L.L.Bean Announces Expansion into Canada

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October 31, 2018

L.L.BEAN BOSTON LOCATION. PHOTO: L.L.BEAN FACEBOOK

Maine-based outdoor retailer L.L.Bean has announced that it is expanding into Canada with a partnership with Toronto-based Jaytex Group. A retail store expansion will commence in 2019 and this fall, the company has launched a Canadian e-commerce site as well as wholesale distribution in several major retailers.

“We’ve historically had an active and loyal customer base in Canada,” said Steve Smith, President and CEO of L.L.Bean. “Developing a true omnichannel presence that includes a wholesale component, as well as new brick and mortar retail stores and a dedicated Canadian website will give our Canadian customers a better overall L.L.Bean experience and make it much easier to shop in the channel that’s most conducive for them.”

L.L.Bean was founded by Leon Leonwood Bean in 1912 in Freeport, Maine, where it continues to operate its flagship to this day. The company, which operates a network of stores in the United States as well as Japan, is best known for its ‘Bean Boot, which is a waterproof rubber boot with a leather upper. The company’s product lines include clothing for men and women as well as firearms, backpacks, and tents. In 2010, it launched a sub-brand called L.L.Bean Signature, which is a ‘modern interpretation’ of the brand with ‘modern fits’.

The brand’s popular boots are available in stores in Canada for the first time this fall, as well as on a new dedicated Canadian e-commerce site. Brick-and-mortar retailers carrying the popular boots as well as other L.L.Bean products include selected Hudson’s Bay, Sporting Life, and MEC stores.

L.L.Bean partnered with Toronto-based distributor Jaytex Group on the Canadian expansion, including L.L.Bean’s current wholesale distribution as well as a retail expansion that could see 20 branded L.L.Bean stores open in Canada over the next decade.

In the United States, L.L. Bean operates more than 40 full-priced stores as well as 10 outlet stores. In Japan, the retailer operates 28 stores. Most stores in the United States are in suburban locations, and in March of 2018 it opened its first urban location in Boston’s Seaport District. More urban stores are planned as the brand seeks to cater to a wider range of customers.

Founder Leon Lemonwood Bean developed and patented the Bean Boot after frustrations over wet hunting footwear, and the waterproof boot was a hit from the getgo. L.L.Bean provided a 100% money back guarantee on items without a purchase receipt though in February of 2018, it began limiting returns to within one year of purchase while requiring a receipt or other proof of purchase. One of the issues was that some unscrupulous individuals were returning L.L.Bean goods purchased at yard sales for a full refund price, for example.

MAINE MANUFACTURING FACILITY. PHOTO: L.L.BEAN WEBSITE

L.L.Bean was involved with some political controversy last year when in January of 2017, political activists launched a boycott of the brand after it was disclosed that Linda Bean, one of the descendants of the founder, had donated $60,000 to a political action committee that supported Donald Trump’s 2016 presidential campaign. Trump, on Twitter, after seeing calls for the boycott said, “Thank you to Linda Bean of L.L.Bean for your great support and courage. People will support you even more now. Buy L.L.Bean”. Ms. Bean referred to the backlash as “bullying” and “un-American” and despite calls for her to step down from the board, she remains as a director.

About 75% of L.L.Bean’s manufacturing is overseas, much of it in China, which means Trump’s endorsement was incongruous with his assertions that products be ‘made in America’. The company’s signature boots and other products are still manufactured in the United States, however, producing about 600,000 pairs of boots annually at its factories in Maine.

L.L.Bean’s flagship on Main Street in Freeport, Maine, has been in operation since 1917 and remarkably, it has been open 24 hours a day since 1951 with the exception of two Sundays in 1962 when Maine changed its blue laws, as well as for the death of US President John F. Kennedy in 1963, as well as the deaths of founder Leon Bean in 1967 and his grandson Leon Gorman in 2015.

The company also operates the ‘L.L.Bean Bootmobile’, which travels the United States and serves as a mobile store with limited product during its annual college tour.

L.L.Bean’s retail outlets feature education programs and activities where customers can sign up to participate in various outdoor activities such as archery, clay shooting, fly casting and sea kayaking, with all equipment and instruction provided.

L.L.Bean is the latest international brand to enter the Canadian market by opening stores. In 2017, Canada saw more than 50 brands open standalone stores or concessions, which was a record. This year is shaping up to be similar as retail becomes more global and brands look to Canada to drive growth. L.L.Bean will compete with a wide range of retailers selling similar products in this country and the increased competition could pose a challenge as consumer debt levels increase, not to mention the overall increasing cost of living in most parts of Canada.

The Toronto area will become home to L.L.Bean’s first standalone Canadian store in 2019, according to the company, though a location has yet to be revealed. In the United States, L.L.Bean operates stores in a range of centres, including some high profile shopping centres such as Old Orchard in suburban Chicago, King of Prussia in suburban Philadelphia, and at the Mall of America in suburban Minneapolis. Privately-owned Jaytex Group was found in 1978 and features a portfolio of private label and lifestyle licensed brands in Canada.

Fourpost Launches Innovative Retail Concept at North America’s 2 Largest Malls

By

Mario Toneguzzi

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October 31, 2018

A new retail concept that transforms the traditional brick and mortar model by connecting shoppers and brands through community and experiences is being launched in two of North America’s biggest malls.

Fourpost is the re-branded name for RAAS (Retail as a Service) which was a micro-mall concept that laid the groundwork for the new concept which is backed by $5 million in funding. Fourpost is a tech savvy 2.0 version of the concept allowing retailers to have more tools to manage their physical storefronts from an online dashboard full of analytics, resources, tools and community where they can learn business skills, grow their businesses and connect with fellow entrepreneurs.

Fourpost is being launched November 1 at Mall of America in Minneapolis and at the West Edmonton Mall.

Mark Ghermezian, Founder and CEO of Fourpost, said RAAS was beta testing the original concept of whether retail brands want turnkey spaces that come with community and technology in prime locations and do consumers want to shop at these locations.

“Through that process we also got a better understanding of what our purpose is and what we’re doing as a brand and we really put a lot of thought into who we are, and what we are, and what we want to be,” said Ghermezian.

“The name Fourpost is we’re providing the four posts of innovation for retail. Four posts that form a community and I think it has a lot more meaning than Retail as a Service. That was always the idea to test this out and learn from it and come to market with a much more thoughtful brand around who we are as a brand and who we are as a company.”

Those four posts are: community which is a mix of local, emerging and digitally native brands; providing space which focuses on shapes not square feet; service which is through technology and customer experience; and curation with exclusive, high quality business services.

“Today, brands are demanding better options for brick and mortar,” said Ghermezian. “The industry has not kept pace with modern retail. We built Fourpost to completely re-architect the process by building a community and breathing fresh air into what has been a stale industry between landlords and brands for hundreds of years.”

Fourpost is geared to brands ranging from local businesses and startups to established digital natives, giving them access to prime real estate. Ghermezian said Fourpost can inject new energy into physical retail, starting with shopping malls and eventually moving to freestanding locations.

The key is offering these retailers a turnkey solution to opening a brick and mortar storefront without obstacles like long-term leases, high rents, capital expenditures and operational logistics.

One of its unique initiatives is offering creative and alternative space in its Studio Shops which can be triangular and rectangular in nature. Each Studio Shop has fixtures, signage, lighting, POS hardware, and Wi-Fi, as well as access to various amenities such as event space.

Fourpost says its easy-to-use SaaS dashboard allows members access to tools and resources like dedicated onboarding and account management, business training, calendars and event bookings, and billing. The dashboard helps members navigate storefront data, and gain useful insights and analytics to grow their businesses. It is also a platform for retailers to connect and engage in meaningful conversations, share information, and ask questions.

“We’re an independent company. We’re based in New York. Building a team here. We’re building the technology here. We’re looking to expand. We’re building a global international company and a community of brands and this is definitely something we want to start rolling out in more places,” said Ghermezian.

“We’re actually starting to offer staffing. That was a big thing. So when brands come on not only are they getting their turnkey spaces with us . . . but we’re also providing full staff so it’s completely turnkey. In some spaces we’re offering office space . . . It’s not just about the space. Our space is a means to an end and we’re creating a whole community and service around what we’re doing with the four posts.”

Fourpost has received investment from Susa Ventures, Collaborative Ventures, Blumberg Capital, Ludlow Ventures, Supernode Ventures, T5 Capital, Accelerator Ventures, Social Capital and Hersz Capital. Individual investors include Parachute Founder and CEO Ariel Kaye, Warby Parker Co-CEO Dave Gilboa, Rubrik Founder and CEO Bipul Sinha, and InVision Founder and CEO Clark Valberg.

The company plans to open several new locations in 2019.

Matt & Nat Launches Aggressive Standalone Store Expansion

By

Craig Patterson

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October 30, 2018

attachment-5bd7cfcfe79c706f372080cc — exc-5bd7cfcfe79c706f372080cc

Montreal-based eco-friendly accessory fashion brand Matt & Nat is launching an expansion this year that will see it rapidly expand its store count in Canada, as well as expand into the United States with its first stores. The company is also launching a premium line of accessories this month that will include luxury detailing and design.

The highly respected Matt & Nat brand (short for “mat(t)erial” and “nature”), which was founded in Montreal in 1995, is known for not using leather or any other animal-based materials in its bag and accessory designs. Since 2007, it has been committed to using linings only made out of 100% recycled plastic bottles, and it recently introduced recycled bicycle tires to its collections. The brand launched with a collection of accessories and it has since expanded to also carry a range of footwear designs. Matt & Nat wholesales to retailers in Canada as well as globally, and it also has a robust ecommerce business at mattandnat.com/shop.

According to Manny Kohli, President and owner of Matt & Nat, the company is about to launch a new premium collection called ‘Studio 901’. The line will include a range of accessories that will look and feel luxurious, featuring gold hardware, exceptional fabrics, and a range of colours.

Matt & Nat only recently got into retailing and according to Mr. Kohli, its stores are very successful. Matt & Nat’s first freestanding store opened in March of 2016 at the CF Carrefour Laval shopping centre near Montreal, with about 1,000 square feet of retail space. A second store opened in October 2016, spanning about 1,400 square feet at Quartier DIX30, in Brossard, and a third location opened in Ottawa’s CF Rideau Centre in May of 2017, with about 1,400 square feet on the mall’s second level. Most recently, Matt & Nat opened two Toronto-area stores — one at CF Sherway Gardens in Toronto spanning 1,470 square feet, as well as a 1,450 square foot location at Square One in Mississauga. The company also operates an outlet store at Premium Outlets Montreal.

This fall, Matt & Nat is launching an expansion that will see it open more stores in Canada and, for the first time, in the United States. On November 15, the brand will open its second outlet store at Premium Outlets Toronto, which is expanding its property while adding a roster of leading luxury brands. This month, as well, Matt & Nat is opening two pop-up locations in the New York City area — one is in the Soho area in Manhattan, and the other at Roosevelt Field on Long Island. If all goes as planned, permanent locations could follow.

In the spring of 2019, Matt & Nat will open its first store in Western Canada at CF Chinook Centre in Calgary, marking the beginning of a cross-Canada expansion that could see more locations open in Alberta as well as British Columbia. Mr. Kohli explained how Western Canada is a leading market for Matt & Nat and as such, targeted locations will include Edmonton and Vancouver, the latter which could support as many as three standalone stores, he said.

As well, Matt & Nat’s first store location at CF Carrefour Laval in suburban Montreal will be relocating in the spring of 2019. Mr. Kohli explained that the brand has outgrown its initial 1,000 square foot space, and that its new store will measure an impressive 1,800 square feet, making it the company’s flagship.

As many as 15 Matt & Nat stores could open in 2019, according to Mr. Kohli, in leading malls as well as on significant commercial high streets. The company is negotiating with landlords on the US West Coast in top malls in markets such as metropolitan Seattle, Portland, San Francisco and Los Angeles, with announcements to be made once lease deals are finalized.

More locations are planned for Canada as well, and the standalone expansion will be done carefully so as to respect the brand’s valued wholesale accounts. The goal is to continue to grow Matt & Nat’s brand awareness to drive sales at all distribution points, not to mention its expansive e-commerce site. Mr. Kohli said that the company could open a third outlet store in Western Canada, though the company will focus on opening mainline stores as it grows.

Mr. Kohli revealed that the brand could even expand outside of North America, with the company eyeing a retail space on popular Regent Street in London, UK. The multi-level retail space could become a showpiece for the brand if secured.

Matt & Nat is working with brokerage Oberfeld Snowcap for its store expansion, under the direction of Jay Freedman and Jessica Millet.

Retail Insider will follow up and report on Matt & Nat as it ramps ups its international expansion — the brand is another example of a Canadian brand that is resonating with global consumers.

Toronto’s Zappacosta Family Innovates with Retail Concepts

By

Mario Toneguzzi

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October 30, 2018

NANNI AND BELSTAFF AT YORKVILLE VILLAGE IN TORONTO. PHOTO: LOUISE YU

The Zappacosta family has been a fixture in Toronto’s clothing and fashion retail industry for generations; and the family’s success dates back to their grandfather Fernando, who was a bespoke tailor in Little Italy on College Street.

“That’s where the family business started. My dad grew up with his father being a tailor,” says Philip Zappacosta, Chief Operating Officer of Nanni, Belstaff, and philip – three fashion stores the family owns and operates in Toronto’s Yorkville Village.

Fernando’s passion for the industry was quickly parlayed into Tony Zappacosta becoming an entrepreneur, and alongside his wife Bernadette, he opened a chain of eight stores in the 1980s. The stores operated under the name Fenzi in several Cadillac Fairview malls, and enjoyed a successful reign until Fenzi was eventually sold.

BELSTAFF AT YORKVILLE VILLAGE. PHOTO: LOUISE YU

“The reason he sold it was because he was getting to a scale where he was losing touch with the customer when you get too big. He likes to be with the customer,” says Zappacosta.

“My dad said ‘so let’s then find something else unique’. He was always the kind of guy who would go to Italy and look for new lines and things that weren’t in the marketplace. So Nanni was a unique belt line that at the time Madonna was wearing…Michael Jackson was wearing. Billy Idol always wore Nanni belts — it was jewelry. It was a unique concept. He discovered this line and got the rights to the line for Canada. Very quickly his client base followed him and said you can’t just sell all belts. Nanni was originally just an all-belt concept store. Really innovative and unique. An accessory shop essentially, but that quickly evolved into a menswear store.”

Today, the family operates three brands in Toronto’s Yorkville Village, formerly Hazelton Lanes. Nanni opened on the site back in 1991. Canada’s first and only Belstaff store opened in September of 2017, and philip opened about five years ago.

Nanni and Belstaff have two separate storefronts, but they are connected internally, and the philip store is very close by.

“So what we’re doing here is creating an intimate environment for our clients. They’re specialized stores. We bend over backwards for our clients. Nowadays everybody can shop for anything and everything online so why would they come to us? Because they have fun and they know if they need anything in a rush or they need special tailoring or a special favour, shipping, it’s all the things, the services, that makes them feel special at the end of the day,” says Zappacosta.

“In all of our stores, we basically curate a premium product line because it’s Yorkville. The profile of our clients is that they’re generally more affluent, sort of leaders that are community-minded. They’re leaders in their industry,” says Zappacosta. “It’s a premium product. It’s affordable luxury.”

Nanni is strictly menswear, carrying lines such as Emporio Armani, John Varvatos, Goodman, and Robert Graham, and various other Italian lines. The store also continues to carry the well-known and celebrity-worn Nanni belts from Milan.

The Belstaff store, the brand’s first standalone location in Canada, has a look that the company notes exudes an air of understated confidence and modernity, true to the essence of the designer English brand. The store carries men’s and kid’s clothing and introduced a women’s line this fall as well.

“(Soccer legend) David Beckham is a spokesman so it’s a little more contemporary. Cool, casual wear with a big focus on leather jackets. It was founded in 1924 and it’s got a motorcycle heritage as well. A little edgier,” says Zappacosta. The brand is known mainly as an outerwear brand and everything is made in Italy. The product is fashionable and durable, with its leather and waxed cotton jackets performing well in all elements, particularly rain and snow.

Leandra Zappacosta is leading the Belstaff store, and she explains that since it opened about a year ago, the brand is attracting an entirely new shopper, as well as drawing existing clients from the family’s Nanni and philip stores. New clients include locals as well as tourists who are increasing frequenting the Yorkville area.

Philip Zappacosta says the philip store grew organically from Nanni. “It became a little bit higher end. So we carry more of the designer labels. We’re [servicing] more of your executive-type people here,” explains Zappacosta.

“Yorkville Village is a neighbourhood mall that is basically exploding outwards. So they’re trying to become a community-minded type of a mall that has everything from a great health club to a Whole Foods store to different eatery options and high fashion men’s and women’s. It’s a ritzy neighbourhood,” says Zappacosta.

He says the team at the stores is simply an extension of the family. “It’s all about our customers. Every business can say that but at the end of the day we form these relationships with these clients. There’s a friendship that forms and there’s a trust as far as their image because these are guys that have graduated to a level where they’re now executives or owners of their own business… It’s more about just having an experience and having an image that reflects their positions of power. It’s image consulting. That’s what it comes down to.”

The Zappacosta family isn’t just big in the fashion industry. In the world of professional football (soccer), Davide Zappacosta (Tony Zappacosta’s nephew) plays for the Chelsea F.C. in London UK. The family is also known in the music scene, led by renowned musician, troubadour and actor Alfie Zappacosta, who is Tony Zappacosta’s first cousin (Alfie wrote the hit song ‘Overload’ for the Hollywood film “Dirty Dancing” starring Patrick Swayze. In Toronto, a street was recently named ‘Zappacosta Drive’ (near Weston Road and Finch Street) in honour of Alfie Zappacosta, known as one of the most gifted and respected musical talents, who grew up in Toronto and attended Emery Collegiate Institute.

What does the future hold for the Zappacosta family and their retail endeavours? Philip Zappacosta says that he’s on the lookout for more prestige brands, particularly brands from Italy that focus in the menswear area, though other luxury brands could also work as the family continues to grow its business. While future of business is flexible, one thing is certain – the family will continue to focus their efforts on the Yorkville Area, which Philip Zappacosta says is Canada’s fashion centre.

What Can Canadian CMOs Learn from the Volatile Retail Industry?

By

Craig Patterson

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October 30, 2018

*Toronto Eaton Centre. Photo: Wikipedia*

By Kenneth Evans, Managing Partner, APEX Public Relations and ruckus Digital

The Chief Marketing Officer is fast emerging as one of the most influential roles in an organization, as they are increasingly seen as key agents in repelling and overcoming the disruption sweeping virtually every sector of the economy. It was with these developments in mind that APEX PR, ruckus Digital and research partner MaruBlue launched the CMO Lab project. Our motivation was to determine if Canada’s marketers are genuinely keeping up with the pace of change. Yet, the results are not what we expected.

Despite massive change, new competitive pressures and technological disruption – pressures Canadian retailers know all too well – only one third of Canada’s CMOs have changed or evolved their strategies in the last few years.

There are a few reasons as to why there’s been little change. Canadian operations can be “satellite offices”, with budgets and campaigns coming from HQ in other countries, making Canadian marketing plays more transactional. Some organizations are also still relatively siloed – and are not prone to collaboration between divisions. For others, it’s the “if it ain’t broke, don’t fix it” mentality, thinking that there’s more risk than reward when it comes to changing their ways.

*Upper Canada Mall. Photo: Oxford Properties*

But conventional marketing no longer delivers the audience, engagement or impact that brands need today, and it’s clear that marketers who are unable to shift from traditional tactics to a strategic and integrated approach are putting their organizations’ brand reputation and customer loyalty at risk.

Based on our own experience, it’s clear that marketers in Canada’s retail sector fall within the one third of those who’ve shifted their approach. Due to the cutthroat competition and the influx of new retailers entering the Canadian market, there’s no room for complacency. This continent-wide competition that the retail sector is facing has compelled its marketers to be extremely savvy when it comes to communications. To be frank, senior level marketers in Canadian retail deserve much kudos for this and we encourage marketers in other sectors to pay attention to their strategies.

So what are the one third doing right?

The one third of senior level marketers who’ve changed their approach are adopting an integrated communications strategy. This means more dollars are being spent on digital communications – such as influencers, video production, social media and paid digital, while still driving earned media coverage. Integrated programs allow brands to engage with their audience in a holistic way.

The one third are also effective collaborators. Most have moved away from the hero agency model, and instead collaborate with multiple agency partners across creative, media, digital and PR to strategize concepts and start the ideation process. With this model, the “big idea” for a narrative can come from anyone. When this happens, the different agency partners bring their own strengths to the table to help execute in a coherent way.

Understanding effective content is the final piece of the puzzle. Today, content across all channels must have strong editorial sensibility. Content has to tell a story to drive engagement and create word of mouth.

Keeping up with the retail sector

Walmart Canada is a fine example of a brand that has successfully collaborated with its multiple agency partners to execute its integrated programming. As a leader in sophisticated integrated communications, the brand also played in the digital space with its unbranded web series, Upstairs Amy, which also integrated Canadian influencers.

Canada Goose is another great example. The brand is in the middle of what can be considered a “parka war” with heavy weight players like Mackage and Moose Knuckles. Canada Goose, however, has effectively cut through the noise, with unique campaign elements like a YouTube video series, in-store activations and a partnership with the Sundance Film Festival.

Three things marketers can learn from Canadian Retail marketers:

Get integrated

Senior level marketers should expand their use of integrated communications to optimize programs, reach more audiences and stand out from the competition. By doing so, they will achieve greater consistency of brand messages, enhance consumer engagement, public and employee engagement while driving sustainable growth.

Scrap the hero agency

Working with one agency could halt the creative process. Collaborating with multiple agencies and allowing them to participate in the ideation phase reaps great results. Giving others a chance to form a brand’s narrative and effectively working together on execution paves the way for a rush of new ideas.

Tell your story

When developing a content strategy, ask yourself: does this content have a strong editorial sensibility? Strong content puts the consumer first, and the brand second. Otherwise, it’s just an ad.

Stay on the lookout for new CMO Lab content from APEX / ruckus Digital and follow the conversation using the #CMOLab hashtag.

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Kenneth Evans is a Managing Partner at APEX Public Relations. A 20-year plus senior corporate communications strategist and communications trainer to some of the globe’s top brands, Kenneth has carved out a reputation for cultivating compelling brand narratives that protect and advance corporate reputations. Follow him on Twitter @kenmevans.

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Drake’s OVO ‘October’s Very Own’ Opening 2 Canadian Stores Part of Global Retail Expansion

By

Craig Patterson

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October 29, 2018

Drake+OVO+October's+Very+Own+Store+Toronto+Yorkdale+Retail+Insider — ENTRANCE TO THE YORKDALE STORE, VIA OVO/MEDIA PROFILE.

World-renowned Canadian musical performer Drake’s fashion retail concept October’s Very Own (OVO) will open two more stores in Canada this year as it expands its direct-to-consumer retail operations. One store will be a street front location in downtown Vancouver, and the other will be in a suburban mall, marking the third OVO location in the greater Toronto Area.

The expansion speaks to the power of musician brands — Drake, who’s real name is Aubrey Drake Graham, is known worldwide for such hits as ‘Hotline Bling‘ and his 2016 studio album ‘Views‘, which included a photoshopped image of Drake sitting on the edge of the CN Tower (and sold millions of copies). Fans, eager to associate with the musician, are buying up branded products under his OVO label, which was founded in 2008 and features OVO’s trademark owl logo. OVO also collaborates with various other brands.

The downtown Vancouver OVO store will be located at 1044 Robson Street, in a 2,000 square foot retail space recently vacated by multi-brand menswear retailer Boys’Co. The OVO lease was finalized over the summer and Boys’Co relocated its downtown flagship to the suburban Coquitlam Centre. CBRE Vancouver’s Mario Negris and Martin Moriarty negotiated the Robson Street deal and local publication Daily Hive broke the news after OVO-branded paper was seen in the windows of the new Vancouver store last week.

A second OVO location opens this winter at the Square One shopping Centre in Mississauga, west of Toronto. The 2,920 square foot store is in a space formerly occupied by Indochino (which relocated nearby) and will be between Lululemon and shoe retailer B2, across from Square One’s Victoria’s Secret and Microsoft stores.

YORKDALE STORE OPENING, VIA OVO/MEDIA PROFILE.

INSIDE THE YORKDALE STORE, VIA OVO/MEDIA PROFILE.

OVO WILL OPEN AT SQUARE ONE IN MISSISSAUGA THIS WINTER, IN A RETAIL SPACE SPANNING NEARLY 3,000 SQUARE FEET.

OVO is ramping up its retail expansion and sources confirm that it has secured other spaces, including at a new high-profile US retail centre with an announcement to follow. OVO currently operates five stores globally and that number will escalate with the expansion.

Drake, who grew up in Toronto and was a star on the hit TV Series Degrassi The Next Generation, opened his first OVO store in Toronto in December of 2014 at 899 Dundas Street West. The small boutique was the brainchild of OVO’s co-founder Oliver El-Khatib, and it followed a summer of 2014 pop-up that was held in the same retail space.

In December of 2015, OVO opened its second store location at 130 N. La Brea Avenue in Los Angeles, spanning about 2,400 square feet. In December of 2016, OVO’s third store location opened at 54 Bond Street in New York City.

In June of 2017, Drake made news when he released a one-minute video announcing the opening of OVO’s fourth store at Toronto’s Yorkdale Shopping Centre. The video involved him and others riding through the mall in a Cadillac Escalade to the tune of his hit song Gyalchester, which further helped put Yorkdale on the map in terms of securing unique branded stores. The 1,580 square foot Yorkdale OVO store opened in August of 2017 — long lineups frustrated some, and staff at adjacent stores said that fights had broken out requiring medical attention.

Most recently, in November of 2017, OVO opened its first store in the UK in London at 30 Berwick Street in the city’s Soho area.

OVO continues to collaborate with various other brands, which is a trend generally as brands work together to create synergies. This fall, for example, OVO is partnering with Canadian retailer Roots on a designer collaboration (not the first time), according to an Instagram post on October 29.

Drake continues to be a booster of Toronto, a city which he is clearly fond of. He mentions Toronto often in interviews and in his music, and spends a considerable amount of time in the city when he’s not traveling. He’s also investing in the city as he builds a 40,000 square foot mansion in the wealthy ‘Bridle Path‘ area in North York and in the past, he has lived in the city’s Yorkville area in luxury residential buildings as well as at the Ritz Carlton Hotel’s private residences in Toronto’s Entertainment District.

Gluten-Free Bakery Chain Sorelle & Co. Continues to Expand

By

Megan Harman

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October 29, 2018

Niche Toronto-based bakery chain Sorelle & Co. is continuing to grow—just two years after making its debut—with a new location that opened in Etobicoke last week.

The bakery and cafe chain, which now operates four locations throughout the Greater Toronto Area, specializes in gluten-free, soy-free, vegan, nut-free and preservative-free baked goods—with an elegant twist. The cafes are designed to be beautiful, sophisticated spaces—reminiscent of high-end tearooms—and the baked goods themselves are colourful and artistic.

“It’s a unique approach to food, where we mix refined elegance with healthy organic ingredients,” says Jean-Charles Dupoire, culinary director at Sorelle & Co.

Although the chain’s target market includes customers with allergies and dietary restrictions, Dupoire says Sorelle’s offerings appeal to everyone.

“Taste and texture is not compromised,” he says. “It is not only geared to people with allergies or Celiac, but for all to indulge on desserts that contain quality ingredients.”

Sorelle opened its original location—the flagship—in mid-2016 in Vaughan. It was founded by a mother of five daughters, all of who suffered from various food allergies, such as gluten, dairy, egg, soy and nuts. Having had trouble finding restaurants and bakeries that were free of all of those ingredients, she decided to launch Sorelle as a destination for people struggling with similar allergies and food sensitivities.

Since day one, it’s been clear that there’s a significant market for allergen-free foods, Dupoire says.

“We wish there where more places for people to go to feel safe, hence why we have opened four locations in two years,” says Dupoire.

Sorelle offers both sweet and savoury items, and offers high tea service. The chain also makes custom cakes to order. Some of the most popular items include brownies, donuts, cookies and pies.

Following the launch of its Vaughan flagship, Sorelle opened a concession in the Pusateri’s Food Hall at Saks Fifth Avenue in downtown Toronto, followed by a location at the base of the former Four Seasons Hotel on Avenue Road in Toronto’s Yorkville neighbourhood.

“Yorkville to us was the perfect location to feature our brand, not to mention satisfy the downtown customers,” says Dupoire.

The newest bakery is located on The Queensway between Islington Avenue and Kipling Avenue – a high traffic retail area in Etobicoke, at the base of a condo building.

The standalone locations range in size from 1,300 to 2,700 square feet, with between 20 and 42 seats for customers. They’re designed to be bright and spacious, dominated by shades of white and gold, with floor-to-ceiling windows, elaborate chandeliers and classic floral arrangements.

“The inspiration behind the design was to create a special place that people could get the feeling they are celebrating,” says Dupoire.

In addition to its own locations, Sorelle is exploring distribution partnerships with various hotels, grocery stores and catering ventures.

“Most kitchens in banquet halls, hotels and grocery stores are unable to produce pastries and desserts that are allergy friendly or celiac friendly because they don’t have a space that is contained to avoid contamination to guarantee customers’ safety,” Dupoire says. “This is why we are receiving so much interest—our kitchen is 100% free from all of these ingredients.

Canadian Retail Sales Stumble at Modest Pace

By

Ed Strapagiel

-

October 29, 2018

attachment-5bd799447817f7c0ea6bf684 — exc-5bd799447817f7c0ea6bf684

By Ed Strapagiel

Canadian retail sales keep stumbling along at a modest pace, according to the latest Statistics Canada data. For the 3 months ending August, total Canadian retail sales were up 3.7% on a non-adjusted basis. This is about half the 7.1% gain recorded for last year overall.

The 3 month growth trend (orange line in the chart above) continues to track below the underlying 12 month trend (green line), which in turn has been on a consistent slide since the start of the year. The upcoming 2018 holiday sales season doesn’t look too promising at this stage.

Rising gasoline prices are also masking the general deterioration in retail. For the first 8 months or 2/3 of 2018, year-to-date retail sales were up 3.6% with gas stations included, but up only 2.6% when gas stations are excluded. In other words, gas price increases are adding a full percentage point to total retail sales growth than would otherwise be the case. The chart below shows the trends without gasoline stations, and this betrays an even steeper slide in retail sales growth in 2018.

Food & Drug

The Food & Drug sector has had a tough time so far in 2018. Retail sales are up only 1.2% year-to-date to August 2018, after 2/3 of the year. While the 3 month growth trend (orange line) has had a small uptick lately, it is still at a relatively low point. The underlying 12 month trend (green line) weakened last year and this has become an even steeper descent so far in 2018.

Just over 75% of the sales in this sector are in two store types, both of which have experienced actual retail sales declines thus far in 2018. Supermarkets & other grocery stores’ sales were down 0.3% after 8 months of the year, while health & personal care stores were down 0.1%. Mama, don’t let your babies grow up to be grocers or pharmacists.

The smaller store types in the Food & Drug sector however are doing comparatively well. Specialty food stores, convenience stores, and beer, wine & liquor stores are all up 5% or better year-to-date.

Store Merchandise

Retail sales growth in Store Merchandise is higher than for the Food & Drug sector. After 8 months of 2018, the Store Merchandise sector’s retail sales were up 4.3%, which however represents a decline from the 6.5% annual growth recorded for 2017. Nevertheless, current retail sales growth levels are in line with prior years.

The 3 month growth trend (orange line in the chart above) has steadied since about Q2 2018. After a remarkable run in 2017, the underlying 12 month trend (green line) has declined, but should stabilize by the end of the year.

Electronics & appliance stores continue to do well, with retail sales up 10.8% after 8 months of 2018. The murky miscellaneous store retailers also recorded an above average 9.1% year-to-date sales increase, while clothing stores gained a respectable 5.5%.

On the other hand, retail sales at shoe stores are down 1.2% year-to-date thus far in 2018, and sporting goods, hobby, book & music stores barely got ahead with a 0.3% gain.

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

Automotive & Related

When gas prices go up at the same time as when new vehicle sales are hot, the Automotive & Related sector booms. This was the case last year, in 2017. But this started to change late last year when new car dealers’ retail sales hit the brakes. After 8 months or 2/3 of 2018, year-to-date sales at automobile dealers are up only 1.4%.

Gasoline stations, on the other hand, made up for a big portion of this. Their year-to-date retail sales are up 16.8%. It’s all due to higher gas prices at the pump however, not because of drivers somehow wanting to buy that much more fuel for their vehicles. Gasoline prices are now stabilizing however, and retail sales gains are likely to flatten out. This in turn will bring down overall total retail performance statistics.

By The Numbers

Special Note: Statistics Canada has made updates to 2017 numbers, and has also moved retail storefronts of telecom companies out of electronics & appliance stores and into a non-retail category, Telecommunications (NAICS 513). Retail trade statistics have been revised back to January 2012.

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 2.8% of total Canadian retail sales for the 12 months ending August 2018, 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 13.5% year-over-year for the 3 months ending August 2018, but this is much less than the 3.9% gain recorded in the same period a year ago. E-commerce retail sales gains are still in double digits, and are still much higher than for location based retail, but growth is slowing down.

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 August 2018, electronic shopping and mail-order houses had an estimated $9.8 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 August 2018, this group had an estimated $7.2 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $17.0 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 businesses.

For electronic shopping and mail-order houses, an estimated 83.3% 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 come from 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 57.7% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce is 42.3%.

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.

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Louis Vuitton Sees Weekend Crowds with Calgary Opening [Photos]

By

Craig Patterson

-

October 28, 2018

Louis Vuitton Chinook Centre — CHINOOK CENTRE STOREFRONT. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL

Paris-based luxury brand Louis Vuitton has opened its first standalone store in Calgary as it shifts its strategy to open standalone stores in major malls. The beautiful 4,450 square foot CF Chinook Centre store was busy on its opening weekend, according to shoppers in the mall, and its success could lead to other luxury brands looking to open in the centre.

At the same time, Louis Vuitton’s ground-floor concession at Holt Renfrew in Calgary’s CORE shopping centre has closed, marking the end of the brand’s run in the city’s downtown where it has been doing business for many years. The brand operated a small concession at Holt’s former downtown Calgary store which, in 2008, relocated to a much larger space that was originally created for now defunct department store chain Eaton’s.

Vuitton’s CF Chinook Centre store took up four former retail spaces and is located on the mall’s ground level across from the mall entrance to anchor Saks Fifth Avenue, which opened in February of this year. The impressive Vuitton store features a curved facade consisting of a combination of Lacewood in a stitch pattern with brushed copper and pale gold trim with an integrated flower pattern metal mesh.

CHINOOK CENTRE STOREFRONT. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL

LOUIS VUITTON MARKED IN BLUE. CLICK IMAGE FOR INTERACTIVE CF CHINOOK CENTRE FLOOR PLAN

The store includes a room dedicated to travel with an on-site hot stamping machine. For the first time in Calgary, the store features a footwear department for men and women, and it also carries a range of leather goods and accessories. The store lacks Vuitton’s ready-to-wear collections, however, which are only found at its standalone flagships at 150 Bloor Street West in Toronto as well as at the Fairmont Hotel Vancouver.

Retail Insider’s Mario Toneguzzi wrote about the Calgary store’s opening last week, where a retail expert and mall management commented on the opening, as well as what it represents for the centre and the city.

Vuitton’s move to CF Chinook Centre could help landlord Cadillac Fairview secure other luxury brands for the mall, which already houses prestige retailers such as Tiffany & Co., Burberry and Harry Rosen. Nordstrom opened its first store in Canada at CF Chinook Centre in September of 2014 and its other anchors include Saks as well as a Hudson’s Bay store, which offers the most upscale offerings of any Bay store in Alberta.

CHINOOK CENTRE LOCATION INTERIOR. PHOTO: COURTESY OF LOUIS VUITTON / PAUL WARCHOL

CF Chinook Centre sees about 14-million visitors annually. While the downtown CORE might claim higher numbers, many of those are office workers whereas CF Chinook’s footfall is, for the most part, consumer driven. Weekends at CF Chinook Centre can be packed while the downtown core feels a lot quieter.

Louis Vuitton operates stores across Canada. The luxury brand opened its first Canadian store at 110 Bloor Street West in Toronto in 1983, spanning about 2,000 square feet. A second location opened as a concession at Holt Renfrew in downtown Vancouver in 1987 and in 1989, another concession opened inside of the Ogilvy department store in downtown Montreal. Louis Vuitton’s second standalone store in Canada opened in 1996 at the Fairmont Hotel Vancouver and in late 2010, it was expanded to 10,000 square feet, making it the first ‘Maison’ in Canada and Vuitton’s 12th globally at the time (to mark the occasion, the company spent $1.5-million on a party that included a trip on a 70-year old steam engine train).

In Toronto the spring of 2012, Louis Vuitton vacated a 6,000 square foot flagship store at 111 Bloor Street West for an 18,000 square foot ‘Maison’ flagship location at 150 Bloor Street West where it continues to operate to this day. Louis Vuitton also operates concessions at Holt Renfrew stores in Vancouver (which was vastly expanded in 2016), Edmonton, and at two Holt Renfrew stores in Toronto (50 Bloor Street West and Yorkdale Shopping Centre). In Toronto, as well, Louis Vuitton operates a 1,200 square foot concession inside of Saks Fifth Avenue at CF Toronto Eaton Centre (it opened in February of 2016, facing the southwest corner of Queen Street West and Yonge Street) as well as a 3,200 square foot concession at Ogilvy in Montreal.

And while the CF Chinook Centre store is the only standalone location for the brand in Alberta, Vuitton operated a 3,000 square foot store at Banff’s Cascade Plaza shopping centre which closed in the spring of 2011.

Louis Vuitton is picking up the pace with its expansion in Canada. Last fall, it opened a men’s shop-in-store at Holt Renfrew in Vancouver, which remains one of only a handful in the world to date. That Vancouver concession marked the beginning of a significant expansion for the brand in Canada that will continue well into 2019.

Towards the end of this year, Louis Vuitton will unveil a substantially expanded concession at Holt Renfrew at 50 Bloor Street West in Toronto and according to a building application, it will encompass about 2,650 square feet. Standalone units in Edmonton and at Toronto’s Yorkdale Shopping Centre are also in the works, according to Louis Vuitton, and the brand will also grow its presence at the new ‘Holt Renfrew Ogilvy’ which is under construction in Montreal.

Louis Vuitton is a division of luxury conglomerate Louis Vuitton Moet Hennessy (‘LVMH Group’), which includes several leading luxury brands under its corporate umbrella. Louis Vuitton was founded by a man of the same name in 1854, and now boasts a network of nearly 500 stores globally. The company saw revenue somewhere between $9.28-billion and $11.6-billion (US dollars estimates) in 2017, placing it as either the top or second luxury brand in the world in terms of annual sales — Chanel saw sales of nearly $10-billion US dollars last year, according to the company. Italian luxury brand Gucci, which is seeing explosive growth, is expected to surpass both of them by the end of this year after seeing about $7.1-billion US dollars in revenue in 2017.

Leon’s Furniture Beefs Up E-Commerce as it Looks to Shrink Physical Stores

By

Mario Toneguzzi

-

October 28, 2018

Leon’s Furniture Limited, Canada’s largest furniture and appliances retailer, is investing heavily in e-commerce to grow the company’s business in that platform.

It announced last week that Shopify will power all of its portfolio of online stores, including leon’s.ca, thebrick.com and furniture.ca on the Shopify Plus platform, which powers large and growing online stores and brands.

Edward Leon, President and CEO of Leon’s Furniture, told Retail Insider that the company has been in the e-commerce business for well over 20 years.

“Our sister company The Brick started in it before Leon’s did,” said Leon. “So we’ve had experience growing up in the business. It’s undeniable. Obviously there’s continued increased interest and awareness around what the web can do for both the retailer and the consumer at large. It’s something that we’ve embraced and wanted to expand our capability.”

Leon said the company is also working on the development of dedicated apps that will significantly improve customers’ online shopping experience. Some of these enhancements include intelligent room planners, virtual decorating, and augmented reality capabilities where shoppers can place items from the online store against a backdrop of their own rooms. Additional features that will be offered to customers on LFL’s online stores include instant deferred payment options, and enhanced delivery features.

“Emerging technologies and changing shopping behaviour forces retailers to re-think how they operate and transform their business to create a truly seamless shopping experience between the online website and traditional brick and mortar store. To win in the retail space, and specifically in the industry segment in which LFL operates, requires mastering both our chain-wide in-store customer experience and our e-commerce offerings across all of our online properties,” said Leon.

Leon’s Furniture Limited is the largest retailer of furniture, mattresses, appliances and electronics in Canada and operates under the following retail banners: Leon’s; The Brick; The Brick Mattress Store; and The Brick Outlet. With the Midnorthern Appliance banner alongside the Appliance Canada banner, it is also the country’s largest commercial retailer of appliances to builders, developers, hotels and property management companies. LFL has 304 retail stores from coast-to-coast in Canada.

286 FAIRWAY ROAD LOCATION IN SOUTH KITCHENER, ONTARIO. PHOTO: LEON’S FACEBOOK

LEON SAID THE COMPANY IS WORKING ON THE DEVELOPMENT OF DEDICATED APPS

Leon said the company selected Shopify partly because of what it could offer Leon’s but also because of “their willingness to want to be the leaders in terms of refining that customer experience.”

“It aligned itself well with what we were trying to do and so right from the get go it seemed like a very natural partnership,” he said.

“Times are changing especially with the demographics of a younger crowd. More tech savvy. More comfortable dealing over the web than perhaps more traditional customers. It was very obvious to us that we had to be strong because we are Canada’s leader. We are the largest retailer in our category of goods and we’re obviously very protective of that and we don’t want to go backwards. We want to lead the way. So that’s what this whole initiative is about.”

In Canada, in Leon’s industry, e-commerce sales are tracking less than five per cent of the overall business that’s being done which is about half of what it is in the U.S., explained Leon.

“If you want to include accessories and all home furnishing like products, if that’s a $17 billion business, you can do the math to find the size of the market today and potentially where it can be,” he said. “I think we’ve lagged behind the U.S. for many years but I think you’re going to see in the next few years us shortening that gap – the difference between what percentage of business is done online in our industry here versus what it is in the U.S.”

Leon said there are still markets in the West, particularly for Leon’s, and in the East, for The Brick, that the company can grow its physical footprint across the country.

“We might downsize some of our physical requirements from what we have historically done because part of the e-commerce strategy is to augment the in-store experience by means of opening up a virtual unlimited showroom to consumers and therefore not requiring the size of the showrooms that we had in the past which all plays well because in retail your cost of operation is critical to your success and unfortunately rents aren’t coming down too quickly any time soon,” said Leon.

“We have to be mindful of always expanding in a profitable, long-term way that makes sense. And we believe a smaller footprint in addition to whatever augmentation we can add through the web or digital experience in-store is something we’re going to invest in a big way.”

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Food & Drug

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By The Numbers

Canadian E-Commerce Sales

Louis Vuitton Sees Weekend Crowds with Calgary Opening [Photos]

Leon’s Furniture Beefs Up E-Commerce as it Looks to Shrink Physical Stores

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