Retail Observer

RETAILOBSERVER.COM SEPTEMBER 2014 52 RO Pat Kelly Furniture Trends Pat Kelly Network and Retail Program Director, Furniture Cantrex Nationwide R ightsizing, upsizing, downsizing – "sizing" seems to be the latest catch-all response to the modern dilemma of how to adjust to rapid change. Hundreds of companies have struggled to rightsize, cutting costs to stay competitive and downsizing thousands of employees in the process. Upsizing, a fast-food fad, has led to bigger portions with a higher average ticket price. In the furniture business, we look to statistics and demographics for guidance. Aging Baby Boomers, Gen Xers, Millennials … how many, where are they, who has money to spend? But the big story here is really all about "lifesizing." One of the most obvious examples of lifesizing is the phenomenal growth of the condo market. This trend is being driven primarily by two demographic categories: aging Baby Boomers trading their large single-family homes for smaller, more manageable accommodation; and first-time homeowners entering the expensive housing market at a price point they can afford. At the same time, older generations are moving into seniors' residences. Varying tastes to be sure, but the common denominator is size. These are lifesize choices. The result: a big market for downsized furniture to fit smaller rooms. Upholstery manufacturers have taken the lead in lifesizing. Fifteen years ago, when it became clear that the move to smaller living spaces was here to stay, Superstyle Furniture created a new collection of sofas and loveseats 10 inches shorter in length. Today, this Canadian manufacturer of fine upholstered furniture offers dozens of downsized models in a variety of styles, which represent a very significant part of their business. What's in vogue today, according to Laine Reynolds, Superstyle's vice-president of sales, are sectional configurations, which are creating a high demand for resized sets. In response, Super- style introduced two "small space" sectional models in early 2014, which were immediately picked up by a large percentage of their customers. This prompted Superstyle to introduce two more models this past summer. "We're just at the beginning of this hot trend," says Reynolds, "and we're getting excellent feedback from our retailer base." Magnussen Home, a fine furniture manufacturer based in New Hamburg, Ontario, has also re-engineered many of its best-selling collections to a scale and configuration perfect for smaller homes, condos and apartments. "Reducing the size of some of our "Master Bedroom" collections allowed Magnussen to enter a product category we had not previously serviced," says the company's marketing manager, Allison Eremita. "These collections not only fit the need for down-sized furniture, but can also transition over time to fit children's rooms and guest bedrooms when a young couple upsizes from a small condo or apartment to a larger home. These collections now represent a sizable portion of our business." So, how do independent furniture retailers capitalize on this lifesizing trend? • Know your market. Determine the number of homes, apartments and condos in your market area, and their size requirements. Qualify your target customers, and adjust your product selection and floor displays, to meet their needs. • Test your marketing. Before you allocate your entire promotional budget, test which offers most appeal to your demographic. Try using direct mail, a very effective and targeted tool. Simply measure the results of different test campaigns, each one offering a slightly different special on lifesized furniture. • Be on trend. Attending furniture markets is not optional. Trade shows are the best places to learn what's hot and how to display it on your floor. Don't get caught unawares like a top bed buyer I once worked with. At the time, mattresses were being upsized from 9 inches to as much as 18 inches in thickness. The buyer suddenly started getting panicked requests for deeper fitted sheets and she had no idea why! You need to stay on top or, better yet, ahead of the trends. • Create room vignettes. If your target customers are shopping for downsized furniture, you need to display it in specific room vignettes. Placing it randomly on your floor among traditional furniture is not effective at all! Manufacturers at furniture markets can show you how to set up these vignettes to the best effect. By keeping lifesizing firmly in mind, you can up- size your sales and your profits. LIFESIZE TO UPSIZE YOUR PROFITS

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