Who’s in Your Corner? The Importance of Choosing Your Partners Right

There is no such thing as business as usual. Since the recession of 2008, Canadian retailers have been trying to keep up; managing market changes like the emergence of e-commerce, the Covid pandemic and now the threat of U.S. tariffs. These challenges add a layer of complexity to their already hectic workdays. Most independent Canadian retail owners wear multiple hats and oversee every department in their store while simultaneously trying to make time to grow their bottom line, support their staff and serve their customers.

The question becomes, who is supporting the retailer?

In this issue of Retail Pulse™, we reach out to Canadian retailers to discuss their vendor partnerships, what it means and how retailers rely on vendor support so they can work on their businesses — not just in them.

Corey McMullan on Service
When it comes to service, TikTok influencer and co-owner of Smith Falls, Ont., retail store McMullan Appliances, Corey McMullan, says, “It’s more about the qualitative for me. My biggest thing is how do you handle a warranty call? Do you make me wait six weeks for a credit and run me around?”

Over the years, the industry has experienced a significant reduction in consumer price points for appliances. To do this, manufacturers have adopted the use of more plastic components, which are durable but tend to degrade faster than their metal-based predecessors. Consequently, a defective washer priced at $699 can result in service charges amounting to nearly $450 for labour and parts from third-party technicians, should the repairs fall outside the jurisdiction of the manufacturer’s warranty.

With fame comes higher volume sales, which can lead to more service claims on average. McMullan professes that service is one of the most important factors when deciding what products stay in the showroom and which need to go.

“We give the most floor space to the vendors that give us the best support.”

Retail tip: Don’t make it a competition.
Beware of shrinkflation: Quality of goods is reduced for the desired price points of big-box retailers. This planned obsolescence promotes high volume, low value sales at the cost of integrity service

Konrad Kozan on the Groups
Retired, industry veteran Konrad Kozan of former retail location Kozan Furniture in Regina, says he’s worried about the supply chain under the threat of U.S. tariffs. He suggests taking advantage of our nation’s biggest support centre — buying groups.

“It’s important for retailers to participate in a buying group, be it MEGA, dRSG, Cantrex (Nationwide) or others; their job is to look out for retailers. Take advantage of the connections and programs they provide. This business is all about professional development.”

Retail tip: Come together.
Professional development: The absence of a national trade event restricts our networking opportunities. Establishing connections with other industry professionals is particularly vital during periods of disruption. Forming new relationships introduces valuable resources for growth, as buying and performance groups offer essential knowledge.

Steve Forberg on Giving What You Get
Steve Forberg, owner of Toronto’s Decorium, says that when it comes to vendor partnerships, it’s a two-way street.

“We’ve always tried to do more with less (vendors).”

He further asserts that cultivating more tenured relationships, paired with allowing vendors greater than average showroom real estate, makes Decorium a more valuable partner.

“Being a better business partner gives us an ability to collaborate better and to make concessions for certain product programs, and in some cases limit distribution of particular items.”

Retail tip: Be proactive.
Ahead of the curve: Adopting new technologies early can enhance your company’s appeal to both consumers and market partners. Utilizing digital platforms in your showroom can increase sales and provide better experiences for consumers.

Jim Fee on Reps Doing it Best
Are travelling manufacturer representatives becoming a career of the past?

With rising costs of travel and the ease of modern technology, many vendors may be ditching the road warrior for desk jockeys. Jim Fee, president of Stoney Creek Furniture in Hamilton, Ont., says there is more to vendor partnerships than a virtual Zoom meeting.

What some vendors don’t realize is how much impact their reps can have on retail sales associates when it comes to sell-through of their product. Fee asserts that reps are the ones that can create rapport with sales associates.

“It’s the rep that builds that relationship. My sales people will go out of their way to sell pieces for their favourite reps.”

He adds, “Obviously you still have to maintain a relationship with the buyer or the owner but that’s only one part of it. Going over to see the guys in operations and say, ‘Hey, is there anything I can help you with? Do we have any service issues?’, that builds an integrated relationship throughout the company.”

Retail tip: Don’t be shy.
Pick up the phone: Reach out to vendor reps and encourage them to visit your store. There is no better resource than an industry colleague who knows what’s happening in the market.

Core Partnership
The definition of vendor partnership varies. While retailers differ in size, customer demographics, product mixes and staff complements, these factors determine the level of support needed from suppliers. A common element across all valued partnerships is communication and collaboration. Building trusted relationships with vendors may take some effort but it can pay off during challenging times.

RetailPulse™ digs deep to uncover and share what’s happening throughout the Canadian home furnishings industry. Corrie-Ann Knell has served the industry in various capacities for more than 17 years and provides reflections on the many challenges faced by today’s leading retailers.