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Sharing Is Caring: How 2 Retailers Teamed Up to Open A Shared Storefront

PHOTO: SO PRETTY/PURA BOTANICALS

An Edmonton-based jewelry brand has found a unique way to build its business – by sharing storefront space with another retailer with a similar customer base.

And Cara Cotter, owner/creative director of So Pretty, believes the concept, with Pura Botanicals, can be replicated elsewhere in the future – perhaps in Calgary.

Cotter designs every single piece of jewelry the company sells as well as overseeing all the creative elements of the business including the website, branding and store operations.

So Pretty began in 2005 on a very small scale. She was hand-making everything herself and was just online and through wholesale. She built the business very slowly. Then three years ago, she opened her design office on 124th Street in Edmonton – next to the downtown.

“That was just purely to maintain our wholesale business and have some more space and to be able to hire people for our team. As an experiment one holiday season, we did a pop-up with some other local entrepreneurs in Edmonton. Poppy Barley. Pura Botanicals. We did it in Manulife Place across from Holt Renfrew. We did that for a month and a half and it was such a pleasant surprise. I’d never really done retail before. We just had our wholesale business. And it did really well,” said Cotter.

“So my thought on the business really changed at that point. I thought testing out different areas of the city to see where we would be successful would be a good start. We did pop-ups with Poppy Barley again and continued with Pura Botanicals. We seemed to have a lot of crossover in our demographic which is like the 25 to 55 (year old) professional woman. We did Southgate. We did West Edmonton Mall. We did Manulife Place. Then last spring space became available right on 124th (Street) below our office.”

Although it is a smaller space than Cotter would have liked, it does serve as a perfect incubator for the company’s future retail.

Having a pop-up together with Pura Botanicals, a natural skin care and green beauty products retailer, they realized there was a crossover market for So Pretty. Branding is very similar and the two retailers get along really well.

“The direction of retail is really influenced by experiences and community and giving customers something different. So we thought why not do a collaboration, not because we need to financially, but to do something different,” said Cotter. “And we saw through our pop-ups how that experience was translating. So we had proof it would work. Our first year has been really, really good. We opened July last year.”

When a customer walks through the door, it looks like one store but with signage for each retailer.

“We didn’t want it to look like a market or just two separate brands thrown together. We wanted it to be when you walk in you see essentially one store but you discover two brands within that store. Whether they’re coming to see Pura or So Pretty they have an amazing experience but also they’re discovering maybe something different,” said Cotter. “And being part of the community. We’re both female-founded brands. So having that story really helps to connect with our customers. We’re both from Edmonton. That also helps.

LANE EDWARDS OF PURA BOTANICALS PHOTO: SO PRETTY/PURA BOTANICALS

“The esthetic is very similar. A lot of whites, and blush pink. Feminine but still very modern . . . I always wanted to make a product that was sort of the attainable luxury category. I’ve never made jewelry out of any base metals or brass. The largest part of our category is everything has a sterling silver base with 18-karat gold really heavily plated on top or just solid sterling pieces. We range from $50 to $450 in that category and our average ticket bill is about $185. We want something that’s price sensitive but also really good quality for what you’re paying. Every design is unique and everything’s handcrafted and we make very limited runs of pieces. We’re not a mass manufacturer. We come out with four collections a year. So there’s always something different for customers.”

So Pretty also sells online with about 30 per cent of its business in that area. The online business began before the storefront was opened.

Cotter said that in an ideal world she would like to do a standalone store in a mall with its own branding.

“But Pura and I have also discussed opening another duplicate store of what we have here in Edmonton in Calgary. That would be a year from now and it really depends on finding the right location with a lot of foot traffic and the right size. So we’re investigating that at this point. We don’t have any solid plans,” she added.

Independent Retailers in Canada Struggle for Survival

The challenge for smaller independent retailers and businesses these days is clear.

Rising costs including rent and property taxes, wages, and operations, are making it extremely difficult for many of them to simply survive. Combine that with the big players of the world who are making it tough to compete on price point and of course the proliferation of ecommerce, and you have a scenario where being an independent retailer in today’s world is most likely a tough go.

So how do you survive in that environment?

July was Independent Retailer Month where consumers were encouraged to shop locally and it also cast a light on how independent retailers can not only survive in these tough times but also thrive.

The key is for them to provide unique experiences for customers, great customer service and develop personal relationships with those people who are coming into their places of business and spending money.

Robert Phelps is President of Silver Chef Canada, a leading dedicated hospitality financier that has supported 30,000 hospitality businesses globally, including more than 3,000 in Canada, to either create their business or expand their business.

“Our ultimate purpose is to help people achieve their business dreams,” said Phelps.

“The hospitality sector as a whole is an art and a passion. It’s a dynamic and vibrant industry. The operators with their business are able to display that passion which creates that element of differentiation and that’s why a lot of operators actually set out to start a business in the industry. That differentiation point is what consumers, as we continue to see, are looking for from a point of difference in the experience and whether that creates an extended stay, whether that’s an opportunity to connect for a longer period, or that drive for additional choice. Consumers are looking for a point of difference.”

Silver Chef has supported the hospitality sector for more than three decades – 32 years in Australia, 15 years in New Zealand and five years in Canada.

Creating unique customer experiences and developing closer customer relationships becomes a key differentiator for independent businesses as they strive to compete in an increasingly competitive world. It’s also a key in getting return business – repeat customers.

“It’s essential,” said Phelps.

Anna McMillan, founder and general manager of The Garden in the Strathcona neighbourhood in Vancouver, has followed that formula in setting up her new venture.

“We opened 10 months ago. We’re a new business. We’re a cafe as well as a retail shop and an event space. The retail section we focus on sort of home and personal products and our key focus is sourcing products from companies that are ethically produced. So we have a big emphasis on local products as well as environmentally and socially responsible companies and products,” she said.

THE GARDEN STRATHCONA IN VANCOUVER, BC PHOTO: BRIAN M VIA GOOGLE MAPS

The Garden has received some financing from Silver Chef for its operations.

“From my perspective and one of the reasons I started The Garden and why it’s sort of a unique offering in the services and products that we provide is to really be a differentiator from those traditional spaces,” said McMillan. “Personally, I’m really passionate about bringing people together in real life to focus on core values and things that people genuinely care about. So that’s why we focus on the sustainable and ethical products and to have some conversation around that.

“Originally my idea was to open a retail store but I knew that it needed to be something a little bit different because traditional brick and mortar retail is struggling as we all know. So including food with that and a really beautiful space that people would want to come together and spend time in was something that is more unique especially in Canada and in Vancouver. And our approach to food is really similar to that of our products. A lot of chain type of restaurants are just not in that space. It’s not a priority in that sense. They’re more of a traditional and typical offering. We’re trying to send out in the type of products that we carry, and the way we present those products to our consumers, and the environment and the experience we’re creating around that, a new experience.”

Innovative Education Platform ‘Progress Retail’ Launches in Canada

PHOTO: PROGRESS RETAIL

Chicago-based , an innovative education platform for the retail sector, has launched an initiative to expand its presence in Canada.

Ray Riley, the company’s Co-CEO, said Progress Retail’s learning experience platform creates a meaningful ‘one-stop shop’ for retail sales training, sales management, product knowledge, and brand communications.

With a strong conviction that brick-and-mortar retail is alive and well, Progress Retail pioneered a human-centered, live in-person retail sales and leadership education program that has been operational for nearly thirty years. With the launch of Progress Retail’s learning technology platform, the company is the exclusive learning and development partner for omnichannel brands such as Mecca, Volcom, Chatters, and Seed Heritage.

RAY RILEY

The company was founded as People in Progress in 1989 in Australia by Terry Hawkins, Co-CEO. With a strong personal growth and personal development component deeply rooted in empathy, Progress Retail’s professional skills and processes were able to be implemented with considerably more success than the majority of mainstream retail ‘training’. This unique approach led to the company working with numerous high-profile retail brands such as Ralph Lauren and Nordstrom. Since 1989, the company has more than 100,000 alumni globally who have attended in-person courses from its C.A.R.E. Customers Are Really Everything®, and S.M.A.R.T. Superior Management of a Resourceful Team® retail education systems, among several others.

“We are very unique in the fact that retail education has become very stagnant. Many retailers see learning and education as an add-on rather than the core of their business. As such, learning and education isn’t given a high priority. So rather than developing people in a highly effective manner, short cuts are taken. For example, many “buy” experience, or copy concepts, training modules etc. I say, buy cheap, buy twice, ” said Hawkins

TERRY HAWKINS

“We believe in long term, sustainable development. And our secret sauce is that we have been able to unlock the ability to teach people how to truly connect with the customer, and others, on a very deep, personal level. This has a game changing effect on results,” Hawkins went on to say.

“As a retailer partnering with Progress Retail, you’re able to distribute and manage the most relevant learning and development that exists for the industry, both offline and online,” said Riley. “Learning is our core, and our platform is rapidly developing in areas of performance analytics and retail sales management. We’re carefully building an ecosystem of tools and learning that have a dramatically positive impact on sales professionals and store managers of the future,” he went on to say.

Progress Retail can point to specific, evidence-based results that demonstrate the impact of its unique approach. In a recently published study, Progress Retail’s retail partners from fiscal year 2018 (July 1st 2017 to June 30th, 2018) decreased retail employee turnover 61% in fiscal year 2019 (July 1, 2018 to June 30, 2019).

Progress Retail’s roots come from Hawkins’ background in the retail industry, where she commenced her retail career on the shop floor.

“I remember feeling so embarrassed to tell people that I actually worked in retail. When I moved into a training role, I just loved witnessing what knowledge and inspiration could do for someone regardless of their role, whether they were scrubbing cupboards in a cafeteria, or building a rocket ship, it changed how people approached their work,” she said.

“That’s how it all started. I could see the influence of really impactful learning.”

Today, the company’s mission is to “enable every member of a retail organization to connect deeply with themselves, their company, their career, and their customers.”

Jo Horgan, founder of Australia-based Mecca, (a cosmetics and beauty retailer with 100 stores boasting 10 percent of Australia’s $4.2 billion beauty market) said: “We regard Progress Retail as a partner and not a supplier – they are integral to our success. We have seen our dollar spend per customer increase significantly while at the same time dramatically improving our customer service standards and staff retention. They stand alone in retail transformation.” Hawkins and the business first partnered with Mecca Brands in 1997 when the beauty retailer had fewer than 10 stores.

Progress Retail is operating today in Australia, Canada and the United States. The company’s first client and launch partner in Canada is hair salon chain Chatters, which began working with Progress Retail in Ontario in January of 2019, followed by Alberta in June.

Barb Sim, Vice President of Operations and Distribution at Chatters, said, “The reason we’re investing a significant amount in education is because we believe that this will set us apart. C.A.R.E.™ was really key for us in providing our leadership team that structured approach on coaching our team members at the store level, and really making sure we understand the steps to deliver an exceptional experience.”

“In Canada there is no shortage of retail trainers, or consultants. They may dabble in retail training and also do keynote speaking. We don’t rely on a personality – we are performance-based with equal doses of scalable purpose and process that is assisting in transformative outcomes for our retail partners. We’re taking the heavy-lifting out of crafting a powerful, strategic learning journey and meaningful employee experience for retailers,” Riley said.

For more information on progress retail, contact hello@progressretail.com or visit

*Partner Content. To work with Retail Insider, contact: craig@retail-insider.com

BRIEF: Luxury Retailer Shutters Amid Death Threat, Diesel & Anthropologie Exit Yorkville

7Montreal Multi-Brand Luxury Men’s Retailer Closes Amid Death Threat

PHOTO: GIORGIO GRUPPO ROMA VIA FACEBOOK

The three-level Giorgio Gruppo Roma store at 1440 Peel Street in Montreal has shuttered as its owner, Tony Elian, flees for his life. That’s according to a French language report over the weekend in TVA Nouvelles, which says that it has sources who say that Montreal police have informed Mr. Elian to go into hiding because his life is in danger, with threats said to be linked to his many debts to creditors. 

The threats to Mr. Elian’s life follow other serious incidents. In the spring of 2017, his car was firebombed and in March of 2018, he was shot with a shotgun in his Peel Street store. The TVA Nouvelles report notes that last week, a moving truck was parked in front of the shuttered Giorgio Gruppo Roma store. 

Debts have plagued Mr. Elian’s business dealings since at least 2015. TVA Nouvelles reports that there’s a long list of subcontractors claiming to be unpaid for work done on a condominium building in nearby Westmount that was developed by Mr. Elian’s company Cesare Immobilier. Between 2009 and 2014, Mr. Elian was involved in a $1.1 million lawsuit with Frank Bertucci, who was accused of trying to bribe a Revenue Canada representative with $150,000 for a tax reduction.

Outstanding rents on the 1440 Peel Street property resulted in a $500,000 lawsuit between him and landlord 825 Bancroft Investment Limited. Mr. Elian’s personal residence is subject to notice of sale to pay off debts. He owes about $2.7 million in loans for his properties in Westmount and Bank of Montreal is suing him for nearly $2.2million. 

PHOTO: GIORGIO GRUPPO ROMA

Some are saying Mr. Elian had ties to criminal entities in the Montreal area. He was seen in photos with gangster Ducarme Joseph who was murdered in 2014, and he attended the funeral of Italian-Canadian crime boss Vito Rizzuto in late 2013 — Rizzuto is alleged to have been the leader of the Sicilian Mafia in Canada. 

According to TVA Nouvelles, some are claiming that Giorgio Gruppo Roma was claiming that it’s “made in Italy” fashions were actually produced in China. 

Giorgio Gruppo Roma was located across the street from men’s luxury retailer Harry Rosen and is a few doors south of prestigious multi-brand men’s retailer L’Uomo. All are located in downtown Montreal’s prestigious ‘Golden Square Mile’ area that also houses Holt Renfrew Ogilvy, the adjacent Four Seasons Hotel and Private Residences, and the Ritz Carlton Hotel

[French language TVA Nouvelles report]

6Saks Fifth Avenue Flagship Saint Laurent Boutique Sees Updates

Saks Fifth Avenue Flagship Saint Laurent Boutique PHOTO: AMACHRIS CORPORATION

The Saint Laurent accessory boutique at Saks Fifth Avenue at CF Toronto Eaton Centre was recently under tarp for a refresh that was completed late last week. The updated space was expanded to house even more of the brand’s luxurious accessories, with bags priced well into the thousands.

The boutique features Saint Laurent’s signature marble walls that contrast with metal fixtures. Bags and accessories are displayed in new display cases as well as along the walls of the boutique. Retail construction specialist Amachris Corporation partnered on the space build-out.

Other shop-in-stores on Saks CF Toronto Eaton Centre ground floor include Bottega Veneta, Celine, Chloé, Valentino and Givenchy, as well as leased concessions for Louis Vuitton, Dior and Prada. Saks’ women’s designer floor on level three also houses a Saint Laurent ready-to-wear boutique, along with several other big-name designers.

Saint Laurent opened its first standalone Canadian store, spanning 4,800 square feet, in Vancouver in the summer of 2016. A second standalone store measuring about 3,000 square feet opened at Toronto’s Yorkdale Shopping Centre in November of 2016. A 3,000 square foot ‘world of’ Saint Laurent opened at Holt Renfrew at 50 Bloor Street West in Toronto in March of 2018. Saint Laurent is also carried at several Holt Renfrew stores as well as at Nordstrom in Vancouver.

5Toronto Athlete Tech Summit to Include NBA Players

NBA players are expected to attend a tech summit looking to attract investments in Toronto’s booming tech scene.

Landing in Toronto August 1st and 2nd, the 2019 Athlete Technology Summit is labelled the only event of its kind in Canada. According to organizers, the Summit benefits startups, Venture Capitalists, influencers, and professional athletes. The event will be host to roughly 150 hand selected ‘high profile individuals’ who all have a vested interest in the opportunities that the Toronto Technology Eco-System has to offer.

“Toronto recently has been named the Technology Hub of Canada, fastest growing sector in North America, and is currently the fourth largest in North America. That is due to the fact that Toronto has over 5000+ Start Ups and over 245,00 Technology jobs,” reads the summit’s website.

Toronto is also known as a world innovation leader in Artificial Intelligence, and second in the Neuroscience and Neuroscience Technology space only behind the city of Boston. As well, companies such as Uber, Microsoft, Amazon, Google, and many other international brands are already in the city, or building offices in Toronto.

The first-ever Athlete Technology Summit will explore the trends and innovations in Canadian talent, technology, and sports. It will be held at Artscape Daniels Launchpad on the fourth floor of 130 Queens Quay East.

4Anthropologie and Diesel Shutter Yorkville Avenue Flagships

FORMER ANTHROPOLOGIES STORE IN YORKVILLE PHOTO: CRAIG PATTERSON

The Anthropologie store at 78 Yorkville Avenue in Toronto closed on July 19 as the street continues to transform into a luxury retail destination. A week prior, Diesel also closed its storefront at 92 Yorkville Avenue. Both buildings are owned by First Capital Realty

First Capital Realty has been repositioning Yorkville Avenue after acquiring several buildings along the street. Chanel opened at the landlord’s property at 100 Yorkville Avenue in November of 2017 and recently, it was joined by Brunello Cucinelli and Versace in the 102-108 Yorkville Avenue complex. A Stone Island flagship will open in the same complex this fall. 

Other luxury brands along the stretch include Christian Louboutin, Off-White, Kiton, Richard Mille and Audemars Piguet. First Capital Realty will redevelop its 101 Yorkville Avenue property to include luxury retail spaces in what is proposed to be a mixed-use development, with designs pending. A goop pop-up space opened at the base of the Hazelton Hotel and if things go well, its lease could be extended beyond September. Other developments to the area will add more retail as well as restaurants and other uses. 

FORMER DIESEL STORE IN YORKVILLE PHOTO: CRAIG PATTERSON

No new tenants have been announced for the Diesel or Anthropologie spaces on Yorkville Avenue, though Chanel confirms that it will annex about 1,000 square feet of the back of the second-floor of the former Diesel space to expand back-of-house operations. Veteran broker Jane Baldwin of Lennard negotiated the Diesel and Anthropologie leases and both stores opened in 2009, prior to Yorkville Avenue being repositioned as a luxury retail address. Both spaces are located at the base of luxury condominium towers, however, with units priced well into the millions of dollars in some instances. 

3Designer Brand Boutiques Exit Nordstrom CF Toronto Eaton Centre

REMAINING DESIGNER BOUTIQUE AT CF TORONTO EATON CENTRE’S NORDSTROM STORE INCLUDING STELLA MCCARTNEY, MONCLER AND BURBERRY. PHOTO: CRAIG PATTERSON

The third-floor ready-to-wear boutique for LVMH-owned Spanish luxury brand Loewe was recently decommissioned at Nordstrom’s CF Toronto Eaton Centre flagship in Toronto. The space currently houses fashions for Italian brand Max Mara, though it currently retains the hard-shop fixtures that characterize Loewe retail spaces. Two Loewe boutiques, including a women’s ready-to-wear on the third floor and separate accessory boutique on the ground floor, opened in the store in September of 2016 when Nordstrom unveiled its impressive flagship. The Loewe accessory boutique remains operational on the store’s ground floor. 

Several months ago, as well, the edgy ‘SPACE’ department exited Nordstrom’s CF Toronto Eaton Centre store, though it remains at Nordstrom’s Yorkdale Shopping Centre location. Both SPACE locations opened in the fall of 2016, featuring an expansive offering of trendy designers, some of which are so unique that staff had said some styles were unisex. 

LOEWE ‘HARD SHOP’ ON THE 3RD FLOOR OF NORDSTROM’S CF TORONTO EATON CENTRE FLAGSHIP, WHICH NO LONGER CARRIES LOEWE FASHIONS. THE SPACE TO THE LEFT WAS ONCE A LANVIN BOUTIQUE. PHOTO: CRAIG PATTERSON

Last year, the Lanvin boutique on the third floor of Nordstrom’s CF Toronto Eaton Centre store also shuttered. The former Lanvin space, located next to the former Loewe shop, now houses an area for personal stylists. On the third floor, designer boutique spaces remain for brands including Stella McCartney, Moncler and Burberry.  

Until about four years ago, distribution of Loewe in Canada was fairly limited until Nordstrom entered the Vancouver market with an offering of the popular Spanish brand. Since then, Holt Renfrew has been beefing up its offerings with stores carrying a growing assortment of Loewe bags and apparel. 

2Tech Startup ‘Intelocate’ Gets In the Groove with Sunrise Records

PHOTO: FYIMUSICNEWS.CA

Toronto-based tech startup Intelocate has signed on to help fellow Canadian-based company Sunrise Records, gaining the largest footprint in the music entertainment retail space. 

Intelocate is said to be the first operations platform that is specifically designed for the complexity of a multi-location business. It empowers head office departments, regional teams, location staff, and even external vendors to coordinate efforts to solve problems by combining the modern, chat-based style of communicating with sophisticated issue and task management.

“Retailers around the world are all turning to hyperlocal in-store experiences, and the music business is doing that really well by listening to local music preferences and organizing local events. To achieve that, retailers require tools that provide actionable insights into what happens across locations, it is so important to give location teams a voice,” explains Yulia Vasilyeva, Chief Executive Officer at Intelocate. 

“We are thrilled to work with Intelocate,” says Chris Dipardo, Vice President of Stores and Operations, at Sunrise. “We saw what they’ve been doing with customers in Europe and in particular, the time savings and operational improvements it provided for HMV Retail UK after we acquired the company. We knew that we would benefit immediately from Intelocate’s expertise to support our ecosystem.

“We’re supporting companies all around the world, we are proud to support a Canadian company with our technology,” says Vasilyeva. Intelocate removes operational obstacles for locations, regional teams, head office, and vendors. “Even more exciting is that the Sunrise Records partnership is giving us the largest market footprint in the music entertainment retail space.” said Vasilyeva.

1Shopping Platform ‘Picodi’ Expands Into Canada

GRAPHIC: PICODI VIA FACEBOOK

Smart-shopping platform Picodi.com, which offers discount coupons to online stores, launched its Canadian website in July. Along with recent expanding into the American and New Zealand markets, Picodi now operates in 44 countries. 

Initially called International Coupons, the company was founded in 2010 in Poland. The company operated under different brand names until 2016 when it merged into Picodi.com. 

The website offers its Canadian users unlimited free access to promo codes and coupons to over 200 local and international online shops, giving a chance to save on clothes, shoes, electronics, home appliance, travel tickets or food delivery. Picodi.com is free to use and does not require registration. 

Le Chateau to Enter US Market As it Grapples with Challenges at Home

PHOTO: YELLOWPAGES

By Retail Insider

Montreal-based fashion retailer Le Chateau is reportedly looking at expanding into the US market, according to a French language report in La Presse by journalist Marie-Eve Fournier. This comes after Le Chateau closed about half of its stores in less than 10 years, while at the same time investing millions of dollars into e-commerce in an effort to become profitable. 

Jane Silverstone Segal, Chairman and CEO, said in a shareholder meeting last week that Le Chateau is looking to sell its fashions in the US using a wholesale model. That could include selling to smaller retailers and even department stores — Johnny Del Ciancio, VP of Finance at Le Chateau, reportedly said that expanding into department stores was the “logical” choice. 

The expansion is set for this fall as Le Chateau is in talks with potential partners. Le Chateau already sells its wares on Amazon’s US and Canadian websites, though it’s only a small percentage of sales for the brand. 

PHOTO: INTERCITY SHOPPING CENTRE

Le Chateau has not been profitable since 2010 and is reportedly working towards a goal of restructuring. That’s been going on for seven years and with that, the company went from operating 243 stores to just 129 stores, which means 45% of its network has shuttered over the past decade. In its most recent year, Le Chateau saw a loss of $23.8 million on sales of $190.9 million. 

Four more Le Chateau stores are set to be closed, according to La Presse and it’s expected that the remaining 129 units will lead the company to profitability. Le Chateau has particularly downsized its presence in Montreal’s downtown core where at one time, it had nine stores on Ste-Catherine Street between Atwater and Berri. Now Le Chateau has just one unit at the Montreal Eaton Centre

Le Chateau was founded in 1959 and was known to be the first retailer to introduce various trendy brands into the Canadian market. The retailer is marking 60 years in operation and the company says that it plans to be around for a long time to come, according to the report in La Presse.

Luxury Brands ‘Philipp Plein’ and ‘Billionaire’ to Enter Canadian Market Through Local Partner

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Concord, Ontario-based multi-brand representative OriginalLuxury Inc. will launch luxury brands Philipp Plein and Billionaire to the Canadian market on July 30.

The expansion will begin with an online offering. OriginalLuxury will also allow its VIP clients to visit the showroom by appointment to showcase product to customers who are interested in interacting with the product prior to making a purchase.

Innovative photo and video technology from StylePhotos Canada will be used for the brands’ Canadian e-commerce sites. 

Entrepreneur Husan Aripov, is spearheading a major brand development initiative in Canada on behalf of OriginalLuxury. Swiss luxury brand Philipp Plein, known for its pricey and flashy men’s and women’s sportswear fashions, will launch on the OriginalLuxury website next week, with new products arriving weekly. Philipp Plein founded his eponymous brand in Lugano, Switzerland in 1998 by making bags and accessories from leftover exotic leathers.

The fashion-side of the Philipp Plein business launched in 2004 and has grown substantially since. The brand is particularly known for its bejewelled leather and crystal-studded knits, and has sold very well in Asia, Russia and Eastern Europe, and is expanding further into North America. Philipp Plein designs and manufactures fashions, accessories and footwear for both men and women, and has stores in major markets globally. 

This fall the luxurious, Italian-made men’s fashion line, Billionaire, will launch in Canada through OriginalLuxury.ca’s e-commerce site. Billionaire features clothing, bags, accessories and shoes as well as a children’s line. “Billionaire presents an extravagant, rich wardrobe for mature men who are unafraid of who they are and who they want to be,” according to the company’s website.

The designer, named “Mr. Plutus”, is described as being “Part man, part machine” as he “represents a new breed of creative force in the fashion industry.” Billionaire’s website goes on to say, “A mysterious robotic entity, Plutus miraculously appeared earlier this year behind the wheel of a white Rolls Royce, The Rolling Stones’s anthem Sympathy for the Devil blaring as he raced into the heart of Milan. Rumours and theories about the origins of this electronic enigma immediately started swirling, with some experts believing him to be the ancient Greek god of wealth returned to earth on a secret mission.” 

Securing the Philipp Plein and Billionaire brands is a major coup as OriginalLuxury becomes a significant player in the international brand market with Canadian distribution. Concord-based OriginalLuxury Inc. continues to expand the roster of brands it represents, with many being high-end. Additional brands carried by OriginalLuxury include: Italian luxury brand Artioli, French fashion house Christian Lacroix, Como Silks, Escorial, Faliero Sarti, Joshua Ellis, MA.AL.BI., Mantero, The Volon, and Serpui (a Brazil-based handbag brand).

For all of its online brand offerings, OriginalLuxury Inc. uses StylePhotos to photograph and take videos of its products. Mr. Aripov explained how StylePhotos is able to capture the “actual” look and texture of products when photographed using their proprietary technology; these services are available for anyone seeking top-quality photos and videos for e-commerce. With StylePhotos, the cost per photo or video is a fraction of the cost of traditional e-commerce product photography and videography, according to Mr. Aripov, making StylePhotos accessible to a wide range of retailers from independents to major players.  

StylePhotos is located at OriginalLuxury’s headquarters in Concord, just north of Toronto. Those seeking photography and/or videography services using StylePhotos’ technology can visit the Concord office to rent the equipment or send product to their headquarters to be photographed or captured on video in the most accurate way possible. StylePhotos Canada is owned by local partner OriginalLuxury Inc., and Retail Insider has profiled StylePhotos, which can be read here and here.

OriginalLuxury Inc. will continue to target unique global brands looking to enter the Canadian market through its online platform. We’ll continue to follow up on this story as we track international brands entering the Canadian market. 

For Retail Insider readers, OriginalLuxury Inc. is offering a 10% savings on StylePhotos for those interested in high-quality, affordable e-commerce photography and videography.

For more information on OriginalLuxury Inc., visit: OriginalLuxury.ca.

For more information on StylePhotos Canada, visit: StylePhotos.ca

Canadian Retail Sales Hit a Speedbump

After staging a respectable recovery in the early months of 2019, Canadian retail sales growth has now lost some steam, according to the latest unadjusted numbers from Statistics Canada. For the 3 months ending May 2019, total retail sales were up a modest 2.5% year-over-year. More importantly, the recent pattern of upward movement now seems to have been broken. This might be just a temporary setback … or not.

Both the 3 month trend (orange line in the chart above) and the underlying 12 month trend (green line) had been on the mend earlier in the year, but now they look like they have hit a speedbump and have fallen off the pace.

After 5 months of 2019, total retail sales are up just 2.3% versus a year ago. There’s still a way to go to even match the disappointing 2.9% annual gain recorded for 2018.

Food & Drug

Retail sales growth in Food & Drug is actually leading the other major retail sectors. Sales gained 3.2% year-over-year for the 3 months ending May 2019. This however was the lowest such gain in 8 months, reinforcing the theme of hitting a speedbump. Both the 3 month and 12 month trends appear to have flattened out.

On the other hand, after 5 months of the year, year-to-date Food & Drug retail sales are up 3.8%. This is fairly good news compared to last year’s miserly annual increase of 2.7%.

Supermarkets & other grocery stores are the main driver in Food & Drug. Their retail sales were up 3.7% year-over-year for the 3 months ending May 2019, and up 4.5% year-to-date so far in 2019. Health and personal care stores also did well, with a retail sales gain of 3.2% for the last 3 months, considerably ahead of the 2.0% posted for all of 2018.

Convenience stores however are the laggard of the sector. Their retail sales were actually down 0.9% for the 3 months ending May 2019.

Store Merchandise

The Store Merchandise sector is another case of a modest recovery earlier in the year which could now be cooling off. For the 3 months ending May 2019, retail sales were up just 1.9%, even less than the disappointing 2.8% annual increase last year.

The 3 month trend (orange line in the chart) and the underlying 12 month trend (green line) were starting to show signs of life earlier in the year, but both have now dipped. It’s difficult to say where these trends will go next.

A few store types had had particularly poor results which drove down sales gains in the sector for the 3 months ending May 2019. Retail sales at electronics & appliance stores were down 7.8% year-over-year, shoe stores declined 3.7%, sporting goods, hobby, book & music stores were off 2.7%, and building material and garden equipment & supplies lost 0.3%.

Only miscellaneous store retailers reported a healthy gain for the 3 months ending May, up 8.2% year-over-year, mostly thanks to the addition of new cannabis stores. Furniture and home furnishings stores however did provide some positive news, with a 5.1% retail sales increase for the 3 months, after having gained just 0.8% through all of 2018.

Note that Statistics Canada is now suppressing the breakdown of general merchandise stores for confidentiality reasons. The figures in the “By The Numbers” table below are estimates based on previous trends.

Automotive & Related

Retail sales growth in the Automotive & Related sector fell like a rock in 2018, made a modest comeback in early 2019, and now appear to be stalling. Total retail sales were up 2.5% year-over-year for the 3 months ending May 2019, which is rather modest by historical standards.

Retail sales at new car dealers gained 3.0% for the 3 months ending May 2019, an “okay” result but nothing to get excited about. Used car dealers continue to enjoy high sales gains however, up 13.7% year-over-year for the 3 month period. Automotive parts, accessories & tire stores gained 6.3%, over double the overall retail average.

Gasoline stations are still the laggards in the sector, but may be strengthening somewhat. Their retail sales were down 1.1% year-over-year for the 3 months ending May 2019, but this is actually an improvement over the 6.4% decline gas stations posted for Q1 2019.

By The Numbers

Special Note: Statistics Canada revised historical data with the February 2019 release. Unadjusted monthly data were revised back to January 2018, while seasonally adjusted data were revised back to January 2015. Those keeping score should update their files. The analysis in this report is always based on unadjusted data.

For definitions of store types, see Statistics Canada NAICS.

Canadian E-Commerce Sales

StatsCan started providing ecommerce retail sales data in January 2016. While the amount of data is limited, some trends appear to be emerging. Here are some results.

Overall, e-commerce represented about 3.1% of total Canadian retail sales for the 3 months ending May 2019, including both pure play operators as well as the online operations of brick & mortar stores. Canadian consumers however also buy online from foreign websites which is not captured in these numbers.

Canadian e-commerce sales were up 18.7% year-over-year for the 3 months ending May 2019. This was significantly higher than for location based retail which gained 2.5%.

Note that location based retail is the same as that in the preceding large “By The Numbers” table. It’s what’s normally reported as Canadian retail sales. Except that it isn’t. Location based retail excludes another section called Non-Store Retailers (NAICS code 454), which includes electronic shopping and mail-order houses, which in turn is where (mostly) pure play e-commerce businesses are. For the 12 months ending May 2019, electronic shopping and mail-order houses had an estimated $11.7 billion in e-commerce sales.

But that’s not the only source of e-commerce, as (mostly) bricks & mortar location-based retailers also sell online. For the 12 months ending May 2019, this group had an estimated $7.6 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $19.3 billion in e-commerce sales by Canadian operators over the year. Note that this does not include foreign e-commerce purchases made by Canadian consumers, but it does include e-commerce purchases made by foreigners at Canadian retailers.

For electronic shopping and mail-order houses, an estimated 85.4% of their sales are allocated to e-commerce. For (mostly) bricks & mortar retailers, it can be estimated that just 1.2% of their total sales are attributable to e-commerce.

In the final section of the above table, (mostly) pure play operators (namely, under electronic shopping and mail-order houses) generated an estimated 60.5% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce is 39.5%.

For more explanation on the e-commerce numbers, see Statistics Canada: Retail E-commerce in Canada.

This analysis is updated monthly as new numbers are published by Statistics Canada. If you would like notification of when an update becomes available (and you’ve read this far), please connect with Ed Strapagiel on LinkedIn.

L.L. Bean Enters Canada with Plans for Stores Across the Country: Interview

PHOTO: L.L. BEAN

The Jaytex Group is bringing iconic international outdoor retailer L.L.Bean to Canada in a big way with the opening of the first store in Oakville Place, just outside Toronto, August 23 to be followed by dozens of in-store locations in Hudson’s Bay across Canada.

Howie Kastner, President of Jaytex Group, told Retail Insider that the company plans to have shop-in-shop L.L.Bean stores in every Canadian Hudson’s Bay location by next spring and will expand to about 20 standalone stores in the country within 10 years.

The first retail location of L.L.Bean in Canada will be a 13,000-square-foot store in Oakville Place which is set to open August 23. The international retailer has a history of being in business for 107 years.

Oakville Place

Kastner said Jaytex has worked out a deal with Hudson’s Bay where the best of L.L.Bean products in all categories will be sold in self-contained branded shops ranging from 300 square feet up to 2,000 square feet.

“These shops will house our key product categories which include men’s, women’s and kids’ apparel, footwear, bags and accessories. They will be mini L.L.Bean stores within Hudson’s Bay.  Kastner said that 57 locations will be rolled out at the end of August in Bay stores and next spring it will likely be rolled out to all the remaining Bay stores in Canada.

“The Hudson’s Bay locations that we’re rolling out this fall will cover the top 57 stores from coast to coast right from the flagships in Toronto, Calgary, Montreal and Vancouver down to mid-size and smaller stores,” he said. The Bay has 88 stores in the country. The brand will also be available on thebay.com.

“Ultimately our plan is to get to 20 standalone stores within a 10-year period and it’s really all going to depend on getting the right locations, the right deals, and the right space. We’re going to focus on Ontario first by opening four or five stores, and then start to branch out across the country. We have the postal code data from L.L.Bean from their online and catalogue business. We know where the L.L.Bean customer is.”

Jaytex is working with Andrew Laudenbach of Oberfeld Snowcap, a commercial real estate firm, to launch the stores.

L.L.Bean, Inc. is a leading multi-channel merchant of quality outdoor gear and apparel. Founded in 1912 by Leon Leonwood Bean, the company began as a one-room operation selling a single product, the Maine Hunting Shoe. L.L.Bean is a family-owned Maine company led by Executive Chairman, Shawn Gorman, the great-grandson of Leon Leonwood Bean and Stephen Smith, President and CEO. In the past five years, L.L.Bean has donated over $6 million toward conservation and land stewardship. L.L.Bean currently operates 44 stores in 18 states across the United States, along with 28 stores in Japan. The 220,000-square-foot. L.L.Bean retail store campus in Freeport, ME, is open 24 hours a day, 365 days a year and welcomes more than three million visitors every year.

“We’ve had a long, meaningful relationship with Canadian customers for decades, so we’re thrilled to be able to give our loyal Canadian fans a true comprehensive, omnichannel L.L.Bean experience, with a dedicated web site, Canadian catalogues, and now L.L.Bean retail stores,” said Smith in a news release. “As a Maine-based company that shares a lot of commonalities with our northern neighbours, we’re eager to be infusing a bit of the Maine essence and L.L.Bean brand into the Canadian market.”   

The company said the brick-and-mortar store is the latest offering of L.L.Bean products geared specifically for Canada. In late June the brand launched a Canadian-only version of its famous catalogue featuring duty-inclusive prices, designed to make the shopping experience more convenient for customers. The catalogue joined the company’s Canadian-specific website, which launched late last year.

“Hudson’s Bay celebrates a sense of community and outdoor adventure that is embraced by Canadians,” said Wayne Drummond, Chief Merchant, Hudson’s Bay, in a news release. “Our customers trust Hudson’s Bay to find and deliver the very best brands that reflect those values. It is this shared spirit with L.L.Bean that compelled us to launch the brand in our stores and online this fall.” 

Kastner said the iconic brand already has a healthy, robust business in Canada. The company has shipped a lot of product into the country over many years. “There’s a very loyal following. We know that a lot of Canadians travel south of the border to L.L.Bean stores – in particular the Freeport store. Any day of the week you’ll see a lot of Canadian licence plates in that parking lot, and over the years a lot of the comments and the requests that L.L.Bean was getting from its customers were pretty consistent. When can we buy the product in Canada? When are you opening a store? It just seems a natural for us,” he said.

Canadian Retail Sector Ranks Last in Digital Accessibility: Experts

Canada’s retail sector ranks last in terms of digital accessibility and Canadian retailers have a long way to go to become digitally inclusive, according to Siteimprove’s Accessibility World Map.

Mike Cart, Managing Director of Siteimprove, the company that launched Accessibility World Map, said Canada trails a number of developed nations, including the U.S., the United Kingdom and Australia, in the ranking out of 100 with 100 being the most digitally accessible and 0 being the least digitally accessible.

Canada scores 63 out of 100. Globally, the U.S. has the highest score with 65, and United Arab Emirates has the lowest score with 58. Of the Canadian industries ranked, Education is the highest with a score of 66. Retail ranks the lowest with a score of 59, meaning that Canadian retailers are missing out on a large percentage of potential customers, said Cart.

Other Canadian industries are ranked as follows (from most inclusive to least inclusive): Government – 65; Healthcare – 64; Financial Services – 63; Manufacturing – 61; Tourism and Hospitality – 60

“We’re kind of right in the middle towards the upper part of the scores of the 28 countries that we have. There’s different ways of being able to take a look at it. One is the legislation. So depending on the country and legislation. That’s the number one piece we see that impacts scores and just importance and drivers from an urgency standpoint,” said Cart.

Countries like the U.S. as well as different European and Scandinavian countries have had kind of a finger on the pulse from the digital accessibility realm just longer than Canada has.”

Siteimprove is a Software as a Service that specializes in digital presence optimization. It scans public facing website content of companies and organizations and based on the different modules and algorithms that it has it will detect deficiencies and report back in a friendly way to be able to fix those deficiencies.

Digital accessibility is being able to accommodate different preferences people have when they use technology.

“Different people have different preferences as well as different people have different user needs. So everybody thinks that digital accessibility is only for individuals specifically that might be for example blind or are not able to use a keyboard,” said Cart. “That’s not necessarily the full truth  . . . The obvious people think of is individuals that might be visually impaired or cognitive abilities but it’s looking at the full scope of being able to accommodate all different preferences depending on the user needs.”

The purpose of the new Accessible Canada Act (Bill C-81)* is to make Canada barrier-free in areas under federal jurisdiction. It outlines how to identify and remove accessibility barriers and prevent new barriers, under federal rule, including information and communication technologies (digital content and technologies used to access it).

Cart said about one in five  Canadians have a disability and creating a Canada where everyone can participate fully without barriers is long overdue — and not just in the physical sense.

“We’re just starting to see companies and industries wake up to the fact that all Canadians deserve equal access to websites and digital platforms,” said Cart.

“We’ve been working with clients from all of these sectors over the last couple of years. And to be frank, we aren’t surprised to see retail rank the lowest, as the industry has a lot to do to catch up to some of its more digitally inclusive counterparts. Making e-commerce sites more inclusive is beneficial for many reasons, including reaching a potential 22 per cent of the customer base that’s being missed out on.

“There’s a couple of things for retail that I see. That’s something that didn’t necessarily shock me. Number one is we’re scanning the pages of content on someone’s website. So the retail websites that we scan are by far the biggest from a quantity standpoint. So the larger sample size means a larger area to cover. So with that being said there’s just more work to do as well as compared to say education, government that do have the highest scores . . . They’ve been focusing on it a little longer than some of the other privatized areas. That’s where you see the direct correlation of the combination of time focused on that for the majority as well as just the sheer size of the scope that they’re dealing with.”

Cart said retailers need to take a look at what they’re doing and have a strategy. It’s not a project but it’s a process. It’s a constant ongoing solution so teams have tools in place such as an automated checker like a Siteimprove but also being able to also then have in place different ways of prioritizing things.

“A lot of people get overwhelmed for retail specifically. The sheer size of the project. Something like Siteimprove we’re going to be able to take a look at the entire kit and kaboodle of their site which could be tens of thousands of pages but then being able to really break it down to more digestible steps to be able to put a plan in place where you’re able to achieve certain goals,” said Cart.

“Being able to work within our resources and with our team to help them do that has been something that we’ve been able to partner with here in Canada to be able to really show progress and being able to say it’s not something that’s going to take forever. It’s a process and it takes time to do it. But through a strategy and through the support our resources and individuals here as well as the software, it’s something that we’ve seen retailers over the course of the past couple of years make significant progress and are continuing to expand our customer base in that sector.”

Country scores of the Accessibility Map are: Australia – 64; Austria – 62, Canada – 63; Denmark – 64; Estonia – 63; Finland – 62; France – 60; German – 62; Iceland – 63; Italy – 62; Japan – 64; Netherlands – 64; Norway – 64; Spain – 63; Sweden – 64; Switzerland – 64; United Kingdom – 64; United States – 65; United Arab Emirates – 58; Belgium – 62; New Zealand – 62; Portugal – 63; Brazil – 62; Chile – 60; India – 61; Mexico – 62; Russia – 61; South Africa – 59

*Editor’s Note: The Accessible Canada Act has since become law, an exciting development as the Act was expected to receive Royal Assent this summer.

Retail Recruiter Disrupts Industry with Membership-Based Staffing Service

Editors Note: Retail Insider is providing an update on the below article where we discussed a program launched by retail recruiter Suzanne Sears, and how it is disrupting retail recruiting.

SUZANNE SEARS

The novel Recruit by Membership program by Retail Staffing Canada, created by Ms. Sears, is seeing success with several metrics.

Since Ms. Sears founded her Recruit by Membership program, the confirmed statistics of performance for Members has been:

  • Closing rates of new hires made using Retail Staffing Canada candidates has been 90% of those submitted.
  • Of those hired, the retention rate is 95% to date.
  • The average ‘time to fill’ rate for roles supported by Retail Staffing Canada has been 14 days (with 55 days being the industry average), cutting vacancy times by 41 days.
  • The average cost to fill for the Store Manager level using the Recruit by Membership program has been only $990 when using membership credits. Traditional recruiting would cost in the range of $8,000 to $10,000.

Suzanne Sears says that the response for information on the program has been overwhelming. If you are a retailer than wants to know more or review the program a second time for more details, please fill out the Squarebox form at the bottom of this article, or email Ms. Sears for details.

For more information on the Recruit by Membership program by Retail Staffing Canada, visit: retailstaffingcanada.com/membership

*****

By Retail Insider

A leading Toronto-based retail recruiter is disrupting the industry after launching a membership-based service that saves retailers and landlords time, while at the same time being considerably less costly than traditional recruitment methods. Suzanne Sears, President of Best Retail Careers International Inc., launched Retail Staffing Canada Inc. earlier this year and it’s already seeing remarkable traction.

She says that she started the new recruitment business concept to better serve retailers and landlords that may otherwise see resistance when seeking a budget for external recruiting. With that in mind, Ms. Sears designed and launched the ‘recruit by membership’ program which aims to be the new standard for retail staffing in Canada.

Ms. Sears explained how her program enabled retailers and landlords to access every level of talent from “street to suite”. The concept is simple: members purchase a core club membership and use a credit system to receive pre-screened candidates.

“Rather than paying hundreds or thousands of dollars in non-productive advertisements to hire staff, the membership guarantees that you will receive quality applicants. You place an order for the number of candidates you want to see based upon how many membership points that you wish to spend. This has cut costs to an extraordinary average of about $1,000 per candidate hire, which is a fraction of traditional recruiting,” she said

She says that in most instances, she and her team of retail brokers can turn around orders for new staff in 48 to 72 hours, which is significantly faster than traditional recruitment methods. “Empty roles in retail and equivalent lost sales and productivity are the subject of many studies. Most suggest the fill costs and losses add up to four times the missing person’s monthly salary, “she said.

“In a climate of 5.4% unemployment, retailers cannot sit back and expect dream candidates to saunter in the door via ads or corporate job boards.”

“The only way to access quality candidates is to have a massive network to draw from”, said Ms. Sears. She went on to explain that she is able to draw from her personal connections of nearly 20,000 retailers and by second degree, into the millions.

Last year we reported on Ms. Sears’ SuperStar Talent Registry of Best Retail Careers International, which became the foundation of these ‘ready to work’ candidates, she explained. From there it has grown as candidates “more often now want to be personally represented, speak to live people and avoid the dark hole of online applications”.

Ms. Sears revealed that her new Retail Staffing Canada clients value the time savings from not having to sort through and screen ‘below par resumes’, and as well, they can tackle a very concerning new problem. Some stores in Canada are having to close down temporarily during posted hours due to lack of staff.

“Increasingly, even in malls where fines are imposed for late openings, it is very common to find stores so short staffed they don’t open the doors for business either on time or at all. Frequently many stores are electing to shut down one or more days a week — they pay full rent but lose the revenue.”

“Finance departments are blissfully unaware of the huge struggles Human Resources and Operations go through to find staff insisting they should be able to do it on their own or with internal recruiters,” said Ms. Sears. “However there just are not enough people ‘ad shopping’ for jobs to make this method of recruiting effective and timely to meet day to day staffing needs.”

“At the same time, their pleas for external recruiting budgets are denied by the employer, and they’re left frustrated and with few support options.”

Ms. Sears explained how her Recruit by Membership is a staffing support that replaces a significant amount of funds spent on ads and as a result, redirects that budget to direct staffing. “Recruiting nowadays is about accessing your social network and internal recruiters simply have no means or time to build social media followings like we do, talking to people every day about their futures, keeping them in mind for when openings come up,” said Ms. Sears.

A secondary problem, according to Ms. Sears, is closing the offerings for new hires. “Without a skilled recruiter to mediate, candidates are turning down jobs in record numbers if they don’t see the contracts and benefits and perks they have come to expect.” She went on to say, “It is a sellers’ market as far as staff goes — the firm with the best package and cultural story wins the best talent”, she said.

To solve these problems, Retail Staffing Canada Inc. Memberships come with free consulting hours to tap into the deep knowledge base of her team on how to recruit more efficiently, how to close on offers and how to retain staff.

“These services are not just for street level or head office support staff, they apply equally to executive hiring who even more these days are retiring or unwilling to get caught up in the ecommerce battle with bricks and mortar,” said Suzanne Sears. “Only a highly skilled agent can bring these executives to your table and get them signed.”

“The program has been overwhelming popular. I have had to take on additional specialty brokers to aid the volume of requests. Clients tell me they will never go back to old fashioned recruiting of post and pray or take on very expensive contingency recruiting services either,” she went on to explain.

“We still do executive level retained searches, but these fees are cut by 50% if you have a membership”, she added.

“We become your outside and invisible staffing support system. We deliver just like Skip the Dishes, right to your desk, prequalified candidates ready to go. Your own team takes it from there.”

Ms. Sears also states that they will be adding several new features for back to school hiring for this fall, including a job board option with a membership purchase where retailers can post their open roles directly through Best Retail Careers International Inc. to directly reach the company’s massive following of retail workers seeking out new positions.

Sears invites you to learn more by submitting the information request before for a prompt reply.

*Best Retail Careers International Inc. is a sponsor of Retail Insider. To work with Retail Insider to get the message out, email Craig Patterson at: craig@retail-insider.com.