Miele Unveils First-in-the-World Flagship Prototype [Photos/Video]

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July 30, 2018

Miele Canada-Miele Canada opens Toronto Flagship Store with new — Miele at Yorkdale Shopping Centre (CNW Group/Miele Canada)

High-end appliance brand Miele has unveiled a new first-in-the-world interactive ‘Miele Experience Centre’ flagship at Toronto’s Yorkdale Shopping Centre, which will act as a prototype for future Miele locations in major markets globally. The highly experiential space could represent the future of experiential retail, which includes an interactive experiential component and even food that is made and served throughout the day.

The 2,200 square foot retail space is located in Yorkdale’s latest expansion wing, which features new locations for RH (aka Restoration Hardware) and Sporting Life. Miele describes its flagship as “digital first, but human at heart”, with a combination of digital elements, product experience and expert advice. “The new Miele Experience Centre is truly a unique showcase demonstrating excellent quality, technology and service”, says Yves Dalcourt, President of Miele Canada. “The experience we will give our customers will change the way people will look at buying appliances and will set a new standard within our industry.”

Yorkdale’s Miele Experience Centre is highly interactive — visitors are encouraged to try out appliances ranging from laundry and floor-care appliances to kitchen products through to ‘Smart Home’. It almost feels like a technology playground while at the same time, being a retail store where customers can buy the products.

As with many homes these days, the store’s kitchen area is the ‘heart and soul’ of the new store. Several times a day, a chef demonstrates cooking and baking in the dedicated space and as an added bonus, freshly prepared culinary treats ranging from croissants to homemade soup to pasta can be sampled by customers during their visit. There’s a lounge area adjacent to the store’s kitchen that encourages one to pause and enjoy.

Technology, including various digital elements, are an important part of Miele’s new space — ambient lighting and videos change with the time of the day, with five video screens grabbing the attention of visitors. Interactive displays throughout the store showcase the latest in Miele technology. At the ‘Swiping Cooktop Screen’, it’s possible to perform virtual cooking and to experiment with the various Miele induction cooktops on display. A 46-inch touch screen display on the ‘M-Touch Wall’ shows the product range with the eponymous technology in full size and illustrates the function of the controls which simplify the operation of numerous built-in appliances. This is new to Miele, as is the ‘Miele CareCollection Consumables Wall’ which, with the aid of short videos, informs visitors about Miele’s various cleaning and care products. Visitors can launch video demonstrations by simply scanning items using the NFC scanner provided.

Brand/retail consultancy FITCH designed the storefront as well as the series of playful, interactive spaces created to enable guests to explore and experience Miele products in action.

What’s interesting is while this store is ‘direct-to-consumer’, it’s not in competition with other retailers that sell Miele products. Miele utilizes a chartered agency system, where all products sold in third-party retailers actually interact with Miele itself. As a result, someone shopping at a multi-brand retailer might go to the Yorkdale location to test out some products, and Miele is able to track if the consumer came from that multi-brand store.

The store is Miele’s first ever to be located in a ‘premium shopping mall’ according to the company (Miele’s Calgary, Montreal, Toronto and Vancouver Experience Centres are in less-prime locations), and Yorkdale makes sense. The shopping centre is home to more luxury brands than any centre in Canada and the clustering has led to a loyal base of shoppers that are also considerably wealthy. A representative from Miele noted that in some instances, a Miele chef will attend a purchaser’s home to show them and any domestic staff how to use appliances, including creating a multi-course meal for educational purposes.

Miele representatives also explained that Yorkdale was chosen because it’s a busy mall with about 18-million annual visitors. The mall is also Canada’s most productive in terms of annual sales per square foot, which may continue to be the case as another Canadian Shopping Centre Study is in the works for 2018.

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About 30-40 more Yorkdale-like Miele Experience Centres are expected to open globally in the world’s major centres. Yorkdale is expected to be the only such experience centre in Canada, however, according to the company.

Miele is considered to be the world’s leading manufacturer of premium domestic appliances including cooking, baking and steam-cooking appliances, refrigeration products, coffee makers, dishwashers and laundry and floor care products. The Miele company was founded in 1899 and has eight production plants in Germany as well as one plant each in Austria, the Czech Republic, China and Romania. Its annual turnover in 2016/17 was about 3.93-billion Euros with sales outside of Germany accounting for 70% of that amount. Miele is represented with its own sales subsidiaries and via importers in almost 100 countries — the Miele company, now in the fourth generation of family ownership, employs a workforce of around 20,200, with 11,200 of those being in Germany. The company headquarters are located in Gütersloh/Westphalia, Germany.

Cutting-Edge Chicago-Based Fashion Designer Opens Retail Space in Toronto [Photos]

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Craig Patterson

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July 30, 2018

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By Craig Patterson

Cutting-Edge and unique fashion designer Shernett Swaby, based out of Chicago, has opened a boutique in Toronto. The store is called Swaby and is located at 632 Queen Street West, and it showcases some of the boldest fashion designs we’ve seen.

The concept itself is unlike anything in Canada to date. When someone purchases a garment from her brand, Swaby offers free alterations for the life of each garment and in some instances, Ms. Swaby herself will create a new design out of a garment at no additional cost. For example, a pair of pants may be turned into a skirt, lining in a garment might be replaced, or if someone’s body shape changes, garments can be modified. It’s part of an effort to make her clothing last for years by updating older pieces that might otherwise be discarded, with the longevity of garments, making Swaby both cost-effective as well as environmentally friendly.

Photo:  Alff Henry Exposure Network — *Photo: Alff Henry Exposure Network*

The company’s website states that it believes “that every woman should feel confident and beautiful whenever they get dressed, regardless of what size they are,” and that complimentary alterations are provided “including zipper replacements and lining replacements ‘and any other changes that might be needed to keep you enjoying your Swaby garment for the life of that garment”.

Prices range from a bit over $100 for a simple shirt to well into the thousands for bolder designs which even include impressive evening gowns. Ms. Swaby was in the new Toronto store last week to meet with clients and it’s clear that she’s passionate about her work as well as very skilled in her trade. Even during an opening event at the store, she was fitting clients with her unique designs, and shoppers we spoke with were impressed with the individual attention as well as the one-of-a-kind designs found in the store.

Shernett Swaby was born in Jamaica and grew up in Canada. She started sewing at age eight by making clothing for her dolls, as well as mending her own garments. Ms. Swaby’s mother was a seamstress who also acted as inspiration while teaching tricks of the trade. As an adult, Ms. Swaby continued to perfect her craft by creating garments that ‘celebrate individualism’ with an artistic flare.

Ms. Swaby was a top-five finalist on TV Series ‘Project Runway Canada’ about a decade ago and following that in 2009, she opened her first boutique in Chicago (she had been in business several years prior to the show, it should be noted). She continues to operate a store there at 750 Franklin Street in Chicago’s upscale ‘River North’ neighbourhood, which is known for its art galleries, clubs and now more than ever, luxury condominium buildings which in some instances have only one unit per floor.

Personalization remains key to swaby’s value proposition and remarkably, all of the garments and accessories that are sold at Swaby’s showroom are designed and manufactured on the premises. Ms. Swaby herself will be traveling regularly to meet with clients and Toronto will become something of a ‘second home’ with the opening of her Queen Street store.

Spanning about 1,100 square feet, Swaby’s Toronto store is located in what some say is one of the world’s ‘hippest’ areas, located alongside trendy stores and food establishments in the ‘West Queen West’ retail strip. Swaby’s Toronto store features a simple white interior which sets off her fashions, which change yearly as new themes are released. This season there are ‘ropes’ that adorn some pieces and ‘balls’ was the theme from last year — though given the customization possibilities, we’re told that almost anything is possible in terms of design, and that most requests can be accommodated.

Swaby also has a line of leather goods such as bags and belts that are hand-made by Ms. Swaby herself and this year, one of the themes is ‘origami’. Several of her creations are available in the store at the moment, some featuring a branded logo.

What sets Swaby apart from other design houses is the personalization that Shernett Swaby herself provides to her clients, and she has plans to grow her business to other major centres. Toronto is likely to be the only location in Canada for the brand, and next year she says she has her heart set on opening her first store in New York City. After that, the goal is to open Swaby stores in Paris and London.

Swaby’s new Toronto showroom is at 632 Queen Street West.

Photo: Alff Henry

Craig Patterson, now based in Toronto, is the founder and Editor-in-Chief Retail Insider. He’s also a retail and real estate consultant, retail tour guide and public speaker.

Follow him on Twitter @RetailInsider_, LinkedIn at Craig Patterson, or email him at: craig@retail-insider.com.

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Sporting Life Announces 1st Store Location in British Columbia

By

Craig Patterson

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July 29, 2018

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Upscale Toronto-based sport and fashion retailer Sporting Life is expanding into new markets. The company has just announced that its first store in British Columbia will open in the fall of 2019 at The Amazing Brentwood in Burnaby, east of Vancouver. It’s all part of an expansion to position Sporting Life as a national brand that will soon have stores in four provinces.

“Vancouver’s renowned active and health conscious population provides an ideal foundation for launching Sporting Life on the West coast,” said Sporting Life co-founder and CEO David Russell. “We’ve had our eye on this city since Patti (co-founder of Sporting Life) and I lived in Vancouver years back. We see the value in this market and believe in the retail environment. We hope to ultimately have three stores in the greater Vancouver area.”

The Brentwood Sporting Life store will span about 44,000 square feet according to the company, and will open in 2019. The store will feature attractive interiors and an assortment of designer brands, as with the company’s other stores.

Last summer, The Amazing Brentwood’s landlord SHAPE announced that it had partnered with the L Catterton group, which is a private equity firm linked with French luxury conglomerate LVMH (Louis Vuitton Moët Hennessy) and Groupe Arnault. The new $2 billion The Amazing Brentwood will become the focal point of a community that will include over a million square feet of retail space, considerable office space, as well as multiple residential towers for thousands of new residents. The first phase is scheduled to open in the spring of 2019.

The Amazing Brentwood’s retail component will house more than 250 stores, a ‘culinary collection’, and a one-acre plaza. An entertainment focus will also include the addition of Cineplex VIP Cinemas, as well as The Rec Room entertainment centre. Brentwood is eyeing luxury brands to move into the centre, placing it directly in competition with QuadReal’s Oakridge Centre on Vancouver’s West Side, which intends on becoming the region’s second ‘luxury node’ to complement the downtown Vancouver ‘Luxury Zone’.

Sporting Life was founded in 1979 and 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 Moncler, Canada Goose, Arc’teryx and The North Face, among others. It also carries a mix of high-end and casual clothing brands such as Barbour, Bogner, Hugo Boss, Mackage, John Varvatos and others. Fairfax Financial Holdings Ltd. bought 75% of Sporting Life in December of 2011.

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), Yorkdale Shopping Centre, Collingwood ON (222 Hurontario Street), Markham ON (CF Markville), Richmond Hill ON (Hillcrest Mall), Ottawa (Lansdowne) and two Calgary stores — one at Southcentre Mall and another at CF Market Mall. The Yorkdale and CF Market Mall stores are the chain’s two newest stores and both opened in the fall of 2017.

Sporting Life is in a growth phase that is seeing stores opening across the country. This fall, Sporting Life will open its first store in the Province of Quebec in a one-level retail space at Quartier DIX30 in suburban Montreal. It will be Sporting Life’s 11th store location as the company looks to double its store count over the next several years.

In a previous interview, David Russell 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 will be adequately served with two stores, an Edmonton location was a goal for the company, he said at the time (a downtown Edmonton deal unfortunately never materialized). The Greater Toronto Area has room for between two and three more Sporting Life locations, according to Mr. Russell, and the Montreal region could see as many as three stores as well. Store locations will ideally be in the 44,000 square foot range, he said.

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In an interview with Marina Strauss of the Globe & Mail [Paywall], Mr. Russell revealed that Sporting Life’s current annual revenue is about $160 million annually, and that the company intends to eventually see sales numbers of about $400 million from its 20 or so stores. The company 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%.

Sporting life is working with brokerage Northwest Atlantic for its Canadian expansion plans, with Chris Wood handling Western Canada and Sam Windberg handling Sporting Life’s eastward real estate expansion.

Shoppers Drug Mart Opens at the Base of Luxury Rosedale Building [Photos]

By

Craig Patterson

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July 29, 2018

Shoppers Rosedale — Shoppers Drug Mart Rosedale Rendering

Shoppers Drug Mart has opened a new store along the commercial strip of Toronto’s Rosedale area at the base of a multi-use luxury building which is in the process of being completed. The new store adds an expansive assortment of beauty products for those living nearby, as well as an assortment of grocery items for an area that probably could have used it.

The new store is located at the base of the ‘Hill and Dale’ building located at the southeast corner of Roxborough Street and Yonge Street, about a block north of the Rosedale TTC subway station. Hill and Dale, with a name derived from adjacent ’SummerHILL’ and ‘RoseDALE’ features six levels including a ground level with retail space, middle floors for offices, and upper-most floors featuring 17 luxurious residences with prices surpassing $2,000/square foot in many instances.

*FRONT ENTRANCE, FEATURING A STRONG AND UPSCALE GRANITE FEATURE WALL. PHOTO: CRAIG PATTERSON*

The new store is accessed from a corner location boasting high-end finishes including dark granite steps leading up to the store’s entrance. Inside, high ceilings showcase the store’s ‘BeautyBOUTIQUE’ cosmetics area which encompasses almost a third of the entire store. The back of the store features traditional drug store wares as well as a pharmacy.

Being under the same ownership umbrella as Loblaw, Shoppers Drug Mart has added a grocery area to the new Rosedale store that features refrigerators housing a variety of food items, ranging from packaged goods to vegetables. It’s a welcome addition to the area which generally lacks grocery stores, save for the nearby Harvest Wagon which is known for its high-quality groceries at expectedly high prices.

Shoppers Drug Mart Rosedale PHOTOS: CRAIG PATTERSON

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Expanding its food offerings has seen Shoppers Drug Mart address potential food deserts in some Canadian communities. Rather than a standalone grocery store having to set up shop and take a risk, Shoppers Drug Mart is able to utilize its own space to carry grocery items that might otherwise not be available in the area. This is proving particularly useful in some downtown areas such as in Edmonton, where Shoppers Drug Mart recently unveiled a two-level store at Edmonton City Centre which features an in-store grocery area. It’s no doubt a welcome addition to those living nearby, who would otherwise have to travel some distance to meet their basic grocery needs.

PHOTO: CRAIG PATTERSON

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The Rosedale Shoppers Drug Mart replaces a recently-shuttered location at 817 Yonge Street, which is a few steps south of the intersection where Yonge Street intersects with Church Street (to the west) and Davenport Road (east of Yonge). That 9,000 square foot retail space is currently being offered for lease, in an area that is seeing explosive growth in the forms of several thousand new condominium units to be finished over the next few years.

Shoppers Drug Mart is also adding other stores to the area, including a multi-level store at the southwest corner of Yonge Street and Charles Street which is under construction and will feature a heritage facade. Another two-level, 12,000 square foot Shoppers Drug Mart will open at the base of ‘The Britt’ residential tower under construction at the northeast corner of Bay Street and Wellesley Street. When finished, both stores will serve the densely-populated and highly-educated residential area which is adjacent to the University of Toronto, Government of Ontario, and several significant research hospitals.

BRIEF: Canada’s Largest Online Beauty Store Unveiled, Ikea Shelves Planned London Store

By

Helen Siwak

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July 26, 2018

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By Helen Siwak, Retail Insider Brief Editor

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Ikea Shelves Planned London Store: Swedish retailer Ikea has halted plans to open a 270,000 square foot store at Wellington Road and Highway 401 in London, Ontario. It was supposed to be under construction this year on a site that would have included a relocated and expanded Costco store.

Ikea told the London Free Press that Ikea still sees potential for a store in the London market, but that it is studying “new solutions” — the company is still said to be purchasing land on the PenEquity site, though details as to what’s going there are unclear at this time. It’s unfortunate news for locals who’d been looking forward to the store for years — for now they’ll have to be satisfied with locations being closer to and in Toronto.

Ikea has also just announced that its Quebec City store will be opening August 22 — Ikea is starting to open stores in secondary markets, and London was to be one of them.

It’s unclear what Ikea has planned for London, not to mention what will happen regarding the planned Costco store.

Shoppers Drug Mart Launches Monumentally Massive Online Beauty Store: Shoppers Drug Mart, Canada’s leading beauty and pharmacy retailer, unveiled a new e-commerce platform that brings together a wide selection of the company’s mass market cosmetics with an already vast range of luxury beauty products.

The new site—shoppersdrugmart.ca/beauty—is the country’s largest online beauty shopping destination, providing Canadian shoppers with hundreds of mass and luxury private label and international beauty brands.

Other perks of this powerful new location are the ability to earn and spend PC Optimum points, free shipping with minimum purchase of $50, free returns in store, and free samples (prestige purchases) and gifts with purchase.

Shoppers Drug Mart Corporation is one of the most recognized names in Canadian retailing, with more than 1,300 Shoppers Drug Mart and Pharmaprix stores operating in prime locations in each province and two territories.

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Jollibee Opens its 2nd GTA Location to Huge Crowds: The Greater Toronto Area’s second Jollibee location has opened inside of the Seafood City supermarket in Mississauga, and it continues to see crowds and lineups a week after opening. The Filipino restaurant chain recently told Retail Insider that it plans to open about 100 Canadian locations in five years.

BUILD IT by Design, known for its high-end retail and restaurant projects, built the space and supplied photos for this article. We’ve reported on several notable projects by BUILD IT by Design, which is expanding its own operations rapidly as new brands continue to rapidly enter Canada.

Jollibee began when Tony Tan and his family opened a Magnolia ice cream parlour at Cubao in 1975 which became the first Jollibee outlet. In 1978, Jollibee was incorporated as a 100 per cent Filipino-owned company with seven fast food restaurants within Metro Manila as its initial network.

In 2015, it reached its 1,000th store with its first location in Dubai, UAE, and now has more than 1,300 locations globally.

Read Retail Insider’s report on Jollibee’s aggressive Canadian expansion — the Philippines’ biggest restaurant chain is going to give homegrown brands a run for their money.

Ædelhard Pop-Up in Toronto Marks the First Brick-And-Mortar Location for Brand: Vancouver-based technical apparel men’s brand Ædelhard, which was launched several months ago in partnership with former Lululemon / Kit and Ace executive Darrell Kopke and Michael Nguyen (behind Toronto’s Garrison Bespoke), will have a temporary location in Toronto that will be open until Saturday and possibly beyond.

A ‘temporary menswear experience pop-up’ is now open at the TEN X TORONTO space at 107 Princes’ Blvd. in Toronto — until now, Aedelhard has sold exclusively online. The pop-up features numerous activations outside of selling apparel, such as a Corporate Tennis Tournament on July 27th that features celebrity tennis players wearing Aedelhard suits.

Ædelhard says that it aims to solve the problem of ill-fitting, uncomfortable business attire, and it appears to have solved it well. The brand currently features a selection of separates that can be mixed-and-matched with ease — Mr. Kopke wore a suit that he explained felt like a sweatsuit, and has been tested in the gym. Aedelhard applied bespoke tailoring to technical stretch fabrics to make the “world’s most comfortable suit.”

The line includes suit jackets, trousers, shirts and accessories, at a contemporary price point that makes it accessible to many. The collection can be viewed at Ædelhard’s website: aedelhard.com.

Could the Toronto pop-up lead to permanent Ædelhard stores? Stay tuned as we track the progress of this unique Canadian fashion brand.

MVMT Adds Brick & Mortar to Its Canadian Strategy: With their hipster name and ultra-cool styling MVMT Watches (pronounced Movement) is tick-tocking their way beyond online e-commerce and launching on August 15th in Watch It, department store La Maison Simons, and 90 of Hudson’s Bay’s locations across Canada.

MVMT was founded by two college dropouts in 2013 as a direct to consumer e-commerce company. Now, as the fastest growing watch company with an online community of more than 3 million fans, MVMT’s in-store launch is a direct response to growing demand for the brand’s premium, on-trend products and proves that physical retail experiences are still valued by consumers.

Loved by millennials, trend-setters and adventurers alike, MVMT watches are designed and crafted to compliment all styles and feature straps in leather, nylon, silicone, and stainless steel; a variety of color selections, and five sizes to suit anyone’s wrist.

Joe Fresh Expands Activewear Category to Include Extended Sizes: The beloved Joe Fresh activewear category – a collection that is all about cool, comfortable pieces that makes it super simple to take your activewear, anywhere, has extended its selection to offer extended sizes (0-22, XS-3X) to its customers. The extended size activewear collection became available Thursday, July 19th both online, and in-stores.

Founded in Toronto in 2006 by Toronto’s Joe Mimran, Joe Fresh started by providing a uniquely accessible shopping concept to fashion consumers in Canada. Today, the brand is one of Canada’s leading fashion retailers, with products available at over 1,450 retail locations, including over 350 Loblaws locations, 1,100 Shoppers Drug Mart locations, and 11 freestanding stores.

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Pyrrha Jewelers Launches 100% Sustainable Fine Jewelry Collection: After 23 years creating jewelry, and more than a decade since the launch of its iconic signature talismans, the designers behind Pyrrha, Danielle Wilmore and Wade Papin have introduced their newest ‘Fine Jewelry Collection.’

The company proudly espouses the circumvention of the damaging impacts of mining by casting their jewelry from 100 percent reclaimed precious metals, source conflict-free precious and semi-precious stones and freshwater pearls. Their business is Vancouver-based with a Los Angeles flagship and operates with transparency, sustainability, and has grown organically.

Crafted by hand using old world techniques, the new jewelry features a striking black ceramic design element and is comprised of a large selection of delicate 14K talismans cast using authentic wax seals and imagery from the Victorian era.

Pyrrha can be found at leading boutiques around the world and around the necks of major celebrities such as Chris Hemsworth, Katie Holmes, Jodie Foster, Lady Gaga, and Taylor Swift.

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Save the Duck says %*&$% to Wearing Real Duck Down: Save the Duck, a Milan-based outerwear company that is 100% green is distributing its Fall/Winter 2018/2019 STD Collection through its fashion office in Montreal. The vegan line is distributed throughout Canada by La Maison Simons, Hudson’s Bay Company, Holt Renfrew, and Quebec’s Sportium.

Save the Duck does not use traditional goose down feathers and instead uses their proprietary Plumtech® technology. The brand’s 100% cruelty-free faux-down jackets are lighter, warmer, more breathable, and perfect for the cold weather. This Italian brand also offers a line of jackets made of recycled polyester and are perfect for traveling in all weather conditions as well. They fold easily into a small carry-on or a medium bag.

Not only are Save the Duck jackets eco-friendly and fashionable, but they are also among the most sustainable and durable jackets on the market. Succeeding where even leading brands Mountain Hardwear, Europe’s Rab, and North Face have been unable. Save the Ducks’ completely animal-free suit took professional mountaineer Kuntal Joisher all the way to the top of Mount Lhotse, the world’s fourth tallest mountain.

Today the company claims to have saved over 3M ducks from 2011 to 2017. That is nothing to quack about!

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Wicker Emporium Assets For Sale: As reported in Insolvency Insider, MNP, in its capacity as CCAA monitor of Halifax, Nova Scotia-based Wicker Emporium, is soliciting offers for the sale of the company’s assets to a party interested in continuing to run the company as a going concern. In addition to acquiring the assets which include inventory and store fixtures, interested parties should be prepared to maintain the remaining lease obligations and employees. Further details can be found HERE. The deadline for offers is August 10.

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Helen Siwak is the publisher of EcoLuxLuv.com Magazine, a freelance content creator specializing in retail and luxury lifestyle. She is a regular content contributor to Boulevard Vancouver (English & Chinese), Retail-Insider, BLUSH Vancouver, and has lifestyle blogged for StyleDemocracy and Daily Hive. When not writing, she is attending fashion events, traveling, and advocating for animal/human rights. helensiwak@yahoo.com.

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Canadian Retail Sales Continue Weakening Trend

By

Craig Patterson

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July 26, 2018

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By Ed Strapagiel

The most recent Statistics Canada numbers show an uptick in Canadian retail sales in May 2018. Is this a turnaround? That’s not too likely. First of all, it’s not at all unusual to hit a particularly hot or cold retail sales month at any time, and one month does not a trend make. Secondly, and more importantly, the recent uptick was nowhere near enough to compensate for weak sales growth in the immediately preceding months.

After 5 months, 2018 year-to date total Canadian retail sales are up 3.6%. That’s not great, and it’s significantly less than the 6.2% growth recorded after the first 5 months last year.

The 3 month growth trend (orange line in the chart above) shows the recent uptick, but it’s still running well below the underlying 12 month trend (green line). At this rate, 2018 could end up being the slowest year in recent history.

Food & Drug

Retail sales in the Food & Drug sector were up only 0.8% year-to-date through to May 2018, one of the lowest results ever for the first 5 months of a year. The 3 month growth trend (orange line) has declined unrelentingly since the middle of last year, and the underlying 12 month trend (green line) is following suit.

The largest component of this sector is supermarkets & other grocery stores, but their retail sales were down 0.8% year-to-date. In contrast, retail sales at the small specialty food stores group were up 11.1%.

At one time, health & personal care stores were the sales growth leaders in this sector. Those days appear to be over now. Their retail sales recorded a flat 0.0% change year-to-date after 5 months of 2018.

Store Merchandise

After 5 months of 2018, year-to-date retail sales in the Store Merchandise sector were up 4.7%. This is “not bad”, but still not as good as the 6.5% annual gain recorded last year.

The trend lines however are discouraging. The 3 month growth trend (orange line in the chart above) has been steadily weakening since about the middle of last year. The underlying 12 month trend (green line) peaked in Q1 2018 and is now starting a downward slide.

On a year-to-date basis, only electronics & appliance stores are doing exceptionally well, with retail sales up 11.7% after 5 months of 2018. At the other end of the spectrum, shoe stores sales declined by 3.5%. Retail sales at general merchandise stores, which account for about 1/3 of the Store Merchandise sector, were up a relatively modest 2.8% year-to-date.

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

Much of the accelerating growth rate of Canadian retail sales in 2016 and 2017 was due to The Automotive & Related sector. Since late last year however, the 3 month growth trend has significantly weakened. The underlying 12 month trend is now heading downward, about as fast as it came up in 2017.

Sales at new car dealers appear to have suffered a major reversal of fortune. After 5 months of 2018, their year-to-date retail sales are up just 1.6%, after annual increases of 10.0% and 9.4% in the previous 2 years. Things are unlikely to turn around soon, given rising interest rates and possible tariff issues.

Year-to-date retail sales were up 10.8% at gasoline stations after 5 months of 2018. This is all due to higher gas prices at the pump, rather than any real economic gain. Nevertheless, it helped to keep up overall retail sales numbers.

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.

For definitions of store types, see Statistics Canada NAICS.

Canadian E-Commerce Stats

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 2.7% of total Canadian retail sales for the 12 months ending May 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 12.6% year-over-year for the 3 months ending May 2018, but this is much less than the 33.4% 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 may be 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 May 2018, electronic shopping and mail-order houses had an estimated $9.41 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 May 2018, this group had an estimated $7.08 billion in e-commerce sales. With electronic shopping and mail-order houses, there’s a grand total of $16.50 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 83.1% 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 57.1% of all e-commerce sales in Canada, while (mostly) bricks & mortar location-based retailers’ share of e-commerce is 42.9%.

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

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

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Innovative Fashion Brand ‘Reformation’ Plans to Enter Canada with Retail Stores

By

Craig Patterson

-

July 25, 2018

Eco-friendly US-based women’s fashion brand Reformation has retained a brokerage to enter the Canadian market by opening direct-to-consumer stores. The cutting-edge retailer will no doubt wow Canadians with its in-store technology, and impress with its sustainability focus. Reformation is the latest international retailer to look to enter Canada, which is seeing unprecedented interest from foreign retailers looking to open standalone stores.

Known for being a “cool girl” clothing company (as stated in Allure), Reformation has become popular amongst celebrities such as Rihanna, Taylor Swift, and model Karlie Kloss. The company says that its goal is to create designs that are sexy, edgy and feminine, utilizing sustainable methods and materials.

Reformation’s fashions are, in many instances, vintage-inspired with products such as maxi dresses with high slits and button-down dresses with kitchy slogans — it’s something of a deviation from eco-friendly labels that might be more ‘hippie style’. Prices are mid-range — dresses on its US website generally range between $128 and $218 for example. New designs are released regularly, sometimes as often as every week. About 60% of the brand’s clothing is manufactured in its Los Angeles factory, and the company continues to seek ways to increase production while staying true to the brand’s ethos.

The majority of Reformation’s woven fabric is made of viscose, a man-made fibre made from renewable plant material. About half of its viscose fibre is manufactured by Austrian company Lenzing, and the other half comes from an Indian manufacturer — they’re the only two such suppliers that Reformation has deemed worthy, given their high score in a CanopyStyle audit (which certifies that trees are sources sustainably and that ancient/endangered forests weren’t harmed, amongst other considerations). Several other fibres are used in Reformation’s fashions, including TENCEL™ Lyocell and viscose (a wood based fibre), linen, and Recover® yarns that are made from old clothes and fabric waste. In-store displays provide information on products using a ‘RefScale’, which is a measure of the garment’s manufacturing process which includes water usage, carbon emissions, and waste generated in manufacturing.

Furthermore, nearly 15% of Reformation’s products are made out of “deadstock” fabrics — the company buys old, leftover, and over-ordered fabric from other designers and fabric warehouses. As well, between 2% and 5% of Reformation’s products are made from vintage clothing, which is purchased from wholesalers in the United States.

Its store format is akin to a tech-heavy showroom, where one of each item is on display in the retail space. Shoppers can browse samples and select what they’d like to try on through touchscreen monitors in the store (in a cheeky fashion, some monitors say ‘I like to be touched’). Sales associates bring shoppers the items they’d like to try on through double-sided wardrobes in dressing rooms. If an item doesn’t fit, shoppers can request a different size using a tablet, and a voice in the device’s speaker guides the shopper to close the wardrobe door — in 90 seconds or less, new items are added. If shoppers choose to not interact with store employees, items can be ordered to a fitting room using one of the monitors, which updates the store’s inventory in real-time.

It’s all about the experience and Reformation’s dressing rooms also feature phone chargers, speakers (customers can choose their own music), and buttons that allow shoppers to change lighting to a desired ‘colour temperature’ — settings include ‘basic’, ‘cool’, ‘golden’ and ‘sexy-time’. Such innovations are currently uncommon in Canadian stores, and Reformation’s business model could serve to differentiate it from competitors (including online shopping).

The lack of stock on the sales floor, as well as hangers that fit into ‘grooves’ gives Reformation the appearance of being a higher-end store. The lack of displayed stock also removes the need to rummage through seemingly endless racks of clothing in stores such as Winners or Hudson’s Bay.

According to its website, Reformation has 13 stores in the United States — four are in the Los Angeles area, four in New York (one in the Hamptons), two are in San Francisco, and there are individual stores in Boston and Dallas. Stores in Santa Monica CA and Washington DC are on the way, according to its website, with reports noting that Chicago and other cities will also see locations. Reformation stores are located on urban street-fronts from the addresses listed on its website.

Reformation has retained Jeff Berkowitz of Aurora Realty Consultants to spearhead Reformation’s expansion into Canada. According to Aurora Realty Consultants’ website, Reformation stores in Canada will ideally be in the 2,000 to 3,000 square foot range on high streets.

Given its eco-messaging and innovative technology, Reformation is likely to be a hit amongst Canadian shoppers. It’s anyone’s guess where the retailer will choose to open its first store, with targeted high streets possibly including the likes of Queen Street West in Toronto — Canada’s largest city is the likely entry point. We’ll be following this story and will announce any locations once they’ve been secured.

International retailers are looking at entering the Canadian market like never before. Last year we counted more than 50 brands that entered Canada by opening stores, and this year there could be even more. It’s ultimately going to be a matter of survival of the fittest, and innovative retailers like Reformation could end up taking market share from more traditional and homegrown retailers.

Chinese Shoppers Target Canada as Top Travel Destination, Canadian Retailers Take Note

By

Craig Patterson

-

July 25, 2018

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By Rita Liu, Head of Canada, Alipay

Canada has become one of the top tourist destinations for Chinese consumers. By the end of 2018, Canada will host a record number of Chinese travelers, surpassing last year’s nearly 700,000 visitors, according to predictions. Canada has set a goal of doubling this number by 2021, and as relations between China and Canada strengthen, both governments have officially named this the “Canada-China Year of Tourism.”

This is an exciting time to be a brand or retailer in Canada. Chinese travelers come ready to spend on products they cannot find at home, as well as on special experiences throughout their trip. However, in order for retailers to best serve this lucrative and growing market, it’s important to prepare for this consumer’s preferences and shopping behaviors – addressing the cultural differences and barriers that may make it challenging for them to shop in Canada.

In China, mobile wallets are used for much more than payments — they are also connecting users with an experiential ecosystem centered around everyday life. Mobile wallets in China are not only used to pay and transfer money to friends and family, but also for everything from booking movie tickets and calling taxis to paying utility or hospital bills and searching for nearby merchants’ coupons and deals.

Holt Renfrew, Oxford Properties’ Yorkdale Shopping Centre and Ivanhoé Cambridge shopping centers are among those in Canada that are already embracing the Chinese shopper by adapting to their cashless lifestyle, offering incentives to shop and accepting familiar payment methods.

Embrace the Cashless Lifestyle. Chinese consumers are early adopters of the cashless lifestyle, and their use of mobile wallets drives their purchase decisions. A recent report by Nielsen found that nearly all Chinese travelers (91%) would be more willing to shop and spend at overseas merchants if they accepted Chinese mobile payments. Furthermore, 93% of Chinese tourists would use mobile payments overseas if given the option. When Chinese consumers visit Canada, whether it’s to work, study or travel, they bring this expectation for a cashless lifestyle with them.

Offer Incentives and Convenience. Mobile wallet acceptance opens the door for Canadian retailers and brands to connect with Chinese consumers before, during and after their trip, helping them to find the location of the store and receive offers or promotions through push notifications. When they know they can use their favorite mobile app at the register, the stress of language and payment barriers is diminished.

Accept Familiar Payment Methods to Build Loyalty. Canadian retailers and brands that offer familiar in-store payment solutions to Chinese shoppers will provide a welcome experience that may not only incentivize purchases, but also encourage loyalty. This can result in reoccurring store visits and even broaden awareness through word-of-mouth within the community. As mobile payment acceptance builds in Canada, merchants that accept payment through Chinese mobile wallet apps will be better equipped to innovate faster and readily meet the changing demands of Chinese shoppers.

Today, when a Chinese traveler arrives in a Canadian city, they will expect to use their preferred mobile wallet app to not only pay at the register, but also connect with Canadian hotels, restaurants, cab companies, ticket distributors, and more at thousands of locations across Canada. This significantly diminishes currency and language barriers, making it easy for them to shop without the friction international travelers face when confronted with different forms of payment.

Rita Liu joined Alipay in 2010 and was initially responsible for driving partnerships with major Chinese banks. From 2014 to 2017, Rita was Head of EMEA for Alipay, based in London, responsible for Alipay & overall business in the region, overseeing business development, operations and marketing activities. She has recently taken new responsibility as Head of Canada, starting to build the firm’s business and strategy in Canada. Before joining Alipay, Rita worked with American Express as business development manager. Follow her on Twitter at @rita2016alipay.

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Ivanhoé Cambridge Announces Significant Renovation of Mic Mac Mall, including Target Space Tenant

By

Craig Patterson

-

July 25, 2018

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Shopping Centre landlords in Canada have invested billions in their properties over the past several years. The latest landlord to announce a major investment is Ivanhoé Cambridge, which is spending more than $55-million to renovate its Mic Mac Mall property in metro Halifax.

Ivanhoé Cambridge confirms that it will be upgrading the mall’s common areas, including new flooring and handrails throughout, renovated washrooms (including a new family washroom), a relocation and replacement of the existing ‘centre court’ escalators and the replacement and relocation of the ‘south court’ escalators which the landlord says will be utilized to create additional retail offerings. A new entrance at the south-end of the property will be added, and upgrades to the exterior entrances and lighting are also part of the plans.

As well, the mall’s third-floor food court will be renovated, including new seating and lighting. Mic Mac Mall will remain open during the entire project and the majority of the work will be completed by the end of 2019, according to Ivanhoé Cambridge.

“Mic Mac Mall has a dominant position in Greater Halifax,” said Claude Sirois, President, Ivanhoé Cambridge Retail. “This project will help redefine its retail and service offering and will enhance its competitive positioning, which will benefit the 5 million-discerning visitors that shop at Mic Mac Mall every year.”

Ivanhoé Cambridge has announced that Montreal-based Linen Chest will become a new anchor to the centre. Linen Chest recently introduced a new modernized store concept that it plans to roll out nationally, in a ‘boutique-inspired’ setting with an “emphasis on storytelling” and a “three-dimensional ‘lookbook’ open-frame structures throughout the store to showcase vignettes of curated merchandise. The store will feature an interactive kitchen with cooking demonstrations every weekend, as well as an espresso bar where customers may enjoy a complimentary cappuccino. Design firm GH+A is designing the space.

Linen Chest is moving into part of the mall’s former Target space. Target vacated Canada in early 2015 and landlords nationwide have been working to fill these spaces. Target occupied about 122,000 square feet at Mic Mac Mall, and other large tenants are expected to join Linen Chest in the repurposed space. ‘Cultural Department Store’ Indigo currently operates a store at Mic Mac under the Chapters nameplate, and Indigo has said that it plans to phase out the Chapters name as it renovates and replaces stores with its newest concept. While it hasn’t been confirmed by either Indigo or Ivanhoé Cambridge, Halifax-based retail blog ‘Halifax ReTales’ reported in April that it had seen renderings of an Indigo store that will be located next to Linen Chest. The publication also says that retailer Hot Topic will be opening in the centre, and also speculates that plus-sized womenswear brand Torrid and at least one major restaurant will be moving into the centre.

Mic Mac Mall, is one of the largest shopping centres in the Maritimes with about 160 retailers and 3,100 parking spaces in a centre spanning more than 665,000 square feet. Hudson’s Bay is the mall’s primary anchor with more than 150,000 square feet, as well as smaller anchors such as Winners/HomeSense, Forever 21, Designer Depot, Old Navy and H&M. It’s also one of the most productive malls in the region, according to Retail Council of Canada’s latest Canadian Shopping Centre Study.

‘Bloodbath’ for Canadian Grocers as Consumers Demand Convenience

By

Sylvain Charlebois

-

July 24, 2018

'Bloodbath’ for Canadian Grocers as Consumers Demand Convenience

By Sylvain Charlebois, Professor in Food Distribution and Policy, Dalhousie University

Despite posting decent financial results this year, top line sales have been quite a challenge for our grocers so far. Coupled with a somewhat weak food inflation rate, sales at major food retailers are tumbling faster than Niagara Falls. Recent StatsCan figures suggest the market shift many industry pundits were dreading is indeed happening. Top grocers such as Loblaw, Sobeys and Metro are seeing their world being turned upside down by consumers who are more than ever obsessed with convenience. In other words, grocery shopping habits are changing, and fast.

The most disturbing of the recent statistics are the retail sales generated by the food sector. Supermarket and grocery store sales decreased 3.1%, in a single month. Food retail sales dropped by $221 million in May. Such an amount could be enough to force grocers to close almost 30 decent-sized stores and put nearly 2,000 people out of work. That’s only for the month of May. StatsCan reports that retail food sales have been down in four of the last five months. Convenience and speciality stores are bucking the trend and are faring much better. Food sales from convenience stores have increased by more than 6% since last year while speciality store sales have increased by more than 10%. In other words, the major chains are seeing their customers flee as food demand is becoming more fragmented.

Most Canadians would not have thought of convenience as, well, fitting to their modern lifestyle. But an increasing number of Canadians are apparently getting a taste of it and want more. Ready-to-eat solutions are more prominent than ever. Even vending machines are increasingly becoming go-to places for quality meals consumed outside the home. Online food shopping, mostly for non-perishable staples, is also becoming common practice for consumers, thanks to what is now known as the Amazon effect. With the ready-to-cook segment growing at an incredible rate, now worth almost $200 million in Canada, fewer shoppers are showing up at the grocery store. Or at least, consumers appear to be spending less at big box stores, forcing grocers to go after consumers’ money, instead of just waiting for it to come to them.

Food inflation is another source of pressure. The national rate sits now at 1.4% for the month of June, compared to 1% in May. Prices are back on the upswing, yet in many parts of the grocery store, prices are relatively stagnant. Given that the cost of food eaten outside the home is still showing dramatic increases, up by more than 4%, food inflation data remains cruelly misleading for grocers. Food service is progressively winning over food retailing.

According to Statistic Canada, at retail, almost everything is now cheaper than it was in January. Of the more than 45 items in our typical food basket, half cost less than they did at the beginning of the year. Round steak, pork chops, bacon, chicken, pasta, and even eggs are all less expensive. Roasted coffee is a surprising 17% cheaper than it was in January. But consumers are not spared inflation entirely. Apples are up 11% since January, and carrots are up 22%. Ottawa’s reactionary measures against the Trump administration may have also enticed grocers to increase prices ahead of the July 1st deadline, when 10% tariffs were imposed on specific U.S. imported food products. Tariff-stricken categories like ketchup and orange juice have seen prices go up in June by 4% to 5%. Orange prices were especially affected, increasing by 13% in one single month.

The overall inflation rate is 2.5% which boosts chances for a Bank of Canada move. Interest rates could be increased within the next several weeks, putting even more pressure on grocers who are looking at investing as a means to compete in the era of the omnichannel business model. For consumers, borrowing money will cost more and a growing number of them could start to trade down when food shopping.

Grocers are not only trying to keep foot traffic at a decent rate in their stores, they are also extending their e-commerce strategy. They just don’t have much of a choice. Costco has just announced it will run a pilot project in Ontario to evaluate market potential for home delivery. With less than 100 locations in Canada, compared to the thousands of outlets owned and operated by major grocers, Costco will make things interesting over the next few months. Costco’s discounting has impressed many Canadians as its market share is already at 12% in Canada, up from 9% just a few years ago. Given how much one buys at Costco, buying online and having someone carrying everything for you is a suitable proposition, isn’t it?

Grocers will need to continue to innovate and accept the fact that “business as usual” in food distribution is strategically suicidal. Canadians are deserting the old model and seeking something new, at a much faster rate than expected. Losing 3% of sales in one single month is just not sustainable. This is what disruption looks like in food distribution.

Dr. Sylvain Charlebois is Dean of the Faculty of Management at Dalhousie University in Halifax. Also at Dalhousie, he is Professor in food distribution and policy in the Faculty of Agriculture. His current research interest lies in the broad area of food distribution, security and safety, and has published four books and many peer-reviewed journal articles in several publications. His research has been featured in a number of newspapers, including The Economist, the New York Times, the Boston Globe, the Wall Street Journal, Foreign Affairs, the Globe & Mail, the National Post and the Toronto Star. Follow him on twitter @scharleb.

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