Home decor retailers scramble to make presence felt online

Canadian industry in a bit of ‘disarray’ catering to millennials’ needs, analyst says

Canadian home-furnishing and decor retailers facing tough economic challenges are beefing up their ecommerce offerings to appeal to tech-savvy shoppers such as Tania Caldareri.

In her early 30s, Caldareri is like many her age — she shops online or browses sites before choosing which stores to visit and where to spend her money. And in a cautionary note to retailers, she won’t waste her time with retailers that don’t have a robust Internet offering.

“For sure online is definitely important . . . It’s a key focus,” she said while browsing Bouclair Home, the Canadian chain that’s one of her go-to sites.

Like the women’s fashion sector, Canadian home furnishing companies are facing intensified competition from large foreign brands, including Pottery Barn, Pier 1Imports, Bed Bath & Beyond, TJX-owned HomeSense, Costco and Walmart.

Each is trying with varying success to adapt by having a strong network of stores while building web sales. Few are willing to discuss their strategies publicly, including Bouclair.

While TJX said it sees e-commerce working for all its brands over the long-term, said a spokeswoman for the company that’s been in Canada for 25 years, the U.S. chain doesn’t offer online shopping in Canada.

Retail analyst Jean Rickli of the J.C. Williams Group said many Canadian companies are struggling to adapt to shoppers who demand an online presence.

“It’s a little bit of a disarray at this point because everybody is adjusting,” he said.

In the U.S., kitchen retailer Williams-Sonoma, which started as a catalogue company and now owns Pottery Barn, has been the most successful, drawing more than half of its overall sales online.

North of the border, retailers have taken notice and are trying to boost online sales by offering free shipping to either the nearest store or directly to a shopper’s home. Canadian Tire is working on getting a revamped e-commerce platform back online after scrapping its old one in 2009.

Swedish giant Ikea is testing a new pickup concept where online purchases can be picked up from small showrooms or collection locations in cities far from the nearest store. Canada is one of five test countries.

Moody’s expects overall Canadian retail sales will grow between 3 and 3.5 per cent this year, down from 3.6 per cent in 2014. But it also estimates that ecommerce sales will account for 5.9 per cent of overall retail sales, up 16.8 per cent from 2014.

Retail analyst Brynn Winegard said large, one-stop shopping retailers such as Ikea are doing well with shoppers born between1980 and1999, who are beginning to be a driving force for sales as they set down roots and buy homes.

Unlike older generations, these shoppers tend to be more urban, are less likely to drive and don’t like to hop among suburban big box stores, she said.

Montreal-based Dorel Industries, the manufacturer of ready-to-assemble furniture and other goods, says it has those online shoppers top of mind when it creates home-furnishing designs that can be shipped via courier.