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Breaking: Montreal-Based Lightspeed Commences Initial Public Offering

LIGHTSPEED CEO AND FOUNDER DAX DASILVA PUSHING THE BUTTON TO COMMENCE TRADING ON THE MORNING OF MARCH 8, 2019. PHOTO: LIGHTSPEED VIA NKPR.

Montreal-based Lightspeed, the powerful cloud point-of-sale system for independent retailers and restaurants, has officially commenced its initial public offering (IPO) which will help the already rapidly growing business further flourish amid considerable success. 

As part of the IPO, Lightspeed issued 15-million subordinate voting shares at a price of $16 per share, resulting in gross proceeds of $240-million (all Canadian dollars). The IPO was increased from $200-million to $240-million with an increase in the initial share price, which was marketed at between $13 and $15 per subordinate voting share. 

The Toronto Stock Exchange (TSX) approved the listing of the subordinate voting shares which began trading on the TSX on the morning of March 8, 2019 under the ticker “LSPD”. Lightspeed founder Dax Dasilva was in attendance. 

The IPO is expected to close on March 15, 2019, subject to the satisfaction of customary closing conditions. BMO Capital Markets, National Bank Financial Inc. and J.P. Morgan Securities Canada Inc. are acting as lead underwriters and joint bookrunners for the offering. 

CIBC World Markets Inc., TD Securities Inc., Raymond James Ltd. and Scotiabank are also acting as underwriters for the IPO.

Rapidly growing Lightspeed is being used by thousands of businesses worldwide, with new innovations continually being added. In December of 2018, Lightspeed announced ‘Lightspeed Loyalty’, the new technology provides retailers and restaurants the ability to create a dialogue so that first-time guests become regulars, and existing customers become more engaged. It’s all done through a single platform which provides the tools to better communicate and target their customers in a personalized way. We recently covered Lightspeed Loyalty in Retail Insider. 

Lightspeed continues to work with thousands of independent retailers and restaurants globally in order to level the playing field against larger retailers. Lightspeed was founded by Dax Dasilva in 2005 in Montreal, and it has grown to nearly 700 employees with global offices in Canada, USA, Europe, and Australia. 

LIGHTSPEED FOUNDER AND CEO DAX DASILVA

In October of 2018, Lighspeed also launched the innovative Lightspeed ‘Retail Success Index’, which is an industry-validated questionnaire that independent retailers can utilize to determine a score for their business that will reveal new insights and opportunities for advancement. The Retail Success Index empowers independents to delve deeper into the current state of their businesses. That includes measuring their stance among competitors by identifying their strengths and granting them knowledge on areas their company can improve. Information gained is useful to retailers, no matter how long they have been in business. The five-minute questionnaire provides valuable information on the spot, and retailers can take the test every few months in order to monitor their growth. 

The company’s other innovations include the recently introduced Lightspeed Analytics, which is geared towards independent retailers and is designed to provide retailers with insights and recommendations into their sales, inventory, employee performance and customer behaviours, with an aim of providing retailers a competitive edge in their industry. We recently profiled Lightspeed Analytics at length in a previous article

Lightspeed’s IPO speaks to the success of the brand, which has seen explosive growth since its inception only 14 years ago. The added funds will provide Lightspeed the opportunity to continue to grow its business and gain market share as businesses adopt Lighspeed’s platforms globally.

“Korean” Variety Retailer ‘Ximivogue’ to Enter Canadian Market

PHOTO: XIMIVOGUE STORE IN QATAR VIA FACEBOOK

Another value-priced Chinese variety retailer will be entering the Canadian market this year, and it has remarkable similarities to other Chinese brands positioning themselves as being “Japanese” or “Korean” that have also recently opened stores in this country. The chain’s name is ‘Ximivogue’, and it appears to closely resemble the Miniso chain which entered Canada in 2017

Ximivogue, which sells Korean-inspired products, will kick off its Canadian expansion with two store locations in Toronto, both located in major regional shopping centres operated by landlord Cadillac Fairview. The website for CF Fairview Mall in Toronto says that Ximivogue will ‘open soon’, as does the website for the upscale CF Sherway Gardens.

The CF Fairview store will span about 1,675 square feet and will be located on the mall’s second level between Saje Natural Wellness and a Coles bookstore, along a mall corridor leading to anchor Hudson’s Bay. The CF Sherway Gardens unit will replace a 1,153 square foot Zwilling J.A. Henckels storefront, located between a Second Cup coffee shop and a Little Burgundy store, also near the mall’s Hudson’s Bay location. Mall maps can be found directly below. Neither mall currently includes Miniso as a tenant.

Brokerage CBRE negotiated both deals under the direction of Jackson Turner and Kate Camenzuli, and they are representing the brand moving forward as it further expands into Canada.

CLICK IMAGE FOR INTERACTIVE CF FAIRVIEW MALL FLOOR PLAN
CLICK IMAGE FOR INTERACTIVE CF SHERWAY GARDENS MALL FLOOR PLAN

The the Ximivogue chain sells a range of goods at relatively low prices, including household goods, clothing, jewelry, cosmetics and beauty products, toys and other small goods, with about 7,000 products in total. Products are positioned as being ‘Korean’, despite Ximivogue being a Chinese brand. 

Ximivogue’s website says that the company has “been investing money and efforts in creating “green consumer products”, which are then sold globally through its franchising network. The company says that its  products “follow the principles of simplicity, sustainability, and high-quality.” 

The company’s website indicates that Ximivogue uses a franchise model as part of its expansion — the company explains that it provides less risk to the franchisor, and as a result more on the franchisee. The franchise model could also explain some of the inconsistency in branding seen in different countries — the company also goes by names ‘Ximiso’ and ‘Ximi Voue’ . Ximivogue’s website states that franchisees “can count on the commercial information and suggestions provided by its mature management team with more than eight years of franchise experience.” 

Ximivogue operates about 1,400 store locations worldwide, including stores in Asia, Africa, Latin America, and Australia. The company also has a single store in the United States, operating at Dolphin Mall in Miami

PHOTO: XIMIVOGUE UNITED ARAB EMIRATES VIA FACEBOOK

The company is headquartered at the Guangzhou International Finance Center in Guangzhou, China, and also has offices in Hangzhou and Yiwu. 

The brand is remarkably similar to Chinese variety retailer Miniso, which had planned to open about 500 stores in Canada over the past several years. Late last year, Miniso’s Canadian division was accused of fraud by its Chinese parent company, which filed to bankrupt the Canadian division to retrieve monies owed. Miniso Canada is under the care of a trustee. 

Some say that Miniso, itself, is copying Japanese brands such as Muji and Uniqlo — Miniso positions itself as a “Japanese lifestyle brand” despite being headquartered in China. “Korean” retailer Mumuso, which is also based in Japan, is said to be copying Miniso. 

Ximivogue is also the latest international retailer to enter the Canadian market by opening stores. In 2018, about 30 international brands entered Canada by opening brick-and-mortar stores, which was down from a record-breaking 50+ that entered Canada in 2017. We’ll continue to monitor international brands as they enter the Canadian market, and will be reporting on yet another one early next week. 

Grocery Concept ‘Market 63 by Coppa’s’ Opens 1st Downtown Store, in Toronto [Photos]

Market 63 by Coppa’s (Image: Coppa's)

Independent grocery chain Coppa’s has opened its first urban concept store in downtown Toronto. The location serves the rapidly growing South Core neighbourhood just south of Union Station, which houses thousands of residents in gigantic condominium towers. 

The store is named ‘Market 63 by Coppa’s’, and it includes a roughly 30,000 square foot retail space as well as an adjacent 66-seat restaurant, which is licensed. The store is located on the second level of the mixed-use ‘One York Street’ complex, which includes an office building, condominium towers with thousands of units, and a commercial podium that was intended to house a two-level Target store. Target never ended up opening in the space, which was subsequently subdivided for several retailers including Winners, a food hall, and now Coppa’s.

The new Coppa’s store refers to itself as the ‘new world of food’, featuring departments for a butcher, dry-aged beef cooler, fish counter, an expansive bakery section, an impressive produce area, a huge selection of cheeses, and even a flower section. Almost everything in the bakery is made on-site. There’s also a ‘Coppacino’s coffee bar and a full-service licensed restaurant called Nonna Francesca’s Ristorante, featuring a menu inspired by the South of Italy. Throughout the space is artwork inspired by the region. 

Being that it is a downtown store, Coppa’s includes a considerable offering of grab-and-go foods and meal kits, with a kitchen overseen by Claudio Aprile of MasterChef Canada. South Core’s youthful demographic in a high-density area means that Coppa’s offerings are a bit different than its two other locations, located in Toronto’s suburbs. 

Those include Toronto locations in Scarborough at 148 Bennett Road and North York at 4750 Dufferin Street, as well as in Vaughan at 3300 Rutherford Road, and at 1700 King Road in King City, in Toronto’s suburbs. 

Sales representative Michael Pelyk represented Coppa’s in the lease deal with the landlord, and Mr. Pelyk is representing the retailer as it continues to grow its base of stores. 

The Coppa family opened their first grocery store in 1963, hence the name ‘Market 63 by Coppa’s’. The first store was in Toronto’s Parkdale area at 1558 Queen Street West. The family’s grocery chain grew to become Highland Farms, and after a disagreement between brothers, the chain was split into two with Louie Coppa rebranding his half with the Coppa’s banner. 

Coppa’s is located in one of Toronto’s most vibrant areas, which is seeing explosive residential growth and is in close proximity to various attractions. A short walk north is the Rogers Centre and Scotiabank Arena facilities which see thousands of visitors for their events, concerts and other activations. Toronto’s Financial District is directly to the north. The area has also seen a flood of residents moving into the area’s condominium towers that have been sprouting up on both sides of the Gardiner Expressway. 

Union Station, as well, is a short walk north of the new Coppa’s. Union Station, which is the busiest single transit centre in Canada, is seeing its own expansion in renovation. Last year a new dining hall and several restaurant concepts opened in the complex, and this year a 50,000 square foot food hall will join them, as well as expanded retail concourses.

Coppa’s will compete with the nearby Longo’s flagship at Maple Leaf Square, which spans about 43,000 on the complex’s lower level. There’s also a small-format Sobeys store to the south at Queen’s Quay Terminal, which saw an expansion and renovation a couple of years ago. 

Opening a downtown store is a risky move for the brand — operating in an urban location is often more expensive than in the suburbs, given the costs of real estate and logistics. Building downtown grocery stores can also be complicated given support pillars for towers above, though the space Coppa’s secured was originally built for a Target store as mentioned above, resulting in an attractive retail space with soaring ceilings and multiple access points.

L.L. Bean Announces Location of 1st Store in Canada

PHOTO: L.L.BEAN

U.S.-based outdoor specialty retailer L.L.Bean has announced its first brick-and-mortar location in Canada will open this year in Oakville Place in Oakville (located between Hamilton and Toronto).  L.L.Bean announced last fall that it had entered into an exclusive licensing agreement with Canadian distributer The Jaytex Group for its expansion into Canada. The agreement brought with it the launch of a Canadian e-commerce division and wholesale partnerships with several prominent retailers.

The 14,205 square foot Oakville Place store will be located in the retail space recently vacated by upscale Toronto-based grocery chain Pusateri’s Fine Foods. Pusateri’s occupied an 18,000 square foot storefront at Oakville Place for about two and a half years prior to vacating in December. The L.L.Bean lease deal at Oakville Place was negotiated by brokerage Oberfeld Snowcap under the direction of Andrew Laudenbach. Oberfeld Snowcap represents L.L.Bean in Canada for its expansion.  

L.L.Bean also recently launched its comprehensive e-commerce website in Canada. Brick-and-mortar retailers carrying the L.L.Bean products include selected Hudson’s Bay, Sporting Life, and MEC stores. 

CLICK IMAGE FOR INTERACTIVE GOOGLE MAP
PHOTO: OAKVILLE PLACE

L.L.Bean partnered with Toronto-based distributor The 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. Privately-owned Jaytex Group was founded in 1978 and features a portfolio of private label and lifestyle brands licensed in Canada. 

Family-run L.L.Bean was founded by Leon Leonwood Bean in 1911 when he developed the brand’s flagship product, the Maine Hunting Shoe, which combines rubber bottoms with leather uppers to ensure one’s feet remained dry while hunting.  L.L.Bean was officially founded in 1912 and has been in business for nearly 107 years. 

The company’s original Maine flagship complex has been open since 1917, spanning 220,000 square feet and is open 24 hours a day, 365 days a year.  The motivation behind L.L.Bean’s always-on hours was to accommodate visiting sportsmen who would drive all night and wanted an early start the following day.  Fun fact: since 1951, the store has not had locks on the door – a true testament to its trust in the community.

 

 
 
 
 
 
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It’s beautiful out there – get your pom-pom on! #BeanOutsider (📷: @prepfordwife)

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In addition to their historic Maine flagship, L.L.Bean operates 41 locations across the United States as well as 10 outlet stores.  L.L.Bean opened its first international location in Tokyo, Japan in 1992 and manages 28 stores and outlets in that market.  The outdoor retailer hosts special events like clinics and demonstrations in all of their stores throughout the year.  It has yet to be confirmed if L.L.Bean will be running similar events in their Canadian stores.

Competitors for L.L.Bean in Canada include retailers like: Bass Pro Shops, Cabela’s, SAIL, and MEC.  It will be interesting to track the Maine retailer’s journey in the Canadian market, especially following reports of combined Bass Pro and Cabela’s stores on the horizon.  These types of outdoor specialty stores tend to exist in large-format standalone or anchor units.  Retail Insider will continue to track L.L.Bean’s progress in Canada following the opening of the Oakville Place store.

Other new additions to Oakville Place’s directory include buybuy BABY a division of Bed Bath & Beyond.  “Brands such as L.L.Bean and buybuy BABY reinforce our position as the go-to destination for Oakville’s shoppers. We are honoured to host Canada’s first-to-market L.L.Bean store,” said Oakville Place General Manager, Carl King.

PHOTO: L.L.BEAN VIA FACEBOOK

“Oakville Place is one of our town’s most recognizable landmarks and has always been a place for communities and families to gather and meet their shopping needs,” stated King.  Oakville Place is managed by RioCan.

L.L.Bean is the latest international brand to enter the Canadian market by opening stores. In 2018, Canada saw more than 30 brands open standalone stores, which was down from a record-breaking 50+ international brands in 2017.

Julia Marchionda

Retail expert and consultant, Julia Marchionda, is a graduate from both the University of Toronto and Humber College. She spent most of her educational career honing her skills in critical thinking, marketing communications, and finding her unique voice in her writing.

With tenures in several areas of retail under her belt, Julia has lead teams in achieving sales goals and allowed herself to become consumed in understanding retail business.  

Battle of the Grocery Retailers Heats up in Bloor-Yorkville [Analysis]

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Toronto’s Bloor-Yorkville area is already home to the highest density of grocery retailers in Canada, and competition is heating up with the recent addition of McEwan as well as the opening of Eataly towards the end of the summer. Existing grocers are also renovating and expanding in an effort to maintain market share. While it’s good news for consumers in the area, some are questioning if all of the grocery stores will ultimately survive. 

There might be room for all of them however, as Bloor-Yorkville’s population explodes with new condominium development in the immediate area which will double the population within a few years. Canada’s busiest subway station is located at the Yonge and Bloor intersection, boasting more than 300,000 daily commuters with plans for an eventual billion-dollar station overhaul. Bloor Yorkville, home to many office buildings, also boasts a daytime population of almost 300,000 people. 

Last month we reported on grocery store McEwan, which opened on the concourse level of First Capital Realty’s 1 Bloor Street East commercial podium (also anchored by Nordstrom Rack upstairs). McEwan offers a curated selection of grocery items as well as an expansive assortment of dine-in options ranging from pizza to a salad bar in an 18,000 square foot retail space with an entrance on Yonge Street. 

McEwan joined an already robust grocery offering in the neighbourhood. A short walk northeast is a Longo’s grocery store at the Hudson’s Bay Centre, which features a mix of grocery and grab-and-go items in a tight 8,000 square foot ground level retail space. 

A block west at the Manulife Centre complex (currently under extensive renovations) is the Bloor Street Market, which is a Loblaw franchise carrying Presidents Choice and other branded products. Located on the basement level of Manulife Place, the 21,000 square foot store is said to be in negotiations to expand and renovate. While details are sparse, the expansion could annex space under an escalator to expand the store by 2,000 square feet — and if the basement level is reconfigured, the store could almost double in size, according to one source. 

Another 50,000 square feet at Manulife Centre will soon be devoted to Eataly, the popular Italian-themed grocerant concept that is expanding globally. Construction on Eataly appears to have been delayed slightly, with the store expected to open towards the end of the summer or early September, according to a source with the company. Eataly will span three levels — a basement level entrance will include retail offerings as well as a street level entrance facing onto Bloor Street, with the 35,000 square foot second level of the podium containing most of Eataly’s offerings. The billionaire Weston family owns 52% of Eataly Canada as part of its Selfridges Group of companies, as well as the local Terroni Restaurant group which will be Eataly’s restaurant partner.

Upscale Toronto-based grocery retailer Pusateri’s Fine Foods operates a cozy marble-clad 5,500 square foot space at the corner of Bay Street and Yorkville Avenue at the base of a high-end residential rental tower, serving affluent locals living at The Four Seasons Private Residences and other luxury buildings in the area. The store opened in 2003 and used to have valet parking (which it lost in 2013 after a battle with the city over sidewalk widths). 

Whole Foods operates a 50,000 square foot store at the Yorkville Village shopping centre (formerly ‘Hazelton Lanes’), which was the Austin-based grocery retailer’s first location in Canada when it opened in 2002. Whole Foods was acquired by behemoth Amazon in the summer of 2017 and modest changes have been made since. The Yorkville store recently saw a partial renovation including new fixtures in lighting, likely in response to the increased competition nearby — Yorkville Village boasts a loyal clientele of affluent locals, some who also frequent the centre’s Equinox fitness centre and SoulCycle spin studio

The Bloor-Yorkville neighbourhood is also home to several smaller grocery retailers. Homegrown Rabba, which is a cross between a grocery store and convenience store (generally measuring between 2,500-6,000 square feet each), operates several locations in the immediate area. Those include a unit about a block north of Longo’s on Church Street and Park Road, a store on Charles Street West and Balmuto Street (across from the Manulife Centre), as well as three stores slightly further away including one on Isabella Street near Yonge Street, one at Charles Street East and Jarvis Street, and one on Wellesley Street between Bay Street and Yonge Street. Rabba stores are open 24-hours a day, 365 days/year and that convenience has resulted in plenty of loyal shoppers. 

Other smaller neighbourhood grocers include US-based Korean grocery chain H-Mart which operates a tiny store at 695 Yonge Street just south of Hayden Street (a few steps from McEwan), and the ‘Orchards Market’ produce market recently opened at Cumberland Terrace with an entrance at the corner of Yonge Street and Cumberland Street, about 240 feet north of Bloor Street. 

As if that wasn’t enough, the neighbourhood’s drug stores will also be offering an expanded assortment of food offerings at some larger locations. Shoppers Drug Mart, which is currently building a multi-level flagship at the southwest corner of Yonge Street and Charles Street West, is expected to offer an expanded assortment of grocery items ranging from frozen and canned foods to meat and vegetable offerings. South of Bloor-Yorkville at the corner of Bay Street and Wellesley Street West in ‘The Britt’ mixed-use development (former Sutton Place Hotel) will be another Shoppers Drug Mart store that will span two levels and occupy about 12,000 square feet. Drug store chain Rexall recently announced a partnership with M&M Foods to add frozen food sections to some larger Rexall stores, though it’s not known if any Rexall locations in Bloor-Yorkville will have these, given most Rexall stores in the area tend to be on the small side. 

Ultimately, the consumer is the winner in the Bloor-Yonge grocery wars. The highly desirable neighbourhood is packed with amenities and as such, boasts a high quality of life for residents in the area that is extremely walkable — as one might expect, ‘Walk Score’ grades the neighbourhood as being a ‘Walker’s Paradise’ with a score of 100. At the same time, the remarkable density of grocery offerings in the area means that competition is fierce — retailers in the area can’t afford to get it wrong with the risk of losing customers to competitors. Grocery retailing is already challenging — margins are often tight and sanitation issues may arise in even the best operators. Not to mention, online grocery shopping is on the rise with home delivery being an option offered by retailers either in-house or through third-party providers. 

Giorgio Armani’s ‘Armani/Casa’ Home Division Opens 1st Canadian Storefront [Photos]

PHOTO: HELEN SIWAK

Vancouver’s Armoury District is now home to Canada’s first boutique showroom of Giorgio Armani’s home line Armani/Casa in Canada. The showroom is at 1656 West 2nd Avenue. The space consists of 2,200-square-feet of retail space, and a large meeting room.

It’s the fourth standalone Armani/Casa location in North America, with other stores being in New York City, Los Angeles, and Miami.

Located west of Vancouver’s popular Granville Island, The Armoury District is known as the city’s newest design district, and it is thriving with creativity. The area is home to designers and architects, décor and furniture showrooms, art and antique galleries, hypercar and luxury vehicle dealerships, and fine food purveyors. The neighbourhood is becoming sophisticated and interesting with many industrial buildings transformed into retail space.

The interiors of the new showroom were designed by the Giorgio Armani interior design studio based in Milan, Italy, and are reflective of the aesthetic that Armani/Casa represents internationally with its muted but sophisticated use of wood, metallic and ceramic marble effects. In addition to room-based vignettes decorated with home furnishings, shoppers can purchase comfortable bathrobes, pajamas, scarves, and velvet slippers.

Several collections will be represented at Vancouver’s new Armani/Casa on an on-going basis. One material making a welcome return is Murano glass as part of the Armani/Casa Exclusive Textiles by Rubelli collection. During the Salone del Mobile in Milano, Italy, in April 2019, new furnishings and accessories will be announced.

Key pieces available include the Club Bar Cabinet with lacquer finishing that takes two artisans 92 hours to complete and the limited edition Logo lamp. Originally conceived and created in Armani’s studio in 1982, the pyramid-shaded lamp is an integral part of the home collection, and was recently released in an edition of 200. Armani/Casa in Vancouver has #0099, and it comes with a hard-bound booklet of authentication.

For decades the Armani name has been synonymous with exquisite taste and Italian style. The Armani/Casa brand embodies simple, but elegant style. Giorgio Armani loves linear design, minimalism interlinked with cultural connotations, and art deco style of the 1930s.

Armani/Casa was launched in 2000 when Giorgio Amani opened his flagship at Via Manzoni 31, Milan. A year later the brand expanded to Paris, New York, and Los Angeles. 2004 saw the launch of the Interior Design Studio by Armani/Casa, due in no small part to the increasing demand by private clients to create made-to-measure design projects. Today the company has a sales network operating worldwide, with stores located in the world’s major cities including recent additions: Tokyo, Shanghai, and Beijing.

Vancouver’s Armani/ Casa boutique showroom is open five days a week from 10 am to 6 pm, overseen by managers Nora Szeleczky and Tunde Szoke and employs professional associates such as an interior designer and two salespersons. All Armani/Casa furniture, accessories, and decors are available for order. Services available include interior design, home styling, deliveries, and installation.

Armani/Casa is planning a hard-launch in late May or early June for its new Vancouver storefront.

Online Purchasing Preferences Vary Across Canadian Cities: Study

Toronto Eaton Centre In the Holidays

From a retail marketing perspective, it’s important for retailers to understand there can be widely varied online shopping behaviours within a city.

The percentage of online shoppers can be quite different in one part of a city from another. Even at the product level there can be huge differences in what customers prefer to buy from one neighbourhood to the next.

So having that information is critical for retailers in making decisions of what products to sell and even where brick and mortar locations should operate – and what that physical store experience will look like.

Mobile Shopping

ClickSpend, powered by the J.C. Williams Group, is an essential new resource for retailers that reveals which products consumers prefer to buy online. But it also reveals differences within cities themselves and what products consumers are buying in those markets – and where.

A recent retail report by ClickSpend and Environics Analytics indicates there can be major differences in the concentration of online shoppers even within a specific market area.

“Absolutely. Take an example like Toronto. There’s certain types of categories where ecommerce is strong in certain segments of the city,” said Michele Sexsmith, Senior Vice President and Practice Leader with Environics.

“There’s 14 different categories of expenditures that we’ve been able to provide the online and the offline spend. And there’s a lot of variability between those individual categories.”

There’s no doubt the trend in the retail industry in recent years is for ecommerce sales increasing as a percentage of total retail sales. And ClickSpend has also found that there’s a great deal of variability across the country between different cities.

But it has also found that variability within those cities as well.

Why is that important? Can it give retailers information on where online shoppers are more likely to live in a city?

“It totally depends on the category,” said Sexsmith. “So if we look at something like electronics we’ll see that the suburbs are surprisingly strong for ecommerce whereas looking at another category of expenditure can be more of a bricks and mortar type shopper in those areas. It totally depends on the category of goods and whether one part of the city is going to be high or low.”

So how do retailers adapt to that data in terms of their physical stores, knowing where the online shoppers are located and what they’re buying? How can they use that data for their physical stores?

“If they’ve got an existing physical store that’s located in an area that has a lot of ecommerce activity for their category they’re going to need to change that experience within the stores. So they’re starting to experiment with these types of things. It’s those areas that would be the perfect pilot areas in order to start testing all these experiential types of retail,” explained Sexsmith.

“They need to change that retail store to provide that reason for that shopper to come in and understand the brand, to take advantage of what that store staff knows about all the products and services – things they wouldn’t be able to get purely from looking at their websites. These are the areas that are primed for getting that deeper dive and understanding more about and testing new concepts in order to get ecommerce buyers coming back into those stores and also personalizing that experience at that store level that’s going to be highly relevant for the future.”

She said this is really the only database in Canada that provides this comprehensive perspective on the market. It’s the gold standard in terms of methods in understanding potential in this retail environment where Amazon is continually taking a bigger piece of the pie.

“It gives retailers that insight and perspective to be able to understand what’s happening in their local area and to understand why store performance is changing year over year,” added Sexsmith.

According to the most recent Statistics Canada report, retail ecommerce sales reached $2.3 billion in November, accounting for 4.2 per cent of total retail trade. On a year-over-year basis, retail ecommerce increased 20.1 per cent, while total unadjusted retail sales rose 1.1 per cent.

How FICO Helps Retailers Become More Efficient Across their Supply Chains

FICO, a leading global analytics company, is helping businesses around the world become more efficient across their supply chain by using predictive analytics and optimization to improve their performance.

“Optimization is an amazing technology. The FICO Xpress Optimization Suite, is the premier mathematical modeling and optimization solution in the world. It’s used for many, many different business solutions.  With supply chain optimization FICO is trying to simplify the complexity, improve the performance and reduce costs,” said Michael Testa, retail and loyalty vertical lead in North America for FICO.

“The challenge within supply chain is it is extremely complex. If you take any mid to large size retailer, they probably have a supply chain that looks like a spider web. FICO can take that data and complexity, utilize predictive models with our business expertise to solve these complex problems. The focus is in many different areas around supply chain optimization, from logistics planning, inventory management or vehicle route planning, as examples. Where do you place your warehouses for example? How to maximize customer service while reducing costs is always a big challenge.”

Testa said “the wonderful thing about optimization is the ability to bring all the variables into play and answer all those questions as well as getting a sense of the return on investment for the business.”

FICO is an acronym of Fair, Isaac and Company which was founded in 1956. William Fair, an engineer, and Earl Isaac, a mathematician, were the original founders of the company which is today based in Silicon Valley. It was created to help businesses focus on making smart business decisions by using math and engineering to do that.

It focuses on analytics, software and consulting. FICO creates solutions for businesses to make smarter decisions in business speed.

Testa said “optimization is enabling FICO’s customers to make smarter business decisions, solve problems and gain increased efficiencies that are needed to survive in the new retail environment.”

“We’re seeing in every industry, especially in retail, your supply chain is highly important both from obviously fulfilling your stores and keeping your customers happy, but also now that most retailers are moving into direct delivery, e-commerce, their supply chain complexity has increased quite a bit,” said Testa.

“And our optimization suite allows companies to increase their effectiveness and their efficiency with increased complexity allowing them to keep their costs down within the current infrastructure that they have.”

“The optimization suite has different components. We have our own modelling language that utilizes the data to develop the analytics that requires optimization and then we execute those models to predict out the output of what is going to happen and based upon that companies can then make a decision to what is the right next action to take to gain those efficiencies in play.”

“The way the optimization suite works is it has different variables of the platform. We have our own modelling language that actually utilizes the data and comes up to develop the analytics that requires optimization and then we execute those models to basically predict out the output of what is going to happen and based upon that companies can then make a decision to what is the right next action to take to gain those efficiencies in play.”

The suite allows business users to get involved in the decision making. Testa said FICO has some of the largest e-commerce retailers in the world who use the software to decide everything from how they get product from the warehouse to customers with same-day delivery to how they place products within their warehouse environment and even how they handle internal shipment through their own delivery network.

The bottom line is efficiency, supply chain management can have a big impact on a company’s bottom line by achieving a lower cost while enhancing the customer experience.

“Many clients have achieved this through understanding, using the data with the analytics and gaining those optimization efficiencies while keeping the manpower and the infrastructure that they have in place,” said Testa. “Allowing companies to get to the next level of efficiency.”

He said optimization technology is being used today by smaller companies as well as the giants.

“Any business that has a certain amount of complexity and complexity is multiple store locations, multiple warehouse locations, the complexity starts becoming exponential within a supply chain environment very quickly,” said Testa.

FICO is starting to combine the FICO Xpress Optimization Suite with the FICO Real-Time streaming analytics platform enabling businesses to make decisions in real time. The optimization suite would take information as it occurs in real-time, especially in a supply chain environment, and enable the company to make real-time decisions to find the most efficient output within the data.

“Because today’s reality is, businesses are moving so quickly you can no longer wait to make decisions over six months to see how they play out – having the streaming technology tied in with optimization to make decisions and the ability to adapt to your situation in real time,” added Testa.

*Partner content. To work with Retail Insider, contact Craig Patterson at: craig@retail-insider.com.

Valentino Unveils 1st Canadian Flagship [Photos]

VALENTINO YORKDALE PHOTO: MICHAEL MURAZ

Italian luxury brand Valentino has officially opened its first standalone Canadian flagship at Toronto’s Yorkdale Shopping Centre. The impressive storefront is the latest international brand to enter Canada through Yorkdale, as Valentino expands its presence in Canada amid considerable popularity. 

Located across from an expanding Holt Renfrew store at Yorkdale, the new Valentino boutique spans more than 4,600 square feet on one level. The store is wedged between Canada’s first Bottega Veneta flagship, which opened last fall, and Aritzia-owned Wilfred. 

All womenswear and menswear product categories for the Valentino brand are featured in the beautiful space, including ready-to-wear, accessories, leather goods, footwear and fragrances. 

The store is divided into sections — at the front of the boutique is an area for bags and other accessories. Towards the middle is a shop-in-store area for women’s footwear, with men’s footwear displayed nearby. Men’s and women’s ready-to-wear fashions are separated into their own departments within the new store as well. Prices run well into the thousands, catering to wealthy shoppers that continue to descend on the shopping centre which a recent Retail Council of Canada study identified as being the most productive in Canada in terms of annual sales per square foot.  

The Yorkdale flagship reflects Valentino’s latest store design which was first unveiled in a flagship in Milan in 2012, which features ample use of grey Palladiana Terrazzo on walls and flooring throughout the space, which has become a trademark for the brand. That contrasts with oak shelving and fixtures accented with glass, as well as plush carpeting and velvet furniture offering a comfortable place to relax. LED lighting illuminates shelves in the store, and overhead, circular lighting fixtures brighten the space. 

The store was designed by Valentiono’s Creative Director Pierpaolo Piccioli, in collaboration with David Chipperfield Architects.

CBRE represented Valentino under the direction of Senior Vice President Arlin Markowitz of the Toronto Urban Retail Team, as well as Andrew Goldberg, Vice Chairman of CBRE in New York City. Oxford Properties Group is the landlord of Yorkdale Shopping Centre. 

The Lyst Index’ recently ranked Valentino as the ninth hottest brand in the world, and the brand has been expanding its base of stores rapidly for the past several years. Valentino operates 19 storefronts in the United States and nearly 200 worldwide, with more on the way. Some Valentino units can be quite large — a San Francisco flagship, for example, spans about 10,000 square feet, and the New York City flagship on Fifth Avenue is about twice that size.

CLICK IMAGE FOR INTERACTIVE YORKDALE MALL FLOOR PLAN

Valentino is also available in Canada at several of Canada’s most exclusive retailers, some of which have ‘hard shops’ dedicated to the brand. Valentino has been growing its Canadian distribution steadily over the past four years. In September of 2015, Nordstrom unveiled separate shop-in-store boutiques at CF Pacific Centre in Vancouver for Valentino accessories and women’s fashions, which was followed by a dedicated Valentino men’s area, which was a first for Nordstrom.

In February of 2016, Saks Fifth Avenue opened its CF Toronto Eaton Centre flagship, which also featured separate shop-in-stores for Valentino accessories and women’s ready-to-wear. In the fall of 2016, when Nordstrom opened its Yorkdale store, it also included separate Valentino shop-in-stores for accessories and women’s ready-to-wear. Most recently, Valentino unveiled a new accessories boutique at Holt Renfrew in Vancouver. 

Many Holt Renfrew stores also carry a range of Valentino women’s and men’s ready-to-wear, as well as accessories and shoes. A handful of other prestigious retailers carry the Valentino brand in Canada, which has been present in retail and wholesale for decades. 

For example, in the 1980’s and 1990’s, Valentino had several licensed boutiques in Canada. In Toronto and Montreal, fashion retailer ‘Chez Catherine’ operated Valentino boutiques at her stores at Toronto’s Hazleton Lanes and at Montreal’s Ogilvy. In Vancouver, Farideh French Imports operated two small Valentino boutiques in the downtown core — one was at 723 Burrard Street in a space now occupied by Tiffany & Co., and another was located on the third level of the Pan Pacific Hotel (which also featured a small luxury shopping area that also housed a boutique for Celine).

Toronto’s Yorkdale Shopping Centre is adding more first-to-Canada retailers than any single location in the country. More brands are on the way as landlord Oxford Properties attracts retailers to its highly productive centre, which is on track to be the top-selling mall in North America with nearly $2-billion in annual sales and productivity approaching to $2,000 per square foot annually. Recent first-to-Canada openings included Bottega Veneta and Chloé, both considered to be flagships. Yorkdale is also dedicating more space to luxury brands on its premises, with corridors being dedicated to high-end brands extending beyond the mall’s initial ‘luxury wing’ extending northward from the main entrance of Holt Renfrew. 

CF Market Mall Continues Transformation with New Full-Service Restaurants and Entertainment

PHOTO: CADILLAC FAIRVIEW

Calgary’s CF Market Mall continues to evolve as a destination for consumers not only for shopping but entertainment as well.

The popular shopping centre in the northwest part of Calgary has inked a deal to bring The Keg Steakhouse + Bar into its fold with an expected opening this fall to coincide at the same time with the opening of a premium movie theatre by Landmark Cinemas.

“The Keg is going to be on the exterior. We’re really excited about The Keg obviously. It’s on the southeast corner of the mall. It’s going to be a big Keg. It’s going to have an outdoor patio and it will work really well,” said Darren Milne, the mall’s general manager.

CLICK FOR INTERACTIVE “CF MARKET MALL” MAP

“About three years ago we talked about what CF Market Mall is going to be. CF Chinook’s always going to be number one in the market and Chinook’s always going to get your luxury brands. CF Market Mall is number two in the market and we’re well ahead of all the other competition in terms of that placement when you measure by productivity.

“So our feeling is that the way that we’re going to continue to grow is we have to do a better job at driving nighttime traffic. That’s where the Boston Pizza deal came from. They opened this past November. That’s why The Keg deal came in too because we wanted to have a nicer restaurant for the evening and that’s where the Landmark theatre deal came as well. Landmark is going to start construction late March, early April with likely a September opening.”

The new five-screen theatre is going in the southwest corner of the shopping centre in the space formerly occupied by Staples.

Milne said that continuing with that strategy the mall will probably be looking at another entertainment option next year to just continue to drive that nighttime traffic.

CF Market Mall, which opened in 1971 and has about 200 stores and 900,000 square feet of retail space, is co-owned by Cadillac Fairview and Ivanhoé Cambridge.

The mall’s productivity at the end of December was $901 sales per square foot which was about two per cent higher than the previous year. According to the Canadian Shopping Centre Study 2018, by the Retail Council of Canada, CF Market Mall was ranked 17th overall in Canada with sales productivity of $899 per square feet as of the end of June 2018. CF Chinook Centre was eighth at $1,081.

“There’s a lot of construction going on in the mall right now,” said Milne.

“We relocated Sunrise Records because we wanted to relocate Foot Locker. The new Foot Locker store is being built right now. The other store that we’re building right now is Poppy Barley which we’re pretty excited about. They’re obviously higher-end hand bags and boots and things like that and they don’t have a lot of stores in the market.”

The new Foot Locker and Poppy Barley stores are expected to open by the end of April or early May.

Milne said CF Market Mall has also been working on two other major lease deals that it is expecting to announce soon.

Over the past year or so, it has repurposed the old vacant Target space to house HomeSense, Sporting Life and Zara. SportChek has also expanded and Saks OFF 5TH has opened.

“I think retail as a whole has been a little tougher in the last couple of years. We’ve seen a lot of bankruptcies which creates a lot of vacancy. Shopping centres are in the business of having high occupancy and low vacancy. When we have high occupancy and low vacancy we’re a much more profitable business,” said Milne. “When you have as many bankruptcies as we’ve had that puts downward pressure on lease rates and you also see downward pressure on overall mall sales.

“I know what we’re really happy about in this past year is we’re starting to see a bounce back in sales. We’re off the bottom from what we were. Retail sales are starting to get better. Mall traffic has been better. It’s still not great and there are still some challenges in the market. We saw just (recently) Payless, Gymboree and Things Remembered have all gone bankrupt. We only had Payless and Gymboree of those three.”

Milne said CF Market Mall will continue to be a super regional shopping centre that will continue to be number two in the market with a strong retail focus.

“Having said that, some of the leasing that we’re doing is more on the service side of retail. A good example of that is the wing by Shoppers Drug Mart has become a little bit more of a service wing in terms of Hakim Optical was added to replace the Telus store. The Rogers store relocated,” he said.

PHOTO: CADILLAC FAIRVIEW

Many shopping centres have started to use space on their properties for mixed-use development to include residential and office. Will CF Market Mall look at that opportunity in the future for its property?

“Do you want to do residential on the site or not? Do you want more office on the site or not? I think we are three or four years away from starting those discussions. What’s unique about CF Market Mall is we are surrounded by four residential communities and so we like to be cognizant about what we do on the site and how that impacts the residential communities around us. We work closely with those communities,” said Milne.

“So if we’re going to enter into a process that we are going to talk about mixed-use on the site, part of that has to be to include the communities in those discussions and how that looks as well.”