Summer Slump: Canadian Retail Sales Decline in June [J.C. Williams Group Analysis]

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August 23, 2024

Photo taken from Dundas and Yonge streets south to CF Toronto Eaton Centre. Photo: Dustin Fuhs

Canadian retail sales dropped in June 2024 with All Stores experiencing a decline of -3.0% YOY, and discretionary categories (All Stores Less Automotive, Food, and Pharmacies) down -1.4% YOY. This downturn reflects the ongoing challenges in the retail sector, as consumers continue to grapple with economic uncertainties and changing spending habits.

June witnessed a notable decline in retail sales across Canada, particularly in British Columbia and Alberta. This downturn could be attributed to the wildfires that ravaged these regions, disrupting normal business activities and consumer behavior. Furthermore, the country experienced its weakest two consecutive retail sales quarters since the onset of the pandemic, signaling potential economic headwinds or shifts in consumer spending patterns.

E-commerce sales also faced a downturn in June. Several factors contributed to this decline:

Prime Day Anticipation: Many consumers held off on making large purchases, waiting for potential deals during Amazon’s Prime Day in July.
Expectations of a July Rate Drop: With the anticipation of a possible interest rate drop in July, consumers likely delayed significant spending, hoping for better financial conditions.

In the realm of General Merchandise Stores (up 3.2% YOY), notable players like Walmart and Costco have become significant grocery retailers in Canada. Walmart’s inclusion in this category highlights its dual role as both a general merchandise and a major grocery provider. Similarly, Costco’s reporting in this category underscores its substantial influence in the grocery sector. These giants continue to shape the landscape of general merchandise and grocery retailing in the country.

The Beer, Wine, and Liquor Stores category presented some intriguing trends:

Unexpected Decline: Despite rumors of an impending LCBO (Liquor Control Board of Ontario) strike, sales in this category were down. This was surprising given the potential stockpiling behavior that such rumors might typically incite.
Shift Towards Sober Options: The ongoing trend of consumers opting for sober alternatives continued, contributing to the overall decline in alcohol sales. However, there was a slight month-over-month increase compared to May, indicating some seasonal or situational fluctuations.
In addition to alcohol, Cannabis sales also experienced a downturn, with a -6.7% YOY decrease. This decline suggests that the market may have reached its saturation point. Additionally, there was a slight decrease in the number of cannabis stores in Canada, with 26 fewer stores in June 2024 compared to March 2024. This reduction in retail outlets could be a response to the market’s stabilization or a strategic consolidation by businesses in the sector.

As we move closer to the end of the 2024, and with so many imminent changes in the Canadian (especially Ontario) marketplace, JCWG is thinking about:

Will the LCBO, Beer Store, The Wine Shop, and similar retailers experience a significant decline in sales as alcohol becomes more widely available in convenience stores and additional grocery outlets?
In light of reduced consumer spending, is Loblaw’s new “No Name” concept poised to achieve immediate success?
How significantly will economic pressures influence parents’ spending on back-to-school shopping this year?
When can we expect the onset of holiday promotions this year, particularly for Halloween and Black Friday?
How are YOU preparing your holiday strategy?

Canadian Retail Sales by Product Category, Same Month Comparison

Sales for the Month of June	Jun-24	Jun-23	YOY
All Stores	68,724,622	70,863,412	-3.02%
Motor Vehicle and Parts Dealers	18,571,819	20,358,699	-8.78%
Gasoline Stations	6,713,505	6,647,884	0.99%
All Stores Less Automotive	43,439,298	43,856,829	-0.95%
Food and Beverage Stores	13,334,168	13,466,980	-0.99%
Supermarkets and Other Grocery Stores*	9,307,456	9,282,809	0.27%
Convenience Stores	764,762	811,853	-5.80%
Specialty Food Stores	949,700	941,058	0.92%
Beer, Wine and Liquor Stores	2,312,250	2,431,260	-4.89%
Health and Personal Care Stores	5,420,071	5,358,022	1.16%
All Stores Less Automotive, Food, and Pharmacies	24,685,059	25,031,827	-1.39%
General Merchandise Stores	9,308,004	9,024,155	3.15%
Furniture, Home Furnishings, Electronic and Appliance Stores	3,385,018	3,521,032	-3.86%
Furniture Stores	1,169,137	1,230,006	-4.95%
Home Furnishings Stores	664,032	692,400	-4.10%
Electronics and Appliance Stores	1,551,849	1,598,625	-2.93%
Clothing and Accessories Stores	3,494,275	3,511,642	-0.49%
Clothing Stores	2,726,480	2,701,308	0.93%
Shoe Stores	407,516	429,341	-5.08%
Jewellery, Luggage and Leather Goods Stores	360,279	380,994	-5.44%
Sporting Goods, Hobby, Book and Music Stores	3,822,062	4,052,630	-5.69%
Building Material and Garden Equipment	4,675,700	4,922,367	-5.01%
Miscellaneous Store Retailers	2,499,141	2,700,678	-7.46%
Cannabis Retailers	405,712	434,548	-6.64%

Canadian Ecommerce Sales

Ecommerce Sales	Jun-24	Jun-23	Percent Change
Year-to-Date	21,955,382	20,975,396	4.67%
Year-Over-Year	3,797,244	3,833,102	-0.94%

Canadian Retail Sales by Store Category, Year to Date Comparison

Year-to-Date, Ending June	Jun-24	Jun-23	YTD
All Stores	384,665,484	381,549,991	0.82%
Motor Vehicle and Parts Dealers	106,567,480	106,453,638	0.11%
Gasoline Stations	38,017,724	38,207,804	-0.50%
All Stores Less Automotive	240,080,280	236,888,549	1.35%
Food and Beverage Stores	74,625,370	73,748,625	1.19%
Supermarkets and Other Grocery Stores*	53,596,197	52,417,414	2.25%
Convenience Stores	4,201,305	4,316,859	-2.68%
Specialty Food Stores	5,030,972	4,803,653	4.73%
Beer, Wine and Liquor Stores	11,796,897	12,210,697	-3.39%
Health and Personal Care Stores	32,685,863	31,018,514	5.38%
All Stores Less Automotive, Food, and Pharmacies	132,769,047	132,121,410	0.49%
General Merchandise Stores	51,084,551	48,665,900	4.97%
Furniture, Home Furnishings, Electronic and Appliance Stores	20,045,440	20,201,490	-0.77%
Furniture Stores	6,612,924	6,727,719	-1.71%
Home Furnishings Stores	3,930,909	4,157,421	-5.45%
Electronics and Appliance Stores	9,501,608	9,316,347	1.99%
Clothing and Accessories Stores	18,269,514	18,530,437	-1.41%
Clothing Stores	14,119,726	14,278,110	-1.11%
Shoe Stores	2,139,606	2,194,489	-2.50%
Jewellery, Luggage and Leather Goods Stores	2,010,181	2,057,837	-2.32%
Sporting Goods, Hobby, Book and Music Stores	20,850,819	21,879,892	-4.70%
Building Material and Garden Equipment	22,518,721	22,843,690	-1.42%
Miscellaneous Store Retailers	13,554,541	14,382,795	-5.76%
Cannabis Retailers	2,446,302	2,458,582	-0.50%

Retail Trade, Canada, All Stores, by Geographic Regions

Region	Year-to-Date 2024	Year-to-Date 2023	YTD
British Columbia	51,786,993	51,895,612	-0.21%
Vancouver	25,991,324	25,598,683	1.53%
Alberta	49,686,159	50,054,395	-0.74%
Prairies*	25,546,077	25,164,055	1.52%
Ontario	143,848,851	142,460,937	0.97%
Toronto	65,012,986	65,179,144	-0.25%
Québec	86,175,882	85,244,647	1.09%
Montréal	42,906,820	42,646,766	0.61%
Atlantic Canada	26,235,967	25,419,275	3.21%
Territories	1,385,558	1,311,069	5.68%

Empty Retail Spaces Transform into Entertainment Hubs as Shopping Centers Evolve: Avison Young

By

Retail Insider

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August 23, 2024

Indoor karting — Photo courtesy of Avison Young

Driven by dramatic shifts in the retail sector, many retail locations across Europe and North America face vacancies left by the closure of mainstream retailers, including department stores, which historically served as major anchor tenants.

In the UK alone, 85 per cent of department stores have closed over the last decade, and with many located in shopping centres, this was causing headaches for landlords struggling to fill these large spaces.

But in the era of omnichannel and a strong consumer desire for experience-based retail and entertainment, some of these empty spaces have created opportunities for landlords to diversify their retail offering by attracting modern and innovative replacement concepts into these spaces that drive shopper footfall, engagement, dwell time, and sales.

The power of play in shopping centres

A broad array of leisure and entertainment attractions, food and beverage, and fitness concepts are being incorporated into shopping centres and retail districts to provide unique experiences. From upscale pickleball and trampoline parks to functional fitness and wellness, these new and emerging concepts are creating social and community-centric gathering spaces centered around recreation, and playful experiences that transcend traditionally conforming gyms.

The Bouldering Project, for example, is more than a climbing experience, offering rotating configurations, fitness classes, weights and cardio, yoga, youth teams, camps, and parties that cater to novices and professionals alike. Ranging from 20,000 – 50,000 square feet, these locations serve as a community hub and have even revitalized American historic areas such as The Granary District in Salt Lake City, Utah.

In the UK, global leisure operator, Gravity, has occupied two former Debenhams department stores in prime shopping centres in London and Liverpool converting them into large entertainment venues which include go-karting tracks, AR bowling, and virtual darts. Since opening in London in 2021, the venue has driven a 25 per cent increase in footfall within the shopping centre, highlighting the benefit of having leisure-based tenants within a predominantly retail-based location.

At Stonestown Galleria in San Francisco, California, Round One Entertainment has announced it will open a 49,000 square foot venue in 2024 featuring bowling, billiards, ping pong, karaoke, and arcade games on the lower level of the former Nordstrom store. Meanwhile, in Toronto, Canada a former Nordstrom at One Bloor has been leased to luxury wellness and social club AVANT by Altea Active and plans to open the facility in 2025.

Whilst food and beverage operators have always been present in shopping centres, the offering has evolved over the last decade with many prime centres now anchored by a range of eateries, from food-on-the-go (fast food or higher-end quick service restaurants) to fine dining.

At The Well, a new mixed-use scheme in Toronto, Oliver and Bonacini Hospitality has recently opened three high-end restaurants across 70,000 square feet, a steakhouse and two concepts focussing on French and British cuisine. In Lyon, France, Unibail-Rodamco-Westfield redeveloped La Part-Dieu shopping centre, one of the biggest urban shopping centres in France, to provide a new shopping and leisure experience for visitors. The newly added Rooftop is home to a 43,000 square foot dining centre, 75,000 square feet of hanging gardens where visitors can walk around, a 7,500 square foot climbing facility, and an 18-screen cinema complex.

Technology is reshaping retail

Technology is enhancing the retail experience and changing the way consumers interact with physical and digital worlds and allowing new concepts to redefine the way shoppers experience product, content, and media.

Cosm is one example of the future of immersive entertainment expanding the realm of what’s possible in entertainment using Cosm’s proprietary domed and compound curve LED screen technology. Cosm will feature cutting-edge visuals in rotating films, live sports and entertainment, art, and music including a partnership with Cirque du Soleil. They will also offer educational events including planetariums, aquariums, and wilderness exhibitions. Merchandise, content partnerships, and an elevated food and beverage program complete the overall customer experience. The first two permanent US Cosm locations are expected to open in 2024 at Grandscape at The Colony in Dallas, Texas and at Hollywood Park in Inglewood, California, adjacent to SoFi Stadium. The venues are approximately 65,000 square feet and can hold up to 1,700 guests.

Another example is Ballerz, an immersive 500-person capacity football (soccer) dome opening at Bluewater Shopping Centre, in Kent which claims to be the UK’s most immersive competitive socializing space. It will feature an interactive skillzone, a football pitch with stadium-style seating, a players’ tunnel, pro changing rooms, and real-time pitch technology with big screen action replays on the sidelines.

“Experience and discovery are the drivers of change for modern retail and real estate must be responsive. We are no longer physical vs. digital. Technology bridges the gap and delivers a shared reality where shoppers can immerse themselves and create their own shopping, dining, recreation, leisure, and entertainment experiences,” said Meghann Martindale, Director, Retail Market Intelligence at Avison Young.

After experimenting with pop-up fan experiences around the world, Netflix is opening its first two permanent brick and mortar locations in the US in 2025 and then pursuing a global expansion of the new branded concept, Netflix House. One of the initial locations is proposed in the 120,000 square feet former Lord and Taylor box at King of Prussia Mall outside Philadelphia. According to Netflix, visitors will be able to purchase merchandise, see live entertainment and participate in immersive experiences surrounding hit Netflix shows like Squid Game and Stranger Things. Attractions at Netflix House could include obstacle courses, escape rooms, mixed reality games, art installations, screenings, and fan meet-and-greets. Additionally, there will be themed restaurants ranging from fast casual to fine dining, featuring food and drinks from the streamer’s food-based reality shows.

What does this mean for commercial real estate?

Retailers and landlords must constantly adapt to rapidly-changing consumer behaviours to maintain relevancy and thrive in the future. Shoppers are increasingly seeking recreation and leisure in playful environments and immersive experiences that blend the physical and digital worlds.

Emerging, tech-driven concepts catering to these shopping and experience preferences are successfully replacing traditional static retail stores and reinvigorating shopping centres. This is mutually beneficial because the operators can capitalize on the footfall offered by premiere shopping centre locations, whilst owners can leverage these uses to serve the modern trend of turning shopping trips into experience-based visits and attract new shoppers.

“Evolution of retail spaces will continue at rapid pace with innovations in technology supporting this. Landlords and tenants will need to continuously work together to keep up with rapidly changing consumer demand for new and interesting retail spaces,” said Lesley Males, Director, Market Intelligence, Avison Young.

(This article is part of Avison Young’s 2024 Drivers of Change series where it explores the factors impacting our cities and places, and propelling us forward to adapt, learn and take advantage of the opportunities they present. See all the 2024 Drivers of Change )

Beertown opens latest location in Whitby, second location coming for London

By

Mario Toneguzzi

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August 23, 2024

The Beertown Public House brand continues to grow with the opening of its latest location in Whitby, Ontario.

The Charcoal Group, based out of Kitchener, Ontario, owns the brand which now has 11 locations.

“We just opened our tenth location last year and it feels like we are surpassing a huge milestone and moving on to something bigger than we ever imagined,” said Jody Palubiski, partner and CEO of the Charcoal Group. “We are excited to build off this momentum and to continue our goal of creating a dining revolution.

“We’re also in the midst of building number 12 which will be our second unit in London at White Oaks Mall.”

He said that location should open in early November.

The first location opened in Cambridge, Ontario in April 2012. All the locations are in southwestern Ontario – in order of opening, Cambridge, Waterloo, London, Burlington, Oakville, Guelph, Barrie, Toronto, Etobicoke, Newmarket and now Whitby.

“Two of my partner’s parents founded the Charcoal Steak House in 1955. So we have quite an extensive legacy and history within the company. Lots of relationships built over that time. My two partners bought that business from their parents back in the 90s. And back in 2003-2004 I joined the group with the idea that we were going build on the history of the Charcoal Steak House and build the Charcoal Group of Restaurants,” said Palubiski.

“At the time, Kitchener-Waterloo was in the middle of a big tech boom with Blackberry, Open Tech, all of those businesses. We opened Wildcraft (Grill + Long Bar) as an extension of that. When it first opened it was known as the RIM cafeteria – Research in Motion which became Blackberry. We opened Wildcraft in 2007. We opened The Bauer Kitchen in 2009.

“The recession hit and we started looking at who was doing well and where the needle was going and where the puck was going. The results were saying we really felt good about this beer orientation. The craft beer we thought was an emerging market.

“We’ve come from a background of quality food, quality dining experiences and then we married that with craft beer. Although it’s called Beertown, we’ve worked really hard to make sure the food and the program around hospitality and the level of detail management has lived up to everything else in our history and continue to carry that forward.”

The Whitby location is a repurposed former Montana’s location.

“We’re actually actively in discussions on two more. We want to continue to grow but in our world we don’t have a lot of the pressures that competitors have. We’re not a public company. Everyone in this company is focused on excellence before growth and we always joke internally that excellence comes before growth in our group not just in the dictionary,” said Palubiski.

“There’s nothing that says we have to grow. We grow based on opportunities, taking our brand of hospitality further and farther, but when we feel as if we want to we do and when we feel when we’re in a position to do it in keeping with our history we do it. Right now we’re feeling very, very empowered.”

He said the company is energized by the reception and the performance of that business.

The Charcoal Group includes 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.

Canadian Retail News From Around The Web For August 23, 2024

By

Retail Insider

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August 22, 2024

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 24 hours.

Federal Government Intervenes in Canadian Railway Labour Dispute, Demands Arbitration (Retail Insider)

Canada’s Food Professor warns of hiked prices at the grocery store should rail lockout continue (CJWW)

Canada banning sales of flavoured nicotine pouches in convenience stores, gas stations (CBC)

Jersey Mike’s location in Canada opening, triggering massive expansion plans (Retail Insider)

Petro-Canada Rolls Out Mandatory Prepay Fuel Policy Across Ontario (Retail Insider)

A farewell to arms: Military surplus store closing (CBC Calgary)

Alberta becomes third Canadian province to allow cannabis delivery via Uber Eats (MJBiz)

Toronto’s favourite Value Village about to close for condos but a new one is coming (BlogTO)

Alcohol sales in grocery and convenience stores would benefit Albertans (Todayville)

Suspects caught on camera throwing Molotov cocktails into Liberty Village store (CP24)

Loblaw challenges grocery norms with minimalist No Name concept stores [Op-Ed]

By

Sylvain Charlebois

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August 22, 2024

8630a760-4e27-11ed-bbfb-244a5e6adf10 — Photo: Loblaw Companies

Canada’s recent railway shutdown has once again highlighted the challenges of doing business in this country, particularly in sectors as critical as food distribution. We are forced to turn to domestic players and policy measures to foster greater competition within the market. This brings us to a significant move by Loblaw, Canada’s largest grocer, which has just made an intriguing announcement that could redefine the competitive landscape of the grocery industry.

Loblaw plans to open three No Name stores in medium-sized Ontario cities—Saint Catharines, Windsor, and Brockville—this Fall. These stores will carry a limited selection of 1,300 products, primarily under the President’s Choice and No Name brands. Notably, these stores will operate without a cold chain, meaning no refrigerators or freezers will be used. The concept is minimalist: no frills, just basic shelving stocked with shelf-stable food, supported by a skeleton staff, and housed in modest real estate. The goal is clear: keep operating costs low to pass on savings to consumers.

For a company with a near-ubiquitous presence across Canada, it’s surprising that Loblaw continues to find new opportunities to expand. However, what’s even more striking is the company’s willingness to potentially cannibalize its own market share by opening these new stores. This move suggests that Loblaw is unafraid to disrupt its own business model to stay ahead of the competition.

Even the imagery supplied to press is no frills — a mock up of new no name store front (CNW Group/Loblaw Companies Limited – Public Relations)

Historically, Canadian grocers have been quite territorial, often focusing on markets that follow the country’s traditional rail lines—a relic of an earlier era in commerce. But in today’s world, where consumers are more informed and price-sensitive, this outdated “rail track” mentality is increasingly irrelevant.

The idea of self-cannibalization has long been a nightmare for grocers, deterring them from expanding in ways that could increase competition and offer Canadians more choices. However, Loblaw’s decision to launch these No Name stores marks a significant departure from this mindset, recognizing that the competitive landscape has evolved, especially in the wake of recent food inflation.

Consumers, now more than ever, are astute bargain hunters, diversifying their shopping habits beyond traditional grocery stores to include dollar stores, discount retailers like Giant Tiger, and even mass merchandisers such as Walmart. Loblaw’s new No Name stores are a strategic response to this shift, aiming to bring budget-conscious shoppers back under the Loblaw umbrella.

Loblaw pilots no name store to help customers save on food and household essentials (CNW Group/Loblaw Companies Limited – Public Relations)

This announcement follows another significant move made by Loblaw in June, when it revealed plans to open 40 new No Frills stores, each spanning 15,000 square feet. Both initiatives underscore a growing trend: discounts are paramount, and they will likely remain so for the foreseeable future. While interest rates are gradually decreasing, the pace is too slow to provide immediate relief to consumers, many of whom are trimming their budgets wherever possible, including their grocery bills.

Another factor at play is the uneven service across different markets. While hyper-urban areas like Toronto, Montreal, Vancouver, and Calgary boast numerous grocery options, smaller or medium-sized cities often suffer from limited competition—a legacy of the old “rail track” mindset. Loblaw has astutely identified this gap and is seizing the opportunity to better serve consumers in these underserved areas, which straddle the line between rural and urban.

Whether this strategy will succeed remains to be seen. However, if it does, Loblaw could quickly scale this No Name concept nationwide. So, Canadians should not be surprised if these minimalist stores pop up in their communities, regardless of where they live.

This move by Loblaw signals a broader trend within the industry: the growing importance of adaptability and innovation in response to shifting consumer demands and economic realities. As competition intensifies, we can expect more bold moves from major players in the market, each vying for a piece of the increasingly frugal consumer’s dollar.

Federal Government Intervenes in Canadian Railway Labour Dispute

By

Retail Insider

-

August 22, 2024

shutterstock_1296750406 — Image: Shutterstock

Canadian Pacific Kansas City (CPKC) and Canadian National Railway (CN) have been ordered by the federal government to end their recent network shutdowns. The directive comes as part of a broader intervention to resolve ongoing labour disputes that have significantly impacted the nation’s transportation infrastructure this week.

Labour Minister Steve MacKinnon announced on Thursday that the government would be sending the labour disputes for final arbitration at the Canadian Industrial Relations Board (CIRB). This decision was made less than 24 hours after both railway companies locked out workers and halted operations across their networks, following failed attempts to secure new contracts with their respective unions by Wednesday’s midnight deadline.

Citing the potential risks to Canadians and the economy, MacKinnon invoked his ministerial powers to bypass the collective bargaining process. “There is no question we are at an impasse. The parties remain very far apart on the issues,” he stated. “The effects of the impasse are being borne by Canadians every day.”

While declining to provide a specific timeline for the resumption of rail services, MacKinnon expressed his expectation that trains would be running again within days. However, he emphasized the need to respect the independence of the CIRB in this process. As part of the intervention, the Labour Minister has also directed the CIRB to extend the previous collective agreements during the arbitration proceedings.

The railway shutdown has far-reaching consequences for multiple industries on both sides of the Canada-U.S. border, as well as commuters in major cities like Toronto and Vancouver that rely on CPKC tracks. Business groups have estimated that the closure of both of Canada’s freight railways could cost the economy billions of dollars. In response, various lobby associations and some provincial premiers have urged the federal government to take action.

The work stoppage has affected a wide range of sectors, including grain shipments, chlorine transportation for municipal water treatment plants, and the movement of consumer goods. More than 9,000 rail employees represented by the Teamsters Canada Rail Conference are currently off the job due to the dispute.

Both railway companies had been requesting government intervention for weeks, seeking to have their cases sent to binding arbitration. However, Ottawa initially declined these requests, insisting that the parties work towards a negotiated settlement. MacKinnon explained that the government wanted to give negotiators and mediators the opportunity to reach agreements independently. It was only when the deadlines passed and the lockouts occurred that he determined it was time for federal intervention.

Jersey Mike’s location in Canada opening, triggering massive expansion plans

By

Mario Toneguzzi

-

August 22, 2024

Redberry Restaurants is opening its first of 300 Jersey Mike’s restaurants, known for their fresh sliced/fresh grilled subs, in Canada – the first major international expansion in the company’s 68-year history.

The company has plans to substantially increase its footprint in Canada over the next 10 years with the restaurant in Markham, Ontario being the first.

“We are excited to bring A Sub Above to the Greater Toronto Area,” said Ken Otto, CEO, Redberry. “This is Redberry’s first new Jersey Mike’s location to open in Canada and we can’t wait to share this iconic brand with our new neighbors.”

Markham is the first of six new Jersey Mike’s locations planned for Ontario in 2024, forming the foundation for rapid new store growth. By the end of the year, Redberry will open additional GTA locations including York Mills and Union Station as well as three others in Brantford, Guelph and Pickering. These six locations will employ nearly 100 crew members. Redberry also owns the two existing and recently remodeled Jersey Mike’s locations in Kitchener and London.

Redberry previously purchased two existing Jersey Mike’s locations in Kitchener and London, Ontario.

To celebrate, Redberry will hold a grand opening and fundraiser from Wednesday, August 28 to Sunday, September 1, to support Make-A-Wish Canada. Customers who receive a special fundraising coupon distributed through a grassroots effort prior to the opening can make a minimum $3 contribution to Make-A-Wish Canada in exchange for a regular sub. Customers must have a coupon to be eligible, said the company.

Jersey Mike’s has had an on-going partnership with Make-A-Wish Canada. In March 2024, the Kitchener and London locations raised $12,000 during Jersey Mike’s Month of Giving to benefit this local charity partner.

In 2023, nearly 500 wishes were granted in Ontario. Still, more than 1,260 children, including 15 children in Markham, are currently waiting for their wishes to be granted.

Redberry Restaurants Earns Top Honour at Canadian Hospitality Industry Awards

By

Retail Insider

-

August 22, 2024

Canadian quick-service restaurant franchisee Redberry Restaurants has been named Company of the Year at the 2024 Pinnacle Awards, solidifying its position as a powerhouse in the nation’s hospitality industry.

As the largest operator of Burger King and Taco Bell locations in Canada, and the Canadian Area Director for Jersey Mike’s Subs, Redberry says it has demonstrated remarkable growth and innovation in the competitive fast-food market. The company currently manages over 190 restaurants across the country, with ambitious plans to expand its portfolio by more than 600 additional locations in the coming years.

Ken Otto, Chief Executive Officer of Redberry Restaurants, expressed his gratitude for the recognition: “This honour reflects the dedication and hard work of our entire team. Our commitment to growth and positive community impact is at the core of our success.”

The past year has been particularly successful for Redberry, with the company reporting a 16.2% increase in store units, a 16.4% rise in revenue, and a substantial 30% growth in EBITDA. Looking ahead, Redberry anticipates new unit growth to approach 20% in 2024, further cementing its position as one of Canada’s fastest-growing restaurant franchisees.

Beyond financial achievements, Redberry has distinguished itself through robust community engagement initiatives. The company actively supports programs such as the Taco Bell Foundation, The Burger King Scholarship Foundation, and various grassroots efforts with Jersey Mike’s Subs. A notable contribution includes a significant donation to Make-A-Wish Canada, demonstrating Redberry’s commitment to corporate social responsibility.

Redberry’s success extends beyond its balance sheet, encompassing high guest service scores, successful new location openings, and extensive employee engagement programs. The company provides employment opportunities for nearly 5,000 individuals across Canada, fostering a diverse workforce that embodies its core values of Partnership, Respect, Integrity, Diversity, and Empowerment.

Kiran Benet, Chief People Officer of Redberry Restaurants, emphasized the company’s unique culture: “We’ve created an environment where our teams are empowered to add value and make a difference. This approach has made us a different kind of restaurant company, with a culture that’s widely admired in the industry.”

The Pinnacle Awards, established in 1988 by Kostuch Media Ltd., celebrate excellence in the hospitality industry. Winners are selected by a judging panel from a list of nominees compiled through industry recommendations and selections made by Foodservice and Hospitality and Hotelier magazines.

The 35th Annual Pinnacle Awards ceremony will take place on December 6, 2024, at the Fairmont Royal York Hotel in Toronto, where Redberry and other industry leaders will be formally recognized for their outstanding contributions to Canada’s hospitality sector.

Petro-Canada Rolls Out Mandatory Prepay Fuel Policy Across Ontario

By

Retail Insider

-

August 22, 2024

Social media image — Photo: Petro Canada

Petro-Canada is set to implement a change in how customers purchase fuel at its Ontario locations. Starting September 3, 2024, the majority of Petro-Canada stations across the province will require customers to prepay for their fuel, either at the pump or inside the store.

This move marks a shift in the company’s operational strategy, aligning Ontario with practices already common in other parts of Canada. The decision comes as part of a broader industry trend addressing safety concerns and combating fuel theft, issues that have gained prominence in recent years.

The corporation emphasizes that this proactive change aims to ensure safety at their locations while simultaneously reducing the risk of fuel theft.

The timing of this policy implementation, immediately following the Labour Day long weekend, suggests a strategic approach to minimize disruption during the busy summer travel season. Petro-Canada has assured customers that they will be well-informed of the change through signage at stations and additional communication efforts.

While Petro-Canada is taking a lead in implementing this policy across its Ontario network, it’s part of a larger conversation within the fuel retail industry. The Canadian Fuels Association reports that approximately 78% of gas stations in Canada are independently owned, allowing individual retailers to make their own decisions regarding prepayment policies.

Other major players in the industry are also addressing these concerns. Shell, for instance, has already implemented prepayment systems in jurisdictions with existing legislation or at locations deemed high-risk for theft. In Ontario, where such legislation doesn’t exist, Shell continues to assess each site based on safety, security, and customer needs.

The move towards prepayment comes against a backdrop of increasing fuel thefts across Canada. While Petro-Canada has not disclosed specific figures, other provinces have reported significant spikes in fuel-related crimes. In Saskatchewan, for example, RCMP data showed a 70% increase in fuel thefts in 2022 compared to the previous year.

Loblaw pilots new no name® store

By

Mario Toneguzzi

-

August 22, 2024

Loblaw Companies Limited - Public Relations-Big savings - Loblaw — Mock up of new no name store front (CNW Group/Loblaw Companies Limited - Public Relations)

Loblaw Companies Ltd. announced Thursday its plans to pilot a new concept, value-based no name store in three Ontario markets.

It said the no name store will help customers save up to 20 per cent on everyday grocery and household essentials, by lowering operating costs and carrying only a targeted assortment of products.

The no name store is piloting in three markets in Ontario, beginning in September 2024: Windsor, St. Catharines, and Brockville.

“Our goal is simple – providing food and essential household items across a limited range of national brands and no name brand products at our lowest possible price,” said Per Bank, President and CEO, Loblaw. “Since food inflation took off globally, we have been laser-focused on doing what we can to keep prices lower for customers, including opening more discount food locations in more parts of the country. This new test concept allows us to pass on lower prices to our customers – it’s a completely different and simplified shopping experience.”

The company said no name stores are reducing operating costs through a variety of ways, including:

Shorter operating hours (10am-7pm)
Smaller assortment means the store is less complicated to run
Limited marketing and no flyers
No refrigeration (no dairy or fresh meat products)
Reused fixtures – shelves, cash lanes – to minimize building costs
Fewer weekly deliveries, reducing logistic costs

“Our commitment to customers is that products at the no name store will be up to 20% less than the regular retail price on a comparable product at any of the four main discount grocers in that local area. These no name stores will have a limited selection of 1,300 products, but these are many of our top-selling pantry staples and household goods throughout the province, so we know they’re what customers buy most and what will bring them the biggest savings,” said Melanie Singh, President, Loblaw’s Hard Discount Division. “This is a test and learn project, and we’re planning to listen and adjust quickly. The pilot is unchartered territory and while success isn’t guaranteed, our commitment to creating value and meeting customer needs remains unwavering.”

Loblaw said customers can expect a small range of frozen food items, complemented by pantry staples, household necessities, and shelf-stable bakery and produce items including bread, bagels, apples, bananas, peppers, and carrots. This curated line up of products ensures every item on the shelves contributes to the store’s mission of affordability and quality.

“It’s an intriguing strategy for Loblaw. The company is clearly no longer concerned about cannibalizing itself and seems to be targeting the Dollarama and Giant Tiger market in smaller areas. This is an aggressive move forward,” said Sylvain Charlebois, Professor and Senior Director of the Agri-Food Analytics Lab at Dalhousie University.

“I’m not sure it will be successful, but Loblaw is targeting the non-urban market, which has been somewhat underserved compared to major urban centers like Toronto, Montreal, or Vancouver. Only time will tell.”

Loblaw Companies Limited is Canada’s food and pharmacy leader, as well as its largest retailer and private sector employer. With over one billion transactions each year in its network of 2,500 stores and national e-commerce options, Loblaw brings food, pharmacy, beauty, apparel and financial services to customers through many brands: President’s Choice, No Name, Loblaws, Shoppers Drug Mart, No Frills, Real Canadian Superstore, T&T, Joe Fresh, PC Express and PC Financial. The Company’s loyalty program, PC Optimum, has more than 16 million active members.

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