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BrandSource launches sleep shop

From the HGO Merchandiser

 9 May 2022     Michael J. Knell 

For most furniture, mattress and appliance (FMA) retailers, particularly the single-unit independent, mattresses typically account for 14.5% of their annual revenue. It’s equally well known that 14.5% generates more gross margin dollars than any other department on the floor.

Maximizing the performance and profitability of the sleep shop is high on every owner-operator’s ‘to do’ list and the primary motivation for the launch of BrandSource Sleep (BSS), created specifically for members of the primary go-to-market banner operated by Mega Group, the Saskatoon-based FMA buying and marketing group.

Seen here is an artist’s rendering of BrandSource Sleep, the new in-store bedding gallery currently being rolled out by Mega Group to the members of its primary go-to-market banner, BrandSource Canada.John Power, the group’s veteran general manager of sales and strategic development, recently told Home Goods Online the new gallery program will debut at nine BrandSource Canada stores across the country in late April with at least another ten expected to come online in October.

The members scheduled to open BSS galleries in April include:

  • Harris BrandSource Home Furnishings, Fort McMurray, Alberta;
  • Barber & Haskill, Midland, Ontario;
  • SleepMatters/Grove TV & Appliances, Goderich, Ontario;
  • McLellan BrandSource Home Furnishings, Lower Woodstock, New Brunswick;
  • Stubbe’s BrandSource Home Furnishings, Tilsonburg, Ontario;
  • New Age Home Furnishings & Electronics, Weyburn, Saskatchewan;
  • BrandSource Estevan, Estevan Saskatchewan; and,
  • Meubles & Nous, Beauport and St-George de Beauce, Quebec

Power said 15 members signed on to the program when it was first presented to them in 2021 and are in various stages of conversion. To date this year, another eight have come aboard, he added, noting the goal is to have 75 BSS galleries in operation across the country by the end of 2025.

Tania Dionne, a mattress industry veteran who was named Mega Group’s director of merchandising for bedding in November 2020, was charged with developing BrandSource Sleep by its recently departed president and chief executive officer Kim Yost and is part of a five-year plan designed to give member retailers the tools and training needed to give the category the spotlight it deserves and growth sales.

“Bedding industry sales have grown by more than $200 million in the past 24 months or so, pushing past the $2 billion mark,” Dionne noted. “People are more and more into wellness, lifestyle and performance and show increasing awareness about the value and role of sleep in their overall health. So, having a sleep gallery program dedicated to these ideas makes sense.”

She also firmly believes this program is a step-up from others – both past and current. “BrandSource Sleep is all about results,” she said, “keeping track of sales, performance and training. It’s a national program supported by key suppliers. We have guidelines to be followed and targets that need to be achieved. We also have a dedicated marketing plan in place designed to increase our presence in the market.

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This HGO article was written by:
Michael J. Knell
Michael J. Knell

Michael is the publisher and editor of Home Goods Online. A seasoned business journalist, he has researched and written about the furniture, mattress and major appliance industries in both Canada and the United States for the past three decades.

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Home Goods and its accompanying newsletter - HGO This Week - covers the furniture, bedding, appliances, consumer electronics, accessories, lamps and lighting and floor coverings product sectors of the big ticket home goods market in Canada. HGO is also a forum for the dissemination of market research and hard-hitting articles on best practices for Canadian retailers.

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