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January 31,
2013 by in UnCategorized
By Home Furnishings Business in on February 2013
Toronto furniture retailer Decorium is blending big selection, looks at a value and a family touch to create a home furnishings destination for Canadas largest metropolitan area.
A constantly changing showroom, marketing that verges on guerilla and a willingness to change have Decorium making moves this year.
A new location in a prime Toronto shopping district and a high-end gallery at its existing store has the family owned retailer optimistic for the year to come.
A DEVELOPING STORY
Decoriums roots trace to the manufacturing operation that Steves grandfather, David Forberg, started when he immigrated to Canada from Europe.
He began manufacturing dinettes in the early 1950s, becoming one of the countries largest producers in the category. Forbergs father, Joe Forberg, had joined the business, and David suggested opening a retail operation. A few years later, Joes brother came on board, and the Grand Designs retail brand grew to include eight stores.
In 1986, the family started Decorium as an import business for the design trade, offering chairs, chests, armoires and accent pieces from Italy, Spain, the United States and Asia. In the early 1990s, a recession in Canada and new tax laws put a squeeze on Grand Designs, which led the family to close the eight stores and turn Decorium into a retail business, located in what had previously served as the distribution center for Grand Designs.
CREATING A DESTINATION
As a retail operation, Decorium started in 5,000 square feet of the facility, but quickly expanded.
Being open to the public, it took on a new life, said Steve Forberg. Now were a full-service store, with a full range of styles from classic traditional to contemporary to modern to glamour, to leather and fabric upholstery to rugs and accents. We have 700 rugs on display in the store.
With one exception, Decorium doesnt brand any manufacturers. Everything in the store is a Decorium item.
Our customers say, I bought this Decorium sofa, or I bought a Decorium dining room, Forberg said. We are the brand.
The only thing we brand separately in the store is HGTV (product).
On the floor, Decorium wants customers to be wowed by selection and understand theyve arrived at a true shopping destination with outstanding looks at a value.
We want them to feel theyre in a unique environment that offers a good customer experience, Forberg said, with high-end looks at accessible prices.
Decorium also encourages customers to keep coming back to see whats new.
Were constantly shifting product in our 60,000-square-foot showroom to make it fresh for the customer and keep it fresh for our sales staff, Forberg said. We have 60 to 100 new items on the floor each week. We have customers who come in monthly to see whats new and fresh, and how things are laid out.
REACHING OUT
Decorium relies on two taglines in its marketing: DefinitelyDecorium and Just what youre looking for in a furniture store.
Its a one-stop shop. In our advertising we ask why visit five stores when you can visit five in one, Forberg said. Were large enough to move a lot of product, and were small enough to care.
In addition to radio, magazine and direct mail, Decorium relies a lot on what Forberg called non-traditional advertising.
Commuters in the Toronto area see Decoriums message via outdoor advertising on bridges, bus shelters and in the subway system.
My philosophy is to try to advertise where others arent, Forberg said. I like to swim in a pool where no one else is swimming. Once people start swimming with me, I try to jump out of that pool and into another one.
A HIGH-END MOVE
Decoriums new store is located on Torontos Yonge Street in the upscale Rosedale area. Most surrounding stores dont run more than a couple thousand square feet, so Decoriums 9,000 square feet there make a statement. Plus, the location was home to other furnishings retail operations, so Decorium will be filling a gap.
Its a trendy part of the city, Forberg said. The new store on Yonge Street is on the longest street in North America. It runs from Lake Ontario to the Northwest Territories. In Toronto, its the street to beits like being on Rodeo Drive.
(Check this link for Yonge Streets significance in Canada: En.Wikipedia.org/Wiki/Yonge_Street)
Renovations are nearing completion, and after a scheduled soft opening later this month, Decorium will hold a grand opening event in April.
That store offers the fashion and style our brands known fore but its in more of a boutique setting, Forberg said. Theres more layering, more accessories, and overall its a little more high-end.
This past fall, Decorium also opened a 5,000-square-foot high-end gallery at the main store branded as Signature Collection by Decorium.
The space features a decidedly upscale product selection, complemented with fixtures such as crown molding, hardwood floors and wainscoting.
Weve partnered with some factories for some exclusives that are really unique and high-end, Forberg said.
WHAT LIES AHEAD
Business was challenging, obviously in 2008 and 2009, Forberg said.
Sales leveled in 2010, though, and he reports double-digit growth for the past two years.
Theres an analogy I like to use, Forberg said. Were like a retractable roof on a stadium. As a family business, we can open it and close it as needed. Were hands on, we can watch our expenses, and we live and breathe the business.
Decoriums making moves, so Forberg feels pretty good about what lies ahead for furniture retailing in general and his familys business in particular.
If we listen to the news, how things are hard, we can get complacent and stand still, he said. Were not going to let the economy and the news people tell us times are tough and that we need to hunker down.
We know when we have to hunker down, and we can when we need to. Were opening a new store, were taking risks, and I think those who are willing to make a leap of faith are the ones wholl be successful. HFB