca
< 43
on its natural, organic program products like Natura.
“There’s a growing business opportunity” in natural
products. “The customer wants that,” says Favreau.
Cantrex will continue to do market research, as
they always have, but now having access to market
research done by Sears gives Cantrex an advantage
over the competition.
Cantrex University training for retailers, previously
focused on appliances and furniture, will be adding
mattresses to the mix.
McCabe says Home is seeing growth in its
specialty sleep products, including memory foam
and latex. The group will be introducing a specialty
sleep program this fall. The group also will emphasize
environmentally friendly products.
Mega’s private-label bedding program “will
continue to be part of our merchandising ... giving our
dealers a product they can go out and promote as a
value product,” says Wong. Serta is a key product for
all Countrywide stores and will be maintained and
enhanced.
Are independent retailers doing
a good job selling mattresses?
Yes, says Wong. “I think there’s always room for
improvement,” but the positives are definitely there.
“They were the first to embrace specialty bedding
and also improved frequency of advertising. It’s
getting their voice heard and we’re encouraging our
retailers to advertise at a more frequent level.”
From the vantage point of a company that offers
a mix of home goods in all their stores, Home’s
McCabe says, “I do think the independent retailer
could do a better job with mattresses. I still don’t
think they recognize the opportunities and margins
open to them and they haven’t maximized them …
compared to specialty sleep shops.”
He suggests educating sales staff, giving them more
training and product knowledge, will help.
Favreau at Cantrex says independent retailers are
“great entrepreneurs, but in any business there’s always
room for improvement.” He agrees with McCabe
about the importance of sales training.
“Training, knowledge of the products and how
they should be sold to the customer is where we really
have to work hard with our stores to increase sales and
profit in this category,” Favreau says. HGO
– SUZANNE BOLES is a freelance writer based
in London, Ontario. She is a past president of the
Professional Writers Association of Canada.
Morgan McCabe,
merchandise manager
for Home Furniture,
checks out a typical
bedroom/bedding
display at one of the
group’s 75-plus dealerowned stores. “We are
selling higher-priced
bedding,” he says.
“The customer today is
looking for a premium
night’s sleep, and they’re
willing to pay for it if
they find what they’re
looking for.”
“Mattresses are the most profitable category for
the industry as a whole.”
– jean favreau, cantrex group
HomeGoodsOnline.ca
< 45