HGO Winter 2025/2026

Patriotic Purchasing

Rise of ‘buy Canadian’ movement shifting consumer behaviour, retail landscape

DEMYSTIFYING SHOPPING MYSTERY

MONTE DESIGN ELEVATES NURSERY FURNITURE

Featuring 5 support zones for improved spinal alignment, 100% naturally-derived* latex foam and an advanced cooling system for premium all-foam comfort.

stories

14

SNUGGLING, SNOOZING IN STYLE

Born out of the need to furnish Ralph and Michelle Montemurro’s nursery with beautiful and purposeful pieces, Monte Design is renowned for its premium custom-made products that blend modern elegance and ultimate comfort. The Canadian company that’s headquartered in Toronto celebrated its 20th year in business in 2025.

12 THE ‘EH’ MOVEMENT

Trade war tensions with the United States remain top of mind for many Canadians, who are rethinking how and where they shop. The trend of patriotic purchasing is becoming clearer; it’s not just a passing preference but a cultural shift.

28

SEPARATING FACT FROM FICTION

Misconceptions about retail management abound. Some have been repeated so often they sound like facts. In an effort to right the record, here are the five most common myths debunked, and the actual truths to help you succeed in your business.

22 INSIDE INTELLIGENCE

Mystery shopping is a proven market research method that allows you to gain direct first-hand intelligence on your competitors. Information gleaned can help improve the customer experience, develop products and services, and enhance training programs.

32

A PARADIGM SHIFT

Retailers often focus too much of their marketing efforts on demographic segments. Instead, they should find out what jobs consumers need to get done. By understanding their fundamental needs, retailers can drive consumers to purchase specific products.

RETROSPECT AND REALITY

This year is going to be bittersweet for me, as I will only have teenagers in the house in months’ time. While I want my kids to grow up and become independent adults, it’s hard to see them leave their childhood behind. I remember being pregnant like it was yesterday — all the excitement of bringing our first child into this world. Recently married and having just bought and moved into our starter home, I couldn’t wait to decorate the nursery and outfit it with furniture essentials. The crib and dresser-turned-changing table were relatively easy to select; finding a comfortable yet stylish chair that wouldn’t be useless after a few years proved incredibly difficult. Suitable choices were limited, or at least that’s how it seemed. With baby’s pending arrival looming closer, and apprehensive to purchase a chair online without having tried it out in person first, I settled on a run-of-the-mill chair from a bigbox retailer that I was never quite happy with. In retrospect, I wish I had known about Monte Design, a Canadian brand that specializes in modern kids’ furniture and this issue’s company profile.

To begin the winter edition is the second instalment of our Legal File column. It delves into social media speech and the workplace, and when employees can be disciplined for personal posts made after hours. Next, Canada’s housing market is (once again) the focus of By the Numbers, given how closely tied the furniture industry is to it. We review 2025 as a whole, drill into fourth quarter statistics and detail what’s projected for 2026. Then, we turn our attention to the ‘patriotic purchasing’ movement, which is especially relevant for small and independent businesses and the subject of our The Consumer column.

In the second half of this issue, following our In Focus feature of Monte, topics covered include competitive mystery shopping, in-house financing, retail management myths, 3-D product visualization and jobs-based marketing, among others. We close, as usual, with our Observations column; however, unlike the regular insights from industry experts, we look back at some of the top Canadian news stories of 2025, as they relate to the big-ticket home goods sector.

Before you turn the page and start reading, it’s with great sadness that I share that we have lost our beloved colleague Annette Carlucci, following a private battle with cancer. Annette was the anchor of our design department and behind Home Goods Merchandiser’s aesthetic, methodically laying out every page to enhance the overall reading experience. She was my teammate with whom I shared many magazine projects and deadlines for nearly 18 years. Annette will be missed not only for what she did, but for the incredible person she was.

PUBLISHER

Kris McFadden krism@mediaedge.ca

PRESIDENT

Kevin Brown kevinb@mediaedge.ca

GRAPHIC DESIGNER

Thuy Huynh-Guinane roxyh@mediaedge.ca

PRODUCTION

MANAGER

Ines Louis Inesl@mediaedge.ca

PROGRAMMATIC

ACCOUNT MANAGER

Rhea Sood rheas@mediaedge.ca

EDITOR

Clare Tattersall claret@mediaedge.ca

ART DIRECTOR

Annette Carlucci annettec@mediaedge.ca

CIRCULATION

Adrian Holland circulation@mediaedge.ca

SOCIAL MEDIA DIRECTOR

Steve Chester stevec@mediaedge.ca

Home Goods Merchandiser is published four times annually — Spring, Summer, Fall and Winter — for Canada’s bigticket home goods industries. Subscriptions are free to qualified participants in Canada’s big-ticket home goods industries. Subscribe at www.homegoodsonline.ca. Readers from outside Canada may purchase subscriptions for $40 Cdn. For subscription inquiries, e-mail circulation@mediaedge.ca. Return undeliverable Canadian addresses to: Home Goods Merchandiser 251 Consumers Road, Suite 1020, Toronto, Ontario M2J 4R3

MediaEdge Communications and Home Goods Merchandiser disclaim any warranty as to the accuracy, completeness or currency of the contents of this publication and disclaims all liability in respect to the results of any action taken or not taken in reliance upon information in this publication. The opinions of the columnists and writers are their own and are in no way influenced by or representative of the opinions of Home Goods Merchandiser or MediaEdge Communications.

Copyright 2026

Canada Post Canadian Publications Mail

Sales Product Agreement No. 40063056

ISSN 2291-4765

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WHERE LUXURY MEETS INNOVATION

Premium materials, leading technology, and advanced support system combined to create the most luxurious sleep experience.

OFF THE CLOCK ONLINE CONDUCT

When employees can be disciplined for personal social media posts

BY J.P. KARAM

IN TODAY’S HYPER-CONNECTED WORLD, where personal opinions are frequently shared on platforms like X (formerly Twitter), Facebook, Instagram and TikTok, the lines between professional and private life are increasingly blurred. A common inquiry for Ontario employers is determining when they can discipline or terminate an employee for something they post online during their personal time.

While employees have rights to freedom of expression and privacy, those rights are not absolute, particularly when off-duty conduct intersects with workplace reputation, safety or operations.

THE

LEGAL LANDSCAPE

In Ontario, employment is governed by a combination of statutes, such as the Employment Standards

Act, the Human Rights Code and common law principles. None of them allow employees to act however they wish outside of work hours, nor do they permit employers unlimited discretion to police personal behaviour. Instead, the laws try to strike a balance between an employer’s legitimate interest in maintaining its reputation and operations, and an employee’s right to a private life.

Ontario courts and tribunals have recognized that off-duty conduct can, in certain circumstances, be grounds for discipline or dismissal, but only where there is a clear and material connection to the employment relationship. This threshold is difficult to meet and employers carry the burden of proving the conduct has harmed, or is reasonably likely to harm, the employer’s interests.

OFF-DUTY MISCONDUCT

Off-duty misconduct generally refers to behaviour occurring outside of work hours and off work premises that an employer believes negatively impacts the employment relationship. Historically, this may have included incidents like criminal charges, harassment of coworkers outside of work or intoxication-related events. In the digital era, however, the definition has expanded to include online behaviour, particularly the content shared on social media platforms.

What distinguishes social media activity from other forms of off-duty conduct is its visibility and potential for viral amplification. A post made in seconds can be screenshot, shared widely and preserved permanently, even if deleted. In some cases, posts that seem personal or private can easily be linked back to the individual’s employer, intentionally or not. This reality significantly influences the legal analysis of whether off-duty social media conduct justifies employer discipline.

SOCIAL MEDIA USE BY EMPLOYEES

Ontario case law provides some guidance on how tribunals and courts evaluate off-duty social media conduct. A leading principle emerges from the broader doctrine of ‘just cause’ in employment law: for an employer to terminate an employee for offduty conduct, it must demonstrate the behaviour harmed the employer’s interests in a material and demonstrable way.

In cases involving social media, courts tend to ask: Did the employee’s post identify their employer? Did the post go viral? Was the content discriminatory, harassing, violent or otherwise offensive? Did it attract negative attention to the employer?

The more affirmatively these questions are answered, the more likely the discipline will be upheld.

BALANCING FREEDOM OF EXPRESSION

A frequent point of contention is the employee’s right to freedom of expression. Although the Canadian Charter of Rights and Freedoms guarantees this right, it only applies to government action, not private employers. However, the principle of expressive freedom is not entirely irrelevant. Courts may consider whether an employee’s post constitutes a personal opinion shared privately and

whether the employer proportionately addressed that expression.

It is important to note that employees who work for public institutions, such as government departments, school boards or hospitals, may have greater protections under the charter. Even then, expression rights must be weighed against the employer’s duty to maintain a safe and respectful workplace and protect its public image.

CROSSING THE LINE

Disciplinary cases based on social media conduct have become more common in the last decade, with outcomes varying depending on context. For example, an employee who posts racist or discriminatory remarks, even on a personal account, may be terminated if the post is linked to their employer, especially in sectors like education, healthcare or government. Employers have successfully argued in some cases that such posts damage public trust, compromise the employer’s diversity commitments or undermine workplace safety.

In contrast, courts have occasionally reinstated employees where the disciplinary response was found to be disproportionate to the conduct. If a post was vague, anonymous or made without intent to associate with the employer, especially where the employee showed remorse, tribunals have sometimes

concluded that a warning or suspension would have sufficed.

EMPLOYER POLICIES

Employers who wish to regulate off-duty conduct, especially on social media, must ensure they have clear, written policies that are communicated to employees. These policies should outline expectations around respectful conduct, confidentiality, harassment and the use of employer branding or logos. Employees should be made aware that misconduct on social media, even outside of work hours, may lead to discipline where it adversely affects the employer.

However, policies cannot be overly broad or vague. A policy that states “any conduct harmful to the company will result in termination” is unlikely to survive legal scrutiny. Moreover, policies must comply with human rights legislation, meaning they cannot be enforced in a way that discriminates

against protected grounds, such as race, religion, gender and disability.

HUMAN RIGHTS CONSIDERATIONS

Social media posts may also touch on matters of religion, political belief or other protected characteristics. For example, a human rights complaint may arise if an employee posts a personal religious view that some find controversial and the employer disciplines them. In such cases, legal analysis becomes even more nuanced, as tribunals must weigh freedom of belief against the right to be free from discrimination and harassment.

BEST PRACTICES FOR EMPLOYERS

For Ontario employers, disciplining employees for off-duty conduct requires a careful balance between protecting business interests and respecting employee privacy and rights under employment and human rights laws.

Employers should implement a clear, consistently applied social media policy to mitigate legal risk. This policy should outline acceptable behaviour, clarify expectations around brand representation and specify potential consequences of violating those expectations, even off the clock.

When an issue arises, employers must assess whether the social media activity in question has a legitimate and material connection to the workplace. To justify discipline, the post must reasonably harm the employer’s reputation, breach confidentiality, disrupt the workplace or conflict with the employee’s duties. Knee-jerk reactions to controversial or unpopular opinions can expose the employer to liability if those posts do not actually impact the employment relationship.

Employers should document all findings, ensure the employee has an opportunity to respond and consider progressive discipline where appropriate. Seeking legal advice before taking disciplinary action is strongly recommended to ensure decisions align with employment law standards and minimize the risk of wrongful dismissal or discrimination claims.

J.P. Karam is a partner at Willis Business Law, where his practice is restricted to representing employers in all areas of labour and employment law. Willis Business Law is a top-tier business and employment law firm located in Windsor, Ont. The firm is committed to providing first-rate, innovative business law, employment and labour law, and mediation services. J.P. can be reached at 226-526-9954 or jpkaram@willislawfirm.ca.

DELAYED RECOVERY

2025 the year that wasn’t for Canada’s housing market, leaving 2026 poised for possible reset

BY CLARE TATTERSALL

ORIGINALLY PROJECTED TO BE A REBOUND year for residential real estate, with buyers beginning to come off the sidelines after a significant slowdown across many Canadian markets, 2025 was instead another quiet one for housing. Political shifts and economic uncertainty resulting from U.S. tariff threats led to lower overall sales. Annual transactions totalled 470,314, a decrease of 1.9 per cent from 2024, reports the Canadian Real Estate Association (CREA). Most of the weakness was front-loaded in the first quarter, followed by a decent sales rally mid-year, and a bit of a stall to fin-

ish off 2025. The national average home price was $679,543, falling 1.5 per cent from $689,783 in 2024. Looking at the final quarter specifically, home prices largely held their ground, down just one per cent to $681,916 year-over-year, despite subdued activity levels. Among Canada’s major cities, the largest price declines were concentrated in the most expensive markets — Toronto and Vancouver — where aggregate home prices fell 5.7 per cent and 4.1 per cent year-over-year, respectively, in the fourth quarter. Price softness in these cities has been most evident in the condominium segment,

which remains challenged by headwinds from elevated inventory levels, a pull-back from investors and hesitancy among first-time buyers who often enter the market via this property segment.

In contrast, the Greater Montreal Area’s aggregate home price increased 4.5 per cent year-overyear during this same time period. Quebec City recorded the highest year-over-year aggregate price increase (13.2 per cent) among Canada’s major regions for the seventh consecutive quarter.

Other big cities saw year-over-year price increases in the fourth quarter, though more moderate in comparison to those in Quebec. From east to west, the aggregate price of a home rose by 1.7 per cent in Halifax, 2.1 per cent in Winnipeg, 2.8 per cent in Regina, and 1.2 per cent in Edmonton.

After several years of strong price growth, 2025 marked a year of transition for Calgary, where the aggregate price of a home fell one per cent yearover-year in the fourth quarter.

In the nation’s capital, prices remained flat in Q4, compared to the same period in 2024.

HOUSING RECOVERY ON THE HORIZON

With 2025 now firmly in the rear-view mirror, it’s time to focus on the year ahead. CREA anticipates the mid-year upward trend experienced in 2025 will pick up once again in 2026. But while the spring market is expected to bring a renewed sense of momentum, it will not be the sharp surge in activity seen in past cycles, according to real estate brokerage Royal LePage. Continued consumer caution and a lingering lack of urgency are likely to temper both sales activity and price growth, keeping market conditions more balanced.

By year’s end, however, CREA projects some 494,512 residential properties will have traded hands, representing a 5.1 per cent year-over-over increase. The national gain is predicted to be driven largely by British Columbia and Ontario, where sales have much more room to recover. Activity in B.C. and Ontario is anticipated to rise by more than eight per cent in 2026, with gains of less than half that in most other provinces where sales are already running at higher levels and supply is far more constrained.

A major factor underpinning CREA’s forecast for higher activity is pent-up demand, particularly from first-time buyers, many of whom have been shut out of the market over the past four years. While interest rates have not fallen as far as hoped, they have likely dropped enough to restore the

attainability of homeownership for many, despite affordability that remains more challenging than it was prior to 2020. At its rate announcement in October 2025, the Bank of Canada clearly indicated its overnight lending rate of 2.25 per cent is likely about as good as it’s going to get. This could also draw in borrowers who had been waiting for that signal before taking on a fixed-rate mortgage.

On the supply side, an important factor to watch in 2026 is the pace at which inventory could be drawn down if demand is driven disproportionately by firsttime buyers. These buyers remove listings from the market without adding new supply, accelerating inventory depletion.

CREA expects the national average home price will rise by 2.8 per cent on an annual basis to $698,881 in 2026, with smaller increases in B.C., Alberta, Manitoba, Ontario and Nova Scotia, and larger gains in other provinces where prices have continued to climb at a decent clip in recent years, particularly Saskatchewan, Quebec, and Newfoundland and Labrador. That said, as much of that price growth has been bolstered by record population growth up until recently, price gains in those hotter markets are predicted to be markedly lower than those recorded last year, falling to the three to six per cent range in 2026, from the six to eight per cent range in 2025, with some anomalies.

Drilling down to major metropolitan markets, Royal LePage projects price declines in both Vancouver and Toronto, 3.5 per cent and 4.5 year-overyear, respectively, in the fourth quarter of 2026. The aggregate price of a home in Ottawa, Edmonton and Halifax is anticipated to rise over the same time period by two per cent, while Calgary and Winnipeg are expected to experience a more moderate price increase of 1.5 per cent each. Quebec City will see the greatest increase, a projected 12 per cent year-overyear in Q4, followed by the Greater Montreal Area, which will see prices rise five per cent, followed by Regina (four per cent).

While the stage is set for a more active housing market in 2026 — the combination of lower borrowing costs and more favourable entry prices is creating a compelling window for those looking to enter the market — greater numbers of buyers will only wade in when fully convinced the economy and employment are on solid footing, and they feel more secure in making long-term decisions. Another trying year in U.S-Canada relations could upend forecasts, resulting in a repeat of 2025.

“While interest rates have not fallen as far as hoped, they have likely dropped enough to restore the attainability of homeownership for many.”

THE ‘EH’ MOVEMENT

How national pride is shifting consumer purchasing decisions, reshaping home goods retail BY

MICHAEL SCIDA & SOPHIE MARAI

CANADIAN CONSUMERS ARE REDEFINING WHAT home means and how much they’re willing to invest in it. Rising disposable incomes, shifting demographics and a renewed sense of national pride are fuelling a surge in spending on furniture, decor and appliances. For retailers in the home goods sector, these changes present both challenges and opportunities.

According to Environics Analytics’ HouseholdSpend data, Canadians have spent more than $4 billion on home refresh projects in the past year. This growth is supported by an aggregate disposable income that now exceeds $50 billion nationwide.

The average household allocates nearly $7,000 each year to home-related purchases, with home improvement leading the way at more than $4,000 per household. Furniture accounts for just over $1,000, while small appliances and decor combined represent close to an additional $1,000. Large appliances round out the category at approximately $400 per household.

Behind these numbers are distinct consumer segments with unique priorities. Older families and empty-nesters, often living in homes that were built decades ago, are investing in quality furnishings and durable decor. Middle-aged families are modernizing properties built after 1981, balancing style with practicality. Large, diverse households in suburban markets are driving demand for multigenerational living solutions and new home furnishings. Meanwhile, younger Canadians, many of them renters, are seeking affordable yet stylish options for decor and small appliances.

While spending is strong, value remains a critical factor. Additional behavioural and psychographic data provide deeper insights into these shoppers. Canadians are increasingly looking for competitive pricing, loyalty programs and flexible financing. At the same time, technology is shaping the shopping experience. More than half of consumers consult online reviews and product specifications before making a purchase, yet the majority still buy in-store. This underscores the importance of seamless omnichannel strategies that connect digital research with physical retail.

Perhaps the most compelling trend shaping the home goods market today is patriotic purchasing. This isn’t just a passing preference; it’s a cultural shift. Canadians are increasingly motivated by national pride, economic resilience and a desire to support local businesses. These values are influencing what they buy, where they shop and how they perceive brands.

Fifteen per cent of Canadians will choose Canadian-made products regardless of price, driven by a deep commitment to supporting domestic manufacturing and small businesses. Another 32 per cent identify as proud Canadians. They are consumers who may not always buy local but are open to shifting their habits when given compelling reasons, such as quality, sustainability or community impact. Meanwhile, 39 per cent fall into the average local shopper category. They are willing to purchase Canadian-made goods if cost-competitive.

This movement is particularly strong in regions like Atlantic Canada and the Prairies, where supporting local businesses is woven into community identity. In British Columbia and Ontario, environmental consciousness is an additional decision driver of the customer journey. By understanding these mindsets, retailers and manufacturers can build marketing that deeply connects with customer values and prioritizations.

For retailers, this trend offers a clear opportunity. Highlighting ‘Made in Canada’ claims on furniture, decor and appliances can resonate deeply with shoppers. Beyond labelling, storytelling matters. Sharing the origins of products, artisans behind them and local impact of each purchase creates an emotional connection that drives loyalty. Retailers can also amplify this message through in-store signage, digital campaigns and partnerships with Canadian suppliers.

Patriotic purchasing isn’t just about pride — it’s about trust. In an era of global uncertainty, consumers see buying Canadian as a way to strengthen the economy and preserve their nation. For home goods retailers, aligning with these values can transform a transactional relationship into a lasting bond.

Michael Scida is vice-president of retail business development and Sophie Marai is vice-president of account management at Environics Analytics. They used best-in-class data from HouseholdSpend, Opticks powered by Vividata, and SocialValues for this article, as well as the company’s segmentation system to identify key consumer groups. Environics is a premier marketing, information and analytical services company in Canada, helping thousands of customers turn data and analytics into strategy, insights and results. Michael and Sophie can be reached at inquiries@environicsanalytics.com.

“This movement is particularly strong in regions like Atlantic Canada and the Prairies, where supporting local businesses is woven into community identity.”

Snuggling, Snoozing In Style

Monte Design redefines nursery furniture with timeless products for modern families that won’t outgrow baby

BY CLARE TATTERSALL

EXPECTING A BABY CAN BRING MIXED emotions, ranging from joy and excitement to worry and fear, as there’s no way of knowing exactly what to expect, whether it’s the first or fifth child. Planning a nursery for the newest family member can deliver a sense of certainty that’s calming at a time of great change. When it comes to furniture, there are generally three must-haves: a crib, combination dresser and changing table, and glider or recliner.

For Ralph and Michelle Montemurro, finding a stylish yet comfortable upholstered chair for their third child’s bedroom that fit the aesthetic of their newly built, more contemporary home in Toronto, proved to be a challenge.

“Everything was very traditional at the time and quite unattractive,” recalls Michelle, whose son was born in 2005.

Unable to find anything in the kid’s furniture category that they truly loved, and realizing there was a big gap in the market for modern nursery furniture, Ralph, a serial entrepreneur, took matters into his own hands. He set about developing a glider that would satisfy their need and appeal to parents’ desire for a top-notch, attractive, flexible piece of furniture that could eventually be used anywhere in the home once it outlived its original purpose.

Having recently sold a sportswear company, the timing couldn’t be more perfect, at least for Ralph. Not only was he eager to enter a new industry but he had the necessary startup funds.

Michelle, on the other hand, was a little apprehensive and rightly so; a mom of three kids under the age of five (the Montemurros have since expanded their brood by one), she already had her hands full, so to speak. However, Michelle knew they were onto something big, call it mother’s intuition, and had great faith in her husband of then-nine years.

“He’s got amazing business acumen and a real passion for building exceptional products,” she says about Ralph, who initially planned to pursue a career in property development after graduat-

ing from Western University’s urban development program, even working in his family’s construction business for one year.

At first, Ralph explored manufacturing in China, but nixed the idea after a short trip abroad and decided to commit to wholly Canadian production. This would ensure the highest quality product was made using premium materials and that he had complete operational oversight.

While simultaneously searching out local manufacturers, Ralph found a small upholstery shop to help with the Italian design-inspired prototype. After 12 months and 40 iterations, the Luca glider was ready to present to the world, and Monte Design was born in 2005.

Named after their third son Luke — Luca is the Italian spelling of Luke — the glider with proprietary mechanism immediately set a new standard for furniture in the modern nursery. It features simple lines and bench-made upholstery using Oeko-Tex and Reach certified fabrics with contrast or complementary piping, available in dozens of colours. The frame is hardwood and engineered plywood with interlock construction for maximum strength. Ergonomic arm height for feeding baby and high back for proper headrest provide therapeutic comfort for long days and nights. A matching lumbar pillow offers added lower back, neck or elbow support.

Sales were swift, with the Montemurros’ friends and family members being the first to place orders. This was unsurprising since many were part of an unofficial focus group.

“All of our friends were having babies so we set up a prototype in our front hall and had them test it out with their little one,” explains Michelle, who became the primary product tester after having Luke. “We’d take their feedback and make the necessary refinements until we got it just right.”

From word-of-mouth, the debut chair became a highly sought-after nursery staple, allowing Monte

to move from an online-only sales setup to a network of premium retail partnerships. The brand can now be found in more than 150 retail locations, predominantly independent stores with a focus on baby and kids, across Canada and in the United States. It also operates a showroom in the northwest end of Toronto, open to the public Monday through Friday.

The premiere product’s almost-immediate popularity, growing from a few sales a week to more than 25 per week in just one year, motivated Ralph to create different models with various designs and features and then further expand Monte’s line of offerings. A natural progression was the addition of a twin upholstered bed in 2013, which would appeal to current customers, whose kids were transitioning out of a crib or toddler bed, and a broader clientele beyond new parents and parents-to-be. Well-received, that introduction eventually led to the manufacture of a full range of bed sizes: twin, twin XL, double/full, queen, king, and day and trundle beds. Fast-forward to today, Monte’s product line also consists of rockers and recliners, otto-

mans, side tables, lounge chairs, sofas, and other home furnishings and accessories. Yet, despite the wide range of options, the Luca glider — now in its 21st year of production — is still a bestseller, only topped by the brand’s recliners and beds.

“The sleep sector is where we see the greatest potential for growth,” says Ralph, adding their beds can now be found in hotels, though the majority of sales are still made in the residential segment.

Reflecting on the past two decades, Ralph attributes Monte’s success to its steady climb, rather than a sudden jump. From the outset, the company’s president and CEO adopted a slow, intentional growth strategy and applied it across the board, from product launches — just 10 in the first decade — to hiring to marketing.

What started as a business of one, with Ralph performing multiple roles as the sole staff member, is now more than 40 employees strong. Ralph says each person plays a pivotal part in progressing the brand, including Michelle, who serves as Monte’s associate creative director. A former teacher turned stay-at-home mom, Michelle began working part-

time in the business about 10 years ago, once their kids were all in school. She has put her English degree from Western University, where she met Ralph, to good use, churning out copy for Monte’s website, which is currently being revamped, and collaborating on marketing efforts.

While social media advertising and influencer promotional campaigns have become essential to driving people to Monte’s online store and retail partner locations, the company’s adoption of Shopify Plus at the start of 2018 has most positively impacted consumer traffic. Monte upgraded to the enterprise-level e-commerce platform so it could showcase the high-quality craftsmanship that goes into each and every one of its products, and to provide the level of service that customers deserved. (Its existing website was not showing the full potential of what well-built furniture can

offer and the full extent of each customer’s journey at a time when poorly made knock-offs were entering the market.) With the advanced tracking and performance tools Shopify Plus offers, Monte has continued to grow, even in the existing economic climate.

Although concerned with the current tariff situation that has put pressure on upholstered furniture imports to the United States, especially since the majority of Monte’s sales are made stateside, Ralph says American consumers’ appetite for their products remains strong.

“All of our products are meticulously made-to-order in our Toronto workshop using premium quality fabrics and sustainable materials like locally sourced wood,” says Ralph. “While originally created for the nursery phase, they’re designed and built to last, well beyond the initial stage of a child’s life.”

“The sleep sector is where we see the greatest potential for growth.”

By Corrie-Ann Knell

In the home furnishings industry there is one profession that touches nearly every facet of the business: manufacturer sales representatives; referred to more commonly as “Reps”. They talk to vendors, retailers and retail sales associates alike.

The products they carry cross all categories from furniture and accessories, to appliances, bedding, electronics and add-on services. They see all, touch all, and convey crucial communications up and down the supply chain. Not to mention they are responsible for sales growth for both their vendor clients and retail partners.

Their perspective is an integral part of the picture — and a natural one to explore here in Retail Pulse

The

calm in the chaos

For Arie Groeneweg, an independent agent covering Southwestern and Central Ontario, the pandemic redefined the role.

“It became more important than ever to manage expectations,” he says. “Dealers take their cue from their representatives, especially when trust is there. My job was to be the calm in the storm— ‘the sky is not falling’; here’s what we’re doing; here’s how I can assist.’”

He insists that skilled sales agents can—and should—be leveraged more effectively by their retail partners, noting that their expertise and mandate are to bring stability and support in challenging times.

The RSA challenge Antonello D’Onofrio, a Quebec-based agent with decades of hands-on experience—from furniture and cabinetry making to retail store ownership; he has seen every side of the business and understands the divide clearly. Some sales associates have been anchored in the same store for decades, while others cycle out in mere months.

The difference, he says, often comes down to mindset, team connection and steady income. “The younger ones want to see money right away,” he notes. “But in this business, it can take time. You must invest time and keep yourself motivated.”

Both experts point to the same pain point on the sales floor: turnover. Groeneweg doesn’t mince words. “High turnover. Low engagement. Low commitment to sales as a career,” he says. Trainees often don’t stick long enough to build rapport or confidence. The result? It’s harder for retailers to professionalize the role; increasing the difficulty for Reps to coach, mentor and measure progress.

Training that lands (and lasts)

Groeneweg spends many weekends leading in-person training sessions and says the effort always pays off when “even seasoned staff see the benefit.” His sessions blend product knowledge with practical selling techniques—objection handling, closing language— and he creates his own printed “leave-behinds” for quick reference.

If you don’t believe in what you’re presenting, you can’t transmit the energy to the customer “ “

D’Onofrio structures his meetings in three parts: who we are, what we sell, and how we sell it. “If you don’t believe in what you’re presenting, you can’t transmit the energy to the customer,” he says. His sessions are interactive and eye-to-eye. “Participation keeps people alert; practice makes them better.” He likens training to exercise and sales skills to tools in a Swiss Army knife and advocates that consistent use sharpens both.

Both agree the industry needs more brand-supplied, categoryspecific training courses that blend product details with real selling strategies. Until then, they rely on what works: face-to-face coaching, concise resources, open communication—and the undeniable power of showing up in person.

Incentives: less sizzle than before SPIFs (sales performance incentive funds) and sales contests aren’t what they used to be. Groeneweg says he sees fewer manufacturer-funded incentives than in previous decades. Cost and effectiveness are likely factors. Retailers are open to co-created promotions when they make sense, but no one wants to set the wrong precedent. Where overemphasizing spiffed items can skew the priorities on the sales floor, especially when promoted products carry slimmer margins than regularly priced goods.

D’Onofrio keeps it human when budgets are tight: show up with coffee, cookies and care. The adage of “breaking bread” is still the best way to connect and build relationships.

Both agree that financial incentives can be effective—when the rewards are well designed and earned. The real challenge for many retailers lies in finding a system that can easily track, measure, and recognize performance beyond the usual salary and commission structure.

Tariffs, supply chains—and a tilt back

to Canada

Tariffs and freight have taken a bite out of margins, especially for goods routing through the U.S. before crossing north. D’Onofrio has shifted to more Canadian suppliers to avoid compounding costs. Groeneweg sees an upside: renewed attention to Canadianmade goods, tighter buying, where retailers are “leaving no stone unturned” when it comes to finding the margin.

Bring back a Canadian market?

Markets still matter. High Point is valuable, but not everyone can justify attending. The loss of the Canadian Furniture Show has left smaller, rural independents out of the mix. Both Reps say regional open houses and Canadian showroom events are filling the gap, but the demand is there for a flexible, closer-to-home event.

What partnership looks like

A strong representative, Groeneweg says, acts as “an extension of both the companies I represent and the retailers I serve.” They understand the manufacturer’s parameters and advocate effectively within them, communicate proactively, and provide clear, balanced feedback on what’s working—and what isn’t. Above all, they remain a steady, reliable voice in every conversation.

For D’Onofrio, it’s about value, clarity and contact. When business tightens, communication increases—and so does effort.

“When it’s harder, you work harder,” he says. Promotions help; but ultimately service matters more. The trust that is created from proven partnerships and a deep understanding of the retailer’s business, has the most impact on who gets the order.

Advice to new agents

Groeneweg carries a checklist he calls the Six Ps. “Be professional, prepared, personable, punctual, and proud of who and what you represent.” He continues. “Then add passion.” Noting retail floor experience is a bonus as it can deepen empathy while appreciating the challenges retailers face.

D’Onofrio adds a dose of realism. “Treat the job like you’re starting at university,” he says. “Be mentally and financially ready for one to three years of building your business.” The same resources needed to succeed in school—time, discipline, and investment—are the very ones required to launch and grow a career in sales. “Measure yourself relentlessly—daily, weekly, yearly. Track performance and learn from it.”

The takeaway

Creating stronger RSAs equates to stronger retail stores—and agents are uniquely positioned to help strengthen them. A fair share of the responsibility for educating the next generation of sales associates falls squarely on Reps’ shoulders. They keep the human connection in the face of increased digitization while bolstering communication along the supply chain; a critical “last mile” in a customer’s decision-making process.

Strong reps do more than sell; they act as a vital link between the sales floor and the wider industry. They bring back insights from every store visit, sharing their discoveries on what retailers and vendor partners’ need to know to stay ahead.

At their best, manufacturer’s sales agents do more than just move product; they build relationships that drive growth. They mentor, motivate, and model what professionalism in retail sales should look like. Technology may streamline communication and sharpen efficiency, but it’s the human connection that gives those tools their purpose.

Prioritizing Homegrown Products

Canadian-made furniture sees growing country-wide support as consumers choose to spend their dollars on domestic goods

BY SUNNY PURBA

THE ‘BUY CANADIAN’ FURNITURE MOVEMENT

continues its ascent amid the ongoing trade war with the United States, and threats to our country’s sovereignty. While offering a unique opportunity for companies, the movement is not new; in recent years, more and more consumers have come to recognize the benefits of investing in domestic products. With a focus on craftsmanship, sustainability, customization and shopping local, Canadian-made furniture is making its way into homes across the country and reshaping the furniture industry.

THE CRAFTSMANSHIP ADVANTAGE

One of the primary drivers of furniture made in Canada is the craftsmanship that defines these pieces. Meticulous attention is given to every step of the furniture-making process, from selecting high-quality materials to executing intricate design elements.

Canadian furniture makers generally use traditional woodworking methods, such as dovetail join-

ery and mortise and tenon construction, to ensure the durability and longevity of their pieces.

The skill and care applied to finishing techniques, including sanding, staining and sealing, enhance the natural beauty of the wood and protect the furniture from everyday wear.

Canadian artisans draw inspiration from their surroundings, delivering unique, elegant and functional designs that differentiate their furniture from mass-produced alternatives.

Upholding tradition while embracing innovative design ideas, Canadian furniture makers evolve their artistry to meet the ever-changing demands of contemporary living.

PROMOTING SUSTAINABILITY

Furniture made in Canada is celebrated not only for its impeccable craftsmanship but also for its commitment to sustainable and responsible practices, which appeal to environmentally conscious

consumers.

Canadian furniture makers often use locally sourced wood from responsibly managed forests, reducing the environmental impact of production while supporting domestic industries.

By sourcing materials and labour within the country, Canadian furniture manufacturers minimize the carbon emissions associated with long distance transportation, contributing to a more sustainable production process.

Furniture makers in Canada routinely opt for water-based finishes and stains with low volatile organic compounds, ensuring their products have a reduced environmental impact and that they contribute to improved indoor air quality.

Emphasizing waste reduction, Canadian artisans repurpose offcuts, sawdust and other byproducts from the furniture-making process to heat their workshops or create additional products, decreasing overall waste production.

ENDLESS CUSTOMIZATION

Another significant factor contributing to the popularity of furniture made in Canada is the extensive customization possibilities.

Canadian furniture makers often provide madeto-order services, enabling clients to design bespoke pieces that fit their vision and integrate seamlessly into existing decor.

Clients are afforded a wide range of wood species, finishes and upholstery options, allowing for greater flexibility in personalizing their furniture selections.

Canada’s skilled artisans can adapt existing designs or create entirely new pieces to accommodate clients’ individual needs and preferences, overcoming potential design challenges along the way.

Unlike mass-produced furniture retailers, Canadian furniture makers foster long-term relationships with their clients, offering support, maintenance and advice throughout the life span of their furniture.

ECONOMIC IMPACT

The growing demand for Canadian-made furniture has far-reaching implications for the local economy, as purchasing these pieces directly benefits artisans, associated industries and community development.

By supporting domestic furniture production, Canada reduces its reliance on imported products, fostering a self-sufficient economy built on local talent and resources.

The thriving demand for furniture made in Canada generates employment opportunities for

skilled artisans, materials suppliers and local businesses within the furnishing sector.

Choosing Canadian-made products contributes to regional economic growth, which, in turn, leads to improved infrastructure, education and healthcare services.

As the demand for Canadian furniture rises, it encourages further innovation and development within the industry, ensuring the ongoing improvement of products, technologies and practices.

BUILDING A LASTING LEGACY

Canadian-made furniture has a timeless allure, boasting designs and quality that transcend generations and create lasting family heirlooms.

Canadian artisans focus on creating pieces with classic yet versatile designs that remain relevant as trends change, maintaining their value and aesthetic appeal across decades.

The use of high-quality materials, expert techniques and meticulous craftsmanship ensures Canadian-made furniture’s longevity, making it a worthwhile investment for homeowners seeking enduring pieces.

As Canadian-made furniture often lasts for decades, it becomes an integral part of family history and memories, fostering emotional connections across generations.

Owning furniture made in Canada instils a sense of pride in one’s cultural heritage and the talented artisans that contribute to shaping national identity through their craft.

Sunny Purba is owner and general manager of Prestige Solid Wood Furniture. Operating since 1991, Prestige has showrooms in Coquitlam and Maple Ridge, British Columbia. The company specializes in Canadian-made solid wood furniture with a variety of customization options.

INSIDE INTELLIGENCE

How mystery shopping your competitors can provide a competitive edge BY KENT SHEARDOWN

IN TODAY’S FAST-MOVING, CUSTOMER-DRIVEN marketplace, understanding your competition is less of an optional consideration and more a necessity. While performing your own internal analysis can offer some insights on your rivals’ product availability and pricing, this often falls short of capturing the full customer experience. That’s where mystery shopping your competitors becomes a strategic advantage.

Mystery shopping involves sending trained individuals to interact with rival businesses whilst posing as everyday customers. They gather firsthand data on consumer experiences, operational efficiencies, product availability, pricing strategies, negotiations and discounts so you can learn from your competition.

WHY MYSTERY SHOP

Mystery shopping your competition provides a fuller picture of what real customers experience. Your team may have reviewed rival websites and marketing materials countless times. But familiarity can breed blind spots. A mystery shopper provides a fresh, unbiased perspective — experiencing the business as a real customer would. This helps you understand how competitors present themselves, how they treat customers and what makes their experience stand out (or fall short).

Customer service, knowledge and trust are key differentiators, often playing a major role in the customer’s purchase decision. Mystery shopping reveals how competitors greet customers, handle inquiries, share their knowledge and expertise, and generally create a bond of trust. This can help you benchmark your own service and identify areas for improvement.

Competitor pricing strategies are often dynamic, changing regularly with flash sales, loyalty programs and bundled offers. Mystery shopping allows you to track these changes in real-time. You can see how discounts are applied, prices negotiated and promotions communicated. This intelligence helps you refine your own pricing and promotions to stay competitive and responsive.

Operationally, shopping your competitors can shed light on how they finance their pricing structure and afford to offer lower prices. The mystery shopper can evaluate everything from store ambi-

ance, displays and aesthetics to product availability and origin, delivery times and costs, return policies, and manufacturer and extended warranties, including their associated fees and interest rates. Mystery shopping uncovers the operational details that shape customer perceptions. You might discover that a competitor consistently runs out of stock and has to order products, causing delays, products are scratched and dented, or their finance rates are much higher. These patterns help spot opportunities to separate yourself from the competition and improve your own operations.

As more commerce shifts online, digital mystery shopping also becomes crucial. Evaluating competitors’ websites, mobile apps, chat support and checkout process reveals how well they engage customers digitally. These insights help optimize your own digital platforms for better conversion and customer satisfaction.

Telephone mystery shops can also be an economical method of gathering specific data. Here, the focus is not the sales presentation; it’s about being able to answer specific questions on a product that the mystery shopper can claim they saw instore, or asking how the financing program works.

These insights gathered from competitors can transform into actionable strategies that elevate your own business performance, assist with making smarter decisions, improve your own offerings and ensure you stay ahead in a competitive market.

An added benefit of mystery shopping is that knowledge gleaned can help you enhance internal training and development. You can take the best aspects of how each of your competitors interacts with customers to create tailor-made staff training sessions to exceed industry standards. Whether it’s improving tone, product knowledge or upselling techniques, mystery shopping helps you build a more capable and confident team.

Markets evolve, though, and so do competitors. An ongoing mystery shopping program keeps you informed of changes in customer expectations and industry practices. This continuous feedback allows you to adapt quickly and maintain your competitive edge.

SHOPPING WITH INTEGRITY

There are some limitations of mystery shopping your competitors that ethically need to be adhered to. These programs must respect their time, avoid deceptive tactics and only focus on the mystery shopper posing as a regular customer, asking for the same information any shopper might request. This means only public information may be gathered; there should never be an attem`pt to access confidential data.

Your competitors’ ability to do business must also be respected. Rival companies should not be overwhelmed with mystery shoppers during peak sales days and hours or busy seasons.

Mystery shopping your competitors isn’t about imitation — it’s about insight. By stepping into their shoes, you gain a clearer understanding of what works, what doesn’t and what customers truly value. In a crowded marketplace, clarity is power, helping you learn, adapt and lead with confidence.

Kent Sheardown is CEO of Mystery Shopping Canada Inc., which has provided cost-effective mystery shopping programs across Canada since 1996. Kent can be reached at 1-800-752-1295 or kent@mysteryshoppingcanada.com.

Let Customers Pay Their Way

Why retailers should consider financing (at least some of) their own sales

BY RONNY BENSIMON

AT NEARLY EVERY CONVENTION, BUYING GROUP, association meeting, market or performance group gathering, retailers talk about how to improve their bottom line. The conversation usually centres on increasing sales or margins, reducing expenses or attracting more customers.

But while retailers are open to almost any idea that can generate additional profit, why don’t more of them consider financing at least some of their own sales?

It’s worth asking another question: Why has the number of finance companies eager to handle your customers’ purchases grown so rapidly?

The answer is clear: Financing can be extremely profitable. And if it’s profitable for them, it can be very profitable for you.

PROS OF IN-HOUSE PAYMENT PLANS

Most retailers rely on outside finance companies, banks or lease-to-own providers to finance sales made in their stores. In doing so, they are handing over finance revenues and profits that could be staying with them.

While those outside finance companies are convenient, there are compelling reasons why retailers should do some of the financing themselves.

1

Competitive advantage. Flexible payment options and personalized financing plans help set you apart from competitors and create deeper relationships with customers. When customers feel supported in meeting their financial needs, they’re more likely to return, refer friends and family, and make repeat purchases.

2

Improved cash flow. Yes, there is an initial investment required to build receivables. But as payments begin flowing back monthly, complete with finance charges, you create a steady, reliable income stream that cushions seasonal sales dips.

In other words, your cash flow becomes less dependent on the ups and downs of retail traffic.

3

Enhanced marketing. Credit retailers collect valuable demographic and financial data that can transform marketing. Today, it’s your outside finance companies who benefit from that insight.

With in-house financing, you control the information. That means you can time offers strategically. For instance, when a customer is down to their last few payments, they’re more likely to be ready for another purchase. This kind of precision is the holy grail of retail marketing — reaching customers exactly when they’re prepared to buy.

4

Increased average ticket size. Many customers can’t pay for big purchases outright but are willing to spread payments over time. By offering that flexibility, you unlock larger sales opportunities. In fact, you can even combine in-house with outside financing.

If a customer is approved for only $2,000 through an outside lender but wants to spend $2,750, why not finance the remaining $750 in-house?

You capture the full sale and add finance income in the process.

5

Additional profit from sales. You don’t need to attract a single new customer; with in-house financing, you simply retain income that would otherwise go to a finance company. The interest you earn becomes a steady revenue stream, often far exceeding the costs of offering credit. Other profit sources like late charges or optional credit insurance can add to the total.

Many retailers ask, What interest rate can I charge? The answer will depend on your province’s regulations. But for context, look at store credit cards — most run between 29.99 and 36 annual percentage rate. Companies serving credit-challenged consumers often charge well over 100 per cent. Clearly, there is room for profitability.

POTENTIAL CONS OF CONSUMER FINANCING

Of course, financing your own sales isn’t without challenges. The two most common concerns are cash flow timing, and defaults and delinquencies.

While there is a short-term increase in cash needed as you build receivables, this is best viewed like an inventory investment: You must purchase inventory before you can sell it and create profit. The same applies to financing; once payments start rolling in, cash flow should turn positive.

As for defaults, some are inevitable. But with effective risk management and modern receivables software, delinquencies can be minimized and absorbed. The revenue from interest typically more than offsets losses.

Many retailers who take the plunge find these challenges will be outweighed by the profitability and control gained through in-house financing.

STREAMLINE WITH THE RIGHT SOFTWARE

Software

and technology have made financing far

simpler than it once was. What used to be manual and time-consuming can now be automated, efficient and customer-friendly.

Look for software that supports centralized credit approval; automated underwriting and fraud prevention; electronic signing; text and e-mail receipts, billing and collection notices; multiple payment methods, including text-to-pay links; automated debit and automated clearing house payments; automated reference verifications; automated skip tracing; and intelligent, automated collection processes.

The most effective solutions integrate financing directly into your retail software systems: pointof-sale, cashiering, sales management, inventory, marketing and distribution. A fully integrated platform ensures financing becomes a seamless part of your overall operation.

Ronny Bensimon is a partner and president at Infinity Advantage LLC, creators of InfinityX, a fully integrated retail and finance software platform specifically created for furniture, mattress, appliance and electronics retailers. Ronny previously spent 44 years at Dearden’s, as a partner and its CEO. Dearden’s was a 10-store furniture retailer in California that made more than 90 per cent of its sales using in-house credit. Ronny can be reached at 310-365-9600 or ronnyb@infinityadvantage.com.

Asking The Right Questions

How rethinking lines of inquiry can transform your business

BY DONALD COOPER

THERE ARE THREE QUESTIONS YOU CAN ASK when something goes wrong in your business. Two of them aren’t useful because they’re designed to lay blame — they almost never fix the problem or prevent it from happening again.

The first question: Who screwed up?

This is the automatic default question in many businesses when something goes wrong. Business owners love looking for someone to point the finger at. Someone who isn’t them.

The other ‘wrong’ question that deflects responsibility: Who did this to us?

The blame is placed on a competitor, the government, the economy — someone or something else, not you. This is playing the ‘victim game’ and it distracts from taking corrective action.

A much more useful question is: What did we not do well enough that caused this?

Going a step further: How do we fix it so it doesn’t happen again?

Dig in to find the real cause of the problem and

then improve employee screening, onboarding and the training process; develop clear standards and expectations; commit to effective and consistent communication; implement better systems or processes; and create and deliver compelling customer value and experiences to become the clear ‘wise choice’ for your target customers. This approach requires more effort but it’s almost always the right way to go.

Certainly, you’ll have situations where the right training, communication and processes are in place, and extraordinary value and experiences are being delivered, but something still goes amiss. In this case, there are two possibilities.

First, simple human error or accidental circumstance caused something to go wrong. Stuff hap-

pens. Get over it and move on. If you overreact in these situations, you run the risk of paralyzing your staff and your business with fear of taking any action at all.

The second possibility is you have an employee or group of employees who simply don’t give a damn. Even worse, they are actively trying to hurt or embarrass your company for some reason. They are toxic ‘bad apples.’ Invite them to move on before they do any more damage.

So, except for the genuinely ‘bad apples’ that you need to deal with, stop playing the blame game when something goes wrong. Ask the right question and, through it, empower your team to help you fix what needs fixing. You’ll be amazed at the results.

Donald Cooper has been both a world-class manufacturer and an award-winning retailer. Now a Toronto-based business speaker and management coach, he helps business owners and managers rethink, refocus and re-energize their business to create compelling customer value, clarity of purpose and long-term profitability. Donald can be reached at donald@donaldcooper.com.

IFD GROUP ENHANCES SERVICES

WITH NEW PROGRAM AND DISTRIBUTION CENTER

IFD Group, a solid wood manufacturer based in Mexico, is transitioning into 2026 with exciting news.

IFD is launching an ambitious initiative for the upcoming year: a program for direct shipments from Mexico to Canada. This initiative leverages the benefits of the CUSMA agreement and the recently established Canada-Mexico Action Plan for 2025-2028. The program will facilitate shipments by road, rail, or maritime transport, utilizing key ports of entry to enhance efficiency.

One of the standout features of this program is the provision of competitive full truckload pricing with no tariffs, allowing products to be shipped directly from our two factories to our dealers located in Ontario, Quebec, Nova Scotia, and New Brunswick. Through our collaboration with DeJong Enterprises & Parkview customs brokerage, all shipments will be distributed from their Woodstock, Ontario, facility.

“We prioritize finding ways to support our customers, especially in the important Canadian market. Through this collaborative program, we aim to foster a partnership that drives mutual growth and success,” said Miguel Arroyo, IFD Controller and Operations.

This represents the most comprehensive strategy that IFD Group has undertaken in the Canadian market. Notably, despite current economic challenges, the Canadian furniture market is projected to grow by 5.13% by 2030, according to economic forecasts, indicating a positive outlook for our partnership and distribution efforts.

IFD Group Celebrates a Major Milestone with New Distribution Center in Glendale, Arizona.

In a bold move to enhance service and accessibility for our West Coast customers, IFD is thrilled to announce the groundbreaking of our new distribution center in Glendale, Arizona. This facility will feature an expansive showroom, showcasing our latest offerings and innovations. Set to be completed by December 2026, this project underscores our commitment to addressing the evolving needs of our customers and reinforcing our partnerships in the region.

For more information about IFD Group, products, and services, please visit www.ifdgroup.com or contact us at info@ifdgroup.com

SEPARATING FACT FROM FICTION

Five retail management myths debunked BY

BOB PHIBBS

RUNNING A STORE IS TOUGH ENOUGH WITHOUT believing retail management myths that quietly drain your profits, frustrate your people and push customers away. Smart retail management isn’t about gimmicks. Rather, it’s about focusing on the performance metrics that truly matter.

For context, most physical stores convert only 20 to 30 per cent of foot traffic into sales. (It’s even worse online where roughly 94 per cent of traffic never buys.) That’s why understanding retail key performance indicators (KPIs) like your margin, average order value and conversion rate is critical. Here are five common misconceptions retailers think are true.

1

Discounts are the only way to increase retail sales. Wrong. Discount shoppers aren’t loyal to you; they’re loyal to the deal. The minute your competitor runs 20 per cent off, they’re gone. Customers return because they feel like they matter. Surprise them, delight them, give them

more than they expect. That’s what makes them drive past the other guy to shop with you.

One West Coast retailer printed 3,000 coupons, thinking it would boost sales. Instead, regular customers who would have paid full price just waited for the discount. Revenue dropped.

Discounts don’t build relationships — they drain your profits.

2

Retail employees only care about a paycheque. Wrong. If all you give employees is a timecard and a to-do list, don’t be surprised when they leave. Your people want to use their brains, be trusted and feel like they make a difference. Treat them like cogs and they’ll burn out. Treat them like partners and they’ll sell circles around your competition.

A sewing retailer learned this the hard way. For three years, she tolerated a toxic employee because she thought it was easier than hiring someone new. Customers avoided the store. When she finally let the employee go, sales recovered almost immediately.

One disengaged team member can sabotage everything you’re trying to build.

3

Good products sell themselves in retail.

Wrong. Shelves don’t sell, people do. This is one of the most overlooked retail KPIs: conversion rate. A ‘must-have’ item just sits there until a well-trained associate connects the dots for the customer: why it matters, how it solves a problem, what it adds to their life. Without that, you’ve got inventory collecting dust.

South Coast Plaza in Costa Mesa, Calif. — the highest grossing mall in the world — once had a specialty retailer with exactly this problem. It carried the right products but wasn’t moving them.

After training staff to sell instead of just being clerks, the retailer won an award for the greatest increase in sales. Same merchandise, different results.

4

Customer loyalty just happens on its own. Wrong. Loyalty is built through memorable experiences and genuine follow-up.

A punch card or points program can’t cover for lousy service. Loyal customers don’t come back because you bribed them; they come back because you made them feel valued.

Polly’s Gourmet Coffee was losing customers despite years in business and a punch card for free drinks. After rebuilding its sales culture through training, sales rose 50 per cent in one year and another 40 per cent the next. Customers didn’t return because of a ‘10th cup free’ offer; they returned because every visit made them feel welcome and appreciated.

5

More foot traffic means more retail sales. Wrong. You don’t need more bodies in your store. Instead, you need better conversations. Otherwise, you’re just running an expensive museum where people look but don’t buy. A trained employee can turn browsers into buyers, upsell and build loyalty.

A Boston baby gear and toy store saw that traffic wasn’t the problem — conversion was. When visits were down, the team focused on sales training. The results: units per transaction and dollars per transaction both jumped. Better conversations turned the same visits into bigger sales.

Foot traffic is just the starting point. What really matters is gross profit per shopper (GPPS), which shows whether each shopper is making you more profitable. To calculate GPPS, multiply your margin by average order value by conversion rate. For example, with a 45 per cent margin, a $78.32 average order value and a 24 per cent conversion rate, each shopper represents $8.46 in gross profit. When you improve conversion or increase average order value, GPPS rises without a single new body walking in the door. Do that, and you won’t need to believe myths — you’ll have proof.

Bob Phibbs, known as the Retail Doctor, is a renowned expert in brick-and-mortar retail. As CEO, he provides international business strategy, customer service expertise, sales coaching and marketing mentorship. An author of three books and motivational speaker, Bob recently expanded his online retail sales training program, SalesRX. This on-demand platform has led 83 per cent of clients to achieve double-digit growth within six months.

“What really matters is gross profit per shopper, which shows whether each shopper is making you more profitable.”

THE POWER OF STANDARDIZATION

Why consistency in 3-D product visualization is the secret weapon for omnichannel furniture brands

BY CAT CULLINANE

IT’S A FAMILIAR

STORY:

A SHOPPER FALLS IN love with a sofa while scrolling Instagram late at night. The next day, they look it up on your website to get more details. Later in the week, they compare it on Amazon, then stop by a local showroom to test it out.

For consumers, this feels like one continuous journey with your brand. But for furniture retailers, these touchpoints are often managed in silos. And that’s where problems begin. Each platform demands different specifications, formats and images. Without a unified approach to product visualization, the brand story starts to fragment. Maybe the colour tone shifts slightly from one channel to another, the product angle is different or the lifestyle image on Instagram doesn’t match the 3-D product visualization displayed in a showroom kiosk. Individually, these mismatches might seem minor. Collectively, they erode trust — and that erosion comes with steep costs.

DUPLICITOUS DUPLICATION

Shoppers today have near-infinite choice. If something feels ‘off’ about your visuals, they don’t stop to ask why; they simply move on. The consequences of inconsistency ripple across your business, resulting in eroded trust, hesitation at checkout and higher return rates. Mixed visuals make it harder for customers to believe they’re going to get what they see. Even a split second of doubt can be the difference between a sale and an abandoned cart. If they proceed with the purchase and what arrives doesn’t match expectations, disappointment turns into expensive reverse logistics.

The irony is that inconsistency often stems from duplication. Each channel requires its own format, so teams recreate the same product visuals again and again, leading to operational drag. Over time, dozens of versions scatter across inboxes, servers and hard drives. That duplication trap is costly, both in money and time — teams spend countless hours reformat-

ting and recreating an asset — and in lost opportunity to improve the e-commerce customer experience.

WHEN VISUALS DON’T MATCH

In a world where shoppers can compare dozens of alternatives with a single search, consistency has become a brand’s most valuable currency.

When a product looks the same across every channel, with the same quality, detail and perspective, customers feel confident in their decision. That confidence shows up in measurable ways: higher conversions, bigger average order values, fewer returns and stronger loyalty.

Research shows poor product presentation accounts for roughly 34 per cent of returns across retail categories, while brands with consistent visuals can boost revenue by as much as 33 per cent. Clearly, the impact of consistent 3-D product visualization extends far beyond aesthetics. It directly improves both sales performance and the viewer experience.

A CASE STUDY IN CONSISTENCY

With millions of possible product configurations, Canadian furniture brand EQ3 had built its reputation on customization. But as visuals spread across channels, the company started to splinter. A sofa might appear one way on its website, another on Amazon and differently on Wayfair. For shoppers, that fragmentation created con-

fusion. For EQ3, it meant higher returns and diluted brand identity.

The solution was to centralize. Partnering with a 3-D visualization platform, EQ3 consolidated its product imagery into a master asset library. Assets were created once, then syndicated seamlessly across every channel, from product detail pages to retailer websites to Instagram ads.

The results were dramatic: conversion rate increased 36 per cent; average order value rose 88 per cent; page views improved by 116 per cent; and the retailer experienced a reduction in returns.

Consistency has now transformed from just design improvement to a driver of growth and a stronger e-commerce customer experience.

THE ROADMAP TO READINESS

For furniture brands, achieving a high level of consistency may feel daunting. But the path forward follows four simple steps: audit, centralize, automate and control. Review top products across every channel to make sure they look the same in colour, detail and quality. From there, build a single source or library for product visuals. Then, use tools that adapt visuals to platform-specific specifications without manual rework. Finally, push updates instantly. This ensures every update flows everywhere and brand standards remain intact across all touchpoints, giving shoppers a seamless and trustworthy viewer experience.

Cat Cullinane is a product marketing manager at Chaos, where she drives strategic go-to-market initiatives and leads product marketing efforts across the Cylindo portfolio. Cylindo is a leading 3-D visualization platform that helps furniture brands, retailers and manufacturers create, manage and distribute highquality visual content at scale, powering immersive product experiences across e-commerce, digital marketing and in-store environments. Cat can be reached at cat.cullinane@chaos.com.

A Paradigm Shift

Jobs-based marketing reframes how you think about products, moving away from traditional principles of market segmentation BY

TYLER HOLT

FURNITURE RETAILERS ARE NO STRANGERS TO shifting consumer preferences, competitive pressure and the persistent struggle to predict which products will resonate in a saturated market. Traditional marketing practices — segmenting customers by age, income or lifestyle — have long served as the foundation for product development and promotional efforts. Yet, the high failure rate of new product introductions suggests something fundamental is off.

In their article, Marketing Malpractice: The Cause and the Cure, Clayton Christensen, Scott Cook and Taddy Hall argue that marketers too often focus on the wrong unit of analysis: the customer. Instead, they propose reframing the question. Rather than asking, Who is our customer? ask, What job is our customer hiring this product to do? For furniture retailers, adopting this lens may mark the difference between fleeting interest and long-term loyalty.

TRADITIONAL SEGMENTATION FALLS SHORT

The standard practice in furniture marketing is to target consumer groups — millennials furnishing first apartments or affluent empty-nesters renovating second homes. These profiles shape showroom layouts, inventory selections and promotional campaigns. However, demographic averages can obscure more than they reveal.

Customers do not conform their needs to category norms. A 35-year-old couple with a newborn might be drawn to the same sectional sofa as a 60-year-old retiree, not because of similar life stage but because both seek to create a warm, flexible gathering space for extended family visits. Segmenting by income or square footage would miss that shared intent entirely.

Instead of chasing illusory personas, forward-thinking retailers should identify the job the furniture is

being hired to do. This refers to the progress a customer hopes to make in a specific situation — functional, emotional or social. Once that job is clear, designing, displaying and promoting furniture becomes a more targeted, effective endeavour.

UNDERSTANDING FURNITURE’S FUNCTIONS

Furniture plays a dual role in people’s lives. It serves clear functional needs — seating, sleeping, storage — and also fulfills deeper emotional and social purposes. A recliner may be hired not just for comfort but for relief after back surgery. A dining table may be hired to transform a space into a hub of family tradition. A desk may be hired as a signal of professional aspiration in a small apartment. These are not differences of consumer type; they are differences of context and purpose.

Importantly, the same piece of furniture can serve

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• An active social media presence builds brand awareness

• Quality posts and regular interaction shows a commitment to your customers

• Platforms like Twitter and LinkedIn are great vehicles for sharing news and successes

• A balanced campaign reaches a variety of professionals and decision-makers

• It’s fast and effective

• Existing content can be refreshed, reissued, and maximized at no additional cost

After six months utilizing MediaEdge’s social media program, we have generated sales leads and received a significant amount of exposure across five platforms.”

R.W. (Bob) Storey, P.Eng., MBA General Manager - Sto Canada Ltd.

Let’s set up a time to discuss your 2024 marketing strategy! Contact Kris McFadden, Publisher, at 416-512-8186 ext. 240, 416-979-8929 or krism@mediaedge.ca

“Instead of chasing illusory personas, forward-thinking retailers should identify the job the furniture is being hired to do.”

multiple jobs depending on the situation. A sleeper sofa in a studio apartment performs the job of maximizing utility in a compact space. The identical product in a vacation rental home performs the job of accommodating unexpected guests without fuss. Understanding these jobs, rather than defaulting to age, region or design taste, enables more meaningful alignment between offerings and outcomes.

PURPOSE-BUILT PRODUCT STRATEGIES

In practical terms, a jobs-based framework reorients how furniture is selected, named and marketed. Instead of positioning a chair as modern and affordable, a job-centric strategy might describe it as the perfect end-of-day reset for tight schedules. The emphasis shifts from features to function within the customer’s lived experience.

Retailers can leverage this approach in several concrete ways.

Curate showroom settings around common jobs — for example, maximize space in shared bedrooms or build a relaxing video call nook — rather than aesthetic themes alone.

Source or commission pieces that fulfill emerging jobs, such as hybrid work from home setups that are both ergonomic and transitional.

Redesign search filters on your website to help

shoppers navigate by job — for instance, guestready solutions and low-maintenance family zones — instead of just style or size.

Coach teams to explore the customer’s desired outcome rather than steering conversations toward generalized preferences.

The result is a shift from guessing what a typical customer might like to know to what a specific customer needs a product to do.

PRESERVING BRAND CLARITY

Brands in the furniture space, especially those that span multiple price points and sub-categories, can dilute their impact by attempting to serve every job under one name. This leads to vague brand signals and confused customers.

Instead, retailers can adopt a two-tier architecture: a master brand that conveys trust and quality, and purpose brands that signal job-specific utility. For example, a parent company might endorse distinct sub-brands for family-ready seating, urban adaptability or heritage craftsmanship. This clarity acts like a compass, guiding customers to what they need and teams to deliver meaningful innovation.

OBSERVING THE JOB

The path forward starts with curiosity. Retailers should spend more time observing how furniture is used in real life.

What are customers trying to solve when they visit a store or browse online? What constraints shape their decision-making? What trade-offs are they managing between space, budget, identity or future plans?

These questions reveal the true competitor of a recliner may not be another chair but a kitchen stool, pile of laundry or bedroom that no longer serves its purpose. In furniture, as in other industries, growth lies not in building for the average customer but in solving for the specific job.

Furniture retailers seeking sustained relevance and growth must look beyond aesthetics, demographics or fleeting trends. By understanding the functional, emotional and social jobs that consumers seek to accomplish, companies can design, market and position furniture with greater precision and impact.

The payoff?

More loyal customers, smarter inventory bets and a brand that doesn’t just decorate a space but fulfills a need.

Tyler Holt is the editor of Wood Industry magazine. He has a master’s degree in literature and publication, and years of experience in the publishing and digital media industry.

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RETAIL SUPPLY CHAIN REALITY

Finding balance in an unpredictable world

BY JIM MCKAY

RETAIL HAS CHANGED DRAMATICALLY OVER the past few decades. Prior to e-commerce, consumers flipped through catalogues, placed their orders and waited weeks with little clarity on delivery. Expectations have shifted. Today, customers want fast, affordable and high-quality service, often all at once.

At the same time, retailers face increasing pressure: Iconic brick-and-mortar stores are closing, e-commerce continues to surge and global supply chains are more complex than ever.

Supply chains have grown longer and more complex. Leading into and through the early 2000s, companies outsourced production to reduce costs. Coming out of the economic challenges in the latter part of the first decade of the new millennium, the 2010s were all about expansion — home delivery, click-and-collect and stores doubling as fulfillment centres. Then came 2020, and everything changed. Over the past five years, Canadian retailers have faced more change than the 20 years that preceded them: a global pandemic, rising fuel and carbon costs, labour disruptions, market uncertainty and, most recently, tariffs, including the removal of de minimis thresholds on U.S. goods. Each challenge has tested supply chain resilience and exposed vulnerabilities.

How can retailers overcome these challenges?

The key to a successful supply chain is finding the right balance between cost, service and quality. While these elements are all important, it’s often difficult to optimize all at once. As the saying goes, you can have any two at the expense of the third.

As an example, a customer ordering a $5 t-shirt from afar may, but shouldn’t, expect the same delivery experience as someone buying a $200 case of wine from a local winery. Prioritizing low cost means you may need to tolerate delays and/or less visibility. On the other hand, the higher value shipment commands speed, care and regulatory compliance like proof of age and signature upon delivery.

In short, different products — and different consumers demand different delivery strategies. Retailers need to tailor delivery strategy to product type, customer expectations and business goals. One size does not fit all.

EVERY TOUCHPOINT ADDS COST, COMPLEXITY

It’s not just about the final mile. Supply chains often

span oceans, warehouses and multiple handoffs. For example, consider the life cycle of a patio set: manufactured abroad, shipped via ocean freight, deconsolidated and warehoused, moved to retail or distribution centres, purchased and delivered (or returned), and, sometimes, stored seasonally.

Each time you touch the product, it adds cost, risk and complexity. Planning upfront is critical — you only get paid to touch it once.

In many cases, partnering with third parties or using open networks can reduce operational burdens and even improve service, but usually at a higher cost. It circles back to the trade-off — you can have any two of low cost, excellent service or superior quality, usually at the expense of the third.

MANAGING YOUR SUPPLY CHAIN EFFECTIVELY

To succeed, retailers need to approach supply chain management with focus and intent.

First, it is important to define the problem: Are you optimizing for cost, service or quality, or a mix of all three?

You can’t solve a challenge if you cannot define what you are looking to fix.

Next, explore your network options. Building internal capabilities provides security and control; however, it increases cost and complexity. Leveraging external partners can improve agility and service but at a premium.

Then, choose your partner(s) wisely. Not all service providers are created equal. A reliable, professional partner will protect your brand and deliver consistent results.

Lastly, collaborate, don’t just transact. Strong supplier relationships are built on trust and communication. Regular check-ins and performance reviews are key. A purely transactional approach may appear cheaper in the short-term but it often costs more in the long-run.

WHAT THIS MEANS FOR RETAILERS

Supply chains aren’t just about moving goods; they are about delivering on your brand promise. In today’s retail landscape, adaptability, strategic partnerships and clear priorities are what set successful retailers apart. The businesses that win will be those that understand their customers, define their priorities and build supply chains to match.

Jim McKay was appointed CEO of GLS North America in 2024, uniting iconic transportation brands Dicom, GoJit, Rosenau, Acropolis, Altimax and GSO under the GLS banner. He holds an undergraduate degree from Western University, and an executive master of business administration from Smith School of Business at Queen’s University. He also holds the CITT and CPA designations and is a Six Sigma Blackbelt. A best-selling author, Jim regularly writes and speaks on leadership and supply chain in his Reflections of a Workaholic publications.

“In many cases, partnering with third parties or using open networks can reduce operational burdens and even improve service, but usually at a higher cost.”

MAKING HEADLINES

A look back at the stand-out stories of 2025

Last year was one for the history books. The federal Liberal party bounced back after years of decline and an almost-certain resounding election defeat to return to power with its fourth consecutive mandate, and the Toronto Blue Jays were just one win shy of taking the World Series. On a more microscale, the big-ticket home goods industry experienced a series of significant events. Here are some of the top Canadian news stories of 2025, as they relate to this sector.

TROVE OF TARIFFS

In March, President Donald Trump began his barrage of tariffs on products entering the United States from all countries to try to rebalance trade and pressure U.S. multinational companies to relocate manufacturing capacity and jobs to America — a central plank of his economic policy. Several key Canadian sectors have been hit particularly hard like the softwood lumber industry that has seen tariffs triple to 45 per cent, and the aluminium and steel industries that are currently subject to a 50 per cent tariff, doubling from the original 25 per cent. By fall, Trump made good on his threat to impose a 25 per cent duty on certain foreign-made upholstered wooden furniture, including couches, sofas and chairs. That rate was to jump to 30 per cent on Jan. 1, 2026, but on the eve of implementation, he delayed the increase to 2027.

CENTURY OF SERVICE

Tepperman’s, one of this country’s largest independent home furnishings retailers, marked its 100th anniversary in spring, followed by a year-long celebration of giving back to the communities within which it serves, including customer appreciation events, exclusive promotions and prize giveaways. Established in 1925, by Jewish immigrant Nate Tepperman, grandfather of current co-owners and brothers Andrew and Noah, the retailer has grown from its humble beginnings as a door-to-door sales business to encompass seven stores across southwestern Ontario — Ancaster, Chatham, Kitchener, London, Sarnia, St. Catharines and Windsor — with some 550 employees. The proudly Canadian company’s success can be attributed to its commitment to values, innovation, long-term vision, adaptability, and providing exemplary service and quality furnishings.

END OF AN ERA

After filing for bankruptcy in March, and unable to find a buyer, Hudson’s Bay Company (HBC) permanently shuttered its doors, dealing a major blow to Canadian retail. The collapse of the 355-yearold retail giant resulted in the closure of all 96 stores nationwide — 80 HBC locations, 13 Saks Off 5th stores and three Saks Fifth outlets — and layoffs of some 9,000 employees. Its demise can be attributed to a multitude of factors, including the growth of specialty retailers, rise of online shopping, HBC’s failure to adapt and evolve with the shift in consumer behaviour, and economic pressures like inflation and high interest rates. While the return of the HBC leases to the broader market provides a unique opportunity, the hole left by the legendary Canadian brand has been hard to fill since the single-tenant department store model has been in decline for decades.

MANUFACTURING ON THE MOVE

Dorel Industries ceased all domestic manufacturing operations as it cut its home segment in an effort to return it to profitability sometime in 2026. The move ended the company’s longtime history as a producer of ready-to-assemble residential furniture. Closure of the Cornwall, Ont.-based facility led to approximately 300 people being left without jobs. It was run by Ridgewood Industries, a subsidiary of Dorel Home, that had been in operation for more than 55 years. Another ready-to-assemble furniture supplier also pulled out of Canada. However, unlike Dorel, Prepac Manufacturing shut down its manufacturing operations in Delta, B.C., to shift all production to its facility in North Carolina. While Prepac did not confirm that the closure was done as a response to U.S. tariffs, the union representing the company’s Canadian workers alleges the levies were to blame.

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