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
January 31,
2013 by in UnCategorized
By Home Furnishings Business in Business Strategy on February 2013
Hows your stores mental health? Can you the keep people in place who make your business prosper, or do you face problems with employee retention?
If its the latter, read on: Were taking a look this month at ways to retain the talentand personalitiesthat benefit your operation; and how to keep them fired up about selling home furnishings. Some of it might seem plain common sense, but some messages bear repeating.
Got a problem with your best people leaving for another opportunity? The first place to look for a solution is in the mirror, according to Joe Milevsky, CEO of JRM Sales & Management, Acworth, Ga.
It starts with the owner and goes down to managers, he said. If the sky is always falling, if anything employees do thats good is just part of doing their job, it wont be a place where people want to work.
I preach positive feedbacka 10 to 1 ratio of praise to criticism. It depends on the individual so that might be 5 to 1, but the point is Im always looking for good things. I want to create an environment where its going to be enjoyable to work.
MORE THAN MONEY
Keeping good people on board is more than money and benefits, agreed Taylor Ganz, vice president of finance, planning & administration for Atlanta-based furniture retail consultancy Profitability Consulting Group.
You want to know the number one reason people leave a business or a company? They hate their supervisor, Ganz said. Its not the money, its not opportunity elsewhere, not retirement. They feel unappreciated, and they hate not the company, but the guy the work for.
During his days at furniture retailer McMahons, Ganz remembered a number of people who said they liked working for the store but absolutely couldnt work under their supervisor.
It was my fault for not dealing with the supervisor, and I let both sides down, he said.
Another non-monetary link between employees and their jobs is knowing their contributions are valued, added Ganzs colleague, Rene Johnston-Gingrich, vice president of training and development at PCG.
You show that appreciation in action and in words, she said. Customize how you show that appreciation to the individual.
For example, one employee might enjoy recognition before the entire staff with a lot of hooplaanother might prefer a quiet pat on the back away from the spotlight.
Morris Furniture, Fairborn, Ohio, is big on setting a positive tone from the top, said Dan W. Little, human resources manager. That helped maintain retention and morale during the recession.
Lead by exampleif managers and leaders are upbeat and positive it is contagious, he said. Be positive. During a management meeting in 2008 our CEO, Larry Klaben, stated we have some of the best associates in the industry, and we will come out stronger when the economy improves. He repeated this message consistently during full staff meetings. It was a very effective message. And he was right.
COMPENSATION/BENEFITS ISSUES
Setting the right tone and atmosphere in the workplace is key, but after all, people do work for money and the security of employee benefits. The strongest compensation and benefits packages incorporate performance motivators.
I like bonuses, PCGs Ganz said. Bonuses have to be benchmarked and tied to ambitious, but achievable, goals. You have to reach those goals, and that takes favoritism out of the picture. Bonuses arent occurring if achievements not occurring.
People think theyre entitled to raisesits like an annuity.
Dont allow any discussion of salary among employees, and make sure thats in writing.
Ive fired people for discussing salary, Ganz noted.
What we find is there are many ways to compensate salespeople, said Milevsky at JRM. If I had my choice, Id go 100 percent commission versus 100 percent salary.
That said, if I get into a company with a great environment and accountability, in theory commissions arent needed, but in practice that rarely happens.
He added that, during the hiring process, the prospects pay preference can speak volumes.
In the interview, if they say they want a salary versus commission, what does that tell me? Milevsky said. It tells me they arent confident in their abilities, or they just want a pay check.
On the other hand, if a prospective salesperson wants commission only, make sure they understand customer opportunity rules and dont run roughshod over other employees.
Brashears Furniture typically offers salespeople a base around 70 percent of their potential earnings plus commission, said Susan Brashears, an owner at the Berryville, Ark., store.
This protects a salesperson during a slow month so they dont get panicky and pushy; and still provides for a commission incentive, she explained.
In addition to a strong benefits package from a retail standpointhealth coverage, 401k, etc.Thomasville stores are big on performance incentives and recognition.
We recognize top writers each month, Beth Sweetman, senior senior vice president of human resources at Thomasvilles parent company, Furniture Brands International, St. Louis. Were also in the process of developing a Presidents Club where well celebrate the top writers and top stores for the year.
Dont forget the holistic side of the benefits you offer. Wellness programs are good your employees and can be good for your business. Morris Furniture, for example, has motivational incentives such as Raving Fan recognition programs for superior customer service, but also gives employees a chance to stay in shape.
We have a state of the art fitness center available to all associates at no charge, Little noted.
Jill Benson is an attorney specializing in employment issues in the Greensboro, N.C., office of Womble Carlyle. Her clients have seen measurable benefits especially in the last two years from wellness programs including cholesterol screens, exercise in the work place, and weight loss programs.
The research shows that employees are missing work less and that it makes them feel more valued, she said. I know its helped several of my clients retain employees.
THE RIGHT ATMOSPHERE
An attractive showroom that creates a great environment for shopping keeps customers coming back. And a working atmosphere of open communication, clearly outlined responsibilities and team spirit keeps the employees serving your customers on board. And again, it starts with you.
Creating a fun, positive environment, that has to be a top-down value, said PCGs Johnston-Gingrich. Its not about warm and fuzzy, its good business. ¦ Theres an old cliché that happy employees equal happy customers, and happy customers equal good business.
Customers pick up on it immediatelytheyre hugely sensitive to a stores energy.
Thomasville relies on store and district management to set the tone.
My view is everyone wants the same things from work: Feedback, whether good or bad, on performance; understanding the strategy of the company; and people want to know when theyre doing a good job, Sweetman said. That comes from the store manager and the district manager.
We can tell which stores have the best managers. Theyre the ones with the most satisfied, productive employees, added Christine Bonnell, human resources lead at Furniture Brands. I think its up to the store managers and district managers to continually teach people to do their jobs better.
For example, Thomasville stores hold morning gatherings that cover some component of customer service to give associates new tools to improve their performance.
At San Diego-based Jeromes, quarterly, one-hour roundtables take place in various departments and stores.
Small groups of six to eighta mix of associates with senior managementmeet to discuss openly their thoughts on the company and solicit their ideas and suggestions for improvement, said Vice President of Human Resources David Markowicz.
Make sure youre meeting one-on-one as well, suggested Milevsky at JRM.
Have one-on-one meetings and not just to talk but also to listen to what they have to say, he said. I had a meeting with a larger company10 to 12 managers with the ownerand we were talking about this subject. A manager asked how they could possibly find the time for all these meetings. The owner responded, How can we not find the time?
We think were in the furniture business, but in fact were in the people business.
Encouraging a sense of friendly competition helps build teamworkand keep everybody on their toes.
We have some kind of competition or game almost every month for our salespeople, Brashears said. We frequently put them on teamssometimes with salespeople in other stores. They have fun with the friendly competitions. It may sound silly, but it is good for morale and keeps them focused on sales as a group. They watch everyones sales closely and encourage each other throughout the month.
Its all about building a company thats customer-centric, Milevsky said.
Mom and Pop build a great company, where theyre doing everything. They grow and need help so they hire people to do some of those thingsbut those people dont own the company, he said. Those people need job descriptions, they need performance measurements, and they need to be trained properly to that job description. They need regular periodic evaluation.
Create a policy to make that happen. That way its not just about the money, the incentives, its that people understand whats expected of them. The only thing worse than having no rules is having them but not holding people accountable to them.
That means a clear, professionally done policy manual; and a process for resolving conflicts in the store.
Develop your skill sets to confront and resolve conflict, Milevesky said, adding that conflict cant be avoided. If you sweep the snake under the rug, it will bite you at the worst possible time.
Celebrate successes, celebrate victories, he added. Were trying to create an environment where we breed success. HFB
January 30,
2013 by in UnCategorized
By Home Furnishings Business in on January 31, 2013
The Touch of Wood furniture store in Dothan, Al., has reopened a newly redesigned 5,000-square-foot Kincaid Shoppe in its Montgomery Highway store.
The new Kincaid Shoppe offers our customers great decorating ideas showing the high quality solid wood furnishings that Kincaid offers, said Joel McLeod, owner of The Touch of Wood. We are also showcasing Kincaids custom upholstery, occasional, bedding and Artisan Shoppe accents along with their ShoppeLink system which helps our customers design their Kincaid furnished rooms.
The proprietary ShoppeLink includes useful tools such as samples of wood finishes, hardware and fabric swatches along with custom design capabilities and real-time inventory and delivery information.
The Touch of Wood has been a valued retail partner for many years, said Max Dyer, Kincaids vice president of marketing. They provide their clientele with finely crafted, stylish furnishings, professional design services and customer care that illustrates a passion for their consumers and their community.
January 30,
2013 by in UnCategorized
By Home Furnishings Business in on January 31, 2013
The U.S. Consumer Product Safety Commission says that Whalen Furniture Mfg., d/b/a Bayside Furnishings, of San Diego, Calif., will pay a civil penalty of $725,000.
The settlement agreement resolves CPSC staff allegations that the firm knowingly failed to report to CPSC immediately, as required by federal law, a defect involving two models of its boat-style children's beds with toy chests. The two models included LaJolla boat beds and Pirates of the Caribbean twin trundle beds. The beds include a toy chest with a 20-pound lid. The lid supports on the toy chests fail to prevent the lid from closing too quickly, posing an entrapment and strangulation hazard to young children.
Whalen sold the defective children's beds between January 2006 and May 2008.
In November 2007, Whalen learned that a 22-month-old boy from Roseville, Calif., had died after the lid of a LaJolla bed's toy chest fell on the back of his head, entrapping his neck on the edge of the toy chest. The firm failed to report the death or hazard with its bed to CPSC until March 2008, after being contacted by agency staff and directed to do so.
CPSC and Whalen announced a recall of about 7,700 LaJolla boat beds and Pirates of the Caribbean twin trundle beds in July 2008. The beds were sold at Costco stores, furniture stores and online at Costco.com for between $700 and $1,000.
Federal law requires manufacturers, distributors, and retailers to report to CPSC immediately (within 24 hours) after obtaining information reasonably supporting the conclusion that a product contains a defect that could create a substantial product hazard, creates an unreasonable risk of serious injury or death, or fails to comply with any consumer product safety rule or any other rule, regulation, standard or ban enforced by CPSC.
Federal law also bars any person from selling products subject to a publicly-announced voluntary recall by a manufacturer or a mandatory recall ordered by the Commission.
In agreeing to this settlement, Whalen denies staff's allegations including, but not limited to, that the recalled beds contained a defect that could create a substantial product hazard or created a serious risk of injury or death. In addition, Whalen denies staff's allegations that it failed to timely notify the Commission, in accordance with Section 15(b) of the Consumer Product Safety Act.