You have two types of convenience stores these days. You either have the mom-and-pop stores, often operated by local people or newcomers seeking a better life in their adopted country. You also have stores which are part of enormous multinational conglomerates, which streamline operations by supporting thousands of outlets. That is where Alimentation Couche-Tard comes in.
Taking over the world, one convenience store at a time, was Couche-Tard’s plan since day one. Most Canadians wouldn’t know that Couche-Tard is one of the world’s largest convenience store chains. Only Japanese-American international chain 7-Eleven Inc. is bigger. Couche-Tard has 16,000 stores, 133,000 employees, and generates almost $60 billion in revenues. Most of the stores are in North America and Europe, and include well-known brands like Circle K locally, Kangaroo, and Topaz in Europe. The company’s aim is to double in size in 5 years, and it intends to start by acquiring Caltex Australia, in the Land Down Under. Caltex has about 2,000 stores in its network across Australia. Couche-Tard’s bid is worth almost $8 billion, its largest ever. After years of growth through acquisition, a deal in that region of the world would be Couche-Tard’s final crowning glory.
Convenience stores aren’t necessarily the most glamorous sector you can find as an investor, but Alimentation Couche-Tard is a true Canadian success story. It has made 60 acquisitions – 60! – since 2004. Management has developed the ability to find good deals and seamlessly integrate newly-acquired stores into its network. The company has grown organically by capitalizing on assets of acquired brands. This is no small feat, but the network has gotten too big and now needs to look elsewhere.
PHOTO: CALTEX
Caltex is an interesting target for Couche-Tard, which is known for its focus on high-quality food products. A convenience store is where most of us will buy gas, snacks, or staple goods that we’ve run out of and are willing to pay a ridiculous premium for. Not for Couche-Tard. The focus has always been to convert fuel dollars and foot traffic into food sales. Caltex recently partnered with giant Australian Grocer Woolworth’s to enhance its food offering. Couche-Tard can certainly learn a thing or two about working with a grocer to get fresh – if perishable – food to several points of sale.
Couche-Tard, always looking for the next opportunity, wants to expand its network to Australia and Asia, simply because it can. The offer to buy Caltrex is subject to several conditions, including due diligence, financing, Foreign Investment Review Board approval, and a unanimous recommendation by the Caltex board. But several analysts believe a deal is quite possible and feasible in the coming weeks.
The mastermind behind Couche-Tard’s success is Alain Bouchard, a self-made billionaire. He is now the 11th richest person in Canada, with a net worth of over $4 billion. He is worth more than Stephen Jarislowsky and Charles Bronfman, combined. He did it simply by buying convenience stores. During his experience operating convenience stores at a very young age, he saw the potential of leveraging retail by providing more convenience ahead of his competitors. His approach wasn’t to manage the sale of cigarettes, alcohol, gasoline or even food in isolation. For Bouchard, it was about building synergies between major components of convenience store retailing, and he did that better than anyone else.
PHOTO: CIRCLE K
He also undertook simple, but transformational changes which affected grocery retailing. A store that was open 24 hours a day was almost unheard of thirty years ago, and grocery chains in turn felt the pressure to open longer hours. Food quality was not great in convenience stores, but Bouchard ensured it was good enough to make his convenience stores a legitimate contender for grocery chains. He took food retailing more seriously than any other convenience chains at the time.
And now, Couche-Tard wants to be a key player in the cannabis sector. It’s looking at buying Cannabis NB, which could be a good experimental lab for the company as it tries to expand its cannabis business across the globe. Selling alcohol in convenience stores has been common practice in Quebec for years, and the company has done well in that area. As other provinces are catching up to Quebec, Bouchard’s network is poised to do even better by complementing its offering with cannabis, especially when regulations in the market here and in the United States evolve. Australia and New Zealand are other places where cannabis could become legal in the future, which makes the Caltrex deal even more interesting.
Alimentation Couche-Tard did well over several decades because it saw no limits. Consumers are pressed for time these days, and the company will always be there to cash in on this, a situation that isn’t going to go away anytime soon.
Popular Montreal-based fashion brand Pajar, known particularly for its boots and outerwear, has opened its second permanent storefront at the Toronto Premium Outlets, west of Toronto. The company is growing its wholesale distribution while expanding its direct-to-consumer operations, which will include at least three more Canadian stores as well as franchised stores in Japan and China next year.
The Toronto Premium Outlets Pajar storefront features white walls and shelving, showcasing the Pajar fashion collection, which includes a range of warm and waterproof performance boots, outerwear, apparel, and accessories. Pajar’s ’DNA’ is expressed in the boutique design, according to Michel Golbert, VP of Pajar and grandson of the company’s founder. Included are racks with whimsical wooden features meant to reference skis, lighting fixtures made of faux antlers and a faux-mounted white moose head.
An upside-down toboggan acts as a display table, and a sleigh at the front of the store references Canadian winters. Wall hangings reflect Pajar’s Canadian heritage — the history of the company is referenced in the stores with images of the founding Golbert family in the 1920’s-40’s selling shoes in Paris where they lived prior to moving to Canada. To this day, Pajar remains an international business with distribution in more than 40 countries, and the company produces nearly a million pairs of boots annually.
Pajar’s first Canadian flagship storefront opened at the Premium Outlets Montreal in Mirabel in the fall of 2018. Around the same time, the company tested out a pop-up space at Toronto’s Yorkdale Shopping Centre, which closed several months ago. The store openings are part of an effort to build brand awareness amid impressive growth. “Pajar Canada continues to see tremendous brand growth in 2019 through our trusted retail partners in North American as well as with our distributors in European, and Asian markets,” said Greg Nicoghosian, Global Brand Director for Pajar brands.
“Our stores provide a firsthand experience, with our dedicated and knowledgeable staff, in discovering the comfort and performance of Pajar Canada, offering products Canadians have proudly enjoyed for generations in our winter-driven climate”. Mr. Nicoghosian explained that more corporately owned Pajar stores are expected for Canada, including a second Toronto location as well as “premium retail stores” in Montreal and Quebec City. A location in New York City could also open in the fall of 2020, though a location hasn’t yet been secured.
Real estate company JLL represents Pajar in Canada under the direction of David Bishop, who negotiated the Toronto Premium Outlets lease on behalf of the retailer.
Globally, Pajar is expanding retail operations using a franchise model. In Tokyo Japan, a Pajar retail store will open prior to the Summer 2020 Olympics in the city. In China, franchised Pajar stores will open in Shanghai, Beijing, and Harbin.
Pajar is expanding into direct-to-consumer retail stores in an effort to further gain brand awareness while showcasing Pajar’s expansive line of products which are also wholesaled in retailers nationally. The family-owned company is known particularly for its high-quality footwear and outerwear. Pajar was founded in Montreal in 1963 by Paul Golbert and as the story has it, Mr. Golbert found the inspiration for the company’s name by using the first letters of his name, his son’s name and his wife’s name, (PAul, JAcques, and Rachel), respectively.
Pajar has expansive distribution in upscale retailers across the country such as Harry Rosen, Holt Renfrew, Nordstrom, and Browns Shoes, and the new stores should expand Pajar’s brand awareness in order to gain market share across all sales channels.
MICHEL GOLBERT AT THE PAJAR STORE AT TORONTO PREMIUM OUTLETS. PHOTO: PAJAR
The company’s history includes ample innovation. That includes the popular Zig-Zag’ boot which is an ‘apres-ski’ item featuring a centre-zip and sheepskin lining. That invention helped Pajar become the official provider for the Canadian Alpine Ski Team in 1989.
The ‘Pajar Canada Heritage Premium Collection’ is manufactured in the same factory that Paul Golbert opened in Montreal’s ‘Plateau’ area when he first became a producer of Canadian footwear in 1973. Boots are lined with 100% genuine sheepskin and are guaranteed to keep feet warm in temperatures as low as -40°C, according to the company.
The Pajar Sport collection includes urban performance and casual street wear that is manufactured in Pajar’s global facilities in Italy, Portugal, and Asia. The collection combines seam-sealed premium waterproof leather and textile uppers comfort rated to -30 C. The Oslo Apres Ski Collection, handcrafted in Italy, features genuine fur uppers including Fox, Rabbit, and Goat fur along with the hydro-repellent leathers, and seam-sealed construction.
Other Pajar collections include outerwear such as foldable rain boots, a wide variety of winter coats for men and women, socks, belts, bags, and hiking boots.
We’ll report back as Pajar opens more Canadian stores, as well as franchised locations in Japan and China next year.
Forever 21 Closes All Canadian Stores: Los-Angeles based retailer Forever 21 filed for bankruptcy protection in September and has since closed all 44 of its Canadian stores. The company’s first Canadian store opened in 2002 at West Edmonton Mall prior to expanding across the country to eventually occupy about 900,000 square feet of retail space in shopping malls.
Already, some spaces formerly occupied by Forever 21 are spoken for, at least temporarily. At the CF Toronto Eaton Centre, signs on the windows indicate that Canadian retailer Urban Planet will be moving in — we’d heard from a source in September that Urban Planet would quickly expand its operations into former Forever 21 storefronts via short-term leases.
It remains to be seen if Forever 21’s clearance sales had an effect on retail in Canada — stores were cleaned out and shuttered ahead of Black Friday. The reason it’s called ‘Black Friday’ is because many retailers don’t become profitable until the December consumer rush, so anything disrupting that could result in even more retailers filing for creditor protection. A source we spoke with last week says that we may see other retailer filings announced before the end of January 2020.
CONSTRUCTION: THE EXPANSION OF LOUIS VUITTON’S MEN’S CONCESSION IN VANCOUVER. PHOTO: RETAIL INSIDER
Holt Renfrew Vancouver Update: The 190,000 square foot Holt Renfrew flagship in downtown Vancouver is undergoing major changes as it continues to see strong sales as the top-selling Holt Renfrew store in the chain. New brands and boutiques are being added, and Retail Insider toured the store last week to report on the latest.
That includes a new 1,000 square-foot Chanel women’s footwear boutique, which is the first of its kind in Canada. The boutique, located adjacent to the women’s shoe department on the third floor, features two rooms showcasing a wide range of Chanel footwear styles in a luxurious environment. Chanel is said to be the top-selling brand at Holts in Vancouver — before a luxury slowdown in Vancouver over the past few months, Chanel was said to be approaching $100 million in sales in the Vancouver store alone, which is incredible.
Louis Vuitton, as well, is expanding its presence at Holt Renfrew in Vancouver. That will include an expansion of the Louis Vuitton men’s concession on the men’s floor which will include Louis Vuitton ready-to-wear, which will be a first for Holt Renfrew in Canada. A women’s Louis Vuitton ready-to-wear boutique is also set to open on the women’s designer floor which again will be a first-in-Canada for Vuitton. They will join a large LV accessory concession located in the street-level luxury hall — sales of bags and accessories at Louis Vuitton in Vancouver’s Holt Renfrew are said to be higher than that of the Vuitton “maison” flagship store at the nearby Fairmont Hotel Vancouver.
The men’s shoe department at Holts Vancouver has also relocated to a new space on the men’s floor, which is seeing significant changes. The former shoe department, which was flooded by natural light from windows facing Howe Street, is being repurposed for two luxury brand boutiques. That includes a recently opened Christian Dior men’s boutique that features the brand’s ready-to-wear as well as bags and accessories, as well as a large Tom Ford boutique that will open in early 2020. Other recent additions to the men’s floor include a Celine concession (first in Canada) and a Burberry men’s boutique featuring the brand’s most updated store design. They join Fendi, Givenchy, Prada, Moncler, Burberry and other major brand boutiques, as well as a men’s Christian Louboutin shoe concession that remained in its original spot despite the men’s shoe department relocating.
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PHOTO: NKPR
PR Maven Natasha Koifman’s ’ShopNK’ Launches Second Product ‘Drop’: The founder of leading PR firm NKPR has launched a second roster of brand collaborations as part of the ShopNK initiative — Retail Insider reported on the first inception of ShopNK in September of this year, which included limited edition collaborations for the “curated e-commerce platform with a conscience”.
The ‘Drop002’ includes unique limited collaborations with entrepreneurs, designers and leaders who have disrupted the the retail, fashion, beauty, and entertainment industries. The latest collaborations include:
ShopNK Collaborations. Photo: NKPR
Roots: a three-piece unisex capsule collection featuring an oversized pouch, leather shirt jacket and a reprise of the brand’s original backpack,
Jacquie Aiche: a black diamond capsule collection featuring an Onyx Double Point Necklace, Diamond Choker and Diamond Finger Bracelet,
Brunette the Label: a collection of black-on-black graphics that makes a dual statement about one’s hair colour and personality. Available with Blonde, Brunette, Red Head and Jet Black graphics.
LINE Knitwear: an embroidered capsule of knitwear, scarves & hoodies
WINK Cannabis: a high-holiday entertaining collection, and
In keeping with the charitable component to ShopNK, a portion of the proceeds from every purchase goes directly to an established charity of the buyer’s choice of one of six local and international organizations that are significant to Ms. Koifman. She explained that it is an approach that “empowers the next generation to think philanthropically at the personal level and give more meaning to the things they surround themselves with”.
HERMÈS CONSTRUCTION HOARDING ON STE-CATHERINE STREET WEST IN MONTREAL. HERMES WILL BECOME THE MOST EXCLUSIVE BRAND TO HAVE A STOREFRONT ON THE STREET. PHOTO: MAXIME FRECHETTE
Hermès Begins Construction of New Montreal Store: French luxury brand Hermès is relocating its Montreal boutique from the soon-to-close Holt Renfrew store at 1300 Sherbrooke St. W. to the recently rebranded Holt Renfrew Ogilvy at 1307 Ste-Catherine St. W. that will be completed within months. The new Hermès boutique will span about 3,000 square feet and will include a broader range of products than that found in the smaller Holt Renfrew Hermès boutique, which featured street-frontage on the prestigious and attractive Sherbrooke Street.
The new Hermès boutique will include frontage facing onto Ste-Catherine Street, marking a luxe shift on the street that will be further amplified when Louis Vuitton opens at Holt Renfrew Ogilvy in early 2020.
The area around Holt Renfrew Ogilvy is seeing significant changes. That includes a newly completed Four Seasons Hotel and Private Residences, which includes 169 hotel rooms and 18 luxury condominium units worth in excess of $6-million each. New retailers in the area include Mackage and COS. Holt Renfrew Ogilvy itself is seeing an incredible transformation that includes expanding the Ogilvy flagship to about 250,000 square feet over five retail levels, creating a home for some of the world’s leading luxury brands. Much of the space is dedicated to leased concessions with many of those exceeding 1,000 square feet. Chanel recently unveiled an impressive 3,345 square foot bi-level boutique on the new main level luxury hall at Holt Renfrew Ogilvy. It joined other main floor luxury tenants including Tiffany & Co., David Yurman, Bottega Veneta, and Prada, with other big names to come including an expanded corner space for Louis Vuitton.
LOOKING EASTWARD ON STE-CATHERINE STREET PAST THE HERMÈS STORE AT HOLT RENFREW OGILVY. PHOTO: MAXIME FRECHETTE
On the fourth floor at Holt Renfrew Ogilvy, a 40,000 square foot men’s store includes concession boutique spaces for 25 brands — the most of any such store in Canada. On the concourse level of Holt Renfrew Ogilvy, a 25,000 square foot beauty hall is also impressive and spacious and will no doubt see increased foot traffic once conuctrustion of the building is completed in the spring of 2020. Holt Renfrew Ogilvy could become a high-end tourist attraction as well as being an anchor to the Ste-Catherine Street revival which includes a public realm overall and the addition of exciting new concepts such as Time Out Market and retailers such as Uniqlo.
Kit and Ace Opens 1st Store After Acquisition: Vancouver-based fashion brand Kit and Ace opened a 900 square-foot storefront at Park Royal in West Vancouver on November 9th, 2019. It’s the ninth location for Kit and Ace, which also has stores at 165 Water Street in Vancouver, 2235 W. 4th Avenue in Vancouver, 102 Bloor Street West in Toronto, 779 Queen Street West in Toronto, 171 Lakeshore Road E. in Oakville, 800 16th Avenue S.W. in Calgary, and at CF Chinook Centre in Calgary.
Retail Insider toured Park Royal last week, and the property is looking impressive. The centre also saw an incredible spike in productivity recently — over the 12 months ending in June, the centre’s sales per square foot was $1,342, up from $914 the year prior. Owner Larco attributes the sales increase to less productive retailers exiting the centre as well as foot traffic from new additions including a VIP Cineplex cinema that opened in the spring.
PHOTO: CASPER
Casper Opens 7th Retail Showroom in Canada: Mattress-in-a-box brand Casper, which began as an online brand, has opened seven Canadian showrooms over the course of about 18 months. Most recently, Casper unveiled a 2,400 square-foot retail space at Toronto’s Yorkdale Shopping Centre — it’s Canada’s most productive in terms of annual sales per square foot and is also home to the largest single clustering of luxury brands anywhere in Canada.
Yorkdale’s Casper is located near the mall’s TTC subway entrance and is directly across from the Dyson experience showroom — the future of physical retail is experiential, and Yorkdale is on the forefront with recently launched concept stores including Kit Kat and pop-ups such as Keurig which opened on Monday and will remain operational until December 23rd.
Casper also recently opened at Upper Canada Mall in Newmarket, north of Toronto, as well as at the Toronto Premium Outlets. Other locations include West 4th Avenue in Vancouver and CF Chinook Centre in Calgary. Casper’s first Canadian retail space was at CF Sherway Gardens in Toronto which opened in May of 2018, and a Canadian flagship and head office opened on Queen Street West in Toronto almost exactly a year ago.
PHOTO: DEPARTO
Founders of Design Firm Yabu Pushelberg Launch Product Line with Yorkville Pop-Up: George Yabu and Glenn Pushelberg, in collaboration with Yuichiro Hori (of StellarWorks) have designed a new lifestyle line of housewares and furniture called ‘departo’ (spelled lower-case) that is on display until December 28 in the retail space at the base of the Hazelton Hotel at 118 Yorkville Avenue in Toronto (formerly occupied by a goop pop-up shop that was featured in Retail Insider).
The 1,300 square-foot boutique, also called departo, houses products including furniture, ceramics, textiles, metal work, and glassware. Prices are meant to be affordable while being of high quality. Included are items such as elegant and utilitarian folding chairs ($464) and cafe tables ($542), neutral-hued napkins ($33), and stoneware bowls ($21-$37). They’re described as being “versatile, beautifully minimal, and built to last”.
It’s being described as “the world’s first lifestyle label to create ‘Essentials for Global Nomads’”. The collection is also available on departo’s new e-commerce site. The line first launched in New York City.
After departo departs its 118 Yorkville Avenue space, construction will commence for an upscale brand from France that will make its Canadian retail debut in the spring of 2020.
Square One Pop Up. Photo: StickerYou
StickerYou Opens Square One Pop-Up: Unique retail concept StickerYou has opened a pop-up space at the Square One shopping centre in Mississauga. The boutique kiosk spans about 10 x 15 feet and is located across from H&M and Pandora stores in the hallway between Holt Renfrew and Uniqlo.
The pop-up will be open until January 15, 2020, and features hundreds of popular die-cut stickers, decals, patches and temporary tattoos. Design themes include artists, music, funny, motivational, cute, sports, entertainment and other diverse offerings, and are manufactured by the company in Toronto. While the company has been around since 2008, it only recently got into retail.
StickerYou’s brick-and-mortar expansion speaks to the tangible nature of retail — while brands are able to sell online, creating a physical show space engages with the consumer and creates legitimacy. Physical retail, when done right, is also memorable and that connection is a way to further enforce brand awareness at a time of unprecedented distraction.
Zaatar w Zeit means “Thyme and Olive Oil” which are the cornerstone ingredients of the flatbread wraps that were baked in its first forno ovens. Fresh dough is drizzled with olive oil and sprinkled with a mix of wild thyme and toasted sesame seeds. The steaming hot wraps are made fresh to order with cheese and other toppings taking their place alongside thyme and olive oil. Martin Moriarty and Mario Negris of CBRE Vancouver represented the landlord in the deal with Zaatar w Zeit.
More Canadian locations are expected to follow for the delicious concept, which chose Canada for a North American expansion because of its welcoming nature and multiculturalism. And while Canada is home to a large Lebanese population, the country is also known to embrace ethnic flavours which is seeing a flurry of international concepts opening locations here.
Ruth’s Chris Steak House.
Ruth’s Chris Steak House Re-Opens 1st Canadian Location After Renovation: The downtown Toronto location for Ruth’s Chris Steak House opened earlier this month after an extensive renovation. The restaurant first opened in June of 1995 on the lower level of the Hilton Hotel at Richmond Street and University Avenue.
The 6,727 square foot restaurant’s renovation was designed by Toronto-based DesignAgency. Matthew Davis, Founding Partner at DesignAgency, said, “In terms of their existing dining rooms, we wanted to re-look at modern dining rooms and how they’re set up and how they’re architecturally designed to expand the usable space. We used classic cues and elements for which Ruth’s Chris is known, like their wine displays, service, table set-up and décor. What we did want to add and enhance was the seating and privacy options. Now, there’s a great private dining area.”
As lighting in the restaurant is dim, visitors will have to look closely to see that much of the wood paneling on walls and cabinets is now dark green in colour — the look is intended to reflect “an urban steakhouse feel” and replaces cherry-like wood tones formerly in the restaurant space. White barrel-ceilings make the space feel roomy despite being in the basement of a hotel.
New private function rooms for events and special occasions are fully-stocked with A/V equipment including built-in TV and internet access. The bar area also saw an upgrade to make if feel more casual — it’s a contrast to the more formal dining room nearby.
Ruth’s Chris GTA co-franchisee Lana Duke attended the re-opening with her son and co-franchisee David Duke. The duo own other GTA locations including a Markham restaurant that opened last year, as well one near the airport and in Niagara Falls. Franchised Ruth’s Chris restaurants are also located in Edmonton and Calgary. The chain was founded by Ruth Fertel 55 years ago in New Orleans and boasts more than 150 locations globally. Ms. Duke may be known for her radio ads where she says “if it doesn’t sizzle, send it back”.
An off-schedule podcast interviewing the Owner & CEO of Calgary-based Swimco, Lori Bacon.
Ms. Bacon discusses the challenges and opportunities of being a multi-store retailer in Canada, including how a customer-centric approach makes consumers comfortable being “half-naked”.
The Weekly podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players.
Canada Computers & Electronics has launched its expansion plans in Atlantic Canada with the opening of its first store in the market area in Halifax, Nova Scotia.
And the company has its eye on future expansion in the area which it feels has been anxiously waiting for a retailer like itself in the computer and electronics field.
“Haingjin Moon (Marketing Manager) and I had the opportunity to get interviewed by a local newspaper there a few months ago when we first announced on our website that we were coming to the Halifax market and overwhelmingly the customer feedback was that they were waiting for a national brand for computer components to come to the market because unfortunately they didn’t have anybody as big as us out there,” said Arun Sharma, Director of Retail Operations.
“They had some mom and pop retailers but nothing like we can offer in terms of diverse selection and value. The other evidence is we had an overwhelming response from folks wanting to work at our Halifax store. It had the most folks send in applications for any other store that we’ve opened in the past few years. They’re excited for what we’re able to do.
“On the first day when we soft opened, our first customer sale was over $3,000 without any advertising or any sort of fanfare. So the excitement is definitely there.”
The store, located at Unit 36 – 201 Chain Lake Dr., is holding its grand opening on Friday – Black Friday – with door crashing sales at 8 a.m. in a festive environment that will include prizes, snacks and refreshments as well as a lucky draw.
Canada Computers was founded in 1991 as a retailer of personal computers, IT, and components, as well as consumer electronics.
The first Canada Computers location was in Kingston, Ontario.
The retailer does custom built PCs and has its own pre-built house brand computer system and in-house brand iCAN (brand features: office furniture, cables, keyboards, mouse pads, household appliances, etc.)
Today, the company has 37 locations – five in British Columbia, one in Nova Scotia, five in Quebec, and 26 in Ontario.
Next year, stores in Cambridge and Oakville, Ontario, are confirmed to opening.
“The population (in Halifax) is used to obviously Best Buy and Staples. However, at Canada Computers we have services such as building your custom PC. Whatever customer that comes in and has a need to build a unique PC, we’re able to execute and build it for them,” said Moon. “As you know nowadays esports are very, very popular. So the university students are very excited that we are in that space.”
The Halifax store is between 11,000 to 12,000 square feet.
Sharma said the company is excited about the potential of the market in Atlantic Canada.
“With the early success of the Halifax, we have thought very, very high level what it would be to continue to expand not only in the province of Nova Scotia but definitely taking a look at New Brunswick, and Newfoundland and PEI. All of the Atlantic would be part of that future long-term growth plan, especially given the early success of Halifax,” he said.
This week Craig & Lee talk about the Williams Sonoma exiting Quebec and Aéropostale’s re-entrance into Canada.
The Weekly podcast by Retail Insider Canada is available on Apple Podcasts, Stitcher, TuneIn, Google Play, or through our dedicated RSS feed for Overcast and other podcast players.
Upcoming ‘Special Edition” interview with the President of Swimco, Lori Bacon: Watch for this weekend’s podcast release of Craig’s one-on-one interview with Swimco’s president, Lori Bacon.
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The retailer is dedicated to offering the best technology, advice, and service that enhances peoples’ lives.
And it has been doing that since it was first founded in 1991 as a retailer of personal computers, IT, and components, as well as consumer electronics.
Over its 28-year history, it continues to provide customers with the best products at the best value that the computer retail world can offer.
“We want to be the destination for Canadians that really want to experience the best that we have to offer with obviously a focus on the gaming clientele that’s growing – that’s a growth category for us as well as computer peripherals, hardware and attachments and accessories. And by extension the electronics includes other categories that we are definitely showcasing in some of our larger format stores such as televisions to the smart phone area,” said Arun Sharma, the retailer’s Director of Retail Operations.
Nick Lemieux, Director of Category Management, said the company is most well-known for being in the IT space specifically computer components – everything for a consumer to build their own PC. Notebooks, Desktops, Monitors, Printers, and all the peripherals that support the category.
“Consumer electronics I would say we are a little less known for, but we do carry a full gamut of all the popular categories – televisions, and audio, smart home just to name a few,” said Lemieux.
The first Canada Computers location established itself in the heart of Kingston, Ontario, with an initial vision of providing high-quality products for university students, at a student-friendly price.
The retailer does custom built PCs and has its own pre-built house brand computer system and in-house brand iCAN (brand features: office furniture, cables, keyboards, mouse pads, household appliances, etc.)
“A customer can come into Canada Computers and custom order their perfect desktop experience whether it be one for gaming or one for their offices. We can build that system from scratch and we have cases and parts that range in the hundreds to the thousands,” said Sharma.
“And we’re very proud to be able to customize that for our customers.”
Today, the company has 37 locations – five in British Columbia, one in Nova Scotia, five in Quebec, and 26 in Ontario.
Upcoming stores will be in Cambridge and Oakville, Ontario next year.
“We do have an aggressive road map ahead for the next year as well to expand our store network,” said Sharma, adding the company should be up to more than 40 stores next year as it is also looking at different locations in Quebec and possible expansion into Atlantic Canada. “Also, we want to expand our service providing under tech care to reach both the home as well as small businesses.
INSIDE CANADA COMPUTERS & ELECTRONICS’ FIRST STORE IN NOVA SCOTIA, LOCATED IN HALIFAX. PHOTO: CANADA COMPUTERS & ELECTRONICS
“One of the most important initiatives that we were able to launch this year was putting our strategic focus combined with the customer voice under our campaign called ‘Your Voice. We deliver’ where some of the strategic decisions that we’ve made have been based on what the customers have asked us to do.”
Dean Grey, Director of Corporate Sales, said the retailer’s business to business operation is operating in a call centre environment and that has been experiencing exponential growth this year.
“We’re probably going to triple in size in the next year,” he said.
Canada’s Computers & Electronics is a trailblazing force with more than 800 employees and Sharma said one of the key differentiators for the retailer compared to competitors is its knowledgeable staff.
“We have the most knowledgeable workforce within the Canadian space. The customers recognize our employee knowledge to be a top in class,” he said.
“The second thing is the experience we create for the customers in the store to be able to try some very new cutting-edge technology that they won’t be able to try at any of our competition.”
That knowledgeable staff will be in full force on Black Friday with stores opening early to meet the huge consumer throng looking for the best deals when it comes to computers and electronics.
“We’ll have generally best prices of the year on pretty much most of the items that we’ll be featuring. We’re focusing on the best brands – the items that Canadians want and then offering them really great deals at the same time,” said Lemieux.
The Black Friday event, which began in the United States, has had a huge spillover into Canada with all key retailers in the computer and electronics space participating aggressively during this time.
“Customers have come to expect really great deals and that this is the time to buy,” he said.
Retail Insider works with partners to create content, including announcements. For more information, contact Craig Patterson at: craig@retail-insider.com
What are the most important common denominators retailers need to consider pertaining to Gen Z shoppers, China’s breakneck ecommerce growth, and the world’s biggest tech companies?
They are data-driven and digitally enabled.
These two qualities are critical for the survival of retailers in today’s landscape. Ecommerce giants like Alibaba and JD.com dominate, and China’s powerhouse economy, combined with Gen Z’s shopping habits, are shaping the future of the retail industry, among many other consumer trends.
At the recent Retail West Conference in Vancouver, the question underpinning most discussions was: how can your retail business survive in an increasingly digital ecosystem? Taking a hint from the digitally enabled and data-driven success of Amazon and Alibaba (with a $943 billion and $435 billion market caps respectively), it’s clear that retailers need to leverage data and incorporate digital strategies into their marketing efforts not only to survive but thrive.
Together with retail executives and professionals, many of whom manage operations within the Canadian market, the Eagle Eye team left the conference brimming with new information and insights. Here are our three main takeaways from the event:
Create Digital Connections with Customers: Attending retailers interested in the Chinese market were reminded that the country is now digital-first. Of China’s $17 trillion domestic spend, 22% of all retail sales were digital purchases and of that, 70% were made through mobile payments. Whether you plan to sell in China or not, the lesson is clear—digital-first markets are growing exponentially, as the country transitions from traditional (i.e. cash) to modern retail formats and transactions. The future belongs to retailers that can interact with consumers digitally, both online and in-store.
The vast majority (90%) of consumers of all age groups still purchase and/or collect their shopping in-store, but are likely to visit a retail website before buying, according to Eagle Eye’s new Connected Customer white paper. You need digital connections to engage these “channel-switching” customers – Gen Z or otherwise – throughout their shopping journeys. Domino’s Pizza, for instance, offers 15 different ways to order a pizza, from using emojis on Twitter to chatbots, voice assistants, and smart TVs. The right digital marketing solution should enable you to know and engage with your customers, irrespective of their specific path to purchase. Wherever they are (on your website, social media, in a physical store) at any time they choose to engage, you should be digitally ready and equipped to provide information, incentivize one more sale or visit and ease friction points.
Connect Data Points to Gain Insights into Customer Behaviour: “Data as the new oil” was one of the most memorable insights attendees took away from the conference. The success stories of big tech companies such as Amazon, Facebook, Apple, and Visa reminded retailers of the importance of capitalizing on data to penetrate markets worldwide.
But it’s not enough to aggregate customer data generated via online-only connections alone. Businesses of all types, especially retailers, should have the ability to connect the data from all touch points for a single and more complete view of every customer, and this includes inside their physical stores. Enabling a single, online-to-offline view of customers is the best way – and really the only way – to understand their motivations and respond to their preferences. With full visibility and understanding of what the customer wants, delivering tailored offers and personalized interactions becomes easier, more effective, and drives greater value to the business and consumer.
Differentiate Your Brand Through Personalization: For all the maligning they receive, the younger generation is our future. So naturally, the impact of Gen Z’s behaviours and preferences (consumers aged 22 and under) on shopping trends was a prevalent theme. Gen Zers, who grew up on Snapchat, Spotify, and now TikTok, love personalization. They don’t want retailers to treat them like everyone else. They have changed consumer expectations forever by making personalization the fabric of their experience.
Going back to customer data, as cliché as it sounds, it lies at the very core of personalization. Retailers can’t be effective marketers without access to it, and without truly understanding what data to use and when to effectively engage customers to increase sales and visits. Digital marketing solutions are constantly evolving, using machine learning with robust analytics and performance marketing techniques to help retailers make the best possible use of their customer data, not only to tailor offers based on customer preferences, but to anticipate customers’ future needs. That’s what will keep retailers in the relevant category, instead of being relegated to redundant; always-on knowledge of what customers are likely to want later today, next week, and next year.
The big tech companies, China’s ecommerce behemoths, and Gen Z expectations have already pushed the global retail industry toward an increasingly digitally enhanced and competitive environment. These moves, which may feel threatening to some retailers, have actually opened up a whole slew of opportunities for those most agile and digitally enabled retailers to increase customer engagement and, ultimately, drive more traffic and sales.
Sean Keith
Sean Keith is the Director of New Business Development at Eagle Eye, a leading SaaS technology company that enables businesses to create real-time connections with their customers through digital and mobile promotion solutions. Recognized by the World Economic Forum as a Global Shaper, Sean helps brands in the retail, food & beverage and hospitality industries implement digital transformation initiatives to better understand customer behaviours and drive revenue growth among Canadian businesses.
Alberta’s largest massage therapy school, MaKami College, is taking over 137,000 square feet in Calgary’s Marlborough Mall in space left vacant when department store Sears shut down its locations across Canada a few years ago.
The college plans to open its doors in May 2020.
Darren Anderson, regional director in Calgary for Cushman & Wakefield Asset Services ULC which operates Marlborough Mall, said the new and unique use for the empty Sears space is an exciting initiative.
“Malls as a whole are evolving and have continued to evolve over the years. It’s not unusual and it’s certainly becoming much more common now where you’ll find malls that are not just strictly retail oriented but include other uses and become more of a sort of mixed-use properties,” said Anderson.
IMAGE: FLOOR PLAN OF MARLBOROUGH MALL
“They can draw people not to just come and shop but also to draw people for other reasons which obviously has a great benefit and spinoff benefit for the retailers that would be the primary use of the property. So from our perspective we’re quite excited to have a college coming in as it brings a very steady and large number of people to the property on a daily basis and obviously those students and staff will be able to take advantage of the various retail offerings and service businesses that we have at the property.
“Retail businesses can come and go. And to have an educational use at a property they tend to be a lot more stable. You don’t hear about colleges going bankrupt very often. So from that perspective trying to draw traffic to a property like this it’s actually a really good fit and especially for an older property like ours.”
The mall, which is about 563,000 square feet in northeast Calgary, is owned by the Healthcare of Ontario Pension Plan. A professional tower is also attached to the mall at another 51,000 square feet. The mall was built in 1974 and has about 160 stores and services.
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The college will occupy the space in the mall’s north wing, offering the highest level of training in massage therapy, creating a hub for health and wellness in Calgary’s northeast community.
Founder and CEO of MaKami College, Marija Pavkovic-Tovissi, who was named one of Avenue Magazine’s Top 40 Under 40 in 2016 for her dedication and success in helping people become employable Canadians, started MaKami after witnessing her own parents struggle to find work in Canada. MaKami College currently educates approximately 1,200-plus students a year – many of whom are immigrants or working mothers – to help them achieve a diploma that is accepted in Canada and provides immediate employment opportunities.
The new campus at Marlborough Mall will be completed in three phases by September 2020, including an onsite daycare for students with children and free ESL support through the ESL Conversation Club available to both students and community members. The college also offers on-location student support services such as housing, finance and social programs.
PHOTOS: CUSHMAN & WAKEFIELD
PHOTOS: CUSHMAN & WAKEFIELD
“It’s very exciting for us. What makes us come to work every day is the drive to help people and our students,” said MaKami Marketing Director, Vladimir Pavkovic. “Now we can finally meet the numbers and demand that we have in Calgary but also expand into new programs to bring quality education that creates generational change.”
MaKami currently offers a two-year, 3,000-hour Advanced Clinical Massage Therapy Diploma Program and Health Care Aide certifications, but the new campus will eventually include Master Instructor and Culinary Assistant courses. The college also hopes to launch seven new programs pending government approval.
Marlborough Mall will be anchored by Walmart and MaKami College which will drive traffic to the shopping centre.
Anderson said the trend today is for different uses in empty big box spaces.
PHOTO: MAKAMI COLLEGE
“It’s a little bit by necessity in the sense that here in Calgary as an example there’s an awful lot of what we would call traditional department store anchors that have gone bankrupt essentially over the last 10 years in Canada,” he said. “Originally most malls were built through the 60s, the 70s, the 80s and they were built with the traditional scenario where you would have generally two or three large department stores – depending on the size of the mall – at either end of the mall and then you fill up the balance of the space with smaller retailers and that was the general concept for shopping centres.
“The reality is that a number of the department store chains have gone under over the last 10 years. You’ve lost the K-Marts and the Zellers and the Targets. Now you’ve lost all of the Sears stores. So there’s an awful lot of department store anchor space that shopping centres throughout Canada have to fill. And there’s not a steady lineup of new department stores entering the market to fill that space.
“So landlords and owners of shopping centres have by necessity been required to get a little bit more creative in how to fill that space and still drive traffic to your property. It’s becoming much more common for shopping centres to include educational institutions often even government institutions of various types and entertainment.”
Montreal-based retailer Bentley Leathers Inc. announced Wednesday evening that it was restructuring amid financial challenges associated with operating more than 250 stores. This follows last month’s announcement that the company would revive its retail operations that included a new prototype store format that was launched in suburban Montreal.
Several sources began contacting Retail Insider last week providing information on the possible filing — we awaited a formal announcement prior to reporting anything in this publication.
The company’s President and CEO, Walter Lamothe, said in an interview on Wednesday evening that he expects Bentley Leathers to pull through and see success after a right-sizing of the chain’s base of stores, while at the same time rolling-out of its new customer-centric retail design.
Bentley Leathers filed a notice of intention to propose the restructuring of its operations on Wednesday November 27. While not mentioned in a press release, a source said that parent company Novacap had finalized a deal with Re:Capital which describes itself as “a multidimensional financial services company providing a range of restructuring services to businesses and insolvency practitioners, as well as investing in stressed situations, in Canada and Australia.”
In a press release, Bentley Leathers attributed its financial troubles on changing consumer behaviour as well as the “impact of the digital disruptions”. Furthermore, operating more than 250 stores “significantly impacted the profitability of the company.”
At the same time, the Bentley Leathers press release offers hope for the future of the chain, as reiterated by Mr. Lamothe. “Given Bentley still has a significant opportunity to grow and to allow the continuation of its operations, the Company filed today a notice of intention to make a proposal for restructuring.” The restructuring, and presumably the relationship with Re:Capital, is intended to keep Bentley Leathers operational into the future. “This process has been put in place to secure the long-term viability of the Company for the best interest of its employees, customers and suppliers.”
Store closures haven’t been announced as of yet, though it appears that unprofitable locations will be shuttered as part of the announced restructuring. “We are currently in the process of analyzing each store’s performance and its contribution to the Company’s profitability,” said the press release.
“While it is too early to identify the exact number of store closures or head office impact, Bentley will be closing less profitable stores while planning to keep the majority of its stores. These are some of the measures that will be put in place to ensure the company’s long-term viability.”
Last month, Retail Insider reported that Bentley Leathers was launching a “store of the future” concept that would be rolled-out nationally in 2020. Four of those are now open. Journalist Mario Toneguzzi reported that Bentley Leathers had plans to “transform the brand into a solution and experience company with the goal of helping Canadians create lasting memories and supporting the communities they have catered to for so many years.” In an interview with Retail Insider, Walter Lamothe said that the retailer would continue to be the leading chain in the country and that by the spring of 2020, RFID tags would be added to its bags to protect personal data, for example.
Bentley Leather’s new store concept launched last month at CF Fairview Ponte-Claire in suburban Montreal. Its design is intended to simplify buying bags and luggage with two new “moment zones” in an effort to create a compelling retail experience. Three other concept stores have since opened.
Restructuring will allow Bentley Leathers to close under-performing stores as it restructures its operations. Many retailers in Canada signed store leases several years ago at a time when shopping centres were able to command significant rents.
The Canadian retail industry has changed and sources say that several more retailers are also expected to announce restructuring efforts in Canada in the coming weeks.
Landlords in Canada are grappling with retailers shuttering stores at a challenging time. This week, US-based fashion retailer Forever 21 will close its Canadian stores, which will result in nearly a million square feet of space being vacated across the country. Various other retail chains have closed stores across Canada in 2019, including Town Shoes, Payless Shoes, Gymboree, Crabtree & Evelyn, Green Earth and Hudson’s Bay’s Home Outfitters chain of stores, among others. That follows the colossal failure and exit of Target from Canada in 2015, as well as the more recent shuttering of all Sears Canada stores in early 2018.
Job losses will be another result as some Bentley Leather stores close, and a timeline has yet to be revealed. We’ll follow up on this story as it progresses.
