It’s time to re-arrange the furniture stores.
Two of the country’s biggest home furnishing retailers, Leon’s and The Brick, are joining forces.
The move comes as more American retailers are entering the market. In less than two weeks, the Swedish giant furniture store IKEA opens in Winnipeg and next March American retail giant Target will replace several Zellers locations.
In an attempt to stay afloat in a fiercely competitive furniture market, Leon’s has purchased Canadian rival, The Brick.
“Today marks the start of a very exciting new chapter in the history of two great canadian companies,” said Terry Leon, President and CEO of Leon’s.
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“I think there’s no surprise, there’s a big dog coming into the market, with ikea,” said Chuck Davidson, with the Winnipeg Chamber of Commerce, “I think a lot of the other furniture stores are looking at where their place will be in this community.”
The $700 million buy-out includes 230 Brick stores across Canada, including three in Winnipeg.
“I think we have the ability to compete with anyone in the world, if we put our minds to it and we’re willing to take the plunge,” said Leon.
But joining forces, could be bad for smaller furniture retailers.
“I’m very unhappy about it,” said Cynthia Brick, owner of Brick’s Fine Furniture, not associated with The Brick.
Brick says this merger means one less player in the market.
“I think competition is very good in this business and the lack of competition frightens me,” said Brick.
Despite a slightly slower housing market, the Chamber of Commerce is confident there’s still enough business to go around in Winnipeg.
“Retail sales numbers have been continually increasing on an annual basis,” said Davidson, “so people are spending money in this community.”
Something furniture stores are depending on.
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