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This CEO is Pissed Over the State of Relations Between Retailers and Consumers

By Eric Nykamp CEO of Raange, Inc., Guest Columnist  

Communications has changed since I built my first business, TAARGA, a Confirmation Marketing platform, back in 2007. Back then, marketing was still dominated by traditional channels like TV, radio and physical ads, when the number of potential viewers was the key metric. No way to track who the campaign touched, or engagement levels. The deal was all done by a handshake, wherein you trust that the broker would hit your agreed upon audience and metrics.

One of my clients at the time was focused on ad acquisition on a well-known “professional networking platform,” which compared to today’s standards, offered a terrible experience for advertisers – you couldn’t track conversions! You would hit send and in less than a week receive an email saying the impressions goal was met…. That was it. We paid tens of thousands of dollars for a couple of hundred thousand impressions.

Old habits die hard

Today, mobile has become the holy grail of marketing because of its promise of bidirectional engagement, guaranteed open rates and personalization.

However, I still see brands pushing the same message across multiple channels, throwing words and offers at a wall to see what sticks. This whole scorched earth approach to marketing is terrible for business and most importantly for the consumer.

You know what I’m talking about, the agency that convinced a company to spend $500,000 to plaster every communications channel in Southern Ontario to target female millennials. With hopes of a 3-5% conversion rate.

Do we ever stop to think of the other 95%? Isn’t it our responsibility to make sure customers have a good experience when interacting with our brand?

Think of the young male millennial that receives an advertisement for women’s hygiene products because of his taste in music on Youtube.

We just write it off as a means to an end.

How do you differentiate from the noise?

We need a new vision for advertising and marketing. We CAN send consumers the right message. At the right time. On their prefered channel. Messages unique to the person and based on selected and validated interests, preferences, not predictive or assumptive algorithms.

Instead of sending a single offer to your database of 500,000 consumers, wouldn’t it make more sense to collect additional data on those same consumers by simply asking a few questions, and then narrowing down that same database to a list of 25,000 consumers who want that particular product. Isn’t that marketing?

Now think of the budget you would save, and the 10X increase in conversions on campaigns. You could unlock resources currently wasted on the other 95%, and invest it in additional priorities, or campaigns for which you otherwise wouldn’t have had the budget.

Once identified and analyzed, you could even share a message with these consumers when they’re walking past your store – the right message to the right audience at the right time. Beautiful.

Communications is still broken between retailers, brands and consumers, and it’s hurting brick-and-mortar businesses the most.

This is a problem we’re going to solve.

Eric Nykamp is CEO of Raange, Inc., Founder at Mamoth-Group, TAARGA, RAANGE and Mamoth-Labs! Internet Strategist, Entrepreneur, Inventor, Investor, Husband, Father, Insomniac.

My goal is to elevate traditional brick & mortar retailers to quickly and easily transition to the latest marketing concepts and communication channels, so as to rebuild trusted dialogue with past, present, and future customers.

Email Me at: Contact_Me@raange.com

Text Me at: (514) 613-3324 with Keyword ‘Pissed’

My Blog: Retail Innovation News

Raange: www.raange.com

*Partner content. To work with Retail Insider, email: craig@retail-insider.com

RW&CO Launches New Store Design [Photos]

RW&CO Yorkdale

Canadian fashion brand RW&CO has officially launched a new look for its stores, with the unveiling of its renovated unit at Toronto’s Yorkdale Shopping Centre. The concept will be rolled-out with the renovation of stores in Canada’s top malls, as the brand seeks to attract its target demographic. 

The relaunched 3,650 square foot Yorkdale store features a considerably more open and transparent facade, showcasing product from its corner location. RW&CO worked with New York City-based design firm MNA (which has worked with Bergdorf Goodman and Ralph Lauren) to create a retail space of “discovery,” featuring distinct environments throughout the store. RW&CO explains how the designers “looked to residential design that spoke to materiality and workspace projects, which helped them to create the communal aspects of the project.”

The store’s interior includes ample use of natural materials, including stone floors, marble tabletops and wood in various fixtures. Whimsical antiques are placed throughout the space, providing character rarely seen in new store design. Digital signage in the store, highlighting product and concept, were created by Stingray Business

(THEATRE-INSPIRED CASH DESK)
(HISTORICAL PERIODIC TABLE IN THE MENSWEAR AREA)

RW&CO President Lori Tisi explained that adding antiques was part of the design to make the store look as if it was ‘already there’, and is a play on the juxtaposition of old and new. RW&CO’s VP of Marketing and Visual Presentation Marketing director Michele Slepekis explained how the store incorporates a periodic table as part of its ‘Pantology’ campaign — RW&CO is particularly known for its bottoms, utilizing the slogan “we have the formula for your perfect pant.” 

“Discovery” is key to the store’s design. Instead of the store having a clear path down the centre, Yorkdale’s RW&CO has products hung and laid throughout — customers navigate the store and find new product at every turn. Antiques add a further element of interest to the space, addressing experiential retail design which is a trend among many successful retailers. 

Dressing rooms at the back of the store are spacious and modern, featuring clean design elements, flattering lighting and ample mirrors. A salesperson pointed out a unique feature — a cup holder in one of the dressing rooms for those shopping with a beverage. 

It’s all part of the experience in the new store, and RW&CO will begin renovating stores in top Canadian malls to reflect the new design aesthetic. The company’s CF Sherway Gardens unit also recently saw the same refresh, with more to follow, according to Ms. Tisi. Walter Lamothe, President of Retail and Chief Operating Officer, Reitmans Canada Ltd. (RW&CO is owned by Reitmans) said that there will be more exciting news about the company’s various banners, as it looks to innovate in order to address increased competition. 

*Photos were provided courtesy of ASC Public Relations.

Unique ‘NewWall House’ Opens in Historic Townhouse [Photos/Video]

Wallpaper retailer NewWall House is now open in Toronto’s King East Design district. It’s not just a regular wallpaper retailer however — housed in a restored circa 1842 townhouse at 363 Adelaide Street, NewWall is unlike any retail space in Canada. 

The brainchild of Maria Raco and her husband Alex Gardner, NewWall carries some of the world’s finest wallpaper designs. The couple purchased the historic Paul Bishop House from a family that was living there, with the intention of converting the property into a retail space. Ms. Raco explained how they gutted the townhouse and rebuilt it into a bright multi-level showroom space — the four-floor heritage building is located at the southeast corner of Adelaide Street and Sherbourne Street in Toronto’s King East Design District, home to some of the country’s leading home furnishings and design retailers.

NewWall retails its products to designers as well as individual end-users, offering premium wallcoverings from world-renowned brands like Timorous Beasties, Armani/Casa, Calico and Marimekko. While wallpaper might be a concept that’s centuries old, NewWall is innovative in how it includes a video wall of monitors with over 300 wall coverings, sized to scale, that allow customers to actually see what a wallpaper will look like, and even allows for side-by-side comparisons. 

Accessed from a street-level entrance on Adelaide Street, NewWall House’s main floor features a comfortable seating area with the wall of video screens to showcase product, as well as a diverse sampling of artful wallpaper styles from 13 of the world’s top designers. Various pieces of restored furniture are located throughout the space, several of which are available for purchase. 

The second level showcases a number of premium and luxury wallpaper brands, including designs by Giorgio Armani’s Armani Casa line. Custom built-in fixtures display a variety of exceptional wall coverings — some styles are customizable, and prices vary. The floor also features a VIP room with a sleek, Chinoiserie-inspired aesthetic, available for meetings or acting as an office for designers looking to engage their clients on-site. 

On the lower level is ‘Les Petits’, an area that showcases children’s wall covering, in a whimsical and creative environment (including oversized stars, traffic jams, and giraffe pyramids) meant to inspire parents to decorate. Brands include Sissy + Marley, Abnormals Anonymous, Marimekko and Coordonne

NewWall House
NewWall House

Paul Bishop House has a fascinating history — it is in fact two residences that were constructed in 1842 upon the foundations laid by William Jarvis (one of the original founders of the Town of York) for his home in 1798. After the Cholera epidemics of the 1830’s, the original Jarvis residence was demolished because of its reputation of being haunted. In its place rose two new homes, one of which is now occupied by NewWall House.

Prior to being acquired by the Raco-Gardner family for NewWall House, 363 Adelaide Street belonged to a family with three children who lived on the premises. Ms. Raco explained that the main floor once housed a living room, dining area and kitchen, while the third floor, now used for offices, was a room for the children to sleep in (it even has a terrific little patio). The lower-level, which now houses ‘Les Petites’, was formerly a soundproof theatre — a throwback to the former owner’s bachelor days, prior to getting married and having children. 

For anyone looking to purchase wallpaper in the Toronto area, NewWall is definitely worth a visit. Not only is the retail space beautiful, some of the wallpaper designs are so artful that one might consider framing them on their own as artwork. 

NewWall House
NewWall House
NewWall House
NewWall House

*Photos and video were provided by NewWall House, coordinated via PR firm ZOÏ Agency.

Online Retailer Sweet {Jolie} Goes Brick-and-Mortar

Edmonton-based online women’s clothing retailer Sweet {Jolie} recently opened the doors to its first brick-and-mortar location. The product of successful online crowd-sourcing campaign, Sweet {Jolie} was able to do so due to an astonishing $40,000 raised through ATB Alberta BoostR. The brand will house its first in-house collection, named SJ {Essential}, which has been launched to coincide with the grand opening. Targeted towards a wide-ranging demographic, the brand provides essentials for everyday women. 

Known for their designs, the brand also has socially-conscious aspirations. “Our dream is to utilize this new space to raise even more funds and awareness through our {Love} Project in support of women and families in our communities,” states founder Nicole Rice. “We want the Sweet {Jolie} boutique to be a space where women can feel comfortable coming together not only to shop, but to connect with each other about important issues.”

The space will allow a permanent home for Sweet {Jolie}, which had operated not just online but through a series of ever-popular pop-up shops throughout Alberta. Rice’s plans is to also use the space for its signature {Love} Project, an ongoing local community outreach campaign designed to raise funds for local charities. Every month, the {Love} Project chooses a different initiative and donates a portion of its proceeds to that chosen foundation.

Sweet {Jolie} is located in the emerging retail district near MacEwan University, at 10914 105th Avenue. In addition to the retail space, the boutique will also house a lounge for shoppers to congregate. This expands on Rice’s ambition in creating a safe space for women to collaborate and exchange ideas. The boutique will also have a child-minding area, ensuring that the shopping experience is inclusive and family-friendly. The brand’s dedication to its clientele is perhaps most evident in its namesake The Heather Room, a fitting room named after a long-time, loyal Sweet {Jolie} customer who used the Alberta Boostr reward option in the online campaign. At its heart, Sweet {Jolie} is built on the community of fashion-forward, socially conscious women with a shared joie de vivre.

A former interior designer, Rice incorporates her affinity for antiques with a boho-chic leitmotif against an industrial space, ensuring a timeless look for the interiors. 

With a robust network of contributors and clientele behind it, look for Sweet {Jolie} to thrive in the bustling Edmonton fashion industry, and support the community around it.

Amazon Prime Day 2017 Breaks Records in Canada

Image: Amazon Prime

Amazon’s Prime Day 2017 drew record business, both globally and in Canada.

The company (NASDAQ: AMZN) boasted a mighty 60% increase in sales from the 2016 event. Geared towards customers who subscribe to the Amazon Prime service, the one-day only retail event was extended from 24 hours to 30 hours, allowing customers more time to take advantage of deeply discounted merchandise. Shoppers were permitted to purchase certain items far below their suggested retail price for limited windows of time during the 30-hour event. Sales were comparable to holiday-season sales activity, which is highly unusual in the traditionally quieter summer retail cycle.

The biggest seller on Prime Day in Canada is Instant Pot’s Duo 80 7-in-1 Multi-Use Programmable Pressure Cooker. The Ottawa-based company saw sales for its signature product outpace all other products purchased by Canadian consumers. Other best-selling items included the Xbox One S 500GB Console, and two major Amazon products: the Kindle Paperwhite e-reader, and the Amazon Basics Rechargeable Batteries.

Prime Day also increased the number of customers who signed up for the Amazon Prime membership, thereby allowing clients to take advantage of the sales. According to Amazon, more new customers signed up for the service, which costs $79.99 annually, on Prime Day than at any point in the company’s history.

Amazon has increasingly expanded their Canadian customer services. With distribution centres in Toronto and Vancouver, the company offers both one-day and same day service delivery guarantees in both cities. One-day delivery is also provided in Montreal, Calgary and Edmonton. 

Numerous merchants sang the praises of Prime Day, giving the following testimonials:

“Both Monday and Tuesday (Prime Day) were record days in sales for our business. It’s great to have the additional sales boost during these traditionally slower summer months,” said Tyler and Courtney LeCompte, owners of party decor retailer Confetti Momma.
 
“Overall for the Prime Day event (all 30 hours) we saw about 20 times more overall sales,” said Ben Arneberg, owner of high-end kitchen product retailer Willow & Everett.
 
“So far, this year’s Prime Day sales increased 350% from last year’s. Getting the opportunity to offer lightning deals as a Handmade at Amazon artisan has been a boon to my business,” said Marcia Ricchiuti, designer and owner of Kahili Creations jewellers.

“Prime Day has really allowed us to connect with a tech-driven and innovation-seeking audience. Our sales have seen an incredible lift on Prime Day,” said Anson Liang, founder of wireless bluetooth headphone brand Rowkin.


“Light Accents had a fantastic Prime Day. It was our best sales day in over two years,” said Lawrence Bibi, founder and owner of Light Accents.

Undoubtedly, Amazon Prime Day has shaped up to become one of the premiere retail events on the calendar, joining the similarly-themed Singles Day which is held every November 11 in China, and far surpassing both Cyber Monday and Black Friday.

Matt & Nat Expanding into New Markets

MATT & NAT
MATT & NAT RIDEAU CENTRE (PHOTO: PHOTOLUX STUDIO)

Montreal-based eco-friendly accessory fashion brand Matt & Nat is launching a freestanding store expansion that will see multiple locations open in various new markets. Next month, the company’s first GTA store will debut in Mississauga, followed by its first outlet location that is scheduled to open in the fall. 

Matt & Nat (short for “mat(t)erial” and “nature”) was founded in Montreal 1995, and is known for not using leather or any other animal-based materials in its bag and accessory designs. Since 2007, it has been committed to using linings only made out of 100% recycled plastic bottles, and it recently introduced recycled bicycle tires to its collections. Having launched as a bag and small accessory brand, Matt & Nat now also features footwear designs. The company wholesales to retailers in Canada as well as globally, and it also has a robust ecommerce business at mattandnat.com/shop.

In March of 2016, Matt & Nat opened its first permanent freestanding store at CF Carrefour Laval near Montreal, with about 1,000 square feet of retail space. A second store opened in October 2016, spanning about 1,400 square feet at Quartier DIX30, in Brossard. A third location opened in Ottawa’s CF Rideau Centre in May of this year, with about 1,400 square feet on the mall’s second level.  

MATT & NAT RIDEAU CENTRE (PHOTO: PHOTOLUX STUDIO)

Matt & Nat’s newest location, set to open this summer at Mississauga’s Square One, will measure 1,423 square feet. The Square One boutique will be located next to Aritzia’s Wilfred retail concept. According to Matt & Nat’s General Manager of Retail, Sacha Singh, more GTA locations are expected to follow, and the company’s expansion will be careful so as to pick the ‘right’ locations. Mr. Singh noted that the company’s retail expansion will be methodical and will initially focus on Ontario and eastern Canada, prior to moving into any other markets. 

Square One is one of Canada’s largest, busiest and most productive malls in terms of sales per square foot, according to Retail Council of Canada’s Shopping Centre Study. In the spring of 2016, the mall debuted its new Holt Renfrew-anchored ‘luxury wing’, and landlord Oxford Properties also recently announced that entertainment concept The Rec Room will be opening in part of the space once occupied by Target

Mr. Singh also confirms that Matt & Nat will open its first outlet store this fall at Premium Outlets Montreal, in Mirabel. The 2,300 square foot retail space will be located near locations for luxury brands Salvatore Ferragamo, Hugo Boss and Gucci. Premium Outlets Montreal is considered to be the leading outlet centre in the Montreal area, and is one of two such centres in Canada operated by Simon Property Group (the other is Toronto Premium Outlets). 

MATT & NAT RIDEAU CENTRE (PHOTO: PHOTOLUX STUDIO)
MATT & NAT RIDEAU CENTRE (PHOTO: PHOTOLUX STUDIO)
MATT & NAT RIDEAU CENTRE (PHOTO: PHOTOLUX STUDIO)

Brands are increasingly opening freestanding stores, and some brands are finding this to be a win-win strategy for both the brand as well as multi-brand retailers. At Retail Council of Canada’s STORE Conference this spring, panelists discussed some of the benefits to opening freestanding stores while also wholesaling to other retailers. In many instances the relationship is harmonious, with brand stores helping build awareness of the brand, leading to increased sales at both multi-brand wholesalers as well as at the individual brand store. Matt & Nat has a strong wholesale business that is expected to expand substantially, particularly given the increased propensity for consumers to seek out vegan products in Canada. 

Editor’s Note: Jay Freedman from brokerage Oberfeld Snowcap works with Matt & Nat on site selection. 

*All photos by Photolux Studio

New Lingerie Retail Concept ‘rêve rouge’ Caters to Changing Customer Tastes [Photos]

The founder of an Ontario lingerie retail chain has launched a new concept store targeted towards a younger demographic, and more locations are likely to follow. 

Liliana Mann, founder of Linea Intima, opened a new lingerie store called rêve rouge at Toronto’s Bayview Village in late June. The store offers high-end lingerie, sleepwear and yoga-wear, geared towards female customers between the ages of 15 and 50. 

Mann says she launched the store in response to the changing tastes of customers with respect to lingerie. 

“The customer base, I find, is changing,” she says. “It’s a totally different attitude.”

(CLICK FOR INTERACTIVE BAYVIEW VILLAGE MALL MAP) 

Specifically, Mann says younger customers are less focused on fit and support when shopping for bras, and more focused on feeling comfortable and sexy. rêve rouge strives to reflect that attitude in the merchandise, the design of the store, and the shopping experience.

“We opened the new store for the different customer – the customer who is more in tune with her body, and wants to please herself first, and wants to be comfortable,” says Mann.

The store carries brands from around the world, such as Fortnight, Mary Young, Bluebella, LingaDore, Else, Passionata and Implicite – some of which have never before been available in Canada.

Image: rêve rouge

The 821-square-foot store was designed with the help of Toronto-based designer Divia La Penna. The colour red is prominently showcased throughout the store, along with youthful accents such as white furry chairs and wallpaper decorated with lips and hearts. 

“The store is very clean and modern, but romantic and sexy,” says Mann. “It’s airy and dreamy. Every single detail was thought of.”

rêve rouge aims to create a relaxed shopping experience, with stylists in store who focus on helping customers choose styles they like.  

Image: rêve rouge

The new concept contrasts with Linea Intima, which launched 20 years ago and now operates five locations in Ontario. That chain caters to a more mature customer base, and focuses primarily on bra fittings. Although many consumers continue to seek out that type of service, Mann says she has found that a growing number of younger consumers were looking for a different type of lingerie shopping experience.

“Daughters who came with their mothers to Linea did not enjoy the experience,” Mann says. “So, that’s why I created a store for the daughters.”

Bayview Village was a good fit for the new store, Mann says, since the North York mall is attracting a growing number of younger shoppers. The upscale shopping centre also has a Linea Intima location.

Image: rêve rouge

Both retail chains also sell products online. 

Although Mann hasn’t yet made definitive plans for future rêve rouge locations, the expansion of the new concept appears imminent.  Within days of opening the store, Mann says she received calls from other malls inquiring about adding more locations. 

“There is a much larger demand for a store like this,” she says. 

Factors Contributing to Recent Retail Store Closures in Canada

With retail stores closing down at an alarming rate, retailers must focus on putting customers first and adapting to the digital transformation of the industry in order to survive, suggests a new white paper from digital marketing agency DAC Group.

The new research paper, called Customer-First Retail, explores the factors contributing to the recent wave of retail store closures, and some of the strategies retailers need to implement to remain relevant in today’s marketplace. It features insights from a variety of retail industry executives, such as Diane J. Brisebois, president and CEO at Retail Council of Canada

The paper suggests that the most critical step for retailers to take in the current environment is to make the customer experience their top priority.

“You must be completely obsessed with your customers and with their specific needs and wants so that you can communicate and serve them in an authentic way,” says Brisebois in the paper. 

A key component of customer centricity is personalization. Specifically, customers today want to feel important, special, and valued, according to DAC Group. To personalize the customer experience, retailers must get to know their market extremely well—partly by tapping into data.

Taking that approach can pay off, the white paper suggests. It points to recent research from The Boston Consulting Group showing retailers that use digital technologies and proprietary data to create personalized experiences are seeing their revenues increase by 6% to 10%—two to three times faster than companies that aren’t using this kind of strategy.

Another element of customer-centricity is engaging customers at the local level, by customizing marketing and communications towards consumers within specific regions. 

The Body Shop is one retailer that has embraced this strategy by using tools such as personalized emails and geo-targeted Facebook ads, according to Jennifer Spencer, VP marketing and corporate responsibility at The Body Shop, who participated in DAC Group’s research.

“It’s important that the customer experience is consistent across the entire brand, but it also needs to be personalized for the local markets as well to ensure that we connect with the communities where our stores are located,” Spencer says in the white paper.

One of the key reasons that many retailers are struggling in the current environment, Brisebois says, is their failure to create engaging and inspiring experiences for customers.

With disrupters such as Amazon changing customer expectations, retailers need to adapt their offerings more quickly than ever. 

“The future belongs to those retailers who constantly test, innovate and really take chances,” says Brisebois. 

Catering to the expectations of today’s customer means providing a seamless omnichannel experience, according to DAC Group. Digital and mobile channels are becoming an increasingly important part of that experience, and having a strategy around those channels is vital, the paper says.

However, the retail experts interviewed for the research paper agreed that a physical presence will also continue to be important for retailers.

“I think it would be foolish for people to dismiss the brick-and-mortar experience,” says Brisebois. 

The challenge for retailers will be remaining agile enough to maintain the right balance of in-store and online operations as customer buying habits continue to evolve. 

“I think the successful retail companies are going to have a store footprint,” says Johnny Russo, associate vice president, e-commerce and digital marketing at Mark’s. “They’re going to have a solid digital platform, but they’re going to have a store foundation, and I think the ones that get that combination right are going to win.”

Rocky Mountain Soap Company to Launch Retail Expansion 

Canmore, Alberta-based Rocky Mountain Soap Company is about to launch a retail expansion, after evaluating its overall business strategy for the past couple of years. 

According to CEO and co-owner Karina Birch, the company paused its retail store expansion in 2015 in order to perfect its product and customer service experience, as well as upgrade various systems and processes. 

It’s paid off — Ms. Birch says that last quarter, the company saw almost 20% growth in year-over-year same-store growth, as opposed to about 10% growth in years prior. What’s remarkable is that seven of its 10 stores are in Alberta — a province experiencing a temporary economic slump that’s been attributed to low oil prices. 

The product speaks for itself, noted Ms. Birch — founded in 1995, Rocky Mountain Soap Company offers a wide variety of 100% natural and toxin-free personal care products, using high-quality essential oils, pure natural beeswax, food-grade vegetable oils, real grains, fresh herbs and fruits and vegetables in its products. Customers are loyal, and the retailer’s customer base is growing rapidly. 

Ms. Birch and her husband, Cam, grew the company from a single 300 square foot location in Canmore, to a chain of 10 retail locations in Western Canada, as well as boasting more than 700 wholesale accounts. Rocky Mountain Soap Company has stores in Canmore, Banff, Calgary (three stores) Edmonton (two stores), Vancouver (two stores) and one in Winnipeg. It also currently operates a pop-up location at Calgary’s CF Chinook Centre

Natural beauty products is the fastest-growing segment in the beauty industry, and Rocky Mountain Soap Company is fortunate enough to have benefited from this trend. 

The company stands out for how much effort and investment it puts into its ingredients and overall product development. Research is done in-house, as is manufacturing — the company has a 16,000 square foot worship in Canmore. Ms. Birch described how the company uses local products wherever possible, and how it focuses on using 10 ingredients or less in each of its products. “With less ingredients, you obtain higher quality,” noted Ms. Birch. Canadian ingredients are preferred as well and while that might cost more, Ms. Birch says that the resultant higher quality makes it all worth it. 

The next 12 to 18 months will be a time of retail growth for the company, with Toronto being a key entry point for an anticipated three new store locations. The Greater Toronto Area is Rocky Mountain Soap Company’s biggest online market outside of Alberta, and stores are expected to further build relationships with clients. Rocky Mountain’s stores are interactive and educational spaces, and many retailers are increasingly seeing benefit to operating both physical and online retail channels. 

Ms. Birch says that the company is looking primarily within high-traffic shopping malls for retail space, though it is also considering street-front locations in selected areas. Rocky Mountain Soap Company stores are ideally in the 700 square foot to 800 square foot range, and she says that she expects to open another nine or so stores over the next four-to-five years. While it represents a doubling of its existing store count. Ms. Birch says that growth will be calculated, and organic. 

*Oberfeld Snowcap represents Rocky Mountain Soap as brokerage in Canada.

Canadian Retail News From Around The Web: July 10, 2017

Les Galeries de la Capitale to See Substantial Investment [Renderings/Video]

The largest enclosed shopping centre in the province of Quebec, Les Galeries de la Capitale is seeing substantial investments that are expected to further attract customers. Included will be an innovative, overhauled amusement park, as well as a zero-carbon La Maison Simons store. 

This week, landlords Oxford Properties and CPPIB announced the $52 million construction of a new Méga Parc amusement park at the Quebec City mall. Méga Parc has been part of Les Galeries de la Capitale for over 30 years, and it will be fully revamped and transformed into a Steampunk themed “entertainment zone inspired by the Industrial Era.” Construction is set to begin on September 5 of this year, and it’s expected to be completed in about 18 months. 

The Méga Parc overhaul will allow patrons to “travel back in time to the turn of the 19th century in an alternate age where technology has evolved in a completely different way. Steam-powered machines, factories, and steel are omnipresent in this retro-futuristic industrial environment.” Further details are available on a french-language website: nouveaumegaparc.com

Most of the existing rides and attractions will be replaced, and the new Méga Parc will feature more than 18 attractions. The existing rollercoaster and merry-go-round will be kept, though they’ll be given a facelift in line with the new theme. 

Méga Parc manager Jean Pelletier noted that changes to the amusement centre were based on other amusement parks around the world. “In addition to boasting the first spokeless Ferris wheel in North America and a freefall ride twice as high as before, Méga Parc will proudly offer the longest indoor skating trail in Canada. The ice skating oval, complete with LED lights and effects, will fit perfectly with the new Méga Parc concept and will maximize space.”

Other features will include an interactive floor, light and sound effects, and a giant screen. In the middle of the park, there will be a stage for shows and an interactive fountain with water jets and sound and light features. There will be three new rooms set up for kids’ birthdays, and the recreational space can be rented out for corporate events. 

Méga Parc addresses the trend of adding entertainment components to shopping centres. It’s something that’s more common in major shopping centres in Asia and the Middle East, and North American landlords are now recognizing the trend by adding non-retail uses, which also include expanded food and beverage offerings. 

Méga Parc is already known as being one of the biggest tourist attractions in the Quebec City area, and its overhaul is expected to further add to the mall’s already heavy foot traffic. Les Galeries de la Capitale also includes the region’s only IMAX cinema. According to Retail Council of Canada’s Shopping Centre Study, Les Galeries de La Capitale is the region’s busiest mall with about 10 million annual visitors, and it’s also one of the most productive in the province in terms of sales per square foot. 

In a recent interview, Michael Turner, Executive Vice President for Canada at Oxford Properties, noted that percentage of space devoted to food and beverage in major malls in Asia is between 35% and 40%, and that Oxford Properties will look to eventually dedicate about 20% of its mall space in a similar fashion — about double what it is today. Adding attractions and food/beverage offerings are helping turn malls into community-centres, where patrons will gladly spend part of their day — and shop. 

The new Méga Parc will also be energy efficient, according to Oxford Properties. In keeping with the trend of energy efficiency, large-format fashion retailer La Maison Simons is building a $50 million, 80,000 square foot replacement store in the mall that President/CEO Peter Simons says will be the company’s first zero-carbon location. Simons will replace the mall’s Target box which was vacated with Target’s Canadian exit in 2015. 

The new Simons store, as well as the overhauled Méga Parc, are part of a bigger investment that has included the renovation of the mall’s common areas, modernization of the Espace Gourmet dining area, a major facelift of the mall’s Hudson’s Bay/La Baie department store, and the addition of a number of high-profile tenants. Over the past year, new retailers to open at Les Galeries de la Capitale include Sephora, MEC, Urban Planet, Rinascimento, Soft Moc, and Bijouterie Monaco, and in the coming months the mall will welcome new tenants such as MAC Cosmetics, Clarks, Jean-Paul Fortin shoes, Michael Kors, and L’Occitane en Provence