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.
Payments Canada has released a new study revealing that more than one in ten Canadians have fallen victim to payment fraud in the past six months. This alarming statistic highlights the ongoing challenges faced by consumers in an increasingly digital financial landscape.
The study, which surveyed 1,500 Canadians between February 26 and March 8, 2024, uncovered that 13% of respondents had experienced payment fraud within the last half-year. This figure remains consistent with the previous year’s findings, indicating a persistent threat to Canadian consumers.
Perhaps most concerning is the impact of fraud fears on everyday financial activities. The study found that 22% of Canadians risk missing bill payments due to concerns about potential scams. This hesitation stems from a widespread difficulty in distinguishing legitimate payment-related communications from fraudulent ones, with 32% of respondents reporting such challenges.
Tracey Black, President and CEO of Payments Canada, commented on the findings: “These results underscore the critical need for ongoing education and robust security measures in our payment systems. We’re seeing how fraud concerns are not just financial risks, but are actually altering the way Canadians interact with their money and financial institutions.”
The study identified the most common types of payment fraud experienced by Canadians. Unauthorized transactions appearing on bank or credit card statements topped the list at 38%, followed closely by impersonator contact at 34%. Credit card fraud resulting in unauthorized purchases ranked third at 18%.
Interestingly, the research revealed significant generational differences in fraud experiences. Young Canadians aged 18-34 were found to be particularly vulnerable to authorized push payment fraud, with 29% reporting such incidents compared to just 2% of middle-aged (35-54) and 6% of older (55+) Canadians. This type of fraud, which involves manipulating victims into making voluntary payments under false pretenses, appears to be targeting younger demographics more aggressively.
The financial impact of these fraudulent activities is substantial. Among those who fell victim to fraud, 59% reported monetary losses. While the majority (46%) of these losses were $500 or less, 13% exceeded $500. Even in cases where no money was stolen, 37% of victims reported theft of personal financial data, highlighting the multi-faceted nature of modern financial fraud.
In response to these threats, Canadians are adopting various protective measures. The study found that 79% of respondents limit the personal information they share online, while 70% restrict their online shopping to trusted sites. Additionally, the use of two-step authentication for account access has increased from 50% in 2021 to 65% in 2024.
However, the research also identified areas where Canadians could improve their security practices. Alarmingly, 35% of respondents admitted to storing passwords on smartphones, computers, or in notebooks – an increase from 31% in 2021. Furthermore, 19% reported using the same password across multiple accounts, a practice that significantly increases vulnerability to widespread fraud in the event of a single breach.
As Payments Canada continues to monitor and respond to these trends, the organization emphasizes the importance of consumer education and robust security measures. With over $112 trillion cleared and settled through Canadian payment systems in 2023 alone, the stakes for maintaining trust and security in the nation’s financial infrastructure have never been higher.
Kyochon F&B, a renowned South Korean fried chicken chain, has made its Canadian debut with the opening of its first location in Vancouver, marking a significant milestone in the company’s North American expansion strategy.
The new Kyochon Chicken Canada outlet, situated at 1471 Robson Street in downtown Vancouver, brings a taste of South Korea’s popular fried chicken culture to the heart of the city. Robson Street, known for its diverse array of retailers, restaurants, and cafes, provides an ideal location for the brand to introduce itself to the Canadian market.
A company spokesperson said, “We aim to capture local customers’ tastes with Kyochon’s Original, Red Series, and Honey Series, and accelerate our expansion into the North American market.” This move suggests that Kyochon is confident in the appeal of its signature flavours to Canadian palates and sees Vancouver as a springboard for further growth in the region.
Kyochon chicken interior. Source: TripAdvisor.
The expansion into Canada is the result of a strategic partnership forged in early 2023. Kyochon USA, the company’s US subsidiary, signed a master franchise agreement with Mirae F&B Holdings, a subsidiary of Mirae Investment. Mirae F&B Holdings brings valuable local expertise to the table, with operations spanning food service, retail, hospitality, and gas station industries across Canada.
This latest opening adds to Kyochon F&B’s growing international presence. The company currently operates 75 locations outside of South Korea, situated in the United States, China, Malaysia, Indonesia, Taiwan, and the United Arab Emirates (UAE). The addition of Canada to this list underscores the brand’s commitment to global expansion and its ability to adapt its offerings to diverse markets.
Canadian food processing and distribution company George Weston Ltd. reported a significant financial impact in its second-quarter results due to a recent settlement in the bread price-fixing class action lawsuit. The settlement resulted in a $253 million hit to the company’s earnings for the period ended June 15, 2024.
The Toronto-based company, which holds a majority stake in Loblaw Companies Ltd., Canada’s largest food and pharmacy retailer, saw its net earnings drop to $667 million in the second quarter, compared to $782 million in the same period last year. This decline is largely attributed to the settlement reached in the long-standing bread price-fixing controversy that has plagued several major Canadian grocers and bakeries.
George Weston’s net earnings attributable to shareholders also experienced a notable decrease, falling to $410 million from $508 million a year earlier. Despite these setbacks, the company managed to increase its overall revenue to approximately $14 billion, up from $13.8 billion in the previous year.
The bulk of George Weston’s revenue, over $13 billion, came from its Loblaw subsidiary, which reported an increase in retail sales. This growth in Loblaw’s performance helped offset some of the financial impact from the settlement. Additionally, the company’s Choice Properties Real Estate Investment Trust saw a rise in revenue, driven by higher rental rates and the successful completion of acquisitions and development projects.
The bread price-fixing scandal first came to light in 2017. The class-action lawsuits alleged that George Weston, Loblaw, and other defendants conspired to fix the price of packaged bread in Canada between 2001 and 2015. As part of the settlement, Loblaw agreed to pay $252.5 million, a move that has drawn both praise for accountability and criticism for perceived inadequacy.
Industry experts have weighed in on the settlement, with some arguing that the amount may not be sufficient given the scale and duration of the alleged price-fixing scheme. Dr. Sylvain Charlebois, a professor in food distribution and policy at Dalhousie University, stated in a separate interview, “While the settlement represents a significant sum, it’s important to consider the broader implications for consumer trust and market integrity in the Canadian food retail sector.”
The settlement and its financial impact on George Weston highlight the ongoing challenges faced by major players in Canada’s retail food industry. As government scrutiny intensifies and consumers demand greater transparency, companies like George Weston and Loblaw are navigating a complex landscape of regulatory compliance and public perception.
Looking forward, George Weston’s ability to recover from this financial setback will likely depend on the continued strong performance of its Loblaw subsidiary and strategic management of its real estate investments through Choice Properties REIT. The company’s response to this challenge and its efforts to rebuild consumer trust will be closely watched by industry observers and stakeholders in the Canadian retail sector.
Rendering of the Marda Loop location in Calgary. Image supplied.
Calgary-based Central Restaurants, an intimate food and drink concept created by the team behind CRAFT Beer Market, is embarking on a significant expansion despite the economic challenges and is set to open three new locations in 2025.
Toronto and Vancouver, as well as a second location in Calgary, all are anticipated to open early next year.
The first Central opened in May 2022 in Calgary in the Beltline District. Central represents meeting in the middle, with an everyday approachable food and drink menu designed for all.
“Central stands out because of the significantly smaller and more intimate ambiance and edgy decor. We’re seeing a real desire for more of this style of restaurant with a laid back atmosphere, incredible culinary menu, cocktails and spirits all at reasonable prices,” said PJ L’Heureux, founder of Central Restaurants.
PJ L’Heureux
“For a long time we’ve been developing it. The idea for me is I’m pretty used to pretty large format concepts and this is a smaller concept. The first location is 4,400 square feet and we just wanted it to be smaller and easier to manage and it’s basically a very cool urban restaurant concept that’s pretty fun and social. But our plans are to bring it out to neighbourhood and communities.”
Central Marda Loop in Calgary, located at 2015 33rd Ave SW, is set to open in the spring of 2025, and will feature a colourful, mid-century modern aesthetic with a 360-degree bar, vintage light fixtures, iconic artwork, and lush greenery. The 4,411-square-foot space, Central’s first ground-up building, includes a 2,256-square-foot rooftop patio designed by Modern Office of Design + Architecture (MODA). With a spacious bar, comfortable booth seating, and beautiful potted plants, this rooftop area offers a stylish spot for dining and socializing, bringing the total seating capacity to 269, said the brand.
Central Burrard in Vancouver, located in the Bentall Centre at 555 Burrard Street, spans 3,500 square feet and embraces a modern industrial vibe, seamlessly blending raw, textured elements with contemporary decor. The space will feature abundant natural light, vibrant colors, and a circular bar. The exterior will offer a 2,000-square-foot, all-season dining area with plenty of seating and greenery, providing a stylish and comfortable indoor and outdoor dining experience.
Rendering of the future Burrard Street location in Vancouver. Image supplied
Central Ossington, opening at 114 Ossington Ave in Toronto in early 2025, will boast a vibrant, street-style grunge aesthetic. The 3,000-square-foot space will feature a wrap-around bar, glass block and concrete finishes, and plenty of greenery, along with artwork and murals throughout the restaurant, drawing inspiration from iconic musicians. The exterior includes a large year-round patio with 518 square feet of seating and a fire table to keep guests warm during the cooler months.
Central Ossington
“The concept itself was developed a little bit beforehand and we were looking in Vancouver at the same time we were looking in Calgary,” said L’Heureux, who has Scott Frank as a partner. “The deal in Vancouver has been a long-time coming. A really great site that we liked and obviously COVID really changed a lot of things. It slowed down the process for both landlords and ourselves and we’re lucky enough to get that site in Vancouver. It’s a great site in the middle of the downtown.
“In Toronto, I spent a lot of time going to ICSC’s. That specific site came out of that. Just conversations. It didn’t really hit the market. So I was excited to get into that one as well.”
L’Heureux said there will likely be more Central Restaurants after these ones.
“We still have to prove the concept. We only have one location so we’ve got to make sure it works in other markets. But we have a great theme and I think we have a good track record with CRAFT and this is obviously a different brand but I’m excited to see how the different cities take it on and then we’d be looking to expand in those markets specifically.
“Toronto’s got the biggest population in Canada so that’s obviously one thing we like. The other thing that’s been really trick with the CRAFT growth is it’s very hard to find 10,000 to 12,000 square feet of space in a great location. And when you’re looking at 3,000 to 5,000 there’s a lot more opportunities. With Central, we have a lot more opportunities to have more locations in prime spots.”
There are nine CRAFT locations with the last one that opened in 2021 in Victoria.
“We’ve got a few things down the pipe that we’re going to be announcing pretty soon. We’ve got another location in Canada and we’ve been looking a lot into the U.S. for the CRAFT concept,” added L’Heureux.
The first CRAFT location opened in 2011 in Calgary.
A recent report by commercial real estate firm Colliers indicates foot traffic in Canada is rising for most merchants, both month-over-month and since the beginning of 2024.
Adam Jacobs, Head of Research (Canada) for Colliers, said as the higher cost of living and inflation weigh on consumers, some sectors like low-cost mass market retailers are poised to benefit.
Adam Jacobs
“Not unlike office, you see a lot of negative stories about retail but to me the data says that the story of the last couple of years is that there’s been a huge boom in population, a huge boom in immigration, millions of people moving to Canada and you can really see that in the day to day. Canadian Tire, No Frills grocery store, A&W. Your day to day stuff that kind of everybody needs,” said Jacobs. “There’s quite a lot of growth there. So I think people might be surprised to hear that because you hear that ecommerce is taking over, that people are broke because of inflation and everything.
“And to be clear this doesn’t say anything about how much money they’re spending or are they spending more than they did five years ago. If we’re just looking at the number of people who walk through the front door, that number is up for most normal retailers like grocery, fast food, large format, Walmart, Superstore. A lot of that I think is just attributable to how quickly the country is growing and the fact that everybody needs a pair of socks and groceries.
“I think that’s an optimistic story if you’re on the leasing side or the landlord side to counter balance some of the negativity.”
Here are the report’s key findings:
Home improvement season is upon us, with huge growth in traffic for large-format general retailers like Walmart and Canadian Tire – often the go-to places for garden supplies, tools and outdoor furniture;
New Year’s resolutions have worn off, and the weather is improving, which means traffic for many fitness chains is down considerably. While traffic is up for most categories, it’s down double-digits for major gyms like LA Fitness and Planet Fitness;
Record-high population growth has been the story of the last several years, and it’s reflected in foot traffic across the board. Daily essentials like bank branches, grocery stores and coffee shops are seeing strong growth; and
Quick-service restaurants (QSRs) were resilient throughout the pandemic and the ensuing inflationary environment post-COVID. We’re still seeing growth for fast food chains like A&W and Subway, partly driven by new store openings in a strong retail leasing environment.
Colliers uses data firm Environics Analytics’ Footfall tool to see who’s up, who’s down, and where growth is happening in Canadian retail.
Colliers Canadian Retailer Foot Traffic Analysis for May 2024
Here’s Colliers’ outlook for the rest of 2024:
Record-high population seems likely to tail off with tighter restrictions on temporary residents – this may lead to a slowdown in foot traffic overall;
Some sectors are seasonal – gyms, for example – and will see improvement with cooler weather later in the year; and
A weakening labour market may lead to slower gains for discretionary spending.
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.
Loblaw Companies Limited, Canada’s largest food retailer, has ignited controversy with a recent marketing campaign for its discount grocery chain, NoFrills. The advertisement, which encouraged shoppers to bypass farmers’ markets in favor of NoFrills stores, has drawn sharp criticism from farmers’ market organizations and small business groups across multiple provinces.
The contentious text message, distributed alongside NoFrills’ latest flyer, was first noticed by members of the Farmers’ Markets of Nova Scotia Cooperative and the Ontario Small Business Community in mid-July. Victoria Tinkler, community manager for the Ontario small business group, initially believed the message to be a prank, given its disparaging tone towards local farmers’ markets.
The ad campaign has struck a particularly sensitive chord given the existing tensions between large grocery chains and Canadian consumers. Just two months prior, thousands of Canadians participated in a boycott of Loblaw stores in response to the company’s soaring profits amid rising living costs. This latest marketing misstep has further eroded trust between the retail giant and its customer base.
Both the Farmers’ Markets of Nova Scotia Cooperative and the Ontario Small Business Community took to social media to voice their disapproval. They argued that the ad unfairly targets small business owners who often face significant barriers to getting their products onto grocery store shelves and typically cannot operate year-round.
The controversy has shed light on the complex relationship between food producers and large grocery chains. Tinkler pointed out the apparent contradiction in Loblaw’s messaging, given that the company sells products grown by Canadian farmers from coast to coast.
In response to the backlash, Loblaw issued an apology, stating that the text was intended to highlight NoFrills’ local summer produce program but “fell short of reflecting the true spirit of our campaign.” The company affirmed its commitment to supporting Canadian farmers and growers, but the incident has left many questioning the sincerity of this pledge.
This controversy comes at a time when many Canadians are becoming increasingly mindful of their shopping habits, often planning their grocery trips around promotions and sales to cope with rising food costs. The incident serves as a reminder of the delicate balance large retailers must strike between competitive pricing and supporting local producers. Not to mention marketing messaging.
Dessert-brand Sweet Jesus has entered into a long-term partnership with Canadian casual dining chain St. Louis Bar & Grill, to feature its frozen desserts on its menu at more than 80 restaurants across Canada.
“We’re thrilled to bring Sweet Jesus to St. Louis Bar & Grill. Its guests expect a highly craveable menu and we’re excited to help enhance their dining experience with our mouthwatering desserts that are just about as addictive as St. Louis’ world-famous wings!,” said Phillip Knox, Director of Operations, Sweet Jesus.
Phillip Knox
“St. Louis Bar & Grill is one of Canada’s most beloved and successful restaurant chains with a dedicated and growing fan base across the country. Canadians love them for their craveable eats, making Sweet Jesus’ flavour-packed desserts a perfect addition to their menu. Since launching at St. Louis, our desserts have been a hit. We’re excited that millions of Canadians are experiencing Sweet Jesus, including at St. Louis locations. As St. Louis continues to open additional restaurants nationwide, backed by its strong food delivery network, access to Sweet Jesus will continue to expand.
“The overwhelming success of Sweet Jesus through this partnership is a key indicator for us. It underscores a significant consumer demand for our innovative, delicious desserts and the vast potential for growth of the Sweet Jesus brand among today’s discerning consumers.”
St. Louis Bar & Grill operates casual dining restaurants with 80 locations across Canada. The chain has served its famous signature chicken wings since opening its first location in 1992.
Royal Nasager
“We’re absolutely stoked about this partnership and our guests just can’t get enough of Sweet Jesus’ amazing desserts,” said Royal Nasager, VP of Marketing & Strategic Partnerships for Aegis Brands which operates St. Louis Bar & Grill. “We’re constantly looking for exciting ways to enhance guests’ experiences, and this partnership is an extension of our commitment to continuously surprising and delighting them.”
Nasager said another three locations will be opening in September.
“We’re expecting more to open this year,” he said.
Sweet Jesus will be part of the menu for all the restaurant locations.
“We identified the need and the opportunity to up our dessert game and bring something special into the St. Louis Bar & Grill. We started testing around this time last year and had about eight months and we had a great guest response to it. Franchisees loved it and it was really a great complimentary product to what we currently do,” said Nasager.
“So starting in May of this year we expanded the program to all locations. This has replaced our sweets, desserts component of our menu and we’ve added in the Sweet Jesus menu as our offering there.
“We’re fully committed to the partnership and we fully expect Sweet Jesus to be our dessert partner going forward.”
Tableware retailer Fable is launching a new concept in its Vancouver store that could eventually be rolled out to other markets.
The company has retail locations in Toronto and South Granville in Vancouver. The Toronto location is on Queen Street West.
The retail stores originally opened in 2023 with the Vancouver location originally in Gastown but in September the new Granville location was launched.
Joe Parenteau
“Fable is a home decor brand. To date, we’ve been primarily focused on table top, making it as easy and effortless as possible to set this beautiful looking table, helping customers feel right at home with sustainable goods that are all crafted ethically, sustainably and across all of like Europe, for the most part, we have products coming out of Japan, but outside of that, most of our pieces are coming from Portugal and Germany, some from Italy as well,” saidJoe Parenteau, Co-Founder and CEO of the company.
“But our main focus and what’s been shifting for us is how we think about the company as a whole. There’s been definitely a big shift towards becoming a full home decor brand. A lot of the new pieces that you’re going to see come out later this year are focused in the living room. We’re calling it our Living Collection. Think things like wall art, rugs, lighting, planters, all these other pieces in parts of your home that outside of furniture help a house feel more like a home, and those finishing touches around that space.
“For us, though, the main goal and long-term objective for the company is to make outfitting your home as easy and effortless as possible. And we really look at ourselves as like that graduation step from IKEA. So after you’ve outfitted your home from IKEA, and that first stage you’re looking to upgrade into something premium, things that are going to last you for the rest of your life. We hope that Fable is that obvious choice for you.”
Fable
When thinking about retail expansion, Parenteau said it is all about complementing its online strategy with physical presence that allows its customer base to come and gather in different locations and to be able to touch and feel the product.
“Home decor is a very tactile experience and it is nice to see the product before it enters into your home and you can understand how that’s going to look and come together in the space,” he said.
“So for us when we think about expansion it’s really about entering into different markets and different regions where we have a strong community and customer base already established. Next year we are looking at ideally opening two new retail locations and advancing our Toronto location. Essentially re-doing our Toronto location with a better space but also a new concept . . . The new Vancouver concept we hope will be our new blueprint as we expand going forward.”
“That’s the big thing we’re hoping to test . . . This will allow us to complement our earlier build out and bring in a full cafe offering. What we’re hoping to test with this cafe offering is two things. One is can we get more customers to touch and feel the product? Our products are really tactile . . . We want to get more people to touch and feel our products, have a nice coffee in a beautiful Japanese glassware and just experience the products,” he said.
“The second thing we’re also hoping to build is more a community. Fable is all about bringing people together, sharing moments, sharing meals and having this cafe concept we really want to test how can we bring people in, have people come in and enjoy coffee with a friend, and have a retail environment that supports people outfitting a home that they love but also a space that we have some community building.”
The Vancouver store is about 3,300 square feet. The Toronto store is currently much smaller.
The retail concept had its roots from a personal problem. Parenteau said most generations looking for home decor initially shopped at IKEA.
“I think IKEA is really great, and they ultimately design all their pieces to match. So when you want to graduate from the IKEA days, which is where I found myself, you turn to the traditional stores, Williams Sonoma, Pottery Barn, Crate & Barrel. But those stores are nothing like IKEA. In fact, they had designed nothing to match each other,” he said in a previous Retail Insider story.
“So the concept behind Fable is to make the shopping experience even easier for home decor and make it as simple as possible.”
