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Indochino Expands Retail Footprint with More Showroom Openings

By
Mario Toneguzzi
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The recent showroom opening for custom apparel retailer Indochino in Toronto’s Scarborough Town Centre was a bit of a homecoming for the company’s President and CEO Drew Green.

He was born and raised in the community.

“I’ve been waiting for this moment since we planned our bold expansion strategy in 2015,” said Green, who has stayed close to the community over the years through friends and community involvement. “From West Hill to Agincourt, and all the amazing communities in between, Scarborough is rooted in cultural diversity, hard work and proud heritage.

“Bringing Indochino to my hometown is a real honour, and I’m excited and grateful for the people of Scarborough to be able to discover a better way to shop for great fitting suiting, outerwear, and casual wear — the custom way.

“It’s just a community that I’m really, really fond of and dedicated to and love. This is a special showroom for us. I think it’s going to really, really perform well.”

The Canadian brand, which offers a personalized shopping experience where customers design their own suits, shirts, pants, and coats, has opened in a 2,211-square-foot showroom which is the retailer’s fifth in the Greater Toronto Area.

“Toronto is one of our best markets both on a showroom comp basis but also on a market basis. The market grew over 30 per cent last year on a very big number and this is our first east GTA location. We’re excited about it,” added Green.

The retailer has 51 locations. Green said the company will end 2020 with at least 86 locations. All additional 35 locations will be in the United States.

In Canada, real estate company Oberfeld Snowcap represents Indochino in its site selection. Oberfeld Snowcap is also in the process of launching a US office.

“We’ve got a major partnership that we’re announcing that is a major part of that which I can’t really speak to yet,” said Green.

“We’re obviously a Canadian company and Canada does quite well for us. Toronto in particular as well as Vancouver. But there’s just so much opportunity for us in the U.S.”

Currently Indochino has 13 stores in Canada.

“What used to be a very niche part of the market, being custom apparel, has become increasingly mainstream. Our growth rate was phenomenal in 2019. 2020 is going to be probably our best year ever from a growth rate perspective and obviously on a very big number,” said Green, adding forecast growth could be another 40 per cent.

“Custom apparel has really come of age. The other thing that’s really been proven out and come of age is digitally native brands having success with a multi-channel view and execution. This business we’ve transformed from a niche brand to a North American and even global brand by really adopting an omnichannel strategy that’s differentiated.

“We’re a nine-figure revenue company and so that’s a big, big number.”

Green said high street locations represent about 40 per cent of the retailer’s business with 60 per cent in Tier One malls.

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“What we haven’t done with the brand and I don’t see us doing is kind of going to Tier Two, Tier Three malls. We’re going to stay focused on quality versus quantity,” he said.

“Our model is so different than ‘traditional’ retail. The interesting things when we’ve tested and had the thesis about what a mall would do for us is it does provide us with a lot more walk-in traffic. What we’ve seen in the malls is a nice lift of this walk-in traffic and one of the reasons we continue to expand in the Tier One malls.”

Green said the retailer’s success has also come from its product expansion such as outerwear which was launched in September.

Retailers in Canada Powered by Lightspeed Grew more than 6 Times Faster than Industry Standard

By
Craig Patterson
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PHOTO COURTESY OF LIGHTSPEED

Montreal-based point-of-sale and e-commerce software provider Lightspeed announced this week that its retail customers in Canada saw sales growth of more than six times the industry average last year. The revelation comes after Lightspeed compiled data from more than 3,000 Lightspeed retail locations as part of a year-end review following tremendous growth for Lightspeed itself after a successful IPO in 2019.

In Canada, retailers and other businesses utilizing Lightspeed’s platforms saw an average of 10.3% growth in year-over-year gross transaction volume between January and October of 2019 when compared to the same time period in 2018. That’s considerably higher than the industry average that Statistics Canada pegged, which was about 1.5% between 2018 and 2019. Growth insights were obtained as part of Lightspeed’s 2019 Year in Review.

It’s an impressive statistic at a time when retail is seeing a shift in Canada — international brands continue to enter the market while consumer shopping habits change. Lightspeed’s suite of products target independent retailers and restaurants and has expanded beyond the point-of-sale technology that Lightspeed became known for when the company was founded in Montreal in 2005.

LIGHTSPEED FOUNDER AND CEO DAX DASILVA. PHOTO COURTESY OF LIGHTSPEED

“The 2019 Retail Year in Review demonstrates how Lightspeed is helping retailers outperform their peers across a range of industries using our innovative cloud-based technology,” said Dax Dasilva, CEO and Founder of Lightspeed. “It also reveals the degree to which Lightspeed has become an indispensable tool for small and medium sized businesses in 2019 and showcases the strong prospects for retailers’ continued growth in 2020 as they remain agile and competitive in the evolving retail industry.”

Lightspeed’s cloud-based tools aim to create efficiencies for retailers with an expanding assortment of products aimed to help independent retailers function optimally. Mr. Dasilva explained in an interview how his company’s products assist retailers with data and analytics, inventory management and capital investment, seasonal trends, and store staffing. Lightspeed also launched a loyalty platform last year called Lightspeed Loyalty which helps retailers and small businesses engage with customers and keep them coming back.

“Given the growth seen with Lightspeed’s client base, the ‘retail apocalypse’ narrative isn’t accurate,” said Mr. Dasilva. “Retailers utilizing Lightspeed technology are seeing growth in all channels and our platforms are helping continue to drive success”.

PHOTO COURTESY OF LIGHTSPEED

Lightspeed’s cloud-based platforms are used by small and medium-sized businesses in more than 100 countries globally, and new businesses are adopting the technology quickly. As part of the 2019 Year in Review, Lightspeed surveyed about 10,000 US-based small and medium sized businesses using its platforms. Remarkably, US-based businesses powered by Lightspeed saw year-over-year growth of 13.8%, compared to an industry average of about 3% in the country.

In North America, sporting goods and health and beauty retailers utilizing Lightspeed’s products saw tremendous gains in particular. For sporting goods retailers, Lightspeed customers saw the number of transactions per merchant increase by over 22% in 2019, which is indicative of how service offerings are attracting new customers while retaining a loyal client base. Health and beauty retailers powered by Lightspeed platforms saw an overall sales increase last year of 24% over the year prior — the massive rise of beauty influencers is said to have been partly responsible for the strong growth.

Small and medium-sized businesses utilizing Lightspeed’s platforms often see growth exceeding 20%, and the continued growth thereafter in excess of 10% in Canada reflects the strength of Lightspeed’s suite of products, according to Mr. Dasilva. Businesses may start with Lightspeed’s powerful point-of-sale technology before adopting other platforms such as Lightspeed Analytics and Lightspeed Loyalty.

PHOTO COURTESY OF LIGHTSPEED

Lightspeed’s technologies also address the direct-to-consumer trend, which is taking hold in Canada and abroad. Now more than ever, brands are seeking to engage with consumers through dedicated physical stores as well as with online channels such as ecommerce and social media. 

“I spend a lot of time speaking with various small and medium-sized entrepreneurs around the world. Their feedback is that with today’s open dialogue between brands and customers, direct-to-consumer isn’t an anomaly anymore but a crucial element to a company’s success,” said Mr. Dasilva. He noted how brands can seamlessly present a blended in-store and online customer experience — physical stores have become brand experience centres, and the online and social media presence allows for an exchange both with local customers as well as with a global audience. “These important touchpoints work together to showcase products in new and captivating ways, tell stories, collect feedback and ultimately sell,” he said.

Lightspeed continues to grow its operations as well as its suite of products targeting small and medium sized businesses. The company, which launched a highly anticipated IPO last year on the TSX, has seen considerable gains in its share price while also seeing rapid adoption from retailers and restaurants globally. Lightspeed now employs more than 900 people in its 14 offices around the world and is poised for future growth as it secures more business clients and expands its offerings geared towards creating efficiencies.

Cadillac Fairview Malls Dominate Among Canada’s Top Shopping Centre

By
Mario Toneguzzi
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CF Pacific Centre. Photo: Cadillac Fairview

Real estate giant Cadillac Fairview dominated the recent Retail Council of Canada Canadian Shopping Centre Study, which ranked the nation’s most productive malls. Five of Cadillac Fairview’s properties made the top 10 list for sales per square feet.

Also, 13 of its 19 shopping centres across Canada were listed in the Study’s top 30.

The full Study, including the Special Physical Retail Edition of Canadian Retailer, can be downloaded here.

Cadillac Fairview properties making the top 10 list include: 2. CF Pacific Centre (Vancouver); 3. CF Toronto Eaton Centre; 6. CF Chinook Centre (Calgary); 8. CF Sherway Gardens (Toronto); and 9. CF Richmond Centre (Vancouver).

Cadillac Fairview’s Salvatore Iacono said the company’s success in the retail space can be attributed to choosing the right markets and, just as importantly, making the right investments to ensure it has properties in the right locations where consumers are looking for the best offerings.

“Once we picked the right locations, we made the properties special in terms of how they’re laid out, in terms of all the amenities that we’re providing – safety, security, parking access, great environment, great atmosphere, great common areas,” he said.

“The single most important thing that we’ve done, however, is ensuring that we’ve always had the right retail mix. At the core of it, customers – our clients – come to the mall because we give them the best choice of retailers possible under one roof. That’s part of our retail DNA. We’re constantly striving for the best retail mix and merchandising mix to ensure that people have the ability to come to our locations and get what they need and what they want. It’s what keeps people coming back to us.”

All of the company’s shopping centres are enclosed malls with the exception of CF Shops at Don Mills in Toronto, which is an open-air mall. Cadillac Fairview also has a number of retail spaces as part of mixed-use properties in locations that include the Toronto Dominion Centre, an office complex, and Maple Leaf Square.

Across Canada, the landlord currently owns about 20 million square feet of retail space.

Iacono said that Cadillac Fairview is in a constant process of learning, researching and investigating with respect to consumers, trends and other markets as it continues to change the mix of retailers at its malls. The landlord’s diligence results in it being able to constantly offer properties that are fresh, vital and interesting for its visitors, enticing them to return to its shopping centres.

“Retail is always changing and in a constant state of renewal,” said Iacono. “As shopping centre landlords, we need to have our finger on the pulse of who’s hot, who’s less hot, the different merchandising categories that are being created. Somewhere in the world as we speak there’s a retailing concept, format, merchandise or product that’s being ideated that we’re not familiar with. And five years from now, we’ll probably have it in one of our malls. We’re always looking out for that new brand, new retailer or new product that makes it interesting for our clients to keep coming back to our malls.”

Throughout the company’s history, it’s also made sure to prioritize its properties and investments. At one point in time, Cadillac Fairview owned about 70 malls or retail properties across Canada. But it picked the ones it wanted to focus on, selling the others.

“We made massive investments in the properties that we decided to focus on,” said Iacono, adding that the company is ensuring it is spending the money to make its properties the best they can be. “For example, at CF Sherway Gardens in Toronto, we invested in excess of $500 million, completing the project about three or four years ago.”

In addition to the investments the landlord has made in its retail spaces, it’s also focused considerable attention to the redevelopment of some of its shopping malls as multi-use properties.

“The work that we’re doing is not just about enhancing and improving our existing retail. It also includes future densification, which is really exciting. At CF Richmond Centre near Vancouver, we’re embarking on the sales program of a couple of phases of new residential projects that we’re going to be building as part of our property. We have the opportunity to add close to 2,000 residential units at Richmond.

“This is the trend going forward for Cadillac Fairview,” he said. “And it’s also a trend for many other shopping centre owners across Canada. There’s been an acknowledgement that in order to ensure the vitality of a property and improve the sales and traffic, you’ve also got to make sure that you can enhance the value of the retail experience by adding density and other uses around the mall.”

To download retail Council of Canada’s Canadian Shopping Centre Study 2019, which includes an in-depth look at the Canadian shopping centre of the future, visit https://www.retailcouncil.org/research/shopping-centre-study-2019/

Canadian Retailer ‘Modern Golf’ Launches National Store Expansion Amid Concept Success

By
Mario Toneguzzi
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IMAGE: MODERN GOLF

Canada might not be the most ideal country to set up a retail golf business but Modern Golf, one of the country’s largest golf retailers, is aggressively looking at expanding its experiential concept this year.

Paul Fisher, Managing Partner of Modern Golf, said the company, which was initially established in 2012, is set to add more locations in 2020 from its current locations in Toronto, Vancouver, and Vaughan.

“There’s two locations coming in Calgary and they’ll be our fourth and fifth locations,” said Fisher.

“The future Modern Golf 2.0 is ever evolving. Modern Golf is a custom club golf club fitting facility. The Toronto location is 13,000 square feet with five custom fitting bays and basically customers come in and they’re able to purchase equipment but also get a full fitting for it. We use technology to derive what will basically be the best equipment for them. There’s upwards of 30,000 different combinations that a customer can be put into them. We custom build the product basically to PGA Tour specs.

PHOTO: MODERN GOLF

“While basically the entire golf retail world has failed in recent years, we’ve had a fantastic run and are set to open aggressively across the country. We have 10,000 square feet coming in Calgary opening in February.”

Fisher said the Calgary facility will have practice time and include having memberships. It’s not just a facility where people come in to buy equipment but they’re also coming into practice and get lessons as well.

The second location in Calgary will be the company’s first one in Canada as a standalone at a golf course. Modern Golf will be partnering with Country Hills Golf Club. The strategic partnership includes Modern Golf handling all equipment retail on the golf club’s behalf.

PHOTO: MODERN GOLF

“We’ll staff the facility and we’ll also offer an elite level service that’s not available anywhere else in Canada at a private club level and they’re willing to open their doors that outside members can come in and take advantage of the service. We’re excited. It’s different. It’s something we’ve never done before but we see it as a huge growth opportunity for ourselves – that ability to partner with private golf courses and help them offer a higher offering than what they currently have,” said Fisher.

That will open sometime in the spring.

He said the company also plans to launch a location in Halifax later this year.

“We are looking for expansion to the GTA (Greater Toronto Area),” added Fisher.

CALGARY SKYLINE. IMAGE: MODERN GOLF

Fisher said the Modern Golf space looks very much like a showroom – sleek and modern looking. But the locations are really driven by the performance end of things where a customer is going into an individual bay with a professional who will fit the customer for their clubs. The product will be ordered and then built to spec for the customer.

Modern Golf locations have a number of other features including putting greens, video driving ranges, coaching, and lounges.

“Up until this year, we’ve never sold anything other than equipment. It’s only been your traditional drivers, irons, woods, wedges, putters. We never jumped into the space of giving into soft (equipment),” said Fisher.

“This will be the first year we dive into getting into bags. We’re really going to use pop-up models rather than invest in having a lot of inventory and kind of being sunk by inventory. We’re going to use the fact that we are kind of a showroom to be more opportunistic, change and have different brands in there and really drive foot traffic like a pop-up sale would be.”

PHOTO: MODERN GOLF
PHOTO: MODERN GOLF

Modern Golf stocks all major grips and specializes in shaft repairs, adapter installation, sandblasting, paint fill, and many other customization and retrofitting services.

“Golf in Canada is such a difficult business. It’s so so hard on the retail side because of the seasonality. That was a huge impacting factor. If you’re only going to be able to sell golf clubs for six months a year, what are you doing for the rest of the year,” said Fisher.

“Retail’s got such a high fixed cost that if you don’t have other things that you’re dabbling in it’s so tough and golf is the perfect example of that. At the end of the day for us because we kind of pivoted away from retail, that we built this hybrid model, now I would say it opens up any market to us. We’ve got recurring revenue streams that come off of these membership platforms. I would say Montreal, Ottawa, Winnipeg, Edmonton are all possibilities for us now.”

NRF Retail’s Big Show Provided Window on the Future of Retail

By
Retail Insider
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By David Ian Gray

The recent NRF Retail’s Big Show in New York was the 109th edition of the largest annual industry Conference in North America. It featured approximately 40,000 attendees, including 16,000 retailers, 800 exhibitors, 200 sessions, and more than 100 hours of content, sprawling across the massive Javits Centre in Midtown Manhattan.

Participating since 1996, we have viewed this as a terrific window on the mega trends that are shaping the industry. Over that time, it has become primarily a technology show on the trade floor; while some are grumbling about the narrowing of focus, this no doubt reflects technology’s role as the prime driver of change and innovation in the sector.

In the past several years, we have seen a growing contingent of retail executives attend from Canada. This is encouraging. It was not so long ago that our retail leaders tended to shun strategic level industry events, perilously believing that their businesses were “different”, that what others were doing did not apply to them. Yet as one of our client CEOs puts it: “we may not be expanding around the globe, but the best of the globe is quickly coming to compete with us!” Leaders demonstrating a thirst for knowledge outside their own bubble is one of the qualitative indicators my firm, DIG360, notes when conducting a retailer ‘health check.’

While in New York, I caught up with Piers Fawkes, the Founder and CEO of PSFK, one of the go-to retail and direct to consumer trend spotters. I attended several activities in their NY Retail Innovation Week, running concurrent to and including NRF’s Big Show. The highlight was the PSFK Conference, where carefully curated innovators present TED-style in a tight and well-delivered half-day. This is a much smaller event, but where the cool kids play, such as the Matt Alexander, Co-Founder of post-modern department store Neighbourhood Goods, and Dave Cobban, Nike’s lead for its Adventure Club – a subscription model meets circular economy shoe play. Both are betting big on physical retail.

Often the themes on this annual trek are a progression of the previous. However, this year some things are beginning to pop.

  1. Stores are back. Oh, you may not believe me due to this month’s chain-wide store closures, but there are so many more new doors opening every week. What’s clear is that the legacy retailers who have dealt with systems-wide change, right down to who they are and who they serve, are emerging changed but renewed on the other side. At NRF, there was an endorsement of physical retail from equity analysts to CEOs of both online plays and bricks and mortar operators to a critical mass of technologies. However, how “physical” shows up is changing quickly and significantly.

  2. Technology is not just to “keep the lights on.” This should not be news, but let’s make it official. Technology is a strategic asset. Sophistication is growing in how tech serves the business, but also shapes its definition. Erik Nordstrom, co-President of the namesake department store, acknowledged the call for retailers to become technology companies, but noted the risk of simply bolting on new technologies for their own sake. Rather, deft IT vision and management at the C-suite is now a required core competency for all. And tech is separating clearly into the big enterprise systems and the myriad new and smaller innovators driving future change. At NRF, the Innovation Lab showcased the latter. It has grown tremendously and is grabbing a critical mass of traffic at the show. As noted by Simon Foster, Founder of Toronto-based innovator Chatter Research “more and more very senior executives are walking this area [at NRF], to take a peek around the corner.” This is a good sign.

  3. Data needs unlocking. According to Microsoft CEO, Satya Nadella, retail is already generating over 40 terabytes per hour. We are gathering plenty of data and more will come. The issue now is turning that investment into value. As we have been telling our clients, the answer lies more in culture change than it does in the tools themselves. For example, Nadella is calling for retailers to put more information and decision control in the hands of the employees, down to the front lines.

  4. Direct-to-Consumer (D2C) brands are driving the future. Many of the innovation stories shared were drawn from consumer brands going to store and the myriad digital-first D2C plays. Doug Stephens has noted the focus on customer acquisition economics and the improving impact from a focus on stores relative to Facebook and Google ad spend. The use of built space for these businesses is inherently shape-shifting to fit a bespoke need. To paraphrase Erik Nordstrom: customers are seeking solutions not channels. There is lots of trial and error in play and I’m not sure we will lock on definitive new models in the next year. We will learn plenty though.

  5. Diversity is a board level issue.  This was a main stage staple for the second year in a row.  This covers two fronts: representing a more diverse customer base (primarily in fashion and beauty categories) and developing a more diverse workplace (primarily gender and ethnicity). The case was made that these efforts do more than serve a societal demand – they are good for business.  In a particularly articulate and insightful keynote on innovation, Mastercard CEO, Ajay Banga, highlighted that diversity should be more than demographics; that men and women from the same Ivy League Schools might not present very diverse perspectives, and it is perspective that leads to innovative solutions. Notably, the ShopTalk Conference in March will only feature female presenters.

In addition to these, I will share observations in subsequent articles on: the need for better retail data literacy, snapshots of some NY Innovators, fresh takes on partnerships, implications for landlords and developers, and what the future holds for leaders of legacy retail chains.

David Ian Gray is Principal of DIG360, a national advisory for retail leaders and those adding value to this evolving sector.

JLL Report Outlines Current and Future Retail Growth in Vancouver

By
Mario Toneguzzi
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WEST 4TH AVE, VANCOUVER. PHOTO: TOURISM VANCOUVER

With the Vancouver area projected to add nearly one million more people by 2041, increasing density will open opportunities for retailers and landlords, says a new report by commercial real estate firm .

“Bounded by mountains and the Pacific Ocean, Vancouver stands to benefit from high-density urban retail. After the metro area ran out of development sites, landlords began redeveloping existing areas, particularly low-density shopping centres and their adjacent parking lots,” says the report.

“At the same time, Vancouverites are increasingly seeking communities where they can live, work, and shop. This demand has been met by intensification projects that deliver purpose-built rental units and condos, as well as substantial amounts of retail and office space along strategic transit corridors.”

  • SOUTH GRANVILLE, VANCOUVER
  • SOUTH GRANVILLE, VANCOUVER

Currently, downtown Vancouver and surrounding neighbourhoods, including Kitsilano and South Granville, are the densest areas in the city, some equaling Tokyo’s population density, says the report. The JLL study outlines that Vancouver’s high-trafficked retail streets – Robson, Alberni, West 4th, and Granville – present enticing opportunities for retailers and investors alike to benefit from high concentrations of potential shoppers.

Vancouver topped PricewaterhouseCoopers’ 2020 survey for overall real estate prospects by demonstrating strong space demands and diminishing vacancy rates.

“Vancouver (retail) reached the lowest vacancy rate in four years, even among major markets, at 1.3 per cent in the second quarter of 2019. Average rents have increased by almost 20 per cent since 2015. Inventory growth has slowed as several retail spaces have been demolished for redevelopments, but that should speed back up once renovated spaces go back on the market. Robson and Alberni Streets are among the most highly sought-after streets in North America,” says the JLL report.

Besides the overall population growth, another key driver of the retail market in the city is Chinese consumers who make up 20 per cent of the Greater Vancouver population and have a strong preference for luxury goods. 

“A 2019 study conducted by the market research firm Vivintel revealed that one in three Canadian consumers with Chinese heritage buys luxury brands to differentiate themselves from the rest of society, including 40 per cent who prefer to drive a luxury vehicle. Vancouver’s Holt Renfrew – Canada’s homegrown luxury retailer – is said to have the strongest sales performance among its eight stores. Recently renovated, its Vancouver store accepts Chinese payment methods such as AliPay, and spans 190,000 square feet over four levels, two of which are dedicated to exclusive personal shopping suites. In Greater Vancouver, nearly half a million people identify themselves as Chinese,” says JLL.

Arc’teryx at Metrotown (Image: Arc’teryx)

An influx of tourists has also driven the local retail sector, particularly those who are wealthy and purchase luxury goods. The relatively low value of the Canadian dollar has provided an incentive for foreigners to spend locally, adds the report. 

An influx of tourists has also driven the local retail sector, particularly those who are wealthy and purchase luxury goods. The relatively low value of the Canadian dollar has provided an incentive for foreigners to spend locally, adds the report. 

Vancouver is a key retail hub in Canada. Many big-name brands have their roots in the West Coast city such as apparel brands Aritzia and lululemon, outdoor-wear MEC, RYU, Reigning Champ, and Arc’Teryx, and drugstores Pharmasave and London Drugs. Digitally native tailored suit brand Indochino, founded by students of the University of Victoria, established its head office in Vancouver. Other names include Article furniture, Save-on-Foods, Urban Barn, Purdy’s Chocolatier, Saje Natural Wellness, and House of Knives. Vancouver also has several successful national restaurant chains that were either founded or headquartered in the area — The Keg, Earl’s, Joey, Cactus Club, and the Donnelly Group, among others. 

“Back in the day, Best Buy Canada, Costco, LUSH Fresh Handmade Cosmetics, and HSBC Bank Canada established their first Canadian outposts in Vancouver. More recently, retailers from all over the world are choosing Vancouver as they expand globally. Europe: Stefano Ricci, Graff, Patek Philippe, Hublot, La Maison Valmont, Catimini, Brunello Cucinelli, Dior, Jaeger LeCoultre. Asia: Miniso, Mumuso, Douchanglee, Lao Feng Xiang, Lemongrass House. USA: Kohler, Clinique, Filson. 

Vancouver has also been Western Canada’s first location for several luxury retailers. That’s been the case for French jeweller Van Cleef & Arpels, Swiss watch brand IWC Schaffhausen, and German accessory brand Montblanc,” reports the study.

The report says the sheer magnitude of Vancouver’s future population growth will require the construction of 400,000 new homes. 

RENDERING OF OAKRIDGE CENTRE. RENDERING: WONDERWALL

“Vancouver has encouraged landlords to use their properties more efficiently by adopting property tax assessments based on highest and best use. A property that is not currently built out to its maximum use or density now carries the cost of an assessment as if it were fully developed,” says the JLL report.

“As a result, developers and landlords have taken the opportunity to rebuild old and underutilized prime real estate and expand their retail offer. Demolitions peaked in 2019, and more landlords have included demolition clauses in leasing agreements, making them more adaptable to the time frame of developers. There is indeed considerable room for more retail space in the metro area. Per a 2018 study from Altus Group, Vancouver’s shopping centre inventory per capita is 25 per cent lower than the provincial average and 12 per cent lower than the national average. 

“With the continued pressure for growth, Vancouver will have to become even denser by redeveloping projects. Consistent with this, several densification projects have emerged across the region including Amazing Brentwood, Oakridge Centre, and Metrotown. One of the largest redevelopment projects in the area, Oakridge Centre is well positioned next to Metro Vancouver’s Canada Line Skytrain rapid transit system. Property owner QuadReal Property Group is adding approximately one million square feet of retail, 430,000 square feet of office space, and 2,600 residential units within 10 towers and four mid-rise buildings over the next five to seven years.”

Download the full report here.

Canadian Bag and Accessory Brand VENQUE Sees Stunning Growth After Entering China

By
Mario Toneguzzi
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Canadian bag and accessory brand VENQUE has seen stunning growth since it entered the Chinese market a couple of years ago with plans of further expansion in the southeast Asian market in the coming years, as well as within Canada and into other markets.

Simon Cui, the Toronto-based retailer’s co-founder and CEO said VENQUE moved into the China market in late 2017 and the brand has grown to a $3-million USD business there in just two years. 

“We do online in China and we have 50 partner stores that carry our products,” he said.

“We see doubling growth in 2020. First of all, the market is very big and we really penetrated to target a younger group of Chinese customers because they’re the ones who spend quite a bit. Right now, the China market is similar to the rest of the world. The offline business there is shrinking but it’s being replaced by the major brands like Zara, H&M. All these things are taking over the shopping malls. But the boutique stores are suffering like the small Canadian brick and mortar stores.

“So we’ve invested 90 per cent of the human resources or money online because 90 per cent of the sales are coming from online. There’s a lot of tricks to do the online. We had to do a lot of research on the trends and on the demographics and the styles because they’re quite different than the North American trends.”

He said it’s important that the company have the ability to adapt to different markets. 

Cui added that the retailer is also seeing huge growth in the Japan market.

The company was started in 2011 by Cui and his brother Viktor. In Canada, the retailer has more than 100 partner stores which sell VENQUE products.

“We first started off selling just the backpacks and briefcases. Then we expanded more including some apparel. We just launched the hoodie line last year and some accessories and small items. We position ourselves as the travel and outdoor brand,” said Simon Cui.

He said the company is content right now with how it operates through a distribution network and online and it is not at this moment considering setting up its own stores.

“We are focusing more online and trying to be more like a direct to consumer kind of brand. Maybe in the future we’ll have some experience stores or pop-up shops.

“We launched our first collection off KickStarter and since then we’ve had a few distributors from other countries, and also some small boutique stores reached out to us back in 2014. We slowly gained more retailers little by little each year. Back then, 90 per cent of sales came from those brick and mortar stores. Over the years we noticed those sales with the boutique stores we worked began to decline year by year. We were trying to figure out the reasons and obviously it was the overall impact of the online business.

“We noticed that trend and we started to push our products via online sales. That was in 2016.”

VENQUE’s products are made in China, are hand-crafted and designed for the modern adventurer.

Brothers Simon and Viktor are fashion industry veterans and they left a top fashion design house to craft the perfect backpack designed for urban trendsetters and commuters.

“The increasing demand of their single-item prototype quickly turned into a full collection of luxury, travel, tech and work accessories inspired by the English and French Culture of Canada,” says VENQUE on its website. “Shaped by tradition, technology, and culture, VENQUE is committed to professional artisan quality, detail and durability. Our passion for sustainability in synergy with our culture created what VENQUE is today.

“We have set out to manufacture the highest-quality, handcrafted leather goods available. The VENQUE brand only works with leather providers that pass our rigorous selection process. Our partnerships with the best fabric and bag manufacturers, allow us to deliver an unparalleled carrying experience. It is our mission to find that blend of sustainability and quality that all our customers love. Everything you see at our stores is handmade by real people. Artisans who have spent their professional lives learning the art of making beautiful and functional leather products.”

Canadian Mattress Brand ‘GoodMorning.com’ Sees Phenomenal Growth with Plans for Expansion

By
Mario Toneguzzi
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IMAGE: GOODMORNING.COM

GoodMorning.com, based in Edmonton, has been described as a “sleeping giant”, becoming Canada’s largest Independent online mattress company as it nearly tripled growth in 2019, reaching revenue of over $40 million.

“We were the first online mattress company to launch the in-home trial. That was the point where the online mattress revolution, if you want to call it that, began. It all started with us,” said Sam Prochazka, President and CEO of the retailer

The company was founded in 2009 as Novosbed and rebranded to GoodMorning.com in early 2019.

“Since then we’ve been working hard to build this company,” he said, adding that the retailer has sold more than 60,000 mattresses across Canada.

SAM PROCHAZKA AND NOVOSBED MATTRESS. PHOTO: GOODMORNING.COM

The company’s roots began when Prochazka had a “terrible” experience mattress shopping in the traditional way in late 2008.

“I just felt there was a real opportunity to offer more value to customers – huge opportunity. And over the last 10 years we validated that sentiment,” he said.

  • APOLLO MATTRESS. PHOTO: GOODMORNING.COM
  • APOLLO MATTRESS. PHOTO: GOODMORNING.COM

“We’ve grown this business without investment. We’ve sustained double- or triple-digit growth every year since inception. Healthy growth every year since we started even with the onslaught of competition.”

The company does sell across North America but 95 per cent of its business is in Canada. Prochazka believes the company is the largest e-commerce business in Alberta.

  • JUNO MATTRESS. PHOTO: GOODMORNING.COM
  • JUNO MATTRESS. PHOTO: GOODMORNING.COM

“When I look at the ebbs and the flows of the business in the last 10 years, it’s the periods of time that forced us to innovate and add more tools to the toolbox that were turning points,” he said. “That’s what I would attribute the last 12 months of growth to, the foundation for the next year, and well into the 2020s. Competition is healthy. But in this industry, it’s also ruthless.”

The retailer’s success was helped by a number of digital-friendly, customer-centric innovations including 100 per cent free returns, a mattress donation program, and a 100+ night in-home sleep trial that changed the future of a multibillion-dollar industry.

“It’s an enormous amount of work. In many respects in Alberta we’ve got this can-do attitude without the hubris. I would ascribe the majority of our success to that. We’re constantly focused on optimizing the way we deliver the products, what’s in the products, how we market them. We obsess over the customer experience. Those are the ingredients,” said Prochazka.

“In 10 years, by the end of the decade, we want to have a quarter of Canadians sleeping on a GoodMorning.com mattress. That’s our goal. It’s really just a matter of how we get there. We think there’s a real opportunity in this business to build a mattress company that is very different. We differentiate between the approaches of a most loved versus least hated approach.

IMAGE: GOODMORNING.COM

“We see big opportunity coming to it from a more customer centric standpoint if we can offer value through things like consistent pricing year-round so people don’t have to worry about haggling or waiting or timing their purchase properly, things as simple as that we think we can change the traditional approach to business.”

The mattresses are designed in Edmonton and are manufactured across the country. The retailer sells mattresses of all sizes and prices. This week, they will launch their seventh and most technologically-advanced mattress, coined Apollo, which uses cooling copper-infused foam.

Retailers in Canada that Stock Magazines Become Destinations

By
Mario Toneguzzi
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PHOTO: MAGAZINES CANADA

By Mario Toneguzzi and Julene Chung

Like the retail industry, the magazine sector has changed dramatically in the last 10 years. But one thing that hasn’t changed is the special feeling consumers get when browsing magazine newsstands in store.

A recent study by Magazines Canada and BrandSpark found that print magazines still play an important role in the retail experience. As consumers browse attractive magazine covers and discover evergreen content in special issues, they are enticed to make impulse purchases that add to retail revenue.

Retailers that stock specialty or niche magazines can use visible magazine displays to attract traffic into the store and get shoppers browsing. A curated selection of niche magazines can also add to a store’s aesthetic appeal.

In addition to these benefits for retailers, the study also found that survey respondents whose shopping trip included a magazine purchase reported greater satisfaction with their shopping experience.

According to Chris Chambers, Retail Accounts Manager for Magazines Canada, it’s not just traditional book and magazine stores that can benefit—non-traditional magazine retailers are also seeing the results of selling magazines. Consumers enjoy going to specific retailers for magazines because of the selection they’ll find.

“Supermarkets and drugstores might carry the top 50, the top 75 titles, but rarely do you see a nice big rack there like a good bookstore or a magazine store can provide,” he said. “That’s their advantage in the broad range that they can carry.”

  • PHOTO: MAGAZINES CANADA
  • PHOTO: MAGAZINES CANADA

Canadians choose Canadian magazines

Although retailers typically carry a relatively small selection of Canadian magazines, shoppers demonstrate a strong appetite for Canadian content.

That’s why Magazines Canada distributes Canadian magazines directly to stores. Magazines Canada is the country’s only direct-to-retail newsstand distributor, and the only distributor dedicated exclusively to Canadian magazines.

“We actually distribute about 150–160 titles into book and magazine stores that we have accounts with across the country,” said Chambers. “I will formulate a plan with a new publisher or modify a distribution plan with an existing publisher and figure out how to get copies into stores.”

Through a cross-country network of specialty, independent and chain retailers, Magazines Canada distributes Canadian magazines to about 150 retailers with a further 120 stores, including Chapters Indigo, through wholesalers partnerships.

Setting up an account to sell Canadian magazines through Magazines Canada’s distribution program requires very little financial commitment. All magazines distributed through the program are returnable for full credit if the magazines don’t sell through.

What’s next

Magazine displays at grocery check-outs have been the standard for years. But as the retail experience shifts to online and mobile shopping, Magazines Canada’s next retail study will examine the feasibility of incorporating magazines into click-and-collect grocery sales.

“We are doing more research around that now that people are ordering their groceries in a click-and-collect world. We’re just trying to figure out how viable or useful it might be to have some magazines, or how even possible it would be, to have them available where they’re collecting their groceries,” said Chambers.

He said there is also a trend where magazine publishers are moving into the retail space and opening their own stores.

“Of course if you have a retail space, you can sell your magazine. [But] you can sell other well chosen products,” added Chambers. “It’s kind of exciting to see this happening. They see a need. They are coming at it from basically a publishing background and they’re going for it.”

This article was written in collaboration with Magazines Canada to share the results of The Role of Magazines at Retail study.

Magazines Canada is a national not-for-profit organization that represents the majority of Canadian-owned magazines. Magazine Canada members publish a wide variety of print and digital publications which include consumer, cultural, specialty, professional and business-to-business magazines. Learn more about the organization at magazinescanada.ca

Italian Fashion Event ‘WeLoveModainItaly’ Welcomes Canadian Retailers January 28-29 in Toronto

By
Retail Insider
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exc-5e2a0cfb83e9c52fc87eccd3

By Retail Insider

Italian Fashion in Toronto – Mission to Canada for Scalfarotto.

CNA Federmoda is set to launch “WeLoveModainItaly Toronto” on January 28 and 29, 2020 as part of its commitment to support and promote Italian SMEs in the fashion sector.

The CNA Fashion Union’s companies, in partnership with Consorzio Moda in Italy, and with the support of the Ministry of Foreign Affairs and International Cooperation as well as the Italian Trade Agency, will showcase a selection of Fall-Winter 2020/2021 collections to the fashion industry in Canada.

Event attendees will have the unique opportunity to network with some of Italy’s favourite brands in the hopes of cultivating possible commercial relationships in Canada. Brands and companies set to be participating in the exhibit include: Artico, Ave Caprice, Bovina, Colb, Daniele Callegari, Flò Sophie, Giulia Brunetti, Landi Fancy, Luca Della Lama, Martylò, Mod.E, Mori Castello, Rosanna Pellegrini, Roberta Gandolfi, Rossomenta, Suprema, and Zerosettanta Studio. 

The relationship between “Made in Italy” and sustainability will serve as a theme throughout the event. A keynote presentation on the principles of “Made in Italy” – craftsmanship, exclusivity, quality and uniqueness – and its close connection to sustainability will be held on Tuesday, January 28, with opening remarks by Antonio Franceschini, CNA Federmoda National Manager. 

In addition, President of Consorzio Moda in Italy, Mr. Roberto Corbelli, who is a specialist in research and analysis of trends, will further the discussion on agenda topics throughout the duration of the two-day affair.

As part of a trio representing the Italian Government, Undersecretary for Foreign Affairs and International Cooperation, Ivan Scalfarotto, will assess the CETA agreement impact on trade exchange during his mission to Canada for “WeLoveModainItaly.”

He will be accompanied by the Italian Ambassador to Canada, H.E. Claudio Taffuri and the Italian Trade Commissioner to Canada, Matteo Picariello, as they continue to promote Italian SMEs in the fashion sector. 

A meeting with the aforementioned Italian organizations and the National President of CNA Federmoda, Marco Landi, is scheduled to take place on January 29 in Toronto.

The CNA Federmoda Association – Joining together the textile, clothing, shoe, fur & leather, fashion, eyewear manufacturers, and affiliate businesses, the CNA Federmoda Association protects and represents approximately 25,000 small-scale manufacturers and other SMEs in the Italian fashion industry, both private-label producers and third-party manufacturers.

To register to attend, please RSVP to rsvp.itacanada@ice.it.

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