CBRE just published a report providing a list of the most productive retailers doing business in Canada. Remarkably, a number of retailers on the list are homegrown, though perhaps unsurprisingly Apple Stores made the top of the list with annual sales estimated at $7,241 per square foot. We spoke with retail expert Farla Efros, President of leading consultancy HRC Advisory, to gain insight into why the top retailers see success. 

Following Apple, Vancouver-based athletic brand Lululemon averages $2,961 per square foot annually. Surprisingly, large format retailer Costco is third with sales estimated at $1,490 per square foot. That surpasses LVMH‘s Canadian numbers (including Sephora and Louis Vuitton) with sales of $1,224 per square foot, annually.  

Edmonton-based Katz Group was a surprising find – the company’s chain of drug stores (including nameplates Rexall Pharma Plus and Rexall Drug Store) saw sales of $1,030 per square foot. That’s higher than Shoppers Drug Mart’s sales of $790 per square foot annually. 

Numbers from CBRE’s study were gathered from a 2014 study by Ryerson University’s Centre for the Study of Commercial Activity. The CBRE study also notes that according to the International Council of Shopping Centres, Canadian shopping centres saw sales averaging $673 per square foot annually over the past 12 months. That’s 12% higher than malls in the United States, with sales of U.S. $475. 

Below is a chart from the CBRE report, listing all retailers studied. The full PDF report can be viewed here. 

HRC Advisory President Farla Efros said that the top six retailers all feature ‘feel good’ lifestyle brand experiential shopping environments which particularly appeal to female shoppers. Apple Stores continue to innovate, most recently with the introduction of the Apple Watch. Lululemon’s fashionable workout wear blends with its experiential shopping environments. Costco, according to Ms. Efros, is becoming part of the health trend, carrying more organic, healthy choices at affordable bulk pricing. Louis Vuitton blends brand status with product diversity beyond its ‘classic handbag’, and Katz Group’s recent ‘reinvention‘ appeals to female customers with softer colours. Whole Foods, meanwhile, continues to expand into the realm of convenient, grab-and-go healthy meal options, according to Ms. Efros. 

Today, nearly a third of consumers learn about new products and services via social media and branded websites. This reality only bolsters the importance of establishing your brand to ensure success.

Not only does an established brand enhance your professionalism, but it also ensures brand continuity. Competing on the grounds of quality alone won’t cut it in the digital age. Now, consumers crave — and even expect — an enjoyable brand experience. The age-old “bang for your buck” mentality is falling by the wayside.

Regardless of your company’s size, it’s imperative to establish and maintain a positive brand image, letting it evolve with your business. It’s an ongoing process that requires attention, especially from your customer service and marketing departments, but it’s a worthwhile endeavor. Today is the day to start building a better brand. Today is the day to build a brand that won’t succumb to a threatening tide.

As a result, many companies are now suffering from brand erosion, one of the first signs a business is headed toward extinction. Even established companies aren’t safe. Consider Sears, a department store heavyweight that’s been around for more than a century. Sears Holdings has been closing stores as its brand and sales decline. Last year, another 200 of the 1,900 remaining Sears and Kmart stores closed — the company’s future remains bleak.

If it can happen to a household name like Sears, it can happen to any brand. Don’t let it happen to yours. Here are the top warning signs to watch for:

1. Your Customer Loyalty Starts to Decline

As a company’s brand starts to wear away, customer loyalty will, too. When your customers begin taking their business elsewhere, this is a clear indication that your brand is eroding. While several factors can cause brand erosion, the loss of existing customers is a sure sign your brand is not performing at the level it should be.

2. You’re Selling Too Many Products

Focusing on too many products can lead to brand erosion. Focus on the products and services your company specializes in. You might find that a wide product line increases your profit levels for a short period of time, but with each new product comes added customer support, which can actually hinder overall support. If you’re going to introduce a product to your line, first make sure the proper backing is in place.

3. Your Employees Are Unhappy

Keeping your customers happy should be your No. 1 goal. To achieve it, you must keep your employees happy. After all, they’re your front line of defense when it comes to establishing customer rapport. To keep your employees satisfied and productive, build a culture of support. Reward them for their hard efforts and train them in relation to customer service.

4. You Don’t Have Proper Resources

As business leaders, we hope our product lines expand, but improper resources may be hindering further growth. As a result, brand erosion occurs. If it seems your resources are insufficient, consider cutting back your product line. Or, if possible, reorganize your budget to ensure appropriate resources are facilitating larger operations. Resources to consider for maximized growth include employee management software and heat map and video surveillance technology.

Proactive Ways to Stop Brand Erosion

At the first signs of brand erosion, it’s critical to implement a variety of methods to stop the cycle from continuing. If you don’t, it will spread throughout your organization like a virus, infecting everything from customer service to marketing agendas. Fortunately, methods exist for preventing, halting, and even reversing brand erosion:

• Restructure your employees. Preventing erosion can be as easy as restructuring employees and placing them in positions that complement their strengths. If your staff isn’t cranking out first-rate performances (simply because they weren’t in the most appropriate positions), wear is possible.
• Brand your employees. If your employees aren’t donning your branded apparel, start rewarding them with company swag. Something as simple as poor brand marketing can lead to erosion. With branded clothing, your employees will serve as walking marketing tools for your brand. Also, launching promotional campaigns and doling out promotional items are ways to further brand your company.
• Always right your wrongs. No company is perfect, but some fail to show how much they care about their customers. These are companies that suffer from brand erosion. To keep your brand in a positive light, right all of your wrongs. If a customer isn’t satisfied with the product or service you provided, offer a refund or some type of compensation.
  

Regardless of your company’s size, it’s imperative to establish and maintain a positive brand image, letting it evolve with your business. It’s an ongoing process that requires attention, especially from your customer service and marketing departments, but it’s a worthwhile endeavor. Today is the day to start building a better brand. Today is the day to build a brand that won’t succumb to a threatening tide.