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Louis Vuitton Prepares to Open 1st Standalone Alberta Store

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

Luxury fashion retailer Louis Vuitton is opening on Friday a standalone location in Calgary’s CF Chinook Centre.

The global brand, which had been located in the downtown Holt Renfrew store for many years, will have its first standalone store in an enclosed mall in Canada based on the main level of the popular shopping centre.

“The long-anticipated opening of the Louis Vuitton store has set off a buzz in the Calgary luxe shopping community and complements an emerging high-end pocket of retail sizzle at the Chinook Centre,” said Michael Kehoe, an Alberta-based retail specialist and broker of Fairfield Commercial Real Estate in Calgary. “Chinook Centre has been pursuing luxe retail for several years. The Centre’s emerging higher-end tenant cluster led by the new Louis Vuitton store enjoys the synergistic traffic benefits of being nestled in by Nordstrom and Saks Fifth Avenue.

“The retailing stars align with some of the basic elements in place at Chinook with the City’s only Canada Goose boutique and Tiffany store among others. Chinook has significantly differentiated itself from the other regional shopping centres in the Calgary market and potentially gaining an edge in luxe retailing over the downtown Holt Renfrew. The relocation of Louis Vuitton to Chinook Centre from the downtown Holt Renfrew will have little effect on Holt Renfrew. I would expect that space to be quickly re-leased to a notable international brand such as Fendi or Chanel. There is significant wealth in the energy capital of Canada and Calgary shoppers need to show it as the market experiences a modest growth in the luxury retailing segment.”

In a statement, Louis Vuitton said the new store will offer leather goods, accessories, fragrance and two new categories for Calgary, shoes and fragrance for both women and men.

“The dramatic façade, characterized by a large sweeping curve, will be composed of a combination of Lacewood in a stitch pattern with brushed copper and pale gold trim with an integrated flower pattern metal mesh,” said the company.  “The mesh offers a semi-transparent, screen like quality that brings a softness to the large façade and allows light into the store. Louis Vuitton Calgary, crafted with the finest materials, also features a number of new and vintage design pieces from talents such as Carlo Mollino and Jens Risom.

Louis Vuitton – Chinook Centre Interiors Photo: Courtesy of Louis Vuitton / Paul Warchol

“In the spirit of Louis Vuitton, the store will have a room dedicated to travel which features an on-site hot stamping machine, allowing clients to personalize their leather goods and watch the process. This room will also feature a rainbow of Louis Vuitton luggage tags. In 2017 Louis Vuitton released the British Columbia Travel Book featuring images shot by photographer Solve Sundsbo. The store will feature prints from the book.”

Louis Vuitton has been operating in Canada for 35 years.

Darryl Schmidt, vice-president of national leasing for Cadillac Fairview which operates CF Chinook Centre, said Louis Vuitton will occupy about 4,200 square feet in Chinook Centre.

“We relocated four clients to make way for them,” he said. “We’re excited because we get some consolidation of market share down to Chinook. And this is their first true free standing store in an enclosed mall in Canada.

“There’s no question it’s going to add new traffic. It’s going to expand our reach in terms of secondary trade areas and into our primary trade area. It’s a great lead tenant with which to build upon the existing luxury merchandising mix. We’ve got other groups, luxury players, that are looking at Calgary and looking at Chinook Centre as a result of the Louis Vuitton signing. So there’s no question they’re an industry leader, a market leader, and we can build on our merchandising mix based upon that tenancy.”

Groundbreaking Development in Niagara Falls to be First-of-its-Kind in Canada

Paradise Walk

Chinese developer GR Investment Group unveiled a project at the ICSC Conference in Toronto this month that is unlike anything in Canada to date. Called ‘Paradise Walk’, the commercial centre is more akin to projects in Europe and the United States, according to the company, with an aim to attract more locals as well as the millions of tourists that visit the area annually.

Paradise Walk is part of a larger 484-acre mixed-use community called ‘Riverfront Community at Niagara Falls’, which will include homes as well as more than 200 acres of nature preserve.

Helen Chang, Chairwoman of the board of GR (Canada) Investment Co. Ltd., is spearheading the project which will include international restaurants, a boutique hotel, hotel condos, and even a wedding facility. The site, she said through an interpreter, is the ‘best natural oxygen bar in the world’ health wise — its combination of high negative ion content and optimal humidity could, according to WTO reports, strengthen one’s immune system to ward off illness merely by being there.

Plans show a European architecture-inspired experience-based commercial area featuring a series of outdoor pedestrian streets with zones dedicated to different tenant types. Included will be several attractive public spaces with central areas that will house attractions such as street performers and a rideable carousel. About 50% of the commercial mix will be for food and beverage offerings (including restaurants, bars and coffee shops catering to different tastes from all over the world), reflecting a similar mix seen in commercial centres in major markets globally. Food and beverage will drive traffic while offering visitors an expansive array of global-inspired dining options to keep them there for a while.

The remainder of the proposed 100+ unit commercial centre mix would include about 15% dedicated to leisure (such as spas and art galleries), 15% to fashion boutiques, and the remaining 15-20% being for amenities such as grocery, flower shops and other day-to-day commercial venues.  

Ms. Chang explained that she is an executive member of the council of global leisure industry as well as the China Tourism Association, and she has been involved with leisure industry development and research for decades. When the prospect of developing a site near the stunning waterfalls at Niagara Falls presented, she jumped on the opportunity to add an attraction in an area that lacked leisure tourism-related offerings for visitors to stay in the area for an extended period. She immigrated to Canada in 2011 and with her vast experience, she set out to build the 330,000 square foot Paradise Walk – a substantial investment in the area that will be positioned as an attraction unto itself with a goal to align it with the natural wonder that is Niagara Falls.

According to Ms. Chang, the aim of Paradise Walk will be to cater to overnight visitors, develop the local economy, and improve the image of local tourism. She said that it is her social responsibility to do so, given her background and the unique opportunity. According to a CBRE report, it is estimated that the Paradise Walk will attract at least 25% of the region’s estimated 14.5-million annual tourists. At the moment, the average stay for visitors in the area is 1.5 days and Paradise Walk’s goal is to extend that to 2-3 days.

As part of the Paradise Walk proposal, a children’s science amusement park will become an attraction for youngsters as well, rounding out Paradise Walk as a family-friendly destination.

A stunning domed wedding facility will be an attraction for visitors looking to get married, overlooking a manicured rose garden as well as a water feature that will span through the property. An expanse of commercial spaces aimed towards restaurants, bars and related businesses will line the canal with outdoor patio opportunities, many of which will be south-facing for year-round sunlight. A beer hall in the plans will also face towards the new waterfront.

The commercial mix will be international, with one section specifically dedicated to tea merchants. It’s the one area of the centre that will be the most ‘Asian and European themed’, according to Ms. Chang, with a central Chinese tea garden framed by several international tea-themed businesses. It’s part of an effort to make Paradise Walk more ’experiential’ in order to attract and retain guests.

About 3,400 on-site residences, including condominium units as well as bungalows geared to seniors, will add a permanent population that will have access to an on-site grocery store as well as other commercial offerings, in an effort to create a mixed-use community that in itself will be self-sufficient.

The goal of Paradise Walk is to be accessible to the general population and as such, it will not be positioned as a luxury centre — rather, it will include a democratic offering in an upscale and attractive-looking environment.

The project will be an economic generator, creating an estimated 3,000 permanent jobs and 10,000 indirect jobs for the region.

Access will be key, and Paradise Walk will be innovative. Existing roadways will provide vehicle access to the site which will have about 2,400 on-site parking spaces available, and shuttle-bus transportation offerings are also in the works. An eco-friendly commuter train, using an existing under-utilized rail line, will transport visitors and residents from the city of Niagara Falls directly to Paradise Walk. This could become an attraction unto itself and achieve a lower carbon emission and reduction of environment pollution, according to the developer.

Ms. Chang is a veteran in the leisure tourism industry with more than 30 years of experience in designing leisure-based experience centres in conjunction with CBRE commercial consulting in China. Since the year 2001, she has also carefully studied and visited about 60 leading mixed-use pedestrian-friendly commercial destinations globally to see what works best. She explained that she wanted to create a ‘man-made wonder’ for the world to correspond with the natural wonder that is Niagara Falls, going on to say that she has worked on similar successful projects in China and she is confident that her Paradise Walk project in Niagara Falls will also be successful.

GR Investment Group is seeking retailers interested in being part of the Paradise Walk project and is offering retail spaces ranging from as small as 280 square feet for a food vendor to over 25,000 square feet for the proposed grocery tenant. She said that the grocer might ideally be an organic chain that would keep in line with the overall theme of ‘health’ that will be present throughout the centre. In all, the 484-acre site (which will include some preserved forest area as well as adjacent residential development) will include a commercial area of 500,000 square feet with a leasable area of about 280,000 square feet and a boutique hotel measuring about 50,000 square feet. The anticipated opening date is in the fall of 2022, though GR says that it will do its best to break ground earlier in partnership with the city with a targeted grand opening in the fall of 2021.

Contacts: Jeremy Schott: Tel: 1-416-726-6562, email: jschott@gr-gp.com

Marilyn Tian: Tel: 1-289-668-3182, email: marilyntian@gr-gp.com.

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.