Retail Innovation: Must-Attend Executive Development Program, Spring 2018

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February 14, 2018

Group+shot+RISE — Retail Innovation: Must-Attend Executive Development Program, Spring 2018

A new program at Saint Mary’s University in Halifax is designed to provide leaders with the skills, tools and insights to stay ahead of the curve in the rapidly, ever-changing retail landscape.

Instead of wondering what the future has in store, the program helps leaders proactively shape that future.

Dr. Ramesh Venkat is the director of the David Sobey Centre for Innovation in Retailing and Services and an Associate Professor of Marketing with the Sobey School of Business at Saint Mary’s University. In an interview, Dr. Venkat said the Retail Innovation, Strategy & Excellence program (RISE) is a response to the disruption happening in the retail environment. This disruption is driven by new technologies and business models, demographics, globalization, new ways of competing and new ways of taking product to market.

Retail Innovation: Must-Attend Executive Development Program, Spring 2018

He said retailers who are not able to respond to these disruptive forces are struggling. “Historically, retailers have been slow to react but that is changing,” said Venkat. “Retailers have to adapt and respond.”

“The program’s purpose is to have retailers prepare for this future – to help them become more creative and innovative so they can compete in this unprecedented environment.”

The RISE program will take place April 8 – 13. Participants will tap into current ideas presented by retail thought leaders and subject matter experts. People can register here: http://www.smu.ca/academics/sobey-executive-education-program-register.html or learn more here: http://www.smu.ca/academics/sobey/retail-innovation-program/who-should-attend.html

Venkat said the changing retail environment impacts all retailers no matter their size or what they’re selling. But for larger retailers, these changes are on a different scale.

“We take that into account. RISE is geared slightly towards medium to larger retailers, but it doesn’t preclude the participation of smaller companies,” he said.

“We expect participants will have some responsibility for innovation and change. It will be people who are focused on technology, focused on the customer experience, or on improving retail operations. There is opportunity for innovation within these areas. Anyone with the mandate or need to innovate and improve their business is a potential participant.”

Venkat said the program is unique — it doesn’t focus on day-to-day retail operations. It focuses on the big picture and strategic issues.

“It gets companies to think about the future . . . it’s an opportunity for executives to think about how they are going to prepare their organizations to compete effectively,” he said. “That’s what sets this program apart from other programs which tend to be more operationally-focused.”

The RISE program description says participants will gain knowledge, attitude and skills in a range of areas, which will enable them to plan for excellence in retail execution:

1. Understand the disruptive forces impacting the retail sector

2. Gain new perspectives into retail business models and innovation, and think about strategy through the lens of innovation

3. Demonstrate how to use data analytics to make evidence-based decisions, and improve retail operations and business performance

4. Learn frameworks and tools to build a customer-centric retail brand that incorporates digital strategies

5. Analyze strategic and operational retail challenges and formulate appropriate solutions

6. Develop greater personal awareness of leadership and decision-making style, and improve ability to work in, and lead teams

7. Identify and lead innovation and improvement opportunities

8. Develop both personal and company action plans focused on an innovation opportunity, which you can continue after the program

To learn more about Retail Innovation, Strategy and Excellence, you can visit the David Sobey Centre’s website: http://www.smu.ca/academics/sobey/retail-innovation-program/retail-innovation-program.html or register here: http://www.smu.ca/academics/sobey-executive-education-program-register.html.

DSW Designer Shoe Warehouse Announces 3 Spring 2018 Canadian Store Openings

By

Craig Patterson

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February 14, 2018

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By Craig Patterson

Popular off-price multi-brand American footwear retailer DSW Designer Shoe Warehouse has announced that it will be opening three stores in Canada this spring, bringing its Canadian store count to 27 units nationally. Of the three new locations, two stores will be located in Ontario, and one will be in suburban Edmonton — the Edmonton store will be in a centre that’s been somewhat secretive about its tenant mix until now.

All three stores will feature DSW Kids footwear and accessory departments, bringing the total number of stores with kids’ products to 17 in Canada. The new stores will also include about 1,500 square feet dedicated to women’s handbags, as DSW further grows its accessory business to compliment expansive off-price footwear offerings.

The two new Ontario locations will both open on March 1 of this year in suburban Toronto — one at Trinity Commons in Brampton, and another at RioCan Durham Centre. Both properties are owned and operated by RioCan REIT.

The Trinity Commons DSW store in Brampton will span about 25,000 square feet, according to lease plans provided by RioCan. DSW will join a 25,000 square foot Winners as well as a new 23,170 square foot Michaels store in a demised retail box that once housed a Target store — Target exited its Canadian operations entirely in the spring of 2015. Other anchors at Trinity Commons include the Home Depot, Canadian Tire, Metro and a Cineplex Silver City movie theatre, as well as several other anchors exceeding 20,000 square feet in the suburban big-box centre.

The Ajax store, located at RioCan Durham Centre, will measure about 20,000 square feet, according to a lease plan provided by RioCan. The store will be located between a Structube furniture store that will open soon, and a large PetSmart location. RioCan Durham Centre is also a significant big-box centre featuring large anchors such as Costco, Canadian Tire, Home Depot, Walmart, Canadian Tire and a Cineplex cinema, as well as several smaller anchors measuring 20,000 square feet or more.

*[Premium Outlet Collection at Edmonton International Airport, opening May 2018. Rendering: Ivanhoé Cambridge]*

The Edmonton DSW location will be at the highly anticipated Premium Outlet Collection — Edmonton International Airport, which opens to the public on May 2, 2018. DSW will occupy space ‘Anchor H’ according to plans, with the outlet centre having the address ‘1 Outlet Collection Way’.

The Premium Outlet Collection EIA has yet to release details on its other anchors and retailers, and is expected to make announcements closer to its official unveiling. A few retailers have confirmed that they will be opening at the centre, including Old Navy, Nike, Under Armour, ECCO and H&M, as well as at least two of TJX’s off-price brands. Nordstrom Rack and Saks OFF 5TH will not be opening at the outlet centre — Saks OFF 5TH has a store nearby at South Edmonton Common, and Nordstrom Rack will open (what will likely be its only Edmonton location) at South Edmonton Common in the fall of 2018.

When all three stores are open, DSW will have 27 store locations in Canada. DSW entered the Canadian market through a partial acquisition of Town Shoes Ltd, which operates banners Town Shoes, Shoe Warehouse and The Shoe Company. DSW’s first branded stores opened in the Toronto market in August of 2014, and DSW Inc. continues to have a 46.3% ownership in Town Shoes Limited.

DSW has managed to open stores in many major markets in Canada — and even some smaller markets such as Victoria, Regina, Moncton and Halifax. The retailer has no stores in Quebec as of yet, however. The company’s expansion slowed in 2017 from its initially rapid expansion that began in 2014, though this spring 2018 announcement could be a sign that things are ramping up in terms of store openings. With the closure of Sears Canada, large-format retailers such as DSW now have more real estate options at more favourable lease rates, as landlords seek to repurpose vacated space.

In the United States, DSW boasts 511 store locations in 43 states with more than 12,000 employees. The company was founded in 1969 as Shonac Corporation (a shoe licensee for Value City) and its first standalone DSW store opened in Dublin, Ohio, in July of 1991. The company continues to expand domestically as well as internationally, including opening partner stores in the Middle East.

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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Can Government-Approved Pot Beat Street Weed?

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Retail Insider

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February 13, 2018

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

A key goal of legalizing recreational cannabis is squeezing out illegal suppliers. But how competitive will legal cannabis retailing be against established black markets?

That’s a key question for federal and provincial politicians. Governments don’t like pot consumers funding organized crime.

That question may also interest investors. They’ve pushed up cannabis stock prices and created demand for four cannabis exchange-traded funds. Alcohol and tobacco companieshave bought stakes in cannabis growers. Suppliers of hydroponic equipment and online retailing software could benefit too.

To answer the question, consider the “four Ps” that marketers work with in every industry. Those are the product characteristics, price charged, place where sold and promotion activity. From this viewpoint, legal vendors have some potential advantages. But they face major challenges under current government plans.

Pricing challenges

Price is the competitive element politicians mention most. In Colorado, cheap legal cannabis means black markets control only 20 per cent of state sales. But in Washington state, where prices are higher, black markets capture 50 per cent.

In Canada, governments agree cannabis prices must be competitive. They’ve suggested $10 per gram, including excise and sales taxes.

But Statistics Canada estimates market prices fell below $7.50 last year, and farther since then. Vancouver street prices reportedly are near $5. And street vendors don’t charge tax.

Meanwhile, most provinces lack confirmed supplies, so they risk product shortages initially. Growers might prefer exporting their limited stocks to Germany’s higher-priced medical cannabis market.

Provincial governments could face awkward choices. If they price high to cover costs, they’ll be uncompetitive. If they price low to compete, taxpayers may end up subsidizing drug users.

Longer term, more growing capacity will come online and enable lower prices.

Other pricing questions remain unanswered. Will all products share the same price? Or will prices differ by brand? Will each retailer set their own prices?

Retailers lack convenience

The places cannabis is sold also affect competitiveness. The western provinces will allow private-sector retailers. Ontario and its eastern counterparts are keeping retail in the public sector.

The public-sector plans lack convenience due to limited store numbers. That aids the black market.

For example, Ontario plans 150 outlets by 2020. That’s only one per 95,000 people, about as common as Walmart. It’s enough for planned shopping trips, but not for consumers who have unexpectedly run out.

By contrast, Ontario has 2,067 locations selling alcoholic beverages: One per 7,000 people. Those include liquor agency outlets, beer stores and wineries.

Quebec also expects 150 cannabis outlets eventually, or one per 56,000 people. New Brunswick plans 20, so one per 38,000.

Contrast those numbers with Colorado’s. It has more than 800 stores, or one per 6,250 people.

Private stores out West will likely be more numerous. But they’re banned from selling alcohol or tobacco. That specialization will restrict retailers’ revenue sources and the number of viable stores.

Provincial plans have barely mentioned on-site consumption. Countless bars and restaurants serve alcohol drinkers. Licensed cannabis “lounges” similarly could serve cannabis users, especially renters in non-smoking buildings and American tourists. Otherwise, those groups may stick with black markets.

Product advantages

Consumers can’t evaluate cannabis products without smoking them. The cannabidiol (CBD) and tetrahydrocannabinol (THC) concentrations vary greatly. Consumers also can’t detect contaminants like pesticides and mould.

Quality-assurance measures therefore could give legal cannabis products a competitive edge. Each province except Saskatchewan plans a single public-sector wholesaler. That centralization will facilitate large-scale testing.

Consider Ontario’s liquor agency. Its Quality Assurance Lab examined 28,000 beverages last year, rejecting 11 per cent.

Quality assurance, combined with recognizable brand names, would help products develop performance reputations. Some may offer a mild buzz, others a powerful high. Consumers could learn to rely on consistently performing brands, instead of unpredictable street weed.

However, branding faces challenges. Federal law limits package designs. No people, animals or lifestyle images are allowed.

Some critics even want plain packages, to discourage cannabis adoption. But that would make it harder for growers to establish reputations, neutralizing a key advantage over illicit products.

It would also reduce growers’ incentive to boost quality, especially if prices are fixed. As near generics, they’d instead try to lower production costs. Or perhaps hike THC numbers to stand out. Should we encourage cheaper, stronger pot?

The lack of edibles, like brownies and beverages, is a glaring gap. Ottawa won’t legalize those for another year. Unlawful suppliers keep market control until then.

Promotion limits

Federal rules also limit promotional activity. “Informational” ads are OK. But no evoking emotions, and no lifestyle depictions involving recreation or excitement.

Those clauses undermine legal cannabis’ competitiveness. Good ads evoke emotions. Lifestyle images explain complex products simply. And isn’t this law about “recreational” use? Growers consequently have proposed more flexible rules.

Because federal law prohibits self-service, sales staff will be important. Store ownership may matter here. Public-sector staff might be better at consumer education and harm reduction. Private-sector sellers may respond better to customer preferences and market trends.

Regarding in-store promotion, New Brunswick will display products under glass. Consumers will see packaging, read labels and visually compare products.

But Ontario wants things “similar to how tobacco is now sold.” That implies customers won’t see or touch products before purchase. It’ll be tough for consumers to develop preferences, and for growers to build reputations. That further weakens legal products’ competitiveness.

Prognosis is mixed

Overall, governments’ retailing prospects look mixed. Legal cannabis could stand out on product quality if growers earn reliable reputations. But edibles remain absent for now. Promotion could give legal cannabis another edge, if governments loosen up the rules.

Black markets will initially out-compete the provinces with convenient places. That will decrease over time, especially out West. But it won’t disappear without legalized lounges. Illegal vendors may always have some price advantage. Provinces can minimize that by forgoing profits.

Michael J. Armstrong is an Associate professor of operations research, Goodman School of Business, Brock University. He teaches courses on quality improvement, game theory, and operations management. He holds a PhD in management science from the University of British Columbia, an MBA from the University of Ottawa, and a BSc from the Royal Military College of Canada. Before his academic career, Armstrong was an aircraft maintenance manager. He holds several certifications from the American Society for Quality, including a six sigma black belt in quality improvement.

This article was originally published on The Conversation. Read the original article.

Ladurée President Discusses Future in Canada [with Video]

By

Craig Patterson

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February 13, 2018

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When French luxury bakery and sweets maker Ladurée opened its first Canadian location in Vancouver in the spring of 2016, there were lineups for weeks along Robson Street. That prompted a second Vancouver location to open inside of Holt Renfrew in the spring of 2017. In December of 2017, Toronto’s first Ladurée also saw lineups when it opened at Yorkdale Shopping Centre. To mark Ladurée’s entry into the Toronto market, Ladurée’s President David Holder visited the Yorkdale location last week along with Canadian licensee partner Olesya Krakhmalyova, store designer Claudia Ravnbo, and other attendees including dignitaries such as the Consul General of France in Toronto, Marc Trouyet.

Yorkdale’s Ladurée opened in DECEMBER of 2017.

It was David Holder’s first visit to Toronto, and we sat down with him to discuss Ladurée’s Canadian operations, including plans for the future. He says that we might expect to see more Ladurée locations in Canada, as well as a pastry bakery that will open in Vancouver this spring, followed by a Toronto bakery about a year later.

Vancouver was chosen for Ladurée’s first two Canadian locations, in part, because local licensee Olesya Krakhmalyova is a resident of Vancouver. With her knowledge of the city, and working in partnership with brokers Mario Negris and Martin Moriarty of CBRE in Vancouver, Ladurée selected popular Robson Street for its first store. Ladurée has “a new Canadian family,” Mr. Holder said, and the company is now on a journey to educate itself on the rest of the country in order to determine where other locations could open.

[Below: Videos of Ms. Krakhmalyova introducing Mr. Holder]

The Toronto market is large and the Yorkdale salon is rather small, spanning not even 1,200 square feet on one level. Mr. Holder said that the Yorkdale location is something of a ‘teaser’ to the Toronto market, and that the company could look to opening something a bit larger closer to, or in the downtown core. When Ladurée opened its first location in New York City, for example, it was only about 700 square feet — that was followed by a considerably larger Soho location measuring about 4,000 square feet.

Targeted locations could include the Bloor-Yorkville area, as well as something closer to the city’s thriving Financial District. Yorkville, he explained, features a European-like scale of low-rise commercial buildings with character — if Ladurée were to locate there, it might seek space with exterior patio seating for warmer weather. Yorkville is also known to be an affluent neighbourhood that is growing quickly, with luxury stores and condo towers being added with no end in sight.

If Ladurée were to locate in or near Toronto’s Financial District, it might take on a more ‘masculine’ look, according to Mr. Holder. Ladurée’s Yorkdale location includes liberal use of the colour pink, creating somewhat of a more feminine aesthetic. Mr. Holder pointed out that Ladurée is being open minded by opening locations that are unique, describing a future Mexico City location that will feature a restaurant, rooftop bar, and a 3-4 room boutique hotel.

Ladurée is also looking to expand its ‘Ladurée Picnic‘ grab-and-go concept, and Toronto’s Financial District could work for that as well, he said. Ladurée Picnic currently has one location in Paris, and London’s core will be next, he noted.

While finding street-level space in Toronto’s Financial District could be a challenge to Ladurée, it has options nearby. The charming St. Lawrence Market neighbourhood is located directly to the east, and the Entertainment District is to the west. The stretch of Queen Street West near the TTC Osgoode station could also be an option, given its proximity to the Financial District as well as to the Toronto International Film Festival, CTV Studios, art galleries, museums, sports facilities and other attractions.

As part of the endeavour to grow its Canadian operations, Mr. Holder said that the company might look to Montreal to open a Ladurée salon. This could be done through a local partner that knows the area — he explained that Ladurée will be calculated and careful with its expansion in Canada, and that it’s not in a rush to open too many locations at once. He also said that the company doesn’t necessarily have a goal as to the number of locations that it might open in Canada — much of it will be based on opportunity.

Ladurée is expanding its offerings in Canada, made possible by opening a dedicated bakery space in Vancouver to provide both of Ladurée’s Vancouver locations with fresh baked pastries. The bakery will be off-site and outside of the downtown core, where real estate is a bit less constricted, not to mention not as pricey. Expected to open this spring, the Vancouver ‘pastry laboratory’ kitchen includes a seasoned pastry chef who is moving to Vancouver specifically for the job. Mr. Holder explained that, as Ladurée’s operations expand further in Toronto, a bakery in the area would become necessary as well — that is, if a larger location with an on-site kitchen isn’t secured in the city’s core.

Designer Claudia Ravnbo discussed her vision for Toronto’s first Ladurée, which was the first in the world to reflect a new design aesthetic with an interior inspired by the colonial style of the 18th century. The pastel pink tea room is decorated with a white marble sales counter that is accentuated with gold lattice details and gold Lattice is also present on the walls of the salon. A Classic crystal chandelier contrasts with contemporary madeleine lights hanging from the ceilings, as well as the geometric marble tile flooring and velvet-accented furniture. The store’s soaring ceilings are dramatic with plaster ceiling treatments.

[Video: Ms. Ravnbo describes the Yorkdale location’s design, which is a first in the world for Ladurée]

Ladurée has a 500 square foot concession at Holt Renfrew in Vancouver, and it might not be the last in Canada, Mr. Holder noted. While there are no immediate plans for more Ladurée shop-in-stores, Mr. Holder said that he’s open to opportunities as they might present.

Mr. Holder said that the Toronto Ladurée is already a hit, and that the Vancouver locations are both strong performers. It speaks to the success of the brand in the eyes of consumers, which includes a diverse demographic — Mr. Holder explained how Ladurée is looking to not only cater to the refined tastes of an established clientele, but also to attract a new, younger consumer that desires fine food in a refined environment. Ultimately, Ladurée’s strategy is to cater to the tastes of local markets and as such, it will continue to educate itself on the Canadian market as it continues to expand.

Dx3 Conference Releases Impressive 2018 Speaker Lineup

By

Retail Insider

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February 12, 2018

The popular Dx3 conference is happening again next month in Toronto on March 7 and 8, and registration is now open. Dx3 has released an impressive roster of speakers from companies and brands including Amazon, Twitter, Google, Snapchat, Uber, Element AI, and others.

Dx3 is Canada’s largest digital marketing, retail and advertising conference, and the two-day event takes place at the Metro Toronto Convention Centre, conveniently located in the heart of the city.

“Dx3 is about innovation, but also inspiration. Nowhere else in Canada will you find such a diverse collection of experts exploring so many unique and creative ways to reach the modern shopper,” said Eric Mercer, Director of Content for Dx3. “And this is only the beginning – we’re excited to share more incredible programming announcements in the lead-up to March 7 and 8.”

More than 60 exhibitors and 50 speakers will be featured at Dx3 2018. Sessions at the conference range from large-scale keynotes by industry thought-leaders to intimate hands-on deep dives and workshops. Keynote speakers will include:

–Tamir Bar-Haim, Country Manager, Amazon, who will discuss how Amazon’s customer-centric focus has driven their tremendous growth – and the learnings and takeaways from their success.

–Jeff Miller, Global Head of Creative Strategy, Snapchat, who will open the second day of Dx3 with a dynamic presentation on the changing nature of “creative”. The medium matters, Mr. Miller will argue, and delivering a compelling message to consumers where they are is a powerful tool for the modern marketer.

–Theresa McLaughlin, EVP & Global CMO, TD Bank Group, will conclude the first day of Dx3 with a discussion that will explore how to maximize the impact of the marketing discipline within any organization, from attracting the right talent to growing and developing internal teams to seamlessly integrating marketing with other key business functions.

–Demystifying AI — This fireside chat will feature Chris Laver, Distinguished Data Scientist, Machine Learning and AI, RBC Royal Bank, and Katy Yam of Element AI and will explore the role – today and in the future – of AI in the worlds of marketing and retail.

Dx3 wil also include a panel discussion, ‘Twitter bootcamp’ and creative workshop as follows:

-Panel Discussion: Women in Tech – Lessons I’d Teach My Younger Self: On International Women’s Day (Thursday, March 8), four female tech leaders – April Dunford from Sprintly, Kristy Bates from Uber, Mandy Gilbert from Creative Niche and Meagan Tanner from Google – will engage in a dialogue on their experiences, successes and challenges in the industry.

-Twitter Bootcamp: How to Build Award-Winning Campaigns: Leanne Gibson, Twitter’s Interim Managing Director, will share a ‘playbook’ of techniques on how to build better campaigns and stronger promotion on Twitter.

Beyond the Banner Ad: A Creative Workshop – Josh Hudson, Creative Director at Amazon, will lead an innovative, hands-on seminar targeted at marketing and advertising agencies. He’ll explore the topics of Amazon Alexa, Twitch, and AR.

Registration is now open for Dx3 2018, taking place in Toronto on March 7 and 8. For more information and to register, visit: www.dx3canada.com.

Trendex Canadian E-Commerce Apparel Update

By

Craig Patterson

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February 12, 2018

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By Randy Harris, President of Trendex North America

Amazon Turns Up The Heat In Canada

Three recent developments should insure Amazon’s continued place as Canada’s largest e-commerce retailer. The first involves the company opening its seventh facility during 2018. The new 600,000 sq. ft. warehouse will be just north of Calgary. Currently the company operates warehouses in Ontario and British Columbia. The retailer also announced in mid-November 2017 that both its Alexa service and Echo devices were available to Canadians and that it was expanding its Prime Now service.

During the first half of 2017 Amazon Canada’s best selling apparel categories were men’s bottoms, women’s intimates and women’s denim.

Canada’s E-commerce Growth In Q3 2017 Exceeds That For The U.S.

Canadian retail e-commerce sales increased (y/y) by 33.4% during the third quarter of 2017. For the same period U.S. retail e-commerce sales increased 15.4%. During the third quarter e-commerce accounted for 2.4% of total Canadian retail sales vs. 9.1% in the United States.

Canada’s E-commerce Sales Were Highly Concentrated During 2016

A study released by Boston Consulting in the third quarter of 2017 revealed that six Canadian retailers accounted for an estimated 60% of the country’s total e-commerce sales during 2016. There is no reason to belief that the collective e-commerce share of these retailers will not have increased during 2017.

Walmart.ca Update

In an attempt to jump start its e-commerce sales Walmart Canada in the second half of 2017:

Added 30 third-party sellers to its Marketplace. It planned to quadruple the products available on its site by the end of 2017. The third-party sellers offer products ranging from apparel to sporting goods. The retailer plans to invite third party sellers currently on Walmart’s U.S. marketplace to join its Canadian marketplace.
Cancelled the C$2.97 fee it previously charged customers that ordered online for pick up at a Walmart Canada’s dedicated “online only grocery pick up parking spots”. Currently Walmart stores in Ottawa, the greater Toronto area, Calgary, and Edmonton offer online pick up, along with seven locations in the Greater Montreal area.

Walmart Canada’s e-commerce initiatives during the second half of 2017 should position it to better compete during 2018 with the e-commerce efforts of Amazon, Canadian Tire, Loblaws, Best Buy and Home Depot.

Four Canadian Companies IPO’s Call Out E-commerce Growth As A Growth Objective

Over the past 12 months, four Canadian apparel companies have gone public. Three of them, Aritzia, Roots and LXRandCo are retailers, while the fourth, Canada Goose, is basically an apparel manufacturer. One of the key growth strategies detailed in each company’s prospectus was doubling their e-commerce sales over the next four years. In 2016, e-commerce accounted for between 11.4% and 12.8% of three of the company’s sales. The fourth, LXRandCo, a retailer of vintage purses, has less name recognition, so it is not surprising that e-commerce only accounted for 5% of its sales during 2016.

Don’t Forget About The E-commerce Return Process

While Nafta apparel retailers have continued to refine their e -commerce prices and delivery processes, less attention has been paid by these same retailers to their process of handling e-commerce returns. The NRF reported that in the U.S., 30% of items bought online end up being returned, compared to 9% of items bought in a store. Optora, an ecommerce software company, has forecasted that between Dec. 26 and Jan. 31, 2018, 45% of American’s will try to return a gift.
To date, no consensus among retailers has developed as to the optimum procedure for handling online return purchases. However, an in-person return to a store costs a retailer half the amount ($3) of a return sent to a distribution centre ($6). In store returns also allow a retailer to return the product faster to its inventory. Lastly, 62% of consumers prefer the option of returning their online purchases to a store, while 33.6% expect a full refund as opposed to store credit.

Recognizing the importance for consumers of having a stress-free return process, Amazon has expanded operations for in-person returns, with a network of 2,000 U.S. locker locations, including 400 at its Whole Food stores. Walmart and Target have also set up return kiosks in their stores. Truly, according to Tobin Moore, CEO of Optero, “Returns have become a battleground among online retail”.

E-commerce Increases 114% For LXRandCo In Q3 2017

LXRandCo, a Montreal based retailer of vintage purses and accessories, reported that its net revenue increased by 82% during the quarter ending September 30, 2017. For the same quarter, the retailer’s e-commerce sales increased by 114% and accounted for 4.1% of its net revenue vs. 3.5% a year earlier. The retailer recently indicated its Q4 2017 ecommerce sales increased 85%.

E-commerce Growth Slows For Two Canadian Specialty Apparel Retailers

The good news for Canadian apparel specialty retailers, Reitmans (Canada) Ltd. and Le Chateau was that their ecommerce sales during Q3 2017 increased at a rate significantly greater than their comp store sales. The disappointing news was that the rate of increase for both retailers ecommerce sales slowed significantly from a year earlier. Specifically in Q3 2017 the e-commerce sales of Reitmans increased by 29.7% while Le Chateau’s increased by 14.0%. Both retailer’s e-commerce sales a year before increased by 40.1% and 55.1% respectively.

During December 2017, Reitmans e-commerce sales increased by 20.9% vs. 60% during December 2016.

Indochino Steps Up Store Expansion

Canadian headquartered Indochino, which as of the end of December 2017 operated 19 showrooms, plans to open up to 18 new locations during 2018. Currently the made-to-measurement retailer operates 8 stores in Canada and eleven in the United States. During 2017 the retailer doubled its sales for the second consecutive year. This publication is speculating Indochino will float an IPO during 2018.

Roots Targets 20% Of 2019 Sales From E-commerce

Canadian outdoor apparel/footwear retailer, Roots, has set a goal, according to its CEO Jim Gabel, of securing 20%-22% of its sales from e-commerce by 2019. In 2016 E-commerce accounted for 12.8% of Roots’ sales. All of the retailers iconic extended size fleece is available only online.

Carter’s Canada — E-commerce Once Again Saves The Quarter

Carter’s Canada and Children’s Place Canada during the third quarter of 2017 saw their sales negatively affected by Gymboree Canada’s liquidation. However, in the case specifically of Carter’s Canada, Gymboree had seemingly little effect on the retailer/wholesale’s e-commerce sales, which increased by almost 61% during the quarter.

A New “App” Assists Simons In Ramping Up Its E-commerce Efforts

Quebec based Simons, with 15 stores across Canada, historically had an underdeveloped e-commerce business. Undoubtedly, this should rapidly change as the retailer in October 2017 introduced a new proprietary app. In addition to allowing a customer to shop and purchase online from the retailer, the app has two unique features. The first allows a user to snap a picture of an item and then search Simons’ inventory for a similar product. The second feature allows a Simons customer to have a truly omni-channel shopping experience, including determining/using their loyalty card’s point balance.

Industry watchers have indicated that early in 2018 Simons will begin construction of a highly automated distribution centre that will serve as a platform for its e-commerce business. In doing so, Simons will be emulating HBC, who in 2016 spent C$60 million to automate its Toronto e-commerce distribution centre.

This article has been excerpted from the current issue of Trendex’s NAFTA Apparel E-commerce Insights newsletter. For more information contact info@trendexna.com

Christian Dior Expands Vancouver Footprint [Photos]

By

Helen Siwak

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February 12, 2018

Dior Holt Renfrew — (PHOTO: HOLT RENFREW)

French luxury brand Christian Dior has expanded its concession at Vancouver’s Holt Renfrew flagship, creating the largest Dior accessory boutique of its kind in Canada. The shop-in-store concession is the latest brand to expand its presence within the CF Pacific Centre Holts, which has been under renovation over the past couple of years, coinciding with a significant expansion.

The new Dior boutique replaces a smaller location that was located on the same floor — Holt Renfrew recently relocated its beauty hall to a space in the basement, freeing up valuable ground level space for a grouping of luxury accessory boutiques in an expanded leather goods and jewellery hall. As competition increases from the likes of Saks Fifth Avenue and Nordstrom in Canada, Holt Renfrew is curating some of the world’s top brands and providing them dedicated shop-in-stores spaces.

Dior’s new location is prominent — when one enters Holt Renfrew’s ground-level Granville Street entrance, the new Dior boutique is located immediately to the left. A window that formerly showcased the store’s beauty hall now displays Dior handbags.

The boutique also includes Dior’s new font, being an all-caps stylized DIOR — all other boutiques in Canada feature ‘Dior’ stylized branding that is a bit more subtle, though we might expect Canada’s newest Dior boutiques to adopt the new signage, as is seen in new locations globally.

One of the highlights of the new Vancouver Dior boutique is a limited edition ‘Lady Dior’ handbag. A selection of styles are available in the new boutique from several notable artists — Retail Insider Vancouver correspondent, Helen Siwak, toured the new space and showcases the designs on her own blog, EcoLuxLuv, and she also provided a 3D video tour of the space as per below.

(LOOKING INTO THE NEW DIOR SPACE FROM GRANVILLE STREET. PHOTO: HELEN SIWAK)

(INSIDE THE NEW DIOR BOUTIQUE — THE STAIRS ON THE OTHER SIDE OF THE WINDOW LEAD DOWNSTAIRS TO THE STORE’S GRANVILLE STREET ENTRANCE. PHOTO: HELEN SIWAK)

Christian Dior currently operates accessory boutiques at Holt Renfrew in Toronto (50 Bloor Street West and at Yorkdale Shopping Centre) as well as in Montreal on Sherbrooke Street West. Saks Fifth Avenue at the CF Toronto Eaton Centre also features a separate Dior accessory boutique on the ground floor, as well as a women’s ready-to-wear salon on the third level women’s designer floor — the first of its kind in Canada. Dior also operates a 10,000 square foot boutique at the Fairmont Hotel Vancouver, which is currently the largest standalone Dior location in North America.

That will change towards the end of this year, however, when Dior unveils a 13,400 square foot flagship at 131 Bloor Street West in Toronto — the store will be one of Dior’s largest globally, joining other flagships that have recently grown on the ‘Mink Mile’. Dior will also eventually be relocating its Montreal Holt Renfrew boutique to a new 2,000 square foot concession space at the expanded ‘Holt Renfrew Ogilvy’ which will be located in the current Ogilvy location on Sainte-Catherine Street West — the Sherbrooke Street Holt Renfrew will close once the merger is completed, some time in the year 2020.

This week in a separate Brief, we’ll be reporting on some other updates as Vancouver’s Holt Renfrew flagship renovations near completion.

As Big Food Brands Struggle, Canada has a Golden Opportunity to Develop its Own

By

Sylvain Charlebois

-

February 12, 2018

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

The bloodbath in foreign-owned, large-scale food manufacturing in Canada continues.

In recent weeks, we’ve learned that two plants employing almost 600 highly paid workers are closing: Dr. Oetker in Grand Falls, N.B. and Campbell’s in Toronto.

Estimates suggest that Canada has lost more than 30,000 similar positions in food manufacturing in a decade. This is not new.

Both cases have common denominators: Both plants were ancient, outdated and in dire need of a retrofit. However, the foreign-owned companies opted instead to consolidate assets and have products manufactured at more modern facilities. In other words, they never intended to modernize the existing Canadian plants.

The use of better automation and robotics could have helped, but instead the facilities were left to rot and die a natural death.

Ontario and other provinces have countless aging plants, owned by foreign companies and in need of a significant influx of capital to remain in compliance with modern-day standards of food safety and product advancement.

So, don’t be surprised to see more of these types of closures since we’re now paying for years of foreign control in this sector.

Brands are now worth more than the human capital working in their facilities across the country. It’s not personal; it’s business.

‘Endangered species’

Big food brands, often seen as symbols of out-of-touch food corporations, are becoming an endangered species. Every week stores mark down those brands — think household names like Chef Boyardee, Chips Ahoy, Wheaties, etc. — to attract customers to their private-label products.

Not only are store-owned labels cheaper, but customers, especially millenials, are moving away from major brands. They’re increasingly looking for organic, multicultural foods — hardly concepts mega-enterprises have been associated with, at least until recently.

The pace of this demographic shift is spectacular. We’re seeing more consolidation in food processing around the globe because consumers in the Western world are looking for something different, organic and local. Many of the brands we all know don’t appeal to people looking for what are known as value-based brands.

This pressure is leading to seismic shifts in the sector.

Overseas, Keurig Green Mountain, the maker of coffee pod machines, is planning to purchase the Dr. Pepper Snapple Group in a massive US$18.7 billion transaction.

The portfolio of the new company will include products varying from coffee to soft drinks. But the deal is really about competitiveness at the retail level, and allowing major brands to remain competitive.

The appeal of big brands has ruled grocery aisles for decades, but it’s slowly becoming an afterthought. Margins must be better managed and merchandising strategies will need to be reinvented. Consequently, becoming bigger and more resourceful is key.

Overly reliant on foreign brands

Most Canadians may be unaware that the food-processing sector is the second largest manufacturing industry in Canada in terms of value of production, with shipments worth $112.4 billion last year and employing over 250,000 people.

It’s a big sector that’s flown under the proverbial radar for decades.

This is why the sector just created an industry association Food Beverage Canada — so processors have a voice. Without a vibrant manufacturing sector, Canada’s agri-food sector cannot prosper.

Growing grains and raising livestock is helpful for rural economies and small- to medium-sized businesses. As Canadians, it’s what we know best. But given how our world is changing, it’s no longer enough.

Food manufacturing has a multiplying effect on growth, which cannot be emphasized enough. For years, we have been reliant on foreign brands to offer job opportunities in small communities.

Most of these brands, however, are American. The Canadian brand has never been fully exploited in the food value-added sector, a missed opportunity indeed. But the needle is slowly moving in our country, recognizing that food processing needs to find its home-grown mojo.

The Agri-Food Innovation Centre at the University of Saskatchewan opened this year to support the sector’s will to diversify and launch new businesses. Many incubator and accelerator programs in Toronto, Montreal, Halifax and elsewhere have been launched to create ag-tech companies, which focus on providing more value-added products to the market, both domestically and abroad.

Quebec now has a new market access program to support companies looking for new markets.

It’s no longer just about spreading money to different sectors across the agri-food continuum. Growing the sector and generating significant economic activity throughout the country are becoming priorities for most stakeholders in both government and industry.

Becoming a world-class agri-food giant involves building an ample food-processing sector. We also need to provide the sector with ways to mitigate against higher wages, restrictive trade rules and fluctuating currencies. Looks like someone is finally getting the message.

*This article was originally published on The Conversation. Read the original article.

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.

eTail Canada Conference Releases Full Agenda

By

Craig Patterson

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February 11, 2018

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This year’s will be held May 15-17, 2018 in Toronto, and it has just released its as well as an industry . The conference will be held at the Hyatt Regency Toronto, located at 370 King Street West in the heart of Toronto’s vibrant Entertainment District. []

About 73% of eTail Canada’s 2018 speaker roster will be new, and eTail also welcomes back its impressive alumni speakers. New to the program include talks from experts working with companies including Amazon, Hudson’s Bay Company, Walmart, Starbucks, Casper, Article, Best Buy, MEC, Aldo, Sephora, and many others.

Prominent keynote speakers include:

Rochelle Ezekiel, Vice President, Marketing-North America for the Hudson’s Bay Company,
Andrew Turner, General Manager of Softlines at Amazon.ca,
Daryl Porter, VP of Omni-channel and Online Grocery at Walmart Canada, and
Duncan Blair, Director of Marketing at Vancouver-based online furniture retailer Article, which is growing rapidly.

There will be plenty of other speakers from some of the most recognized companies in retail []

Various presentations will also be engaging and interactive, even including ‘Tonight Show’ style and fireside chats — this will no doubt be a fun year to attend eTail Canada. There will be ‘best in class’ awards that will be held on Tuesday, May 15, and nominations end on March 9, 2018.

There will be plenty of networking opportunities as well — eTail Canada notes that there is value from the face-to-face opportunities at the conference. There’s a 60% retailer ratio that’s protected, with more than 400 retailers anticipated to attend.

eTail Canada also recently published a white paper that . The eCommerce Innovation Briefing includes some in-depth discussion on retail innovation, and even a discussion about real estate. Canadian firms such as Hudson’s Bay Company and SPUD are included, as well as international success stories such as Walmart, Zillow and Casper.

eTail Canada is offering 20% off the current price for retailers when you with code ETC18RI.

To download the full schedule — []

For more information on this year’s eTail Canada conference:

[]

And furthermore: []

*****

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

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.

Yorkville Hosts Toronto Fashion Week Amid Neighbourhood Transformation

By

Craig Patterson

-

February 10, 2018

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Toronto’s Bloor-Yorkville area continues to establish itself as an important fashion hub. Toronto Fashion Week has just concluded at Yorkville Village, marking the first time that such an event has been held inside of an enclosed shopping centre in Toronto.

Hosting a fashion week in a shopping centre made sense — several of the brands on the runways already have a retail presence in Canada, while other brands are looking to gain a foothold in the market. Part of the Yorkville Village centre included a multi-brand pop-up space in partnership with RE/SET, where runway designers and other designers had the opportunity to sell their wares to the public. This is becoming something of a trend — at a time when consumers can get what they want when they want it, many designers are seeing value in offering the ‘instant gratification’ of selling runway pieces immediately after shows. A list of designers with descriptions at RE/SET can be found here.

The Yorkville Village shopping centre, formerly Hazelton Lanes, was transformed into an event space that included runway shows, a lounge, and other gathering places for guests. The main runway area was created by temporarily enclosing ‘The Lane’ which connects the Yorkville Village centre to Yorkville Avenue. Enclosing the outdoor space made sense, as did hosting a fashion event in an enclosed mall — this week was a particularly chilly one in Toronto, and the tent-set-up seen during September’s Toronto Fashion Week might have been a challenge to keep heated during a much colder February.

Toronto Fashion Week came under new ownership when In December of 2016, developer and businessman Peter Freed announced the purchase of Toronto Fashion Week from IMG Canada Ltd. — founding sponsors included The Hazelton Hotel, Hill & Gertner Capital Corporation and First Capital Realty’s Yorkville Village. First Capital Realty played a particularly significant role in the event this year, including housing the shows themselves within its Yorkville Village property.

The runway shows were diverse and entertaining, and included a roster of leading brands that showed their wares over the three day event. Rather than rehash all of the shows and events that were included, we direct readers to Fashion Magazine, which put together a comprehensive and well laid out summary:

–Highlights from Day 1 of Toronto Fashion Week F/W 2018,

–Highlights from Day 2 of Toronto Fashion Week F/W 2018, and

–Highlights from Day 3 of Toronto Fashion Week F/W 2018.

Toronto Fashion Week concluded with a fundraising fashion show called Fashion Heals, which was in support of SickKids Hospital.

Hosting Toronto Fashion Week in Yorkville is part of a plan to maintain a fashion focus in the neighbourhood. The area is seeing a steady stream of new retailers open stores in new developments, which is transforming Yorkville into a world-class, high-density area in a similar fashion to London’s Mayfair, New York City’s Upper East Side, or Chicago’s Gold Coast. In some respects, the dynamic makeup of Yorkville, including its mix of historical buildings and new modern construction nearby, is creating an environment unlike any in the world.

The Yorkville Village shopping centre has seen in excess of $100 million in renovations by landlord First Capital Realty — retailers such as Belstaff, Nanni Couture, Jean-Paul Fortin and Via Cavour opened in September of 2017, followed soon after by TNT Concept, Eleventy and Chase Hospitality Group’s ‘Palm Lane’ restaurant. Belstaff is a first in Canada and a second store for the brand in North America, and Eleventy is the Italian brand’s first freestanding store in North America. Other recent additions include the stunning Galerie de Bellefeuille art gallery, located across the hall from a recently opened SoulCycle location.

The Yorkville neighbourhood is having its own ‘fashion moment’, made possible in part by billions of dollars of area investments. First Capital Realty is partly responsible for this — the landlord has been buying commercial buildings in the area for several years, in an attempt to create a mix of tenants that is compelling, diverse, and luxurious. This mix includes restaurants and retailers, including some notable luxury brands. In November of 2017, a milestone was reached when Chanel unveiled its 8,550 square foot flagship at 100 Yorkville Avenue, and First Capital Realty is developing other commercial properties nearby — the 102-108 Yorkville complex, now under construction, will house Jimmy Choo, Brunello Cucinelli, Her Majesty’s Pleasure and other tenants, while a newly built 101 Yorkville Avenue will eventually house a mix of luxury retailers and restaurants in a unique ‘mews’ configuration that will create a pedestrian passage that will span from Bloor Street West to the south to Scollard Street to the north.

Below: A neighbourhood in transition — three images reflecting the latest retail news in Yorkville:

Various other luxury brands have been opening stores in the immediate area — Christian Louboutin and Off-White have stores on Yorkville Avenue, and a Richard Mille boutique recently relocated to a spectacular space on the second floor of 135 Yorkville Avenue, above pricey streetwear retailer CNTRBND.

Further away from Yorkville Avenue, retailers have been opening stores along Bloor Street West as well as on adjacent streets — the area is experiencing an incredible transformation that will see the addition of thousands of new residents, as well as billions of dollars worth of commercial construction. There’s so much activity in the area that we’ll be dedicating separate articles in the coming weeks to provide updates, including a comprehensive overview of Bloor Street West, which is seeing significant changes between Yonge Street to the east and Avenue Road and beyond to the west.

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Pricing challenges

Retailers lack convenience

Product advantages

Promotion limits

Prognosis is mixed

‘Endangered species’

Overly reliant on foreign brands

About

Contact

Media

Follow