Leon’s Furniture Ltd. offers bedroom, living room and dining rooms collections.

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When the young entrepreneur Ablan Leon left his native country of Lebanon in the early 1900s, he set out with his brother, Elias, to search for a new home to fulfill a dream of owning his own business. After traveling throughout South America, he slowly moved north until he discovered the town of Welland, Ontario, Canada.

According to grandson and company Vice President of Merchandising Edward Leon, Welland was a small manufacturing town with a large population of immigrants. After settling down, the elder Leon started a modest operation selling clothing to customers door-to-door.

It wasn’t until years later that he had saved enough money to purchase a storefront to expand the business. After setting up shop as the A. Leon Co., he grew his product line to include pants, blankets, shoes, linens and a number of additional items. What he was known for in town, however, was his commitment to sell only high-quality products at a reasonable price.  

Leon continued operating the store for many years as he started his family of 11 children. It wasn’t until his oldest son got married that he “accidentally” entered the furniture business, his grandson says. After purchasing a mattress as a wedding gift for the newlyweds, Leon stored it in his shop. Soon after, a customer expressed interest in buying it.

He complied, and sold the mattress for a small profit. Recognizing the wider profit margin of these products, he had the idea to sell more big-ticket items in the future.     

“He was truly intrigued by the fact that he could make more off products with a larger price point,” Leon says. “He slowly started to offer bigger products such as furniture, appliances and electronics in the years to come.”

A Strong Presence
Another grandson, Terrence Leon, acts as president of the corporation and has grown it to 35 corporate-owned stores and 27 franchise locations throughout Canada. The company is gearing up to celebrate its 100-year anniversary in 2009, Leon says.     

“We’re planning on taking a multi-faceted approach to our anniversary,” Edward Leon states. “We already have plans to hire a public relations firm. Obviously, that will involve us in many public events, fundraisers and community based projects. We’ll also be talking quite a bit about our history, to make sure that’s brought to the forefront in all the markets we serve.”    

The legacy left by Ablan Leon will be stressed in a revamped advertising campaign, as well. It’s rare for companies to reach the 100-year mark, and it’s even more difficult for these operations to remain with the founding family, Leon adds.    

"We’re going to be spending a lot of advertising dollars on playing up our history in this business,” he says. “This is quite a milestone, since there are not many companies that have reached this point in the past.”

A Wave of Growth
Even in the early years, the company stood out from other furniture dealerships by featuring a fair price combined with a knowledgeable sales staff. In the late 1960s, after the company moved its headquarters to the Toronto area, demand from its customers grew to new heights.     

“It soon became clear that to capitalize on Leon’s growing presence, a new wave of expansion was logical,” the company says. “This would require a significant injection of capital. In 1969, Leon’s Furniture went public and was listed on the Toronto Stock Exchange. The family retains the majority ownership of the shares while individuals as well as institutions, all well aware of the company’s growing reputation, snapped up the balance.”    

Several years later, in 1973, the company says it opened the first furniture warehouse showroom in Canada. “This massive 150,000-square-foot building was the first example of big-box retailing in the country,” it says. “For the first time ever, customers had access to a multi million-dollar inventory that prevented long delays in obtaining their purchase.     

“This bold new retail initiative was promoted heavily on television through a series of commercials, including one that used a helicopter to show off the immense size of the store. The buying public accepted this radical new approach with open arms and the company began erecting huge new showrooms across Canada.”

Rapid Expansion
In the early 1980s, Leon’s recognized the opportunity for expansion into smaller towns throughout Canada. Customers in certain communities were often forced to travel long distances to shop at a Leon’s Furniture showroom, the company explains. “Many customers expressed their wish of having a local Leon’s in their area,” the company explains. “The idea of Leon’s franchise stores was born.”    

However, to maintain its culture and strong corporate values, the company wanted to expand only with the help of the most qualified franchise operators available. “The ideal candidate for a Leon’s franchise store is a business person with experience in the field, as well as a solid reputation for service, integrity and dedication,” the company explains.     

“Although Leon’s was approached by many retailers to become a franchise, only a select few demonstrated the same drive to excel as the corporation. The franchise division has grown dramatically over the years and has become a critical component of the company.”    

Its strong pool of franchisees has helped the business grow steadily and enter new markets across Canada. “Leon’s merchandising and marketing prowess is available to all [independent operators], so that their customers receive the same value and selection of product as the corporate stores,” Leon says.

Franchise Operation
Leon’s Furniture offers franchisees the opportunity to operate an independent operation, but with the benefit of the company’s brand recognition and reputation. “The name ‘Leon’s’ brings credibility to the business in the minds of consumers and within the industry,” the company explains.

According to Leon’s, franchisees enjoy more than brand recognition. Strategic advantages to owning a franchise include:

• Buying power – Franchisees connect with a company offering decades of experience in purchasing.

• Marketing and promotion – A multi-million dollar advertising budget wins the company national recognition.
• Training programs – Franchisees undergo extensive training prior to opening a new store.
• Counsel and advice – Operations staff listen to franchisees’ questions and concerns closely.
•  Franchise network – Operators have the ability to communicate and share knowledge with franchisees across the organizations.
• Territorial integrity – No Leon’s will open in another franchise’s territory.  

Everyday Value                                                                                                                  
The company’s family values have earned it a reputation for offering value and quality at competitive prices in all its markets. “We fight to give customers good value, day in and day out,” Leon says. “We’re not the type of company to place a fictitious price on a product and reduce it. We sell at competitive prices every day, and we’re proud of that.”   

According to Leon, the company is able to maintain lower prices by working closely with vendors on pricing issues. “We’ve built ethical relationships with our vendors, and are constantly challenging them to bring down their cost on items, so we can offer better value to our customers,” Leon says. “We also have a strong marketing department here, which constantly brings our message to the forefront of the operations, which helps.”

Moving Forward
The company is proud of its reasonable prices, Leon says, and does not rely on price promotions to drive business forward, from a marketing perspective. “Everybody in this industry is hung up on pricing,” he says. “It’s been a motivator to get customers in the store, which is important.

 “[However, we also] try to sell the message about the fact that we also have a great selection, beautiful showrooms and friendly, knowledgeable staff,” he adds.     

In addition, the company’s after-sales support services rival any of the big-name national retailers. The company solicits feedback from nearly every customer who purchases products from Leon’s Furniture.     

“We always try to make sure customers are happy with their experiences in our stores,” Leon says. “If we discover they’re not happy, we will follow up with them immediately to find out why.”    

After each delivery is shipped, customers receive a call from Leon’s Furniture to evaluate the delivery team, as well. “We have fully manned service departments in every store to deal with customer complaints or concerns they have,” he explains. “We’re committed to make sure every customer is satisfied with their experiences.”

Satisfaction Guaranteed
Leon’s Furniture stands by its products and ensures customers are satisfied with each purchase. Although certain manufacturers may not offer traditional warranties on their products, Leon’s service department will try to answer questions and deal with issues customers may face, it says.    

If customers are not satisfied with a product purchased at Leon’s Furniture, employees will work to remedy the problems whenever possible. “[Customers] don’t just buy a piece of furniture at Leon’s, [they] buy peace of mind,” Leon’s says. “We understand their family’s needs, and that’s why we’ve built our business on exceeding expectations for service, quality and value. If for any reason at all customers are dissatisfied, we promise to do whatever we can to make them happy.”    

The company offers a number of warranties that are available for purchase on many of its products, to ensure customers are happy with each order. The company’s Platinum Sleep Care program guarantees a full refund for 90 days if customers find they aren’t satisfied with a new mattress set, Leon’s says.
    
Low Price, Higher Quality
Leon’s strives to ensure its prices are among the lowest on the market. “Our policy is to offer [customers] the lowest price in Canada,” the company says. “If within 30 days of [a customer’s] purchase [they] see the identical merchandise advertised for less, under the same terms and conditions, Leon’s will gladly refund the difference in full.”    

Leon’s offers several of its own warranties on certain products. For instance, its Platinum Leather Care program will cover damage such as drying, cracking, rips and tears. “Our warranty promises that we’ll replace the entire suite if necessary, to satisfactorily correct a warranty related problem,” the company says.    

All appliances purchased at Leon’s can include both the manufacturer’s warranty and the company’s Platinum Protection Plan, as well. “[Customers] receive extra peace of mind when [they] purchase Leon’s Platinum Protection Plan,” the company states.         

“This features all-inclusive parts and labor coverage, no deductions, [full insurance] for extra protection, and in-home service convenience for most products,” it adds.

The ‘Best of’ Online Shopping
Leon’s stores may cover many Canadian markets nationwide, but it is now making its products even more accessible to the average customer. Leon’s offers an extensive Web site which features many of the same products found in its showrooms.     

Most likely, products will be in-stock at a store near many of its customers, Leon’s says. “[Customers can] select a delivery date, place the order online and soon receive the merchandise from one of our local stores that knows home delivery and will always be there to help,” the company explains.    

The company strives to provide efficient and reliable delivery to all its customers. “Leon’s delivers thousands of orders a day, quickly and efficiently,” the company says.    

“And, with our state-of-the-art online tracking system, we keep [customers] in the driver’s seat. [They can] choose their delivery date during the purchase and can track their orders online,” the company continues.    

“Throughout the process, [they can] take advantage of some of the most advanced delivery systems in the industry,” it adds. “And, [they] will always have a local contact that can help [them] with any questions before or after the delivery.”  

Because Leon’s operates a large network of stores, it can promise efficient delivery to customers throughout Canada, the company adds.   

Urban Renewal
Leon’s Furniture offers product lines that appeal to a variety of consumers, but its most recent collection is geared to urbanites living in smaller condominiums and apartments. The Urban Classics line consists of furniture that is built with a modern style, but on a smaller scale.     

“We’re trying to tap into smaller residences by offering this product line,” Leon says. “The products aren’t cheaper necessarily, but they’re more contemporary and marketed to our customers who live in smaller homes.”   

Currently, the collection offers approximately 25 items, but will continue to expand as necessary. According to Leon, the majority of furniture in the collection focus on the bedroom, living room and dining room. “This is a great area to grow our business,” Leon adds.

Interior Redesign
Although the company is constantly updating its product lines, in 2006, it recognized the need for an updated look throughout its retail stores. In its older locations, the company worked to increase foot traffic by creating a fresh, new look.

“Major renovations of our existing stores in Calgary, Alberta, and Kitchener, Ontario, are ongoing,” the company says. “By the end of [2007],  we expect to have concluded our major renovations program for all of the original stores that were constructed in the late-1970s and early 1980s.

“Today, the new, contemporary design of our showrooms has provided Leon’s with an exciting new look that resonates with our customers who walk through our doors, and its gaining good response from the public, drawing more of them into our stores.”

The company had an eventful year in 2006. In addition to its showroom renovations, Leon’s continued to “pursue our strategy of targeted growth in new markets while solidifying our existing positions through an ongoing process of building new stores in lucrative locations,” it explains.     

In addition, the company also expanded its number of franchise  operations, and managed to attract more customers from new markets, as a result.

The Sourcing Saga
Sourcing products successfully while keeping prices at a consistent level is not easy in today’s manufacturing climate, Leon says. With the proliferation of low-cost Asian manufacturing, quality issues have been called into question, the company adds.     

However, Leon’s was one of the last North American furniture companies to start sourcing product from the Asian market, which helped it avoid many of the initial quality issues. “There were a lot of horror stories from companies who started [sourcing from Asia] right away,” Leon says. “The manufacturers didn’t understand the functionality of North American furniture in the beginning, and the products were limited in terms of style and quality.”

Leon’s was focused on supporting North American manufacturing for as long as possible. “We tried to work with domestic manufacturers for as long as we could, because price has never been the only factor in making purchases for us,” Leon says. “But now, the North American manufacturing base has been decimated with the advent of low-cost suppliers coming online.”   

The biggest challenge Leon’s Furniture had to face was adjusting to the logistics issues inherent in overseas sourcing. Along with many of its peers, the company says it had to quickly learn the ins and outs of its new supply chain system. “We all basically had to educate ourselves about this as time went on,” Leon says. “We had to become more logistically minded, and better understand issues associated with global sourcing.”   

Employees were forced to become experts in freight forwarding, longer lead times and the costs of sourced goods from Asia. “These are all talents and skills that we’re still trying to master,” Leon says.

Ensuring Quality Standards
Although the quality of many products coming out of China in the early years was suspect, Leon says furniture durability and style have been steadily improving. However, the company is taking a proactive approach to ensure the quality of its products.     

“Our buyers have strict quality criteria that our vendors must cooperate on,” Leon explains. “We make those demands up front, but we also make sure that each product meets these guidelines when they come into our stores.    

“If for any reason they don’t meet our standards, we won’t continue to carry that product type. Our vendors know our expectations well ahead of time,” he continues.

Investing in the Future
Growing by a rate of two to three stores annually, Leon’s hopes to continue expanding across Canada and parts of the United States well into the future. According to Leon, the company’s growth in the future will be governed by old-fashioned principles. “Our philosophy is that if we don’t have the money, we typically won’t want to expand or grow the business in a way that puts added pressure on us,” he says.

In addition, the company garners additional profits by investing in real estate. Leon’s owns the majority of its properties, and enjoys lower operating costs as a result. “This way, we don’t have to worry about going to the bank and making loan payments in addition to running the business itself,” he says. “We generally fund our expansions through available cash on-hand. Once the building is paid for, we have a much significantly lower operating cost.”

Leon admits that operating a real estate side of the business is sometimes time-consuming and challenging. But the payoff is worthwhile. “When you buy, source and build your own facilities, there’s much more time involved,” he says. “That’s the downside to our expansion, but we don’t have to pay any kind of rent, which more than makes up for the extra time.”

A Big, Happy Family
Even as Leon’s Furniture continues on its path of expansion, it maintains a tightly knit family atmosphere. With more than 2,700 employees, the company is still able to spread its corporate values across the corporation.     

“Even though we’re all spread across a large geographic area, we try to cultivate a culture similar to what you’d have in your own family,” Leon says. “We treat each other with mutual respect, but we also expect people to carry their own weight and operate with good work ethics.”   

Additionally, the company rewards employees with a profit-sharing program. “We also have strong benefits that endear our employees to the well-being of the company,” Leon explains. “We build a united spirit of all trying to do the best we can for the purposes of both the company and ourselves to succeed.”

Trained and Ready
The individual success of its employees is important to the company, and it stresses ongoing career development initiatives. Leon’s recently introduced new training programs, highlighting product knowledge and customer service issues. “This program includes a Web-based training module for every section of our business,” Leon says. “It includes product knowledge sessions that vendors also have to cooperate with us on.     

“We developed all these programs online, on a secure network,” he continues. “We started the program last year in our sales end of the operation. We’re in the process of rolling it out to every department in our company. It’s been a great training and evaluation program so far.”

This training tool is designed for both new employees and Leon’s current staff. The program offers ongoing skills assessments that are available over the Internet, to ensure each employee can remain up-to-date in their product knowledge. “We plan to extend these learning opportunities across our organization, to enable our associates working in all areas – front office, warehouse, delivery and management – to upgrade their skills and benefit from this invaluable learning experience,” President and CEO Terrence Leon said in a statement.

A ‘Learning Culture’
Its electronic training programs will provide the platform from which the company will build its “learning culture,” Terrence Leon said. The initiative will benefit customers by allowing them to work with highly qualified and knowledgeable Leon’s employees, while allowing employees to take ownership in the success of the company.

“This initiative is part of a larger, more comprehensive strategy to transform our company into a learning organization,” Leon said. “We are creating this e-learning culture at Leon’s with equal opportunity for all associates to learn and to play a greater part in our company’s success.

“As a first step in this transformation, we are developing a revolutionary companywide system architecture that will integrate business operations with learning resources into one seamless system,” he continued.“When fully implemented, the system, which will be accessible through our company Web site, will be a user-friendly, state-of-the-art portal for end-to-end sales and delivery processing, with comprehensive learning opportunities right from the desktop.”

A Bright Future
Leon’s management team predicts the company will continue to find success well into the future, as well as continue focusing on strong partnerships. Its focus on continuous improvements remains its key to success. “As Leon’s approaches its centenary year, we will continue to do what we do best: Stand by our commitment to deliver outstanding results, quality service and sustained value to our shareholders, customers and associates,” Edward Leon said.    

As the company moves closer to its 100-year mark in 2009, it will remain dedicated to strong, but steady growth. “We are extending our multi-year tradition of delivering outstanding financial performance and record sales, while continuing to manage our growth strategically, to successfully expand our business,” he said.

“With the opening of our franchise in Nanaimo, British Columbia, we became one of Canada’s largest home furnishings businesses, and a national service provider with locations from coast to coast,” he added.

Leading the Rest    
Maintaining a leading position in this volatile industry is not an easy accomplishment, but the company attributes much of its success to the loyalty and dedication of its employees. “These important accomplishments are the result of the hard work, dedication and a strong reflection of the personal contributions of Leon’s valued associates,” Leon explained. “We believe that it is their representation of our shared values of fairness, integrity and trust that results in the exemplary financial statements we continue to show year after year.     

“We can be proud of those achievements, knowing that our past successes are solid investments in the future,” he added. “We go [forward] well positioned to take advantage of new opportunities in markets where we are already strong, and to achieve continued strong success in the years ahead.”

Geographic Growth Strategy
Although the company maintains a presence in all the major markets in Canada, Leon predicts there is room for increased penetration. “We see many opportunities in western Canada, for example,” Leon explains.

In the future, the company plans to further saturate its present markets while growing into new ones, as well. “We’ve been looking at our neighboring United States to continue our expansion,” Leon says. “We’re not happy standing still, and plan to continue growing our business well into the future.”