Calgary, Alberta — Alberta Furniture is evolving from a family business into a business that just happens to be owned and operated by a family.
For Cliff Eisenberg and his brother, Stan, there are subtle but important distinctions between the two. A family business puts the emotional needs of the family first, regardless of any negative impacts on the business. A business that just happens to be owned by a family puts aside these considerations. Business decisions are made and risks taken based on the principles that merchants have employed for centuries.
Cliff Eisenberg admits it has only been in the past couple of years that his family recognized their predicament and decided to make changes — not only to their business but to their operational and management style.
"Current business challenges have made us take a more sophisticated approach," he said. "We needed to get out of the box we were in. We were still very much a mom-and-pop type of operation and we began to realize how disconnected we really were from our business."
Alberta Furniture was founded in 1919 and acquired by Eisenberg's grandfather, Jake Smolensky, in 1954. Shortly thereafter, Cliff and Stan's father, Jack Eisenberg, came into the business.
A banner difference
What makes the company unique is that it now operates four very different stores, each under a different banner with its own distinct niche.
"Each store has its own message," Cliff Eisenberg said. "By having a lot of brands, we can respond to sudden changes in consumer demand. We're also hedging ourselves against growing competition, the ups and downs of the economy and changes in customer preferences."
The original Alberta Furniture store, recently renamed Alberta Home Interiors, or AHI, still exists in its original location. Alberta Furniture has become the name of the Eisenbergs' parent company, which operates the four stores.
Although the AHI building has undergone several renovations and expansion, it still has much of the charm and character of its original architecture and is recognized as a landmark in Calgary's historic Riverside/Bridgeland district.
The revolving sign atop the roof is close to a half-century old. It could not be built under current building codes.
"This store has weathered the depression of the 1930s and the recession of the 1970s," Eisenberg said.
The 15,000-square-foot AHI is Alberta Furniture's mainstream, mass-market store, featuring goods from Palliser, Sklar Peppler, Stanley, Décor-Rest and Dinec.
"AHI has always been about value," Eisenberg said. "While always carrying product that might be above what might be found at The Brick or Leon's, AHI primarily caters to working families offering superior quality at affordable prices."
Just across the corner from Alberta Home Interiors is Roxton House. Originally Riverside Furniture and Appliances, this 8,000-square-foot store was transformed into Roxton House in 1980 and was one of the first dedicated manufacturer's gallery stores ever opened in Canada. At the time, Roxton, now known as Roxton Temple Stuart, was a full-line manufacturer with a core lineup of higher-end, solid-wood case goods augmented with fabric upholstery.
"When we launched this store, it was done completely with Roxton product," said Eisenberg. But as the industry changed, the store adjusted its mix.
"This store has always told a strong solid-wood story. We kept the story but now we tell it with other Canadian product," said Eisenberg.
Roxton House is the only Alberta Furniture operation dedicated totally to Canadian-made furniture. It features wood lines such as The Gibbard Furniture Shoppes and Durham Furniture, as well as custom upholstery specialist Barrymore.
In 1991, Eisenberg's Fine Furniture, or EFF, was opened, also across the street from AHI.
"In an attempt to once again differentiate and diversify our offerings, we organized a store designed to cater to the carriage trade," Eisenberg said. "EFF is now recognized as carrying the finest home furnishings available in Calgary."
EFF's sales staff is made up of interior designers, and the store focuses on projects for wealthy clientele.
"From entire homes in Calgary's most exclusive neighborhoods to secluded retreats and multi-million dollar penthouses, this store has provided furnishings for some of the world's wealthiest people," said Eisenberg.
It's a concept thing
With 30,000 square feet of selling space, Eisenberg's is one of the few Canadian venues for high-end U.S. producers such as Marge Carson and Hancock & Moore.
"This is not an item house," Eisenberg said. "The meat of our business here is projects — we create concepts for an entire house."
The latest addition to Alberta Furniture's stable is the first freestanding Sklar Peppler Sofa Shop, or SPS, which opened late last year.
"This is our first remote location," Eisenberg said.
This store is located in the southern part of Calgary in a destination area that houses about a dozen other furniture stores, including Leon's and a Lane Home Furnishings store.
"SPS is different from our other stores in that it allows us to retail furniture as a factory outlet concept," Eisenberg said. However, the family also wanted the 25,000-square-foot store to provide a complete shopping experience for the consumer.
"In addition to the Sklar Peppler brand, we have supplemented the store with product from other non-competing sources to allow us to present a full-line furniture store. So far, this has proven to be very successful."
It was during the planning for the Sklar Peppler store that the Eisenbergs realized the key to their long-term survival was to take a more professional approach to their business.
"When we committed to expand with SPS, we knew our existing business model was inadequate," Eisenberg said. "As a third generation of operators of a family-owned business, we face many challenges, not the least of which is to ensure the perpetuation of the business for the next generation."
One of the first moves the company made was to join Mega Group, the co-operatively owned furniture buying and marketing group based in Saskatoon, Saskatchewan.
"This was the first step towards getting us out of our box," he said. "It also brought us the realization that much more needed to happen if we were to perpetuate our business into the next generation."
This led to involvement with the management system made popular by industry guru Ted Shepherd.
"We joined a Shepherd performance group," Eisenberg said. "This consists of between 10 and 15 furniture retailers from non-competing markets who get together three times a year to share the most intimate details of their business with one another in an attempt to help each other."
The other initial changes were quite simple. While their father, Jack, is still president and chief executive officer of Alberta Furniture, Cliff and Stan now have more clearly defined roles and responsibilities. Cliff is vice president in charge of merchandising and operations, while Stan is vice president in charge of advertising and sales.
They also have begun to build a middle-management group — something they've never had before — appointing store managers for both Alberta Home Interiors (this person also oversees Roxton House) and Eisenberg's Fine Furniture. Cliff Eisenberg said that as the company grows, more professional management will be brought in, particularly buyers and merchandisers.
Eisenberg said one of the biggest challenges for independent retailers is the hiring and retention of quality salespeople. To that end, Alberta Furniture has adopted the Shepherd programs and requires all salespeople to undergo the company's training.
Building the team
Alberta also has adopted new approaches to hiring, with the hopes of building a team committed to the company's future.
"Shepherd terminology has seeped into my psyche," Eisenberg said. "We don't want to be dealers anymore, we want to be merchants because merchants are professionals."
That change of mindset is a key to survival, he said.
"We have started the journey of transforming our operation from a family-owned business to a business owned by a family," Eisenberg said. "Our new customized model has given us the tools to measure and analyze every component of each of our operating units while creating a new foundation upon which we can remold ourselves to embrace further expansion as we refine and develop our skills."
Edmonton is one target for growth, with a second Sklar Peppler Sofa Shop to be opened in that market in the near future.
"We are well aware that many more challenges lie ahead," Eisenberg said. "However, we have the tenacity to eliminate roadblocks and will find creative ways to meet our objects. We're sure that we will secure our operations for yet another generation."
