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HomeMD To Revolutionize Medicine as it Expands Nationally

Image: HomeMD

Welcome to the next evolution of family medicine in Canada.

Toronto-based HomeMD is a revolutionary medical app for families in Toronto providing unlimited medical house calls, walk-in clinic visits and video consultations – described by Alon Birshtein, CEO of HomeMD Technologies Inc., as “family clinic 2.0.”

ALON BIRSHTEIN. PHOTO: LINKEDIN

Birshtein said the unique platform is designed to make people’s lives easier and healthier.

“We have basically three different services. We do house calls. We do telemedicine and we have a physical clinic in Yorkville,” he said. “What our app allows users to do is not only access and book all three of those things including having the telemedicine within the app as some part of our platform but equally as important it also allows the users full visibility into their health records in real time. So all of your prescriptions, all of your encounter notes from every appointment, all of  your referral notes, diagnostic labs. Everything that is part of your health record you have it in the app available in real time.”

The company was incorporated in January 2016 and officially launched about January 2018.

Birshtein said the powerful new software is the next step in patient-centered care, reflecting the company’s goal to design family practice around the patient and to provide the treatment the patient needs, when and how they need it.

“We plan to expand nationally and then internationally eventually,” he said. “Anybody that’s been part of the Canadian healthcare system knows that we’re amazing in many things but we’re not amazing in many other things. Basically what we’re trying to do is bridge the gap between them. For example, our consultations, nobody’s ever rushed. We actually take our time to do exactly what we need to do to give the patients the best care. Follow ups are very important to us.”

Image: HomeMD Technologies Inc.

The company uses three nurse practitioners. Birshtein said the use of NPs is really for two reasons: “first, we know that while doctors study disease and how to cure them, nurse practitioners study people and how to heal them. And second, NPs make ideal primary care providers because of their holistic approach with clients which includes health education, risk identification and reduction, treatment of illness and preventive care through healthy lifestyle choices. For these reasons, NPs bring a comprehensive perspective to healthcare.”

“Their vision is aligned with the level of care we’re trying to achieve and in practice we’ve actually seen that materialize,” said Birshtein.

“Let’s just say you need to talk to your practitioner. You open up your app. You book one of three appointments. We usually start with telemedicine. That’s kind of like your first point as it’s the most efficient and then for whatever reason we can’t address the problem on telemedicine and then the patient has the choice of either we come to you or you come to us – whichever is more convenient to them. And everything is included within our monthly subscription model.”

The charge is $50 a month for adults and $25 a month for children under the age of 18.

Image: HomeMD Technologies Inc.
Image: HomeMD Technologies Inc.

The app was “soft launched” in October of 2017 and in January it was opened up to the public. Birshtein said the company started its marketing campaign in March of this year.

HEAD NURSE PRACTITIONER TARA MCLEOD

The app is available for people within the Greater Toronto Area.

Patients can access their health records, immunization records and notifications regarding upcoming immunizations. They can schedule a video consultation for all their health-related questions instead of going to a clinic. The app entitles people to unlimited visits to its state-of-the-art medical clinic or unlimited medical home visits.

Birshtein said the idea for HomeMD came after a personal experience where his daughter was getting ear infections. Over the course of a few months he had numerous visits to the doctor’s office.

“Countless and countless hours. The last time I just thought to myself there’s got to be a better way to do this so it’s efficient for the parents, it’s efficient for the children, more efficient for everyone,” he said. “From that kind of point slowly but surely we materialized it to a well-rounded service that we offer. There’s a statistic that about 70 per cent of things people go to their family clinic for can be handled using telemedicine.”

Inside Sporting Life’s 1st Montreal-Area Store [Photos]

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Toronto-based sport and fashion retailer Sporting Life has opened its first store in the province of Quebec with the opening of a one-level store at Quartier DIX30 in suburban Montreal. It is Sporting Life’s 11th store location as the company looks to double its store count over the next several years.  

The impressive looking store, which is located in the ‘Square DIX30’ part of the commercial complex, carries a wide assortment of sporting goods and related fashion products from an array of designers, some of which are quite high-end. The store’s interior is similar to that of other recently opened Sporting Life stores, which feature attractive bright lighting and warm interiors with accents of wood and other natural materials. This article includes several photo galleries that were supplied by Sporting Life. 

The Quartier DIX30 Sportig Life spans 29,690 square feet between Apple and Michael Kors in a retail space once occupied by Holt Renfrew’s now-shuttered HR2 off-price retail concept

Quartier DIX30 is a unique outdoor ‘lifestyle’ shopping complex that is a combination fashion mall and power-centre. The centre is gigantic, occupying more than 2.7 million square feet of retail in the suburban community of Brossard. The centre boasts more than nine-million visitors and more than 10,000 parking spaces, and houses approximately 300 retailers and restaurants. Major anchors include WalmartCanadian TireRona and Cineplex

Sam Winberg represented Sporting Life when he was with brokerage Northwest Atlantic, which was recently acquired by Jones Lang LaSalle (JLL). In Western Canada, Chris Wood was working with Sporting Life’s expansion and he, too, is now part of the JLL team based out of Vancouver. Mr. Wood negotiated a deal that will see Sporting Life open its first store in British Columbia early next year at ‘The Amazing Brentwood’ in Burnaby, just east of Vancouver. 

Oxford Properties owns and manages Quartier DIX30 and Sporting Life’s move into the centre marks the fourth Oxford Properties-managed centre to feature Sporting Life as a tenant. Other Oxford malls housing Sporting Life stores include Hillcrest Mall in Richmond Hill, Ontario (October of 2016), Southcentre Mall in Calgary (October 2016) and most recently, Sporting Life unveiled an impressive store at Toronto’s Yorkdale Shopping Centre in the fall of 2017. 

Besides the four locations currently operating in Oxford malls, Sporting Life operates stores on Toronto’s Yonge Street (2665 Yonge Street and ‘Bikes & Boards’ at 2454 Yonge Street) as well as at Toronto’s CF Sherway Gardens (which relocated to a new space in September of 2015), Collingwood ON (222 Hurontario Street), Markham ON (CF Markville), Vaughan ON (Vaughan Mills), Ottawa (Lansdowne) and at CF Market Mall in Calgary, which opened in the fall of 2017. 

Sporting Life will further expand by opening stores in Quebec — Maxime Frechette informed us that, at the opening of the Quartier DIX30 store last Thursday, the company said that more Montreal-area stores are in the works and that a location at CF Carrefour Laval, north of Montreal, had already been secured. 

In a previous interview with Sporting Life’s President/CEO/co-founder, David Russell, he said that Sporting Life will look to eventually operate about 20 stores Canada-wide. He explained that the Sporting Life brand will become truly national as it expands into the Vancouver/British Columbia market in 2019, with plans for three store locations in the Lower Mainland. While the Calgary market is adequately served with its two stores, an Edmonton location was a goal for the company, he said, though a deal for a downtown ‘ICE District’ location is said to have since fallen through. The Greater Toronto Area has room for between two and three more Sporting Life locations, according to Mr. Russell, and the Montreal region could eventually see as many as three stores as well. Store locations will ideally be in the 44,000 square foot range, he said. 

In an interview last year with Marina Strauss of the Globe & Mail [Paywall], Mr. Russell revealed that Sporting Life’s current annual revenue is about $160 million annually (a quarter of which is said to be from the Canada Goose brand), and that the company intends to eventually see sales numbers of about $400 million from its 20 or so stores. Sporting Life is profitable and store sales are increasing at low-single-digit rates. E-commerce currently makes up about 15% of sales and Mr. Russell told Ms. Strauss that he expects that number to reach about 20%. 

Founded in 1979, Sporting Life sells apparel and footwear, as well as equipment geared towards runners, cyclists, skiers, snowboarders and hikers. It has a large selection of outerwear, fleece and coats from popular brands MonclerCanada GooseArc’teryx and The North Face, among others. It also carries a mix of high-end and casual clothing brands such as BarbourBognerHugo BossMackageJohn Varvatos and others. Fairfax Financial Holdings Ltd. bought 75% of Sporting Life in December of 2011.

5 Canadian Retail Startups With Awesome Branding

By Patrick Foster

Entering the ecommerce industry has never been easier. With the rise of easy-to-use online store builders and strong networks of entrepreneurs sharing knowledge and wisdom online, it’s possible for anyone to join the ecommerce fray.

Indeed, ecommerce itself has virtually become a commodity — you can literally buy up and sell ecommerce businesses in a matter of moments —  just as you would buy and sell materials, services, and clothes. In such a saturated market, how is it possible to achieve business success?

The answer lies in branding. By crafting a distinct business identity that sets you aside from your competitors, you can draw in customers and stand out in your market niche. To help you achieve this branding success, we’ve listed five Canadian retail startups and identified exactly what makes their branding so awesome.

Frank And Oak

Frank And Oak have been so successful they’ve grown from an ecommerce site in 2012, into an online powerhouse with 24 brick-and-mortar stores worldwide today, even in the face of generally lacklustre retail growth.

What makes Frank And Oak’s branding awesome?

Frank and Oak Website

Frank And Oak have an exceptional brand message, encapsulated neatly in their tagline: “Designed in Canada, made for good living.” Their message is tailored towards providing products which are both functional and stylish.

A core brand message is their promise to be sustainable and to reduce their carbon footprint. Their home-page displays the tagline ‘Cruelty free and made from recycled ingredients’ and Minimal is a line of clothing made from primarily eco-friendly methods.

Another core value proposition is their dedication to being a trusted style advisor to their customer. The company offers guidance and advice throughout the purchase process, both online and instore.

Endy

Founded in 2015, the Toronto-based mattress retailer, Endy was named the fastest growing retail company in Canada, on the 2018 Startup list. Endy began life as an ecommerce store however has subsequently exploded and now includes several brick and mortar stores throughout Canada.

What makes Endy’s branding awesome?

Endy Website

Endy is proud of their Canadian supply chain and uses it heavily in their branding strategy. Their website, marketing materials, and packaging all include heavy use of a Canadian flag. They reinforce the message by using Canadian influencers and athletes as brand ambassadors.

Everyone loves an underdog. Endy plays on the David and Goliath story and places themselves as the underdog competing against American goliath, Casper. Their clever use of small stores reinforce this idea, when compared to the mega warehouses and storefronts of established Canadian retailers, such as Sleep Country. This marketing ploy is working, and Endy is reported to already generate 10% of the revenue of Sleep Country.

Whilst the mattress scene continues to get more competitive, Endy’s founders are staunch believers that their constant innovation to design the best mattress for customers will win the race. Their website defines the steps to “design an amazingly comfortable mattress with Canadians in mind”.

Endy also defines its audience and targets them well on social media. Endy has positioned itself as a hipster mattress for millenials. Affordable, convenient, easy to shop for online, all with celebrity endorsement and a strong social media presence.

Article

Vancouver-based furniture retail startup, founded in 2013, is projected to generate $200 million in 2018. This is an excellent Canadian retail startup, with extremely effective branding. From the tagline, to the brand story, Article is a startup with a clearly defined branding strategy.

What makes Article’s branding awesome?

Article Website

The brand’s tagline succinctly sums up their message: Spend Less. Live More.

Article’s mission is to deliver high quality, modern furniture, at a much lower price point. They achieve this by cutting out the middleman and delivering direct to the consumer.

The logo, typography, imagery and website match the brand vision for simplicity, whilst the products simple tones and clean lines neatly align with their audience.

Their desire for simplicity and ease of purchase is echoed throughout their content. Their copy includes statements such as ‘No showroom. No sales people. No unnecessary layers’. And, their shipping policy, which is flat rated across North America, screams simplicity and efficiency.

Mejuri

Toronto-based Mejuri launched in 2015 as a direct to consumer fine jewellery ecommerce store. Mejuri has seen explosive growth due to its excellent branding and marketing. Since launch, the company has seen their revenue grow year over year by 5X.

What make Mejuri’s branding awesome?

Mejuri Website

Mejuri have a clearly defined customer persona: millenial women. They focus on making jewellery more accessible to women by bridging the gap between fine jewellery and cheap trinkets.

With regularly updated stock and affordable price points, Mejuri wants women to buy their own jewellery instead of waiting for a man to buy them a gift. Their branding strategy has clearly paid off as currently a whopping 89% of transactions are by women.  

A key component to Mejuri’s branding strategy is their interaction with their customers. They are very engaged with their customers, involving them in product feedback via email, text and social media. Customers are central to product development at Mejuri who state on their About Page: “Our inspiration comes from you; real, smart, mindful women”.

A final pillar of Medjuri’s brand strategy is ethical practice. Their brand message includes empowering designers and social responsibility through ethical practices.

Inkbox

Toronto-based startup, Inkbox, is also an outstanding example of a Canadian retailer with awesome branding. The company reinvented tattoos with their non-permanent tattoo which can be applied at home and fades after 18 days.

What makes Inkbox’s branding awesome?

Inkbox

The company uses influencer outreach as a core component of their branding. Influencers naturally provide images, which builds up a resource of lifestyle imagery of the tattoos in use on different skin types, different body locations, and different tattoo styles for the company. The use of influencers makes the startups imagery appear natural, relaxed and trendy.

Inkbox also have a effective social media plan, exemplified spectacularly in their savvy Instagram marketing. Their feed is awash with superb user-generated content that engages their customers and lets them know they are valued — superb.

Using clever slogans such as; “Temporary bad decisions” and “For people with commitment issues”, Inkbox are able to position themselves as a likeable brand, with a funny personality.

Branding is nine tenths of business, and the examples above have nailed it. Which Canadian retail startups do you think have awesome branding?


Patrick Foster

Patrick Foster is an expert writer from Ecommerce Tips — an industry-leading ecommerce community that shares the latest insights from the sector, spanning everything from business finances to content marketing strategies. Check out the latest posts on Twitter @myecommercetips.

European Boutique to Overhaul CF Toronto Eaton Centre Store

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Toronto-based multi-brand jewelry retailer European Boutique has revealed that it will be renovating and expanding its CF Toronto Eaton Centre store to include luxury-branded shop-in-stores for Breitling, Montblanc and Zenith. European Boutique’s construction begins shortly with an expected completion before the new year.

European Boutique already features a prominent corner location on Level 3 of CF Toronto Eaton Centre (featuring an impressive OMEGA boutique-concept), and its facade will become even more noticeable after the renovation.

Luxury watch brand Breitling, for example, will get its own shop-in-store at European Boutique that will feature a branded facade facing onto the mall corridor. The new Breitling storefront and shop-in-store will be Canada’s first to feature Breitling’s newest design concepts (recently unveiled at its boutiques in Switzerland and Singapore – pictured below). The new storefront will be Breitling’s second storefront presence in Canada.

European Boutique will expand its space further into the mall in order to accommodate the brand expansion, bringing its size to approximately 2,200 square feet. Montblanc’s expansion within the store will provide the brand with what will be Montblanc’s largest format in Canada outside of its own boutiques. Montblanc’s expansion will showcase the brand’s small and large leather goods, timepieces, pens and stationary.

The storefront will feature design concepts similar to the recently renovated European Boutique at CF Sherway Gardens, including a new marble encased 14-foot-wide TV display wall.

In the fall of 2017, European Boutique’s CF Sherway Gardens store expanded to include an official boutique for Montblanc, as well as shop-in-stores for TAG Heuer and Gucci watches/jewelry (pictured above). The Montblanc boutique has been a welcomed addition to CF Sherway Gardens and the brand’s expansion within European Boutique at CF Toronto Eaton Centre hopes to build upon that success with a full line of product offering for Toronto’s Financial District.

European Boutique operates four stores in the Greater Toronto area — besides the CF Toronto Eaton Centre store, it has locations at CF Sherway Gardens, Yorkdale Shopping Centre, and at Square One in Mississauga. The company also unveiled (in a partnership) Canada’s first Breitling watch boutique at Yorkdale last year, which is adjacent to European Boutique’s existing store in the mall. European Boutique also unveiled a corner retail space for luxury watch brand OMEGA that connects to its Yorkdale store.

Canadian Grocers: Get Ready to Join the Blockchain Party

In the wake of this year’s large E. coli outbreak, Walmart notified its leafy green suppliers that they must be using blockchain technology to trace their products before the end of 2019.

Walmart, one of the world’s largest retailers, has been piloting blockchain projects with IBM for the past 18 months. It is banking on this relationship to put pressure on the entire sector to give consumers what they want from the food industry: more transparency.

In Europe, Carrefour also recently began using blockchain to track food products on several of its product lines.

Read more: Everything you need to know about fresh produce and E. coli

The whole idea is to better manage food recalls, farm to fork and back, and also to tackle the intricate issue of food fraud, which is receiving an increasing amount of attention.

Meanwhile, many others are wondering if the investment is worth it. Consumers tend to want many things from the food industry without paying for them.

The power of blockchain

Blockchain is about data, but it is mostly about accountability through enhanced digitalized transparency. With blockchain everyone knows what’s happening all at once.

To use a simple analogy, think of blockchain as a hockey rink. All the data is on the ice, protected by the boards so that it can’t be altered. Everyone participating in a blockchain is in the stands. The activity on the ice lets everyone else know who is buying from whom, when, at what price and volumes.

As a result, a recalled product can be traced back in seconds instead of taking days. It took investigators days to trace the source of an E. coli outbreak to contaminated romaine lettuce. They had to look through documents to find the source and the potential causes, all the way up the food chain. It would have been managed quite differently with blockchain.

Food safety is an obvious driver for blockchain, but food fraud appears to be what is moving the blockchain agenda much faster these days.

Why pay extra?

Blockchain technologies have been used in other sectors, but they have only recently entered the food sector.

Food safety was never going to be enough for consumers to embrace blockchain. Consumers expect safety and don’t want to pay more for it. Why pay extra for a safety belt when buying a car? Food safety may have never had market currency, but food authenticity does.

Fraudulent products can compromise brands and the viability of a company in a heartbeat. We have seen many cases already around the world.

Food fraud is difficult to measure, but it has arguably kept food prices lower, allowing some companies to cut costs and offer lower price points.

Economically motivated adulteration is a growth killer, something Walmart and Carrefour both know. To increase sales, companies must eliminate fraudulent food products from their shelves, and blockchain technologies can provide the perfect antidote.

Jumping on the blockchain bandwagon

How better to deal with food fraud than by making the whole system more transparent?

Transparency in the context of blockchain, however, is neither absolute nor unconditional. Each solution will offer a different level of transparency depending on how the system is set up. This is likely why grocers are jumping on the blockchain bandwagon, to exercise their power with the supply chain and generate their own rules of engagement.

It is also likely making everyone else less comfortable, including processors and producers.

Read more: How technology will help fight food fraud

If food fraud is properly addressed, growth in the food sector can be expanded. Over the next decade or so, we should not be surprised to see the disruptive nature of blockchain technologies generate tensions among grocers, processors and producers as they try to cope with grocers’ impositions.

Other sectors made traceability a priority decades ago. Drugs, car parts, minerals and so on can be tracked to their sources in seconds. Consumers know the technology exists and are putting the pressure on grocers. It’s time for the food industry to catch up.

Why Franchising Could Be the Answer to Retailing Cannabis in Ontario

By Frank Robinson

People across Canada this week will walk into stores and legally purchase marijuana. But not in Ontario. A recent and radical restructuring of the cannabis retail regime from public to private, though welcome by many, has left the largest market for cannabis consumption in Canada the least prepared.

Ontarians will instead make their marijuana purchases online through the government-run Ontario Cannabis Store, unable to make any in-store purchases until next April and after the province consults with municipalities, law enforcement, and stakeholders to determine how a privatized bricks-and-mortar model should roll out.

Without question, a slow out-of-the-gate provincial pot monopoly as proposed by the prior government would have been an anachronism destined to miss the mark, to leave consumers underserviced and disinterested, and to shutout a dynamic force for growth in the private sector.

Regardless, what’s in store for Ontario’s pot shops remains hazy.

To spur and keep a vibrant and competitive industry that is capable of satisfying demand while stamping out the black market and protecting vulnerable communities requires a retail pot plan that allows for bricks-and-mortar development to be rapid and geographically dispersed. Harnessing the resources and spirit of independent operators can play an essential role in satisfying those goals. 

An established web of independently-owned businesses that can be successfully managed and responsibly governed within a centralized system lets many small business owners participate while ensuring regulatory control and experiential consistency. This is how the franchise retail model works.

By definition, franchising is a business method used for distributing products or services across a network of independently owned outlets that are linked by one operational control and unified by one brand or trademark. The brand owner, or franchisor, is responsible to develop and sustain a business system, including demand for its product, which it licenses to its franchisees. In turn, franchisees are tasked to establish and operate a branded and local outpost, which sells the product in accordance with the system. Franchising is built and flourishes on the very concept of centralized controls governing independent operations.

For decades, franchising has distributed our favourite hamburgers, pizza, and coffee and the model’s legitimization has been quietly but steadily pushing into the businesses of hotels, vehicle dealerships, fuelling stations, and our public services for healthcare, childcare, and education. Using franchising instead of a more ownership-concentrated approach can allow aspiring small business owners to get into the game as franchise operators, skip the growing pains, and reduce the risk of failure. Retail growth through cannabis franchise development would bring particular benefits to cannabis franchisors, who may not necessarily be adept at retail operation but have developed a demand for products and seek to capture market share by creating branded distribution networks to sell those products.

This type of royalty-generating network has created immense value and wealth in recent years for the private and public owners, building highly profitable branded networks, in part by acquiring smaller or accretive brands along the way.

Franchising will allow more aspiring small business owners in Ontario to own a stake in cannabis sale and distribution, granting access to this emerging and lucrative opportunity that would have otherwise been reserved for government or conglomerates. Wanting to maximize that opportunity and protect their investments, franchise operators should be more inclined to operate good businesses, engage their community, and respect the rules.

Canada’s burgeoning cannabis industry has mostly spent the last few years developing production capacity and is now looking to get its wares quickly into a nascent and competitive marketplace. Franchising could be the answer.

Frank Robinson is a partner in the business law and franchise law groups at Cassels Brock where he practises business law with a focus on franchising, licensing, distribution and intellectual property and provides counsel on mergers and acquisitions, and general corporate, commercial and contractual matters. He can be reached at frobinson@casselsbrock.com.

South Korean Cosmetic Brand ‘Innisfree’ Looks to Enter Canada with Retail Stores 

INNISFREE UNION SQUARE LOCATION. PHOTO: ASIF BILLA

South Korean ‘naturalism-oriented’ cosmetic brand Innisfree is planning to open stores in Canada, and it has retained brokerage CBRE to secure locations in at least two major markets. Innisfree is the latest international brand looking to enter Canada, which is becoming increasingly crowded as a record number of foreign retailers open new stores. 

Innisfree, which operates hundreds of stores globally, is part of the Seoul-based AmorePacific Corporation, which features 33 health, beauty and personal brands under its corporate umbrella. AmorePacific launched the Innisfree brand in 2002 and it now has stores in Asia, Australia and most recently, the United States.  

Innisfree’s slogan is “Clean Island, where clean nature and healthy beauty coexist happily,” and the brand is known to be eco-friendly. Particularly targeting women aged in their 20’s and 30’s, Innisfree is known for being South Korea’s first all-natural brand, with many of its ingredients being sourced from Jeju Island. Its products include a wide range of products for both women and men — that includes skin care, makeup, hair and body products, fragrances, beauty tools, and sun care. 

About 80% of Innisfree’s ingredients are natural and the company says that its products are “plant-to-bottle”. The company also promotes its “green life” with activities such as reforestation efforts, recycling programs, and even an ‘eco-hankie’ to replace disposable paper products. The company donates 1% of its profits to eco-initiatives. 

Prices are aimed to be affordable, with many products ranging in the $20 to $30 range. The goal is to be accessible to a broad range of potential consumers, which will ultimately help it grow more rapidly than some pricier beauty brands. 

Innisfree currently operates three stores in the United States. It first opened in New York City in the fall of 2017 at 862 Broadway, just north of Union Square in Manhattan. A second store opened at the Garden State Plaza on Long Island in July of this year and this month, the brand opened its third US store at the base of a unique mixed-use building on Lexington Avenue, across from Bloomingdales’s flagship store. 

Innisfree is now looking to enter the Canadian market, and has partnered with brokerage CBRE for its Canadian expansion. Toronto and Vancouver are the initial target markets. Stores will ideally be in the 1,800 square foot to 3,000 square foot range and be located in major malls, as well as on high streets where it may operate flagship locations. In Toronto, Innisfree is working with Arlin Markowitz and Selina Tao. In Vancouver, CBRE’s Martin Moriarty and Mario Negris are handling any negotiations in that region. 

Innisfree is entering an already competitive market that is seeing beauty brands opening their own stores as well as expanding in larger host retailers such as department stores, Sephora, and even drug stores such as Rexall and Shoppers Drug Mart. More beauty brands are opening standalone locations — Clinique opened its first standalone store in Canada at CF Richmond Centre several months ago, and other international brands such as Aesop, Urban Decay, Valmont and Benefit are also opening freestanding units. Canadian brands such as Deciem and Consonant Skincare continue to open stores and Innisfree will even be competing with Korean retailers such as The Face Shop and VDL, both of which are expanding their network of stores. 

Canada saw a record-breaking number of international retailers enter the country by opening stores in 2017, with more than 50 brands opening either standalone stores or concessions. This year has also seen a considerable number of retailers open stores with more on the way — we’ll tally the numbers at the end of 2018.

Gluten Free ‘Almond Butterfly’ Launches Multi-Location Expansion

Image: Almond Butterfly

Almond Butterfly, a Toronto-based gluten-free cafe and bakeshop, is expanding its presence in the city with big dreams for the future to grow the unique brand globally.

David Piesina, co-owner of the company with Melody Saari, said they will follow a 24-month cycle of opening new stores beginning next spring.

“We could be more aggressive than that but we’re still taking a bit of an organic approach. We feel like we’re still quite early in the process. We’ve seen a lot of businesses fail that tried to expand too quickly too soon,” said Piesina. “But we want to be basically everywhere in Toronto. I can foresee a future where we have six or more locations in Toronto within the next 10 to 15 years. I believe the timetable could possibly be more aggressive than that. The opening of each additional location should become easier, in a manner of speaking , as our systems and template further evolve.”

“Currently our thought is to keep Almond Butterfly corporate-owned while we build up a few locations. But we do have an open mind towards what the future might bring as far as possible franchising models and things like that. I can’t tell you exactly where Almond Butterfly will be 20 years from now. But we are definitely taking the approach of focusing on opening one location at a time, at least for the time being. Melody and I love Toronto. We think Toronto has a lot to offer. It reminds me of New York. Each neighbourhood has its own mini strip, like a mini downtown. Every main drag in Toronto has a lot of residential behind it. There is a very strong urban presence here. It’s a foodie paradise here, with tons of opportunity for businesses who can set themselves apart from the crowd. We definitely have an eye towards other locations in Canada, possibly the U.S., possibly all over the world. We’re quite ambitious in that way.”

Almond Butterfly began in 2011 in Montreal as a home-based business. Piesina and Saari moved to Toronto in 2014 to open their first brick and mortar location at 100 Harbord Street in The Annex neighbourhood near the University of Toronto.

“Melody and I form a great partnership. I’m more the tech and systems guy, the business and operational side of things. That’s what I’ve always been into, that’s my background. Melody is the head baker, and creative side. In addition to her years of industry experience, she has a strong background in health and fitness. She also has a strong entrepreneurial drive. She’s a really talented baker and cook as well,” said Piesina.

“Back in Montreal, Melody started offering to people this really phenomenal bread, at least it seemed like bread to me at the time. I didn’t even know what gluten was as a lot of people back then didn’t know what it was. At the time, I was following a wheat-free diet, Paleo diet actually, so I was telling her I cannot eat that. It’s quite obviously bread. She tells me I can eat it . . . There was no wheat, no flour in it . I was completely floored by this really delicious banana pancake. At that time, it just seemed impossible to me to make something like that without using traditional wheat flour. So my whole world opened up to all these different types of flour.”

Tables were set up at different events to sell the products which expanded to different events across the city and a couple of cafes approached them to carry their goods.

“We consider our true claim to fame to be the fact that the products are so good. They actually exceed what anyone would expect from a non-gluten free product. We just try to put out really great food but it is gluten-free. It’s 100 per cent gluten-free and it always will be.”

Image: Almond Butterfly

Piesina said the company recently signed a lease on its second location with April 1 as the grand opening in Dundas West in Toronto.

Stan Vyriotes and David Wedemire of DWSV Remax Ultimate Realty represented Almond Butterfly in the deal.

“The second location is a culmination of just implementing everything we’ve learned from the first location,” he said.

Legal Cannabis vs. Black Market in Canada: Can it Compete?

Legal Cannabis vs. Black Market in Canada: Can it Compete?

By Michael J. Armstrong, Associate professor of operations research, Goodman School of Business, Brock University

The Oct. 17 launch of legal recreational cannabis in Canada brings many challenges. Retailers are now worrying about possible product shortages or web site glitches. Governments are still debating how to handle amnestiesimpaired driving, and workplace safety.

But legalization day also marks the start of several interesting competitions. Some resemble those in other industries; others are unique to cannabis.

The most important one from a public policy perspective is the competition between legal cannabis and black markets. Squeezing-out illegal suppliers is a key legalization goal.

The black market’s head start

As I’ve noted before, it’ll be tough to lure customers away from established illegal vendors. For one thing, cannabis-infused foods and drinks aren’t yet legal. Black markets will monopolize those products for another year.

Dried cannabis and oils are legal now but may experience shortages. But those should disappear next year as more growers become operational.

Places to legally shop are also scarce in most provincesQuébec only has 12 stores open and Ontario won’t have any brick-and-mortar stores until spring. By contrast, Alberta has a hundred stores opening this month. As store counts grow, legal cannabis will grab more market share.

Pricing also handicaps legal vendors. They must pay fees and taxes while competing with street prices around $7.20 per gram.

However, legal cannabis might eventually undercut illegal weed. Mass production is already reducing per-gram growing costs below $0.75 and is heading for $0.20Moving production to countries with lower wages and warmer climates could drop that to $0.05.

Promotional marketing could give legal cannabis an advantage. But federal law restricts advertising to “informational” purposes; no cartoon characters or happy puppies. That makes it harder to build brand reputations.

The pre-existing “gray-market” dispensaries further complicate the legal-illegal competition. Will most close or go legit? If not, they’ll provide another challenge for legal retailers.

New or established, storefront or online?

Competition is also beginning among legal vendors, especially in Alberta. Will speciality chains, independent shops or established grocers prove most popular? Will consumers prefer stores with coffee-shop vibes, clean clinical looks or retro-hippy styling?

A potentially fascinating competition pits brick-and-mortar versus e-commerce. In many retail sectors, physical stores have struggled (or gone bankrupt) against online competitors. But now we’re seeing hundreds of new cannabis storefronts open, despite every province also selling pot online.

To succeed in this rivalry, cannabis store staff will need to offer good customer service. Online vendors must correspondingly provide well-designed web sites.

Privacy concerns will influence this competition. Some consumers won’t want friends or coworkers seeing them buy cannabis. They’ll prefer the anonymity of buying online.

Other shoppers may worry more about online privacy. Typing names and credit card numbers into cannabis web sites might lead to problems later, perhaps at the U.S. border. Some folks will prefer paying cash in physical shops instead.

Both rivalry and synergy could arise between medical and recreational cannabis. Some medical users may switch to recreational products for convenience or variety. Conversely, people trying recreational weed may find it therapeutic and later get prescriptions. Such crossovers could boost sales of both products.

Producers and products compete

The big-money competition is among cannabis producers. They’ve scrambled for skilled workers. They’ve raced to take-over greenhouses, chocolate factories, and even indoor soccer fields for growing spaces. And their stock prices have soared.

But all that’s been mere warm-up. Now their recreational products and business strategies finally go head-to-head.

Whose products will prove most popular? Will most consumers opt for a mild buzz, powerful highs, or therapeutic effects? Will sales of cannabis buds and oils be eclipsed by value-added products like cannabis foods and beverages when those become available?

Which managers have built the strongest firms? What’s the best strategic balance between cost reduction, distinctive branding and product research?

There’s still the option (in most provinces) for consumers to grow their own cannabis. This will probably resemble home winemaking: many folks try it but few stick with it. Mind you, robotic grow-op boxesapparently can do the gardening work for you now; a cell phone app keeps you updated on the plants’ progress.

Displacing other substances?

Looking more widely, we can see cannabis-alcohol competition also brewing. Some booze drinkers will switch to pot for their buzz, especially once cannabis beverages arrive. That’s one reason wine and beer companies are investing in cannabis producers.

Other substances might see similar switching. There’s evidence that legalizing pot reduces abuse of opioids and cocaine. Might some tobacco smokers trade their cigarettes for joints too?

That brings up the even broader competition between provincial pot policies. Each government has chosen its own approach to legalizing cannabis sales and consumption.

Some provinces are keeping retailing entirely government-owned. That might bolster consumer education and harm reduction. Others are at least partly including businesses. Those may respond better to customer preferences and market trends.

The least bad policy?

Whose policy will work best? More precisely, which ones will come closest to achieving governments’ varied and competing societal objectives?

Provinces with more stores per capital will dampen their black markets best. Alberta will likely lead there, given the large number of private-sector stores expected. New Brunswick’s public-sector retail network also looks good relative to its population.

By contrast, Québec has just 12 government-run stores initially for 8.4 million residents. It’s put tight limits on consumption. And its new premier wants the minimum age raised to 21. It’s hard to see that strategy discouraging illicit dealers.

Other government decisions will also be tested. Letting municipalities ban cannabis stores may be pragmatic politically. But that lets black markets continue unabated.

Similarly, Newfoundland’s desire for a local cannabis supply is understandable. But offering a $40 million tax break to get it will look expensive if cannabis surpluses eventually materialize as expected.

So, whether you’re a retailer, consumer, government official or producer, you’ll probably find the next few weeks challenging, interesting and constantly changing, to say the least.

The Conversation

Retail Veteran Andrew Jennings Discusses Rapidly Changing Industry

PHOTO: ANDREW JENNINGS LINKEDIN

Any retailer that wants to stay ahead of the game in today’s breathtaking world of change has to now think in an entirely different way and adapt to the seismic shift taking place in the industry, says global retail veteran Andrew Jennings.

Andrew Jennings (PHOTO: BIZ COMMUNITY)

Jennings, a former CEO of Holt Renfrew, has launched his new book, Almost Is Not Good Enough, where he says if retailers get this wrong, or move too slowly, the customer will be lost forever.

Jennings had a 45-year career as a senior retail executive at leading brands including Woolworths, Saks Fifth Avenue, Holt Renfrew and Harrods.

He said he wrote the book to share his insights gained from nearly five decades in the industry.

“I think we’re in an unbelievably interesting phase in retail. Interesting on the basis that things are changing fast,” said Jennings. “Someone said to me the other day ‘Andrew how would you describe the pace of change present?’ I spent a few years living and working in Germany and you’re driving down the Autobahn at 140 kilometres an hour and you look in your rear-view mirror and something has passed you. It’s your competition.

“And that’s really the pace of change today (in retail). Customers are expecting more exciting experiences when they shop whether it’s online or whether it’s offline. It doesn’t make any difference. I believe that any retailer that wants to stay in the game, let alone ahead of it, has to see it in an entirely different way. If you get it wrong or go too slowly the customer will be lost forever. I also think customers are demanding more exciting experiences. They have higher expectations of product, service, value.”

The book offers top tips from about 35 of the world’s top retail CEOs and Company Chairs on how retailers can stay relevant in today’s changing retail landscape. It covers a range of themes, rules and common mistakes for applying technology innovations, to perfecting the supply chain and identifying what customers want.

All profits from the sales of the book will go to The Prince’s Trust, a charity founded by Prince Charles that supports disadvantaged young people to help get their lives back on track through employment, education and training. Jennings is the chairman of the Trust’s Retail Leadership Group.

“Everyone has to understand that the customer is no longer just the king. I call them the super being. They are in charge. Why are they the super being? Because they have all information at the touch of a button whether that’s looking at what is a competitive price, what is the content of that product. They know exactly what is happening,” said Jennings.

“Retailers have to ensure that they are relevant. There’s four criteria from my perspective. Number one is know your customer and understand their wants, needs, desires and aspirations. Secondly, retailers have got to constantly innovate and innovate with excellence supported by technology. I often say show me a business that’s implementing innovation in an excellent way and I’ll show you a successful business. The third part of staying relevant is the quality of the talent that you’ve got in your business. You’ve got to have passionate people in retail . . . You’ve got to create an environment where people will learn and grow. The fourth is we’re a product. We sell merchandise. So, you’ve got to make sure merchandise is in line with the market trends to support the customer’s needs. It’s no coincidence that know your customer has to be at the top of the tree there.”

WORLD RETAIL CONGRESS. PHOTO: ANDREW JENNINGS LINKEDIN

Jennings said the retail graveyard is full of once great businesses that were relevant that became irrelevant because they ignored those four factors. Today, retailers have to be omni channel businesses to be successful.

“That’s a very, very tough call for retailers. You’ve got to make sure you stay on top and in line with what the customers want,” he said.

“Another factor, is to achieve the goal of staying relevant you’ve also got to think 3D-mensional and the three Ds of 3D-mensional are differentiation, distinctive and delivering. Each one of those are really important. Number one differentiation. Customers have neither the time nor the inclination to give retailers a second chance to make a first impression. They want retailers to get it right, right away. And differentiation is everything and relevant retailers need to make the shopping experience stand out from the competition. You need to be what I call a category of one.

“My second D is of course distinctive. You’ve got to be distinctive today in everything that you’re doing. And again, it needs to stand out from the rest of businesses . . . What’s the personality of that brand?

“Then the third D is delivering. I’ve just seen too many businesses talk a lot about ‘well we’re going to differentiate ourselves, we’re going to be distinctive’, but they don’t deliver to the customer. They don’t deliver to their shareholder. They can’t walk the talk.”

Why the title of the book?

“Throughout my career I’ve had many people say to me ‘Andrew we’ve nearly hit our budgets or we didn’t quite line up those designers to come in. Next year we’ll make the target number we should have hit this year’. And that’s not going to cut it in this fast-moving industry that retail is in today. I don’t think it was ever acceptable but we have to constantly say to ourselves ‘how can we exceed our customer’s expectations? How can we truly give them that extraordinary experience?’ Because it’s that extraordinary experience that is required to stay relevant because almost is not good enough,” said Jennings.

 

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