Grocery store giant Loblaw launched a pilot program recently allowing cashiers to sit on the job at some of its stores check out counters.
In a statement to Retail Insider, the Loblaw Public Relations department said: “Earlier this year, we piloted a four-month program in 10 of our stores across the country that provided cashiers with the option to sit. The pilot ended at the beginning of August, and we are evaluating colleague and customer feedback to determine the next steps.”
Sylvain Charlebois
Sylvain Charlebois, Senior Director, Agri-Food Analytics Lab at Dalhousie University, said he was recently speaking with Per Bank, CEO and President of Loblaw Companies Ltd., last week.
“He was the one that told me about this pilot,” said Charlebois. “Nobody was aware of it. He basically saw my column on the issue a few months ago (in a publication). I’m not sure if my column triggered the whole process but they actually ran a pilot in the summer which I thought was interesting. I verified that with Loblaw but they never actually made an announcement about it.
“My column basically invited grocers to think about this issue because employees are getting older. Working conditions is often mentioned as an issue now. Recruitment is an issue in the industry and perhaps at some point it’s time to think differently.
“And a lot of people have actually traveled and they do see that in some countries around the world it is common practice to offer the option to cashiers to either sit down or stand up. In Europe for example, in most cases most European cashiers actually do sit down and they have the infrastructure to support that kind of work. I think it’s actually important. Of course in light with what’s been happening with self checkouts there are mixed reactions to self checkouts and if people do value the humanity of exiting the store perhaps it’s time to think differently about the job itself and how we actually see the role and how they can be more comfortable.
“Say for example if someone wants to have a chat. The slow lanes like we’re seeing in Denmark for example. When we actually surveyed Canadians on the issue, Canadians are pretty split. Some people do think it’s about time, we need to do the same as other European countries. But there are many Canadians who do feel strongly about the fact that if they do see cashiers sitting down, they may feel that person is either less professional or perhaps lazy. So that’s why I think Loblaw decided to run a pilot for now to see how people would react.”
Charlebois said it’s a cultural issue.
“A lot of people never even thought about standing cashiers versus sitting cashiers. As far as I’m concerned I think it’s a really good debate to have,” he said.
“I think the best way to go about it is to do exactly what Loblaw did. Run a pilot and see how people react and perhaps even give an option to employees to do so.”
Leading online-mattress retailer SleePare has launched the first-of-its-kind, try-and-buy online mattress store and showroom in Toronto.
“We are thrilled to bring our unique try-and-buy concept to Toronto, Canada,” said SleePare’s CEO Shanir Kol. “We understand that buying a mattress is a significant decision, and we want to ensure our customers are completely satisfied with their purchase. Our Toronto mattress store enables customers to test out the mattresses they have been considering online.”
Shanir Kol
The store is located at 2737 Dufferin St, North York.
The first location opened in Manhattan, New York in 20018. Today, the retailer has eight stores in major cities in the U.S. such as Chicago, Los Angeles, New York City, D.C, and Miami.
“Initially the idea was that I was looking to start an online brand. The competition was there. I was thinking of trying a different angle. A new industry. I always think of a business as a way to solve problems. So I thought the problem those guys were going to have is they were going to sell those mattresses online, they don’t have stores. So why don’t I take a showroom and let them send their customers over and try the mattresses before they purchase,” said Kol.
“I got those mattresses, rented a showroom in New York City, luckily they were happy to cooperate with me and send me the mattresses and let their customers know we were there for them to come and try their mattresses. As we saw the traffic grow we decided to open a second showroom and the model we kind of figured out as we went.
“Now people are getting even more interested because online mattresses are getting so much more expensive . . . People want to take the time and make sure they made the right decision.”
Kol said like New York City the Toronto store will test the market to determine if customers are interested in the concept and some of the brands.
SleePare’s new try-and-buy concept enables guests to test out any of their exclusive online mattresses in their local store before they make a buying decision. In a no-pressure environment with personalized support throughout the process, the customer gets exactly what they need when buying a mattress.
The Toronto location includes the most innovative and newly released products from top brands, including:
● Bear
● Dreamcloud
● Ghostbed
● Mlily
● Winkbeds
● Helix
● Leesa
● Lull
● Nectar
● Puffy
● Brooklyn Bedding
These brands are generally only available when you buy them online, but Sleepare has flipped the process and put the decision-making in the hands of a nice little nap, said Kol.
He said it’s hard to say whether the company will open more locations in Canada.
“The first year is always a learning phase. We have to see the amount of people that will come into the store, the amount of people that will end up purchasing,” added Kol.
“As of now, part of the model is we take care of all the costs associated with bringing the mattress into Canada. So we pay the freight, the custom clearance, out of our pocket. So our margins a lot smaller in Canada right now but we’re hoping that it will make up with increased traffic.
“We’ll wait and see at the end of the year if everything makes sense to grow to other cities. We’re definitely seeing interest from other cities in Canada.”
Kol said the concept is looking to expand into further markets in the U.S., using digital data to determine where customers are shopping for mattresses from. In terms of real estate, he looks for spaces that are accessible.
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 several days.
Food delivery platform DoorDash is broadening its reach in the Canadian market through new partnerships with regional grocery chains, offering customers in multiple provinces enhanced access to local food options.
DoorDash announced collaborations with several regional grocers across Canada last week. The partnerships include Healthy Planet, Nature’s Emporium, Lina’s Italian Market, Sungiven Foods, and Supermarché PA, adding approximately 60 new grocery store locations to the platform’s network.
The expansion marks a notable shift in DoorDash’s strategy, focusing on integrating smaller, regionally-owned businesses into its digital ecosystem. Customers in British Columbia, Ontario, Alberta, and Quebec will now have the ability to order from these local favourites through the DoorDash app, bridging the gap between traditional grocery shopping and the convenience of online delivery.
In the Greater Toronto Area, health food enthusiasts will be pleased to find 35 Healthy Planet locations now available on the platform. Calgary residents can access the authentic Italian offerings of Lina’s Italian Market, while Nature’s Emporium brings its natural and organic products to Ontario customers through this new digital channel.
British Columbia sees significant representation in this rollout, with all nine of Sungiven Foods’ stores in Burnaby, Surrey, Richmond, and Vancouver joining the platform. Meanwhile, Quebec’s gourmet food scene becomes more accessible as Supermarché PA partners with DoorDash to offer its curated selection of products for delivery.
Lewis Matthews, head of grocery and retail partnerships at DoorDash Canada, emphasized the importance of these collaborations: “Establishing partnerships with beloved local grocers connects Canadians with new choices within their neighbourhoods, all while supporting regionally-owned small and medium-sized businesses. We’re proud to empower local communities through these partnerships and expand convenient access to a variety of foods from the comfort of their homes.”
DoorDash’s Journey and Market Position
Founded in 2013 by Stanford University students, DoorDash has quickly risen to become a dominant player in the food delivery industry. The company, which went public in December 2020, has established itself as the largest food delivery platform in the United States, boasting a 56% market share. Its influence extends beyond restaurant deliveries, capturing 60% of the convenience delivery category as well.
DoorDash’s growth has been particularly noteworthy in recent years. By March 2019, it had surpassed GrubHub to become the leader in total sales, commanding 27.6% of the on-demand delivery market. This rapid ascent culminated in DoorDash’s debut on the Fortune 500 list in 2024, where it ranked #443.
The company’s expansion into Canada began in 2015 with its launch in Toronto, marking its first step into international markets. Since then, DoorDash has continued to innovate and expand its services, including the introduction of its first ghost kitchen, DoorDash Kitchen, in Redwood City, California, in October 2019.
Adapting to Changing Market Conditions
The COVID-19 pandemic accelerated DoorDash’s growth and prompted the company to adapt its services. In April 2020, DoorDash became the fastest-growing food delivery service, implementing contactless delivery options and providing safety equipment to its drivers. The company also launched its “Reopen for Delivery” program in October 2020, helping brick-and-mortar restaurants that had closed due to the pandemic to partner with ghost kitchen operators for food delivery and pick-up services.
In a move that further blurred the lines between digital and physical presence, DoorDash opened its first physical restaurant location in November 2020, partnering with Bay Area restaurant Burma Bites to offer delivery and pick-up orders.
Tesla has made a strategic move to broaden its retail footprint in Canada. The automotive giant has launched its own Amazon storefront, providing Canadian Tesla owners and electric vehicle (EV) enthusiasts with a new convenient option to purchase essential charging equipment.
The company’s decision to establish a presence on Amazon’s platform allows Tesla to leverage Amazon’s vast customer base and efficient distribution network, potentially reaching a wider audience of EV owners and enthusiasts across Canada.
Currently, the Tesla storefront on Amazon offers two key products: the Wall Connector and the Universal Wall Connector. The Wall Connector, priced at CAD$625, is designed specifically for Tesla vehicles, while the Universal Wall Connector, available for CAD$800, is compatible with all EVs featuring a J1772 connector. These prices mirror those found on Tesla’s official website, maintaining consistency across different sales channels.
The primary advantage for customers purchasing through Amazon lies in the platform’s renowned shipping efficiency, particularly beneficial for Amazon Prime members. Additionally, the straightforward return process associated with Amazon purchases provides an added layer of convenience and reassurance for buyers.
This retail expansion comes as Tesla continues to solidify its position as a leader in the electric vehicle market. With its headquarters in Austin, Texas, Tesla operates six large-scale, vertically integrated factories across three continents. The company’s workforce of over 100,000 employees is involved in every aspect of the product lifecycle, from design and manufacturing to sales and service.
Tesla’s journey began in July 2003 when Martin Eberhard and Marc Tarpenning founded Tesla Motors, naming it after the pioneering inventor and electrical engineer Nikola Tesla. The company’s trajectory changed significantly in February 2004 when Elon Musk joined as its largest shareholder, later assuming the role of CEO in 2008.
Since its inception, Tesla has introduced several groundbreaking vehicle models, each contributing to the company’s rapid growth and market dominance. The Model 3, in particular, has achieved remarkable success, becoming the first electric car to surpass one million global sales in June 2021.
The Canadian Produce Marketing Association (CPMA), a leading industry organization representing nearly 900 member companies in the fresh produce sector, has welcomed a new government-commissioned study that sheds light on the critical role of packaging in the fresh produce supply chain. The study, jointly commissioned by Agriculture and Agri-Food Canada (AAFC) and Environment and Climate Change Canada (ECCC), offers valuable insights into the functionality of plastic packaging for fresh produce from a needs and benefits perspective.
The research comes at a crucial time when the fresh produce industry is grappling with the challenge of minimizing plastic packaging waste while maintaining food safety, quality, and sustainability standards. Ron Lemaire, President of CPMA, expressed satisfaction with the government’s initiative, stating, “CPMA is pleased to see the Government of Canada commission an industry-informed study which highlights the critical role and function that fresh produce packaging plays to ensure that high-quality fruits and vegetables are available to Canadians year-round.”
The study, titled “Quantifying the Functionality Importance of Plastic Packaging in Fresh Produce from a Needs/Benefit Perspective,” introduces an innovative framework for describing the essential functions provided by fresh produce packaging. These functions include containment (seal integrity and physical robustness), convenience (portion control and ease of handling), and communication (storage and handling instructions, as well as traceability).
Notably, the framework also emphasizes the protective role of packaging in ensuring preservation, microbial control, and preventing contamination during transportation and storage.
While the study offers valuable insights, it’s important to note that it does not consider the impact of packaging on fresh produce affordability or year-round availability – two crucial factors in the Canadian market, where four out of five dollars are spent on imported fresh produce. The CPMA acknowledges that these considerations are significant when assessing and selecting packaging solutions.
The research categorizes fresh produce into groups with shared packaging functionality requirements, an approach that CPMA recognizes as novel in addressing packaging waste challenges while aiming to develop practical sustainable packaging guidelines. This categorization covers nearly 95% of fresh produce sold by volume, providing a comprehensive overview of the industry’s packaging needs.
In light of the study’s findings, CPMA and Western Growers (WG) have joined forces to develop sustainable produce packaging guidelines. These guidelines will incorporate the study’s insights, particularly the functionality framework and proposed produce categorization, as part of their ongoing efforts to improve sustainability in the industry.
The CPMA emphasizes the importance of understanding packaging functionality before developing policies or regulations. The association says that it encourages government departments and agencies whose mandates impact or are influenced by sustainable fresh produce supply chains to consider this report as a crucial resource.
Canada’s largest quick-service restaurant chain, Tim Hortons, has successfully raised over $200,000 through its Alberta Cares Donut campaign to support communities affected by the devastating wildfires that swept through parts of Alberta earlier this summer.
Tim Hortons says that the fundraising initiative, which saw widespread participation from restaurant owners, team members, and customers across the province, demonstrates the power of community solidarity in times of crisis. Jason Gash, General Manager of Western Canada for Tim Hortons, expressed his gratitude for the overwhelming support: “We’re incredibly grateful that guests across Alberta have supported their friends and neighbours who were impacted by the devastating wildfires earlier this summer.”
The campaign’s success is particularly meaningful for communities like Jasper, which bore the brunt of the wildfires. Local Tim Hortons restaurant owners in Jasper, Lyle and Sherry Hryniuk, shared their perspective on the initiative’s impact: “Through the support of each and every guest across Alberta who purchased an Alberta Cares Donut at Tim Hortons, we’re one step closer to getting back home and rebuilding our community.”
All proceeds from the sale of Alberta Cares Donuts will be donated to the Canadian Red Cross’s 2024 Alberta Wildfires Appeal. This fund provides crucial support for immediate and ongoing relief efforts, including financial assistance to evacuees, community support, recovery and resilience initiatives, and preparedness for future disasters within Alberta.
Melanie Soler, Vice-President of Emergencies at the Canadian Red Cross, commended the collaborative effort: “It is inspiring to see communities across Alberta coming together to support those affected by wildfires. The Red Cross will continue to provide support to people as they take their next steps toward recovery.”
The success of this campaign underscores Tim Hortons’ deep-rooted connection to Canadian communities. Since its founding in Hamilton, Ontario, in 1964, Tim Hortons has grown with nearly 4,000 restaurants across the country.
For those wishing to contribute further to the wildfire relief efforts, donations to the Canadian Red Cross’s 2024 Alberta Wildfires Appeal can be made online at www.redcross.ca or by calling 1-800-418-1111.
Mic Mac Mall in Dartmouth, Nova Scotia. Photo: Curtis Patterson
Statistics Canada’s latest report indicates a potential upturn in the retail landscape, with an estimated 0.6% increase in sales for July. The modest gain follows a 0.3% decline in June, aligning with economists’ expectations. The July projection, if realized, would mark only the second monthly sales increase this year, offering a ray of optimism for retailers across the country.
However, the broader economic picture remains complex. The first two quarters of 2024 have been particularly tough for the retail sector, with sales dropping 0.5% in the second quarter after a 0.4% decline in the first. This consecutive decline represents the weakest performance since 2009, excluding the pandemic period, and continues to support the Bank of Canada’s cautious approach to monetary policy.
The June data revealed declines in four of nine retail subsectors, with auto dealerships experiencing the most significant setbacks. The volatility in new car sales, which had previously been a strong growth driver during the post-pandemic recovery, contributed substantially to the overall decline. This shift highlights the changing dynamics of consumer spending patterns in a fluctuating economic environment.
Despite the challenges, there are pockets of resilience within the retail landscape. Excluding automotive and gasoline sales, core retail sales actually rose by 0.4% in June. This suggests that while big-ticket items like vehicles may be facing headwinds, other retail segments are showing signs of stability or even growth.
Regional variations were evident in the data, with sales declining in seven out of ten provinces. Ontario led the overall decline. However, Toronto, the country’s largest city, bucked the trend with a 0.3% increase in sales, indicating that urban centres may be experiencing different retail dynamics compared to their broader provincial contexts.
The Bank of Canada’s recent interest rate cuts, bringing the policy rate to 4.5%, are likely influencing consumer behaviour. Economists and market analysts widely anticipate further easing of monetary policy, as the central bank navigates the delicate balance between controlling inflation and supporting economic growth. This approach could provide some relief to retailers and consumers alike in the coming months.
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
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.
Meghann Martindale
“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.
Lesley Males
“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 )
