Advertisement
Home Blog Page 1059

Lackluster Canadian Retail Sales Growth Continues

exc-5bac1d7aec212d7e8e2911b0


By Ed Strapagiel

Another month of Statistics Canada numbers show another month of ho-hum Canadian retail sales growth. For the 3 months ending July, total Canadian retail sales were up 4.4% on a non-adjusted basis. That’s “sort of okay”, but nothing to be excited about. 


total-retail.giftotal-retail.gif

The 3 month growth trend (orange line in the chart above) does appear to be recovering but is still below any time in 2017. The underlying 12 month trend (green line) has been steadily weakening since Q3 last year. 

Another concern is that rising gas prices are distorting the picture. If gasoline stations are taken out (per the chart below), then Canadian retail sales growth is even weaker, up only 3.0% for the 3 months ending July. 



Food & Drug


The Food & Drug sector appears to be in particularly bad shape. For the 3 months ending July 2018, retail sales gained only 0.6% versus a year ago, which is significantly less than inflation and population growth. The 3 month growth trend (orange line) is at historical low levels, and the underlying 12 month trend (green line) continues to weaken. 

The two largest store types in this sector are continuing to post retail sales declines. For the 3 months ending July, supermarkets & other grocery stores’ sales were down 0.7% year-over-year, while health & personal care stores were down 1.1%, which might be some kind of dubious record. 

Convenience stores’ retail sales were up 7.8% in the same period, and specialty food stores gained 7.3%. These are relatively small groups however and were not nearly enough to save the overall Food & Drug sector.


download (2).jpgdownload (2).jpg

Store Merchandise


Retail sales growth in the Store Merchandise sector has come down from the highs recorded last year. Nevertheless, current growth levels are still ahead of the 2014 to 2016 period. For the 3 months ending July, retail sales increased a respectable 5.0% year-over-year – good but not great. 

The 3 month growth trend (orange line in the chart above) has been declining since mid 2017, although the most recent results indicate that this may now be stabilizing. The underlying 12 month trend (green line) has also weakened but may be about to steady out. 

Electronics & appliance stores continue to lead the Store Merchandise sector, with retail sales up 8.9% tear-over-year for the 3 months ending July (miscellaneous store retailers had a higher increase of 9.9%, but it’s difficult to know just who they are). Clothing stores also did well, with retail sales up 7.7% during the period. 

Some other store types however tended to hold back the group. Retail sales growth actually declined at home furnishings stores by 0.8% in the 3 months ending July, while sporting goods, hobby, book and music stores gained only 0.4%. 

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


Automotive & Related


The wild ride in the Automotive & Related sector continues. Retail sales growth was up to 6.6% for the 3 months ending July, but this is a result of a push-pull effect of its two largest components. 

New car dealers’ retail sales were up 9.4% last year, but growth has slowed considerably in 2018. Their sales gained only 2.0% versus a year ago over the 3 months ending July. 

This however was more than offset by high retail sales gains at gasoline stations, whose sales increased 16.8% in the same period. This accounts for the apparent recovery in Automotive & Related the above chart implies, but it’s all due to increases in gas prices at the pump. 


By The Numbers

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



Canadian E-Commerce Sales

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


Overall, e-commerce represented about 2.8% of total Canadian retail sales for the 12 months ending July 2018, including both pure play operators as well as the online operations of brick & mortar stores. Canadian consumers however also buy online from foreign websites which is not captured in these numbers. 

Canadian e-commerce sales were up 15.7% year-over-year for the 3 months ending July 2018, but this is much less than the 37.0% gain recorded in the same period a year ago. E-commerce retail sales gains are still in double digits, and are still much higher than for location based retail, but growth is slowing down. 

Note that location based retail is the same as that in the preceding large “By The Numbers” table. It’s what’s normally reported as Canadian retail sales. Except that it isn’t. Location based retail excludes another section called Non-Store Retailers (NAICS code 454), which includes electronic shopping and mail-order houses, which in turn is where (mostly) pure play e-commerce businesses are. For the 12 months ending July 2018, electronic shopping and mail-order houses had an estimated $9.7 billion in e-commerce sales. 

But that’s not the only source of e-commerce, as (mostly) bricks & mortar location-based retailers also sell online. For the 12 months ending July 2018, this group had an estimated $7.2 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $16.9 billion in e-commerce sales by Canadian operators over the year. Note that this does not include foreign e-commerce purchases made by Canadian consumers, but it does include e-commerce purchases made by foreigners at Canadian businesses. 

For electronic shopping and mail-order houses, an estimated 83.2% of their sales are allocated to e-commerce. For (mostly) bricks & mortar retailers, it can be estimated that just 1.2% of their total sales come from e-commerce. 

In the final section of the above table, (mostly) pure play operators (namely, under electronic shopping and mail-order houses) generated an estimated 57.5% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce is 42.5%. 

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


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

Global Consumer Study Reveals Challenges with Online Order Fulfilment and Delivery


PAN_Mobile_1.jpgPAN_Mobile_1.jpg

Radial Inc., the leader in omnichannel commerce technology and operations, has released a consumer study that reveals the top concerns amongst retailers pertaining to online order fulfillment and delivery. The expansive study is now available for download here.

Radial surveyed 3,000 consumers in three countries — Canada, the U.S. and the UK, to better understand issues relating to e-commerce order fulfilment and delivery. 

The study found that consumers continue to raise questions about an array of fulfillment-related issues including the cost, speed, reliability and eco-friendliness of the overall fulfillment process. 

The study results are revealed in this e-book, including five fulfillment trends that are shaping consumer satisfaction:

  1. How millennials are impacting delivery expectations,

  2. The importance of eCommerce fulfillment speed and value,

  3. Preference for environmentally friendly packaging,

  4. How automated delivery is gaining traction, and

  5. Why demand for in-store pickup is on the rise.

The study notes that younger buyers are the most critical when it comes to online shopping. Interesting findings pertaining to Canada research include: 

*43.2% of Canadian respondents reported at least occasional challenges receiving their online orders — that number is considerably higher than in the US, where 35.2% of respondents expressed the same. 

*50% of Canadian respondents aged 18-34 said that their online orders weren’t on time, or in ‘perfect condition’ wit 66% of those aged 55+ saying the same, 

*In Canada, 18 to 34-year-old consumers listed speed and value as their top criticisms, and 62.3% of all respondents preferred that their packages get delivered to their doorstep rather than a different location, and

*About 40% of Canadian respondents said that they would choose in-store pick-up, also known as ‘click-and-collect’. That’s considerably less than in the UK, where 54% of respondents would do so — though granted, the UK is much smaller, geographically, than the vast expanse that is Canada. Convenience and delivery time were the primary reason for this preference.

Download the study to uncover consumers’ eCommerce fulfillment expectations and what it takes to meet them.

Yonge and St. Clair to See Retail Transformation

One of Toronto’s most important intersections is seeing a remarkable transformation that will include the addition of new retailers, restaurants, and mixed-used developments. When completed in several years, the formerly sleepy corner of Yonge Street and St. Clair Avenue will be almost unrecognizable. Its desirability makes sense, given that it’s on a subway line and is adjacent to some of Canada’s wealthiest neighbourhoods.

The neighbourhood was quite vibrant in the 1970’s and 1980’s when it was home to theatres, top restaurants, and several upscale retailers that might surprise those not familiar with the area’s history. Dapper and traditional Dack’s shoes once occupied the northwest corner of the intersection and a few doors north of that, multi-brand women’s luxury retailer Ira Berg operated a 9,000 square foot store at 1510 Yonge Street at the corner of Delisle Street (now occupied by New Balance Shoes). Ira Berg opened Canada’s first location for Paris-based luxury brand Celine in 1972 at 1506 Yonge Street (now occupied by a Subway restaurant), and wealthy women from nearby would arrive by car (and sometimes by limousine) to patronize area businesses. The Delisle Court retail complex, across Delisle Avenue from Ira Berg, housed locations for brands such as Bally of Switzerland shoes, Le Chateau, and later on, a Bruno’s grocery store which closed in March of 2016.

Yonge and St. Clair is exceptional and almost unmatched in Toronto in terms of proximity to wealthy residential neighbourhoods. Forest Hill is adjacent and affluent South Hill, Moore Park and Rosedale are nearby. The Yonge Street subway line includes a stop at St. Clair Avenue, and an east-west dedicated streetcar line provides further transit access. And while the intersection is known for its towers, buildings aren’t nearly as tall as at other intersections in the area — that’s according to Brandon Donnelly, Vice President at Slate Asset Management, who is helping spearhead a spectacular redevelopment of the immediate area.

INTERACTIVE GOOGLE MAP

One of Slate’s more ambitious proposals is a stunning 48-storey mixed-use tower on the site of the former Ira Berg store as well as adjacent properties to the south. Designed by Chicago-based Studio Gang, the high-end residential portion of the tower will feature more than 250 residences averaging more than 1,000 square feet each, and there will be a retail component at its base. It’s one of several developments that are proposed in the area which is poised for a transformation that could make it almost unrecognizable.

Slate Asset Management owns the buildings at all four corners of the Yonge Street and St. Clair intersection, and the developer is in the process of transforming the area by renovating buildings as well as the public realm. A business Improvement Area was created a couple of years ago, as was related branding in order to created unified messaging about the future of the area. “It’s not just about the buildings” said Mr. Donnelly, discussing how parties came together with a unified vision for the area.

The public realm was first modified in the summer of 2016 when Slate commissioned a large piece of art work on the side of the 12-storey Padulo building at 1 St. Clair Avenue West (at the southwest corner of the intersection). Artist Phlegm created a distinctive 8-storey black-and-white mural of a human body composed of iconic Toronto landmarks that is visible from blocks away. According to Katie Fong, a Director at Slate, the mural was an initial step to show the community that changes to the area were happening quickly, and that they’d be substantial.

STUDIO GANG RENDERINGS. PHOTOS (ABOVE AND BELOW): KG&A
GENSLER’S ‘RAVINE BENCH’

The next modification to the area’s public realm happened at the northeast corner of the intersection last year when Slate commissioned new sidewalks as well as a unique seating area. Dark granite sidewalks, similar in appearance to those on Toronto’s luxurious ‘Mink Mile’, elevate the corner which is anchored by a renovated TD Bank. Design firm Gensler created a unique seating area at the corner called Ravine Bench, referencing the rambling forested ravines that characterize the area.

Connected to the TD-anchored office building at 2 St. Clair Avenue East is the St. Clair Centre, which is seeing a significant renovation that includes new common areas, new retailers, and an expanded Loblaws grocery store that will be twice the size when completed. Ms. Fong noted that 2 St. Clair East and the St. Clair Centre will be connected with unified flooring tile which will create a seamless experience for those passing from one property to the next. St. Clair Centre’s landlord Whittington, which also owns The Weston Centre at 22 St. Clair Avenue East, plans to redevelop much of the block’s surface parking with a multi-use development that will include high-rise residential units, while also maintaining a significant amount of office space. 

At the northwest corner of the intersection, Slate is overhauling an existing mixed-use building that will include two levels of retail anchored by a new Buca restaurant at its corner. Buca was represented by the team of Stan Vyriotes and David Wedemire of DWSV Remax Ultimate Realty Inc., who explained how the area’s demographics and proposed development made the decision to open at the corner an easy one.

RESTAURANT ‘BUCA’ WILL ANCHOR THE NORTHWEST CORNER OF YONGE AND ST. CLAIR. RENDERING VIA SLATE/GENSLER

Prior to Buca’s opening, however, construction hoarding has allowed for a 40-foot high public mural that ads character to the area. When completed, the retail component at the corner will also include a new location for healthy eating concept iQ. Existing locations for David’s Tea and hair salon Fiorio (now rebranded as ‘Salon Scavo’) will remain on site as well, providing a cohesive retail experience. Design firm Gensler is also working on the complex in an effort to create something considerably more modern and upscale — a floor of retail is being removed, according to Ms. Fong, in order to create 30-foot high ceilings for Buca. Energy efficiency, sustainability and diversity of uses will be key to that as well as other Slate developments in the area.

Brandon Donnelly explained how the block will see its five access points reduced to three in order to improve traffic flow. Redevelopment, including the new Studio Gang tower, will create a physically connected parking structure below that will allow for more pedestrian flow at street-level. Slate is expected to hold a design competition to create a canopied pedestrian pathway that will connect St. Clair Avenue to the park to the north, replacing an existing walkway between two office towers.

As well, an existing park facing Delisle Avenue will be expanded by about 50% by replacing an existing surface parking lot. Mr. Donnelly explained how new retail spaces will face onto the park, creating a unique opportunity similar to that of retail facing towards Village of Yorkville Park in Toronto.

The 48-storey Studio Gang tower will also include retail space with an ultimate configuration to be determined once the proposed project’s design is approved by the City of Toronto. Slate has included some exceptional public realm improvements on Yonge Street, including wider sidewalks which will be created by pushing back some heritage facades while other adjacent buildings are demolished for the redevelopment.

THE CURRENT NEW BALANCE STORE AT THE SOUTHWEST CORNER OF YONGE AND DELISLE WAS ONCE HOME TO WOMEN’S MULTI-BRAND LUXURY RETAILER ‘IRA BERG’, WHICH ALSO OPERATED AN ADJACENT CELINE BOUTIQUE. THIS BUILDING WILL BE DEMOLISHED FOR THE 48-STOREY STUDIO GANG TOWER
CURRENT NORTHEAST CORNER OF YONGE AND ST. CLAIR. PHOTO: CRAIG PATTERSON

The southeast corner of the intersection will also see some significant modifications. Scotiabank will remain the anchor tenant on the corner of a renovated building that will see a reconfigured ground floor and retail concourse. Included will be a new retail entrance off of Yonge Street that will draw shoppers and commuters into the building (a subway station is connected underground) with the podium to be re-glazed in a dramatic transformation. New retail will be created on the ground level as well as on the concourse level, offering exceptional visibility to those accessing the subway.

The office tower at 21 St. Clair Avenue East will also see modifications at its retail level with a new Mary B. Kitchen and Playa Cabana restaurants set to open on site. Brokerage CBRE’s Toronto office has been instrumental in picking tenants for the area and continue to speak to various interested commercial tenants, under the direction of Arlin Markowitz, Alex Edmison, Jackson Turner and Teddy Taggart.

ABOVE: CURRENT SOUTHEAST CORNER OF YONGE AND ST. CLAIR. BELOW: FUTURE RENDERING, VIA GENSLER

Several other developments are proposed on Yonge Street south of the intersection as well, with retail opportunity at the base of each of them. The added residents to the area will create increased demand for retail and other services as Yonge and St. Clair matures with new development and public realm improvements.

The revival of Yonge and St. Clair is a welcome addition to the city — Mr. Donnelly noted that for years the intersection “doesn’t reflect the community around it,” as it had “lost a bit of its lustre over the years”. The goal is to recreate some of the vibrancy seen in times past, while looking to a future that will include enhanced retail and restaurants, as well as an enhanced public realm that will include updated sidewalks, mid-block pedestrian access and an expanded public park that will be available to locals as well as visitors. Given the strong demographics in the immediate area, as well as the exceptional connectivity as a transit crossroads, the intersection is likely to become, again, one of the most desirable in the city to work, live and play.

Peak Performance Expanding Canadian Retail Operations

OAKVILLE LOCATION. PHOTO: PEAK PERFORMANCE

Outdoor sports fashion brand Peak Performance with its roots in Sweden is continuing to expand its operations in Canada.

The ski brand was founded in 1986 in Åre, a mountain village in the Swedish province of Jämtland, by the 2 founders hanging out in a chalet talking about making better quality ski wear and creating a line that could transfer seamlessly to their traditional après–ski activities.

“They wanted to create a line that was versatile. A product offering that could fit all walks of life. A line that could take us from bike to bar, work to workout, ski to chalet. Whatever it is that you do, you can find the perfect product with Peak Performance,” said Christopher Clementoni, Country Manager for Peak Performance in Canada.

“The Peak Performance brand is routed in ski and has now branched off now to so many categories. In the spring and summer seasons we pride ourselves on an extensive outdoor and golf offering. We also have a full fashion specific offering that we’ve developed over the last number of years that has now allowed us to attain a completely new customer base. Ski, golf and fashion are really the three categories where we really excel.”

Christopher Clementoni

The high-quality apparel includes everything except for footwear.

Peak Performance opened a franchise store in Oakville in October 2016 – its most recent bricks and mortar location. It has had store in operation in Whistler, B.C., for just over seven years, and a store in Brossard, Quebec for five years. “All of our concept store locations offer an amazing brand experience for all walks of life.”

“We intend to expand and grow our wholesale business in Canada,” said Clementoni. “After being with adidas for over 10 years, it allowed me to come into the Peak Performance business with a strong understanding of how a global brand can operate in the Canadian marketplace.”

“With new leadership in the Canadian market, it has allowed us to take our Brand to the next level.”

Whistler Location

“I would say right now that there aren’t any definitive plans on opening new Concept stores. We are however always open to exploring new opportunities. We obviously like to look at the resort areas like Banff, Kicking Horse and Mont Tremblant as potential locations.

 “Today, it’s positioning ourselves accordingly with the right wholesale partners.”

“Opening accounts like Sporting Life has supported us quite a bit being in able to broaden our reach to our consumer. The business in Canada has been relatively incubated in Quebec from a wholesale perspective mainly due this is where the brand began its entrance into the Canadian marketplace. This is also where we have had the most consistency in representation having worked with the same sales agency for many years.”

OAKVILLE LOCATION. PHOTO: PEAK PERFORMANCE

“Opening Sporting Life has been our proudest achievement to date since the leadership change in our business 18 months ago.  Right now we’re looking at a national expansion. We’re looking to open key accounts in different regions of Canada to grow our brand footprint and create more awareness around our amazing product offering.”

“We are in a great position right now in Canada. We are continuing to open new accounts and creating open lines of communication with potential new Key account partners”.

Product will be launched with Sporting Life starting October 1.

WHISTLER LOCATION (PHOTO: PEAK PERFORMANCE)

‘RetailTO’ Event in Toronto on October 4 

exc-5baae093f4e1fcc98ccc8733


870486724e1084dcc81c68a3253103d5.png870486724e1084dcc81c68a3253103d5.png

By Retail Insider

A unique event called ‘Retail Tomorrow’ will be held at the MaRS Discovery District at 101 College Street in downtown Toronto between 9:00am and 12-noon on Thursday October 4, and tickets are still available. The conference will promote the collaboration between retailers, brands, technology leaders, and universities. 

Attendees will be provided the opportunity to connect to innovators, identify emerging technologies, share insights, and discover next-practices focused on enhancing the shopper experience.

“There are so many amazing things happening within the Toronto retail ecosystem, and yet, there wasn’t really a place for each sector of the industry to come together and discuss common trials and tribulations. We really believe RetailTO will help to unite the industry as a whole, and create a space where innovation and collaboration can flourish. The goal is to provide an environment free of sales pitches and plugs, ensuring the audience walks away with tactical knowledge they can really use,” said Kelly Stewart of Sampler.

It’s all part of ‘Retail Tomorrow Week’, which is coming to Toronto October 3 to October 4th of this year. Previous host cities have included San Francisco, New York City and Seattle. The week will be co-hosted by National Retail Federation (NRF), GMDC, Retail Tomorrow and Brand Innovators, and will focus on Toronto’s bustling retail and consumer packaged goods ecosystem, as well as the innovative technologies that are changing the retail landscape in the ‘Smart City.’

Toronto was chosen for the event because the city has been identified as a world leader in the realm of technology. The city recently ranked as one of the top 10 globally in terms of innovation, and it has become a global leader in terms of overall tech growth and employment, not to mention being one of the most diverse and multi-cultural cities in the world.

Alex Norman, Co-Founder of TechTO, felt it was the right time to launch a retail-focussed event, stating: “The Toronto tech sector has emerging companies in all retail related activities from traditional tech solutions (e.g. Sampler, Hubba, Shoelace), to DTC (eg Inkbox, Mejuri), to adjacent services in real estate (thisopenspace) and logistics (e.g. Rose Rocket). Various stakeholders have approached us multiple times to help build a community where they can learn from each other and build awareness around what is going on in Toronto’s retail environment. When Marie from Sampler approached us to get involved we knew it was time to launch a new community. We are so excited to bring RetailTO to this great city!”


CaptureB.PNGCaptureB.PNG

To kick off the event series, RetailTO is hosting a launch event on October 4th. The morning session will feature speakers from various companies including: 

The Commerce in the Smart City Panel, moderated by Kevin Coupe, will include: 

For more information and to buy tickets to the October 4 RetailTO event, visit: TechToronto.org

A video from a previous ‘Retail Tomorrow’ from San Francisco on March 29-30, 2017:

Icebreaker Merino Wool Continues ‘TouchLab’ Retail Expansion in Canada 

CF CARREFOUR LAVAL LOCATION. PHOTO: LUKE DODDRELL VIA LINKEDIN

New Zealand-based Icebreaker, which specializes in Merino wool outdoor clothing, is celebrating another winter season in Canada with the addition recently of a new TouchLab store location and the re-opening of three newly-renovated stores.

The new TouchLab opened at CF Carrefour Laval in suburban Montreal last week, along with the re-opening of the others in The Kitsilano area of Vancouver, Montreal and at Park Royal in West Vancouver.

The company said it will also re-open its flagship Touch Lab in Portland, Oregon for the fall/winter season launch.

PHOTO: ICEBREAKER FACEBOOK PROFILE
PARK ROYAL LOCATION. PHOTO: ICEBREAKER GOOGLE MAP PROFILE

Luke Doddrell, General Manager for North America with Icebreaker, said Touch Lab retail stores for Icebreaker “create a very immersive experience” for customers and the beauty of the Merino wool is something which really needs to be experienced.

It’s something to be touched, to be put next to the skin, to truly experience the beauty of the fibre, he said.

“It’s quite unique and very special,” said Doddrell.

Despite an era where ecommerce and online shopping have become hugely popular, the experience of touching, feeling, holding, smelling and having a truly hands-on experience with products is still very appealing in the marketplace.

“People are thinking more and more about what they’re putting on their skin,” said Doddrell. “We really see an opportunity to help inform and maybe even educate people about what they put next to their skin.”

Icebreaker Merino clothing for the outdoors, technical sports and lifestyle includes underwear, mid layer garments, outerwear, socks and accessories for men, women and children. Its products are sold in more than 5,000 stores in 50 countries, at Icebreaker retail stores in New Zealand, Australia, Canada and the United States and online at icebreaker.com.

On Saturday, September 29, 12 Icebreaker Touch Labs and Outlets in North America will be celebrating the start of the FW18 season launch by holding an in-store exclusive Win a Trip to New Zealand contest. The grand prize is two round trip tickets to New Zealand, $1,000 Icebreaker clothing, and $1,000 towards accommodation.

PHOTO: ICEBREAKER. MONTREAL-BASED VERGO CONSTRUCTION HAS BUILT SEVERAL UNITS, INCLUDING THE OTTAWA AND CF CARREFOUR LAVAL LOCATIONS.

Customers are invited in-store to try on a piece Icebreaker’s new FW18 collection for a chance to win a trip to New Zealand. There is one entry allowed per person, and entry is only in-store; by trying on a garment from the new collection.

Participating stores and outlets include: Kitsilano (Vancouver), Park Royal (West Vancouver), McArthurGlen Designer Outlets Vancouver, West Edmonton Mall, Calgary (CF Chinook Centre), Ottawa (CF Rideau Centre, Toronto Queen Street, Toronto Premium Outlets, as well as in the United States in Chicago, San Francisco, Portland Pop-Up, and the Woodburn Outlet.

“The new and renovated Touch Labs are a welcome addition to the Icebreaker retail program, offering an immersive and personalized experience with the natural fiber brand from New Zealand,” says the company. “Merino wool is an incredibly high performance textile, that Icebreaker has been able to offer in categories such as Adventure, Training and Life, and through innovative natural textile blends, and in 100 per cent merino pieces, for year-round style, comfort and performance.”

PHOTO: ICEBREAKER

Doddrell said the company has 14 stores across North America. There are 10 stores in Canada. And it is also planning to expand in North America.

“We’ve grown that relatively quickly. We’ve expanded by about six stores in the last two to three years. Really giving North Americans a real place to experience (Icebreaker). The stores that we’ve opened have been very successful but our goal is when we open a retail store is to bring in new consumers into the brand by giving them the information and the knowledge in our story and sharing our values with them,” he said.

“Over the next three to five years there’s plans to grow the business through all distribution, through our wholesale partnership which is still the majority of our business and seems to be a really significant part of our growth plans in terms of reaching more consumers in North America through our strategic wholesale partnerships as well as growing our own direct consumers through ecommerce along with key digital partners and also expanding our brick and mortar network across both Canada and the U.S. over the next three to five years. It’s about growing in the right way and we plan to grow all channels based on the opportunities that we have in North America.”

Canadian Footwear Retailer ‘Call it Spring’ Shifts its Strategy with New Branding and Focus

Image: Call it Spring

Call It Spring, a division of Canada’s biggest footwear brand, Montreal’s Aldo Group, is changing its course at a time when overwhelming competition is causing institutional brands to disappear.

Alyssa Whited

“There is no question that the retail landscape is shifting tremendously and we wanted to make sure we were adjusting with the times,” says Alyssa Whited, global senior manager of PR and social media at Call It Spring. “We looked at how we were differentiating ourselves but also how we could make ourselves available to a wider market.” 

No stranger to change, Call It Spring itself has gone through several transformations over the years – from “Transit” to “Spring” and finally to “Call It Spring” in 2010, after a few years of “coming of age”. Which is fitting, considering where they finally landed, offering trend-worthy styles to younger consumers at an affordable pricepoint (the sweet spot for Call It Spring remains between $20 – $110 for footwear).

Their market research indicated Generation Z (or the iGeneration, those born between 1993 – 2002) is a huge demographic for the footwear market, and one that was being woefully underserved by most retailers. They believe Gen Z has a huge amount of power – both from the perspective of what they can buy but also what they stand for as a generation.

Monia Atijas

“We recognize that it’s not just about the product for our customers. The new generation is hyper-aware of social issues – they demand transparency,” says Monia Atijas, vice president, Call It Spring, The Aldo Group. “They are the first generation to grow up knowing only a world with Internet. So as a brand, it’s our responsibility to give them the answers they are looking for.”

Purchase With Purpose

Image: Call it Spring

Call It Spring responded and took their story beyond what they sell to give their customers a reason to purchase with purpose. Many of their new foundational brand pillars are outside “the product”. They’ve made it more about who they are and what they’re doing to put words into action.

Their newly enhanced digital platform went live on August 13. The logo has also morphed to reflect the new emphasis on connectivity (&Call It Spring). It symbolizes community and putting things together – everything from looks to ideas to collections.

Framed very similarly to a user’s experience on Instagram, their redesigned website eliminates individual pages; it’s now a continuous scroll and constant population of content. Because Gen Z customers are shopping online through these platforms, the change was very deliberate.

For the company, e-commerce represents about 12% of total sales in Canada and about 7% in the United States. Of that, mobile represented 64% of web traffic and 45% of e-commerce sales in Canada and in the United States, 73% of its web traffic is from mobile which accounts for 55% of sales.

In terms of a straightforward business strategy, they’re more focused on the transition of their customer’s journey. Not only are GenZers spending money now, but also in time, they will transition into the ideal Aldo customer – a mid-20s, fashion-forward style seeker who still wants new trends at a good price.

Not Everything Is Changing

Image: Call it Spring

The new brand direction needed to be translated into something that still complemented their traditional brick and mortar locations. Throughout the rebrand process, a lot of thought went into how they continue to serve the loyal customer base that has been supportive for many years. Call It Spring will still have core products for everyday needs – from ballet flats to winter boots. However, they will now be interwoven with new trends that some might think are a bit fashion-forward. Ideally, customers will feel comfortable trying styles they see on Instagram without hurting their (or their parents’) wallet too much.

Their new demographic is admittedly young. As a result, the power of the parents is noteworthy and Call It Spring is savvy enough to know who controls the purse strings. Parents are a heavy influence in their marketing strategy.

“We believe it’s because we didn’t start as a Gen Z brand,” says Alyssa. “At Call It Spring, a lot of parents know us and they are already supporters. It’s often the parents who are onboard first and then they encourage their kids to get behind it.”

Only time and their customers will tell if this new iteration will stand the storms of a daunting retail environment.

Sidebar: ME to WE Partnership Focused On Education

In keeping with their philosophy of purchase with purpose, Call It Spring recently kicked off their Education Empowers program. This is an initiative in partnership with ME to WE, under one of its three key pillars of impact, Education.

Over the next three years, Call It Spring has committed to assisting communities in the Kenyan Maasai Mara. By helping build 10 classrooms in rural communities in the region, which will house over 400 female students, they will enable these young girls to go to school, which might not otherwise happen.

To raise money for this mission, Call It Spring is selling custom Rafiki bracelets in-store and online, with proceeds going back to filling those same classrooms with school supplies. Available exclusively through Call It Spring in store and online at https://www.callitspring.com/ca/en/metowe, each $3 bracelet purchased will provide enough school supplies for one student.

“When children in developing countries are educated, they are armed with the courage and self-confidence to better themselves, their families and the next generation,” says Monia. “They learn how to prevent illness, maintain infrastructure and secure sustainable livelihoods. It starts with education then ripples for generations – this is true for wherever you live in the world. That is why education is so important to Call It Spring.”

Vancouver-Based Women’s Retailer ‘The Latest Scoop’ Expands to Toronto

exc-5b9db03aaa4a990d7135cb14

Eclectic Vancouver-based multi-brand women’s retailer The Latest Scoop is expanding into Toronto and planning a broader Canadian expansion as it continues to find success with its wide-ranging merchandise mix.

The Latest Scoop, which operates four stores in Vancouver and a Toronto location at 115 Ossington Avenue that opened in early September, carries a broad array of merchandise including fashion, accessories, gifts, home décor and furniture.

“We believe people shop brick and mortar stores for an experience and that is what we try to offer our customers,” says Deb Nichol, owner of The Latest Scoop. “With our product mix, visual displays, and ever changing product, we want our customers to feel comfortable to linger and discover what we have to offer.”

The Latest Scoop carries a broad range of labels from Canada, the U.S. and abroad, with the selection of brands changing as often as every week or two. Examples include Soia & Kyo, Matt & Nat, Dolce Vita, Chinese Laundry, Rains from Denmark and Rolla’s From Australia. The retailer targets primarily women in the 25-45 age bracket, however Nichol says the retailer’s diverse product selection attracts a very diverse demographic.

“It’s a beautiful mix of age,” Nichol says.  “It’s very common to see both moms and daughters shopping together.”

The retailer first launched in Vancouver in 2004 as a pop-up retail concept. “I chose to open temporary pop-up stores that would not follow any retail rules. I would only open certain weeks or months in a year, sell a mix of eclectic ever-changing product, move about the city to draw in a client base and create visually exciting venues,” Nichol says.

The Latest Scoop treats each pop-up as an event, and puts considerable time and effort into designing each location—even if it’s temporary. The stores are designed to be inviting and appealing, with a sense of fun and discovery. The retailer has a visual merchandise team who works in tandem with local designers and architects, as needed, to ensure stores have the right flow and overall look.

“I believe it was successful from day one because we go all out on our temp stores while many other retailers that try it don’t put in the same effort,” Nichol says. “I am out for a reaction—I want my customers, whether they buy or not, to feel excited and inspired.”

As demand steadily grew and customers became eager for the opportunity to shop year-round, Nichol decided to begin opening permanent locations. The stores close for short periods at the beginning of each year, to allow the retailer to revamp the look of each location. And through monthly trips to trendy destinations such as Los Angeles or New York, Nichol and her team are able to source new product ideas on a regular basis, in order to keep their offerings current.

The Latest Scoop continues to rely on temporary locations as a way of exploring potential new markets. “Pop-up locations are now good ways for us to test market new cities and neighbourhoods. We’ll definitely be hosting pop-up venues in the Toronto area over the next year or so,” Nichol says.

The retailer decided to embark on a permanent expansion to Toronto after finding that many of its customers were from Toronto. The inaugural Toronto store is located on Ossington Avenue—a trendy area with plenty of modern retailers, bars and restaurants.

“We appreciate mainstream locations, but there’s something exciting about neighbourhoods such as Ossington—where locals live, shop and play,” Nichol says. “It’s exciting to be part of a neighbourhood that is growing—but growing with character.”

The new store is approximately 2,900 square feet, which is the average size of The Latest Scoop stores. Given the retailer’s extensive experience in the pop-up realm, however, Nichol says the size of its stores has ranged considerably.

“We can do smaller with less product mix, or we can do larger which means more furniture,” she says. “Our pop-up history has taught us how to be flexible!”

A second Toronto location is already in the works, with plans to open a store at 700 Queen Street West in March 2019. Once The Latest Scoop’s Toronto presence has been firmly established, the retailer will consider expanding to Montreal and potentially other markets. The chain has also been testing the U.S. market, with an eight-month pop-up location in California.

Danish Retailer ‘Change’ Plans 10 Canadian Stores for 2019

exc-5ba7cc19e79c705ac3a2ee3a

Danish lingerie and fashion brand Change (formerly ‘Change of Scandinavia’) is planning a substantial Canadian store expansion in 2019 that will include opening an anticipated 10 stores in British Columbia, Ontario and Quebec. The company is working with Tony Flanz of brokerage Think Retail on the expansion. 

The lingerie retailer has been in expansion mode for the past several years. Most recently, Change relocated its store at Metropolis at Metrotown, in suburban Vancouver into a 1045 square foot space on the mall’s busy second level on a run leading towards its food court and Hudson’s Bay anchor. As well, earlier this year, the company opened an 875 square foot unit on the second level in the Hudson’s Bay wing at the CF Lime Ridge shopping centre in Hamilton.

Change’s expansion over the past several years has brought its Canadian store count up to 20 units. Those include six in British Columbia (Vancouver x 2, Burnaby, Coquitlam, Richmond and West Vancouver), one in Saskatchewan (Saskatoon), eight in Ontario (Toronto x 3, Thornhill, Oakville, Burlington, Oshawa and Hamilton), and five in Quebec (Montreal x 4 and in Saint-Jean-sur-Richelieu). Change opened its first Canadian store in 2006. 

Change has seen tremendous demand which is due, in part, to its expansive range of bra sizes when compared to similar retailers. Change boasts a vast selection of more than 110 different sizes, with approximately 75% of its bras being in the DD to M cup size range (most lingerie retailers operating in Canada sell bras in the B-D size range). Change stores offers free bra fitting to ensure that its products meet the needs of its diverse customers, and prices are kept reasonable to attract a broad clientele. Approximately 75% of Change’s revenue comes from underwear and bras, with the remainder from loungewear, swimmer, nightwear and stockings. 

The company’s mission is “To provide the perfect bra to as many women around the world as possible,” and as such, it continues to open stores globally. 

Change is working with Tony Flanz of brokerage Think Retail on its Canadian store expansion, which will remain focused on large urban markets in British Columbia, Ontario and Quebec. It remains to be seen which markets will be next to see the brand, which is noticeably absent from large cities such as Ottawa and Quebec City. Change stores are ideally in the 600 square foot to 1,000 square foot range, and a review of its Canadian store locations indicates that Change would ideally locate either in a busy shopping mall or on a high street with heavy footfall. 

Change launched in Denmark as a private label brand in 1995, and its first retail store opened in Copenhagen in 2001. The company now operates more than 250 corporate and franchised stores  in 15 countries across three continents (Europe, Asia and North America), as well as an international e-commece website.

StyleDemocracy to Host Massive Puma Warehouse Sale Event

exc-5ba546871905f43cc2884765


puma-29.jpgpuma-29.jpg

By Retail Insider

Toronto-based StyleDemocracy, which is known as one of the country’s leading outsourced warehouse sale businesses, is hosting one of its well-known warehouse events next month where it will sell discounted merchandise from athletic brand Puma. Thousands of items from the popular brand will be made available to the public at the International Centre in Mississauga from October 3 to October 7.

StyleDemocracy, which was founded in the year 1999 as Canada’s first warehouse sale business, conducts many of its events at Mississauga’s International Centre. The Puma sale, which is in its 15th year with StyleDemocracy, is expected to draw crowds of over 30,000 people during the five-day event.


Oliver Berg.jpgOliver Berg.jpg

Such massive crowds are made possible through StyleDemocracy’s expansive email database, social media following and website traffic, as well as the company’s expertise in event marketing and event management. The highly respected company is headed up by President and Founder, Michael Berg, his son and Vice President, Oliver Berg.

“It’s been a really great opportunity to have worked with the Puma Brand for so many years,” Oliver Berg explained. ”The Puma Warehouse Sale is a brand in and of itself and it keeps getting bigger and better each year, as the brand has seen a real resurgence over the last few years”. Every year we’re always coming up with new ways to engage and interact with our customers and executing new marketing initiatives to attract new customers to this event!”

Puma is a satisfied client and has been working with StyleDemocracy almost from its inception. “Having worked with StyleDemocracy for 15 years – they have been a great solution for moving distressed & aged inventory while always keeping the Puma Brands best interest in mind, we have enjoyed the partnership & professionalism throughout our years working together,” said Puma Canada’s Vice President of Sales + Marketing, Mark Maguire.

StyleDemocracy’s warehouse sales, pop-up events and sample sales are held with a goal of 1) liquidating excess inventory, and 2) exposing StyleDemocracy’s clients to its massive community of shoppers (which is now estimated to be more than 250,000 across Canada).


styledemocracy-contest-winners-3.pngstyledemocracy-contest-winners-3.png


Puma SD.jpgPuma SD.jpg


puma-21.jpgpuma-21.jpg

StyleDemocracy has worked with some of the world’s leading brands on hosting warehouse sales, ranging from fashion brands such as Frank & Oak to luxury brand Hermes. In the spring of 2018, thousands lined up to get ahold of discounted Hermes merchandise — something that the luxury brand rarely makes available, and a major score for the credibility of StyleDemocracy as an industry leader.

For those who are interested in attending the Puma event at the International Centre in Mississauga from October 3 to October 7, you can get an extra 10% off on the opening day of the sale if you subscribe to StyleDemocracy’s email list.

And for retailers and other businesses that are interested in working with StyleDemocracy, you may contact: Oliver Berg, oliver@styledemocracy.com.