QUEBEC CITY - Cantrex had its best year ever in 2006 with both central billings and total retail sales reaching new record highs, members were told here at the group's first ever national convention and trade show recently. The group has expanded both its service offerings and product programs for independent furniture, bedding, appliance and electronics retailers and is aggressively recruiting new members.

"We have over 1,200 points of sale across the country generating over $2 billion in retail sales annually," Alain Masse, president and general manager of the fee-for-service buying and marketing group told the 120 members attending the conference. "We are everywhere. We have over 100 merchant members in the City of Vancouver alone and are represented in every province and as far north as Iqaluit in the Arctic.

Alain Masse, president and general manager of Cantrex Group

"We have a national presence and things are going very well at Cantrex and that's thanks to all of you," he continued, adding that 22 retailers have joined so far in 2007 and that year-to-date, purchases made through central billing are up 20.2 per cent over last year.

"Same store purchases of furniture are up 8.5 per cent to date this year, and appliances are up 22.8 per cent while electronics have gained six per cent," Masse said, adding that only in bedding have retail orders declined. "Our members are realizing the value of Cantrex. This is a good result."

This was the first time in the group's 40-year history that its furniture, bedding and appliance division held a national meeting. Previously, Cantrex held two events - one for retail members in Quebec and the francophone areas of Ontario and New Brunswick and another for the members of its Ontario, Western and Atlantic Canada (OWA) division.

Most industry observers believe the group has lost traction in the furniture and bedding market over the past decade - particularly in English Canada - a predicament they note predates Cantrex's acquisition by Sears Canada from General Electric Capital Corp. two years ago. While there may be some truth to that observation, Masse points out that Cantrex has seen strong growth in all of the other sectors in which it operates, including appliances, electronics, floor covering and photography and has grown its furniture and bedding base in Quebec.

He also believes the group is poised to take back whatever ground it lost on the furniture front in English Canada over the coming months and years, particularly with the roll-out of the redesigned and revitalized Mattress World concept, scheduled for roll-out later this year, as well as a number of new product and service programs aimed at helping independents to grow their businesses.

"To stay competitive, you have to differentiate yourselves from the competition," Masse told his audience. "You have to fight on service; you have to provide a good shopping experience. Make sure you always have new product on your floors - you have to make them interesting. You have to sell extended warranties because if you don't, you'll be leaving a lot of profit dollars on the table."

At the small market held in conjunction with the conference, these furniture retailers were introduced to allied merchandising concepts that Cantrex offers, including United Floors, its national carpet and flooring retail network, and Appliance Expert, its white goods concept. Masse said getting involved in these other product areas gives furniture retailers them ability to deepen relationships with his own consumers.

"When people are buying furniture, they are often renovating their home, so why are we not offering to do their floors and other things?" he said.

Cantrex has much to offer the independent retailer, Masse said. Everything from the creation of new import programs, the introduction of a new decorative accessory lines, the creation of Cantrex University - a new sales training service - and Smart Systems, a new IT service.

"All of these concepts have been well studied and thought out," Masse said. "All we ask is that you give them enough time to achieve the expected results.

"We are greater together," he concluded. "The best is yet to come."