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Blundstone celebrates 30 years in Canada

By
Craig Patterson
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Blundstone at The Australian Boot Company. Photo: The Australian Boot Company

Blundstone, the legendary Australian boot brand, celebrates 30 years in Canada this year. Since 1994, the Australian Boot Company has driven this journey, evolving Blundstone from a work boot into a Canadian favourite. 

Starting with just one product, Blundstone’s lineup in Canada now spans nearly 70 styles. Today, Canada is Blundstone’s largest market outside Australia, showcasing the brand’s appeal to Canadian consumers.

Tim Stacey, President of Tin Shack Ltd., the parent company of the Australian Boot Company, shared insights on Blundstone’s Canadian success. He attributes Blundstone’s appeal to its compatibility with Canada’s varied climate and outdoor lifestyle. “Blundstone fits the needs of Canadians perfectly,” Stacey said. The boot’s durability and versatile style make it ideal for both city streets and rugged landscapes.

Australian Boot Company store on Queen St. W. in Toronto. Photo: Australian Boot Company

How Blundstone First Arrived in Canada

Blundstone’s Canadian story began in the early 1990s when Australian Boot Company co-founder Greg Cromwell encountered the boot in Tasmania. After spotting an Australian band wearing Blundstones during a Toronto show, Cromwell and his business partner Ian Heaps decided to import a batch. “The first 24 pairs arrived from a store in Hobart,” Stacey noted, sparking interest among Toronto’s creative community.

In 1994, Cromwell and Heaps opened their first store on Queen Street West, then a hub for artists and independent retailers. “Queen Street was the perfect starting point,” Stacey recalled. “The neighbourhood’s eclectic vibe matched Blundstone’s authentic look.” With affordable rent and an artsy clientele, the brand quickly gained a following, leading Cromwell and Heaps to secure official distribution rights in 1996.

Heaps later expanded Blundstone’s reach by driving across Canada in an orange van topped with welded Blundstone boots, pitching to retailers along the way. “He stopped at independent retailers from coast to coast,” Stacey shared. This grassroots approach helped establish Blundstone as a go-to brand across Canada.

Australian Boot Company store. Photo: Australian Boot Company
Blundstone campaign imagery – Blundstone Classic – #2446

Blundstone in Canada: A Style Staple for All Seasons

Blundstone’s Canadian offerings have evolved beyond workwear. “Our styles suit a broad range of customers,” Stacey explained. “From rural areas to urban settings, we’re proud to offer products for all.” Blundstone’s classic Chelsea boot is as versatile as a favourite pair of jeans, easily moving from city to trail.

Today, Blundstone’s CSA-certified work boots make up about 25% of Canadian sales. This collection aligns with Blundstone’s core focus on durability, with many customers returning for new pairs after years of use. 

Blundstone now offers vegan options alongside its classic round-toe designs, thanks to feedback from Canadian customers and retail partners. “Our customers appreciate longevity,” Stacey remarked, adding that Blundstone’s lifetime value has helped build its reputation here.

Blundstone Work & Safety Boot – #180
Inside the Australian Boot Company store on Yonge St. in Toronto. Photo: Australian Boot Company

Blundstone’s Plans for Canadian Growth

Blundstone’s success in Canada is rooted in customer service. “We’re not just selling boots; we’re supporting the experience,” Stacey emphasized. Canadian customers can return to any Australian Boot Company store for complimentary cleaning and conditioning, extending each pair’s life. Blundstone also offers repair services, reinforcing its commitment to sustainability.

Future plans include expanding in Quebec, which Stacey calls an “untapped growth market.” To boost awareness, Blundstone is working with a Quebec-based marketing agency. 

In addition to regional growth, the brand is celebrating its 30th anniversary with a national campaign. The highlight is a collaboration with Beachman bikes, featuring custom designs with Blundstone’s signature rustic brown leather seats. Fans can enter a contest by sharing what Blundstones mean to them, with winners receiving the opportunity to create their own Blundstone design.

Australian Boot Company store. Photo: Australian Boot Company

Blundstone’s future collections will also include options for Canada’s shifting weather patterns. “We’re evolving our range to include more clogs, shoes, and potentially sandals,” Stacey said, helping Blundstone remain relevant across seasons.

Blundstone’s 30-year journey in Canada is a testament to its durability, quality, and loyal customer base. The Australian Boot Company continues to build on these strengths, focusing on customer experience and product longevity. 

Australian Boot Company store on Water Street in Vancouver. Photo: Australian Boot Company

More from Craig Patterson

Columbus Café & Co to kick off 2025 with two high-profile new locations

By
Mario Toneguzzi
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Photo- Think Retail
Photo- Think Retail

France’s favourite coffee shop is winning over the hearts of Canada one mug at time, as Columbus Café & Co announces exciting plans for 2025, which include two marquee locations confirmed to open in Q1 and an additional 20 in the works, confirms Think Retail, the company helping Columbus with its real estate needs.

“With more than 250 “dens” in seven countries, Columbus Café & Co is evolving into a global power brand and Canada is poised to play a key role in the company’s growth strategy. Think Retail is thrilled to work with Columbus Café & Co Canada president Maxime Mayant, and his team and we look forward to ensuring the company reaches its goal of opening 20 locations here in 2025,” said the real estate company on its website.

“The group is preparing to open its 14th and 15th sites and has signed deals to take over a 1,300-sq.-ft. former Starbucks in Mont Tremblant that will open in Q1 2025, as will at 800 sq.-ft. café at Montreal Premium Outlets.”

In addition, expect an announcement soon about a second Toronto location as the brands seeks to expand in high-traffic areas through the GTA.

Photo- Think Retail
Photo- Think Retail

Columbus Café & Co was founded in 1994 and offers premium coffee products and extensive menu-sandwiches, salads and breakfast items, plus an array of quality baked goods and sweet treats-housed in sunny, bright, inviting spaces where customers can grab a quick bite or enjoy a meal with friends, said Think Retail.

“In 2001, the company opened its first café outside of France-in Brussels-and in 2020 made its North American debut on Mont-Royal Avenue in Montreal. In 2023, the brand made its Ontario debut, its first Toronto location, at 283 Adelaide St. W. in the PJ Condos tower,” it said.

“Soon after, Columbus Café & Co announced an exciting deal with Indigo, that involved a multi-unit shop-in-shop roll out. One is now open at Quartier Dix3 in Brossard, Que. and another in the Cambridge Centre in Cambridge, Ont.

Photo- Think Retail
Photo- Think Retail

According to Think Retail, this is just the beginning for the company, as it targets several areas for expansion in Montreal, including:

– Cote des Neiges
– Notre Dame West
– Masson Blvd
– St-Viateur
– Laurier/Papineau
– Vieux Rosemont
– Beaubien
– Rachel/St Michel
– Molson Park
– Downton
– South Shore

“For Columbus Café & Co, ideal spaces are 1,300 to 1,750 sq. ft. and the preference is for corner locations and/or drive thru opportunities along high streets, as well as super regional malls and other busy areas. Kiosks in malls and office towers are also of interest. Cultivating the spirit of the café next door, Columbus Café & Co is the perfect addition to any neighbourhood, attracting customers throughout the dayparts,” according to the real estate company.

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Westcliff acquires Champlain Place shopping centre in New Brunswick

By
Mario Toneguzzi
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Image of Champlain Place (CNW Group/Westcliff Management Ltd)

Westcliff has officially acquired (CF) Champlain Place in Dieppe, New Brunswick from Cadillac Fairview, strengthening Westcliff’s Canadian footprint with this premier retail destination, the company announced in a news release on Thursday.

Nicolas D'Aoust
Nicolas D’Aoust

“Champlain Place perfectly aligns with Westcliff’s strategy, marking our commitment to high-caliber assets in key growth markets,” said Nicolas D’Aoust, Vice President of Westcliff and Head of Leasing. “With impressive sales nearing 800$ per square foot and an outstanding roster of renowned tenants, this property embodies the quality and dynamism we seek to bring into our portfolio.”

As the largest super regional shopping centre in New Brunswick, Champlain Place occupies a central role in Greater Moncton’s retail landscape, said Westcliff.

“This premier location spans 784,372 square feet on a 60-acre site and hosts over 150 stores, including renowned tenants like Walmart, Bass Pro Shops, Cineplex, Sport Chek, H&M, LL Bean, Lululemon, TD Canada Trust and Sobeys (shadow). The centre’s strategic location in one of Canada’s fastest-growing Census Metropolitan Areas (CMA) allows it to serve a broad catchment area of 1.6 million people within a 2.5-hour drive,” it said.

“Surrounded by a diverse array of complementary services – hotels, restaurants, grocery stores, and essential amenities – Champlain Place offers a complete consumer experience while reinforcing the vibrancy and growth of the Greater Moncton area.”

Alan Marcovitz, Westcliff Group’s President and Chairman of the Board, added: “Champlain Place represents more than an addition to our portfolio; it demonstrates Westcliff’s dedication to being part of Canada’s regional communities. We’re thrilled to welcome our new team members, who will become an integral part of our team, ensuring the continued success and impact of Champlain Place on the local economy.”

Champlain Place was previous owned by Cadillac Fairview.

Westcliff is a privately owned real estate development and management company. It has over 50 years of experience in the development, construction, and management of large-scale real estate projects in Canada and the United States.

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HEAD Sportswear names Borys Paterson as Exclusive Canadian Partner

By
Craig Patterson
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Photo: HEAD Sportswear

HEAD Sportswear GmbH has named Borys Paterson as its exclusive Canadian partner, a strategic move to expand its reach in Canada. With an extensive experience in the ski and luxury sportswear industry, Paterson’s expertise promises to support HEAD’s growth and commitment to Canadian consumers.

“Borys’ passion for the sport and his industry expertise makes him a valuable leader for HEAD in Canada,” said Jessica Goodman, Vice President of Sales – North America at HEAD Sportswear. “We are confident that his insights will help drive our brand’s success in this market.”

HEAD Sportswear’s Canadian Expansion Strategy

Paterson’s background includes a Senior Buyer role with Alterra Mountain Company, which operates leading ski resorts across North America such as Deer Valley, Mont Tremblant and Blue Mountain. This experience made him a natural fit to lead HEAD Sportswear’s Canadian market efforts. “I was one of the first North American buyers of HEAD Sportswear back into the Canadian market after nearly 30 years,” Paterson explained, adding that he has worked closely with Goodman, formerly with luxury brands Bogner and Goldbergh, on HEAD’s expansion plans.

Borys Paterson

HEAD Sportswear’s offerings in Canada span four main collections – Performance, Kore, Race and Legacy. The Legacy collection is designed in collaboration with US World Cup skier, Lindsay Vonn.

HEAD Sportswear’s Canadian Retail Partnerships

In Canada, HEAD Sportswear products are sold at specialty and resort stores in locations across the country. This focus on specialty and resort-centered partners helps the brand engage directly with its key audience. According to Paterson, this specialty approach ensures a customer-focused experience, while offering a white glove service that Paterson and Goodman are known for.

HEAD Sportswear’s Canadian growth has been strong, even in challenging seasons. Despite a low-snow season last winter, sales grew in Canada, showing the brand’s resilience and strong customer interest. HEAD’s success also stems from high-profile collaborations, such as its recent partnerships with Gucci and Vogue. The Gucci capsule included both tennis and ski apparel, while the Vogue collection made a Tennis capsule. The brand has been featured at leading events such Wimbledon, and the US open – reinforcing HEAD’s luxury appeal.

Building a Stronger Brand in Canada

Paterson envisions HEAD Sportswear’s growth by tapping into Canadian interest in European-inspired designs with the legendary name. HEAD brings a unique aesthetic to Canada, offering a fresh option alongside other brands like Descente and Spyder.

While HEAD’s global reputation includes tennis and pickleball equipment along with skis, Paterson’s focus in Canada is on sportswear. HEAD’s versatile product range includes accessible options, with ski jackets starting at $400 CAD and reaching $2,000 CAD for premium pieces.

Paterson’s role as HEAD’s exclusive Canadian partner marks an exciting chapter for the brand. With plans to strengthen resort partnerships and connect with specialty stores, HEAD Sportswear aims to make a strong impact on Canada’s sportswear market.

Restaurants Canada urging government to improve affordability

By
Mario Toneguzzi
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Photo- Adrienn
Photo- Adrienn

Less than half of Canadians (43%) believe the federal government is putting enough of a priority on making life more affordable, according to a new public opinion poll conducted by spark*insights on behalf of Restaurants Canada.

In a news release, Restaurants Canada said it is urging the federal government to make a firm commitment to improve affordability by reducing payroll taxes for employees and employers in its upcoming Fall Economic Statement.

Kelly Higginson

“Canadians are struggling with the cost of living and that’s having a knock-on effect on sectors like foodservices, where we’re seeing fewer guests and smaller orders, even in the usually busy summer season,” said Kelly Higginson, President and CEO of Restaurants Canada. “Something has to give and that’s why we’re asking the federal government to relieve some of the pressure on employers and let workers keep more of their paycheques by reducing payroll tax.”

Nearly eight in 10 Canadians (77%) say they would benefit from government reducing payroll taxes, with 42% saying it would have a major positive impact on them and their family, said Restaurants Canada.

“Canadians earning $50,000 a year pay $830 of that in Employment Insurance (EI) while their employer pays an additional $1,162. Provinces also levy their own payroll taxes, reducing take-home pay even further. Restaurants Canada is asking the federal government to provide some immediate relief by introducing a 2% reduction in EI payroll tax,” said the national organization.

Richard Alexander
Richard Alexander

“Workers and employers need a break. Payroll taxes are taking a bigger bite out of Canadians’ take-home pay and are making it more expensive for employers to hire or raise wages. The easiest way to deliver some immediate relief would be to lower EI payroll tax for both employers and employees. This is a straightforward solution that government has employed before and we need to see it again,” concluded Richard Alexander, Executive Vice President, Government Relations and Public Affairs, Restaurants Canada.

The latest TD Credit and Debit Card Spend Report, by Economist Maria Solovieva, indicates weak consumer demand in the third quarter, with Canadians reducing spending and hunting for bargains, particularly on non-essentials.

“While the Bank of Canada has begun an easing cycle, it will take time to see meaningful effects across the economy. The full impact of easing is unlikely to be felt until the first half of 2025, when a rebound in housing activity should lift home-related purchases,” said the report.

A report by RBC Economics, Why Canada is seeing uneven recovery among households, by economist Carrie Freestone, said Canada’s lowest-income earners have always devoted the greatest share of their take-home pay to essentials like shelter, utilities, groceries, and transportation. Those in the bottom 20% of income earners are going into debt to purchase essentials.

“This group had a reprieve during the pandemic when government transfers to households made up for lost earnings. But now, they are back to where they were in 2019 with essentials accounting for 105% of their household disposable income,” said the report.

“Middle-income earners (those in the 40% to 60% of income distribution) have also become exceptionally stretched. In 2023, they devoted the greatest share of their take-home pay to essentials since 1999. They have spent 17% more than their take-home pay in 2024, implying “dis-savings.” That compares to a 9% dis-savings rate in 2019. This group has completely depleted “excess” pandemic savings squeezed by higher mortgage payments and higher costs for essential goods.”

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Scary share of small businesses struggle with low demand: CFIB

By
Mario Toneguzzi
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Photo- Christina Morillo

Over half (53%) of small businesses say insufficient demand is limiting their sales or production growth, finds the October 2024 Monthly Business Barometer® by the Canadian Federation of Independent Business (CFIB).

This indicator has been trending upwards for more than two years and is now well above its historical average of 37%, said the CFIB in a news release.

Simon Gaudreault

“Today feels a bit scary, and not just because it’s Halloween. The last time we saw this many businesses having difficulties with weak demand was in April 2020. While the Bank of Canada has started cutting interest rates, consumers are not displaying any sugar rush yet,” said Simon Gaudreault, CFIB’s chief economist and vice-president of research. “We are soon entering the holiday shopping season, and many retailers will also be hoping for a boost in sales to make up for a year that has been challenging so far.”

Small businesses’ average wage and price increase plans reached 2.7% and 2.5% this month, respectively, said the report.

“The long-term small business confidence index remained unchanged at 55.8 in October. Among the sectors, agriculture (43.5%) and hospitality (51.7) were the least optimistic over the long term. Businesses in retail have been displaying stable levels of optimism over the next 12 months, sitting at 54.6 in October,” said the CFIB.

“Elevated shares of businesses continue to report difficulty with numerous sky-high cost constraints, including wages (71%), insurance (70%), and taxes/regulations (69%). On the bright side, the share of firms grappling with borrowing costs has been trending downward, reaching 36% in October, down from 43% in September.”

Andreea Bourgeois

“It’s nice to see a significant drop in the share of businesses struggling with borrowing costs. While many spooky challenges remain on the costs and demand sides, the Bank’s rate cuts have at least started making financing a bit more accessible,” said Andreea Bourgeois, Director of Economics at CFIB.

The CFIB is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region.

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Skip announces Food Industry Award for women

By
Mario Toneguzzi
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 Skip, Canada’s homegrown delivery network, in partnership with the Women’s Executive Network (WXN), has announced the winners of the inaugural The Food Industry Award presented, by Skip as part of the prestigious Canada’s Most Powerful Women: Top 100™ Awards.

In a news release, Skip said this first-of-its-kind award recognizes women who are driving change in the Canadian food industry, celebrating chefs, restaurateurs and entrepreneurs whose passion, leadership and innovation are shaping the future of food in Canada.

“This award was introduced to spotlight and celebrate the accomplishments of women in the Canadian food sector, which has historically faced challenges in achieving female representation in leadership roles. By honouring these exceptional women, Skip aims to inspire future generations and showcase its commitment to fostering diverse representation in the food industry,” said the company.

Melanie Fatouros-Richardson
Melanie Fatouros-Richardson

“This year’s award winners exemplify everything we envisioned when creating this award — vision, leadership, and an unwavering commitment to their craft and their communities,” said Melanie Fatouros-Richardson, Vice President of Communications and Government Relations at Skip. “We hope their remarkable stories of perseverance and achievement serve as a beacon of inspiration for others, and we’re honoured to celebrate their contributions to the industry and beyond.”

The 2024 winners of the Food Industry Award presented by Skip are:

  • Chef Nuit Regular, Co-owner & Executive Chef of PAI and Kiin: Chef Nuit is one of Canada’s most celebrated Thai chefs, known for bringing authentic Northern Thai cuisine to Toronto through her popular restaurants, including PAI and Kiin. She began her culinary journey in a small town in Northern Thailand, where she ran a humble curry shack, and later left her nursing career to share her passion for Thai food in Canada. “Food is a universal language, and through this recognition, I hope to continue sharing my passion for Thai cuisine with Canadians and inspiring future generations of chefs,” said Regular.
  • Dawn Chapman, Owner of Lazy Daisy’s Café: Inspired by her upbringing on a family farm, Dawn founded Lazy Daisy’s Café in 2011, turning it into a beloved Toronto hub known for its locally sourced, homemade food and welcoming community space. “This award celebrates everyone who has supported Lazy Daisy’s over the years, showing that creating an inclusive, local-focused space resonates with the wider community,” said Chapman.
  • Karissa Pazdor, Owner and Operator of Little Caesars Pizza: A driven entrepreneur from Winnipeg, Karissa owns and operates four Little Caesars franchises across Manitoba. She began her career managing multiple Tim Hortons locations before expanding her own pizza businesses. “Being recognized for my work in such a competitive field is humbling. I hope this award encourages more women to explore entrepreneurship in the food sector,” said Pazdor.
  • Chef Stephanie Baryluk, Sous Chef at Chartwells Canada: A Teetl’it Zheh Chef, Stephanie is dedicated to sharing Indigenous culture through her culinary creations and educational initiatives. She played a pivotal role in developing the Rooted Indigenous Food Program at Simon Fraser University, which received a Gold Award in Diversity, Equity & Inclusion and won the Grand Prize at the NACUFS Sustainability Awards for promoting sustainability in campus dining. “Being recognized alongside such remarkable women is an honour. I hope this award amplifies the voices of Indigenous people and inspires others to celebrate our culinary heritage,” said Baryluk.
Nuit Regular
Nuit Regular
Karissa Pazdor
Karissa Pazdor
Dawn Chapman
Dawn Chapman
Stephanie Baryluk
Stephanie Baryluk

Skip is part of JustEatTakeaway.com, a leading global online food delivery marketplace. Skip connects millions of customers with over 50,000 restaurant partners in Canada, including a growing offering of groceries, retailers, alcohol and convenience stores.

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Staples Canada launches Print Connect

By
Mario Toneguzzi
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Staples Canada in Oakville, Ontario (Image: Staples)

Staples Canada has launched Print Connect, a new, free service designed to meet the diverse printing needs of businesses.

The retailer, in a news release, said Print Connect serves as an exclusive collaboration portal, allowing team members to effortlessly access and print branded materials on demand.

Priscilla Luna
Priscilla Luna

“We’re committed to empowering businesses to thrive,” said Priscilla Luna, Chief Commercial Officer, Staples Canada.

“Our total solution – from design to distribution—streamlines and enhances every step of the printing process, allowing our customers to focus on what truly matters: growing their business.”

The retailer said the concept is designed to simplify printing tasks and strengthen business operations as it offers a secure, all-in-one portal for print-ready file storage and sharing, helping businesses maximize their resources and achieve more. It’s a dedicated space for team members, equipping them with the necessary tools to design, store, share, and print a variety of materials, including banners, business presentations, brochures, signage, business cards, and more with ease, explained Staples.

Print Connect is free with additional tiers for a small monthly fee, according to Staples, which outlined the service below:

Silver
Print Connect Silver is free, making it ideal for small teams to finalize high-quality, print-ready designs efficiently. The silver membership is great for smaller businesses to create branded templates, share files, collaborate and streamline processes. Save up to 100 files and easily create or upload designs, all in one centralized portal.

Gold  
The Gold membership is perfect for medium to large businesses looking for additional features, offering a cost-effective solution at $29.99 per month with a one-time set-up fee. Save and share up to 500 files, create designs, and support teams of up to 100 users. With enhanced support and reporting features, it streamlines template creation and print processes for greater efficiency.

Platinum
For large or more complex organizations that need a fully customized solution, Print Connect Platinum is the ideal plan. Enjoy endless possibilities with a managed, white-glove service account and a variety of options.

The Staples network includes 298 stores across Canada and staples.ca, printing and shipping services at Staples Print, and Staples Studio co-working spaces.

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Canadian Retail News From Around The Web For October 31, 2024

By
Retail Insider
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Canadian Retail News From Around The Web

News at a Glance

Retail Insider is streamlining its Canadian retail news from around the web to include a handful of top news stories that can be viewed quickly during the day. Here are the top stories from the past 48 hours.

Loblaw, Empire call for end to property controls amid Competition Bureau probe (CityNews)

Apparel retailers like Arc’teryx see in-store repair centres as ‘the future’ (Canadian Press)

‘It’s very unaffordable’: Halloween spirits crushed by rising prices of costumes (CTV)

Canada’s grocery industry among most competitive in world: Loblaw head Per Bank (Grocery Business)

Opinion: To improve grocery competition, end all commercial property controls (Globe & Mail)

Brendan Kelly: The heart of N.D.G. won’t be the same without Harvard Stationery (Montreal Gazette)

Costco stores in Ontario get liquor licences, can start sales on Halloween (Global)

What does the future of malls look like in Toronto and the GTA? (CBC)

Quebec music store owners say new language law will hurt business (CBC)

No Name grocery store opens in Brockville, Ont. today: Here’s what you need to know (CTV)

Construction underway on Penticton Canadian Tire expansion (Vernon Morning Star)

Nova Scotia lifts stop-work order at Halifax Walmart where teen’s body found in oven (Global)

2024 Holiday retail trends in Canada

By
Craig Patterson
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Image: Mic Mac Mall

Canadian retailers are preparing for a crucial holiday season, with a projected 2% increase in sales over last year. According to Caila Schwartz, Director of Consumer Insights and Strategy for Retail & Consumer Goods at Salesforce, Canadian online retail sales are expected to reach approximately $14.7 billion (USD) between November and December. This growth reflects broader trends seen in major markets, including the U.S., where a similar 2% increase is anticipated.

The forecast, however, comes with a caveat: inflation is driving Canadian shoppers to be more selective and value-driven. Consumers are trading down to less expensive alternatives and waiting for key sales periods, such as Cyber Week, to make significant purchases. In an interview, Schwartz outlined the key trends that will shape the 2024 holiday season, including the rise of Chinese marketplaces, the increasing importance of AI-powered personalization, and the role of loyalty programs in driving consumer decisions.

Canadian consumers are entering the holiday season with a strong focus on value. “We’re seeing a very strong gravitation toward value,” Schwartz explained. “Consumers are looking for the biggest bang for their dollar, which is influencing where they shop and how they spend.”

Caila Schwartz

This shift toward value is reflected in changing shopping behaviours, with 78% of Canadians reporting that they are trading down—opting for cheaper alternatives to their usual purchases. This focus on value is likely to define the holiday season, with many consumers holding off on large purchases until Cyber Week in hopes of securing the best deals. Schwartz noted that 69% of Canadian shoppers are planning to wait for this highly promotional period before making major purchases.

In addition to value-focused shopping, Chinese e-commerce platforms such as Temu and Shein are gaining traction among Canadian consumers. Salesforce’s research shows that 59% of Canadians have purchased from these platforms in the past six months, and 41% are expected to make at least one purchase from these sites during the holiday season. “These platforms are growing quickly, especially in Western markets,” Schwartz said. The rise of these marketplaces represents a significant challenge for domestic retailers, who must compete with the low prices and broad product offerings of their global competitors.

Image: SHEIN

AI-Powered Personalization to Shape Retail Landscape

Artificial intelligence is poised to play a critical role in shaping the holiday shopping experience. Schwartz highlighted that AI-powered personalization is expected to influence 16% of all online orders in North America during the 2024 holiday season. This includes personalized product recommendations and dynamic pricing, both of which are becoming increasingly common in online retail. “Consumers are leaning into AI,” Schwartz explained. “They’re curious about how AI can enhance their shopping experience, and they’re already starting to see the benefits.”

AI’s ability to offer tailored shopping experiences is particularly valuable in a crowded marketplace, where retailers are vying for consumer attention. Schwartz emphasized that AI can help businesses deliver the right message at the right time, which is critical during key sales periods like Cyber Week.

While larger retailers are leading the way in AI adoption, smaller businesses are also finding ways to leverage AI to compete more effectively.

For retailers that have brick-and-mortar locations, Schwartz pointed out that buy online, pick up in store (BOPIS) will be especially important this holiday season. “We tend to see that after ground shipping cutoffs, retailers offering BOPIS grow five to seven times faster than those that don’t,” she said. This feature is expected to be crucial as the holiday season progresses, particularly in the final days leading up to Christmas.

Salesforce Dreamforce Keynote stage at the Moscone Centre in San Francisco on September 17, 2024. Photo: Craig Patterson

Loyalty Programs to Drive Consumer Behaviour

Loyalty programs are becoming an increasingly important tool for retailers, particularly as inflation continues to shape consumer behaviour. Salesforce’s research indicates that 66% of Canadian consumers are consolidating their purchases around retailers that offer loyalty programs. Schwartz explained that loyalty programs allow consumers to maximize value, which is especially appealing in today’s economic climate.

“Loyalty programs offer a significant competitive advantage,” Schwartz noted. “They allow retailers to collect first-party data, which can then be used to deliver personalized shopping experiences powered by AI.”

Cyber Week to Be a Critical Moment for Retailers

Cyber Week is shaping up to be the most important period of the holiday shopping season, with many consumers waiting for deep discounts before making significant purchases. Schwartz expects Cyber Week to be highly promotional, with retailers offering aggressive discounts to capture consumer attention. However, the condensed holiday timeline—there’s one less week between Cyber Week and Christmas this year—adds an additional layer of complexity.

“Retailers that offer BOPIS will have a distinct advantage,” Schwartz emphasized. “We’re expecting nearly 50% of online orders placed in the last two days before Christmas to be for buy online, pick up in store.” The combination of value-conscious consumers and a shorter holiday period means that retailers will need to be agile and responsive to consumer needs.

Image: Amazon Prime

Amazon Prime Day’s Limited Impact and the Importance of AI for Smaller Retailers

Amazon Prime Day, which took place earlier this month, had a relatively muted impact on Canadian retail, with only 1% growth in online sales over the two-day event. This was a stark contrast to Prime Day in July, which saw much stronger growth. According to Schwartz, many Canadian retailers likely held back on promotions in October, saving their efforts for Cyber Week. However, the “halo effect” of Prime Day, where non-Amazon retailers benefit from increased traffic, was still present.

For smaller retailers, the challenge of competing with larger players like Amazon is significant, but Schwartz believes AI offers a path forward. “AI can help smaller retailers compete more effectively by allowing them to deliver personalized experiences at scale,” she said. By using AI to analyze customer data and provide tailored recommendations, smaller businesses can build stronger relationships with their customers and better meet their needs.

Looking ahead, Schwartz emphasized that the holiday season will be a critical time for Canadian retailers. “It’s going to be an incredibly competitive season, and retailers that listen to their consumers and deliver personalized experiences will be the ones that succeed,” she concluded.

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