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List of Retailers Opening and Expanding in Canada

By
Craig Patterson
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The following is a list of 20 retailers which are opening or expanding in Canada. The list is sponsored by Vancouver-based Peregrine, specializing in custom designs and building retail, display, furniture and architectural features for some of the country’s top retailers. 

This list is only a small representation of Canada’s vastly changing retail landscape. At the moment, we’re actively compiling retail industry research. Stay tuned for interesting reports and articles on the Canadian retail industry.  

STORE NAMELOCATIONS TO OPENNEW OR EXPANDINGESTIMATED # OF LOCATIONS AFTER EXPANSION
Agent ProvocateurToronto: Bloor Street West flagship (now open)Expanding4+
American Girl (via Chapters/Indigo)Ottawa (opened October 11th), Canada-wideExpanding (currently 3 locations)15 (estimated)
Clarks ShoesCanada-wideExpanding (currently 13 locations)40-50
DesigualWest Edmonton Mall, Ottawa (Bayshore), Carrefour Laval, Canada-wideExpanding6+
EatalyToronto, possibly Montreal & VancouverNew1-3+ (unconfirmed)
Free PeopleVancouver (2 locations now open – Granville Street, Park Royal), Canada-wideExpanding4+
H&MCanada-wideExpandingIn excess of 70 stores (+other labels TBA)
Harry RosenVancouver (mentioned by CEO), Vaughan Mills outlet (opening soon)Expanding16 full-priced, 2+ outlets
Hudson’s Bay OutletMontreal (Premium Outlets Montreal, opened yesterday)Expanding2+
Laura SecordCanada-wideExpandingUnknown – in excess of current 104 locations.
LodingToronto (First Canadian Place), other Canadian cities TBAExpanding2+
L’Occitane en ProvenceVancouver (Robson Street – now open), Canada-wideExpanding30+
MujiToronto (Atrium on Bay), Vancouver, possibly Canada-wideNew7-8+
PatagoniaVancouver (West 4th Avenue), other cities TBA.Expanding2+
PomellatoVancouver (Pacific Centre, now open), possible Toronto franchiseNew1-2?
Pusateri’sOakville, ON, Saks Fifth Avenue food halls (as many as 8)Expanding (from 3 locations)4+ Pusateri’s, as many as 8 Saks food halls.
Saje Natural WellnessCanada-wide: very aggressive expansion plans.Expanding (from current 14 locations)50 by the year 2018.
Sandro/Maje (freestanding)TBA – currently 2 men’s and 5 women’s concessions within Hudson’s Bay in Vancouver, Toronto, Montreal.ExpandingTBA
SparepartsTBAExpanding (from current 7 locations)TBA
Thomas SaboCalgary (Market Mall), recently opened in Winnipeg (Polo Park) and Mississauga (Square One)Expanding (from current 10 locations)12+

 

Infographic: The Future of E-Commerce in Canada

By
Retail Insider
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Infographic: The Future of E-Commerce in Canada

The following infographic portrays the explosive growth of e-commerce in Canada, with forecasted numbers doubling between now and the year 2019.  It was created by Nextopia.

About Nextopia:

Since 1999, Nextopia has been in the business of helping retailers sell smarter and have been dedicated to growing online retailers businesses’ through innovative technology and proprietary methods. They do this by supplying customers with the tools and control they need to convert browsers into buyers. With over 1,600 customers, Nextopia is the #1 global provider of eCommerce site search and navigation solutions. Nextopia’s powerful technology streamlines and supercharges your sales and merchandising efforts, provides vital customer data through our back-end analytics, and improves your customers’ shopping experience.

Twitter: @Nextopia
Facebook: facebook.com/NextopiaSearch
YouTube: nextopiasoftware
Pinterest: pinterest.com/nextopiasearch
Google+: Nextopia Software

Premium Outlets Montreal Opens

By
Craig Patterson
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Today marks the highly anticipated opening of Premium Outlets Montreal. The impressive centre features several first-to-Canada outlets, anchored by Canada’s second Hudson’s Bay Outlet. In this article we’re including various details on the centre, as well a complete store listing and mall floorplan. 

Premium Outlets Montreal is the second in the country for the Simon Property Group-operated centre, following its successful opening of the Toronto Premium Outlets in August of 2013. The Montreal centre is located 45 kilometres north of Downtown Montreal in Mirabel, off Highway 15 at exit 28 on the corner of Chemin Notre-Dame and Boulevard de Versailles. The single-level village-style property features 84 stores spanning 366,400 square feet. Its food court is dominated by a life-size bronze sculpture of a bear and two cubs, by artist Chris Williams. Outdoor walkways are covered with rustic, cabin-style canopies to provide shelter. 

Installation of ‘Bear Family’ sculpture by Chris Williams.

The centre boasts several first-to-Canada discount outlets, including Max Mara, Desigual, Famous Footwear and Michael Kors. A total of 64 shops open today, while Lacoste, Diesel and others are scheduled to open in the coming weeks and months. We’re told that lease negotiations with Forever 21 and a handful of other retailers are ongoing. 

The centre is operated by Simon Property Group, in partnership with Calloway REIT and SmartCentres. Simon, which owns a 50% share in the centre, disclosed to the Montreal Gazette that its net development cost was $74.2 million. We’ve been told that the entire construction cost was approximately $125 million. Mark Silvestri, COO of Simon, says that the centre could easily grow by another 100,000 to 150,000 square feet, eventually housing luxury outlets including the likes of Burberry and Dior — not unlike that of Simon’s Woodbury Common, north of New York City. Toronto Premium Outlets has been such a success, according to Silvestri, that a second phase is already in the works. 

Sales forecasts for Premium Outlets Montreal are $140 million annually, according to Simon Property Group. 

Sylvie Laporte, general manager of Premium Outlets Montreal, said they are expecting 80,000 to 100,000 shoppers over the first four days. Visitors will be treated to promotions and parties.

Anchoring the centre is Canada’s second Hudson’s Bay Outlet. The 26,000 square foot outlet features a variety of clearance items from Hudson’s Bay stores, including some items from luxury womenswear department ‘The Room‘. Hudson’s Bay’s first outlet, at the Toronto Premium Outlets, also features clearance items from Saks Fifth Avenue — the photo below was taken by retail blogger ‘Toronto Shopkeeper‘. 

Last year, we were provided a lease plan for the new centre. Some outlets are quite large, including Coach (with a whopping 9,567 square feet), Lacoste (3,657 square feet – opening spring, 2015) and Polo by Ralph Lauren (14,956 square feet). 

Below is a list of retailers at Premium Outlets Montreal, as well as a mall floorplan. To access a larger PDF version, click the floorplan below. 

Innovative Accessories Retailer Spareparts Looks to Expand Store Base

By
Craig Patterson
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Spareparts (Image: Cutler)

Innovative Saskatoon-based multi-brand lifestyle accessories retailer Spareparts is looking to expand its Canadian store base. Its combination of curated product, superior customer service, and beautiful store interiors sets the retailer apart, achieving best in class sales productivity. 

Founded in 1992, the Saskatchewan retailer boasts seven locations: one in Saskatoon, one in Regina, two in Calgary, two in Winnipeg, and one in Kelowna. It focuses on accessories and has a comprehensive range of styles and brands, from streetwear to contemporary fashion. Product is curated by a team of buyers, and brands available include Farmfresh, Michael Kors, Nixon, Herschel, Oakley, Burton, and several others. Farmfresh is the Spareparts’ private label line and features premium sunglasses and watches. The popular line has recently received positive press coverage. 

Youtube video
A LOOK AT THE SPAREPARTS’ FLAGSHIP AT CALGARY’S CHINOOK CHENTRE.

We spoke with Spareparts’ founder, Danny Mysak, who explained why Spareparts is unique, and why it achieves best in class sales productivity. Mr. Mysak explained that Spareparts is highly service-oriented, keen on building relationships with its clients. You’re not just buying a product when in the store – you’re buying the experience, complete with beautiful interiors, a highly curated product mix, and an attentive, well-trained sales staff who ensure that clients are satisfied. 

Mr. Mysak explained how Spareparts is somewhat unique to a mall location-based retailer, in how it participates in its local communities. “We seek out aspirational players in our respective markets and leverage our community teams through our marketing efforts with the intent of acquiring authentic and local credibility”, he said. 

The company also has its own fashion blog, The Rooster, offering a glimpse of life on the Canadian prairies and around the world, as well as fashion editorial, community profiles and lifestyle content exclusive to Spareparts.

Spareparts (Image: Cutler)

Spareparts’ store interiors are cutting edge and beautifully designed. The company has worked with cutting-edge Vancouver-based design firm Cutler for its store interiors, which are bright and modern, yet clean and inviting. Designer Natalie Cutler says: “We love collaborating with Spareparts, it’s such a creative process and we are given the freedom to make each location a bit unique.  We have a shared passion for architecture and integrate that into the storefront and interior fixtures.  The goal is to design a space that feels a bit like home and focuses on the finishes, lighting and the little details”

Mr. Mysak tells us that for future locations, Spareparts seeks space in the 1,000 to 1,700 square foot range, ideally in high-traffic shopping centres. 

All photos: Cutler

Versace Home Opens 1st Flagship in the World in Vancouver

By
Craig Patterson
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Versace Home in Vancouver (Image: Versace Home/Major Global Interior Inc.)

The world’s first comprehensive Versace Home flagship has opened in Vancouver’s historical Gastown area. It’s the Italian luxury brand’s first location to feature its entire home collection, ranging from furniture to fixtures. 

Located at 310 West Cordova Street, Versace Home carries furniture as well as tiles, lighting, bathroom fixtures, bath accessories, porcelain, glassware, textiles, carpets, bedsheets, fabric, decorative pieces and wallpaper. The store occupies about 2,000 square feet of retail space in a building measuring about 3,000 square feet. According to SpaceList, 310 West Cordova features 16 to 18 foot ceilings, as well as exposed brick on both side walls. It has access to a courtyard at the rear, and there are four large parking garages within two blocks. 

Versace Home was founded in 1992, initially as a collection of textiles for the home (sheets, duvets, pillows and cushions). Soon after, it launched its first range of porcelain dinner sets – the result of the strong collaboration with Rosenthal GMBH. The Versace Home brand has since expanded to include the product categories mentioned above. 

Versace plans to open as many as five Canadian fashion stores within the next several years, according to a source familiar with the company. Versace expects its new Canadian locations to break even within a year of opening, and expects them to be profitable within two years. Currently, Canada’s only free-standing Versace store is located at Toronto’s Yorkdale Shopping Centre. The 2,800 square foot location opened this summer. Versace’s current Vancouver location, which opened in 1987, is a licensed shop-in-store within multi-brand luxury retailer, Leone. Vancouver’s Versace carried the home collection up until a couple of years ago.  

Vancouver has a history of Versace store locations, besides its current boutique inside of Leone. In 1993, the company opened North America’s first Versus by Versace store, occupying about 2,500 square feet at the southwest corner of Burrard and West Georgia Streets. In 1995, a franchised Istante by Versace store opened at 769 Hornby Street, across from the Vancouver Art Gallery. Both closed several years after opening. 

All photos were provided by Versace Home/Major Global Interior Inc.

Hudson’s Bay Upscales by Adding New Designers

By
Craig Patterson
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Hudson's Bay Yorkdale (Image: Hudson's Bay)

Hudson’s Bay continues to add pricey brands as it becomes more upscale, with some labels formerly only available at Holt Renfrew. Brands have recently been added to the store’s accessories, footwear and men’s and women’s ready-to-wear departments, competing directly with similar selections at Nordstrom, Holt’s, and other upscale retailers. 

Various Hudson’s Bay stores across Canada have recently added shops for Kate Spade and Marc by Marc Jacobs accessories, joining an ever increasingly upscale selection of leathergoods. Pricey footwear brands such as Sophia Webster, Melissa by Vivienne Westwood, Hugo Boss, Loeffler Randall, Diane von Furstenberg, and Ron White have been added to several Hudson’s Bay locations. Hudson’s Bay’s best flagships now carry men’s and women’s fashion collections such as The Kooples, Marc by Marc Jacobs, Vince and Theory — all of which are also carried at Holt Renfrew locations across Canada. Furthermore, Nordstrom’s Canadian stores will also carry many of these brands, as evidenced by the brand mix at its new Calgary location. 

KATE SPADE AT VANCOUVER’S HUDSON’S BAY FLAGSHIP. PHOTO: CRAIG PATTERSON

In the late 1990’s, Holt Renfrew became the exclusive Canadian distributor for Kate Spade bags and accessories. Until recently, Kate Spade handbags were only available at Holt Renfrew and at Kate Spade’s free-standing Canadian stores, the first of which opened in the fall of 2012 at Toronto’s Yorkdale Shopping Centre. In September, several Hudson’s Bay stores saw the introduction of purpose-built Kate Spade ‘soft shops’, profiling the brand’s expanded accessories collection. 

THE POPULAR DESIGNER/BLOGGER BECKERMAN SISTERS LAUNCHED THE MARC BY MARC JACOBS’ LINE AT HUDSON’S BAY ON SEPTEMBER 16, 2014. PHOTO: HUDSON’S BAY. 

Until recently, as well, Marc by Marc Jacobs‘ Canadian distribution was primarily through Holt Renfrew. Last month, the popular designer/blogger Beckerman Sisters launched the Marc by Marc Jacobs’ line at Hudson’s Bay, making personal appearances at its flagship Toronto and Vancouver stores. Several Hudson’s Bay stores now feature purpose-built Marc by Marc Jacobs soft-shops, carrying a variety of the brand’s upscale accessories. Hudson’s Bay flagships in Toronto and Vancouver also carry the Marc line of men’s and women’s ready-to-wear fashion, while a handful of locations also carry the brand’s footwear. 

MARC BY MARC JACOBS SHOP-IN-STORE AT HUDSON’S BAY, VANCOUVER. PHOTO: CRAIG PATTERSON

Popular French brand The Kooples was recently introduced to Hudson’s Bay flagships. At the same time, four Kooples concessions opened this month at Holt Renfrew’s Toronto, Montreal, Calgary and Vancouver locations. It’s interesting to see that both Hudson’s Bay and Holt Renfrew now carry upscale collections by Vince, Theory, McQ by Alexander McQueen, Hugo Boss, Eileen Fisher, Helmut Lang, Opening Ceremony, and others. Surprisingly, Hudson’s Bay managed to secure concession rights to popular and pricey French brands Sandro and Maje, and we’re told that these brands are doing so well that they’re considering opening free-standing Canadian stores. 

Hudson’s Bay’s move towards becoming more upscale took off in 2008 when then-President Bonnie Brooks added about 250 new brands to the retail chain, after dropping about 800 underperforming labels. In late 2009, the 22,000 square foot luxury women’s department ‘The Room‘ was added to its Toronto flagship, featuring top international clothing and accessories brands priced into the thousands. A 20,000 square foot Vancouver ‘Room’ location opened about two years later. Various Hudson’s Bay’s accessory departments also saw upscale designers added, including the likes of Botkier, Love Moschino, Furla, Z Spoke Zac Posen, Halson Heritage and the inclusion of several Coach shops-in-stores. The world’s second-largest Coach shop-in-store was located within Vancouver’s flagship Hudson’s Bay, though its 3,200 square foot space was recently reduced to house the new Marc by Marc Jacobs shop. 

22,000 SQ FT LUXURY WOMEN’S DEPARTMENT ‘THE ROOM’ OPENED LATE 2009 ON THE 3RD FLOOR OF HUDSON’S BAY IN TORONTO. INCLUDED WAS A $21,000 BALMAIN DRESS, AS WELL AS OVER 40 INTERNATIONAL LUXURY BRANDS. A VANCOUVER LOCATION FOLLOWED TWO YEARS LATER. PHOTO: YABU PUSHELBERG.

Hudson’s Bay may continue to add more top brands, now that its parent company owns American luxury retailer Saks Fifth Avenue. Saks has strong relationships with some of the world’s top brands, possibly giving Hudson’s Bay access to some Saks labels. At the same time, with Saks Fifth Avenue’s intention to open as many as eight Canadian stores, it remains to be seen if their parent company will continue to position Hudson’s Bay as more upscale. If it does, Hudson’s Bay will see substantial competition from Nordstrom, which currently positions itself between Saks Fifth Avenue and Hudson’s Bay in terms of pricing. Nordstrom plans to open as many as 10 Canadian stores and could be fierce competition for Hudson’s Bay, especially as Nordstrom’s Canadian stores will feature fresh interiors and focus on superior customer service. 

 

Optimizing the Click-and-Collect Trend: The Challenges and Benefits

By
Retail Insider
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Loblaws Click and Collect (PHOTO: BMO CAPITAL MARKETS)

By Joe Woods

The growing e-commerce trend of click-and-collect is upon us, especially with holiday shopping right around the corner.

The concept of click-and-collect is simple. A customer orders a product online and then proceeds directly to the physical retailer to collect his purchase. The popularity of this trend is that each shopper is able to browse online from the comfort of his own home and, rather than pay for shipping and anticipate the delivery, the shopper can collect his purchase from the store at his own convenience.

Benefits of click-and-collect are rich for both customers and retailers. For shoppers, it is a reasonable alternative to expensive same-day delivery, allowing shoppers to forgo shipping altogether and pick up locally. Shoppers have more options online than when shopping in-store. Retailers are also adopting price matching techniques with click-and-collect, giving shoppers cheaper price options as well as more product options.

For retailers who are continuously looking for ways to leverage their existing online solutions, a key way to earn consumer confidence is through a physical presence. Click-and-collect gives customers a tangible way to relate to a brand. This provides shoppers with a tactile engagement with products and also gives the assurance that they can immediately connect with customer service. Click-and-collect also allows for many retailers to focus on clearing their warehouses and store inventories, which effectively optimizes their brick and mortar shelf space for fulfillment for online customers. Eliminating seasonal rotations, store-to-store transfers and being able to use stores as customer pickups, or even shipment points, can eliminate many operational costs to an organization.

Though managing inventory is one major benefit to click-and-collect, in-store figures may often be harder to predict by allowing the service. Systems must be updated frequently to keep the most accurate figures both online and in-store. Additionally, some items may be more difficult to monitor if they are in-stock, set aside by store staff, or have been otherwise lost in storage. It is important to be transparent with the customer that his requests are subject to acknowledgement and confirmation by store staff. Difficulties can than be avoided when customer arrives at store to pick up product.

Reversely, these levels must also be visible and directly communicated with store management and sales staff as well. A key solution for this issue is to show inventory and a time check as to when the update was last made. This allows the customer some degree of confidence in the information.

Just as accurately communicating the order to the physical store is crucial, the store staff needs to be ready to respond to online orders in an effective way. This should be led by dedicated team members and be monitored with an overall process to alert the store that an online order has been made. A store must be able to trust its staff to properly keep track of inventory, monitor online purchases and set products aside in anticipation of the shopper’s arrival. This accuracy and brand engagement can be strengthened through incentive programs and should be an extreme priority. Incentives must be updated to allow for online transactions to be rewarded in a way that properly motivates staff to respond to these requests and service these customers properly.

The last essential key to implementing a successful click-and-collect feature is embracing a single customer view. Rather than separating consumers by “in store only” or “web order only”, retailers need to embrace a seamless integration between all touch points. The reality is that customers do not categorize themselves as an in-store shopper or an online shopper. They just recognize that they are buying a product from “x” store. To truly understand their needs and expectations, brands should embrace that understanding as well.

Though there are many challenges in implementing a successful click-and-collect service, brands that embrace these obstacles will likely satisfy customer needs, making for loyal shoppers. Realistically, a successful implementation does not happen overnight. Click-and-collect features should be heavily tested for glitches and clarity before brands offer the service to shoppers. A strong technology partner will be essential to help the brand achieve its goal.

Joe Woods, president of Loop Integration, is an experienced omni-commerce consultant and solution architect with more than 14 years of experience implementing retail commerce solutions.  His background includes time as a technical consultant for Technology Solutions Company, before joining Blue Martini Software in 2000.  Woods is a co-founder of contiigo (formerly Loyalty Tech) in Sydney and has built a successful team culminating in the hybris APAC partner of the year award in 2012.

Canadian Retail Sales Fundamentally Sound; Some Optimism for the Holiday Season

By
Ed Strapagiel
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Woman shops online during the holiday period. Photo: Salesforce
Woman shops online during the holiday period. Photo: Salesforce

Statistics Canada indicates that retail sales increased 2.5% in August 2014 over the same month a year ago on a not seasonally adjusted basis. This was a low point for the year, mostly caused by a particularly poor month at supermarkets and other grocery stores. Other retail store types however picked up some of the slack. 

For the 3 months ending August, total retail sales were still up 4.6% versus a year ago. The 3-month trend (orange line in the chart above) is running at above the average for the last 4 years, and is still slightly ahead of the underlying 12-month trend (green line). 

Among the major retail sectors, Food & Drug has softened and Automotive & Related is very slowly declining, mostly due to moderating gas prices. On the other hand, Store Merchandise appears to be significantly improving. 

2014 Holiday Season Retail Looks “Okay”

Store Merchandise retail sales were up 5.3% year-over-year for the 3 months ending August 2014. This is the highest it’s been at this time of the year since 2007, or, in other words, since before the Great Recession. This indicates significant positive momentum going forward, and Store Merchandise is the retail sector that benefits most from holiday season shopping. 

Another positive factor is the weakening Canadian dollar, which recently dipped to just under 90¢ US. This should dampen cross-border shopping and add to Canadian retailers’ sales potential. 

Yet another positive is declining gasoline prices. The less money that consumers pour into their gas tanks, the more they may leave at a retailer near you. 

While the above factors indicate favourable conditions, there’s also the other side of the coin. For many retailers not selling cars or gasoline, 2014 got off to a slow start. To make their numbers for the year, they will have to become more aggressive over the holidays, which means more specials, deals and discounts. So while the sales might materialize, profitability may be modest at best. 

Finally, the weather is always a wildcard, as last year’s ice storm in Eastern Canada showed. 

Food & Drug Stores

Retail sales at supermarkets and other grocery stores were down 3.4% in August on a year-over-year basis, after being up the same 3.4% the month before. This choppy pattern of ups and downs is not unusual for supermarkets and grocers. 

At the same time, there were also retail sales declines at specialty food stores and beer, wine & liquor stores. Health & personal care stores (i.e., drug stores) were up 4.3%, which would normally be a solid gain except that it was their lowest year-over-year monthly increase thus far in 2014. In fact, of all the retailer types in this sector, only convenience stores did better than their previous year-to-date average. 

Just bad luck that the declines all came together? Quite possibly, but we’ll have to wait and see … 

Store Merchandise

Retail sales for the Store Merchandise sector were up 5.3% for the 3 months ending August versus a year ago, a level not seen for several years. The 3 month trend (orange line in the chart above) is well ahead of the underlying 12 month trend (green line), indicating positive momentum going forward. 

With one exception (miscellaneous store retailers), all store types in this sector had positive year-over-year retail sales increases for the 3 months ending August 2014. The biggest gainers were other general merchandise stores at 9.4%, home furnishings stores at 6.9%, sporting goods, hobby, book and music stores at 6.5%, and clothing stores at 6.1%. Even electronics and appliance stores (“the basket case of Canadian retail”) managed to eke out a 0.1% gain. 

Automotive & Related

Sales trends are slowly softening for Automotive & Related, although it’s still the highest gaining major sector in Canadian retail. 

After going up 10% in the first half of 2014, gasoline station retail sales increased only 2.5% in August. With pump prices still in decline, this is bound to go into negative territory in Q4. 

On the other hand, automobile dealers’ sales are still robust, up 6.3% year-over-year in August. This is on a par with the previous pace set a year ago, and well above the overall retail average. 

Other motor vehicle dealers and automotive parts, accessories & tire stores had sales declines in August, but they are only a minor portion of total Automotive & Related sector sales. 

By The Numbers

Ed Strapagiel is a consultant specializing in applied marketing, business development and strategic planning.

For definitions of store types, see Statistics Canada. 

Build Market Power with Branded Direct Response Television

By
Retail Insider
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PHOTO: DRTV

By Doug Garnett, President, Atomic Direct

Walk into nearly any store and you’ll find an end-aisle dedicated to “As Seen on TV” products: short-term products that fly off the shelf because they are promoted with direct response television (DRTV).

While these short term sales are impressive, marketers and retailers know better than to copy their “yell & sell” advertising. This creative style sometimes brings outstanding short-term sales, but it also creates a serious risk of damaging your long-term brand value.

Is there any way to utilize DRTV’s power without the downside? Absolutely. With a type of DRTV we call “branded DRTV”.

Today marketers use branded DRTV to drive new product (or service) success, brand expansion, and drive sales that put their products on mainstream shelves for the long-term. Savvy retailers use branded DRTV to drive store traffic, bring in new customers, and build store brands – all while increasing shopping basket size. 

My agency has used DRTV to drive these benefits for marketers like Rubbermaid and Briggs & Stratton; for retailers like Lowe’s Home Improvement; and even for ingredient brands like DuPont Teflon.

DRTV’s Power Source

To sort out how DRTV can build retail power for your brand or stores, it’s important to understand the fundamental capabilities it brings:

  • DRTV drives retail action. With solid retail distribution, you’ll see 7 to 20 units sold at retail for every one sold directly by phone or web. DRTV is no longer primarily about building a direct sales channel.
  • DRTV is more cost effective than other forms of TV media. It’s bought through lower rates that are given to commercials featuring offers for immediate action. How much lower? Typically 4 to 8 times less expensive.
  • DRTV drives action by advertising a product. After all, consumers buy products – not brands. By revealing what’s compelling about your product, DRTV drives immediate action at retail as well as through direct sales.
  • Branded DRTV builds strong brands. Product focus is exactly what makes branded DRTV so compelling for brand building. Consumers retain brand messages when they are meaningful – when they are connected to products. So when you use products to show brand values, you build brand while driving immediate sales impact. 

Two Quick Examples

Keep your eyes open and you’ll see DRTV used by credit card companies, insurance companies, retailers, manufacturers, phone companies — an entire range of Fortune 500 brands.

My agency recently completed our second season of advertising for Mission Athletecare. Mission has innovative cooling products that were featured in a branded DRTV campaign centered around their product and supported by A-list athlete endorsements (e.g. Serena Williams, Dwyane Wade, and fisherman Kevin VanDam). TV’s highly visual medium allowed us to reveal the secrets to the product – the hidden actions that make the product work. The result? Outstanding sales impact throughout the retail channel and brand growth throughout the entire Mission product line.

For another example, consider the work we’ve done for Kobalt Tools – the Lowe’s store brand. Our fifth season of DRTV driving Kobalt sales has just begun and these campaigns have been the primary media driving the brand. The result has been impressive. 

Since we began our DRTV work, Kobalt has seen outstanding growth that made it one of the Landor Associates “Brands to Watch” in Fortune Magazine for September 2012. This was quite a surprise as it put the store brand and tool brand Kobalt in good company including Apple, Facebook, Skype, Amazon.com, Vizio, Samsung, YouTube, Netflix, Keurig, and the USMC. 

Getting DRTV’s Power for Your Company

It’s truly stunning how much impact DRTV can bring brands and retailers. There are a couple of keys to getting that success. First, you must identify products to be featured in your DRTV advertising that build fresh, compelling consumer messages – messages that also showcase the best of your brand value.

As you get started, stay away from agencies that believe the only route to DRTV success is through the “yell & sell” style (there are a lot of these agencies out there). At the same time, watch out for traditional advertising agencies who respond to your inquiry with “we can do that”. Branded DRTV is a specialty and your success requires an agency skilled at brand response.

DRTV drives success far beyond the sexiest of new media options. And once you learn to put that power to work for your brand, you’ll discover new brand heights you never imagined possible.

Doug Garnett is the founder and Chief Executive Officer of Atomic Direct, a consumer goods agency focused on building brand and driving retail with new products. Atomic also plays an important role in taking specialty products out to mass retail and using new products to build strength for existing brands. For more information, contact doug@atomicdirect.com, call 503-296-6131 or visit www.atomicdirect.com.

 

 

Saks Fifth Avenue Partners with Pusateri’s for Canadian Food Halls

By
Craig Patterson
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Upscale Toronto-based Pusateri’s Fine Foods will operate Saks Fifth Avenue‘s Canadian food halls. Saks’ first two food stores will open in the spring of 2016 within Saks’ Toronto Eaton Centre and Sherway Gardens stores. 

The new Saks food halls will feature specialized sit-down options, as well as upscale food products and “a variety of engaging culinary stations – all showcased within a fresh and modern atmosphere”, according to a press release. 

Hudson’s Bay Company CEO Richard Baker recently indicated that Saks’ Canadian food halls will each measure about 25,000 square feet, and that they will be modelled on the famous food floor at Harrod’s in London. Sources tell us that plans are in place for a large Saks food hall on the eastern half of the concourse level of the Hudson’s Bay flagship in the Toronto Eaton Centre, with three floors for Saks directly above — measuring a total of about 150,000 square feet. Saks will also open a 132,000 square foot location at Toronto’s Sherway Gardens, with both locations scheduled to open in the spring of 2016. 

Saks Fifth Avenue will eventually open as many as eight Canadian locations. The company has confirmed that Saks stores will open in Vancouver and Montreal, though we have yet to learn of their exact locations. Saks could also possibly open a Calgary location, according to Mr. Baker.  

Saks’ food halls will face competition from Popular Italian food concept Eataly, which sources say could enter Canada through Holt Renfrew. Eataly is in the process of opening stores worldwide, and sources say that it has been in talks with multiple Toronto landlords. Eataly locations could follow in Montreal and Vancouver, according so sources familiar with the company. 

Upscale Pusateri’s Fine Foods operates three Toronto locations, with a fourth scheduled to open in late 2016 at Oakville Place, as part of its $30 million renovation/expansion. Pusateri’s is a premium grocer that also serves prepared foods and offers catering.

“We are thrilled to partner with Pusateri’s as our food purveyor for the exciting launch of Saks Fifth Avenue in Canada,” said Richard Baker, Governor and CEO, Hudson’s Bay Company. “With their high standard of quality and exceptional selection of fine foods, Pusateri’s will help to deliver an elevated customer experience synonymous with the Saks Fifth Avenue brand.” 

“Pusateri’s is delighted to be working with Saks Fifth Avenue to operate the food hall installations for the world-renowned luxury retailer’s Canadian expansion,” says Frank Luchetta, President, Pusateri’s Fine Foods. “Saks Fifth Avenue’s superior dedication to exceptional quality and first-class customer service reflects the commitment to client care Pusateri’s holds at its core.”

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