DAVIDsTEA, a leading tea merchant in North America, saw increasing sales during its second quarter for the period ended August 3, the company announced on Tuesday.
Key financial highlights include:
Sales of $11.1 million, an increase of 12.8 per cent over the prior year;
Gross profit margin of 47.3 per cent, significantly better compared to 36.9 per cent in prior year;
SG&A expenses of $6.7 million, down 15.2 per cent versus prior year;
Net loss of $1.5 million, improved from loss of $4.3 million in prior year:
Adjusted EBITDA1 of negative $0.3 million versus negative $2.6 million in prior year;
New store opened September 5 in Montreal’s Royalmount Mall; and
Additional store opening in the Montreal Eaton Centre expected in early November
Image: Sarah Segal
“We are pleased to report that DAVIDsTEA reached a key inflection point in the second quarter of 2024 with sales increasing by 12.8 per cent year-over-year,” said Sarah Segal, Chief Executive Officer and Chief Brand Officer, DAVIDsTEA. “We are grateful for the trust of our loyal consumers who seek out the best flavour profiles available on the market as we continue to innovate and introduce new and incredible tasting tea blends for consumers to enjoy.
“Sales momentum continues into the early third quarter with revenues up more than 18 per cent compared to the same period in 2023. We are excited to mark our renewed focus on brick-and-mortar retail with the opening of a new location in the Royalmount Mall in Mount Royal, Quebec, and look forward to launching a new store in downtown Montreal in early November, raising the total number of flagship stores to 20. As we prepare for the revenue-intensive third and fourth quarters, our focus remains on delivering excellent value, service and innovation to our consumers.”
“Revenues are up and costs are down, both year-over-year and sequentially, across all categories. We also have significant leverage in our business model, which positions us well for the second half of the year as we stabilize the business against unfavourable headwinds and double down on investments in both our brick-and-mortar and online operations,” he said.
DAVIDsTEA offers a specialty branded selection of high-quality proprietary loose-leaf teas, pre-packaged teas, tea sachets, tea-related accessories and gifts through its e-commerce platform and the Amazon Marketplace, its wholesale customers which include over 4,000 grocery stores and pharmacies, over 1,500 convenience stores in Canada and 170 grocery stores in the United States, as well as 19 company-owned stores across Canada.
OBSESSIONS was originally founded in 1988 in the trendy area of Earls Court, London England. A small boutique store offering a unique selection of personal and home accessories.
The Vancouver store was founded in February 1998 by Mark Kenna, who arrived in Canada from England with a dream of introducing distinctive gift products to Vancouver and OBSESSIONS quickly made its mark.
Starting with a modest kiosk selling funky watches, men’s and ladies accessories, the kiosk success led to the expansion of two additional kiosks within three months. By June 1998, OBSESSIONS opened its first full-fledged store on Denman Street, and by 2006, it had grown to four locations throughout downtown Vancouver.
Often voted ‘Vancouver’s Best Gift Shop’ now a beloved icon in the heart of Vancouver, it is celebrating its 25th anniversary this year.
Photo courtesy of OBSESSIONS
“We are incredibly grateful to our loyal customers and dedicated team who have supported us throughout the years,” said Kenna. “Reaching this 25-year milestone is a testament to our commitment to providing a unique shopping experience and our passion for sourcing unique, quality and affordable products. We look forward to continuing to serve our community and welcoming both new and returning customers to experience what makes Obsessions truly special.
Since its inception, OBSESSIONS has evolved from a small kiosk at Pacific Centre Mall into one of the city’s most recognized and award-winning gift stores, establishing itself as a premier destination for unique, affordable and high-quality gifts.
Photo courtesy of OBSESSIONS
The company was an instant success when it first started in Vancouver, growing from one small kiosk in Pacific Centre Mall, downtown Vancouver to four street locations within five years plus a vibrant ‘Corporate Gift Division’ plus an online website.
“Unfortunately the company was hit hard by the world wide recession some years ago and an unforeseen government construction project outside one of the company’s stores which inhibited consumer access both led to the company being downsized then subsequently being purchased by a new business partner with the co-operation of Mark Kenna who still manages and purchases the stores gift items,” says the company on its website.
“Despite the company’s ups and downs, this store is considered one of Vancouver’s premier gift stores often winning annual awards for ‘Best Gift Shop’. The company has one prime location in the centre of town on the corner of Dunsmuir and Howe Street, and is comfortable with no intention of expanding except for a new website with the ability to buy online. The ‘Corporate Sales Division’ continues to also thrive and increase annually. Providing first class customer service to its many loyal shoppers and greeting many new ones each day and each season as the tourists come and go…after 28 years in business this robust, hardy and unique company intends to be around for many more years to come.”
Today, it operates from its prime location at the corner of Dunsmuir and Howe Street, continuing to offer a curated selection of exceptional gifts plus design-led personal and home accessories. Also known for its engraving facility, with fast turnaround times—often as little as 24 hours—it boasts no minimum order requirements, setting it apart from many competitors.
OBSESSIONS offers an exclusive selection of pens and art supplies by the Swiss manufacturer ‘Caran d’Ache’, also the Swiss made line of watches ‘Mondaine’ and the hugely popular line of plushies by ‘Jellycat’ from the UK. It also supports many Canadian designers such as Pixie Mood and Matt and Nat bags and wallets plus much, much more including a fantastic collection of cards and gift wrap. Whether it be Christmas, Valentines, Mothers Day etc. OBSESSIONS is ‘the ’ go-to’ destination for gifts for every occasion. In recognition of its outstanding service and unique offerings, OBSESSIONS has repeatedly been awarded ‘Best Gift Shop’ in annual city-wide awards. Despite its success, the company remains committed to its core location and high-quality, personalized service, with plans to enhance its online presence through a new website, allowing ‘Corporate’ customers to shop from anywhere.
“We’re located in the downtown core so we have the office workers during the week but we’re also close to the cruise ships and we have a big tourist customer,” added Kenna, saying the tourism industry has returned.
“We were lucky. After we got through COVID that was a struggle and a lot of our bread and butter wasn’t there. A lot of people were working from home. It was a slow turnaround. Like most businesses, we were sort of on our knees basically just trying to get through it. Fortunately after we came out of the COVID we saw that weather was mild and we found more Canadians traveling locally or from other provinces. And there was a lot of drive to support local businesses. Now we’re seeing more international people coming to us as well.”
OBSESSIONS has a special ‘25th Anniversary’ event until September 29. Expect to see special offers all around the store, multiple daily prize draw give aways from gifts donated from all our loyal suppliers over the past 25 years plus a massive draw at the end of the event for a prize price worth more than $1,000.
Q2 2024 average asking rents across Toronto’s 11 retail corridors decreased by 2.2 per cent to $91.58 net per square foot;
The number of direct ground floor availabilities totaled 109, or 8.26 per cent of the storefronts in the corridors tracked by JLL; and
Ossington Avenue, Leslieville and Queen Street West (Spadina to Bathurst) remain Toronto’s tightest submarkets.
“Torontonians have significantly adjusted their spending habits, prioritizing essential expenses such as housing, rent, and food. Discretionary categories, including previously strong performing sectors like home improvement and furnishings, footwear, sporting goods, and cannabis, have faltered,” said the JLL report.
“Notably, laptops and cell phones have emerged as resilient segments. Despite challenges in retail, Toronto’s real estate market has demonstrated its resilience and remarkable recovery. Downtown office worker attendance has consistently increased, with Wednesdays witnessing an impressive return to nearly 80 per cent of pre-pandemic levels. Local transit and regional commuter rail have witnessed a commendable resurgence, reaching 78 per cent of pre-pandemic ridership.
“Toronto’s tourism industry is also showing promising signs of revival, outpacing 2019 spending figures, particularly with the return of international visitors. Furthermore, the downtown core has become an attractive investment hotspot, fueled by the resurgence of office workers and the revival of tourism.”
The report said the recent opening of three exciting food halls, Queen’s Cross at the Eaton Centre, Wellington Market at The Well, and Waterworks at 50 Brant Street, has added to the vibrant culinary landscape, catering to both Torontonians and visitors.
“Despite sector-specific challenges, the Toronto real estate market is displaying positive recovery and adaptive characteristics. The increasing presence of office workers, strong public transit ridership, robust investments in the downtown core, and the gradual revival of tourism collectively contribute to the ongoing recovery of the city’s real estate market,” added the report.
In total, 24 new leases were transacted in Q2 2024 totaling over 41,000 square feet. The two most active submarkets by number of lease transactions completed were Queen Street West (Spadina to Bathurst) with eight and Yonge Street (Eglinton to Blythwood) with five, explained JLL.
The largest lease of Q2 2024 was signed by a medical clinic who leased over 4,600 square feet at 11 Yorkville Avenue at the base of Riocan, Capital Developments and Metropia’s new 11YV development, it added.
“Queen Street West (Spadina to Bathurst) saw the greatest number of square feet leased at 12,365 square feet with Yonge Street (Eglinton to Blythwood) in second position at 6,929 square feet. Once again, food & beverage (F&B) was the leading category in terms of number of new retail transactions (12) as well as total square footage leased at nearly 22,000 square feet,” said the report.
“Notable transactions include Alpha’s Shawarma securing approximately 3,000 square feet at 245 Yonge Street and Poulet Rouge leasing nearly 2,700 square feet at 360 Queen Street West.
“The average availability rate for the 11 retail corridors tracked by JLL decreased to 8.26 per cent, the lowest figure since the inception of this report. King Street West (Spadina to Bathurst) had the highest percentage of available retail space at 18.42 per cent, while Ossington Avenue (Queen to Dundas) had no availability as of June 30, 2024.
“Average Asking Rents across Toronto’s 11 retail corridors decreased to $91.58 per square foot, led by Bloor Street at $219.92 per square foot and followed by Yorkville Avenue (Yonge to Avenue) and Queen Street West (John to Spadina) at $102.50 and $90.50 per square foot, respectively at $107.50 and $100.57 per square foot, respectively.”
The retail industry is undergoing financial stress, according to Equifax Canada’s Q2 Business Credit Trends Report, which reveals an uptick in businesses missing credit payments.
The report said the retail sector is experiencing a rise in payment arrears especially in financial trade delinquencies, where the 60+ day delinquency rate has risen from 3.7 per cent in Q2 2023 to 4.2 per cent in Q2 2024.
“The slowdown in consumer credit card spending and increased missed credit payments may have a direct impact on retail businesses as we enter the holiday season. Meanwhile, businesses in the retail sector are pushing holiday promotions even earlier in the year, potentially reflecting a growing reliance on the holiday season to boost revenues. However, the retail sector could continue to face high delinquency rates as inflation and unemployment impact household budgets,” added Equifax.
According to the data from Equifax, over 56,000 businesses missed at least one financial trade in Q2 2024, up 10.2 per cent from the same period in 2023.
At a trade level, the 60+ day (volume) financial trade delinquency rate went up from 2.8 per cent to 3.1 per cent in the last 12 months, driven largely by installment loans. Businesses that rushed to take installment loans to pay off their Canada Emergency Business Account loans before the deadline, coupled with elevated interest rates, may be contributing to this rise in loan arrears. The delinquency rate for industrial trades saw a similar rise from 5.1 per cent in Q2 2023 to 5.7 per cent in Q2 2024. Data also indicates that businesses that opened in the last 24 months are starting to miss more payments, though still at lower levels than the national average, said the report.
Jeff Brown
“As we analyze the current landscape, while business insolvencies are stabilizing, delinquency rates continue to rise across the board. Sectors like retail and construction could be feeling the pressure as consumer spending weakens and uncertainty remains high for many Canadian businesses,” said Jeff Brown, Head of Commercial Solutions for Equifax Canada. “The economic impact of natural disasters, inflation, and fluctuating interest rates have created a challenging environment for businesses to navigate.
“As we head into the holiday season, businesses are preparing for one of the most crucial periods of the year, but many are entering it from a weakened position. There is still a lot of uncertainty in the market, and businesses are being very prudent with their financial planning.”
The report said the gradual lowering of interest rates may provide the economic boost many businesses have been hoping for. While interest rates have been lowered in response to the lull in economic activity, the conservative pace of these reductions may have left businesses and consumers hesitant to make significant investments.
SecondShop CEO and Founder Cedric George (CNW Group/SecondShop)
SecondShop has launched an e-commerce platform, aimed at providing high-quality, like-new discount home goods in Canada. It has also announced it has secured $2 million in seed financing, led by Harvest Venture Partners with participation from leading angel investors in the space.
Cedric George
“In a time when the cost of living continues to rise, SecondShop is committed to helping Canadians maintain their standard of living without additional financial strain,” said Cedric George, CEO and Founder of SecondShop. “We’re not just another discount e-commerce site; we provide a complete solution — from easy online ordering of name-brand products to direct home deliveries — eliminating the need for customers to navigate the often cumbersome process of liquidation auctions and warehouse pickups.
“We’re excited to raise the bar and transform the re-commerce space. Our goal is to help Canadians feel good about their purchases — to feel good about their savings and their positive impact on the world. With SecondShop, quality and savings do go hand in hand.”
With the price of goods remaining high and borrowing costs putting pressure on consumers, Canadians are increasingly seeking cost-effective shopping options, said the company in a news release. SecondShop said it addresses this need by leveraging reverse logistics to breathe new life into over 45 million annually returned goods, offering essential products at up to 70 per cent off the manufacturer’s suggested retail price.
Alex Gold
“Our investment in SecondShop is based on our belief that re-commerce represents a new category where vertical integration between software and services is key,” said Alex Gold, General Partner at Harvest Venture Partners. “Similar to our work with Neo Financial, OneVest, Walnut Insurance, and other category leaders, we’re excited to partner with Cedric George and the SecondShop team to transform this growing space.”
SecondShop is a nationally distributed, Toronto-based online re-commerce platform that offers overstock and open-box home goods directly from retailers and manufacturers at reduced prices, promoting sustainability and accessibility in consumer goods.
Shepherd's Home Hardware Building Centre Dealer-Owners and Home Hardware Stores Limited at the Proud of My Home Achievement Awards. (CNW Group/Home Hardware Stores Limited)
Home Hardware Stores Limited, Canada’s largest dealer-owned hardware, lumber, building materials, and furniture home improvement retailer, recently recognized outstanding achievements within its network.
Home Hardware Award Winners Shine at Annual Ceremony
On September 12, Home Hardware Stores Limited honored 18 exceptional stores during its Proud of My Home Achievement Awards. This prestigious event, part of the company’s annual Homecoming buying event and recognition ceremony, showcased the best in Canadian retail excellence.
Shepherd’s Home Hardware Building Centre in Armstrong, B.C., claimed the top honor, receiving the Walter J. Hachborn Store of the Year Award. Dealer-Owners Kyle and Brett Melvin accepted this distinguished recognition, which celebrates their commitment to Home Hardware’s founding principles of value, service, and dependability.
“We’re honored to receive these awards as we approach our store’s centennial celebration in Armstrong,” said Kyle Melvin. “As second-generation owners, Brett and I are proud of our role in the store’s rich history. We share this recognition with our parents, Sandy and Dale Melvin, who laid the foundation for our success.”
A Testament to Excellence
The Walter J. Hachborn Store of the Year Award, named after Home Hardware’s co-founder, recognizes the top performer among more than 1,000 stores across Canada. It honors excellence in retailing, merchandising, staff performance, and overall quality and service.
Kevin Macnab, President and CEO of Home Hardware Stores Limited, praised the Melvin brothers’ achievements: “Kyle, Brett, and their team truly embody the spirit of this award. Their commitment to treating customers like family and providing unparalleled service makes them outstanding ambassadors for the Home brand.”
The Proud of My Home Achievement Awards celebrated excellence across various categories, including:
Paul Straus Public Relations Award
Best Home Furniture
Best Young Retailer (in four regions)
Best Home Hardware (in four regions)
Best Home Building Centre (in four regions)
Best Home Hardware Building Centre (in four regions)
These accolades recognize superior customer service, excellence in store presentation, and active participation in Dealer network initiatives.
As Home Hardware continues to evolve in the competitive Canadian retail landscape, these award-winning stores serve as beacons of excellence. They demonstrate the power of local ownership combined with the support of a national brand, setting new standards for customer service and community engagement in the home improvement sector.
Healthy Planet, Canada’s largest health and wellness e-commerce website and one of Canada’s largest health and wellness store chains, is opening a new 18,000-square-foot store in London, Ontario. The new location, at 3325 Wonderland Road South, will officially open its doors to the public on October 4.
In a news release, the company said the new store will offer the London South West community a wide range of products, including fresh organic produce, premium quality meat, natural beauty products, vitamins and supplements. With its commitment to providing high-quality, affordable, and natural health products, Healthy Planet said it has established itself as the go-to destination for health-conscious shoppers across Canada.
Muhammed Mohamedy
“We are thrilled to bring our Healthy Planet experience to the London South West community,” said Muhammed Mohamedy, General Manager of Healthy Planet. “This new store represents our continued commitment to offering fresh, organic produce, top-quality vitamins, and eco-conscious products in a one-stop-shop environment.
The store will also offer a wide selection of vegan and gluten-free options, catering to a diverse range of dietary preferences and lifestyles.
“We believe in making health and wellness accessible for everyone, and we are excited to serve the people of London with our extensive range of natural health solutions,” said Mohamedy.
Healthy Planet is a health and wellness store with 35 locations and growing in Ontario.
Canada’s path to an electric future just got a major boost.
JOLT, the global leader in free, fast, and clean EV charging, kicked off a nationwide initiative to electrify the country, starting with the first installation in the City of Richmond Hill, part of the Greater Toronto Area (GTA).
Richmond Hill represents the first municipality in the Greater Toronto Area (GTA) to offer the first 7kWh free-of-charge to EV drivers in the community and supports the federal government’s ambitious goal of installing 200,000 public EV chargers by 2030, said the company in a news release.
JOLT’s debut in Richmond Hill brings a game-changing service to the community: free EV charging that’s as fast as it is green. Every JOLT station provides 7 kWh of daily energy for free through the JOLT app, delivering 40-50 kilometres of range in just 15-20 minutes depending on the vehicle – enough time to grab a coffee, do some shopping, and get back on the road. This convenience translates to over $1,100 in annual savings for Canadian drivers, making EV ownership not just a smart choice, but an easy one, explained the company.
Brendan Dhillon
“JOLT is all about making EV ownership accessible, affordable, and seamless,” said Brendan Dillon, Country Manager, JOLT Canada. “Our state of the art chargers run on renewable energy. With our launch in Richmond Hill, we’re not just installing chargers—we’re supercharging communities, driving local economies, and accelerating electrification for cities.
“As more Canadians switch to EVs, our mission is to eliminate the barriers that would otherwise hold them back. With the support of forward-thinking partners like the City of Richmond Hill, we’re delivering infrastructure solutions that make the EV transition not just possible, but inevitable.”
These new charging stations in Richmond Hill are just the beginning, said JOLT, adding it plans to install up to 5,000 public DC fast chargers across Canada, with an integrated Digital Out-of-Home advertising network, which funds the free charging allocation. This platform allows municipalities and brand marketers to connect with the highly engaged communities in sustainable and creative ways.
Originating in Australia, JOLT has already made its mark as the largest free EV charging network across Australia, New Zealand, and the UK. Now, with its expansion into Canada, JOLT said it is poised to reshape the EV landscape across the country, ensuring that charging is accessible, equitable, and seamlessly integrated into daily routines.
Following the success of their most recent new location opening in Whitby, the Charcoal Group has announced that Beertown Public House is bringing its signature blend of great food, craft beer, and unforgettable hospitality to London South in White Oaks Mall.
The new location will soon become the 12th Beertown.
The company said construction is officially underway. The new Beertown location will feature a spacious dining room and an inviting outdoor patio, providing a vibrant setting for craft beer enthusiasts, food lovers, and anyone looking for a great time out.
Jody Palubiski
“We’re thrilled to bring Beertown to London South to better servue the London community which has bee so good to us over the years,” said Jody Palubiski, partner at Charcoal Group. “This new location represents an exciting chapter for us as we continue to grow and share our love for craft beer and outstanding food across Ontario.”
To gear up for the opening, Beertown is hosting a job fair from October 1-5 from 10 am to 6 pm. The event will take place in the White Oaks Mall unit directly across the hall from Beertown’s future home. Positions available include:
Sous Chef (x2)
Chef de Partie
Line & Prep Cooks
Dishwashers
Hosts
Servers
Bartenders
FOH Supervisors
“We believe in hiring a team that shares our passion for creating a memorable dining experience,” added Palubiski. “If you’re looking for a dynamic and welcoming workplace, we’d love to meet you at our job fair.”
“From day one, Beertown aims to be more than just another restaurant in London. With seating capacity to accommodate large groups or intimate gatherings, guests can enjoy an extensive drink menu featuring local craft beer collaborations, non-alcoholic options, unique cocktails, and wines, ensuring there’s something for everyone. Don’t let the name fool you; Beertown’s diverse menu also boasts an array of plant-based and gluten-friendly dishes, continuing the Charcoal Group’s commitment to providing exceptional food experiences to all guests,” said the company in a news release.
“Beertown — with its durable ‘modern beer bar’ concept was born out of many ‘research trips’ to the NYC boroughs of Manhattan and Brooklyn just after the 2009 recession. It’s no surprise with the scratch-made cuisine, and by riding the wave of craft-beer popularity, the team continues to welcome guests and looks forward to entering the London area as they officially cut their 12th ribbon this summer.”
Charcoal Group is an inspired group of full-service restaurants located across in Southern Ontario with over 65 years in the hospitality industry. Its restaurants include Solé Uptown, The Charcoal Steakhouse, Martini’s, Dels Italian Kitchen, Wildcraft Grill & Long Bar, The Bauer Kitchen, The Bauer Bakery & Café, Moose Winooski’s, Beertown Public House, and Sociable Kitchen & Tavern.
Keeping up with the cost of doing business (90 per cent), the current economic situation (76 per cent) and the high tax burden (73 per cent) were the top reasons business owners would advise against starting a business, it said.
As Parliament reconvenes this week, CFIB is urging government to address rising business costs.
Corinne Pohlmann
“Small businesses are still facing hardships that are impacting their ability to operate and invest, which in turn impact Canada’s economy and productivity. On top of that, there’s been no update from Ottawa on carbon tax rebates and when small businesses can expect them,” said Corinne Pohlmann, Executive Vice-President of Advocacy at CFIB. “Parliament needs to consider the unique needs of small business if they want to improve the current economic climate.”
The CFIB said small businesses are looking to the federal government to lower taxes and red tape, particularly as over half (59 per cent) of business owners report struggling with taxes and operational costs (51 per cent). For example, more than 830,000 small businesses would benefit from a reduction of the small business tax rate to eight per cent from nine per cent. That means $610 million would stay in small businesses’ pockets, said the national organization.
“Nearly three-quarters (74 per cent) of small businesses want to see government reduce the overall tax burden, while another 77 per cent say addressing rising prices and the cost of doing business should be a top priority for government. If governments reduced the overall burden of taxes and fees, around half (56 per cent) of business owners said they would use the savings to increase employee compensation, pay down their business debt (54 per cent) and expand their business (46 per cent),” added the CFIB.
To support small businesses, CFIB recommends Ottawa:
Lower Employment Insurance premiums for smaller employers and increase the Canada Pension Plan Basic Exemption Amount.
Eliminate the carbon tax.
Reconsider capital gains changes by scrapping or repealing the planned increase in the general inclusion rate to 66.7 per cent.
Increase the small business deduction threshold to $700,000 and the passive income amount to $60,000 and index those thresholds to inflation going forward.
Lower the federal small business tax rate from nine per cent to eight per cent, at least for the next two years.
Eliminate the automatic escalator on alcohol excise duty rates.
Reduce red tape on small businesses.
Christina Santini
“Instead of giving away billions to large foreign multinationals, the government should lower taxes on small businesses, level the playing field and reduce red tape. The recommendations we propose would help hundreds of thousands of Canadian small- and medium-sized businesses face current challenges,” said Christina Santini, CFIB’s director of national affairs.
CFIB’s petitioncalling on the federal government to reduce the cost of doing business has garnered nearly 20,000 signatures since the start of 2024 and counting.
